DISCLOSURE APPENDIX AT THE BACK OF THIS REPORT CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, AND THE STATUS OF NON-US ANALYSTS.

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1 Americas/United States Equity Research Consumer Internet (Internet (US)) / MARKET WEIGHT Research Analysts Stephen Ju stephen.ju@credit-suisse.com Yoni Yadgaran yoni.yadgaran@credit-suisse.com Nick Hrynkiewicz nicholas.hrynkiewicz@credit-suisse.com Bo Yang bo.yang@credit-suisse.com Internet COMMENT What Has Worked, What Has Not, and What Can Change Action: We preview 2Q15 earnings results for the Internet sector. We have made material changes to our near-term estimates and target prices for several of our names (see Exhibits 2 and 3). Top Picks Remain GOOGL, FB, and AMZN Among the Large Caps: We have made modest updates to our Google investment thesis (please refer to our note "Emerging Businesses Lines to Drive Margin Stabilization and Eventual Expansion" for details) from a fundamental perspective our conviction level increases on GOOGL shares. We continue to expect 1) narrowing of the mobile-desktop monetization gap, 2) moderation of increases to capital expenditure, and 3) a clearer path to margin stabilization via ramping contribution from YouTube AND Google Play. As we have noted previously, FB and AMZN shares enjoy a more positive investor outlook, while GOOGL shares remain a battleground on margin compression. We hence believe the largest potential for a rerating lies with GOOGL shares. Our investment theses for FB and AMZN shares remain unchanged; for AMZN we expect 2015 to be a return to basics and greater investor focus on core retail on 1) operating margin expansion due to continued benefit from shipping loss moderation, and 2) normalization of International growth rate; for FB 1) Street models are too conservative and underestimate the longterm monetization potential of upcoming new products, and 2) optionality and upward bias to estimates do not contemplate contributions from multiple other products in a growing and stacked release slate. Favoring LNKD, MELI, and YELP Going Smaller in Cap: Following our recent Ideas Engine report (Charging Forward with Multipronged Monetization, published 28 April 2015) in which we raised or investment rating on MELI shares, we add it here to our list of favorites for For LNKD shares, we remain focused on 1) the ramp of Sales Navigator, 2) potential acceleration of Marketing Solutions on the heels of consumer engagement recovery and contribution via Bizo, 3) potential price increases in Talent Solutions. For MELI we are focused on 1) increased off-platform adoption of MercadoPago, 2) adoption of interest free listings, 3) reduction of transactional friction via MercadoEnvios, and 4) seller adoption of new Product Listing Advertisement. On YELP shares, our long-term fundamental stance has not changed, but we acknowledge potential execution headwinds from employee distraction around recent reports of a potential sale we would hence treat a negative guidance revision event as an opportunity to average down or initiate a new position. DISCLOSURE APPENDIX AT THE BACK OF THIS REPORT CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, AND THE STATUS OF NON-US ANALYSTS. US Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. CREDIT SUISSE SECURITIES RESEARCH & ANALYTICS BEYOND INFORMATION Client-Driven Solutions, Insights, and Access

2 Investment Case Updating Our Product Catalysts for 2015 As we have noted previously in our 2015 outlook report (Riding the Third Wave of Value Creation, published 14 January 2015) we believe stock performance this year will hinge more on individual company and product-specific catalysts versus overarching themes. And we update for 2Q15 and the balance of 2015 our list of the same as some of these have already started to play out. Given the sheer number of data points, products, and catalysts, we summarize below the key points of focus that we will be monitoring throughout the year. Some are iterations of long-established products while others are new: Exhibit 1: Company-Specific Catalysts to Focus on for 2015 Ticker Catalysts Ticker Catalysts AMZN AWAY ebay / PayPal EIGI EVDY EXPE FB FUEL GOOGL GRPN IACI KING Continued shipping loss moderation driving operating margin expansion Normalization of International growth rate in 2Q15 as Japanese operations lap consumption tax headwinds Majority of listings to be online bookable by 2016 Calendar accuracy improvement Pay per booking Potential acceleration in PayPal TPV post separation on merchant roster expansion and offline consumer adoption Potential GMV growth acceleration via structured data catalog and improved product suggestions Take rate improvements for Maketplace via Promoted Listing Ads Continued ARPS improvement due to upsell/cross sell International expansion Increased share of pharma/specialty pharma ad budgets driving annual spend per advertiser Operating leverage as increased budget share should arrive at high incremental margin Faster-than-expected ramp for Sales Navigator Acceleration of Marketing Solutions on heels of consumer engagement recovery and contriution from Bizo Optionality for continued price increases for Talent Solutions Increased off-platform adoption of MercadoPago Better-than-expected adoption of interest-free listings in non-core countries driving ASP and take rate lift Reduction in transactional friction through greater adoption of MercadoEnvios Faster-than-expected realization of target operating margins for both Domestic and International markets Moderation of content spend due to greater-than-expected traction of its original programming Binary event of royalty structure ruling in December Continued increases to mobile and desktop RPMs Greater realization of benefit from rising outbound Chinese travel demand Establishment of Booking.com brand with US consumer Transaction velocity improvement on potential outbound travel activity out of US given stronger dollar Better-than-expected growth in room nights sold given greater demand generation from factors #1 and #2 Greater access to US hotel inventory as inbound travel activity slows down Premium Video Continued growth of mobile newsfeed, app install, and optimization of right rail Potential for incremental product announcements Growth in share of budgets due to continued growth of programmatic driving higher ARPU Integration of x+1 drives increased customer stickiness Optionality of licensing technology via agency partnerships Continued narrowing of the gap between mobile-desktop monetization through multiple product relases Higher FCF through moderation of increases to CapEx following multi-year investment cycle Increased contribution from higher-margin businesses outside of Search (including YouTube and Google Play) Greater consumer traction in local segment through mobile offerings and Page Greater consumer engagement and adoption of Pull initiatives Operating leverage in Goods business through logistics optimization Spin out of Match Group Greater value creation in still nascent verticals such as DailyBurn, HomeAdvisor, Vimeo Recovery/stabilization of Search vertical Increased content delivery cadence driving higher-than-expected consumer engagement Slower-than-expected decay curves for existing games, especially Candy Crush Saga Source: Company data, Credit Suisse LNKD MELI NFLX P PCLN QNST SALE TRIP TRMR WIFI YHOO YELP ZNGA Our Large Cap Favorites Remain: Google, Facebook, Amazon Google (GOOGL): We recalibrate our model as we update estimates to reflect greater contribution from YouTube while moderating near-term Play estimates. We increase our TP to $700 (vs. $690 prior), but decrease our adj. EPS for FY15 by 200bps to $25.88 (vs. $26.40 prior) as we modestly decrease our near-term revenue and gross profit forecasts. We continue to believe that following factors are reasons that can potentially drive material increases to our current estimates and hence share appreciation: 1) faster-than-expected narrowing of the mobile-desktop monetization gap this will be through a combination of the continued benefits from Enhanced Campaigns as well as a plethora of other products including app install and engagement as well as the newly announced search ad unit for Google Play (please see our report, Updating Our Thoughts on Google Play with the New Ad Unit Under Testing, 27 March 2015), 2) moderation of increases to its capital expenditure following a multi-year investment cycle, 3) greater-than-expected contribution from Google's larger non-search business namely YouTube and Google Play. Facebook (FB): Heading into the 2Q15 results, we have increased our advertising revenue forecast by ~240bps to $3.62 billion, as we now contemplate $2.5 billion in mobile revenue. While channel checks for this quarter have been relatively neutral, the increases Operating leverage on greater ROI on currently-elevated investments targeting Financial Services Faster-than-expected ramp of education initiatives in Brazil and India Mobile monetization initiatives such as CPC, single use codes Recovery of desktop traffic growth as Panda impact is lapped Continued adoption of "Show Prices" from consumers to drive CPC revenue growth Operating leverage as incremental CPC revenue should arrive at high incremental margin Increased traction of performance-based products with advertisers driving higher pricing and gross margin Adoption of programmatic offerings to open up additional share of ad budgets Greater P&L impact from carrier offload Greater traction with military segment driving ARPU increases in consumer segment Reacceleration of search or display advertising on organic basis Moves to more aggressively monetize properties such as Tumblr and Flickr Traffic growth recovery for mobile Increased ARPU growth trajectory due to greater advertiser wililngness to adopt CPC Sales force efficiency drives improved conversion of claimed businesses into advertising customers Greater-than-expected cadence of content delivery Potential consumer traction with upcoming titles Better-than-expected advertising monetization Internet 2

3 to our near-term estimates were driven by currency fluctuations, as we were previously contemplating a more significant impact from FX. And as we have left our longer-term forecast relatively unchanged, we maintain our $106 price target and Outperform rating - as we expect the company to continue on its path of value creation through the measured releases of new products. In the near term, we expect Premium Video to begin to exert a greater impact to financials in 2015, and as we look longer term it is the arsenal of new products as well as the optionality from as-of-yet monetized properties that we believe will continue to drive upside to estimates, we have called out previously on our product-byproduct approach to forecasting (first published in our report, Time to Rebuild Your Facebook Models Raising to Outperform, April ). Amazon (AMZN): Our investment thesis for Amazon, as we have delineated in our 2015 outlook report, remains unchanged - we are looking for a return to "normalcy" especially in the second half of 2015 given the following factors. The first factor is operating margin expansion due to the continued benefit derived from shipping loss moderation this is not a one quarter two quarter event but rather a source of ongoing iteration due to: 1) continued maturation of fulfillment centers, 2) increased use of ground shipping versus air, and 3) increased adoption of FBA. The second factor is the normalization of International growth rate especially in Japan as Amazon laps the consumption tax increase from 2Q14. We would also highlight revenue growth within the recently disclosed AWS segment as a key performance indicator going forward. We Continue to Favor LinkedIn, MercadoLibre, and Yelp as We Go Smaller in Market Cap LinkedIn (LNKD): LNKD remains one of our favorite names as the company works through a number of near-term issues and remains one of the more contested names in our coverage. We continue to believe that three of the four primary factors that drove a reset lower to revenue and adj. EBITDA guidance last quarter (FX, Lynda, weakness in Display, sales force reorg) are ultimately transitory while the deterioration of LinkedIn s premium display business is not an unfixable problem. Additionally, the growth drivers and underlying fundamentals have also not changed and neither does our investment thesis. MercadoLibre (MELI): We recently increased our investment rating on MELI shares to Outperform in an Ideas Engine report Charging Forward with Multipronged Monetization published 28 April 2015 and we add it here to our list of favorite names for the year. Our thesis is predicated on the following points: 1) increased off-platform adoption of MercadoPago; 2) better than expected adoption of interest free listings in non-core countries, which should result in ASP lift and higher take-rates; 3) reduction of transactional friction and ensuing volume lift through mass adoption of MercadoEnvios; and 4) long-term seller adoption of new Product Listing Advertisement. Yelp (YELP): YELP shares remain controversial and along with GOOGL remain out-offavor and out-of-consensus. The majority of investor focus has not been on fundamentals as of late as the company was reportedly exploring a sale. We highlighted prospective buyers in our 07 May 2015 note "We Were All Thinking Along These Lines Anyway" and the rationale for each potential acquirer. However, media outlets have subsequently reported that the sale process has come to an end. And while we maintain our long-term positive outlook on the company, the likely disruptions to its sales force as well as morale increases the likelihood of a downward guidance revision on the 2Q15 report. While we believe that investors are prepared for this event, it is a negative catalyst that must be navigated nonetheless. That said, we are focused on 1) resumption of traffic growth for mobile, and 2) the potential for increasing ARPU on greater advertising adoption of CPCbased products, and we believe that over the longer term the practice of charging ~$300 per month should shift to a more per-lead generated model. Summary of Changes to Estimates and Targets FX exerted relatively little influence on our estimate updates this quarter. Given the downward trajectory of global currency exchange rates versus the USD, we had elected to Internet 3

4 use what turned out to be overly punitive assumptions for particularly the Euro. Hence, in some cases, we have raised our estimates for the near to medium term. We summarize below the changes to 2Q15, 2015, and 2016: Exhibit 2: Changes To CS Estimates and Target Prices Ticker PT PT 2Q15 2Q15 % % % CS Estimates Current Prior Prior Current Δ Prior Current Δ Prior Current Δ Total Revenue % % % AMZN $480 $480 Adjusted EBITDA % % % Adjusted EPS ($0.24) ($0.24) 0.0% $0.96 $ % $4.87 $ % Total Revenue % % % WIFI $9 $9 Adjusted EBITDA % % % Adjusted EPS ($0.07) ($0.07) 2.8% ($0.19) ($0.18) 3.9% $0.10 $ % Total Revenue % % % CNV $6 $6 Adjusted EBITDA % % % Adjusted EPS ($0.04) ($0.04) -0.5% ($0.10) ($0.10) 0.1% ($0.09) ($0.09) 1.1% Total Revenue % % % EBAY $66 $66 Adjusted EBITDA % % % Adjusted EPS $0.75 $ % $3.07 $ % $3.59 $ % Total Revenue % % % EIGI $28 $28 Adjusted EBITDA % % % Adjusted EPS $0.28 $ % $1.37 $ % $1.97 $ % Total Revenue % % % EVDY $27 $27 Adjusted EBITDA % % % Adjusted EPS $0.11 $ % $0.77 $ % $1.12 $ % Total Revenue % % % EXPE $102 $104 Adjusted EBITDA % % % Adjusted EPS $1.13 $ % $3.97 $ % $6.48 $ % Total Revenue % % % FB $106 $106 Adjusted EBITDA % % % Adjusted EPS $0.43 $ % $1.93 $ % $3.17 $ % Total Revenue % % % GOOG $700 $690 Adjusted EBITDA % % % Adjusted EPS $6.15 $ % $26.40 $ % $32.08 $ % Total Revenue % % % GRPN $8 $8 Adjusted EBITDA % % % Adjusted EPS $0.06 $ % $0.28 $ % $0.28 $ % Total Revenue % % % AWAY $32 $31 Adjusted EBITDA % % % Adjusted EPS $0.09 $ % $0.57 $ % $0.74 $ % Total Revenue % % % IACI $72 $72 Adjusted EBITDA % % % Adjusted EPS $0.51 $ % $2.79 $ % $3.94 $ % Total Revenue % % % KING $20 $20 Adjusted EBITDA % % % Adjusted EPS $0.44 $ % $2.27 $ % $2.85 $ % Total Revenue % % % LC $24 $24 Adjusted EBITDA % % % Adjusted EPS $0.01 $ % $0.06 $ % $0.16 $ % Total Revenue % % % LNKD $307 $307 Adjusted EBITDA % % % Adjusted EPS $0.26 $ % $1.67 $ % $3.01 $ % Total Revenue % % % MELI $181 $192 Adjusted EBITDA % % % Adjusted EPS $0.45 $ % $2.37 $ % $3.05 $ % Internet 4

