Apple Inc. (AAPL) $94.72 U.S

Apple Inc. (AAPL) $94.72 U.S. Dollar | Bmrk/Ind: FactSet Country / Electronic Technology SEC As of: 23 Jul '14

Profile Key Items

Sector Industry Mkt Cap (B) EV (B) Sales (B) Trading Information Valuation 5Y Trend Current vs. Ind vs. Bmrk Electronic Technology Computer Processing Hardware $571.1 $546.7 $177.7 Current Price $94.72 P/E (LTM) 15.3 0.9 0.9 52 Wk Range $59.82 97.10 P/E (NTM) 13.8 0.9 0.8 Apple, Inc. designs, manufactures, and markets mobile communication and media devices, personal Avg Daily Vol (3m) 64.07 (M) P/Sales 3.2 1.6 2.0 computers, portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and thirdparty digital content and applications. Its products and services include iPhone, Short Int (% of P/Bk 4.8 1.4 3.4 1.9% iPad, iPod, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Float) P/CF 10.2 0.9 1.0 OS X operating systems, iCloud, and accessories, service and support offerings. The company also sells and Key Statistics EV/EBITDA 9.2 0.9 0.9 delivers digital content and applications through the iTunes Store, App Store, iBooks Store, and Mac App Store. Mkt Value (B) $571.1 EV/Sales 3.1 1.5 1.2 It sells its products worldwide through its retail stores, online stores, and direct sales force and thirdparty cellular network carriers, wholesalers, retailers, and valueadded resellers to the consumer and also sells third Ent Value (B) $546.7 party iPhone, iPad, Mac and iPod compatible products, including application software, and accessories, through Shares Out (M) 6,030 Profitability (%) 10Y Trend LTM Ind Bmrk its online and retail stores. The company was founded by Steven Paul Jobs, Steve Wozniak and Ronald Gerald Dividend (Ann) $1.88 Gross Margin 37.5 33.3 30.4 Wayne on April 1, 1976 and is headquartered in Cupertino, CA. Div Yld 2.0% EBITDA Margin 32.4 19.9 17.2 EBIT Margin 28.1 14.9 12.0 Net Margin 21.5 11.1 8.2 $94.72 Estimates EPS (FY0) $5.68 ROE 29.5 17.9 13.5 YTD 18.2% EPS (FY1) $6.31 3M 24.7% EPS (FY2) $6.97 Growth (%) 10Y Trend LTM Ind Bmrk 1Y 55.5% Beta 0.26 Coverage 51 Analysts Sales 3.8 2.3 3.3 FY1 PE 15.0x Target Price $102.49 EBITDA 0.8 4.3 4.3 LT Growth Rate 12.2% EBIT 5.5 3.8 5.8 Avg Rating Overweight (1.32) EPS (Dil) 0.1 8.5 5.2

