Copart Inc

Company Description

Copart, Inc.

Type	Public
Traded as	Nasdaq: CPRT NASDAQ-100 component S&P 500 component
Industry	Automotive
Founded	Vallejo, California (1982) ((1982))
Headquarters	14185 Dallas Parkway, Suite 300, Dallas, Texas, U.S.
Number of locations	200+
Key people	Willis J. Johnson (Chairman) Jay Adair (CEO) John North (CFO)
Revenue	$3.58 billion (2022)
Net income	$1.09 billion (2022)
Total assets	$5.309 billion (2022)
Total equity	$4.626 billion (2022)
Number of employees	9,500 (2021)
Website	https://www.copart.com/
Footnotes / references

Copart, Inc. or simply Copart is a global provider of online vehicle auction and remarketing services to automotive resellers such as insurance, rental car, fleet and finance companies in 11 countries.

Copart, Inc. engages in the provision of online auctions and vehicle remarketing services. The company is headquartered in Dallas, Texas and currently employs 8,600 full-time employees. ), Oman, Bahrain, and Spain. The firm operates through two segments: United States and International. The firm provides vehicle sellers with a range of services to process and sell vehicles primarily over the Internet through its virtual bidding third generation Internet auction-style sales technology (VB3). Its vehicle sellers consist primarily of insurance companies, but also include banks, finance companies, charities, fleet operators, dealers and from individuals. The company sells the vehicles to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and in some jurisdictions, to the general public.

Operations

The Idea behind Copart Inc

The idea for Copart Inc came about through Willis J. Johnson's entrepreneurial spirit and his exposure to various business ventures throughout his life. Johnson's father was an entrepreneur who engaged in diverse businesses such as dairy farming, restaurants, and house construction. Growing up in such an environment, Johnson developed a strong work ethic and a passion for change.

Inspired by his father's entrepreneurial pursuits and armed with a desire to create something of his own, Johnson identified an opportunity in the salvage vehicle industry. He recognized that there was a demand for a more efficient and streamlined way to handle salvage vehicles and sell them to interested buyers. Salvage vehicles are vehicles that have been damaged or declared total losses by insurance companies.

With this insight, Johnson founded Copart in 1982, starting with just one salvage yard in California. He aimed to revolutionize the salvage vehicle auction process by introducing innovative technology and online platforms. By providing a convenient and accessible platform for buyers and sellers, Copart aimed to transform the industry and offer a global remarketing platform.

Over the years, Copart continued to evolve its auction technology and expand its operations, both domestically and internationally. The company's success can be attributed to Johnson's entrepreneurial vision, his passion for the auto auction industry, and his commitment to adapting and embracing technological advancements.

Copart Inc mission statement

To create value and opportunity through vehicle auctions and exchange.

Copart Inc key partnerships

Insurance Companies	Copart, Inc. collaborates with insurance companies to provide optimal vehicle claims solutions. This partnership enables insurers to efficiently dispose of salvaged vehicles and maximize their returns.
Individual Vehicle Sellers	Copart, Inc. partners with individual vehicle sellers who wish to sell their vehicles on its platform. This partnership benefits sellers by providing access to a reliable and efficient selling process, while Copart offers a large audience base for vehicle sales.
Auctioneers	Copart, Inc. collaborates with auctioneers who bring expertise and knowledge in the auctioning business. Through this partnership, Copart provides a seamless and efficient auctioning process, while auctioneers gain exposure to Copart's extensive network of buyers.
Transportation &Logistics	Copart, Inc. partners with transportation and logistics companies to handle the movement of vehicles from various locations to its facilities. This partnership ensures timely and secure delivery of vehicles while minimizing transportation costs.
Vehicle Manufacturers	Copart, Inc. partners with vehicle manufacturers, offering them an opportunity to dispose of excess inventory. This partnership allows manufacturers to free up space and resources while providing an environmentally sustainable solution for inventory disposal.

