citicorp - fusion cl&ca

Av. Atocongo 2440 – Villa María del Triunfo Lima 35 – Perú Teléfono: (511) 217-0200 Fax: (511) 217-1496 www.cementoslima.com.pe E-mail: [email protected]

GF.0070.12 Lima, 05 de Julio de 2012 Señores

SUPERINTENDENCIA DEL MERCADO DE VALORES SMV Presente.-

Atención: Registro Público de Valores e Intermediarios ------------------------------------------------------------------------ Ref.: Hechos de Importancia

-------------------------------------

Estimados señores:

CEMENTOS LIMA S.A.A., de conformidad con lo dispuesto por el artículo 28º de la Ley de Mercado de Valores y la Resolución CONASEV No. 107-2002-EF/94.10, informa el siguiente “Hechos de Importancia”: En relación a la Junta General de Accionistas de la Sociedad, convocada para el 24 de julio de 2012, en primera citación, se pone a disposición de los accionistas de la Sociedad el informe elaborado por Citicorp Global Markets Inc., con las valorizaciones de Cementos Lima S.A.A. y Cemento Andino S.A., que sirvió de base para la Relación de Canje determinada por las administraciones de ambas sociedades, que consta en el Proyecto de Fusión aprobado por los Directorios de las dos sociedades el pasado 27 de junio de 2012. Sin otro particular, quedamos de ustedes. Atentamente,

ALVARO MORALES PUPPO Gerente Financiero Representante Bursátil

Av. Atocongo 2440 – Villa María del Triunfo Lima 35 – Perú Teléfono: (511) 217-0200 Fax: (511) 217-1496 www.cementoslima.com.pe E-mail: [email protected]

cc: Directores GG VAL CONT.

Disclaimer

The accompanying material has been prepared by Citigroup Global Markets Inc. (“Citi”) and is subject to the terms of our

engagement letter with Cementos Lima S.A.A. (“CLSA” or the “Company”), including the section entitled "Use of Information"

therein. The accompanying valuation does not constitute an opinion by Citi as to the fairness to the Company or its

shareholders of the terms of any actual or proposed transaction involving the Company.

In preparing the accompanying valuation, Citi held discussions with certain senior officers, directors and other representatives

and advisors of the Company and of Cemento Andino S.A. (“CASA”), concerning the business, operations and prospects of

each of the operating subsidiaries that compose both companies. Citi examined certain publicly available business and

financial information relating to CLSA and CASA as well as certain financial forecasts and other information and data relating

to CLSA and CASA which were provided to or discussed with Citi by the management of CLSA and CASA. Citi considered, to

the extent publicly available, the financial terms of certain other transactions which Citi considered relevant in evaluating CLSA

and CASA and analyzed certain financial, stock market and other publicly available information relating to the businesses of

other companies whose operations Citi considered relevant in evaluating those of CLSA and CASA. In addition to the

foregoing, Citi conducted such other analyses and examinations and considered such other information and financial,

economic and market criteria as Citi deemed appropriate.

In preparing the accompanying material, Citi assumed and relied, without independent verification, upon the accuracy and

completeness of all financial and other information and data publicly available or provided to or otherwise reviewed by or

discussed with Citi and upon the assurances of the management of CLSA and CASA that they are not aware of any relevant

information that has been omitted or that remains undisclosed to Citi. With respect to financial forecasts and other information

and data relating to CLSA and CASA provided to or otherwise reviewed by or discussed with Citi, Citi has been advised by the

management of CLSA and CASA that such forecasts and other information and data were reasonably prepared on bases

reflecting the best currently available estimates and judgments of the management of CLSA and CASA as to the future

financial performance of the companies.

The accompanying material is necessarily based upon information available to Citi, and financial, stock market and other

conditions and circumstances existing and disclosed to Citi, as of the date of the accompanying material. Citi does not have

any obligation to update or otherwise revise the accompanying material. Nothing contained herein shall be construed as legal,

tax or accounting advice.