Price & Volume StreetAccount News

22 JUL '14 11:55 P.M. (ET) Apple target raised to $105 from $96 at ISI Group

22 JUL '14 11:30 P.M. (ET) Apple CEO Tim Cook: "[Declining iPad sales aren't] something that worries us" WSJ

22 JUL '14 8:27 P.M. (ET)

WSJ's Heard on the Street column says Apple is speculative proposition

22 JUL '14 4:34 P.M. (ET) StreetAccount Metrics Recap Apple Q3 Earnings

22 JUL '14 4:31 P.M. (ET) Apple reports Q3 EPS $1.28 vs FactSet $1.23

21 JUL '14 8:48 P.M. (ET) Apple's initial production run for iPhone 6 is 7080M units WSJ

21 JUL '14 3:27 P.M. (ET) StreetAccount Consensus Metrics Preview Apple Q3 Earnings

Key Estimates Corporate Information

Earnings FY 13 FY 14E FY 15E Q3 14 Q4 14E Q1 15E Q2 15E Management Board Timothy Donald Cook, 53 Arthur D. Levinson, 64 EPS GAAP 5.68 6.31 6.97 1.28 1.33 2.32 1.77 Chief Executive Officer & Director Chairman Growth (%) 10.0 11.1 10.5 19.9 12.5 12.2 6.5 Jeffrey E. Williams, 50 Timothy Donald Cook, 53 EPS Non GAAP 5.68 6.32 6.95 1.26 1.30 2.31 1.74 Senior Vice PresidentOperations Chief Executive Officer & Director Growth (%) 10.0 11.3 10.0 18.0 10.3 11.6 4.7 Luca Maestri, 50 Millard S. Drexler, 69 Income Statement (B) FY 13 FY 14E FY 15E Q3 14 Q4 14E Q1 15E Q2 15E Chief Financial Officer & Senior Vice President Independent Director Sales 170.9 181.4 196.8 37.4 40.4 62.4 49.2 D. Bruce Sewell, 55 Al A. Gore, 65 Growth (%) 9.2 6.1 8.5 6.0 7.7 8.3 7.7 Secretary, Senior Vice President & General Counsel Independent Director EBITDA 55.8 60.1 65.0 12.2 12.8 21.6 16.4 Paul Deneve Andrea Jung, 55 Growth (%) 4.7 7.8 8.2 12.2 8.2 10.2 5.8 Vice President Independent Director Gary Wipfler Ronald D. Sugar, 65 Operating Income 49.0 51.6 54.6 10.1 10.5 18.5 13.9 Treasurer & Vice President Independent Director Growth (%) 11.3 5.2 6.0 9.5 5.1 6.1 1.9 Net Income 37.0 38.9 41.3 7.7 8.0 13.9 10.5 Growth (%) 11.3 5.1 6.2 12.3 6.2 6.2 2.2 1 Infinite Loop Christina Caballero Fiscal Year September Per Share FY 13 FY 14E FY 15E Q3 14 Q4 14E Q1 15E Q2 15E Cupertino, California Investor Relations Contact Exchange NASDAQ Dividends per Share 1.63 1.83 1.97 0.47 0.47 0.47 0.47 950142083 [email protected] ISIN US0378331005 Cash Flow per Share 8.20 8.70 9.19 1.55 1.89 3.36 2.10 United States apple.com CUSIP 037833100 Free Cash Flow per Share 6.98 7.63 7.91 0.98 1.45 3.37 1.32 Employees (2013) 80,300 SEDOL 2046251 Book Value per Share 19.14 20.55 22.85 19.98 19.93 20.98 21.31

Ownership Summary Top Holders Institutions and Insiders

FLOAT 99.9% Institutions Position (000) % O/S % Port 3M Chg (000) Mkt Value (USD) Shares Out 6,029,666,816 The Vanguard Group, Inc. 327,008 5.4 2.0 17,950 30,718,777,344 Short Interest 112,308,792 SSgA Funds Management, Inc. 249,162 4.1 2.4 18,211 23,405,985,792 BlackRock Fund Advisors 237,188 3.9 1.8 4,534 22,281,156,608 Fidelity Management & Research Co. 165,848 2.8 1.9 21,263 15,579,569,152 Northern Trust Investments, Inc. 89,734 1.5 2.4 1,936 8,429,509,632 INSIDER 0.1% Inst. Ownership 62.6% Invesco PowerShares Capital Managemen... 69,779 1.2 8.1 1,808 6,554,971,648 North American 22.5% T. Rowe Price Associates, Inc. 58,791 1.0 1.1 16,263 5,522,747,904 NonNorth American 8.6% Icahn Associates Corp. 52,761 0.9 14.9 19,646 4,956,301,312 Inst Ownership as % of Float 62.7% Geode Capital Management LLC 47,996 0.8 2.6 189 4,508,689,408 Top 10 Inst. Holders 22.3% Norges Bank Investment Management 46,857 0.8 0.8 5,946 4,401,691,648 TIAACREF Investment Management LLC 44,375 0.7 2.1 2,011 4,168,526,848 Capital Research & Management Co. (Gl... 43,827 0.7 1.0 20,853 4,117,041,664

Insiders Position (000) % O/S % Port 3M Chg (000) Mkt Value (USD) NET POSITION CHANGE 149,845,248 Wellcome Trust Ltd. (Direct Investments) 3,395 0.1 6.3 175 318,922,912 Total (2717) 3,777,236,224 LEVINSON ARTHUR D 1,153 0.0 99.3 0 108,300,960 New (160) 21,824,024 Increase (1084) 204,719,360 COOK TIMOTHY DONALD 612 0.0 100.0 0 57,452,812 Decrease (1129) 339,092,736 GORE ALBERT ARNOLD 438 0.0 100.0 0 41,113,436 Soldout (152) 37,295,896 FEDERIGHI CRAIG 293 0.0 100.0 4 27,480,634

