Enterprise Value Analysis

  LBO Quick Model € in Millions Sources € Purchase Information Returns 2021 Excess Cash € 496.2 2020 EBITDA € 216.8 2026 EBITDA Revolver – Purchase Multiple 17.0x Exit Multiple 17.0x Term Loan 1,600.0 Enterprise Value € 3,685.6 Enterprise Value Sponsor Equity 2,135.6 Less: Debt (247.3) Less: Debt Total Sources € 4,231.8 Plus: Cash 496.2 Plus: Cash Entry Equity Value € 3,934.5 Exit Equity Value Uses Refinance Existing Debt € 247.3 Purchase Existing Equity 3,934.5 Transaction Expenses 50.0 Financing Fees – Total Uses € 4,231.8 Return 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 Cash Flow IRR MOIC IRR Sensitivity Entry EBITDA Multiple 15.0x 16.0x 17.0x 18.0x 19.0x 20.0x 15.0x 16.0x Exit 17.0x EBITDA 18.0x Multiple 19.0x 20.0x MOIC Sensitivity Entry EBITDA Multiple 15.0x 16.0x 17.0x 18.0x 19.0x 20.0x 15.0x 16.0x Exit 17.0x EBITDA 18.0x Multiple 19.0x 20.0x INCOME STATEMENT 2020 2020 2021 2022 2023 2024 2025 Sales € 2,000.0 € 1,600.0 € 1,360.0 € 1,292.0 € 1,292.0 € 1,421.2 € 1,705.4 % Growth (20.0%) (15.0%) (5.0%) – 10.0% 20.0% COGS (1,000.0) (800.0) (680.0) (646.0) (646.0) (710.6) (852.7) Gross Margin € 1,000.0 € 800.0 € 680.0 € 646.0 € 646.0 € 710.6 € 852.7 % Margin 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% Selling expenses (200.0) (200.0) (200.0) (200.0) (200.0) (200.0) (200.0) R&D (200.0) (200.0) (200.0) (200.0) (200.0) (200.0) (200.0) G&A (200.0) (200.0) (200.0) (200.0) (200.0) (200.0) (200.0) Operating Profit € 400.0 € 200.0 € 80.0 € 46.0 € 46.0 € 110.6 € 252.7 % Margin 20.0% 12.5% 5.9% 3.6% 3.6% 7.8% 14.8% Interest Expense Pre-tax Profit Taxes Net Income Operating Profit D&A 50.0 50.0 50.0 50.0 50.0 50.0 EBITDA % Margin Taxes 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% BALANCE SHEET 2020 Uses Sources Close PF BS 2020 2021 2022 2023 2024 2025 Assets Cash and Equivalents € 496.2 A/R 297.8 Inventory 310.6 Prepaid & Other 87.1 Total Current Assets € 1,191.7 PP&E € 259.0 Intangibles 423.0 Goodwill – Total Assets € 1,873.7 Liabilities A/P € 402.0 Advances received 72.5 Other liabilities and deferred income 290.6 Total Current Liabilities € 765.1 Revolver – Term Loan 247.3 Total Liabilities € 1,012.4 Total Equity 861.3 Total Liabilities + Equity € 1,873.7 Check – Working Capital Drivers A/R Days Inventory Days Prepaid & Other as % of Revenue A/P Days Advances received as % of Revenue Other liabilities and deferred income as % of Revenue CASH FLOW STATEMENT 2020 2021 2022 2023 2024 2025 Net Income Depreciation Decrease / (Increase) in A/R Decrease / (Increase) in Inventory Decrease / (Increase) in Prepaid & Other Increase / (Decrease) in A/P Increase / (Decrease) in advances received Increase / (Decrease) in other liabilities and deferred income Cash Flow from Operating Activities Capital Expenditures (50.0) (50.0) (50.0) (50.0) (50.0) (50.0) Cash Flow from Investing Activities Issuance / (Repayments) of Outstanding Debt Cash Flow from Financing Activities Beginning Cash Balance Net Change in Cash Ending Cash Balance DEBT SCHEDULE 2020 2021 2022 2023 2024 2025 Beginning Cash Balance Minimum Cash Balance 100.0 (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) Cash Flow before Financing Activities Cash Flow Available for Revolver Paydown Revolver Beginning Balance Issuance / (Paydown) Ending Balance Average Balance Interest Expense 4.00% Cash Flow Available for Term Loan Paydown Term Loan Beginning Balance Issuance / (Paydown) Ending Balance Average Balance Interest Expense 4.00% Net Issuance / (Paydown of Debt) Total Interest Expense