Viacom International, Inc. et al v. Youtube, Inc. et al

Filing 219

DECLARATION of William M. Hohengarten (Part Nine) Ex. 287 - Part 3 in Support re: 176 MOTION for Partial Summary Judgment /Viacom's Notice of Motion for Partial Summary Judgment on Liability and Inapplicability of the Digital Millennium Copyright Act Safe Harbor Defense.. Document filed by Country Music Television, Inc., Paramount Pictures Corporation, Viacom International, Inc., Black Entertainment Television, LLC, Comedy Partners. (Attachments: # 1 Exhibit 287 - Part 4, # 2 Exhibit 287 - Part 5, # 3 Exhibit 287 - Part 6, # 4 Exhibit 287 - Part 8, # 5 Exhibit 287 - Part 8, # 6 Exhibit 288, # 7 Exhibit 289, # 8 Exhibit 290, # 9 Exhibit 291, # 10 Exhibit 292, # 11 Exhibit 293, # 12 Exhibit 294, # 13 Exhibit 295, # 14 Exhibit 296, # 15 Exhibit 297, # 16 Exhibit 298)(Kohlmann, Susan)

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From: Sent: To:
Cc:

:R,Amnt
Monday, October 9, 2006 11 :07 AM

Duca Ston
Scrougb, Chrs
Gree

i James .

Subjec:
Attach:
Storm

Boa Maals
1: .:.

Maal for Gren Boad.pdf

Attched plase lind the Green Board Materials In pdf format.

Thanksl
Amrft

AmiitRåo
Crdi SuMo TeçlnoJo Croup
65 Callornl St 33id Flcor

Sail Frane. CA 9408

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HIGHLY CONFIDENTIAL

CSSU 003560
D¡TE: S 't ,Dl1 ¡ 1. E~IBlT ¿

DEPONENT: S~CV i Wi V
CASE: Viacom, et aI., v. YouTube, et aI., The Football Association Premier League, et aI., v. YouTube, et aI.,
'Case Nos. 07-CV-2203 and 07-CV-3582
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, A. Ignacio Howard, CSR, RPR, CCRR, CLR, No. 9830

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Project Snowmass

Presentation to Board of Directors of Green

October 9, 2006

PRELIMINARY I SUBJECT TO FURTHER REVIEW

AND EVALUATION
AS SPEO!CYCONTPfTE BY A

WRmNJ\RES WlT CROIT suis

'l MA'ÆLS MAY NOT ee us OR REUse UPO FO Al PURPse 01 THA

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SummarY of Key Trans.action Terms
Based on Draft Merger Agreement as of October 6, ~006

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Summary of Terms

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~ $1.65 billon of Green Class A common
($MJ

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¡ SUmmary of Implied Tra~saction Statjs~ics..

stock in exchange for all shares, options, warrants and other equity interests'of Yellow

Implied l Green
Yellow : Stree"~ , T xn Statistics l Stalisli cs (~I

· Number of shares based on Green's 30
day average closing price two days prior to closing
. NatCas
Fully-DUuad Agregate Value
(Mi,~

Fully.Dlluted EquIty Value

· Shares to be registered via S-3 pqstclosing
." One year indemnification period (except

Revenye CY2007E

for certain representations and warrnties)
· Liabilty for breaches generally limited

to 12.5% of the aggregate

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CY00S
CY2007E CY2008E

$150

29
$87
144

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8.7
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consideration
· Escrow of 12.5% of

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the aggregate

CY2007E CY200Se

$3
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consideration

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(2) Yelow projectons pe Green Managemen

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(3) Base on Gren sll Pr of $420.5 8a of Octer 6, 206. Projio ba on Thmas WeIsel anlys rean dated Se 14, 20 fo200 an ieES COnss esti for2008.
(4) Based on 35% fa rate

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Disçounted Cash
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Analysis
$3,404

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Equlty Value ($MM)

$3,500

$3,000 $2,583

$2,500

$2.000
$2,094
--__~ __w_ ~_ _ ____ _ ____ _ _ _ _ ___

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$1,500

Aggregate Consideration:
$1,650MM

$1,00

$1,193

$500

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CONFIDENTIAL

Yellow Company Overview

=!

): iFounded:
2005
" Upload ù1g and she Vld6QS woidwld

Yelw odlnaay at 88 a pe vide sh sece an ha gron Into en entertnment deslOn Wllf peple wachin more than ~18C mllon

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Round
Datê
($MM)
($MM)
NA NA

Amunt Polt-ney Rased V.ltioll
Company Slage

Septemer 20, 2006 . Announcd C1gular.spo prmoUon to discover unsgn bani and musJo
September 18, 2006 . Anl1ncd VIeo dIbuton and reenue
iinØllp wf Warer MlIc Grop.

