What will the internal rate of return (IRR) be if the exit multiple is 10.0x and the purchase price per share is $1,700 in the blue case (given that the terminal value is calculated using the exit multiple method)?
A- 15.4%
B- 13.1%
C- 13.8%
D- 13.5%
B C D E F G - J L M N 0 Q 1 all CET 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E 2023E 2024 2024E 2025E 2026E 2027E 2028E 1/1/13 12/31/13 365 1/1/14 12/31/14 365 1/1/15 12/31/15 365 1/1/16 12/31/16 366 1/1/17 12/31/17 365 1/1/18 12/31/18 365 1/1/19 12/31/19 365 1/1/20 12/31/20 366 1/1/21 12/31/21 365 1/1/22 12/31/22 365 1/1/23 12/31/23 365 1/1/24 12/31/24 1/1/25 12/31/25 365 1/1/26 12/31/26 365 1/1/27 12/31/27 365 1/1/28 12/31/28 366 366 na na na na na na na 19.0% na 42.9% 43.1% 55.1% 72.5% 27.1% na na na 19.5% 18.5% na 38.7% 52.0% 42.9% 57.7% 30.8% na na 20.2% A Corporate Finance Institute. All rights reserved. 2 Historical Analysis 3 (in millions, except per share data) 4 5 Historical Analysis 6 Time Periods 7 BOP 8 EOP 9 Days 10 11 Segmented Revenue Growth 12 Online Stores 13 Physical 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 73% 12% 4% 9% 2% 0% 71% 12% 5% 10% 2% 0% 99.8% 67% 13% 5% 12% 2% 0% 97.9% 65% 13% 5% 12% 2% 0% 63% 14% 6% 13% 2% 0% 99.0% 96.9% 97.7% 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% Total Operating Expenses 99.0% 99.8% 97.9% 96.9% 97.7% Stock-Based Compensation (SBC) (% of SG&A) Tax Rate Interest Income Rate (Opening Balance) Interest Expense Rate (Average Debt) 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 52 22 Balance Sheet Inventory Days Accounts Receivable Days Change in Goodwill Change in Other Assets Change in Marketable Securities 48 23 664 49.8% -24.5% 440 16.6% 37.0% 48 22 25 40.0% 69.7% 52 27 9,566 88.4% 57.4% 105 Accounts Payable Days Accrued Expenses Unearned Revenue 102 9.0% 1.6% 96 11.0% 2.0% 104 9.7% 2.9% 10.1% 113 10.2% 2.9% 3.5% 4.6% Cash Capex % of revenue PP&E Acquired under Capital Leases Depreciation % of PPE (Opening Balance) Repayment of Capital Leases (Opening Balance) 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 Change in Long-Term Debt Change in Common Shares Change in Treasury Stock Change in Additional Paid-in Capital 1,562 2,259 3,792 4,203 Dividends Proceeds from Property and Equipment Incentives Acquisitions, net of Cash Acquired, and Other Sales and Maturities of Marketable Securities 1.1% -0.6% 1.1% 3.2% 1.5% 1.5% 1.3% 1.9% 76,863 91,431 16,086 4,467 7,880 1,710 107,006 22,993 6,394 12,219 2,950 135,987 108,354 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 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 74,452 88,988 60 Change in Basic 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 60,903 13,549 74,452 70,080 18,908 88,988 79,268 27,738 107,006 94,665 41,322 135,987 118,573 59,293 177,866 118,805 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 59,061 177,866 118,805 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 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 177,866 54,181 8,585 3,133 6,565 1,129 114 73,707 745 38 (141) (136) (239) 506 (161) (71) 0 0 0 0 0 0 0 177,866 o 62,752 10,766 4,332 9,275 1,552 133 88,810 178 39 (210) (118) (289) (111) (167) 37 0 0 0 0 0 0 0 177,866 0 0 0 71,651 13,410 5,254 12,540 1,747 171 104,773 2,233 50 (459) (256) (665) 1,568 (950) (22) 0 0 0 0 0 0 0 177,866 0 88,265 17,619 7,233 16,085 2,432 167 131,801 4,186 100 (484) 90 (294) 3,892 (1,425) (96) 111,934 25,249 10,069 22,620 