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8/19/2019 Yell Class
1/30
Analysis of BT Yellow Pages CCF 2000-2007 (pounds in t
Year Source
REVENUES-MANAGEMENT PROJECTIONS Exhibit 6
Advertisement Volume (‘000)
growthWeighted Average Advertisement Price (£)
growth
Gross revenue ('000 pounds)
growth
R!"#$- R!%$& PR'CT%'"$Advertisement Volume (‘000) Ex 6
growthWeighted Average Advertisement Price (£)
Inflation rate forecast Text page 5
C!
"eighted vg# dv# !rice ($)
Gross revenues ($ '000)
growth
Discounts and free ads (£’000) Ex 6
s % of gross revenues
&et revenues
revenue growth
Costs
Direct costs (£’000) Ex 6
% of net revenuesOverhead costs (£’000)
% net revenues ounf gt pro up to *5%
E+IT,
E+IT, argin %
Depreciation (£’000) Ex 6
E+IT
,epreciation
Change in " C Ex 6
as a % of net revenues increases
8/19/2019 Yell Class
2/30
Capex
CC- .efore taxes
as a % of E+IT,
Taxes T&/
CC- of 12 ,irectories +usiness
CC- of other 12 +usinesses
CC- of 12 operations
Growth
8/19/2019 Yell Class
3/30
housands)
Actual Actual Projected Projected Projected Projected Projected Projected31-Mar-0031-Mar-0131-Mar-02 31-Mar-03 31-Mar-04 31-Mar-05 31-Mar-06 31-Mar-07
813 853 927 991 1,058 1,126 1,194 1,254
3#40% # 6#4 6# 6#5 6 5641 645 644 648 649 649 649 649
0#60% /0#* 0#6 0# 0 0 0
5*4 55005 547*4 63760 667 7*3*7 573 *37*0
5#50% #6 #5 6#4 6#5 6 5
813 853 927 991 1,058 1,126 1,194 1,254
3#40% # 6#4 6# 6#5 6 5641 645
#30% #7
6#00% 6#00% 6#00% 6#00% 6#00% 6#00%
6 544 55 55 570 50
5*4 55005 567 547760 604* 6*305 6773 6730*
5#50% 3# #4 #3 #3 # *# 0#
42,402 47,276 78,180 86,585 84,324 86,615 85,366 86,049
#60% *7#6 *3#6 *7#4 *7#4 *7#5 *7#5
340 50* 340 5065 5736 57340 53646 55*75*
5#00% /0#4 *# 7#7 # #7 0#
180,479 187,395 195,972 201,742 206,649 211,278 214,996 216,716
7# 7#7 7#5 7#5 7#5 7#5 7#5 7#5102,530 88,870 37* 60*6 50 0* 036 07
*#30% *# *5 *5 *5 *5 *5 *5
*45* 65* 7663 30* 363 5305 54*7 6*4
30#4 35#* 3#5 3#5 3#5 3#5 3#5 3#5
5,530 5,370 6,130 8,850 8,400 7,630 8,000 8,000
*4075* **3 705* 7*6 303 36745 5**7 574
5,530 5,370 6,130 8,850 8,400 7,630 8,000 8,000
10,570 12,772 2,178 6,000 8,497 6,300 4,375 2,023
57 /3 0 5* 56 75 75
8/19/2019 Yell Class
4/30
7,380 9,760 10,220 9,730 9,230 8,380 8,000 8,000
177,931 203,985 224,250 224,988 230,920 239,345 247,548 252,360
40# 40#* 43# 47#5 4#4 43# 45#7 46#3
50 70003 7307 770 3*7 35044
*4534 *4343 *46* 0*05 05775 06*
/3566 /*337 /*63* /7 *76 *456 *0000 0000
*7*0 *636 *404 04* *5775 6*
#00% 6#* #5 6#* 5#5
8/19/2019 Yell Class
5/30
BT Yellow Pages Ta P*o+e,tion
YearActual Actual Projected
