Microsoft Mergers and Acquisitions Presentation Deck

23 IP Acquisition and License Agreements with Nokia - Intellectual property is an important element of the smart devices business - Unless managed proactively, patent issues can create uncertainty for smartphone shipments • Unless managed creatively, patent royalties can add over 10 percent to the costs of a smartphone Bill of Materials. ▪ Microsoft is acquiring over 8,500 design patents, ownership of the Lumia & Asha brands, and a ten-year license to use the Nokia brand on feature phones • Microsoft is paying €1.65 billion for a fully paid-up license to Nokia's utility patents • Covers all of Nokia's patents and applications as of the closing date (except NSN) . The total license price includes an option to convert coverage from a ten-year to a perpetual license The agreement provides for a broad, five-year, two-way standstill, including NSN Nokia's patent portfolio is one of the most valuable in the tech sector • Nokia's portfolio has approximately 30,000 utility patents and patent applications; we consider it to be one of the two most valuable portfolios relevant to wireless connectivity ▪ The license also provides significant value for Microsoft's existing businesses, replacing after 2014 Microsoft's existing annual license payment to Nokia Smart Acquisition

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