CAN YAHOO! TURN ITSELF

AROUND?

Table of Contents Executive Summary Industry Overview

Company Considerations Share price performance Recent Corporate Actions Operating Performance Valuation

Trade Idea

Appendix

Executive Summary Yahoo! is a technology company focused on making the worlds daily habits more

inspiring and entertaining Yahoo! has suffered falling market share, stagnating revenue growth, and declining

user engagement for the past 3 years

Yahoo! has struggled in recent years due to under-indexing in the rapidly growing mobile market, and facing worsening cost conditions

The core business has collapsed in value since 2012, with the companies share price being supported by large stakes in Alibaba and Yahoo! Japan

If Yahoo! is to turn it self around, its M&A activity will likely form the basis for the necessary revival in the core business Tumblrs user base has grown 40% since acquisition with minutes of usage per user increasing. Acquisitions such as BrightRoll and Flurry will allow Yahoo to capitalize on the mobile market.

INDUSTRY OVERVIEW

Online Advertising Industry Overview 2014 2016, the online advertising industry is

forecasted to grow 29.9%

Yahoo! holds 2.52% of online ad revenues worldwide

Industry is moving towards mobile advertising, forecasted 193% growth 2014-2017.

Traditional desktop revenues have plateaued

U.S. Forecasts

Net Online Ad Revenue Share Worldwide (Total $140.15bn)

0

100

200

300

($00

0 m)

Desktop Adver5sing Mobile Adver5sing

Google Facebook Microso@ Yahoo IAC AOL TwiIer Others

0%

10%

20%

30%

40%

0

20

40

60

80

U.S. Online Ad Revenue ($bn)

% Total Media Spending

% Total Ad Spending

Global - desktop vs mobile

Mobile Advertising Market Overview The market is dominated by Google and

Facebook

Mobile minutes per user is growing faster than ever before

Within mobile, search and display advertising are forecasted to replace SMS/MMS adverts

Growth in rich media and video advertising is driving display revenues in mobile

U.S. Mobile Advertising Mix Forecasts

Mobile Advertising Leaders By 2014 Revenue

14.7

6.64

1.2 1.04 0

5

10

15

20

Google Facebook Yahoo TwiIer

Revenue ($bn)

0

50

100

2010 2011 2012E 2013E 2014E 2015E 2016E

Search Display SMS/MMS

60

80

100

120

140

Mar-12

Jun-12

Sep-12

Dec-12

Mar-13

Jun-13

Sep-13

Dec-13

Mar-14

Jun-14

Sep-14

Yahoo Sites US Mobile Minutes per Unique Visitor

Competitive Landscape

Facebook Twitter Google+

Google AdSense AOLs Ad.com Microsoft Media

Network

Google Sites Microsoft Sites IAC AOL

Google Bing Ask Baidu

Search Engines

Online Media

Companies

Social Media

Advertising Networks / Platforms

Yahoo!

COMPANY CONSIDERATIONS

Fundamental Risks of the Online Advertising Industry Revenues are heavily dependant on the spending patterns of

consumers Seasonal nature of e-commerce Macroeconomic conditions

There is a considerable need for high advertising budgets by B2B

Online advertisers contain some of the worlds most valuable and recognisable brands

Revenue streams highly geared towards advertising spending Approx. 80% of Yahoos revenues are driven by search and display revenues

Strategic Considerations The future of Yahoo! is a rapid transition to mobile advertising and technologies

Yahoo! is expecting to have 50% of its employees working on mobile technologies Gemini Native, Yahoo! Ad Manager Plus

Yahoo! operates in a highly competitive industry In Asian, Middle Eastern and Latin American markets, local monopolies, such as local ISPs, are

preventing international revenue growth

Yahoo!s performance has been weak outside the Americas EMEA revenues fell 25% and 18% in 2011-2012 and 2012-2013 respectively Asia Pacific revenues fell 23% in 2012-2013

Yahoo! requires constant innovation to remain competitive 50% of new hires had design, engineering, or product background

Yahoo! online properties are amongst the most popular in the world Second most viewed behind Google Tumblrs user base has grown 40% since being acquired by Yahoo! Flickr hosts over 10 billion photos

Financial Considerations Yahoo! has grown almost entirely inorganically since Marissa Mayer became CEO

in 2012 In 2013 Yahoo! was the most acquisitive company globally Yahoo! is planning to continue investing into acquisitions in the near-term

