EFTA00596787.pdf

DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information COMPARATIVE INCOME STATEMENTS PHAIDON PRESS LIMITED FOP THE YEAFtS ENDED JUNE 30. TOTAL SALES OOST OF SALES I» Ceel %yam«. ContwogancyPeovdian TOTAL OOST OF SALES Piovisions IN«) GROSS IMAM Verlable Indlr441 Casts Grafie Baks and fregni Tned Pony Sakes Cornmar.ced Thed Paly Oismbuida Fan" Csuptfrokedng CHainnon. "Won Total varlable Indom' colts Illsegin Esse Variabk Inbeet Coats SsIss and 4.1~4Ing Onwheads Distrtanod Lol Faas 04441 ~aa Web Sde GOH! UW taaie BoCkeelog UW taaie Publoty Marketing Coda Taal Sales and Marteling 1:racebaan CONTRIBUT1011 Publitalng and Genard Overheads Slag Coda Bociunalon Ultei Piodtits Alles olAtchtecturc Siell Costa Mannemeni Seneca Onze Spaad and Faclrhos Rnancal and Pratostenal Total Publishing and Gdeard Ontbadi Prots Bekte Excheng• Eneange Gen (Loss) IP.oIe, Lossa Deposal cl Mlr. OPERATINO PROFT 0/40140111C ACTIVITIES F145 Coats Rasicutiunn9 Coda TRAOING PROPT 0.05.5) 09% Oma« Bond 19«e« Inwast faxatfabla iniacost Payablo Roanoing Total Olbst Imam (EsPan44) PROPT BEFOftE TAX Proasuon 18511400 fa Tams PC PROFF ROSS) 0:0 f060 C000 C000 8%3 C COO t000 HISTORY 2010 RISTORY RISTORY 2011 2012 HISTORY 2019 HISTORY 2014 PROJECT 2015 PROJECT 2016 PROJECT 2017 19.44 22.577 23.679 20.387 21211 25.094 28.473 31.793 5.429 6.506 7.663 6.949 7.489 8.663 9.543 10.659 1.122 1,245 1.317 976 1212 1.335 1.595 1.785 20 0 0 0 0 1;2 4,571 7,751 8,000 7,925 9901 9 11,: 1 .12"904) 139 0 at) 1.148 604 0 0 0 12.780 14~ 14.770 11.314 11206 15.274 17.564 19.603 77 120 107 120 157 150 170 175 331 378 369 410 515 562 638 657 1.509 1,724 1,537 1.353 1.432 1.863 2.114 2.177 40 540 545 450 455 304 345 355 251 196 297 290 258 375 375 388 635 618 586 610 604 240 152 1S0 3.243 3.575 3.441 3.233 3.421 3.494 3.794 3.906 9,532 11,251 11,329 4.001 $.315 11,710 13,770 15,494 (221 1167) 191) I (931 0 0 0 595 720 502 76 98 0 0 0 212 120 280 361 931 333 463 477 1227 1.966 2.045 1.889 2.325 2.522 2.632 2.711 970 443 397 474 722 912 884 911 676 704 611 534 958 950 950 979 678 3.776 3,74 3.335 4.303 4,757 0.922 5,078 5,*54 7,475 7,565 4.746 4.082 7.023 1,141 10,417 1.550 1.684 1.556 1.652 1.968 2.563 2.609 2,687 0 260 73 112 138 153 179 184 0 0 44 160 338 549 638 657 1.199 1.740 1.446 1.534 2.339 2.982 3.061 9.143 1.268 1.362 1.354 1.264 1.413 1,452 1.471 1.515 SI 1 422 539 638 696 622 623 647 4522 Mg 5,012 5,360 6892 4.121 6.570 8,833 1.332 2.007 2,573 91141 (28101 Hal) 265 1,784 63 52 148) 379 35 0 0 0 0 0 19 1101 0 0 0 0 1,269 1,955 2,602 (9431 1194) (1.211121 284 1.784 947 1,058 1.291 367 0 0 0 0 0 0 241 498 16561 0 0 0 322 867 1,070 0 444/ (1.214) 265 1,7114 (3551 090) in) 0 0 0 0 0 o I 10 0 0 0 0 0 (1161 i%) 1104) (1011 0061 0 0 0 0 2 1 01 (11 0 0 0 (4711 (440) 1131) (102/ (1051 0 0 0 (149) 411 939 (1.950) (1.2941 Pag) 266 1.784 !g ii r .611 ..3/d 0 0 56 1.116045‘ (1,912) (1.204) (1011) 206 375 1,409 EFTA00596787 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information Du, 64 A 2 COMMON-SIZED INCOME STATEMENTS PHAIDON PRESS LIMITED FOR THE YEARS ENDED JUNE 30. TOTAL SALES COST OF SALES LM l Coel Repairs ContoigeneyProvaien TOTAL. COST Of SALES Provisions IN40 GROSS MARGIN Variable InclImel Coats Gratis Bede and Frog(' iRM Parry Saks Com, cas Tnrd Parry Ostneulcn Frei" Opp Witiloling Oi en. Phaidon Total Variable Indirect Costs Maigin Less Variable Indeed Costs Sales and Managing Overheads Cotnavlod Lal Foos (Noll Petal Web 5ile Costs Stall Gads Dedvieting $tall Gods Publicity Ila/kalin° Costs Total Sales and Mastoung Overheads CONTRIBUT411 /obtain° and Omani Orarheads Siall Coals Boolunalona 134020P100.418 alb! of An/Pattie Stall Goals lAantrgemeni Secedes 09X0 Space and Fumes Rnancal and Pratossenal Total Publishing and Canada Overheads Prey( Settee Exchange Erxharge Gan (Lou) (ProICIASS On Deposal of Mtet OPERATING PROFIT ON ONGOING ACTIVITIES FHS Oasts Raaln.Cluang Cosis TRADING PROFIT (LOSS) Den asco(nt Bad added imams Reachable interes Payable Rooneleg Told pax IrKenle @PM* PROFIT BEFOftE TAX Provision (2.20241)for Tapas NET PROFIT (L053) et- 2010 ............ 2011 2012 .-.3.. 2019 ...,... -... 2014 .. -- . 201$ ......--. 2016 ...----. 2017 100.0% 100D% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 27.9% 28.8% 92.4% 34.1% 353% 34.5% 33.5% 33.5% 5.8% 5.5% 5.6% 4.11% 62% 5.3% 5.6% 5.6% 0.1% 0.0% 0.0% 0.0% 0.0% 43.7% 4.8% 4.8% 337% 44.3% 3749E 36.9% 414% 311% 333% 34.3% 0.7% 0.0% 0.3% 5.8% 28% 00% 00% 0.0% 55.8% 65.7% 62.4% 55.5% 55.7% 602% 647% 61.7% 0.4% 0.5% 0.5% 0.6% 0.7% 0.6% 0.8% 013% 1.7% 1.7% 1.6% 2.0% 24% 2.2% 2.2% 2.1% 7.7% 7.6% 45% 6.6% 6.8% 7.4% 7.4% 6.8% 2-3% 2.4% 2.3% 2.2% 21% 1.2% 1.2% 1.1% 12% 0.9% 1.3% 1.4% 1.2% 1.5% 1.3% 1.2% 33% 2.7% 2.5% 3.0% 28% 1.0% 0.5% 0.5% 16.7% 15.8% 14.5% 15.9% 16.1% 139% 132% 12.3% 404% al% 474% 394% 394% 46.9% 46.4% 49.4% al% .07% 4.4% 0.0% 03% 0.01E 0.0% 0.0% 3.1% 3.2% 2.1% OA% 03% 0.0% 0.0% 0.0% 1.2% 0,5% 1.2% 1.0% 1.4% 1.3% 1.8% 1.5% 94% 17% 0.8% 9.3% 11.0% 10.1% 9.2% 8.5% 1.9% 2.0% 1.7% 2.3% 34% 3,8% 9.1% 2.9% 3.5% 34% 2.6% 2.6% 4.59E 3.8% 3.3% 3.1% 182% 167% 15.6% 16.4% 20.3% 19.0% 17.3% 16.0% >3.0% 331% 320% 29.9% 111% 204% 341% 334% 8.0% 7.5% 6.6% 8.1% 92% 10.2% 9.2% 8.5% 0.0% 1.2% 03% 0.5% 0.7% 05% 0.8% 0.8% 004 0.0% 0.2% 0.0% 14% 22% 2.2% 2.1% 8.1% 7.7% 8.1% 7.5% 11.0% 11.9% 10.7% 94% 65% 6.0% 5.7% 5.2% 5.7% SA% 5.2% AA% 2.6% 1.9% 2.3% 3.1% 33% 2.5% 2.2% 2.0% 232% 24.2% 21.2% 243% 324% 33.2% 30.1% 27.1% 6.4% SS% 10.9% 40% -13.2% 42% 0.9% 0.4% 03% 0.2% 0.2% 1.9% 029E 0.0% 0.0% 0.0% 00% 0.0% 0.1% 0.0% 00% 0.0% 0.0% 0.0% 64% 47% 11.0% 44% -13.4% 4.2% 04% 54% 4.9% 4.7% 5.5% III% DO% 0.0% 0.0% 0.0% 0.0% 0.0% 1.0% 2.4% .72% 0.0% 0.0% 0.0% 1.7% 4.0% 44% -9.1% -54% 42% 04% 5.6% 4.2% 0.0% 00% 00% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.6% .0.4% 0.4% .0.5% 0.59E 0.0% 0.0% 0.0% 00% 0.0% 0.0% 0.0% 00% 0.0% 0.0% 0.0% -24% -04% 4.5% .0.5% OA% 0.0% 00% 4.8% UM 4.0% .9.5% 4.1% 4.2% 0.9% 5.6% 0.4% 0.6% 0.7% 02% 00% 0.0% 0.2% 1.2% -12% 1.3% 47% 44% 4.1%, 42% 0.7% 4.4% EFTA00596788 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information DIP L-14 A; INCOME STATEMENT TREND ANALYSIS PHAIDON PRESS LIMITED FOR THE YEARS MOW JUNE 30. TOTAL SALES COST °FULLS WI Coal Floyalbas ConiMpocdPioetilan TOTAL COST OF SALES Piovlslena(Nell GROSS MARGIN Variable Indlrota COMB &dor and FM9ht Traci Party Saps Coni.nsr.d, Mid Parry Oistabuhan Rai" Coop WaslaRing CittriMOn. Phaidon Taal Variable Indirect Costs Margin Less Variable Indeed Coals Sales and Mottling Overheads Ondda.noi Lni Fed: i`n.: Real Web Sie Costs Sian Cools B00kael Mp Stall Coals Putdcry liailuridd Costs ToW SaWs and markohng Overheads CONTRIBUT9011 Publishaw and General Overheads Stall Coals Bangnakna NAM PrOcknIn Alias of Aichleane Slall Calla Manndamenl SannCeel Onto Space and FacHhos Rnancal and Prcloo:caal Total Put4Islung and Canard Overheads Groat Before Eat:hang. Embaege Gan (Loss) (RnalOLOSS On Deposal of Ap.p. OPERATING PROFIT ON ONGOING ACTNITIES 6)45 Coals Rasloslunng Cops TRADING PROFIT 0.0(13) Deep Gscatt Boni POPet4 Inlaroal Accetnada Payatio Roondog Teal peel Ifterne (F4171069/ PROFIT BEFORE TAX Proasion rBanorq for Taus NET PROFIT (LOSS) ..-.-... 2011 .-.-.. 2012 .-. -.. 2019 .....-... 2014 .. 2015 .. 2018 ...---. 2017 SS% 4.9% 43.9% 4.0% 18.3% 13.5% 11.7% 19.8% 17.8% 4.3% 7.5% 15.5% 10.3% 11.7% 11.0% 5.8% 35.9% 344% 1.9% 19.5% 11.9% -100.0% NA WA WA NA .393% 17.6% 15.9% -11.7% 11.1% 11.9% 11.1% iirk -11:00% NA 17104% -47.4% -100.0% NA WA 16.0% 4.4% .234% 631E 29.4% 15.0% lin S5.8% .10.6% 12.1% 90.0% -4.5% 13.3% 2.9% 14.2% 3.4% 11.1% 25.69E 9.1% 13.5% 3.0% 14.2% •10.11% SS% 30.1% 13.5% 3.0% 21.31E 0.9% -174% 1.1% .33.2% 13.5% 2.9% -223% 52.3% 4.4% -114% 45.3% 0.0% 2.9% .27% 4.1% 40.3% 49.7% 3.9% 10.1% 4.7% 4.0% SA% 2.1% 68% 3.0% 110% GT% 417% 34% 405% 144% 14.0% 459.1% 45.5% 101.1% -W00% 100.0% NA NA 21.01E 40.3% 414.9% 23.71E -100.0% NA NA -63.3% 133.3% 28.9% -166% 10.6% 39.0% 3.0% 7.1% 4.8% -7.6% 23.1% 19% 3.9% 3.0% 19.7% -10.4% 19.4% 523% 30.5% 42% 3.1% 4.1% .12.6% 7'67% 0.0% 3.1% 27% 46% .10.9% 29.0% 108% 38% 3.0% 27.7% 1.6% -374% -144% 720% 254% 201% 661E 7.6% 6.2% 15.1% 30.2% IS% 3.0% NIA -71.9% 59.4% 232% 10.9% 17.0% 2.6% NIA NA 263.6% 1112% 62.4% 102% 3.0% 45.9% .16.0% 6.1% 52.5% 27.5% 2.3% 3.0% 7.4% -0.6% 4.6% 11.8% 1.5% 1.3% 3.0% .17.4% 27.7% 18.4% 9.1% 1.0% 3.0% MIK 42% 114% 21.0% 10.7% 3.1% 3.0% 50.7% 212% -1234% -357.7% US% 1204% 573.2% -17.5% .192.3% 559.6% .930% 100.0% NA WA NA NA -152.6% 1004% NA HA NA WI% 332% -1372% -101.4% 54.4% MA% 571.2% 11.7% 22.0% -71.6% .160.0% WA NA WA NA NA 106.6% .4325% 100.0% NA WA 174.1% 10.3% -272.7% 352% 42% 120.4% 573.2% -10.7% 90.3% 103.0% NA NIA NA NA NA 900.0% 400.0% NA eta NA WA 17.2% 2.9% 40% 100.0% NA NA NA -200.0% 00% 1000% NA NA -32% 73.0% 21.1% 441E 1000% NA NA 3752% 128.5% 33.6% .03% 110.4% 573.2% 46.5^. 231.0,. 77.0% 1030% WA NA 5732% 2±[35. 287.4% .773.7% 32.3% 43% 116.1% 573.2% EFTA00596789 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT A-4 ADJUSTED EBITDA ANALYSIS PHAIDON PRESS LIMITED FOR THE YEARS ENDED DECEMBER 31, £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 HISTORY HISTORY HISTORY HISTORY HISTORY PROJECT PROJECT PROJECT 2010 2011 2012 2013 2014 2015 2016 2017 Total Sales 19,484 22.577 23,679 20.387 21,211 25,094 28.473 31,793 Reported Operating Income 322 897 1,070 (1,848) (1,189) (1.298) 265 1,784 Plus: Depreciation 329 351 326 176 196 389 408 400 Reported EBITDA 651 1.248 1,396 (1,672) (993) (909) 673 2,184 Ad ustments: (Profit)/Loss on Disposal of Assets 0 0 19 (10) 0 0 0 0 FHS Costs 947 1.058 1.291 367 0 0 0 0 Restructuring Costs 0 0 241 498 (1.656) 0 0 0 Impairment of Fixed Assets 0 0 0 0 437 0 0 0 Write-down of Swiss Subsidiary 0 0 0 216 0 0 0 0 Total Adjustments 947 1.058 1.551 1.071 (1.219) 0 0 0 Adjusted EBITDA 1,598 2.306 2,947 (601) (2,212) (909) 673 2,184 Note: Revenue Growth N/A 15.9% 4.9% -13.9% 4.0% 18.3% 13.5% 11.7% Reported Operating Margin 1.7% 4.0% 4.5% -9.1% -5.6% -5.2% 0.9% 5.6% Reported EB1TDA Margin 3.3% 5.5% 5.9% -8.2% -4.7% -16% 2.4% 6.9% Adjusted EBITDA Margin 8.2% 10.2% 12.4% -29% -10.4% -16% 2.4% 6.9% EFTA00596790 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT 6-I COMPARATIVE BALANCE SHEETS PHAID•N PRE LIMITED Caish al Bank end le Hand Aotcorlt Aneroid* IDebtOn1) Ineoelog ISlogsl I.Howntel Royally/awes Sundry Dobiors Delayed Tv Cniporallan Tax Pro.Paymonis Rounding Total Currant Assets Oportn; Malone Coll Exchargc AOHsznont AOIR4tax Disoasals 1492tio koala ten PccooulattH Deoreeuton 1444 Reed Anal* AceLenulaled Fret Cash Flow TOTAL ASSETS LIABILMES 8 SHAREHOLDERS' EQUITY Oat* Otoo1r/A Olata Ostot, Acottnts Payse10,018al Royaben Payable TA, and 549491 Soosty Tv Poets Delayed Income MORMIOS Rounding Total Currant LlabdIdos Haopagance Can Paean Bond Shaecitdor Loan Ranting Total Other LiXtalallos TOTAL LIABILITIES Cd1DD JD Swe CH"., Pot Poo $4.,44 Coral Slitra Pr000rt Dola are U ,55 Xcyautt., Total Shmeholclers• E gully TOTAL LIABILITIES & SHARE/401DM' EOUiTY 4'000 4000 0800 V000 2'000 r000 C000 6'000 H1510112 2010 HISTORY 200 HISTORY 2012 HISTORY 2013 HISTORY 2014 PROJECT 2015 PROJECT 2016 PROJECT 2017 191 284 130 129 1.403 1.403 1.403 1.403 2388 5.307 4.288 3.891 4,301 13.400 8.541 6.841 10.420 11.318 11.874 11.320 10803 10.995 10.882 10.70(1 381 397 549 549 515 531 538 550 502 568 479 263 241 256 241 241 106 250 178 251 261 261 261 251 0 0 313 59 51 53 51 51 669 514 477 477 490 495 496 495 0 0 0 0 (11 0 0 0 15.217 18436 18.266 16.749 18.054 20,394 26.410 20.350 3.987 4.245 4498 4,553 4.331 2.264 2.938 3.339 50 22 139) (191 (991 0 0 0 398 313 367 241 726 654 400 400 (1901 Pal) 1163) (5441 (2,6781 0 0 0 4.245 4.498 4.663 4.331 2.284 2.938 3,336 3.738 (3.4041 134330) 13.1383) (3.891/ (1.5801 17599) 12.357) (2.757/ 841 798 770 840 724 969 961 981 (4,201) 13,735) (2.097) 16,058 19,434 19,036 17,389 18,778 17,182 17,656 19,234 2.440 2.531 2,074 1.923 0 0 0 0 677 1.027 537 187 355 348 388 388 2 635 4.296 4.125 2.850 3.818 3.811 4.072 4.200 276 489 383 328 541 491 567 550 83 374 157 157 166 151 151 151 118 344 0 0 0 0 0 0 207 893 1.067 549 699 557 567 500 1.031 493 577 540 1.177 996 996 1.000 0 9 0 0 (21 0 0 0 7.527 10,451 8.920 5.732 6.752 6.412 6,719 5.887 2.005 1.843 1.911 1.974 1.765 1.807 1.765 1.755 3.599 3.992 0 0 0 0 0 0 0 0 0 0 2.529 2529 zus 2.529 0 0 0 (II (II 0 0 0 5,604 5855 1.911 1.973 4,293 4.336 4,294 4,294 13.131 18308 10831 8,705 11.045 