Yell Class

8/19/2019 Yell Class

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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


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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


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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


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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


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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


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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


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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


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:=pothesisB ,e.t of @600D000 in 006

at *0% interest rate generates tax shields

CC- @'000 of 18 operations

Growth


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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


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360 766* 34*3 643 6*6

66% 76 7 /4


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Projected

31-Mar-07

0

*00

3000

757,229

*0

54

*0

*470

5

*470

5

*0

/000

**70

/0007330

000

*36

/6735


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*000

*03370

64


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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


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%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%

*#

#


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%5plied Asset

Beta

0#0#5

*#

*#


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!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


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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


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) !aluation of Yellow Boo. #$A

Source 31-Mar-01


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


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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


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Total nte*p*ise !alue

a) Total nte*p*ise !alue and 8ai5u5 Bid (pounds in thousands)

8ource


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!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>


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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


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!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


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 ,?


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axiu .id for +T ;ellow !ages *3*503

(excluding other transaction costs)


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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


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