Apple Inc. - Financial Statements ($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands) Assumptions & Valuation Overview Valuation Date: Company Name: Share Price:
1/29/2010 Apple Inc. $192.06
Last Historical Year: Debt Issue Date: Share Units:
Basic Shares Outstanding: Basic Equity Value: Diluted Shares Outstanding: Diluted Equity Value: Less: Cash & Investments Plus: Debt Plus: Minority Interest Plus: Preferred Stock Plus: Other Liabilities Enterprise Value:
900,678 $172,984 920,526 $176,796 $35,395 $0 $0 $0 $0 $141,401
Options Calculations (in Thousands Except Exercise Price):
Name Tranche A Tranche B Tranche C Tranche D Tranche E Total
Number 34,375
2009 2010 1000
Exercise Price $81.17
Days in Year: Debt Amount: Tax Rate:
Dilution 19,847
19,847
Historical Projections FY 2007 FY 2008 FY 2009 FY 2010E FY 2011E FY 2012E EV / Revenue: EV / EBIT: EV / EBITDA:
5.8 x 30.4 x 28.4 x
3.8 x 16.0 x 15.1 x
3.3 x 11.4 x 10.7 x
2.6 x 9.1 x 8.6 x
2.3 x 7.8 x 7.3 x
2.0 x 7.0 x 6.6 x
Equity Value / FCF: P / E: P / BV:
37.3 x 48.9 x
20.8 x 28.3 x 7.9 x
17.1 x 21.2 x 5.6 x
13.5 x 16.6 x 4.1 x
12.1 x 14.1 x 3.1 x
10.9 x 12.2 x 2.4 x
Operating Assumptions
Historical Projections FY 2007 FY 2008 FY 2009 FY 2010E FY 2011E FY 2012E Revenue Growth %: COGS % Revenue: R&D % Revenue: SG&A % Revenue:
27.2% 66.2% 2.4% 11.1%
52.5% 64.1% 2.0% 8.9%
14.4% 59.0% 1.9% 8.3%
25.0% 59.0% 1.9% 8.3%
17.0% 59.0% 1.9% 8.3%
11.0% 59.0% 1.9% 8.3%
Stock-Based Compensation % Revenue: Depreciation & Amortization % Revenue: Effective Cash Interest Rate: Debt Interest Rate: Effective Tax Rate:
1.0% 1.3% 5.3% 0.0% 30.2%
1.4% 1.3% 3.4% 0.0% 31.6%
1.7% 1.7% 1.4% 0.0% 31.8%
1.7% 1.7% 1.0% 9.0% 30.0%
1.7% 1.7% 1.0% 9.0% 30.0%
1.7% 1.7% 2.0% 9.0% 30.0%
6.5% 23.3 2.1%
7.8% 28.2 1.8%
7.8% 28.2 1.8% $40
7.8% 28.2 1.8% $37
7.8% 28.2 1.8% $28
23.0% 82.6 102.9% 4.3% 2.0%
22.1% 79.6 87.6% 4.8% 2.0%
22.1% 79.6 87.6% 4.8% 2.0%
22.1% 79.6 87.6% 4.8% 2.0%
22.1% 79.6 87.6% 4.8% 2.0%
2.9%
2.7%
2.7%
2.7%
2.7%
Accounts Receivable % Revenue: Accounts Receivable Days: Inventory % COGS: Amortization of Intangibles: Accounts Payable % COGS: Accounts Payable Days: Accrued Expenses % Operating Expenses: Short-Term Deferred Revenue % Revenue: Long-Term Deferred Revenue % Revenue: CapEx % Revenue:
3.0%
Income Statement
Revenue: Cost of Goods Sold:
FY 2007
FY 2008
FY 2009 FY 2010E FY 2011E FY 2012E
$24,578 $16,282
$37,491 $24,049
$42,905 $25,324
$53,631 $31,655
$62,749 $37,037
$69,651 $41,111
Gross Profit: Operating Expenses: Research & Development: Selling, General & Administrative: Total Operating Expenses: Depreciation & Amortization of PP&E: Amortization of Intangibles: Stock-Based Compensation:
$8,296
$13,442
$17,581
$21,976
$25,712
$28,540
$596 $2,724 $3,320
$759 $3,345 $4,103
$830 $3,566 $4,397
$1,038 $4,458 $5,496
$1,214 $5,216 $6,430
$1,348 $5,789 $7,137
$327 $0 $242
$496 $0 $516
$734 $0 $710
$918 $40 $888
$1,073 $37 $1,038
$1,192 $28 $1,153
Operating Income: Interest Income: Interest Expense: Other Income & Expense: Pre-Tax Income: Income Tax Provision:
$4,407 $647 $0 ($48) $5,006 $1,511
$8,327 $11,740 $14,635 $17,133 $19,030 $653 $407 $424 $568 $1,443 $0 $0 ($45) ($90) ($90) ($33) ($81) $0 $0 $0 $8,947 $12,066 $15,014 $17,610 $20,383 $2,828 $3,831 $4,504 $5,283 $6,115
Net Income:
$3,495
$6,119
$8,235
Earnings Per Share (EPS): Diluted Shares Outstanding:
$3.93 889,292
$6.78 902,139
$9.08 907,005
$4,649 $4,976 $4,735
$8,843 $9,339 $8,505 $24.17
EBIT: EBITDA: Levered Free Cash Flow: Book Value Per Share (BV):
$12,450 $13,184 $10,311 $34.56
$10,510 $11.59 907,005 $15,523 $16,480 $13,061 $47.17
$12,327 $13.59 907,005 $18,171 $19,282 $14,618 $61.94
$14,268 $15.73 907,005 $20,183 $21,403 $16,158 $78.98
Balance Sheet FY 2008 Assets: Current Assets: Cash & Cash-Equivalents: Short-Term Securities:
$11,875 $10,236
FY 2009 FY 2010E FY 2011E FY 2012E
$6,559 $26,282
$20,620 $26,282
$35,238 $26,282
$51,396 $26,282
Accounts Receivable: Inventory: Deferred Tax Assets: Other Current Assets: Total Current Assets:
$2,422 $509 $1,044 $3,920 $30,006
$3,361 $455 $4 $3,140 $39,801
$4,201 $569 $4 $3,140 $54,816
$4,915 $665 $4 $3,140 $70,245
$5,456 $739 $4 $3,140 $87,017
