The evaluation of GlobalCo's interpretation has been completed, as shown in Annex 1.

The evaluation assumes that GlobalCo. will immediately adjust its capital structure to maintain a target debt-to-value ratio of 18%. Under the assumption of other evaluation input values, the evaluation results of the enterprise's DCF, EVA, APV, CCF and CFE models are the same, and the value of each equity interest is $58.5.

Trial:

Assume that GlobalCo.'s capital structure policy is to adjust the capital structure at the beginning of each year to return to the target debt-to-value ratio of 18%. Other assumptions remain unchanged, please re-evaluate GlobalCo.

If the ending balance of interest-bearing liabilities on the historical balance sheet Year -1 is not equal to the amount of interest-bearing liabilities under the target leverage, assuming that GlobalCo. will immediately adjust to the most appropriate amount of interest-bearing liabilities at the beginning of Year 1. Therefore, the interest tax shield cash flow, cash flow of interest-bearing liabilities (CFD) and cash flow of equity (CFE) for the first year, please use the adjusted amount of interest-bearing liabilities and equity as the basis for forecasting.

a.Please independently evaluate the enterprise's DCF, EVA, APV, CCF and CFE models. That is, when a specific evaluation mode is used for evaluation, the evaluation results of other modes shall not be used as input values. Please list in detail the forecast cash flow and estimated capital cost of each evaluation model for each year,

b.Please adjust the consistency of the above five evaluation models to verify that the enterprise values estimated by various methods at the beginning of Year 1 (evaluation time) and the end of Year 1, Year 2 and Year 3 are equal.

\fGlobalCo: Forecast of Interest Tax Shields $ million Year 1 Year 2 Year 3 Continuing value Prior-year net debt1 $12,334 $13,757 $14,554 $15.1 32 Interest rate 4.5% 4.5% 4.5% 4.5% Expected interest payment 577.5 6 19 .1 65 4.9 633 2 Marginal tax rate r 20.0% r 20.0% r 20.0% r 200% Interest lax shields 5 116 $124- 313 1 $137 Note: 1. Total debt net of excess cash. GlobalCo: Total Debt Under Target Capital Structure Year I] Year 1 Year 2 Year 3 Enterprise value at the end of year $71,301 $76,427 $30,353 $34,345 Target total d ebttn-value ratio 13.0% 13.0% 13 .0 % 1 3.0% Projected total debt at the end of year $12,334 $13,757 $14,554 $15.1 32 GlobalCo: Projected Cash Flow To Equity (CFE) $ million Year 1 Year 2 Year 3 Net income $3,800 $4,073 $4,134 Depreciation 3,002 3,452 3,797 Gross cash ow 6,802 7,525 7,932 Decrease [increase) in operating working capital [501) [384) [211] Less: Capital expenditures, net of disposal [6.004) (5,754) [5,063] Nonoperating cash flow 0 0 0 Increase (decrease) in short-term debt 450 345 190 Increase (decrease) in long-term debt 472 451 439 Cash ow to equity holders [CF E] $1,219 $2,183 $3,286 Reconciliation of cash ow to equity Cash dividends 1,520 1,629 1,654 Repurchased [issued) shares [301) 554 1,632 Cash ow to equity holders [CF E] $1,219 $2,183 $3,286 GlobalCo: Valuation Using Discounted Economic Profit Economic Discount Presentvalue of - 1 R016 WACC Invested mono] prot factor economic prot Year 1 $26,356 16.17% 8.25% $2.087 0.924 $1,927 Year 2 29,859 15.30% 8.25% 2,103 0.853 1,795 Year 3 32.5 45 14.3 1% 8.25% 1.9 72 0.788 1,555 Continuing value 8.25% 50.323 0.788 39 ,6 6!! Present value of economic prot 44,945 Invested capital including goodwill in Year 1 26356 Value of operations 71301 Value of nonoperaiirlg assets 0 Enterprise value 71301 less: Value of debt [12334) less: Value of debt equivalents 58,467 less: Value of nonoontrolling interests Equity value 58,467 Shares outstanding, millions 1,000 Equity value per share $58.5 Note: 1. Invested capital measured at the beginning of the year with goodwill and acquired intangibles