服貿準備好了嗎? 與國際接軌: 外資顧問的分析模式

Teddy Tsai, Chief Executive Officer Teddy Tsai, Chief Executive Officer

服貿準備好了嗎?

與國際接軌: 外資顧問的分析模式

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Overview

• Markis Capital is an independent investor relations consulting and boutique financial advisory firm.

• Founded by a senior research analyst with substantial capital markets experience. Our team previously worked at market leading firms such as Merrill Lynch, Morgan Stanley, CLSA and others.

• We combine a wealth of knowledge about local Asian markets and an understanding of global capital markets. We aim to introduce international best practices serviced with a local touch.

• We work to develop training programs to improve the skills for IR professionals.

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Background

• Deputy Head of Research in Asia at

DnB NOR in Singapore

• Head of Research at CLSA Capital

Partners’ shipping fund, Pacific Transportation Asia

• Vice President at Merrill Lynch Equity

Research, covered Asia Pacific Shipping, Taiwan

non-tech, and Taiwan strategy.

• Also served with Morgan Stanley, Insight Pacific

Investment Research, and SECTORBASE.com

• Education – Holds a Double Major BA in Economics and

International Relations from UC San Diego

– Diploma in Ship Finance from Lloyd’s

Maritime Academy

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Impact of Cross-Strait Service Trade Agreement

• No restrictions on China’s consulting firms to provide

services in Taiwan.

• China’s consultants would be considered professionals,

with minimal restrictions on labor laws.

• Taiwan’s local consulting firms is familiar with the Taiwan

market, but will face more international competitiveness.

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What should Taiwanese students do?

• Taiwanese students have knowledge (but not skills or

expertise) to compete internationally.

• Skills include: financial analysis, modeling, industry analysis,

valuations, presentations, etc.

• Expertise includes: deal experience, gathering data,

analyzing information, and presenting insights.

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Expertise

專業經驗

Skills

技能

Knowledge

知識

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Our Services

• Strategic Advisory

• Content Development

• Event Management

• Market Intelligence

投資人關係諮詢服務 Investor Relations

Consulting

• M&A Advisory

• Fairness Opinion, Valuation Reports

• Due Diligence, Feasibility Studies

• Financial Modeling, Model Review

企業併購暨策略諮詢 M&A and Strategic

Advisory

• Markis Insights Newsletter

• Capital Market Reports

• Scorecard & Surveys

• Index Research, Benchmarking Audits

投資市場資訊研究 Research Services

• Investment Banking Seminar

• M&A Advisor Leadership Workshops

• Custom Training Programs

瑪亞學院培訓課程 Markis Academy

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IR- Improve Company Value Company value is determined not only by financial performance. We

estimate that 20-40% of a company’s value attributed by investors is

determined by non-financial factors.

This 20-40% includes:

• Consistency in information

• Transparency and disclosure levels

• Level of interaction between management

and investors

• Corporate reputation

• … and others.

Proper investor relationship management can

improve a company’s transparency and boost

Investors’ confidences and help reflect a

Company’s true value.

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Investor Relation Activities

Strategic Advisory

• Planning and development of IR departments

• Evaluate and shape the investment message

• Integrated communication and disclosure to enhance credibility and transparency

• Analyst surveys, perception studies

Market Intelligence

• Analyze research reports

• Collect trading statistics

• Analyze shareholder structure

• Identify capital market trends

• Peer comparison

Content development

• Presentation materials development

• Website structure, content, and vendor selection

• Earnings release revisions and drafting

• Conference call scripts

• Sustainability report drafting and development

Events and Engagement

• IR forum, investor visits

• Disclosure policy and execution

• Analyst and investor relationship management

• Strategically target and identify investors

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Shareholder Targeting Study

9 • Summary Statistics • Total Equity Assets Under Management (by region)

