Mar/18 A Jun/18 A

2018 2018

Net sales 3,401 3,360

Cost of goods sold 2,149 2,151
Selling, general and administrative expense 742 735
Operating profit 510 474
Interest expense 69 72
Other income (expense), net 70 69
Income before income taxes 511 471
Income taxes 67 70
Earnings (loss) from unconsolidated entities - 198
Net income 444 599
Net income (loss) attributable to noncontrolling interests - 3
Net income attributable to Kellogg Company 444 596

Dividend 187 187

Net Sales
North America 2,330 2,127
Europe 520 621
Latin America 232 239
AMEA 319 373

Growth rate on QOQ

North America
Europe
Latin America
AMEA

COGS as a % of sales 63% 64%

SG&A as a % of sales 22% 22%

Effective tax rate 13% 15%

Min int as % of total profit 0% 1%

dividend Payout ratio 42% 31%

Sep/18 A Dec/18 A Mar/19 A Jun/19 A Sep/19 A Dec/19 A Mar/20 A Jun/20 A
2018 2018 2019 2019 2019 2019 2020 2020

3,469 3,317 3,522 3,461 3,372 3,223 3,412 3,465

2,293 2,228 2,415 2,275 2,372 2,135 2,268 2,268
780 763 726 789 737 728 685 691
396 326 381 397 263 360 459 506
72 74 74 75 72 63 64 69
130 -359 52 45 150 -59 51 30
454 -107 359 367 341 238 446 467
69 -25 72 74 91 84 94 109
-2 - -2 -1 -2 -2 -2 -4
383 -82 285 292 248 152 350 354
3 2 3 6 1 7 3 3
380 -84 282 286 247 145 347 351

194 194 192 188 194 195 195 195

2,188 2,043 2,289 2,148 2,059 1,894 2,097 2,167

531 723 497 541 527 527 526 546
239 237 225 239 244 232 227 223
511 314 511 533 542 570 562 529

-1.8% 1.0% -5.9% -7.3% -8.4% 0.9%

-4.4% -12.9% -0.8% -27.1% 5.8% 0.9%
-3.0% 0.0% 2.1% -2.1% 0.9% -6.7%
60.2% 42.9% 6.1% 81.5% 10.0% -0.8%

66% 67% 69% 66% 70% 66% 66% 65%

22% 23% 21% 23% 22% 23% 20% 20%

15% 23% 20% 20% 27% 35% 21% 23%

1% -2% 1% 2% 0% 5% 1% 1%

51% -231% 68% 66% 79% 134% 56% 56%

Sep/20 A Dec/20 A Mar/21 A Jun/21 A Sep/21 A Dec/21 A Mar/22 A Jun/22 A
2020 2020 2021 2021 2021 2021 2022 2022

3,429 3,464 3,584 3,555 3,622 3,420 3,672 3,864

2,228 2,279 2,418 2,331 2,457 2,415 2,513 2,721
790 800 694 720 718 676 642 728
411 385 472 504 447 329 517 415
63 85 59 58 55 51 56 54
70 -30 69 86 - 282 74 60
418 270 482 532 392 560 535 421
65 55 109 144 92 129 112 97
-1 -7 -2 -3 5 3 1 2
352 208 371 385 305 434 424 326
4 3 3 5 -2 1 2 -
348 205 368 380 307 433 422 326

196 196 195 197 198 198 197 197

2,059 2,038 2,130 2,013 2,056 1,975 2,110 2,248

552 608 578 618 631 570 589 598
236 228 236 266 252 243 256 288
582 590 640 658 683 632 718 732

0.0% 7.6% 1.6% -7.1% -0.1% -3.1% -0.9% 11.7%

4.7% 15.4% 9.9% 13.2% 14.3% -6.3% 1.9% -3.2%
-3.3% -1.7% 4.0% 19.3% 6.8% 6.6% 8.5% 8.3%
7.4% 3.5% 13.9% 24.4% 17.4% 7.1% 12.2% 11.2%

