Illustrative LBO Analysis

Master Case

LTM EBITDA
$90

Transaction Assumptions Financing

EV / LTM Transaction Transaction Management Financing
EBITDA Value Expenses Rollover % Case
Running: 1 8.0x $720 $15 5.0% 1
1 8.0x $720 $15 5.0% 1
2 8.5x 765 15 5.0% 1
3 9.0x 810 15 5.0% 1
4 9.5x 855 15 5.0% 1
5 10.0x 900 15 5.0% 1
6 8.0x 720 15 5.0% 2
7 8.5x 765 15 5.0% 2
8 9.0x 810 15 5.0% 2
9 9.5x 855 15 5.0% 2
10 10.0x 900 15 5.0% 2
11 8.0x 720 15 5.0% 3
12 8.5x 765 15 5.0% 3
13 9.0x 810 15 5.0% 3
14 9.5x 855 15 5.0% 3
15 10.0x 900 15 5.0% 3
Illustrative LBO Analysis
Financing Cases

Financing Case: 1
FinStep: 12

1 RUNNING: Base Financing Case

Leverage
Revolver NA
Term Loan B 3.0x
Senior Notes 2.0x
Subordinated Notes 1.0x

Revolver Commitment: $100

Commitment Fee: 0.350%

1 Base Financing Case

Leverage
Revolver NA
Term Loan B 3.0x
Senior Notes 2.0x
Subordinated Notes 1.0x

Revolver Commitment: $100

Commitment Fee: 0.350%

2 High Leverage

Leverage
Revolver NA
Term Loan B 3.0x
Senior Notes 2.5x
Subordinated Notes 2.0x

Revolver Commitment: $100

Commitment Fee: 0.350%

3 Low Leverage

Leverage
Revolver NA
Term Loan B 3.0x
Senior Notes 1.5x
Subordinated Notes 0.0x

Revolver Commitment: $100

Commitment Fee: 0.350%
 Interest Interest Annual Financing
Term Type Rate Amort. Years PIK Fees
5 yr FLOAT L+2.000% NA NA 0.500%
6 yr FLOAT L+3.000% 1.00% NA 1.250%
8 yr FIXED 7.000% 0.00% 0 yr 2.000%
10 yr FIXED 8.500% 0.00% 3 yr 2.500%

Interest Interest Annual Financing

Term Type Rate Amort. Years PIK Fees
5 yr FLOAT L+2.000% NA NA 0.500%
6 yr FLOAT L+3.000% 1.00% NA 1.250%
8 yr FIXED 7.000% 0.00% 0 yr 2.000%
10 yr FIXED 8.500% 0.00% 3 yr 2.500%

Interest Interest Annual Financing

Term Type Rate Amort. Years PIK Fees
5 yr FLOAT L+2.000% NA NA 0.500%
6 yr FLOAT L+3.500% 1.00% NA 1.250%
8 yr FIXED 7.000% 0.00% 0 yr 2.000%
10 yr FIXED 10.000% 0.00% 3 yr 2.500%

Interest Interest Annual Financing

Term Type Rate Amort. Years PIK Fees
5 yr FLOAT L+2.000% NA NA 0.500%
6 yr FLOAT L+2.750% 1.00% NA 1.250%
8 yr FIXED 6.000% 0.00% 0 yr 2.000%
10 yr FIXED 8.500% 0.00% 3 yr 2.500%
Illustrative LBO Analysis
Completed LBO Model

x Transaction Assumptions
($ in millions, except where otherwise specified)

Sources & Uses Transaction Assumptions

Sources $ % LTM Adj. EBITDA

Cash On-Hand -- -- Illustrative Transaction Multiple
Revolver Draw -- -- Transaction Value
Term Loan B 275 36.9% ( - ) Debt
Senior Notes 175 23.5% ( + ) Cash
Subordinated Notes 100 13.4% Equity Value
Management Rollover 36 4.8%
Sponsor Equity 159 21.3% Memo: Management Rollover
Total Sources $745 100.0% Management Rollover - %
Management Rollover - $
Uses $ %
Purchase Equity $720 96.7%
Refinance Existing Debt -- -- Purchase Accounting
Refinancing Expenses -- --
Fund Cash Balance -- -- Total Equity Value
Transaction Expenses 15 2.0% ( - ) Total Assets (excl. goodwill)
Financing Fees 10 1.3% ( + ) Total Liabilities
Total Uses $745 100.0% PF Goodwill
CHECK: TRUE

