Microsoft Mergers and Acquisitions Presentation Deck

Better Unit Economics Drive Profitability Improved unit economics by owning gross margin dollars and synergies 20 Current Partnership - Windows Phone royalty gross margin (<$10 per unit) Platform payment support • Marketing investment Acquisition - Smart Device gross margin (> $40 per unit) - Integrated hardware R&D and design *Focused marketing investment Fueling investment in innovation and marketing. Driving further unit growth and market share Operating income breakeven when Smart Device units exceed ~50M Smart Acquisition

View entire presentation