Yahoo! owns a 16.3% share in Alibaba, and a 35% share in Yahoo! Japan Alibaba share buybacks generated Yahoo! $4.3bn in 2012

Yahoo!s core business has collapsed in value since 2012 SOTP valuation shows a fall in core business value from $7.3bn to -$5bn 2012-2014

Yahoo! is coming out of a period of aggressive cost-cutting, having shut down eight offshore offices since 2012 2000 performance-related departures Exited 65 tertiary product lines Worked to consolidate teams and offices

However operating costs for Yahoo! are expected to increase

Yahoo!s Cost Time-Bombs

Microsoft Search

Agreement

Microsoft is the exclusive algorithmic and paid search advertising services provider on Yahoo! Properties

RPS Guarantee Microsoft guarantees a undisclosed RPS level, expiry could cost $100mn

12% of Yahoo! search revenues go to Microsoft

Third Party Content

Costs

Yahoo! provides content on its properties through licencing with third parties

Examples include News items, stock quotes, weather reports, video and maps

Content costs have risen y-o-y Failure to negotiate and maintain relationships with third

parties could lead to large cost increases or loss of content

Other Cost Drivers Yahoo! has significantly increased headcount and investment in high

quality human capital Reduction in outsourcing Investing heavily in new product development talent Investing in tax professionals

Yahoo! has increased marketing spend and has invested in new marketing initiatives Yahoo on the road campaign Fantasy football TV ads

Headline Financial Performance EMEA revenue has fallen sharply due

to falling demand from the Microsoft Search Agreement

Asia Pacific revenues have fallen due to the close of the Korean business

Declining sales led to the falling EBIT 11-13

Net Revenue by Product ($bn)

EBIT Growth & Margins (3YRs) Gross Revenue by Geography

0 1 2 3 4 5 6

2011 2012 2013

Americas EMEA Asia Pacific

0

1

2

3

4

5

2013 2014 2015

Display Search Other

800 566 590 16.1

11.4 12.6

0

5

10

15

20

0

500

1000

2011 2012 2013

EBIT ($mn) Margin (%)

Financial Forecasts (14-18E) EBIT & Margin (14-18)

Profit & Margin (14-18) Sales & Growth (14-18)

The company is forecasted to grow its sales by 27.4% y-o-y between 2014-2018

Expansions in costs will lead to falling EBIT. Near-term costs out strip revenues.

Net Income margin is set to fall from 13.1% to 9.1% due to increased costs of operation

621

528 528 537 550

13.1 10.6 10.1 9.6 9.1

0

5

10

15

450

500

550

600

650

2014E 2015E 2016E 2017E 2018E

EBIT ($mn) Margin (%)

4.741 4.978 5.227 5.593 6.041

1.3

5 5

7 8

0

2

4

6

8

10

0

2

4

6

8

2014E 2015E 2016E 2017E 2018E

Sales ($bn) Growth (%) 472

404 403 411 422

13.1 10.6 10.1 9.6 9.1

0

5

10

15

350

400

450

500

2014E 2015E 2016E 2017E 2018E

Profit ($mn) Margin (%)

Sales Growth Vs Competitors Google

-21.2

0

-6.1

-25

-20

-15

-10

-5

0 2011 2012 2013

Sales Growth (%)

Microsoft

29.3 32.4

19.2

0

10

20

30

40

2011 2012 2012

Sales Growth (%)

Yahoo!

5.4 5.6

11.5

0

5

10

15

2011 2012 2012

Sales Growth (%)

Over the past 3 years Yahoo! has experienced negative sales growth

This contrasts heavily with its competitors who have grown their sales rapidly

Share Price Performance vs Competitors (Last 12 Months)

40

60

80

100

120

140

160

17-Jan 18-Feb 17-Mar 17-Apr 16-May 17-Jun 17-Jul 18-Aug 17-Sep 17-Oct 17-Nov 17-Dec

Yahoo Microso@ Google Facebook TwiIer AOL

Acquisition History Since 2012, Yahoo! has acquired 36 businesses Yahoo!s strategy has been to acquire firms that bring in talent and augment capabilities This allows Yahoo to access new markets and user bases, bring new talent into the firm, and acquire the innovation

needed to develop its existing products

M&A Notable Transactions

Announced Date Target Descrip2on Deal Value

November 11 2014 BrightRoll Unified programma5c video adver5sing pla_orm

$640mn

July 21 2014 Flurry Mobile analy5cs $200mn

January 21 2014 SPARQ (Now Sequent)

