DCF Valuation Modeling Strictly Confidential

Table of Contents Model Checks

Outputs Incorrect Date Set for Valuation? No

Inputs Incorrect Date Set for First Cash Flow? No
Model Terminal Growth Rate Greater Than or Equal To WACC? No
Model Exceeding Operational Capacity? No
Unused Tax Losses Remaining? (Levered Schedule) No
Unused Tax Losses Remaining? (Unlevered Schedule) No
Two UFCF Methods Different? No

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 Dashboard: Perpetuity Method

Model Drivers Set To 2 All figures in USD thousands unless stated

Main Outputs 1
Selected Inputs

Enterprise Equity Equity

Value Value Per Share Terminal Growth Rate 2.0%
128,313 WACC 9.7%
Best Case 1 159,082 4.65 Net Debt (End of 2022) 18,642
Base Case 2 109,671 3.21 Shares Outstanding (FD 000) 34,200
Worst Case 3 83,581 2.44 Current Stock Price (US$/sh) 2.23

Enterprise Value 1
Equity Value per Share

Terminal Growth Rate Terminal Growth Rate

128,313 1.0% 1.5% 2.0% 2.5% 3.0% 1.0% 1.5% 2.0% 2.5% 3.0%
7.7% 7.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
8.7% 8.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
WACC

WACC
9.7% 9.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
10.7% 10.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
11.7% 11.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Equity Value Premium (Discount) to Stock Price

Terminal Growth Rate Terminal Growth Rate

1.0% 1.5% 2.0% 2.5% 3.0% 1.0% 1.5% 2.0% 2.5% 3.0%
7.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 7.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
8.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 8.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
WACC

WACC

9.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 9.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
10.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 10.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
11.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 11.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

These tables require the workbook calculation to be set to automatic to update. ⁽¹⁾

DCF Valuation Modeling Page 2 of 17

 Dashboard: Multiple Method

Model Drivers Set To All figures in USD thousands unless stated

Main Outputs 1
Selected Inputs

Enterprise Equity Equity

Value Value Per Share Terminal Multiple 7.0x
129,228 WACC 9.7%
Best Case 1 148,509 4.34 Net Debt (End of 2022) 18,642
Base Case 2 110,586 3.23 Shares Outstanding (FD 000) 34,200
Worst Case 3 91,385 2.67 Current Stock Price (US$/sh) 2.23

Enterprise Value 1
Equity Value per Share

Terminal Multiple Terminal Multiple

129,228 6.0x 6.5x 7.0x 7.5x 8.0x 6.0x 6.5x 7.0x 7.5x 8.0x
7.7% 7.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
8.7% 8.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
WACC

WACC
9.7% 9.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
10.7% 10.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
11.7% 11.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Equity Value Premium (Discount) to Stock Price

Terminal Multiple Terminal Multiple

6.0x 6.5x 7.0x 7.5x 8.0x 6.0x 6.5x 7.0x 7.5x 8.0x
7.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 7.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
8.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 8.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
WACC

WACC

9.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 9.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
10.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 10.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
11.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 11.7% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

These tables require the workbook calculation to be set to automatic to update. ⁽¹⁾

DCF Valuation Modeling Page 3 of 17

 Drivers

All figures in USD thousands unless stated 2023F 2024F 2025F 2026F 2027F Term

Driver Switch 2

Sales Volume Growth 2.0% 1.0% 1.0% 0.5% 0.5% 0.5%

Best Case 3.0% 2.0% 2.0% 1.5% 1.5% 1.0%

Base Case 2.0% 1.0% 1.0% 0.5% 0.5% 0.5%
Worst Case 1.0% 1.0% 0.5% 0.5% 0.5% 0.5%

Pricing Increases 3.0% 1.0% 1.0% 1.0% 0.5% 0.5%

Best Case 3.5% 2.0% 2.0% 2.0% 1.5% 0.8%

Base Case 3.0% 1.0% 1.0% 1.0% 0.5% 0.5%
Worst Case 1.0% 1.0% 0.5% 0.5% 0.5% 0.5%

Capital Expenditure 4,550 4,700 4,850 5,000 5,125 5,300

Best Case 4,000 4,300 4,400 4,600 4,800 4,900

Base Case 4,550 4,700 4,850 5,000 5,125 5,300
Worst Case 5,000 5,200 5,400 5,500 5,600 5,800