Long-Term Assets: Long-Term Securities: Plants, Property & Equipment: Goodwill: Other Intangible Assets: Other Assets: Total Assets:
$2,379 $2,455 $207 $285 $839 $36,171
$2,554 $2,839 $207 $354 $2,011 $47,766
$2,554 $3,352 $207 $314 $2,011 $63,253
$2,554 $3,951 $207 $277 $2,011 $79,245
$2,554 $4,617 $207 $249 $2,011 $96,654
Liabilities & Shareholders' Equity: Current Liabilities: Accounts Payable: Accrued Expenses: Deferred Revenue: Total Current Liabilities:
$5,520 $4,224 $1,617 $11,361
$5,601 $3,852 $2,053 $11,506
$7,001 $4,815 $2,566 $14,383
$8,191 $5,634 $3,003 $16,828
$9,093 $6,253 $3,333 $18,679
Long-Term Liabilities: Deferred Revenue: Long-Term Debt: Other Long-Term Liabilities: Total Liabilities:
$768 $0 $1,745 $13,874
$853 $0 $3,502 $15,861
$1,066 $1,000 $3,502 $19,951
$1,248 $1,000 $3,502 $22,577
$1,385 $1,000 $3,502 $24,565
$7,177 $1,185 $0 $23,364 $179
$7,177 $2,073 $0 $33,874 $179
$7,177 $3,111 $0 $46,201 $179
$7,177 $4,263 $0 $60,470 $179
Shareholders' Equity: Common Stock: Additional Paid-In Capital: Treasury Stock: Retained Earnings: Accumulated Other Comprehensive Income:
$7,177 $0 $0 $15,129 ($9)
Total Shareholders' Equity:
$22,297
$31,905
$43,302
$56,668
$72,089
Total Liabilities & SE:
$36,171
$47,766
$63,253
$79,245
$96,654
$0.000
$0.000
$0.000
$0.000
$0.000
BALANCE CHECK: Cash Flow Statement FY 2007 Operating Activities: Net Income: $3,495 Depreciation & Amortization of PP&E: $327 Amortization of Intangibles: $0 Stock-Based Compensation: $242 Deferred Income Tax Expense: $73 Loss on PP&E: $12 Changes in Operating Assets & Liabilities: Accounts Receivable: ($385) Inventory: ($76) Other Current Assets: ($1,279) Other Assets: $285 Accounts Payable: $1,494 Deferred Revenue: $566 Other Liabilities: $716 Cash Flow from Operations: $5,470 Investing Activities: Purchases of Securities: Proceeds from Maturities & Sales: Purchases of LT Investments: Capital Expenditures: Acquisition of Intangibles: Other: Cash Flow from Investing:
FY 2008 $6,119 $496 $0 $516 $398 $22
FY 2009 FY 2010E FY 2011E FY 2012E $8,235 $734 $0 $710 $1,040 $26
$10,510 $918 $40 $888 $0 $0
$12,327 $1,073 $37 $1,038 $0 $0
$14,268 $1,192 $28 $1,153 $0 $0
($785) ($939) ($840) ($714) ($541) ($163) $54 ($114) ($97) ($73) ($274) $780 $0 $0 $0 $289 ($1,172) $0 $0 $0 $596 $81 $1,400 $1,190 $901 $718 $521 $727 $618 $468 $1,664 $1,385 $963 $819 $620 $9,596 $11,455 $14,491 $16,292 $18,015
($11,719) ($22,965) ($46,724) $0 $0 $0 $9,424 $16,243 $30,678 $0 $0 $0 ($17) ($38) ($101) $0 $0 $0 ($735) ($1,091) ($1,144) ($1,430) ($1,673) ($1,857) ($251) ($108) ($69) $0 $0 $0 $49 ($230) ($74) $0 $0 $0 ($3,249) ($8,189) ### ($1,430) ($1,673) ($1,857)
Financing Activities: Proceeds from Common Stock: Common Stock Repurchased: Dividends Issued: Tax Benefits from Stock-Based Comp: Raise / (Pay Off) Long-Term Debt Cash Used for Equity Awards: Cash Flow from Financing: Increase / Decrease in Cash: Cash & Cash Equivalents:
$365 $0 $0 $377 $0 ($3) $739 $2,960 $9,352
$483 $0 $0 $757 $0 ($124) $1,116 $2,523 $11,875
$475 $0 $0 $270 $0 ($82) $663
$0 $0 $0 $0 $1,000 $0 $1,000
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
($5,316) $14,061 $6,559 $20,620
$14,618 $35,238
$16,158 $51,396
ays in Year: ebt Amount:
360 $1,000 30%
t Exercise Price):
ojections FY 2013E FY 2014E 1.9 x 6.4 x 6.1 x
1.7 x 6.0 x 5.7 x
10.1 x 11.1 x 2.0 x
9.1 x 9.8 x 1.6 x
ojections FY 2013E FY 2014E 9.0% 59.0% 1.9% 8.3%
7.0% 59.0% 1.9% 8.3%
1.7% 1.7% 2.0% 9.0% 30.0%
1.7% 1.7% 3.0% 9.0% 30.0%
7.8% 28.2 1.8% $13
7.8% 28.2 1.8% $10
22.1% 79.6 87.6% 4.8% 2.0%
22.1% 79.6 87.6% 4.8% 2.0%
2.7%
2.7%
FY 2013E FY 2014E $75,919 $44,811
$81,234 $47,948
$31,109
$33,286
$1,469 $6,311 $7,780
$1,572 $6,752 $8,324
$1,299 $13 $1,256
$1,390 $10 $1,344
$20,761 $22,218 $1,780 $3,223 ($90) ($90) $0 $0 $22,450 $25,351 $6,735 $7,605 $15,715 $17.33 907,005 $22,017 $23,329 $17,507 $97.70
$17,746 $19.56 907,005 $23,562 $24,962 $19,382 $118.76
FY 2013E FY 2014E
$68,903 $26,282
$88,285 $26,282
$5,947 $805 $4 $3,140 ###
$6,364 $861 $4 $3,140 ###
$2,554 $5,342 $207 $236 $2,011 ###
$2,554 $6,118 $207 $226 $2,011 ###
$9,911 $6,816 $3,633 $20,360
$10,605 $7,293 $3,887 $21,785
$1,509 $1,000 $3,502 $26,371
$1,615 $1,000 $3,502 $27,902
$7,177 $5,520 $0 $76,185 $179
$7,177 $6,864 $0 $93,930 $179
$89,061 ### $0.000