65% 66% 67% 66% 68% 71% 68% 70%

23% 23% 19% 20% 20% 20% 17% 19%

16% 20% 23% 27% 23% 23% 21% 23%

1% 1% 1% 1% -1% 0% 0% 0%

56% 96% 53% 52% 64% 46% 47% 60%

Sep/22 E Dec/22 E Mar/23 E Jun/23 E Sep/23 E Dec/23 E Mar/24 E Jun/24 E
2022 2022 2023 2023 2023 2023 2024 2024

3,767 3,557 3,820 4,021 3,918 3,699 3,973 4,181

2,524 2,383 2,559 2,694 2,625 2,478 2,662 2,802
753 711 764 804 784 740 795 836
490 462 497 523 509 481 516 544

- - - - - - - -
490 462 497 523 509 481 516 544
103 97 104 110 107 101 108 114
- - - - - - - -
387 365 392 413 402 380 408 429
4 4 4 4 4 4 4 4
383 362 388 409 398 376 404 425

191 181 194 204 199 188 202 213

2138.2 2054.0 2194.4 2337.9 2223.8 2136.2 2282.2 2431.4

656.2 592.8 612.6 621.9 682.5 616.5 637.1 646.8
262.1 252.7 266.2 299.5 272.6 262.8 276.9 311.5
710.3 657.3 746.7 761.3 738.7 683.6 776.6 791.7

4% 4% 4% 4% 4% 4% 4% 4%
4% 4% 4% 4% 4% 4% 4% 4%
4% 4% 4% 4% 4% 4% 4% 4%
4% 4% 4% 4% 4% 4% 4% 4%

67% 67% 67% 67% 67% 67% 67% 67%

20% 20% 20% 20% 20% 20% 20% 20%

21% 21% 21% 21% 21% 21% 21% 21%

1% 1% 1% 1% 1% 1% 1% 1%

50% 50% 50% 50% 50% 50% 50% 50%

Sep/24 E Dec/24 E Mar/25 E Jun/25 E Sep/25 E Dec/25 E Mar/26 E Jun/26 E
2024 2024 2025 2025 2025 2025 2026 2026

4,074 3,847 4,132 4,349 4,237 4,001 4,297 4,523

2,730 2,578 2,768 2,914 2,839 2,681 2,879 3,030
815 769 826 870 847 800 859 905
530 500 537 565 551 520 559 588

- - - - - - - -
530 500 537 565 551 520 559 588
111 105 113 119 116 109 117 123
- - - - - - - -
418 395 424 447 435 411 441 464
4 4 4 4 4 4 4 5
414 391 420 442 431 407 437 460

207 196 210 221 215 203 218 230

2312.7 2221.6 2373.5 2528.7 2405.2 2310.5 2468.4 2629.8

709.8 641.2 662.5 672.7 738.2 666.8 689.0 699.6
283.5 273.3 288.0 324.0 294.8 284.3 299.5 336.9
768.3 710.9 807.7 823.4 799.0 739.4 840.0 856.3

4% 4% 4% 4% 4% 4% 4% 4%
4% 4% 4% 4% 4% 4% 4% 4%
4% 4% 4% 4% 4% 4% 4% 4%
4% 4% 4% 4% 4% 4% 4% 4%

67% 67% 67% 67% 67% 67% 67% 67%

20% 20% 20% 20% 20% 20% 20% 20%

21% 21% 21% 21% 21% 21% 21% 21%

1% 1% 1% 1% 1% 1% 1% 1%

50% 50% 50% 50% 50% 50% 50% 50%

Sep/26 E Dec/26 E Mar/27 E Jun/27 E Sep/27 E Dec/27 E
2026 2026 2027 2027 2027 2027

4,407 4,161 4,469 4,704 4,583 4,327

2,953 2,788 2,994 3,151 3,071 2,899
881 832 894 941 917 865
573 541 581 611 596 563

- - - - - -
573 541 581 611 596 563
120 114 122 128 125 118
- - - - - -
453 427 459 483 471 444
5 4 5 5 5 4
448 423 454 478 466 440