Inflation Rate 3.5% 3.0% 3.0% 2.5% 2.5% 1.5%

Working Capital 1

Accounts Receivable (Days) 45 45 45 45 45 45

Inventory (Days) 25 25 25 25 25 25
Accounts Payable (Days) 40 40 40 40 40 40

We have assumed working capital amounts per day in terminal year are equal to the previous year. ⁽¹⁾

DCF Valuation Modeling Page 4 of 17

 Weighted Average Cost of Capital

All figures in USD thousands unless stated

Average Debt/ Debt/ Levered Unlevered

Name Region Debt Equity Tax Rate 1

Equity Capital Beta 2
Beta 3

Surge Batteries Inc. Europe 63,702 375,499 31.5% 17.0% 14.5% 0.85 0.76
Future Energy Co. Europe 43,422 311,425 32.2% 13.9% 12.2% 1.01 0.92
Clean Green Ltd. Europe 26,211 131,996 31.9% 19.9% 16.6% 1.34 1.18
Full Power Solutions Ltd. Europe 15,109 95,746 33.0% 15.8% 13.6% 0.99 0.90
Earthcor Power Inc. Europe 95,234 666,541 30.2% 14.3% 12.5% 0.88 0.80

Average 31.8% 16.2% 13.9% 1.01 0.91

Median 31.9% 15.8% 13.6% 0.99 0.90

Risk Premium for Equity Cost of Equity

Market Risk Premium 4.7% Risk Free Rate 2.4%

Average Unlevered Beta 0.91 Equity Risk Premium 4.8%
Levered Beta 4 1.03 Country Risk Premium 3.6%
Equity Risk Premium 4.8% Cost of Equity 10.8%

Capital Structure Cost of Debt

Current Target Pre-Tax Cost of Debt 5.2%

Total Debt 19,102 13.2% 15.0% Tax Rate 30.0%
Market Capitalization 126,120 86.8% 85.0% After-Tax Cost of Debt 3.6%
Total Capitalization 145,222 100.0% 100.0%

Debt / Equity 15.1% 17.6% Weighted Average Cost of Capital

Weight Cost
Tax Rate is a 5-Year Average. ⁽¹⁾ Debt Capital 15.0% 3.6%
Levered beta is based on 5-year monthly data. ⁽²⁾ Equity Capital 85.0% 10.8%
Unlevered Beta = Levered Beta / (1 + (1 - Tax Rate) × Debt-to-Equity) ⁽³⁾
Levered Beta = Unlevered Beta x (1 + (1 - Tax rate) x (Debt-to-Equity)) ⁽⁴⁾
Weighted Average Cost of Capital 9.7%

DCF Valuation Modeling Page 5 of 17

 Other Inputs

All figures in USD thousands unless stated

Dates End of 2022 Balances

Valuation Date (YY-MM-DD) 2023/03/31 Net Debt 18,642
First Expected Cash Flow (YY-MM-DD) 2023/06/30 Property Plant & Equipment 65,014
First Fiscal Year End for Forecast (YY-MM-DD) 2023/12/31 Tax Basis for PP&E 39,211
First Year of Forecast (YYYY) 2023 Tax Losses 24,128
Incorrect Date Set for Valuation? No
Incorrect Date Set for First Cash Flow? No
Days in Period 365

Other Inputs
Valuation Plant Capacity (Units/Day) 1,600
Shares Outstanding (FD 000) 34,200 Projected Interest Expense 2,520
Current Stock Price (US$/sh) 2.23 First Year Tax Depreciation 50%
Terminal Growth Rate 2.0% Blended Tax Depreciation Rate 15.0%
Terminal EBITDA Multiple 1
7.0x First Year Accounting Depreciation 50%
Weighted Average Cost of Capital (WACC) 9.7% Useful Life: Existing Assets (Years) 16.00
Terminal Growth Greater Than or Equal To WACC? No Useful Life: New Assets (Years) 20.00

The Terminal EBITDA multiple should reflect a 'steady-state' industry multiple. ⁽¹⁾

