Priyadarshan Balasundaram

FINANCIAL STATEMENTS Balance Sheet Check Historical Results Forecast Period 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 OK OK OK OK OK OK OK OK OK OK Assumptions Income statement Revenue Growth (% Change) Cost of Goods Sold (% of Revenue) Salaries and Benefits (% of Revenue) Rent and Overhead ($000's) Depreciation & Amortization (% of PP&E) Interest (% of Debt) Tax Rate (% of Earnings Before Tax) Balance Sheet Accounts Receivable (Days) Inventory (Days) Accounts Payable (Days) Capital Expenditures ($000's) Debt Issuance (Repayment) ($000's) Equity Issued (Repaid) ($000's) 38.3% 25.9% 10,963 39.0% 5.0% 31.2% 15.8% 40.7% 19.2% 10,125 39.9% 5.0% 29.2% 11.2% 37.4% 18.2% 10,087 40.6% 5.0% 28.7% 8.4% 37.0% 16.2% 11,020 41.2% 5.0% 29.0% 5.9% 37.6% 16.7% 11,412 41.7% 5.0% 29.1% 5.0% 37.0% 17.0% 10,000 40.0% 5.0% 28.0% 4.5% 37.0% 17.0% 10,000 40.0% 5.0% 28.0% 4.0% 36.0% 17.0% 10,000 40.0% 5.0% 28.0% 3.5% 36.0% 17.0% 10,000 40.0% 5.0% 28.0% 3.0% 35.0% 17.0% 10,000 40.0% 5.0% 28.0% -,000 170,000 -,000 - -,000 (20,000) - -,000 - -,000 - -,000 - -,000 - -,000 (20,000) - -,000 - -,000 - 102,007 39,023 62,984 118,086 48,004 70,082 131,345 49,123 82,222 142,341 52,654 89,687 150,772 56,710 94,062 158,311 58,575 99,736 165,435 61,211 104,224 172,052 61,939 110,113 178,074 64,107 113,967 183,416 64,196 119,220 26,427 10,963 19,500 2,500 59,390 3,594 22,658 10,125 18,150 2,500 53,433 16,649 23,872 10,087 17,205 1,500 52,664 29,558 23,002 11,020 16,544 1,500 52,066 37,622 25,245 11,412 16,080 1,500 54,237 39,825 26,913 10,000 15,008 1,500 53,421 46,314 28,124 10,000 15,005 1,500 54,629 49,595 29,249 10,000 15,-,752 55,361 30,273 10,000 15,-,774 58,193 31,181 10,000 15,-,682 62,539 1,120 2,474 4,858 11,791 8,483 21,075 10,908 26,713 11,598 28,227 12,968 33,346 13,887 35,708 15,501 39,860 16,294 41,899 17,511 45,028 Income Statement Reveneue Cost of Goods Sold (COGS) Gross Profit Expenses Salaries and Benefits Rent and Overhead Depreciation & Amortization Interest Total Expenses Earnings Before Tax Taxes Net Earnings FINANCIAL STATEMENTS Balance Sheet Check Historical Results Forecast Period 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 OK OK OK OK OK OK OK OK OK OK 167,971 5,100 7,805 45,500 226,376 181,210 5,904 9,601 42,350 239,065 183,715 6,567 9,825 40,145 240,252 211,069 7,117 10,531 38,602 267,319 239,550 7,539 11,342 37,521 295,951 272,530 7,807 11,715 37,513 329,564 307,632 8,158 12,242 37,508 365,540 327,097 8,485 12,388 37,505 385,474 368,487 8,782 12,821 37,503 427,592 413,243 9,045 12,839 37,502 472,629 3,902 50,000 53,902 4,800 50,000 54,800 4,912 30,000 34,912 5,265 30,000 35,265 5,671 30,000 35,671 5,938 30,000 35,938 6,205 30,000 36,205 6,279 10,000 16,279 6,498 10,000 16,498 6,507 10,000 16,507 170,000 2,474 172,474 226,376 170,000 14,265 184,265 239,065 170,000 35,340 205,340 240,252 170,000 62,053 232,053 267,319 170,000 90,280 260,280 295,951 170,000 123,627 293,627 329,564 170,000 159,335 329,335 365,540 170,000 199,195 369,195 385,474 170,000 241,094 411,094 427,592 170,000 286,122 456,122 472,629 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Balance Sheet Assets Cash Accounts Receivable Inventory Property & Equipment Total Assets Liabilities Accounts Payable Debt Total Liabilities Shareholder's Equity Equity Capital Retained Earnings Shareholder's Equity Total Liabilities & Shareholder's Equity Check FINANCIAL STATEMENTS Historical Results Forecast Period 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 OK OK OK OK OK OK OK OK OK OK Operating Cash Flow Net Earnings Plus: Depreciation & Amortization Less: Changes in Working Capital Cash from Operations 2,474 19,500 9,003 12,971 11,791 18,150 1,702 28,239 