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Round Typø 1st
11105

$3.5

ShIppin Proct
ShIpping Prouct

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4106

8.0

AugUl 22, 2006 - Uneied no adveitlng conoelsllpatoiyVkeo
Ats (PVA)8nd Brand Chanlsto ØICOge dialoue betw

Invesor Include: Seqela Capiiai

co1l and marktet. Yello name their li Brand Chnn pa,
Werr Brathei Recrds, and deslgntes 8 channal fo Pais Hiln to praOù her deb albm ParrS.
June 27, 2006 . Anollce a elraleglo parerhip lIat WUL cobine NBC's

prramming wllh YelloW' audIence

May 10, 2006 -launced a sece uiiit aUow; peple to upload vldeo
dl fi thr moile pho an POAs to the Yelow Web si

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Yellow Company Overview (continued)

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Tota
O.7MM

Unique Users
16.1MM

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Total
10MM

Pages
661MM
1

VIewed

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NA

Initiated by

US Usørs

649MM .
2

Average MInutes

Per

Vlltor
11.6 33.7

min
min
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(1) Rank wltl anUii video $paÇ8 based on July 206 metr pe

.. Current number of videos viewed dally: 180MM

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~ Currant number of video uploaded dally: 100,000

.. Currnt number of new dally registrtions: 255,00

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Yellow Site Metrics
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169 1,29D 2,1
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664% 96%

117

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t,/ C
00t-05
Nov-oS
141%
S6%

Dec-5
Jar¡06
126%

Feb-06
15%

C
Growt
Rate

Mar-o
õ!%

Apr.06
35%

May.6
15%

Jun. 28%

JuI-06
23%

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36%

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48.0

62.

545

21.8 21.

111 .~., ~:a==1 ¡~ ~ 8.3 8. 9,5 ~ ... 105 :: 6. ~ ...
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1" A 12.1 12.9 12 14.1 13.8 14.41 1 Yellow

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CAGR

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Adversln 40,S'f

2005

2006

2007 2008
· SubsIptn. Advertsing II A la Carte

2001-2010
CAGR

.. 7 ,.0'7"

2.005 .20'\ 0 CAGR~ 50%

36.8%

~900.1 $1,180.0

4'1%
62.6% 42.5%

66.%

n/ C
2005
2006

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2007 2008 2009
· TV. Movies I! New. User-ereate. SpoTt _ Oter

69.%

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Yellow Transaction Rationale and Positioning
~ Yellow Is one of the leading and fastest growIng Web 2.0 companies
· Yellow has exhibited tremendous growt and has establIshed a loyal global following
· There are very few intemet companies exhibitIng this tye of growt and trction wih users

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.. Enables Green to catapult to the leader Ln online Video · On!ine vieo has been a top priorit for Green and stand alone effort are In the early stages of market accptance · Opportnit to extend monetzation sldlls Into a large, high growt market · YeIlow has consl~tently extended its leadership POItion over Gren and all other online players In 2006
.. Accelerates Green's push Into stickfercommunlty-orlented content

.. Revenue and cost synergies are expected to drIve increasIng profits · Green can Immediately increase usage of Yellow as part of Its netork
· Green ca better monetize Yellow's traffc and viewlng with Its technlogy and Its relationships wi advertsers, content owners and publishers

· Green can realize cost savIngs in ad serving, bandwidth and sales · Yellow can drive additional monetlzble traffc through Green's search engine (not currently included In ñnanclal model)
.. Issues for Consideration:
· New

and improving busines model

· large acqulslton for an early stge copany · Retention issues · Uncertain legal issues
· Potential EPS dilution In the short term

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Description 12007E Traffic Assumptions
CPM

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2011ETramc Assumptions .
.. 9$OMM avg. vid view
per da by 2011e

Key Yellow Revenue Assumptions
on Yell
.. G4GR of 24%

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K~y Variable

Unrronelized
Video Traffc

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in '/i:i¡:: Ji.¡.~~:,¡:. .1:11'1; mil!i' : ,,1111 wesite ' i l'Shh.1 h . hli, 'ILl (1'1,1...\ ( ,,;

, ¡H'i .i;:...i~.. j...;'ill.....¡.I.1 '''i .. Cuentl !hre ere-180MM videos vlewd per day

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!,!i.:~!i;;n:~¡ .II:!I' ~W,hJ~.d:.;.:lt i.:.: . 13% ofvlos vfwe on parterwebSle (I.e.. Myce.
It.,.. , 'q"

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.. 67SN annal iie vfws
by 20116 " CAGRof24%

----.-.li"--"-'f...._.~aa)'"~i__'_H._..l...._..'__I..."_.____._..--_._-_..___''"'...._1_.....__......_______.._..--..._
" Page views on th ares of th Yellow wesIte:

l~:.i'!'..(¡¡ a ¡i~-i-i~ .t: ,.' . !:;II¡:' : .1: "' i:.... l;l:,1 \t' .1.

