#1amazon Q3 2020 Financial Results Conference Call Slides#2This 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 customer spending, world events, the rate of growth of the Internet, online commerce, and cloud services, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products and services sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income or other taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of claims, litigation, government investigations, and other proceedings, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains, and develops commercial agreements, proposed and completed 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, additional or unforeseen effects from the COVID-19 pandemic and the global economic climate may give rise to or amplify 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, including non-GAAP financial measures, is available in the appendix to our presentation, our most recent earnings release and at our website at www.amazon.com/ir. 2#3MM $40,000 $20,000 $0 N $23,464 Free Cash Flow -- TTM Up 26% Y/Y (3) (1) (2) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Long-Term Goal - Optimize Free Cash Flows $29,501 Q3 2020 (1) Free cash flow is cash flow from operations reduced by "Purchases of property and equipment, net of proceeds from sales and incentives." See Appendix for a reconciliation of operating cash flow to free cash flow. Trailing twelve-month period. Operating cash flow grew 56% Y/Y. 3#4Free Cash Flow Less Principal Repayments of Finance Leases and Financing Obligations -- TTM (1) MM $30,000 $15,000 (1) (2) $0 $14,581 Q3 2019 Q4 2019 Up 26% Y/Y (2) $18,379 ili Q2 2020 Q1 2020 Long-Term Goal - Optimize Free Cash Flows Q3 2020 Free cash flow less principal repayments of finance leases and financing obligations is free cash flow reduced by "Principal repayments of finance leases" and "Principal repayments of financing obligations." See Appendix for a reconciliation of non-GAAP measures. Operating cash flow grew 56% Y/Y. 4#5Free Cash Flow Less Equipment Finance Leases and Principal Repayments of All Other Finance Leases and Financing Obligations -- TTM (1) MM $25,000 $12,500 (1) 2 $0 $10,453 Up 71% Y/Y (2) Q1 2020 Q3 2019 Q4 2019 Q2 2020 Long-Term Goal - Optimize Free Cash Flows $17,904 Q3 2020 Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations is free cash flow reduced by equipment acquired under finance leases, which is included in "Property and equipment acquired under finance leases," principal repayments of all other finance lease liabilities, which is included in "Principal repayments of finance leases," and "Principal repayments of financing obligations." See Appendix for a reconciliation of non-GAAP measures. Operating cash flow grew 56% Y/Y. 5#6MM 700 350 0 511 16 495 Shares Q3 2019 ||||| Q1 2020 Q4 2019 Common Shares Outstanding Q2 2020 Stock-Based Awards Outstanding 518 Efficiently Managing Dilution 16 502 Q3 2020 6#7MM $130,000 $65,000 $0 $69,981 Q3 2019 Net Sales 1 Q1 2020 Q4 2019 Q2 2020 $96,145 Q3 2020 Up 37% Y/Y, Up 36% F/X Adjusted (1) (1) Information regarding the effect of foreign exchange rates, versus the U.S. Dollar, on our net sales and operating income is provided to show reported period operating results had the foreign exchange rates remained the same as those in effect in the comparable prior year periods. 7#8MM $450,000 $225,000 $0 Net Sales - TTM $265,469 Up 31% Y/Y; Up 31% F/X Adjusted $347,946 III Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 $90,758 26% Net Sales - TTM (MM) $42,582 12% North America AWS $214,606 62% International 8#9MM $10,000 $5,000 $0 $3,157 Q3 2019 Operating Income Up 96% Y/Y; Up 92% F/X Adjusted Q4 2019 Q1 2020 Q2 2020 $6,194 Q3 2020 9#10MM $25,000 $12,500 $0 $14,448 Q3 2019 Operating Income - TTM Up 38% Y/Y; Up 36% F/X Adjusted mill Q1 2020 Q2 2020 Q4 2019 $19,905 Q3 2020 10#11MM $8,000 $4,000 $0 $2,134 Q3 2019 Net Income Q4 2019 Up 197% Y/Y Q1 2020 Q2 2020 $6,331 Q3 2020 11#12MM $90,000 $45,000 $42,638 $0 Segment Results - North America Net Sales Up 39% Y/Y $59,373 || Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 MM $3,500 $1,750 $0 $1,282 Operating Income TTM Net Sales $214.6B Up 76% Y/Y Q3 2019 Q4 2019 Q1 2020 Q2 2020 $2,252 Q3 2020 12#13MM $50,000 $25,000 $0 $18,348 Q3 2019 Segment Results - International Net Sales Up 37% Y/Y; Up 33% F/X Adjusted Q4 2019 Q1 2020 $25,171 Q2 2020 Q3 2020 MM $800 $0 $-800 Operating Income (Loss) $(386) Q3 2019 Q4 2019 TTM Net Sales $90.8B $407 Q1 2020 Q2 2020 Q3 2020 13#14MM $18,000 $9,000 $0 $8,995 Segment Results - AWS MM $6,000 Net Sales Up 29% Y/Y Q3 2019 Q4 2019 Q1 2020 $11,601 Q2 2020 Q3 2020 $3,000 $0 $2,261 Q3 2019 TTM Net Sales $42.6B Operating Income Up 56%Y/Y; Up 57% F/X Adjusted II Q4 2019 $3,535 Q1 2020 Q2 2020 Q3 2020 14#15amazon Appendix 15#16MM Free Cash Flow Reconciliation - TTM Operating Cash Flow Purchases of property and equipment, net of proceeds from sales and incentives Free Cash Flow Q3 2019 $35,332 (11,868) $23,464 Q4 2019 Q1 2020 Q2 2020 Q3 2020 $38,514 $39,732 $51,220 $55,292 (12,689) (15,395) (19,368) (25,791) $25,825 $24,337 $31,852 $29,501 16#17Free Cash Flow Less Principal Repayments of Finance Leases and Financing Obligations Reconciliation - TTM MM Operating Cash Flow Purchases of property and equipment, net of proceeds from sales and incentives Principal repayments of finance leases Principal repayments of financing obligations Free Cash Flow Less Principal Repayments of Finance Leases and Financing Obligations Q3 2019 Q4 2019 $35,332 $38,514 Q1 2020 Q2 2020 (129) $39,732 $51,220 (27) (11,868) (12,689) (15,395) (19,368) (25,791) (8,754) (9,628) (10,013) (10,504) (11,054) Q3 2020 (43) $55,292 (56) (68) $14,581 $16,170 $14,281 $21,292 $18,379 17#18Free Cash Flow Less Equipment Finance Leases and Principal Repayments of All Other Finance Leases and Financing Obligations Reconciliation - TTM Q3 2019 Q4 2019 Q1 2020 Q2 2020 MM Operating Cash Flow Purchases of property and equipment, net of proceeds from sales and incentives Equipment acquired under finance leases (1) Principal repayments of all other finance leases (2) Principal repayments of financing obligations Free Cash Flow Less Equipment Finance Leases and Principal Repayments of all other Finance Leases and Financing Obligations $35,332 (11,868) (12,580) (302) (129) $10,453 $38,514 $39,732 $51,220 (12,689) (15,395) (19,368) (12,916) (12,209) (11,952) (392) (407) (415) (27) (43) (56) $12,490 $11,678 $19,429 (1) For the twelve months ended September 30, 2020, this amount relates to equipment included in "Property and equipment acquired under finance leases" of $13,075 million. (2) For the twelve months ended September 30, 2020, this amount relates to property included in "Principal repayments of finance leases" of $11,054 million. Q3 2020 $55,292 (25,791) (11,116) (413) (68) $17,904 18