Koppers, Inc. Rating: (NYSE: KOP) BUY

USF STUDENT MANAGED INVESTMENT FUND Equity Research February 19, 2021 Koppers, Inc. Rating: (NYSE: KOP) BUY

Company Overview Analysts Koppers is one of the leading firms in the Specialty Robert Camejo, [email protected] Chemicals industry. The firm is an integrated global Rafael Nobre, [email protected] producer of carbon compounds, chemicals, and treated Aravind Thota, [email protected] wood products for the aluminum, railroad, specialty Mark Zevallos, [email protected] chemical, utility, rubber, steel, residential lumber, and agriculture industries. The firm operates in three main Investment Metrics business segments which are railroad and utility products Current Price (Feb-17-21) $35.34 and services (RUPS), carbon materials and chemicals Target Price $50.08 (CMC), and performance chemicals (PC). Intrinsic Value $49.36 Investment Thesis Market Discount 38.76% • Koppers is global leader in oil and water-borne 52 Week Range $8.25 - $36.79 preservatives providing to many market applications for treated wood and is positioned to gain market share. Market Data • Koppers has solid cash flow generation to optimize Sector: Materials capital structure and reduce debt. This will allow the firm Industry: Chemicals to fuel more inorganic growth opportunities in the wood Headquartered: Pittsburgh, PA preservatives market as they plan to expand their Employees: 2,120 portfolio. CEO: Leroy M. Ball • Koppers has also been flying under the radar, and we believe that it is currently trading at an attractive CFO: Michael J. Zugay valuation compared to the historical and market Market Cap: 746.2M multiples. Beta: 1.70 Investment Performance Valuation Metrics

240.00% 2019A 2020E 2021E KOP S&P 500 DJSCX Diluted EPS 190.00% $3.16 $4.04 $4.50

140.00% P/E Ratios 11.91X 8.70X 9.70X 90.00% EV/EBITDA

40.00% 8.07X 7.26X 6.59X Revenue (mil.) -10.00% $1,772 $1,669 $1,726 EBITDA Margin % -60.00% 2/19/2016 2/19/2018 2/19/2020 10.51% 13.13% 13.42%

February 19, 2021 USF Student Managed Investment Fund 1 Company Overview

Koppers Holdings, Inc. (KOP) has established a strong market position through the provision of treated wood products, wood treatment chemicals, and carbon compounds in various niche markets. The firm currently serves its products and services through a very comprehensive global manufacturing and distribution network with various facilities located in the North American, Australasian, South American, and European markets. The company’s three business segments, RUPS, PC, and CMC, are inter-linked to a substantial extent. RUPS and CMC are vertically integrated with the CMC business focusing on the processing of coal into variety of products, mainly creosote, which is the intermediary material that is necessary for pressure treatment of wood cross-ties and other related railroad products supplied by the RUPS business segment. The PC segment is also vertically integrated with the production of chromated copper arsenate that is used for the pressure treatment of utility poles and pilings.

Railroad and Utility Products and Services (RUPS) is one of its main business segments that primarily focuses on selling treated and untreated woods products, rail joint bars, and services to railroad and utility markets in the United States and Canada as well as Australia. Most of the railroad products and services consist of procuring and treatment of crossties, switch ties and, various types of lumber for bridges and crossing. The RUPS segment is currently ranked as the number one or two market position with a 1-3% expected growth.

Performance Chemicals (PC) segment maintains the manufacturing and sales of copper-based wood preservatives, including micronized copper quaternary, copper azole, pigments, alkaline copper quaternary, amine copper azole, and chromated copper arsenate. These chemicals are primarily are used for decking, fencing, utility poles, construction lumber and timbers, and vineyard stakes. The firm’s PC segment is currently ranked number one position in the market with an expected 2- 4% growth.

Carbon Materials and Chemicals (CMC) business segment primarily focuses on the manufacturing of creosote used for the treatment of wood or as feedstock in the production of the carbon black, carbon pitch, which is a critical raw material to produce aluminum and steel, naphthalene that is used as feedstock for the production of their final product, phthalic anhydride which is used to produce plasticizers, polyester resins, and alkyd paints. All principal products listed above are produced by the distillation of coal tar. The company’s three coal tar distillation facilities and five carbon materials terminals provides the ability to give customers multiple sourcing options and consistent supply of high-quality products. CMC is currently ranked as the number one or two position in the market with an expected growth of 1-3%.

February 19, 2021 USF Student Managed Investment Fund 2 Railroad and Utility Products & Services

Koppers is a world leader in the manufacturing of pressure-treated wood products used primarily for the railroad and electric/communications industries. The RUPS business’ largest customer base is the North American (NA) Class I railroad market, which buys approximately 70% of all crossties produced in the United States and Canada. Approximately 70% of Koppers’ North American RUPS sales are under long-term contracts and currently supply all NA Class I railroads. Class I railroads and transit agencies take advantage of reduced track time which allows the firm to continue their expedited maintenance programs providing earlier purchases and demand than usual. Furthermore, RUPS is the largest segment of Koppers making up about 45% of revenues in which there is expected substantial growth as railroads remain to be the most prominent and efficient way for transporting goods in North America. For utility poles, nearly half of the installed base is over 40 years old which Koppers indicates will escalate future growth.

February 19, 2021 USF Student Managed Investment Fund 3 Railroad and Utility Products & Services

The freight transportation services index provided by the Bureau of Transportation Statistics acts as measure for freight volume and is an indicator of the general state of the economy. The indicator shows that levels of transportation quickly returned to pre-COVID levels as of 12/1/2020 showing the resiliency of the U.S. economy. IBISWorld expects a long-term 2.58% CAGR through 2026, showing positive outlook for the railroad industry.

Another factor for growth in their RUPS business is the fact that most of the wooden utility poles in North America were erected before 1960 and are due for replacement based on their almost 60-year age. We are seeing an increase in replacement demand as the average age of poles is very high. An Electric Power Research Institute study suggested that wood poles last about 50 years and that most utilities assume that their poles provide 30 to 40 years of service life. With over half the installed poles having an average age of 40, we expect repairs to grow in the future.

Catalyst Summary

• Aging utility poles due • A growing freight • Biden’s “Build Back for replacement transportation services Better” plan has an trend means an emphasis on increase of infrastructure spending maintenance requirements for railroad crossties

February 19, 2021 USF Student Managed Investment Fund 4 Performance Chemicals

Product demand in the Performance Chemical segment has historically been closely associated with consumer spending on home repair and remodeling projects, and therefore trends in existing home sales serve as a leading indicator – the National Association of Realtors shows data for this. Since September 2020, existing home sales has consistently been above 20% year over year. With mortgage rates lower than they were in fall of 2020, opportunity to take advantage of the current market remains available.