DCF Valuation Modeling Page 6 of 17

 Revenue Schedule

All figures in USD thousands unless stated 2020A 2021A 2022A 2023F 2024F 2025F 2026F 2027F Term
Model Running: Base Case Drivers

Days in Period 365 365 365 365 365 365 365 365 365 365
Plant Capacity 1,600

OPERATIONS

Sales Volume Growth 2.0% 2.1% 2.0% 1.0% 1.0% 0.5% 0.5% 0.5%

Sales Volume (Units/Day) 1,374 1,401 1,430 1,459 1,473 1,488 1,495 1,503 1,510
Plant Capacity (Units/Day) 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600
Operational Efficiency 85.9% 87.6% 89.4% 91.2% 92.1% 93.0% 93.5% 93.9% 94.4%

VOLUME

Days in Period 365 365 365 365 365 365 365 365 365
Sales Volume (Units/Day) 1,374 1,401 1,430 1,459 1,473 1,488 1,495 1,503 1,510
Sales Volume (Units) 501,510 511,365 521,950 532,389 537,713 543,090 545,805 548,534 551,277

PRICING

Pricing Increases 1.7% 2.1% 3.0% 1.0% 1.0% 1.0% 0.5% 0.5%
Unit Price (USD/Unit) 102.86 104.61 106.81 110.01 111.11 112.23 113.35 113.91 114.48

REVENUE

Sales Volume (Units) 501,510 511,365 521,950 532,389 537,713 543,090 545,805 548,534 551,277
Sales Price (USD/Unit) 102.86 104.61 106.81 110.01 111.11 112.23 113.35 113.91 114.48
Revenue 51,585 53,494 55,749 58,570 59,748 60,949 61,866 62,486 63,113

Operational Capacity Exceeded? No No No No No No No No No

DCF Valuation Modeling Page 7 of 17

 Cost Schedule

All figures in USD thousands unless stated 2020A 2021A 2022A 2023F 2024F 2025F 2026F 2027F Term
Model Running: Base Case Drivers

Sales Volume 501,510 511,365 521,950 532,389 537,713 543,090 545,805 548,534 551,277
Inflation 2.4% 2.2% 2.3% 3.5% 3.0% 3.0% 2.5% 2.5% 1.5%

VARIABLE COSTS

Materials (USD/Unit) 9.51 9.72 9.91 10.26 10.56 10.88 11.15 11.43 11.60
Packaging (USD/Unit) 0.82 0.84 0.86 0.89 0.92 0.94 0.97 0.99 1.01
Transportation (USD/Unit) 1.54 1.58 1.62 1.68 1.73 1.78 1.82 1.87 1.90
Subtotal 11.87 12.14 12.39 12.82 13.21 13.60 13.94 14.29 14.51

Materials 4,769 4,970 5,173 5,461 5,681 5,910 6,088 6,271 6,397
Packaging 411 430 449 474 493 513 528 544 555
Transportation 772 808 846 893 929 966 995 1,025 1,046
Subtotal 5,953 6,208 6,467 6,827 7,102 7,389 7,611 7,840 7,998

FIXED COSTS

Labor (USD/Unit) 31.17 31.24 31.31 31.77 32.40 33.04 33.70 34.37 34.71
Utilities (USD/Unit) 7.28 7.30 7.31 7.42 7.57 7.72 7.87 8.03 8.11
Insurance (USD/Unit) 4.91 4.92 4.93 5.01 5.11 5.21 5.31 5.42 5.47
Subtotal 43.36 43.45 43.55 44.19 45.07 45.96 46.88 47.81 48.29

Labor 15,630 15,973 16,341 16,913 17,420 17,943 18,392 18,851 19,134
Utilities 3,651 3,731 3,817 3,951 4,069 4,191 4,296 4,403 4,469
Insurance 2,463 2,517 2,575 2,665 2,745 2,827 2,898 2,971 3,015
Subtotal 21,744 22,221 22,733 23,529 24,235 24,962 25,586 26,225 26,619

SUMMARY

Variable Costs (USD/Unit) 11.87 12.14 12.39 12.82 13.21 13.60 13.94 14.29 14.51
Fixed Costs (USD/Unit) 43.36 43.45 43.55 44.19 45.07 45.96 46.88 47.81 48.29
Total Costs (USD/Unit) 55.23 55.59 55.94 57.02 58.28 59.57 60.82 62.10 62.79