### ### $0.000
FY 2013E FY 2014E $15,715 $1,299 $13 $1,256 $0 $0
$17,746 $1,390 $10 $1,344 $0 $0
($491) ($416) ($66) ($56) $0 $0 $0 $0 $818 $694 $425 $360 $563 $477 $19,532 $21,548
$0 $0 $0 $0 $0 $0 ($2,024) ($2,166) $0 $0 $0 $0 ($2,024) ($2,166)
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$17,507 $68,903
$19,382 $88,285
Err:502 ($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands) Err:502
Methodology Name Public Company Comparables: 2009 EV / Revenue: 2010E EV / Revenue: 2009 EV / EBITDA: 2010E EV / EBITDA: 2009 P / E: 2010E P / E: Precedent Transactions: Trailing EV / Revenue: Forward EV / Revenue: Trailing EV / EBITDA: Forward EV / EBITDA: Discounted Cash Flow Analysis: 11-15% Discount Rate, 5-9x Terminal Multiple:
Err:502 25th Pecentile Multiple
Minimum Multiple
0.3 0.3 4.4 3.7 15.0 10.9
x x x x x x
0.5 0.5 7.3 5.1 16.1 12.2
x x x x x x
0.4 0.4 8.7 9.6
x x x x
1.9 2.1 11.5 13.4
x x x x
Thousands) Err:502
Err:502
75th Pecentile Multiple
Median Multiple
Maximum Multiple
Applicable Err:502 Figure
Minimum Multiple
25th Pecentile Multiple
1.1 1.0 7.6 5.5 19.7 16.3
x x x x x x
2.8 2.3 10.6 6.8 29.1 16.6
x x x x x x
3.1 2.6 11.5 8.4 47.2 44.6
x x x x x x
$42,905 $53,631 $13,184 $16,480 $9.08 $11.59
$
52.12 54.32 101.49 103.84 136.10 126.68
$
59.64 66.62 143.02 129.06 145.77 140.94
2.7 2.7 14.4 19.1
x x x x
6.0 5.0 17.3 23.9
x x x x
8.3 7.5 39.7 32.8
x x x x
$42,905 $53,631 $13,184 $16,480
$
57.41 63.66 162.40 211.19
$
129.08 163.31 202.99 277.70
$
163.88
$
182.19
Err:502
Median Multiple
75th Pecentile Multiple
Maximum Multiple
$
89.08 96.83 146.90 137.54 179.19 188.68
$
170.37 173.80 190.08 160.94 264.11 192.55
$
181.29 189.43 203.41 187.95 428.24 516.50
$
165.82 198.04 244.29 379.76
$
319.62 328.66 285.53 465.76
$
424.32 472.85 606.40 625.62
$
201.98
$
223.36
$
246.46
Balance Sheet Adjustment:
$35,395
Public Company Comparables 2009 EV / Revenue: 2010E EV / Revenue: 2009 EV / EBITDA: 2010E EV / EBITDA: 2009 P / E: 2010E P / E:
Precedent Transactions Trailing EV / Revenue: Forward EV / Revenue: Trailing EV / EBITDA: Forward EV / EBITDA:
Discounted Cash Flow Analysis 11-15% Discount Rate, 5-9x Terminal Multiple: $-
11-15% Discount Rate, 5-9x Terminal Multiple:
$100.00
$200.00
$300.00
Min. 25th $ 163.88 $ 182.19
Forward EV / EBITDA: Trailing EV / EBITDA: Forward EV / Revenue: Trailing EV / Revenue:
$ $ $ $
211.19 162.40 63.66 57.41
$ $ $ $
277.70 202.99 163.31 129.08
2010E P / E: 2009 P / E: 2010E EV / EBITDA: 2009 EV / EBITDA: 2010E EV / Revenue: 2009 EV / Revenue:
$ $ $ $ $ $
126.68 136.10 103.84 101.49 54.32 52.12
$ $ $ $ $ $
140.94 145.77 129.06 143.02 66.62 59.64
$400.00
$5
75th to Max Median to 75th 25th to Median Min to 25th
$300.00
$400.00
$500.00
$600.00
$700.00
Median 75th Max Min Point 25 Point Med Point 75 Point Max Point $ 201.98 $ 223.36 $ 246.46 $ 163.88 $ 18.31 $ 19.79 $ 21.38 $ 23.10 $ $ $ $
379.76 244.29 198.04 165.82
$ $ $ $
465.76 285.53 328.66 319.62
$ $ $ $
625.62 606.40 472.85 424.32
$ $ $ $
211.19 162.40 63.66 57.41
$ $ $ $
66.51 40.59 99.65 71.67
$ $ $ $
102.06 41.30 34.73 36.74
$ $ $ $
86.00 41.24 130.62 153.80
$ $ $ $
159.85 320.86 144.19 104.70
$ $ $ $ $ $
188.68 179.19 137.54 146.90 96.83 89.08
$ $ $ $ $ $
192.55 264.11 160.94 190.08 173.80 170.37
$ $ $ $ $ $
516.50 428.24 187.95 203.41 189.43 181.29
$ $ $ $ $ $
126.68 136.10 103.84 101.49 54.32 52.12
$ $ $ $ $ $
14.26 9.67 25.23 41.53 12.31 7.53
$ $ $ $ $ $
47.74 33.43 8.47 3.87 30.21 29.44
$ $ $ $ $ $
3.87 84.92 23.41 43.18 76.97 81.29
$ $ $ $ $ $
323.95 164.13 27.01 13.33 15.63 10.93
Comparable Companies - US-Based Hardware & Networking Companies with Over $20 ($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands) Operating Statistics Company Name Hewlett-Packard Company Dell Inc. Cisco Systems, Inc. Intel Corporation Motorola, Inc.
Share Price $ 47.07 12.90 22.47 19.40 6.15
Capitalization Equity Enterprise Revenue Value Value 2009 $ 114,779 $ 124,430 $ 114,552 25,241 15,080 51,430 131,739 106,671 34,807 107,224 92,786 32,784 14,239 10,665 23,457
Maximum 75th Percentile Median 25th Percentile Minimum
$ 47.07 22.47 $ 19.40 12.90 6.15
$ 131,739 114,779 $107,224 25,241 14,239
$ 124,430 106,671 $ 92,786 15,080 10,665
$ 114,552 51,430 $ 34,807 32,784 23,457
Apple Inc.
