Compact Valuation Model Strictly Confidential

Table of Contents Model Check

Summary Balance Sheet Balanced? Yes

Comparable Trading Analysis
Precedent Transaction Analysis
Discounted Cash Flow Analysis
Segmented Revenue
Price at Volume Chart

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Valuation Summary
Implied Enterprise Value
All figures in USD thousands unless stated

300,000

280,000 272,532

260,000 253,592

240,000

220,000 214,477
218,359
200,000

180,000

160,000
157,339
140,000
142,259
120,000

100,000
DCF Valuation Analysis Comparable Trading Analysis Precedent Transaction Analysis
Comparable Trading Analysis

Peer Group Enterprise EBITDA EV / EBITDA

Companies Value LTM 1
FY+1 LTM 1 FY+1
Alpha.com 189,707 10,961 11,223 17.3x 16.9x
Big Bucks LLP. 202,875 10,643 11,466 19.1x 17.7x
Centibillions Inc. 216,680 9,914 12,252 21.9x 17.7x
Deep Pockets Ltd. 239,182 10,138 11,878 23.6x 20.1x
Evergreen Co. 230,596 9,820 11,578 23.5x 19.9x
Fat Cat Inc. 196,404 9,652 11,803 20.3x 16.6x

Target Company Enterprise EBITDA EV / EBITDA

Valuation 2
Value LTM 1
LTM 1
Maximum 214,477 9,091 23.6x
Minimum 157,339 9,091 17.3x
Mean 190,378 9,091 20.9x
Median 191,845 9,091 21.1x

LTM means Last Twelve Months. ⁽¹⁾

All figures in USD thousands unless stated Target Company Valuation based on LTM Multiple. ⁽²⁾
Precedent Transaction Analysis

Date Enterprise EBITDA EV / EBITDA

(YYYY-MM-DD) Acquirer Target Value LTM 1
FY+1 LTM 1 FY+1
2023-03-11 Cake Ice Cream 232,149 7,744 11,055 30.0x 21.0x
2023-03-06 Salt Pepper 233,627 9,727 11,130 24.0x 21.0x
2022-09-17 Fish Chips 239,893 8,885 10,437 27.0x 23.0x
2021-11-13 Peanut Butter Jelly 208,244 8,324 9,914 25.0x 21.0x
2021-08-13 Brisket NoSauce 214,117 7,931 9,315 27.0x 23.0x
2021-06-01 Biscuits Gravy 239,481 8,249 11,971 29.0x 20.0x

Target Company Enterprise EBITDA EV / EBITDA

Valuation 2
Value LTM 1
LTM 1
Maximum 272,532 9,091 30.0x
Minimum 218,359 9,091 24.0x
Mean 245,525 9,091 27.0x
Median 245,446 9,091 27.0x

LTM means Last Twelve Months. ⁽¹⁾

All figures in USD thousands unless stated Target Company Valuation based on LTM Multiple. ⁽²⁾
Model Assumptions

All figures in USD thousands unless stated 2020A 2021A 2022A 2023F 2024F 2025F 2026F 2027F

INCOME STATEMENT

Revenue 45,201 50,164 54,261 58,000 61,500 64,500 68,000 71,500

COGS 24,518 26,589 28,541 30,000 31,000 32,000 34,000 36,000
SG&A 4,800 5,100 5,500 6,000 6,600 7,300 7,700 8,100
Other Expenses 1,987 2,016 2,045 2,000 2,000 2,000 2,000 2,000
Depreciation 3,985 4,005 4,058 4,000 4,000 4,000 4,000 4,000
Interest Expense 1,845 1,652 1,398 1,200 1,000 800 600 400
Current Tax (Levered) 987 992 1,000 1,000 1,000 1,000 1,000 1,000
Deferred Tax (Levered) 1,957 2,001 2,006 2,000 2,000 2,000 2,000 2,000

CASH FLOW STATEMENT

Cash From Operations

Cash from Accounts Receivable 27 35 31 30 30 30 30 30
Cash from Inventory (185) (203) (220) (200) (200) (200) (200) (200)
Cash from Accounts Payable 168 182 174 175 175 175 175 175

Cash From Investing

Capital Expenditure (3,997) (4,016) (4,002) (4,000) (4,000) (4,000) (4,000) (4,000)

