Q4 2013 Financial Results

Conference Call Slides

This presentation may contain forward-looking statements which are inherently
difficult to predict. Actual results could differ materially for a variety of reasons,
including fluctuations in foreign exchange rates, changes in global economic
conditions and consumer spending, world events, the rate of growth of the
Internet and online commerce, the amount that Amazon.com invests in new
business opportunities and the timing of those investments, the mix of products
sold to customers, the mix of net sales derived from products as compared with
services, the extent to which we owe income taxes, competition, management
of growth, potential fluctuations in operating results, international growth and
expansion, the outcomes of legal proceedings and claims, fulfillment and data
center optimization, risks of inventory management, seasonality, the degree to
which the Company enters into, maintains, and develops commercial
agreements, acquisitions and strategic transactions, payments risks, and risks of
fulfillment throughput and productivity. Other risks and uncertainties include,
among others, risks related to new products, services, and technologies, system
interruptions, government regulation and taxation, and fraud. In addition, the
current global economic climate amplifies many of these risks. More information
about factors that potentially could affect Amazon.coms financial results is
included in Amazon.coms filings with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K and subsequent filings.

Additional information relating to certain of our financial measures contained

herein is available in the appendix to our presentation, our most recent earnings
release and at our website at www.amazon.com/ir.

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MM
Free Cash Flow -- TTM (1)

$4,000

$2,031MM
$2,000

$395MM

$0
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

Long Term Goal Optimize Free Cash Flow

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

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 Shares
MM

600
470 476
16 17

300
454 459

0
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13
Common Shares Outstanding Stock-Based Awards Outstanding

Efficiently Managing Dilution

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 Return on Invested Capital -- TTM (1)

20%

13%

10%

4%

0%
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

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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MM
Net Sales
$40,000

$25,587MM
$21,268MM
$20,000

$0
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

Up 20% Y/Y (22% F/X Adjusted)

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 MM
Net Sales -- TTM
$100,000
WW Revenue Mix
$3,934MM
Up 22% Y/Y; 24%
F/X Adjusted 5%
$74,452MM
$48,802MM $21,716MM
$61,093MM 66% 29%

$50,000

$0 WW Media
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13
WW Electronics & Other General Merchandise
(EGM)
WW Other

66% of WW TTM Revenue from EGM, Up from 63% Y/Y

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 GAAP Operating Income (Loss)
MM

$700

$510MM

$405MM

$300

-$100
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

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 GAAP Operating Income TTM
MM

$1,000

$745MM
$676MM

$500

$0
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

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 Consolidated Segment Operating Income (1)

MM

$1,200

Up 29% Y/Y
$876MM

$678MM
$600

$0
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

(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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 Consolidated Segment Operating Income -- TTM (1)

MM

$3,000

Up 20% Y/Y
$1,993MM
$1,668MM
$1,500

$0
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

(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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 GAAP Net Income (Loss)
MM

$400

$300
$239MM

$200

$97MM
$100

$0

-$100
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

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 Segment Results North America
MM MM
$20,000 $1,000
Net Sales Operating Income (1)
$15,331MM
$725MM
Up 26% Y/Y Up 19% Y/Y
$12,175MM $608MM

$10,000 $500

$0 $0
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

TTM Net Sales $44.5B

(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 North
America segment.

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 Segment Results International
MM MM

$15,000 $225
Net Sales Operating Income (Loss)
$151MM
Up 13% Y/Y; up 15% $10,256MM $150
Up 116% Y/Y; up
$10,000 $9,093MM F/X adjusted 119% F/X adjusted

$70MM
$75

$5,000
$0

$0 -$75
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

TTM Net Sales $29.9B

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 Supplemental Revenue Highlights Media
MM MM
$5,000 $5,000
North America International
$3,611MM Up 3% Y/Y; Up $3,714MM
Up 21% Y/Y $3,513MM
6% F/X adjusted
$2,903MM

$2,500 $2,500

$0 $0
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

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

Digital Downloads

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 Supplemental Revenue Highlights
Electronics & Other General Merchandise (EGM)
MM MM
$14,000 $9,000
North America International
$10,648MM
Up 25% Y/Y Up 19% Y/Y; 21% F/X $6,478MM
adjusted
$8,503MM $5,431MM

$7,000 $4,500

$0 $0
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q4 '12 Q1 '13 Q2 '13 Q2 '13 Q4 '13

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

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 Supplemental Revenue Highlights Other
MM MM

$1,500 $80
North America International
$1,170MM $64MM
Up 25% Y/Y; 27%
Up 52% Y/Y F/X adjusted
$51MM

$769MM
$750 $40

$0 $0
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

Amazon Web Services (North America), Advertising Services,

and Co-branded Credit Cards

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Appendix

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 Free Cash Flow Reconciliation -- TTM

$MM Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

Operating Cash Flow $ 4,180 $ 4,245 $ 4,532 $ 4,977 $ 5,475

Purchases of Property and

Equipment, Including Internal-
Use Software and Website
Development (3,785) (4,068) (4,267) (4,589) (3,444)

Free Cash Flow $ 395 $ 177 $ __265 $ __388 $ 2,031

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 Consolidated Segment Operating Income
Reconciliation

$MM Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

Consolidated Segment Operating

Income $ 678 $ 441 $ 409 $ 267 $ 876

Stock-Based Compensation (235) (229) (298) (281) (326)

Other Operating Income

(Expense), Net (38) (31) (32) (11) (40)

GAAP Operating Income (Loss) $ 405 $ 181 $ 79 $ (25) $ 510

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 Consolidated Segment Operating Income
Reconciliation -- TTM

$MM Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

Consolidated Segment Operating

Income $ 1,668 $ 1,711 $ 1,760 $ 1,795 $ 1,993

Stock-Based Compensation (833) (901) (978) (1,043) (1,134)

Other Operating Income

(Expense), Net (159) (145) (145) (112) (114)

GAAP Operating Income $ 676 $ 665 $ 637 $ 640 $ 745

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