$192.06
$176,796
$141,401
$42,905
Company Name Hewlett-Packard Company Dell Inc. Cisco Systems, Inc. Intel Corporation Motorola, Inc.
Share Price $ 47.07 12.90 22.47 19.40 6.15
Capitalization Equity Enterprise Value Value $ 114,779 $ 124,430 25,241 15,080 131,739 106,671 107,224 92,786 14,239 10,665
Maximum 75th Percentile Median 25th Percentile Minimum
$ 47.07 22.47 $ 19.40 12.90 6.15
$ 131,739 114,779 $107,224 25,241 14,239
$ 124,430 106,671 $ 92,786 15,080 10,665
3.1 x 2.8 x 1.1 x 0.5 x 0.3 x
Apple Inc.
$192.06
$176,796
$141,401
3.3 x
Valuation Statistics
Enterprise Value / Revenue 2009 1.1 x 0.3 x 3.1 x 2.8 x 0.5 x
mpanies with Over $20 Billion Revenue Thousands)
Revenue 2010E $ 124,179 55,380 41,163 39,941 22,056 $ 124,179 55,380 $ 41,163 39,941 22,056 $ 53,631
Enterprise Value / Revenue 2010E 1.0 0.3 2.6 2.3 0.5
x x x x x
EBITDA 2009 2010E $ 16,433 $ 18,186 3,426 4,129 10,076 12,774 12,708 18,332 926 1,927
2009 2010E $ 3.14 $ 3.87 0.79 1.18 0.97 1.38 0.41 1.17 (1.70) 0.14
$
$
16,433 12,708 $ 10,076 3,426 926 $13,184
$
18,332 18,186 $ 12,774 4,129 1,927 $16,480
Enterprise Value / EBITDA 2009 2010E 7.6 x 6.8 4.4 x 3.7 10.6 x 8.4 7.3 x 5.1 11.5 x 5.5
x x x x x
EPS
$
3.14 $ 0.97 0.79 $ 0.41 (1.70) $9.08
$
Projected Revenue Growth 8.4% 7.7% 18.3% 21.8% (6.0%)
EBITDA Margin 2009 14.3% 6.7% 28.9% 38.8% 3.9%
3.87 1.38 1.18 1.17 0.14
21.8% 18.3% 8.4% 7.7% (6.0%)
38.8% 28.9% 14.3% 6.7% 3.9%
11.59
25.0%
30.7%
P / E Multiple 2009 2010E 15.0 x 12.2 16.4 x 10.9 23.1 x 16.3 47.2 x 16.6 NM 44.6
x x x x x
2.6 x 2.3 x 1.0 x 0.5 x 0.3 x
11.5 x 10.6 x 7.6 x 7.3 x 4.4 x
8.4 x 6.8 x 5.5 x 5.1 x 3.7 x
47.2 x 29.1 x 19.7 x 16.1 x 15.0 x
44.6 x 16.6 x 16.3 x 12.2 x 10.9 x
2.6 x
10.7 x
8.6 x
21.2 x
16.6 x
EBITDA Margin 2010E 14.6% 7.5% 31.0% 45.9% 8.7% 45.9% 31.0% 14.6% 8.7% 7.5% 30.7%
Networking & Hardware M&A Transactions Over $1 Billion with US-Based Sellers Since ($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands) Err:502
Acquirer Name Hewlett-Packard Company Cisco Systems, Inc. Emerson Electric Co. EMC Corporation Oracle Corporation Brocade Communication Systems, Inc.
Target Name 3Com Starent Networks Avocent Data Domain Sun Microsystems Foundry Networks Maximum 75th Percentile Median 25th Percentile Minimum
Date 11/11/2009 10/13/2009 10/6/2009 7/8/2009 4/20/2009 7/21/2008
h US-Based Sellers Since 1/1/2008 n Thousands) Operating Metrics
Valuatio
Equity Enterprise Trailing Value Value Revenue $ 3,180 $ 2,714 $ 1,265 2,777 2,386 288 1,114 1,147 611 2,362 2,085 301 7,075 5,392 13,256 2,899 2,063 621
Forward Revenue $ 1,223 320 542 375 12,462 633
Trailing EBITDA $ 152 154 105 53 623 156
Forward EBITDA $ 110 110 93 64 559 125
$
$
$
$
$
7,075 3,110 2,838 2,466 1,114
$ $
5,392 2,632 2,235 2,068 1,147
$ $
13,256 1,104 616 378 288
$
12,462 1,075 587 417 320
$
623 155 153 117 53
$
559 121 110 97 64
EV / Trailing Revenue 2.1 x 8.3 x 1.9 x 6.9 x 0.4 x 3.3 x 8.3 x 6.0 x 2.7 x 1.9 x 0.4 x
Valuation Multiples EV / EV / Forward Trailing Revenue EBITDA 2.2 x 17.8 x 7.5 x 15.5 x 2.1 x 10.9 x 5.6 x 39.7 x 0.4 x 8.7 x 3.3 x 13.2 x 7.5 x 5.0 x 2.7 x 2.1 x 0.4 x
39.7 x 17.3 x 14.4 x 11.5 x 8.7 x
EV / Forward EBITDA 24.6 x 21.6 x 12.3 x 32.8 x 9.6 x 16.5 x 32.8 x 23.9 x 19.1 x 13.4 x 9.6 x
Err:502 ($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands) Err:502 FY 2010E FY 2011E FY 2012E Revenue: EBITDA: Operating Income:
$53,631 $16,480 $14,635
Less: Taxes
($4,391)
Plus: Depreciation Plus: Amortization Plus: Stock-Based Compensation Less: Increase in Working Capital: Less: Capital Expenditures Unlevered Free Cash Flow Present Value of Free Cash Flow Normal Discount Period: Mid-Year Discount:
$918 $40 $888 $2,136 ($1,430) $12,795 $12,064 1.000 0.500
Free Cash Flow Growth Rate:
$62,749 $ 19,282 $ 17,133
$69,651 $ 21,403 $ 19,030
($5,140)
($5,709)
$1,073 $37 $1,038
$1,192 $28 $1,153
$1,815 ($1,673)
$1,374 ($1,857)
$14,284 $11,971
$15,211 $11,332
2.000 1.500
3.000 2.500
11.6%
6.5%
Terminal Growth Rate
Err:502 10.0% $ 220.90 $ 220.90 $ 220.90 $220.90 $ 220.90 $ 220.90
11.0% $ 214.27 $ 214.27 $ 214.27 $214.27 $ 214.27 $ 214.27
Discount Rate 12.0% 13.0% 14.0% $ 207.97 $201.98 $ 196.28 $ 207.97 $201.98 $ 196.28 $ 207.97 $201.98 $ 196.28 $207.97 $201.98 $196.28 $ 207.97 $201.98 $ 196.28 $ 207.97 $201.98 $ 196.28
$ 204.96 10.0% 4.0 x $ 170.39 5.0 x $ 187.23
11.0% $ 165.99 $ 182.09
Discount Rate 12.0% 13.0% 14.0% $ 161.81 $157.83 $ 154.03 $ 177.20 $172.54 $ 168.11
$ 204.96 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%
