industrials m&a report - hyde park · pdf file12/04/2012 vestcom international, inc....

IndustrialsM&A Report

Q4 2012

HYDE PARK CAPITAL

Member FINRA/SIPC

Investment Banking | Mergers & Acquisitions | Capital Raising

Hyde Park Capital Advisors, LLC701 N. Franklin StreetTampa, FL 33602Tel: 813-383-0202www.hydeparkcapital.com

John Hill Senior Managing Director [email protected](813) 383-0205John McDonaldSenior Managing [email protected](813) 383-0206Keith HodgdonSenior Vice [email protected](813) 383-0208Jeffrey Bridge Vice President [email protected](813) 383-0204Michael [email protected](813) 597-2649Jennifer [email protected](813) 383-0203

HYDE PARK CAPITALInvestment Banking | Mergers & Acquisitions | Capital Raising

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Dec-11 Mar-12 Jun-12 Sep-12 Dec-12S&P 500 S&P Global Industrials Sector Index Nasdaq

Capital Markets Overview

2

Public Market Performance (LTM)

Select Equity Offerings – Industrials (Q4 2012)

Public Company Market Performance by Sector

Source: S&P Capital IQ

As of December 31, 2012 major market indices including the S&P500, S&P Global Industrials Sector Index and Nasdaq increasedapproximately 12%, 11% and 14%, respectively, over the 12-month period.As illustrated in the table on the right, the equity markets displayedoverall strength and investor demand across the Industrialsindustry as several initial public offerings and follow-on equityofferings were successfully completed in Q4 2012, including BerryPlastics Group, Inc.’s $471 million IPO.The Electrical Equipment and Industrial Conglomerates sectors werethe industry’s strongest performers in terms of valuation during the4th quarter, trading at 11.1x and 9.8x LTM EBITDA, respectively.

Commentary($ in millions)

14.0%

10.6%

11.7%

Offer Date Issuer Industry SectorTransaction

Type Transaction

Value12/13/12 Regal Beloit Corp. Electrical Equipment Secondary $18412/12/12 SolarCity Corp. Electrical Equipment IPO $9212/10/12 Hertz Global Holdings, Inc. Transportation Secondary $78911/27/12 Clean Harbors, Inc. Industrial Services Secondary $33611/14/12 Rockwood Holdings, Inc. Materials Secondary $29411/14/12 Sealed Air Corp. Materials Secondary $25111/08/12 MRC Global, Inc. Transportation Secondary $44011/07/12 Armstrong World Industries, Inc. Construction Secondary $26510/24/12 Navistar International Corp. Construction Secondary $20010/04/12 Berry Plastics Group, Inc. Materials IPO $471

Industry Sector 3 Months 12 months Revenue EBITDAConstruction 8.8% 25.7% 0.9x 9.0xElectrical Equipment 11.9% 16.4% 1.7x 11.1xMachinery 6.4% 9.8% 1.4x 9.8xIndustrial Services 3.5% 4.2% 1.5x 8.8xTransportation 6.0% 5.8% 1.1x 6.5xIndustrial Conglomerates (1.8%) 10.2% 1.7x 9.8xMaterials (1.4%) 3.4% 1.8x 8.7x

MedianChange in Stock Price Enterprise Value / LTM


Middle Market Purchase Multiples

U.S. Middle Market M&A Activity – Annual Trends: VOLUME U.S. Middle Market M&A Activity – Annual Trends: VALUE

Total Transac

tion Volume

Total Transac

tion Value ($ i

n bi

llion

s)

Annual Middle Market M&A Activity – Industrials

3

As detailed in the charts below, overall U.S. middle market M&Aactivity, or deal volume, in the Industrials industry for the yearended December 31, 2012 declined approximately 22% to 325closed deals, down from 419 during 2011.In addition, the total value of completed M&A transactions in theIndustrials industry for 2012 declined approximately 23% to $37.9billion, down from $49.0 billion during 2011.Middle market purchase multiples, defined as enterprise valuedivided by revenue and enterprise value divided by EBITDA, fellslightly in 2012 to 1.3x and 8.8x, respectively, for completed middlemarket transactions across the Industrials industry with disclosedpurchase multiples.

Commentary

Enterprise Va

lue / EBITDA

Enterprise Value / Revenue

Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion)Less than $100M $100 - $499M $500 - $1,000M Less than $100M $100 - $499M $500 - $1,000M


Quarterly Middle Market M&A Activity – Industrials

U.S. Middle Market M&A Activity – Quarterly Trends: VALUEU.S. Middle Market M&A Activity – Quarterly Trends: VOLUME

Middle Market M&A Transactions by Deal Size

($ in billions)

Total Transac

tion Volume

Total Transac

tion Value ($ i

n bi

llion

s)

4

As detailed in the table on the right, Industrials M&A transactionvolume and value decreased year-over-year across nearly allsegments of the middle market during the 4th quarter of 2012.The number of completed Industrials deals declined 10% in Q4 2012to 99, down from 110 in Q4 2011, while total deal value decreasedapproximately 24% over the same period to $10.8 billion.Despite representing approximately 26% of the total deal volume inQ4 2012, transactions valued between $100 million and $1 billionaccounted for more than 70% of the total deal value during Q4.

Commentary

Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion)Less than $100M $100 - $499M $500 - $1,000MLess than $100M $100 - $499M $500 - $1,000M

Deal Size Volume Value Volume Value Volume Value Less than $100M 80 $2.9 73 $3.0 (9%) 1%$100 - $499M 23 $5.7 20 $4.4 (13%) (22%)$500 - $1,000M 7 $5.6 6 $3.4 (14%) (40%)Total Middle Market 110 $14.2 99 $10.8 (10%) (24%)

% of Middle MarketLess than $100M 73% 21% 74% 28%$100 - $499M 21% 40% 20% 41%$500 - $1,000M 6% 39% 6% 31%Total Middle Market 100% 100% 100% 100%

Q4 2011 Q4 2012 % Change


Recent M&A Activity – Industrials

Select Announced M&A Transactions (Q4 2012)