10.748 11.013 11.191 53 53 60 80 60 60 80 80 0 0 0 2.111 0 0 0 0 0 0 4.000 4.000 6.110 6.110 8.110 8.110 2.874 3075 4.145 2.513 1.563 284 473 1.883 2.927 3.128 0206 9.884 7.733 8.434 6.843 9.053 16,058 19,434 19.036 17.389 18,778 17.162 17.656 19,234 EFTA00596791 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHISIT B 2 COMMON•SIZ_ED BALANCE SHEETS -HAI • •/.1 LI ITED ASSET5 Cash al Bookend h Hand AccioNe ReoeHet4e t0e0eers) Invenloiy 1310041 Unowned Rangy A0yancee Sundry Dobiors WPM," Tax Comoraisan Tax PmA.rym•nms Rooming Total Current b1001 Opanng Nsionc Cost Exxnango AtRuurtnet 4dd%0ra. 011Posals langOla Assets Less Accumulated Deprotiaten NH Med Assets Acoanuleeed Free Ont. Flow TOTAL ASSETS & SHAREHOLDERS EQUITY 8461,Ove•ors1t Conte CH46, s Acccorls Paret4e tOtHROs) %Ribes Pay-HoLo Tax aM Socal SoRst, Tax Pa)atIo Wetted Hoorn* Accruat ROuriOn, total 0.1110111Llabillbei HOG Marco Map Discount Bead SharehOldat Leal Rcurcan; Total Other 1.10bihtieS TOTAL LIABILRES Cale:Ito Sears Capta. Pro.P.0 Shwa C4PIal Short Prerman Room* Prof.' and Loos Atcowes Tow 34.orenolelow foils TOTAL. mans a SHAREHOLDERS' EQUITY HISTORY 2010 HISTORY 2011 SSTORY 2017 HISTORY 2013 HISTORY 2014 PROJECT 2015 PROJECT 3016 PROJECT 2017 12% I5, . 0.7% 0.7% 75% 8.2% 7.9% 7.3% 185% 27.3% 22.4% 212% 229% 37.2% 37.0% 345% 84.9% 512% 62.4% 85.1% 574% 04.0% 61.6% 55.7% 22% 2.0% 2.9% 3.2% 27% 11% 3.0% 2.9% 3.1% 2.9% 2.5% 1.5% 1.3% 15% 1.4% 1.3% 0.7% 1.3% 0.9% 1.5% 14% 13% 1.5% IA% 0.0% 0.0% 1.6% 0.3% 0.3% 0.3% 0.3% 0.3% 4.2% 2.6% 2.5% 2.7% 22% 2.9% 22% 22% 0.0% 0.0% 0.0% 0.0% 00% 0.0% 0.0% 0.0% 942% 95.9% 96.0% 96.3% 941% 110.7% 115.6% 105.0% 912% 21.8% 23.6% 26.0% 23.1% 113% 11.6% 174% 0.3% 0.1% 4.2% 0.1% 45% 0.0% 0.0% 0.0% 25% 1.6% 1.9% 1.4% 3.9% 32% 2.3% 2.1% .1.2% A.5% 4.9% .11% 0.0% 0.0% 0.0% 264% 211% 7.4.4% 24.9% 122% 17.1% 1119% 194% 41.2% .190% 40.4% -21.2% 83% .113% .131% .143% 52% 4.1% 4.0% 3.7% 3.9% 5.8% 58% 5.1% 445% .212% .10.1% 100.011 100.0% 100.0% 100.0% 100.01E 100.0% 100.0% 100.0% 152% 110% 10.9% 11.1% 0.0% 0.0% 0.0% 0.0% 42% 5.3% 2.8% 1.1% 1.9% 22% 2.2% 2.0% 16.4% 221% 21.7% 16.4% 203% 223% 23.1% 21.0% 1.7% 25% 2.0% 1.9% 29% 2.9% 3.2% 2.9% 05% 1.9% 0.0% 0.9% 0.9% 0.9% 0.9% 0.0% 0.7% 1.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.3% 4.6% 52% 3.7% 17% 32% 3.2% 3.1% 62% 2.5% 3.0% 3.7% 62% 5.0% 5.6% 52% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% OA% 469% 53.0% 46.9% 30.7% 36.0% 37.3% 30.1% 35.8% 0 125% 9.6% 10.0% 114% 9.4% 10.5% 10.0% 92% 224% 20.5% 0.0% OD% 0.0% 0.0% 0.0% OD% 0.0% 0.0% 0.0% OD% 133% 14.7% 11.3% 13.1% 0.0% 0.0% 0.0% OA% 0.0% 0.0% 0.0% OR% 349% 30.1% 10.0% 112% 22-9% 25.2% 24.3% 222% 0 818% 819% 504% 50.1% 504% 626% 02.4% 50.1% 03% 03% 0.3% 03% 03% 0.3% 0.3% 03% 00% 0.0% 0.0% 12.1% 00% 0.0% 0.0% 0.0% 0.0% 00% 21.0% 23.0% 325% 35.6% 34.6% 31.0% 174% 15.8% 21.0% 14.5% 83% 1.5% 2.7% 9.8% 182% 16.1% 43.1% 49.9% 412% 37.4% 37.6% 41.9% 100.0% 1000% 100.0% 100.0% 1004% 100.0% 100.0% 100.0% EFTA00596792 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT C COMPARATIVE CASH FLOW STATEMENTS PHAID N E LI EVE CASH FLOW FROM OPERAING ACT/Yr/1ES °al.-a/Ha Peon: AdµHmcH110 recorcno Not In:wooto Nei Cash PronSof Iran Operaeng AcitApos Dec(ociailon M Tangibb Eked Assets Impairment of lanebb Food Assels Picas 0.0201 on Sale ol Assels 690110 age Oillateces Oporalirq ProlnYananoo Ow) Doc_ p Iweniory (Sloes/ Om /Dec 0 Dettors Inc (040)41AcCOLete Peyote ce.e.do., NH Cosh Provided By (Used In) °doming Ad/Hiles CASH PLOW FROLIINVESTINO ACTIVIDES Purchased Fixed ASSN! Sale 01 Fited AsSets Interest ReCerced Cash DiSpOrie0 wth Subsoisty NH Cosh P/ovkled By (Used In) Investing AchHINS CASH FLOW FROM FINANCING ACTIVITIES Iniereol Paid Tax Paid Shareholder Loan Pie Paa Peoktonos smuts ntapaymom oi coop Pscouni Eked Isstoot otar44 Share. ISSo)Ot PrOlOrerCO Snare. I t Cash Provided By (Used In) Financing Aolvenlos NET INCREASE (DECREASE) IN CASH Free cash 4134 13sonnsti Wen Encr0 Coon V000 CV00 V000 4000 0904 0000 4000 V000 HISTORY 2010 HISTORY 2011 HISTORY 2012 HISTORY 2013 HISTORY 2014 PROJECT 2015 PROJECT 2016 PROJECT 2017 322 897 1.070 0.8481 (1.1891 11.298) 209 1.409 329 351 326 176 196 389 408 400 0 0 0 0 437 0 0 0 17 40 19 (101 0 0 0 0 raj (120) 48 339 152 42 142) 0 0 3 0 215 0 0 0 0 67 (596) 1558) 554 517 (192) 113 174 710 (2.203) 787 797 (2851 12.140) 1129) (1141 40 2.336 160 (1.916) ISIS C140) 307 160 1 467 410 1.631 (1.7531 1.441 0.647) 003 2.037 (ooto (312) 1387) (244) (726) (654) 1400) (400) 16 0 17 10 0 0 0 0 0 0 10 I 2 0 0 0 0 0 0 (1131 0 0 0 0 .3021 (312) 1340) (346) (7241 (664) 400) (400) (1161 (96) 1104) (10 / (491 (225) 1361) 240 0 (5001 MOO) 2329 0 0 2.11 0 0 14.000) 0 0 7 0 0 4.000 0 (8411 (96) 1988) 2.24 2480 234 2 303 IS 3.197 (4.201) 466 1.63 4.201 1466) (1.63 .2 483) i2.24 t2.247) 944 (;I.7941 1.403 1.403 1.40 .2 2491 R.24n III ii1:7141) 1,403 1.403 1.40 EFTA00596793 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT 0 SELECTED FINANCIAL RATIOS PHAID • N PR FOR THE YEARS ENDED JUNE 30. LANINef Reilp Cineel Ratio Ouel. Rape Gary Recopabio Days' inp:Nory HISTORY 2010 HISTORY 2011 -STORY 2012 HISTORY 2013 HISTORY 2014 PROJECT 2015 PROJECT 2016 PROJECT 2017 20 0.4 56 567 05 86 613 2.0 0.5 66 486 2.5 0.6 66 455 27 0.8 74 419 3.2 1.2 93 409 3.0 1.2 84 364 30 1.2 76 321 Op/awing Cycle 623 619 552 521 493 502 148 397 Days' Payable 195 274 207 135 183 175 168 154 Waking Capital 7.690 8.185 9.345 10.017 11.302 13.962 13.691 13.463 Sala-Waling Cappai 29 2.6 2.5 2.0 1.9 in 2.1 2.4 Canny Wan EBITANeest MA 5.3 10.0 (16.3) (11A) WA WA WA EBEIT2Cunte Pali:0. LTD 0.1 0.3 0.6 *9) (0.41 (0.4) 0.3 0.9 Weeny RAW* Net Fled AsneevlenONe NM MAN 0.3 02 0.1 0.1 0.1 02 roue usbltliee(De01K2eM18e Net Worth 4.5 5.2 1.3 1.0 1.4 1.7 1.7 1.4 Promebillte RNIN. % Pr01e Be10T Teiett210.901e Nel Wou -5.1% 13.1% 11.4% -22.5% -16. -20.2% 4.0% 22.2% %ROM Below Te 'ARON Assets 49% 2.1% 4.9% -11.2% 1.5% 9.3% 011ie Reda. SeiesNot FPO Assets 222 26.3 90.6 31.9 292 25.4 29.0 32.4 Saloslolal Assets 12 1.2 1.2 1.2 1.1 1.5 1.6 1.7 %Doprecialwa B AmorenicoSalos 1.7% 1.6% 1.4% 0.9% 0. 