Terminal EBITDA Multiple
Err:502
Terminal EBITDA Multiple
6.0 x 7.0 x 8.0 x 9.0 x
$ 204.06 $220.90 $ 237.74 $ 254.58
$ 198.18 $214.27 $ 230.37 $ 246.46
$ 192.59 $207.97 $ 223.36 $ 238.75
$187.26 $201.98 $216.70 $231.42
$ 182.19 $196.28 $ 210.36 $ 224.44
n Thousands) Err:502 FY 2013E FY 2014E $75,919 $ 23,329 $ 20,761
$81,234 $ 24,962 $ 22,218
($6,228)
($6,665)
$1,299 $13 $1,256
$1,390 $10 $1,344
$1,248 ($2,024)
$1,058 ($2,166)
$16,324 $10,811
$17,189 $10,119
4.000 3.500
5.000 4.500
7.3%
5.3%
e 15.0% $ 190.85 $ 190.85 $ 190.85 $190.85 $ 190.85 $ 190.85
16.0% $ 185.68 $ 185.68 $ 185.68 $185.68 $ 185.68 $ 185.68
15.0% $ 150.40 $ 163.88
16.0% $ 146.95 $ 159.86
e
Use Multiples Method? Discount Rate:
Yes 12.5%
Terminal EBITDA Multiple: Terminal Growth Rate: Terminal Value:
7.0 x 3.0% $ 174,733
PV of Terminal Value: Sum of PV of Cash Flows: Enterprise Value:
$96,980 $56,296 $153,276
Terminal Value % EV:
63.3%
Enterprise Value: Balance Sheet Adjustment: Implied Equity Value:
$153,276 $35,395 $188,671
Implied Price Per Share:
$ 204.96
$ 177.37 $190.85 $ 204.33 $ 217.81
$ 172.77 $185.68 $ 198.59 $ 211.50
Err:502 ($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands) Discount Rate Calculation - Assumptions Risk-Free Rate: Equity Risk Premium: Interest Rate on Debt:
4.38% 7.00% 9.00%
Comparable Companies - Unlevered Beta Calculation Levered Equity Name Beta Debt Value Hewlett-Packard Company 1.04 $ 15,830 $ 114,779 Dell Inc. 1.31 3,793 25,241 Cisco Systems, Inc. 1.23 10,273 131,739 Intel Corporation 1.17 2,224 107,224 Motorola, Inc. 1.87 3,925 14,239 Median
1.23
Apple Inc.
1.57
Tax Rate 20.0% 27.0% 22.0% 33.0% 34.0%
Err:502 Unlevered Beta Apple Inc.
1.16
Debt $0
Equity Value $176,796
Tax Rate 30%
Cost of Equity Based on Comparables: Cost of Equity Based on Historical Beta:
WACC = Cost of Equity * % Equity + Cost of Debt * % Debt * (1 - Tax Rate) + Cost of Preferred Sto WACC
housands)
Unlevered Beta 0.94 1.18 1.16 1.15 1.58 1.16
Levered Beta 1.16 12.50% 15.37%
e) + Cost of Preferred Stock * % Preferred Stock 12.50%
Err:502 ($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands) Transaction Assumptions Per Share Purchase Price: % Cash: % Debt: % Stock: Foregone Cash Interest Rate:
$75.00 33.3% 33.3% 33.3% 1.0%
Revenue Synergy %: Cost Synergies % OpEx:
10.0% 10.0%
Equity Purchase Price: Cash Used: Debt Issued: New Shares Issued: Debt Interest Rate: Revenue Synergy COGS %:
Goodwill Creation & Balance Sheet Adjustments Goodwill Calculation: Equity Purchase Price: Less: Seller Book Value: Plus: Write-Off of Existing Goodwill: Total Allocable Purchase Premium: Less: Write-Up of PP&E: Less: Write-Up of Intangibles: Less: Write-Down of DTL: Plus: New Deferred Tax Liability: Total Goodwill Created:
$43,049 ($6,987) $147 $36,209 ($174) ($7,242) ($43) $2,225 $30,975
Fixed Asset Write-Up: PP&E Write-Up %: PP&E Write-Up Amount: Depreciation Period (Years):
Intangible Asset Write-Up: Purchase Price to Allocate: % Allocated to Intangibles: Intangibles Write-Up Amount: Amortization Period (Years): New Deferred Tax Liability:
Buyer - Financial Profile Buyer Name: Share Price: Diluted Shares Outstanding: Diluted Equity Value: Enterprise Value: Tax Rate:
Seller - Financial Profile Apple Inc. $192.06 920,526 $176,796 $141,401 30%
Buyer - Income Statement
Revenue: Cost of Goods Sold: Gross Profit:
Seller Name: Share Price: Diluted Shares Outstanding: Diluted Equity Value: Enterprise Value: Tax Rate:
Seller - Income Statement FY 2010E FY 2011E $53,631 $62,749 $31,655 $37,037 $21,976 $25,712
Revenue: Cost of Goods Sold: Gross Profit:
Operating Expenses:
$5,496
$6,430
Depreciation of PP&E: Amortization of Intangibles: Stock-Based Compensation:
$918 $40 $888
$1,073 $37 $1,038
Depreciation of PP&E: Amortization of Intangibles: Stock-Based Compensation:
Operating Income: Interest Income / (Expense): Pre-Tax Income: Income Tax Provision:
$14,635 $379 $15,014 $4,504
$17,133 $478 $17,610 $5,283
Operating Income: Interest Income / (Expense) Pre-Tax Income: Income Tax Provision:
Net Income:
$10,510
$12,327
Net Income:
Earnings Per Share (EPS): Diluted Shares Outstanding:
$11.59 907,005
$13.59 907,005
Combined Income Statement
Combined Revenue: Revenue Synergies: Cost of Goods Sold: Revenue Synergy COGS: Gross Profit: Operating Expenses: OpEx Synergies: Depreciation of PP&E: Depr. of PP&E Write-Up: Amortization of Intangibles: Amort. of New Intangibles: Stock-Based Compensation:
FY 2010E FY 2011E $70,862 $83,617 $1,723 $2,087 $41,410 $48,905 $862 $1,043 $30,313 $35,755 $8,193 $270
