14.Link the live case with the Historical Analysis section in the Financial Model worksheet and complete the Valuation section. In the consensus case, what is the EBITDA excluding stock-based compensation (SBC) in 2024?

126,043

112,115

143,079

162,565

15. In the bull case, what is the free cash flow to the firm (FCFF) if all cash CAPEX in 2027?

125,384

98,662

148,361

114,662

1 A B C E F G H J K L M N O P Corporate Finance Institute. All right reserved. 2 Historical Analysis Il CEI 3 l/ minis ango' per strane gaz/ 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 4 5 Historical Analysis 6 Time Periods 7 BOP 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023 1/1/2024 1/1/2025 1/1/2026 1/1/2027 1/1/2028 8 EOP 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/312021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027 12/31/2028 9 Days 365 365 365 366 365 365 365 366 365 365 365 366 365 365 365 366 10 11 Case Selection 12 13 Name Description Number Live Case -> 14 Consensus Number 1 15 Bull 2 16 Bear 3 17 Other 4 18 19 LIVE CASE 20 Segmented Revenue Growth 21 Online Stores 22 Physical Stores 23 Retail Third-Party Seller Services 24 Retail Subscription Services 25 AWS 26 Other 27 Total Net Sales 28 29 Expenses 30 Cost of Sales 31 Fulfillment 32 Marketing 33 Technology and Content 34 General and Administrative 35 Other Operating Expense, net 36 Total Operating Expenses 37 38 Stock-Based Compensation (SBC)IZ of SG&A) 39 Tax Rate 40 Interest Income Rate (Opening Balance) 41 Interest Expense Rate (Average Debt) 42 43 Balance Sheet 44 Inventory Days 45 Accounts Receivable Days 46 Change in Goodwill 47 Change in Other Assets 48 Change in Marketable Securities 49 50 Accounts Payable Days Cover Page Financial Model Scenarios Disclaimer D E F G . J K L M N P Q Il CET 2027E 2028E 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E A B 1 Corporate Finance Institute. All right reserved. 2 Historical Analysis 3 links are per share / 2013A 49 50 Accounts Payable Days 51 Accrued Expenses 52 Unearned Revenue 53 54 Cash Capex % of revenue 55 PP&E Acquired under Capital Leases 56 Depreciation % of PPE (Opening Balance) 57 Repayment of Capital Leases (Opening Balance) 58 59 Change in Long-Term Debt 60 Change in Common Shares 61 Change in Treasury Stock 62 Change in Additional Paid-in Capital 63 64 Dividends 65 Proceeds from Property and Equipment Incentives 66 Acquisitions, net of Cash Acquired, and Other 67 Sales and Maturities of Marketable Securities 68 69 Change in Basic Shares Outstanding 70 Change in Diluted Shares Outstanding 71 72 73 74 CONSENSUS CASE 75 Segmented Revenue Growth 76 Online Stores 77 Physical Stores 78 Retail Third-Party Seller Services 79 Retail Subscription Services 80 AWS 81 Other 82 Total Net Sales 83 84 Expenses 85 Cost of Sales 86 Fulfillment 87 Marketing 88 Technology and Content 89 General and Administrative 90 Other Operating Expense, net 91 Total Operating Expenses 92 93 Stock-Based Compensation (SBC) (% of SG&A) 94 Tax Rate 95 Interest Income Rate (Opening Balance) Cover Page Financial Model 5.9% 19.7% % 143.8% 24.0% 49.17 42.2% 134.1%. 18.1% 11.2%. 27.0% 40.3% 38.0% 78.0% 17.5%. 11.8% 25.0% 36.1% 36.5% 52.0% 17.174 9.1% 21.0% 26.5% 26.17 39.0% 16.2% 8.7% 20.4% 19.0% 18.5% 36.0% 14.9% 9.6% 17.1% 18.07. 16.5% 23.2% 13.2% 10.17 12.5% 11.07 13.7% 13.07 11.1% 10.6% 12.1% 7.1% 13.2% 8.3% 8.0% 9.374 10.17 5.2% 10.8% 9.2% 7.1% % 8.6% 5.7% 5.0% 9.2% 7.6% 7.4% 5.1% 4.0%. 6.7% 4.6% 58.3% 16.4%. 4.8% 11.27 3.8%. 0.2% 59.0% 15.1%. 5.0% 11.4%. 2.9% 0.24 93.6% 58.7% 15.37 5.1% 11.2% 2.1% 0.2% 92.6% 59.17 15.2% 5.07. 11.3% 2.0% 0.2%. 58.4%. 14.9% % 4.7% 11.5% 2.17 0.24 91.87 58.2% 15.3% 5.0% 11.1% 2.0% 0.2% 58.2%. 15.4% 5.02 11.2% 1.9% 0.2% 91.9%. 58.5% 15.1% 5.0% 11.2% 1.9% 0.2% 91.9% 57.6% 15.2% 5.2% 11.2% 1.9% 0.2% 91.37 57.3% 15.2% 5.2% 11.17 1.8% 0.2% 90.8% 57.9% 15.2% 5.2% 11.1% 1.8% 0.2% 91.4% 94.7%. 92.8% 91.87 6.07 20.0% 1.0% 6.0% 20.0% 1.0% 6.0% 22.5% 1.07 6.0% 22.5% 1.0% 6.0% 22.5%. 1.0% 6.0% 22.5% 1.0% 6.0% 22.5% 1.0% 6.07 22.5% 1.0% 6.0% 22.5% 1.0% 6.0% 22.5% 1.0% 6.0% 22.5% 1.0% Scenarios Disclaimer D E F 1 J K L M N 1 2015A 2016A 2017A 2018E 20.0% 1.0% 6.87 2019E 20.0% 1.0% 6.87 2020E 22.5% 1.0% 6.87 2021E 22.5% 1.0% 6.87 2022E 22.5% 10% 6.8% 2023E 22.52 1.0% 6.87 2024E 22.5% 1.0% 6.8% 2025E 22.5% 1.07 6.8% 2026E 22.5% 10% 6.8% P Il CET 2027E 2028E 22.5% 22.5% 1.0% % 1.0% 6.8%. 6.8% 57 26 57 26 10 0.0% 0.07 57 26 0 0.0% 0.0% 57 26 0 0.0% 0.0% 57 26 0 0.0% % 0.07 57 26 20 0.02 0.0% 57 26 0 0 0.0% 0.0% 57 26 0 0.02 0.0% 57 26 0 0.0% 0.0% 57 26 0 0.0% 0.02 57 26 0 0.0% 0.0% 0.0% 0.0% 104 10.0% 3.6% 104 10.0% 3.6%. 104 10.0% 3.6% 104 10.0% 3.6% 104 10.0% 3.67 104 10.07 3.6% 104 10.07 3.6% 104 10.0% 3.6% 104 10.0% 3.6%. 104 10.0% 3.6% 104 10.07 3.6% 6.6% 5.07 6.6% 4.4% 38.0% 36.5% 5.9% 5.5%. 6.67 4.8% 38.0% 36.5% 6.6%. 4.4% 38.0% 36.5% 38.0%. 6.6%. 5.5% 38.0% 36.5% 5.97 5.5% 38.0% 36.5% 5.9% 5.5%. 38.0%. 36.57 38.0% 5.02 4.2% 38.0% 36.5% 4.3% 3.0% 38.0%. 36.5% 4.3%. 3.0% 38.0% 36.5% 36.5% 36.5% 0 0 0 A B C Corporate Finance Instituto. All right rosorved. 2 Historical Analysis 3 for saper stare / 2013A 2014A 94 Tax Rate 95 Interest Income Rate (Opening Balance) 96 Interest Expense Rate (Average Debt) 97 98 Balance Sheet 99 Inventory Days 100 Accounts Receivable Days 101 Change in Goodwill 102 Change in Other Assets 103 Change in Marketable Securities 104 105 Accounts Payable Days 106 Accrued Expenses 107 Unearned Revenue 108 109 Cash Capex % of revenue 110 PP&E Acquired under Capital Leases 111 Depreciation of PPE (Opening Balance) 112 Repayment of Capital Leases (Opening Balance) 113 114 Change in Long-Term Debt 115 Change in Common Shares 116 Change in Treasury Stock 117 Change in Additional Paid-in Capital 118 119 Dividends 120 Proceeds from Property and Equipment Incentives 121 Acquisitions, net of Cash Acquired, and Other 122 Sales and Maturities of Marketable Securities 123 124 Change in Basic Shares Outstanding 125 Change in Diluted Shares Outstanding 126 127 128 BULL CASE 129 Segmented Revenue Growth 130 Online Stores 131 Physical Stores 132 Retail Third-Party Seller Services 133 Retail Subscription Services 134 AWS 135 Other 136 Total Net Sales 137 138 Expenses 139 Cost of Sales 140 Fulfillment Cover Page Financial Model Scenarios 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1.0% 1.5% 1.07 1.5%. 1.0% 1.2%. 1.0% 1.07 1.0% 1.0% 1.0% 1.07 1.0% 1.0% 1.0% 1.07 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 23.5% 175.6% 29.9% 58.2% 28.9% 158.3% 21.4% 14.7% 28.6% % 48.2% 45.3% 91.0% 20.3% 12.8% 28.12 43.8% 42.6% 58.3% 20.1% 10.9% 26.2% 32.8% 32.02 46.72 18.9% . 10.6% 24.8% 22.4% 22.6% 43.1% 17.6% 11.17 21.4% 21.2% 20.3% 28.9% 15.6% 12.7% 15.4% 12.7%. 16.8% 15.3%. 13.2% 12.9% 14.37. 9.2% 16.7%. 11.27 10.17 11.8% 11.9% 6.2%. 12.7% 11.37. 8.6% 12.7% 6.9% 6.1% 10.4% 9.9% 7.32 10.2% 6.8% 4.9% 8.17 6.37. 57.2%. 16.3%. 58.2%. 15.2% 57.7% 15.02 57.7% 15.0% 57.2%. 15.17 57.2% 15.2% 57.7% 15.3% 57.7%. 15.3%. 56.3% 15.3% 56.3% 15.3% 57.0% 15.3% Disclaimer + Display Settings B D E F G H J K L M N O 2013A 2014A 2015A 2016A 2017A 2018E 57.2%. 16.32 4.8%. 11.3%. 3.9% 0.2% 93.7% 2019E 58.2% 15.2% 4.9%. 11.4%. 2.9% 0.2% 92.87 2020E 57.7% 15.0% 4.9% 11.5%. 2.0% 0.2% 91.4% 2021E 57.7% 15.0% 4.9% 11.5%. 1.9% 0.2%. 91.47 2022E 57.2% 15.12 4.9%. 11.5%. 1.97 0.2% 91.07 2023E 57.2% 15.2% 4.9% 11.2% 1.9% 0.2% 90.7% 2024E 57.7% 15.3%. 4.9% 11.2%. 1.9% 0.2% 91.37 2025E 57.7% 15.3%. 4.9% 11.27 1.87 0.2% 91.27 2026E 56.3% 15.3%. 5.2% 11.2% 1.82 0.2% 90.07 B Il CEI 2027E 2028E 56.3% 57.0%. 15.3%. 15.3%. 5.1% 5.1% 11.07. 10.7% 1.8% 1.8% 0.2% 0.2% 89.72 90.2% 6.8% 20.0% 1.0% 7.07. 6.87 20.0% 1.0% 7.0% . 6.8% 22.5% 10% 7.0%. 