5Source: S&P Capital IQ

Announced Date Target Industry Sector Buyer Enterprise

Value ($mm)EV /

Revenue EV /

EBITDA 12/28/2012 Daltek, Inc. Materials Commercial Vehicle Group, Inc. $13.2 NA NA12/28/2012 Kenny Construction Co. Construction Granite Construction, Inc. $130.0 NA NA12/21/2012 C. Brewer Co. Materials Balda AG $43.5 NA NA12/21/2012 Power Holdings Industrial Services Kelso & Co. $380.0 NA NA12/21/2012 Stremel Manufacturing, LLC Materials Patriot Capital / Chandler Industries, Inc. $10.0 NA NA12/21/2012 Sundance Helicopters, Inc. Transportation Air Methods Corp. $44.0 0.8x NA12/21/2012 Usach Technologies, Inc. Machinery Hardinge, Inc. $18.0 NA NA12/20/2012 Glasforms, Inc. Materials PolyOne Corp. $34.0 NA NA12/20/2012 MEI, Inc. Machinery Crane Co. $820.5 NA NA12/19/2012 Fusion UV Systems, Inc. Machinery Heraeus Holding GMBH $172.0 NA NA12/19/2012 Michael Baker Corp. Construction KS International, LLC $167.6 0.3x 4.8x12/19/2012 Pace International, LLC Materials Valent BioSciences Corp. $86.7 NA NA12/18/2012 IDQ Holdings, Inc. Materials Kinderhook Industries $305.0 NA NA12/18/2012 The Greenbrier Companies, Inc. Construction ARI Longtrain, Inc. $1,096.8 0.6x 7.2x12/17/2012 Kleer Lumber, LLC Materials Tapco International Corp. $43.0 1.1x NA12/14/2012 Akzo Nobel NV (North American Decorative Paints Business) Materials PPG Industries, Inc. $1,050.0 0.7x NA12/14/2012 Armstrong Bros. Holding Co., Inc. Machinery Trinity Industries, Inc. $40.0 NA NA12/14/2012 Lithium Technology Corp. Electrical Equipment VRDT Corp. $48.3 NA NA12/13/2012 TIN, Inc. (Building Products Division) Construction Georgia-Pacific Building Products, LLC $750.0 NA NA12/11/2012 JMR Industries, Ltd. Machinery Sunbelt Rentals, Inc. $44.0 NA NA12/10/2012 Eden Advanced Pest Technologies, Inc. Industrial Services Rentokil Initial plc $10.0 1.4x NA12/07/2012 Petroplex Acidizing, Inc. Materials One Rock Capital Partners $95.0 NA NA12/06/2012 Blow Brothers, Inc. Industrial Services Casella Waste Systems, Inc. $22.5 1.1x NA12/04/2012 Janpak, Inc. Industrial Services Interline Brands, Inc. $82.5 0.4x 9.4x12/04/2012 Vestcom International, Inc. Industrial Services Court Square Capital Partners $300.0 NA NA12/03/2012 Ropak Corp. Materials BWAY Corp. $265.0 NA NA12/02/2012 Sims Metal Management, Ltd. (Arizona Scrap Metal Recycling Assets) Industrial Services SA Recycling, LLC $35.0 NA NA






Value ($mm)EV /

Revenue EV /

EBITDA 11/30/2012 Frontier Packaging, LLC Materials Gladstone Management Corp. $16.5 NA NA11/29/2012 Thermax, Inc. / Raydex / CDT, Ltd. Materials Tensolite, LLC $270.0 NA NA11/29/2012 Univertical Corp. Materials ALCONIX Corp. $77.5 NA NA11/27/2012 Catalyst Paper (Snowflake), Inc. Materials MLR Ventures, LLC $12.1 NA NA11/27/2012 Penn Maritime, Inc. / Maritime Investments, LLC Transportation Kirby Corp. $298.8 2.4x 7.9x11/21/2012 Falling Springs, LLC Industrial Services Arc Ventures, LC $16.0 NA NA11/20/2012 Carmichael International Service Transportation APL Logistics Americas, Ltd. $37.0 NA NA11/19/2012 Hirsch Bedner Associates, Inc. Industrial Services Suzhou Gold Mantis Construction Decoration Co., Ltd. $107.1 NA NA11/19/2012 KES Holdings, LLC Materials Optima Specialty Steel, Inc. $112.5 NA NA11/16/2012 Choice Environmental Services, Inc. Industrial Services Waste Services Of Florida, Inc. $125.0 1.7x NA11/16/2012 Flex-ing, Inc. Machinery Franklin Fueling Systems, Inc. $10.8 NA NA11/16/2012 Ridgeline Energy, LLC Construction Atlantic Power Corp. $88.0 NA NA11/15/2012 Marine Hydraulics International, Inc. Machinery BAE Systems Ship Repair, Inc. $69.0 0.6x NA11/14/2012 Hess Industries, Inc. Machinery Pacific Wheel, Inc. $14.2 NA NA11/13/2012 Potomac Supply, LLC Materials American Industrial Partners $10.0 NA NA11/13/2012 Q3 Contracting, Inc. Construction Primoris Services Corp. $58.1 0.7x NA11/12/2012 A & A Express, Inc. Transportation Roadrunner Transportation Systems, Inc. $26.5 0.7x NA11/12/2012 Chemtura Corp. (Antioxidant / UV Stabilizers Business) Materials SK Capital Partners $199.0 0.5x 6.4x11/09/2012 Titanium Metals Corp. Materials Precision Castparts Corp. $2,989.9 2.8x 14.0x11/07/2012 Houghton International, Inc. Materials GULF OIL Corp., Ltd. $1,045.0 1.2x 7.9x11/06/2012 Anthony, Inc. Machinery Dover Corp. $602.5 NA NA11/06/2012 Scotsman Industries, Inc. Machinery Ali Group S.p.A. $575.0 NA NA11/05/2012 GAMFG Precision, LLC Materials Senior plc $45.0 0.7x 4.6x11/02/2012 McFarland Cascade Holdings, Inc. Materials Stella-Jones Corp. $125.0 0.5x NA11/01/2012 Agrifos Fertilizer, LLC Materials Rentech Nitrogen Partners, LP $236.8 1.5x NM11/01/2012 American Augers, Inc. / Astec Underground, Inc. (Certain Assets of Trencor Large Product Line) Machinery The Charles Machine Works, Inc. $55.0 NA NA11/01/2012 M Cubed Technologies, Inc. Materials II-VI, Inc. $71.3 1.4x NA






