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Q3 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 the

Internet 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.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 underFinancial Documents.

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$0

$2,000

$4,000

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

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 areconciliation of Operating Cash Flow to Free Cash Flow.

Down 17% Y/Y

Long Term Goal Optimize Free Cash Flow

$1,829MM

$1,525MM

MM

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449 455

16 14

0

300

600

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

Common Shares Outstanding Stock-Based Awards Outstanding

Efficiently Managing Dilution Up 1% Y/Y

MMShares

469465

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0%

40%

80%

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

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

28%

17%

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$0

$10,000

$20,000

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

Net Sales

Up 44% Y/Y (39% F/X Adjusted)

$7,560MM

$10,876MM

MM

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$0

$30,000

$60,000

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

Net Sales -- TTM

58% of WW TTM Revenue from EGM, Up From 51% Y/Y

MM

7

Up 42% Y/Y;39% F/X Adjusted

$43,594MM

$30,776MM

$17,005MM39%

$25,191MM58%

$1,398MM3%

WW Revenue Mix

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$0

$350

$700

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

$268MM

$79MM

MM

GAAP Operating Income

8

Down71% Y/Y

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$0

$1,000

$2,000

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

Down24% Y/Y

$1,408MM

$1,076MM

MM

GAAP Operating Income TTM (1)

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$0

$400

$800

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

Down35% Y/Y

$401MM

$260MM

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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$0

$1,500

$3,000

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

Down9% Y/Y

$1,910MM

$1,734MM

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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$0

$300

$600

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

Down73% Y/Y

$231MM

$63MM

MM

GAAP Net Income

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$0

$5,000

$10,000

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

Net Sales

Segment Results North America

TTM Net Sales Over $24.0B

$4,126MM

$5,932MM

MM

(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.

Up 44%Y/Y

$0

$200

$400

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

Operating Income (1)

MM

Down 23%Y/Y

$186MM

$144MM

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$0

$5,000

$10,000

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

Net Sales

Segment Results International

TTM Net Sales Over $19.5B

$3,434MM

$4,944MM

MM

Up 44%Y/Y; 33%F/X Adjusted

$0

$250

$500

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

Operating Income

MM

$215MM

$116MM

14

Down 46% Y/Y;55% F/X Adjusted

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$0

$2,000

$4,000

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

North America

Supplemental Revenue Highlights Media

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

$1,591MM

$1,927MM

MM

Up 21% Y/Y

15

$0

$2,000

$4,000

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

International

$2,226MM

$1,759MM

Up 27% Y/Y; 17%F/X adjusted

S l l R Hi hli h

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$0

$3,000

$6,000

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

North America

Supplemental Revenue HighlightsElectronics & Other General Merchandise (EGM)

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

$2,326MM

$3,635MM

MM

$0

$3,000

$6,000

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

International

Up 63% Y/Y; 51% F/XAdjusted

MM

Up 56% Y/Y

$1,644MM

$2,681MM

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$0

$250

$500

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

North America

Supplemental Revenue Highlights Other

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

$209MM

$370MM

MM

$0

$30

$60

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

International

MM

Up 77% Y/Y

$31MM

$37MM

17

Up 21% Y/Y; 13%F/X Adjusted

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Appendix

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Free Cash Flow Reconciliation -- TTM

Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

Operating Cash Flow $ 2,617 $ 3,495 $ 3,033 $ 3,205 $ 3,114

Purchases of Fixed Assets,Including Internal-Use Softwareand Website Development (788) (979) (1,138) (1,374) (1,589)

Free Cash Flow $ 1,829 $ 2,516 $ 1,895 $ 1,831 $ 1,525

$MM

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Consolidated Segment Operating Income

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Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

Consolidated Segment OperatingIncome $ 401 $ 622 $ 465 $ 386 $ 260

Stock-Based Compensation (107) (119) (110) (144) (144)

Other Operating Income(Expense), Net (26) (29) (33) (41) (37)

GAAP Operating Income $ 268 $ 474 $ 322 $ 201 $ 79

Consolidated Segment Operating IncomeReconciliation

$MM

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Consolidated Segment Operating Income

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Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

Consolidated Segment OperatingIncome $ 1,910 $ 1,936 $ 1,894 $ 1,874 $ 1,734

Stock-Based Compensation (404) (424) (448) (481) (518)

Other Operating Income(Expense), Net (98) (106) (112) (128) (140)

GAAP Operating Income $ 1,408 $ 1,406 $ 1,334 $ 1,265 $ 1,076

Consolidated Segment Operating IncomeReconciliation -- TTM

$MM

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