• Opportunities & Risks – shares held and trends

• Segmentation of investors by city, style, current position,

• Trends – sector trend, peer risk, cost basis, turnover, concentration

• Comparative valuations

• Investors by location, sector assets/trends, peer assets, cost basis, share

trend

• Top shareholders, by location, style, turnover, tiering

• Top buyers, top sellers

• Plan • Roadshow schedule, tiering of investors, potential holdings & characteristics

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Market Intelligence – Localized Reports

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Try to find the potential investors In

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股票交易量建議 In

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Capital Markets Update

15 • Funding Environment • Deal Types – IPOs, M&A, Secondary, Debt

• Total Issuances by Industry

• Market Summary Table – index performance table

• YTD deals by pricing vs. backlog, pricing performance

• Economic Activity Calendar • Indicator, period, expectation, result

• Daily Market Update

• Expected Deals, Filings, etc.

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Understanding the work of analysts

• How sell-side / buy-side analysts make an investment

decision

• How portfolio managers view the investor relations

role

• What information and techniques can help you to

enhance effectiveness of communications/information to

sell side

• Relationship to the sell-side

• Trends and issues of the institutional marketplace

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Flow of Funds Report (Market)

• Top Holders (Country, Style, Turnover, Assets, Value,

Change, % of portfolio, % portfolio change)

• Top Buyers, Top Sellers

• Charts – Most bought/sold sectors ($m change) • Top 5 bought/sold stock, industry, $ change

• Institutional investment by region (quarterly) • Total, net change

• Institutional investment by style (quarterly) • Total, net change

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Media / Analyst Monitoring

• Report Details – headline, overview, earnings

change, model drivers, etc.

• Key News Highlights / Summary

• Media Monitoring

• News mentions of peers

• News mentioned by publication type

• News mentioned by region / country

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Media / Analyst Monitoring In

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The working process

Data Collection

Analysis Report &

Presentation

• Define scope of industry

• Identify key players

• Determine size metric to

use (Revenues, Market

Cap, Net Income,

Capacity, etc.)

• Collect annual historical

data for key players

• Industry Drivers &

Inhibitors

• Demand Forecasting

• Estimating Supply

• P/E, P/B, EV/EBITDA,

Efficiency, Margins

• Ratios vs. peers

• Risk Assessment

• Effectively communicates

investment message

• Persuasive presentation style

• Handle direct questioning

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Industry Drivers & Inhibitors

• Technology Considerations • Whether or not the innovation will be successful.

• Whether or not competition from new technologies will supplant the old technology.

• What are the industry drivers, technical barriers?

• Industry Specific Considerations • Competition

• Supply Drivers

• Demand Drivers

• Company Specific Considerations • Five Forces

• SWOT Analysis

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Macroeconomics Data R

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Industry Data R

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Types of Financial Models

• Purpose: Estimating Earnings

• Key Components:

• Sales Forecast

• IS, BS, CF

• Ratios, Valuations

• Purpose: Decision Making

• Key Components:

– Assumptions

– DCF

– Interest Rates

– Returns Analysis (IRR)

• Earnings (Operating) Model • Capital Budgeting Model

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Earnings Model INDUSTRY INCOME STATEMENT CO.TSEC:2330

TSEC

Taiwan Semiconductor Manufacturing Company Limited > Income Statement > Standardized > Detailed

In millions of TWD (except per share items)

For the fiscal year ending: 2005/12/31 2006/12/31 2007/12/31 2008/12/31 2009/12/31 2010/12/31 2011/12/31 2012/12/31 2013/12/31

Filing Currency TWD TWD TWD TWD TWD TWD TWD TWD TWD

Revenue 266,565.1 317,407.2 322,630.6 333,157.7 295,742.2 419,537.9 427,080.6 506,745.3 597,024.2

Other Revenue 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total Revenue (Capability Needed)(Capability Needed)(Capability Needed)(Capability Needed)(Capability Needed)(Capability Needed)(Capability Needed)(Capability Needed)(Capability Needed)

Total Revenue 266,565.1 317,407.2 322,630.6 333,157.7 295,742.2 419,537.9 427,080.6 506,745.3 597,024.2