3,674 214 173,760 4,106 202 (848) 346 (300) 3,806 (769) (4) 0 0 0 177,866 0 0 0 177,866 0 0 0 177,866 0 0 177,866 0 0 0 177,866 0 0 0 0 177,866 0 0 177,866 0 0 0 0 0 0 0 0 0 0 0 0 0 0 177,866 0 177,866 0 0 177,866 0 0 177,866 0 0 177,866 0 0 177,866 0 177,866 177,866 0 0 177,866 0 0 177,866 0 177,866 0 0 0 0 0 (241) (0.52) (0.52) 596 1.28 1.25 2,371 5.00 4.90 3,033 6.32 6.15 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 462 462 467 477 474 484 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 14,557 525,448 10,464 2,859 0 96 Net Income 274 97 Basic Earnings per Share 0.60 98 Diluted Earnings per Share 0.59 99 Weighted-Average Shares used in Computation of Earnings per Share: 100 Basic 457 101 Diluted 465 102 103 104 Balance Sheet 105 106 Current Assets: 107 Cash and Cash Equivalents 8,658 108 Marketable Securities 3,789 109 Inventories 7,411 110 Accounts Receivable, net and other 4,767 111 Total Current Assets 24,625 112 Property And Equipment, net 10,949 113 Goodwill 2,655 114 Other Assets 1,930 115 Total Assets 40,159 116 117 LIABILITIES AND STOCKHOLDERS' EQUITY 118 Current Liabilities: 119 Accounts Payable 15,133 120 Accrued Expenses and Other 6,688 121 Unearned Revenue 1,159 122 Total Current Liabilities 22,980 123 Long-Term Debt 3,191 124 Other Long-Term Liabilities 4,242 125 Total Liabilities 30,413 126 Stockholders' Equity: 127 Common Shares - 477 and 484 5 128 Treasury Stock, at Cost (1,837) 129 Additional Paid-In Capital 9,573 130 Accumulated Other Comprehensive Loss (185) 131 Retained Earnings 2,190 132 Total Stockholders' Equity 9.746 8,299 5,612 31,327 16,967 3,319 2,892 54,505 15,890 3,918 10,243 6,423 36,474 21,838 3,759 3,373 65,444 19,334 6,647 11,461 8,339 45,781 29,114 3,784 4,723 83,402 20,522 10,464 16,047 13,164 60,197 48,866 13,350 8,897 131,310 169,716 10,464 0 0 180, 180 48,866 13,350 8,897 251,293 347,582 10,464 0 0 358,046 48,866 13,350 8,897 429,159 0 535,912 48,866 13,350 8,897 607,025 703,314 10,464 0 0 713,778 48,866 13,350 8,897 784,891 881,180 1,059,046 1,236,912 1,414,778 1,592,644 1,770,510 1,948,376 10,464 10,464 10,464 10,464 10,464 10,464 10,464 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 891,644 1,069,5101,247,376 1,425,242 1,603,108 1,780,974 1,958,840 48,866 48,866 48,866 48,866 48,866 48,866 48,866 13,350 13,350 13,350 13,350 13,350 13,350 13,350 8,897 8,897 8,897 8,897 8,897 8,897 8,897 962,757 1,140,623 1,318,489 1,496,355 1,674,221 1,852,087 2,029,953 0 0 0 0 0 0 0 16,459 9,807 1,823 28,089 8,265 7,410 43,764 20,397 10,384 3,118 33,899 8,235 9,926 25,309 13,739 4,768 43,816 7,694 12,607 64,117 34,616 18,170 5,097 57,883 24,743 20,975 103,601 0 0 0 0 24,743 20,975 45,718 0 0 0 0 24,743 20,975 45,718 0 0 0 0 0 24,743 20,975 45,718 0 0 0 24,743 20,975 45,718 0 0 0 0 24,743 20,975 45,718 0 0 24,743 20,975 45,718 0 0 0 0 24,743 20,975 45,718 24,743 20,975 45,718 0 0 0 0 24,743 20,975 45,718 0 0 0 24,743 20,975 45,718 0 0 0 0 24,743 20,975 45,718 52,060 5 5 5 (1,837) 11,135 (511) 1,949 10,741 5 (1,837) 13,394 (723) 2,545 13,384 (1,837) 17,186 (985) 4,916 19,285 5 (1,837) 21,389 (484) 8,636 27,709 5 (1,837) 21,389 (484) 186,502 205,575 5 (1,837) 21,389 (484) 364,368 383,441 5 (1,837) 21,389 (484) 542,234 561,307 5 (1,837) 21,389 (484) 720,100 739,173 5 (1,837) 21,389 (484) 897,966 917,039 5 5 (1,837) (1,837) 21,389 21,389 (484) (484) 1,075,832 1,253,698 1,094,905 1,272,771 5 (1,837) 21,389 (484) 1,431,564 1,450,637 5 (1,837) 21,389 (484) 