How Copart Inc works

Copart Inc Operation Overview
Vehicle Acquisition	Copart acquires vehicles primarily through partnerships with insurance companies, fleet owners, financial institutions, and other sellers. These vehicles are typically classified as salvage, used, or wholesale.
Vehicle Listings	Once Copart receives the vehicles, they are inspected, evaluated, and assigned a category based on their condition. The vehicles are then listed on the Copart website, providing detailed information such as make, model, year, mileage, and any existing damages.
Online Bidding	Interested buyers can browse the listings on Copart's website and participate in online auctions. Registered buyers have access to bid on the vehicles they are interested in. Bidding can take place manually or through Copart's proprietary software that automates the bidding process.
Virtual Auctions	Copart conducts virtual auctions where registered buyers can place bids in real-time. The auction process includes a specific duration during which bids can be placed. The highest bidder at the end of the auction wins the vehicle.
Vehicle Inspection	Prior to bidding, buyers have the opportunity to inspect the vehicles either in person at designated Copart facilities or by reviewing detailed inspection reports and photos available on the website. This allows buyers to assess the condition of the vehicle before placing a bid.
Vehicle Transportation	After the auction ends, the winning buyer is responsible for arranging transportation to move the purchased vehicle from the Copart location to their desired destination.

Where Copart Inc primarily generates revenue

Copart Inc generates revenue primarily through the fees it charges to buyers and sellers participating in its online vehicle auctions. While specific financial details and revenue breakdowns are not publicly available for Copart Inc, here are the key areas where the company is expected to generate the most revenue:

Copart Inc Primary Revenue Stream
Buyer Fees	Copart charges fees to buyers for participating in auctions and purchasing vehicles. These fees can include a buyer's premium, transaction fees, and other related charges. The buyer's premium is typically a percentage of the winning bid price.
Seller Fees	Copart also earns revenue through fees charged to sellers who list and sell vehicles through the platform. These fees may include listing fees, transaction fees, and additional services such as vehicle storage or transportation.
Additional Services	Copart offers various additional services to buyers and sellers, such as vehicle transportation, storage, and vehicle history reports. These services may incur additional charges, contributing to the company's revenue streams.
Value-Added Services	Copart may provide value-added services to buyers and sellers, including vehicle inspections, appraisals, and title services. These services can generate revenue through service fees.

It's important to note that the exact revenue breakdown between these sources can vary based on factors such as market conditions, regional differences, and the volume and types of vehicles being auctioned. Additionally, Copart's expansion into international markets may also impact revenue distribution.

Copart Inc Management

Founder & Executive Chairman: Willis Johnson

Willis J. Johnson is the distinguished founder of Copart, Inc., where he held the position of Chief Executive Officer from its inception in 1982 until February 2010. His leadership also extended to the role of President at Copart, Inc., a position he occupied from 1986 until May 1995.

Co-CEO & Director: Jay Adair

Mr. A. Jayson Adair, also known as Jay, is the Co-Chief Executive Officer at Copart, Inc. since April 01, 2022. He previously held the position of Chief Executive Officer from February 2010 to April 01, 2022, and served as President from November 1996 to February 2010. His association with Copart, Inc. dates back to September 1992 when he became a Director, contributing to the company's growth and success.

Co-Chief Executive Officer: Jeff Liaw

Mr. Jeffrey Liaw, also known as Jeff, is currently the Co-Chief Executive Officer at Copart, Inc. since April 01, 2022. He has a diverse background within the company, previously serving as President from September 03, 2019, until April 01, 2022. Mr. Liaw's roles at Copart, Inc. have included Chief Executive Officer of North America from 2021, Senior Vice President of Finance from January 04, 2016, until September 03, 2019, and Chief Financial Officer from January 4, 2016, until 2020. Prior to joining Copart in 2016, he held various positions at FleetPride, Inc. and TPG Capital, L.P., where he focused on Energy and Industrial investing practice areas. He also has significant experience as an Independent Director in several prominent companies. Mr. Liaw earned his B.A. and B.B.A. from the University of Texas in 1999 and an M.B.A. from Harvard University in 2005.

