(in million)

Sales
% growth
Total costs
COGS
Selling and admand expand
% sales
EBITDA
Depreciation & Amortization:
% sales
EBIT
% margin
Taxes (34%)
Depreciation & Amortization:

2007
179,984
-181,532
-165,573
-15,959
100.9%
-17,507
-9.7%
-1,259
0.1%
-18,766
10%
0
-1,259

DCF model
Actual
2008
2009
2010
148,979
104,589 135,592
-17.2%
-29.8% 29.6%
-168,307 -124,554
###
-149,257 -112,195
###
-19,050
-12,359 -11,446
113.0%
119.1% 96.2%
-38,378 -32,324 -6,244
-25.8%
-30.9%
-4.6%
-749
-190
-125
0.5%
0.2%
0.1%
-39,127 -32,514 -6,369
26%
31%
5%
0
0
0
-749
-190
-125

-7,542
-7,530
-5,379
Capital Expenditure
% sales
4.2%
5.1%
5.1%
-14,980
Increase/Decrease in NWC
Unlevered Free Cash Flow
-25,049 -45,908 -52,683
Discount factor
13%
Discounted value of Unlevered FCF
Discounted value of FCF 2011-2015
188,113
EBITDA in 2015
298,879
Terminal value
3,037,652
Discounted terminal value
1,639,535
Total present value to Summit
1,827,648
Assumption
Cost of debt
10%
Cost of equity
15%
Grow perpetuity
3%
Tax
34%
Debt
22%
Equity
78%
WACC
13%
(in million)
Actual
Net working capital
2007
2008
2009
7,918
7,518
Account recievable
Inventory
10,107
13,195
Prepaid expenses and other
Total current assets
44,267
59,247
% sale
30%
57%
Account payable
-22,259
-18,725
Accrued Liabilites
-30,661
-21,120
Total current liabilities
-75,608 -52,435
% sale
-51%
-50%
Net working capital
-31,341
6,812
Change in NWC
-14,980

-4,200
3.1%
-26,145
-36,589

2010
8,699
12,125
53,053
39%
-21,497
-21,590
-47,157
-35%
5,896
6,194

l
2011
177,626
31.0%
-145,653

82.0%
31,973
18.0%
-164
0.1%
31,809
-18%
20,994
-164
-5,506
3.1%
-29,629
17,831
1.13
15,762
1.0

Forecast period
2012
2013
2014
214,927 249,315
276,740
21.0%
16.0%
11.0%
-176,240 -204,438
-226,927

82.0%
38,687
18.0%
-198
0.1%
38,489
-18%
25,403
-198

82.0%
44,877
18.0%
-230
0.1%
44,647
-18%
29,467
-230

82.0%
49,813
18.0%
-255
0.1%
49,558
-18%
32,708
-255

-6,663
-7,729
3.1%
3.1%
20,480 -32,325
77,907 34,290
1.28
1.45
60,876
23,685
2.0
3.0

-8,579
3.1%
19,696
93,638
1.64
57,174
4.0

2011

Forecast period
2012
2013
2014

###
54%

###
40%

###
-34%
35,525
-29,629

###
-33%
15,045
20,480

###
52%

2015
298,879
8.0%
-245,081

2016
322,789
8.0%

82.0%
53,798
18.0%
-276
0.1%
53,523
-18%
35,325
-276
-9,265
3.1%
-23,135
56,723 584,247
1.85
30,615
5.0

2015

### 149439.52
43%
50%

### -91324.15 -98630.08

-33%
-33%
-33%
47,370
27,674
50,809
-32,325
19,696
-23,135

#NAME?

Assumption
Tax rate
1

Equity beta
Risk free rate2
Market risk premium
Return on equity
Return on debt3
Equity value4
Debt5
WACC
1.
2.
3.
4.
5.

40%
0.73
4.27%
4.50%
7.56%
8.25%
62.34%
37.66%
6.57%

Equity beta derived from average equity beta of six comparables presented above
5 year risk treasury rate
Assuming FleetCor coming out of bankruptcy will have lowest debt rating BBB
Post money equity value $97.5 mil/$156.4 mil Enterprise value
Revolver, existing debt and notes involving licensees repurchases, less cash

Valuation date
2001
EBITDA
13,805.00
Less: Depreciation
1,273.00
Less: Amortization
1,508.00
EBIT
11,024.00
Less: tax
4,409.60
EBITA
6,614.40
Plus: Depreciation and Amortization
Less: Capital expenditure
Less: Incr./(Decr.) Net working capital
Unlevered FCF
Discount factor
Discounted value of Unlevered FCF
Discounted value of FCF 2002p-2006p
117,382.15
EBITDA in 2006p
52,349.00
Exit multiple
8
Terminal value
418,792.00
Discounted terminal value
304,609.13
Total present value to Summit 421,991.29

2002
18,909.00
1,661.00
1,441.00
15,807.00
6,322.80
9,484.20
3,102.00
1,237.00
(5,949.00)
17,298.20
1.03
16,756.19

Sensitivity analysis

Discount rate (WACC)

421,991.29
4.57%
5.57%
6.57%
7.57%
8.57%

6
374,941.05
359,999.46
345,839.00
332,411.29
319,671.37

Projected Financial Forecast

2003
2004
24,621.00 31,559.00
2,372.00 2,804.00
1,441.00 1,441.00
20,808.00 27,314.00
8,323.20 10,925.60
12,484.80 16,388.40
3,813.00 4,245.00
1,463.00 1,734.00
(8,225.00) (7,328.00)
23,059.80 26,227.40
1.10
1.17
20,959.40 22,368.02

Exit multiple
7
8
###
###
###
###
###
###
###
###
###
###

ed above

inancial Forecast
2005
41,017.00
2,819.00
1,441.00
36,757.00
14,702.80
22,054.20
4,260.00
2,067.00
(8,996.00)
33,243.20
1.25
26,602.60

2006
52,349.00
3,396.00
1,673.00
47,280.00
18,912.00
28,368.00
5,069.00
2,399.00
(9,842.00)
40,880.00
1.33
30,695.94

multiple
9
###
###
###
###
###

10
###
###
###
###
###