Cost Of Goods Sold 148,362.2 161,597.1 180,280.4 191,408.1 166,413.6 212,484.3 232,937.4 262,592.5 315,642.5

Gross Profit 118,202.9 155,810.1 142,350.2 141,749.6 129,328.6 207,053.6 194,143.2 244,152.8 281,381.7

Selling General & Admin Exp. 13,217.8 12,469.0 12,682.0 15,833.3 15,773.3 18,171.6 18,681.9 22,129.2 23,387.0

R & D Exp. 14,016.5 16,076.4 17,946.3 21,480.9 21,593.4 29,706.7 33,829.9 40,387.1 47,952.0

Depreciation & Amort. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Other Operating Expense/(Income) 0.0 0.0 0.0 0.0 0.0 0.0 74.0 30.0 22.6

Other Operating Exp., Total 27,234.3 28,545.4 30,628.3 37,314.2 37,366.7 47,878.3 52,585.8 62,546.3 71,361.6

Operating Income 90,968.6 127,264.7 111,721.9 104,435.4 91,961.9 159,175.3 141,557.4 181,606.5 210,020.1

Interest Expense -1,413.4 -890.6 -842.2 -615.0 -391.5 -425.4 -626.7 -1,020.4 -2,646.8

Interest and Invest. Income 2,806.2 4,542.1 5,651.7 5,373.8 2,600.9 1,665.2 1,479.5 1,716.1 2,342.1

Net Interest Exp. 1,392.8 3,651.5 4,809.5 4,758.8 2,209.4 1,239.8 852.8 695.7 -304.7

Income/(Loss) from Affiliates 1,433.2 2,347.2 2,507.9 701.5 46.0 2,298.2 897.6 2,073.1 3,806.8

Currency Exchange Gains (Loss) 2,610.0 -400.9 143.9 146.7 -32.3 221.6 321.8 330.0 482.2

Other Non-Operating Inc. (Exp.) 680.2 1,232.0 1,491.8 1,528.8 778.4 859.3 901.8 1,090.7 -4,416.0

EBT Excl. Unusual Items 97,084.8 134,094.5 120,675.0 111,571.2 94,963.4 163,794.2 144,531.4 185,796.0 209,588.4

Impairment of Goodwill 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Gain (Loss) On Sale Of Invest. -128.9 -146.2 820.5 -839.1 -897.2 577.0 -32.3 -3,690.5 6,030.7

Gain (Loss) On Sale Of Assets 282.7 179.7 170.0 -0.6 -68.5 -849.3 -200.7 0.1 342.4

Asset Writedown 0.0 0.0 0.0 -210.5 0.0 -0.3 -98.0 -444.5 0.0

Legal Settlements 964.7 979.2 -23.5 951.2 1,464.9 6,939.8 947.3 0.0 0.0

Other Unusual Items -3,940.0 -1,745.0 0.0 0.0 0.0 -191.0 0.0 0.0 0.0

EBT Incl. Unusual Items 94,263.3 133,362.2 121,642.0 111,472.2 95,462.6 170,270.4 145,147.7 181,661.1 215,961.5

Income Tax Expense 630.6 7,773.7 11,709.6 10,949.0 5,996.4 7,988.5 10,694.4 22,374.7 32,111.8

Earnings from Cont. Ops. 93,632.7 125,588.5 109,932.4 100,523.2 89,466.2 162,281.9 134,453.3 159,286.4 183,849.7

Earnings of Discontinued Ops. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Extraord. Item & Account. Change 0.0 1,606.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Net Income to Company 93,632.7 127,195.2 109,932.4 100,523.2 89,466.2 162,281.9 134,453.3 159,286.4 183,849.7

Minority Int. in Earnings -57.7 -185.5 -755.3 -590.0 -248.4 -676.9 -252.0 194.4 127.9

