Syed Wahid Ali Shah

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 Assumptions LIVE SCENARIO 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) Accounts Receivable (Days) Inventory (Days) Accounts Payable (Days) Capital Expenditures ($000's) Debt Issuance (Repayment) ($000's) Equity Issued (Repaid) ($000's) 0.0% 38.3% 25.9% 10,963 42.9% 5.0% 31.2%-,000 70,000 15.8% 40.7% 19.2% 10,125 42.9% 5.0% 29.2%-,000 - 11.2% 37.4% 18.2% 10,087 42.9% 5.0% 28.7%-,000 (20,000) - 8.4% 37.0% 16.2% 11,020 42.9% 5.0% 29.0%-,000 - 5.9% 37.6% 16.7% 11,412 42.9% 5.0% 29.1%-,000 - 10.0% 42.0% 17.0% 15,000 35.0% 10.0% 28.0%-,000 - 10.0% 47.0% 17.0% 15,000 35.0% 10.0% 28.0%-,000 - 10.0% 50.0% 17.0% 15,000 35.0% 10.0% 28.0%-,000 (20,000) - 10.0% 36.0% 17.0% 15,000 35.0% 10.0% 28.0%-,000 - 10.0% 35.0% 17.0% 15,000 35.0% 10.0% 28.0%-,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 94,062 165,849 69,657 96,193 182,434 85,744 96,690 200,678 100,339 100,339 220,745 79,468 141,277 242,820 84,987 157,833 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 28,194 15,000 13,132 3,000 59,327 36,866 31,014 15,000 13,786 3,000 62,800 33,890 34,115 15,000 14,211 1,000 64,326 36,013 37,527 15,000 14,487 1,000 68,014 73,263 41,279 15,000 14,667 1,000 71,946 85,887 1,120 2,474 4,858 11,791 8,483 21,075 10,908 26,713 11,598 28,227 10,322 26,543 9,489 24,401 10,084 25,929 20,514 52,749 24,048 61,839 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 Balance Sheet Assets Cash Accounts Receivable Inventory Property & Equipment Total Assets 67,971 5,100 7,805 45,500 126,376 81,210 5,904 9,601 42,350 139,065 83,715 6,567 9,825 40,145 140,252 111,069 7,117 10,531 38,602 167,319 139,550 7,539 11,342 37,521 195,951 161,050 8,179 15,267 39,389 223,885 179,175 8,997 21,142 40,603 249,916 178,547 9,896 27,490 41,392 257,325 233,396 10,886 21,772 41,905 307,959 292,860 11,975 23,284 42,238 370,357 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 7,061 30,000 37,061 8,692 30,000 38,692 10,171 10,000 20,171 8,056 10,000 18,056 8,615 10,000 18,615 70,000 2,474 72,474 126,376 70,000 14,265 84,265 139,065 70,000 35,340 105,340 140,252 70,000 62,053 132,053 167,319 70,000 90,280 160,280 195,951 70,000 116,824 186,824 223,885 70,000 141,225 211,225 249,916 70,000 167,154 237,154 257,325 70,000 219,903 289,903 307,959 70,000 281,742 351,742 370,357 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 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 26,543 13,132 3,175 36,500 24,401 13,786 5,062 33,125 25,929 14,211 5,768 34,372 52,749 14,487 (2,613) 69,849 61,839 14,667 2,041 74,464 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 70,000 70,000 - (20,000) (20,000) - - - - (20,000) (20,000) - - Net Increase (decrease) in Cash Opening Cash Balance Closing Cash Balance 67,971 67,971 13,239 67,971 81,210 2,505 81,210 83,715 27,354 83,715 111,069 28,480 111,069 139,550 21,500 139,550 161,050 18,125 161,050 179,175 (628) 179,175 178,547 54,849 178,547 233,396 59,464 233,396 292,860 Liabilities Accounts Payable Debt Total Liabilities Shareholder's Equity Equity Capital Retained Earnings Shareholder's Equity Total Liabilities & Shareholder's Equity Check Cash Flow Statement Supporting Schedules Working Capital Schedule Accounts Receivable Inventory Accounts Payable Net Working Capital (NWC) Change in NWC 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 8,179 15,267 7,061 16,385 3,175 8,997 21,142 8,692 21,447 5,062 9,896 27,490 10,171 27,215 5,768 10,886 21,772 8,056 24,603 (2,613) 11,975 23,284 8,615 26,644 2,041 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 13,132 39,389 39,389 15,000 13,-,603 40,603 15,000 14,-,392 41,392 15,000 14,-,905 41,905 15,000 14,-,238 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 3,000 30,000 30,000 3,000 30,000 (20,000) 10,000 1,000 10,000 10,000 1,000 10,000 10,000 1,000 2018 12/31/2018 0 2019 12/31/2019 1 2020 12/31/2020 2 2021 12/31/2021 3 2022 12/31/2022 4 Exit 12/31/2022 DCF Model Assumptions Tax Rate Discount Rate Perpetual Growth Rate EV/EBITDA Mulltiple Transaction Date Fiscal Year End Current Price Shares Outstanding Discounted Cash Flow Date Time Period 25% 12% 4% 8.0x 3/31/2018 12/31/-,000 Entry 3/31/2018 Terminal Value EV/EBITDA Perp Growth 812,428 816,278 Yearfrac 0.75 EBIT Less: Cash Taxes NOPAT Plus: D&A EBITDA Less: Capex Less: Changes in NWC Unlevered FCFF Transaction FCFF IRR FCFF Intrincic Value Enterprize Value add Cash less Debt Equity Value Equity Value Per Share (210,450) 1 1 1 1 1 39,866 9,966 29,899 13,132 52,998 15,000 3,175 24,856 36,890 9,223 27,668 13,786 50,676 15,000 5,062 21,391 37,013 9,253 27,759 14,211 51,224 15,000 5,768 21,203 74,263 18,566 55,697 14,487 88,750 15,000 (2,613) 57,797 86,887 21,722 65,165 14,667 101,554 15,000 2,041 62,791 814,353 18,642.25 21,391.46 21,202.50 57,797.14 62,790.65 814,353.26 18,642 21,391 21,203 57,797 62,791 814,353 599,588 139,550 30,000 709,138 35 Market Value Market Capi add Debt less Cash Enterprize Valeu -,000 139,550 210,450 Average Rate of Return Current Price Target Price TP upside IRR 814,353 -% 43%