Exhibit (c)(2)
Confidential – For Discussion Purposes Only
Project Chronos Update
December 1, 2016
Summary – Initial Chronos Perspective
$10.00
$8.00 $1.05 $7.76
(1)
$6.12 $0.58
(2)
($0.15)
$6.00
$2.20
$4.00
$1.35
$2.00
$2.72
$0.00
Balance Sheet Component Carryforwards Business Component Total Per Share
Balance Sheet Component Carryforwards Business Component
($mm, except per share data) Aggregate Per Share Free Cash Flows
Cash Tax Savings from Utilization of Capital Loss
Cash on CAM Balance Sheet $55.8 $2.72 and Net Operating Loss Carryforwards
Distribution from CILLC 27.8 1.35 WACC: 15%
WACC: 15% Perpetuity Growth: 3%
Repayment of Intercompany Loan 45.2 2.20
Other Q4 Cash Changes (3.1) ($0.15) $12.0mm $21.6mm
Total $125.7 $6.12
$0.58 per share $1.05 per share
Source: Company management.
1 (1) Updated balance sheet component to reflect thenon-cash effect of the change in DTA in Q4’16.Per-share impact equal to $0.02 increase.
(2) Includes regular $0.15 per share dividend to common shareholders.
Sensitivities – Based on D&P Comments
$9.50
Duff and Phelps may suggest an alternate exit $8.97 methodology for the DCF: Using the Multiple Method of 8.0x 2024E EBITDA, the sensitivity becomes $8.97,
$9.00 implying a 6.6% terminal growth rate $0.48
$0.19 $8.50
$8.50 $0.41
$8.00 $0.13 $7.76
3% Perp.
Growth
$7.50
$7.00
Initial Chronos Perspective No Market Downturn Reduced Compensation Reduced WACC and Cross- Higher Exit effects
Reduced WACC and
Initial Chronos Perspective No Market Downturn Reduced Compensation
Cross-effects (1)
Market Downturn in 2018 Steady market appreciation of Compensation projected at 50% of WACC: 14% Market Recovery in 2019 ~5.8% (blended rate) with initial management fees in all years WACC: 15% investment underperformance Perpetuity Growth: 3%
Management Comp. Assumptions $7.76 per share $0.13 per share $0.41 per share $0.19 per share
2 Source: Company management.
(1) Includes cross-effects of changes in cash flow due to no market downturn and reduced compensation.