6.8%. 22.5% 1.0% 7.07. 6.8%. 22.5% 1.0%. 7.0% 6.8% 22.5% 1.0% 7.07 6.8% 22.5%. 1.0% 7.0% 6.8%. 22.5% 1.0% % 7.0% 6.8%. 22.5% 1.0% 7.0% 6.8% % 22.5% 1.0% 7.0% 6.8% 22.5%. 10% 7.0% A 1 Corporate Finance Institute. All rights reserved. 2 Historical Analysis 3 lin/ansaxeoper stradate/ 139 Cost of Sales 140 Fulfillment 141 Marketing 142 Technology and Content 143 General and Administrative 144 Other Operating Expense, net 145 Total Operating Expenses 146 147 Stock-Based Compensation (SBC)% of SG&A) 148 Tax Rate 149 Interest Income Rate (Opening Balance) 150 Interest Expense Rate (Average Debt) 151 152 Balance Sheet 153 Inventory Days 154 Accounts Receivable Days 155 Change in Goodwill 156 Change in Other Assets 157 Change in Marketable Securities 158 159 Accounts Payable Days 160 Accrued Expenses 161 Unearned Revenue 162 163 Cash Caper% of revenue 164 PP&E Acquired under Capital Leases 165 Depreciation of PPE (Opening Balance) 166 Repayment of Capital Leases (Opening Balance) 48 22 48 22 48 22 0 0.0% 0.0% 48 22 0 0.07 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.07 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.07 48 22 0 0.0% 0.0% % 48 22 0 0.07 0.0% 0.0% 0.0% 0.0% 0.0% 115 9.17 2.5%. 115 9.17 2.5%. 115 9.17 2.5% 115 9.17 2.5% 115 9.1% 2.5% % 115 9.17 2.5%. 115 9.1% 2.5% 115 9.17 2.5%. 115 9.17 2.5% 115 9.17 2.5% 115 9.1% 2.5%. 7.2% 7.5% 40.3% 37.5%. 7.2% 6.0% 40.3% 37.5%. 7.2% 5.0% 40.3% 37.5% 7.2% 5.0% 40.3% 37.5%. 7.22 5.0% 40.3% 37.5%. 7.2% 4.0% 40.3% 37.5% 7.2% 4.0% 40.3% 37.5%. 7.2% 4.0% 40.3% 37.5% 7.2% 3.0% 40.3% 37.5%. 7.2% 2.9% 40.3% 37.5%. 7.22. 2.9% 40.3% 37.5% 167 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 168 Change in Long-Term Debt 169 Change in Common Shares 170 Change in Treasury Stock 171 Change in Additional Paid-in Capital 172 173 Dividends 174 Proceeds from Property and Equipment Incentives 175 Acquisitions, net of Cash Acquired, and Other 176 Sales and Maturities of Marketable Securities 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 177 1.2% 1.6% 1.1% 1.37 1.0% 1.0% 1.0% 1.07 1.0% 1.0% 1.0% 1.07 1.0% 1.0% 1.07 1.0% 1.07. 1.0% 1.07 1.0% 1.07 1.0% 178 Change in Basic Shares Outstanding 179 Change in Diluted Shares Outstanding 180 181 182 BEAR CASE 183 Segmented Revenue Growth 184 Online Stores 185 Physical Stores 18.7% 142.5%. 17.2% 11.5% 16.0% 10.2% 16.07 8.6% % 15.07. 8.6%. 14.1% 8.6% 12.2% 10.17 10.3% 10.0% 7.5%. 9.0% 6.6% 8.4% 5.67 7.7% Cover Page Financial Model Scenarios Disclaimer 1 B c E F G . J K L M N 0 1 2013A 2014A 2015A 2016A 2017A 2018E 18.7% 142.5%. 23.6% 46.9% 39.17 126.4% 2019E 17.2% 11.5%. 23.5% 38.8% 36.7% 75.2% 2020E 16.0%. 10.2% 22.6% 34.8% 33.8%. 47.0% 2021E 16.0% 8.6% 20.7% 2022E 15.0%. 8.6% 19.72 17.9% 17.9% 34.8% 2023E 14.1% 8.6% 16.9% 16.9% 16.0% 22.6% 2024E 12.2% 10.1% 12.2. 10.3% 13.2% 12.2% 2025E 10.3%. 10.0% 11.3% 6.6% 13.2% 8.5%. 2026E 7.5% 9.0% 9.4% 4.7% 10.3%. 8.5% Q Il CEI 2027E 2028E 6.6%. 5.6% 8.4% 7.7% 5.6% 5.2%. 4.7% 3.87 8.5%. 6.6% 7.5% 4.7% 26.3% 25.4% 37.6% 59.4% 15.8% 5.7%. 60.7% 17.32 4.8% 12.0% 4.5% 0.2% 99.5% 61.2% 16.2% 4.9% 12.2% 2.8% 0.2% 97.4% 60.7% 16.02 5.17 12.2% 2.1% 0.2% 96.37 60.8% 15.7% 5.3%. 12.3%. 2.0% 0.2% 96.2% 60.8% 16.12 5.3%. 12.3% 2.07 0.2% 96.6% 60.2% 16.2% 5.37 11.8% 2.0% 0.2% 95.7% 61.0% 15.8%. 5.3% 11.6% 2.07 0.2%. 95.97 61.3%. 15.82 5.32 11.6% 1.8% 0.2% 95.97 11.6% 1.8% 0.2% 94.5% 59.4% 15.8% 5.7% 11.3% 1.874 0.2% 94.27 60.17 15.82 5.7% 11.1% 1.8% 0.2%. 94.7% 6.1% 20.0% 10%. 7.0% 6.1% 20.0% 1.0% % 7.0% 6.1% 22.5% 1.0% 7.0% 6.1% % 22.5%. 1.0% 7.0% 6.12 22.5% 1.0%. 7.02 6.17 22.5% 10% 7.0% 6.1% 22.5% 1.0% 7.0% 6.1% 22.5% 1.0% 7.0% 6.1% 22.5% 1.0%. 7.02 6.1% 22.5% 1.0% 7.0% 6.1% 22.5% 1.0% 7.0% A Corporate Finance Institute. All right reserved. 2 Historical Analysis 3 e lor/wins, www portare cate/ 184 Online Stores 185 Physical Stores 186 Retail Third-Party Seller Services 187 Retail Subscription Services 188 AWS 189 Other 190 Total Net Sales 191 192 Expenses 193 Cost of Sales 194 Fulfillment 195 Marketing 196 Technology and Content 197 General and Administrative 198 Other Operating Expense, net 199 Total Operating Expenses 200 201 Stock-Based Compensation (SBC)% of SG&A) 202 Tax Rate 203 Interest Income Rate (Opening Balance) 204 Interest Expense Rate (Average Debt) 205 206 Balance Sheet 207 Inventory Days 208 Accounts Receivable Days 209 Change in Goodwill 210 Change in Other Assets 211 Change in Marketable Securities 212 213 Accounts Payable Days 214 Accrued Expenses 215 Unearned Revenue 216 217 Cash Capex % of revenue 218 PP&E Acquired under Capital Leases 219 Depreciation 2 of PPE (Opening Balance) 220 Repayment of Capital Leases (Opening Balance) 221 222 Change in Long-Term Debt 223 Change in Common Shares 224 Change in Treasury Stock 225 Change in Additional Paid-in Capital 226 227 Dividends 228 Proceeds from Property and Equipment Incentives 229 Acquisitions, net of Cash Acquired, and Other 230 Sales and Maturities of Marketable Securities 65 32 65 32 65 32 0 0.0% 0.0% 65 32 0 0.0% 0.0% % 65 32 0 0.0% 0.0% 65 32 0 0.07 0.0% 65 32 0 0.07 0.0% % 65 32 0 0.0% 0.0% 65 32 0 0.0% 0.0% 65 32 0 0 0.0% 0.07 65 32 0 0.0% 0.0% 0.0% 0.0% 0.07 0.0% 122 10.5% 5.3% % 122 10.5% 5.37 122 10.5% 5.3%. 122 10.5%. 5.37 122 10.5% 5.3% 122 10.5% 5.37 122 10.5% 122 10.57 5.37 122 10.5% 5.3%. 122 10.5% 5.37 122 10.5% 5.37 5.3% 7.1% 7.5% 41.0% 39.2%. 7.1% 6.0% 41.0% 39.2% 7.12 5.0% 41.0% 39.22 7.1%. 5.0% 41.0% 39.2% 7.1% 5.0% 41.07 39.2%. 7.1% 4.0% % 41.0% 39.2% 7.1% 4.07 41.0% 39.2% 7.17 4.0% 41.0% 39.2%. 7.1% 3.0% 41.0% 39.2% 7.1% 2.9% 41.0% 39.2% 7.1% 2.9% 41.0% 39.274 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cover Page Financial Model Scenarios Disclaimer + B C D E F G H | J J K L M N Q 1 P Il CEI 2013A 2014A 2015A 2016A 2017A 2018E 0 0 2019E 0 0 2020E 0 0 2021E 0 0 2022E 0 0 2023E 0 0 2024E 0 0 2025E 0 0 2026E 0 0 2027E 0 0 2028E 0 0 1.2% 1.6% 1.1%. 1.3%. 1.0% 1.0% 1.0% 1.0% 1.0%. 1.0% 1.0%. 1.0% 1.0% 1.0%. 1.07 1.07. 1.0% 1.0%. 1.0% 1.0% 1.0% 1.0% 0.0% 0.0% 0.0% % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.07 0.0% 0.02 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.07. 0.0%. 0.0%. 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.02 0.0% 0.0% 0.07 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.07 0.0% 0.0% A Corporate Finance Instituto. All right rororved. 2 Historical Analysis 3 londins or portare data) 229 Acquisitions, net of Cash Acquired, and Other 230 Sales and Maturities of Marketable Securities 231 232 Change in Basic Shares Outstanding 233 Change in Diluted Shares Outstanding 234 235 236 OTHER CASE 237 Segmented Revenue Growth 238 Online Stores 239 Physical Stores 240 Retail Third-Party Seller Services 241 Retail Subscription Services 242 AWS 243 Other 244 Total Net Sales 245 246 Expenses 247 Cost of Sales 248 Fulfillment 249 Marketing 250 Technology and Content 251 General and Administrative 252 Other Operating Expense, net 253 Total Operating Expenses 254 255 Stock-Based Compensation (SBC) (% of SG&A) 256 Tax Rate 257 Interest Income Rate (Opening Balance) 258 Interest Expense Rate (Average Debt) 259 260 Balance Sheet 261 Inventory Days 262 Accounts Receivable Days 263 Change in Goodwill 264 Change in Other Assets 265 Change in Marketable Securities 266 267 Accounts Payable Days 268 Accrued Expenses 269 Unearned Revenue 270 271 Cash Capex % of revenue 272 PP8E Acquired under Capital Leases 273 Depreciation 2 of PPE (Opening Balance) 274 Repayment of Capital Leases (Opening Balance) 275 57.1% 13.4% 7.0% 12.3%. 3.0% 1.2 94.07 57.1% 13.4% 7.07. 12.3% 3.0% 1.27 94.07 57.1% 13.4% 7.0% 12.3% 3.02 1.2% 94.07 57.12 13.4%. 7.0% 12.3% 3.0% 1.2% 94.07 57.1% 13.4% 7.0% 12.3% 3.07 1.2%. 