EFTA01378172.pdf

Alpha Group Capital Strategy: Investing in Bonds and Call Options Unlocking value by optimizing legacy vs. growth assets in target companies. Technology Transition Legacy technologies Growth technologies (e.g. 3G) (e.g. 4G ) SIRIS I egat y Business - "Bond" Next-Generation Growth Business - "Call Option" Characteristics: Characteristics: • Mission-critical products and services • Participation in disruptive "mega" technology trends • Leading market share; extremely sticky customer base • Significant potential upside ■ Predictable, consistent cash flows • Typically unprofitable, nascent businesses at acquisition • Target potential for 1.5x - 2.0x Gross MOIC through cash • Target potential for outsized returns through strategic sale or flows; focus on recouping investment within 24 months IPO Business Examples: Fixed line, 2G / 3G, legacy mainframe Business Examples: 4G, cloud computing, mobile security, software, fault tolerance servers distributed software and applications Bond vs Call Option • Evaluate: Assess "Call Option" growth business separately from "Bond" legacy business • Structure: Develop organizational structure and compensation plans to support execution • Execute: Optimize legacy business for cash flow and extend product life; strategically develop growth business Notre 1 he shwas for Moroni. e ;wept.. only end or int./bard to show has Soar sonarrw u. hnology intwarnents h dory rot ntrasent 'ny panstlar Bin, ins ronnent. SUS. stratesies ant ranters Jaffna on e vanety d faetota sncludintt the pas-Jahns market envie:owner* and investment availability and effortunity. and Ikea can be no assurance that tha conditions upon witch well strategics and target. ore based will maten als,. Sins owls to Invest in desk where the Bond (Balsam can achieve the ranee oi retynnsti froth above. The target gross moms en forth hereon at heed on Sins. belief nsartling what mum, msy be rhwvbl.on imartmentstha Stria intends to pursue in Isshi of the Sow Founders iorniena osth investitantawnd are Ara hued on an awurntsion that woonotica inarles and Odin condinons will rot dtAniOrati ad, in some Sims CcaarCrwre rtc,tea will improve. Additionally. the Call Option may roam sasnificant additional capital or produce looses. Pod perfotmance is not indicative of future results. 9 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0075333 CONFIDENTIAL SDNY GM_00221517 EFTA01378172