Variable Costs 5,953 6,208 6,467 6,827 7,102 7,389 7,611 7,840 7,998
Fixed Costs 21,744 22,221 22,733 23,529 24,235 24,962 25,586 26,225 26,619
Total Costs 27,697 28,429 29,200 30,356 31,337 32,350 33,197 34,066 34,616

DCF Valuation Modeling Page 8 of 17

 Income Statement

All figures in USD thousands unless stated 2020A 2021A 2022A 2023F 2024F 2025F 2026F 2027F Term
Model Running: Base Case Drivers

Inflation 2.4% 2.2% 2.3% 3.5% 3.0% 3.0% 2.5% 2.5% 1.5%

Interest Expense 2,520

Tax Rate 30.0%

Revenue 51,585 53,494 55,749 58,570 59,748 60,949 61,866 62,486 63,113
COGS 27,697 28,429 29,200 30,356 31,337 32,350 33,197 34,066 34,616
Gross Profit 23,888 25,065 26,549 28,215 28,411 28,599 28,669 28,420 28,496

SG&A 5,877 6,006 6,144 6,359 6,550 6,746 6,915 7,088 7,194
Other 1,764 1,931 2,026 2,097 2,160 2,225 2,280 2,337 2,372
EBITDA 16,247 17,128 18,379 19,759 19,701 19,628 19,474 18,995 18,930

Depreciation 2,960 3,196 3,452 4,177 4,408 4,647 4,893 5,147 5,300
EBIT 13,287 13,932 14,927 15,582 15,293 14,980 14,581 13,849 13,630

Interest 1,488 2,580 2,448 2,520 2,520 2,520 2,520 2,520 2,520
EBT 11,799 11,352 12,479 13,062 12,773 12,460 12,061 11,329 11,110

Current Tax – – – – – 2,817 3,385 3,269 3,333

Deferred Tax 3,155 2,861 3,012 3,918 3,832 921 233 130 –
Total Tax 3,155 2,861 3,012 3,918 3,832 3,738 3,618 3,399 3,333

Net Income 8,644 8,491 9,467 9,143 8,941 8,722 8,442 7,930 7,777

DCF Valuation Modeling Page 9 of 17

 Working Capital Schedule

All figures in USD thousands unless stated 2020A 2021A 2022A 2023F 2024F 2025F 2026F 2027F Term
Model Running: Base Case Drivers

Days in Period 365 365 365 365 365 365 365 365 365
Revenue 51,585 53,494 55,749 58,570 59,748 60,949 61,866 62,486 63,113
COGS 27,697 28,429 29,200 30,356 31,337 32,350 33,197 34,066 34,616

AMOUNTS PER DAY 1

Accounts Receivable (Days) 40 43 43 45 45 45 45 45 45

Inventory (Days) 24 25 25 25 25 25 25 25 25
Accounts Payable (Days) 40 41 41 40 40 40 40 40 40

TOTAL AMOUNTS
Accounts Receivable 5,708 6,333 6,624 7,221 7,366 7,514 7,627 7,704 7,781
Inventory 1,792 1,923 2,009 2,079 2,146 2,216 2,274 2,333 2,371
Accounts Payable 3,024 3,205 3,319 3,327 3,434 3,545 3,638 3,733 3,794

NET WORKING CAPITAL

Current Assets 7,500 8,256 8,633 9,300 9,513 9,730 9,901 10,037 10,152
Current Liabilities 3,024 3,205 3,319 3,327 3,434 3,545 3,638 3,733 3,794
Net Working Capital 4,476 5,051 5,314 5,974 6,078 6,185 6,263 6,304 6,358

Cash from Working Capital Items (575) (263) (660) (105) (106) (78) (41) (55)

We have assumed working capital amounts per day in terminal year are equal to the previous year. ⁽¹⁾

DCF Valuation Modeling Page 10 of 17

 Depreciation Schedule

All figures in USD thousands unless stated 2020A 2021A 2022A 2023F 2024F 2025F 2026F 2027F
Model Running: Base Case Drivers