Other Assumptions CHECKS

Minimum Cash Balance $5 Balance Sheet:

Minimum Debt Increment 25 Sources & Uses
Transaction Expenses 15
Cash Interest Rate 0.250%
Illustrative Tax Rate 35.0%

CIRC On

x PF Income Statement
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, 2015A 2016A 2017E 2018E 2019E
Revenue $327 $342 $359 $381 $407
% Growth 4.6% 5.0% 6.0% 7.0%

Adj. EBITDA $85 $90 $95 $100 $107

% Margin 26.0% 26.3% 26.3% 26.3% 26.3%
% Growth 5.9% 5.0% 6.0% 7.0%
 ( - ) D&A ($15) ($17) ($18) ($19) ($20)
Adj. EBIT $70 $73 $77 $81 $87
% Margin 21.4% 21.3% 21.3% 21.3% 21.3%
% Growth 4.3% 5.0% 6.0% 7.0%

( - ) Net Interest Expense On ($32) ($33) ($32)

Adj. EBT $45 $49 $54

( - ) Illustrative Tax Expense ($16) ($17) ($19)

Adj. Net Income $29 $32 $35
% Margin -- -- 8.1% 8.3% 8.7%
% Growth -- -- 8.5% 11.9%

Memo:
Revenue Growth (%) 4.6% 5.0% 6.0% 7.0%
COGS (% of Sales) 40.0% 40.0% 40.0% 40.0% 40.0%
EBITDA Margin (%) 26.0% 26.3% 26.3% 26.3% 26.3%
D&A (% of Sales) 4.6% 5.0% 5.0% 5.0% 5.0%
CapEx (% of Sales) 5.2% 5.0% 5.0% 5.0% 5.0%

x PF Working Capital
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, 2015A 2016A 2017E 2018E 2019E

Memo:
Sales $327 $342 $359 $381 $407
COGS 131 137 144 152 163
Days
Key Assumptions 360
Days Sales Outstanding (DSO) 94.7 94.7 94.7 94.7
Days Inventory Held (DIH) 118.4 118.4 118.4 118.4
Days Payable Outstanding (DPO) 115.8 115.8 115.8 115.8
Cash Conversion Cycle 97.4 97.4 97.4 97.4

Other Current Assets (% of Sales) 2.0% 2.0% 2.0% 2.0%

Accrued Expenses (% of Sales) 10.8% 10.8% 10.8% 10.8%
Other Current Liabilities (% of Sales) 0.9% 0.9% 0.9% 0.9%

Calculated NWC
Net Accounts Receivable $90 $95 $100 $107
Inventory 45 47 50 54
Other Current Assets 7 7 8 8
Current Assets $142 $149 $158 $169

Accounts Payable $44 $46 $49 $52

Accrued Expenses 37 39 41 44
Other Current Liablities 3 3 3 4
Current Liabilities $84 $88 $93 $100
 Net Working Capital (NWC) $58 $61 $65 $69
(Increase) Decrease in NWC ($3) ($4) ($5)

x PF Balance Sheet
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, 2016A PF 2016 2017E 2018E 2019E
Assets
Cash $5 $5 $5 $5 $5
Net Accounts Receivable 90 90 95 100 107
Inventory 45 45 47 50 54
Other Current Assets 7 7 7 8 8
Total Current Assets $147 $147 $154 $163 $174
Net PP&E 78 78 78 78 78
Goodwill 20 580 580 580 580
Other Noncurrent Assets 6 16 15 13 12
Total Assets $251 $821 $827 $834 $844

Liabilities & Shareholders' Equity

Accounts Payable $44 $44 $46 $49 $52
Accrued Expenses 37 37 39 41 44
Other Current Liabilities 3 3 3 3 4
Total Current Liabilities $84 $84 $88 $93 $100