Another promising indicator for the PC segment is the Leading Indicator of Remodeling Activity (LIRA) reported by the Joint Center for Housing Studies of Harvard University. This indicator shows an outlook of national home improvement and repair spending to owner- occupied homes. LIRA expects 2021 remodeling activity to increase by $47B or 3.51% from $1,338B in 2020 to $1,385B in 2021. This further supports the growth in the PC segment.

February 19, 2021 USF Student Managed Investment Fund 5 Carbon Materials and Chemicals

The Carbon Materials and Chemicals segment is responsible for manufacturing the following products: ▪ Creosote, a coal tar distillate, is a cost-efficient and integral part of North America's transportation industry. Railroad crossties that are pressure treated with creosote have a service life of 35 to 40 years, making it an economical and reliable product for the railroad industry. Creosote is also widely used in the utility pole business. This market is expected to maintain stable demand. ▪ Carbon pitch is an important raw material in the production process for aluminum and for the production of steel in electric arc furnaces. Koppers has been a leading supplier of carbon pitch to the aluminum industry for over 80 years, which enable smelters to produce this metal efficiently and economically. According to a 360 Market Updates report, the carbon pitch market is estimated to grow at a 3.9% CAGR through 2026. ▪ Naphthalene is primarily used for the production of phthalic anhydride. Additional end-uses for it include naphthalene sulfonates used in certain concrete additives, drywall, and synthetic tanning agents. According to Market Research Future, the global naphthalene market is expected to grow at a 3.5% CAGR through 2025. ▪ Major end-use markets of phthalic anhydride include phthalate plasticizers, polyester resins, and alkyd resins for coating applications. Other uses include the manufacture of dye intermediates and pigments, polyester polyols and flame-retardants. According to BCC Research, the phthalic anhydride market is expected to grow at a 5.03% CAGR through 2026.

A more profitable path ahead In 2019 the company finalized its consolidation plan, which consisted of closing plants such as the most recent sale of KJCC, the Jiangsu CMC plant. This consolidation reduces the company's global distillation assets to only three facilities (Illinois, Denmark, and Australia) and is expected to help the company increase margins. Koppers Holdings is looking to improve the efficiency of its operations and close existing facilities that are in less than full utilization. By doing this, the company is likely to benefit from economies of scale and keep facilities only where it holds a competitive advantage. Furthermore, these changes match with the company strategy in reducing dependency on typically cyclical industries tied to oil and aluminum.

February 19, 2021 USF Student Managed Investment Fund 6 Vertical Integration

Gain in Leading Market Position Through Acquisitions Koppers Holdings, Inc. acquired Wood Preservation and Railroad Services businesses of Osmose Holdings, Inc. in 2014. The acquisition of the two Osmose businesses fueled the firm’s pertinent growth within the basic materials industry today. The businesses aided in the expansion of the chemical offerings and the existing railroad and utilities products and services platform as well as provided additional growth opportunities. The Wood Preservation business, now known as PC, is the global leader in developing, manufacturing, and marketing of wood preservation chemicals and wood treatment technologies. The Railroad Services business, now known as Koppers Railroad Structures, is the leading provider of railroad infrastructure services, including bridge inspection, engineering, maintenance and repair, and construction services for the Class I and short line railroads in North America.

Moreover, in 2018, Koppers acquired Cox Industries, Inc. which is now renamed to Utility and Industrial Products Inc. (UIP). UIP manufactures and sells its treated wood poles and pilings through eight manufacturing facilities and 19 distribution yards located throughout the United States. The firm has also acquired M.A. Energy Resources, LLC (MAER), now known as Koppers Recovery Resources LLC (KKR), which is a vertically integrated firm that provides material recovery services for crossties that have been taken out of service and other biomass material. All acquisitions made by Koppers has provided the firm the ability to sustain its leading market position and enhance its vertically integrated platform.

Railroad and Utility Products & Services

Carbon Performance Materials and Chemicals Chemicals

Superior Supply Chain and Production Koppers Holdings has made strategic acquisitions throughout the years and has been able to vertically integrate its production. This represents a significant advantage in the specialty chemicals sector, since most of the time, companies need to buy raw products from multiple suppliers, and they can use their bargain power to extract higher prices from the companies. The carbon materials and chemicals and performance chemicals segments produces byproducts and wood preservatives that the company is able to use in the Railroad and Utility Products & Services to produce and sell treated wood to the final customers. This has allowed them to manage some of their costs better and act as a competitive advantage. We also see some vertical integration in their PC segment due to their manufacturing capabilities for copper compounds for their copper-based wood preservatives.

February 19, 2021 USF Student Managed Investment Fund 7 Global Position

Market Position Koppers’ main competitor is Stella-Jones, Inc, another producer of pressure-treated wood products. Stella Jones made $2,169M in sales in 2019, growing at a rate of 2.11% annually. Koppers made $1,723M in sales in 2019 but grew at a faster rate of 3.66% annually, meaning that Koppers was likely making market share gains. Stella-Jones only operates in North America and is less vertically optimized as Koppers. Overall, Koppers is unique due to its ability in obtaining internally-sourced chemicals and has better access to customers and sources for raw materials due to their global presence.

The North American market for railway ties is consolidated and can utilize a growth rate in line with gross domestic product. The global railway ties market is expected to grow at a 3.6% CAGR through 2024 according to Fior Markets.

Railroad and Utility Performance Carbon Materials and Products and Chemicals Chemicals Services (RUPS) (PC) (CMC) • Market Position #1 • Market Position #1 • Market Position #1 or #2 • Industry Growth 4% or #2 • Industry Growth 3% • Industry Growth 3%

February 19, 2021 USF Student Managed Investment Fund 8 Koppers Strategy

Corporate Strategy Koppers has successfully transitioned from a business built on producing carbon pitch that complements the aluminum industry to an enterprise centered on the preservation and enhancement of wood. Koppers aims to focus on wood treatment and protection technology by investing in capacity to serve increased demand of copper-based wood preservative products and its distribution. Koppers aims to maintain its market dominance in niche markets with few sizeable competitors. Externally, Koppers pursues growth opportunities through acquisitions primarily in wood related markets.

Balance Sheet & Cash Flow

Koppers’ focuses on reaching a long-term net leverage ratio of 2-3x and the company plans to achieve this by putting a strong emphasis on debt reduction. Koppers even had a record debt pay down of $131.5M in 2020. The net leverage ratio has also been decreasing steadily since 2018 and the company has made good progress with a 2019 Q1 net leverage of 5.1 to a 3.5 net leverage in 2020 Q4. The main reason for the high leverage was due to two acquisitions in 2018 which allowed the company to improve the vertical integration of their business. Koppers also has solid cash flow generation as well as improving EBITDA which has allowed it to fuel their debt reduction. The firm had a record year in cash generation as well as EBITDA margins which allowed them to make the large paydown in 2020.