Chief Legal Officer and Corporate Secretary: Paul Kirkpatrick

Paul Kirkpatrick is the leader of Copart's legal department, serving as General Counsel and Chief Legal Officer. He brings a wealth of experience to the role, having previously held similar positions at BayoTech, Inc., Omnitracs (including during its acquisition by Solera Global Holdings), and as a longstanding member of Commercial Metals Company, a Fortune 500 NYSE listed company. With a strong background in corporate law, commercial contracts, real estate, compliance, litigation, and government affairs, Paul plays a crucial role in guiding Copart through various legal matters. He earned his law degree from the Dedman School of Law at Southern Methodist University and holds a bachelor's degree in History from Baylor University. Paul joined Copart in 2022, contributing his expertise to the company's legal affairs.

Chief Operating Officer: Steve Powers

Steve Powers is the Chief Operations (COO) of Copart, overseeing a team of over 5,000 employees across 200+ locations. As COO, he is responsible for optimizing processes and technology to deliver exceptional service to Copart's customers. With a tenure that dates back to 1995, Powers initially joined Copart through the acquisition of New England Recovery (NER) and has since held various leadership roles within the company. Before assuming the position of COO in 2020, he served as the VP of Operations for Copart's Eastern Division from 2010. Powers' extensive experience and dedication contribute to the efficient and customer-centric operations at Copart.

Chief Technology Officer: Rama Prasad

Rama Prasad is the Chief Technology Officer (CTO) at the company since 2014, bringing with him over a decade of executive experience in the technology industry. Prior to his role as CTO, Prasad served as the Senior Vice President and Chief Information Officer of Gogo Inc. His extensive technology background includes positions at prominent companies like Orbitz, US Cellular, Ameritech (AT&T), and Sprint. He holds a Master of Science in Computer Science from the University of Missouri - Rolla, a bachelor's degree in engineering from Osmania University, and is a graduate of the Executive Management Program at Northwestern University. With his wealth of expertise, Prasad plays a pivotal role in driving technological innovation and advancements within the company.

Chief Financial Officer: Leah Stearns

Leah Stearns is the Chief Financial Officer (CFO) at Copart, responsible for overseeing the finance and accounting functions to support the company's ongoing profitable growth. With a wealth of experience as a Fortune 500 executive, she previously served as CFO of CBRE, a global leader in commercial real estate services and investments, and held financial and operational leadership positions at American Tower. Leah earned her MBA from Boston College's Carroll School of Management and holds a bachelor's degree in finance from Boston University's Questrom School of Business. She joined Copart in 2022, bringing her expertise and financial acumen to contribute to the company's success.

Chief Sales Officer: Rob Vannuccini

Rob Vannuccini is the Chief Sales Officer (CSO) at Copart, where he leads one of the automotive remarketing industry's top sales teams. With a tenure at Copart since 1994, he has held various positions within the company, including Vice President of National Accounts and Midwest Regional Account Manager. Prior to becoming CSO in 2010, he gained valuable experience and leadership skills as the Midwest Regional Manager of NER Auction Systems and the Assistant Vice President of Fleet Financial Group. Rob holds a bachelor's degree in Business Administration in Banking and Finance from Hofstra University, and his extensive expertise contributes significantly to Copart's continued success in sales and remarketing.

Ownership

Ownership breakdown

Owner Type	Number of Shares	Ownership Percentage
Institutions	395,731,618	82.9%
Individual Insiders	42,830,902	9.0%
General Public	38,491,678	8.1%
Private Companies	195,478	0.04%
State or Government	190,160	0.04%

• Institutions: This category includes large financial institutions, investment firms, and mutual funds that hold a significant portion of Copart's shares, amounting to 82.9% of the total shares. These institutional investors often manage funds on behalf of their clients, and their substantial ownership signifies strong interest and confidence in Copart's potential.
• Individual Insiders: This refers to company insiders, such as executives, directors, and employees, who hold shares in Copart. They collectively own 9.0% of the shares, indicating that employees and key personnel have a vested interest in the company's success.
• General Public: The general public, which includes individual retail investors, collectively holds 8.1% of Copart's shares. These are individual investors who buy and sell shares through brokerage accounts and are not part of any specific institutional or insider group.
• Private Companies: Private companies own a small percentage of Copart's shares, totaling 0.04%. These could be other businesses or entities that have invested in the company.
• State or Government: This category represents government entities or sovereign wealth funds that own a minor share of Copart, amounting to 0.04%. These entities may invest in companies as part of their investment strategies or as part of their sovereign wealth management.

