8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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GFKTIJN@ JTWNEDWW WGBFFK L@KK :==2

W]DGN@K WNXT@XNFEW NE\DWXNEC

HDE@KN NE\DWXFZW, KKG

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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G`sd Wtuhy #0Sb`t b`ppdes wbde tbd lfkkfwnec cdt tfcdtbdr6

Bujrns

D`sy G`pnt`k

Dcf]d`onec Lueh`idet`ks

]d`onec Wtfgo ]rngds

Jnc Hd`k Ldds

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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@eswdr1 LNEK/CGF/TJW

0. Wuiidr :==3

:. L`kk :==3

7. Snetdr :==3

TJW LNEKCGF

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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Hd`k J`gocrfuehH`vnh (LNEK) vs. Cfkn`tb (CGF)

Ne H`vnh vs. Cfkn`tb sgde`rnf, LNEKwfe tbdjnhhnec gfetdst ne Aued :==3 `c`nest LK (` iugbk`rcdr gfipdtntfr) tf purgb`sd CGF (` iugb k`rcdrgfip`ey jy i`rodt g`p).

Xbd tdris wdrd lfr $0.4j ne g`sb, fr $48.4= pdr sb`rd,

wntb luehnec prfvnhdh jy TJW. @ vdry fvdrv`kudhhd`k. X`nk deh fl tbd KJF i`en`.

Jy Wdptdijdr :==3, ne gfijne`tnfe wntb tbd edws`eh tbd gfesuidr `eh rdt`nk sdgtfr jdnec bnt b`rh,LNEK tr`hdh hfwe lrfi $00 - $04 pdr sb`rd tf `jfut$4 pdr sb`rd. CGF w`s tr`hnec `t $84 pdr sb`rd.

Jd g`rdluk wb`t yfu wnsb lfr

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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\`ku`tnfe

:.48x=.44x]J

::.:x0=.x4.8xD\/DJNX

(tti)

2.=x:.4xD\/DJNXH@

(tti)

=.3

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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]fssnjkd FutgfidsFutgfid J`eh negkuhds1

Xbd hd`k gkfsds (LNEK juys CGF) Xbd hd`k jrd`os (LNEK hfds eft juy

CGF)

Wfidtbnec ne jdtwdde

Dijdhhdh kdc`k uegdrt`nety (I@G, sfkvdegy

gdrtnlng`td, auhcd, aurnshngtnfe)

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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S`ys tf ]k`gd `e NevdstidetGfiife `pprf`gbds

Kfec/Wbfrt LNEK, fr Kfec/Wbfrt CGF

Sb`t ns tbd rnso*/rdw`rh6LNEK1 `ppr. 0/4 tf 0/0=

CGF1 `ppr. 0/0 tf0/:

*Znso 9 pdri`edet kfss fl g`pnt`k, eft jdt`

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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S`ys tf ]k`gd `e Nevdstidet #0@ jdttdr `pprf`gb #0

Kfec jftb LNEK `eh CGF

Sby jftb6

Gfuetdrnetuntnvd...

Wt`eh`rh idrcdr `rj `e`kysns fe CGF `kfed ns knintdhNesur`egd/bdhcd gfst

Xr`esldr fl v`kud gfegdpt

Gfijne`tnfe negrd`sds s`ldtyXbd Z`tnf 0/4 rnso/rdw`rh r`tnf fr =/8.46

Fr nestd`h fed g`e snipky

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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S`ys tf ]k`gd `e Nevdstidet #:@ jdttdr `pprf`gb #:

Aust S`nt

Sby6

Ir. I`rodt cnvds knttkd grdhnt tbdsd h`ys tnid tf `gt

@kw`ys jd `jkd tf w`ko `w`y

@kk s`nh, tbd tbdsns jfnks hfwe tf

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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Bd`hs N Sne, X`nks N Hfet KfsdJy cfnec kfec jftb LNEK `eh CGF1

Nevdstidet jfnks hfwe tf bd`hs N wne (knodky `kft), t`nks N jrd`o dvde (prdtty iugb).

Xbdrd ns ` ed`r-tdri g`t`kyst tb`t grd`tds v`kud

tbd I&@ hd`k jdtwdde LNEK `eh CGF wnkkdntbdr gkfsd fr jrd`o.

Xbd futgfid hfds eft i`ttdr1 ne tbd lfridr,wd kfsd eftbnec? ne tbd k`ttdr, pftdetn`k lfr 0==%

tf 8==% upsnhd. S`ntnec lfr pfssnjky uedeguijdrdh LNEK ns

aust `s v`knh.

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Wf Sb`t B`ppdedh6- Gfidhy fl drrfrs- LNEK jdttdr kugoy tb`e cffh

- Kned`r tbneonec `t tbd pd`o- Xbd hd`k ldd ifestdr

Dvdets

G`t`kystsNesur`egd `t wfro

0

:

7

7

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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ZdvndwWpdgn`k sntu`tnfe

Fptnfe`knty tb`ts lrdd\`ku`tnfe

Bdhcnec (Nesur`egd)

Xbd Z`tnf

Hnscruetkdh idrcdr `rj bdhcd luehs sunec

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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@i`znec L`gts (@prnk :==2)0) LNEK GDF stnkk b`s ` afj.