Net Leverage Ratio

5.85

4.66 4.06 3.36 2.80 2.19

2017A 2018A 2019A 2020E 2021E 2022E

February 19, 2021 USF Student Managed Investment Fund 9 Valuation

Valuation Methods For our valuation of Koppers, we conducted three different valuation methods, assigning each method to a weight to arrive out our price target of $50.08. We conducted a P/E and EV/EBITDA valuation as well as a discounted cash flow model which used a WACC of 7.51%, a beta of 1.70, tax rate of 22%, terminal growth rate of 2.20%, and a debt-to-capital ratio of 72.19% to get an intrinsic value of $51.69 which indicates that Koppers is trading at a 36.78% discount to the market.

Intrinsic Value Calculations Assumptions Terminal Value of Unlevered FCF $1,661 Terminal Growth Rate 2.20% Risk Free Rate 1.30% Net Present Value of FCF $618 Tax Rate 22.00% Present Value of Terminal FCF $1,164 Expected Market Return 10.00% Enterprise Value $1,782 Market Risk Premium 8.71% (+) Cash & Cash Equivalents $38.5 Beta 1.7086 Ke 16.17% (-) Debt $779.5 Debt/ Capital Ratio 72.51% Equity Value $1,040.71 Equity/Capital Ratio 27.49% Shares Outstanding 21.08 Debt $779.5 Equity $295.5 Intrinsic Value $49.36 Kd 5.42% Market Discount 36.78% After Tax Cost of Debt 4.23% Implied Market Cap ($M) $1,041 WACC: 7.51%

DCF Today 2020E 2021E 2022E 2023E 2024E 2025E Fiscal Year end date 2/2/2021 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Discount Factor 0.09 0.91 1.91 2.91 3.91 4.91

Operating Profit $169.4$163.2 $181.8$170.2 $204.0$186.7 $208.5$195.1 $212.8$203.9 $216.9$213.1

Tax Rate 22.00% 22.00% 25.00% 25.00% 25.00% 25.00% NOPAT $132.12$127.31 $141.80$132.72 $153.02$140.03 $156.36$146.31 $159.58$152.90 $162.66$159.80 (+)D&A $56.15 $56.55 $56.06 $58.11$58.12 $60.18$60.21 $62.30$62.36 (-)Capex ($69.80) ($67.03) ($69.61) ($72.29)($72.42) ($75.07)($75.34) ($77.96)($78.38) (+) Change in NWC $14.18$14.11 ($11.80)($11.81) $4.26 ($31.98)($31.49) $3.03$3.49 ($21.31)($20.61) Unlevered FCF $132.65$127.77 $119.52$110.42 $143.73$130.75 $110.19$100.52 $147.72$141.25 $125.68$123.16 PV of Free Cash Flows $656.81$618.21 $131.80$126.95 $111.83$103.35 $125.04$113.83 $89.14$81.40 $111.11$106.39 $87.90$86.29

WACC $49.36 7.0% 7.5% 8.0% 8.5% 9.0% 1.0% $45.07 $38.78 $33.44 $28.86 $24.90 Terminal 1.5% $49.94 $42.73 $36.69 $31.57 $27.18 growth 2.0% $55.79 $47.41 $40.49 $34.70 $29.78 2.5% $62.93 $53.02 $44.98 $38.34 $32.78 3.0% $71.86 $59.87 $50.36 $42.65 $36.28

February 19, 2021 USF Student Managed Investment Fund 10 Valuation

EV/EBITDA and P/E Multiple We also conducted valuation using earnings and EBITDA multiples that were derived from the forecasted Bloomberg multiples of its closest peers. Doing a comparative analysis on Koppers Holdings competitors and the industry and forecasted Koppers's multiples to slowly regress towards the mean multiples for the specialty chemicals industry in America, resulted in a 20x P/E and a 11x EV/EBITDA. Taking this into account, we forecasted an increasing P/E multiple and a decreasing EV/EBITDA multiple which was more in line with industry trends. In our base case scenario for 2022, assuming an EV/EBITDA multiple of 6.3x and an expected EBITDA of $272 million, we get an implied share price of $57.81 indicating 60.19% upside. We also forecast a $52.94 implied share price using a P/E multiple of 10.7x with our expected 2022 diluted EPS in the base case representing a upside of 46.70%.

EV/EBITDA 2020E 2021E 2022E Bear Base Bull Bear Base Bull Bear Base Bull Adj. EBITDA $221 $230 $240 $228 $238 $248 $244 $255 $265 EV/EBITDA 6.96x 7.26x 7.56x 6.31x 6.59x 6.87x 6.04x 6.30x 6.56x

EV $1,534 $1,672 $1,815 $1,440 $1,568 $1,703 $1,472 $1,604 $1,741 (-) Debt -$770 -$770 -$770 -$759 -$759 -$759 -$749 -$749 -$749 (+) cash $41 $41 $41 $133 $133 $133 $227 $227 $227 Market Cap $806 $944 $1,087 $814 $943 $1,077 $950 $1,082 $1,219

Shares outstanding 21 21 21 21 21 21 21 21 21

Implied Stock Price $38.27 $44.79 $51.60 $38.62 $44.74 $51.12 $45.09 $51.35 $57.88 Current Price $36.09 $36.09 $36.09 $36.09 $36.09 $36.09 $36.09 $36.09 $36.09 Upside 6.03% 24.11% 42.97% 7.00% 23.96% 41.65% 24.95% 42.29% 60.38%

P/E 2020E 2021E 2022E Bear Base Bull Bear Base Bull Bear Base Bull P/E 8.33x 8.70x 9.07x 9.29x 9.70x 10.11x 10.25x 10.70x 11.15x EPS $3.87 $4.04 $4.21 $4.31 $4.50 $4.69 $4.74 $4.95 $5.16 Implied Stock Price $32.26 $35.15 $38.17 $40.09 $43.68 $47.43 $48.59 $52.94 $57.48 Current Price $36.09 $36.09 $36.09 $36.09 $36.09 $36.09 $36.09 $36.09 $36.09 Upside -10.61% -2.60% 5.75% 11.08% 21.03% 31.41% 34.63% 46.70% 59.28%

February 19, 2021 USF Student Managed Investment Fund 11 Risks

High Debt levels One of the main risks that we see with Koppers is its high debt levels. This overall increases the Koppers’s vulnerability to general economic and industry conditions, as well as restricts them from making acquisitions or obtaining additional financing for working capital. The company currently has $770 million in debt compared to their current assets of $511.1 million. Koppers is currently operating at a Debt-to-equity ratio of 2.71 and a net leverage ratio of 4.66 which management has targeted a net leverage ratio of 2-3x. Management has recognized this risk and has assured investors that their main use of cash flow will be in debt reduction and has even paid down $131 million in 2020. The main reason for these levels was a result of the two acquisitions in 2018 with a large majority due in 2024 and 2025.