Top 25 Shareholders

Ownership	Name	Shares	Current Value	Change %	Portfolio %
10.14%	The Vanguard Group, Inc.	48,430,611	$4.3b	0.89%	0.08%
8.07%	BlackRock, Inc.	38,505,590	$3.4b	0.35%	0.07%
5.69%	Willis Johnson	27,167,350	$2.4b	-5.23%	N/A
4.54%	Principal Global Investors, LLC	21,670,906	$1.9b	-1.09%	1.15%
4.19%	Capital Research and Management Company	20,001,567	$1.8b	-2.32%	0.10%
3.78%	AllianceBernstein L.P.	18,054,505	$1.6b	3.05%	0.57%
3.37%	State Street Global Advisors, Inc.	16,069,306	$1.4b	-1.10%	0.07%
3.23%	A. Adair	15,416,496	$1.4b	-2.58%	N/A
1.95%	Geode Capital Management, LLC	9,296,080	$829.2m	2.17%	0.09%
1.74%	JP Morgan Asset Management	8,286,031	$739.1m	5.49%	0.11%
1.54%	Heitman Real Estate Securities LLC	7,362,576	$656.7m	0.00%	2.37%
1.29%	FMR LLC	6,174,766	$550.8m	-2.82%	0.04%
1.22%	William Blair Investment Management, LLC	5,843,882	$521.3m	8.11%	0.81%
1.10%	Wellington Management Group LLP	5,275,406	$470.6m	3.61%	0.08%
0.91%	Northern Trust Global Investments	4,332,531	$386.5m	-0.82%	0.07%
0.88%	Bessemer Investment Management LLC	4,221,881	$376.6m	-0.71%	0.70%
0.88%	Norges Bank Investment Management	4,218,721	$376.3m	0.00%	0.04%
0.83%	Massachusetts Financial Services Company	3,980,863	$355.1m	4.07%	0.08%
0.83%	BNY Mellon Asset Management	3,939,203	$351.4m	-2.40%	0.07%
0.78%	Brown Brothers Harriman & Co., Asset Management Arm	3,729,925	$332.7m	-11.87%	2.06%
0.73%	The London Company of Virginia, LLC	3,494,739	$311.7m	-0.81%	1.71%
0.71%	Boston Partners Global Investors, Inc.	3,406,903	$303.9m	-18.96%	0.22%
0.69%	Eaton Vance Management	3,302,842	$294.6m	18.70%	0.09%
0.59%	Invesco Capital Management LLC	2,821,189	$251.7m	8.53%	0.16%
0.58%	Managed Account Advisors LLC	2,772,580	$247.3m	11.56%	0.06%

The top shareholders table provides information on the largest 25 shareholders who own significant portions of Copart, along with the number of shares they hold and their ownership percentages.

Top 5 Shareholders

1. The Vanguard Group, Inc.: The Vanguard Group is the largest shareholder, owning 48,430,611 shares, which accounts for 10.14% of the company. With a current value of $4.3 billion, they have a significant stake in Copart.
2. BlackRock, Inc.: BlackRock holds the second-largest position with 38,505,590 shares, representing 8.07% ownership. The total value of their shares is $3.4 billion.
3. Willis Johnson: Willis Johnson is a noteworthy individual shareholder with 27,167,350 shares, making up 5.69% of the company. The value of his shares is $2.4 billion.
4. Principal Global Investors, LLC: This institutional investor holds 21,670,906 shares, accounting for 4.54% ownership. The value of their shares is $1.9 billion.
5. Capital Research and Management Company: Capital Research and Management Company owns 20,001,567 shares, representing 4.19% of the company. The total value of their shares is $1.8 billion.

Market

Market capitalization of Copart (CPRT)

As of July 2023, Copart's market capitalization stands at $42.98 Billion, positioning the company as the 423rd most valuable company in the world based on market cap data. Market capitalization, often referred to as market cap, represents the total market value of a publicly traded company's outstanding shares and is a widely used metric to gauge a company's overall worth.

This is the line chart displaying the Market Capitalization of Copart Inc (CPRT) from 2002 to 2023. As seen from the chart, there's been significant growth, particularly in the recent years.

