2026E 2027E 2028E 2029E 2023E 3,684 10396 796 2024E 4,045 10196 1096 2025E 4,258 9596 596 096 096 096 096 -100% na 244 Activision Blizzard (ATVI) 245 (SMillions, except where noted) 246 2019 2020E 2021E 2022E 247 UNLEVERED FREE CASH FLOW TO THE FIRM 2,581 2,823 3,253 3,448 248 Percent of EBITDA 11796 11096 11096 10196 249 Y Growth 996 1596 696 250 251 (3) Use a discount rate to calculate the Net Present Value of the Free Cash Flow to the Firm (FCFF) 252 253 Activision Blizzard (ATVI) ( 254 (SMillions, except where noted) 255 2019 2020E 2021E 2022E 256 Year 0 1 2 3 257 Unlevered Free Cash Flow 2,581 2,823 3,253 3,448 258 Discount Rate 10% 10% 10% 10%) 259 Present Value of Unlevered Free Cash Flows 2,581 2,566 2,688 2,591 260 261 (3) Add the present value of the forecast cash flows to produce the Net Present Value (NPV). 262 263 Add up the values in row 259 to calculate the Net Present Value of Free Cash Flows to the Firm. 264 NET PRESENT VALUE OF FREE CASH FLOWS TO THE FIRM 17,857 265 266 (5) Calculate the Terminal Value 2028E 2023E 4 2025E 6 2026E 7 2027E 8 2029E 10 9 3,684 10% 2,516 2024E 5 4,045 10% 2,512 4,258 10% 2,403 " 2026E 2027E 2028E 2029E 2023E 3,684 10396 796 2024E 4,045 10196 1096 2025E 4,258 9596 596 096 096 096 096 -100% na 244 Activision Blizzard (ATVI) 245 (SMillions, except where noted) 246 2019 2020E 2021E 2022E 247 UNLEVERED FREE CASH FLOW TO THE FIRM 2,581 2,823 3,253 3,448 248 Percent of EBITDA 11796 11096 11096 10196 249 Y Growth 996 1596 696 250 251 (3) Use a discount rate to calculate the Net Present Value of the Free Cash Flow to the Firm (FCFF) 252 253 Activision Blizzard (ATVI) ( 254 (SMillions, except where noted) 255 2019 2020E 2021E 2022E 256 Year 0 1 2 3 257 Unlevered Free Cash Flow 2,581 2,823 3,253 3,448 258 Discount Rate 10% 10% 10% 10%) 259 Present Value of Unlevered Free Cash Flows 2,581 2,566 2,688 2,591 260 261 (3) Add the present value of the forecast cash flows to produce the Net Present Value (NPV). 262 263 Add up the values in row 259 to calculate the Net Present Value of Free Cash Flows to the Firm. 264 NET PRESENT VALUE OF FREE CASH FLOWS TO THE FIRM 17,857 265 266 (5) Calculate the Terminal Value 2028E 2023E 4 2025E 6 2026E 7 2027E 8 2029E 10 9 3,684 10% 2,516 2024E 5 4,045 10% 2,512 4,258 10% 2,403