Capital Expenditure 4,982 5,199 4,400 4,550 4,700 4,850 5,000 5,125

EXISTING ASSET DEPRECIATION 1

Years Percent of Full Year
Useful Life: Existing Assets 16.00 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
PP&E at End of 2022 65,014 100% 100% 100% 100% 100%

NEW ASSET DEPRECIATION 1

Years Percent of Full Year
Useful Life: New Assets 20.00 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
First Year Accounting Depreciati 50% 50% 100% 100% 100% 100%

Percent of Full Year

Year Life 2023F 2024F 2025F 2026F 2027F
2023F 20.00 50.0% 100.0% 100.0% 100.0% 100.0%
2024F 20.00 – 50.0% 100.0% 100.0% 100.0%
2025F 20.00 – – 50.0% 100.0% 100.0%
2026F 20.00 – – – 50.0% 100.0%
2027F 20.00 – – – – 50.0%

Amounts for Depreciation

Year Capex Per Yr 2023F 2024F 2025F 2026F 2027F
2023F 4,550 228 114 228 228 228 228
2024F 4,700 235 – 118 235 235 235
2025F 4,850 243 – – 121 243 243
2026F 5,000 250 – – – 125 250
2027F 5,125 256 – – – – 128

TOTAL ASSET DEPRECIATION 2

Existing Assets 4,063 4,063 4,063 4,063 4,063

New Assets 114 345 584 830 1,083
Total Depreciation 4,177 4,408 4,647 4,893 5,147

All PP&E and capital expenditure is assumed depreciable (i.e. no land balance). ⁽¹⁾
This schedule calculates depreciation on a straight-line basis. ⁽²⁾

DCF Valuation Modeling Page 11 of 17

 Asset Schedule

All figures in USD thousands unless stated 2022A 2023F 2024F 2025F 2026F 2027F
Model Running: Base Case Drivers

Capital Expenditure 4,550 4,700 4,850 5,000 5,125

First Year Tax Depreciation 50%

Blended Tax Depreciation Rate 15.0%

PROPERTY PLANT & EQUIPMENT 1

Beginning 65,014 65,387 65,679 65,881 65,988

Capital Expenditure 4,550 4,700 4,850 5,000 5,125
Accounting Depreciation (4,177) (4,408) (4,647) (4,893) (5,147)
Ending 65,014 65,387 65,679 65,881 65,988 65,967

TAX BASIS 1

Beginning 39,211 37,538 36,255 35,303 34,632

Capital Expenditure 4,550 4,700 4,850 5,000 5,125
Tax Depreciation (6,223) (5,983) (5,802) (5,670) (5,579)
Ending 39,211 37,538 36,255 35,303 34,632 34,178

Model assumes no dispositions that would impact the PP&E or the Tax Basis. ⁽¹⁾

DCF Valuation Modeling Page 12 of 17

 Income Tax Schedule (Levered)

All figures in USD thousands unless stated 2022A 2023F 2024F 2025F 2026F 2027F
Model Running: Base Case Drivers

Earnings Before Tax (EBT) 13,062 12,773 12,460 12,061 11,329

Profitable Before Taxes? Yes Yes Yes Yes Yes

Tax Rate 30.0%

Unused Tax Losses Remaining? No

ADJUSTMENT FOR DEPRECIATION

EBT 13,062 12,773 12,460 12,061 11,329
Add: Accounting Depreciation 4,177 4,408 4,647 4,893 5,147
Less: Tax Depreciation (6,223) (5,983) (5,802) (5,670) (5,579)
EBT After Adjustment 11,016 11,198 11,306 11,284 10,896

ADJUSTMENT FOR TAX LOSSES 1

EBT After Adjustment 11,016 11,198 11,306 11,284 10,896

Less: Use of Tax Losses 2
(11,016) (11,198) (1,914) – –
Taxable Income – – 9,391 11,284 10,896

TAX LOSSES
Beginning 24,128 13,112 1,914 – –
Add: New Losses – – – – –
Less: Use of Tax Losses (11,016) (11,198) (1,914) – –
Ending 24,128 13,112 1,914 – – –

TAXES
Current Taxes – – 2,817 3,385 3,269
Deferred Taxes 3,918 3,832 921 233 130
Total Taxes 3,918 3,832 3,738 3,618 3,399