Net Income 93,575.0 127,009.7 109,177.1 99,933.2 89,217.8 161,605.0 134,201.3 159,480.8 183,977.6

Pref. Dividends and Other Adj. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

NI to Common Incl Extra Items 93,575.0 127,009.7 109,177.1 99,933.2 89,217.8 161,605.0 134,201.3 159,480.8 183,977.6

NI to Common Excl. Extra Items 93,575.0 125,403.0 109,177.1 99,933.2 89,217.8 161,605.0 134,201.3 159,480.8 183,977.6

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Dupont Analysis

DUPONT ANALYSIS – MCGRAW HILL FINANCIAL, INC.

Fiscal Year Ended, LTM

2004/12/31 2005/12/31 2006/12/31 2007/12/31 2008/12/31 2009/12/31 2010/12/31 2011/12/31 2012/12/31 2013/12/31 2013/12/31

Net Income 755.8 844.3 882.2 1,013.6 799.5 731.0 828.0 911.0 437.0 1,376.0 1,376.0

Sales 5,250.5 6,003.6 6,255.1 6,772.3 6,355.1 5,870.0 3,639.0 3,954.0 4,450.0 4,875.0 4,875.0

Net Profit Margin 14.4% 14.1% 14.1% 15.0% 12.6% 12.5% 22.8% 23.0% 9.8% 28.2% 28.2%

Net Income 755.8 844.3 882.2 1,013.6 799.5 731.0 828.0 911.0 437.0 1,376.0 1,376.0

EBT 1,168.9 1,360.0 1,404.8 1,636.3 1,299.1 1,182.0 943.0 1,000.0 1,130.0 1,346.0 1,346.0

Tax Burden (1 - tax rate) 64.7% 62.1% 62.8% 61.9% 61.5% 61.8% 87.8% 91.1% 38.7% 102.2% 102.2%

EBT 1,168.9 1,360.0 1,404.8 1,636.3 1,299.1 1,182.0 943.0 1,000.0 1,130.0 1,346.0 1,346.0

EBIT 1,174.7 1,387.1 1,450.0 1,703.3 1,448.1 1,277.0 1,030.0 1,074.0 1,385.0 1,612.0 1,612.0

Interest Burden 99.5% 98.0% 96.9% 96.1% 89.7% 92.6% 91.6% 93.1% 81.6% 83.5% 83.5%

EBIT 1,174.7 1,387.1 1,450.0 1,703.3 1,448.1 1,277.0 1,030.0 1,074.0 1,385.0 1,612.0 1,612.0

Total Revenue 5,250.5 6,003.6 6,255.1 6,772.3 6,355.1 5,870.0 3,639.0 3,954.0 4,450.0 4,875.0 4,875.0

EBIT Margin 22.4% 23.1% 23.2% 25.2% 22.8% 21.8% 28.3% 27.2% 31.1% 33.1% 33.1%

Sales 5,250.5 6,003.6 6,255.1 6,772.3 6,355.1 5,870.0 3,639.0 3,954.0 4,450.0 4,875.0 4,875.0

Total Assets 5,841.3 6,395.8 6,042.9 6,391.4 6,080.1 6,475.3 7,047.0 6,620.0 7,052.0 6,061.0 6,061.0

Asset Turnover 0.9x 0.9x 1.0x 1.1x 1.0x 0.9x 0.5x 0.6x 0.6x 0.8x 0.8x

Total Assets 5,841.3 6,395.8 6,042.9 6,391.4 6,080.1 6,475.3 7,047.0 6,620.0 7,052.0 6,061.0 6,061.0

Shareholder's Equity 2,984.5 3,113.1 2,679.6 1,606.7 1,352.9 1,929.2 2,292.0 1,584.0 1,650.0 2,154.0 2,154.0

Leverage Factor 2.0x 2.1x 2.3x 4.0x 4.5x 3.4x 3.1x 4.2x 4.3x 2.8x 2.8x

Return on Equity 25.3% 27.1% 32.9% 63.1% 59.1% 37.9% 36.1% 57.5% 26.5% 63.9% 63.9%

