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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 10, 2008 |
EXHIBIT (c)(12)
PRELIMINARY
Project Closeup: Board Update
Goldman, Sachs & Co.
10-Feb-2008
Illustrative Present Value of Future Stock Prices
($ per share)
Street Estimates
 |
Today | PV of ‘09E Share Price | ||||||
| FY ‘08 EPS | FY ‘09 EPS | |||||||
| $2.06 | $2.22 | |||||||
| 10.0 x | $ | 20.60 | $ | 19.58 | ||||
| 11.0 x | $ | 22.66 | $ | 21.54 | ||||
| 12.0 x | $ | 24.72 | $ | 23.50 | ||||
| 13.0 x | $ | 26.78 | $ | 25.46 | ||||
| 14.0 x | $ | 28.84 | $ | 27.42 | ||||
| 15.0 x | $ | 30.90 | $ | 29.38 | ||||
| 16.0 x | $ | 32.96 | $ | 31.33 | ||||
Management Plan – CY07-12 EPS CAGR = 13.7%
|
|
Today | PV of ‘09E Share Price | PV of ‘10E Share Price | PV of ‘11E Share Price | PV of ‘12E Share Price | ||||||||||||
| FY ‘08 EPS | FY ‘09 EPS | FY ‘10 EPS | FY ‘11 EPS | FY ‘12 EPS | |||||||||||||
| $2.25 | $2.55 | $3.15 | $3.60 | $4.22 | |||||||||||||
| 10.0 x | $ | 22.54 | $ | 22.46 | $ | 24.49 | $ | 24.70 | $ | 25.52 | |||||||
| 11.0 x | 24.80 | 24.71 | 26.94 | 27.17 | 28.08 | ||||||||||||
| 12.0 x | 27.05 | 26.96 | 29.39 | 29.64 | 30.63 | ||||||||||||
| 13.0 x | 29.31 | 29.20 | 31.84 | 32.11 | 33.18 | ||||||||||||
| 14.0 x | 31.56 | 31.45 | 34.29 | 34.58 | 35.73 | ||||||||||||
| 15.0 x | 33.82 | 33.70 | 36.74 | 37.05 | 38.29 | ||||||||||||
| 16.0 x | 36.07 | 35.94 | 39.19 | 39.52 | 40.84 | ||||||||||||
Source: 2008E and 2009E EPS estimates for Street based on the median of IBES estimates. Management plan estimates per GYI management
Note: Assumes illustrative cost of equity discount rate of 13.36% based on risk free rate of 4.83% (10 year average of 10 year Treasury as of 04-Feb-2008), risk premium of 5.16% (Ibbotson) and beta of 1.65 (Barra historical beta)
PRELIMINARY
 |
Illustrative Present Value of Future Stock Prices Revenue & Operating Margin Sensitivities - Incremental Change in Each Year | |
|
($ per share) |
(2.5)% Revenue & (2.5)% Operating Margin Sensitivity to Management Plan – CY07-12 EPS CAGR = 9.0%
 |
Today | PV of ‘09E Share Price | PV of ‘10E Share Price | PV of ‘11E Share Price | PV of ‘12E Share Price | ||||||||||||
| FY ‘08 EPS | FY ‘09 EPS | FY ‘10 EPS | FY ‘11 EPS | FY ‘12 EPS | |||||||||||||
| $1.96 | $2.16 | $2.64 | $2.96 | $3.41 | |||||||||||||
| 10.0 x | $ | 19.60 | $ | 19.08 | $ | 20.53 | $ | 20.31 | $ | 20.62 | |||||||
| 11.0 x | 21.56 | 20.98 | 22.58 | 22.34 | 22.69 | ||||||||||||
| 12.0 x | 23.52 | 22.89 | 24.64 | 24.37 | 24.75 | ||||||||||||
| 13.0 x | 25.48 | 24.80 | 26.69 | 26.40 | 26.81 | ||||||||||||
| 14.0 x | 27.44 | 26.71 | 28.74 | 28.43 | 28.87 | ||||||||||||
| 15.0 x | 29.40 | 28.61 | 30.80 | 30.46 | 30.94 | ||||||||||||
| 16.0 x | 31.36 | 30.52 | 32.85 | 32.49 | 33.00 | ||||||||||||
(5.0)% Revenue & (5.0)% Operating Margin Sensitivity to Management Plan – CY07-12 EPS CAGR = 4.2%
 |
Today | PV of ‘09E Share Price | PV of ‘10E Share Price | PV of ‘11E Share Price | PV of ‘12E Share Price | ||||||||||||