5 Exhibit 3: Changes To CS Estimates and Target Prices Ticker PT PT 2Q15 2Q15 % % % CS Estimates Current Prior Prior Current Δ Prior Current Δ Prior Current Δ Total Revenue % % % NFLX $700 $505 Adjusted EBITDA % % % Adjusted EPS $0.63 $ % $2.39 $ % $2.87 $ % Total Revenue % % % P $21 $21 Adjusted EBITDA % % % Adjusted EPS $0.03 $ % $0.15 $ % $0.39 $ % Total Revenue % % % PCLN $1,500 $1,400 Adjusted EBITDA % % % Adjusted EPS $11.07 $ % $50.27 $ % $58.71 $ % Total Revenue % % % QNST $4 $4 Adjusted EBITDA % % % Adjusted EPS $0.02 $ % $0.05 $ % $0.24 $ % Total Revenue % % % SALE $23 $23 Adjusted EBITDA % % % Adjusted EPS $0.15 $ % $1.10 $ % $1.16 $ % Total Revenue % % % FUEL $11 $11 Adjusted EBITDA (5.7) (5.7) 0.0% (19.2) (19.2) 0.0% % Adjusted EPS ($0.43) ($0.43) 0.0% ($1.64) ($1.64) 0.0% ($0.46) ($0.46) 0.0% Total Revenue % % % TRMR $4 $4 Adjusted EBITDA (2.6) (2.6) 0.0% (5.6) (5.6) 0.0% % Adjusted EPS ($0.09) ($0.09) 0.0% ($0.25) ($0.25) 0.0% ($0.10) ($0.10) 0.0% Total Revenue % % % TRIP $91 $91 Adjusted EBITDA % % % Adjusted EPS $0.55 $ % $2.21 $ % $2.72 $ % Total Revenue % % % YHOO $66 $68 Adjusted EBITDA % % % Adjusted EPS $0.13 $ % $0.41 $ % $0.52 $ % Total Revenue % % % YELP $70 $70 Adjusted EBITDA % % % Adjusted EPS $0.13 $ % $0.61 $ % $1.09 $ % Total Revenue % % % ZNGA $2.92 $2.92 Adjusted EBITDA (6.3) (6.3) 0.0% % % Adjusted EPS ($0.01) ($0.01) 0.0% $0.02 $ % $0.08 $ % Internet 5

6 Amazon com Inc. AMZN Price (09 Jul 15): US$434.39, Rating: OUTPERFORM, Target Price: US$ Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) 88, , , ,643.6 EBITDA 4,923 7,333 10,849 17,023 Depr. & amort. (3,840) (6,209) (7,262) (8,878) EBIT (US$) 178 1,124 3,587 8,146 Net interest exp. (128) (256) (201) (145) Associates (75) (78) (82) (86) Other adj, (68) (72) (77) (81) PBT (US$) (93) 718 3,227 7,833 Income taxes (167) (183) (823) (1,997) Profit after tax (260) 535 2,404 5,835 Minorities Preferred dividends Associates & other (75) (78) (82) (86) Net profit (US$) (334) 456 2,322 5,749 Other NPAT adjustments Reported net income (334) 456 2,322 5,749 Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT 178 1,124 3,587 8,146 Net interest (128) (256) (201) (145) Cash taxes paid Change in working capital ,806 1,469 Other cash & non-cash items 5,814 7,327 7,922 8,745 Cash flow from operations 6,841 8,924 13,114 18,214 CAPEX (4,892) (5,120) (5,536) (5,666) Free cash flow to the firm 1,949 3,805 7,579 12,548 Acquisitions (980) Divestments 3, Other investment/(outflows) (2,543) (986) Cash flow from investments (5,066) (5,731) (5,536) (5,666) Net share issue/(repurchase) Dividends paid Issuance (retirement) of debt 4,427 (674) Other (5,251) (948) 742 (8) Cash flow from financing (818) (1,203) 1, activities Effect of exchange rates (309) (322) Changes in Net Cash/Debt 648 1,669 8,917 13,001 Net debt at start (8,503) (9,151) (10,820) (19,737) Change in net debt (648) (1,669) (8,917) (13,001) Net debt at end (9,151) (10,820) (19,737) (32,738) Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents 14,557 17,173 25,349 38,358 Accounts receivable 5,612 6,294 8,126 9,339 Inventory 8,299 9,849 11,727 13,036 Other current assets 2,859 3,544 3,544 3,544 Total current assets 31,327 36,860 48,745 64,277 Total fixed assets 16,967 13,227 11,697 8,550 Intangible assets and goodwill 3,319 3,491 3,491 3,491 Investment securities Other assets 2,892 3,356 4,106 3,850 Total assets 54,505 56,935 68,039 80,168 Liabilities Accounts payable 16,459 18,401 21,910 24,644 Short-term debt Other short term liabilities 11,630 10,474 12,481 13,739 Total current liabilities 28,089 28,875 34,391 38,382 Long-term debt 8,265 9,898 9,156 9,164 Other liabilities 7,410 6,911 10,777 12,697 Total liabilities 43,764 45,684 54,324 60,243 Shareholders' equity 10,741 11,251 13,714 19,924 Minority interest Total equity & liabilities 54,505 56,935 68,039 80,168 Net debt (US$ m) (9,151) (10,820) (19,737) (32,738) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) (0.72) Prev. EPS (US$) 0.96 Dividend (US$) Dividend payout ratio Free cash flow per share (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT (76.1) Net profit (208.2) (236.5) EPS (207.0) Margins (%) EBITDA margin EBIT margin Pretax margin (0.1) Net margin (0.4) Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT 1, P/E (605.6) P/B Asset turnover ROE analysis (%) ROE stated-return on (3.3) equity ROIC (44.4) (47.4) Interest burden (0.52) Tax rate (180.1) Financial leverage Credit ratios (%) Net debt/equity (85.2) (96.2) (143.9) (164.3) Net debt/ebitda (1.9) (1.5) (1.8) (1.9) Interest coverage ratio Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 6

7 Amazon.com Inc. (AMZN) Amazon will be reporting its 2Q15 earnings on 23 July We continue to highlight core retail gross profit dollar growth as the key performance indicator of focus (as opposed to unit volume growth); in addition to revenue growth within the recently disclosed AWS segment. Our investment thesis for AMZN shares remain unchanged as we look for a return of focus to the margin expansion thesis on the core retail segment, which we previously highlighted in our 2015 Internet sector outlook report (published 14 January 2015): 1. Operating margin expansion due to the continued benefit derived from shipping loss moderation 2. Normalization of International growth rate especially in Japan as Amazon laps the consumption tax increase from 2Q14 As we have noted earlier, the former will be a continued source of iterative benefit conferred to the company due to: 1) maturation of fulfillment centers, 2) increased use of ground shipping versus air, and 3) increased adoption of FBA. (please see our report Poised to See Structural and Margin Benefits from Expanding Fulfillment Footprint from 11 April 2013). Exhibit 4: Amazon.com, Inc. Shipping Loss Margin 0% -20% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15-40% -60% -80% -100% -120% % % % % % % % % % -99.4% -79.2% -77.8% -140% % -160% Source: Company data, Credit Suisse Shipping loss margin, which we calculate as the shipping loss divided by shipping revenue continued to improve due to the aforementioned factors and the long-term chart above is more interesting if we look at the first derivative, or the rate of change below: Internet 7

8 Exhibit 5: Amazon.com, Inc. Year Over Year Change in Shipping Loss Margin 70% 60% 60.0% 50% 40% 30% 20% 10% 0% -10% 32.0% 26.9% 23.0% 24.4% 26.1% 13.6% 13.1% 10.5% 9.9% 7.3% 5.1% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15-6.7% -20% Our estimates for 2015 and beyond currently contemplate 100bps of shipping loss margin improvement per year. We also view the potential normalization of the growth rate in International and particularly Japan as a more transient catalyst, that said it should however also serve as a positive sentiment event for investors. An updated look at its competitor Rakuten's reported domestic GMV over the last few quarters is also instructive as it continues to exert a drag and 1Q15 should have been the last of the tough comp quarters: Exhibit 6: Rakuten, Inc. Rakuten Ichiba Domestic Gross Merchandise Value and Year Over Year Growth JPY in billions % 17% 23% 23% 32% % 11% 7% -1% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% Source: Company data, Credit Suisse Following continued currency fluctuations, we have made minor changes to our near-term estimates for Amazon's International business. For 2Q15 and FY15, we have increased our net revenue forecasts by 100 bps and 80 bps to $22.4 billion and $102.4 billion, respectively. As a result, our 2Q15 and FY15 estimates for adjusted operating income (CSOI) also increases by ~100 bps and ~80 bps, respectively. Our price target remains unchanged at $480 as have made minimal changes to our longer-term forecast changes to our estimates are as shown below: Internet 8

9 Exhibit 7: Amazon.com, Inc. CS Estimate Revisions 2Q15 2Q15 % % % Prior Current Δ Prior Current Δ Prior Current Δ Media % % % EGM % % % Other % % % Net Revenue % % % Cost of Revenue % % % Gross Profit % % % CSOI % % % Adjusted EBITDA % % % Pro Forma EPS ($0.24) ($0.24) 0.0% $0.96 $ % $4.87 $ % As we look past the changes to our near-term estimates, we note that Amazon began to enter a period of easier comps in 2Q15. Specifically, the company will lap the Japanese consumption tax-driven headwinds to its International growth rate as well as the rounds of price cuts at AWS. The key metrics for the company remain the growth of net revenue and core retail gross profit dollars (ex-aws), although unit volume growth will be closely observed as well. Exhibit 8: Amazon.com, Inc. Net Revenue Growth US$ in millions % 22% 22% 22% 24% 20% 23% 23% 20% 15% 15% 16% Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 30% 25% 20% 15% 10% 5% 0% Exhibit 9: Amazon.com, Inc. Core Retail Gross Profit Growth and Margin US$ in millions % 29% 31% 29% 29% 31% 31% 32% 33% 32% 27% 27% Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 35% 30% 25% 20% 15% 10% 5% 0% Our estimates versus consensus for revenue and adjusted EBITDA are as shown below for 2Q15, FY15, FY16. Exhibit 10 Amazon.com, Inc. Credit Suisse vs. Consensus Estimates 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA % % % Adjusted EPS ($0.24) ($0.16) -50.6% $0.97 $ % $4.87 $ %, Bloomberg Internet 9

10 Valuation In-line with the valuation methodology we have used with the rest of our coverage universe, we have based our target price on DCF, which suggests $480. We have used a weighted average cost of capital of 10.5% and a terminal growth rate expectation of 3%. Exhibit 11: Amazon.com, Inc. Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA % Net Income % Depreciation & Amortization % Other Non-Cash Charges (Benefits) % Interest Expense (Income) (65.7) (207.8) Changes in Operating Assets & Liabilities Unlevered Cash Flows % Capital Expenditures % Unlevered Free Cash Flows % Y/Y % Change 112% 85% 63.2% 26.7% 5.5% 11.5% Weighted Average Cost of Capital 10.5% Perpetual UFCF Growth Rate ("G") 3.0% 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets 0.0 Adjusted Enterprise Value Year End Net Debt (Cash) ( ) Equity Value Diluted Shares Outstanding Equity Value Per Share $480 Internet 10

11 HomeAway Inc. AWAY Price (09 Jul 15): US$29.61, Rating: NEUTRAL, Target Price: US$(from 31.00) Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) EBITDA Depr. & amort. (31) (33) (38) (43) EBIT (US$) Net interest exp. (12) (17) (17) (16) Associates Other adj, (7) (0) PBT (US$) Income taxes (7) (13) (14) (20) Profit after tax Minorities (0.58) Preferred dividends Associates & other Net profit (US$) Other NPAT adjustments (48) (52) (51) (56) Reported net income Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT Net interest (12) (17) (17) (16) Cash taxes paid Change in working capital Other cash & non-cash items Cash flow from operations CAPEX (32) (35) (36) (39) Free cash flow to the firm Acquisitions Divestments Other investment/(outflows) (506) (52) Cash flow from investments (538) (87) (36) (39) Net share issue/(repurchase) 25 2 Dividends paid Issuance (retirement) of debt Other 366 (103) (139) (150) Cash flow from financing 391 (101) (139) (150) activities Effect of exchange rates 1 (10) Changes in Net Cash/Debt Net debt at start Change in net debt Net debt at end Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents Accounts receivable Inventory Other current assets Total current assets 865 1,027 1,168 1,325 Total fixed assets Intangible assets and goodwill Investment securities Other assets Total assets 1,530 1,682 1,823 1,976 Liabilities Accounts payable Short-term debt Other short term liabilities Total current liabilities Long-term debt Other liabilities Total liabilities Shareholders' equity ,057 1,146 Minority interest Total equity & liabilities 1,530 1,682 1,823 1,976 Net debt (US$ m) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT 18.3 (10.1) Net profit 24.4 (6.3) EPS (30.8) (55.4) Margins (%) EBITDA margin EBIT margin Pretax margin Net margin Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT P/E P/B Asset turnover ROE analysis (%) ROE stated-return on equity ROIC Interest burden Tax rate Financial leverage Credit ratios (%) Net debt/equity Net debt/ebitda Interest coverage ratio Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 11