94.07 57.17 13.4% 7.0% 12.37 3.0% 1.2%. 94.07 57.1% 13.4% 7.0% 12.3% 3.07 1.2% 94.07 57.1% 13.4% 7.0% 12.3%. 3.0% 1.2% 94.07 57.1% 13.4% 7.0% 12.3%. 3.02 1.2% 94.07 57.1% 13.4% 7.0%. 12.3% 3.07 1.2% 94.07 57.17 13.4% 7.0% 12.3%. 3.0% 1.2% 94.07 6.07 20.02 1.0% 5.5%. 6.87 20.0% 1.0% 5.5%. 6.8% 20.0% 1.0% 5.5%. 6.8% 20.0% 1.0% 5.5%. 6.8% 20.0% 1.0% 5.5% 6.87 20.0% 1.0% 5.5% 6.8% 20.074 1.0% 5.5%. 6.87 20.0% 1.0% 5.5%. 6.8% 20.0% 1.0% 5.5% 6.87 20.0% 1.0% 5.5% 6.8% 20.0% 1.0% 5.5%. 52 27 52 27 52 27 52 27 52 27 0 0.0% 0.0% 52 27 0 0.0% 0.02 52 27 0 0.0% 0.07 52 27 0 0.0% 0.0% 52 27 0 0.0% 0.0% 52 27 0 0.0% 0.0% 52 27 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.02 116 12.02 3.4%. 116 12.07 3.4% 116 12.0% 3.4% 116 12.0% 3.4% 116 12.07 3.42 116 12.0% 3.4% 116 12.07 3.4% 116 12.07 3.4% 116 12.0% 3.4% 116 12.0% 3.4% 116 12.07 3.4% 6.0% 7.0% 40.0% 38.0% 6.0% 7.0% 40.0% 38.02 6.0% % 7.0% 40.0% 38.0% 6.0% 7.0% 40.0% 38.02 6.0% 7.0% 40.0% 38.07 6.0% 7.0% 40.0% 38.02 6.0% 7.0% 40.0% 38.0% 6.0% 7.0% 40.0% 38.0% 6.0% 7.0% 40.0% 38.0% 6.0% 7.0% 40.0% 38.0% 6.0% 7.0% 40.0% 38.0% Cover Page Financial Model Scenarios Disclaimer B C D E F H | J L M N O 1 2013A 2014A 2015A 2016A 2017A 2018E 6.0% 7.0% 40.0% 38.0% 2019E 6.0% % 7.07. 40.0% 38.0% 2020E 6.0%. 7.07. 40.0% 38.0%. 2021E 6.0% 7.07 40.0% 38.0%. 2022E 6.0% 7.0% 40.0% 38.0% 2023E 6.0% 7.07. 40.0% 38.02 2024E 6.07. 7.07 40.0% 38.02 2025E 6.07. 7.07. 40.0% 2026E 6.07 7.07 40.0% Q III CEI 2027E 2028E 6.0% 6.0%. 7.07. 7.0% 40.0% 40.0% 38.0%. 38.07 38.0% 38.0% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1.0% 1.5%. 10% 1.5%. 1.0% 1.5% 1.0% 1.5% 1.0% 1.5%. 1.0% 1.5% 1.0% 1.5%. 1.07 1.5% 1.0% 1.5%. 1.07 1.5% 1.0% 1.5%. Corporate Finance Institute. All right roerved. 2 Historical Analysis 3 for Wins. 1904 per stare Jaz/ 271 Cash Capex % of revenue 272 PP&E Acquired under Capital Leases 273 Depreciation % of PPE (Opening Balance) 274 Repayment of Capital Leases (Opening Balance) 275 276 Change in Long-Term Debt 277 Change in Common Shares 278 Change in Treasury Stock 279 Change in Additional Paid-in Capital 280 281 Dividends 282 Proceeds from Property and Equipment Incentives 283 Acquisitions, net of Cash Acquired, and Other 284 Sales and Maturities of Marketable Securities 285 286 Change in Basic Shares Outstanding 287 Change in Diluted Shares Outstanding 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 Cover Page Financial Model Scenarios Disclaimer + Display Settings A B C D E F G H J K L M N P 1 111 CFT 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 1/1/2013 1/1/2014 12/31/2013 12/31/2014 365 365 1/1/2015 12/31/2015 365 1/1/2016 12/31/2016 366 1/1/2017 12/31/2017 365 1/1/2018 12/31/2018 365 1/1/2019 12/31/2019 365 11/2020 11/2021 11/2022 12/31/2020 12/31/2021 12/31/2022 366 365 365 1/1/2023 12/31/2023 365 1/1/2024 12/31/2024 366 1/1/2025 12/31/2025 365 1/1/2026 12/31/2026 365 1/1/2027 12/31/2027 365 1/1/2028 12/31/2028 366 - na na - na na na na na na 19.5% na na na 19.0% na 42.9% 43.1% 55.1% 72.5% 27.17 18.5% na 38.7% 52.0% 42.9% 57.7% 30.8% na 20.2% 73% 12% - - - 9% 2% 0% 99.0% 71% 12% 5% 10% 2% 02 99.8% 67% 13% 5% 12% 2% 0% 97.9% 65% 13% 5% 1224 12 22 0% 96.9% 63% 14% 6% 13% 2% 0% 97.7% - - - - Corporati.... l-lill. All righlarrorrard. 2 Historical Analysis 3 fr das exercystave dara) 4 5 Historical Analysis 6 Time Periods 7 BOP 8 EOP 9 Days 10 11 Segmented Revenue Growth 12 Online Stores 13 Phusical Stores 14 Retail Third-Party Seller Services 15 Retail Subscription Services 16 AWS 17 Other 18 Total Net Sales 19 20 Expenses 21 Cost of Sales 22 Fulfillment 23 Marketing 24 Technology and Content 25 General and Administrative 26 Other Operating Expense, net 27 Total Operating Expenses 28 29 Stock-Based Compensation (SBC) (% of SG&A) 30 Tax Rate 31 Interest Income Rate (Opening Balance) 32 Interest Expense Rate (Average Debt) 33 34 Balance Sheet 35 Inventory Days 36 Accounts Receivable Days 37 Change in Goodwill 38 Change in Other Assets 39 Change in Marketable Securities 40 41 Accounts Payable Days 42 Acorued Expenses 43 Unearned Revenue 44 45 Cash Capex % of revenue 46 PP&E Acquired under Capital Leases 47 Depreciation of PPE (Opening Balance) 48 Repayment of Capital Leases (Opening Balance) 49 50 Change in Long-Term Debt 51 Change in Common Shares 52 Change in Treasury Stook 53 Change in Additional Paid-in Capital 54 55 Dividends 56 Proceeds from Property and Equipment Incentives 57 Acquisitions, net of Cash Acquired, and Other 58 Sales and Maturities of Marketable Securities 59 cocksnas in Dscio Claroe uteksodio Financial Model 5.8% 31.8% % 0.5% 5.7% 0.0% 0.5% 3.7% 6.4% 60.6% 0.3% 5.6% 6.8% 36.6% 0.6% 6.1% 6.8% 20.2% 1.0% 5.2% - - - 50 23 - - 48 23 664 49.8% -24.5% 52 22 440 16.6% 37.0% 48 22 25 40.0% 69.7% 52 27 9,566 88.4% 57.4% - - 102 9.0% 1.6% 96 11.0% 20% 104 97% 2.9% 105 10.1% 3.5% 113 10.2% 2.9% - - - 4.6% 5.5% 5.3% 43.3% 47.8% 5.0% 5.0% 37.0% 41.0% 5.7% 4.8% 37.2% 44.2% 6.7% 7.1% 39.4% 42.9% - - - 5,074 (30) (541) 17,049 - - 1,562 2,259 3,792 4,203 - - - - 11 112 16 | Cover Page Scenarios Disclaimer + A B E F G H KL M N 0 P Q R 1 111 CFI 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 1.14 -0.6% 1.1% 3.2% 1.5% 1.5% 13% 1.9% 76,863 91.431 108,354 5,798 16,086 22,993 31,881 4.467 6,394 9,721 7,880 12,219 17,459 1,710 2,950 4,653 107.006 135,987 177.866 108,354 5,798 31,881 9,721 17,459 4,653 177,866 108,354 108,354 5.798 5.798 31,881 31,881 9,721 9,721 17,459 17,459 4653 4,653 177.866 177.866 108,354 5.798 31,881 9,721 17,459 4,653 177,866 108,354 5.798 31,881 9,721 17,459 4,653 177.866 108,354 5.798 31.881 9,721 17,459 4,653 177.866 108,354 5.798 31,881 9,721 17,459 4,653 177.866 108,354 5,798 31,881 9,721 17,459 4,653 177.866 108,354 5,798 31,881 9,721 17,459 4.653 177,866 108,354 5,798 31,881 9,721 17,459 4,653 177.866 108,354 1P 5.798 1P 31,881 3P 9,721 Subs 17,459 Cloud 4,653 Advertisi 177.866 74,452 88,988 60,903 13.549 74,452 70,080 18,908 88.988 79,268 27.738 107.006 94,665 118,573 41322 59.293 135,987 177.866 118,805 59,061 177.866 118,805 118,805 59,061 59,061 177,866 177.866 118,805 59,06 177.866 118,805 59,061 177.866 118,805 59,061 177.866 118,805 59,061 177.866 118,805 59,061 177.866 118,805 59,061 177.866 118,805 59,061 177.866 118,805 59,061 177.866 0 0 0 0 *Corporalri.... lulilul. All rigblurrerard. 2 Historical Analysis 3 3 lirsins en swederal 58 Sales and Maturities of Marketable Securities 59 60 Change in Basio Shares Outstanding 61 Change in Diluted Shares Outstanding 62 63 64 Income Statement 65 66 Segmented Revenue 67 Online Stores 68 Physical Stores 69 Retail Third-Party Seller Services 70 Retail Subscription Services 71 AWS 72 Other 73 Total Net Sales 74 75 76 Income Statement 77 Net Product Sales 78 Net Service Sales 79 Total Net Sales 80 Operating Expenses: 81 Cost of Sales 82 Fulfillment 83 Marketing 84 Technology and Content 85 General and Administrative 86 Other Operating Expense, net 87 Total Operating Expenses 88 Operating Income 89 Interest Income 90 Interest Expense 91 Other Income (Expense), net 92 Total Non-Operating Income (Expense) 93 Income Before Income Taxes 94 Provision for Income Taxes 95 Equity-Method Investment Activity, net of tax 96 Net Income 97 Basic Earnings per Share 98 Diluted Earnings per Share 99 Weighted-Average Shares used in Computation of Earnings per Share: 100 Basic 101 Diluted 102 103 104 Balance Sheet 105 106 Current Assets: 107 Cash and Cash Equivalents 108 Marketable Securities 109 Inventories 110 Accounts Receivable, net and other 111 Total Current Assets 112 Property And Equipment, net 113 Goodwill 88,265 17,619 7,233 16,085 2.432 167 131,801 4,186 100 0 0 0 0 0 0 0 177.866 0 0 0 i. 0 0 0 0 0 0 177.866 0 54,181 