Source 31-Mar-00 31-Mar-01 31-Mar-02
E+IT ('000) T& Ex/* *4075* **3 705*
Interest Expenses 8ee calculation /*70**7
,educti.le roll ups Ex footnote /5300
E+T 45006
Taxes 50
Ex ** 70%
Cal,ulation of %nte*est penses
&et $,hedule Ex
8enior ter loan Ex footnote 600000 550000
/50000
8enior Ter 9oan + *5000 *5000
8enior Ter 9oan c *5000 *5000
:igh ;ield .ond 500000 500000
interests) *0**7
CC-?Total de.t service (onl= 12 operations) *#0x
CC-?Total de.t service including *00 pound revolver *#5x
8/19/2019 Yell Class
6/30
Projected Projected Projected Projected Projected31-Mar-03 31-Mar-04 31-Mar-05 31-Mar-06 31-Mar-07
7*6 303 36745 5**7 574
/*6*67 /*07 /**77 *0337 /4657
/564 /5444 /677 /6663 /03
*000*3 **30*0 *75 *30* *50770
70003 7307 770 3*7 35044
70% 70% 70% 70% 70%
35000 75000 5000 *5000 5000
/5000 /*00000 /*00000 /*00000 /*00000
*5000 *5000 *5000 *5000 *5000
*5000 *5000 *5000 *5000 *5000
500000 500000 500000 500000 500000
***04 **04* *73*7 *700 *7*0
564 5444 677 6663 03
*37604 *7304* *33*7 **550 *06*0
/564 /5444 /677 /6663 /03
37350 755 465 *5 *75
*367 *367 *367 *367 *367
*300 *300 *300 *300 *300
5750 5750 5750 5750 5750
*6*67 *07 **77 *0337 4657
0**67 07 *77 0337 *4657
0#47 0#4 0#46 *#05 *#*6
*#37 *#75 *#37 *#53 *#6
8/19/2019 Yell Class
7/30
Analysis of Yellow Boo. #$A p*o+e,tions/ CCF 2000-2007 ( 10
"ew aun,hes Cal,ulation
New launches (number)
evenues per launch (@ '000)
Expected revenues fro new launches
,irect and sales costs per launch
Costs fro new laucnhes
E+IT, fro new laucnhes
'*gani, 3*owth Cal,ulation
Total revenues
Growth %
&ew launches revenues
Arganic revenues
(growth is calculated on total revenues at th
B%T&A Re4ised P*o+e,tionsArganic E+IT, (@ '000)
&ew launches E+IT,
Total E+IT,
E+IT, argins
E+IT, growth
,epreciation
E+IT
ddB ,epreciation9essB change in woring capital
9essB Capex
CC- .efore taxes
as a % of E+IT,
Taxes
8/19/2019 Yell Class
8/30
:=pothesisB ,e.t of @600D000 in 006
at *0% interest rate generates tax shields
CC- @'000 of 18 operations
Growth
8/19/2019 Yell Class
9/30
00)
Actual Actual Projected Projected Projected Projected Projected
Source 31-Mar-00 31-Mar-01 31-Mar-02 31-Mar-03 31-Mar-04 31-Mar-05 31-Mar-06
Ex n/a n/a 7 8 7 8 0
Text page 6 *00 *00 *00 *00 *00
5600 6300 5600 6300
text p 6 3000 3000 3000 3000 3000
000 7000 000 70000
00 700 00 700
Ex 217,500 330,000 421,600 483,200 544,050 598,600 688,390
5*# # 7#3 70 # *5
&ew launches calculation 5600 6300 5600 6300
*500 770000 763400 3*300 3750 57700 6740
e end of previous =ear) 5*#0% *0#6 /0# 0#4 /*#4 *5
text page 6 6077 4346 *0733 *3 *04