1.61E 1.4% 1.3% EFTA00596794 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT E PERFORMANCE VS. RMA PHAIDON PRESS LIMITED NAICS 51 11 30: BOOK PUBLISHERS HISTORY 2013 RMA SALES a $25 MM (1) 4312-33313 ISSTORY 2014 RMA HISTORY SALES A825 MM (1) 2013 4.112-31313 HISTORY 2011 ASSETS: RATOS: Cash 8 EsAmbrus 0.7% 16.0% 7.5% Current Raba 2.5 2.2 27 Trade Ree.. Nel 21.2% 20.1% 22.9% °rick Rabo 0.8 1.3 0.8 Invenisy 65.1% 15.8% 57.5% All Other Current Assets 9.3% 6.5% 82% Days' Receivable 66 70 74 Toial Current Assets 96.3% 58.5% 96.1% Days' Inventory 455 111 419 Fixed Assets. Net 3.7% 8.9% 3.9% °pending Cyde 521 181 433 Irtangibles 0.0% 19.2% 0.0% All ether NonCurrent 0.0% 13.4% 0.0% Days' Payable 135 47 183 Torsi Asses 1000% 100.0% 100.0% Sale:Monona Caglal 2.0 3.9 IS LIAFULMES: ELM 'serest (18.3) 5.0 (11.4) Notes Payed° 11.1% 3.1% 0.0% Current Maiurily - LTD LI% 3.6% 1.9% Nel Pored Asselsaangtle Wel Worb 0.1 0.3 0.1 Trade Payables 16.4% 8.9% 20.3% Tolal Liabilties(DetbSangible Net Worth 1.0 1.2 IA Income Taxes Payable 0.9% 0.6% 0.9% NI Geer Current Liabilities 9.3% 17.8% 12.9% % Prof,' Galore Tax/Tangble Net Werth -22.5% 11.7% -16.7% Tols Current Baobab.% 383% 34.0% 36.0% % Prold Galore Taxidal Assets -112% 5.4% -6.9% LTD 11.4% 13.6% 22.9% Deterred Taxes 0.0% 1.2% 0.0% Nel Sales et Feed Assets 31.9 20.3 293 NI Geer Non-Current 0.0% 4.0% 0.0% Nel Salesifotal Assets 1.2 1.1 1.1 Net Worlh 49.9% 47.2% 412% %(Depr. n Amort.I.Sales 0.9% 1.7% 0.9% Total Labilhes 8 Net Wath 100.0% 100.0% 100.0% INCOME: Sample Sue 1 20 1 Net Sales 100.0% 100.0% 100.0% Average Sales (000s) 531.015 (2) $84.879 $36284 42) Gross Mold 55.5% 52.7% 55.7% Average Assets (000s) $26.454 (2) 562.715 132122 42) Cperaing Expenses 60.3% 47.8% 69.1% Operaing Prolt -4.8% 4.9% -13.4% NI Offier Expenses. Net -47% -0.6% 7.3% Prole Galore Taxes 96% 4.3% 6.1% (I) Based on an exchange rate of $13213 per C for 2013 and exchange ra:eol SI .7106 per C. sample of companies Web Sales s. 525mm was considered most appropriate. Exchange rate provided by Boomberg. (2) Sales and Assets for Phaidon Press United are !Used on an exchange rare or 31.5213 per C lor 2013 and exchange rare of 31.7106 per C lor 2014. EFTA00596795 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information UIT DISCOUNTED CASH FLOW ANALYSIS PHAIDON PRESS LIMITED Seiee Cog ol Sats Gross PEON OPerang Espemos lexCludig Depiecelon end AmenizelSool Depiecknon Expense Total Operating Expenses Net Opera010 Income Other beam* (Expenses, Debl.Free Pie-Tax Income OI S848 Tax 121 Dobl.Free Net Income Depiecwion end Amorcaaeon Capital Expendeures Charge in Waiting Capital 4.5o4140 Free Can) Row Hanson Value (Gordon Grown. Model) Pala) Paned (PrO NMI Pena] Present Value Factor Present Vabe Sum of Present Values Renton Value Aggregate Yoh» of Total Invested Capital from Operations Less Imeresp Boating Oeb on Valait)On Da» Aggregate Marketable Canto:Moe Inane,' Value of Equity from Operations LeSS CiR)urc or Lack 64 Marsetat,let Aggregate rar Market Vela. C011,011r9 Interest 83:e Aggregate rar Market Value. Controlling Interest B354. minded 21% 10.9% t000 2000 CX100 C000 HISTORY 2014 PROJECT 2015 PROJECT 2016 PROJECT 2017 HORIZON 21211 25.094 28.473 31.793 31,793 9.405 9820 10,909 12.190 11.806 15274 17.564 19.603 14.455 16.183 16.891 17.419 196 389 408 400 14.651 16.572 17,299 17.819 (2.845) 11.2981 265 1.784 1866 0 0 0 (1.189) 11.2981 265 1.784 3.179 -56% -52% 0.5% 5.6% 100% 0 0 56 375 666 (1.189) 112981 209 1.4(19 2.511 Fair Markel Value (C). Controlling Intineel Basis. rounded Fait Markel Value CM, Controlling 'Memel Basis. rounded (S) 369 406 400 400 (6541 4400) (400) 4400) 12.6381 249 228 4360) (3) -84201 8416 81,637 2.151 828445 1.00 1.00 1.00 1.00 200 3.00 090t7 0.6129 07330 0.7330 -One 079 £1.200 t20,556 -C2209 20.556 C18,347 -2529 £15818 5% .791 C15.027 115.000 C15.000 326.000 weienseci Average COM of Ceoleål (from oxh1011 H-t) Ecluely 1264% 75% 9.48% CM« 5.53% 25% 1.38% WACC. rounded 10.90% Lort Rein Orow61 Rate 3.00% Ill Management paletas that *gang pretax hemmed approxmale 10% of Sakes. 121 According le Managemenl. the lax rate expected dJni19 Inc propoion and honeen penods a 21%. 131 Change n Workhg CaciqJ for HorOcw pe01.0 estmatecl n ExhIlek G. See Exfibk G10( lure», Getart 141 Horace) value CalWeefd trang Me Gordon Grown Mo0el HVO - ICI • 11 • 9111(r • 911 151 Based on an exchange rate of 51.7106 per C. Exchange rate provided by Bloomberg. EFTA00596796 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information T WORKING CAPITAL CALCULATOR PHAIDON PRESS LIMITED C000 tODO x000 r000 2014 2015 2016 2017 YEAR I YEAR 2 YEAR 3 HORIZON BASE I -,Horizon SALES 1 REVENUE 21.211 25.094 28.473 31.793 GrovAh 18.3% 13.5% tt.7%. Uses Of Cash RECEIVABLES 4.301 6.400 6.541 6.641 INVENTORY 10.803 10.995 10.882 10.708 OTHER CURRENT ASSETS 1.548 1.596 1.584 1.598 Sources Of Cash PAYABLES 3.816 3.831 4.072 4.203 OTHER CURRENT LIABILITIES 2.583 2.195 2.261 2.301 Total Warhol° Capital Required 10.253 12.965 12.674 12.446 Changes in Working Capital 2.712) 291 226 WORKING CAPITAL REOUMEMENTS RELATIVE TO SALES FLAT AVERAGE WTD 123 AVERAGE SELECTED LEVEL Uses O1 Cash (negative cash flows) DAYS RECEIVABLE (relative to 365 Days of Sales) (93) (84) (76) (84.4) (81.6) (75.0) DAYS INVENTORY (relative to 365 Days of Sales) (160) (139) (123) (140.8) (134.6) (125.0) DAYS OTHER ASSETS (relative to 365 Days of Sales) (23) (20) (18) (20.6) (19.8) (18.0) Sources Of Cash (positive cash flows) DAYS PAYABLE (relative to 365 Days of Sales) 56 52 48 52.0 50.8 50.0 DAYS OTHER LIABILITIES (relative to 365 Days of Sales) 32 29 26 29.1 28.2 26.0 TOTAL DAYS WORKING CAPITAL REQUIRED (189) (162) (143) (164.6) (157.0) (142.0) IMPLIED PRIOR YEAR SELECTED BASE HORIZON (BASE) SALES VOLUME HORIZON SALES GROWTH ASSUMPTION £31,793 3.00%I PRIOR YEAR SALES IMPLIED FROM GROWTH TO BASE YEAR £30.867 TOTAL WORKING CAPITAL REQUIRED (Days of Sales) (142.0) (142.0) REQUIRED WORKING CAPITAL -£12.009 -£12.369 CAPITAL nit-multi le -£360 NORMALIZED HORIZON WORKING INVESTMENT CHANGES WORKING CAPITAL INVESTMENT CHARGE ON SALES AS %OF SALES -1.13% EFTA00596797 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT H-1 WEIGHTED AVERAGE COST OF CAPITAL PHAIDON PRESS LIMITED AS OF JUNE 30, 2014 Derivation of Equity Rate of Return: Cost of Equity CAPM Approach 12.64% Capital Source Cost of Capital Structure Weighting Weighted Cost Equity Debt Selected Pre-Tax Cost Less: Tax Benefit @ After-Tax Cost Calculated Weighted Average Cost of Capital. rounded 21% 12.64% 7.00% -1.47% 75% 25% 9.48% 1.38% 5.53% 10.90% Selected Weighted Average Cost of Capital (WACC) 10.90% EFTA00596798 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT II-2 WEIGHTED AVERAGE COST OF CAPITAL PHAIDON PRESS LIMITED AS OF JUNE 30. 