Message-ID: <11277980.1075840866265.JavaMail.evans@thyme> Date: Thu, 22 Mar 2001 11:11:00 -0800 (PST) From: maria.garcia@enron.com To: louise.kitchen@enron.com Subject: Vitro Project - Sale of Equity Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit X-From: Maria E Garcia X-To: Louise Kitchen X-cc: X-bcc: X-Folder: \ExMerge - Kitchen, Louise\'Americas\Mexico X-Origin: KITCHEN-L X-FileName: louise kitchen 2-7-02.pst Louise, I believe the following will clarify the question from our meeting yesterday, The $20MM figure that I was showing to you represents the NPV (discounted @17.6%) of the future cashflows of the project for 100% ownership from June/01 Through Dec/17. This number does not include the moneys than Enron will have put into the project by that time. The amount put by Enron by that time will be $18MM (for 100%) If we do de transaction, we will get the following cashflows: The premium $14.1MM Reimbursement of 80% of the $18MM already put by Enron $14.4MM Keep 20% of future NPVs $ 4.0MM The potential investor will contribute in the future the equity contributions for 50% of the ownership The potential investor will give us in June/01 the amount of future equity contributions for the 30% of the ownership The above shows the cashflows that we will be received under the 2 alternatives but this does not reflect the transaction from an earnings perspective. From the earnings perspective, the following is a simplified estimation of earnings for the next 7 years under the two situations: Please, let me know if you need further clarification Thanks, Mar?a Elena P.S. Regarding the $23MM NPV number that you see in Max's presentation, that is the project NPV when all cashflows discounted @ 13.2%. The IRR for the project is 17.6%