Total Debt -- $550 $522 $493 $461

Other Noncurrent Liabilities 7 7 7 7 7
Total Liabilities $91 $641 $618 $594 $568

Shareholders' Equity $160 $180 $209 $241 $276

Total Liabilities & Shareholders' Equity $251 $821 $827 $834 $844
CHECK: TRUE TRUE TRUE TRUE TRUE

x PF Statement of Cash Flows

($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, 2015A 2016A 2017E 2018E 2019E
Cash from Operating Activities
Net Income $29 $32 $35
( + ) D&A 18 19 20
( + ) Noncash Interest Expense 10 11 12
( + / - ) Change in NWC (3) (4) (5)
Cash from Operating Activities $54 $58 $63
( - ) CapEx (17) (17) (18) (19) (20)
Levered Free Cash Flow $36 $39 $43

Beginning Cash Balance $5 $5 $5

( + ) Levered Free Cash Flow 36 39 43
( - ) Minimum Cash Balance (5) (5) (5)
Total Cash Available for Debt Repayment $36 $39 $43
 ( - ) Mandatory Amortization ($3) ($3) ($3)
( - ) Optional Prepayment (34) (36) (40)

( + ) Minimum Cash Balance $5 $5 $5

Ending Cash Balance $5 $5 $5 $5

Memo:
Average Cash Balance $5 $5 $5
Cash Interest Income 0.250% 0 0 0

x PF Debt Schedule
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, PF 2016 2017E 2018E 2019E

Ending Debt Balance

Revolver -- -- -- --
Term Loan B 275 239 200 157
Senior Notes 175 175 175 175
Subordinated Notes 100 109 119 129
Total $550 $522 $493 $461
% of Original 95.0% 89.6% 83.8%

Memo:
Undrawn Revolver Commitment $100 $100 $100 $100 $100

Cash Available for Debt Repayment $36 $39 $43

Mandatory Amortization Schedule

Revolver -- -- --
Term Loan B 1.0% 1.0% 1.0%
Senior Notes -- -- --
Subordinated Notes -- -- --

Mandatory Amortization
Revolver -- -- --
Term Loan B (3) (3) (3)
Senior Notes -- -- --
Subordinated Notes -- -- --
Total ($3) ($3) ($3)

Cash Available for Optional Prepayment $34 $36 $40

Optional Prepayment
Revolver -- -- --
Term Loan B (34) (36) (40)
Senior Notes -- -- --
Subordinated Notes -- -- --
Total ($34) ($36) ($40)
x PF Interest Expense
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, 2017E 2018E 2019E

LIBOR 0.500% 1.100% 1.500%

Debt Balance
Undrawn Revolver $100 $100 $100
Revolver -- -- --
Term Loan B 257 219 178
Senior Notes 175 175 175
Subordinated Notes 104 114 124

Interest Rate Schedule Type Rate

Undrawn Revolver FIXED 0.350% 0.350% 0.350% 0.350%
Revolver FLOAT L+2.000% 2.500% 3.100% 3.500%
Term Loan B FLOAT L+3.000% 3.500% 4.100% 4.500%
Senior Notes FIXED 7.000% 7.000% 7.000% 7.000%
Subordinated Notes FIXED 8.500% 8.500% 8.500% 8.500%

Interest Expense
Undrawn Revolver $0 $0 $0
Revolver -- -- --
Term Loan B 9 9 8
Senior Notes 12 12 12
Subordinated Notes 9 10 11
Total $30 $31 $31

PIK Interest Expense Years PIK

Senior Notes 0 yr -- -- --
Subordinated Notes 3 yr 9 10 11
Total $9 $10 $11

Financing Fee Amortization Fee Term

Revolver $1 5 yr $0 $0 $0
Term Loan B 3 6 yr 1 1 1
Senior Notes 4 8 yr 0 0 0
Subordinated Notes 3 10 yr 0 0 0
Total $1 $1 $1

Net Interest Expense

Interest Expense $30 $31 $31
( + ) Financing Fee Amortization 1 1 1
Total Interest Expense $32 $33 $33
( - ) Interest Income (0) (0) (0)
Net Interest Expense $32 $33 $32

Noncash Interest Expense

PIK Interest Expense $9 $10 $11
( + ) Financing Fee Amortization 1 1 1
Total Noncash Interest Expense $10 $11 $12
x PF Credit Metrics
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, PF 2016 2017E 2018E 2019E

Outstanding Debt
Senior Secured Debt $275 $239 $200 $157
Senior Debt 450 414 375 332
Total Debt 550 522 493 461