1,609,430 1,628,503 (1,837) 21,389 (484) 1,787.296 1,806,369 5 (1,837) 21,389 (484) 1,965, 162 1,984,235 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 (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 0 0 0 0 0 4,746 1,497 (128) 6,281 2,119 486 8,116 2,975 (106) 11,478 4,215 (119) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 16,047 o 0 0 0 0 0 0 0 0 0 (1,193) (1,039) 1,759 706 741 6,848 0 (2,187) (1,755) 4,294 913 1,292 12,039 (1,426) (3,367) 5,030 1,724 1,955 17,272 (3,583) (4,786) 7,175 283 738 18,434 0 0 0 0 0 0 0 0 0 177,866 13,164 (34,616) (18,170) (5,097) 149,194 0 0 0 0 177,866 0 0 0 0 0 o 0 0 0 0 0 177,866 0 0 0 0 177,866 0 0 0 0 0 177,866 0 0 0 177,866 0 177,866 0 177,866 0 177,866 177,866 137 Cash Flow Statement 138 139 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 8,084 140 141 OPERATING ACTIVITIES: 142 Net Income 274 143 Adjustments to Reconcile Net Income to Net Cash from Operating Activities: 144 Depreciation of Property and Equipment 3,253 145 Stock-Based Compensation 1,134 146 Other Non-Cash Operating Expense, net 123 147 Changes in Operating Assets and Liabilities: 148 Inventories (1,410) 149 Accounts Receivable, net and other (846) 150 Accounts Payable 1,888 151 Accrued Expenses and Other 736 152 Unearned Revenue 401 153 Net Cash Provided by (used in) Operating Activities 5,553 154 155 INVESTING ACTIVITIES: 156 Purchases of Property and Equipment, Including Internal-Use : (3,444) 157 Proceeds from Property and Equipment Incentives 158 Acquisitions, net of cash acquired, and other (312) 159 Sales (Purchases) of Marketable Securities, net (520) 160 Net Cash Provided by (used in) Investing Activities (4,276) 161 162 FINANCING ACTIVITIES: 163 Proceeds (Repayments) from Long-Term Debt and Other 163 164 Principal Repayments of Capital Lease Obligations (775) 165 Principal Repayments of Finance Lease Obligations (5) 166 Proceeds from Issuing Equity (Common, Treasury, Paid-in, et 0 167 Payment of Dividends 0 168 Net Cash Provided by (used in) Financing Activities (617) 169 170 Foreign Currency Effect on Cash and Cash Equivalents (86) 171 Net Increase (Decrease) in Cash and Cash Equivalents 574 172 173 CASH AND CASH EQUIVALENTS, END OF PERIOD 8,658 (4,893) 0 0 0 0 0 0 0 0 0 0 0 (5,387) 798 (795) (1,066) (6,450) (979) 807 (5,065) (7,804) 1,067 (116) (3,023) (9,876) (11,955) 1,897 (13,972) (3,789) (27,819) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (1,299) (2,462) (121) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5,846 (1,285) (135) 0 0 4,426 267 (3,860) (147) 0 0 (3,740) 14,859 (4,799) (200) 0 0 9,860 0 0 0 0 0 0 (3,882) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (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 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 1,948,376 48.866 48.866 48,866 48,866 0 0 0 0 0 10,949 (4,746) 4,893 4,751 1,120 16,967 16,967 (6,281) 4,589 5,353 1,210 21,838 48,866 0 0 0 0 21,838 (8,116) 6,737 6,593 2,062 29,114 29.114 (11,478) 10,058 12,643 8,529 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 0 48,866 0 0 0 0 48,866 o 0 0 0 0 0 0 48.866 0 0 0 48,866 10,949 48,866 48,866 48,866 48.866 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 24,743 24,743 176 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 PP&E on Balance Sheet 187 188 Debt Schedule 189 Opening Balance 190 Plus: Additions (repayments), net 191 Closing Balance 192 193 Long-Term Debt on Balance Sheet 