1

1. Executive Summary

Scope of Work Performed

As part of our valuation exercise of Cementos Lima S.A.A. (“CLSA”) and Cemento Andino S.A. (“CASA”), Citi

has performed the following tasks:

– Review of the operational and financial information provided by the management teams of CLSA and CASA

Citi had extensive discussions with the management teams of all material operating subsidiaries of CLSA

and CASA

– Review of the operational and financial information of relevant publicly traded peers (Latin American & Global)

for the different industries in which CLSA, CASA and their respective subsidiaries operate

– Review of recent M&A transactions involving companies in the Cement sector (relevant for CASA’s valuation)

Citi has performed a Sum-of-Parts valuation analysis for CLSA and CASA based on their financial projections

and the following methodologies:

– Discounted cash flow analysis

– Publicly traded multiples analysis

– Precedent transaction multiples analysis (applicable only to CASA)

We have valued each operating company individually to subsequently apply the corresponding proportional

equity participation in each of the businesses to CLSA and CASA

– This methodology allowed us to accurately value each of the minority interests held at the different

subsidiaries

2

Cementos Lima & Cemento Andino Organizational Structures

(1) Includes stake held through "Transportes Lurin“.* Not considered in valuation analysis given Management’s indication that these are considered Holding Vehicles with no operating activities.

We have considered the following corporate structure to perform our valuation analyses for each of theindividual entities.

CELEPSA60.00% 30.00%

Ferrocarril CentralAndino S.A.

(“FCA”)

Mining Projects

14.69%

100.00%

PrefabricadosAndinos S.A.(“Preansa”)

GeneraciónEléctrica Atocongo S.A.

(“GEA”)

99.85%

99.50%

Depósito AduaneroConchán S.A.

(“Decosa”)

50.00%

MineraAdelaida S.A.*

99.99%

NavieraConchan S.A.*

99.97%

0.07%

INVECO73.52% 19.86%

100.00%100.00%

BASF ConstructionChemicals Perú

(“BASF CC”)

30.00% 50.00%

Firth Industries S.A.

EntrepisosLima SAC

Unión deConcreteras S.A.

(“Unicon”)

SkanonInvestments Inc

Sunshine Concrete(“Drake Materials”)

Drake Cement LLC

93.33%100.00%

7.59%89.36%(1)

3.05%

Cementos Lima S.A.A(“CLSA”)

Cement Operations(“CL”)

Cemento Andino S.A.(“CASA”)

100.00%

Cement Operations(“CA”)

100.00%

0.07%

3

Overview of Valuation Methodologies

Applies LTM FV / EBITDA and FV / Capacity multiples paid

in precedent transactions in the Cement sector to CASA’s

financial metrics

Looks at premium multiples paid for control in the industry

(ONLY relevant for CASA’s valuation)

Analysis limited by the lack of pure-play Latin American

trading comparables in the various sectors in which CLSA

and CASA operate. Relevant comparable sets include:

– Cement (CL, CA, Unicon and Firth)

– Power (Celepsa)

– Light-side Building Products (Preansa andEntrepisos Lima)

– Diversified Chemicals (BASF CC)

– Railroad (FCA)

Reflects the market’s current perspective of the different

businesses CLSA and CASA operate

Based on forward Firm Value / EBITDA and FV / Capacity

(where applicable) multiples of global and regional

companies in the sectors where CLSA and CASA operate

Multiples applied to each of the operating companies’

relevant metrics

Publicly

Traded

Comparables

This methodology is usually the most sound as it takes into

account the expected evolution of the financial performance

of the businesses

This methodology is highly sensitive to Weighted Average

Cost of Capital (WACC) and terminal value assumptions

Captures the value of future cash flows and growth

opportunities

Analysis based on information provided by the management

teams of CLSA and CASA

– Projections take into account the management teams’

views of the different businesses

– CASA’s projections adjusted based on CLSA

management’s guidance

DCF

Methodology Summary Description Considerations

Precedent

Transactions

(CASA)

Precedent Transactions typically include a control premium

Analysis limited by the number of public transactions in the

Latin American cement sector, lack of comparability to

CASA’s business and size, and point in the cycle those

transactions took place

Citi’s valuation analysis considers the following methodologies for the independent valuation of each ofCLSA and CASA’s operating subsidiaries.