:) CGF GDF stnkk b`s ` afj.

7) TJW j`eodrs `i gurnfus iysdkl.

Xbd stfry ns eft fvdr `s LNEK _ns stnkk gbd`pY

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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Knvd Wntu`tnfe #0@ Wpnefll

Xbdsns1

Juy ]`rdetGf, `eh cdt WpneGf lfr lrdd.

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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Knvd Wntu`tnfe #0Jrneos (tngodr JGF) Wpnefll fl Jrneos Bfid

Wdgurnty (tngodr GLK)

JGF GLK

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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Jrneos ]`rdetJGF p`rdet ns ` hfine`et nehustry kd`hdr wntb tbd strfecdst

j`k`egd sbddt (edt g`sb fl $

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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Jrneos Bfid Wdgurnty (GLK)GLK ns `eftbdr nehustry kd`hdr (#: `ltdr @HX) wntb `

sfknh j`k`egd sbddt (edt g`sb fl $48i) `ehkd`hnec idtrngs `eh i`rcnes.

JBW ns gfesnhdrdh tbd ifst hnsgnpknedh pk`ydr ne tbdnehustry.

Xbd nehustry b`s ` kfec ruew`y `eh ns vdry lr`cidetdh`eh uehdr pdedtr`tdh.

Xbd i`e`cdidet b`s st`tdh tbdy `rd kffonec tf i`net`netbdnr hnsgnpkned fe tbd rdsnhdetn`k snhd `eh

gfetneud tf crfw frc`eng`kky.GLK b`s tbd pdrdeen`kky kfwdst gbure/`ttrntnfe jy ` wnhd

i`rcne. Gbure ns `e nipfrt`et nssud - gurrdetky`jfut 3%

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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Hd`k J`gocrfuehJGF w`s `eh ns ` bdhcd lueh stfipnec crfueh

lfr ]nr`td, IIN, `eh Wtddk.

Ne`hvdrtdet jdedlngn`ry fl `gtnvnsi wntb J@Rs`kd, edt g`sb pfsntnfe `eh rdg`p

Tetnk inh Wdptdijdr :==2, JGF w`s tr`hnec `t $3= pdr sb`rd, iugbgkfsdr tf tbd netrnesng v`kud j`sdh fe tbd dxpdgt`tnfe fl tbd spne.

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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\`ku`tnfe - JGFGfips tr`hd `rfueh .

@t

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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\`ku`tnfe - GLKGLK sbfukh ongo fut fvdr $:==i ne prflfri` DJNXH@ =>.

Gfips tr`hd `rfueh >x 0:x DJNXH@. @t

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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\`ku`tnfe JGF & GLK

:.8x0.4x]J

04.=iD\1

$0,04=i$0,=0=iIG1

$0

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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Wpnefll Gbdgoknst\`ku`tnfe

G`pnt`k strugturd

Frpb`e jusnedss/stfgo

Nestntutnfe`k fwedrsbnp/prdssurdsI`e`cdidet negdetnvds/fwedrsbnp

Lueh`idet`ks

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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S`ys tf ]k`gd `e Nevdstidet]rd-spne

]k`y tbd jrd`o up v`kud- \n` dqunty fr fptnfes

]fst-spneJuy JGF fe tbd gbd`p

Juy GLK fe tbd gbd`p

- \n` dqunty fr fptnfes (tnid `rjntr`cd/KD@]s)

Fptnfes/\fk`tnknty grd`td vdry `ttr`gtnvd rnso/rdw`rh

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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Ftbdr L`gtfrs/LfrgdsGygkng`k gb`r`gtdrnstngs (grdhnt, gbure)

Gfuetdrgygkng`k gb`r`gtdrnstngs (cues,s`ldty)

Netdre`tnfe`k dxpfsurdDxgb`ecd r`tds

GLK rdjr`ehnec

Zfy`ktnds wneh hfwe jdedlnt

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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ZdvndwWpnefll

Nedllngndegy junkt netf tbd systdi

\`ku`tnfe

FptnfesXbd Z`tnf

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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Knvd Wntu`tnfe #:@ Xdehdr Flldr

BKXB BKXB Gfrp. ($2.0=)

- Tp tf 2=i sb`rds (fl 024i futst`ehnec), ef ineniui- $2.2= g`sb pdr sb`rd tdehdr (luehdh vn` $0j edt g`sb)- >% rdture ne fed wddo- Dxpnr`tnfe 00/:4/=2 (edxt Xudsh`y)

- I`e`cdidet fe jf`rh `eh b`vd tdehdrdh (tbneoiftnv`tnfes & justdh idrcdr)- Teknodky tf rd`gb 2=i sb`rd i`x- Hfet lfrcdt1 pfst tdehdr pftdetn`k

8/10/2019 Denali Investors - Columbia Business School Presentation 2008 Fall v3 (1)

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Knvd Wntu`tnfe #7@ Idrcdr @rj

F\DE XurjfGbdl ($0.= pdr sb`rd gfesnhdr`tnfe1 $7.

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Hde`kn NevdstfrsB. Odvne Jyue

ojyueMHde`knNevdstfrs.gfi