Segments Snapshot Quarterly (B) Targets & Ratings

Jun '14 YoY % % of Sales Sep '14E YoY % 3Y Trend Sales 37.4 6.0 100.0 40.4 7.7 iPhone 19.8 8.8 52.8 21.3 9.1 iPad 5.9 7.6 15.7 6.3 2.2 Mac 5.5 13.2 14.8 5.8 3.0 iTunes/Software/Services 4.5 12.4 12.0 4.8 13.0 Accessories 1.3 12.4 3.5 1.4 5.5 iPod 0.4 39.7 1.2 0.3 40.3 Software, Service & Co LOW MEAN HIGH 51.43 45.70% 102.49 8.20% 135.00 42.53% Peripherals & Hardware Music Related Product Mac Laptops

* Only 10 out of 11 segments shown. See all...

Estimate Growth Quarterly Surprise History Quarterly EPS Q4 '13 Q4 '14E Growth (YoY%) 1.18 1.33 12.5%

Period After Event Mean Surp Amt Surp (%) Period After Event Mean Surp Amt Surp (%) Sales (B) Q4 '13 Q4 '14E Growth (YoY%) Q4 '14 E 1.33 Q4 '14 E 40.4 37.5 40.4 7.7% Q3 '14 1.28 1.23 0.05 3.9 Q3 '14 37.4 38.0 0.6 1.6 Q2 '14 1.66 1.46 0.20 13.7 Q2 '14 45.6 43.7 2.0 4.5 Q1 '14 2.07 2.01 0.06 2.9 Q1 '14 57.6 57.5 0.1 0.2 Q4 '13 1.18 1.13 0.05 4.0 Q4 '13 37.5 36.9 0.5 1.4 Q3 '13 1.07 1.04 0.03 2.5 Q3 '13 35.3 35.0 0.3 0.9 Q2 '13 1.44 1.42 0.02 1.2 Q2 '13 43.6 42.3 1.3 3.1 Q1 '13 1.97 1.92 0.05 2.5 Q1 '13 54.5 54.9 0.4 0.8 Q4 '12 1.24 1.25 0.02 1.2 Q4 '12 36.0 35.7 0.3 0.8

Estimate Table Sales Consensus Trend Annual (B) Sales (B)

FY Ending Sep '07 Sep '08 Sep '09 Sep '10 Sep '11 Sep '12 Sep '13 Sep '14E Sep '15E Q1 (Dec) 7.1 9.6 10.2 15.7 26.7 46.3 54.5 57.6 62.4 Q2 (Mar) 5.3 7.5 8.2 13.5 24.7 39.2 43.6 45.6 49.2 Q3 (Jun) 5.4 7.5 8.3 15.7 28.6 35.0 35.3 37.4 41.9 Q4 (Sep) 6.2 7.9 9.9 20.3 28.3 36.0 37.5 40.4 43.6 Fiscal Year 24.0 32.5 36.5 65.2 108.2 156.5 170.9 181.4 196.8 EV/Sales (x) 4.9 2.3 3.6 3.2 2.5 3.2 1.8 2.4 2.1 CY Ending Dec '07 Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14E Dec '15E Cal. Year 26.1 33.5 43.8 76.1 120.3 160.2 173.6 185.3 199.2 EV/Sales (x) 6.0 1.5 3.5 3.1 2.4 2.3 2.1 2.3 2.1

Growth (YoY%)

FY Ending Sep '07 Sep '08 Sep '09 Sep '10 Sep '11 Sep '12 Sep '13 Sep '14E Sep '15E Q1 (Dec) 23.8 35.0 5.8 54.3 70.5 73.3 17.7 5.7 8.3 Q2 (Mar) 20.8 42.7 8.7 65.4 82.7 58.9 11.3 4.7 7.7 Q3 (Jun) 23.8 38.0 11.7 88.3 82.0 22.6 0.9 6.0 12.0 Q4 (Sep) 28.5 27.0 25.0 106.1 39.0 27.2 4.2 7.7 8.1 Fiscal Year 24.3 35.3 12.5 78.5 66.0 44.6 9.2 6.1 8.5 CY Ending Dec '07 Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14E Dec '15E Cal. Year 27.4 28.4 30.6 73.8 58.2 33.2 8.3 6.8 7.5