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 Annual Report Closing Figure 3,191 5,074 8,265 8,265 (30) 8,235 8,235 (541) 7,694 7,694 17,049 24,743 0 24,743 0 24,743 24,743 0 24,743 24,743 0 24,743 24,743 0 24,743 0 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 24,743 24,743 3,191 8,265 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 24,743 141 0 0 210 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% 19,304 1,301 (780) 2,452 2,973 19,304 0 2,973 (1,420) 4,751 6,304 6,304 (2,583) 5,353 9,074 9,074 (4,007) 6,593 11,660 11,660 (4,999) 12,643 19,304 0 0 19,304 0 0 19,304 19,304 0 0 19,304 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 19,304 0 0 19,304 19,304 0 0 19,304 0 19,304 19,304 19,304 2,973 6,304 9,074 11,660 19,304 208 Valuation 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 Flow 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 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 Capex 238 Consensu: III CEL 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 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% 28.1% 43.8% 42.6% 58.3% 20.1% 10.9% 26.2% 32.8% 32.0% 46.7% 18.9% 10.6% 24.8% 22.4% 22.6% 43.1% 17.6% 11.1% 21.4% 21.2% 20.3% 28.9% 15.6% 12.7% 15.4% 12.7% 16.8% 15.3% 13.2% 12.9% 14.3% 9.2% 16.7% 11.2% 10.1% 11.8% 11.9% 6.2% 12.7% 11.3% 8.6% 12.7% 6.9% 6.1% 10.4% 9.9% 7.3% 10.2% 6.8% 4.9% 8.1% 6.3% 1 Corporate Finance Institute. All rights reserved. 2 Historical Analysis 3 (in millions, except per share data) 128 BULL CASE 729 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 141 Marketing 442 Technology and Content 143 General and Administrative 744 Other Operating Expense, net 145 Total Operating Expenses 146 747 Stock-Based Compensation (SBC) (% of SG&A) 148 Tax Rate 749 Interest Income Rate (Opening Balance) 150 Interest Expense Rate (Average Debt) 751 152 Balance Sheet 753 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 Capex % of revenue 164 PP&E Acquired under Capital Leases 165 Depreciation % of PPE (Opening Balance) 166 Repayment of Capital Leases (Opening Balance) 57.2% 16.3% 4.8% 11.3% 3.9% 0.2% 93.7% 58.2% 15.2% 4.9% 11.4% 2.9% 0.2% 92.8% 57.7% 15.0% 4.9% 11.5% 2.0% 0.2% 91.4% 57.7% 15.0% 4.9% 11.5% 1.9% 0.2% 91.4% 57.2% 15.1% 4.9% 11.5% 1.9% 0.2% 91.0% 57.2% 15.2% 4.9% 11.2% 1.9% 0.2% 90.7% 57.7% 15.3% 4.9% 11.2% 1.9% 0.2% 91.3% 57.7% 15.3% 4.9% 11.2% 1.8% 0.2% 91.2% 56.3% 15.3% 5.2% 11.2% 1.8% 0.2% 90.0% 56.3% 15.3% 5.1% 11.0% 1.8% 0.2% 89.7% 57.0% 15.3% 5.1% 10.7% 1.8% 0.2% 90.2% 6.8% 20.0% 1.0% 7.0% 6.8% 20.0% 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% 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% 1.0% 7.0% 6.8% 22.5% 1.0% 7.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 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% 7.2% 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% 7.2% 2.9% 40.3% 37.5% 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% 7.2% 5.0% 40.3% 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% 7.2% 2.9% 40.3% 37.5% 37.5% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 163 Cash Capex % of revenue 164 PP&E Acquired under Capital Leases 165 Depreciation % of PPE (Opening Balance) 166 Repayment of Capital Leases (Opening Balance) 167 168 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 177 178 Change in Basic Shares Outstanding 179 Change in Diluted Shares Outstanding 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1.2% 