Private & Confidential
4Q 2016 Sum of the Parts Valuation (Dilutive) without AOCI
8
As of the close of the
fourth quarter, the
estimated net value of
our assets and
liabilities was $19.96
per share of diluted
common stock, an
increase of 16.8% from
our June 30th value,
and an increase of
41.9% from year-end
Fiscal 2015.
SUM OF THE PARTS VALUATION – ESTIMATED VALUE VS. COMMON STOCK PRICE ($)
$18.20
$6.00
$3.70 $0.85 -$8.79
$19.96
$15.70
Difference of $4.26
or a 21.3% Discount
Spectrum
Brands1
Insurance
Segment2
Total
Estimated
Value6
September 30th
Common Stock
Price7
Cash4 Debt &
Other
Liabilities5
Other3
1. The valuation of HRG’s interest in Spectrum Brands (NYSE: SPB) is based on the volume weighted average closing price (“VWAP”) of SPB shares
for the 20 day trading period of $131.68 through September 30, 2016 multiplied by the 27,756,905 SPB shares owned by HRG.
2. The valuation of HRG’s interest in the insurance segment reflects the sum of the per-share-value of its interests in (i) Fidelity & Guaranty Life
(NYSE: FGL) based on the VWAP of FGL shares for the 20-day trading period of $23.23 through September 30, 2016 multiplied by the
47,000,000 shares owned by HRG (or $5.44 per share); and (ii) Front Street Re (Holdings) Ltd., representing a net book value of $112.2 million,
or $0.56 per share.
3. Reflects the valuations of HGI Funding LLC, HGI Energy Holdings LLC and HGI Asset Management Holdings LLC at net book of values as of
September 30, 2016; includes the market value of 6,582,847 SPB shares held.
4. Total cash consists of cash at HRG as of September 30, 2016.
5. Debt and other liabilities includes the face value of all liabilities at HRG as of September 30, 2016, excluding deferred tax liabilities.
6. Per share amount for each of the above mentioned assets and liabilities is calculated by dividing the total valuation of such asset or liability by the
200,789,135 shares of HRG common stock (NYSE: HRG) outstanding as of September 30, 2016, which amount does gives effect to dilution for
the vesting of all outstanding restricted shares (1,975,047).
7. The closing price for HRG’s shares of common stock September 30, 2016.
Note: Book value as reflected above is not necessarily indicative of market value