Line Items
Adj. EBITDA $90 $95 $100 $107
Cash Interest Expense 22 22 22 21
CapEx 17 18 19 20

Leverage
Senior Secured Debt / Adj. EBITDA 3.1x 2.5x 2.0x 1.5x
Senior Debt / Adj. EBITDA 5.0 4.4 3.7 3.1
Total Debt / Adj. EBITDA 6.1 5.5 4.9 4.3

Interest Coverage
Adj. EBITDA / Cash Interest Expense 4.2x 4.4x 4.6x 5.2x
Adj. EBITDA - CapEx / Cash Interest Expense 3.4 3.6 3.8 4.2

x Illustrative Returns
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, PF 2016 2017E 2018E 2019E

LTM Adj. EBITDA $95 $100 $107

Total Debt $522 $493 $461

( - ) Cash (5) (5) (5)
Net Debt $517 $488 $456

Enterprise Value
(Based on Multiple of LTM Adj. EBITDA)

7.0x $662 $701 $750

7.5x 709 751 804
8.0x 756 801 857
8.5x 803 851 911
9.0x 851 902 965
9.5x 898 952 1,018
10.0x 945 1,002 1,072
10.5x 992 1,052 1,125
11.0x 1,040 1,102 1,179
Total Equity Value
(Based on Multiple of LTM Adj. EBITDA)

7.0x $144 $213 $294

7.5x 191 263 348
8.0x 239 313 402
8.5x 286 363 455
9.0x 333 413 509
9.5x 380 464 562
10.0x 428 514 616
10.5x 475 564 670
11.0x 522 614 723

MoIC Investment
(Based on Multiple of LTM Adj. EBITDA) $195

7.0x 0.74x 1.09x 1.51x

7.5x 0.98 1.35 1.79
8.0x 1.22 1.61 2.06
8.5x 1.47 1.86 2.34
9.0x 1.71 2.12 2.61
9.5x 1.95 2.38 2.89
10.0x 2.19 2.63 3.16
10.5x 2.44 2.89 3.43
11.0x 2.68 3.15 3.71

IRR
(Based on Multiple of LTM Adj. EBITDA) Years: 1 yr 2 yr 3 yr

7.0x (26.1%) 4.6% 14.7%

7.5x (1.8%) 16.2% 21.3%
8.0x 22.4% 26.8% 27.2%
8.5x 46.6% 36.5% 32.7%
9.0x 70.9% 45.6% 37.7%
9.5x 95.1% 54.2% 42.4%
10.0x 119.4% 62.3% 46.7%
10.5x 143.6% 70.1% 50.9%
11.0x 167.8% 77.4% 54.8%
 Financing Assumptions
Interest Interest Annual
$90 Leverage Term Type Rate Amort.
8.0x Revolver NA 5 yr FLOAT L+2.000% NA
$720 Term Loan B 3.0x 6 yr FLOAT L+3.000% 1.00%
-- Senior Notes 2.0x 8 yr FIXED 7.000% 0.00%
-- Subordinated Notes 1.0x 10 yr FIXED 8.500% 0.00%
$720
Revolver Commitment: $100
Commitment Fee: 0.350%
5.0%
$36
Debt Financing

$ Leverage Fees - $
Revolver -- $1
$720 Term Loan B 275 3.1x 3
(231) Senior Secured Debt $275 3.1x
91 Senior Notes 175 1.9x 4
$580 Senior Debt $450 5.0x
Subordinated Notes 100 1.1x 3
Total $550 6.1x $10

TRUE
TRUE

2020E 2021E 2022E 2023E 2024E

$432 $453 $471 $490 $510
6.0% 5.0% 4.0% 4.0% 4.0%

$114 $119 $124 $129 $134

26.3% 26.3% 26.3% 26.3% 26.3%
6.0% 5.0% 4.0% 4.0% 4.0%
 ($21) ($23) ($23) ($24) ($25)
$92 $97 $101 $105 $109
21.3% 21.3% 21.3% 21.3% 21.3%
6.0% 5.0% 4.0% 4.0% 4.0%

($32) ($30) ($28) ($25) ($21)

$60 $66 $72 $80 $88

($21) ($23) ($25) ($28) ($31)