Sales Broker Detail Q4 '14E (B) Sales Broker Revisions Q4 '14E (B)

Consensus Guidance # of Brokers Consensus Guidance 1M Revision 1W Revision 40.4 37.0 40.0 44 40.4 37.0 40.0 1.1% 0.6%

Top 16 Brokers Research Estimate Bottom 16 Brokers Research Estimate HI Investment & Sec... 23 Jul '14 47.3 RBC Capital Markets 23 Jul '14 39.6 Restricted 5 18 Jul '14 42.4 Restricted 1 23 Jul '14 39.6 Restricted 8 10 Jun '14 42.3 Mizuho Securities USA 23 Jul '14 39.2 FBN Securities 24 Apr '14 42.3 Bernstein Research 23 Jul '14 39.1 Cross Research 23 Jul '14 41.8 Canaccord Genuity 23 Jul '14 39.0 Oppenheimer 24 Apr '14 41.5 Needham 02 Jun '14 38.9 Restricted 4 21 Jul '14 41.3 Nomura Research 23 Jul '14 38.6 JMP Securities 18 Jul '14 41.2 Raymond James 23 Jul '14 38.4 Cowen & Company 18 Jul '14 41.1 BTIG 30 Jun '14 38.4 Susquehanna Financi... 14 Jul '14 41.0 Restricted 2 23 Jul '14 38.3 ISI Group Inc. 03 Jul '14 40.9 Pacific Crest 16 Jul '14 37.6 Societe Generale 13 Jun '14 40.9 ABG Sundal Collier 26 Jun '14 37.5 Shinhan Investment ... 24 Apr '14 40.9 Restricted 9 Piper Jaffray 21 Jul '14 40.8 Restricted 6 Restricted 7 15 Jul '14 40.7 Restricted 3 Avondale Partners 18 Jul '14 40.7 Credit Suisse

* Only 32 of the 44 brokers are shown in this See report. all...

Estimate Table EPS Consensus Trend Annual EPS

FY Ending Sep '07 Sep '08 Sep '09 Sep '10 Sep '11 Sep '12 Sep '13 Sep '14E Sep '15E Q1 (Dec) 0.16 0.25 0.25 0.52 0.92 1.98 1.97 2.07 2.32 Q2 (Mar) 0.12 0.17 0.19 0.48 0.91 1.76 1.44 1.66 1.77 Q3 (Jun) 0.13 0.17 0.19 0.50 1.11 1.33 1.07 1.28 1.41 Q4 (Sep) 0.14 0.18 0.26 0.66 1.01 1.24 1.18 1.33 1.49 Fiscal Year 0.56 0.77 0.90 2.16 3.95 6.31 5.68 6.31 6.97 P/E (x) 39.1 21.2 29.5 18.7 13.8 15.1 12.0 15.0 13.6 CY Ending Dec '07 Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14E Dec '15E Cal. Year 0.61 0.80 1.22 2.62 4.54 6.15 5.84 6.48 7.15 P/E (x) 46.2 15.2 24.7 17.6 12.7 12.4 13.7 14.6 13.3

Growth (YoY%)

FY Ending Sep '07 Sep '08 Sep '09 Sep '10 Sep '11 Sep '12 Sep '13 Sep '14E Sep '15E Q1 (Dec) 67.6 54.4 1.1 106.2 75.2 115.7 0.4 5.0 12.2 Q2 (Mar) 85.1 33.3 14.7 150.4 92.2 92.2 18.0 15.2 6.5 Q3 (Jun) 74.3 29.3 13.4 160.0 121.9 19.6 19.8 19.9 10.2 Q4 (Sep) 62.9 24.8 44.4 154.9 51.9 23.0 4.7 12.5 12.0 Fiscal Year 73.1 36.4 17.4 140.9 82.7 59.5 10.0 11.1 10.5 CY Ending Dec '07 Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14E Dec '15E Cal. Year 59.5 30.6 52.3 114.8 73.7 35.4 5.1 11.0 10.3

