*** USE THIS NEW "MEAN" GROWTH RATE FORECAST TO GROW HDS CASHFLOWS FOR 2022 AND 2023. THEN 3% AFTER THA HD Supply Holdings Inc HDS 2021 and 2022: Mean growth est 13.40% Annual Earnings Estimates HDS 2023 and 2024: Use 6% 2025: use 3% 2026 and forward: USE A CONSTANT GROWTH RATE OF 2% 01/2021 Growth 01/2022 Growth USD USD High 2.13 -21.4 2.45 15.0 Low 1.60 -41.0 2.05 28.1 Mean 1.94 -234 2.20 13.4 --YOUR ESTIMATES SHOULD BE BASED ON THE NUMBERS IN THE TABLE ABOVE FOR 2020-01, adjusted for GROWTH 2.09 2.5 2.09 1.5 16.1 2.95 18) YOUR ESTIMATES FOR THE FUTURE -- FILL IN THE TABLE FOR YEARS ENDING 2021-01, 2022, 2023, 2024 30 Days Ago 2.04 -24.7 60 Days Ago 2.06 -24.0 90 Days Ago 2.54 Number of Estimates 2 Data as of last Friday 2 3 4 5 2023-01 2024-01 2025-01 2026-01 1 6. 1 2021-01 2022-01 2020-01 FILLS IN FROM ABOVE 571 647.51 734.28 778.34 825.04 849.79 866.78 13% 13% 6% 6% 3% 2% (----- percentage grov 19) CALCULATE NET PRESENT VALUE: -> horizon value (USE FCF/(WACC - GROWTH RATE) plus free cash flows 648 734 778 equals total cash flows 647.51 734.28 778.34 14944.57 825 850 825.04 15794.36 pv equivalents WACC FROM PREV SHEET ---> 7.08% NET PRESENT VALUE - $0 0 1 $0.00 2 $0.00 3 $0.00 4 $0.00 5 $0.00 20) CALCULATE IRR: IRR ---> 21) WAS HD WISE TO TAKE ON THIS PROJECT (EXPLAIN) 22) WHAT IS THE IRR IF HDS ONLY GROWS BY 2.5% THROUGH TIME=5 -- THEN 1% AFTER -- NOTE THAT THIS IS HOW FAST ANALYSTS THOUGHT THEY WOULD GROW JUST 30 DAYS *** USE THIS NEW "MEAN" GROWTH RATE FORECAST TO GROW HDS CASHFLOWS FOR 2022 AND 2023. THEN 3% AFTER THA HD Supply Holdings Inc HDS 2021 and 2022: Mean growth est 13.40% Annual Earnings Estimates HDS 2023 and 2024: Use 6% 2025: use 3% 2026 and forward: USE A CONSTANT GROWTH RATE OF 2% 01/2021 Growth 01/2022 Growth USD USD High 2.13 -21.4 2.45 15.0 Low 1.60 -41.0 2.05 28.1 Mean 1.94 -234 2.20 13.4 --YOUR ESTIMATES SHOULD BE BASED ON THE NUMBERS IN THE TABLE ABOVE FOR 2020-01, adjusted for GROWTH 2.09 2.5 2.09 1.5 16.1 2.95 18) YOUR ESTIMATES FOR THE FUTURE -- FILL IN THE TABLE FOR YEARS ENDING 2021-01, 2022, 2023, 2024 30 Days Ago 2.04 -24.7 60 Days Ago 2.06 -24.0 90 Days Ago 2.54 Number of Estimates 2 Data as of last Friday 2 3 4 5 2023-01 2024-01 2025-01 2026-01 1 6. 1 2021-01 2022-01 2020-01 FILLS IN FROM ABOVE 571 647.51 734.28 778.34 825.04 849.79 866.78 13% 13% 6% 6% 3% 2% (----- percentage grov 19) CALCULATE NET PRESENT VALUE: -> horizon value (USE FCF/(WACC - GROWTH RATE) plus free cash flows 648 734 778 equals total cash flows 647.51 734.28 778.34 14944.57 825 850 825.04 15794.36 pv equivalents WACC FROM PREV SHEET ---> 7.08% NET PRESENT VALUE - $0 0 1 $0.00 2 $0.00 3 $0.00 4 $0.00 5 $0.00 20) CALCULATE IRR: IRR ---> 21) WAS HD WISE TO TAKE ON THIS PROJECT (EXPLAIN) 22) WHAT IS THE IRR IF HDS ONLY GROWS BY 2.5% THROUGH TIME=5 -- THEN 1% AFTER -- NOTE THAT THIS IS HOW FAST ANALYSTS THOUGHT THEY WOULD GROW JUST 30 DAYS