$39 $43 $47 $52 $57
9.0% 9.5% 10.0% 10.6% 11.2%
10.4% 10.4% 9.1% 10.4% 9.6%

6.0% 5.0% 4.0% 4.0% 4.0%

40.0% 40.0% 40.0% 40.0% 40.0%
26.3% 26.3% 26.3% 26.3% 26.3%
5.0% 5.0% 5.0% 5.0% 5.0%
5.0% 5.0% 5.0% 5.0% 5.0%

2020E 2021E 2022E 2023E 2024E

$432 $453 $471 $490 $510

173 181 189 196 204

94.7 94.7 94.7 94.7 94.7

118.4 118.4 118.4 118.4 118.4
115.8 115.8 115.8 115.8 115.8
97.4 97.4 97.4 97.4 97.4

2.0% 2.0% 2.0% 2.0% 2.0%

10.8% 10.8% 10.8% 10.8% 10.8%
0.9% 0.9% 0.9% 0.9% 0.9%

$114 $119 $124 $129 $134

57 60 62 65 67
9 9 10 10 10
$179 $188 $196 $204 $212

$56 $58 $61 $63 $66

47 49 51 53 55
4 4 4 4 4
$106 $111 $116 $120 $125
 $73 $77 $80 $83 $86
($4) ($4) ($3) ($3) ($3)

2020E 2021E 2022E 2023E 2024E

$5 $5 $5 $5 $5
114 119 124 129 134
57 60 62 65 67
9 9 10 10 10
$184 $193 $201 $209 $217
78 78 78 78 78
580 580 580 580 580
10 9 8 7 7
$853 $860 $867 $874 $881

$56 $58 $61 $63 $66

47 49 51 53 55
4 4 4 4 4
$106 $111 $116 $120 $125

$425 $384 $338 $289 $235

7 7 7 7 7
$538 $502 $461 $416 $367

$315 $358 $405 $457 $514

$853 $860 $867 $874 $881
TRUE TRUE TRUE TRUE TRUE

2020E 2021E 2022E 2023E 2024E

$39 $43 $47 $52 $57

21 23 23 24 25
1 1 1 1 1
(4) (4) (3) (3) (3)
$58 $63 $69 $74 $80
(21) (23) (23) (24) (25)
$36 $41 $45 $49 $54

$5 $5 $5 $5 $5
36 41 45 49 54
(5) (5) (5) (5) (5)
$36 $41 $45 $49 $54
 ($3) ($3) ($3) ($3) --
(34) (38) (42) (47) (54)

$5 $5 $5 $5 $5
$5 $5 $5 $5 $5

$5 $5 $5 $5 $5
0 0 0 0 0

2020E 2021E 2022E 2023E 2024E

-- -- -- -- --
120 80 34 -- --
175 175 175 160 106
129 129 129 129 129
$425 $384 $338 $289 $235
77.2% 69.8% 61.5% 52.6% 42.7%

$100 $100 $100 $100 $100

$36 $41 $45 $49 $54

-- -- -- -- --
1.0% 1.0% 1.0% 1.0% 1.0%
-- -- -- -- --
-- -- -- -- --

-- -- -- -- --
(3) (3) (3) (3) --
-- -- -- -- --
-- -- -- -- --
($3) ($3) ($3) ($3) --

$34 $38 $42 $47 $54

-- -- -- -- --
(34) (38) (42) (32) --
-- -- -- (15) (54)
-- -- -- -- --
($34) ($38) ($42) ($47) ($54)
2020E 2021E 2022E 2023E 2024E

2.150% 2.500% 3.000% 3.000% 3.000%

$100 $100 $100 $100 $100

-- -- -- -- --
139 100 57 17 --
175 175 175 168 133
129 129 129 129 129

0.350% 0.350% 0.350% 0.350% 0.350%

4.150% 4.500% 5.000% 5.000% 5.000%
5.150% 5.500% 6.000% 6.000% 6.000%
7.000% 7.000% 7.000% 7.000% 7.000%
8.500% 8.500% 8.500% 8.500% 8.500%

$0 $0 $0 $0 $0
-- -- -- -- --
7 6 3 1 --
12 12 12 12 9
11 11 11 11 11
$31 $29 $27 $24 $21