8,585 3,133 6,565 1,129 114 73,707 745 38 (141) ( 11361 (239) 506 (161) 171 274 0.60 0.59 62,752 10,766 4,332 9,275 1,552 133 88,810 178 39 (210) (118) (289) (111) (167) 37 (241) 10.521 10.52) 0 0 0 0 0 0 0 177.866 0 0 71,651 13,410 5,254 12.540 1.747 171 104,773 2.233 50 (459) (256) (665) 1.568 (950) 1221 596 1.28 1.25 111,934 0 25,249 10,069 0 22,620 0 3,674 0 214 0 173,760 0 4.106 177.866 202 0 1848) 346 (300) 0 3,806 177,866 (769) 0 141 3,033 177,866 6.32 370.55 6.15 360.78 0 0 0 0 0 0 0 0 0 177.866 0 0 0 0 0 0 0 0 0 0 177.866 0 0 0 0 0 0 0 0 0 0 177.866 0 0 0 0 177.866 0 0 0 0 0 0 0 0 177.866 0 0 C 0 0 0 0 0 0 0 0 177.866 0 0 n 0 0 0 0 0 0 0 0 i. 0 0 0 177.866 0 0 0 0 0 0 177,866 0 0 177,866 0 0 177.866 177,866 0 0 177,866 0 0 177,866 0 0 177.866 0 0 0 177,866 0 0 90 (294) 3,892 (1.425) 1961 () 2.371 5.00 4.90 0 177.866 0 0 177,866 0 0 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177.866 370.55 360.78 177,866 370.55 360.78 177.866 370.55 360.78 457 465 462 462 467 477 474 484 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 169,716 10,464 0 8,658 3,789 7,411 4,767 24,625 10,949 2,655 14,557 2.859 8,299 5,612 31,327 16,967 3,319 15,890 3,918 10,243 6,423 36,474 21,838 3,759 19,334 6.647 11,461 8,339 45,781 29,114 3,784 Los 20,522 10,464 16,047 13,164 60,197 48,866 13,350 0 347,582 10,464 0 0 358,046 48,866 13,350 525,448 10,464 0 0 535,912 48,866 13,350 0.00 703,314 10,464 0 0 0 713,778 48,866 13,350 881,180 10,464 0 0 891,644 48,866 13,350 1,059,046 10,464 0 0 0 1,069,510 48,866 13,350 1,236,912 10.464 0 0 1,247,376 48,866 13,350 1,414,778 10,464 0 0 1,425,242 48,866 13,350 1,592,644 10.464 0 0 1,603,108 48,866 13,350 1,770,510 10,464 0 0 0 1,780,974 48,866 13,350 1,948,376 10,464 0 0 1,958,840 48,866 13,350 180,180 48,866 13,350 Cover Page Financial Model Scenarios Disclaimer 1 1.140.623 1,318,489 1,196,355 1.674.221 1.852 087 2.029 953 A B C E F G J L M N 0 P *C. prarti... l-lill. All richlucrururd. 2 Historical Analysis Il CFL 3 lrstilis excerce share data; 2013A 2014 A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 112 Property And Equipment, net 10,949 16,967 21,838 29,114 48,866 48,866 48,866 48,866 48,866 48,866 48,866 48,866 48,866 48,866 48,866 48.866 113 Goodwill 2,655 3,319 3,759 3,784 13,350 13,350 13,350 13,350 13,350 13,350 13,350 13,350 13,350 13,350 13,350 13,350 114 Other Assets 1930 2,892 3,373 4,723 8,897 8,897 8,897 8,897 8,897 8,897 8,897 8,897 8,897 8,897 8,897 8,897 115 Total Assets 40.159 54,505 65,444 83,402 131,310 251,293 429,159 607,025 784,891 962.757 1,140,623 1,318,489 1,496,355 1.674,221 1,852,087 2,029,953 116 117 LIABILITIES AND STOCKHOLDERS' EQUITY 118 Current Liabilities: 119 Accounts Payable 15,133 16.459 20,397 25,309 34,616 0 0 0 0 0 0 0 0 0 0 0 0 0 0 120 Accrued Expenses and Other 6,688 9.807 10,384 13.739 18.170 0 0 0 0 i. 0 0 0 0 0 0 0 121 Unearned Revenue 1.159 1,823 3.118 4.768 5,097 0 0 0 0 0 0 0 0 0 0 0 122 Total Current Liabilities 22,980 28,089 33,899 43,816 57,883 0 0 0 0 0 0 0 0 0 0 123 Long Term Debt 3.191 8.235 7,694 24,743 24,743 24,743 24,743 24,743 24,743 24.743 24,743 24,743 24,743 24,743 24,743 124 Other Long-Term Liabilities 4,242 7.410 9,926 12,607 20.975 20,975 20,975 20,975 20,975 20,975 20,975 20.975 20.975 20,975 20,975 20,975 125 Total Liabilities 30,413 43,764 52,060 64,117 103,601 45,718 45,718 45,718 45.718 45,718 45,718 45,718 45,718 45,718 45,718 45,718 126 Stockholders' Equity: 127 Common Shares - 477 and 484 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 128 Treasury Stock, at Cost (1,8371 (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1,837) (1.837) 129 Additional Paid-In Capital 9,573 11,135 13,394 17,186 21,389 21,389 21,389 21,389 21,389 21,389 21,389 21,389 21,389 21,389 21,389 21,389 130 Accumulated Other Comprehensive Loss (185) (511) (723) 1985) (484) (484) (484) (484) (484) (484) (484) ) (484) (484) (484) 131 Retained Earnings 2,190 1949 2.545 4,916 8,636 186,502 364,368 542,234 720 100 897 966 1075,832 1,253,698 1,431,564 1,609,430 1,787,296 1965,162 132 Total Stockholders' Equity 9.746 10,741 13,384 19,285 27,709 205,575 383,441 561,307 739 173 917,039 1094,905 1,272,771 1,450,637 1,628,503 1.806 369 133 Total Liabilities and Stockholders' Equity 40.159 54,505 65.444 83,402 131,310 251,293 129 159 607,025 784.891 962.757 134 135 09 BAN 2000 BART 136 137 Cash Floy Statement 138 139 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 8,084 8,658 14,557 15,890 19,334 20,522 169,716 347,582 525,448 703,314 881,180 1,059,046 1,236,912 1,414,778 1,592,644 1,770,510 140 141 OPERATING ACTIVITIES: 142 Net Income 274 (241) 596 2,371 3,033 177,866 177,866 177,866 177,866 177,866 177,866 177,866 177,866 177.866 177,866 177.866 143 Adjustments to Reconcile Net Income to Net Cash from Operating Activities: 144 Depreciation of Property and Equipment 3,253 4,746 6,281 8,116 11,478 0 0 0 0 0 0 0 0 0 0 0 145 Stock-Based Compensation 1,134 1,497 2,119 2,975 4.215 0 0 0 0 0 0 0 0 0 0 0 146 Other Non-Cash Operating Expense, net 123 (128) 486 (106) (119) 0 0 0 0 0 0 0 0 0 0 0 0 0 147 Changes in Operating Assets and Liabilities: 148 Inventories (1,410) (1,193) (2,187) (1,426) (3,583) 16,047 0 0 0 0 0 0 0 0 0 0 0 0 0 0 149 Accounts Receivable, net and other (846) (1,039) (1.755) (3,367) (4,786) 13,164 0 0 0 0 0 0 0 0 0 150 Accounts Payable 1,888 1,759 4.294 5,030 7,175 n (34,616) 0 . 0 0 0 0 0 0 0 0 0 151 Accrued Expenses and Other 736 706 913 1724 283 (18,170) 0 0 0 0 0 0 0 0 0 0 152 Unearned Revenue 401 741 1,292 1,955 738 (5,097) 0 0 0 0 0 i. 0 0 0 0 0 153 Net Cash Provided by (used in) Operating Activities 5.553 6,848 12,039 17.272 18.434 149.194 177.866 177,866 177.866 177.866 177.866 177.866 177.866 177.866 177.866 177.866 154 155 INVESTING ACTIVITIES: 156 Purchases of Property and Equipment, Including Internal-Use Software and Website Development 14,893) ) (5,387) (7.804) (11,955 0 0 0 0 0 0 0 0 157 Proceeds from Property and Equipment Incentives 798 1,067 1,897 158 Acquisitions, net of cash acquired, and other ( (312) ( (979) (795) (116) (13,972) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 159 Sales (Purchases of Marketable Securities, net (520) 807 11,066) ) (3,023) (3,789 0 0 0 0 i 0 0 0 0 . 0 0 0 160 Net Cash Provided by (used in) Investing Activities (4.276) (5.065) (6.450) (9.876) (27.819) 0 0 0 0 0 0 0 0 0 0 0 0 161 162 FINANCING ACTIVITIES: 163 Proceeds (Repayments) from Long-Term Debt and Other 163 5,846 (1,299) 267 14,859 0 0 0 0 0 0 0 0 0 0 0 0 164 Principal Repayments of Capital Lease Obligations 0 (775) 0 (1,285) (2.462) (3,860 (4,799) 0 0 0 0 0 0 0 0 0 0 0 0 0 165 Principal Repayments of Finance Lease Obligations 15 (135) (121) (147) ( (200) 166 Proceeds from Issuing Equity (Common, Treasury, Paid-in, etc) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 167 Payment of Dividends 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100 LLL Drouided (codin Cin snninn Antiitin (C171 120 (2 007) (2 710) goen n n Cover Page Financial Model Scenarios Disclaimer + 0 0 0 0 0 B D E F G H J L M N 2013A 2014 A 0 0 4,426 2015A 0 0 0 (3.882) 2016A 0 0 (3.740) 2017A 0 0 9.860 2018E U 0 2019E 0 0 0 0 2020E 0 0 0 2021E U 0 0 2022E 0 0 0 2023E 0 0 0 0 2024E 0 0 0 2025E 0 0 0 0 2026E 0 0 0 P Q all CEI 2027E 2028E 0 0 0 0 0 0 0 0 (617) 0 (86) 574 (310) 5,899 (374 1,333 (212 3,444 713 1,188 149.194 177,866 177.866 177,866 177,866 177.866 177,866 177.866 177,866 177,866 177.866 347,582 525,448 703,314 8,658 14,557 15.890 19,334 20,522 169,716 881,180 1,059,046 1.236.912 1.414,778 1,592,644 1.770,510 1,948,376 10,949 (4,746) 4,893 4,751 1120 16,967 16,967 (6,281) 4,589 5.353 1210 21,838 21,838 (8,116) 6,737 6,593 2062 29,114 29.114 (11,478) 10,058 12,643 8,529 48,866 48,866 0 0 0 0 0 48,866 48,866 0 0 0 0 0 0 48,866 48,866 0 0 0 0 48,866 48,866 0 0 0 0 48,866 48,866 0 0 0 0 48,866 48,866 0 0 0 0 48,866 48,866 0 0 0 . 