Value ($mm)EV /

Revenue EV /

EBITDA 11/01/2012 West Construction, Inc. Construction Orion Marine Group, Inc. $10.0 NA NA10/29/2012 Green Plains Grain Co., LLC / Green Plains Grain Co. TN, LLC Industrial Services The Andersons, Inc. $95.5 NA NA10/29/2012 Middlebury Hardwood Products, Inc Construction Patrick Industries, Inc. $23.4 0.7x 7.9x10/29/2012 Safety-Kleen, Inc. Industrial Services Clean Harbors, Inc. $1,478.2 1.1x 10.0x10/26/2012 Heartland Pump Rental And Sales, Inc. Industrial Services Xylem, Inc. $29.0 0.9x NA10/25/2012 Turbo Logistics, Inc. Transportation XPO Logistics, LLC $50.0 0.4x NA10/24/2012 Spartech Corp. Materials PolyOne Corp. $388.1 0.3x 7.3x10/22/2012 Cascade Corp. Machinery Toyota Industries Corp. $703.6 1.3x 8.4x10/22/2012 OKI Supply Co. Machinery United Stationers Supply Co. $90.0 0.6x NA10/18/2012 Trinetics Electrical Equipment Hubbell Power Systems, Inc. $27.0 NA NA10/17/2012 Bode Concrete, LLC / Bode Gravel Co., Inc. Materials Central Concrete Supply Co., Inc. $31.5 NA NA10/17/2012 Connell Industrial Tool Corp. Machinery MISUMI Group, Inc. $200.0 NA NA10/16/2012 Carolina Commercial Heat Treating, Inc. Materials Bodycote plc $68.0 1.9x 5.8x10/16/2012 Newport Coachworks, Inc. Machinery Green Automotive Co. $12.2 NA NA10/12/2012 Permian Mud Service, Inc. Materials Ecolab, Inc. $2,260.0 NA NA10/11/2012 U.S. United Ocean Services, LLC Transportation International Shipholding Corp. $111.0 NA NA10/10/2012 Apex Tool Group, LLC Machinery Bain Capital $1,600.0 1.1x NA10/10/2012 EZ Prints, Inc. Industrial Services CafePress, Inc. $75.1 2.2x NM10/09/2012 Cytec Industries, Inc. (Coating Resins Business) Materials Advent International Corp. $1,150.0 0.7x 6.8x10/09/2012 Davis & Warshow, Inc. Industrial Services Ferguson Enterprises, Inc. $78.3 0.7x NA10/09/2012 Stanley Black & Decker, Inc. (Hardware & Home Improvement Group) Construction Spectrum Brands, Inc. $1,300.0 1.3x 6.9x10/08/2012 Air Serv Corp. Transportation ABM Industries, Inc. $158.0 0.5x NA10/02/2012 BWAY Parent Co., Inc. Materials Platinum Equity $2,036.7 1.7x 13.1x10/01/2012 AACOA, Inc. Materials The William L. Bonnell Co., Inc. $50.8 NA NA10/01/2012 Houston OCTG Group, Inc. Construction Southern Tube, LLC $43.0 NA NAAverage 1.0x 8.0x

Median 0.8x 7.6x


Recent M&A Transactions Profiled – Industrials

Transaction DetailsCascade Corp. (NYSE:CASC)

Transaction Details

8

Titanium Metals Corp. (NYSE:TIE)Titanium Metals Corp. (NYSE:TIE) offers a full range of titaniumproducts, including ingot and slab, forging billet and mill forms.On November 9, 2012 Precision Castparts Corp. (NYSE:PCP)announced that it entered into a definitive agreement to acquire allof the common stock of TIE for $16.50 per share in cash.PCP commenced an all-cash tender offer followed by a short formmerger to complete the acquisition of TIE on December 21, 2012.The transaction was valued at approximately $3 billion includingthe assumption of debt. The offer price of $16.50 per sharerepresented a premium of 36% over the 30-day average of TIEshares and a 44% premium to the closing price of TIE shares onNovember 8, 2012.Cascade Corp. (NYSE:CASC) is a leading manufacturer of materialshandling load engagement devices and related replacement parts,primarily for the lift truck industry and to a lesser extent, theconstruction industry.On October 22, 2012 Toyota Industries Corporation (Tokyo StockExchange: 6201) announced that it entered into a definitiveagreement to acquire all of the common stock of Cascade for $65.00per share in cash.The transaction is valued at approximately $700 million. The offerprice of $65.00 per share represents a 23% premium overCascade’s volume-weighted average share price for the 60 daysending October 19, 2012 and an 18% premium to Cascade’s shareprice one day before the announcement.

($ in millions)LTM

Income Statement 7/31/12Revenue $541.6 Purchase Price (Equity) $728.0EBITDA $83.8 Net Assumed Liabilities ($24.4)Net Income $60.6 Implied Enterprise Value $703.6

As ofBalance Sheet 7/31/12 Implied Purchase MultiplesCash $39.4 Revenue 1.3xDebt $15.0 EBITDA 8.4xNet Debt ($24.4) Net Income 12.0x

Financial Profile Transaction Analysis

($ in millions)LTM

Income Statement 9/30/12 Purchase Price (Equity) $2,888.5Revenue $1,074.8 Net Assumed Liabilities $84.7EBITDA $214.1 Minority Interest $16.7Net Income $102.9 Implied Enterprise Value $2,989.9

As ofBalance Sheet 9/30/12 Implied Purchase MultiplesCash $20.6 Revenue 2.8xDebt $105.3 EBITDA 14.0xNet Debt $84.7 Net Income 28.1x

Financial Profile Transaction Analysis


$12.2$5.3

$7.5$8.2

$1.8$2.9

$16.5$4.7

$8.8$10.8

$4.3$3.9

$0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0Materials

TransportationIndustrial Services

MachineryElectrical Equipment

Construction

9234

10051

2028

12240

12572

2337

0 20 40 60 80 100 120 140Materials

TransportationIndustrial Services

MachineryElectrical Equipment

Construction

M&A Activity by Industrial Sector

% Change

% Change

U.S. Middle Market M&A Activity by Industrial Sector: VOLUME

9Source: S&P Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion); Note: Industrial conglomerates had no transactions with disclosed values in this range during the period.

U.S. Middle Market M&A Activity by Industrial Sector: VALUE

13%29%

58%15%24%

24%

26%

20%15%25%

13%26%

($ in billions)

2011 2012

2011 2012


With financing markets cooperating, financial sponsors remainedactive investors across all sectors of the Industrials industry in Q42012, as shown in the table on the right.Several notable private equity backed transactions wereannounced during the 4th quarter including Kelso & Co.’sacquisition of Power Holdings for $380 million and Bain Capital’spurchase of Apex Tool Group, LLC, a leading producer andmarketer of industrial tools, for $1.6 billion.During 2012 financial sponsors participated in 22% of thecompleted deals and accounted for approximately 23% of totaltransaction value, down from the year prior as corporate buyersemploy their stockpiled cash to grow through strategic mergersand acquisitions.