2014 DERIVATION OF BETA Company Name Ticker Recoiled Beta' Value' Share Price All Financial Data in Matrons Debi Equiy Debt I Capial Unleveled Beta Shares Outstanding MV of Equity Total Debt Total Tax Preferred MVIC Rate Bloomsbury Putushing plc LSE.BMY 0.53 0.00 C1.80 72.946 £131.30 £0.00 £0.03 £131.30 21.0% 0.0% 0.0% 0.53 Baste. LCObe AG OBBST 0.58 0.12 €8.17 13.303 6108.70 E30.04 60.00 6138.74 222% 27.6% 21.6% 0.48 Quarto Group. Inc. LSEO4IT 0.38 0.00 C1.66 19.697 £32.70 £94.15 £0.03 £12684 23.9% 287.9% 742% 0.12 Average 0.50 0.05 22.4% 105.2% 32.0% 0.38 Median 0.53 0.04 222% 27.6% 21.6% 0.48 Indstry Beta 4 5 0.86 Selected Unlevered Bela • O60 Sources Unlevered Beta Calculation: Relented Bela Calculation: Beta and R2 value obtained from Bloomberg. Bu - B / (1 • ((1 -IRD/E))) 8 8110.01.1/0EID 2Closing stook price as of the valuation dale. Financial data obtained heal Capital 10. Using each lirm's tax rate and debt 2 equity ratio. the reponed Bu 0.60 4 Obtained from wetsile of Dr. Asvmth Damcdaran betas are unlevered and then re4evered based on the DE 333% s Ureevered beta corrected for cash. calculation to Pre right. Tax Rate 21.0% B 0.76 EFTA00596799 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT H-3 WEIGHTED AVERAGE COST OF CAPITAL PHAIDON PRESS LIMITED AS OF JUNE 30, 2014 DERIVATION OF REQUIRED EQUITY RATE OF RETURN CAPITAL ASSET PRICING MODEL Capital Asset Pricing Model (CAPM): RE = RE+ (B x ( RM - RE )) + Rsm . Rcs Where: RE = Required Equity Rate of Return RF = Return on a Risk-free Asset BRL = Beta Relevered - a measure of the systematic risk of the firm compared to the risk of an investment in a fully diversified stock market portfolio. Sample Beta (6L ) relevered for assumed capital structure RM - RF = The market risk premium defined as the expected return required for investing in a fully diversified portfolio (Rm less the risk-free rate (RF) Rsrii = Size Premium Rcs = Company-specific Risk Premium Source: Variable Value CAPM Calculation: 20-year U.S. Treasury Bond Yield Equity Risk Premium (Ibbotson) RF RM - RF = 3.08% 6.00% RE = RE + ( B x(RM-RF))+ Rsu + Rcs Beta Relevered, See Exhibit H-2 BRL = 0.76 RE = 3.08% + ( 0.76 x 6.00% ) + 5.00% + 0.00% See Exhibit H-4 for Details RSM = 5.00% Company-specific Risk Premium Rcs = 0.00% Implied Equity Rate of Return (RE) 12.64% EFTA00596800 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT H-4 WEIGHTED AVERAGE COST OF CAPITAL PHAIDON PRESS LIMITED AS OF JUNE 30, 2014 DERIVATION OF EQUITY RATE OF RETURN ADJUSTMENT TO CAPM APPROACH DUE TO SIZE Size Measure Values ($) (1) Indicated Premium (2) MV of Equity (in millions) 25.66 9.10% BV of Equity (in millions) 13.23 7.20% 5-Year Average Net Income (in millions) N/A N/A MVIC (in millions) 31.38 8.80% Total Assets (in millions) 32.12 7.70% 5-Year Average EBITDA (in millions) 1,381.48 2.90% Sales (in millions) 36.28 7.00% Number of Employees 128 7.00% Average 7.10% Selected Small Size Premium (Duff & Phelps) 7.10% Small Size Premium per Ibbotson 4.23% Selected Size Premium Adjustment 5.00% (1) Except for Number of Employees, based on an exchange rate of $1.7106 per £. Exchange rate provided by Bloomberg. (2) Indicated premium above the large cap equity rate (i.e., premium above [rf+Beta"(rm-rf)]). EFTA00596801 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT H-5 CREDIT ANALYSIS PHAIDON PRESS LIMITED AS OF JUNE 30, 2014 Financial Measure' Subject Co. Indicated Financials Rating EBIT interest coverage (x) EBITDA interest coverage (x) Return on capital (%) Total debt/(total debt + equity) (%) (23.15) CCC (21.27) CCC (22.68) CCC 27.16 AA Selected Credit Rating for Subject Company CCC Market Yield by Credit Rating (6/30/14) Average Median Yield Yield AAA AA A BBB BB B CCC CC 2.60% 2.41% 2.73% 3.31% 4.34% 4.48% 5.45% 5.23% 8.17% 6.94% 22.38% 13.65% 2.36% 2.28% 2.73% 3.40% EFTA00596802 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXISFI-1 COMPANY PROFILE Bloomsbury Publishing plc (LSE:BMY) Bloomsbury Publishing Pk, an independent publishing company. publishes books and other media for general readers. chikken. students, researchers. and professionals worldwide. It operates in four divisions: Muh. Children's & Educational. Academic & Professional. and Information. The Adult division publishes books in English for readers of fiction. bcgraphy, and general references, as well as special interests. such as sport, food. yachting. and ornithology. The Chikken's & Educational division offers childrenS activity books that focuses on puzzles. coloring, games, and illustrated stones: picture books and fiction products in prim and e—formats: educational publishing products. including pint and digital learning materials for teachers: and digital and subscription products. This division sells and markets ns products for trade, education. and mass market sectors. The Academic & Professional division publishes study material for students of humanities. scooter sciences. and applied visual arts pimarty in bacidist. print. and e.book formats: and provides technical reference resources for qualified and trainee solicitors. barristers. accountants. and tax practitioners. as well as digital subscription services. The Information division publishes books based on business. management. dictionaries, and references. as well as titles from the national archives: and offers management services to the Qatar foundation, as well as consultancy services to non-publishers. This division also provides information databases for electronic and print publications: and develops digital knowledge hits. The company is also engaged in the sale of publishing and distribution rights. including film. paperback. electronic. overseas pubishing rights. and sponsorship. Bloomsbury Publishing Plc was founded in 1986 and is headquartered n London. the United Kingdom. MARKET VALUATION Valuation Date: Latest Fiscal Year: 11M as of: (In Millions. Except per Share Data) Current Price (6130/14) Shares Outstanding Market Capitalization Plus: Total Debt Plus: Preferred Stock Plus: Minority Interest (Liab.) Less: Cash & ST Investments Market Value of Invested Capital 620.2014 2,28.2014 2,28.'2014 • 1.80 I2 ' 6 £ 131.30 £ £ £ • 131.30 PRICE., VOLUME GRAPH Stock Price 7.09 1009 1110 410 710 1010 1:11 411 7:11 10'11 112 4,12 712 1012 1,13 413 V13 1013 114 414 SELECTED FINANCIAL DATA (Data in Milions) ) Ina Item Data. Net Sales %V o-Y Growth Adjusted Pretax Income Adjusted Net Income Adjusted ESIT Adjusted ESfTDA Working Capital Capital Expenditures Margin Analysis: Pre-tax Margin Net Income Margin EBIT Margin EBITDA Margin Working Capital / Sales CapEx/ Sales Fiscal Year Ending February 28. 