Finance-Unlevered Free Cash Flow Calculation 2007A EBIT

Unlevered Free Cash Flow Calculation

Calendar
Year Ending December 31,

CAGR

2007A

2008P

2009P

2010E

2011E

2012E

2008-2012

EBIT

$120.0

$126.2

$133.2

$137.7

$142.4

$147.3

3.9%

Plus:
Non-deductible Goodwill Amort.

–

–

–

–

–

–

EBITA

$120.0

$126.2

$133.2

$137.7

$142.4

$147.3

3.9%

Less:
Provision for Taxes

(42.0)

(44.2)

(46.6)

(48.2)

(49.9)

(51.6)

Unlevered Net Income

$78.0

$82.0

$86.6

$89.5

$92.6

$95.8

3.9%

Plus:
D&A (excl. non-deductible GW amort.)
15.3

15.9

16.7

16.0

15.6

15.4

Less:
Capital Expenditures

(18.0)

(16.0)

(14.1)

(14.6)

(15.1)

(15.6)

Less:
Increase in Net Working Capital

(9.5)

8.3

3.1

3.2

3.3

3.4

Unlevered Free Cash Flow

$65.8

$90.2

$92.3

$94.2

$96.4

$99.0

2.3%

Tax Rate

35.0%

DCF Analysis (2008-2012):
EBITDA Multiple Method

Net Debt

$83.4

Shares

35.021

Total Enterprise Value

Total Equity Value

Terminal
EBITDA Multiple

Terminal
EBITDA Multiple

7.5x

8.0x

8.5x

7.5x

8.0x

8.5x

Discount
10.0%

$1,042.4

$1,088.1

$1,133.9

Discount
10.0%

$959.0

$1,004.7

$1,050.5

Rate
11.0%

1,003.0

1,046.7

1,090.4

Rate
11.0%

919.6

963.3

1,007.0

(WACC)
12.0%

965.5

1,007.3

1,049.1

(WACC)
12.0%

882.1

923.9

965.7

Implied Perpetuity Growth
Rate

Total Price Per Share

Terminal
EBITDA Multiple

Terminal
EBITDA Multiple

7.5x

8.0x

8.5x

7.5x

8.0x

8.5x

Discount
10.0%

1.0%

1.5%

1.9%

Discount
10.0%

$27.38

$28.69

$30.00

Rate
11.0%

1.9%

2.4%

2.9%

Rate
11.0%

26.26

27.51

28.75

(WACC)
12.0%

2.8%

3.3%

3.8%

(WACC)
12.0%

25.19

26.38

27.58

DCF Analysis (2008-2012):
Perpetuity Growth Method

Total Enterprise Value

Total Equity Value

Terminal
Perpetuity Growth Rate

Terminal
Perpetuity Growth Rate

3.0%

3.5%

4.0%

3.0%

3.5%

4.0%

Discount
10.0%

$1,260.8

$1,335.1

$1,421.7

Discount
10.0%

$1,177.4

$1,251.7

$1,338.3

Rate
11.0%

1,103.6

1,158.0

1,220.1

Rate
11.0%

1,020.2

1,074.6

1,136.7

(WACC)
12.0%

981.4

1,022.5

1,068.8

(WACC)
12.0%

898.0

939.1

985.4

Implied Terminal EBITDA
Multiple

Total Price Per Share

Terminal
Perpetuity Growth Rate

Terminal
Perpetuity Growth Rate

3.0%

3.5%

4.0%

3.0%

3.5%

4.0%

Discount
10.0%

9.9x

10.7x

11.6x

Discount
10.0%

$33.62

$35.74

$38.22

Rate
11.0%

8.7x

9.3x

10.0x

Rate
11.0%

29.13

30.68

32.46

(WACC)
12.0%

7.7x

8.2x

8.7x

(WACC)
12.0%

25.64

26.82

28.14

(1) Assumes net debt of $83.4mm as of 5/16/08.

(2) Assumes outstanding diluted shares of
35.021 million.