- Q4 2009 financial results showed strong growth with net sales up 42% year-over-year to $9.5 billion and GAAP operating income up 75% to $476 million. - International sales grew 49% year-over-year with over 45% of worldwide revenue coming from outside North America. - Free cash flow increased 114% year-over-year to $2.9 billion driven by strong operating cash flow.

1. Q4 2009 Financial Results
Conference Call Slides

2. 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 center
optimization, risks of inventory management, seasonality, the degree to which
the Company enters into, maintains and develops commercial agreements,
acquisitions and strategic transactions, 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, payments, and fraud. In addition, the current global
economic climate amplifies many of these risks. More information about factors
that potentially could affect Amazon.com’s financial results is included in
Amazon.com’s 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 under ‘Financial Documents’.
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3. MM
Free Cash Flow -- TTM (1)
Up 114%
Y/Y $2,920MM
$1,364MM
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 a
reconciliation of Operating Cash Flow to Free Cash Flow.
3

4. Shares (1)
MM
446 461
Efficiently Managing Dilution – Up 3% Y/Y
(1) Q4 2009 includes the issuance of 9 million shares of common stock to acquire Zappos.com, Inc.
4

5. Return on Invested Capital -- TTM (1)
66%
41%
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.
5

6. MM
Net Sales
$9,519MM
$6,704MM
Up 42% Y/Y (37% F/X Adjusted)
6

7. MM
Net Sales -- TTM
Up 28% Y/Y; 29% $24,509MM
F/X Adjusted
$19,166MM
45% of WW TTM Revenue from EGM, Up From 39% Y/Y
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8. GAAP Operating Income (1)
MM
Up 75% Y/Y
$476MM
$272MM
(1) Q2 2009 includes the impact of our settlement with Toysrus.com LLC for $51 million.
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9. GAAP Operating Income – TTM (1)
MM
Up 34% Y/Y
$1,129MM
$842MM
(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.
9

10. Consolidated Segment Operating Income (1)
MM
Up 66% Y/Y
$597MM
$359MM
(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.
10

11. Consolidated Segment Operating Income -- TTM (1)
MM
Up 44% Y/Y
$1,572MM
$1,093MM
(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.
11

12. GAAP Net Income (1)
MM
Up 71% Y/Y
$384MM
$225MM
(1) Q2 2009 includes the impact of our settlement with Toysrus.com LLC for $51 million.
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13. Segment Results – North America
MM MM
Up 36% Up 113%
Y/Y Y/Y
$4,956MM
$278MM
$3,631MM
$130MM
TTM Net Sales Over $12.8B
(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.
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14. Segment Results – International
MM MM
Up 49%Y/Y; 37% Up 39% Y/Y; 25%
F/X Adjusted F/X Adjusted
$319MM
$4,563MM
$229MM
$3,073MM
TTM Net Sales Over $11.6B
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15. Supplemental Revenue Highlights – Media
MM MM
Up 37% Y/Y; 26%
Up 20% Y/Y
F/X Adjusted
$2,580MM
$2,099MM
$1,751MM $1,889MM
Books, Music, Movies, Video Games and Consoles, Software and
Digital Downloads
15

16. Supplemental Revenue Highlights –
Electronics & Other General Merchandise (EGM)
MM MM
Up 68% Y/Y; 56%
Up 54% Y/Y F/X Adjusted
$2,662MM $1,947MM
$1,733MM
$1,156MM
Computers & Office, Electronics, Home & Garden, Grocery, Health & Beauty, Toys, Kids &
Baby, Apparel, Shoes & Jewelry, Sports & Outdoors, Tools, Auto & Industrial
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17. Supplemental Revenue Highlights – Other
MM MM
Up 27% Y/Y; 18%
Up 33% Y/Y F/X Adjusted
$36MM
$195MM
$28MM
$147MM
Marketing and Promotional Activities, Amazon Web Services, Amazon Enterprise
Solutions, & Co-branded Credit Cards
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18. Appendix
18

19. Free Cash Flow Reconciliation -- TTM
$MM 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
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20. Consolidated Segment Operating Income
Reconciliation
$MM 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
20

21. Consolidated Segment Operating Income
Reconciliation -- TTM
$MM 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
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