Select Private Equity Transactions – Industrials (Q4 2012)

Financial Sponsors vs. Strategic Buyers

Private Equity Activity – Industrials

Financial Sponsor Strategic Buyer Financial Sponsor Strategic Buyer

Total Transac

tion Value ($ i

n billions)

10

($ in millions)

Commentary

Source: S&P Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion)

Total Transac

tion Volume

Announced Date Target Buyer Industry Transaction Value 12/31/12 Advanced Recycling Systems, Inc. Ironwood Capital / Stanwich Partners / Wisdom Capital Partners Machinery NA12/21/12 M.E.I. Labels, Inc. Svoboda Capital Partners Industrial Services NA12/21/12 Power Holdings Kelso & Co. Industrial Services $38012/21/12 Stremel Manufacturing, LLC Patriot Capital / Chandler Industries, Inc. Materials $1012/20/12 Dash Multi-Corp, Inc. Arsenal Capital Partners Materials NA12/19/12 UCS & UPC Holdings Co. Graham Partners Industrial Services NA12/17/12 Bluff Manufacturing, Inc. Hadley Capital Machinery NA12/17/12 Cascade Windows, Inc. Altamont Capital Partners Construction NA12/14/12 Tidewater Holdings, Inc. Stonepeak Infrastructure Partners Transportation NA12/14/12 United Road Services, Inc. Charlesbank Capital Partners Transportation NA12/12/12 AIRCO Industrial Services, Inc. Azalea Capital Construction NA12/12/12 DuBois Chemicals, Inc. Aurora Capital Group Materials NA12/12/12 Dynapower Corp. Pfingsten Partners Electrical Equipment NA12/10/12 Banner Service Corp. High Street Capital / Centerfield Capital Partners Materials NA12/07/12 Custom Window Systems, Inc. Highlander Partners Construction NA12/07/12 Petroplex Acidizing, Inc. One Rock Capital Partners Materials $9512/04/12 Accurate Component Sales, Inc. High Road Capital Partners Transportation NA12/04/12 Vestcom International, Inc. Court Square Capital Partners Industrial Services $30011/30/12 Cyclone Steel Services, Inc. Freestone Partners / ORIX Corporate Finance Group Materials NA11/27/12 Victory Energy Operations, LLC Saw Mill Capital / GulfStar Merchant Banking Machinery NA11/26/12 MPI International, LLC Monomoy Capital Partners Materials NA11/21/12 Eliason Corp. Sentinel Capital Partners Construction NA11/20/12 Remedial Construction Services LP Oaktree Capital Management / GFI Energy Ventures Industrial Services NA11/13/12 Potomac Supply, LLC American Industrial Partners Materials $1011/12/12 Chemtura Corp.(Antioxidant / UV Stabilizers Business) SK Capital Partners Materials $19911/05/12 Midnite Air Corp. The Riverside Co. Transportation NA11/01/12 Hilex Poly Co., LLC Wind Point Partners Materials NA10/25/12 Bluewater Thermal Services, LLC Aterian Investment Partners Materials NA10/19/12 Southern Towing Co., Inc. McCombs Partners / Trive Capital Transportation NA10/18/12 Big 3 Precision Products, Inc. TVV Capital Materials NA10/15/12 Gulf Coast Machine & Supply Co. Altus Capital Partners Materials NA10/10/12 Apex Tool Group, LLC Bain Capital Machinery $1,60010/10/12 Scandia Plastics, Inc. Graham Partners Materials NA10/09/12 FCX Performance, Inc. Harvest Partners Transportation NA10/09/12 FleetPride, Inc. TPG Capital Transportation NA10/04/12 Nekoosa Coated Products, LLC Wingate Partners Materials NA10/02/12 BWAY Parent Co., Inc. Platinum Equity Materials $2,051


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Dec-11 Mar-12 Jun-12 Sep-12 Dec-12S&P 500 Electrical Equipment

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Dec-11 Mar-12 Jun-12 Sep-12 Dec-12S&P 500 Construction

Industry Sector Overview – Recent Stock Price Performance

Electrical Equipment

Commentary

11

Construction

Machinery


The charts included on the following pages detail the recent stockprice performance by sector for the leading public companieswithin the Industrials industry for the trailing 12-month periodending December 31, 2012. The shaded section is the most recent3-month period (Q4) for each sector and relative to the S&P 500.During Q4 2012 all of the sector indices of the Industrials industryincreased except for the Industrial Conglomerates and Materialsindices. For the 12-month period ending December 31, 2012, all ofthe Industrial industry’s sectors increased, led by the Constructionand Electrical Equipment sectors, increasing 26% and 16%,respectively.

9.8%

11.7%

25.7%

11.7%

16.4%

11.7%

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Dec-11 Mar-12 Jun-12 Sep-12 Dec-12S&P 500 Machinery


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Dec-11 Mar-12 Jun-12 Sep-12 Dec-12S&P 500 Industrial Conglomerates

Industry Sector Overview – Recent Stock Price Performance

Industrial Conglomerates

Industrial Services

12

Transportation


Materials

5.8%

11.7%

10.2%

11.7%

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Dec-11 Mar-12 Jun-12 Sep-12 Dec-12S&P 500 Industrial Services80%90%

100%110%120%130%140%

Dec-11 Mar-12 Jun-12 Sep-12 Dec-12S&P 500 Transportation

11.7%

4.2%

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Dec-11 Mar-12 Jun-12 Sep-12 Dec-12S&P 500 Materials

11.7%

3.4%


Industry Sector Overview – Public Company Analysis

Building Products

($ in millions, except per share)

