Pershing Square Activist Presentation Deck

Netflix Investment Highlights Subscription-based business model with enormous future growth potential Leading beneficiary of decade-long secular growth in streaming video and decline in linear TV 222 million NFLX subscribers represent 1/4th of ~800 to 900 million addressable households Industry-leading content investments create powerful competitive moat ▪ Focus on scaling original and local language content uniquely positions NFLX to succeed globally ▪ Incumbent media competition hamstrung by legacy business practices and internet-native peers constrained by limited original content production Pricing power derived from superior value proposition relative to alternatives Vastly better consumer experience vs. linear TV: commercial-free, on-demand, binge-able ■ Netflix Monthly ARPU of ~$15 vs Pay TV Monthly ARPU of >$80 in the U.S. Substantial future margin expansion due to economies of scale ▪ Ability to leverage content and technology spend over a rapidly growing subscriber base ▪ EBIT margins expanded by >1,000 bps since 2018; company is targeting an average annual increase of 300 bps per year over any few-year period ■ Improving free cash flow profile allows for growth investments and capital return High-performing organization led by a world-class management team 39

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