EPS Broker Detail Q4 '14E EPS Broker Revisions Q4 '14E

Consensus Guidance # of Brokers Consensus Guidance 1M Revision 1W Revision 1.33 44 1.33 1.0% 0.9%

Top 16 Brokers Research Estimate Bottom 16 Brokers Research Estimate Cross Research 23 Jul '14 1.46 Stifel Nicolaus 23 Jul '14 1.28 Restricted 5 18 Jul '14 1.43 Bernstein Research 23 Jul '14 1.28 JMP Securities 18 Jul '14 1.42 Mizuho Securities USA 23 Jul '14 1.27 Societe Generale 13 Jun '14 1.41 Canaccord Genuity 23 Jul '14 1.25 FBN Securities 24 Apr '14 1.39 Restricted 1 23 Jul '14 1.25 Restricted 8 15 Jul '14 1.39 Nomura Research 23 Jul '14 1.24 ISI Group Inc. 03 Jul '14 1.38 Raymond James 23 Jul '14 1.24 BMO Capital Markets 11 Jul '14 1.37 Pacific Crest 16 Jul '14 1.21 Cowen & Company 18 Jul '14 1.37 Cantor Fitzgerald 18 Jul '14 1.21 Daiwa Securities Co. ... 05 Jun '14 1.37 Restricted 2 23 Jul '14 1.21 Restricted 10 10 Jun '14 1.36 BTIG 30 Jun '14 1.20 Scotiabank GBM 18 Jul '14 1.36 Restricted 11 Avondale Partners 18 Jul '14 1.36 Restricted 7 Oppenheimer 24 Apr '14 1.34 Restricted 6 Restricted 4 21 Jul '14 1.34 Restricted 3 Deutsche Bank Rese... 23 Jul '14 1.34 Credit Suisse

* Only 32 of the 44 brokers are shown in this See report. all...

Valuation Summary Valuation Peer Analysis

Valuation 5Y Trend Current 5Y High 5Y Low 5Y Avg vs. Ind vs. Bmrk Hewlett BlackBerry Google Inc. Packard Acer Adobe Systems P/E 15.3 36.5 8.7 18.8 0.9 0.9 Apple Inc. Limited (BB Class A Company Incorporated Incorporated P/E NTM 13.8 27.2 8.4 14.1 0.9 0.8 (AAPL) CA) (GOOGL) (HPQ) (2353TW) (ADBE) P/Sales 3.2 5.9 2.2 3.9 1.6 2.0 P/E LTM 15.3 31.2 12.4 131.4 P/Sales NTM 3.0 4.2 1.9 2.9 1.5 1.9 P/E NTM 13.8 20.6 9.1 218.4 40.4 P/Bk 4.8 7.2 2.7 5.2 1.4 3.4 PEG NTM 1.1 1.2 4.7 3.5 P/Bk NTM 4.2 5.9 2.2 3.8 1.4 1.7 P/Sales 3.2 1.1 6.5 0.6 0.2 8.8 P/CF 10.2 20.9 6.4 12.6 0.9 1.0 P/Bk 4.8 1.4 4.3 2.3 1.1 5.4 P/CF NTM 10.4 18.9 6.7 11.4 1.0 0.9 P/CF 10.2 20.4 5.9 31.8 EV/EBITDA 9.2 22.0 5.5 11.9 0.9 0.9 EV/EBITDA 9.2 15.4 5.6 45.6 EV/EBITDA NTM 6.6 14.4 5.1 7.0 0.8 0.7 EV/Sales 3.1 0.8 5.6 0.7 0.1 8.3 EV/Sales 3.1 5.3 1.9 3.5 1.5 1.2 Div Yld 2.0 0.0 0.0 1.8 0.0 0.0 EV/Sales NTM 2.8 3.7 1.7 2.7 1.5 1.3