-- -- -- -- --
-- -- -- -- --
-- -- -- -- --

$0 $0 -- -- --
1 1 1 -- --
0 0 0 0 0
0 0 0 0 0
$1 $1 $1 $1 $1

$31 $29 $27 $24 $21

1 1 1 1 1
$32 $30 $28 $25 $21
(0) (0) (0) (0) (0)
$32 $30 $28 $25 $21

-- -- -- -- --
1 1 1 1 1
$1 $1 $1 $1 $1
2020E 2021E 2022E 2023E 2024E

$120 $80 $34 -- --

295 255 209 160 106
425 384 338 289 235

$114 $119 $124 $129 $134

31 29 27 24 21
21 23 23 24 25

1.1x 0.7x 0.3x -- --

2.6 2.1 1.7 1.2 0.8
3.7 3.2 2.7 2.2 1.7

3.7x 4.1x 4.6x 5.4x 6.5x

3.0 3.3 3.7 4.3 5.3

2020E 2021E 2022E 2023E 2024E

$114 $119 $124 $129 $134

$425 $384 $338 $289 $235

(5) (5) (5) (5) (5)
$420 $379 $333 $284 $230

$795 $835 $868 $903 $939

852 895 930 968 1,006
909 954 993 1,032 1,074
966 1,014 1,055 1,097 1,141
1,023 1,074 1,117 1,161 1,208
1,079 1,133 1,179 1,226 1,275
1,136 1,193 1,241 1,290 1,342
1,193 1,253 1,303 1,355 1,409
1,250 1,312 1,365 1,419 1,476
 $376 $456 $535 $619 $710
433 516 597 684 777
489 576 659 748 844
546 635 721 813 911
603 695 783 877 978
660 755 845 942 1,045
717 814 907 1,006 1,112
773 874 969 1,071 1,179
830 933 1,031 1,135 1,246

1.93x 2.34x 2.74x 3.18x 3.64x

2.22 2.65 3.06 3.51 3.98
2.51 2.95 3.38 3.84 4.33
2.80 3.26 3.70 4.17 4.67
3.09 3.56 4.02 4.50 5.02
3.38 3.87 4.34 4.83 5.36
3.68 4.18 4.65 5.16 5.70
3.97 4.48 4.97 5.49 6.05
4.26 4.79 5.29 5.82 6.39

4 yr 5 yr 6 yr 7 yr 8 yr

17.8% 18.5% 18.3% 17.9% 17.5%

22.0% 21.5% 20.5% 19.6% 18.9%
25.9% 24.2% 22.5% 21.2% 20.1%
29.4% 26.7% 24.4% 22.6% 21.3%
32.6% 28.9% 26.1% 24.0% 22.3%
35.6% 31.1% 27.7% 25.2% 23.4%
38.5% 33.1% 29.2% 26.4% 24.3%
41.1% 35.0% 30.6% 27.6% 25.2%
43.7% 36.8% 32.0% 28.6% 26.1%
 Financing
Years PIK Fees
NA 0.500%
NA 1.250%
0 yr 2.000%
3 yr 2.500%
Illustrative LBO Analysis
Ability-To-Pay Analysis

x Ability To Pay Analysis

($ in millions, except where otherwise specified)

Illustrative Exit Multiple 7.0x 8.0x

FYE 2021E Exit (5 Years)

LTM Adj. EBITDA $119 $119
Transaction Value $835 $954
( - ) Net Debt @ FYE 2021 (379) (379)
Equity Value $456 $576

Required IRR 20.0% 22.5% 25.0% 20.0% 22.5%

Holding Period 5 yr 5 yr 5 yr 5 yr 5 yr
Implied MoIC 2.49x 2.76x 3.05x 2.49x 2.76x
Invested Equity $183 $165 $150 $231 $209
( + ) Debt Raised 550 550 550 550 550
( + ) Cash On-Hand -- -- -- -- --
Total Implied Sources $733 $715 $700 $781 $759
( - ) Refinance Debt -- -- -- -- --
( - ) Fund Cash Balance -- -- -- -- --
( - ) Expenses (25) (25) (25) (25) (25)
Implied Equity Purchase Price $708 $690 $675 $756 $734
( + ) Net Debt -- -- -- -- --
Implied Transaction Value $708 $690 $675 $756 $734
LTM EBITDA Multiple $90 7.9x 7.7x 7.5x 8.4x 8.2x
 9.0x