48,866 48,866 0 0 0 0 0 48,866 48,866 0 0 0 0 48,866 48,866 0 0 0 0 48,866 48,866 0 0 0 48,866 10,949 A 1 Corporati.... lll.l. All righlarrerard 2 Historical Analysis 3 3 liniis excewe share data 166 Proceeds from Issuing Equity (Common, Treasury, Paid-in, etc) 167 Payment of Dividends 168 Net Cash Provided by (used in) Financing Activities 169 170 Foreign Currency Effect on Cash and Cash Equivalents 171 Net Increase (Decrease) in Cash and Cash Equivalents 172 173 CASH AND CASH EQUIVALENTS, END OF PERIOD 174 175 176 Supporting Schedules 177 178 PP&E Schedule 179 Opening Balance 180 Less: Depreciation 181 Plus: Capex 182 Plus: PP&E Acquired Under Capital/Financing Leases 183 Plus: Other Net Additions 184 Closing Balance 185 186 PPAE Balance Steer 187 188 Debt Schedule 189 Opening Balance 190 Plus: Additions (repayments), net 191 Closing Balance 192 193 Zong-Term Demo Relace Deer 194 195 Interest Expense 196 Interest Rate 197 198 Capital Leases Schedule 199 Opening Balance (Total) 200 Less: Principal Repayments 201 Plus: Net Additions 202 Closing Balance (Total) 203 204 Awal Rencor Casing Fique 205 206 207 208 Valuation 3,191 5,074 8,265 8,265 (30) 8,235 8,235 (541) ) 7,694 7,694 17,049 24,743 24,743 0 24,743 24,743 0 24,743 24,743 0 24,743 24,743 0 24,743 24,743 0 24,743 24,743 0 24,743 24,743 0 24,743 24,743 0 24,743 24,743 0 24,743 24,743 0 24,743 24,743 0 24,743 3.191 141 210 3.7% 459 5.6% 484 6.1% 848 5.2% 0 0.0% % 0 0.0% % 0 0.0% 0 0 0.0% 0.0% % 0 0.0% 0 0.0% % 0 0 0.0% % 0 0.0% 0.0% 0.0% 19,304 1.301 (780) 2.452 2,973 2,973 ( (1,420) 4.751 6,304 6,304 (2,583) 5,353 9,074 9,074 14,007) 6,593 11,660 11,660 (4,999) ) 12.643 19.304 19,304 0 0 19,304 19,304 0 0 19,304 19,304 0 0 19,304 19,304 0 0 0 19,304 19,304 0 0 19,304 19,304 0 0 0 19,304 19,304 0 0 19,304 19,304 0 0 19,304 19,304 0 0 19,304 19,304 0 0 19,304 0 19,304 ( 209 210 Free Cash Flow (FCF) From Operations 211 Net Cash Provided by (used in) Operating Activities 212 Purchases of Property and Equipment 213 Free Cash Floy 214 215 Property and Equipment Acquired Under Capital Leases 216 Free Cash Flow Less Capital Leases 217 218 EBIT 219 D&A 220 EBITDA (Including SBC) 221 222 Cook Dead Comanestion (CDC Cover Page Financial Model Scenarios Disclaimer 220 EBITDA (Including SBC) 221 222 Stock-Based Compensation (SBC) 223 EBITDA (Excluding SBC) 224 225 Free Cash Flow to Firm (FCFF) 226 Operating Profit 227 Less: Unlevered Taxes 228 Net Operating Profit After Tax (NOPAT) 229 Plus: Depreciation & Amortization 230 Plus: Stock-Based Compensation 231 Plus: Other Non-Cash Expenses 232 Less: Cash Capex 233 Plus: Changes in Net Working Capital 234 Free Cash Flow to Firm (FCFF) 235 236 Less: Capital Lease Additions 237 Free Cash Flow to Firm (FCFF) If All Cash Capes 238 1 A B C E F G H J K L M N O P Corporate Finance Institute. All right reserved. 2 Historical Analysis Il CEI 3 l/ minis ango' per strane gaz/ 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 4 5 Historical Analysis 6 Time Periods 7 BOP 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023 1/1/2024 1/1/2025 1/1/2026 1/1/2027 1/1/2028 8 EOP 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/312021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027 12/31/2028 9 Days 365 365 365 366 365 365 365 366 365 365 365 366 365 365 365 366 10 11 Case Selection 12 13 Name Description Number Live Case -> 14 Consensus Number 1 15 Bull 2 16 Bear 3 17 Other 4 18 19 LIVE CASE 20 Segmented Revenue Growth 21 Online Stores 22 Physical Stores 23 Retail Third-Party Seller Services 24 Retail Subscription Services 25 AWS 26 Other 27 Total Net Sales 28 29 Expenses 30 Cost of Sales 31 Fulfillment 32 Marketing 33 Technology and Content 34 General and Administrative 35 Other Operating Expense, net 36 Total Operating Expenses 37 38 Stock-Based Compensation (SBC)IZ of SG&A) 39 Tax Rate 40 Interest Income Rate (Opening Balance) 41 Interest Expense Rate (Average Debt) 42 43 Balance Sheet 44 Inventory Days 45 Accounts Receivable Days 46 Change in Goodwill 47 Change in Other Assets 48 Change in Marketable Securities 49 50 Accounts Payable Days Cover Page Financial Model Scenarios Disclaimer D E F G . J K L M N P Q Il CET 2027E 2028E 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E A B 1 Corporate Finance Institute. All right reserved. 2 Historical Analysis 3 links are per share / 2013A 49 50 Accounts Payable Days 51 Accrued Expenses 52 Unearned Revenue 53 54 Cash Capex % of revenue 55 PP&E Acquired under Capital Leases 56 Depreciation % of PPE (Opening Balance) 57 Repayment of Capital Leases (Opening Balance) 58 59 Change in Long-Term Debt 60 Change in Common Shares 61 Change in Treasury Stock 62 Change in Additional Paid-in Capital 63 64 Dividends 65 Proceeds from Property and Equipment Incentives 66 Acquisitions, net of Cash Acquired, and Other 67 Sales and Maturities of Marketable Securities 68 69 Change in Basic Shares Outstanding 70 Change in Diluted Shares Outstanding 71 72 73 74 CONSENSUS CASE 75 Segmented Revenue Growth 76 Online Stores 77 Physical Stores 78 Retail Third-Party Seller Services 79 Retail Subscription Services 80 AWS 81 Other 82 Total Net Sales 83 84 Expenses 85 Cost of Sales 86 Fulfillment 87 Marketing 88 Technology and Content 89 General and Administrative 90 Other Operating Expense, net 91 Total Operating Expenses 92 93 Stock-Based Compensation (SBC) (% of SG&A) 94 Tax Rate 95 Interest Income Rate (Opening Balance) Cover Page Financial Model 5.9% 19.7% % 143.8% 24.0% 49.17 42.2% 134.1%. 18.1% 11.2%. 27.0% 40.3% 38.0% 78.0% 17.5%. 11.8% 25.0% 36.1% 36.5% 52.0% 17.174 9.1% 21.0% 26.5% 26.17 39.0% 16.2% 8.7% 20.4% 19.0% 18.5% 36.0% 14.9% 9.6% 17.1% 18.07. 16.5% 23.2% 13.2% 10.17 12.5% 11.07 13.7% 13.07 11.1% 10.6% 12.1% 7.1% 13.2% 8.3% 8.0% 9.374 10.17 5.2% 10.8% 9.2% 7.1% % 8.6% 5.7% 5.0% 9.2% 7.6% 7.4% 5.1% 4.0%. 6.7% 4.6% 58.3% 16.4%. 4.8% 11.27 3.8%. 0.2% 59.0% 15.1%. 5.0% 11.4%. 2.9% 0.24 93.6% 58.7% 15.37 5.1% 11.2% 2.1% 0.2% 92.6% 59.17 15.2% 5.07. 11.3% 2.0% 0.2%. 58.4%. 14.9% % 4.7% 11.5% 2.17 0.24 91.87 58.2% 15.3% 5.0% 11.1% 2.0% 0.2% 58.2%. 15.4% 5.02 11.2% 1.9% 0.2% 91.9%. 58.5% 15.1% 5.0% 11.2% 1.9% 0.2% 91.9% 57.6% 15.2% 5.2% 11.2% 1.9% 0.2% 91.37 57.3% 15.2% 5.2% 11.17 1.8% 0.2% 90.8% 57.9% 15.2% 5.2% 11.1% 1.8% 0.2% 91.4% 94.7%. 92.8% 91.87 6.07 20.0% 1.0% 6.0% 20.0% 1.0% 6.0% 22.5% 1.07 6.0% 22.5% 1.0% 6.0% 22.5%. 1.0% 6.0% 22.5% 1.0% 6.0% 22.5% 1.0% 6.07 22.5% 1.0% 6.0% 22.5% 1.0% 6.0% 22.5% 1.0% 6.0% 22.5% 1.0% Scenarios Disclaimer D E F 1 J K L M N 1 2015A 2016A 2017A 2018E 20.0% 1.0% 6.87 2019E 20.0% 1.0% 6.87 2020E 22.5% 1.0% 6.87 2021E 22.5% 1.0% 6.87 2022E 22.5% 10% 6.8% 2023E 22.52 1.0% 6.87 2024E 22.5% 1.0% 6.8% 2025E 22.5% 1.07 6.8% 2026E 22.5% 10% 6.8% P Il CET 2027E 2028E 22.5% 22.5% 1.0% % 1.0% 6.8%. 6.8% 57 26 57 26 10 0.0% 0.07 57 26 0 0.0% 0.0% 57 26 0 0.0% 0.0% 57 26 0 0.0% % 0.07 57 26 20 0.02 0.0% 57 26 0 0 0.0% 0.0% 57 26 0 0.02 0.0% 57 26 0 0.0% 0.0% 57 26 0 0.0% 0.02 57 26 0 0.0% 0.0% 0.0% 0.0% 104 10.0% 3.6% 104 10.0% 3.6%. 104 10.0% 3.6% 104 10.0% 3.6% 104 10.0% 3.67 104 10.07 3.6% 104 10.07 3.6% 104 10.0% 3.6% 104 10.0% 3.6%. 104 10.0% 3.6% 104 10.07 3.6% 6.6% 5.07 6.6% 4.4% 38.0% 36.5% 5.9% 5.5%. 6.67 4.8% 38.0% 36.5% 6.6%. 4.4% 38.0% 36.5% 38.0%. 6.6%. 5.5% 38.0% 36.5% 5.97 5.5% 38.0% 36.5% 5.9% 5.5%. 38.0%. 36.57 38.0% 5.02 4.2% 38.0% 36.5% 4.3% 3.0% 38.0%. 36.5% 4.3%. 3.0% 38.0% 36.5% 36.5% 36.5% 0 0 0 A B C Corporate Finance Instituto. All right rosorved. 