2011 2012 2013 £ 79.84 C 97.40 £ 98.48 220% II% £ 6.11 £ 10.51 £ 10.18 £ 3.67 £ 6.31 £ 6.11 £ 5.79 £ 10.38 £ 10.10 £ 7.26 £ 12.15 £ 12.27 £ 74.79 £ 55.80 £ 60.97 £ 0.48 £ 2.55 £ 0.53 7.65% 10.79% 10.34% 4.59% 6.47% 6.20% 7.25% 10.65% 10.26% 9.10% 12.48% 12.46% 93.68% 57.29% 61.91% 0.60% 2.62% 0.53% TIM 02/28/14 £ 109.50 £ 1.04 £ 6.63 £ 11.07 £ 13.40 £ 54.26 £ 0.84 10.09% 6.05% 10.11% 12.24% 49.56% 0.77% Fiscal Year Ending February 28. 2015F 2016F 2017F £ 109.62 711% £ 10.04 £ 15.20 9.16% 13.87% 2 112.87 Sex £ 10.45 £ 15.37 9.26% 13.62% £ 118.68 5.7%. £ 11.31 £ 15.35 9.53% 12.94% Source: • Capital 10. EFTA00596803 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EX14807 COMPANY PROFILE Baste' Liibbe AG (DB:BST) Bastei L0bbe AG pubeshes and seas books in Germany. It operates through three segments: Books. Non-Books, and Novel Booklets and Puzzle Magazines. The Books segment offers hardbacks. paperbacks. and pocket books: and stucdio books. eBooks, and other digital products in the genres of fiction and popular science. It sells its products through traditional retail outlets, railway station outlets, and airport bookshops. The Non-Books segment provides merchandise. unmanly gih items under the Rader Label through traditional retail outlets. railway station outlets. airpon bookshops. fumiture shops. stationery outlets. gift shops. etc. The Novel Booklets and Puzzle Magazines segment offers women's literature. suspense novels. and puzzle magazines through wholesalers. Baste' L0bbe AG is based in Cologne. Germany. MARKET VALUATION Valuation Date: Latest Fiscal Year: TTM as of: (In Millions. Except per Share Data) Current Price (6130/14) Shares Outstanding Market Capitalization Plus: Total Debt Plus: Preferred Stock Plus: Minority Interest (Liab.) Less: Cash & ST Investments Market Value of Invested Capital 6:302014 &3112012 12/31+2013 • 8.17 13.300 • 108.70 • 30.04 • 138.74 SELECTED FINANCIAL DATA (Data in Mons) Line Item Data: Nei Sales Y &Ow, Adjusted Pre-tax Income Adjusted Net Income Adjusted EBIT Adjusted EBITDA Working Capital Capital Expenditures Margin Analysis: Pre-tax Matson Nei Income Margin EBIT Margin EBITDA Margin Working Capital + Sales CapEx/ Sales Source: • Capital 10. Stock Price 'WOO 51000 Si® $600 $1.00 $200 0.0 on oa 9000 00 a a 7.09 7109 609 11/09 9439 909 100391909 11109 1109 11/09 190912/09 180 1/10 2/10 2/10 3/10 1/10 4110 4/10 Racal Year Ending March 31 TTM Fiscal Year Ending March 31. 2012 2013 12/31/13 20I5F 2016F 2017F 87.44 98.33 E 107.53 121.77 130.21 133.00 723% 23,6% 6.9% 2.1% 8.15 9.63 12.54 4.89 5.78 7.52 9.18 12.33 11.70 9.44 11.62 14.52 10.47 1327 16.22 16.61 20.53 20.50 42.00 E 1220 E 34.52 0.91 1.02 1.59 9.32% 9.79% 11.66% 5.59% 5.87% 7.00% 7.54% 9.47% 8.80% 10.80% 1122% 13.50% 11.97% 13.50% 15.09% 13.64% 15.77% 15.41% 48.03% 12.40% 32.10% 1.04% 1.04% 1.48% EFTA00596804 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information Exlaafr is COMPANY PROFILE Quarto Group, Inc. (LSE:ORT) The Guano Group W. publishes illustrated non-fiction books for adults and children worldwide. The company operates through Guano Publishing Group USA. Guano Publishing Group UK. Guano International Co- Editions Group, and Books & Gifts Direct ANZ segments. k creates and publishes books in VE1192014 categories. including practical art and crafts. graphic ans. lifestyle. reference. food and drink. gardening. popular culture. home improvement, licensed chidren's books. transport. sports. military history. Americana. health and body. pets and music. home decorating. health and beauty. and outdoor activities. The company is also involved display marketing business: books selling in the workplace: and print broking business. The Guano Group Inc. was founded in 1976 and is headquartered in London. the United Kingdom. MARKET VALUATION Valuation Date: Latest Fiscal Year: TIM as of: (In Millions. Except per Share Data) Current Price (6130/14) Shares Outstanding Market Capitalization Plus: Total Debt Plus: Preferred Stock Plus: Minority Interest (Liab.) Less: Cash & ST Investments Market Value of Invested Capital 630:2014 12/31/2013 al U2014 C 1.66 19.697 £ 32.70 £ 94.15 £ 126.84 Stock Price 3000 209 10039 1110 4410 7/10 10'10 1)11 311 7)11 10'11 1, 12 432 71 13 713 0113 314 4)W Volume (In Millions) SELECTED FINANCIAL DATA (Data in Mona) Line Item Data: Net Sales 22Y 00221.11 Adjusted Pre-tax Income Adjusted Net Income Adjusted EMT Adjusted EBITDA Working Capital Capital Expenditures Margin Analysis: Pre-tax Margin Net Income Margin EBIT Margin EBITDA Margin Working Capital / Sales CapEx/ Sales Fiscal Year Ending December 31. 2011 2012 2013 £ 186.13 C 180.87 £ 176.32 55% 381. .25% £ 10.09 £ 10.28 £ 10.39 £ 6.05 £ 6.17 £ 6.24 £ 14.72 £ 15.44 £ 10.84 £ 17.56 £ 17.36 £ 16.64 £ 33.08 £ 93.60 £ 84.84 £ 1.69 £ 1.36 £ 2.00 5.42% 5.68% 5.89% 3.25% 3.41% 3.54% 7.91% 8.54% 8.41% 9.44% 9.60% 9.44% 17.77% 51.75% 48.12% 0.91% 0.75% 1.13% TT& 03131/14 £ 173.00 £ 9.97 £ 5.98 £ 14.09 £ 15.77 £ 9.00 -£ 0.16 5.76% 3.46% 8.14% 9.11% 5.20% -0.09% Fiscal Year Ending December 31. 2015F 109.75 37.8% 6.23 £ 17.32 5.67% 15.78% Source: • Capital 10. EFTA00596805 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT I-4 ANALYSIS OF SELECTED GUIDELINE COMPANIES BY REVENUE PHAIDON PRESS LIMITED AS OF JUNE 30. 