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Company Name: OM Group, Inc.

Symbol: OMG
Market Capitalization (millions): 920.40
Current Share Price $29.82
TBV CAGR (FYE 2004 – 6/30/2010): 17.70%

Fiscal Year Ending 12/31/2006 12/31/2007 12/31/2008 12/31/2009 MRQ**

(All Figures in $ millions)
Tangible Book Value (TBV): 644.54 659.76 777.15 862.71 747.61
Total Debt and Capital Lease Obligations: 404.24 1.65 26.14 - 140.00
Net Current Asset Value (NCAV)*: 373.90 315.71 491.64 574.98 428.73
Free Cash Flow (FCF): 80.42 21.65 141.41 139.76 85.07
Dividends Per Share: - - - - -

Investment Thesis:
* Net Current Asset Value is calculated by subtracting Total Liabilities from Total Current Assets
** For most recent 6 months with regards to Free Cash Flow
The company is trading at 123.1% of TBV and 79.3% of Book Value.
Additionally, the company has a strong balance sheet with just over 400 million in
cash and 140 in total debt. The debt was provided by the company’s revolving
credit facility (3/2013 maturity), which has a capacity of 250 million with the
Lenders option of increasing it to 325 million. As of 6/30/10 the average interest
rate applied to the facility was 2.9%. Finally, we estimate that the company’s FCF
will range from 150-175 million for FY 2010. Assuming, the FCF is 175 million
this gives the company a current EV/FCF multiple of 3.77.

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Logic Gate Capital Management, LLC – http://www.logicgatecapital.com
Mr. Market Blog – http://www.mrmarketblog.com