Fluctuations in Input prices Koppers’s operations depend on an adequate supply of raw materials being available on a timely basis. Any disruptions in this supply or delay of shipment could cause a significant increase in operating expenses. An example is the freight transportation services that they use to deliver raw materials to their facilities and finished goods to customer. Interruptions in such freight services could impair the firm’s ability to receive those materials. Some of these main inputs are costs of lumber, costs of scrap copper for their copper-based wood preservation chemicals for their PC business, coal tar prices, and phthalic anhydride prices. Margins can be affected depending on different market positions and if Koppers is not successful in passing through their costs.

Cyclical Markets Koppers’s products are primarily sold into markets which have been historically cyclical, such as wood preservation, aluminum, and specialty chemicals. Its wood preservation segment is mainly used in many residential applications, so a decline in remodeling and construction could reduce demand for those products as well as a decline in capital spending requirements for railroads and utility companies. Remodeling and construction is also related to some of its chemical products like phthalic anhydride which is used in the housing and automobile industries. Management has stated that they are working to move away from these highly cyclical industries tied to oil and aluminum and that is seen with some of the divestures of its coal plants.

Adverse weather conditions or natural disasters Koppers’s quarterly operating results fluctuate due to a variety of factors that are outside of the firm’s control, including inclement weather conditions, which in the past have caused a decline in the operating results. For example, adverse weather conditions have negatively impacted Koppers’s supply chain as wet conditions impacted logging operations and reducing its ability to produce crossties. Natural disasters, including wildfires, hurricanes, and earthquakes could affect revenue and operating results, as it can disrupt the supply of raw materials or damage their facilities or manufacturing equipment.

February 19, 2021 USF Student Managed Investment Fund 12 Management

Leroy M. Ball is President and Chief Executive Officer of Koppers and serves on the company’s Board of Directors. Under Leroy’s leadership as CEO, Koppers is focused on safely delivering customer-focused solutions through the development and application of technologies to enhance and preserve wood. Additionally, he has placed special emphasis on advancing the company’s people-focused culture. Leroy joined Koppers in September 2010 as Vice President and Chief Financial Officer, providing oversight for the finance, treasury, information technology and investor relations functions. From May to December 2014, he held the role of Chief Operating Officer with responsibility for the company’s global business operations. He was elected President and Chief Executive Officer in January 2015.

Michael J. Zugay is Chief Financial Officer of Koppers, a post he assumed with his election in August 2014. Michael is responsible for leading all aspects of Koppers global financial, investor relations and communications functions as well as participates in the advancement of key strategic growth initiatives. Prior to joining Koppers, Mr. Zugay was Co-Chief Executive Officer/Chief Financial Officer for Michael Baker Corporation, a global provider of engineering and other consulting services with national and international locations.

Jim Sullivan is Executive Vice President and Chief Operating Officer with responsibility for all four of Koppers business units. In addition, he oversees corporate procurement and process excellence. Jim joined Koppers as Vice President of Business Development, Koppers Inc. in June 2013. Subsequently, he held the role of Senior Vice President, Global Carbon Materials and Chemicals (CMC), Koppers Inc. from April 2014 to May 2018. He was then elected Senior Vice President, Railroad Products and Services and Global Carbon Materials and Chemicals, Koppers Inc. from May 2018 through December 2019.

February 19, 2021 USF Student Managed Investment Fund 13 Analyst Team

Robert Camejo is a first generation American, born and raised in Tampa, and is set to graduate in May 2022. He is a junior pursuing a dual-degree in finance, with a concentration in asset management and quantitative economics and Econometrics, accompanied by a minor in entrepreneurship. Through his business classes, he has maintained a 3.95 GPA. In his first year at USF, he joined the professional business fraternity, Delta Sigma Pi, which has allowed him to improve his professional and interpersonal skills. Through his networking within the fraternity, he was able to secure a wealth management internship at Merrill Lynch in St. Petersburg for the 2019-20 school year. Rafael Nobre is a senior currently pursuing a double major in finance and business analytics and information systems. He was born in Brazil and moved to the United States after having developed a passion for investments, inspired by his father, who is a real estate investor and an entrepreneur. Nobre previously served as a calculus, financial accounting and business analytics tutor, which allowed him to help other students to succeed. This past summer, he interned in Citi in its Equity Research department, a career he would like to pursue after graduation. Nobre hopes the challenge in the ASA program will provide him with some real-world experience in security analysis and stock valuation. Upon graduation, he plans to pursue his Chartered Financial Analyst designation. Aravind Thota is from Tampa and he is pursuing a bachelor’s degree in finance accompanied by a minor in economics. He is a brother of the professional business fraternity, Delta Sigma Pi, Theta Phi Chapter, which has provided him with a platform to seek valuable experiences in various business fields, specifically in finance. Thota is currently an investment banking Intern at LCG Advisors in Tampa. He previously held positions as a market research analyst intern at Crosstree Capital Partners and a financial and data analyst intern at Tampa Electric Company. His exposure to different positions in the business sectors has allowed him to discover his true passion for investment management and banking. He hopes to develop his fundamental and technical financial skills through the Applied Securities Analysis program/USF Student Managed Investment Fund. Mark Carlos Zevallos is a first-generation American pursuing a degree in finance with a concentration in investment management, though he came into USF as a pre-med major. He volunteered at the Yuengling Center during Hurricane Irma, ventured on a medical service trip to the Dominican Republic, and shadowed physicians in the Florence region of Italy. He hopes to take the knowledge from Applied Securities Analysis to be a better investor.

February 19, 2021 USF Student Managed Investment Fund 14

Appendix

Weighted average Weighted shares outstanding thousands):(in

Earnings Per Share

Net Net income attributable to Koppers

Net Net income attributable to noncontrolling interests

Net Net income

Income from continuing operations

EBT

Operating Profit

Operating Expenses:

Gross Profit

Cost of Cost sales of

Net Net sales

Year

In millions, $ millions, In

Diluted

Basic

Continued Diluted Continued

Continued Basic Continued

Gain on sale of discontinued operations. Net of tax expense of ($8.3)of tax of expense Net operations. Gain discontinued of on sale

(Loss) income from discontinued operations, net of tax benefit (expense) of $0.0,of $(0.4) (expense) and $0.2 tax of benefit net operations, from discontinued income (Loss)

Income tax Income provision

Loss on extinguishment of debt of Loss on extinguishment

Loss on pension settlements Loss on pension

Interest expense Interest

Other income, net Other income,

Total operating Total expenses operating

Selling, general and administrative expenses and administrative general Selling,

Goodwill Impairment Goodwill

Impairment and restructuring Impairment charges

Loss on sale of Loss assets of on sale

Depreciation and amortization Depreciation

Dec. 31,

2015

20,541

1,366.7

1,626.9

($3.50)

(-72.0)

(-76.0)

(-75.9)

(-80.1)

(-29.6)

(-4.0)

(-0.1)

(-4.2)

(-3.2)