Cash From Financing

Line of Credit Issue / (Repay) (587) (875) (994) (7,000) – – – –
Term Loan Issue / (Repay) (3,000) (3,000) (3,000) (3,000) (3,000) (3,000) (3,000) (3,000)
Equity Issue / (Buyback) – – – (500) (500) (500) (500) (500)
Payment of Dividends (1,000) (1,000) (1,000) (1,000) (1,000) (1,000) (1,000) (1,000)

UNLEVERED FREE CASH FLOW

Current Tax (Unlevered) 1,086 1,091 1,104 1,100 1,100 1,100 1,100 1,100
Income Statement

All figures in USD thousands unless stated 2023F 2024F 2025F 2026F 2027F

Revenue 58,000 61,500 64,500 68,000 71,500

COGS (30,000) (31,000) (32,000) (34,000) (36,000)
Gross Profit 28,000 30,500 32,500 34,000 35,500

SG&A (6,000) (6,600) (7,300) (7,700) (8,100)

Other (2,000) (2,000) (2,000) (2,000) (2,000)
EBITDA 20,000 21,900 23,200 24,300 25,400

Depreciation (4,000) (4,000) (4,000) (4,000) (4,000)

EBIT 16,000 17,900 19,200 20,300 21,400

Interest Expense (1,200) (1,000) (800) (600) (400)

EBT 14,800 16,900 18,400 19,700 21,000

Current Tax (1,000) (1,000) (1,000) (1,000) (1,000)

Deferred Tax (2,000) (2,000) (2,000) (2,000) (2,000)
Total Tax 1 (3,000) (3,000) (3,000) (3,000) (3,000)

Net Income 11,800 13,900 15,400 16,700 18,000

These are levered taxes calculated after the impact of interest expense. ⁽¹ ⁾
Cash Flow Statement

All figures in USD thousands unless stated 2023F 2024F 2025F 2026F 2027F

CASH FROM OPERATIONS

Net Income 11,800 13,900 15,400 16,700 18,000
Depreciation 4,000 4,000 4,000 4,000 4,000
Deferred Tax 2,000 2,000 2,000 2,000 2,000
Cash from Accounts Receivable 30 30 30 30 30
Cash from Inventory (200) (200) (200) (200) (200)
Cash from Accounts Payable 175 175 175 175 175
Subtotal 17,805 19,905 21,405 22,705 24,005

CASH FROM INVESTING

Capital Expenditure (4,000) (4,000) (4,000) (4,000) (4,000)
Subtotal (4,000) (4,000) (4,000) (4,000) (4,000)

CASH FROM FINANCING

Line of Credit Issue / (Repay) (7,000) – – – –
Term Loan Issue / (Repay) (3,000) (3,000) (3,000) (3,000) (3,000)
Equity Issue / (Buyback) (500) (500) (500) (500) (500)
Payment of Dividends (1,000) (1,000) (1,000) (1,000) (1,000)
Subtotal (11,500) (4,500) (4,500) (4,500) (4,500)

CASH BALANCE
Beginning 5,000 7,305 18,710 31,615 45,820
Change in Cash 2,305 11,405 12,905 14,205 15,505
Ending 7,305 18,710 31,615 45,820 61,325
Balance Sheet

All figures in USD thousands unless stated 2022A 2023F 2024F 2025F 2026F 2027F

ASSETS
Cash 5,000 7,305 18,710 31,615 45,820 61,325
Accounts Receivable 6,000 5,970 5,940 5,910 5,880 5,850
Inventory 2,000 2,200 2,400 2,600 2,800 3,000
Property Plant & Equipment 65,000 65,000 65,000 65,000 65,000 65,000
Total Assets 78,000 80,475 92,050 105,125 119,500 135,175

LIABILITIES
Accounts Payable 3,000 3,175 3,350 3,525 3,700 3,875
Line of Credit 7,000 – – – – –
Term Loan 20,000 17,000 14,000 11,000 8,000 5,000
Deferred Taxes 1,000 3,000 5,000 7,000 9,000 11,000
Total Liabilities 31,000 23,175 22,350 21,525 20,700 19,875

EQUITY
Equity Capital 42,000 41,500 41,000 40,500 40,000 39,500
Retained Earnings 5,000 15,800 28,700 43,100 58,800 75,800
Shareholders' Equity 47,000 57,300 69,700 83,600 98,800 115,300