12 Thousands 10 July 2015 HomeAway, Inc. (AWAY) We continue to monitor the progress HomeAway has made on requiring the majority of listings to be online-bookable by the end of 2016 as we believe this is the key to a potential transition from a classified to a marketplace platform. The combination of aforementioned online booking initiative, as well as improved calendar accuracy will remove transactional frictions for both property owner/manager and consumer and propel HomeAway toward monetizing as a function of gross travel bookings as opposed to a flat fee. An Update on the e-commerce Initiative While we wholeheartedly agree conceptually with the path HomeAway is looking to take, how we get from here to the end point is not as clear and to better understand the progress made on the e-commerce initiative across different sites, we looked at the listings on both HomeAway.com and VRBO.com, two of AWAY's largest properties, and the percentage of listings that are online bookable. Below chart shows that as end of June 2015, there were ~45% listings on both platforms that have "Request to Book" or "Book Now" buttons versus just 29.7% and 30.5% as of November Exhibit 12: HomeAway, Inc. Homeaway.com Listings Count and Online Bookable Adoption Rate Exhibit 13: HomeAway, Inc. VRBO.com Listings Count and Online Bookable Adoption Rate 1200 k 50% 1200 k 50% 1000 k 800 k 600 k 400 k 200 k 0 k 44.8% 42.7% 43.6% 41.5% 38.8% 35.4% 32.6% 29.7% ,019 1, / / / / / / / /06 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1000 k 800 k 600 k 400 k 200 k 0 k 41.5% 42.8% 43.5% 44.8% 39.2% 33.3% 35.8% 30.5% ,024 1, / / / / / / / /06 vrbo.com Listings % Online Bookable 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% homeaway.com Listings % Online Bookable In addition, we have seen increasing adoption of HomeAway Payments despite that it was decoupled as a requirement from online booking. There were 48.3% of listings that offer HomeAway payments on both HomeAway.com and VRBO.com as of June 2015 versus just 33.3% and 34.3% as of November Internet 12

13 Exhibit 14: HomeAway, Inc. HomeAway.com Listings Count and HomeAway Payments Adoption Rate 1200 k 60% Exhibit 15: HomeAway, Inc. VRBO.com Listings Count and HomeAway Payments Adoption Rate 1200 k 60% 1000 k 800 k 600 k 33.3% 36.3% 37.9% 41.0% 43.6% 44.7% 46.2% 48.3% 50% 40% 30% 1000 k 800 k 600 k 34.3% 37.3% 38.6% 41.6% 43.9% 44.9% 46.3% 48.3% 50% 40% 30% 400 k 20% 400 k 200 k 20% 10% 200 k 0 k ,019 1, / / / / / / / /06 10% 0% 0 k ,019 1, / / / / / / / /06 vrbo.com Listings % Offer HomeAway Payments 0% homeaway.com Listings % Offer HomeAway Payments Over the course of time, we believe that the narrative will shift in favor of the more traditional OTA-like metrics of units sold and gross bookings as HomeAway makes all its listings online bookable but in the meantime we remain on the sidelines and monitor the progress of above mentioned e-commerce initiatives. We maintain our Neutral rating and update our models with the ongoing moves of foreign currencies resulting changes to our estimates are as summarized below: Exhibit 16: HomeAway, Inc. CS Estimate Revisions 2Q15 2Q15 % % % Prior Current Δ Prior Current Δ Prior Current Δ Paid Listings, End of Period (in 000s) % % % Average Revenue per Listing $358.8 $ % 367 $ % $404.4 $ % Listing Revenue % % % Other Revenue % % % Total Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.09 $ % $0.57 $ % $0.74 $ % Our projections for paid listings, listing revenue, other revenue and ultimately adjusted EBITDA for 2Q15 are as shown below: Internet 13

14 Exhibit 17: HomeAway, Inc. Quarterly Paid Listings and Year Over Year Growth in thousands Exhibit 18: HomeAway, Inc. Quarterly Listing Revenue and Year Over Year Growth US$ in millions Our paid listing forecast for 2Q15 stands at million versus 1Q15's million and million of a year ago; with effective ARPL at $ For 2Q15 our listing revenue estimate is $101.6 million versus 1Q15's $95.0 million and $94.5 million of a year ago. Exhibit 19: HomeAway, Inc. Quarterly Other Revenue and Year Over Year Growth US$ in millions Exhibit 20: HomeAway, Inc. Quarterly Adjusted EBITDA and Margin US$ in millions And with our other revenue forecast at $24.9 million for 2Q15, consolidated revenue stands at $126.5 million versus guidance range of $122 million to $124 million. Our 2Q15 adjusted EBITDA estimate stands at $23.3 million versus guidance range of $22.5 to $23.5 million. Our estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Internet 14

15 Exhibit 21: HomeAway, Inc. - Credit Suisse vs. Consensus Estimates 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.09 $ % $0.59 $ % $0.76 $ % Valuation In-line with the valuation methodology we have used with the rest of the Internet sector, we have based our price target on discounted cash flow analysis, which suggests $32. We have used a weighted average cost of capital of 11.5% and a terminal growth rate expectation of 3%. Exhibit 22: HomeAway, Inc. Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA % Net Income % + Depreciation & Amortization % + Other Non-Cash Charges (Benefits) % + Interest Expense (Income) (3.2) (3.7) (4.2) (4.8) (4.7) (4.8) + Changes in Operating Assets & Liabilities = Unlevered Cash Flows % - Capital Expenditures % = Unlevered Free Cash Flows % Y/Y % Change 40.5% -13.9% 7.8% 12.8% 21.2% 11.1% Weighted Average Cost of Capital 11.5% Perpetual UFCF Growth Rate ("G") 3.0% 2015E NPV of Unlevered Free Cash Flows 773 Present Value of Terminal Value 1689 Enterprise Value 2462 Off-Balance Sheet Assets 0 Adjusted Enterprise Value 2462 Year End Net Debt (Cash) (634) Equity Value 3095 Diluted Shares Outstanding 98 Equity Value Per Share $32 Internet 15

16 Cnova N.V. CNV Price (09 Jul 15): US$5.28, Rating: UNDERPERFORM [V], Target Price: US$6.00 Income statement (Eu m) 12/14A 12/15E 12/16E 12/17E Revenue (Eu m) 3, , , ,114.6 EBITDA Depr. & amort. (30) (37) (45) (54) EBIT (Eu) 2 (2) Net interest exp. (2) (3) (3) (3) Associates Other adj, (66) (64) (96) (120) PBT (Eu) (66) (70) (30) 8 Income taxes 15 7 (16) (30) Profit after tax (52) (63) (46) (21) Minorities Preferred dividends Associates & other Net profit (Eu) (24) (44) (42) (15) Other NPAT adjustments (30) (19) (4) (7) Reported net income (54) (63) (46) (21) Cash flow (Eu) 12/14A 12/15E 12/16E 12/17E EBIT 2 (2) Net interest Cash taxes paid (5) Change in working capital 279 (128) Other cash & non-cash items (59) (33) (66) (95) Cash flow from operations 285 (87) CAPEX (77) (86) (103) (110) Free cash flow to the firm 208 (174) Acquisitions Divestments 3 Other investment/(outflows) (14) 67 Cash flow from investments (87) (19) (103) (110) Net share issue/(repurchase) 134 Dividends paid Issuance (retirement) of debt 73 Other (99) (30) (6) (6) Cash flow from financing 108 (30) (6) (6) activities Effect of exchange rates (6) (24) Changes in Net Cash/Debt 300 (160) Net debt at start (168) (469) (308) (435) Change in net debt (300) 160 (127) (190) Net debt at end (469) (308) (435) (625) Balance sheet (Eu m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents Accounts receivable Inventory Other current assets Total current assets 1,334 1,369 1,630 1,972 Total fixed assets Intangible assets and goodwill Investment securities Other assets Total assets 2,161 2,225 2,544 2,942 Liabilities Accounts payable 1,296 1,267 1,522 1,808 Short-term debt Other short term liabilities Total current liabilities 1,559 1,636 1,891 2,178 Long-term debt Other liabilities Total liabilities 1,577 1,665 1,920 2,207 Shareholders' equity Minority interest Total equity & liabilities 2,161 2,225 2,544 2,942 Net debt (Eu m) (469) (308) (435) (625) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (Eu) (0.06) (0.10) (0.09) (0.03) Prev. EPS (Eu) Dividend (Eu) Dividend payout ratio Free cash flow per share 0.50 (0.39) (Eu) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT (91.1) (258.3) (2,946.1) 89.6 Net profit (4.4) (64.5) EPS (50.5) (70.7) Margins (%) EBITDA margin EBIT margin 0.0 (0.1) Pretax margin (1.9) (1.7) (0.6) 0.1 Net margin (0.7) (1.1) (0.8) (0.2) Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT 1,068.5 (741.0) P/E (82.5) (48.3) (51.0) (145.3) P/B Asset turnover ROE analysis (%) ROE stated-return on (10.8) (11.1) (7.8) (3.2) equity ROIC 1.0 (0.9) 56.4 (301.3) Interest burden (43.2) 28.7 (0.4) 0.1 Tax rate (54.0) Financial leverage Credit ratios (%) Net debt/equity (80.2) (55.1) (69.7) (85.0) Net debt/ebitda (7.2) (5.8) (3.7) (3.3) Interest coverage ratio 1.0 (0.8) Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q1 (0.03) (0.06) (0.09) (0.10) EPS for Q2 (0.03) (0.04) (0.03) (0.01) EPS for Q3 (0.03) (0.04) (0.03) (0.01) EPS for Q Daily Nov 20, Jul 09, 2015, 11/20/14 = US$ Nov-14 Feb-15 May-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 16

17 Cnova N.V. (CNV) As per its usual practice, Cnova will release Net Sales and GMV results first followed up by full results on a separate date. 2Q15 Net Sales will be released on 10 July 2015 and Financial Results will be on 22 July We highlight that Cnova's valuation is particularly sensitive to USD/EUR exchange rate fluctuations as the company reports its financial results in Euros but its shares trade in US Dollars. Our twelve month USD/EUR exchange rate forecast remains at 0.98 consistent with the updated CS Fixed Income Research. As a result, our $6 price target remains unchanged. We maintain our Underperform rating and outline a number of catalysts that can prompt us to revisit our stance: 1. Greater-than-expected traction for marketplaces roll out in Brazil 2. Gross margin recovery in the direct sales business Looking ahead to 2Q15, our focus KPIs for Cnova remain Direct Sales and Marketplace GMV, Consolidated Revenue and Marketplace Take Rate for France and Brazil. France Market CS estimates for France Direct GMV and Marketplace GMV are now million and million respectively, with marketplaces segment representing 28% of total France GMV. Exhibit 23: Cnova N.V. Quarterly France Direct Sales and Year Over Year Growth EUR in millions, unless otherwise stated % Exhibit 24: Cnova N.V. Quarterly France Marketplace GMV and Year Over Year Growth EUR in millions, unless otherwise stated % % 26% 23% 34% 35% 30% 25% % 79% 100% 108% 107% 115% 120% 100% 80% 20% % 80 60% % 6% Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14E 1Q15E 2Q15E 10% 5% 0% Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14E 1Q15E 2Q15E 40% 20% 0% We assume that France Marketplace take rate will remain at ~11% and our estimate for France consolidated revenue is now 416 million. Internet 17

18 Exhibit 25: Cnova N.V. Quarterly France Consolidated Revenue and Year Over Year Growth EUR in millions, unless otherwise stated % 14% 32% 27% 26% % 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Exhibit 26: Cnova N.V. Quarterly France Marketplace Take Rate 14% 13% 12% 12% 12% 11% 11% 11% 11% 11% 11% 10% 10% 8% 6% 4% 2% 0% 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E Brazil Market: CS 2Q15 estimates for Brazil Direct Sales and Marketplace GMV are at BRL 1.86billion and BRL million respectively. Exhibit 27: Cnova N.V. Quarterly Brazil Direct Sales and Year Over Year Growth BRL In millions % 48% 64% 56% 35% 36% Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 70% 60% 50% 40% 30% 20% 10% 0% Exhibit 28: Cnova N.V. Quarterly Brazil Marketplace GMV and Year Over Year Growth BRL in millions % 4310% 1043% 598% 287% 250% Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 16000% 14000% 12000% 10000% 8000% 6000% 4000% 2000% 0% We have assumed a ~11% Take Rate for Brazil Marketplace, which results in Brazil Consolidated Revenue estimate of BRL 486 million. Internet 18

19 Exhibit 29: Cnova N.V. Quarterly Brazil Consolidated Revenue and Year Over Year Growth EUR in millions, unless otherwise stated % 22% 54% 40% 32% 28% 60% 50% 40% 30% 20% Exhibit 30: Cnova N.V. Quarterly Brazil Marketplace Take Rate 11.3% 11% 11% 11.3% 11.2% 11.2% 11% 11.1% 11.1% 11.0% 11% 11.0% % 10.9% Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 0% 10.9% 10.8% 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E CS estimates versus consensus for 1Q15, FY15 and FY16 are as shown below: Exhibit 31: Cnova N.V. Credit Suisse Estimates vs. Consensus 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA 8.1 (2.8) 388.7% % % Adjusted EPS ($0.04) ($0.03) -51.9% ($0.10) ($0.07) -35.6% ($0.09) $ %, Bloomberg Valuation In-line with the methodology we have used with the rest of the internet sector, we have based our 12-month price target on DCF which suggests 6. Using EUR/USD 12 month forward exchange rate of 0.98, as forecasted by Credit Suisse global FX strategy team, this yields a $6 price target. We have used a weighted average cost of capital of 14% and a terminal growth rate expectation of 3%. Internet 19