21,075 17,-,505 26,713 16,-,354 28,227 16,-,480 33,346 15,-,980 35,708 15,-,102 39,860 15,-,465 41,899 15,-,390 45,028 15,-,757 Investing Cash Flow Investments in Property & Equipment Cash from Investing 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Financing Cash Flow Issuance (repayment) of debt Issuance (repayment) of equity Cash from Financing 170,000 170,000 - (20,000) (20,000) - - - - (20,000) (20,000) - - Net Increase (decrease) in Cash Opening Cash Balance Closing Cash Balance 167,971 167,971 13,239 167,971 181,210 2,505 181,210 183,715 27,354 183,715 211,069 28,480 211,069 239,550 32,980 239,550 272,530 35,102 272,530 307,632 19,465 307,632 327,097 41,390 327,097 368,487 44,757 368,487 413,243 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Balance Sheet Check Cash Flow Statement Check FINANCIAL STATEMENTS Historical Results Forecast Period 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 OK OK OK OK OK OK OK OK OK OK 5,100 7,805 3,902 9,003 9,003 5,904 9,601 4,800 10,705 1,702 6,567 9,825 4,912 11,480 775 7,117 10,531 5,265 12,382 903 7,539 11,342 5,671 13,210 827 7,807 11,715 5,938 13,584 375 8,158 12,242 6,205 14,196 611 8,485 12,388 6,279 14,594 398 8,782 12,821 6,498 15,105 511 9,045 12,839 6,507 15,377 272 Depreciation Schedule PPE Opening Plus Capex Less Depreciation PPE Closing 50,000 15,000 19,500 45,500 45,500 15,000 18,150 42,350 42,350 15,000 17,205 40,145 40,145 15,000 16,544 38,602 38,602 15,000 16,080 37,521 37,521 15,000 15,008 37,513 37,513 15,000 15,005 37,508 37,508 15,000 15,003 37,505 37,505 15,000 15,002 37,503 37,503 15,000 15,001 37,502 Debt & Interest Schedule Debt Opening Issuance (repayment) Debt Closing Interest Expense 50,000 50,000 2,500 50,000 50,000 2,500 50,000 (20,000) 30,000 1,500 30,000 30,000 1,500 30,000 30,000 1,500 30,000 30,000 1,500 30,000 30,000 1,500 30,000 (20,000) 10,000 500 10,000 10,000 500 10,000 10,000 500 Balance Sheet Check Supporting Schedules Working Capital Schedule Accounts Receivable Inventory Accounts Payable Net Working Capital (NWC) Change in NWC Historical Results FINANCIAL STATEMENTS Balance Sheet Check Forecast Period 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 OK OK OK OK OK OK OK OK OK OK DCF Model Assumptions Tax Rate Discount Rate Perpetural Growth Rate EV/EBITDA Mulltiple Transaction Date Fiscal Year End Current Price Shares Outstanding Discounted Cash Flow Date Time Periods Year Fraction EBT Interest EBIT Less: Cash Taxes Plus: D&A Less: Capex Less: Changes in NWC Unlevered FCF (Entry)/Exit Net FCF Intrinsic Value Enterprise Value Plus: Cash Less: Debt Equity Value Equity Value/Share 25% 12% 3% 7.0x 12/31/2017 6/30/-,000 Entry 12/31/2017 (290,450) (290,450) 484,768 239,550 30,000 694,- 2018 6/30/- 2019 6/30/- 2020 6/30/- 2021 6/30/- 2022 6/30/- 46,314 1,500 47,814 11,954 15,008 15,-,495 49,595 1,500 51,095 12,774 15,005 15,-,715 55,-,861 13,965 15,003 15,-,501 58,-,693 14,673 15,002 15,-,511 62,-,039 15,760 15,001 15,-,008 17,747 37,715 41,501 43,511 47,008 Market Value Market Cap Plus: Debt Less: Cash EV Equity Value/Share 500,000 30,000 239,550 290,- Exit 6/30/2022 Terminal Value Perpetural Growth EV/EBITDA Average 534,293 534,293 Rate of Return Target Price Upside IRR 39% 26% 522,309 546,278 534,293 Historical Results FINANCIAL STATEMENTS Forecast Period 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 OK OK OK OK OK OK OK OK OK OK Balance Sheet Check Charts and Graphs 2018 17,747 Free Cash Flow 2019 37,715 2020 41,501 2021 43,511 2022 47,008 Free Cash Flow $47,008 $50,000 $45,000 $41,501 $43,511 $37,715 $40,000 $35,000 $30,000 $25,000 $20,000 $17,747 $15,000 $10,000 $5,000 $0 1 2 3 4 5 Market Value vs Intrinsic Value Market Value Upside Intrinsic Value -