Price to Earnings Price to Earnings NTM

Profitability Ratios Annual Profitability Peer Analysis LTM

Profitability (%) 10Y Trend Sep '08 Sep '09 Sep '10 Sep '11 Sep '12 Sep '13 Gross Margin 34.3 35.3 39.3 41.0 43.6 37.2 Operating Margin 19.3 20.2 28.1 31.8 35.0 28.3 Pretax Margin 21.2 22.0 28.5 31.5 35.8 29.4 Net Margin 14.9 15.7 21.5 23.9 26.8 21.7 ROA 14.9 12.2 21.7 27.1 28.5 19.3 ROE 27.2 23.3 37.1 41.7 42.8 30.6 ROTC 27.2 23.3 37.1 41.7 42.8 28.6 Hewlett ROIC 27.2 23.3 37.1 41.7 42.8 28.6 BlackBerry Google Inc. Packard Acer Adobe Systems Efficiency 10Y Trend Sep '08 Sep '09 Sep '10 Sep '11 Sep '12 Sep '13 Apple Inc. Limited (BB Class A Company Incorporated Incorporated Revenue/Employee (000) 925 986 1,317 1,716 2,050 2,128 (AAPL) CA) (GOOGL) (HPQ) (2353TW) (ADBE) Net Income/Employee (000) 137.7 155.0 283.7 409.5 548.4 461.2 Gross Margin (%) 37.5 20.2 63.0 22.4 5.4 84.1 Receivables Turnover (x) 7.4 7.4 8.7 10.0 10.3 8.7 Operating Margin (%) 28.1 69.7 29.1 7.8 3.1 10.5 Days of Sales Outstanding 49.1 49.1 42.0 36.4 35.6 42.0 Net Margin (%) 21.5 120.2 20.5 4.9 6.1 6.9 Inventory Turnover (x) 49.9 48.7 52.5 70.1 112.2 83.9 ROA (%) 18.8 57.5 11.8 5.2 10.5 2.7 Days of Inventory on Hand 7.3 7.5 7.0 5.2 3.3 4.3 ROE (%) 29.5 87.8 15.0 21.3 31.4 4.2 Payables Turnover (x) 4.1 4.2 4.6 4.8 4.9 5.0 Revenue/Employee (000) 2,186 620.9 1,282 352.4 346.5 Days of Payables Outstanding 89.1 86.7 80.2 76.2 74.3 73.4 Receivables Turnover (x) 12.0 2.5 7.2 6.4 5.1 8.2 Total Asset Turnover (x) 0.8 0.7 0.9 0.9 0.9 0.8 Inventory Turnover (x) 71.4 11.6 45.9 14.7 9.6 Working Capital Turnover (x) 1.7 2.7 3.1 6.4 8.2 5.8 Payables Turnover (x) 6.5 7.0 12.0 6.7 5.8 12.0

Credit Ratios Annual Credit Peer Analysis LTM

Liquidity Analysis 10Y Trend Sep '08 Sep '09 Sep '10 Sep '11 Sep '12 Sep '13 Current Ratio 2.32 1.69 2.01 1.61 1.50 1.68 Quick Ratio 2.29 1.67 1.96 1.58 1.48 1.64 Cash Ratio 1.74 1.22 1.24 0.93 0.76 0.93 Credit Analysis 10Y Trend Sep '08 Sep '09 Sep '10 Sep '11 Sep '12 Sep '13 Interest Coverage (EBITDA) 405.0 Interest Coverage (EBIT) 355.3 Fixed Chg Coverage 355.3 Hewlett CFO/Int Exp 394.6 BlackBerry Google Inc. Packard Acer Adobe Systems Total Debt/EBITDA 0.0 0.0 0.0 0.0 0.0 0.3 Apple Inc. Limited (BB Class A Company Incorporated Incorporated Net Debt/EBITDA 3.6 2.9 1.3 0.7 0.5 0.4 (AAPL) CA) (GOOGL) (HPQ) (2353TW) (ADBE) Net Debt/(EBITDACapEx) 4.4 3.4 1.5 0.9 0.6 0.5 Interest Coverage (EBIT) 161.9 81.8 207.3 9.6 12.2 6.4 LT Debt/EBITDA 0.0 0.0 0.0 0.0 0.0 0.3 Fixed Chg Coverage 161.9 81.8 207.3 9.6 12.2 6.4 Total Debt/Total Equity 0.0 0.0 0.0 0.0 0.0 13.7 CFO/Int Exp 175.5 11.4 225.8 12.7 5.1 17.1 Total Debt/Total Capital 0.0 0.0 0.0 0.0 0.0 12.1 Total Debt/EBITDA 0.3 0.3 1.7 2.0 Total Debt/Total Assets 0.0 0.0 0.0 0.0 0.0 8.2 Net Debt/EBITDA 0.4 0.6 2.4 0.6 2.8 2.4 Net Debt/FFO 4.5 3.5 1.5 0.8 0.6 0.5 LT Debt/EBITDA 0.3 0.6 0.1 1.3 2.1 1.2 LT Debt/FFO 0.0 0.0 0.0 0.0 0.0 0.4 Total Debt/Total Equity 14.1 36.5 6.8 80.1 34.8 22.7 FCF/Total Debt 2.7 Total Debt/Total Capital 12.4 26.7 6.4 44.5 25.8 18.5 CFO/Total Debt 3.2 Total Debt/Total Assets 8.2 19.7 5.4 21.7 11.0 14.5