224 212 227 239 233 220

2501.4 2402.9 2567.1 2735.0 2601.5 2499.0

767.7 693.5 716.6 727.6 798.4 721.2
306.6 295.6 311.5 350.4 318.9 307.5
831.0 768.9 873.6 890.6 864.2 799.7

4% 4% 4% 4% 4% 4%
4% 4% 4% 4% 4% 4%
4% 4% 4% 4% 4% 4%
4% 4% 4% 4% 4% 4%

67% 67% 67% 67% 67% 67%

20% 20% 20% 20% 20% 20%

21% 21% 21% 21% 21% 21%

1% 1% 1% 1% 1% 1%

50% 50% 50% 50% 50% 50%

 AIS 2018 A 2019 A 2020 A

Net sales 13,547 13,578 13,770

Cost of goods sold 8,821 9,197 9,043
Selling, general and administrative expense 3,020 2,980 2,966
Operating profit 1,706 1,401 1,761
Interest expense 287 284 281
Other income (expense), net -90 188 121
Income before income taxes 1,329 1,305 1,601
Income taxes 181 321 323
Earnings (loss) from unconsolidated entities 196 -7 -14
Net income 1,344 977 1,264
Net income (loss) attributable to noncontrolling interests 8 17 13
Net income attributable to Kellogg Company 1,336 960 1,251

Dividend 762 769 782

Retained Earnings 574 191 469

Net sales
North America 8,688 8,390 8,361
Europe 2,395 2,092 2,232
Latin America 947 940 914
AMEA 1,517 2,156 2,263
2021 A 2022 E 2023 E 2024 E 2025 E 2026 E 2027 E

14,181 14860 15457 16075 16718 17387 18083

9,621 10141 10356 10771 11201 11649 12115
2,808 2835 3091 3215 3344 3477 3617
1,752 1,884 2,009 2,090 2,173 2,260 2,351
223 203 192 181 174 157 129
437 134 0 0 0 0 0
1,966 1,815 1,817 1,908 1,999 2,103 2,222
474 409 422 439 456 475 494
3 3 0 0 0 0 0
1,495 1,409 1,395 1,469 1,543 1,629 1,728
7 10 16 17 17 18 19
1,488 1,400 1,379 1,453 1,526 1,611 1,710

788 766 786 817 850 884 919

700 634 594 636 676 727 790

8,174
2,397
997
2,613
 Balance Sheet 2018 A 2019 A 2020 A

Current assets
Cash and cash equivalents 321 397 435
Accounts receivable, net 1,375 1,576 1,537
Inventories 1,330 1,226 1,284
Other current assets 131 232 226
Total current assets 3157 3431 3482
Property, net 3,731 3,612 3,713
Operating lease right-of-use assets 0 541 658
Goodwill 6,050 5,861 5,799
Other intangibles, net 3,361 2,576 2,491
Investment in unconsolidated entities 413 404 391
Other assets 1,068 1,139 1,462
Total assets 17780 17564 17996
Current liabilities
Current maturities of long-term debt 510 620 627
Notes payable 176 107 102
Accounts payable 2,427 2,387 2,471
Current operating lease liabilities 0 114 117
Accrued advertising and promotion 0 0 776
Accrued salaries and wages 0 0 378
Other current liabilities 1,416 1,550 767
Total current liabilities 4529 4778 5238
Long-term debt 8,207 7,195 6,746
Operating lease liabilities 0 433 520
Deferred income taxes 730 596 562
Pension liability 651 705 769
Other liabilities 504 543 525
Equity
Common stock 105 105 105
Capital in excess of par value 895 921 972
Retained earnings 7,652 7,859 8,326
Treasury stock -4,551 -4,690 -4,559
Accumulated other comprehensive income (loss) -1,500 -1,448 -1,732
Total Kellogg Company equity 2601 2747 3112
Noncontrolling interests 558 567 524
Total equity 3159 3314 3636
Total liabilities and equity 17,780 17,564 17,996