Key insights from the chart include:

1. Increasing Trend: Overall, Copart's market cap has generally increased over the period from 2002 to 2023, suggesting a growing company value. This is a positive sign for the company and its shareholders.
2. Significant Growth Periods: There are periods of significant growth, notably around 2019 to 2020 and 2022 to 2023. In 2019 to 2020, the market cap nearly doubled from around $21.13 billion to $30.04 billion. Similarly, in 2022 to 2023, the market cap rose sharply from $29 billion to $42.98 billion.
3. Periods of Decline: There are also periods where the market cap declined. For instance, the market cap fell from $35.96 billion in 2021 to $29 billion in 2022. Another notable dip occurred in 2008, where the market cap fell from $3.08 billion in 2007 to $2.26 billion, likely due to the global financial crisis during that time.
4. Steady Growth in Early Years: From 2002 to 2006, there was a steady growth in market cap, suggesting a period of steady growth for the company.
5. Current Position: As of July 2023, Copart has a market cap of $42.98 billion. This makes Copart the world's 423rd most valuable company by market cap according to the provided data.

Market capitalization for similar companies or competitors

Name	Symbol	Market Cap	Market Cap Difference
CarMax	KMX	$12.94 B	-69.64%
Rush Enterprises	RUSHA	$3.54 B	-91.77%
America's Car-Mart	CRMT	$0.73 B	-98.30%
Lithia Motors	LAD	$8.04 B	-81.31%
Sonic Automotive	SAH	$1.74 B	-95.96%
Penske Automotive	PAG	$11.38 B	-73.55%
OPENLANE Corporate	KAR	$1.67 B	-96.10%
Group 1 Automotive	GPI	$3.50 B	-91.85%
AutoNation	AN	$6.71 B	-84.40%

Given these comparisons, it's clear that Copart has a significantly larger market cap than any of its listed competitors. This implies that investors value Copart's business more highly, which could be due to a number of factors such as stronger financial performance, better growth prospects, more effective business strategies, or lower risk. As such, Copart can be considered a market leader in its industry. However, it's important to note that while market cap is a useful measure of company size and market leadership, it doesn't tell the whole story, and other factors should also be considered when evaluating a company's market position and performance.

Market segmentation analysis & dynamics

Segmentation	Details
By Type	The vehicle auction market is divided into two primary segments: Whole Car and Salvage Vehicle. The Whole Car segment held the largest share of the market in both value and volume in 2022 and is expected to be the fastest growing segment in the forecast period. This growth is attributed to factors such as the rising popularity of online car auction platforms, which offer 24/7 availability and wider geographic reach, leading to an increase in bidding instances and an overall increase in the resale value of popular car makes.
By Distribution Channel	The distribution channels for the whole car auction market are primarily Online and Physical. In 2022, the online whole car auction market held the largest market share, attributed to the benefits it provides to both buyers and sellers.

Dynamics	Details
Growth Drivers	The growth of the US vehicle auction market is projected to be supported by a number of factors. These include an increase in the average lifespan of vehicles, a rise in internet users, an increase in vehicle accidents, and an increase in revenue per auctioned car pricing. As vehicles age, they are more likely to be considered total losses by insurance companies. These older vehicles are often the first choice for insurers, who then sell them to dismantlers, rebuilders, and recyclers through auctions provided by vehicle auction service providers. This trend not only drives higher revenues for vehicle auction providers, but also supports overall market growth.
Challenges	The market also faces several challenges, including fluctuations in the supply of used vehicles and vulnerability to economic conditions. The online segment in particular may be affected by fraudulent activities.
Trends	The vehicle auction market is expected to experience rapid growth during the forecast period, driven by emerging trends such as the integration of online auctions with artificial intelligence (AI), and the extensive use of data and analytics to streamline operations. AI platforms leverage machine learning and algorithms to provide clear, actionable intelligence to bidders, thereby making the auction process more efficient. As a result, the integration of online auctions with AI is expected to lead to higher dealer participation in vehicle auctions, providing an opportunity for auction service providers to increase their profitability.