124.6

165.2

260.2

50.7

67.2

42.2

59.0

0.2

Dec. 31,

2016

21,055

20,636

1,127.9

1,416.2

$1.36

$1.39

(-1.6)

(-2.1)

126.6

288.3

29.3

27.7

27.1

11.4

38.5

50.8

86.4

75.3

20.1

52.9

0.6

2.9

4.4

Dec. 31,

2017

22,000

20,754

1,153.4

1,475.5

$1.36

$1.44

(-0.8)

123.6

198.5

132.5

322.1

29.1

30.5

31.3

29.0

60.3

13.3

10.0

42.5

16.2

49.8

1.4

2.5

Dec. 31,

2018

21,326

20,871

1,375.1

1,710.2

$1.08

$1.10

110.4

224.7

161.6

335.1

23.4

29.2

28.8

26.0

54.8

56.3

50.8

5.8

0.4

0.7

4.0

8.3

Dec. 31,

2019

21,068

20,665

1,430.0

1,772.8

$3.16

$3.23

(-0.1)

130.8

212.0

150.9

342.8

66.6

67.4

67.5

68.9

62.5

55.1

0.8

1.4

0.6

6.0

Dec. 31,

2020

21,082

20,668

1,302.7

1,669.1

$4.04

$4.19

121.7

122.5

111.1

163.2

203.2

141.5

366.4

35.8

86.7

24.5

51.5

56.2

0.8

0.6

5.5

Dec. 31

2021

21,097

20,671

1,347.6

1,726.5

$4.50

$4.60

122.8

170.2

208.8

145.8

379.0

95.0

95.8

27.0

46.7

56.5

0.8

0.6

6.5

Dec. 31

2022

21,112

20,673

1,399.4

1,792.9

$4.95

$5.05

104.5

105.3

140.3

186.7

206.8

150.8

393.5

35.1

45.8

56.1

0.8

0.6

Dec. 31,

2023

21,128

20,676

1,455.8

1,865.2

$5.31

$5.43

112.2

113.0

150.7

195.1

214.3

156.2

409.4

37.7

43.8

58.1

0.8

0.6

Dec. 31

2024

21,144

20,679

1,514.6

1,940.5

$5.67

$5.79

119.8

120.6

160.8

203.9

222.1

161.9

425.9

40.2

42.4

60.2

0.8

0.6

Dec. 31

2025

21,161

20,682

1,575.8

2,018.9

$6.02

$6.16

127.4

128.2

171.0

213.1

230.1

167.7

443.2

42.7

41.5

62.4

0.8

0.6

- -

February 19, 2021 USF Student Managed Investment Fund 15

Appendix

Total liabilities Totaland equity liabilities

Total equity

Equity

Total liabilities

Total current liabilities

Liabilities

Current Assets

Assets

Year

In millions, $ millions, In

Noncontrolling interests Noncontrolling

Total Koppers shareholders’ equity shareholders’ Total Koppers

Treasury stock, at cost, 2,515,925 and 2,480,213 shares

Accumulated other comprehensive loss other comprehensive Accumulated

Retained earnings Retained

Additional paid-in capital paid-in Additional

and 23,028,957 shares issued

Common Common Stock, $0.01 parper share; 80,000,000 value 23,321,087 shares authorized;

authorized; no shares issued authorized;

Senior Convertible Preferred Stock, $0.01 Preferred Convertible parper share; 10,000,000 Senior value shares

Other long-term liabilities Other long-term

Operating lease liabilities lease Operating

Deferred tax liabilities Deferred

Accrued postretirement benefits Accrued postretirement

Long-term Long-term debt

Current maturities of long-term debt long-term of Current maturities

Current operating lease liabilities lease Current operating

Accrued liabilities

Accounts payable

Total assets

Other Other assets

Deferred tax assets Deferred

Intangible assets, net assets, Intangible

Goodwill

Operating lease right-of-use assets right-of-use lease Operating

Property, plant and equipment, net and plant equipment, Property,

Other Other current assets

Inventories, net Inventories,

Income tax Income receivable

Accounts receivable, net of allowance of $2.6of allowance of net and Accounts$2.5 receivable,

Cash and cash equivalents

Total current assets

Dec. 31,

2015

1,112.9

1,125.3

1,112.9

(-12.4)

(-18.5)

(-52.7)

(-79.8)

(-54.0)

167.8

103.1

682.4

280.5

140.8

156.1

186.6

277.8

444.3

226.4

155.0

53.6

39.9

99.8

11.5

36.6

27.0

21.8

6.1

0.2

5.7

9.5

4.6

Dec. 31,

2016

1,087.5

1,052.9

1,087.5

(-53.0)

(-68.6)

(-24.7)

176.5

619.8

293.1

106.3

144.2

141.9

186.4

280.8

438.1

228.7

136.8

34.6

30.4

82.1

51.6

42.6

13.2

27.1

39.1

20.8

4.2

0.2

6.3

8.9

3.8

Dec. 31,

2017

1,200.2

1,094.4

1,200.2

(-58.2)

(-40.1)

105.8

190.6

665.6

281.2

127.9

141.9

129.6

188.2

328.0

506.7

236.9

159.2

99.9

94.0

46.3

11.4

29.3

18.4

48.6

60.3

5.9

7.4

0.2

7.3

1.7

Dec. 31,

2018

1,479.9

1,412.9

1,479.9

(-90.0)

(-87.2)

206.0

978.8

298.7

109.9

177.2

188.0

296.5

417.9

540.3

284.7

189.7

67.0

10.8

56.2

27.2

80.4

48.2

11.6

21.7

15.5

22.5

40.6

0.2

6.8

2.8

Dec. 31,

2019

1,564.6

1,405.9

1,564.6

(-90.9)

(-77.7)

158.7

147.3

221.9

891.0

296.2

169.9

168.4

296.1

113.5

415.4

519.5

299.1

163.9

11.4

93.8

72.1

92.6

46.6

10.2

22.1

94.0

28.0

23.7

21.6

33.0

0.2

7.4

1.9

Dec. 31,

2020

1,557.8

1,262.3

1,557.8

(-92.1)

(-77.7)

295.5

284.1

216.3

237.4

759.3

279.1

164.9

148.9

296.1

105.9

448.5

511.1

274.3

172.1

11.4

82.2

85.0

49.3

10.2

96.4

28.0

19.2

21.6

41.3

0.2

7.4

7.6

1.9

Dec. 31,

2021

1,648.4

1,242.4

1,648.4

(-93.3)

(-77.7)

406.0

394.6

312.1

253.3

749.1

301.0

164.3

131.3

296.1

476.6

617.7

285.5

175.4

133.3

11.4

78.2

58.3

48.4

10.2

26.7

99.8

28.0

19.5

79.2

21.6

0.2

7.4

1.9

Dec. 31,

2022

1,749.5

1,223.0

1,749.5

(-94.5)

(-77.7)