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· Sea Page: --6% oftolal page vi
. Wat Page: oi5% of totl page view

.1 '"+;::....,~~ lÇf,. ~"!..: ...:~

· Home Pag -10% of tolaf page Vi
.. Asumes 1:1 Vldei Strea to Watc Page ra
.. Impli -2808N anl page vies In 2l07E

~:t ~:n:!.~~:':~fl .';~lfl:ll!~::~!"f !:j!1

-_.._.-.il..__I...._.._.__...._-"'-_.....__._..___H4..__..__"""_.~___H..fM~_~"'.....___I_f___.._

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::: d.~::.i.~:"~.. .i'ib:l~ .1'; .,~il .. MS 10'" of premium cotent provleii allow Yello to moritlza provldere aDow YeUo to " Grow tfl 513 by \i vt wi!

!lf~i~i;i~::l.¡.¡,I~r..~:Ji!i IlifliiÍ'I~' 'r;,i: lbr cotenlln 2007E . monetize thcolet 20116 not &e vldeo ad$ ì'j:'~:li: :', 'fi!¡l,gin: . '.' . '. : · ·5050 reenue share on adrting Inventor for Yelw advei lnvø10 .. GOON In 2011 e i,,:r'. '\ ~ëfm' ~ :.Irt.," . ,,~ 75% se throgh liUt (afer 10% allc:llon . · 79% selthlOh OR In 2OO7 '1r~'.'ir.i~ . '" J',l:i' :1.''1''elensBS.at tc) .. "'BN an vleo ad i 1, I',, n.hI!,! i I,ll.ln. . '.1. .."...... ..""..I..~.. omge e sf sod
~.iiii"i.¡.' iS .. -lBN Videa ad steam sod In 2007E CAG8Rffof ""'"

,uii.i..." ..t. I .. VP74

,'.1.'.1",' .'.',

--_.....__...._-,...........__.._.-.."._-..._.......__.._._..__._.....---_..._....-..._...._---_..._.._,.-----.._----_.... -10% of Non-Pum

.. 40% o( tota vIdeo s!lms on Yel webs an:i Non.Prwn
.. Non-remium Conlent 1$ use gerirateci ..klll and Is segmente

betwen hIgh vaue conte and regular content
.. -2.% of NonPremIum cotent can be maetld us VldD ael In

cont ca be moneti
us vlao Bds by 2011l:

" ClM of $3

In 2007E

.. 45BN srusl nOl

prum vks
vl wla not see
.. -8.5BN vide ad atr sol by20115

.. Grcwng to $5 by 2111E

20075

· sei through snd reenue share asumpt consstent with
premlum vido asumplton

"CAGRof78%

vieo ads In 20015 .. 100BN In 20115

· NOn-taeted run of sIte ads seied on serch and Wat Pages
· 254BN paSS vie in 20075

-_._-.__.__....._._.'-1_'_.__..,....._

. -900MM vi ad stms sod in 2007E:
· e03BN pevlby 20115 . CPM of $0.14
"CAGRof24%

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spore by Foxs Pin erak)

.. 67SN page VI by 20115

. Assum 100% nell throgh on adveing Inventory

.. CARof24%

.. CPM of $Sin 207e
gre to $5 by 2011 e

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. 28BN page views In 20075

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CONFiDENIA

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Yellow Long-Term Financial Projections
FinanciaJs based on Green management (pro forma for trnsaction)
Yellow Calenclar Year Financial Performance '07-'11

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2007E 2008E 2009E 2010E 2011E CAGR
Premium Video

$ i$51

($MM) ,
101% 102% 24% 41% 85%

$168
9

High Value Non-Prmium Video Run of Site Ads
Sponsore Ads

3 35

$565 35

Gross Revenue
$379
Net Revenue (1)

§§ $174 $640

~
iJ
$950
$681

53

$342 20 67

$835 43

~

77

~ $1,27
$902
33%

84

$150
$299

%

Growt
NM

$477
60".t

S9%

57% 65%

EBITOA

43%

%Mln

I % MargIn . 35% 40?ñ 48% 60% 50% _ J Income Taxes .1 ~ Z§ .1 158 % Tax Rate 35% 35% 35% . 35% 36% NOPAT 34 78 140 221 293 71% % MargIn 23% 26% 29% 33% 33%
'Surc: Yellow financial ala per Gren management pro orm r n.

58 33 LpesatiD&A 15 ~ 31 oM 45 71% : ng Income 52 120 215 340 451 O er

% Growt

45

fj

ÑM

12

48

144 246

52 8õ

æ%

374

55

496

(1) Net of parter revenUe share expense, ~;:~I'!I/:~f~i'~;;:Q':t::¡ ., IllleitcÇG,..eltnl

U"tf."~ ll' -llllll"i.I'1:IJ'lJ 'I', '.)l1'hl . '$MMJ'

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Revenue $66
% YIYGrwt

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CREDIT Suiss~

E6JTOA 38 M. 43
SOI Hlslcrical fillngaand an lln:.