A simplified summary of the market analysis:

Market Segmentation:

1. Type: The vehicle auction market is divided into 'Whole Car' and 'Salvage Vehicle'. 'Whole Car' is currently the dominant and fastest growing segment. The rise of online car auction sites has significantly contributed to its growth.
2. Distribution Channel: The market operates via two main channels: 'Online' and 'Physical'. In 2022, online auctions held the largest market share owing to their convenience and benefits to both buyers and sellers.

Market Dynamics:

1. Growth Drivers: The growth of the US vehicle auction market is being driven by several factors such as the increase in the average lifespan of vehicles, rise in internet users, increase in vehicle accidents, and an increase in revenue per auctioned car pricing. The longer lifespan of vehicles has increased their chances of being sold at auctions, leading to higher revenues for auction service providers.
2. Challenges: The market faces challenges such as fluctuations in the supply of used vehicles and vulnerability to economic conditions. Online auctions are particularly susceptible to fraudulent activities.
3. Trends: The market is expected to grow rapidly due to emerging trends like the integration of online auctions with artificial intelligence (AI) and the extensive use of data and analytics to streamline operations. AI has made the auction process more efficient, attracting more dealers to participate in vehicle auctions.

In essence, the vehicle auction market is expanding, driven by the rise of online platforms and technological integrations. However, investors should also be mindful of potential challenges such as supply fluctuations and economic vulnerabilities. Despite these challenges, the market presents numerous opportunities for growth and profitability.