$119
$1,074
(379)
$695

25.0% 20.0% 22.5% 25.0%

5 yr 5 yr 5 yr 5 yr
3.05x 2.49x 2.76x 3.05x
$189 $279 $252 $228
550 550 550 550
-- -- -- --
$739 $829 $802 $778
-- -- -- --
-- -- -- --
(25) (25) (25) (25)
$714 $804 $777 $753
-- -- -- --
$714 $804 $777 $753
7.9x 8.9x 8.6x 8.4x
Illustrative LBO Analysis
Value Creation

x Value Creation Analysis (5 Years)

($ in millions, except where otherwise specified)
Cumulative Change
Entry Exit (2021) $ %
LTM Revenue $342 $453 $111 32.5%
LTM Adj. EBITDA $90 $119 $29 32.5%
% Margin 26.3% 26.3% --
Transaction Multiple 8.0x 10.0x 2.0x 25.0%
Transaction Value $720 $1,193 $473 65.7%
Net Debt ($550) ($379) $171 (31.1%)
Fees 25 (5) (30)
Sponsor Equity $195 $809 $614 315.1%

Value Creation Build

Starting Equity Value $195 %
( - ) Fees (30) (4.9%)
( + ) EBITDA Growth 234 38.2%
( + ) Multiple Expansion 239 38.8%
( + ) Debt Paydown 171 27.9%
Total Value Creation $614 100.0%
Ending Equity Value $809
MoIC 4.15x
Illustrative LBO Analysis
Equity Waterfall

x Controls & Assumptions

Exit Year: 2021 5 yr CIRC

Sponsor Preferred Stock Common Stock

Price per Share $10.00 Price per Share

Hurdle / Accrual Rate 8.00%
Conversion Ratio 1.00x

x Equity Waterfall
($ in millions, except per share values)

Memo:
LTM Adj. EBITDA $119 Sponsor Investment $159
Debt 384 Management Rollover 36
Cash 5

Exit Multiple (EV / LTM Adj. EBITDA) 7.0x 7.5x 8.0x 8.5x
Exit Enterprise Value $835 $895 $954 $1,014
( - ) Net Debt (379) (379) (379) (379)
Exit Equity Value $456 $516 $576 $635

Sponsor Preferred Shares

Amount Invested $159 $159 $159 $159
( + ) Accrual 75 75 75 75
Preferred Equity Value at Exit $234 $234 $234 $234
Convert Preferred Stock? 1 TRUE TRUE TRUE

Number of Shares
Management Rollover 3.6 3.6 3.6 3.6
Converted Preferred 23.4 23.4 23.4 23.4

In-the-money?
Stock Option Tranches # (in 000's) Strike ($)
$12.50 Options 500 $12.50 TRUE TRUE TRUE TRUE
$14.00 Options 500 14.00 TRUE TRUE TRUE TRUE
$15.00 Options 500 15.00 TRUE TRUE TRUE TRUE
$17.50 Options 500 17.50 FALSE TRUE TRUE TRUE
$20.00 Options 750 20.00 FALSE FALSE TRUE 1
$22.50 Options 1,250 22.50 FALSE FALSE FALSE TRUE
$25.00 Options 1,250 25.00 FALSE FALSE FALSE FALSE

Cash Proceeds
Stock Option Tranches # (in 000's) Strike ($)
 $12.50 Options 500 $12.50 $6 $6 $6 $6
$14.00 Options 500 14.00 7 7 7 7
$15.00 Options 500 15.00 8 8 8 8
$17.50 Options 500 17.50 -- 9 9 9
$20.00 Options 750 20.00 -- -- 15 15
$22.50 Options 1,250 22.50 -- -- -- 28
$25.00 Options 1,250 25.00 -- -- -- --
Total Cash Proceeds from Options $21 $30 $45 $73
( + ) Exit Equity Value 456 516 576 635
Total Cash to Shareholders $477 $545 $620 $708