526.5

515.1

417.4

269.7

747.1

307.5

103.6

179.4

116.5

296.1

505.0

726.4

298.4

177.2

227.4

11.4

77.5

35.8

47.8

22.5

28.0

20.8

56.7

21.6

0.2

7.4

2.0

1.9

Dec. 31,

2023

1,856.0

1,200.8

1,856.0

(-95.7)

(-77.7)

655.2

643.8

530.4

286.6

747.1

300.3

107.8

175.4

102.0

296.1

533.8

836.7

318.6

188.6

306.0

11.4

79.3

18.7

48.0

17.1

28.0

19.8

39.6

21.6

0.2

7.4

1.9

Dec. 31,

2024

2,000.4

1,208.4

2,000.4

(-96.9)

(-77.7)

792.0

780.6

651.0

304.0

475.1

595.6

272.0

112.1

196.7

296.1

563.1

980.5

334.3

195.0

427.7

11.4

78.3

48.0

14.8

28.0

20.0

87.8

24.8

21.6

0.2

3.9

7.4

1.9

Dec. 31,

2025

1,861.2

(-98.1)

(-77.7)

936.9

925.5

779.2

321.9

924.3

786.3

475.1

116.6

194.5

296.1

593.0

825.1

350.2

202.2

249.3

11.4

78.4

48.3

28.0

20.2

73.9

24.8

21.6

0.2

3.9

7.4

1.9

- -

February 19, 2021 USF Student Managed Investment Fund 16

Appendix

Cash and cash atequivalents end of period

Cash and cash atequivalents of beginning period

Net (decrease) increase in cashin and increase cash equivalents (decrease) Net

Effect of exchange rate changes on cashexchange of Effect

Net Net cash provided in) by(used financing activities

Cash provided in) by(used financing activities:

Net Net cash used in activities investing

Cash provided in) by (used activities: investing

Adjustments to net reconcile cash provided by operatingin) (used

Net Net income

Cash provided by operatingin) (used activities:

Year

In millions, $ millions, In

Dividends paid Dividends

Payment of debt issuance costs issuance debt of Payment

Repurchases of Common of Stock Repurchases

Issuances of Common of Stock Issuances

Repayments of long-term debt long-term of Repayments

Borrowings of long-term debt long-term of Borrowings

Net (decrease) increase in credit facility borrowings facility credit in increase (decrease) Net

Net cash provided by (used in) divestitures and sales asset divestitures in) by (used cash Net provided

Repayments received on loan received Repayments

Insurance Insurance proceeds

Acquisitions, net of cashof net acquired Acquisitions,

Capital expenditures Capital

Change in NWC in Change

NWC

Net Net cash provided by operating activities

Changes in working capital:

Other - net Other

Loss on pension settlement Loss on pension

Stock-based compensation Stock-based

Non-cash interest expense interest Non-cash

Change in other liabilities other in Change

Equity loss, net of dividends received dividends of net loss, Equity

Deferred income taxes income Deferred

Loss on sale of assets of Loss on sale

Insurance Insurance proceeds

Loss (gain) on disposal of investments of on disposal Loss (gain)

Loss on extinguishment of debt of Loss on extinguishment

Goodwill impairment Goodwill

Impairment of long-lived assets long-lived of Impairment

Depreciation and amortization Depreciation

Other working capital working Other

Accrued Accrued liabilities

Accounts payable

Inventories

Accounts receivable

Dec. 31,

2015

(-123.4)

(-29.3)

(-40.7)

(-73.8)

(-41.1)

(-15.3)

(-40.7)

(-19.6)

(-16.0)

(-76.0)

(-8.7)

(-1.0)

(-0.3)

(-4.3)

(-5.5)

(-3.2)

127.7

21.8

51.1

14.9

44.2

25.0

34.1

32.8

67.2

14.7

59.0

7.5

1.1

9.0

3.8

3.6

3.1

Dec. 31,

2016

(-62.7)

(-31.7)

(-29.7)

(-53.7)

(-49.9)

(-1.0)

(-4.1)

(-1.4)

(-0.3)

(-3.8)

(-1.1)

(-3.3)

(-5.0)

(-0.1)

(-2.1)

119.5

20.8

21.8

22.5

21.7

12.7

52.9

27.7

0.4

8.4

5.0

0.9

4.4

8.9

5.7

1.0

3.5

Dec. 31,

2017

(-546.7)

(-11.0)

(-56.5)

(-67.5)

(-13.6)

(-16.0)

(-21.1)

(-5.9)

(-5.2)

(-0.8)

(-1.5)

500.0

101.8

60.3

20.8

39.5

54.3

18.1

31.2

10.0

10.6

13.3

49.8

30.5

0.1

2.7

1.5

9.5

3.6

1.3

0.7

2.1

1.6

3.7

Dec. 31,

2018

(-376.4)

(-264.0)

(-109.7)

(-19.7)

(-31.8)

(-20.3)

(-16.7)

(-27.0)

(-18.3)

(-22.6)

(-4.4)

(-2.9)

(-4.2)

(-7.7)

(-1.5)

282.8

100.0

234.9

40.6

60.3

20.3

78.3

30.8

12.5

50.8

29.2

2.9

1.5

5.5

6.1

2.4

9.1

8.3

0.7

Dec. 31,

2019

(-88.7)

(-29.7)

(-61.1)

(-33.8)

(-37.2)

(-30.7)

(-14.8)

(-24.0)

(-10.9)

(-7.6)

(-0.4)

(-1.0)

(-0.9)

(-3.1)

(-3.0)

115.3

33.0

40.6

14.0

25.4

12.1

55.1

67.4

4.0

0.4

2.6

3.9

1.2

2.6

0.8

Dec. 31,

2020

(-151.0)

(-153.8)

(-69.8)

(-1.2)

(-0.1)

(-5.0)

(-8.2)

229.1

121.7

41.3

33.0

14.1

24.8

11.5

17.7

56.2

8.3

4.0

2.4

0.8

2.7

4.5

Dec. 31,

2021

(-15.0)

(-17.8)

(-67.0)

(-11.8)

(-11.2)

(-1.2)

(-0.6)

(-3.3)

(-0.9)

(-0.3)

133.3

174.1

41.3

92.0

25.9

11.9

22.8

56.5

95.0

4.0

3.3

0.8

Dec. 31,

2022

(-34.1)

(-36.9)

(-69.6)

(-16.1)

(-12.9)

(-1.2)

(-1.8)

(-0.6)

(-1.3)

227.4

133.3

197.8

104.5

94.1

15.1

12.4

21.8

56.1

4.0

4.3

3.8

0.8

Dec. 31,

2023

(-21.7)

(-24.5)

(-72.4)

(-31.5)

(-20.2)

(-11.5)

(-1.2)

(-4.0)

306.0

227.4

172.7

112.2

78.6

35.7

12.9

18.9

58.1

4.0

4.2

0.8

0.3

1.0

Dec. 31,

2024

(-14.3)

(-17.1)