$9,689 $326
$1,348 $22 $399 $1,448 $939
$1,637 $22 $470 $1,448 $1,101
Operating Income: Interest Income / (Expense): Foregone Interest on Cash: Interest Paid on New Debt: Pre-Tax Income: Income Tax Provision:
$18,233 $21,713 $404 $510 ($143) ($143) ($1,291) ($1,291) $17,203 $20,789 $5,161 $6,237
Net Income:
$12,042
$14,552
$12.27
$14.82
Earnings Per Share (EPS):
Operating Expenses:
Earnings Per Share (EPS): Diluted Shares Outstanding:
Diluted Shares Outstanding: Accretion / Dilution: Accretion / Dilution %:
981,719
981,719
$0.68 5.9%
$1.23 9.1%
Per Share Purchase Price
Sensitivity Analysis - Year 1 EPS Accretion/Dilution and Purchase Price vs. Operating Ex
5.9% $110.00 $105.00 $100.00 $ 95.00 $ 90.00 $ 85.00 $ 80.00 $ 75.00 $ 70.00 $ 65.00
0.0% (8.2%) (6.5%) (4.8%) (3.0%) (1.2%) 0.6% 2.4% 4.2% 6.0% 7.9%
2.0% (7.9%) (6.2%) (4.5%) (2.7%) (0.9%) 0.9% 2.7% 4.5% 6.4% 8.3%
Expense Synergies % Seller OpEx: 4.0% 6.0% 8.0% (7.6%) (7.3%) (7.0%) (5.9%) (5.6%) (5.2%) (4.1%) (3.8%) (3.5%) (2.4%) (2.0%) (1.7%) (0.6%) (0.3%) 0.1% 1.2% 1.5% 1.9% 3.0% 3.4% 3.7% 4.9% 5.2% 5.5% 6.7% 7.0% 7.4% 8.6% 8.9% 9.3%
Per Share Purchase Price
Sensitivity Analysis - Year 1 EPS Accretion/Dilution and Purchase Price vs. Revenue Syn
5.9% $110.00 $105.00 $100.00 $ 95.00 $ 90.00 $ 85.00 $ 80.00 $ 75.00 $ 70.00 $ 65.00
0.0% (11.8%) (10.1%) (8.3%) (6.6%) (4.8%) (3.1%) (1.3%) 0.6% 2.4% 4.2%
2.0% (10.7%) (9.0%) (7.3%) (5.6%) (3.8%) (2.0%) (0.2%) 1.6% 3.5% 5.3%
Revenue Synergies % Seller Revenue: 4.0% 6.0% 8.0% (9.7%) (8.7%) (7.7%) (8.0%) (7.0%) (5.9%) (6.3%) (5.2%) (4.2%) (4.5%) (3.5%) (2.4%) (2.7%) (1.7%) (0.7%) (1.0%) 0.1% 1.1% 0.9% 1.9% 3.0% 2.7% 3.7% 4.8% 4.5% 5.6% 6.6% 6.4% 7.4% 8.5%
n Thousands)
quity Purchase Price: ash Used: ebt Issued: ew Shares Issued: ebt Interest Rate:
$43,049 $14,350 $14,350 74,714 9.0%
evenue Synergy COGS %:
50.0%
ixed Asset Write-Up: P&E Write-Up %: P&E Write-Up Amount: epreciation Period (Years):
10.0% $174 8
ntangible Asset Write-Up: urchase Price to Allocate: % Allocated to Intangibles: tangibles Write-Up Amount: mortization Period (Years):
ew Deferred Tax Liability:
$36,209 20.0% $7,242 5 $2,225
eller - Financial Profile
eller Name: Research in Motion Limited hare Price: $62.91 iluted Shares Outstanding: 572,951 iluted Equity Value: $36,044 nterprise Value: $33,547 28%
eller - Income Statement
ost of Goods Sold: Gross Profit:
FY 2010E FY 2011E $17,231 $20,868 $9,755 $11,869 $7,476 $9,000
perating Expenses:
$2,698
$3,259
Depreciation of PP&E: Amortization of Intangibles: Stock-Based Compensation:
$431 $359 $52
$563 $433 $63
perating Income: Interest Income / (Expense): re-Tax Income: come Tax Provision:
$3,937 $25 $3,962 $1,148
$4,682 $33 $4,714 $1,343
et Income:
$2,814
$3,371
arnings Per Share (EPS): iluted Shares Outstanding:
$5.03 560,000
$6.02 560,000
se Price vs. Operating Expense Synergies:
rgies % Seller OpEx: 10.0% 12.0% (6.6%) (6.3%) (4.9%) (4.6%) (3.2%) (2.8%) (1.4%) (1.1%) 0.4% 0.7% 2.2% 2.5% 4.0% 4.3% 5.9% 6.2% 7.7% 8.0% 9.6% 9.9%
14.0% (6.0%) (4.3%) (2.5%) (0.7%) 1.0% 2.9% 4.7% 6.5% 8.4% 10.3%
16.0% (5.7%) (3.9%) (2.2%) (0.4%) 1.4% 3.2% 5.0% 6.9% 8.7% 10.6%
se Price vs. Revenue Synergies:
gies % Seller Revenue: 10.0% 12.0% (6.6%) (5.6%) (4.9%) (3.9%) (3.2%) (2.1%) (1.4%) (0.4%) 0.4% 1.4% 2.2% 3.2% 4.0% 5.1% 5.9% 6.9% 7.7% 8.8% 9.6% 10.7%
14.0% (4.6%) (2.9%) (1.1%) 0.7% 2.5% 4.3% 6.1% 8.0% 9.8% 11.7%
16.0% (3.6%) (1.8%) (0.1%) 1.7% 3.5% 5.3% 7.2% 9.0% 10.9% 12.8%
Merger Model - Seller Diluted Share Count & Combined Balance Sheets ($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands) Diluted Share & Enterprise Value Calculations - Seller Company Name: Share Price: Offer Price Per Share:
Research in Motion Limited $62.91 $75.00 Tax Rate:
Current Share Price: Basic Shares Outstanding: 568,900 Basic Equity Value: $35,789 Diluted Shares Outstanding: 572,951 Diluted Equity Value: $36,044 Less: Cash & Investments $2,498 Plus: Debt $0 Plus: Minority Interest $0 Plus: Preferred Stock $0 Plus: Other Liabilities $0 Enterprise Value: $33,547
28%
Purchase Price: Basic Shares Outstanding: Basic Equity Value: Diluted Shares Outstanding: Diluted Equity Value: Less: Cash & Investments Plus: Debt Plus: Minority Interest Plus: Preferred Stock Plus: Other Liabilities Enterprise Value:
568,900 $42,668 573,986 $43,049 $2,498 $0 $0 $0 $0 $40,551
Balance Sheets - Buyer, Seller & Combined Assets: Current Assets: Cash & Short-Term Securities: Accounts Receivable: Inventory: Deferred Tax Assets: Other Current Assets: Total Current Assets:
