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As Of Filer Filing For·On·As Docs:Size Issuer Agent 5/08/08 Getty Images Inc SC 13E3/A 6:752K Getty Images Inc RR Donnelley/FA Abe Acquisition Corp. Abe GP LLC Abe Investment, L.P. Cheyne Walk Trust Getty Investments L.L.C. Hellman & Freidman LLC Hellman & Friedman Capital Partners VI, L.P. Hellman & Friedman Investors VI, L.P. Jonathan Klein Mark Getty Rondald Family Trust B The October 1993 Trust |
Document/Exhibit Description Pages Size
1: SC 13E3/A Amendment No. 1 to Schedule 13E-3 HTML 168K
2: EX-99.(C)(10) Draft Presentation of Goldman Sachs - February HTML 63K
11, 2008
3: EX-99.(C)(11) Draft Presentation of Goldman Sachs - February HTML 195K
10, 2008
4: EX-99.(C)(12) Draft Presentation of Goldman Sachs - February HTML 107K
10, 2008
5: EX-99.(D)(13) Equity Commitment Letter, Dated February 24, HTML 38K
2008
6: EX-99.(D)(14) Co-Investor Equity Commitment Letter, Dated HTML 42K
February 24, 2008
| Draft Presentation of Goldman Sachs - February 11, 2008 |
EXHIBIT (c)(10)
PRELIMINARY
Project Closeup: Board Update
Goldman, Sachs & Co.
11-Feb-2008
Operating Plan Summary
Street Estimates
| 2008E | 2009E | |||||||
| Revenue | $ | 895.6 | $ | 925.6 | ||||
| Growth % | 4.4 | % | 3.4 | % | ||||
| EBIT | $ | 194.4 | $ | 202.7 | ||||
| Margin % | 21.7 | % | 21.9 | % | ||||
| Growth % | (6.4 | )% | 4.3 | % | ||||
Management Plan
| 2005A | 2006A | 2007A | 2008E | 2009E | 2010E | 2011E | 2012E | 07-‘12 CAGR |
|||||||||||||||||||||||||||
| Revenue |
$ | 733.2 | $ | 806.6 | $ | 857.6 | $ | 940.0 | $ | 1,008.0 | $ | 1,087.7 | $ | 1,163.6 | $ | 1,255.7 | 7.9 | % | |||||||||||||||||
| Growth % |
17.8 | % | 10.0 | % | 6.3 | % | 9.6 | % | 7.2 | % | 7.9 | % | 7.0 | % | 7.9 | % | |||||||||||||||||||
| EBIT - Adjusted |
$ | 225.4 | $ | 226.0 | $ | 207.6 | $ | 221.8 | $ | 255.1 | $ | 301.4 | $ | 337.9 | $ | 389.7 | 13.4 | % | |||||||||||||||||
| Margin % |
30.7 | % | 28.0 | % | 24.2 | % | 23.6 | % | 25.3 | % | 27.7 | % | 29.0 | % | 31.0 | % | |||||||||||||||||||
| Growth % |
32.9 | % | 0.3 | % | (8.1 | )% | 6.8 | % | 15.0 | % | 18.2 | % | 12.1 | % | 15.3 | % | |||||||||||||||||||
| Proforma EPS |
$ | 2.34 | $ | 2.46 | $ | 2.22 | $ | 2.25 | $ | 2.55 | $ | 3.15 | $ | 3.60 | $ | 4.22 | 13.7 | % | |||||||||||||||||
| Growth % |
36.0 | % | 5.1 | % | (9.8 | )% | 1.6 | % | 13.0 | % | 23.6 | % | 14.3 | % | 17.2 | % | |||||||||||||||||||
“Adjusted -2.5% on Revenue Growth and -2.5% on EBIT Margin” Plan1
| 2005A | 2006A | 2007A | 2008E | 2009E | 2010E | 2011E | 2012E | 07-‘12 CAGR |
|||||||||||||||||||||||||||
| Revenue |
$ | 733.2 | $ | 806.6 | $ | 857.6 | $ | 918.6 | $ | 962.1 | $ | 1,014.1 | $ | 1,059.4 | $ | 1,116.9 | 5.4 | % | |||||||||||||||||
| Growth % |
17.8 | % | 10.0 | % | 6.3 | % | 7.1 | % | 4.7 | % | 5.4 | % | 4.5 | % | 5.4 | % | |||||||||||||||||||
| EBIT - Adjusted |
$ | 225.4 | $ | 226.0 | $ | 207.6 | $ | 202.4 | $ | 219.4 | $ | 255.7 | $ | 281.2 | $ | 318.7 | 9.0 | % | |||||||||||||||||
| Margin % |
30.7 | % | 28.0 | % | 24.2 | % | 22.0 | % | 22.8 | % | 25.2 | % | 26.5 | % | 28.5 | % | |||||||||||||||||||
| Growth % |
32.9 | % | 0.3 | % | (8.1 | )% | (2.5 | )% | 8.4 | % | 16.5 | % | 10.0 | % | 13.3 | % | |||||||||||||||||||
| Proforma EPS |
$ | 2.34 | $ | 2.46 | $ | 2.22 | $ | 2.05 | $ | 2.16 | $ | 2.64 | $ | 2.96 | $ | 3.41 | 9.0 | % | |||||||||||||||||
| Growth % |
36.0 | % | 5.1 | % | (9.8 | )% | (7.6 | )% | 5.5 | % | 22.0 | % | 12.1 | % | 15.1 | % | |||||||||||||||||||
Source: Management plan estimates per GYI management; IBES for Street Estimates; Adjusted plan per GYI Board discussion.
Note: 1 IBES “EBIT” approximated by IBES “Operating Profit” given greater number of estimates available. Proforma EPS excludes one-time items
| 1 |
Adjustments to 2008E management plan include EPS per guidance to street for CY2008, 2008 revenue assumes 2008 revenue growth is 2.5% lower than management plan growth rate; 2009E-2012E revenue growth and operating margin reduced by (2.5)% in each year relative to management plan. |
PRELIMINARY
 |
Illustrative Discounted Cash Flow Analysis “Adjusted -2.5% on Revenue Growth and -2.5% on EBIT Margin” Plan | |
|
($ in millions) |
| EV/LTM EBITDA Multiples
| ||||
| Current (4-Feb-08) | 5.1 | x | ||
| Undist Price (18-Jan-08) | 4.2 | x | ||
| Terminal Multiple of 2012E EBITDA | |||||||||||||||
| 4.5x | 5.5x | 6.5x | 7.5x | ||||||||||||
| 10.0 | % | $ | 32.83 | $ | 37.00 | $ | 41.15 | $ | 45.30 | ||||||
| 11.0 | % | 31.72 | 35.71 | 39.67 | 43.63 | ||||||||||
| WACC | 12.0 | % | 30.65 | 34.47 | 38.26 | 42.06 | |||||||||
| 13.0 | % | 29.63 | 33.29 | 36.93 | 40.55 | ||||||||||
| 14.0 | % | 28.65 | 32.17 | 35.66 | 39.13 | ||||||||||
Source: Adjusted plan per GYI Board discussion.
Note: Assumes mid-year convention discounting for cash flows in CY08-CY12. Terminal value based on LTM EBITDA in year 5 is discounted 5 years. WACC analysis suggests 11.93% based on risk free rate of 4.83% (10 year average of 10 year U.S. Treasury as of 4-Feb-2008), risk premium of 5.16% (Ibbotson) and GYI beta of 1.65 (Barra historical beta), cost of debt of 8.5% and current capitalization.
2