*#00% *4 * 7 5
&ew launches calculation 00 700 00 700
730 3000 4077 **46 *7*033 *5553 *04
*0#4 *# *#5 7# 3#* 6 5
6#4 **6 7# *6# *# *0#6
Ex 6 /000 /630 /4*0 /370 /*0 /000
730 75000 3347 *0376 *76*3 *363 *6304
/000 /630 /4*0 /370 /*0 /000text page 6 73070 3500 7000 7035 5 3345
Ex 6 764 000 *0600 00 *0 440 000
0037 40 73777 46 4334 **4704 **407
3 7 65 * 64
Ex **B 75% of E+IT /457 /76575 3765 /5*76 /5373
8/19/2019 Yell Class
10/30
360 766* 34*3 643 6*6
66% 76 7 /4
8/19/2019 Yell Class
11/30
Projected
31-Mar-07
0
*00
3000
757,229
*0
54
*0
*470
5
*470
5
*0
/000
**70
/0007330
000
*36
/6735
8/19/2019 Yell Class
12/30
*000
*03370
64
8/19/2019 Yell Class
13/30
Cal,ulation of the *etu*n on assets
a) Cal,ulation of A4e*age asset eta f*o5 ,o5pa*ales in 60
Co5pany Co5pa*ale
8+C Counications &o
8/19/2019 Yell Class
14/30
%f 9uity Beta
4s 8$C%
o,al 9uity Assu5ed &et &et:! %5plied Asset Beta wo*ld inde
Rationale Beta Beta
&ot pure pla=er 0#53 *5#30% 0#67
&ot pure pla=er 0#57 #6 0#6*
&ot pure pla=er 0#3* *#5 0#3
&ot pure pla=er *#7 5 *#74
&ot pure pla=er 0#66 *6#3 0#6
&ot pure pla=er *#5 0# &?
0#4 0#5 3#3 0#7 *#00#4 0#5 # 0#45 0#
Anl= * =ear data *#36 *#* *#3
#77 0#5 *#4 #4 *#4
Anl= * =ear data 0#37 # 0#4
*#7
!alue
3#5%
*#
#
8/19/2019 Yell Class
15/30
%5plied Asset
Beta
0#0#5
*#
*#
8/19/2019 Yell Class
16/30
!aluation of BT Yellow Pages and Yellow Boo. #$A (pounds in thousa
a) !aluation of BT Yellow Pages
Projected
Source 31-Mar-01 31-Mar-02
eturn on assets T&/3 *7#0%
CC- ($'000) of 12 operations T&/* *7*0
T< g#0%
assued
,iscounting factor 0#3
,iscounted
8/19/2019 Yell Class
17/30
ds; unless othe*wise indi,ated)
Projected Projected Projected Projected Projected
31-Mar-03 31-Mar-04 31-Mar-05 31-Mar-06 31-Mar-07
*636 *404 04* *5775 6*
03*
EHuals #4x 00 E+IT,
#x 00 E+IT
0#* 0#64 0#6* 0#574 0#36
*3530 *7607 *746 **6054 *030
8/19/2019 Yell Class
18/30
) !aluation of Yellow Boo. #$A
Source 31-Mar-01
eturn on assets T&/3 *7#0%
Int ate @ 5#6*%
Int ate $ Ex ** 3#5%
(*> int rate @) (*> int rate $) *#0*%
eturn on assets @ *3#70%
CC- (@ '000) of 18 operations T&/7
T< g 5#0%assued
,iscount factor
,iscounted
8/19/2019 Yell Class
19/30
Projected Projected Projected Projected Projected Projected
31-Mar-02 31-Mar-03 31-Mar-04 31-Mar-05 31-Mar-06 31-Mar-07
360 766* 34*3 643 6*6 *03370
**3*4*6#x 00 E+IT,
6#5x 00 E+IT,
0#5 0#65 0#664 0#55 0#5* 0#33
3*67 7 7403 7457 7*60 367
555*3
8/19/2019 Yell Class
20/30
Total nte*p*ise !alue
a) Total nte*p*ise !alue and 8ai5u5 Bid (pounds in thousands)
8ource
8/19/2019 Yell Class
21/30