4

$753$711

$64

$45

$563

$19$14

$6

($190)

Cemento Andino

Firm Value

(DCF Range Avg.)

Net Debt Cemento Andino

Implied Equity Value

30.0% Stake in

Celepsa

19.9% Stake in

Inveco

7.6% Stake in

Skanon

14.7% Stake in FCA 100.0% Mining

Assets

Implied Equity Value

$1,829$219

$168

$129

$1,783

$1,304

($480)

$6 $6 $2

Cement Business

Firm Value

(DCF Range Avg.)

Net Debt Cementos Implied

Equity Value

89.4% Stake in

Skanon

73.5% Stake in

Inveco

60.0% Stake in

Celepsa

50.0% Stake in

Preansa

99.9% Stake in

GEA

99.5% Stake in

Decosa

Implied Equity

Value

Inveco

Valuation Range

Method. Low High

Unicon 3 5

Firm Value DCF $191 $226

(-) Net Debt (57) (57)

Implied 100% Equity Value $135 $169

Inveco Stake 100.00% 135 169

Entrepisos Lima 7 9

Firm Value Comps $6 $7(-) Net Debt 0 0


Inveco / Unicon Stake 50.00% 3 4

BASF CC 7 9Firm Value Comps $23 $34

(-) Net Debt 2 2


Inveco / Unicon Stake 30.00% 7 11

Firth 3 5


(-) Net Debt (14) (14)


Inveco Stake 100.00% 52 62

Stake in Skanon 3.05% $7 $8

Inveco Implied Equity Value $204 $253

CLSA Stake 73.52% 150 186

CASA Stake 19.86 41 50

June 2012

Project Fusion – Sum-of-Parts Valuation Summary

DCF based on 2011 UFCF assuming 0.0% perpetuity growth WACC: 9.05% - 9.55% (mid-point 9.30%) based on CL

DCF based on 2011 UFCF assuming 0.0% perpetuitygrowth

WACC: 9.05% - 9.55% (mid-point 9.30%) based on CL

5yr DCF based on Management projections, assuming perpetuitygrowth rate of 2.25% - 2.75% (2.50% mid-point)

WACC: 9.05% - 9.55% (mid-point 9.30%) based on CL Implied FV / 2012E EBITDA: 9.3x

Comps valuation based on 2012 Management budget Comps FV/ EBITDA range: 8.0x – 9.5x based on international

railroad public companies

Notes:(1) Includes 0.073% Stake through Minera Adelaida.(2) Figures based on DCF range average.(3) Includes net debt of US$5 mm held in other vehicles not considered in the valuation exercise.(4) Based on feasibility study prepared by ARPL.

5

5yr DCF based on Management projections, assumingperpetuity growth rate of 2.75% - 3.25% (3.00% mid-point)

WACC: 8.65% - 9.15% (mid-point 8.90%) Implied FV / 2012E EBITDA: 6.6x



Comps valuation based on 2012 Management budget Comps FV/ EBITDA range: 6.0x – 7.5x based on

international light-side building product public companies

Comps valuation based on 2012 Management budget Comps FV/ EBITDA range: 4.0x – 6.0x based on

international diversified chemicals public companies

10yr DCF based on Management projections (for the first5 years), assuming perpetuity growth rate of 1.75% - 2.25%(2.00% mid-point) for Drake Cement and Drake Materialscombined cash flows

WACC: 7.75% - 8.25% (mid-point 8.00%)







Cementos Lima Total Equity Value adds the proportionalequity value of its subsidiaries

Cemento Andino Total Equity Value adds the proportionalequity value of its investments in unconsolidated affiliates