Check - - -
2021 A 2022 E 2023 E 2024 E 2025 E 2026 E 2027 E

286 149 155 161 167 174 181

1,489 1635 1700 1768 1839 1913 1989
1,398 1420 1450 1508 1568 1631 1696
221 221 221 221 221 221 221
3394 3424 3526 3658 3795 3938 4087
3,827 3914 3994 4068 4134 4193 4245
640 640 640 640 640 640 640
5,771 5,771 5,771 5,771 5,771 5,771 5,771
2,409 2,383 2,357 2,331 2,305 2,279 2,253
424 427 427 427 427 427 427
1,713 1,713 1,713 1,713 1,713 1,713 1,713
18178 18272 18428 18608 18786 18962 19136

712 750 695 693 730 557 307

137 137 303 341 341 341 341
2,573 2637 2693 2800 2912 3029 3150
116 116 116 116 116 116 116
714 714 714 714 714 714 714
300 300 300 300 300 300 300
763 763 763 763 763 763 763
5315 5416 5584 5727 5876 5820 5691
6,262 5,540 4,845 4,152 3,408 2,812 2,220
502 502 502 502 502 502 502
722 722 722 722 722 722 722
706 706 706 706 706 706 706
456 456 456 456 456 456 456

105 105 105 105 105 105 105

1,023 1,094 1,168 1,245 1,326 1,409 1,496
9,028 9,662 10,255 10,891 11,567 12,294 13,084
-4,715 -4,715 -4,715 -4,715 -4,715 -4,715 -4,715
-1,721 -1,721 -1,721 -1,721 -1,721 -1,721 -1,721
3720 4425 5093 5805 6561 7372 8249
495 505 520 537 554 572 591
4,215 4,929 5,613 6,342 7,116 7,944 8,840
18,178 18,272 18,428 18,608 18,786 18,962 19,136

- - - - - - -
 Cashflow statement 2018 A 2019 A 2020 A 2021 A

Pat
D&A
SBC 56 76 68
Change in AR
Change in Inv
Change in AP
Change in all Other Assets and Liabilities
Less: income from unconsolidated entity
CF Operations

Capex on PP&E
Add in intagibiles
Add: Dividend from unconsolidated entity
others
CFI

Dividend Paid
Option proceeds
Treasury stock
Change in Debt
CFF

S/D
Opening Cash 321 397 435
Closing 321 397 435 286
2022 E 2023 E 2024 E 2025 E 2026 E 2027 E

1,409 1,395 1,469 1,543 1,629 1,728

534 564 595 628 662 697
71 74 77 80 83 87
-146 -66 -68 -71 -74 -77
-22 -30 -58 -60 -63 -65
64 56 108 112 116 121
0 0 0 0 0 0
-3 0 0 0 0 0
1,908 1,993 2,124 2,232 2,355 2,492

-594 -618 -643 -669 -695 -723

0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
-594 -618 -643 -669 -695 -723

-766 -786 -817 -850 -884 -919

0 0 0 0 0 0
0 0 0 0 0 0
-684 -583 -657 -707 -769 -842
-1451 -1369 -1474 -1557 -1653 -1762

-137 6 6 6 7 7
286 149 155 161 167 174
149 155 161 167 174 181
 Schedules 2018 A 2019 A 2020 A 2021 A 2022 E

Net sales 13,547 13,578 13,770 14,181 14,860

Cost of goods sold 8,821 9,197 9,043 9,621 10,141

Accounts receivable, net 1,375 1,576 1,537 1,489 1635

Inventories 1,330 1,226 1,284 1,398 1420
Accounts payable 2,427 2,387 2,471 2,573 2637

AR as % of Net Sales 11% 11% 11% 11%

INV as % of COGS 14% 14% 14% 14%
AP as % of COGS 26% 27% 26% 26%

Land 120 116 120 123

Buildings 2,061 2,021 2,135 2,238
Machinery and equipment 5,971 5,852 6,080 6,277
Capitalized software 438 496 543 594
Construction in progress 583 566 641 623