2014 TTM CAGR (I) Company 2010 2011 2012 2013 6:3012014 2013-TTM 2012-TTM 2010-TTM (Data in Millions) Bloomsbury Publishing plc £90.660 £79.838 £97.399 £98.479 £109.496 11.2% 6.0% 4.8% Bastei Lubbe AG NIA NIA C 87.438 C 98.330 C 107.534 9.4% 10.9% N/A Quarto Group. Inc. £176.409 £186.126 £180.873 £176.318 £173.004 -1.9% -2.2% -0.5% Maximum 11.2% 10.9% 4.8% Minimum -1.9% -2.2% -0.5% Average 6.2% 4.9% 2.2% Median 9.4% 6.0% 2.2% Phaldon Press Limited £19.484 £22.577 f23.679 f20.387 £21.211 4.0% -5.4% 2.1% (1) CAGR = compound annual growth rate. EFTA00596806 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT 1.5 ANALYSIS OF SELECTED GUIDELINE COMPANIES BY BOOK VALUE OF COMMON EQUITY (1) PHAIDON PRESS LIMITED AS OF JUNE 30. 2014 TIM CAGR (2) Company 2010 2011 2012 2013 6)30)2014 2013-TIM 2012-TTM 2010-TTM (Data in Millions) Bloomsbury Publishing plc £113.985 £111.844 £109.180 £114.808 £1 16.036 1.1% 3.1% 0.4% Baste) Lubbe AG WA WA E 16.516 E 26.829 E 52.064 94.1% 77.5% WA Quarto Group. Inc. £34.340 £39.833 £44.183 £45.137 £46.861 3.8% 3.0% 8.1% Maximum 94.06% 77.55% 8.08% Minimum 1.07% 2.99% 0.45% Average 32.98% 27.88% 4.26% Median 3.82% 3.09% 4.26% Phaldon Press Limited £2.927 £3.128 £8.205 £8.684 £7.733 -11.0% -2.9% 27.5% (1) Common Equity is defined as the book value of equity less preferred stock. (2) CAGR = compound annual growth rate. EFTA00596807 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT 14 FINANCIAL STATEMENT ANALYSIS: LIQUIDITY AND COVERAGE RATIOS PHAIDON PRESS LIMITED AS OF JUNE 30. 2014 CURRENT RATIO TIMES INTEREST EARNED RATIO ''' As of TTM Company 2010 2011 2012 2013 6302014 Company 2010 2011 2012 2019 6/30/2014 Bloomsbury Publish/1g plc 38 3.6 2.7 2.9 24 Bloomsbury Publishing plc M A 6.728.6 1.4814 10.1010 201.3 BastM LObbe AG MA WA 3.2 1.4 2.3 Basle' Lathe AG NA WA 7.0 5.5 7.0 Guano Group. mc. 32 1.2 2.4 2.2 1.1 Guano Group. Inc. 2.6 2.9 2.7 3.1 32 Maximum 3.8 3.6 32 2.9 24 Maximum 2.6 6.728.6 1A82.4 10.103.0 201.3 Mnimum 32 1.2 2.4 1.4 1.1 Minimum 2.6 2.9 2.7 3.1 3.2 Average 3.5 2.4 2.8 2.1 1.9 Average 2.6 1365.7 497.4 3.370.5 70.5 Median 3.5 2.4 2.7 2.2 2.3 Median 2.6 1365.7 7.0 5.5 7.0 Phaldon Press Limited 20 1.8 20 2.6 27 Phaldon Press Limited 10.9 20.4 25.2 173) (n2) QUICK RATIO As of Company 2010 2011 2012 2013 06,3014 Bloomsbury Publishing plc 2.1 2.0 1.1 1.2 1.0 Bastei LObbe AG WA WA 0.4 0.6 1.5 Guano Group. Inc. 1.7 0.6 1.1 1.0 OA Maanurn 2.1 2.0 1.1 1.2 1.5 Minimum 1.7 0.6 0.4 0.6 OA Average 1.9 1.3 0.9 0.9 1.0 Median 1.9 1.3 1.1 1.0 1.0 Phaldon Press Limited 0.4 0.6 0.5 0.6 0.8 (I) GYPS* Ratio - Current assets ;current habitues. (2) Times InImesi Earned Ratio - adjusted earnings beta* IntereS1 expense and taxes / interest expense. (3) Ouick Ratio - cash. makelable secunties and accounts receivable lessen EFTA00596808 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT 14 FINANCIAL STATEMENT ANALYSIS: EFFICIENCY RATIOS PHAIDON PRESS LIMITED DAYS RECEIVABLE I ' DAYS INVENTORY''! ' Company TTM 6002314 Company T118 69302014 2010 2011 2012 2013 2010 2011 2012 2013 Bloomsbury Putliseng plc Basco LC be AG Duane CrOOP. Inc 101 WA 92 98 WA 90 88 14 95 88 75 96 90 56 89 Moorrctory Petit:W.9 plc Baste. LiObe AG Ou6d0 OrOUP. 149 NSA 75 183 WA 62 1M 315 72 226 136 63 196 144 77 Maxi/am 101 96 95 96 90 Manna. 148 183 315 226 198 Annum 92 90 14 75 56 Monne) 75 62 72 63 77 *rein* 97 94 66 86 78 Average 111 133 I87 142 140 Medifin 97 94 86 88 89 Median Ill 133 175 136 144 Inialdec Press Unwed 56 86 66 66 74 Phelden Press United 567 533 486 455 419 OPERATING CYCLE", DAYS PAYABLE TTIM TIN Company 2010 2,011 2012 2013 6,302014 Company 2010 2011 2012 2013 6'302014 6l00mlbury MAYISroYm pl0 249 281 263 314 288 8l000reboy Put14, 04 plc 221 92 97 107 108 Baste. L90b0 AO WA WA 329 211 200 134404 Lake AO WA WA 101 109 100 Cuarto Group. Inc. 167 133 167 158 166 Guano Group ire. 129 136 126 134 125 Mar enure) 249 281 329 314 288 lAmim(an 221 136 126 134 125 sinnom 167 1/3 167 158 166 Manion Ira 92 97 107 100 A44404 208 227 253 228 218 Average 175 114 los 117 'III Median 208 227 263 211 200 1•10140 175 114 101 109 108 Phelcico Press Limited 623 619 552 521 493 Pheldon Press Limited 196 270 207 135 103 ) Day; Ascot/table • (365 !(sales, accounls lealvatie)). (2) Days' Inr•vm0/4 • (365 f (doll 01 goalssacir invent010). 13) Coming Cycle - days' receivable plus clays inventory. (4) Days' Pwrale • (385 (OM of g000$ 401:1,400300181/6000)) EFTA00596809 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT 14 FINANCIAL STATEMENT ANALYSIS: LEVERAGE & CAPITAL STRUCTURE RATIOS PHAIDON PRESS LIMITED AS OF JUNE 30. 2014 TOTAL LIABILITIES TO COMMON EQUITY CURRENT LIABILITIES TO COMMON EQUITY 1~) As of As of Company 2010 2011 2012 2013 610'2014 Company 2010 2011 2012 2013 06'30,14 Bloomsbury Pubkshing plc 0.3 0.3 0.3 0.3 0.4 Bloomsbury Pubistung plc 0.2 0.3 0.3 0.3 0.3 Baste' Labe AG NA NA 3.5 2.3 1.1 Baste' Labe AG WA WA 1.1 1.2 0.5 Guano Group. Inc. 5.4 4.7 3.9 3.5 3.1 Quarto Group. Inc. 1.5 3.5 1.5 1.6 2.8 Maximum 5.4 4.7 3.9 3.5 3.1 Maximum 1.5 3.5 1.5 1.6 28 Win= 0.3 0.3 0.3 0.3 0.4 Minimum 0.2 0.3 0.3 0.3 0.3 Average 2.8 2.5 2.6 2.1 1.5 Average 0.9 1.9 1.0 1.0 1.2 Medan 2.8 2.5 3.5 2.3 1.1 Medan 0.9 1.9 1.1 1.2 0.5 Phaldon Press Limited 4.5 5.2 1.3 1.0 IA Phaldon Press Limited 2.6 3.3 1.1 0.8 0.9 NET FIXED ASSETS TO COMMON EQUITY (3) DEBT TO MVIC (4) As of As of Company 2010 2011 2012 2013 6+302014 Company 2010 2011 2012 2013 6:30r2014 Bloomsbury Publishing FAG 0.0 0.0 0.0 0.0 0.0 Bloomsbury Pubishing pt 0.0% 0.0% 0.0% 0.0% 0.0% Baste' Late AG WA WA 0.1 0.1 0.1 Basle. Labe AG WA N/A WA N/A 21.6% Guano Group. Inc. 0.3 0.2 0.2 0.1 0.1 Quarto Group. Inc. 81.8% 81.1% 80.2% 74.7% 74.2% Maximum 0.3 0.2 0.2 0.1 0.1 Maximum 81.8% 81.1% 80.2% 74.7% 74.2% Minimum 0.0 0.0 0.0 0.0 0.0 Mnirnum 0.0% 0.0% 0.0% 0.0% 0.0% Average 0.2 0.1 0.1 0.1 0.1 Average 40.9% 40.6% 40.1% 37.4% 31.9% Medan 0.2 0.1 0.1 0.1 0.1 Median 40.9% 40.6% 40.1% 37.4% 21.6% Phaldon Press Limited 0.3 0.3 0.1 0.1 0.1 Phaldon Press Limited WA N/A WA N/A WA (1) Total Liabilities to Equity. total labilibes / bock value of common equity. (2) Current LialAtes to Common Equity. current fiatilities / book value of common equity. (3) Nei Fixed Assets to Common Equity . net fixed assets / book value of common equity. (4) Debl to MVIC . total interest bearing debt / market value of invested capital (i.e.. debt . equity). EFTA00596810 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT 1-9 FINANCIAL STATEMENT ANALYSIS: PROFITABILITY RATIOS PHAIDON PRESS LIMITED AS OF JUNE 30. 