189%

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DlscountRate: _~
Eqll Vale
(GMM)

$3,50
$3,000

$3,404

$.
$2.00
$1.50 $1,00

Aggregate ConsIderation:
$1,650MM

$50
$0 9.OX

11.0x 13.0x

9.0x

11.OX 13.0x

9.0x

H.Ox

13.OX

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DCF Sensitivity on Financial Performance

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CY07 - CY11 CAGR:

40.0% I

$1,267

$1,643
$1,972

$2,962

45.0% I

1,430

1,85
2,252

2,224

3,33
(2,702 J

52.9% 1

1,734

4,066

55.0% I
1,754

2,273
2,483

2,728 2,980

4,090

60.0% I
1,917
Note: Based on a 225% ál$count TB and a 11,Qx leonina! EBfTDA multle,

4,466

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CREDIT SUISS~

4S

38

189%

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So til8lill fiing;æid anaya llaro.

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~ Selected Companies Analysis

$239
~.47
3259
tfeer.: I' .;'" . 01" ,. . : ¡ ,.. :: h.4 !~T"".i LI... . j. ¡
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$6,3

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37;J77 13.847

S3

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2,1fQ 1,617 LLL

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(O) S7~ (37.l%) ~

(4%) ~ ~l%l
12.

.sn: lVD~'lI~,".*,we"ill~
(SMJ

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(tY'-"'-"~lO_doll_l_otV_--"Yl_"" ~'*''''''_I_",ci_.."".2Or.~_

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C'ae 144 13.. 1ao $1.865. $2,613 I JI $2199
I ~:OÑJ1IÅif:sÁ"¡lsos:;~li~.~;i!i~~t~I;$~æo\'~.D!;tl~ .' ~~~)~~~~)M~I j~.aa!ìß~~~~;

CY07e ~ 35.0x - 45Ox $1.93 _ $1.5 I $1,06

em06! 78 22.0 - 27.0 $1.709. $2096 I $1.959
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Implied equity reference range of approximately $1.2BN to $2.6BN based on selected
company analysis
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Selected Internet Transactions

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Date Target Acquiror Vallie Value LTM NTM
0810906 Atm Enlertnmenf

~

Equity Ag(J. ~

04/241Ó6 Xf
V1com
NBC Universal

Vlcom
102

'. .. '. $'o. I l .! ~ i 20
60
36,9x
22.6X
NA
NA NA

030616 MUage 01(17(06 dMare Brocssllng(3)

NA NA

NA NA

0912/05 Sky (2

Gre
eSy
Ne News

095 IGN (1)
071815 Intermix (I)
03(21/05 Ask Jeeves

Corp .

1,2El 4,040

Cop
. NM
21.9x
NA

65
41.9x
571 1,858 50 410

NA NA

031f05 Flick
021615 About.om 11114/04 MarklWstch Inc

InterACUeCorp Yahoo New York 11mes

31A x 15,ax
NA 23.OX

09141 MusioMa
0312610 Kelkoo 07/08 PayPai
Yahool Yahool
1ElO

Do Jones & Co

$200 102 665 1.238 4,040 650 575 .1,9G6 60 410 512

45
160 556

30.x
52.9x
NA

23.1x
NA

eBa
1,46
:': ~

576 1.532

37.1x
NM

22.2
54.9x

Medlai
Mean

.' ... : .. ¡.... .. . " ....: "$' eX' ,.. 2t.i .
.. :: .:: ,.:. " ~ ::~: ):' ;:,:;:;;:. .L ; 36~iC : ~,:¡.:~~x ;'
;':'$1.6S0'¡i~¡': $~~l'i!r.ç:,' ~;:¡~::' :i..ÑNÌ:':::.: :-"2~Mx .

Y~low
Gree, ":,','; '..

....a. .........

NetÐ:lnoUd fer lnfll pui

So: Analst l'rc repo, sec Ilil and pr reeæ
(1) L TM caculat ai 0( JUl 2005.