– Considers new mining project based on feasibilitystudy prepared by ARPL

CLSA Valuation (2)

(US$ mm)CASA Valuation (2)

(US$ mm)

CLSA

Valuation Range

Method. Low High

Cementos 3 5

Firm Value DCF $1,666 $1,901

(-) Net Debt (480) (480)

Cementos Implied Equity Value $1,186 $1,421

Stake in Skanon 89.36% $197 $241

Stake in Inveco 73.52 150 186

Stake in Celepsa 60.00 116 142Stake in Preansa 50.00 6 7

Stake in GEA 99.93 6 7

Stake in Decosa 99.50 2 2

(-) Net Debt Held at Other Vehicles ($5) ($5)

CLSA Implied Equity Value $1,658 $2,001

FD Shares Outstanding 1,186 1,186

CLSA Equity Value per Share $1.40 $1.69

Premium (Discount) to Current 37.4% 65.8%

CASA

Valuation Range

Method. Low High

Cemento Andino 3 5


(-) Net Debt (190) (190)

CA Implied Equity Value $515 $611

Stake in Inveco 19.86% $41 $50

Stake in Celepsa 30.00 58 71

Stake in Skanon 7.59 17 20Stake in FCA 14.69 5 6

Mining Assets 100.00 8 21

CASA Implied Equity Value $643 $780FD Shares Outstanding 1.2 1.2

CASA Equity Value per Share $536 $650

Premium (Discount) to Current 59.8% 93.7%

Preansa

Valuation Range

Method. Low High

Preansa 3 5


(-) Net Debt (3) (3)


Preansa Implied Equity Value $12 $14

CLSA Stake 50.00% 6 7

GEA

Valuation Range

Method. Low High

GEA 3 5


(-) Net Debt 0 0


GEA Implied Equity Value $6 $7


Skanon

Valuation Range

Method. Low High

Skanon 3 5


(-) Net Debt (117) (117)

(-) Drake Cement Minority Interest (12) (14)


Skanon Implied Equity Value $220 $270CLSA Stake 89.36% 197 241


Inveco Stake 3.05 7 8

Celepsa

Valuation Range

Method. Low High

Celepsa 3 5


(-) Net Debt (166) (166)


Celepsa Implied Equity Value $193 $236

CLSA Stake 60.00% 116 142


Decosa

Valuation Range

Method. Low High

Decosa 3 5


(-) Net Debt 0 0


Stake in GEA 0.073% 0 0

Decosa Implied Equity Value $2 $2


FCA

Valuation Range

Method. Low High

FCA 7 9

Firm Value Comps $47 $56

(-) Net Debt (12) (12)


FCA Implied Equity Value $35 $44

CASA Stake 14.69% 5 6

(1)

(1)

(3)(1) (4)

$293

$536

$481

$196

$515

$650

$618

$386

$335

$100 $200 $300 $400 $500 $600 $700 $800

Precedent

Transactions

($170 - $310 / MT)

(7.5x - 8.5x LTM

EBITDA)

5Yr DCF

(9.35% - 9.85%

WACC)

Comparable

Companies

($300 - $330 / MT)

(9.0x - 11.0x '12E

EBITDA)

52Wk

Low - High

$1.40

$1.22

$0.70

$1.69

$1.55

$1.09

$1.02

$0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00

DCF

(SOP)

Comparable

Companies

(SOP)

52Wk

Low - High

Cemento AndinoCementos Lima

CLSA – CASA Side-by-Side Valuations

Current (1)

