Q4 2009 Financial Results Conference Call Slides

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 newbusiness opportunities and the timing of those investments, the mix of productssold to customers, the mix of net sales derived from products as compared withservices, the extent to which we owe income taxes, competition, managementof growth, potential fluctuations in operating results, international growth andexpansion, the outcomes of legal proceedings and claims, fulfillment centeroptimization, 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 andproductivity. Other risks and uncertainties include, among others, risks related tonew 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 potentially could affect Amazon.com’s financial results is included inAmazon.com’s 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)

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

Up 114% Y/Y

Long Term Goal – Optimize Free Cash Flow

$1,364MM

$2,920MM

MM

3

Efficiently Managing Dilution – Up 3% Y/Y

MMShares (1)

461446

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(1) Q4 2009 includes the issuance of 9 million shares of common stock to acquire Zappos.com, Inc.

Return on Invested Capital -- TTM (1)

(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.

Efficient Capital Structure

41%

66%

5

Net Sales

Up 42% Y/Y (37% F/X Adjusted)

$6,704MM

$9,519MM

MM

6

Net Sales -- TTM

45% of WW TTM Revenue from EGM, Up From 39% Y/Y

MM

7

Up 28% Y/Y; 29% F/X Adjusted

$24,509MM

$19,166MM

Up 75% Y/Y

$272MM

$476MM

MM

GAAP Operating Income (1)

8

(1) Q2 2009 includes the impact of our settlement with Toysrus.com LLC for $51 million.

Up 34% Y/Y

$842MM

$1,129MM

MM

GAAP Operating Income – TTM (1)

9

(1) Q2 2008 includes a $53 million non-cash gain recognized on the sale of our European DVD rental assets. Q2 2009 includes the impact of our settlement with Toysrus.com LLC for $51 million.

Up 66% Y/Y

$359MM

$597MM

MM

Consolidated Segment Operating Income (1)

(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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Up 44% Y/Y

$1,093MM

$1,572MM

MM

Consolidated Segment Operating Income -- TTM (1)

(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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Up 71% Y/Y

$225MM

$384MM

MM

GAAP Net Income (1)

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(1) Q2 2009 includes the impact of our settlement with Toysrus.com LLC for $51 million.

Segment Results – North America

TTM Net Sales Over $12.8B

$3,631MM

$4,956MM

MM

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

Up 36% Y/Y

MM

Up 113% Y/Y

$130MM

$278MM

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Segment Results – International

TTM Net Sales Over $11.6B

$3,073MM

$4,563MM

MM

Up 49%Y/Y; 37% F/X Adjusted

MM

$229MM

$319MM

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Up 39% Y/Y; 25% F/X Adjusted

Supplemental Revenue Highlights – Media

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

$1,751MM

$2,099MM

MM

Up 37% Y/Y; 26% F/X Adjusted

MM

Up 20% Y/Y

$1,889MM

$2,580MM

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Supplemental Revenue Highlights –Electronics & Other General Merchandise (EGM)

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

$1,733MM

$2,662MM

MM

Up 68% Y/Y; 56% F/X Adjusted

MM

Up 54% Y/Y

$1,156MM

$1,947MM

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Supplemental Revenue Highlights – Other

Marketing and Promotional Activities, Amazon Web Services, Amazon Enterprise Solutions, & Co-branded Credit Cards

$147MM

$195MM

MM MM

Up 33% Y/Y

$28MM

$36MM

17

Up 27% Y/Y; 18% F/X Adjusted

Appendix

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Free Cash Flow Reconciliation -- TTM

Q4 ‘08 Q1 ‘09 Q2 ‘09 Q3 ‘09 Q4 ‘09

Operating Cash Flow $ 1,697 $ 1,757 $ 1,878 $ 2,253 $ 3,293

Purchases of Fixed Assets, Including Internal-Use Software and Website Development (333) (326) (336) (337) (373)

Free Cash Flow $ 1,364 $ 1,431 $ 1,542 $ 1,916 $ 2,920

$MM

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Q4 ‘08 Q1 ‘09 Q2 ‘09 Q3 ‘09 Q4 ‘09

Consolidated Segment Operating Income $ 359 $ 322 $ 304 $ 350 $ 597

Stock-Based Compensation (79) (67) (85) (90) (100)

Other Operating Income (Expense), Net (8) (11) (60) (9) (21)

GAAP Operating Income $ 272 $ 244 $ 159 $ 251 $ 476

Consolidated Segment Operating Income Reconciliation

$MM

20

Q4 ‘08 Q1 ‘09 Q2 ‘09 Q3 ‘09 Q4 ‘09

Consolidated Segment Operating Income $ 1,093 $ 1,156 $ 1,216 $ 1,335 $ 1,572

Stock-Based Compensation (275) (288) (300) (320) (341)

Other Operating Income (Expense), Net 24 19 (87) (90) (102)

GAAP Operating Income $ 842 $ 887 $ 829 $ 925 $ 1,129

Consolidated Segment Operating Income Reconciliation -- TTM

$MM

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