(2) Base Ql æilmaled CYs revenue Of $6M an CY reveues of $200M. lneudes $1.BN In cotint 'pymets (3) Tnicln vaue base on $102M cash lnnsclon vaue lind Inludes $1. f BN In cotrllnt paymls

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*; llOi liOf ni 11. Ilti in or cen PW' lIiillllnanra V1Rbie;ffoiieu i.motl 4Ij: aqUl\y -.peon

eicri -- pi prce tn~ dei.cm an am_ oflnti.. te ohlinl and ot nOlH~on II8It
(1) Yeu pi perGI' manant prfC folin. Asum S1MMIlå $3 Cf~ Íl In 20 an 20 RIc:ly.
(2 Sa_en Grn Cl A

Gren im!ec1 baci Thoma Weiaiiys/8 Æpo dated Sell 14,iø8.lI ll collfo 2J7 end 2008. ~y. como _ cfo I"cf$4.50esofOCCl6,Zl

(3) Baci Gr 1a Ul of 29 2%
(4) Baa

on GÆ CI Ac:mcn likoUltand;ol30AMM fn: Giø 1¡) farthø peod lleå .lne30, 2005,Snd o¡i8Cedlø

fr Gren 1¡) roUl. prisniJull 30.20.

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Discounted Cash Flow Analysis Detail
Income statemnt

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~ Røvnue an margn asspt:
· 57% CAGR from 2007&2011e

$!

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Yc:low Projections CAGR
CY2007E CY2008E CY2009E CY2010E CY2011E 07E. 11E
n-emlìYlJ
!o50%

· 35 operallg margin In 2007E rllng
by2Q11e
Tex rate of 35%
Cah

Revnue
$16'0

,,~
.
00"

$29 em
$477
$681

4S

$39 57% 3S

Flow:

EB1TOA

"~r¡
46
62
:115
469G

67

48
120

144

sa
. 1m
35%

246
374-

,. Asme O&A ex equ 10% of sa
In 207E decln to 6% by 1I1n year

EBlT

" flrg
S6 .1 SS
SS
1M)

TalEfcl
TMlRs
34
24
8%

40 ái

~
1m :1

~ 34 ~
85
45

49 ~51 65% 4 71%

.1

,. Ca equal to D&ex

(201'E)

~ Ases ne Vlrkng capll do not h8 l!
mein

NOPAT

78
34
5%

22

29 71%
s"

Impat on fr ca fl

l'us; Depcltion & AmorOl

Les Çaia Exllum
Unlecl Fl6e eu Flow
$140
80%
" GIoi;h

" IJln

15 1'%

$3 .
12æ

$7
$22

~
G.
iW

31 ~

wi

Discount Rate an Terminal MuWpI..: ~ WACC rang of 20 - 26% (detil In awst) ~ T erlnel ealTOA ex mutlle of ~ - 1 Sx

S8

$3 71% ~ a

Discoiini Rate; 20.0% 22.5% 25,0%
tmpmJ 'perptu Gr Rate
7.8%

lllt:~trm¡vc Prcsnnt Value:is of Dc~cmliêr 31) 2006

Terminal Forward EBITOA 1.1ultiple: . 9.0"., ,11.0" ,13,()x (1,0" 11.0x 1;),Ox 9.0" 11.0x . '13,llx 15.2x 18.6x 22OX 16.2x 18.& 22Ox 15.2 18.6)( 22.0x fmp9d Unreved Ne IncoB MulbplB
10.%
11.6%

10.

12.4% 14.0%

12.6% 14'.8% 16.4%

PVofUnleveiFCF(CY0re-CY10E) $26 $2 $296 $21 $281 $261 $267 $267 $267

PVofTeiIValue(CY2011E&8end) U2 ga ~ .i im ~ ~ ~ ~
I~led Agr~gate Value $2,446 $21327 $3,40 $2,2 $2703 $3,144 $2,095 $2.50 $28

("

I Imlied Eqit Value $2447 $2,926 $3,40 $2262 $2702 $3,143 $2,004 $2,601 $27 I
SO: &se Ql Yel 1lnol da par Grn lIem pr fora1or iia

LØ$ Net Debt/ieash) ttl .1.1.1 .1.1.1 .: 1 J.

Ch

C/

C

(1) Bad OI Yelmanaenl dala as of Søplbt19. 20.

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17

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Weighted Average Cost of Capital Calculation

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Re6lil (OK Iillii) (Ol 1 f 34 CNerNelrl(Oac.) 985

MoWcia (Ol $3.9

anUn Cdtmt fndCSJD¥mfr SØNleo!

IllG io,l 26.91

Kn(D) 2117

iin§W'Øß¡'."WÖ@"''Aft,øam'MM

CSofEqalb

DIscount Rate:
~ Asumes WACC range of 20 - 25% ~ Sele~ copaies have weght averae co of c;plta of 14% - 19%
.. Baed on discIons with Crit &.se's Prite
Placments Grup, late st venlLre caplla firm

N..i.nilV Bolo or So Co_ (i"' R.i"" llla (l."'los ~ !lbi)

R!-F il (I .,

i.1l Rfak PnlJ (R. R,

7.0"

4.77%

~¡

1.l! 1.ll

1,$5 1e.% 1.75 18.% 2.oa 2l7%

1.73%

2.2 22%

0%

(.

l~ %~~t~ ~ 100 ~
(1ra&onllilrU¡ irn;;Q.. Cl6&, ilLi

lok to achieve annuald return ofS0-0% or more when evaluatlng potenllal equity lnvetmen In pr
IPO compaies ¡, Review of Implied pubUo copany WACO basd on
ra of ilustive betas
.. Private company premIum taken Int consIderation

li-. t- n" to_~..ii dO .C \S8...__l'iudo_l.u_i.rli.ialØ.... t41-.._I'_ØlOQ_bo..ileH..læN.