13

Construction and Engineering

Construction


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Masco Corp. MAS $16.66 97% $5,810 $9,207 $7,593 $1,842 $526 24.3% 6.9% 1.2x 17.5xOwens Corning OC $36.99 97% $4,468 $6,668 $5,209 $930 $691 17.9% 13.3% 1.3x 9.7xFortune Brands Home & Security, Inc. FBHS $29.22 96% $4,754 $4,886 $3,519 $1,126 $277 32.0% 7.9% 1.4x 17.7xUSG Corp. USG $28.07 98% $2,970 $4,768 $3,249 $375 $216 11.5% 6.6% 1.5x NMArmstrong World Industries, Inc. AWI $50.73 85% $3,006 $3,790 $2,766 $668 $333 24.2% 12.0% 1.4x 11.4xLennox International, Inc. LII $52.52 97% $2,710 $3,142 $3,376 $871 $264 25.8% 7.8% 0.9x 11.9xAO Smith Corp. AOS $63.07 99% $2,936 $2,734 $1,939 $652 $256 33.6% 13.2% 1.4x 10.7xSimpson Manufacturing Co., Inc. SSD $32.79 94% $1,585 $1,398 $643 $283 $97 44.0% 15.1% 2.2x 14.4x

Average 95% $3,530 $4,574 $3,537 $843 $332 26.7% 10.4% 1.4x 13.3x

Median 97% $2,988 $4,279 $3,312 $769 $270 25.0% 9.9% 1.4x 11.9x

LTM MarginsEnterprise Value /

LTM LTM

Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Fluor Corp. FLR $58.74 91% $9,965 $8,076 $26,807 $1,210 $1,248 4.5% 4.7% 0.3x 6.5xURS Corp. URS $39.26 83% $2,941 $4,938 $10,393 $840 $772 8.1% 7.4% 0.5x 6.4xJacobs Engineering Group, Inc. JEC $42.57 88% $5,495 $4,820 $11,022 $1,742 $720 15.8% 6.5% 0.4x 6.7xKBR, Inc. KBR $29.92 79% $4,451 $3,677 $7,988 $594 $445 7.4% 5.6% 0.5x 8.3xAECOM Technology Corp. ACM $23.80 97% $2,663 $3,194 $8,218 $422 $438 5.1% 5.3% 0.4x 7.3xEMCOR Group, Inc. EME $34.61 99% $2,345 $2,020 $6,253 $792 $293 12.7% 4.7% 0.3x 6.9xTutor Perini Corp. TPC $13.70 78% $650 $1,166 $4,112 $414 $209 10.1% 5.1% 0.3x 5.6x

Average 88% $4,073 $3,984 $10,685 $859 $589 9.1% 5.6% 0.4x 6.8x

Median 88% $2,941 $3,677 $8,218 $792 $445 8.1% 5.3% 0.4x 6.7x

Enterprise Value /LTM LTM Margins LTM




Electrical Equipment($ in millions, except per share)

Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDARoper Industries, Inc. ROP $111.48 98% $11,099 $12,750 $2,993 $1,672 $912 55.8% 30.5% 4.3x 14.0xRockwell Automation, Inc. ROK $83.99 99% $11,742 $11,596 $6,275 $2,511 $1,144 40.0% 18.2% 1.8x 10.1xAmetek, Inc. AME $37.57 98% $9,167 $10,464 $3,334 $1,180 $850 35.4% 25.5% 3.1x 12.3xHubbell, Inc. HUB.B $84.63 97% $5,073 $5,022 $3,044 $1,012 $539 33.2% 17.7% 1.6x 9.3xWoodward, Inc. WWD $38.13 83% $2,674 $3,195 $1,866 $558 $290 29.9% 15.6% 1.7x 11.0xGenerac Holdings, Inc. GNRC $34.31 88% $2,366 $3,191 $1,102 $413 $259 37.5% 23.5% 2.9x 12.3xAcuity Brands, Inc. AYI $67.73 98% $2,848 $2,934 $1,941 $788 $261 40.6% 13.5% 1.5x 11.2xPolypore International, Inc. PPO $46.50 81% $2,197 $2,859 $728 $279 $204 38.3% 28.0% 3.9x 14.0xBelden, Inc. BDC $44.99 100% $2,094 $2,681 $1,903 $591 $236 31.1% 12.4% 1.4x 11.4xGrafTech International, Ltd. GTI $9.39 53% $1,336 $1,939 $1,225 $315 $224 25.7% 18.3% 1.6x 8.7xBrady Corp. BRC $33.40 96% $1,738 $1,738 $1,312 $633 $210 48.2% 16.0% 1.3x 8.3xColeman Cable, Inc. CCIX $9.27 70% $160 $502 $888 $127 $77 14.3% 8.7% 0.6x 6.5x

Average 88% $4,374 $4,906 $2,218 $840 $434 35.8% 19.0% 2.2x 10.8x

Median 96% $2,520 $3,062 $1,885 $612 $260 36.4% 18.0% 1.7x 11.1x




Construction and Farm Machinery


15

Industrial Machinery

Machinery


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Caterpillar, Inc. CAT $89.61 77% $60,002 $94,416 $65,875 $18,023 $11,966 27.4% 18.2% 1.4x 7.9xDeere & Co. DE $86.42 96% $34,698 $61,090 $36,157 $10,400 $5,803 28.8% 16.0% 1.7x 10.5xPACCAR, Inc. PCAR $45.21 94% $16,139 $22,397 $17,907 $2,481 $2,403 13.9% 13.4% 1.3x 9.3xCummins, Inc. CMI $108.35 84% $20,619 $20,475 $17,963 $4,691 $2,386 26.1% 13.3% 1.1x 8.6xJoy Global, Inc. JOY $63.78 66% $6,817 $8,174 $5,661 $1,909 $1,348 33.7% 23.8% 1.4x 6.1xAGCO Corp. AGCO $49.12 91% $4,844 $6,087 $9,777 $2,120 $972 21.7% 9.9% 0.6x 6.3xManitowoc Co., Inc. MTW $15.68 92% $2,080 $4,062 $3,856 $906 $379 23.5% 9.8% 1.1x 10.7xOshkosh Corp. OSK $29.65 94% $2,720 $3,220 $8,066 $1,016 $496 12.6% 6.1% 0.4x 6.5xToro Co. TTC $42.98 95% $2,605 $2,705 $1,959 $673 $258 34.4% 13.2% 1.4x 10.5x