2014 RETURN ON EQUITY t11 RETURN ON ASSETS (2) 77M 17M Company 2010 2011 2012 2013 6130/2014 Company 2010 2011 2012 2013 6/30:2014 Bloomsbury Publishing plc 3.9% 3.3% 5.8% 5.3% 5.7% Bloomsbury Publishing plc 3.1% 2.6% 4.3% 4.0% 4.2% Baste' Ilitbe AG WA N/A 29.6% 21.5% 14.4% Bastei Lubbe AG N/A WA 6.6% 6.5% 7.0% Quarto Group. Inc. 16.0% 15.2% 14.0% 13.8% 12.8% Quarto Group. Inc. 2.5% 2.7% 2.9% 3.1% 3.1% Maximum 16.0% 15.2% 29.6% 21.5% 14.4% Maximum 3.1% 2.7% 6.6% 6.5% 7.0% Mkiimum 3.9% 3.3% 5.8% 5.3% 5.7% Minimum 2.5% 2.6% 2.9% 3.1% 3.1% Average 10.0% 9.2% 16.5% 13.6% 11.0% Average 2.8% 2.6% 4.6% 4.5% 4.8% Median 10.0% 9.2% 14.0% 13.8% 12.8% Median 2.8% 2.6% 4.3% 4.0% 4.2% Phaldon Press Limited 21.5% 37.1% 24.0% -8.0% -25.7% Phaidon Press Limited 3.9% 6.0% 10.3% -4.0% -10.6% GROSS MARGIN (3) OPERATING MARGIN (4) 7714 77M Company 2010 2011 2012 2013 6/30/2014 Company 2010 2011 2012 2013 613012014 Bloomsbury Publishing plc 52.8% 50.3% 56.7% 58.1% 57.6% Doomsday Putteshiog plc 7.8% 7.2% 10.7% 10.3% 10.1% Baste' bite° AG WA N/A 19.1% 51.3% 55.0% Bastei LObbe AG WA WA 10.7% 112% 13.5% Quarto Group. Inc. 33.9% 35.2% 36.2% 36.6% 35.4% Quarto Group. Inc. 8.6% 8.3% 8.9% 8.8% 8.5% Maximum 52.8% 54.3% 56.7% 58.1% 57.6% Maximum 8.6% 8.3% 10.7% 11..2% 13.5% Manirnum 33.9% 35.2% 36.2% 36.6% 35.0% Minimum 7.8% 7.2% 8.9% 8.8% 8.5% Average 43.4% 44.8% 47.3% 48.7% 49.5% Average 8.2% 7.8% 10.1% 10.1% 10.7% Median 43.4% 44.8% 49.1% 51.3% 55.0% Medan 8.2% 7.8% 10.7% 10.3% 10.1% Phaidon Press Limited 65.6% 65.7% 62.4% 55.5% 55.7% Phaldon Press Limited 6.8% 8.9% 10.9% -3.0% -13.2% (1) Return on Equity . adjusted net incase / book value of equity available to common shareholders. (2) Return on Assets - adjusted nel income / total assets. (3) Gross Margin . adjusted gross profit! total revenue. (4) Operating Margin - adjusted net operativ income / total revenue. EFTA00596811 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT I-10 ADJUSTED EBITDA (1) AVAILABLE TO DEBT AND COMMON EQUITY PHAIDON PRESS LIMITED AS OF JUNE 30. 2014 TIM CAGR (2) Company 2010 2011 2012 2013 6130/2014 2013-TTM 2012-TTM 2010-TIM (Data in Millions) Bloomsbury Publishing plc £8.625 £7.263 £12.154 £12.271 £13.404 9.2% 5.0% 11.7% Bastei L0bbe AG N/A NIA C 10.468 C 13.272 C 16.224 22.2% 24.5% NA Quarto Group. Inc. £16.657 £17.564 £17.355 £16.644 £15/68 -5.3% -4.7% -1.4% Maximum 22.2% 24.5% 11.7% Minimum .5.3% -4.7% -1.4% Average 8.7% 8.3% 5.1% Medan 9.2% 5.0% 5.1% Phaldon Press Limited £1.598 £2.306 £2.947 •£0.601 -£2.212 268.1% NrA NrA (1) EBITDA = adjusted earnings before interest. taxes, depreciation and amortization. (2) CAGR = compound annual growth rate. EFTA00596812 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT I-11 FINANCIAL STATEMENT ANALYSIS: EBITDA PROFITABILITY RATIOS PHAIDON PRESS LIMITED AS OF JUNE 30.2014 EBITDA RETURN ON BOOK VALUE OF INVESTED CAPITAL(' ) EBITDA RETURN ON ASSETS (2) TTM TTM Company 2010 2011 2012 2013 6/30/2014 Company 2010 2011 2012 2013 6/301014 Bloomsbury Publishing plc 7.6% 6.5% 11.1% 10.7% 11.6% Bloomsbury Publishing pt 6.0% 5.1% 8.3% 8.0% 8.5% Bastei LObbe AG WA WA 22.5% 21.1% 19.8% Bastei LObbe AG N/A WA 14.0% 15.0% 15.0% Quarto Group. Inc. 10.8% 11.1% 11.3% 11.9% 11.2% Guano Group. Inc. 7.6% 7.8% 8.0% 8.2% 8.3% Maximum 10.8% 11.1% 22.5% 21.1% 19.8% Maximum 7.6% 7.8% 14.0% 15.0% 15.0% Manimum 7.6% 6.5% 11.1% 10.7% 11.2% Minimum 6.0% 5.1% 8.0% 8.0% 8.3% Average 9.2% 8.8% 16.0% 14.5% 14.2% Average 6.8% 6.4% 10.1% 10.4% 10.6% Median 9.2% 8.8% 11.3% 11.9% 11.6% Median 6.8% 6.4% 8.3% 8.2% 8.5% Phaidon Press Limited 29.8% 40.7% 28.7% -5.7% -28.6% Phaidon Press Limited 10.0% 11.9% 15.5% -3.5% -11.8% EBITDA MARGIN (3) TTM Company 2010 2011 2012 2013 6/30/2014 Bloomsbury Publishing plc 9.5% 9.1% 12.5% 12.5% 12.2% Bastei LObbe AG WA N/A 12.0% 13.5% 16.1% Quarto Group. Inc. 9.4% 9.4% 9.6% 9.4% 9.1% Maximum 9.5% 9.4% 12.5% 13.5% 16.1% Melimum 9.4% 9.1% 9.6% 9.4% 9.1% Average 9.5% 9.3% 11.3% 11.8% 12.1% Median 9.5% 9.3% 12.0% 12.5% 12.2% Phaidon Press Limited 8.2% 10.2% 12.4% -2.9% -10.4% (1) E13i TDA Return on Book Vacue o' Invested Capital . adjusted earnings before net interest, taxes. depreciation and amortization ("EBITDA1 / total equity plus interest bearing debt. (2) EBITDA Return on Assets - as adjusted EBITDA / total assets (3) EBITDA Margin . EBITDA / total revenues. EFTA00596813 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT I-12 GUIDELINE COMPANY REASONABLENESS TEST PHAIDON PRESS LIMITED AS OF JUNE 30. 2014 MVIC TO REVENUE Implied Multiples Company (Data in Millions) Latest Aggregate TIM 2015P MVIC to MVIC to Quarter End MVIC (" Revenue Revenue TTM Rev. 2015P Rev. Bloomsbury Publishing plc 02128/14 £131.304 £109.496 £109.616 1.20 1.20 Bastei LOWE, AG 03/31/14 E 138.736 E 107.534 E 121.770 1.29 1.14 Quarto Group, Inc. 03/31/14 £126.842 £173.004 £109.749 0.73 1.16 Maximum Minimum Avenge Median 1.29 023 1.07 1.20 1.20 114 1.16 1.16 Conclusion TTM 2015P Revenue Revenue Aggregate Market Value of Invested Capital (from Exhibit F) £18.347 £18.347 Phaidon Press Limited Implied Multiple £21.211 £25.094 0.86 0.73 (1) MVIC = market value of invested capital (i.e., market value of equity + total debt). EFTA00596814 DRAFT - 11/26/14 Subject to Change Upon Receipt of Additional Information EXHIBIT 1-13 GUIDELINE COMPANY REASONABLENESS TEST PHAIDON PRESS LIMITED AS OF JUNE 30, 2014 MARKET VALUE OF EQUITY TO BOOK VALUE OF EQUITY Latest Market Book Value MVE to Company Quarter End Capitalization of Equity BVE (Data in Millions) Bloomsbury Publishing plc 02:28/14 £131.304 £116.036 1.13 Bastei LOD& AG 03:31/14 f 106.701 f 52.064 2.09 Quarto Group. Inc. 03:31114 £32.697 £46.861 020 Maximum 2.09 Minimum 020 Average 1.31 Median 1.13 Latest Conclusion Book Value Aggregate Market Value of Equity (from Exhibit F) Phaidon Press Limited Implied Multiple £15.818 £18.778 0.84 EFTA00596815