Financials

Financial Statements

Income Statement - (USD 'MM)
Year		2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Revenue		1,046	1,163	1,146	1,268	1,448	1,806	2,042	2,206	2,693	3,501
Cost of Revenue		(625)	(695)	(663)	(724)	(816)	(1,043)	(1,144)	(1,198)	(1,349)	(1,895)
Gross Profit		421	469	483	545	632	762	898	1,008	1,343	1,606
Gross Margin, %		40.2%	40.3%	42.2%	42.9%	43.6%	42.2%	44.0%	45.7%	49.9%	45.9%
EBITDA		344	333	399	469	521	662	808	924	1,265	1,513
EBITDA, %		32.9%	28.6%	34.8%	37.0%	36.0%	36.6%	39.6%	41.9%	47.0%	43.2%
Operating Income (EBIT)		283	275	344	406	461	584	716	816	1,136	1,375
EBIT, %		27.0%	23.6%	30.1%	32.0%	31.9%	32.4%	35.1%	37.0%	42.2%	39.3%
Profit Before Tax		277	270	332	396	440	563	705	801	1,122	1,341
Earnings Before Tax, %		26.5%	23.2%	29.0%	31.2%	30.4%	31.2%	34.5%	36.3%	41.7%	38.3%
Net Profit After Tax		180	179	220	270	394	418	592	700	936	1,090
Profit Margin, %		17.2%	15.4%	19.2%	21.3%	27.2%	23.1%	29.0%	31.7%	34.8%	31.1%
Cash Flow Statement - (USD 'MM)
Year		2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Net Income		180	179	220	270	394	418	592	700	936	1,090
Depreciation & Amortization		57	54	49	50	57	79	85	104	123	139
Deferred income taxes		(4)	(11)	4	6	20	17	23	23	(8)	17
Stock-based compensation		20	22	18	21	21	23	23	23	41	39
Change in working capital		(46)	(8)	(22)	(16)	(21)	(8)	(74)	66	(96)	(125)
Other non-cash items		(7)	26	(4)	2	20	6	(3)	1	(6)	17
Operating Cash Flow		199	263	265	332	492	535	647	918	991	1,177
Investments in PPE		(130)	(82)	(79)	(174)	(172)	(288)	(375)	(604)	(463)	(337)
Acquisitions		(84)	(14)	(5)	-	(164)	(7)	-	(12)	(5)	(109)
Investment purchases		-	-	-	(21)	-	-	-	-	-	(375)
Sales/Maturities of investments		-	-	-	21	-	-	-	-	-	375
Other Investing Activites		6	4	2	1	1	6	18	14	3	4
Investing Cash Flow		(208)	(92)	(82)	(173)	(336)	(288)	(356)	(601)	(465)	(442)
Debt repayment		(97)	(75)	(350)	(338)	(7)	(231)	-	(1)	(1)	(417)
Dividends payments		-	-	-	-	-	-	-	-	-	-
Common Stock Repurchased		(15)	(1)	(237)	(458)	-	-	(365)	-	-	-
Common Stock Issuance		-	-	-	-	-	-	-	-	-	28
Other Financing Activites		46	(1)	708	347	(100)	49	(5)	(26)	42	6
Financing Cash Flow		(66)	(77)	120	(448)	(107)	(182)	(370)	(27)	41	(383)
Cash at beginning of period		140	64	159	456	156	210	275	186	478	1,048
Net cash flow / Change in cash		(76)	95	297	(300)	54	64	(88)	291	571	336
Cash at end of period		64	159	456	156	210	275	186	478	1,048	1,384
Balance Sheet Statement - (USD 'MM)
Year		2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Cash and cash equivalents		64	159	456	156	210	275	186	478	1,048	1,384
Short Term Investments		-	-	-	-	-	-	-	-	-	-
Cash and Short Term Investments		64	159	456	156	210	275	186	478	1,048	1,384
Account Receivables		192	199	222	285	318	367	387	377	501	628
Inventory		11	7	9	10	10	17	21	20	45	59
Other Current Assets		40	47	48	48	49	51	-	-	-	131
Total Current Assets		306	412	735	499	587	709	687	964	1,703	2,202
Goodwill		267	284	272	260	340	337	333	344	356	402
Intangible Assets		18	25	18	12	76	65	55	48	46	55
Goodwill and Intangible Assets		285	309	290	272	416	402	388	391	402	457
Long Term Investments		-	-	-	-	-	-	-	-	-	-
Property, Plant & Equipment Net		678	692	700	817	944	1,163	1,428	2,060	2,416	2,602
Other non-current Assets		35	56	46	38	34	33	44	40	42	48
Total non-current Assets		1,028	1,095	1,065	1,151	1,395	1,599	1,860	2,492	2,860	3,106
Total assets		1,334	1,507	1,800	1,650	1,983	2,308	2,548	3,455	4,562	5,309
Short Term debt		92	80	54	76	82	1	1	26	22	22
Account Payables		71	62	58	77	71	134	271	319	370	399
Deferred revenue		30	32	38	45	56	67	6	8	21	20
Other Current Liabilities		45	70	64	81	93	75	3	4	8	-
Total current liabilities		239	244	213	279	302	277	282	356	421	441
Long Term debt		296	223	592	564	551	399	400	493	496	98
Deferred Revenue Non Current		-	-	-	-	-	-	-	-	-	80
Deferred Tax Liabilities Non Current		8	7	5	4	3	20	49	72	64	80
Other non-current Liabilities		140	85	474	398	373	248	209	257	199	(199)
Total non-current liabilities		334	259	622	597	582	449	487	610	612	242
Total liabilities		572	503	835	875	884	727	769	966	1,033	683
Common Stock		0	0	0	0	0	0	0	0	0	0
Retained earnings		441	619	625	491	745	1,162	1,338	1,938	2,868	3,956
Other Income/Loss		(47)	(20)	(69)	(109)	(101)	(108)	(133)	(121)	(101)	(169)
Other Stockholders Equity		369	405	408	392	453	527	573	673	762	839
Total shareholders equity		762	1,003	964	774	1,098	1,581	1,778	2,490	3,529	4,626
Minority Interest		-	-	-	-	1	-	-	-	-	-
Total Equity		762	1,003	964	774	1,098	1,581	1,778	2,490	3,529	4,626
Total debt		389	303	646	640	633	400	401	518	518	119
Total Investments		-	-	-	-	-	-	-	-	-	-
Net Debt		325	144	190	485	423	125	215	40	(530)	(1,265)