20 Exhibit 32: Cnova N.V. - Discounted Cash Flow CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA % Net Income (62.7) (46.0) (21.4) Depreciation & Amortization % Other Non-Cash Charges (Benefits) Interest Expense (Income) % Changes in Operating Assets & Liabilities (141.9) Unlevered Cash Flows (91.0) Capital Expenditures (86.2) (102.6) (110.4) (130.5) (148.3) (166.2) Unlevered Free Cash Flows (177.2) Y/Y % Change (148.4)% 171.5% 50.0% 31.9% 24.3% 14.6% Weighted Average Cost of Capital 14.0% Perpetual UFCF Growth Rate ("G") 3.0% 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets 0.0 Adjusted Enterprise Value Year End Net Debt (Cash) (308.3) Equity Value Diluted Shares Outstanding Equity Value Per Share ( ) 6 EUR/USD Exchange Rate 0.98 Equity Value Per Share ($) $6 Internet 20

21 ebay Inc. EBAY Price (09 Jul 15): US$61.77, Rating: NEUTRAL, Target Price: US$66.00 Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) 17, , , ,384.5 EBITDA 5,693 6,140 7,259 8,221 Depr. & amort. (1,490) (1,842) (1,695) (2,125) EBIT (US$) 4,583 4,779 5,590 6,127 Net interest exp Associates Other adj, PBT (US$) 4,606 4,788 5,643 6,215 Income taxes (3,572) (737) (862) (957) Profit after tax 1,034 4,051 4,782 5,259 Minorities Preferred dividends Associates & other 2,700 (246) (291) (317) Net profit (US$) 3,734 3,805 4,491 4,941 Other NPAT adjustments (3,769) (1,102) (566) (632) Reported net income (35) 2,703 3,925 4,310 Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT 4,583 4,779 5,590 6,127 Net interest Cash taxes paid Change in working capital 2,595 (415) (75) (1,866) Other cash & non-cash items (1,524) 1,518 1,955 2,434 Cash flow from operations 5,677 5,891 7,523 6,783 CAPEX (1,271) (1,722) (1,947) (2,109) Free cash flow to the firm 4,406 4,169 5,576 4,674 Acquisitions (59) Divestments Other investment/(outflows) (1,343) (1,471) (1,135) (1,192) Cash flow from investments (2,673) (3,193) (3,082) (3,301) Net share issue/(repurchase) (1,144) (1,508) (1,654) (1,770) Dividends paid Issuance (retirement) of debt 3,482 (850) Other (6,058) 7,141 2,593 1,535 Cash flow from financing (3,720) 4, (1,234) activities Effect of exchange rates Changes in Net Cash/Debt (864) 7,184 5,380 2,248 Net debt at start (7,149) (6,285) (13,469) (18,849) Change in net debt 864 (7,184) (5,380) (2,248) Net debt at end (6,285) (13,469) (18,849) (21,097) Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents 6,328 9,779 12,566 13,279 Accounts receivable 11,342 14,212 18,196 22,168 Inventory Other current assets 8,861 9,889 11,004 11,905 Total current assets 26,531 33,880 41,766 47,352 Total fixed assets 2,902 3,241 3,494 3,478 Intangible assets and goodwill 9,658 9,446 9,446 9,446 Investment securities 5,777 5,647 5,647 5,647 Other assets Total assets 45,132 52,501 60,640 66,210 Liabilities Accounts payable Short-term debt Other short term liabilities 16,280 18,758 22,837 24,979 Total current liabilities 17,531 20,022 24,138 26,342 Long-term debt 6,777 5,945 5,445 4,445 Other liabilities 918 5,400 7,674 9,500 Total liabilities 25,226 31,366 37,257 40,287 Shareholders' equity 19,906 21,135 23,383 25,923 Minority interest Total equity & liabilities 45,132 52,501 60,640 66,210 Net debt (US$ m) (6,285) (13,469) (18,849) (21,097) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) 1,259 1,229 1,244 1,257 CS adj. EPS (US$) Prev. EPS (US$) 3.07 Dividend (US$) Dividend payout ratio Free cash flow per share (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT Net profit EPS Margins (%) EBITDA margin EBIT margin Pretax margin Net margin Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT P/E P/B Asset turnover ROE analysis (%) ROE stated-return on (0.1) equity ROIC Interest burden Tax rate Financial leverage Credit ratios (%) Net debt/equity (31.6) (63.7) (80.6) (81.4) Net debt/ebitda (1.1) (2.2) (2.6) (2.6) Interest coverage ratio (195.8) (536.1) (104.4) (69.5) Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 21

22 ebay Inc. (EBAY) EBAY will be reporting its 2Q15 results on 16 July As the management teams of both of the to-be-separated companies have already articulated their strategic priorities via investor days in early June, we are concerned with the long-term catalysts to drive GMV, TPV, or take rates higher. As we have noted in our investor day preview report (Updating Our Thoughts Ahead of the Investor Days for both Companies, published 8 June 2015), we are focused on the following items. For ebay: For PayPal: Take Rate Improvements via Promoted Listings: ebay announced in late May that it is starting to test with select sellers a new product listing ad format. While details are scarce at this point, this initially looks like a similar promotional tool which was just released at MercadoLibre and has also been live in its subsidiary Gmarket for some time. In other words, this is an additional tool which should allow sellers to bid for placement within search results and perhaps even display advertising. Given that the release of a similar product for MercadoLibre was the premise of our recent upgrade (please see our report Charging Forward with Multipronged Monetization from 28 April 2015 for additional information), we view this development as the most interesting item we have seen in some time and could be potentially game-changing for ebay's consolidated take rates as incremental revenue from this new item should be flowing straight to the bottom line. Link to ebay's Promoted Listings description page is here: GMV Growth Acceleration via Structured Catalog Data: This concept is not new as it had first been highlighted as a potential source of benefit during ebay's 2013 Analyst Day but new CEO Devin Wenig highlighted this move as a key part of the Marketplace strategy on the 1Q15 earnings report. This should confer two benefits 1) recovery within organic search rankings on Google (SEO), and more importantly, 2) deliver an improved shopping experience for buyers as it makes item discovery as well as recommendations more straightforward. It seems like this time around, we submit that the move to impose greater structure on the product listings pages should be augmented by a policy shift to transfer a greater burden/effort on the sellers. Merchant Roster Expansion Driving TPV Growth: Post spin, PayPal should presumably be able to add those merchants who previously did not adopt it as a payment method given the competition with ebay. The headline merchant driving the greatest amount of investor focus on this narrative has been Amazon. We believe this development is unlikely given Amazon's aspirations to develop its own payment platform and furthermore, we do not believe it will confer a material amount of operating profit or free cash flow dollar benefit to PayPal given the terms Amazon will likely demand. As such PayPal will likely find greater "bang for its buck" focusing on other merchants. Leverage Consumer Adoption of Mobile to Drive Offline Usage: As the PayPal app on the smart phone in its prior iterations did not necessarily solve a consumer pain point when paying for goods or services offline, it remains to be seen what product innovations the company has in store to drive greater usage. Internet 22

23 Exhibit 33: ebay Inc. CS Estimate Revisions 2Q15 2Q15 % % % Prior Current Δ Prior Current Δ Prior Current Δ Gross Merchandise Value % % % Marketplaces Revenue % % % Total Payment Volume % % % Payment Revenue % % % Adjusted EBITDA % % % Pro Forma EPS $0.75 $ % $3.07 $ % $3.59 $ % We have otherwise not made any changes to the FX-neutral growth projections for GMV or TPV and our price target remains at $66. Exhibit 34: ebay Inc. Quarterly Non-Vehicle Gross Merchandise Value and Year Over Year Growth US$ in billions % 16% 13% 13% 13% 13% 12% 12% 9% 20% 15% 10% Exhibit 35: ebay Inc. Quarterly Total Payment Volume and Year Over Year Growth US$ in billions % 29% 27% 24% 24% 25% 25% 24% 21% 20% 18% 35% 30% 25% 20% 10 2% 5% % 15% 10% 5 0-2% -4% % -5% % 0% 2Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A 3Q12A 2Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A 3Q12A Our non-vehicle gross merchandise value estimate for 2Q15 stands at $19.7 billion underlying this is an 2.5% year over year growth projection for the US and a 6% FXneutral revenue growth for International; our consolidated take rate stands at 8.4% for marketplaces. We expect TPV to reach $62.2 billion in 2Q15 this reflects a ~2.4% decline of on-ebay transactions and 18.6% growth of off-ebay transactions. Internet 23

24 Exhibit 36: ebay Inc. Quarterly Consolidated Revenue and Year Over Year Growth US$ in billions % 18% 14% 14% 14% 13% 14% 13% 12% Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 9% 4Q14A 4% 4% 1Q15A 2Q15E 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Exhibit 37: ebay Inc. Quarterly Adjusted EBITDA and Margin US$ in billions % 36% 36% 35% 36% 37% 33% 31% 30% 33% 32% 33% Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 40% 35% 30% 25% 20% 15% 10% 5% 0% Hence, our 2Q15 revenue estimate is $4.5 billion versus guidance range of $4.4-$4.5 billion while Adjusted EBITDA is $1.5 billion; Pro Forma EPS stands at $0.76 versus guidance range of $0.71-$0.73. Our estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Exhibit 38: ebay Inc. Credit Suisse vs. Consensus Estimates 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.76 $ % $3.10 $ % $3.59 $ %, Bloomberg Valuation In-line with the valuation methodology we have used with the rest of our coverage universe, we have based our price target on discounted cash flow analysis, which suggests $66. We have used a weighted average cost of capital of 10.5% and a terminal growth rate expectation of 3%. Internet 24

25 Exhibit 39: ebay Inc. Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA % Net Income % Depreciation & Amortization % Other Non-Cash Charges (Benefits) % Interest Expense (Income) (14.6) (30.6) (88.2) (102.1) (122.7) (155.4) Changes in Operating Assets & Liabilities (414.6) (75.3) (1866.3) (2193.8) (2585.3) (2973.3) Unlevered Cash Flows % Capital Expenditures % Unlevered Free Cash Flows % Y/Y % Change (5.3)% 33.5% (17.3)% 11.3% 11.2% 4.4% Weighted Average Cost of Capital 10.5% Perpetual UFCF Growth Rate ("G") 3.0% 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets 0.0 Adjusted Enterprise Value Year End Net Debt (Cash) (7172) Equity Value Diluted Shares Outstanding 1229 Equity Value Per Share $66 Internet 25

26 Endurance International Group Holdings, Inc. EIGI Price (09 Jul 15): US$20.49, Rating: OUTPERFORM [V], Target Price: US$28.00 Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) EBITDA Depr. & amort. (134) (124) (117) (122) EBIT (US$) Net interest exp. (57) (53) (52) (51) Associates (0.17) Other adj, PBT (US$) (45) Income taxes (6) (11) (28) Profit after tax (51) Minorities Preferred dividends Associates & other Net profit (US$) Other NPAT adjustments (185) (160) (172) (183) Reported net income (48) Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT Net interest (57) (53) (52) (51) Cash taxes paid Change in working capital Other cash & non-cash items Cash flow from operations CAPEX (24) (36) (38) (41) Free cash flow to the firm Acquisitions Divestments Other investment/(outflows) (128) 0 (0) (0) Cash flow from investments (151) (35) (39) (41) Net share issue/(repurchase) 44 Dividends paid Issuance (retirement) of debt Other (48) (41) Cash flow from financing (5) (41) activities Effect of exchange rates (0.08) (0.51) Changes in Net Cash/Debt (13) Net debt at start 994 1, Change in net debt 13 (140) (256) (290) Net debt at end 1, Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents Accounts receivable Inventory Other current assets Total current assets Total fixed assets Intangible assets and goodwill 1,515 1,426 1,347 1,267 Investment securities Other assets Total assets 1,746 1,785 1,965 2,177 Liabilities Accounts payable Short-term debt 14 Other short term liabilities Total current liabilities Long-term debt 1,026 1,032 1,023 1,014 Other liabilities Total liabilities 1,541 1,467 1,528 1,599 Shareholders' equity Minority interest 31 Total equity & liabilities 1,746 1,785 1,965 2,177 Net debt (US$ m) 1, Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT (119.8) Net profit EPS Margins (%) EBITDA margin EBIT margin Pretax margin (7.1) Net margin Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT P/E P/B Asset turnover ROE analysis (%) ROE stated-return on (6.0) equity ROIC Interest burden (3.6) Tax rate (14.3) Financial leverage Credit ratios (%) Net debt/equity Net debt/ebitda Interest coverage ratio Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 26

27 Endurance International Group Holdings Inc. (EIGI) During its investor on 23 June 2015, Endurance International's management outlined a series of long-term product initiatives and spoke about their efforts to move to an improved server architecture which will likely result in more efficient customer retention and acquisition. Management also highlighted its mobile first product offering, AppMachine, which enables businesses to easily port the content on their websites into apps. We believe this product offering will serve as an incremental subscriber acquisition gateway especially in emerging markets where the consumer is moving to mobile first. We note that AppMachine is currently in Beta and should go live in Fall Over the course of time, we will be monitoring the progress of above mentioned initiatives but at the meantime, we maintain our estimates, Outperform rating and $28 target price. The key focus metrics for Endurance investors are growth in total subscribers and average revenue per subscriber (ARPS). Given the stable and recurring nature of Endurance's business, we do not anticipate any material changes to its customer acquisition dynamics on the back of the 2Q15 earnings print. We focus instead on the greater secular growth driver of the large and underpenetrated addressable market, with 26 million domestically and 50 million SMBs internationally. Exhibit 40: Endurance International Group Holdings Inc. -- Subscribers and Year Over Year Growth In millions % 10% 10% 9% 10% 11% 12% 17% 15% 14% 18% 16% 14% 12% 10% Exhibit 41: Endurance International Group Holdings Inc. -- ARPS and Year Over Year Growth US$ % 10% 10% 12% 14% 12% 10% 8% 2.0 8% % % 4% % 4% Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 2% 0% % 1% 1% 0% Q13A2Q13A3Q13A4Q13A1Q14A2Q14A3Q14A4Q14A1Q15A2Q15E 2% 0% We expect about 75k net additions sequentially in 2Q15 for Endurance to reach 4.3 million subscribers versus 1Q15's 4.21 million and 2Q14's 3.75 million. Our average revenue per subscriber (ARPS) estimate is $14.33 in 2Q15 versus 1Q15's $14.37 and 2Q14's $ Internet 27

