EX-99.G 9 c28573_ex-g.txt Exhibit G PRELIMINARY DRAFT MANAGEMENT PRESENTATION TO THE [LOGO] HERCULES BOARD OF DIRECTORS 11-FEB-2002 PRELIMINARY DRAFT HISTORICAL AND PROJECTED WATER BUSINESS FINANCIALS(1) (US$ IN MILLIONS) --------------------------------------------------------------------------------
1999A 2000A 2001A 2002F 2003F 2004F ------------------------------------------------------------------------------ REVENUE Base Business $ 845.6 $ 849.1 $ 843.8 $ 863.2 $ 897.2 $ 924.1 PPD Tolling Arrangement 95.5 107.1 110.1 113.2 116.4 119.7 Paper Water 60.4 60.9 61.7 62.5 63.3 64.1 Affiliated Subs 2.2 3.5 3.5 3.5 3.5 3.5 Other (5.3) (1.1) 0.0 0.0 0.0 0.0 ------------------------------------------------------------------------------ Total Revenue $ 998.4 $ 1,019.5 $ 1,019.1 $ 1,042.4 $ 1,080.4 $ 1,111.4 GROWTH RATE NA 2.1% (0.0)% 2.3% 3.6% 2.9% GROSS PROFIT Base Business 519.5 516.1 512.9 536.8 560.0 572.9 PPD Tolling Arrangement 0.0 0.0 0.0 0.0 0.0 0.0 Paper Water 36.3 36.4 37.0 37.5 38.0 38.5 Affiliated Subs 0.3 0.5 0.5 0.5 0.5 0.5 Other 0.0 0.2 0.0 0.0 0.0 0.0 ------------------------------------------------------------------------------ Total Gross Profit $ 556.1 $ 553.2 $ 550.4 $ 574.8 $ 598.5 $ 611.9 GROSS MARGIN 55.7% 54.3% 54.0% 55.1% 55.4% 55.1% GROSS MARGIN W/O TOLLING 61.6% 60.6% 60.6% 61.9% 62.1% 61.7% EBITDA $ 216.3 $ 209.7 $ 216.6 $ 262.1 $ 270.6 $ 273.8 EBITDA MARGIN 21.7% 20.6% 21.3% 25.1% 25.0% 24.6% EBITDA MARGIN W/O TOLLING 24.0% 23.0% 23.8% 28.2% 28.1% 27.6% GROWTH RATE NA (3.1)% 3.3% 21.0% 3.2% 1.2% DISTRIBUTOR AGREEMENT $ 7.9 $ 7.2 $ 8.4 $ 9.1 $ 9.5 $ 9.8 EBIT $ 178.7 $ 173.1 $ 184.6 $ 229.8 $ 239.8 $ 244.2 EBIT MARGIN 17.9% 17.0% 18.1% 22.0% 22.2% 22.0% EBIT MARGIN W/O TOLLING 19.8% 19.0% 20.3% 24.7% 24.9% 24.6% ALLOCATED INDIRECT COSTS $ 24.0 $ 10.0 $ 9.1 $ 9.1 $ 9.1 $ 9.4 AS A % OF REVENUE 2.4% 1.0% 0.9% 0.9% 0.8% 0.8% CAPITAL EXPENDITURES $ 22.8 $ 25.2 $ 15.0 $ 20.8 $ 21.6 $ 22.2 AS A % OF REVENUE 2.3% 2.5% 1.5% 2.0% 2.0% 2.0%
CAGR ----------------------- 2005F 2006F 1999-2001 2002-2006 ------------------------------------------------------ REVENUE Base Business $ 951.8 $ 980.4 PPD Tolling Arrangement 123.1 126.5 Paper Water 64.9 65.7 Affiliated Subs 3.5 3.5 Other 0.0 0.0 ------------------------ Total Revenue $ 1,143.3 $ 1,176.1 GROWTH RATE 2.9% 2.9% 1.4% 3.1% GROSS PROFIT Base Business 590.1 607.8 PPD Tolling Arrangement 0.0 0.0 Paper Water 38.9 39.4 Affiliated Subs 0.5 0.5 Other 0.0 0.0 ------------------------ Total Gross Profit $ 629.5 $ 647.7 1.1% 3.0% GROSS MARGIN 55.1% 55.1% GROSS MARGIN W/O TOLLING 61.7% 61.7% EBITDA $ 279.7 $ 286.0 EBITDA MARGIN 24.5% 24.3% EBITDA MARGIN W/O TOLLING 27.4% 27.2% GROWTH RATE 2.2% 2.3% 6.6% 2.2% DISTRIBUTOR AGREEMENT $ 10.0 $ 10.3 EBIT $ 251.0 $ 258.1 EBIT MARGIN 22.0% 21.9% EBIT MARGIN W/O TOLLING 24.6% 24.6% ALLOCATED INDIRECT COSTS $ 9.7 $ 9.9 AS A % OF REVENUE 0.8% 0.8% CAPITAL EXPENDITURES $ 22.9 $ 23.5 AS A % OF REVENUE 2.0% 2.0% (3.0)% 3.1%
-------------------------------------------------------------------------------- Supplementary Information 33 (1) HISTORICAL AND PROJECTED FINANCIAL INFORMATION AS PER HERCULES MANAGEMENT.