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% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% B C D E F G - J L M N 0 Q 1 all CET 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E 2023E 2024 2024E 2025E 2026E 2027E 2028E 1/1/13 12/31/13 365 1/1/14 12/31/14 365 1/1/15 12/31/15 365 1/1/16 12/31/16 366 1/1/17 12/31/17 365 1/1/18 12/31/18 365 1/1/19 12/31/19 365 1/1/20 12/31/20 366 1/1/21 12/31/21 365 1/1/22 12/31/22 365 1/1/23 12/31/23 365 1/1/24 12/31/24 1/1/25 12/31/25 365 1/1/26 12/31/26 365 1/1/27 12/31/27 365 1/1/28 12/31/28 366 366 na na na na na na na 19.0% na 42.9% 43.1% 55.1% 72.5% 27.1% na na na 19.5% 18.5% na 38.7% 52.0% 42.9% 57.7% 30.8% na na 20.2% A Corporate Finance Institute. All rights reserved. 2 Historical Analysis 3 (in millions, except per share data) 4 5 Historical Analysis 6 Time Periods 7 BOP 8 EOP 9 Days 10 11 Segmented Revenue Growth 12 Online Stores 13 Physical 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 73% 12% 4% 9% 2% 0% 71% 12% 5% 10% 2% 0% 99.8% 67% 13% 5% 12% 2% 0% 97.9% 65% 13% 5% 12% 2% 0% 63% 14% 6% 13% 2% 0% 99.0% 96.9% 97.7% 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% Total Operating Expenses 99.0% 99.8% 97.9% 96.9% 97.7% Stock-Based Compensation (SBC) (% of SG&A) Tax Rate Interest Income Rate (Opening Balance) Interest Expense Rate (Average Debt) 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 52 22 Balance Sheet Inventory Days Accounts Receivable Days Change in Goodwill Change in Other Assets Change in Marketable Securities 48 23 664 49.8% -24.5% 440 16.6% 37.0% 48 22 25 40.0% 69.7% 52 27 9,566 88.4% 57.4% 105 Accounts Payable Days Accrued Expenses Unearned Revenue 102 9.0% 1.6% 96 11.0% 2.0% 104 9.7% 2.9% 10.1% 113 10.2% 2.9% 3.5% 4.6% Cash Capex % of revenue PP&E Acquired under Capital Leases Depreciation % of PPE (Opening Balance) Repayment of Capital Leases (Opening Balance) 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 Change in Long-Term Debt Change in Common Shares Change in Treasury Stock Change in Additional Paid-in Capital 1,562 2,259 3,792 4,203 Dividends Proceeds from Property and Equipment Incentives Acquisitions, net of Cash Acquired, and Other Sales and Maturities of Marketable Securities 1.1% -0.6% 1.1% 3.2% 1.5% 1.5% 1.3% 1.9% 76,863 91,431 16,086 4,467 7,880 1,710 107,006 22,993 6,394 12,219 2,950 135,987 108,354 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 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 74,452 88,988 60 Change in Basic 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 60,903 13,549 74,452 70,080 18,908 88,988 79,268 27,738 107,006 94,665 41,322 135,987 118,573 59,293 177,866 118,805 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 59,061 177,866 118,805 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 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 177,866 54,181 8,585 3,133 6,565 1,129 114 73,707 745 38 (141) (136) (239) 506 (161) (71) 0 0 0 0 0 0 0 177,866 o 62,752 10,766 4,332 9,275 1,552 133 88,810 178 39 (210) (118) (289) (111) (167) 37 0 0 0 0 0 0 0 177,866 0 0 0 71,651 13,410 5,254 12,540 1,747 171 104,773 2,233 50 (459) (256) (665) 1,568 (950) (22) 0 0 0 0 0 0 0 177,866 0 88,265 17,619 7,233 16,085 2,432 167 131,801 4,186 100 (484) 90 (294) 3,892 (1,425) (96) 111,934 25,249 10,069 22,620 3,674 214 173,760 4,106 202 (848) 346 (300) 3,806 (769) (4) 0 0 0 177,866 0 0 0 177,866 0 0 0 177,866 0 0 177,866 0 0 0 177,866 0 0 0 0 177,866 0 0 177,866 0 0 0 0 0 0 0 0 0 0 0 0 0 0 