2 Historical Analysis 3 for saper stare / 2013A 2014A 94 Tax Rate 95 Interest Income Rate (Opening Balance) 96 Interest Expense Rate (Average Debt) 97 98 Balance Sheet 99 Inventory Days 100 Accounts Receivable Days 101 Change in Goodwill 102 Change in Other Assets 103 Change in Marketable Securities 104 105 Accounts Payable Days 106 Accrued Expenses 107 Unearned Revenue 108 109 Cash Capex % of revenue 110 PP&E Acquired under Capital Leases 111 Depreciation of PPE (Opening Balance) 112 Repayment of Capital Leases (Opening Balance) 113 114 Change in Long-Term Debt 115 Change in Common Shares 116 Change in Treasury Stock 117 Change in Additional Paid-in Capital 118 119 Dividends 120 Proceeds from Property and Equipment Incentives 121 Acquisitions, net of Cash Acquired, and Other 122 Sales and Maturities of Marketable Securities 123 124 Change in Basic Shares Outstanding 125 Change in Diluted Shares Outstanding 126 127 128 BULL CASE 129 Segmented Revenue Growth 130 Online Stores 131 Physical Stores 132 Retail Third-Party Seller Services 133 Retail Subscription Services 134 AWS 135 Other 136 Total Net Sales 137 138 Expenses 139 Cost of Sales 140 Fulfillment Cover Page Financial Model Scenarios 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1.0% 1.5% 1.07 1.5%. 1.0% 1.2%. 1.0% 1.07 1.0% 1.0% 1.0% 1.07 1.0% 1.0% 1.0% 1.07 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 23.5% 175.6% 29.9% 58.2% 28.9% 158.3% 21.4% 14.7% 28.6% % 48.2% 45.3% 91.0% 20.3% 12.8% 28.12 43.8% 42.6% 58.3% 20.1% 10.9% 26.2% 32.8% 32.02 46.72 18.9% . 10.6% 24.8% 22.4% 22.6% 43.1% 17.6% 11.17 21.4% 21.2% 20.3% 28.9% 15.6% 12.7% 15.4% 12.7%. 16.8% 15.3%. 13.2% 12.9% 14.37. 9.2% 16.7%. 11.27 10.17 11.8% 11.9% 6.2%. 12.7% 11.37. 8.6% 12.7% 6.9% 6.1% 10.4% 9.9% 7.32 10.2% 6.8% 4.9% 8.17 6.37. 57.2%. 16.3%. 58.2%. 15.2% 57.7% 15.02 57.7% 15.0% 57.2%. 15.17 57.2% 15.2% 57.7% 15.3% 57.7%. 15.3%. 56.3% 15.3% 56.3% 15.3% 57.0% 15.3% Disclaimer + Display Settings B D E F G H J K L M N O 2013A 2014A 2015A 2016A 2017A 2018E 57.2%. 16.32 4.8%. 11.3%. 3.9% 0.2% 93.7% 2019E 58.2% 15.2% 4.9%. 11.4%. 2.9% 0.2% 92.87 2020E 57.7% 15.0% 4.9% 11.5%. 2.0% 0.2% 91.4% 2021E 57.7% 15.0% 4.9% 11.5%. 1.9% 0.2%. 91.47 2022E 57.2% 15.12 4.9%. 11.5%. 1.97 0.2% 91.07 2023E 57.2% 15.2% 4.9% 11.2% 1.9% 0.2% 90.7% 2024E 57.7% 15.3%. 4.9% 11.2%. 1.9% 0.2% 91.37 2025E 57.7% 15.3%. 4.9% 11.27 1.87 0.2% 91.27 2026E 56.3% 15.3%. 5.2% 11.2% 1.82 0.2% 90.07 B Il CEI 2027E 2028E 56.3% 57.0%. 15.3%. 15.3%. 5.1% 5.1% 11.07. 10.7% 1.8% 1.8% 0.2% 0.2% 89.72 90.2% 6.8% 20.0% 1.0% 7.07. 6.87 20.0% 1.0% 7.0% . 6.8% 22.5% 10% 7.0%. 6.8%. 22.5% 1.0% 7.07. 6.8%. 22.5% 1.0%. 7.0% 6.8% 22.5% 1.0% 7.07 6.8% 22.5%. 1.0% 7.0% 6.8%. 22.5% 1.0% % 7.0% 6.8%. 22.5% 1.0% 7.0% 6.8% % 22.5% 1.0% 7.0% 6.8% 22.5%. 10% 7.0% A 1 Corporate Finance Institute. All rights reserved. 2 Historical Analysis 3 lin/ansaxeoper stradate/ 139 Cost of Sales 140 Fulfillment 141 Marketing 142 Technology and Content 143 General and Administrative 144 Other Operating Expense, net 145 Total Operating Expenses 146 147 Stock-Based Compensation (SBC)% of SG&A) 148 Tax Rate 149 Interest Income Rate (Opening Balance) 150 Interest Expense Rate (Average Debt) 151 152 Balance Sheet 153 Inventory Days 154 Accounts Receivable Days 155 Change in Goodwill 156 Change in Other Assets 157 Change in Marketable Securities 158 159 Accounts Payable Days 160 Accrued Expenses 161 Unearned Revenue 162 163 Cash Caper% of revenue 164 PP&E Acquired under Capital Leases 165 Depreciation of PPE (Opening Balance) 166 Repayment of Capital Leases (Opening Balance) 48 22 48 22 48 22 0 0.0% 0.0% 48 22 0 0.07 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.07 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.07 48 22 0 0.0% 0.0% % 48 22 0 0.07 0.0% 0.0% 0.0% 0.0% 0.0% 115 9.17 2.5%. 115 9.17 2.5%. 115 9.17 2.5% 115 9.17 2.5% 115 9.1% 2.5% % 115 9.17 2.5%. 115 9.1% 2.5% 115 9.17 2.5%. 115 9.17 2.5% 115 9.17 2.5% 115 9.1% 2.5%. 7.2% 7.5% 40.3% 37.5%. 7.2% 6.0% 40.3% 37.5%. 7.2% 5.0% 40.3% 37.5% 7.2% 5.0% 40.3% 37.5%. 7.22 5.0% 40.3% 37.5%. 7.2% 4.0% 40.3% 37.5% 7.2% 4.0% 40.3% 37.5%. 7.2% 4.0% 40.3% 37.5% 7.2% 3.0% 40.3% 37.5%. 7.2% 2.9% 40.3% 37.5%. 7.22. 2.9% 40.3% 37.5% 167 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 168 Change in Long-Term Debt 169 Change in Common Shares 170 Change in Treasury Stock 171 Change in Additional Paid-in Capital 172 173 Dividends 174 Proceeds from Property and Equipment Incentives 175 Acquisitions, net of Cash Acquired, and Other 176 Sales and Maturities of Marketable Securities 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 177 1.2% 1.6% 1.1% 1.37 1.0% 1.0% 1.0% 1.07 1.0% 1.0% 1.0% 1.07 1.0% 1.0% 1.07 1.0% 1.07. 1.0% 1.07 1.0% 1.07 1.0% 178 Change in Basic Shares Outstanding 179 Change in Diluted Shares Outstanding 180 181 182 BEAR CASE 183 Segmented Revenue Growth 184 Online Stores 185 Physical Stores 18.7% 142.5%. 17.2% 11.5% 16.0% 10.2% 16.07 8.6% % 15.07. 8.6%. 14.1% 8.6% 12.2% 10.17 10.3% 10.0% 7.5%. 9.0% 6.6% 8.4% 5.67 7.7% Cover Page Financial Model Scenarios Disclaimer 1 B c E F G . J K L M N 0 1 2013A 2014A 2015A 2016A 2017A 2018E 18.7% 142.5%. 23.6% 46.9% 39.17 126.4% 2019E 17.2% 11.5%. 23.5% 38.8% 36.7% 75.2% 2020E 16.0%. 10.2% 22.6% 34.8% 33.8%. 47.0% 2021E 16.0% 8.6% 20.7% 2022E 15.0%. 8.6% 19.72 17.9% 17.9% 34.8% 2023E 14.1% 8.6% 16.9% 16.9% 16.0% 22.6% 2024E 12.2% 10.1% 12.2. 10.3% 13.2% 12.2% 2025E 10.3%. 10.0% 11.3% 6.6% 13.2% 8.5%. 2026E 7.5% 9.0% 9.4% 4.7% 10.3%. 8.5% Q Il CEI 2027E 2028E 6.6%. 5.6% 8.4% 7.7% 5.6% 5.2%. 4.7% 3.87 8.5%. 6.6% 7.5% 4.7% 26.3% 25.4% 37.6% 59.4% 15.8% 5.7%. 60.7% 17.32 4.8% 12.0% 4.5% 0.2% 99.5% 61.2% 16.2% 4.9% 12.2% 2.8% 0.2% 97.4% 60.7% 16.02 5.17 12.2% 2.1% 0.2% 96.37 60.8% 15.7% 5.3%. 12.3%. 2.0% 0.2% 96.2% 60.8% 16.12 5.3%. 12.3% 2.07 0.2% 96.6% 60.2% 16.2% 5.37 11.8% 2.0% 0.2% 95.7% 61.0% 15.8%. 5.3% 11.6% 2.07 0.2%. 95.97 61.3%. 15.82 5.32 11.6% 1.8% 0.2% 95.97 11.6% 1.8% 0.2% 94.5% 59.4% 15.8% 5.7% 11.3% 1.874 0.2% 94.27 60.17 15.82 5.7% 11.1% 1.8% 0.2%. 94.7% 6.1% 20.0% 10%. 7.0% 6.1% 20.0% 1.0% % 7.0% 6.1% 22.5% 1.0% 7.0% 6.1% % 22.5%. 1.0% 7.0% 6.12 22.5% 1.0%. 7.02 6.17 22.5% 10% 7.0% 6.1% 22.5% 1.0% 7.0% 6.1% 22.5% 1.0% 7.0% 6.1% 22.5% 1.0%. 7.02 6.1% 22.5% 1.0% 7.0% 6.1% 22.5% 1.0% 7.0% A Corporate Finance Institute. All right reserved. 2 Historical Analysis 3 e lor/wins, www portare cate/ 184 Online Stores 185 Physical Stores 186 Retail Third-Party Seller Services 187 Retail Subscription Services 188 AWS 189 Other 190 Total Net Sales 191 192 Expenses 193 Cost of Sales 194 Fulfillment 195 Marketing 196 Technology and Content 197 General and Administrative 198 Other Operating Expense, net 199 Total Operating Expenses 200 201 Stock-Based Compensation (SBC)% of SG&A) 202 Tax Rate 203 Interest Income Rate (Opening Balance) 204 Interest Expense Rate (Average Debt) 205 206 Balance Sheet 207 Inventory Days 208 Accounts Receivable Days 209 Change in Goodwill 210 Change in Other Assets 211 Change in Marketable Securities 212 213 Accounts Payable Days 214 Accrued Expenses 215 Unearned Revenue 216 217 Cash Capex % of revenue 218 PP&E Acquired under Capital Leases 219 Depreciation 2 of PPE (Opening Balance) 220 Repayment of Capital Leases (Opening Balance) 221 222 Change in Long-Term Debt 223 Change in Common Shares 224 Change in Treasury Stock 225 Change in Additional Paid-in Capital 226 227 Dividends 228 Proceeds from Property and Equipment Incentives 229 Acquisitions, net of Cash Acquired, and Other 230 Sales and Maturities of Marketable Securities 65 32 65 32 65 32 0 0.0% 0.0% 65 32 0 0.0% 0.0% % 65 32 0 0.0% 0.0% 65 32 0 0.07 0.0% 65 32 0 0.07 0.0% % 65 32 0 0.0% 0.0% 65 32 0 0.0% 0.0% 65 32 0 0 0.0% 0.07 65 32 0 0.0% 0.0% 0.0% 0.0% 0.07 0.0% 122 10.5% 5.3% % 122 10.5% 5.37 122 10.5% 5.3%. 