#1#2On today's call SATYA NADELLA JEFF WEINER AMY HOOD BRAD SMITH 2#3#4June 13, 2016 World's Leading Professional Cloud + World's Leading Professional Network Microsoft's and LinkedIn's vision for the opportunity ahead Microsoft Linked in 4#5#6#7LinkedIn The world's largest and most valuable professional network Growing membership 200+ countries and territories 433M+ members (+19% yr/yr) 105M+ MAU (+9% yr/yr) Growing engagement 60%+ traffic from mobile (+49% yr/yr) 45B quarterly page views (+34% yr/yr) 7M+ active job listings (+101% yr/yr) Growing results $3B total revenue (+35% yr/yr) ~$2.0B Talent Solutions revenue (+41% yr/yr) ~$0.3B Sponsored Updates revenue (+101% yr/yr) 7 Note: Membership and engagement data as of Q1 FY16. Results data FY15 actuals.#8#9A larger total addressable market While LinkedIn and Microsoft are highly complementary, they participate in unique total addressable markets (TAM). In addition to TAM growth, the likelihood of seizing more of the TAM will increase through differentiated experiences. $315B NEW TAM, UP 58% $115B TAM LINKEDIN $200B TAM MICROSOFT'S PRODUCTIVITY & BUSINESS PROCESS SEGMENT Note: TAM data reflects an internal analysis by Microsoft and Linkedin from third-party sources including IDC, Gartner, Dell'Oro and ITU#10The professional world Microsoft 1.2B+ Office users 300M+ Windows 10 MAD 70M+ Office 365 commercial MAU 8M+ paid Dynamics seats 5M+ Azure Active Directory organizations Linked in 433M+ members 105M+ MAU 7M+ active job listings 9M+ company pages 50K+ university pages 2M+ paid subscribers 10#11Connecting the professional world Today, all the information a professional needs to be successful lives in silos. By connecting the world's leading professional cloud and the professional network, we can create more connected, intelligent and productive experiences. We also have the opportunity to accelerate the realization of the Economic Graph. Collaboration Expertise (i) Customer accounts Email Calendar MICROSOFT GRAPH Contacts E Documents Message Learning Insights Meetings Recruiting & hiring managers Co-workers Ⓡ LINKEDIN GRAPH Ⓡ Prospects Jobs Universities 11#12#13A professional's profile everywhere Today, there is no one source of truth for an individual profile - the data is scattered across many endpoints often with outdated or incomplete information. In the future, a professional's profile will be unified and the right data at the right time will surface in an app, whether Outlook, Skype, Office, or elsewhere. Growth opportunity LinkedIn Membership & MAU Office 365 MAU 个 SharePoint S Word W Windows Linked in P PowerPoint Outlook OM S Skype X THTHI Excel 13#14A new daily habit: Intelligent Newsfeed Today, since information lives in silos, professionals miss relevant news and waste time. In the future, the newsfeed will be the place to go for every professional to stay connected with the happenings in their network, industry and profession. Beyond all this, the feed will be constantly informed and tailored to the happenings at work like the meetings coming up and projects underway. Growth opportunity LinkedIn Membership & MAU Office 365 MAU Ad revenue ↑ in Enterprise Professional Organization Q Search for co-workers, content, insights and more... 18 Ⓒ Highlights Related to your meeting with Mandy Chang Pillars of Culture Review on 6/34300 Driving innovation Through Culture Culture Eats Strategy for Breakfast Ra Mon Pean A #Sang Mandy Ch Justin Ap T We Ca Martina C En DC Maya J wor Ser P Tanya Na Steven M G 4:21 PM Q Search for co-workers, content and more... O You are meeting with Today at 2:00p Aaron Jacobs Aaron Jacobs Vice President of Marketing at Conto Aaron was promoted to Vice President three weeks ago Hosted a session at Global Leadership Conference about Culture and the Employee Mindset + You and Aaron both went to University of Michigan Related to a meeting with Mandy Chang Pillars of Culture Review last Tue at 3:00p 18 Newsfeed Culture is King Alex Mallay CEO at CPA Australia Your shared OneNote notebook has been updated by Rina Wittig 2017 Planning and Prioritization 82% 3 Analytics 2 ⠀⠀⠀ ... More 14#15A digital assistant that's predictive Today Cortana knows about you, your organization and about the world. In the future, Cortana will also know your entire professional network to connect dots on your behalf so you stay one step ahead. Growth opportunity Member MAU Office 365 MAU Ad revenue 个 O Hi Jen, you are meeting with Sam next. You and Sam both went to the University of Washington and you both know Cindy Smith. Good news, the Huskies won last night's game. Do you want to look at Sam's profile? Do you want to see your meeting history with Cindy and Sam? Also, ok if I share the presentation for today with Sam? 15#16#17Selling to Social Selling Today, a sales person only sees doors to open through the lens of their individual