Slide 1: Summary Going Concern Valuation Report (Preliminary Draft)
Summary Going Concern Valuation Report (Preliminary Draft) In re UAL Corporation, et al.
Slide 2: Disclaimer
Disclaimer This exhibit was prepared by Rothschild Inc. ("Rothschild") for the benefit and internal use of United Airlines, Inc. ("UAL", "United", or the "Company"). In providing this presentation Rothschild has relied upon information that is publicly available or which was provided to Rothschild b
Slide 3: Summary enterprise valuation range
9.7x - 12.5x 2005E PF EBITDAR 4.9x - 6.3x 2006E EBITDAR 1.1 Summary enterprise valuation range 1. Preliminary Valuation Preliminary Valuation Enterprise valuation range ($ in billions) 6.8x - 11.6x 2005E PF EBITDAR 3.4x - 5.8x 2006E EBITDAR 8 - 9% discount rate; terminal values based on perpetuity g
Slide 4: Summary equity valuation
Total Equity Value is derived by subtracting net debt from TEV and adding Rothschild's valuation of the Company's NOL The range of Total Equity Value is $0.3 billion to $3.5 billion, with a mid-point value of $1.9 billion 1.2 Summary equity valuation Implied Total Equity Value and implied Total Ente
Slide 5: Comparable Companies Analysis overview
The Comparable Companies Analysis provides insight into how the public markets value comparable businesses with similar industry and growth profiles to UAL For UAL, this analysis is inherently challenged given the dramatic conditions facing the industry, which include a host of factors some of which
Slide 6: Comparable Companies Analysis overview (cont'd)
Rothschild ultimately incorporated the network carriers' current and historical market multiples into the Comparable Companies Analysis, with the preponderance of its weighting on the current market multiples of the NCs LCCs and selected international carriers were excluded from the Comparable Compa
Slide 7: Precedent Transactions Analysis overview
3.1 Precedent Transactions Analysis overview 3. Precedent Transactions Analysis The Precedent Transaction Analysis provides a valuation range based on analysis of M&A and recapitalization transactions that have similar risks and opportunities as United For the purposes of valuing United, Rothschild
Slide 8: Discounted cash flow analysis overview
4.1 Discounted cash flow analysis overview DCF analysis implies total enterprise value of $13.3 - $15.7 billion (1) 4. Discounted Cash Flow Analysis The DCF analysis values the Company's business plan by discounting future cash flows at a rate reflecting the company-specific risk factors and an assu
Slide 9: NOL valuation assumptions
Since an NOL provides a tax shield on future earnings, its value is typically reflected in the equity of an enterprise. Rothschild's NOL valuation reflects the present value of the savings achieved by the pre-tax income shielded by the loss carry forward Rothschild relied on the following assumption