This schedule assumes that tax losses can be carried forward indefinitely into the future. ⁽¹⁾
This schedule assumes losses do not carry back to previous periods to reduce taxable income. ⁽²⁾

DCF Valuation Modeling Page 13 of 17

 Income Tax Schedule (Unlevered)

All figures in USD thousands unless stated 2022A 2023F 2024F 2025F 2026F 2027F
Model Running: Base Case Drivers

Earnings Before Interest & Tax (EBIT) 15,582 15,293 14,980 14,581 13,849
Profitable Before Taxes? Yes Yes Yes Yes Yes

Tax Rate 30.0%

Unused Tax Losses Remaining? No

ADJUSTMENT FOR DEPRECIATION

EBIT 15,582 15,293 14,980 14,581 13,849
Add: Accounting Depreciation 4,177 4,408 4,647 4,893 5,147
Less: Tax Depreciation (6,223) (5,983) (5,802) (5,670) (5,579)
EBIT After Adjustment 13,536 13,718 13,826 13,804 13,416

ADJUSTMENT FOR TAX LOSSES 1

EBIT After Adjustment 13,536 13,718 13,826 13,804 13,416

Less: Use of Tax Losses 2
(13,536) (10,592) – – –
Taxable Income – 3,126 13,826 13,804 13,416

TAX LOSSES
Beginning 24,128 10,592 – – –
Add: New Losses – – – – –
Less: Use of Tax Losses (13,536) (10,592) – – –
Ending 24,128 10,592 – – – –

TAXES
Current Taxes – 938 4,148 4,141 4,025
Deferred Taxes 4,674 3,650 346 233 130
Total Taxes 4,674 4,588 4,494 4,374 4,155

This schedule assumes that tax losses can be carried forward indefinitely into the future. ⁽¹⁾
This schedule assumes losses do not carry back to previous periods to reduce taxable income. ⁽²⁾

DCF Valuation Modeling Page 14 of 17

 Unlevered Free Cash Flow Schedule

All figures in USD thousands unless stated 2023F 2024F 2025F 2026F 2027F Term
Model Running: Base Case Drivers

TAX SHIELD FROM INTEREST Line Item Term

Current Taxes (Unlevered) EBIT 13,630 – 938 4,148 4,141 4,025 4,089
Current Taxes (Levered) EBT 11,110 – – 2,817 3,385 3,269 3,333
Total Tax Shield Tax Rate 30% – 938 1,330 756 756 756

EBITDA METHOD
EBITDA 19,759 19,701 19,628 19,474 18,995 18,930
Current Taxes – (938) (4,148) (4,141) (4,025) (4,089)
Capital Expenditure (4,550) (4,700) (4,850) (5,000) (5,125) (5,300)
Change in Working Capital (660) (105) (106) (78) (41) (55)
Unlevered Free Cash Flow 14,549 13,959 10,523 10,255 9,805 9,486

NET INCOME METHOD

Net Income 9,143 8,941 8,722 8,442 7,930 7,777
Depreciation 1 4,177 4,408 4,647 4,893 5,147 5,300
Deferred Tax 2 3,918 3,832 921 233 130 –
Interest Expense 2,520 2,520 2,520 2,520 2,520 2,520
Tax Shield From Interest – (938) (1,330) (756) (756) (756)
Capital Expenditure (4,550) (4,700) (4,850) (5,000) (5,125) (5,300)
Change in Working Capital (660) (105) (106) (78) (41) (55)
Unlevered Free Cash Flow 14,549 13,959 10,523 10,255 9,805 9,486

Two UFCF Methods Different? No No No No No No

Capital expenditure has been set equal to depreciation in the terminal year. ⁽¹⁾
This schedule assumes no deferred taxes in the terminal year. ⁽²⁾

DCF Valuation Modeling Page 15 of 17

 Discounted Cash Flow Schedule: Perpetuity Method

All figures in USD thousands unless stated

Model Running: Base Case Drivers Valuation Discrete Forecast Term
(YY-MM-DD) (YY-MM-DD) (YY-MM-DD) (YY-MM-DD) (YY-MM-DD) (YY-MM-DD) (YY-MM-DD)
Terminal Growth 2.0% Fiscal Year End 23/03/31 23/12/31 24/12/31 25/12/31 26/12/31 27/12/31 28/12/31
WACC 9.7% Cash Flow Timing 23/03/31 23/06/30 24/06/30 25/06/30 26/06/30 27/06/30 28/06/30