28 Exhibit 42: Endurance International Group Holdings Inc. -- Revenue and Year Over Year Growth US$ in millions % 12% 11% 9% 21% 22% 24% 28% 17% 15% Q13A2Q13A3Q13A4Q13A1Q14A2Q14A3Q14A4Q14A1Q15A2Q15E 30% 25% 20% 15% 10% 5% 0% Exhibit 43: Endurance International Group Holdings Inc. -- Adjusted EBITDA and Margin US$ in millions % 41% 38% 34% 39% 36% 35% 35% 38% 34% Q13A2Q13A3Q13A4Q13A1Q14A2Q14A3Q14A4Q14A1Q15A2Q15E 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Accordingly, our 2Q15 revenue and adjusted EBITDA stand at $182.4 million and $61.6 million respectively. CS estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Exhibit 44: Endurance International Group Holdings Inc. - Credit Suisse vs. Consensus Estimates 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Non-GAAP Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.28 $ % $1.37 $ % $1.97 $ %, Bloomberg Valuation In-line with the valuation methodology we have used with the rest of our coverage universe, we have based our target price on DCF, which suggests $28. We have used a weighted average cost of capital of 12% and a terminal growth rate expectation of 3%. Internet 28

29 Exhibit 45: Endurance International Group Holdings Inc. -- Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA % Net Income % Depreciation & Amortization Other Non-Cash Charges (Benefits) % Interest Expense (Income) Changes in Operating Assets & Liabilities % Unlevered Cash Flows % Capital Expenditures (35.7) (38.4) (40.9) (43.2) (45.2) (46.8) 5.6% Unlevered Free Cash Flows % Y/Y % Change 31.9% 29.2% 9.6% 7.9% 12.6% 16.1% Weighted Average Cost of Capital 12.0% Perpetual UFCF Growth Rate ("G") 3.0% 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets 0.0 Adjusted Enterprise Value Year End Net Debt (Cash) Equity Value Diluted Shares Outstanding Equity Value Per Share $28 Internet 29

30 Exhibit 46: Endurance International Group Holdings Inc. -- Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA % Net Income % Depreciation & Amortization % Other Non-Cash Charges (Benefits) % Interest Expense (Income) Changes in Operating Assets & Liabilities % Unlevered Cash Flows % Capital Expenditures (37.3) (40.1) (42.8) (45.2) (47.3) (49.2) 5.7% Unlevered Free Cash Flows % Y/Y % Change 29.8% 26.0% 10.6% 7.8% 13.0% 16.2% Weighted Average Cost of Capital 12.0% Perpetual UFCF Growth Rate ("G") 3.0% 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets 0.0 Adjusted Enterprise Value Year End Net Debt (Cash) Equity Value Diluted Shares Outstanding Equity Value Per Share $28 Internet 30

31 Everyday Health, Inc. EVDY Price (09 Jul 15): US$12.14, Rating: OUTPERFORM, Target Price: US$27.00 Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) EBITDA Depr. & amort. (15) (22) (21) (24) EBIT (US$) Net interest exp. (4) (2) (2) (2) Associates Other adj, (4) PBT (US$) Income taxes 9 0 (1) (1) Profit after tax Minorities Preferred dividends Associates & other Net profit (US$) Other NPAT adjustments (11) (12) (13) (14) Reported net income Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT Net interest (4) (2) (2) (2) Cash taxes paid Change in working capital (12) (13) (8) (10) Other cash & non-cash items Cash flow from operations CAPEX Free cash flow to the firm Acquisitions (65) (25) (5) Divestments 0.40 Other investment/(outflows) (15) (17) (17) (19) Cash flow from investments (79) (41) (22) (19) Net share issue/(repurchase) 79 0 Dividends paid Issuance (retirement) of debt 19 (2) Other (22) 72 Cash flow from financing activities Effect of exchange rates Changes in Net Cash/Debt Net debt at start (24) (53) Change in net debt (16) (63) (29) (59) Net debt at end 39 (24) (53) (112) Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents Accounts receivable Inventory Other current assets Total current assets Total fixed assets Intangible assets and goodwill Investment securities Other assets Total assets Liabilities Accounts payable Short-term debt Other short term liabilities Total current liabilities Long-term debt Other liabilities Total liabilities Shareholders' equity Minority interest Total equity & liabilities Net debt (US$ m) 39 (24) (53) (112) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT (482.7) Net profit (544.4) EPS Margins (%) EBITDA margin EBIT margin Pretax margin Net margin Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT P/E P/B Asset turnover ROE analysis (%) ROE stated-return on equity ROIC Interest burden Tax rate (215.7) (0.6) Financial leverage Credit ratios (%) Net debt/equity 22.7 (9.2) (18.1) (31.5) Net debt/ebitda 1.1 (0.5) (0.8) (1.2) Interest coverage ratio Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q1 (0.46) (0.14) (0.13) 0.08 EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 31

32 Everyday Health, Inc. (EVDY) We expect investors to continue to focus on the acceleration of spend per advertiser as the company looks to increase share of advertising budgets amongst its pharma clients. And as Everyday Health de-emphasizes smaller clients such as hospitals in favor of the higher-spending pharma advertisers, we are modeling a sequential step down in advertisers. We also anticipate continued decay of the Premium Services revenue segment as the company shifts its concentration to Advertising and Sponsorship revenue. Looking nearer-term, we believe that the Street underappreciates and misunderstands the DoctorDirectory asset, which the company acquired in November of 2014 for $65 million. From a product perspective, this broadens Everyday Health s offering for direct-tophysician marketing budgets, which make up the vast majority of pharma ad spend the company first entered this segment in 2010 with the acquisition of MedPage Today. Out of the total ~$20 billion in pharma marketing spend, about $15 billion is on direct-to-physician and $5 billion on direct-to-consumer. Our investment thesis has not changed since the company went public and is contingent upon the following: 1. Large addressable market for health and wellness advertising which we estimate to be $35 billion 2. Share gain for online advertising in for healthcare, which we believe lags that of other verticals 3. Everyday Health is a logical targeted advertising outlet for specialty pharma companies As such we maintain our Outperform rating and $27 price target. The key focus metrics for the company remain the growth rates for spend per advertiser as well as Advertising and Sponsorship revenue and Number of Advertisers: Exhibit 47: Everyday Health, Inc. -- Number of Advertisers and Year Over Year Growth % 19% 20% % 6% 6% 10% 150 5% -1% -2% 0% 100-7% -5% -10% 50-13% -10% -17% -15% % 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E Exhibit 48: Everyday Health, Inc. -- Average Spend per Advertiser and Year Over Year Growth US$ in thousands % 23% 41% 43% 39% 31% % 5% 27% 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Our Advertising and Sponsorship revenue estimate as a result is $49.8 million versus guidance of $49.5 to $52.5 million (Total revenue guidance including Premium Services is $ $56.5 million), and adjusted EBITDA is $9.7 million versus guidance $10 to $11 million. Internet 32

33 Exhibit 49: Everyday Health, Inc. -- Advertising & Sponsorship Revenue and Year Over Year Growth US$ in millions % 22% 23% 29% 16% 28% 23% 11% 35% Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 40% 35% 30% 25% 20% 15% 10% 5% 0% Exhibit 50: Everyday Health, Inc. -- Adjusted EBITDA and Margin US$ in millions % 1% 3% 1% 2% 2% 4% 0% % 9.7 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 5% 4% 4% 3% 3% 2% 2% 1% 1% 0% Our estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Exhibit 51: Everyday Health, Inc. Credit Suisse vs. Consensus Estimates 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.11 $ % $0.77 $ % $1.12 $ %, Bloomberg Valuation In line with the valuation methodology we have used with the rest of the Internet sector, we have based our target price on DCF, which suggests $27. We have used a weighted average cost of capital of 12.0% and 3% terminal growth rate. Internet 33

34 Exhibit 52: Everyday Health, Inc. -- Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA % Net Income % Depreciation & Amortization Other Non-Cash Charges (Benefits) Interest Expense (Income) Changes in Operating Assets & Liabilities (12.7) (8.1) (10.5) (10.0) (9.6) (12.6) -0.2% Unlevered Cash Flows % Capital Expenditures % Unlevered Free Cash Flows % Y/Y % Change 45.9% 83.4% 70.7% 45.5% 31.1% (18.7)% Weighted Average Cost of Capital 12.0% Perpetual UFCF Growth Rate ("G") 3.0% 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets 0.0 Adjusted Enterprise Value Year End Net Debt (Cash) (23.6) Equity Value Diluted Shares Outstanding 33.9 Equity Value Per Share $27 Internet 34

35 Expedia EXPE Price (09 Jul 15): US$104.55, Rating: NEUTRAL, Target Price: US$(from ) Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) 5, , , ,136.9 EBITDA 1,025 1,180 1,745 1,741 Depr. & amort. (266) (378) (488) (539) EBIT (US$) ,257 1,203 Net interest exp. (71) (76) (78) (62) Associates Other adj, (16) 3 PBT (US$) ,179 1,140 Income taxes (92) (153) (258) (236) Profit after tax Minorities 25 (2) (3) (4) Preferred dividends Associates & other (118) Net profit (US$) Other NPAT adjustments (130) (71) (181) (174) Reported net income Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT ,257 1,203 Net interest (71) (76) (78) (62) Cash taxes paid Change in working capital Other cash & non-cash items Cash flow from operations 1,367 1,016 2,070 2,129 CAPEX (328) (367) (450) (538) Free cash flow to the firm 1, ,620 1,591 Acquisitions (561) (1,938) Divestments Other investment/(outflows) (35) 473 Cash flow from investments (924) (1,833) (450) (538) Net share issue/(repurchase) (372) (6) Dividends paid (85) (77) (72) (73) Issuance (retirement) of debt 493 Other (486) 2 (0) (0) Cash flow from financing (449) (81) (73) (73) activities Effect of exchange rates (109) (65) Changes in Net Cash/Debt (116) (963) 1,547 1,517 Net debt at start ,307 (240) Change in net debt (1,547) (1,517) Net debt at end 344 1,307 (240) (1,757) Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents 1, ,988 3,505 Accounts receivable ,061 1,170 Inventory Other current assets Total current assets 2,924 1,853 3,684 5,361 Total fixed assets Intangible assets and goodwill 5,246 5,108 5,011 4,913 Investment securities Other assets 10 Total assets 9,021 8,027 9,723 11,302 Liabilities Accounts payable 1,550 1,751 2,119 2,442 Short-term debt Other short term liabilities 2,637 2,604 3,182 3,709 Total current liabilities 4,187 4,355 5,302 6,151 Long-term debt 1,747 1,747 1,748 1,748 Other liabilities 1,193 1,193 1,193 1,193 Total liabilities 7,127 7,295 8,243 9,092 Shareholders' equity 1, ,371 2,100 Minority interest Total equity & liabilities 9,021 8,027 9,723 11,302 Net debt (US$ m) 344 1,307 (240) (1,757) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT (4.3) Net profit 16.8 (21.9) (3.5) EPS 25.2 (22.3) (4.2) Margins (%) EBITDA margin EBIT margin Pretax margin Net margin Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT P/E P/B Asset turnover ROE analysis (%) ROE stated-return on equity ROIC Interest burden Tax rate Financial leverage Credit ratios (%) Net debt/equity (16.2) (79.5) Net debt/ebitda (0.1) (1.0) Interest coverage ratio Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q (0.13) EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 35

36 Expedia, Inc. (EXPE) Expedia announced the sale of elong, its Chinese OTA asset on 22 May As we adjust our model to reflect the divestment which was an elimination of ~$120 million adjusted EBITDA drag and layer in the sale price of ~$671 million, our medium-term profitability estimates increase while long-term decreases. As we have noted before, Expedia is making the tradeoff between growth and profitability and while our preference was for the company to continue to operate in China, we cannot begrudge the management team's current strategy of consolidating its home market. This does diminish some of EXPE's long-term growth potential as its ability to source outbound travel demand from the growing Chinese travel market. As a result, our price target decreased to $102 vs. prior $104 as we had previously assumed positive free cash flow contribution from elong in the out years. Hence, we maintain our Neutral rating based on valuation but the factors below can push us to adopt more of a constructive stance on EXPE shares, which are primarily demandrelated: 1. Transaction acceleration from potential improvement in outbound travel activity out of the US given the stronger US dollar 2. Declining inbound travel activity from Europe/elsewhere to the US augurs better access to hotel inventory (especially for Hotwire), increasing Expedia's bargaining position with hoteliers in the US The table below summarizes the changes to our Leisure and Egencia Bookings, Revenue, adjusted EBITDA and adjusted EPS estimates: Exhibit 53: Expedia, Inc. CS Estimate Revisions 2Q15 2Q15 % % % Prior Current Δ Prior Current Δ Prior Current Δ Leisure Bookings % % % Egencia Bookings % % % Total Gross Bookings % % % Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.95 $ % $3.24 $ % $5.44 $ % The key focus metrics for the company remain the growth rates for Leisure Segment Gross Travel Bookings, Egencia Gross Travel Bookings, Net Revenue and Adjusted EBITDA: Internet 36