contacts. In the future, professionals will move from selling to social selling. Users of Dynamics CRM and all other CRM systems will want to directly connect with LinkedIn Sales Navigator. This will transform the sales cycle with actionable insights and the ability for each seller to build deeper relationships with prospects and customers - all to accelerate results. Growth opportunity LinkedIn MAU LinkedIn Sales Navigator Revenue Dynamics Revenue 个 SO SALES NAVIGATOR * 26 Sved Companies MY UPDATES (AS) Today COCOCO AC pengg C 112 43 Good morning, Chloe. Who can we help you find today? Danie Seved ballad C HOME LEADS ACCOUNTS Nets reach out F 23 D 25 Calli THE 15 of 25 w Networks Each out 301 D 56% No A j Bobby - Taver Industry potential who visited page yet your Dropc HOW C haben Find new le N Q Search n Home in SALES NAVIGATOR 10:41 Today's Discovery Based on your Sales Preferences 3 Recommended Leads from your saved accounts SO +2 6 Recommended Accounts 0 Discovery Swipe left to start 12% 111 Messaging 17#18Organizational insights & transformation Today, organizations have limited ability to understand their own team's capability or productivity. In the future, we can give leaders the insight they need to understand their talent (like who they are, where they come from, where they go next) as well as their employees' effectiveness (like where they spend time and who they collaborate with). This combination will enable organizations to transform. Growth opportunity LinkedIn Recruiter Revenue Office 365 Revenue Dynamics Revenue 个 SPORTLIS 34% response rate Designerulers in the Tech Induttry maging the same talent pool average a response rate of 15- Candidate response for Me (Sarah Vaughan) for Last quarter et more responses from thirtean y at Twitter notable departure industry. Understanding the talent landscape CLAS our highest responding comp C JOMIL 29% Talent Brand Empletion comptyverage Custom Reports powe Hat you lovia ner slaytheon Station by Complete yours have had success with E ww bas Q TI 93 Ⓒ24 the custod po POR 9 55 opened vious New) Search for co-workers, content and more... You are meeting with Aaron Jacobs Today at 2:00p Aaron Jacobs Vice President of Marketing at Conto Aaron was promoted to Vice President three weeks ago Hosted a session at Global Leadership Conference about Culture and the Employee Mindset You and Aaron both went to University of Michigan Related to a meeting with Mandy Chang Newsled Culture is King Alex Malay CEO at CPA Australia Your shared OneNote notebook has been 2017 Planning and Prioritization More 18#19Just in time social learning Today, despite the fact that the useful life of skills and knowledge has shrunk to less than five years, only 38% of employees believe they have the opportunities for learning and growth at their workplace. In the future, LinkedIn Learning will tightly integrate into Office, enabling users to have a more seamless experience and access to on- demand courses. Recommending the right course at the right time will enable individuals and companies to be more productive and successful this will transform learning. - Growth opportunity Lynda.com (LinkedIn Learning) MAU and Revenue Office 365 MAU Dynamics Revenue ↑ TU Animations Side Show Foll A A Aa A Programming Languages in Ube.pptx-PowerPoint Tell me what you want to do Programming Fundamentals Aligat Convert to Smart CONTESE in PowerPoint 2016 Help Looking for something not listed? Search below PRE Contact us 1. D 0 6 Co-workers who Connections in your network who can help 300 Freelance Pro who can help COD PowerPoint experts M Courses that & Aange Quick Styles Bat Notes 5 Have Programming skills Ⓒhapel Shape Outline Shape Effects Nathan Barstow 500- connections M40-40 - Maa E in common Ramin M A Share 1 Replacem 1 a X A ▬▬ 19#20#21#22#23Transaction Overview Structure $196 per share, $26.2 billion enterprise value ▪ All cash consideration Expected to close by the end of this calendar year ■ = Financing ▪ Purchase price to be financed primarily with new debt Financial Impact Minimally (~1%) dilutive to non-GAAP EPS in FY17 and FY18 based on expected close date Accretive to Non-GAAP EPS in FY19 or less than two years post closing Non-GAAP includes stock based compensation expense consistent with Microsoft's reporting practice, and excludes expected impact of purchase accounting adjustments as well as integration and transaction related expenses ■ $150 million of cost synergies annually by 2018 Capital Return Program ▪ Previously announced share buyback program (~$10B remaining) will be completed on schedule Financial Reporting Currently expect to report results for LinkedIn post close in our Productivity and Business Processes segment New KPIs will be finalized prior to close ■ 23#24Microsoft Linked in World's Leading Professional Cloud + World's Leading Professional Network 24