177,866 0 177,866 0 0 177,866 0 0 177,866 0 0 177,866 0 0 177,866 0 177,866 177,866 0 0 177,866 0 0 177,866 0 177,866 0 0 0 0 0 (241) (0.52) (0.52) 596 1.28 1.25 2,371 5.00 4.90 3,033 6.32 6.15 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 177,866 370.55 360.78 462 462 467 477 474 484 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 480 493 14,557 525,448 10,464 2,859 0 96 Net Income 274 97 Basic Earnings per Share 0.60 98 Diluted Earnings per Share 0.59 99 Weighted-Average Shares used in Computation of Earnings per Share: 100 Basic 457 101 Diluted 465 102 103 104 Balance Sheet 105 106 Current Assets: 107 Cash and Cash Equivalents 8,658 108 Marketable Securities 3,789 109 Inventories 7,411 110 Accounts Receivable, net and other 4,767 111 Total Current Assets 24,625 112 Property And Equipment, net 10,949 113 Goodwill 2,655 114 Other Assets 1,930 115 Total Assets 40,159 116 117 LIABILITIES AND STOCKHOLDERS' EQUITY 118 Current Liabilities: 119 Accounts Payable 15,133 120 Accrued Expenses and Other 6,688 121 Unearned Revenue 1,159 122 Total Current Liabilities 22,980 123 Long-Term Debt 3,191 124 Other Long-Term Liabilities 4,242 125 Total Liabilities 30,413 126 Stockholders' Equity: 127 Common Shares - 477 and 484 5 128 Treasury Stock, at Cost (1,837) 129 Additional Paid-In Capital 9,573 130 Accumulated Other Comprehensive Loss (185) 131 Retained Earnings 2,190 132 Total Stockholders' Equity 9.746 8,299 5,612 31,327 16,967 3,319 2,892 54,505 15,890 3,918 10,243 6,423 36,474 21,838 3,759 3,373 65,444 19,334 6,647 11,461 8,339 45,781 29,114 3,784 4,723 83,402 20,522 10,464 16,047 13,164 60,197 48,866 13,350 8,897 131,310 169,716 10,464 0 0 180, 180 48,866 13,350 8,897 251,293 347,582 10,464 0 0 358,046 48,866 13,350 8,897 429,159 0 535,912 48,866 13,350 8,897 607,025 703,314 10,464 0 0 713,778 48,866 13,350 8,897 784,891 881,180 1,059,046 1,236,912 1,414,778 1,592,644 1,770,510 1,948,376 10,464 10,464 10,464 10,464 10,464 10,464 10,464 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 891,644 1,069,5101,247,376 1,425,242 1,603,108 1,780,974 1,958,840 48,866 48,866 48,866 48,866 48,866 48,866 48,866 13,350 13,350 13,350 13,350 13,350 13,350 13,350 8,897 8,897 8,897 8,897 8,897 8,897 8,897 962,757 1,140,623 1,318,489 1,496,355 1,674,221 1,852,087 2,029,953 0 0 0 0 0 0 0 16,459 9,807 1,823 28,089 8,265 7,410 43,764 20,397 10,384 3,118 33,899 8,235 9,926 25,309 13,739 4,768 43,816 7,694 12,607 64,117 34,616 18,170 5,097 57,883 24,743 20,975 103,601 0 0 0 0 24,743 20,975 45,718 0 0 0 0 24,743 20,975 45,718 0 0 0 0 0 24,743 20,975 45,718 0 0 0 24,743 20,975 45,718 0 0 0 0 24,743 20,975 45,718 0 0 24,743 20,975 45,718 0 0 0 0 24,743 20,975 45,718 24,743 20,975 45,718 0 0 0 0 24,743 20,975 45,718 0 0 0 24,743 20,975 45,718 0 0 0 0 24,743 20,975 45,718 52,060 5 5 5 (1,837) 11,135 (511) 1,949 10,741 5 (1,837) 13,394 (723) 2,545 13,384 (1,837) 17,186 (985) 4,916 19,285 5 (1,837) 21,389 (484) 8,636 27,709 5 (1,837) 21,389 (484) 186,502 205,575 5 (1,837) 21,389 (484) 364,368 383,441 5 (1,837) 21,389 (484) 542,234 561,307 5 (1,837) 21,389 (484) 720,100 739,173 5 (1,837) 21,389 (484) 897,966 917,039 5 5 (1,837) (1,837) 21,389 21,389 (484) (484) 1,075,832 1,253,698 1,094,905 1,272,771 5 (1,837) 21,389 (484) 1,431,564 1,450,637 5 (1,837) 21,389 (484) 1,609,430 1,628,503 (1,837) 21,389 (484) 1,787.296 1,806,369 5 (1,837) 21,389 (484) 1,965, 162 1,984,235 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 (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 0 0 0 0 0 4,746 1,497 (128) 6,281 2,119 486 8,116 2,975 (106) 11,478 4,215 (119) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 16,047 o 0 0 0 0 0 0 0 0 0 (1,193) (1,039) 1,759 706 741 6,848 0 (2,187) (1,755) 4,294 913 1,292 12,039 (1,426) (3,367) 5,030 1,724 1,955 17,272 (3,583) (4,786) 7,175 283 738 18,434 0 0 0 0 0 0 0 0 0 177,866 13,164 (34,616) (18,170) (5,097) 149,194 0 0 0 0 177,866 0 0 0 0 0 o 0 0 0 0 0 177,866 0 0 0 0 177,866 0 0 0 0 0 177,866 0 0 0 177,866 0 177,866 0 177,866 0 177,866 177,866 137 Cash Flow Statement 138 139 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 8,084 140 141 OPERATING ACTIVITIES: 142 Net Income 274 143 Adjustments to Reconcile Net Income to Net Cash from Operating Activities: 144 Depreciation of Property and Equipment 3,253 145 Stock-Based Compensation 1,134 146 Other Non-Cash Operating Expense, net 123 147 Changes in Operating Assets and Liabilities: 148 Inventories (1,410) 149 Accounts Receivable, net and other (846) 150 Accounts Payable 1,888 151 Accrued Expenses and Other 736 152 Unearned Revenue 401 153 Net Cash Provided by (used in) Operating Activities 5,553 154 155 INVESTING ACTIVITIES: 156 Purchases of Property and Equipment, Including Internal-Use : (3,444) 157 Proceeds from Property and Equipment Incentives 158 Acquisitions, net of cash acquired, and other (312) 159 Sales (Purchases) of Marketable Securities, net (520) 160 Net Cash Provided by (used in) Investing Activities (4,276) 161 162 FINANCING ACTIVITIES: 163 Proceeds (Repayments) from Long-Term Debt and Other 163 164 Principal Repayments of Capital Lease Obligations (775) 165 Principal Repayments of Finance Lease Obligations (5) 166 Proceeds from Issuing Equity (Common, Treasury, Paid-in, et 0 167 Payment of Dividends 0 168 Net Cash Provided by (used in) Financing Activities (617) 169 170 Foreign Currency Effect on Cash and Cash Equivalents (86) 171 Net Increase (Decrease) in Cash and Cash Equivalents 574 172 173 CASH AND CASH EQUIVALENTS, END OF PERIOD 8,658 (4,893) 0 0 0 0 0 0 0 0 0 0 0 (5,387) 798 (795) (1,066) (6,450) (979) 807 (5,065) (7,804) 1,067 (116) (3,023) (9,876) (11,955) 1,897 (13,972) (3,789) (27,819) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (1,299) (2,462) (121) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5,846 (1,285) (135) 0 0 4,426 267 (3,860) (147) 0 0 (3,740) 14,859 (4,799) (200) 0 0 9,860 0 0 0 0 0 0 (3,882) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (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 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 1,948,376 48.866 48.866 48,866 48,866 0 0 0 0 0 10,949 (4,746) 4,893 4,751 1,120 16,967 16,967 (6,281) 4,589 5,353 1,210 21,838 48,866 0 0 0 0 21,838 (8,116) 6,737 6,593 2,062 29,114 29.114 (11,478) 10,058 12,643 8,529 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 0 48,866 0 0 0 0 48,866 o 0 0 0 0 0 0 48.866 0 0 0 48,866 10,949 48,866 48,866 48,866 48.866 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 24,743 24,743 176 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 PP&E on Balance Sheet 187 188 Debt Schedule 189 Opening Balance 190 Plus: Additions (repayments), net 191 Closing Balance 192 193 Long-Term Debt on Balance Sheet 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 Annual Report Closing Figure 3,191 5,074 8,265 8,265 (30) 8,235 8,235 (541) 7,694 7,694 17,049 24,743 0 24,743 0 24,743 24,743 