Opening Gross PPE 9855

Capex of the Year 578 586 505 553 594
Closing Gross PPE 9173 9051 9519 9855 10449
Less:: Accu DEP 5442 5439 5806 6028 6536
Property, net 3731 3612 3713 3827 3914

Capex as a% of Sales 4.3% 4.3% 3.7% 3.9% 4%

Dep During the year 493 457 452 445 508

DEP as a % fixed assets 5.0% 4.9% 4.6% 5%

Opening Gross intangibles 2,612 2,552

Add during year -60 0
Closing Gross intagibles 3,448 2,677 2,612 2,552 2,552
Less:: Accu Amortization 121 143 169
other intangibles , net 2,491 2,409 2,383

ADD as a % of sales -0.42% 0.00%

Amortization during year' 23 27 27 22 26

Amortization as % of intagibles 0.9% 1.0% 0.9% 1%

2023 E 2024 E 2025 E 2026 E 2027 E

15,457 16,075 16,718 17,387 18,083

10,356 10,771 11,201 11,649 12,115

1700 1768 1839 1913 1989

1450 1508 1568 1631 1696
2693 2800 2912 3029 3150

11% 11% 11% 11% 11%

14% 14% 14% 14% 14%
26% 26% 26% 26% 26%

10449 11068 11711 12379 13075

618 643 669 695 723
11068 11711 12379 13075 13798
7074 7643 8245 8882 9553
3994 4068 4134 4193 4245

4% 4% 4% 4% 4%

538 569 602 636 672

5% 5% 5% 5% 5%

2,552 2,552 2,552 2,552 2,552

0 0 0 0 0
2,552 2,552 2,552 2,552 2,552
195 221 247 273 299
2,357 2,331 2,305 2,279 2,253

0.00% 0.00% 0.00% 0.00% 0.00%

26 26 26 26 26

1% 1% 1% 1% 1%
 Debt Schedules 2018 A 2019 A 2020 A 2021 A 2022 E

Cash Avaliable before debt payment 547

Opening Cash Balance 286
Less :Min Cash Balance 1% -149
Cash Avaliable for debt payment 684

Opening Debt
Notes 137
Type Rate Year
Notes 1.75% 2021 0
Notes 0.80% 2022 682
Notes 2.65% 2023 545
Notes 2.75% 2023 207
Notes 1.00% 2024 695
Notes 1.25% 2025 693
Notes 3.25% 2026 744
Notes 3.40% 2027 596
Notes 4.30% 2028 592
Notes 0.50% 2029 338
Notes 2.10% 2030 496
Debentures 7.45% 2031 622
Notes 4.50% 2046 638
Other 126

Change in debt
Notes Borrowing 0
Type Rate Year
Notes 1.75% 2021 Repaying 0
Notes 0.80% 2022 -682
Notes 2.65% 2023 -2
Notes 2.75% 2023 0
Notes 1.00% 2024 0
Notes 1.25% 2025 0
Notes 3.25% 2026 0
Notes 3.40% 2027 0
Notes 4.30% 2028 0
Notes 0.50% 2029 0
Notes 2.10% 2030 0
Debentures 7.45% 2031 0
Notes 4.50% 2046 0
Other

Closing debt
Notes 2.75% 137 137
Type Rate Year column Amount
Notes 1.75% 2021 0 0
Notes 0.80% 2022 682 0
Notes 2.65% 2023 545 543
Notes 2.75% 2023 207 207
Notes 1.00% 2024 695 695
Notes 1.25% 2025 693 693
Notes 3.25% 2026 744 744
Notes 3.40% 2027 596 596
Notes 4.30% 2028 592 592
Notes 0.50% 2029 338 338
Notes 2.10% 2030 496 496
Debentures 7.45% 2031 622 622
Notes 4.50% 2046 638 638
Other 2.75% 126 126
Total Debt 7111 6427
Current maturity of LD 712 750
Long term debt 6262 5540