Notes:(1) As of June 22, 2012.(2) Except for Skanon, GEA and Decosa, which are accounted for based on DCF valuation.(3) 5yr DCF except for Skanon based on 10yr DCF. Inveco’s stake in Entrepisos Lima and BASF CC are accounted for based on comparable company multiples valuations.(4) Investment in Unconsolidated Subsidiaries accounted for based on comparable company multiples valuation, except for Skanon accounted for based on DCF. Unicon (excl. Entrepisos Lima andBASF CC) and Firth valuation range of 5.0x – 7.0x FV / 2012E EBITDA based on US Concrete multiples; Entrepisos Lima valuation range of 6.0x – 7.5x FV / 2012E EBITDA based on NorthAmerican Light-side building products companies multiples; BASF CC valuation range of 4.0x – 6.0x FV / 2012E EBITDA based on international diversified chemicals multiples; Celepsa valuationrange of US$1,500 - US$1,800 FV / KW and 7.0x – 8.5x FV / 2012E EBITDA based on Latin American power generation comparables; FCA valuation range of 8.0x – 9.5x FV / 2012E EBITDAbased on North American railroad companies; mining project based on feasibility study prepared by ARPL.(5) Investment in Unconsolidated Subsidiaries accounted for based on DCF valuation for each business, except for Inveco’s stake in Entrepisos Lima and BASF CC, and FCA based on comparablecompany multiples valuation, and mining assets based on feasibility study prepared by ARPL.

(3)

(2)

Price per Share(US$)

Price per Share(US$)

Current (1)

(5)

(4)

(4)

6

PF Ownership in Combined Entity

CLSA Shares Issued (mm) CL PF Shares Outs. (mm) Current CLSA Shs. Former CASA Shs.

215.0 - 659.3 1,400.7 - 1,845.0 64.3% - 84.7% 15.3% - 35.7%

335.1 - 423.0 1,520.8 - 1,608.7 73.7% - 78.0% 22.0% - 26.3%

372.9 - 608.4 1,558.6 - 1,794.1 66.1% - 76.1% 23.9% - 33.9%

473.9 - 478.8 1,659.6 - 1,664.5 71.2% - 71.4% 28.6% - 28.8%

381.1 - 557.6 1,566.8 - 1,743.3 68.0% - 75.7% 24.3% - 32.0%

460.0 - 462.0 1,645.7 - 1,647.7 72.0% - 72.0% 28.0% - 28.0%

227.1 - 507.2 1,412.8 - 1,692.9 70.0% - 83.9% 16.1% - 30.0%

288.6 - 399.1 1,474.3 - 1,584.8 74.8% - 80.4% 19.6% - 25.2%

CA Shares Outs. (mm) CL Shares Outs. (mm)

1.2 1,185.7

189x

318x

311x

179x

423x

465x

507x

549x

330x

292x

384x

397x

324x

0x 100x 200x 300x 400x 500x 600x 700x

Precedent

Transactions

DCF

Comparable

Companies

52Wk

Low - High

Exchange Ratio Summary

78.0%73.7% 22.0% 26.3%

75.3% 24.7%

71.4%71.2% 28.6% 28.8%

71.3% 28.7%

72.0%72.0% 28.0% 28.0%

72.0% 28.0%

80.4%74.8% 19.6% 25.2%

77.2% 22.8%

352x

395x 399x

383x 385x

241x 333x

279x

75.0% 25.0%

Notes:(1) As of June 22, 2012.(2) Based on CASA’s precedent transactions multiples valuation and CLSA’s comparable multiples valuations.

(2)

Current (1)

Implied Exchange Ratio(CLSA Shares per CASA Share)

7

0x 100x 200x 300x 400x 500x 600x 700x

Precedent

Transactions

DCF

Comparable

Companies

52Wk

Low - High

0x 100x 200x 300x 400x 500x 600x 700x

Precedent

Transactions

DCF

Comparable

Companies

52Wk

Low - High

Pro Forma Ownership Summary

78.0%73.7% 22.0% 26.3%

75.3% 24.7%

71.4%71.2% 28.6% 28.8%

71.3% 28.7%

72.0%72.0% 28.0% 28.0%

72.0% 28.0%

80.4%74.8% 19.6% 25.2%

77.2% 22.8%

84.7% 15.3%64.3% 35.7%

76.1%66.1%

75.7%68.0%

83.9%70.0%

23.9% 33.9%

24.3% 32.0%

16.1% 30.0%

75.0% 25.0%Current (1)

Notes:(1) As of June 22, 2012.(2) Based on CASA’s precedent transactions multiples valuation and CLSA’s comparable multiples valuations.