8/19/2019 Yell Class
22/30
8/19/2019 Yell Class
23/30
!aluation of BT Yellow Pages with the AP! 5eth
Projected$ou*,e 31-Mar-01 31-Mar-02
E+IT T&/* 705*
ess Taxes Ex ** 70% tax rate /64*56
E+IT *6*767
Add ,epreciation 6,130
ess Inc# in " C 2,178
ess Capex 10,220
-C- of 12 ,irectories 155,095
Ather 12 .usinesses Ex 6 -12,641
142,454
Growth T&/5a %
eturn on assets T&/3 Ra 6D2>
T<
ll eHuit= value of 12 *3447
.usiness
Interest expenses T&/ *70**7
,educti.le roll ups /5300
*755*7
Tax shields Ex ** 70% tax rate 30653
T< of tax shields .ased on
Growth T&/5a #00%
A T&/3 *7#0%
!< of interest tax shields 646
ll eHuit= value of 12 .usiness *3447
!< of interest tax shields 646
!< valuation of +T ;ellow pages 67@6E2EEHual to the CC- valuation in T&/5a
$ensiti4ity Analysis
6D20>
8/19/2019 Yell Class
24/30
8/19/2019 Yell Class
25/30
d
Projected Projected Projected Projected Projected31-Mar-03 31-Mar-04 31-Mar-05 31-Mar-06 31-Mar-07
7*6 303 36745 5**7 574
/64560 /03 /74*4 /5533 /6*6
*670 *6*7 *3 *664 *38,850 8,400 7,630 8,000 8,000
6,000 8,497 6,300 4,375 2,023
9,730 9,230 8,380 8,000 8,000
155,428 158,846 165,427 172,004 176,193
-8,238 1,362 1,956 10,000 20,000
147,190 160,208 167,383 182,004 196,193
1,793,417
*6*67 *07 **77 *0337 4657
/564 /5444 /677 /6663 /03
*7*53 *676 **660 ****0 *0756
74556 7* 7554 7777* 7*064
&is,ount Rate fo* Ta shields
6 62 66 60 E
8/19/2019 Yell Class
26/30
8/19/2019 Yell Class
27/30
!aluation of 20> Ca**y to P %n4esto*s f*o5 BT Yellow Pages %n4est5ent
Projected Projected$ou*,e 31-Mar-01 31-Mar-02 31-Mar-03
CC- ($ '000) of 12 Aperations T&/* *7*0 *636
T< T&/5a
Total CC- *7*0 *636
eturn on assets T&/3 *7#0%
E< **44 *7743 *0
Total de.t T&/ *550000 *505300 *37604
EHuit= 7*44 743 35*64
Total CC- *7*0 *636
less pa=ent of interest *70**7 *6*67less net de.t repa=ent 33600 6470
EC- 745 /5
epa=ent to 9!s /745 5
ount left for distri.ution & &
0% carr= pa=ent to G!s & &
e f > Je K !
Je (Ja > Jd K ,?
8/19/2019 Yell Class
28/30
axiu .id for +T ;ellow !ages *3*503
(excluding other transaction costs)
8/19/2019 Yell Class
29/30
Projected Projected Projected Projected31-Mar-04 31-Mar-05 31-Mar-06 31-Mar-07
*404 04* *5775 6*
03*
*404 04* *5775 7036
*47*03 *440*36 07667 7036
*7304* *33*7 **550 *06*0
5460*7 3*77 *605 *356
*404 04* *5775 7036
*07 **77 *0337 46574300* 476 47776 446
/*6*60 /7073 *56 **5*65
*6*60 7073 /*56 /7740
& & & *4*
& & & *6773
64 67 5 36
7#7 # #7 *#4
7 #5 # *#4
6#* #4 0# *#*
& & & *6773
0#37 0#75 0#4* 0#3
& & & 3033
8/19/2019 Yell Class
30/30
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