37 Exhibit 54: Expedia, Inc. Quarterly Leisure Segment Gross Travel Bookings and Year Over Year Growth US$ in millions % 17% 16% 13% 11% 15% 22% 31% 31% 31% 26% 20% -14% Q12A 3Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 40% 30% 20% 10% 0% -10% -20% Exhibit 55: Expedia, Inc. Quarterly Egencia Gross Travel Bookings and Year Over Year Growth US$ in millions % 37% 54% 48% 27% 20% 16% 17% 12% 14% 11% Q12A 3Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 4% 1Q15A 13% 2Q15E 60% 50% 40% 30% 20% 10% 0% Our Leisure segment gross travel booking estimate for 2Q15 is now at $10.0 billion, reflecting the divestment of elong as well as continued FX-driven headwinds. We do expect an acceleration in bookings for 2016 fueled by the Orbitz integration. Although less of a contributing factor for revenue, 2Q15 Egencia gross bookings stands at $1.5 billion, reflecting 13% year over year growth. Exhibit 56: Expedia, Inc. Quarterly Net Revenue and Year Over Year Growth US$ in millions % 27% 33% 28% 19% 20% 25% 24% 28% 24% 27% 33% Q12A 3Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 12% 2Q15E 35% 30% 25% 20% 15% 10% 5% 0% Exhibit 57: Expedia, Inc. Quarterly Adjusted EBITDA and Margin US$ in millions % 24% 19% 10% 16% 24% 21% Q12A 3Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 9% 1Q14A 17% 2Q14A 24% 3Q14A 18% 4Q14A -5% 1Q15A 25% 2Q15E 30% 25% 20% 15% 10% 5% 0% -5% -10% Accordingly, our revenue forecast for 2Q15 is $16.4 billion and adjusted EBITDA is at $323.2 million, reflecting 10% and 25% year over year growth respectively. Our estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Internet 37

38 Exhibit 58: Expedia, Inc. - Credit Suisse vs. Consensus Estimates 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA % % % Adjusted EPS $1.13 $ % $3.97 $ % $6.48 $ %, Bloomberg Valuation In-line with the valuation methodology we have used with the rest of the Internet sector, we have based our price target on discounted cash flow analysis, which suggests $102 (vs. prior $105). We have used a weighted average cost of capital of 11.5% and a terminal growth rate expectation of 3%. Exhibit 59: Expedia, Inc. -- Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA % Net Income % + Depreciation & Amortization % + Other Non-Cash Charges (Benefits) (22.9) Interest Expense (Income) (18.5) + Changes in Operating Assets & Liabilities = Unlevered Cash Flows % - Capital Expenditures % = Unlevered Free Cash Flows Y/Y % Change (35.2)% 130.7% (2.6)% (11.4)% (10.6)% (7.7)% Weighted Average Cost of Capital 11.5% Perpetual UFCF Growth Rate ("G") 3% 2015E NPV of Unlevered Free Cash Flows 6195 Present Value of Terminal Value 8505 Enterprise Value Off-Balance Sheet Assets (160) Adjusted Enterprise Value Year End Net Debt (Cash) 1012 Equity Value Diluted Shares Outstanding 133 Equity Value Per Share $102 Internet 38

39 Facebook Inc. FB Price (09 Jul 15): US$85.88, Rating: OUTPERFORM, Target Price: US$ Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) 12, , , ,794.4 EBITDA 8,484 10,786 15,844 21,150 Depr. & amort. (1,243) (2,084) (2,615) (3,291) EBIT (US$) 4,995 4,509 8,437 12,091 Net interest exp. (84) (28) (85) (132) Associates Other adj, PBT (US$) 4,911 4,481 8,352 11,958 Income taxes (1,971) (2,017) (2,506) (3,289) Profit after tax 2,940 2,464 5,847 8,670 Minorities Preferred dividends Associates & other 1,808 3,168 3,354 4,182 Net profit (US$) 4,748 5,631 9,201 12,852 Other NPAT adjustments (1,808) (3,168) (3,354) (4,182) Reported net income 2,940 2,464 5,847 8,670 Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT 4,995 4,509 8,437 12,091 Net interest (84) (28) (85) (132) Cash taxes paid Change in working capital (608) (415) (971) (830) Other cash & non-cash items 1,154 3,374 4,901 5,771 Cash flow from operations 5,457 7,440 12,283 16,899 CAPEX (1,831) (2,730) (3,345) (4,372) Free cash flow to the firm 3,626 4,709 8,938 12,527 Acquisitions (4,975) (257) Divestments Other investment/(outflows) 893 (2,085) Cash flow from investments (5,913) (5,072) (3,345) (4,372) Net share issue/(repurchase) 18 Dividends paid Issuance (retirement) of debt Other 804 (2,952) (9,934) (13,331) Cash flow from financing 822 (2,952) (9,934) (13,331) activities Effect of exchange rates (123) (123) Changes in Net Cash/Debt 243 (708) (996) (804) Net debt at start ,937 Change in net debt (243) Net debt at end ,937 2,741 Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents 4,315 7,685 17,620 30,950 Accounts receivable 1,678 2,297 3,458 4,520 Inventory Other current assets 7,677 9,888 10,150 10,475 Total current assets 13,670 19,871 31,227 45,946 Total fixed assets 3,967 5,397 6,878 8,684 Intangible assets and goodwill 21,910 39,024 38,273 37,548 Investment securities Other assets Total assets 40,184 64,897 76,983 92,782 Liabilities Accounts payable Short-term debt ,182 Other short term liabilities 932 1,328 1,705 2,173 Total current liabilities 1,424 1,991 2,929 3,944 Long-term debt ,214 1,559 Other liabilities 2,545 2,647 2,647 2,647 Total liabilities 4,088 5,341 6,789 8,150 Shareholders' equity 36,096 59,556 70,194 84,632 Minority interest Total equity & liabilities 40,184 64,897 76,983 92,782 Net debt (US$ m) ,937 2,741 Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) 2,671 2,857 2,896 2,924 CS adj. EPS (US$) Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT 78.1 (9.7) Net profit EPS Margins (%) EBITDA margin EBIT margin Pretax margin Net margin Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT P/E P/B Asset turnover ROE analysis (%) ROE stated-return on equity ROIC Interest burden Tax rate Financial leverage Credit ratios (%) Net debt/equity Net debt/ebitda Interest coverage ratio Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 39

40 Facebook Inc. (FB): Facebook is set to report its 2Q15 results on 29 July Our channel checks for this quarter have been relatively neutral, indicating pricing for app install ads (cost per install or "CPI") remained stable quarter on quarter following a strong 1Q15. As we have previously noted, it appears that Facebook continues to broaden its app install advertiser base to categories outside of gaming and improve targeting capabilities across its ad products. Checks also indicate that budgets allocated to Facebook's recently launched Premium Video product continues to grow at a healthy pace and its core Newsfeed ad product (exapp installs) is benefiting from strong advertiser adoption of its Custom Audiences targeting tool. Hence, despite the headwinds imposed by currency fluctuations, our estimates move higher as we were previously contemplating a more significant impact from FX. Changes to our estimates are as summarized below we have separated FX-driven impact versus overall to help investors isolate the nature of our estimates changes: Exhibit 60: Facebook, Inc. CS Estimate Revisions 2Q15 2Q15 % 2Q15 % % 2015 % % 2016 % Prior FX-Only Δ Current Δ Prior FX-Only Δ Current Δ Prior FX-Only Δ Current Δ Advertising Revenue % % % % % % Payments and Other Fees Revenue % % % % % % Total Revenue % % % % % % Adj EBITDA % % % % % % Adj EPS $0.43 $ % $ % $1.93 $ % $ % $3.17 $ % $ % Ultimately, near-term volatility should garner less focus versus the stacked product release slate for 2015 and beyond. For a more detailed discussion on a product by product basis, please refer to our report Time to Rebuild Your Facebook Models, which we published on 21 April 2014 and our 14 January 2015 follow-up piece We Layer in FAN Contribution into the Model. We continue to expect the product and subsequently growth momentum to pass from Facebook's current product portfolio to incremental roll outs such as Premium Video ads, its 3P mobile ad network (FAN), Instagram ads, Oculus and its money transmission service. Our Outperform rating rests on the following tenets: 1) FB will be able to drive LT revenue growth without a material lift in ad loads, 2) Street models are too conservative and underestimate the LT monetization potential of upcoming new products, and 3) optionality and upward bias to estimates do not contemplate contributions from multiple other products. Mobile Advertising For 2Q15 we have increased our advertising revenue forecast by ~2.4% to $3.6 billion, as we now contemplate $2.5 billion in mobile revenue. Our 2Q15 mobile revenue forecast is predicated on continued developer adoption of Facebook's app install ads primarily used as a tool to acquire additional players/users by promoting downloads of the mobile app. Our checks indicate that pricing for mobile app install ads (primarily on a cost-per-install or "CPI" basis) remained relatively stable quarter on quarter, indicating that app developers continue to view the ad product as a positive ROI offering when benchmarked against the expected life-time value (LTV) of each incremental paying user. Furthermore, our checks continue to indicate that a growing mix of advertisers utilizing app install ads are from verticals outside of gaming (e.g. productivity, travel, e-commerce apps etc.), which has helped push CPIs higher in recent quarters. We note that that a mix-shift away from gaming is a positive development for Facebook (and one that actually started to become more noticeable in 2Q14), as the expected LTV and corresponding rational CPI max-bid ceilings are often substantially higher for non-gaming developers. We note that our near-to-medium term mobile ad revenue forecast assumes that Facebook can successfully broaden its suite of ad products to help developers drive Internet 40

41 incremental engagement and paid conversions once an app has been installed. In October 2013, Facebook launched a new form of mobile app ads which allow developers to serve call-to-actions (e.g. "listen now", "play game", "watch video" etc.) to drive installs and reach unengaged app users, while also allowing advertisers to link an ad directly to a specific page within their respective apps (e.g. to the hotel listing page specific to a user's location within an installed travel app). FBX & Newsfeed Our checks indicate that direct response advertising remains strong on a seasonal basis increasing modestly quarter on quarter, but increasing at a healthy pace year over year on the back of stable app install ad CPIs, growing programmatic display ad budgets, and continued adoption of Facebook's custom audiences targeting tools that have led to better conversion rates and ad pricing. Furthermore, our checks indicate that budgets allocated to Facebook's recently launched Premium Video product continues to grow at a healthy pace. We note that ad volume for Facebook's Audience Network (FAN) remains in the low-single digits of overall volume and budgets, as Facebook has moderated the ramp of its mobile ad network for third party app publishers, following its initial launch in 3Q14. However, our checks that the ramp of monetization for Instagram has accelerated, as Facebook seems to be putting increased focus on its ad offerings for the photo-sharing app following a seemingly "back-burner" de-prioritization in earlier quarters. We believe this shift is likely a function of a growing number of competitive "experimental" ad products from brandoriented social platforms coming to market and motivating a scramble for advertisers' mind-share. Changes to Our Estimates While we have left our underlying longer-term growth estimates relatively unchanged, we have increased our near term estimates as we moderate the negative impact from currency fluctuations that will likely have a negative impact on Facebook's international business. Our quarterly estimates for Facebook are as shown below: Exhibit 61: Facebook, Inc. Quarterly Net Revenue and Year Over Year Growth US $ in billions % 40% 38% 53% 60% 63% 72% 61% 59% 49% 42% 32% Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 80% 70% 60% 50% 40% 30% 20% 10% 0% Exhibit 62: Facebook, Inc. Quarterly Adjusted EBITDA and Margin US $ in billions % 69% 70% 67% 58% 61% 64% 66% 65% 64% 57% 58% Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 80% 70% 60% 50% 40% 30% 20% 10% 0% For 2Q15, we have increased our revenue and adj. EBITDA estimates by 2.4% and 2.2% to $3.84 billion and $2.44 billion, respectively. For FY15, we have increased our revenue and adj. EBITDA estimates by 1.8% and 1.6% to $16.7 billion and $10.8 billion, Internet 41

42 respectively. We have also increased our FY16 estimates for both revenue and adj. EBITDA by 40bps. For FY15, we are expecting mobile ad revenue to grow ~51% year-over-year to $11.2 billion, representing 71% of Facebook's ad revenue, as new product initiatives such as Instagram and mobile video ads, as well as Facebook's recently launched Audience Network for third party mobile app developers, gain traction. Our estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Exhibit 63: Facebook, Inc. - Credit Suisse vs. Consensus Estimates 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.44 $ % $1.97 $ % $3.18 $ %, Bloomberg Valuation We utilize a discounted cash flow based valuation, in-line with the rest of our coverage universe, using a 10.5% weighted average cost of capital and a 3% terminal growth rate. As we have modestly lowered our near-term revenue projections, our end-of-2015 price target remains unchanged at $106. Exhibit 64: Facebook Inc. Discounted Cash Flow Analysis in millions, unless otherwise stated CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA % Net Income % Depreciation & Amortization % Other Non-Cash Charges (Benefits) % Interest Expense (Income) Changes in Operating Assets & Liabilities (489.2) (970.8) (830.5) (856.2) (847.2) (744.1) 8.8% Unlevered Cash Flows % Capital Expenditures % Unlevered Free Cash Flows % Y/Y % Change 29.9% 89.8% 40.2% 31.2% 29.4% 23.6% Weighted Average Cost of Capital Perpetual UFCF Growth Rate ("G") 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value = Enterprise Value Off-Balance Sheet Assets 0.0 = Adjusted Enterprise Value Year End Net Debt (Cash) (15738) = Equity Value / Diluted Shares Outstanding 2836 = Equity Value Per Share $106 Internet 42