Current (1)

Former Cemento Andino ShareholdersCurrent Cementos Lima Shareholders

The implied exchange ratios under the different valuation methodologies result in the following Pro Formaownerships:

(%) (%)

(2)

8

Jun-11 Aug-11 Sep-11 Oct-11 Dec-11 Jan-12 Feb-12 Mar-12 May-12 Jun-12

$150

$200

$250

$300

$350

$400

$450

Price

(US

$)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Volu

me

('000s)

CASA Volume

CLSA & CASA Current Market Valuations

CLSA and CASA shares trade at a deep discount to their intrinsic valuations.

52-Week High: US$386

52-Week Low: US$196

CLSA’s Market Valuation & Share Price Performance

Source: Company filings and Factset as of June 22, 2012.(1) Multiples calculated in local currency.

CASA’s Market Valuation & Share Price Performance

Jun-11 Aug-11 Sep-11 Oct-11 Dec-11 Jan-12 Feb-12 Mar-12 May-12 Jun-12

$0.50

$0.65

$0.80

$0.95

$1.10

$1.25

Price

(US

$)

0.0

0.3

0.6

0.8

1.1

1.4

1.7

1.9

2.2

Volu

me

(mm

)

CLSA Volume

52-Week High: US$1.09

52-Week Low: US$0.70

Period Performance ADTV (US$ mm) VWAP (US$)

1-Month 8.0% $0.2 $0.98

3-Month (1.5) 0.4 1.03

6-Month 31.1 0.3 0.99

12-Month 12.5 0.2 0.93(US$ in mm) Lima

Share Price (US$) $1.02

Shares Outstanding (mm) 1,185.7

Market Capitalization $1,206

(+) Total Debt 876

(-) Cash & Equivalents 35

(+) Minority Interest 162

(-) Invest. in Uncons. Subs. 2

Firm Value $2,208

FV / 2012E EBITDA (1)9.2x

FV / 2013E EBITDA (1)8.2

Total Debt / LTM EBITDA 3.9x

Net Debt / LTM EBITDA 3.7

(US$ in mm) Andino

Share Price (US$) $335

Shares Outstanding (mm) 1.2

Market Capitalization $402

(+) Total Debt 223

(-) Cash & Equivalents 32

(+) Minority Interest 0

(-) Invest. in Uncons. Subs. 105

Firm Value $488

FV / 2012E EBITDA (1)5.7x

FV / 2013E EBITDA (1)5.1

Total Debt / LTM EBITDA 3.9x

Net Debt / LTM EBITDA 3.3

Period Performance ADTV (US$ mm) VWAP (US$)

1-Month 1.7% $0.0 $332

3-Month (9.6) 0.1 363

6-Month 48.3 0.1 334

12-Month 8.5 0.1 303

9

Natural Exchange Ratio Evolution

150.0x

200.0x

250.0x

300.0x

350.0x

400.0x

450.0x

500.0x

Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12

Natural Exchange Ratio Evolution(CLSA shares per CASA share)

Current 3-Mth 6-Mth 1-Yr 3-Yr

Average 329.6x 343.7x 323.9x 318.5x 319.2x

Source: Factset as of June 22, 2012.

Natural exchange ratio between CLSA and CASA shares has been very stable during the past few years.The current exchange ratio is at 330x.

10

$87

$25

$217

$319$330

($10)

Commercial Logistics Headcount Total Synergies Integration Costs Net Synergies

Potential Synergies

Source: RTM Synergies Report, as of June 2012.(1) Based on after-tax figures using a 40.8% effective tax rate (including PTU rate). Present value calculated using a 9.3% WACC and a 2.5% perpetuity growth rate, in line with Cementos Lima valuationassumptions.(2) Net of cost for salary stabilization for similar positions in both companies.