Buyer $32,841 $3,361 $455 $4 $3,140 $39,801
Seller $1,664 $2,613 $573 $176 $190 $5,215
Adjustments
Long-Term Assets: Long-Term Securities: Plants, Property & Equipment: Goodwill: Other Intangible Assets: Other Assets: Total Assets:
$2,554 $2,839 $207 $354 $2,011 $47,766
$834 $1,737 $147 $1,291 $0 $9,224
Liabilities & Shareholders' Equity: Current Liabilities: Accounts Payable: Accrued Expenses: Deferred Revenue: Total Current Liabilities:
$5,601 $3,852 $2,053 $11,506
$496 $1,604 $67 $2,167
Long-Term Liabilities: Deferred Revenue: Long-Term Debt: Deferred Income Tax Liability: Other Long-Term Liabilities: Total Liabilities:
$853 $0 $0 $3,502 $15,861
$0 $0 $43 $28 $2,238
Shareholders' Equity: Common Stock: Additional Paid-In Capital: Treasury Stock: Retained Earnings: Accumulated Other Comprehensive Income: Total Shareholders' Equity:
$7,177 $1,185 $0 $23,364 $179 $31,905
$2,236 $139 ($45) $4,664 ($8) $6,987
Total Liabilities & SE:
$47,766
$9,224
Options Calculations - Current Price:
Name Tranche A Tranche B Total
Number 10,470
Exercise Price $38.57
Dilution 4,051 4,051
Options Calculations - Purchase Price:
Name Tranche A Tranche B Total
Number 10,470
Exercise Price $38.57
Dilution 5,086 5,086
Adjustments
Combined
($14,350) $0 $0 $0 $0 ###
$20,156 $5,974 $1,028 $180 $3,330 $30,667
$0 $174 $30,828 $7,242 $0 $23,894
$3,388 $4,750 $31,182 $8,887 $2,011 $80,884
$0 $0 $0 $0
$6,097 $5,456 $2,120 $13,673
$0 $14,350 $2,181 $0 $16,531
$853 $14,350 $2,225 $3,530 $34,630
($2,236) $14,211 $45 ($4,664) $8 $7,363 $23,894
$7,177 $15,535 $0 $23,364 $179 $46,255 $80,884
Apple Inc. - Basic LBO Model ($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands) Transaction Assumptions Current Share Price: Offer Premium: Offer Price Per Share: % Debt: % Equity: Purchase Price Calculations: Basic Shares Outstanding: Basic Equity Value: Diluted Shares Outstanding: Diluted Equity Value: Less: Cash & Investments Plus: Debt Plus: Minority Interest Plus: Preferred Stock Plus: Other Liabilities Enterprise Value:
$192.06 20.0% $192.06 50.0% 50.0%
900,678 $172,984 920,526 $176,796 $35,395 $0 $0 $0 $0 ###
Equity Purchase Price: Enterprise Value: EBITDA Purchase Multiple: Debt Required: Equity Used: EBITDA Exit Multiple: Advisory Fee %: Financing Fee %: Options Calculations - Purchase Price:
Name Tranche A Tranche B Total
Exercise Number Price 34,375 $81.17
Dilution 19,847 19,847
Debt Assumptions Debt %: Bank Debt %: High-Yield Debt %:
50.0% 75.0% 25.0%
Debt Required: Bank Debt: High-Yield Debt:
Bank Debt Interest Rate: High-Yield Debt Interest Rate:
8.0% 11.0%
Bank Debt Principal Repayment %: High-Yield Debt Principal Repayment %:
Sources & Uses Sources: Bank Debt: High-Yield Debt: Investor Equity: Total Sources:
Uses: $39,779 $13,260 $123,824 ###
Equity Value of Company: Advisory Fees: Financing Fees: Total Uses:
Operating Assumptions Initial Cash Balance: Minimum Cash Balance:
$6,559 $5,000
FY 2007
Historical FY 2008 FY 2009
Projections FY 2010E FY 2011E FY 2012E
Revenue Growth %: COGS % Revenue: R&D % Revenue: SG&A % Revenue:
27.2% 66.2% 2.4% 11.1%
52.5% 64.1% 2.0% 8.9%
14.4% 59.0% 1.9% 8.3%
25.0% 59.0% 1.9% 8.3%
17.0% 59.0% 1.9% 8.3%
11.0% 59.0% 1.9% 8.3%
Stock-Based Compensation % Revenue: Depreciation & Amortization % Revenue: Effective Cash Interest Rate: Effective Tax Rate:
1.0% 1.3% 5.3% 30.2%
1.4% 1.3% 3.4% 31.6%
1.7% 1.7% 1.4% 31.8%
1.7% 1.7% 1.0% 30.0%
1.7% 1.7% 1.0% 30.0%
1.7% 1.7% 2.0% 30.0%
1.7% 2.7%
$40 4.0% 2.7%
$37 2.9% 2.7%
$28 2.0% 2.7%
Amortization of Intangibles: Change in Working Capital % Revenue: CapEx % Revenue:
5.4% 3.0%
5.5% 2.9%
Income Statement FY 2007
FY 2008
FY 2009
FY 2010E FY 2011E FY 2012E
Revenue: Cost of Goods Sold: Gross Profit: Operating Expenses: Research & Development: Selling, General & Administrative: Total Operating Expenses:
$24,578 $16,282 $8,296
$37,491 $24,049 $13,442
$42,905 $25,324 $17,581
$53,631 $31,655 $21,976
$62,749 $37,037 $25,712
$69,651 $41,111 $28,540
$596 $2,724 $3,320
$759 $3,345 $4,103
$830 $3,566 $4,397
$1,038 $4,458 $5,496
$1,214 $5,216 $6,430
$1,348 $5,789 $7,137
$327 $0 $242
$496 $0 $516
$734 $0 $710
$918 $40 $888
$1,073 $37 $1,038
$1,192 $28 $1,153
Operating Income: Interest Income / (Expense): Pre-Tax Income: Income Tax Provision:
$4,407 $599 $5,006 $1,511
$8,327 $620 $8,947 $2,828
$11,740 $326 $12,066 $3,831
$14,635 $17,133 $19,030 ($8,627) ($7,954) ($6,850) $6,008 $9,179 $12,180 $1,802 $2,754 $3,654