Return on Equity - 5 Step 25.3% 27.1% 32.9% 63.1% 59.1% 37.9% 36.1% 57.5% 26.5% 63.9% 63.9%

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Types of Financial Models

• Purpose: Estimating Supply, Demand,

Prices

• Key Components:

• Supply

• Demand (Market Size)

• Price Trends

• Factors

• Purpose: Pre & Post IPO Valuations

• Key Components:

– Assumptions

– Pro-Forma IS, BS, CF

– Shareholder Structure

– Valuations

• Industry Models • IPO Modeling

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Using database to build the model R

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Valuations

• DCF

• Present value of equity

• WACC

• Projected cash flows

• Sensitivity Analysis

• Comp Sheet

• PE PB Band

• Peer PE comparison

• Absolute Valuation • Relative Valuation

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Excel Template

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Comp Sheet

COMPARABLE COMPANY ANALYSIS(In USD millions, except per share data)

Stock Price Current as % of 52-Week (%) Shares Market Enterprise Revenue EBITDA EPS

Ticker Trading Data and Size 4/17/14 High Low Out. Cap Value LTM CY+1 LTM CY+1 LTM CY+1

NYSE:HPQ Hewlett-Packard Company 32.49 95.8 170.4 1,895.1 61,572.5 70,496.5 112,093.0 110,739.2 13,180.0 13,677.3 2.73 3.72

NasdaqGS:AAPLApple Inc. 519.01 90.2 134.8 892.6 463,244.5 439,439.5 173,992.0 182,428.5 56,565.0 59,103.0 40.23 43.22

NasdaqGS:MSFTMicrosoft Corporation 40.40 97.0 141.8 8,300.7 335,349.2 276,052.2 83,433.0 87,870.4 31,828.0 32,284.7 2.70 2.75

NYSE:EMC EMC Corporation 26.70 94.5 124.5 2,027.4 54,131.5 52,111.5 23,222.0 24,507.3 5,612.0 7,461.3 1.33 1.94

NasdaqGS:CTSHCognizant Technology Solutions Corporation 49.78 92.2 163.4 607.4 30,237.6 26,490.1 8,843.2 10,403.5 1,857.8 2,124.5 2.02 2.52

NYSE:TDC Teradata Corporation 47.08 71.4 120.2 159.6 7,511.6 7,090.6 2,692.0 2,828.8 622.0 785.3 2.27 2.92

TSE:6702 Fujitsu Limited 5.89 92.1 172.3 2,069.2 12,197.2 17,016.2 43,880.2 0.0 2,979.9 0.0 0.09 0.00

NYSE:ACN Accenture plc 79.11 92.1 114.7 633.1 50,082.1 46,940.0 28,774.2 30,036.6 4,423.4 4,892.7 4.07 4.62

Max 519.01 97.0 172.3 8,300.7 463,244.5 439,439.5 173,992.0 182,428.5 56,565.0 59,103.0 40.23 43.22

Median 43.74 92.2 138.3 1,393.8 52,106.8 49,525.8 36,327.2 27,272.0 5,017.7 6,177.0 2.48 2.84

Min 5.89 71.4 114.7 159.6 7,511.6 7,090.6 2,692.0 0.0 622.0 0.0 0.09 0.00

Mean 100.06 90.7 142.7 2,073.1 126,790.8 116,954.6 59,616.2 56,101.8 14,633.5 15,041.1 6.93 7.71

NYSE:IBM International Business Machines Corporation 196.40 92.7 114.1 1,041.3 204,519.4 238,928.4 98,827.0 99,248.3 24,239.0 27,673.8 14.63 17.83

Total Debt/ Net Debt/ EBITDA/ (EBITDA-Capex) Total Debt/ Total Debt/ TEV/Revenue TEV/EBITDA P/E