0 24,743 24,743 0 24,743 24,743 0 24,743 0 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 24,743 24,743 3,191 8,265 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 24,743 141 0 0 210 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% 19,304 1,301 (780) 2,452 2,973 19,304 0 2,973 (1,420) 4,751 6,304 6,304 (2,583) 5,353 9,074 9,074 (4,007) 6,593 11,660 11,660 (4,999) 12,643 19,304 0 0 19,304 0 0 19,304 19,304 0 0 19,304 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 19,304 0 0 19,304 19,304 0 0 19,304 0 19,304 19,304 19,304 2,973 6,304 9,074 11,660 19,304 208 Valuation 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 Flow 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 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 Capex 238 Consensu: III CEL 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 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% 28.1% 43.8% 42.6% 58.3% 20.1% 10.9% 26.2% 32.8% 32.0% 46.7% 18.9% 10.6% 24.8% 22.4% 22.6% 43.1% 17.6% 11.1% 21.4% 21.2% 20.3% 28.9% 15.6% 12.7% 15.4% 12.7% 16.8% 15.3% 13.2% 12.9% 14.3% 9.2% 16.7% 11.2% 10.1% 11.8% 11.9% 6.2% 12.7% 11.3% 8.6% 12.7% 6.9% 6.1% 10.4% 9.9% 7.3% 10.2% 6.8% 4.9% 8.1% 6.3% 1 Corporate Finance Institute. All rights reserved. 2 Historical Analysis 3 (in millions, except per share data) 128 BULL CASE 729 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 141 Marketing 442 Technology and Content 143 General and Administrative 744 Other Operating Expense, net 145 Total Operating Expenses 146 747 Stock-Based Compensation (SBC) (% of SG&A) 148 Tax Rate 749 Interest Income Rate (Opening Balance) 150 Interest Expense Rate (Average Debt) 751 152 Balance Sheet 753 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 Capex % of revenue 164 PP&E Acquired under Capital Leases 165 Depreciation % of PPE (Opening Balance) 166 Repayment of Capital Leases (Opening Balance) 57.2% 16.3% 4.8% 11.3% 3.9% 0.2% 93.7% 58.2% 15.2% 4.9% 11.4% 2.9% 0.2% 92.8% 57.7% 15.0% 4.9% 11.5% 2.0% 0.2% 91.4% 57.7% 15.0% 4.9% 11.5% 1.9% 0.2% 91.4% 57.2% 15.1% 4.9% 11.5% 1.9% 0.2% 91.0% 57.2% 15.2% 4.9% 11.2% 1.9% 0.2% 90.7% 57.7% 15.3% 4.9% 11.2% 1.9% 0.2% 91.3% 57.7% 15.3% 4.9% 11.2% 1.8% 0.2% 91.2% 56.3% 15.3% 5.2% 11.2% 1.8% 0.2% 90.0% 56.3% 15.3% 5.1% 11.0% 1.8% 0.2% 89.7% 57.0% 15.3% 5.1% 10.7% 1.8% 0.2% 90.2% 6.8% 20.0% 1.0% 7.0% 6.8% 20.0% 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% 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% 1.0% 7.0% 6.8% 22.5% 1.0% 7.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 48 22 0 0.0% 0.0% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 2.5% 115 9.1% 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% 7.2% 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% 7.2% 2.9% 40.3% 37.5% 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% 7.2% 5.0% 40.3% 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% 7.2% 2.9% 40.3% 37.5% 37.5% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 163 Cash Capex % of revenue 164 PP&E Acquired under Capital Leases 165 Depreciation % of PPE (Opening Balance) 166 Repayment of Capital Leases (Opening Balance) 167 168 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 177 178 Change in Basic Shares Outstanding 179 Change in Diluted Shares Outstanding 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1.2% 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% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