Net Income: EBITDA:
$3,495 $4,976
$6,119 $9,339
$8,235 $13,184
$4,205 $16,480
FY 2007
FY 2008
Depreciation & Amortization of PP&E: Amortization of Intangibles: Stock-Based Compensation:
$6,425 $19,282
$8,526 $21,403
Cash Flow Statement Operating Activities: Net Income: Depreciation & Amortization of PP&E: Amortization of Intangibles: Stock-Based Compensation: Decrease (Increase) in Working Capital: Cash Flow from Operations: Capital Expenditures: Free Cash Flow:
FY 2009
FY 2010E FY 2011E FY 2012E $4,205 $918 $40 $888 $2,136 $8,186
$6,425 $1,073 $37 $1,038 $1,815 $10,389
($1,430)
($1,673)
$6,756
$8,716
$8,526 $1,192 $28 $1,153 $1,374 $12,273 ($1,857) $10,415
Beginning Cash Balance: Plus: Free Cash Flow: Less: Minimum Cash Balance:
$6,559 $6,756 ($5,000)
$5,000 $8,716 ($5,000)
$5,000 $10,415 ($5,000)
Cash Available for Debt Repayment: Cash Used for Debt Repayment:
$8,315 ($8,315)
$8,716 $10,415 ($8,716) ($10,415)
Beginning Cash Balance: Net Change in Cash: Ending Cash Balance:
$6,559 ($1,559) $5,000
$5,000 $0 $5,000
$5,000 $0 $5,000
Debt & Interest Schedules FY 2007
FY 2008
FY 2009
FY 2010E FY 2011E FY 2012E
Beginning Bank Debt: Mandatory Repayment: Optional Repayment: Ending Bank Debt:
$39,779 $71,453 $62,736 ($3,978) ($7,977) ($7,977) ($338) ($740) ($2,439) $71,453 $62,736 $52,321
Beginning High-Yield Debt: Mandatory Repayment: Optional Repayment: Ending High-Yield Debt:
$26,589 $0 $0 $26,589
Interest Paid on Debt: Interest Earned on Cash:
($8,974) $346
Net Interest Income / (Expense):
$26,589 $0 $0 $26,589 ($8,292) $338
$26,589 $0 $0 $26,589 ($7,527) $677
($8,627) ($7,954) ($6,850)
Investor Returns FY 2007
FY 2008
FY 2009
FY 2010E FY 2011E FY 2012E
EBITDA: EBITDA Multiple: Enterprise Value: Investor Equity:
$13,184 10.7 x $141,401 ($123,824)
IRR:
$0
$0
$0
12.3%
Purchase Premium / Per-Share Price
Sensitivity Analysis - 5-Year IRR and Purchase Premium vs. Exit Multiple
$278.49 $268.88 $259.28 $249.68 $240.08 $230.47 $220.87 $211.27 $201.66 $192.06
12.3% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
6.0 x 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
7.0 x 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
8.0 x 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
Exit Multiple: 9.0 x 10.0 x 11.0 x 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
12.0 x 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
Purchase Premium / Per-Share Price
Sensitivity Analysis - 5-Year IRR and Purchase Premium vs. % Debt:
$278.49 $268.88 $259.28 $249.68 $240.08 $230.47 $220.87
12.3% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0%
30.0% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
35.0% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
40.0% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
45.0% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
% Debt: 50.0% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
55.0% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
60.0% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
Purchase Pre Per-Share
$211.27 $201.66 $192.06
10.0% 5.0% 0.0%
12.3% 12.3% 12.3%
12.3% 12.3% 12.3%
12.3% 12.3% 12.3%
12.3% 12.3% 12.3%
12.3% 12.3% 12.3%
12.3% 12.3% 12.3%
12.3% 12.3% 12.3%
$176,796 $141,401 10.7 x $53,039 $88,398 10.0 x 0.02% 0.06%
$53,039 $39,779 $13,260 10.0% 0.0%
$176,796 $35 $32 ###
ojections FY 2013E FY 2014E 9.0% 59.0% 1.9% 8.3%
7.0% 59.0% 1.9% 8.3%
1.7% 1.7% 2.0% 30.0%
1.7% 1.7% 3.0% 30.0%
$13 1.6% 2.7%
$10 1.3% 2.7%
FY 2013E FY 2014E
$75,919 $44,811 $31,109
$81,234 $47,948 $33,286
$1,469 $6,311 $7,780
$1,572 $6,752 $8,324
$1,299 $13 $1,256
$1,390 $10 $1,344
$20,761 $22,218 ($5,947) ($4,563) $14,813 $17,655 $4,444 $5,297 $10,369 $23,329
$12,359 $24,962
FY 2013E FY 2014E $10,369 $1,299 $13 $1,256 $1,248 $14,186 ($2,024) $12,161
$12,359 $1,390 $10 $1,344 $1,058 $16,161 ($2,166) $13,995
$5,000 $12,161 ($5,000)
$5,000 $13,995 ($5,000)
$12,161 $13,995 ($12,161) ($13,995) $5,000 $0 $5,000
$5,000 $0 $5,000
FY 2013E FY 2014E $52,321 $40,159 ($7,977) ($7,977) ($4,185) ($6,018) $40,159 $26,165 $26,589 $0 $0 $26,589
$26,589 $0 $0 $26,589
($6,624) $677
($5,578) $1,015
($5,947)
($4,563)
FY 2013E FY 2014E
$0
$24,962 10.0 x $249,618 $230,700
13.0 x 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
14.0 x 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
65.0% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
70.0% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
12.3% 12.3% 12.3%
12.3% 12.3% 12.3%