43 Rocket Fuel Inc. FUEL Price (09 Jul 15): US$7.30, Rating: OUTPERFORM [V], Target Price: US$11.00 Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) EBITDA (3) (27) Depr. & amort. (24) (49) (54) (58) EBIT (US$) (16) (52) (13) 9 Net interest exp. (3) (6) (7) (6) Associates Other adj, (49) (49) (49) (51) PBT (US$) (69) (107) (69) (48) Income taxes 4 (9) Profit after tax (64) (116) (69) (48) Minorities Preferred dividends Associates & other Net profit (US$) (21) (70) (20) 3 Other NPAT adjustments (44) (47) (49) (51) Reported net income (64) (116) (69) (48) Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT (16) (52) (13) 9 Net interest (3) (6) (7) (6) Cash taxes paid Change in working capital 12 (8) (8) (7) Other cash & non-cash items Cash flow from operations (6) (44) CAPEX (55) (25) (20) (20) Free cash flow to the firm (62) (70) (9) 19 Acquisitions Divestments Other investment/(outflows) (8) (9) (7) (6) Cash flow from investments (55) (25) (20) (20) Net share issue/(repurchase) 117 Dividends paid Issuance (retirement) of debt Other (104) 44 9 Cash flow from financing activities Effect of exchange rates Changes in Net Cash/Debt (49) (26) 19 Net debt at start (87) (38) (12) (12) Change in net debt (19) Net debt at end (38) (12) (12) (32) Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents Accounts receivable Inventory Other current assets Total current assets Total fixed assets Intangible assets and goodwill Investment securities Other assets Total assets Liabilities Accounts payable Short-term debt Other short term liabilities Total current liabilities Long-term debt Other liabilities Total liabilities Shareholders' equity Minority interest Total equity & liabilities Net debt (US$ m) (38) (12) (12) (32) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) (0.56) (1.64) (0.46) 0.05 Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (1.67) (1.64) (0.22) 0.37 (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT (74.6) (168.5) Net profit (71.2) (114.0) EPS (213.0) (195.3) Margins (%) EBITDA margin (0.8) (5.6) EBIT margin (4.0) (10.8) (2.5) 1.6 Pretax margin (16.8) (22.4) (13.2) (8.5) Net margin (5.0) (14.6) (3.9) 0.5 Valuation metrics (x) EV/sales EV/EBITDA (84.2) (10.6) EV/EBIT (16.4) (5.7) (22.5) 30.7 P/E (13.1) (4.5) (16.0) P/B Asset turnover ROE analysis (%) ROE stated-return on (28.2) (43.7) (31.3) (22.1) equity ROIC (5.6) (27.2) (6.3) 5.0 Interest burden (5.3) Tax rate 6.2 (8.7) Financial leverage Credit ratios (%) Net debt/equity (12.2) (5.6) (5.6) (14.8) Net debt/ebitda (0.8) (0.8) Interest coverage ratio (5.3) (8.3) (1.9) 1.5 Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q1 (0.18) (0.60) (0.24) (0.10) EPS for Q2 (0.10) (0.43) (0.12) 0.00 EPS for Q3 (0.18) (0.44) (0.16) (0.04) EPS for Q4 (0.11) (0.18) Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 43

44 Rocket Fuel, Inc. (FUEL) Rocket Fuel should be reporting 2Q15 results around 4 August As we have noted before, we believe the set of circumstances that the company was forced to navigate in 2014 more specifically -1) greater budget controls toward agency trading desks, and 2) increased concerns on traffic quality stemming from bot-driven traffic are transitory and ultimately ask advertisers to make what is a less economically rational decision. We note that FUEL shares currently trading at ~0.8x EV to sales ex-media costs (or net revenue) and ~0.5x EV to gross revenue, and with muted expectations going into the quarter, we urge patient investors to remain with the story. Our Outperform rating is predicated on the belief that FUEL is positioned to continue to gain share in a secular growth segment (RTB) within online marketing as factors such as the fragmentation of online media as well as the increasing complexity from increased variety of connected devices are pushing marketer adoption of programmatic tools that work in real time to help simplify the process of purchasing ad inventory. Additionally, Rocket Fuel participates in a large addressable market as it facilitates spend across segments excluding search (display, social, mobile), which we believe was at ~$42 billion in 2012 and should reach $73 billion within the next few years. As such, we maintain our Outperform investment rating and $11 price target, and note that our forecast does not fully contemplate potential catalysts, which include: ARPU growth as a function of increased budget share of existing and new clients due to continued growth of programmatic Continued margin expansion as FUEL's algorithm outperforms competitors Integration of x+1 resulting in increased revenue and customer growth trajectory Optionality of mobile, video, and self-service, and licensing of technology via agency partnerships The key metrics for the company remain the growth of active customer base, aggregate customer ARPU, as well as revenue-less-media costs margin. Exhibit 65: Rocket Fuel, Inc. Active Customers and Year Over Year Growth US$ in thousands, unless otherwise stated % 111% 102% 130%131% 128%123% 84% 54% 34% 19% 6% Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 140% 120% 100% 80% 60% 40% 20% 0% Exhibit 66: Rocket Fuel, Inc. - Annual Aggregate ARPU and Year Over Year Growth US$ in thousands, unless otherwise stated % 25% 11% 7% 1% -7% -7% -10% -14% -15% -17% -10% Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% Our estimate for total active advertisers for 2Q15 stands at 1537 versus 1Q15's 1487 and 1444 of a year ago; while we project ARPU to decline by 10% year over year as the company continues to add smaller advertisers to its customer base. Internet 44

45 Exhibit 67: Rocket Fuel, Inc. Revenue and Year Over Year Growth % 144% 130% 137% 132% 113% 95% 70% 63% 63% 40% 29% Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 160% 140% 120% 100% 80% 60% 40% 20% 0% Exhibit 68: Rocket Fuel, Inc. Revenue ex Media Costs and Margin % 50% 56% 55% 58% 58% 60% 59% 58% 55% 56% 53% Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 70% 60% 50% 40% 30% 20% 10% 0% Our 2Q15 gross revenue forecast hence stands at $120 million, while our revenue less media cost forecast stands at $63.8 million versus a guidance range of $66 million to $69 million. CS estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Exhibit 69: Rocket Fuel, Inc. Credit Suisse vs. Consensus Estimates 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA (5.7) (2.7) % (19.2) % % Adjusted EPS ($0.43) ($0.42) -2.7% ($1.64) ($1.34) -22.2% ($0.46) ($0.66) 30.7%, Bloomberg Valuation In-line with the valuation methodology we have used with the rest of our coverage universe, we have based our target price on discounted cash flow, which suggests $11. We have used a weighted average cost of capital of 13% and a terminal growth rate expectation of 3%. Internet 45

46 Exhibit 70: Rocket Fuel, Inc. Discounted Cash Flow Analysis in millions, unless otherwise stated CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-20 EBITDA (19.2) Net Income (116.4) (68.7) (47.7) (13.2) Depreciation & Amortization Other Non-Cash Charges (Benefits) % + Interest Expense (Income) Changes in Operating Assets & Liabilities (8.2) (7.8) (7.4) (14.5) (7.6) (7.2) = Unlevered Cash Flows (38.1) Capital Expenditures = Unlevered Free Cash Flows (63.6) (2.6) Y/Y % Change -8.3% 95.9% % 64.0% 69.1% 29.4% Weighted Average Cost of Capital 13.0% 13% 13% 13% 13% 13% Perpetual UFCF Growth Rate ("G") 3.0% 3% 3% 3% 3% 3% 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value = Enterprise Value Off-Balance Sheet Assets 0.0 = Adjusted Enterprise Value Year End Net Debt (Cash) 17.9 = Equity Value / Diluted Shares Outstanding 49.4 = Equity Value Per Share $11 Internet 46

47 Google, Inc. GOOGL Price (09 Jul 15): US$544.65, Rating: OUTPERFORM, Target Price: US$(from ) Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) 52, , , ,506.5 EBITDA 21,097 21,862 26,917 32,371 Depr. & amort. (4,601) (5,307) (6,305) (7,484) EBIT (US$) 16,496 16,555 20,612 24,887 Net interest exp ,448 2,419 Associates Other adj, 184 (27) 1 1 PBT (US$) 17,259 17,331 22,060 27,307 Income taxes (4,229) (4,617) (5,601) (6,809) Profit after tax 13,030 12,714 16,459 20,498 Minorities Preferred dividends Associates & other 4,553 5,187 5,945 6,739 Net profit (US$) 17,583 17,901 22,404 27,237 Other NPAT adjustments (3,655) (4,133) (4,756) (5,391) Reported net income 13,928 13,767 17,648 21,846 Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT 16,496 16,555 20,612 24,887 Net interest ,448 2,419 Cash taxes paid Change in working capital 35 1,046 (499) (473) Other cash & non-cash items 4,983 6,947 7,839 8,762 Cash flow from operations 22,376 26,107 29,400 35,595 CAPEX Free cash flow to the firm 22,376 26,107 29,400 35,595 Acquisitions (4,888) (64) Divestments Other investment/(outflows) (16,167) (15,566) (11,271) (11,837) Cash flow from investments (21,055) (15,630) (11,271) (11,837) Net share issue/(repurchase) Dividends paid Issuance (retirement) of debt (18) (1,234) (999) Other (1,413) (0) Cash flow from financing (1,431) (389) activities Effect of exchange rates (433) (293) Changes in Net Cash/Debt (543) 9,794 18,129 23,758 Net debt at start (13,653) (13,110) (22,904) (41,033) Change in net debt 543 (9,794) (18,129) (23,758) Net debt at end (13,110) (22,904) (41,033) (64,791) Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents 18,347 26,908 44,038 67,797 Accounts receivable 9,383 9,899 11,454 13,036 Inventory Other current assets 52,955 54,749 55,185 55,652 Total current assets 80,685 91, , ,485 Total fixed assets 23,883 30,958 36,881 42,150 Intangible assets and goodwill 20,206 18,994 18,036 17,121 Investment securities Other assets 6,359 7,686 7,686 7,686 Total assets 131, , , ,441 Liabilities Accounts payable 1,715 2,305 2,622 2,971 Short-term debt 2,009 2,009 2,009 2,009 Other short term liabilities 13,081 13,525 14,700 15,927 Total current liabilities 16,805 17,839 19,331 20,907 Long-term debt 3,228 1, Other liabilities 6,600 7,390 7,390 7,390 Total liabilities 26,633 27,224 27,717 29,293 Shareholders' equity 104, , , ,148 Minority interest Total equity & liabilities 131, , , ,441 Net debt (US$ m) (13,110) (22,904) (41,033) (64,791) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT Net profit EPS Margins (%) EBITDA margin EBIT margin Pretax margin Net margin Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT P/E P/B Asset turnover ROE analysis (%) ROE stated-return on equity ROIC Interest burden Tax rate Financial leverage Credit ratios (%) Net debt/equity (12.5) (18.8) (28.2) (37.2) Net debt/ebitda (0.6) (1.0) (1.5) (2.0) Interest coverage ratio (28.5) (20.6) (14.2) (10.3) Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 47

48 Google, Inc. (GOOG) Emerging Business Lines to Drive Margin Stabilization and Eventual Expansion As we pass the midpoint of 2015 and with GOOGL shares underperforming versus the NASDAQ Composite we revisit our investment thesis for the year to see what catalysts can alter investor perception in the near to medium term. To that end, we bring up some of the more oft-cited pushback points against owning GOOGL shares and offer our rebuttal on what can change: 1. Margin Compression we believe the aggregated revenue contribution from both YouTube and Google Play to rise from 4% of Gross Revenue in 2010 to 24% by 2020, and gross margin expansion via scale at these two businesses will be the catalyst for near-to-medium-term margin stabilization and eventually to margin expansion 2. Lack of Free Cash Flow Growth Google's CapEx has risen from ~$3.3b in 2012 to ~$7.4b in 2013, and ~$10.8b in 2014 we believe the primary driver of this trend is smart phone penetration-driven increase in consumer demand for its services, but with that penetration approaching and surpassing 50% and Google likely investing to stay ahead of that demand, we submit that there is greater likelihood for CapEx stabilization and FCF growth resumption Overall, our investment thesis for GOOGL shares remains essentially unchanged, although we add some refinements: 1. Faster-than-expected narrowing of the mobile-desktop monetization gap this will be through a combination of the continued benefits from Enhanced Campaigns as well as a plethora of other products including app install and engagement ads 2. Moderation of increases to its capital expenditure following a multi-year investment cycle 3. Greater-than-expected contribution from Google's larger non-search business namely YouTube and Google Play Concurrent with this note, we have recalibrated our model on the following points: add greater granularity to the content acquisition costs for YouTube assume all of the incremental revenue comes at 50-60% revenue share with the content owner, and decrease Google Play revenue dollar assumption for 2014 from ~$5b to ~$4b although our growth trajectory projection remains essentially unchanged. Exhibit 71: Google, Inc. CS Estimate Revisions USD in millions, unless otherwise stated 2Q15 2Q15 % % % Prior Current Δ Prior Current Δ Prior Current Δ Google Web Sites % % % Google Network Sites % % % Licensing and Other % % % Gross Revenue % % % Traffic Acquisition Costs % % % Net Revenue % % % Adjusted EBITDA % % % Pro Forma EPS $6.15 $ % $26.40 $ % $32.08 $ % This does result in modest decreases to near-term estimates offset by increases to 2016 and beyond to drive an increase in our price target from $690 to $700 we maintain our Outperform rating and GOOGL shares remain one of our favorite ideas for the Internet sector. Internet 48