Ticker Leverage and Trading Multiples LTM EBITDA LTM EBITDA Interest /Interest Tot. Equity (%) Total Cap (%) LTM CY+1 LTM CY+1 LTM CY+1

NYSE:HPQ Hewlett-Packard Company 1.9x 0.6x 32.7x 23.9x 87.8 46.7 0.6x 0.6x 5.3x 5.2x 11.9x 8.7x

NasdaqGS:AAPLApple Inc. 0.3 NM 257.1 221.5 13.1 11.6 2.5 2.4 7.8 7.5 12.9 12.0

NasdaqGS:MSFTMicrosoft Corporation 0.7 NM 66.0 54.2 27.9 21.8 3.3 3.1 8.7 8.6 15.0 14.7

NYSE:EMC EMC Corporation 1.3 NM 36.0 29.9 30.1 23.1 2.2 2.1 9.8 7.0 20.0 13.8

NasdaqGS:CTSHCognizant Technology Solutions Corporation 0.0 NM 0.0 0.0 0.0 0.0 3.0 2.5 14.3 12.5 24.7 19.7

NYSE:TDC Teradata Corporation 0.4 NM 155.5 140.5 14.8 12.9 2.6 2.5 11.4 9.0 20.7 16.1

TSE:6702 Fujitsu Limited 2.4 1.2 135.4 86.2 89.3 47.2 0.4 NA 5.4 4.9 63.4 14.4

NYSE:ACN Accenture plc 0.0 NM 319.4 295.7 0.5 0.5 1.6 1.6 10.6 9.6 19.4 17.1

Max 2.4x 1.2x 319.4x 295.7x 89.3 47.2 3.3x 3.1x 14.3x 12.5x 63.4x 19.7x

Median 0.6 0.9 100.7 70.2 21.3 17.3 2.4 2.4 9.2 8.0 19.7 14.5

Min 0.0 0.6 0.0 0.0 0.0 0.0 0.4 0.6 5.3 4.9 11.9 8.7

Mean 0.9 0.9 125.3 106.5 32.9 20.5 2.0 2.1 9.2 8.0 23.5 14.6

NYSE:IBM International Business Machines Corporation 1.8x 1.4x 58.7x 49.4x 262.7 72.4 2.4x 2.4x 9.6x 8.4x 13.4x 11.0x

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Overview

Small businesses are the foundation of Taiwan's economy. However, international investment

banks only have the capacity to service the largest companies in Taiwan. Although Taiwan

financial holding companies have advisory services, these are not available to small & medium

sized companies in Taiwan.

M&A Advisory

Solution

We have developed a structured, international-standard training program, and an

apprentice-type relationship with experienced, well-connected advisers. Our platform

provides a mix of senior level advice and in-depth transaction support

Service Offerings

• Fairness Opinions/Valuation Reports

• Model Audit / Review

• Financial Due Diligence

M&

A

• Feasibility Studies

• Strategic & Financial Advisory

• Investment Proposals & Evaluation

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M&A Market Analysis M

&A

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Company screening M

&A

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PE/LBO Modeling

• Purpose: Transaction Modeling

• Key Components:

– Assumptions

– Capital Structure / Sources & Uses

– Exit Analysis

– Pro-Forma IS, BS, CF

• Purpose: Transaction Modeling

• Key Components:

– Assumptions

– Sources & Uses

– Pro-Forma IS, BS

– DCF

– Purchase Price Ratio Analysis

Types of Financial Models M

&A

Merger Models

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Simple LBO Model Dashboard($ in millions, except per share data)

Summary Sources & Uses of Funds Calendarization / Timing Valuation% of Mult. of Last FYE 12/31/11 Current stock price $12.81

Balance Total LTM EBITDA MRQ date 3/31/12 Offer premium to market 25.0%Market date 5/17/12 Offer price per share $16.01