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CREDITSUISS~

(liquldil, maturity, etc.)

18

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.:~; .'.-"..._-. ',:. .,.o.'f!!''.

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Yellow CY06 Historical and Projected Financial Performance

z

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if iRevenue
$286,676
$1,372,199

$6,582,390
$ 1 1 ,0 0 0 ,0 0 0

Cot of Revenues

1,689.086

2.860,095

Gross Margin

.5.776.4
805,940 12%

8.250,000

Margin
G&A S&M R&D

(1,402,410) NM

(1,487,896) NM

258,476 137,104 370,175

461,597 240,161 424,543
62Ó,435 801,675 707,330
2r129,440
1.126,301

Operating Expenses

2,750,000 25% 801.242 1,035,299 913,460 2,750,000
0

765,755
(2,168,165)

Operating Income

(2,614,197)

(1,323,500)

Note: Figures through August

2006 are actuels. September through Decber 31, 2006 basad on Yeirow management forest.

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CREDITSUISS~
20

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CSSU 003582

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CONADEN

~
Avr~r;it;o St;lt'(ilic~

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Current Price (10/6r06) $420.50
Closing High Pric,, (1/11106) 471,63 Clo$iiig LoVJ Price (3/14105) 174,99

z
$4.ao
410.70

Green Historical. Stock Trading Performance Januaty 3, 2005 through Octber 6. 2006 'hD """i
7,3
5 ,7 6 3

Price

Volume
(OOOs)

~
t,vnragc Volume (0005) 10,071

$500

40"'7

396.
389.69

6.S9 6,60

150,000

6.7t
393.1

.. . '~.,
¡:~~!"J~~,Ob5 i,,¡:i.d~:~~

S,51

140,000 130,000

$450

.'t: k;siill .1' allS mul
:1' '~pipile;
)tb~oI ai~ ui'¡'''I'¡.ill'
:~~ren Tooiw . '.,', ::~
.........~
....._.~.. 1

120,000

$40
""."
.........

110,00
....

$30
~9re1~.1:'!:~:i

1.;~¡~~!-~..:J , ¡ ~.2i...

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~:a5ilri;.~

.....~'..

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BO.OOO

..Sde I' .: ". . " .. 'ì"~. po~: .~.. ,0, ,'11

$300
:i~:i~:;~Jr~:¡t:;::) :.::

\

7 0 ,0 0 0

$250

\,

eo.ooo
60,000

40,000 30,000 20,000
10.000
o
3/16105
5126105
818105

$200

$160

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$100 11305

10/18105

12/2915

3/14106

514106

814lO

c: Q

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SoR: Factet Noe: G Den eamngs llncnt dale.

22

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f\n:i:vsi E::tim,jU;:: fot FY F.;idf;(1 tH.c(-.nbu ~'j.

Summary of Green Analyst Estimates
Price 1.1 GI(I...1~~ rJf.".(::ml' r:riin:it. lll~.~ O,õlc Comi:;iny RecomfTct'dl\ticJl "rilrgc1. nólctl~) .rY¡~10.Gr. lY2ùüi( rvioor.a l:n'lClIiE FY20U7E i:v;.oúUF. ~F'~~'R..;~ 1_ 8er Skl _1m $7if loW.OO BiJ $lI 'I $U4 $11.8 lC1 7.oS 52500 llUl lØ, $13 . "4-"4 $,46$ $M , 60 l,4 . 12 ' lU3 . 7,14l 10l WR HarbllCt 41l00 BUl 15 10,W 10. 12. 4Sl00 Hol VmilO usa 7.05 am v.o . 11.4 ' 8.4 8. ' atlJ PMl1l Ea~Gi 62 7(t 11,14 eM BUl 9.12' l2.. . .,(1. 6,1
Mgll SlloF.naO_
atØ8 'TWollPoi\lS

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51s.

Ø,9O

1l11!

-418

l.l 11.11

MOI co &. CC
Bu
BUl SUY

Buy

:l0I
50000

SI4fO Pao Jo1l1l Ðlil5 JPMon
7,01
-414

:l
6,110

7. in i 'e '9m

W '4

.e,w 19$

ii

V.l 13.0

v.æ lU3

il,oo
lOAst

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7.lo
4,41
~,O%

8A3
5#179

SI1fO flBCCç_ SI G~IIe-Ci
~I,00

ii Bu
6C , 7,
10,2
9,SIl
',418

1m
13,4
lG,lI
14014 .