DuPont Analysis Annual DuPont Peer Analysis LTM

Hewlett BlackBerry Google Inc. Packard Acer Adobe Systems Apple Inc. Limited (BB Class A Company Incorporated Incorporated Sep '06 Sep '07 Sep '08 Sep '09 Sep '10 Sep '11 Sep '12 Sep '13 LTM (AAPL) CA) (GOOGL) (HPQ) (2353TW) (ADBE) Asset Turnover 1.34 1.13 1.00 0.78 1.01 1.13 1.07 0.89 0.88 Asset Turnover 0.9 0.5 0.6 1.1 1.7 0.4 x Operating Margin 12.7 18.4 19.3 20.2 28.1 31.8 35.0 28.3 28.1 x Operating Margin 28.1 69.7 29.1 7.8 3.1 10.5 x Interest Burden 1.15 1.14 1.10 1.09 1.01 0.99 1.02 1.04 1.04 x Interest Burden 1.0 2.1 0.9 0.8 2.0 0.9 x Tax Burden 0.71 0.70 0.70 0.71 0.76 0.76 0.75 0.74 0.74 x Tax Burden 0.7 0.8 0.8 0.8 1.0 0.8 = ROA 13.8 16.4 14.9 12.2 21.7 27.1 28.5 19.3 18.8 = ROA 18.8 57.5 11.8 5.2 10.5 2.7 x Equity Leverage 1.65 1.74 1.83 1.91 1.71 1.54 1.50 1.58 1.57 x Equity Leverage 1.6 1.5 1.3 4.1 3.0 1.5 = ROE 22.8 28.5 27.2 23.3 37.1 41.7 42.8 30.6 29.5 = ROE 29.5 87.8 15.0 21.3 31.4 4.2 x Earnings Retention 100.0 100.0 100.0 100.0 100.0 100.0 94.0 71.3 70.8 x Earnings Retention 70.8 100.0 79.5 100.0 = Reinvestment Rate 22.8 28.5 27.2 23.3 37.1 41.7 40.3 21.9 20.9 = Reinvestment Rate 20.9 87.8 15.0 16.9 31.4 4.2

Income Statement Annual (B) Income Statement Growth Annual AAPL Ind Sep '10 Sep '11 Sep '12 Sep '13 LTM 10Y Trend 5Y CAGR 10Y CAGR Sales/Revenues 65.1 108.6 156.0 170.9 177.7 39.4% 39.3% COGS incl. D&A 39.5 64.1 87.9 107.2 109.8 38.1% 37.3% Gross Inc 25.6 44.5 68.1 63.6 68.0 41.7% 43.6% SG&A 7.3 10.0 13.4 15.3 17.0 25.7% 24.7% Other Oper Expense 0.0 0.0 0.0 0.0 EBIT(Operating Income) 18.3 34.5 54.6 48.3 50.9 50.4% 113.1% Nonop Inc (Exp) Net 0.3 0.6 0.5 2.0 0.3 26.0% 35.4% Interest Expense 0.0 0.0 0.0 0.1 32.8% Unusual Exp (Inc) Net 0.0 0.9 0.6 0.1 Pretax Income 18.5 34.2 55.8 50.2 52.2 48.7% 87.8% Income Taxes 4.5 8.3 14.0 13.1 13.6 44.8% 87.8% Minority Interest 0.0 0.0 0.0 0.0 Net Income 14.0 25.9 41.7 37.0 38.6 50.3% 87.8%