Excess cash $82.2 9.8% 0.63x Close date 12/31/12Liquidation of options 14.1 1.7% 0.11x Next FYE after transaction close 12/31/13 Basic shares outstanding (BSO) 34.922Revolver – – – ( + ) In-the-money options liquidated 1.288Term loan - A 50.0 6.0% 0.39x Exit Assumptions ( + ) In-the-money convertible shares –Term loan - B – – – Valuation method (1=EBITDA, 2=GAAP P/E) 1 Fully diluted shares outstanding (FDSO) 36.210Senior note 100.0 12.0% 0.77x Exit year 4 ( x ) Offer price per share $16.01Subordinated note 50.0 6.0% 0.39x Exit EBITDA multiple 5.0x Equity purchase price $579.8Mezzanine – – – Exit P/E multiple 14.0x ( – ) Proceeds from liquidation of options (14.1)Seller note – – – Purchase price 565.8Convertible bond – – – Other Switches / Assumptions Non-convertible debt –[Debt 8] – – – Minimum cash balance $100.0 Convertible debt 230.0Preferred stock - A 10.0 1.2% 0.08x Tax rate 35.0% Minority interest –Preferred stock - B – – – Average interest? No Total debt and minority interest 230.0Sponsor equity 509.7 61.1% 3.93x ( – ) Cash & cash equivalents (182.2)Management equity 10.0 1.2% 0.08x Model Checks ( + ) Net debt 47.8Tax refund 8.7 1.0% 0.07x Sources and uses balance ok Pro forma enterprise value $627.6Total sources $834.7 100.0% 6.43x Balance sheet balances ok

Revolver limit exceeded ok Purchase Price AllocationEquity purchase price $579.8 69.5% 4.47x Error message Purchase price $565.8Refinance debt 230.0 27.6% 1.77x ( – ) Book value (127.9)Fund cash balance – – – Excess purchase price to allocate 437.8Financing fees 6.8 0.8% 0.05x Write off existing goodwill (61.1)Transaction costs 18.1 2.2% 0.14x Fair value adjustments 124.5Total uses $834.7 100.0% 6.43x Transaction DTL (43.6)

Transaction DTA –Scenarios ( – ) Book value adjustments 19.8Financing case – LBO C 6 Excess purchase price after allocation 418.0

( + ) Bargain purchase gain –Fair Value Adjustments Goodwill created $418.0Excess purch. price allocated to identifiable intangibles (%) 25.0%

MultiplesBook Value Fair Value Fair Value DTA DTL Depr. / Amrt. Metric Multiple

Asset / Liability Asset? at Close at Close Mark Created Created Period (yrs) LTM Sales $438.0 1.43xPP&E Yes $191.0 $206.0 $15.0 – $5.3 7.0 FY12 PF sales 464.3 1.35xIdentifiable intangibles Yes – 109.5 109.5 – 38.3 5.0 FY13 PF sales 492.2 1.28x[Asset 3] Yes – – – – – –[Liability 1] No – – – – – – LTM EBITDA 129.8 4.84x[Liability 2] No – – – – – – FY12 PF EBITDA 138.7 4.53x[Liability 3] No – – – – – – FY13 PF EBITDA 147.0 4.27xTotal – $43.6

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LBO Modeling – Key Components

37 • Sources & Uses

• Purchase Price Allocation

• Debt & Interest Expenses

• Financing & Transaction Costs

• Tax Impact

• Transaction Impact – Fair Value Adjustments

• DCF / WACC

• Returns Analysis

M&

A

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Excel Template M

&A

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Summary

• For Investor Relations • Shareholder analysis and targeting is important

• Capital markets data helps to update senior executives

• Monitoring of analyst views & media helps to evaluate performance

• For Investment Research • Industry analysis helps to build views

• Financial analysis helps to quantify trends

• Valuation points to action items

• For Financial Advisory • Market analysis helps to identify transaction activity

• Screening helps to identify opportunities

• Modeling helps to structure deals

蔡鴻德 (Teddy H. Tsai) 董事暨執行長 (Director & CEO)

teddy.tsai@markis.asia

Any Questions?

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