Present Value of Potential Synergies (1)

(US$ mm)

Commercial Synergies include: pricing synergies (43%), synergies for market share gains (38%), synergies for product mix improvements (15%) and synergies from sales forcesavings (4%)

Logistics Synergies include purchasing and other general savings

(2)

Significant synergies could result from a potential combination between CLSA and CASA, representing~13% premium to the combined DCF valuation and a ~20% to current combined market capitalizations.

Annual After Tax Run Ratesynergies of ~US$30mm

11

PV of Synergies (US$ mm)

$200 $250 $300 $350

70.0% 5.0% 7.9% 10.8% 13.7%

71.0% 6.5 9.4 12.3 15.3

72.0% 8.0 10.9 13.9 16.9

73.0% 9.5 12.5 15.5 18.5

74.0% 11.0 14.0 17.1 20.2

CL

SA

Ow

ners

hip

Value Creation Analysis – @ Current Market Capitalizations

Notes:(1) Based on RTM’s Synergies Report.(2) Current market price of US$1.02 as of June 22, 2012.

Pro Forma Equity Value + Synergies(US$ mm)

CLSA Price per Share Sensitivity(US$)

(1)

Value for CLSA Shareholders: US$1,388 mm

Value per CL share: US$1.17

Premium / (Discount) to Market: 15.1%

Value for CASA Shareholders: US$540 mm

Value per CA share: US$450


Premium to Current (2)

(%)

(72%)

(28%)


$1.17 $200 $250 $300 $350

70.0% $1.07 $1.10 $1.13 $1.16

71.0% 1.08 1.11 1.14 1.17

72.0% 1.10 1.13 1.16 1.19

73.0% 1.11 1.14 1.18 1.21

74.0% 1.13 1.16 1.19 1.22

CL

SA

Ow

ners

hip

$402

$319$540

$1,206$1,388

$1,928

CLSA Equity Value

(At Market)

(9.2x FV / '12E EBITDA)

CASA Equity Value

(At Market)


PV of Synergies Total PF Equity Value

(72%)

(28%)

12

Value Creation Analysis – CASA @ CLSA Multiple


$701

$319$623

$1,603

$1,206

$2,227

CLSA Equity Value

(At Market)


CASA Equity Value

(At CLSA's Mult iple)




(1)








(%)

(72%)

(28%)


$1.35 $200 $250 $300 $350

70.0% $1.24 $1.27 $1.30 $1.33

71.0% 1.26 1.29 1.32 1.35

72.0% 1.28 1.31 1.34 1.37

73.0% 1.30 1.33 1.36 1.39

74.0% 1.32 1.35 1.38 1.41

CL

SA

Ow

ners

hip


$200 $250 $300 $350

70.0% 22.3% 25.2% 28.1% 31.0%

71.0% 24.0 26.9 29.9 32.8

72.0% 25.8 28.7 31.7 34.7

73.0% 27.5 30.5 33.5 36.6

74.0% 29.2 32.3 35.4 38.4

CL

SA

Ow

ners

hip


13

Value Creation Analysis – @ DCF


$711

$319

$801

$2,059$1,829

$2,860

CLSA Equity Value

(At DCF)


CASA Equity Value

(At DCF)




(1)








(%)

(72%)

(28%)


$1.74 $200 $250 $300 $350

70.0% $1.62 $1.65 $1.68 $1.71

71.0% 1.64 1.67 1.70 1.73

72.0% 1.66 1.69 1.72 1.76

73.0% 1.69 1.72 1.75 1.78

74.0% 1.71 1.74 1.77 1.80

CL

SA

Ow

ners

hip


$200 $250 $300 $350

70.0% 59.0% 61.9% 64.8% 67.7%

71.0% 61.3 64.2 67.2 70.1

72.0% 63.5 66.5 69.5 72.5

73.0% 65.8 68.8 71.9 74.9

74.0% 68.1 71.1 74.2 77.3

CL

SA

Ow

ners

hip


14

citicorp - fusion cl&ca

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