| FY ‘08 EPS | FY ‘09 EPS | FY ‘10 EPS | FY ‘11 EPS | FY ‘12 EPS | |||||||||||||
| $1.68 | $1.81 | $2.18 | $2.41 | $2.73 | |||||||||||||
| 10.0 x | $ | 16.75 | $ | 15.93 | $ | 16.99 | $ | 16.53 | $ | 16.54 | |||||||
| 11.0 x | 18.43 | 17.53 | 18.69 | 18.18 | 18.20 | ||||||||||||
| 12.0 x | 20.11 | 19.12 | 20.39 | 19.83 | 19.85 | ||||||||||||
| 13.0 x | 21.78 | 20.71 | 22.09 | 21.49 | 21.51 | ||||||||||||
| 14.0 x | 23.46 | 22.31 | 23.79 | 23.14 | 23.16 | ||||||||||||
| 15.0 x | 25.13 | 23.90 | 25.49 | 24.79 | 24.82 | ||||||||||||
| 16.0 x | 26.81 | 25.49 | 27.19 | 26.44 | 26.47 | ||||||||||||
Source: Management plan estimates per GYI management as adjusted for incremental revenue decline and operating margin decline in each year of projections.
Note: Assumes illustrative cost of equity discount rate of 13.36% based on risk free rate of 4.83.% (10 year average of 10 year Treasury as of 04-Feb-2008), risk premium of 5.16% (Ibbotson) and beta of 1.65 (Barra historical beta)
2
PRELIMINARY
|
|
Historical vs. Projected Capex and Acquisition Investment | |
|
($ in millions) |
| 2003A | 2004A | 2005A | 2006A | 2007A | 2008E | 2009E | 2010E | 2011E | 2012E | ‘03-‘07 Average |
‘08-‘12 Average |
|||||||||||||||||||||||||||||||||||||
| Revenue |
$ | 523.2 | $ | 622.3 | $ | 733.2 | $ | 806.6 | $ | 857.6 | $ | 940.0 | $ | 1,008.0 | $ | 1,087.7 | $ | 1,163.6 | $ | 1,255.7 | ||||||||||||||||||||||||||||
| YoY Growth |
13.0 | % | 18.9 | % | 17.8 | % | 10.0 | % | 6.3 | % | 9.6 | % | 7.2 | % | 7.9 | % | 7.0 | % | 7.9 | % | 13.2 | % | 7.9 | % | ||||||||||||||||||||||||
| Currency Neutral Growth |
6.2 | % | 13.8 | % | 16.4 | % | 10.3 | % | 1.8 | % | — | — | — | — | — | 9.7 | % | — | ||||||||||||||||||||||||||||||
| Capex |
$ | 35.3 | $ | 36.7 | $ | 57.8 | $ | 61.5 | $ | 62.9 | $ | 62.6 | $ | 62.5 | $ | 60.8 | $ | 61.2 | $ | 61.9 | $ | 50.8 | $ | 61.8 | ||||||||||||||||||||||||
| Capex as % of Sales |
6.8 | % | 5.9 | % | 7.9 | % | 7.6 | % | 7.3 | % | 6.7 | % | 6.2 | % | 5.6 | % | 5.3 | % | 4.9 | % | 7.1 | % | 5.7 | % | ||||||||||||||||||||||||
| Acquisitions |
$ | 5.5 | $ | 25.6 | $ | 234.4 | $ | 198.3 | $ | 254.7 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 143.7 | $ | 0.0 | ||||||||||||||||||||||||
| Acquisitions as % of Sales |
1.1 | % | 4.1 | % | 32.0 | % | 24.6 | % | 29.7 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 18.3 | % | 0.0 | % | ||||||||||||||||||||||||
| Capex + Acquisitions |
$ | 40.8 | $ | 62.3 | $ | 292.2 | $ | 259.9 | $ | 317.6 | $ | 62.6 | $ | 62.5 | $ | 60.8 | $ | 61.2 | $ | 61.9 | $ | 194.6 | $ | 61.8 | ||||||||||||||||||||||||
| Capex + Acquisitions |
7.8 | % | 10.0 | % | 39.9 | % | 32.2 | % | 37.0 | % | 6.7 | % | 6.2 | % | 5.6 | % | 5.3 | % | 4.9 | % | 25.4 | % | 5.7 | % | ||||||||||||||||||||||||
Source: Historical sales, capex and acquisition data per annual public filings. Historical currency neutral revenue growth data per GYI management analysis. Management plan estimates per GYI management.