(-75.3)

(-35.0)

(-15.8)

(-1.2)

(-6.4)

(-0.0)

(-0.2)

427.7

306.0

121.7

211.3

119.8

21.3

13.4

13.8

60.2

4.0

3.5

4.4

0.8

Dec. 31,

2025

(-178.4)

(-284.0)

(-286.8)

(-78.4)

(-20.6)

(-15.8)

(-1.2)

(-2.2)

(-7.2)

(-0.2)

249.3

427.7

184.0

127.4

24.1

13.9

62.4

4.0

4.5

0.8

0.3

0.0

- -

February 19, 2021 USF Student Managed Investment Fund 17 Appendix

P/E Sensitvity Analysis EPS $52.94 $11.00 $11.50 $12.00 $12.50 $13.00 $13.50 $14.00 $14.50 $15.00 $15.50 $16.00 $16.50 $17.00 12.00x $132.00 $138.00 $144.00 $150.00 $156.00 $162.00 $168.00 $174.00 $180.00 $186.00 $192.00 $198.00 $204.00 13.00x $143.00 $149.50 $156.00 $162.50 $169.00 $175.50 $182.00 $188.50 $195.00 $201.50 $208.00 $214.50 $221.00 14.00x $154.00 $161.00 $168.00 $175.00 $182.00 $189.00 $196.00 $203.00 $210.00 $217.00 $224.00 $231.00 $238.00 15.00x $165.00 $172.50 $180.00 $187.50 $195.00 $202.50 $210.00 $217.50 $225.00 $232.50 $240.00 $247.50 $255.00 16.00x $176.00 $184.00 $192.00 $200.00 $208.00 $216.00 $224.00 $232.00 $240.00 $248.00 $256.00 $264.00 $272.00 17.00x $187.00 $195.50 $204.00 $212.50 $221.00 $229.50 $238.00 $246.50 $255.00 $263.50 $272.00 $280.50 $289.00 P/E 18.00x $198.00 $207.00 $216.00 $225.00 $234.00 $243.00 $252.00 $261.00 $270.00 $279.00 $288.00 $297.00 $306.00 19.00x $209.00 $218.50 $228.00 $237.50 $247.00 $256.50 $266.00 $275.50 $285.00 $294.50 $304.00 $313.50 $323.00 20.00x $220.00 $230.00 $240.00 $250.00 $260.00 $270.00 $280.00 $290.00 $300.00 $310.00 $320.00 $330.00 $340.00 21.00x $231.00 $241.50 $252.00 $262.50 $273.00 $283.50 $294.00 $304.50 $315.00 $325.50 $336.00 $346.50 $357.00 22.00x $242.00 $253.00 $264.00 $275.00 $286.00 $297.00 $308.00 $319.00 $330.00 $341.00 $352.00 $363.00 $374.00 23.00x $253.00 $264.50 $276.00 $287.50 $299.00 $310.50 $322.00 $333.50 $345.00 $356.50 $368.00 $379.50 $391.00 24.00x $264.00 $276.00 $288.00 $300.00 $312.00 $324.00 $336.00 $348.00 $360.00 $372.00 $384.00 $396.00 $408.00

Bull Case 2020E 2021E 2022E P/E 9.07x 10.11x 11.15x EPS $4.21 $4.69 $5.16 Target Price $38.17 $47.43 $57.48 Potential Upside 6% 31% 59% CAGR 10% Basic EPS Assumptions 2020E 2021E 2022E Base Case Bull EPS $4.21 $4.69 $5.16 2020E 2021E 2022E Bull Price Target $38.17 $47.43 $57.48 P/E 8.70x 9.70x 10.70x Base EPS $4.04 $4.50 $4.95 EPS $4.04 $4.50 $4.95 Base Price Target $35.15 $43.68 $52.94 Target Price $35.15 $43.68 $52.94 Bear EPS $3.87 $4.31 $4.74 Potential Upside -3% 21% 47% Bear Price Target $32.26 $40.09 $48.59 CAGR 14% Current Price $ 36.09 Bear Case 2020E 2021E 2022E P/E 8.33x 9.29x 10.25x EPS $3.87 $4.31 $4.74 Target Price $32.26 $40.09 $48.59 Potential Upside -11% 11% 35% CAGR 10%

February 19, 2021 USF Student Managed Investment Fund 18

Appendix

Fiscal End Year

Year

In thousands In

Plus: Net Debt (Net Cash)

Market Cap

Share Outstanding

Stock Price

EBITDA/Interest Expense

Debt/EBIT

Net Leverage Ratio

Debt/EBITDA

Interest Coverage

EBITDA

EBIT

Debt/Assets

Debt/Equity

Total Debt

Assets Turnover

Days in Inventory

Inventory Turnover

Days Payable

Payables Turnover

CFO/Current Liabilities

Cash Ratio

Quick Ratio

Current Ratio

ROA

ROE

Equity Multiplier

Asset Turnover

Profit Margin

FCF Margin

NOPAT Margin

EBITDA Margin

Profit Margin

Operating Margin

Gross Margin

EPS (Basic)

EBITDA (Basic)

FCF Per Share

Operating Income Per Share

Sales Per Share

EV/Sales

EV/EBITDA

EV/EBIT

Price/FCF

Price/Earnings

Price/Sales

DuPont Analysis

Per Share Data

Profitability

Valuation

Liquidity

Market

Debt

2015A

612.90%

1/2/2016

(400.00)

-$21.00

-$80.00

15.99%

$79.20

-44.67x

-11.72x

(33.36)

(34.40)

-6.83%

(89.75)

-4.67%

-1.29%

-4.67%

($3.51)

($1.02)

$18.25

17.20x

20.54

-39.04

60.77

31.59

11.55

1.34%

7.92%

7.66%

$1.06

$6.07

-5.20x

(9.03)

(0.44)

(0.71)

0.58x

0.23x

0.05

1.48

6.01

0.08

0.10

$938

$563

$375

$938

722

2.58

12/31/2016

2016A

80.06%

20.36%

$68.63

$1,304

$40.30

$1,304

$94.90

$42.00

13.74x

31.06x

40.79x

28.99x

20.64

15.77

14.48

75.34

37.16

2.55%

31.43

1.96%

1.47%

8.13%

6.70%

1.96%

8.94%

$1.39

$4.60

$0.99

$6.13

(0.21)

(0.65)

21.79

0.92x

0.59x

6.55

6.76

6.98

1.24

4.84

9.82

0.07

0.13

1.48

$473

$832

662

2.26

12/30/2017

2017A

$151.80

$102.00

28.83%

10.29%

21.83%

$71.09

$1,556

$1,043

$50.25

$1,556

10.25x

15.25x

18.33x

38.07x

20.75

63.25

82.53

35.10

10.40

2.54%

11.34

2.07%

4.09%

6.41%

2.07%

8.38%

$1.32

$7.31

$2.74

$5.96

(0.02)