Valuation

DCF

Operating Data - (USD 'MM)
Year	2018	2019	2020	2021	2022	2023	2024	2025	2026	2027
A/F	Actual	Actual	Actual	Actual	Actual	Forecast	Forecast	Forecast	Forecast	Forecast
Revenue	1,806	2,042	2,206	2,693	3,501	4,142	4,899	5,796	6,857	8,111
Revenue Growth, %		13.1%	8.0%	22.1%	30.0%	18.3%	18.3%	18.3%	18.3%	18.3%
EBITDA	662	808	924	1,265	1,513	1,777	2,103	2,487	2,943	3,481
EBITDA, %	36.6%	39.6%	41.9%	47.0%	43.2%	42.9%	42.9%	42.9%	42.9%	42.9%
Depreciation	77	91	108	129	138	187	222	262	310	367
Depreciation, %	4.3%	4.5%	4.9%	4.8%	3.9%	4.5%	4.5%	4.5%	4.5%	4.5%
EBIT	584	716	816	1,136	1,375	1,590	1,881	2,225	2,632	3,114
EBIT, %	32.4%	35.1%	37.0%	42.2%	39.3%	38.4%	38.4%	38.4%	38.4%	38.4%

Balance Sheet Data - (USD 'MM)
Year	2018	2019	2020	2021	2022	2023	2024	2025	2026	2027
A/F	Actual	Actual	Actual	Actual	Actual	Forecast	Forecast	Forecast	Forecast	Forecast
Total Cash	275	186	478	1,048	1,384	1,131	1,338	1,583	1,873	2,216
Total Cash, %	15.2%	9.1%	21.7%	38.9%	39.5%	27.3%	27.3%	27.3%	27.3%	27.3%
Account Receivables	367	387	377	501	628	751	889	1,052	1,244	1,472
Account Receivables, %	20.3%	18.9%	17.1%	18.6%	18.0%	18.1%	18.1%	18.1%	18.1%	18.1%
Inventories	17	21	20	45	59	55	65	77	91	107
Inventories, %	0.9%	1.0%	0.9%	1.7%	1.7%	1.3%	1.3%	1.3%	1.3%	1.3%
Accounts Payable	134	271	319	370	399	547	647	766	906	1,072
Accounts Payable, %	7.4%	13.3%	14.4%	13.7%	11.4%	13.2%	13.2%	13.2%	13.2%	13.2%
Capital Expenditure	(288)	(375)	(604)	(463)	(337)	(495)	(559)	(594)	(653)	(701)
Capital Expenditure, %	15.9%	18.3%	27.4%	17.2%	9.6%	18.1%	18.1%	18.1%	18.1%	18.1%

Build Up Free Cash Flow - (USD 'MM)
Year	2018	2019	2020	2021	2022	2023	2024	2025	2026	2027
A/F	Actual	Actual	Actual	Actual	Actual	Forecast	Forecast	Forecast	Forecast	Forecast
Revenue	1,806	2,042	2,206	2,693	3,501	4,142	4,899	5,796	6,857	8,111
EBITDA	662	808	924	1,265	1,513	1,777	2,103	2,487	2,943	3,481
EBIT	584	716	816	1,136	1,375	1,590	1,881	2,225	2,632	3,114
Tax Rate, %	25.7%	16.1%	12.6%	16.5%	18.7%	16.0%	16.0%	16.0%	16.0%	16.0%
EBIAT	434	601	713	949	1,118	1,336	1,581	1,870	2,212	2,617
Depreciation	77	91	108	129	138	187	222	262	310	367
Accounts Receivable	(49)	(20)	10	(124)	(128)	(123)	(138)	(163)	(192)	(228)
Inventories	(7)	(4)	1	(25)	(14)	4	(10)	(12)	(14)	(17)
Accounts Payable	63	137	48	51	29	148	100	118	140	166
Capital Expenditure	(288)	(375)	(604)	(463)	(337)	(495)	(559)	(594)	(653)	(701)
UFCF	231	431	276	517	806	1,057	1,196	1,482	1,802	2,204
WACC, %						10.0%	10.0%	10.0%	10.0%	10.0%
PV UFCF						961	989	1,113	1,231	1,368
SUM PV UFCF										5,663

Valuation - (USD 'MM)
Terminal Value (Perpetuity Growth method) - (USD 'MM)					Intrinsic Value
Long-term growth rate, %		4.0%			Enterprise Value - (USD 'MM)					29,380
WACC, %		10.0%			Net Debt - (USD 'MM)					-1,265
Free cash flow (t + 1)		2,292			Equity Value - (USD 'MM)					30,644
Terminal Value		38,197			Shares Outstanding, MM					482
Present Value of Terminal Value		23,717			Equity Value Per Share, USD					63.54

Wall Street price targets