Total Liabilities & Equity 78,000 80,475 92,050 105,125 119,500 135,175

Check – – – – – –
Discounted Cash Flow Schedule

All figures in USD thousands unless stated Valuation Discrete Forecast Term
(YY-MM-DD) (YY-MM-DD) (YY-MM-DD) (YY-MM-DD) (YY-MM-DD) (YY-MM-DD) (YY-MM-DD)
23/01/01 23/12/31 24/12/31 25/12/31 26/12/31 27/12/31 28/12/31

UNLEVERED FREE CASH FLOW

EBITDA 1 20,000 21,900 23,200 24,300 25,400 25,908
Current Taxes (Unlevered) 2 (1,100) (1,100) (1,100) (1,100) (1,100) (1,100)
Capital Expenditure 2 (4,000) (4,000) (4,000) (4,000) (4,000) (4,000)
Cash from Working Capital 3 5 5 5 5 5 –
Unlevered Free Cash Flow 14,905 16,805 18,105 19,205 20,305 20,808

ASSUMPTIONS CASH FLOW PROFILES

First Year of Forecast 2023 Discrete Forecast 14,905 16,805 18,105 19,205 20,305
Terminal Growth Rate 2.0% Terminal Value 4
– – – – 208,080
Weighted Avg. Cost of Capital 12.0% Total Cash Flow 14,905 16,805 18,105 19,205 228,385

ENTERPRISE VALUE EQUITY VALUE PER SHARE

PV of Discrete 63,318 35% Equity Value 159,389
PV of Terminal 118,070 65% Shares Outstanding (FD 000) 34,200
Enterprise Value 181,389 100% Equity Value (USD/sh) 4.66

EQUITY VALUE PREMIUM (DISCOUNT)

Enterprise Value 181,389 Equity Value (USD/sh) 4.66
Less: Net Debt (22,000) Current Price (USD/sh) 2.71
Equity Value 159,389 Premium (Discount) 72.0%

Terminal year EBITDA is equal to previous year grown at the terminal growth rate. ⁽¹ ⁾
Current taxes & capital expenditure in terminal year have been set equal to the previous year. ⁽² ⁾
Cash from working capital has been set to zero in the terminal year. ⁽³ ⁾
The growing perpetuity method was used to calculate the terminal value. ⁽⁴ ⁾
Sensitivity Analysis

Terminal Growth Rate 2.0% Shares Outstanding (FD 000) 34,200

Weighted Avg. Cost of Capital 12.0% Current Price ($/sh) 2.71
Enterprise Value 181,389
Net Debt 22,000

ENTERPRISE VALUE EQUITY VALUE

Terminal Growth Rate Terminal Growth Rate

1.0% 1.5% 2.0% 2.5% 3.0% 1.0% 1.5% 2.0% 2.5% 3.0%
10.0% 10.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
11.0% 11.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
WACC

WACC
12.0% 12.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
13.0% 13.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
14.0% 14.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

EQUITY VALUE PER SHARE PREMIUM (DISCOUNT) TO CURRENT PRICE

Terminal Growth Rate Terminal Growth Rate

1.0% 1.5% 2.0% 2.5% 3.0% 1.0% 1.5% 2.0% 2.5% 3.0%
10.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 10.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
11.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 11.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
WACC

WACC
12.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 12.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
13.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 13.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
14.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 14.0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

All figures in USD thousands unless stated These tables require the workbook calculation to be set to automatic.
Segmented Revenue

Features Omit Data Labels If

✘ Block amount Value less than $0
✘ % of category Percent less than 5%
✘ Column totals

Segmented Revenue
All figures in USD thousands unless stated

60
54
50
50
45 24.1%
26.0%
40 26.7%
36
25.9% Delta
30 27.8% 24.0%
22.2% Charlie

22.2% Bravo
20
35.2% Alpha
36.0%
37.8%
10 38.9%

13.3% 14.0% 14.8%

11.1%
–
2019 2020 2021 2022
3-Year Trailing Stock Price & Volume

Update on Projects
75% The Eagle Project is nearing the completion date of Dec 31, 2023
50% Operation Michelin is half complete and remains under budget
25% Expansion of the North Plant only just started two months ago
– New product launch tooling has not started due to permitting delays

3-Year Trailing Stock Price & Volume

3.50 100,000

90,000
3.00
80,000

2.50 70,000

60,000
2.00
50,000
1.50
40,000

1.00 30,000

20,000
0.50
10,000

– –
Volume Price