3
PRELIMINARY
|
|
Illustrative Discounted Cash Flow Analysis Rev Growth and Capex + Acquisitions for Terminal Value FCF – Perpetuity Growth Method | |
|
($ in millions) |
Implied Share Price1
 |
Incremental FY08E-FY12E Annual Revenue Growth | ||||||||||||||||||||||
| (5.0%) | (2.5%) | 0.0% | 2.5% | 5.0% | |||||||||||||||||||
| $ | 200 | $ | 22.54 | $ | 25.58 | $ | 28.89 | $ | 32.45 | $ | 36.30 | ||||||||||||
| $ | 145 | 27.76 | 30.79 | 34.05 | 37.59 | 41.41 | |||||||||||||||||
| $ | 110 | 31.07 | 34.07 | 37.32 | 40.84 | 44.67 | |||||||||||||||||
| $ | 76 | 34.24 | 37.23 | 40.47 | 43.99 | 47.82 | |||||||||||||||||
| $ | 45 | 37.15 | 40.12 | 43.36 | 46.89 | 50.71 | |||||||||||||||||
| Implied ‘07-‘12 Revenue CAGR | |||||||||||||||||||||||
| 2.9 | % | 5.4 | % | 7.9 | % | 10.4 | % | 12.9 | % | ||||||||||||||
 |
Implied Capex as % of 2012 revenue | |||||||||||||||||
| $ | 200 | 20.2 | % | 17.9 | % | 15.9 | % | 14.2 | % | 12.7 | % | |||||||
| $ | 145 | 14.6 | % | 13.0 | % | 11.5 | % | 10.3 | % | 9.2 | % | |||||||
| $ | 110 | 11.1 | % | 9.8 | % | 8.8 | % | 7.8 | % | 7.0 | % | |||||||
| $ | 76 | 7.7 | % | 6.8 | % | 6.1 | % | 5.4 | % | 4.8 | % | |||||||
| $ | 45 | 4.5 | % | 4.0 | % | 3.6 | % | 3.2 | % | 2.9 | % | |||||||
Source: Management plan estimates per GYI management
Note: Assumes mid-year convention discounting for cash flows in CY08-CY12. 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. $76mm capex in terminal year is sum of 2012 Depreciation & 1 Amortization per GYI management plan.
| 1 |
Assumes discount rate of 12.0% and perpetuity growth rate of 1.5%. Incremental revenue growth sensitivity shows increase or decrease for each year of the GYI management plan. For example if management plan revenue growth in a given year is 10%, in the (5.0%) case revenue growth case, the sensitivity revenue growth is 5%. Change applies to every year of the projected period CY08-CY12. EBIT margins, D&A, capex, eso, and tax rates are constant with GYI management plan. Illustrative terminal year capex sensitivity assumes a different 2012 capex spend per sensitivity and is used to calculate the terminal value at different levels of sensitivity capex. |
4