Mobile Marke5ng

January 17 2014 Aviate Mobile App

May 17 2013 Tumblr Blogging $1.1bn

Are Yahoo!s Acquisitions Creating Value? Acquired firms have grown considerably

Tumblr has grown 40% since acquisition, minutes per unique user on the rise 215.6 million blogs, 98.9 billion posts

Access to technologies which Yahoo have previously invested to a lesser degree than competitors Programmatic buying Mobile

2013 consolidation, Xobni shut down etc. Focus on the core business

Failure to impact revenues Even if Tumblrs revenue had grown twice as fast as traffic it would have only added

single digit millions to Yahoo!s revenue

Potential M&A Target Summary

Headquarters

New York

Founded Date 1983

IPO Date March 19 1992

No. Employees 5600

Geographic Mix Global: Offices in India, Germany, UK, Ireland, Japan

and Israel

Sales Channels Online

Product Overview Digital distribution of content, products, and services,

advertisers which it offers to consumers, publishers and advertisers

2011A 2012A 2013A

Revenue ($mn)

2202.10 2191.70 2319.90

Growth (%) (10) NM 6

Gross Profit ($mn)

617.70 604.50 613.70

EBITDA ($mn)

298.70 1378.80 364.30

Net Income ($mn)

13.10 1048.80 92.40

Financial Performance

Potential gains from AOL acquisition AOL has invested heavily in emerging advertising trends

Yahoo by comparison has struggled to keep up August: AOL said its advertising revenues had risen 20% in the recent quarter, in part

due to programmatic ads

Could allow for ~$20bn in tax savings from divestitures in Yahoo! Japan and Alibaba

Combined company could cut costs by reducing overlap Capture considerable synergies AOL holds strong assets and brands

AdTech and programmatic buying Huffington Post, TechCrunch, Engadget, 5Min Media, Ad.com, Adap.TV

Remove a competitor from the industry Strong management team

Tim Armstrong

Is Yahoo! a Takeout Target? (i)

The Case For Apple, Facebook, Microsoft Or Google Buying Yahoo Now - Forbes (Eric Jackson, 21/7/2014)

Alibaba and SoftBank are set to become global internet companies in the

long-term Acquiring Yahoo! Would mean developing a close partnership with these firms This could be attractive for a firm looking to push into China/Japan

Alibaba is looking to push into the U.S. Enemy of my enemy allow an acquirer to expand into e-commerce and compete

with Amazon?

An acquirer could effectively get Yahoo!s core business for free If the acquirer sold back stakes in Alibaba and Yahoo! Japan they could acquire the

core business for next to nothing

Is Yahoo! a Takeout Target? (ii)

Is dilutive M&A acting as a poison pill? Brand has become splintered, 76 different mobile apps Difficulties bringing together and consolidating all existing firms Are unprofitable acquisitions turning potential buyers away?

Yahoo! is continuing to buyback shares Mgmt. has alluded to devoting $3bn of the sale of Alibaba stake to share buyback sales Is Yahoo seeking to defend itself from a possible take over?

Starboard Value 26th September, activist investor Starboard Value contacts Marissa

Mayer and the Yahoo! board claiming to have taken a significant stake in Yahoo!

Starboard claims there are numerous opportunities to unlock value for shareholders in Yahoo! Starboard believe there is room for $200-500mn of cost reductions at core Yahoo! Starboard are pushing for a merger with AOL

TRADE IDEA

Valuation Commentary Based on forecasts, a five-year discounted cash flow model yields a per

share valuation of $64.02 Of this only $16 is attributable to the Yahoo! core business

Yahoo currently trades for $50.88 on the NASDAQ an implied 20% market discount compared to fundamental DCF value

Using trading multiples we see Yahoo! has a 143% premium to the sector average LTM P/E multiple