Average 88% $16,725 $24,736 $18,580 $4,691 $2,890 24.7% 13.8% 1.2x 8.5x

Median 92% $6,817 $8,174 $9,777 $2,120 $1,348 26.1% 13.3% 1.3x 8.6x


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Illinois Tool Works, Inc. ITW $60.81 96% $28,775 $31,053 $17,924 $6,469 $3,461 36.1% 19.3% 1.7x 9.0xEaton Corp. ETN $54.18 99% $18,382 $21,466 $16,011 $4,915 $2,271 30.7% 14.2% 1.3x 9.5xStanley Black & Decker, Inc. SWK $73.97 90% $12,331 $15,213 $10,191 $3,734 $1,549 36.6% 15.2% 1.5x 9.8xParker Hannifin Corp. PH $85.06 93% $13,028 $14,553 $13,086 $3,036 $1,833 23.2% 14.0% 1.1x 7.9xDover Corp. DOV $65.71 98% $12,090 $14,090 $8,104 $3,107 $1,623 38.3% 20.0% 1.7x 8.7xFlowserve Corp. FLS $146.80 100% $7,936 $8,659 $4,689 $1,546 $746 33.0% 15.9% 1.8x 11.6xPall Corp. PLL $60.26 92% $7,073 $6,783 $2,648 $1,372 $582 51.8% 22.0% 2.6x 11.7xDonaldson Co., Inc. DCI $32.84 84% $5,010 $4,993 $2,474 $857 $408 34.6% 16.5% 2.0x 12.2xTimken Co. TKR $47.83 83% $4,668 $4,575 $4,987 $1,395 $949 28.0% 19.0% 0.9x 4.8x

Average 93% $12,144 $13,487 $8,901 $2,937 $1,491 34.7% 17.3% 1.6x 9.5x

Median 93% $12,090 $14,090 $8,104 $3,036 $1,549 34.6% 16.5% 1.7x 9.5x




Trading Companies and Distributors


16

Machinery


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA W.W. Grainger, Inc. GWW $202.37 91% $14,405 $14,518 $8,950 $3,916 $1,290 43.8% 14.4% 1.6x 11.3xFastenal Co. FAST $46.65 85% $13,862 $13,782 $3,134 $1,615 $727 51.5% 23.2% 4.4x 18.9xUnited Rentals, Inc. URI $45.52 95% $4,317 $11,575 $4,117 $1,587 $984 38.5% 23.9% 2.8x 11.8xGATX Corp. GMT $43.30 94% $2,061 $5,395 $1,243 $661 $486 53.2% 39.1% 4.3x 11.1xMSC Industrial Direct Co., Inc. MSM $75.38 89% $4,735 $4,505 $2,388 $1,091 $458 45.7% 19.2% 1.9x 9.8xWESCO International, Inc. WCC $67.43 99% $3,411 $4,082 $6,524 $1,322 $404 20.3% 6.2% 0.6x 10.1xWatsco, Inc. WSO $74.90 93% $2,302 $2,755 $3,312 $792 $240 23.9% 7.2% 0.8x 11.5xEnerSys ENS $37.63 95% $1,821 $1,874 $2,315 $563 $309 24.3% 13.4% 0.8x 6.1xApplied Industrial Technologies, Inc. AIT $42.01 94% $1,794 $1,737 $2,406 $660 $197 27.4% 8.2% 0.7x 8.8xTitan Machinery, Inc. TITN $24.70 67% $517 $1,391 $2,021 $328 $115 16.2% 5.7% 0.7x 12.1x

Average 90% $4,923 $6,161 $3,641 $1,254 $521 34.5% 16.0% 1.9x 11.1x

Median 93% $2,856 $4,294 $2,770 $942 $431 33.0% 13.9% 1.2x 11.2x




Environmental and Facilities Services


17

Industrial Services


Diversified Support Services

Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAWaste Management, Inc. WM $33.74 93% $15,644 $25,604 $13,621 $4,821 $3,323 35.4% 24.4% 1.9x 7.7xRepublic Services, Inc. RSG $29.33 94% $10,848 $17,880 $8,115 $3,185 $2,358 39.3% 29.1% 2.2x 7.6xStericycle, Inc. SRCL $93.28 97% $8,100 $9,396 $1,856 $875 $553 47.2% 29.8% 5.1x 17.0xWaste Connections, Inc. WCN $33.79 100% $4,021 $4,924 $1,593 $674 $504 42.3% 31.6% 3.1x 9.8xCovanta Holding Corp. CVA $18.42 97% $2,477 $4,460 $1,644 $690 $430 42.0% 26.2% 2.7x 10.4xClean Harbors, Inc. CLH $55.01 77% $2,942 $3,217 $2,175 $661 $379 30.4% 17.4% 1.5x 8.5xRollins, Inc. ROL $22.04 90% $3,225 $3,160 $1,271 $623 $216 49.0% 17.0% 2.5x 14.6xSims Metal Management, Ltd. ASX:SGM $9.60 59% $1,977 $2,268 $9,256 $744 $194 8.0% 2.1% 0.2x 11.7xTetra Tech, Inc. TTEK $26.47 95% $1,692 $1,671 $2,022 $359 $207 17.8% 10.3% 0.8x 8.1xSchnitzer Steel Industries, Inc. SCHN $30.33 61% $827 $1,187 $3,122 $242 $128 7.8% 4.1% 0.4x 9.3xCasella Waste Systems, Inc. CWST $4.38 61% $122 $611 $465 $136 $78 29.3% 16.8% 1.3x 7.8x

Average 84% $4,716 $6,762 $4,104 $1,183 $761 31.7% 19.0% 2.0x 10.2x

Median 93% $2,942 $3,217 $2,022 $674 $379 35.4% 17.4% 1.9x 9.3x


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAIron Mountain, Inc. IRM $31.05 82% $5,434 $8,850 $2,989 $1,731 $921 57.9% 30.8% 3.0x 9.6xCintas Corp. CTAS $40.90 90% $5,216 $6,249 $4,177 $1,749 $710 41.9% 17.0% 1.5x 8.8xPitney Bowes, Inc. PBI $10.64 54% $2,139 $5,655 $5,058 $2,538 $1,002 50.2% 19.8% 1.1x 5.6xKAR Auction Services, Inc. KAR $20.24 97% $2,806 $5,098 $1,950 $884 $457 45.3% 23.4% 2.6x 11.2xR.R. Donnelley & Sons Co. RRD $8.99 59% $1,628 $5,041 $10,283 $2,371 $1,257 23.1% 12.2% 0.5x 4.0xCorrections Corp. of America CXW $35.47 97% $3,558 $4,630 $1,771 $510 $418 28.8% 23.6% 2.6x 11.1xAvery Dennison Corp. AVY $34.92 99% $3,614 $4,601 $6,036 $1,577 $618 26.1% 10.2% 0.8x 7.4xCopart, Inc. CPRT $29.50 96% $3,838 $4,136 $937 $438 $344 46.7% 36.7% 4.4x 12.0xRitchie Bros. Auctioneers, Inc. RBA $20.89 80% $2,233 $2,253 $434 $384 $167 88.4% 38.4% 5.2x 13.5xUnited Stationers, Inc. USTR $30.99 89% $1,291 $1,727 $5,037 $747 $231 14.8% 4.6% 0.3x 7.5xThe Brink's Co. BCO $28.53 96% $1,383 $1,680 $3,910 $725 $312 18.5% 8.0% 0.4x 5.4xHerman Miller, Inc. MLHR $21.46 92% $1,258 $1,315 $1,712 $582 $151 34.0% 8.8% 0.8x 8.7x