Shares
Stock Option Tranches # (in 000's) Strike ($)
$12.50 Options 500 $12.50 0.5 0.5 0.5 0.5
$14.00 Options 500 14.00 0.5 0.5 0.5 0.5
$15.00 Options 500 15.00 0.5 0.5 0.5 0.5
$17.50 Options 500 17.50 -- 0.5 0.5 0.5
$20.00 Options 750 20.00 -- -- 0.8 0.8
$22.50 Options 1,250 22.50 -- -- -- 1.3
$25.00 Options 1,250 25.00 -- -- -- --
Total Options Exercised 1.5 2.0 2.8 4.0
( + ) Management Shares 3.6 3.6 3.6 3.6
( + ) Sponsor Shares 23.4 23.4 23.4 23.4
Total Shares 28.5 29.0 29.7 31.0
Consideration Value / Share $16.77 $18.84 $20.88 $22.87

x Division of Proceeds
($ in millions, except per share values)

Exit Multiple (EV / LTM Adj. EBITDA) 7.0x 7.5x 8.0x 8.5x

Memo: Sponsor Returns

MoIC 2.46x 2.77x 3.07x 3.36x
IRR 19.8% 22.6% 25.1% 27.4%

Proceeds
Sponsor $392 $440 $488 $534
Management 86 106 133 174
Combined $477 $545 $620 $708

% of Total Proceeds
Sponsor 82.1% 80.7% 78.6% 75.4%
Management 17.9% 19.3% 21.4% 24.6%

Profits Investment
Sponsor $159 $233 $281 $329 $375
Management 36 50 70 97 138
Combined $195 $282 $351 $425 $513
% of Total Profits
Sponsor 82.5% 80.2% 77.3% 73.1%
Management 17.5% 19.8% 22.7% 26.9%
On

$10.00

9.0x 9.5x 10.0x 10.5x 11.0x Notes

$1,074 $1,133 $1,193 $1,253 $1,312
(379) (379) (379) (379) (379)
$695 $755 $814 $874 $933

$159 $159 $159 $159 $159

75 75 75 75 75
$234 $234 $234 $234 $234
TRUE TRUE TRUE TRUE TRUE Assumes sponsor converts if total equity > accrued pre

3.6 3.6 3.6 3.6 3.6

23.4 23.4 23.4 23.4 23.4

TRUE TRUE TRUE TRUE TRUE

TRUE TRUE TRUE TRUE TRUE
TRUE TRUE TRUE TRUE TRUE
TRUE TRUE TRUE TRUE TRUE
TRUE TRUE TRUE TRUE TRUE
TRUE TRUE TRUE TRUE TRUE
FALSE TRUE TRUE TRUE TRUE
 $6 $6 $6 $6 $6
7 7 7 7 7
8 8 8 8 8
9 9 9 9 9
15 15 15 15 15
28 28 28 28 28
-- 31 31 31 31
$73 $104 $104 $104 $104
695 755 814 874 933
$768 $858 $918 $978 $1,037

0.5 0.5 0.5 0.5 0.5

0.5 0.5 0.5 0.5 0.5
0.5 0.5 0.5 0.5 0.5
0.5 0.5 0.5 0.5 0.5
0.8 0.8 0.8 0.8 0.8
1.3 1.3 1.3 1.3 1.3
-- 1.3 1.3 1.3 1.3
4.0 5.3 5.3 5.3 5.3
3.6 3.6 3.6 3.6 3.6
23.4 23.4 23.4 23.4 23.4
31.0 32.2 32.2 32.2 32.2
$24.80 $26.66 $28.51 $30.36 $32.21

9.0x 9.5x 10.0x 10.5x 11.0x Notes

3.64x 3.92x 4.19x 4.46x 4.73x

29.5% 31.4% 33.2% 34.9% 36.5%

$579 $623 $666 $709 $752 Represents the greater of (i) accrued preferred value o
188 236 252 269 285 Management shares (including exercised options) x co
$768 $858 $918 $978 $1,037

75.4% 72.5% 72.5% 72.5% 72.5%

24.6% 27.5% 27.5% 27.5% 27.5%

$420 $464 $507 $550 $593 Proceeds - Investment

152 200 216 233 249 Proceeds - Investment
$573 $663 $723 $783 $842
73.4% 69.9% 70.1% 70.3% 70.4%
26.6% 30.1% 29.9% 29.7% 29.6%
total equity > accrued preferred
accrued preferred value or (ii) sponsor common shares (x) consideration per share
ng exercised options) x consideration per share