3m

4.:
3m
40470

e.i

8,5)

&.9.11$. 5.71 . 12.l . 10.5 l3. 10. . i:is
1~17 t410

17S

lIMl Olpo l caWoi_lo S
Bu Bu
2:Ul~
7.135

5400 52oo

6,8
8.078

US IUS
~,e 11041

811i1 Il eo- ROI
st Bu
Bui
Boy Buy

Ml'
7,2'1

11,~
1CM

Ilwt Mo~
lI W1 il.
ooOI

-so
7.c
100
9.&
7.00

9,iß '
4,272 .

10.1 . 1SJ
100 14.10

lUl .

~
l~ o,
1~

ll
-4
8A 8,8 , 6.8

9, 12
7,2
aM It to. .

19.3
12.7l .

Undor
7.'l

Il!
14,

8/1/3 C3&~ 7 1 0 FIl_~
Buy

71Z10 JI SOau_
Bii
7%75

71210 Ai ll
71Z1O ow &COIl

Il
7.3
12,2

l,

1~17 l27.

.,9
4,31

11124

Stllllk Sl oy
1Q.
6,1
SII Bu Bu

17.8
6,11

~1Z1O 'nv_1s
7.m

7/)

11)

9,1

10,4
10,1
9,810

71W lA 1l1J 7 12 __os 7=S Moil~
st

Bu
50.00

~
LQ,I

3,18 '

sm'

e,
4,c
4A5

l0A IU M4 13. m I3MI IUS OJ 13. a l:il0
SA
5,7l

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l,S . 11M .

712 p..oCl_..
Bu

7121O _
7l2 SWot !'laUl
7tillO aM eopc Motl&

. Stcn BIl

II
5200

2lll

7,2 6,9

104 .
lJO 13.2 V.9 12.6 g.Q4 1:i15

7,Q

71% Cdup
7121106 FlioAlb
7fl10 Cln 8l01l &. co

Ho

7,(
40.0

10,

4,l

8.77

10.8 . U.2

516.

.,1210 s.uohi

1,219 10,1 12, 4AB9 7,OS . 7,0 9.6 13. 15.1S Ily 10 l ~, ,... ..... i' ~ ". .~ . ~J'Ul~":::,l".:..~,~:l:l'rlr.,.,.:'. .:.',' , ,.'" ~.. l...~I~¡:~;;:;~';,~i~.'l~~Ij",.~,I~~~.~.~t:"" ~..., . ..,,,.~~~. ,~u:tt~J=~¡'~. .,!' I .,1 .."" i,. 11 I ~: ~~ !': . ,'iCillí-.¡"ï :~;~t~t: ,;f.t..... )¡ ~ .~~~f. ""~ ~"i ~~öa.. .. ~ . ... l~j,,,,, ~, í: . 't~~'/I.l-.l'..,ll(1l,'" '1' .

7I41 AmTeollc_ol

Slcn8oy Bu Bu Bu

u 12.s 7,.11o.10 13. 4~ 8,118 7.l1.. B,gs 12.10 15. M 11l . 4M2 5m 9.75 liAl 1~ 7 2.

7¡N 9$8 . 4AO 5.83 ".133 . 10.1 12. 13.9 '

""''''~''''l'~.l' .' ,. ,..:......~., ~"".."a.. '"¡iIl~' '\'.':~~" ., ~',._.,' .'.,., ,~'''l.

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CONFIOENTIAL

Green Summary Income Statement

.;. f; .
$2,100

GrH(m Qum1erl Finnncinl Peiiorrnilncc Grecn Anf'ual Pcrfcnilancc

FY20 0

5/\ FY2006E FY Ended O"cQmh"r 31,
$1.049 $1,290

( '0' z :: o m ~
Mar-GSA Jun-05A Scp-G5A Dcc-05A M¡i-06A Jiin.06A, Sop-U6E Dec-OUE 20051\, 20a6E 2007E

f:
Net Renu CO of Goos Sod
$795

GlProfU
92 1.144
1,352
3,56 (

~ 711

$89

m 787
j2 .w
JZ
Wol 1,691
1 ,46
249 263
1,157

$1.531

$1,671 I $1,a

-6.250

ai 1,51
£1
m
481 441
2,3081

.2
ml

$4,021 $7,103

=
86
817
3.973

$9MT

~
8,61

152 157
1tl5 165
198
174 175

R&D S&M

79 83

2121 1821
1,OOS

22

G&

jz .w
ass
1,051 ( 1,140

Opemtglnco
492

96 91 Z2 523

516 718
.&
672

i1

m1 l 92

1l
1,305

s
UEI
2,624-

1 ,1 6 9 1 ,1 6 1

6,85

il
4,52

Plus Deprclati
EBITA
814
Intent (Incoe)

ii .l 548
§Z 590

1.,1 (
!W
1,0311 1,111

j4 I .w
1.273

~

~

6.195

.m
2.4321
4.370

I Exns
605
543 695

Prll lnme

.w
G5

!2
!2
aá
170
$2.42 S17A

~ !1 7SB

~, !.
!í

LW e,os

Income Tax
Net Inco

ll
jM
437
$1.51

358
$1.33 .