(0.67)

1.05x

0.71x

6.64

4.06

4.46

2.40

1.10

4.42

0.21

0.17

1.24

$513

677

2.41

6.78

12/29/2019

2018A

$162.30

$111.50

43.58%

19.59%

$81.94

$1,192

$17.89

$1,192

10.69x

16.26x

20.87

81.95

77.48

37.82

1.97%

22.09

1.71%

2.37%

4.94%

9.49%

1.71%

6.46%

$1.10

$7.78

$1.90

$5.29

17.62

0.70x

7.34x

9.40x

0.22x

8.88

5.85

6.10

1.98

1.12

4.71

9.65

0.95

0.14

0.86

1.81

1.10

$818

$373

990

3.32

12/28/2019

2019A

$186.40

$131.30

42.47%

10.51%

19.34%

$85.79

$1,504

$37.65

$1,504

11.45x

24.04x

11.91x

20.67

88.73

73.17

34.98

10.43

4.31%

3.80%

1.86%

7.30%

3.80%

7.38%

$3.16

$9.02

$1.57

$6.33

(0.30)

0.85x

8.07x

0.44x

6.86

4.66

4.83

2.10

1.14

4.99

0.11

0.74

1.75

9.86

1.12

$726

$778

901

3.04

6.12

12/28/2020

2020E

$218.77

$162.62

41.45%

13.11%

21.95%

$10.58

$80.76

$1,223

$30.50

$1,223

15.57x

20.67

69.24

78.42

36.06

10.12

7.86%

7.34%

2.47%

8.31%

7.34%

9.78%

$5.77

$1.96

$7.90

(0.54)

0.73x

5.59x

7.52x

5.28x

0.38x

4.73

3.33

3.52

3.16

1.04

4.65

0.15

0.85

1.83

5.27

1.14

$592

$630

770

2.76

2.71

12/28/2021

2021E

$226.10

$169.55

23.59%

13.10%

21.95%

$10.94

$83.53

$1,201

$30.50

$1,201

20.67

62.31

79.07

34.74

10.51

5.81%

5.55%

7.72%

8.29%

5.55%

9.85%

$4.50

$6.32

$8.23

(0.05)

0.70x

5.31x

7.08x

4.83x

6.77x

0.37x

4.48

2.77

3.36

3.63

1.02

4.62

0.44

1.10

2.05

4.06

1.04

$571

$630

759

2.52

1.92

12/28/2022

2022E

$242.17

$186.11

19.99%

12.68%

13.51%

10.41%

21.95%

$11.71

$10.77

$86.73

$1,185

$30.50

$1,185

20.67

59.55

80.46

36.52

6.02%

5.87%

8.46%

5.87%

$4.95

$9.03

(0.11)

0.66x

4.89x

6.37x

2.83x

6.16x

0.35x

4.03

2.15

3.09

4.07

0.99

4.54

9.99

0.74

1.39

2.36

3.32

1.02

$554

$631

749

2.44

1.45

12/28/2023

2023E

$252.60

$194.48

17.25%

16.40%

13.54%

10.46%

21.95%

$12.22

$14.48

$90.21

$1,176

$30.50

$1,176

20.68

56.84

81.85

34.32

10.63

6.09%

6.06%

8.44%

6.06%

$5.31

$9.44

(0.07)

0.63x

4.65x

6.04x

2.11x

5.74x

0.34x

3.84

1.75

2.96

4.44

0.97

4.46

1.02

1.73

2.79

2.83

0.99

$545

$631

747

2.49

1.16

12/28/2024

2024E

$263.47

$203.26

15.23%

22.04%

13.58%

10.51%

21.95%

$12.74

$20.23

$93.84

$1,378

$30.50

$1,378

20.68

55.00

82.48

37.00

6.03%

6.22%

8.43%

6.22%

$5.67

$9.86

(0.02)

0.71x

5.23x

6.78x

1.51x

5.38x

0.33x

3.68

1.21

2.84

4.79

1.01

4.43

9.87

0.72

1.08

1.65

2.53

0.97

$747

$631

747

1.25

0.96

12/29/2025

2025E

$274.82

$212.46

13.68%

12.35%

13.61%

10.55%

21.95%

$13.29

$11.78

$10.30

$97.62

$1,106

$30.50

$1,106

20.68

53.69

40.56

35.17

10.38

6.89%

6.35%

8.44%

6.35%

$6.02

(0.36)

0.55x

4.02x

5.21x

2.59x

5.07x

0.31x

2.24

0.82

1.73

5.12

2.17

9.00

0.32

0.60

1.05

1.99

1.01

$475

$631

475

0.60 0.51

February 19, 2021 USF Student Managed Investment Fund 19 Appendix

Comps - KOP KOP GPRE HSC OEC VVV CE CBT TSE WLKP P/E TTM 8.28 - - 38.15 13.55 7.64 - 364.67 12.32 P/B 2.68 1.3 2.12 6.68 - 4.33 3.35 3.82 1.61 P/S 0.45 0.44 0.86 0.92 1.85 2.7 1.05 0.74 0.85 P/FCF 9.78 - - - 30.02 - 52.58 19.77 2.43 Beta (5 Yr) 2.15 2.16 2.35 1.84 1.41 1.22 1.66 1.7 1.2 EPS Growth (5 year) 31.70% -25.60% 27.20% 26.80% 11.50% 11.20% 4.00% 28.20% 28.60% Revenue Growth TTM -0.66% -20.42% 22.26% -25.77% -1.68% -10.20% -18.81% -19.61% -13.94% Gross Margin TTM 20.73% 6.38% 19.77% 25.57% 36.68% 22.86% 21.27% 10.39% 40.00% Operating Margin TTM 8.76% -6.38% 1.66% 7.12% 21.05% 36.64% 2.89% 3.00% 37.34% Profit Margin TTM 5.43% -5.76% -1.03% 2.42% 13.84% 35.44% -7.71% 0.26% 36.01% ROE TTM 48.19% -15.55% -3.23% 16.92% - 66.20% -24.00% 1.24% 13.17% ROA TTM 5.87% -6.76% -0.66% 2.15% 12.18% 19.66% -6.62% 0.28% 25.66% Debt/Equity MRQ 2.88 0.81 1.76 4.86 - 1.06 1.34 1.96 1.43 Debt/Capital MRQ 73.93% 40.39% 62.17% 82.93% 102.76% 48.87% 53.48 66.25 29.86 Interest Coverage MRQ 5.1 -1.14 0.55 2.24 - - 12.8 - 40.34 Current Ratio MRQ 1.99 1.42 1.51 1.49 2.4 1.91 1.97 2.84 6.67

Target Price Model Price Weight P/E $52.94 20% EV/EBITDA $51.35 20% DCF $48.70 60% Price Target $50.08 Discount to Market 38.76%

February 19, 2021 USF Student Managed Investment Fund 20