Greenlight Company Presentation
Distributing Additional iPrefs
o Once the market establishes a price for iPrefs, Apple can distribute more iPrefs
to reward common shareholders
o As Apple continues to grow, it can distribute even more iPrefs
o Distributing a total of 5 iPrefs per common share would be the equivalent of
almost "doubling the dividend"
Greenlight Capital, Inc.
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Once the market establishes a trading price for iPrefs, assuming that it approximates our expectation,
Apple can roll out the program and reward common shareholders with additional distributions.
Every time the Board determines that Apple can increase its annual dividend capacity by $2 billion, it
can distribute an additional iPref for each common share. Once Apple distributes a total of 5 iPrefs
per common share, it would have a commitment similar to doubling the current common dividend.
Given Apple's current financial position, we believe this would be an appropriate near-term goal.
While iPref distributions combined with the existing dividend would exceed Apple's domestic free
cash flow, we estimate that Apple could fund iPrefs from domestic cash flows and the existing
domestic cash balance without ever needing to repatriate foreign cash, assuming Apple achieves
consensus forecasts.
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