Average 86% $2,866 $4,270 $3,691 $1,186 $549 39.6% 19.5% 1.9x 8.7x

Median 91% $2,520 $4,616 $3,449 $815 $438 37.9% 18.4% 1.3x 8.8x




Air Freight and Logistics


18

Transportation

Road and Rail


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAUnited Parcel Service, Inc. UPS $73.73 90% $71,684 $75,867 $53,722 $11,401 $7,080 21.2% 13.2% 1.4x 10.7xFedEx Corp. FDX $91.72 94% $29,029 $28,871 $43,471 $10,993 $5,448 25.3% 12.5% 0.7x 5.3xCH Robinson Worldwide, Inc. CHRW $63.22 88% $10,270 $9,997 $10,957 $970 $743 8.9% 6.8% 0.9x 13.5xExpeditors International of Washington, Inc. EXPD $39.55 83% $8,432 $7,071 $5,950 $761 $597 12.8% 10.0% 1.2x 11.8xAtlas Air Worldwide Holdings, Inc. AAWW $44.32 78% $1,175 $1,752 $1,581 $427 $261 27.0% 16.5% 1.1x 6.7xHub Group, Inc. HUBG $33.60 90% $1,249 $1,203 $3,124 $356 $134 11.4% 4.3% 0.4x 9.0xForward Air Corp. FWRD $35.01 94% $1,028 $935 $577 $157 $103 27.2% 17.9% 1.6x 9.1x

Average 88% $17,552 $17,957 $17,055 $3,581 $2,052 19.1% 11.6% 1.0x 9.4x

Median 90% $8,432 $7,071 $5,950 $761 $597 21.2% 12.5% 1.1x 9.1x

LTMEnterprise Value /

LTM Margins LTM

Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAUnion Pacific Corp. UNP $125.72 97% $59,906 $67,840 $20,926 $9,293 $8,505 44.4% 40.6% 3.2x 8.0xCSX Corp. CSX $19.73 83% $20,519 $28,980 $11,756 $4,516 $4,516 38.4% 38.4% 2.5x 6.4xNorfolk Southern Corp. NSC $61.84 79% $20,110 $28,124 $11,040 $4,040 $4,046 36.6% 36.6% 2.5x 7.0xKansas City Southern KSU $83.48 99% $9,189 $10,914 $2,239 $872 $869 38.9% 38.8% 4.9x 12.6xJB Hunt Transport Services, Inc. JBHT $59.71 98% $7,167 $7,846 $5,055 $870 $757 17.2% 15.0% 1.6x 10.4xRyder System, Inc. R $49.93 87% $2,533 $6,322 $6,215 $1,255 $1,375 20.2% 22.1% 1.0x 4.6xGenesee & Wyoming, Inc. GWR $76.08 99% $3,297 $3,429 $858 $359 $262 41.9% 30.5% 4.0x 13.1xAMERCO UHAL $126.81 100% $2,472 $3,292 $2,563 $660 $622 25.7% 24.3% 1.3x 5.3xOld Dominion Freight Line, Inc. ODFL $34.28 98% $2,954 $3,230 $2,068 $548 $386 26.5% 18.7% 1.6x 8.4xLandstar System, Inc. LSTR $52.46 89% $2,463 $2,491 $2,821 $633 $232 22.4% 8.2% 0.9x 10.7xCon-way, Inc. CNW $27.82 72% $1,569 $1,903 $5,535 $1,002 $423 18.1% 7.6% 0.3x 4.5xWerner Enterprises, Inc. WERN $21.67 81% $1,592 $1,666 $2,036 $1,042 $337 51.2% 16.5% 0.8x 4.9x

Average 90% $11,148 $13,836 $6,093 $2,091 $1,861 31.8% 24.8% 2.0x 8.0x

Median 93% $3,126 $4,876 $3,938 $937 $689 31.6% 23.2% 1.6x 7.5x

LTMEnterprise Value /

LTM Margins LTM



Airlines


19

Transportation

Marine


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDADelta Air Lines, Inc. DAL $11.87 97% $10,090 $19,975 $36,670 $7,374 $4,182 20.1% 11.4% 0.5x 4.8xUnited Continental Holdings, Inc. UAL $23.38 90% $7,739 $13,303 $37,152 $8,917 $2,878 24.0% 7.7% 0.4x 4.6xSouthwest Airlines Co. LUV $10.24 97% $7,752 $8,008 $17,088 $3,689 $1,650 21.6% 9.7% 0.5x 4.9xUS Airways Group, Inc. LCC $13.50 93% $2,754 $4,947 $13,831 $2,821 $1,133 20.4% 8.2% 0.4x 4.4xJetBlue Airways Corp. JBLU $5.72 91% $1,968 $3,797 $4,982 $2,431 $640 48.8% 12.8% 0.8x 5.9xAlaska Air Group, Inc. ALK $43.09 95% $3,093 $2,740 $4,657 $1,250 $831 26.8% 17.8% 0.6x 3.3xWestjet Airlines, Ltd. WJA $19.87 98% $2,724 $2,058 $3,399 $1,052 $535 30.9% 15.7% 0.6x 3.8xAllegiant Travel Co. ALGT $73.41 94% $1,412 $1,211 $880 $230 $182 26.2% 20.7% 1.4x 6.7xSpirit Airlines, Inc. SAVE $17.73 72% $1,287 $888 $1,264 $354 $180 28.0% 14.2% 0.7x 4.9x

Average 92% $4,313 $6,325 $13,325 $3,124 $1,357 27.4% 13.1% 0.6x 4.8x

Median 94% $2,754 $3,797 $4,982 $2,431 $831 26.2% 12.8% 0.6x 4.8x


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAKirby Corp. KEX $61.89 88% $3,440 $4,253 $2,150 $705 $511 32.8% 23.8% 2.0x 8.3xMatson, Inc. MATX $24.72 47% $1,049 $1,411 $1,796 $290 $244 16.1% 13.6% 0.8x 5.8xInternational Shipholding Corp. ISH $16.48 68% $119 $306 $249 $61 $51 24.5% 20.7% 1.2x 6.0xRand Logistics, Inc. RLOG $6.50 70% $115 $276 $157 $43 $31 27.1% 19.7% 1.8x 8.9x