Interest
Notes 2.75% 3.8
Type Rate
Notes 1.75% 0
Notes 0.80% 3
Notes 2.65% 14
Notes 2.75% 6
Notes 1.00% 7
Notes 1.25% 9
Notes 3.25% 24
Notes 3.40% 20
Notes 4.30% 25
Notes 0.50% 2
Notes 2.10% 10
Debentures 7.45% 46
Notes 4.50% 29
Other 2.75% 3
Total Interest 202.7
2023 E 2024 E 2025 E 2026 E 2027 E

589 663 714 775 849

149 155 161 167 174
-155 -161 -167 -174 -181
583 657 707 769 842

137 303 341 341 341

0 0 0 0 0
0 0 0 0 0
543 0 0 0 0
207 0 0 0 0
695 695 0 0 0
693 693 693 0 0
744 744 744 730 0
596 596 596 596 557
592 592 592 592 592
338 338 338 338 338
496 496 496 496 496
622 622 622 622 622
638 638 638 638 638
126 126 126 126 126

166 38 0 0 0

0 0 0 0 0
0 0 0 0 0
-543 0 0 0 0
-207 0 0 0 0
0 -695 0 0 0
0 0 -693 0 0
0 0 -14 -730 0
0 0 0 -39 -557
0 0 0 0 -285
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0

303 341 341 341 341

0 0 0 0 0
 0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
695 0 0 0 0
693 693 0 0 0
744 744 730 0 0
596 596 596 557 0
592 592 592 592 307
338 338 338 338 338
496 496 496 496 496
622 622 622 622 622
638 638 638 638 638
126 126 126 126 126
5843 5186 4479 3710 2868
695 693 730 557 307
4845 4152 3408 2812 2220

6.0 8.8 9.4 9.4 9.4

0 0 0 0 0
0 0 0 0 0
7 0 0 0 0
3 0 0 0 0
7 3 0 0 0
9 9 4 0 0
24 24 24 12 0
20 20 20 20 9
25 25 25 25 19
2 2 2 2 2
10 10 10 10 10
46 46 46 46 46
29 29 29 29 29
3 3 3 3 3
192.2 181.5 174.0 156.9 128.8
Leverage Buyout Analysis for Kelloggs
$ mm except per share

GENERAL INPUTS INITIAL VALUATION

Company name Kelloggs
Ticker (if applicable) K Select a valuation approach: Approach 1 Approach 1 Approach 2
Current share price (if applicable) 55.42 Explicit EBITDA Explicit EBITDA Explicit offer/share
Latest closing share price date (f applicable) 12-Jan-24
Optional Paydown of Debt? Yes LTM EBITDA 2,219 2,219 2,219
EV / LTM EBITDA 12.0x 12.0x 12.0x
SELECT FINANCIAL DATA / ASSUMPTIONS
EBITDA (LTM) 2,219 Enterprise value 26,628.0 26,628.0 26,681.1
Gross Debt (input as a -) (7,111)
Cash 286 Less: Gross Debt (latest filing) (7,111.0) (7,111.0) (7,111.0)
Minimum cash desired 111 Plus: Cash (latest filing) 286.0 286.0 286.0
EV / LTM EBITDA multiple at exit 12.0x .05x
EV / LTM EBITDA multiple at entry 12.0x Offer value 19,803.0 19,803.0 19,856.1
USES OF FUNDS Diluted shares outstanding 342.347 342.347 342.347
Buyout of equity 19,803.0
Refinancing of oldco debt 7,111.0 Offer value / per share 57.84 57.84 58.00
Fees (transaction & financing) 717.8 % Premium / discount 4.4% 4.4% 4.7%
Total Uses 27,631.8
EV=EQ+D-c
SOURCES OF FUNDS EQ=EV-D+c
EBITDA turns $ investment Financing fees
Excess cash 175.1 % fees Fee Term Fee amort / yearnterest Rate
Revolver 3.00x 6,657.0
Term Loan A 4.00x 8,876.0 72% Revolver 1.5% 99.9 6 yrs 4.0%
Mezzanine 2.00x 4,438.0 Term Loan A 1.5% 133.1 6 yrs 3.0%
Preferred stock 0.00x 0.0 Mezzanine 2.0% 88.8 8 yrs 5.0%
Mgmt rollover 0.00x 0.0 Financing fees 321.8
Sponsor equity 7,485.8
Total Sources 27,631.8 % of offer value Fee
Trans. fees 2.0% 396.1
Preferred Equity No
10%
Management Equity No
10%