EPS (recurring) 2.166 4.046 6.242 5.679 6.380 49.3% 79.8% EPS (diluted) 2.164 3.954 6.307 5.679 6.191 49.3% 82.8%

EBITDA 19.3 36.3 57.9 55.1 58.7 52.2% 82.0%

Balance Sheet Annual (B) Use of Cash Annual (M)

Sep '09 Sep '10 Sep '11 Sep '12 Sep '13 10Y Trend 5Y CAGR 10Y CAGR Curr Assets 32.6 41.7 45.0 57.7 73.3 17.5% 28.7% Cash & ST Inv 23.5 25.6 26.0 29.1 40.5 10.6% 24.4% Accounts Receivable 5.1 9.9 11.7 18.7 20.6 34.4% 36.1% Inventories 0.5 1.1 0.8 0.8 1.8 28.2% 41.2% Other Current Assets 3.6 5.1 6.5 9.0 10.3 27.6% 41.8%

Curr Liabilities 19.3 20.7 28.0 38.5 43.7 25.4% 33.9% STD & Curr Port LT Debt 0.0 0.0 0.0 0.0 0.0 Accounts Payable 5.6 12.0 14.6 21.2 22.4 32.3% 34.5% Income Tax Payable 0.4 0.2 Other Current Liabilities 13.2 8.5 13.3 17.4 21.3 20.0% 37.2% Cash and Liabilities Sep '08 Sep '09 Sep '10 Sep '11 Sep '12 Sep '13 Cash and Short Term Investments 24,490 23,464 25,620 25,952 29,129 40,546 Total Debt 0.0 0.0 0.0 0.0 17.0 49.5% Share Repurchase 0 0 0 0 0 22,860 Total Assets 53.9 75.2 116.4 176.1 207.0 39.2% 40.7% Dividends 0 0 0 0 2,488 10,564 Total Liabilities 26.0 27.4 39.8 57.9 83.5 35.1% 41.5% Debt Servicing 0 0 0 0 0 136 Shrhldrs Equity 27.8 47.8 76.6 118.2 123.5 42.5% 40.2% Net Change in Reporting Period Cash (FX adjusted) 2,523 6,612 5,998 1,446 931 3,513 BVPS 4.419 7.454 11.778 17.980 19.628 42.1% 37.3% Cash Flow Increases/Decreases 2,040 7,087 5,086 2,277 2,754 19,647 Cash Received (Paid) from Debt Activity 0 0 0 0 0 16,760 Dividends Paid 0 0 0 0 2,488 10,564 Cash Received (Paid) from Change in Equity 483 475 912 831 665 22,330

Cash Flow Statement Annual (M) Industry Metrics

Sep '10 Sep '11 Sep '12 Sep '13 LTM 10Y Trend 5Y CAGR 10Y CAGR Net Income 14,013 25,922 41,733 37,037 38,555 50.3% 87.8% Deprec & Amort 1,027 1,814 3,277 6,757 7,760 70.2% 50.5% Other Funds 903 1,168 1,740 2,253 2,656 33.2% Changes in Wk Cap 1,212 5,757 299 6,478 5,629 9.5% 48.3% Operating Cash Flow 18,595 37,529 50,856 53,666 56,371 41.1% 68.6%

Cap Ex 2,121 7,452 9,402 9,076 8,267 Other Investing, Total 11,731 32,708 38,777 24,538 Investing Cash Flow 13,854 40,419 48,227 33,774 24,965 Free Cash Flow 16,590 33,269 42,561 45,501 48,671 39.9% 80.3% Industry Metrics data is only available for certain companies in the following FCF/Share 2.563 5.074 6.432 6.977 8.043 39.0% 75.9% industries: Airlines, Hotel and Gaming, Metals & Mining, Oil & Gas, FCF Yield (%) 6.1 8.8 6.7 10.1 6.6% 19.8% Pharmaceuticals, and Retail. % of Net Income 118.4 128.3 102.0 122.9 126.2 6.9% 3.9%

Cash Divs Pd 0 0 2,488 10,564 11,066 Change in Capital Stock 912 831 665 22,330 32,280 Iss/Red Debt 0 0 0 16,896 13,970 Financing Cash Flow 1,257 1,444 1,698 16,379 29,677

Net Change in Cash 5,998 1,446 931 3,513 1,729 6.8% 11.9%