Average 68% $1,181 $1,562 $1,088 $275 $209 25.1% 19.4% 1.4x 7.2x

Median 69% $584 $858 $1,022 $175 $148 25.8% 20.2% 1.5x 7.1x





20

Industrial Conglomerates

Source: S&P Capital IQ* Note: General Electric Co. enterprise value and LTM financials excludes GE Capital

Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAGeneral Electric Co.* GE $20.99 91% $103,980 $108,480 $101,320 $30,752 $19,546 30.4% 19.3% 1.1x 5.5xSiemens AG SIE $108.47 99% $95,118 $107,097 $103,590 $29,518 $12,719 28.5% 12.3% 1.0x 8.4xUnited Technologies Corp. UTX $82.01 94% $74,192 $99,442 $57,708 $15,555 $8,256 27.0% 14.3% 1.7x 12.0x3M Co. MMM $92.85 97% $65,301 $67,128 $29,904 $14,219 $7,758 47.5% 25.9% 2.2x 8.7xDanaher Corp. DHR $55.90 98% $39,862 $42,964 $18,260 $9,414 $3,935 51.6% 21.5% 2.4x 10.9xTyco International, Ltd. TYC $29.25 50% $13,572 $17,358 $10,525 $3,810 $1,287 36.2% 12.2% 1.6x 13.5x

Average 88% $65,338 $73,745 $53,551 $17,211 $8,917 36.9% 17.6% 1.7x 9.8x

Median 95% $69,747 $83,285 $43,806 $14,887 $8,007 33.3% 16.8% 1.7x 9.8x




21Source: Capital IQ

Materials($ in millions, except per share)

Chemicals

Metals and Mining

Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAThe Dow Chemical Co. DOW $32.33 90% $37,859 $59,858 $56,966 $8,860 $6,635 15.6% 11.6% 1.1x 9.0xE.I. du Pont de Nemours and Co. DD $44.98 78% $42,379 $50,040 $34,812 $9,920 $5,917 28.5% 17.0% 1.4x 8.5xMonsanto Company MON $94.65 100% $51,106 $48,475 $14,004 $7,352 $4,102 52.5% 29.3% 3.5x 11.8xPraxair, Inc. PX $109.45 94% $33,037 $40,851 $11,224 $4,828 $3,503 43.0% 31.2% 3.6x 11.7xPotash Corp. of Saskatchewan, Inc. POT $40.61 84% $35,573 $39,150 $7,683 $3,714 $3,849 48.3% 50.1% 5.1x 10.2xAir Products & Chemicals, Inc. APD $84.02 91% $18,012 $24,064 $9,853 $2,623 $2,375 26.6% 24.1% 2.4x 10.1xThe Sherwin-Williams Co. SHW $153.82 96% $16,001 $16,916 $9,383 $4,097 $1,142 43.7% 12.2% 1.8x 14.8xEastman Chemical Co. EMN $68.05 100% $9,850 $14,598 $7,656 $1,787 $1,413 23.3% 18.5% 1.9x 10.3xCelanese Corp. CE $44.53 85% $7,116 $9,202 $6,418 $1,192 $569 18.6% 8.9% 1.4x 16.2xW.R. Grace & Co. GRA $67.23 98% $5,111 $4,946 $3,183 $1,151 $574 36.2% 18.0% 1.6x 8.6x

Average 91% $25,604 $30,810 $16,118 $4,552 $3,008 33.6% 22.1% 2.4x 11.1x

Median 92% $25,524 $31,607 $9,618 $3,905 $2,939 32.3% 18.2% 1.9x 10.3x


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDABarrick Gold Corp. ABX $34.93 69% $34,968 $48,957 $14,196 $6,943 $6,832 48.9% 48.1% 3.4x 7.2xFreeport-McMoRan Copper & Gold, Inc. FCX $34.20 70% $32,627 $36,217 $18,010 $7,628 $6,934 42.4% 38.5% 2.0x 5.2xSouthern Copper Corp. SCCO $37.86 96% $31,829 $33,056 $6,687 $3,974 $3,823 59.4% 57.2% 4.9x 8.6xGoldcorp, Inc. GG $36.70 70% $30,995 $31,009 $5,515 $3,226 $2,986 58.5% 54.1% 5.6x 10.4xNewmont Mining Corp. NEM $46.44 72% $23,336 $30,983 $10,157 $5,902 $4,602 58.1% 45.3% 3.1x 6.7xAlcoa, Inc. AA $8.68 79% $9,344 $19,691 $23,700 $3,214 $2,022 13.6% 8.5% 0.8x 9.7xUnited States Steel Corp. X $23.85 73% $3,440 $6,810 $19,328 $1,698 $1,044 8.8% 5.4% 0.4x 6.5xWalter Energy, Inc. WLT $35.88 47% $2,241 $4,466 $2,616 $794 $651 30.3% 24.9% 1.7x 6.9x

Average 72% $21,098 $26,399 $12,526 $4,172 $3,612 40.0% 35.3% 2.7x 7.7x

Median 71% $27,166 $30,996 $12,177 $3,600 $3,405 45.6% 41.9% 2.5x 7.0x




22Source: Capital IQ

Materials($ in millions, except per share)

Paper and Forest Products

Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAInternational Paper Co. IP $39.84 100% $17,538 $27,036 $27,833 $7,246 $3,377 26.0% 12.1% 1.0x 8.0xMeadWestvaco Corp. MWV $31.87 98% $5,647 $7,148 $5,459 $1,130 $811 20.7% 14.9% 1.3x 8.8xDomtar Corp. UFS $83.52 83% $3,057 $3,682 $5,524 $1,222 $868 22.1% 15.7% 0.7x 4.2xResolute Forest Products, Inc. RFP $13.24 82% $1,296 $1,722 $4,522 $1,051 $397 23.2% 8.8% 0.4x 4.3x

Average 91% $6,884 $9,897 $10,835 $2,662 $1,363 23.0% 12.9% 0.8x 6.3x

Median 90% $4,352 $5,415 $5,492 $1,176 $839 22.7% 13.5% 0.8x 6.2x


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