INCOME STATEMENT
Fiscal year 2019A 2020A 2021A 2022P 2023P 2024P 2025P 2026P
Fiscal year end date 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 12/31/26

Net sales 13,578 13,770 14,181 14,606 15,118 15,722 16,430 17,251
Cost of goods sold 9,197 9,043 9,621 9,494 9,524 9,433 9,529 9,661
Selling, general and administrative expense 2,980 2,966 2,808 3,359 3,326 3,302 3,286 3,450
Operating profit 1,401 1,761 1,752 1,753 2,268 2,987 3,615 4,140
Interest expense 284 281 223 754 770 729 666 581
Other income (expense), net 188 121 437
Income before income taxes 1,305 1,601 1,966 998 1,497 2,258 2,949 3,560
Income taxes 321 323 474 241 361 544 711 858
Earnings (loss) from unconsolidated entities (7) (14) 3 - - - - -
Net income 977 1,264 1,495 758 1,136 1,714 2,238 2,701

Diluted shares outstanding 343 345 343 342 342 342 342 342

EBITDA reconciliation
EBIT (GAAP) 1,401 1,761 1,752 1,753 2,268 2,987 3,615 4,140
Depreciation and amortization 484 479 467 526 541 556 572 589
EBITDA 1,885 2,240 2,219 2,279 2,809 3,544 4,187 4,730

Growth rates & margins

Revenue growth 0.2% 1.4% 3.0% 3.0% 3.5% 4.0% 4.5% 5.0%
COGS as % of sales 67.7% 65.7% 67.8% 65.0% 63.0% 60.0% 58.0% 56.0%
SG&A margin 21.9% 21.5% 19.8% 23.0% 22.0% 21.0% 20.0% 20.0%
Tax rate 24.6% 20.2% 24.1% 24.1% 24.1% 24.1% 24.1% 24.1%

CASH FLOW STATEMENT

2022P 2023P 2024P 2025P 2026P

12/31/22 12/31/23 12/31/24 12/31/25 12/31/26
Pat 758 1,136 1,714 2,238 2,701
D&A 526 541 556 572 589
SBC 68 70 72 75 79 83
Change in AR (702) (77) (91) (106) (123)
Change in Inv 69 (4) 13 (13) (18)
Change in AP (484) 7 (20) 21 29
Cash from operating activities 236.3 1675.4 2247.4 2790.8 3260.7

Cash from Investing activitites -292 -302 -314 -329 -345

Cash Flow remaining for Financing activitites (56) 1,373 1,933 2,462 2,916

FCF
Plus: Beginning Cash (56) 1,373 1,933 2,462 2,916
Less: Minimum Cash (111) (111) (111) (111) (111)
Cash Available for Debt Repayment (167) 1,262 1,822 2,351 2,805
Less: Mandatory Paydown (2,034) (2,034) (2,034) (2,034) (2,034)
Cash Available for Revolver Paydown (2,201) (772) (212) 317 771
Less: Revolver Paydown 2,201 772 212 (317) (771)
Cash Available for Discretionary Paydown - - - - -
Less: Discretionary Bank Debt Paydown - - - - -
Cash Available after Discretionary Debt Paydown - - - - -
Plus: Minimum Cash 111 111 111 111 111 111
Ending Cash 111 111 111 111 111

Debt Outstanding

Revolver 10000 sanctioned 6,657 8,858 9,630 9,842 9,525 8,754

Term Loan A 8,876 7,397 5,917 4,438 2,959 1,479
Mezzanine Debt 4,438 3,883 3,329 2,774 2,219 1,664

