Greenlight Company Presentation

Large One-Time Share Repurchase FY 2013E Net income ($ billions) Pro forma shares outstanding (millions) Pro forma EPS Post-deal P/E multiple Pro forma Apple share price 15% sold at $600 plus 85% of shares at $528 Current stock price Value unlocked Greenlight Capital, Inc. $42.5 805 $53 10.0x $528 $539 $450 $89 22 15% fewer shares means 17% higher earnings. You can see that EPS goes from $45 to about $53. We assume that the P/E stays constant on the higher earnings so the post-tender value is $528 per share. When you blend the $528 per share on the 85% of remaining shares with the 15% of shares that are tendered at $600, you get a combined value to shareholders of $539 per share. In this scenario, Apple unlocks up to $89 a share in value. To the extent that the market is already crediting Apple for the cash, the P/E post repurchase will shrink, and the amount unlocked would be lower. Just like the one-time dividend, this plan will unlock between $0 and $89 per share. The large repurchase is a more tax-efficient way for shareholders to get to the same place. 22

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