122 10.5%. 5.37 122 10.5% 5.3% 122 10.5% 5.37 122 10.5% 122 10.57 5.37 122 10.5% 5.3%. 122 10.5% 5.37 122 10.5% 5.37 5.3% 7.1% 7.5% 41.0% 39.2%. 7.1% 6.0% 41.0% 39.2% 7.12 5.0% 41.0% 39.22 7.1%. 5.0% 41.0% 39.2% 7.1% 5.0% 41.07 39.2%. 7.1% 4.0% % 41.0% 39.2% 7.1% 4.07 41.0% 39.2% 7.17 4.0% 41.0% 39.2%. 7.1% 3.0% 41.0% 39.2% 7.1% 2.9% 41.0% 39.2% 7.1% 2.9% 41.0% 39.274 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cover Page Financial Model Scenarios Disclaimer + B C D E F G H | J J K L M N Q 1 P Il CEI 2013A 2014A 2015A 2016A 2017A 2018E 0 0 2019E 0 0 2020E 0 0 2021E 0 0 2022E 0 0 2023E 0 0 2024E 0 0 2025E 0 0 2026E 0 0 2027E 0 0 2028E 0 0 1.2% 1.6% 1.1%. 1.3%. 1.0% 1.0% 1.0% 1.0% 1.0%. 1.0% 1.0%. 1.0% 1.0% 1.0%. 1.07 1.07. 1.0% 1.0%. 1.0% 1.0% 1.0% 1.0% 0.0% 0.0% 0.0% % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.07 0.0% 0.02 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.07. 0.0%. 0.0%. 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.02 0.0% 0.0% 0.07 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.07 0.0% 0.0% A Corporate Finance Instituto. All right rororved. 2 Historical Analysis 3 londins or portare data) 229 Acquisitions, net of Cash Acquired, and Other 230 Sales and Maturities of Marketable Securities 231 232 Change in Basic Shares Outstanding 233 Change in Diluted Shares Outstanding 234 235 236 OTHER CASE 237 Segmented Revenue Growth 238 Online Stores 239 Physical Stores 240 Retail Third-Party Seller Services 241 Retail Subscription Services 242 AWS 243 Other 244 Total Net Sales 245 246 Expenses 247 Cost of Sales 248 Fulfillment 249 Marketing 250 Technology and Content 251 General and Administrative 252 Other Operating Expense, net 253 Total Operating Expenses 254 255 Stock-Based Compensation (SBC) (% of SG&A) 256 Tax Rate 257 Interest Income Rate (Opening Balance) 258 Interest Expense Rate (Average Debt) 259 260 Balance Sheet 261 Inventory Days 262 Accounts Receivable Days 263 Change in Goodwill 264 Change in Other Assets 265 Change in Marketable Securities 266 267 Accounts Payable Days 268 Accrued Expenses 269 Unearned Revenue 270 271 Cash Capex % of revenue 272 PP8E Acquired under Capital Leases 273 Depreciation 2 of PPE (Opening Balance) 274 Repayment of Capital Leases (Opening Balance) 275 57.1% 13.4% 7.0% 12.3%. 3.0% 1.2 94.07 57.1% 13.4% 7.07. 12.3% 3.0% 1.27 94.07 57.1% 13.4% 7.0% 12.3% 3.02 1.2% 94.07 57.12 13.4%. 7.0% 12.3% 3.0% 1.2% 94.07 57.1% 13.4% 7.0% 12.3% 3.07 1.2%. 94.07 57.17 13.4% 7.0% 12.37 3.0% 1.2%. 94.07 57.1% 13.4% 7.0% 12.3% 3.07 1.2% 94.07 57.1% 13.4% 7.0% 12.3%. 3.0% 1.2% 94.07 57.1% 13.4% 7.0% 12.3%. 3.02 1.2% 94.07 57.1% 13.4% 7.0%. 12.3% 3.07 1.2% 94.07 57.17 13.4% 7.0% 12.3%. 3.0% 1.2% 94.07 6.07 20.02 1.0% 5.5%. 6.87 20.0% 1.0% 5.5%. 6.8% 20.0% 1.0% 5.5%. 6.8% 20.0% 1.0% 5.5%. 6.8% 20.0% 1.0% 5.5% 6.87 20.0% 1.0% 5.5% 6.8% 20.074 1.0% 5.5%. 6.87 20.0% 1.0% 5.5%. 6.8% 20.0% 1.0% 5.5% 6.87 20.0% 1.0% 5.5% 6.8% 20.0% 1.0% 5.5%. 52 27 52 27 52 27 52 27 52 27 0 0.0% 0.0% 52 27 0 0.0% 0.02 52 27 0 0.0% 0.07 52 27 0 0.0% 0.0% 52 27 0 0.0% 0.0% 52 27 0 0.0% 0.0% 52 27 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.02 116 12.02 3.4%. 116 12.07 3.4% 116 12.0% 3.4% 116 12.0% 3.4% 116 12.07 3.42 116 12.0% 3.4% 116 12.07 3.4% 116 12.07 3.4% 116 12.0% 3.4% 116 12.0% 3.4% 116 12.07 3.4% 6.0% 7.0% 40.0% 38.0% 6.0% 7.0% 40.0% 38.02 6.0% % 7.0% 40.0% 38.0% 6.0% 7.0% 40.0% 38.02 6.0% 7.0% 40.0% 38.07 6.0% 7.0% 40.0% 38.02 6.0% 7.0% 40.0% 38.0% 6.0% 7.0% 40.0% 38.0% 6.0% 7.0% 40.0% 38.0% 6.0% 7.0% 40.0% 38.0% 6.0% 7.0% 40.0% 38.0% Cover Page Financial Model Scenarios Disclaimer B C D E F H | J L M N O 1 2013A 2014A 2015A 2016A 2017A 2018E 6.0% 7.0% 40.0% 38.0% 2019E 6.0% % 7.07. 40.0% 38.0% 2020E 6.0%. 7.07. 40.0% 38.0%. 2021E 6.0% 7.07 40.0% 38.0%. 2022E 6.0% 7.0% 40.0% 38.0% 2023E 6.0% 7.07. 40.0% 38.02 2024E 6.07. 7.07 40.0% 38.02 2025E 6.07. 7.07. 40.0% 2026E 6.07 7.07 40.0% Q III CEI 2027E 2028E 6.0% 6.0%. 7.07. 7.0% 40.0% 40.0% 38.0%. 38.07 38.0% 38.0% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1.0% 1.5%. 10% 1.5%. 1.0% 1.5% 1.0% 1.5% 1.0% 1.5%. 1.0% 1.5% 1.0% 1.5%. 1.07 1.5% 1.0% 1.5%. 1.07 1.5% 1.0% 1.5%. Corporate Finance Institute. All right roerved. 2 Historical Analysis 3 for Wins. 1904 per stare Jaz/ 271 Cash Capex % of revenue 272 PP&E Acquired under Capital Leases 273 Depreciation % of PPE (Opening Balance) 274 Repayment of Capital Leases (Opening Balance) 275 276 Change in Long-Term Debt 277 Change in Common Shares 278 Change in Treasury Stock 279 Change in Additional Paid-in Capital 280 281 Dividends 282 Proceeds from Property and Equipment Incentives 283 Acquisitions, net of Cash Acquired, and Other 284 Sales and Maturities of Marketable Securities 285 286 Change in Basic Shares Outstanding 287 Change in Diluted Shares Outstanding 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 Cover Page Financial Model Scenarios Disclaimer + Display Settings A B C D E F G H J K L M N P 1 111 CFT 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 1/1/2013 1/1/2014 12/31/2013 12/31/2014 365 365 1/1/2015 12/31/2015 365 1/1/2016 12/31/2016 366 1/1/2017 12/31/2017 365 1/1/2018 12/31/2018 365 1/1/2019 12/31/2019 365 11/2020 11/2021 11/2022 12/31/2020 12/31/2021 12/31/2022 366 365 365 1/1/2023 12/31/2023 365 1/1/2024 12/31/2024 366 1/1/2025 12/31/2025 365 1/1/2026 12/31/2026 365 1/1/2027 12/31/2027 365 1/1/2028 12/31/2028 366 - na na - na na na na na na 19.5% na na na 19.0% na 42.9% 43.1% 55.1% 72.5% 27.17 18.5% na 38.7% 52.0% 42.9% 57.7% 30.8% na 20.2% 73% 12% - - - 9% 2% 0% 99.0% 71% 12% 5% 10% 2% 02 99.8% 67% 13% 5% 12% 2% 0% 97.9% 65% 13% 5% 1224 12 22 0% 96.9% 63% 14% 6% 13% 2% 0% 97.7% - - - - Corporati.... l-lill. All righlarrorrard. 2 Historical Analysis 3 fr das exercystave dara) 4 5 Historical Analysis 6 Time Periods 7 BOP 8 EOP 9 Days 10 11 Segmented Revenue Growth 12 Online Stores 13 Phusical Stores 14 Retail Third-Party Seller Services 15 Retail Subscription Services 16 AWS 17 Other 18 Total Net Sales 19 20 Expenses 21 Cost of Sales 22 Fulfillment 23 Marketing 24 Technology and Content 25 General and Administrative 26 Other Operating Expense, net 27 Total Operating Expenses 28 29 Stock-Based Compensation (SBC) (% of SG&A) 30 Tax Rate 31 Interest Income Rate (Opening Balance) 32 Interest Expense Rate (Average Debt) 33 34 Balance Sheet 35 Inventory Days 36 Accounts Receivable Days 37 Change in Goodwill 38 Change in Other Assets 39 Change in Marketable Securities 40 41 Accounts Payable Days 42 Acorued Expenses 43 Unearned Revenue 44 45 Cash Capex % of revenue 46 PP&E Acquired under Capital Leases 47 Depreciation of PPE (Opening Balance) 48 Repayment of Capital Leases (Opening Balance) 49 50 Change in Long-Term Debt 51 Change in Common Shares 52 Change in Treasury Stook 53 Change in Additional Paid-in Capital 54 55 Dividends 56 Proceeds from Property and Equipment Incentives 57 Acquisitions, net of Cash Acquired, and Other 58 Sales and Maturities of Marketable Securities 59 cocksnas in Dscio Claroe uteksodio Financial Model 5.8% 31.8% % 0.5% 5.7% 0.0% 0.5% 3.7% 6.4% 60.6% 0.3% 5.6% 6.8% 36.6% 0.6% 6.1% 6.8% 20.2% 1.0% 5.2% - - - 50 23 - - 48 23 664 49.8% -24.5% 52 22 440 16.6% 37.0% 48 22 25 40.0% 69.7% 52 27 9,566 88.4% 57.4% - - 102 9.0% 1.6% 96 11.0% 20% 104 97% 2.9% 105 10.1% 3.5% 113 10.2% 2.9% - - - 4.6% 5.5% 5.3% 43.3% 47.8% 5.0% 5.0% 37.0% 41.0% 5.7% 4.8% 37.2% 44.2% 6.7% 7.1% 39.4% 42.9% - - - 5,074 (30) (541) 17,049 - - 1,562 2,259 3,792 4,203 - - - - 11 112 16 | Cover Page Scenarios Disclaimer + A B E F G H KL M N 0 P Q R 1 111 CFI 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 