Good morning. My name is Deborah Taylor and I'm an MD within Equity Capital Markets. I'm really pleased to have you joining our team, and we're really looking forward to working with you. It's actually a great time to be joining the team as we are currently working on a really interesting project for one of our clients, a I Inc, which manufactures specialty alloys and components used across the aerospace and oil and gas industries. As a bit of background, the company has had some challenges over the last few years, which led to them restructuring their business in 2023. Now, shortly after this, they decided to increase investment in their best performing segments, the high performance Materials and components division. However, the CEO is not convinced that the company's current share price fully reflects these recent strategic changes. He therefore wants us to prepare some valuation analysis for the board to review.

Now, in terms of your task for today, I would like you to build a standalone DCF valuation of the company using eight year free cash flow forecasts and using the growth perpetuity formula for calculating terminal value.

You should use your DCF to calculate the company's implied share price and the implied EV to FY one EBITDA multiple. Now, you don't need to build a full three statement model for this task. You just need to forecast the line items needed for calculating free cash flow. However, you should monitor invested capital growth and return on invested capital throughout your forecasts to help you sense check your valuation.

Now, the CEO has given me lots of guidance on management expectations during a recent meeting, so I've copied these notes into a memo along with some guidance on our team's DCF methodology to help you build your forecasts. Now, this memo and A DCF template are available on our team's shared drive. When building your DCF, please use latest published annual results in your analysis, so it's as up to date as possible. One final thing to mention is that I'm a bit of a stickler when it comes to invested capital in DC Fs. If the invested capital growth rate in your final forecast year differs to the growth rate used in your terminal value, please be prepared to explain how this impacts your valuation. Also, if your return on invested capital is increasing or decreasing during your forecasts, please be prepared to explain why this is now. I expect this work to take you about an hour, so please drop me an email when it's ready for review. Thanks so much and I'll catch up with you later. Bye.