Mandatory Paydowns

Term Loan A (1,479) (1,479) (1,479) (1,479) (1,479)

Mezzanine Debt (555) (555) (555) (555) (555)

Interest Expense

Revolver 266 354 385 394 381

Term Loan A 266 222 178 133 89
Mezzanine Debt 222 194 166 139 111
Total Interest Expense 754 770 729 666 581

Scenario Analysis
2021 2022 2023 2024 2025 2026
12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026
Exit Multiple 12.0x
EBITDA 4,730
EnterPrise Value 56,755
Plus: Cash 111
Cash Available to paydown Debt 56,866
Less: Revolver (8,754)
Less: Bank Debt (1,479)
Cash Available to paydown Mezzanine Financing 46,632
Less: Mezzanine Paydown (1,664)
Cash Available for Preferred Equity Holders 44,968
Less: Preferred Dividend paydown -
Cash Available for Management Paydown 44,968
Less: Management paydown -
Cash Available for Investor 44,968

Initial Investment 7,486

Final realization 44,968

Cash on Cash 6.0x

IRR 43%
 Schedules 2018 A 2019 A 2020 A 2021 A 2022 E

Net sales 13,578 13,770 14,181 14,606

Cost of goods sold 9,197 9,043 9,621 9,494

Accounts receivable, net 1,576 1,537 1,489 2191

Inventories 1,226 1,284 1,398 1329
Accounts payable 2,387 2,471 2,573 2089

AR as % of Net Sales 12% 11% 11% 15%

INV as % of COGS 13% 14% 14% 14%
AP as % of COGS 26% 27% 26% 22%

Land 120 116 120 123

Buildings 2,061 2,021 2,135 2,238
Machinery and equipment 5,971 5,852 6,080 6,277
Capitalized software 438 496 543 594
Construction in progress 583 566 641 623

Opening Gross PPE 9855

Capex of the Year 578 586 505 553 292
Closing Gross PPE 9173 9051 9519 9855 10147
Less:: Accu DEP 5442 5439 5806 6028 6528
Property, net 3731 3612 3713 3827 3619

Capex as a% of Sales 4.3% 3.7% 3.9% 2%

Dep During the year 493 457 452 445 500

DEP as a % fixed assets 5.0% 4.9% 4.6% 5%

Opening Gross intangibles 2,612 2,552

Add during year -60 0
Closing Gross intagibles 3,448 2,677 2,612 2,552 2,552
Less:: Accu Amortization 121 143 169
other intangibles , net 2,491 2,409 2,383

ADD as a % of sales -0.42% 0.00%

Amortization during year' 23 27 27 22 26

Amortization as % of intagibles 0.9% 1.0% 0.9% 2%

2023 E 2024 E 2025 E 2026 E

15,118 15,722 16,430 17,251

9,524 9,433 9,529 9,661

2268 2358 2464 2588

1333 1321 1334 1353
2095 2075 2096 2125

15% 15% 15% 15%

14% 14% 14% 14%
22% 22% 22% 22%

10147 10449 10764 11093

302 314 329 345
10449 10764 11093 11438
7043 7573 8120 8683
3407 3191 2973 2755

2% 2% 2% 2%

515 530 546 563

5% 5% 5% 5%

2,552 2,552 2,552 2,552

0 0 0 0
2,552 2,552 2,552 2,552
195 221 247 273
2,357 2,331 2,305 2,279

0.00% 0.00% 0.00% 0.00%

26 26 26 26

2% 2% 2% 2%
 Entry EXIT
2024 2029

EBITDA Multiple 12x 12x

12x 15X
EBITDA 100 500

EV 1200 6000 Entry and Exit Multiple are sa

lbo

Buy Fix it up whatever cashflows the company gene

FCF=net income +NCC(D&A+SBC)+/-working capita

Entry and Exit Multiple are same means the company buying and selling at same relative value

cashflows the company generate will be used to repay debt

C(D&A+SBC)+/-working capital (-change in AR-change in INV +Change in AP)-Capex