2011 Financial Presentation

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2 2011 Financial Results

Conference Call Slides


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This presentation may contain forward-looking statements which are inherentlydifficult to predict. Actual results could differ materially for a variety of reasons,including fluctuations in foreign exchange rates, changes in global economicconditions and consumer spending, world events, the rate of growth of theInternet and online commerce, the amount that Amazon.com invests in new

,sold to customers, the mix of net sales derived from products as compared withservices, the extent to which we owe income taxes, competition, management

of growth, potential fluctuations in operating results, international growth and, ,

optimization, risks of inventory management, seasonality, the degree to whichthe Company enters into, maintains and develops commercial agreements,acquisitions and strategic transactions, and risks of fulfillment throughput and

new products, services and technologies, system interruptions, governmentregulation and taxation, payments, and fraud. In addition, the current globaleconomic climate amplifies many of these risks. More information about factorsthat otentiall could affect Amazon.coms financial results is included in

Amazon.coms filings with the Securities and Exchange Commission, including itsmost recent Annual Report on Form 10-K and subsequent filings.

Additional information relating to certain of our financial measures containedherein is available in the appendix to our presentation, our most recent earningsrelease and at our website at www.amazon.com/ir under Financial Documents.

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Free Cash Flow -- TTM (1)

$4,000

Down 8% Y/Y

$2,000$1,986MM

$1,831MM

$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

Long Term Goal Optimize Free Cash Flow

(1) Free Cash Flow, a non-GAAP financial measure, is GAAP Operating Cash Flow Less Purchases of Fixed Assets. See appendix for areconciliation of Operating Cash Flow to Free Cash Flow.

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Shares

600

17 15

468465

300

448 454

0' ' ' ' '

CommonSharesOutstanding StockBasedAwardsOutstanding

y u

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Return on Invested Capital -- TTM (1)

80%

40% 34%

21%

0%

2 '10 3 '10 4 '10 1 '11 2 '11

Efficient Capital Structure

(1) ROIC = TTM Free Cash Flow divided by average Total Assets minus Current Liabilities, excluding current portion of our Long Term Debt,over 5 quarter ends.

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Net Sales

$20,000

$10,000$9,913MM

,

$0

2 '10 3 '10 4 '10 1 '11 2 '11

Up 51% Y/Y (44% F/X Adjusted)

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Net Sales -- TTM

$50,000

$1,231MM

WW Revenue Mix

p ;39% F/X Adjusted

$40,278MM

$22,845MM57%

$25,000

,

$16,202MM40%

$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

57% of WW TTM Revenue from EGM, Up From 49% Y/Y

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AAP r in In m

MM

$700

Down

25% Y/Y

$350 $270MM

$201MM

$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

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AAP r in In m TM 1

MM

$2,000Down

9% Y/Y

$1,391MM$1,265MM

$1,000

$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

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n li m n r in In m 1

MM

$800

Down 5%

Y/Y

$400

$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

(1) Consolidated Segment Operating Income (CSOI), a non-GAAP financial measure, excludes Stock-Based Compensation and Other Operating Income (Expense).See appendix for a reconciliation of CSOI to GAAP Operating Income.

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n li m n r in In m -- TM 1

MM

$3,000

Up 1% Y/Y

$1,859MM $1,874MM

$1,500

$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

(1) Consolidated Segment Operating Income (CSOI), a non-GAAP financial measure, excludes Stock-Based Compensation and Other Operating Income (Expense).See appendix for a reconciliation of CSOI to GAAP Operating Income.

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AAP N In m

MM

$600

Down 8%

$300 $207MM $191MM

$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

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Segment Results North America

$10,000Net Sales

MM

$400

MM

Up 51%

Y/Y

Up 7% Y/Y

$5,000

$3,590MM

$5,406MM

$200$200MM

$214MM

$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 $0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

TTM Net Sales Over $22.2B

(1) A majority of our costs for "Technology and Content" are incurred in the United States and most of these costs are allocated to our NorthAmerica segment.

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Segment Results International

$8,000

MM

$500O eratin Income

MM

Up 51%Y/Y; 36%

F/X Adjusted

Down 16% Y/Y;

34% F/X Adjusted

$4,000

$2,976MM

$4,507MM

$250$206MM

$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

TTM Net Sales Over $18.0B

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Supplemental Revenue Highlights Media

$4,000

North America

MM

$4,000

Up 20% Y/YUp 34% Y/Y; 20%

F/X adjusted

$2,000

$1,324MM$1,585MM

$2,000$2,075MM

$1,550MM

$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

Books, Music, Movies, Video Games and Consoles, Software andDigital Downloads

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Supplemental Revenue Highlights

$6,000North America

MM

$6,000International

MM

Up 71% Y/Y; 53% F/XAdjusted

Up 67% Y/Y

$3,000

$3,496MM

$3,000

$2,398MM

,

$1,399MM

$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

Computers & Office, Electronics, Home & Garden, Grocery, Health & Beauty, Toys, Kids & Baby,Apparel, Shoes & Jewelry, Sports & Outdoors, Tools, Auto & Industrial and Digital Devices

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Supplemental Revenue Highlights Other

$500

North America

MM

$60International

MM

$325MM

Up 85% Y/Y

Up 25% Y/Y; 13%F/X Adjusted

$250

$176MM

$30 $27MM

$34MM

$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11$0

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

Amazon Web Services, Marketing and Promotional Activities, Other Seller Sites, &Co-branded Credit Cards

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A endix

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Free Cash Flow Reconciliation -- TTM

Q2 10 Q3 10 Q4 10 Q1 11 Q2 11$MM

Operating Cash Flow $ 2,561 $ 2,617 $ 3,495 $ 3,033 $ 3,205

Purchases of Fixed Assets,Including Internal-Use Softwarean We site Deve opment 575 788 979 1,138 1,374

Free Cash Flow 1,986 1,829 2,516 1,895 1,831

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Consolidated Segment Operating Income

Q2 10 Q3 10 Q4 10 Q1 11 Q2 11$MM

Consolidated Segment OperatingIncome $ 406 $ 401 $ 622 $ 465 $ 386

-

Other Operating Income,

GAAP Operating Income $ 270 $ 268 $ 474 $ 322 $ 201

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Consolidated Segment Operating Income--

Q2 10 Q3 10 Q4 10 Q1 11 Q2 11$MM

Consolidated Segment OperatingIncome $ 1,859 $ 1,910 $ 1,936 $ 1,894 $ 1,874

-

Other Operating IncomeEx ense , Net 82 98 106 112 128

GAAP Operating Income $ 1,391 $ 1,408 $ 1,406 $ 1,334 $ 1,265

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2011 Financial Presentation

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