Yahoo! has a 346% premium on the sector average LTM EV/EBITDA multiple

Discounted Cash Flow Analysis Financial Year (Dec. Year end) 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18 Terminal Period Total Turnover 4.680 4.741 4.978 5.227 5.593 6.041 growth (%) 1% 5% 5% 7% 8% EBIT 0.590 0.621 0.528 0.528 0.537 0.550 margin (%) 13% 13% 11% 10% 10% 9% Depreciation & Amortisation 0.629 0.619 0.538 0.792 0.958 1.071 Tax @ 24.2% -0.143 -0.150 -0.128 -0.128 -0.130 -0.133 Capital Expenditure 0.338 0.341 0.358 0.376 0.403 0.435 Capex/Sales (%) -7% -7% -7% -7% -7% -7% Change in Working Capital 0.000 -0.013 -0.062 -0.018 -0.026 -0.032 Working Capital / Sales (%) 0% 0% 1% 0% 0% 1% Free Cash Flow 0.738 0.735 0.518 0.798 0.936 1.021 1.021 Discount Factor 0.902 0.813 0.734 0.662 0.597 0.597 Terminal Value 22.195 Present Value 0.663 0.421 0.586 0.619 0.609 13.245 Enterprise Value (b) 16 Net Debt as at (Dec 2013) -0.967005 Market Capitalisation ($b) 17 No. Shares (b) 1.071 Share Price ($) 16.0

16.3% Share in Alibaba 44.45499 35% Share in Yahoo Japan 6.986

Total Business Equity Value 69 Implied Share Price 64.019

Relative Valuation - Trading Microsoft Google Facebook Twitter AOL Mean Median

EV/Sales 4.5x 5.6x 27.0x 34.3x 1.4x 14.6x 5.6x

EV/EBITDA 12.0x 18.8x 55.8x -43.5x 17.3x 12.1x 17.3x

Share Price/EPS 18.5x 25.7x 74.5x -16.9x 36.5x 27.7x 25.7x

LTM LTM LTM EV/Sales EV/EBITDA P/E

Yahoo 13.5x 51.6x 145.1x

Sector Average 14.6x 12.1x 27.7x Sector Median 5.6x 17.3x 25.7x

Implied Valuation - Share price ($) Sector Average 64.7 14.7 35.6 Sector Median 25.5 20.6 33.1

APPENDIX

Income Statement Hist. Hist. Hist Proj. Proj. Proj. Proj. Proj.

31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18

Net Sales 4.984 4.987 4.680 4.741 4.978 5.227 5.593 6.041

COGS 1.590 1.621 1.349 1.365 1.533 1.610 1.723 1.860

SG&A 2.6 2.800 2.7 2.755 2.917 3.089 3.333 3.630

EBIT 0.800 0.566 0.590 0.621 0.528 0.528 0.537 0.550

Depreciation & Amortization 0.6 0.6 0.6 0.555 0.475 0.730 0.897 1.011

0.064 0.063 0.062 0.061 0.060

EBITDA 1.4 1.2 1.2 1.240 1.066 1.320 1.495 1.621

Other income 0.0272 4.648 0.043 0.000 0.000 0.000 0.000 0.000

Interest Income 0.0 0.0 0.0 0.025 0.027 0.026 0.027 0.030

Interest Expense 0.0 0.0 0.0 0.022 0.022 0.022 0.022 0.022

Profit before taxes 0.828 5.214 0.633 0.623 0.533 0.532 0.542 0.557

Taxes 0.242 1.940 0.153 0.151 0.129 0.129 0.131 0.135

Profit after tax 0.586 3.274 0.480 0.472 0.404 0.403 0.411 0.422

Earnings in equity interests 0.477 0.676 0.897

Net income 1.063 3.951 1.377 0.472 0.404 0.403 0.411 0.422

Shareholder information

Diluted weighted average shares outstanding 1.282 1.203 1.071 1.1 1.1 1.1 1.1 1.1

Diluted earnings per share $0.83 $3.28 $1.29 $0.44 $0.38 $0.38 $0.38 $0.39

Dividends per share $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Dividends 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Balance Sheet Hist. Hist. Hist. Proj. Proj. Proj. Proj. Proj. 31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18

Cash and cash equivalents 2.668 2.078 2.823 2.580 2.620 2.818 3.114 Marketable securities 1.516 1.330 1.330 1.330 1.330 1.330 1.330 Accounts receivable 1.008 1.0 0.991 1.040 1.092 1.169 1.262 Prepaid expenses 0.460 0.638 0.646 0.725 0.762 0.815 0.880