m 381

.6a 49
æ7i 69
$2.41
310. I
$2.29 304,1

æ.i 771
$22 -I

~
879

1,641
$273

( ~i 1m m .
3,118

Wi 4,2
$5641
$13.00

$1.2
286.6

EPS Average Shes
287.2

28.7

$1.5 30.0

32
88~
13%

291.91
$ 2 .7 6
88%

$9,94 313.6

330.

IIIS EPS

-I
89" (
B~ 1 13% I

$9.95

$13.07

MírIt GlP
90
10% 10%

R&

S&
G&A

81m 11'1 11%

rn
62'Æ

8'

md

12% 13%

1im I

11!N I

9,d

11" im

B"

89 I

Opri InOO

ëlA
69
291'

Nettn.
43"
Growth Bires

TtlRe
22%
12%

~ I1
3Ø
2m
18$

~ ~---31%

~
30
106
10% 694% 14%

4zr
93%
B8% 1

i Rel'lnU6 YIY

25"

Rønt Qo

(2)
113%

2."
114" U%

1m
81% 24%

9% I

Ope /t YIY
O¡xrat/ng Int Q.

rnd
4% 1

Em 71i'J

~
11m
2%

03%
17%

106" .
61%
S%
16%

.1
106% I

77%

72"

sgi6

47%
421% 76%
6%

11m 6n
34;m

.1
má
Ba 1

.
6m

:i..
77
713% I

EPSYIV

7~

31%

('

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Sõia Thom W8isl Bnt _rê report oa1ed sepem 14, .

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CREDlTSUISS~

24

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æ CONFIDENTIL.

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CS does not provide any tax advice. Any tax statement herein regardIng any US federal tax Is not intended or wrtten to be used, and cannot be used, by any taxpayer for the purpose of avoiding any penalties. Any such statement herein was written to support the marketing or promotion of the transacton(s) or mattr(s) to whIch the

~ i-

statement relates. Each taxpayer should seek advice based on the tapayer's particular cIrcumstance frm an Indepeent tax advisor.
These mateal have been provided to you by Credit Suiss ("es) In connecUon wit an actl or potental mandate or engagement and
may no be used or relied upon for any purpose oter than as speocally contemplate by a written agret wi OS. In addition, thase

maer may not be dIsclosed, In whole or In part, or summarlzed or otherse reer to exct as agreed In wrng by OS. The
infornon used In preparing these matls was obtaind frm or through you or your representatives or fr public sourc. OS assmes no resposlbllty for Indepen,dent verfUon of such Informaton and ha reUed on such Infortin belri complet end accrate

In all material respect. To the extntsuct informatin Includes estimates and forecast offure financlal peifnc Oiicludlng esmates of potential cost savings and synerIes) prpare by or revIew or discssed wi the managemen of your company and/or
aller potential trnsacton partcipants or obtained frm public sources, we have assumed that such esma and forests have been reasonably prepared on bases reflectin the bas currently available estmate and judgents of such managements (or, With respect to
estimates and forecasts obtained from pubnc sours, represent reasonable estimate). These mateals were designed fo use by specifc

pens famUlar with the business and the affirs of your company and OS assumes no obligation to update or otrwse reise these

materals. Noting contined herein should be constued as ta, accunting or legal advice. You (and each of your employe,

reprsentatives or oter agents) may dlscles6 to an and all persons, without Ilmlttlon of an kind, the ta treatent and 1astn of
the transactons contemplated by these mateiils and all matenals of any kind ~ncudlri opln(ons or other ta anaes) that are proided to you relating to such ta treatment and strre. For this purpose, the ta tratmnt of a traction Is the purpor or claImed U.s.
federa purported or c1afmed U.S. federal

Income tax tratment of the transcton and the tax strctre of a transacton Is any fac that may be relevant to undersnding the

Inco tax tratment of the trnsacton.

CS has adopted pollces and guidelines desIgned to preserve th Independence of lis researc analys. CS's policies prohibit employees

fro directy or IndIrectly ofering a favorable researc rang or Speoio pric target, or offenng to chang a researe rating or prce target, as consldertlon for or an Inducemellt to oblaln buslness or o.ther compenstion. CS's pollcles prhIbit research analysts from being
copensate for their Involvement In Inveslmant banking trnsactions.

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