2014 INVESTOR RELATIONS PLAN Amazon2014 Investor Relations Plan

MSG Public Relations | December 2013

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Agenda

• Current Landscape• Internal Perspectives• External Perspectives• Ownership Summary

• Observations • Financial Performance• Shareholder Changes• Social Messaging

• 2014 IR Objectives• MSG Deliverables

• Financial Calendar Communication• Investor and Analyst Targets and Outreach• Message Development• Market Intelligence

• Budget

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ECurrent Landscape Internal Perspective• Stock price increase of 120% over two years• Promising sales growth• Investment in new business

• Two straight quarterly losses• Profit is due in the near future

“We will continue to: make bold investment decisions in light of long-term leadership considerations rather than short-term profitability considerations.” - Amazon, A Message to Our Shareowners.

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ECurrent LandscapeExternal Perspective

Black - AmazonBlue - eBayRed - Dow Jones Industrial AverageGreen - S & P 500

“Amazon famously has survived on meager profits, despite fast-rising sales” - Bensinger G. “Amazon earnings: what to watch”, WSJ, Oct 24, 2013

“Retailers have been the strongest performing industry group this year, outperforming the S&P 500 by 15%” - WSJ, November 2013

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ECurrent Landscape Ownership Summary

Institutional Ownership69%

Top 5 Holders % of Total Shares Outstanding• Bezos, Jeffrey P. – 18.56%• Capital Research and

Management Company – 10.04%• T. Rowe Price Group, Inc. - 4.6%• BlackRock, Inc. – 4.13%• The Vanguard Group, Inc. – 3.81%

Type % of TotalShares Outstanding

Institutions 69.96Individuals / Insiders 18.69State Owned Shares 0.04Public and Other 11.31Total 100.00

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SObservationsAmazon’s Status – Financial Performance

• Bold investments: long-term success more important than short-term profitability (Neutral)

• Large-cap and sales growth (Positive)• Great losses in two consecutive quarters (Negative)• Most recent quarterly earnings report lower than analysts’ consensus

forecast (Negative)

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SObservationsAmazon’s Status – Shareholders Changes

• Shares heavily sold by financial institutions (Neutral / Negative)

Source: Yahoo! Finance

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SObservationsAmazon’s Status – Social Messaging

• Lack of new media utilized in comparison with competitors (Negative)

Live Tweeting Earnings

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S2014 IR Objectives

Institutional Ownership69%

Effectively maximize corporate financial communications to enhance company value and status among industry.

• Streamline communications efforts to ensure maximum effectiveness • Emphasize promising business initiatives and long-term visions through

financial results• Improve regular interaction with investors and analysts - frequency and

effectiveness

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DeliverablesFinancial Calendar Communication

• Earnings reports preparation• Draft and finalize earnings script, presentation and Q&A preparations• Press releases and financial press relations• Manage logistic for earnings release/call• Schedule sell-side analyst follow-up• Monitor trading activity post-release

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DeliverablesInvestors and Analysts Targets and Outreach

Amazon’s Analyst Coverage, 106 equity analysts (partial list)

Source: Capital IQ

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DeliverablesInvestors and Analysts Targets and Outreach

Amazon’s Top Institutional Investors (partial list)

Source: Yahoo! Finance

Institutions that sold shares heavily (sold more than 132,000 shares):T. Rowe Price Associates, Inc.Capital Research Global InvestorsBaillie Gifford & Co Limited.Sands Capital Management, LLCJennison Associations LLCNorthern Trust Investment, N.A. (partial list)

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DeliverablesInvestors and Analysts Targets and Outreach

• Create and maintain invest calendaro Coordinate non-deal roadshows and investor conferences

• Update and maintain investor fact sheet• Handle all inbound investor inquiries• Schedule investor-related calls and meetings• Prioritize investor relations with key stakeholders• Enhance relationships with Amazon and industry analysts• Analyst Day

o Assist with message and presentation developmento Target key investorso Handle all event logisticso Present post-event recap

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DeliverablesMessage Delivery and Development

• Leveraging Communication Channelso Streamline investor relations, corporate communications, public relationso Website updates to the investor sections (social media, investor calendar)o Social media integration (social media policy, Reg. FD guidelines training, )

• Define Website Sections• Message Resonance

o Refine corporate messagingo Internal FAQ for executiveso Media training for corporate spokespeople

• Define / Refine Investment Thesis

Key Messages• Amazon is committed to promising new business ventures

o Keep investor faith in management’s vision• Sales growth remains a positive indicator of future success

o Turn spotlight to positive sales figures• Amazon has a culture of long-term investment

o Maintain investor patience in long-term investmento Continue the consistent message: “it’s early.”

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DeliverablesMarket Intelligence

• Assess top shareholders and trends in market• Prepare and distribute key investor dossiers prior to meetings• Monitor buy/sell activity• Record all interactions with investors• Crisis Preparedness

o Solidify messagingo Plan of attack

• Regular analyze shareholder base to benchmark it against peers (eBay, Google, Apple, The Home Depot, Target)

• Analyze investors/analysts discussions• Perception studies- Feedback to Senior Management on company’s

investment market perception

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TBudget

Hourly Labor Fees

Material Creations - $2,000 Executive Training - $1,000 Direct-to-Investor Relations - $4,000 Scheduling and Planning - $1,500 Analyst and Industry Research - $1,500 Total Cost: $10,000/month

Billable Expenses

Earnings Releases: $3,500/each Annual Meetings: $25,000/each Expensed Items: $3,000/month Roadshow: TBA

2014 INVESTOR RELATIONS PLAN Q & A