Total current assets 0.0 5.7 5.0 5.790 5.676 5.805 6.132 6.587

LT Marketable securities 1.839 1.590 1.590 1.590 1.590 1.590 1.590 Alibaba shares 0.816 0.000 0.000 0.000 0.000 0.000 0.000 Net PP&E 1.686 1.5 1.275 1.958 2.404 2.710 2.934 Goodwill 3.8 4.7 4.680 4.680 4.680 4.680 4.680 Other intangibles 0.2 0.4 0.354 0.292 0.230 0.169 0.109 Other assets 0.3 0.2 0.180 0.189 0.199 0.213 0.230 Investments in equity interests 2.8 3.4 3.426 3.426 3.426 3.426 3.426

Total assets 0.0 17.10 16.8 17.294 17.810 18.332 18.919 19.554

Short term debt 0.0 0.0 0.000 0.000 0.000 0.000 0.000 Accounts payable and accruals 0.185 0.138 0.137 0.144 0.152 0.162 0.175 Accrued expenses 0.808 0.908 0.910 0.956 1.004 1.074 1.160 Deferred Revenues 0.297 0.294 0.299 0.314 0.329 0.352 0.381

Total current liabilities 0.0 1.3 1.3 1.347 1.414 1.485 1.588 1.716

Total long-term debt 0.000 1.111 1.111 1.111 1.111 1.111 1.111 Other long-term liabilities 0.800 0.965 0.977 1.026 1.077 1.152 1.244 Long term deferred revenues 0.408 0.259 0.259 0.259 0.259 0.259 0.259

Total liabilities 0.0 2.5 3.7 3.693 3.809 3.931 4.111 4.330

Common stock 10.136 9.008 9.008 9.008 9.008 9.008 9.008 Retained earnings 5.792 4.267 4.738 5.138 5.538 5.945 6.361 Treasury stock (1.323) (0.145) (0.145) (0.145) (0.145) (0.145) (0.145)

Total equity 0.0 14.6 13.1 13.601 14.001 14.401 14.808 15.225 Total Liab.& Equity 0.0 17.103253 16.8 17.294 17.810 18.332 18.919 19.554

Balance? OK OK OK OK OK OK OK OK

Cashflow Statement Yahoo Hist. Hist. Hist. Proj. Proj. Proj. Proj. Proj. Cash Flow Statement 31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18

Net Income 1.4 0.5 0.4 0.4 0.4 0.4 Depreciation 0.6 0.6 0.5 0.7 0.9 1.0 Amortisation 0.0 0.1 0.1 0.1 0.1 0.1 Change in OWC 0.0 (0.0) (0.1) (0.0) (0.0) (0.0) Change in other assets 0.1 (0.0) (0.0) (0.0) (0.0) (0.0) Change in other liabilities 0.2 0.0 0.0 0.1 0.1 0.1 Cash from Operating Activities 2.3 1.1 0.9 1.2 1.4 1.5

Capex 0.3 0.3 0.4 0.4 0.4 0.4 Acquisitions / Disposals 0.0 0.8 0.8 0.8 0.8 Cash from Investing Activities -0.3 -0.3 -1.2 -1.2 -1.2 -1.2

Change in Common Stock -1.1 0.0 0.0 0.0 0.0 0.0 Change in Treasury Stock 1.2 0.0 0.0 0.0 0.0 0.0 Dividends 0.0 0.0 0.0 0.0 0.0 0.0 Long Term Debt Repayment 1.1 0.0 0.0 0.0 0.0 0.0

Cash from Financing Activities 1.2 0.0 0.0 0.0 0.0 0.0

Net Cash Flow 3.1 0.7 (0.2) 0.0 0.2 0.3

Beginning Cash (1.0) 2.1 2.8 2.6 2.6 2.8 Ending Cash 2.1 2.8 2.6 2.6 2.8 3.1

Revenue forecasts Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8

Sales 4.98 4.99 4.68 4.74 4.98 5.23 5.59 6.04 Americas 3.30 3.46 3.48 3.56 3.73 3.95 4.22 4.50 EMEA 0.63 0.47 0.39 0.38 0.37 0.34 0.34 0.36 Asia Pacific 1.05 1.05 0.81 0.81 0.87 0.94 1.03 1.18

% Contribution Americas 66.3 69.4 74.39 75.00 75.00 75.50 75.50 74.50 EMEA 12.6 9.5 8.23 8.00 7.50 6.50 6.00 6.00 Asia Pacific 21.1 21.1 17.39 17.00 17.50 18.00 18.50 19.50