1.14 -0.6% 1.1% 3.2% 1.5% 1.5% 13% 1.9% 76,863 91.431 108,354 5,798 16,086 22,993 31,881 4.467 6,394 9,721 7,880 12,219 17,459 1,710 2,950 4,653 107.006 135,987 177.866 108,354 5,798 31,881 9,721 17,459 4,653 177,866 108,354 108,354 5.798 5.798 31,881 31,881 9,721 9,721 17,459 17,459 4653 4,653 177.866 177.866 108,354 5.798 31,881 9,721 17,459 4,653 177,866 108,354 5.798 31,881 9,721 17,459 4,653 177.866 108,354 5.798 31.881 9,721 17,459 4,653 177.866 108,354 5.798 31,881 9,721 17,459 4,653 177.866 108,354 5,798 31,881 9,721 17,459 4,653 177.866 108,354 5,798 31,881 9,721 17,459 4.653 177,866 108,354 5,798 31,881 9,721 17,459 4,653 177.866 108,354 1P 5.798 1P 31,881 3P 9,721 Subs 17,459 Cloud 4,653 Advertisi 177.866 74,452 88,988 60,903 13.549 74,452 70,080 18,908 88.988 79,268 27.738 107.006 94,665 118,573 41322 59.293 135,987 177.866 118,805 59,061 177.866 118,805 118,805 59,061 59,061 177,866 177.866 118,805 59,06 177.866 118,805 59,061 177.866 118,805 59,061 177.866 118,805 59,061 177.866 118,805 59,061 177.866 118,805 59,061 177.866 118,805 59,061 177.866 118,805 59,061 177.866 0 0 0 0 *Corporalri.... lulilul. All rigblurrerard. 2 Historical Analysis 3 3 lirsins en swederal 58 Sales and Maturities of Marketable Securities 59 60 Change in Basio Shares Outstanding 61 Change in Diluted Shares Outstanding 62 63 64 Income Statement 65 66 Segmented Revenue 67 Online Stores 68 Physical Stores 69 Retail Third-Party Seller Services 70 Retail Subscription Services 71 AWS 72 Other 73 Total Net Sales 74 75 76 Income Statement 77 Net Product Sales 78 Net Service Sales 79 Total Net Sales 80 Operating Expenses: 81 Cost of Sales 82 Fulfillment 83 Marketing 84 Technology and Content 85 General and Administrative 86 Other Operating Expense, net 87 Total Operating Expenses 88 Operating Income 89 Interest Income 90 Interest Expense 91 Other Income (Expense), net 92 Total Non-Operating Income (Expense) 93 Income Before Income Taxes 94 Provision for Income Taxes 95 Equity-Method Investment Activity, net of tax 96 Net Income 97 Basic Earnings per Share 98 Diluted Earnings per Share 99 Weighted-Average Shares used in Computation of Earnings per Share: 100 Basic 101 Diluted 102 103 104 Balance Sheet 105 106 Current Assets: 107 Cash and Cash Equivalents 108 Marketable Securities 109 Inventories 110 Accounts Receivable, net and other 111 Total Current Assets 112 Property And Equipment, net 113 Goodwill 88,265 17,619 7,233 16,085 2.432 167 131,801 4,186 100 0 0 0 0 0 0 0 177.866 0 0 0 i. 0 0 0 0 0 0 177.866 0 54,181 8,585 3,133 6,565 1,129 114 73,707 745 38 (141) ( 11361 (239) 506 (161) 171 274 0.60 0.59 62,752 10,766 4,332 9,275 1,552 133 88,810 178 39 (210) (118) (289) (111) (167) 37 (241) 10.521 10.52) 0 0 0 0 0 0 0 177.866 0 0 71,651 13,410 5,254 12.540 1.747 171 104,773 2.233 50 (459) (256) (665) 1.568 (950) 1221 596 1.28 1.25 111,934 0 25,249 10,069 0 22,620 0 3,674 0 214 0 173,760 0 4.106 177.866 202 0 1848) 346 (300) 0 3,806 177,866 (769) 0 141 3,033 177,866 6.32 370.55 6.15 360.78 0 0 0 0 0 0 0 0 0 177.866 0 0 0 0 0 0 0 0 0 0 177.866 0 0 0 0 0 0 0 0 0 0 177.866 0 0 0 0 177.866 0 0 0 0 0 0 0 0 177.866 0 0 C 0 0 0 0 0 0 0 0 177.866 0 0 n 0 0 0 0 0 0 0 0 i. 0 0 0 177.866 0 0 0 0 0 0 177,866 0 0 177,866 0 0 177.866 177,866 0 0 177,866 0 0 177,866 0 0 177.866 0 0 0 177,866 0 0 90 (294) 3,892 (1.425) 1961 () 2.371 5.00 4.90 0 177.866 0 0 177,866 0 0 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177.866 370.55 360.78 177,866 370.55 360.78 177.866 370.55 360.78 457 465 462 462 467 477 474 484 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 169,716 10,464 0 8,658 3,789 7,411 4,767 24,625 10,949 2,655 14,557 2.859 8,299 5,612 31,327 16,967 3,319 15,890 3,918 10,243 6,423 36,474 21,838 3,759 19,334 6.647 11,461 8,339 45,781 29,114 3,784 Los 20,522 10,464 16,047 13,164 60,197 48,866 13,350 0 347,582 10,464 0 0 358,046 48,866 13,350 525,448 10,464 0 0 535,912 48,866 13,350 0.00 703,314 10,464 0 0 0 713,778 48,866 13,350 881,180 10,464 0 0 891,644 48,866 13,350 1,059,046 10,464 0 0 0 1,069,510 48,866 13,350 1,236,912 10.464 0 0 1,247,376 48,866 13,350 1,414,778 10,464 0 0 1,425,242 48,866 13,350 1,592,644 10.464 0 0 1,603,108 48,866 13,350 1,770,510 10,464 0 0 0 1,780,974 48,866 13,350 1,948,376 10,464 0 0 1,958,840 48,866 13,350 180,180 48,866 13,350 Cover Page Financial Model Scenarios Disclaimer 1 1.140.623 1,318,489 1,196,355 1.674.221 1.852 087 2.029 953 A B C E F G J L M N 0 P *C. prarti... l-lill. All richlucrururd. 2 Historical Analysis Il CFL 3 lrstilis excerce share data; 2013A 2014 A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 112 Property And Equipment, net 10,949 16,967 21,838 29,114 48,866 48,866 48,866 48,866 48,866 48,866 48,866 48,866 48,866 48,866 48,866 48.866 113 Goodwill 2,655 3,319 3,759 3,784 13,350 13,350 13,350 13,350 13,350 13,350 13,350 13,350 13,350 13,350 13,350 13,350 114 Other Assets 1930 2,892 3,373 4,723 8,897 8,897 8,897 8,897 8,897 8,897 8,897 8,897 8,897 8,897 8,897 8,897 115 Total Assets 40.159 54,505 65,444 83,402 131,310 251,293 429,159 607,025 784,891 962.757 1,140,623 1,318,489 1,496,355 1.674,221 1,852,087 2,029,953 116 117 LIABILITIES AND STOCKHOLDERS' EQUITY 118 Current Liabilities: 119 Accounts Payable 15,133 16.459 20,397 25,309 34,616 0 0 0 0 0 0 0 0 0 0 0 0 0 0 120 Accrued Expenses and Other 6,688 9.807 10,384 13.739 18.170 0 0 0 0 i. 0 0 0 0 0 0 0 121 Unearned Revenue 1.159 1,823 3.118 4.768 5,097 0 0 0 0 0 0 0 0 0 0 0 122 Total Current Liabilities 22,980 28,089 33,899 43,816 57,883 0 0 0 0 0 0 0 0 0 0 123 Long Term Debt 3.191 8.235 7,694 24,743 24,743 24,743 24,743 24,743 24,743 24.743 24,743 24,743 24,743 24,743 24,743 124 Other Long-Term Liabilities 4,242 7.410 9,926 12,607 20.975 20,975 20,975 20,975 20,975 20,975 20,975 20.975 20.975 20,975 20,975 20,975 125 Total Liabilities 30,413 43,764 52,060 64,117 103,601 45,718 45,718 45,718 45.718 45,718 45,718 45,718 45,718 45,718 45,718 45,718 126 Stockholders' Equity: 127 Common Shares - 477 and 484 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 128 Treasury Stock, at Cost (1,8371 (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1.837) (1,837) (1.837) 129 Additional Paid-In Capital 9,573 11,135 13,394 17,186 21,389 21,389 21,389 21,389 21,389 21,389 21,389 21,389 21,389 21,389 21,389 21,389 130 Accumulated Other Comprehensive Loss (185) (511) (723) 1985) (484) (484) (484) (484) (484) (484) (484) ) (484) (484) (484) 131 Retained Earnings 2,190 1949 2.545 4,916 8,636 186,502 364,368 542,234 720 100 897 966 1075,832 1,253,698 1,431,564 1,609,430 1,787,296 1965,162 132 Total Stockholders' Equity 9.746 10,741 13,384 19,285 27,709 205,575 383,441 561,307 739 173 917,039 1094,905 1,272,771 1,450,637 1,628,503 1.806 369 133 Total Liabilities and Stockholders' Equity 40.159 54,505 65.444 83,402 131,310 251,293 129 159 607,025 784.891 962.757 134 135 09 BAN 2000 BART 136 137 Cash Floy Statement 138 139 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 8,084 8,658 14,557 15,890 19,334 20,522 169,716 347,582 525,448 703,314 881,180 1,059,046 1,236,912 1,414,778 1,592,644 1,770,510 140 141 OPERATING ACTIVITIES: 142 Net Income 274 (241) 596 2,371 3,033 177,866 177,866 177,866 177,866 177,866 177,866 177,866 177,866 177.866 177,866 177.866 143 Adjustments to Reconcile Net Income to Net Cash from Operating Activities: 144 Depreciation of Property and Equipment 3,253 4,746 6,281 8,116 11,478 0 0 0 0 0 0 0 0 0 0 0 145 Stock-Based Compensation 1,134 1,497 2,119 2,975 4.215 0 0 0 0 0 0 0 0 0 0 0 146 Other Non-Cash Operating Expense, net 123 (128) 486 (106) (119) 0 0 0 0 0 0 0 0 0 0 0 0 0 147 Changes in Operating Assets and Liabil