Unlevered Free Cash Flow – 14,549 13,959 10,523 10,255 9,805 9,486

UNADJUSTED CASH FLOW

Discrete Forecast – 14,549 13,959 10,523 10,255 9,805
Terminal Value – – – – – 122,513
Total Cash Flow – 14,549 13,959 10,523 10,255 132,318

ADJUSTED CASH FLOW

Partial Period Adjustment – 75.0% 100.0% 100.0% 100.0% 100.0%

Discrete Forecast – 10,912 13,959 10,523 10,255 9,805

Terminal Value – – – – – 122,513
Total Cash Flow – 10,912 13,959 10,523 10,255 132,318

DISCOUNTED CASH FLOW

Years for Discounting – 0.25 1.25 2.25 3.25 4.25

Discrete Forecast – 10,661 12,427 8,537 7,580 6,604

Terminal Value – – – – – 82,524
Total Cash Flow – 10,661 12,427 8,537 7,580 89,129

ENTERPRISE VALUE ENTERPRISE VALUE

Manual Method 128,334 PV of Discrete 36% 45,810
XNPV Function 1 128,313 PV of Terminal 64% 82,524
Enterprise Value 100% 128,334

EQUITY VALUE EQUITY VALUE PER SHARE

Enterprise Value 128,313 Equity Value 109,671
Less: Net Debt (18,642) Shares Outstanding (FD 000) 34,200
Equity Value 109,671 Equity Value ($/sh) 3.21

The Enterprise Value from the XNPV Function is slightly different due to treatment of leap years. ⁽¹⁾

DCF Valuation Modeling Page 16 of 17

 Discounted Cash Flow Schedule: Multiple Method

All figures in USD thousands unless stated

Model Running: Base Case Drivers Valuation Discrete Forecast Term
(YY-MM-DD) (YY-MM-DD) (YY-MM-DD) (YY-MM-DD) (YY-MM-DD) (YY-MM-DD) (YY-MM-DD)
Terminal Multiple 7.0x Fiscal Year End 23/03/31 23/12/31 24/12/31 25/12/31 26/12/31 27/12/31 28/12/31
WACC 9.7% Cash Flow Timing 23/03/31 23/06/30 24/06/30 25/06/30 26/06/30 27/06/30 28/06/30

Unlevered Free Cash Flow 14,549 13,959 10,523 10,255 9,805 9,486
EBITDA 18,930

UNADJUSTED CASH FLOW

Discrete Forecast Terminal – 14,549 13,959 10,523 10,255 9,805 9,486
Terminal Value 1 Adjustment – – – – – – 126,489
Total Cash Flow 0.50 – 14,549 13,959 10,523 10,255 9,805 135,975

ADJUSTED CASH FLOW

Partial Period Adjustment – 75.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Discrete Forecast – 10,912 13,959 10,523 10,255 9,805 9,486

Terminal Value – – – – – – 126,489
Total Cash Flow – 10,912 13,959 10,523 10,255 9,805 135,975

DISCOUNTED CASH FLOW

Years for Discounting – 0.25 1.25 2.25 3.25 4.25 5.25

Discrete Forecast – 10,661 12,427 8,537 7,580 6,604 5,823

Terminal Value – – – – – – 77,638
Total Cash Flow – 10,661 12,427 8,537 7,580 6,604 83,461

ENTERPRISE VALUE ENTERPRISE VALUE

Manual Method 129,271 PV of Discrete 40% 51,633
XNPV Function 2 129,228 PV of Terminal 60% 77,638
Enterprise Value 100% 129,271

EQUITY VALUE EQUITY VALUE PER SHARE

Enterprise Value 129,228 Equity Value 110,586
Less: Net Debt (18,642) Shares Outstanding (FD 000) 34,200
Equity Value 110,586 Equity Value ($/sh) 3.23

We have applied an LTM multiple to the EBITDA at the end of the terminal year to calculate the Terminal Value. ⁽¹⁾
The Enterprise Value from the XNPV Function is slightly different from the Manual Method due to treatment of leap years. ⁽²⁾

DCF Valuation Modeling Page 17 of 17