% Growth Americas 4.8 0.6 2.1 5.0 5.7 7.0 6.6 EMEA (25.0) (18.4) (1.5) (1.6) (9.0) (1.2) 8.0 Asia Pacific 0.1 (22.7) (0.9) 8.1 8.0 10.0 13.8

2013 2014 2015 2016 2017 2018 Gross Revenue 4.68 4.74 4.98 5.23 5.59 6.04 GAAP Display Revenue 1.95 1.78 1.87 1.91 1.99 2.09 GAAP Search Revenue 1.74 1.80 1.92 2.02 2.21 2.45 Other Revenue 0.99 0.83 0.84 1.30 1.39 1.50

% Contribution GAAP Display Revenue 41.7 37.6 37.6 36.6 35.6 34.6 GAAP Search Revenue 37.2 37.9 38.6 38.6 39.6 40.6 Other Revenue 21.1 17.5 16.8 24.8 24.8 24.8

% Growth GAAP Display Revenue (8.5) 5.0 2.2 4.1 5.0 GAAP Search Revenue 3.1 7.0 5.0 9.8 10.7 Other Revenue (16.0) 1.0 54.6 7.0 8.0

Financial Assumptions Hist. Hist. Hist. Proj. Proj. Proj. Proj. Proj.

31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18

Sales growth % 0.0% -6.1% 1.3% 5.0% 5.0% 7.0% 8.0% COGS as % of sales 31.9% 32.5% 28.8% 28.8% 30.8% 30.8% 30.8% 30.8% Annual depr. as % of previous PPE 37.3% 37.3% 37.3% 37.3% 37.3% 37.3% SG&A as % of sales 52.0% 56.1% 58.6% 58.1% 58.6% 59.1% 59.6% 60.1% Amortization of other intangibles amount 0.0 0.04 0.04 0.06 0.06 0.06 0.06 0.06 Non-recurring items amount 0.0 4.6 0.0 0.0 0.0 0.0 0.0 0.0 Effective tax rate 24.2% 24.2% 24.2% 24.2% 24.2%

Diluted weighted average shares outstanding (m) 1.203 1.071 1.1 1.1 1.1 1.1 1.1 Dividend per share growth rate 0.0% 0.0% 0.0% 0.0% 0.0%

Marketable securities 1.330 1.330 1.330 1.330 1.330 Accounts receivable as % of sales 0.0% 20.2% 20.9% 20.9% 20.9% 20.9% 20.9% 20.9% Prepaid expenses as % of sales 0.0% 28.4% 47.3% 47.3% 47.3% 47.3% 47.3% 47.3%

LT Marketable securities 1.590 1.590 1.590 1.590 1.590 Alibaba shares 0.0 0.0 0.0 0.0 0.0 Capital expenditures % of sales 11.9% 10.1% 7.2% 7.2% 7.2% 7.2% 7.2% 7.2% Acquisitions / Disposals ($bn) 0.8 0.8 0.8 0.8 Other assets % of sales 0.0% 5.8% 3.8% 3.8% 3.8% 3.8% 3.8% 3.8% Investments in equity interests 2.8 3.4 3.426 3.426 3.426 3.426 3.426

Accounts payable and accruals % of COGS 3.7% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% Accrued expenses as % sales 17.1% 18.2% 19.2% 19.2% 19.2% 19.2% 19.2% Deferred Revenues as % of sales 6.0% 6.3% 6.3% 6.3% 6.3% 6.3% 6.3% Other long-term liabilities % of sales 0.0% 16.0% 20.6% 20.6% 20.6% 20.6% 20.6% 20.6%

Common stock amount 0.0 10.1 9.0 9.0 9.0 9.0 9.0 9.0 Share repurchases $ amount (show as positive) 1.3 (1.2) 0.0 0.0 0.0 0.0 0.0

Loans due for repayment 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other long-term debt repayment 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Short term debt 0.00% 0.00% 0.00% 0.00% 0.00% Loans due for repayment 0.00% 0.00% 0.00% 0.00% 0.00% Other long-term debt repayment 0.00% 0.00% 0.00% 0.00% 0.00% Cash 0.00% 0.00% 0.00% 0.00% 0.00%

Sources: Yahoo 2013 Annual Report, Investor Relations eMarketer Forbes Google Finance

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