49 YouTube and Google Play These Businesses Will Account for 15% of Total Gross Revenue in 2015 As Google provides minimal disclosure around the size of its YouTube business (folded under Website revenue) as well as Google Play it remains a difficult exercise to pinpoint the current revenue run rate and growth trajectory. Little over a year ago, we elected to tackle this problem by completely rebuilding our Google model to better account for its new businesses (particularly at the time Google Play). This entailed going back nearly ten years in Google's public company history/disclosure and building forward by layering on (as well as sun setting) contributions from various businesses over the years. Exhibit 72: Google, Inc. Increasing Contribution from YouTube and Google Play 15% of Gross in 2015, 24% by 2020 USD in millions Owned & Operated Search A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E 2019E 2020E YouTube & Google Play Network & Other We believe that both YouTube a well as Google Play will start to exert a more meaningful impact on consolidated operating margin as they transition from being loss-generating to breakeven to profitable businesses in the near-to-medium term. While this may not have mattered so much five years ago when Google Play hardly existed as a business and the combination of these two accounted for less than five per cent of Gross Revenue, we estimate these two will account for 15% in 2015 and 24% by 2020 (19% and 28% respectively of Net Revenue). Adding Greater Granularity for YouTube in Our Model Following management commentary on the 1Q15 earnings call referencing growing revenue contribution from YouTube and also in context of a broader online video advertising market that is showing signs of greater brand advertiser adoption - we decided to revisit our product-by-product revenue and gross margin forecasts. The net result of our analysis is a more detailed set of estimates driving our YouTube revenue and profitability forecasts leaving us increasingly confident that YouTube can sustain an above-market growth trajectory as in-stream video ads continue to drive incremental revenue on top of YouTube's legacy display business. Most importantly, our discussions with various industry experts and executives consistently left us with a relatively uniform underlying message: 1. YouTube is vastly under-monetized with ad-loads of between 10% - 20% 2. Facebook's video ad offering is more likely to help migrate brand advertiser dollars online than serve as a competitive threat to YouTube Internet 49

50 3. YouTube's advertising team has been increasingly aggressive over the last year and there are a number of "low-hanging fruit" initiatives that can drive near-term monetization While we acknowledge that Google provides little disclosure around the size of YouTube's revenue contribution, which is segmented under Websites revenue along with Owned & Operated Search, both our checks and analysis have led us to believe that YouTube will contribute ~$6 billion in gross revenue by 2015 and has been growing by ~25% to 35% annually as in-stream (pre-roll and mid-roll) video ad units (e.g. TrueView) ramp. Exhibit 73: Google, Inc. CS YouTube Gross Revenue Estimate by Product USD in millions In-Stream Display A 2014A 2015E 2016E 2017E 2018E 2019E 2020E YouTube Display After acquiring YouTube in 2006, Google continued to ramp monetization via various display formats that were for the most part specific to desktop usage these included: Standard display ads adjacent to videos In-video Overlay ads Homepage Custom Mastheads TrueView Search ads We believe standard display and in-video overlay ads accounted for the vast majority of YouTube's display revenue - likely scaling in-line with both desktop user engagement and broader display ad pricing trends. Internet 50

51 Exhibit 74: Google, Inc. YouTube In-Video Overlay and Standard Display Ad Creatives Source: YouTube As of 4Q11, Google disclosed that its display business was operating at a $5 billion annualized revenue run-rate, up from $2.5 billion in 3Q10 we note that Google's owned & operated display business included at the time Google Finance, Gmail and Zagat inventory, in addition to display ads served across its various other properties. We estimate that the YouTube legacy display business will reach ~$3.2 billion or about half of YouTube's total revenue in 2015 driven by International usage growth despite continued migration of engagement from desktop to mobile. As it stands to reason that YouTube's display business on mobile is less robust, we forecast growth at a 3% CAGR over the next five years. YouTube In-Stream/TrueView Video Ads: Google launched TrueView ads in November 2010, allowing advertisers to purchase instream video ads on YouTube on a cost-per-view (CPV) basis. Viewers have the option to skip these ads on YouTube after the first five seconds and advertisers are only charged for an ad if the viewer elects to continue watching the ad for more than 30 seconds (i.e. does not press the skip ad button) or the duration of the entire ad (whichever is shorter). Exhibit 75: Google, Inc. YouTube TrueView In-Stream Video Ad Creative Source: YouTube, Soulpancake (Creative Agency) Internet 51

52 In 2013, Google disclosed that on average between 15% to 45% of TrueView in-stream viewers elected not to skip a video ad and further that average click-through rates (CTR) for TrueView ads were 3% to 4%. As we noted earlier, given our expectation for a relatively slower pace of growth for the legacy display ad unit, this will by the end of this year account for a little less than half of YouTube's total revenue as it shows: 1) growing ad inventory as a result of strong mobile usage trends, 2) increased monetization via higher ad loads for TrueView, 3) growth in pricing as incremental ad dollars come online and targeting tools improve advertiser ROI. We forecast YouTube's in-stream video ad business will grow at a 35% CAGR over the next five years to reach ~$13 billion by 2020 accounting for 78% of YouTube's revenue. YouTube's Gross Margin Should Expand as Revenue Grows Faster Than Bandwidth Costs We believe there are three primary cost drivers for YouTube Bandwidth more specifically the cost associated with sending user requested content from its data centers to an ISP Content Acquisition Costs (CAC) this includes revenue share agreements with exclusive content partners, multi-channel networks (MCNs), and individual content creators Sales and marketing costs associated with selling YouTube inventory to advertisers and agencies We note that Bandwidth and CAC are flowing through Google's Cost of Revenue ex-tac. As the increase in Bandwidth costs should be tethered to user engagement growth as opposed to revenue growth, as we enter a multi-year cycle of increased contribution from higher value TrueView ads, it stands to reason that Google should be realizing gross margin expansion. Our conversations with the company suggest that YouTube's user engagement continues to grow very rapidly for both the developed as well as emerging markets as smart phone screen sizes get larger which in turn augurs a better consumer experience. Google Play Likely Smaller Than We Previously Thought but Still Growing Very Quickly We have moderated our near-term estimates for Google Play as we reevaluate our assumptions given a higher indexing to those regions with the highest FX headwinds. However, as Google laps the largest of the currency impact beginning in 4Q15, we expect the business to reaccelerate. And while Google has not specifically disclosed the nature of its revenue share agreements with its telco partners, we believe that its strategy to gain distribution for this product should not have materially diverged from what it has done to expand its search franchise globally. In other words, we believe Google expanded Play by offering its telco partners large but relatively fixed economics for revenue share. As such, we believe that as Google Play's volume and revenue continue to scale it is poised to exhibit significant incremental profit dollars as it grows past the breakeven point. And as we have noted in the past, Google reports Play revenue on a net basis in other words just the 30% take from publishers. Hence the only other operating costs are the credit card fees. We estimate that Google's Play business will generate ~$5.1 billion in revenue in FY15 which we expect to grow at a ~22% CAGR over the next five years to reach $14 billion by FY20. Our updated projections for Google Play are as shown below: Internet 52

53 Exhibit 76: Google, Inc. CS Google Play Revenue Estimate by Region USD in millions ROW UK US A 2014A 2015E 2016E 2017E 2018E 2019E 2020E 2Q15 Channel Checks Suggest Paid Search Budgets Continue To Grow On Mobile Volume Heading into the 2Q15 results, our checks suggest continued net advertising revenue growth, increasing low-to-mid single percentage points quarter on quarter and increasing ~15% year over year, driven by the following factors: 1) healthy budget allocations to paid search across verticals, with strength in the travel vertical as a result of increased marketing efforts by hotel chains across regions, offset by seasonally weak retail search budgets 2) continued strength in paid click volume as a result of incremental traffic from mobile, relatively stable CPCs despite FX movements and seasonality, 4) an industry backdrop where both engagement and advertiser ROI continues to grow with little indication that still evolving channels such as programmatic and social display are cannibalizing paid search budget allocations. Strong Volume From Mobile Driving Growth Our conversations with advertisers continued to suggest increases to their paid search budgets at a healthy rate in 2Q15, despite FX fluctuation, with large multi-national advertisers stepping in to take advantage of depressed keyword pricing in USD terms. Overall, our checks show continued directional uptick in budgets due to strong paid click volume growth and relatively stable CPCs, although we continue to view the reported Paid Click/CPC metrics provided by the company as ultimately ambiguous, as factors such as the continuing mix shift between desktop and mobile volume hinder visibility into the metric. We however acknowledge that optics on this metric drives sentiment for GOOG shares. And our quarterly estimates for Google's disclosed revenue lines are as shown below: Internet 53

54 Exhibit 77: Google, Inc. Quarterly Website Revenue and Year Over Year Growth US $ in billions % 18% 18% 18% 22% 22% 21% 23% 20% 18% 14% Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 9% 2Q15E 25% 20% 15% 10% 5% 0% Exhibit 78: Google, Inc. Quarterly Network Revenue and Year Over Year Growth US $ in billions % 19% 12% 7% 3% 0% Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 4% 1Q14A 7% 2Q14A 9% 3Q14A 6% 5% 4% 4Q14A 1Q15A 2Q15E 25% 20% 15% 10% 5% 0% Our Google Website revenue at $11.9 billion for 2Q15 is contemplating a modest acceleration for the US O&O search to 14.5% growth (vs. our estimate of 13.3% for 1Q15), UK O&O search to 10% growth on an FX-neutral basis (vs. our estimate of 11.8% in 1Q15), and 22% on an FX-neutral basis for ROW O&O search (vs. our estimate of 23.9% in 1Q15). As for Network, we continue to assume modest deceleration, with UK to grow ~3% YOY on an FX-neutral basis. Exhibit 79: Google, Inc. Quarterly Licensing and Other Revenue and Year Over Year Growth US$ in billions % 102% 150% 138% 85% 99% 160% 140% 120% 100% 80% Exhibit 80: Google, Inc. Quarterly Gross Revenue and Year Over Year Growth US$ in billions % 22% 22% 22% 20% 19% 20% 19% 19% 15% 12% 25% 20% 15% % 48% 53% 50% 13% 7% % 40% 20% 0% % % 5% 0% 2Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A 3Q12A 2Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A 3Q12A As for Google's L&O line, we believe Google Play grew ~38% in 1Q15 on an FX-neutral basis and our estimate for 2Q15 conservatively reflects that rate to be at ~37%. All of the above adds up to Gross Revenue of $17.2 billion for 2Q15. Internet 54

55 Exhibit 81: Google, Inc. Quarterly Net Revenue and Year Over Year Growth US $ in billions % 40% 35% 60% 50% 40% Exhibit 82: Google, Inc. Quarterly Adjusted EBITDA and Margin US $ in billions % 46% 47% 45% 45% 43% 50% 49% 50% 47% 49% 46% 60% 50% 40% 8 30% 4 30% % 15% 14% 14% 11% 11% 9% 7% 5% % 10% 0% % 10% 0% 2Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A 3Q12A 2Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A 3Q12A And lastly our estimate for Net Revenue given sequentially in-line TAC rate projection stands at $13.8 billion and Adjusted EBITDA is $6.4 billion. CS estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Exhibit 83: Google Inc. - Credit Suisse vs. Consensus Estimates 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA % % % Adjusted EPS $6.05 $ % $25.88 $ % $32.14 $ %, Bloomberg Valuation As we have made modest changes to our longer-term advertising estimates, our DCFderived price target, which uses a 10.5% weighted average cost of capital and 3% terminal growth rate increases to $700 from $690 prior. Internet 55

56 Exhibit 84: Google, Inc. - Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA % Net Income % Depreciation & Amortization % Other Non-Cash Charges (Benefits) % Interest Expense (Income) (775.8) (1448.3) (2419.9) (3699.2) (5287.6) (7201.3) Changes in Operating Assets & Liabilities (499.3) (473.2) (504.3) (546.0) (544.3) Unlevered Cash Flows % Capital Expenditures % Unlevered Free Cash Flows % Y/Y % Change 32.1% 18.5% 27.9% 22.4% 18.8% 16.2% Weighted Average Cost of Capital 10.5% Perpetual UFCF Growth Rate ("G") 3.0% 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets 0 Adjusted Enterprise Value Year End Net Debt (Cash) (73266) Equity Value Diluted Shares Outstanding Equity Value Per Share $698 Internet 56

57 Groupon Inc. GRPN Price (09 Jul 15): US$4.90, Rating: NEUTRAL [V], Target Price: US$8.00 Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) 3, , , ,051.4 EBITDA Depr. & amort. (135) (135) (141) (143) EBIT (US$) Net interest exp. (33) (18) 3 3 Associates Other adj, (123) (146) (145) (158) PBT (US$) (48) Income taxes (16) (1) (37) (47) Profit after tax (64) Minorities (2) (4) (4) (4) Preferred dividends Associates & other Net profit (US$) Other NPAT adjustments Reported net income Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT Net interest (33) (18) 3 3 Cash taxes paid Change in working capital (145) Other cash & non-cash items Cash flow from operations (13) CAPEX (88) (77) (78) (78) Free cash flow to the firm (101) Acquisitions (131) (1) Divestments Other investment/(outflows) (37) (0) Cash flow from investments (257) (78) (78) (78) Net share issue/(repurchase) (147) (31) Dividends paid Issuance (retirement) of debt (7) (4) Other 239 (38) Cash flow from financing 85 (73) activities Effect of exchange rates (40) (4) Changes in Net Cash/Debt (224) Net debt at start (1,240) (1,017) (1,181) (1,509) Change in net debt 224 (165) (328) (378) Net debt at end (1,017) (1,181) (1,509) (1,887) Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents 1,017 1,181 1,509 1,887 Accounts receivable Inventory Other current assets Total current assets 1,401 1,984 2,375 2,810 Total fixed assets Intangible assets and goodwill Investment securities Other assets Total assets 2,228 2,450 2,782 3,157 Liabilities Accounts payable Short-term debt Other short term liabilities 1,312 1,307 1,421 1,521 Total current liabilities 1,326 1,335 1,453 1,555 Long-term debt Other liabilities Total liabilities 1,463 1,528 1,672 1,801 Shareholders' equity ,106 1,351 Minority interest Total equity & liabilities 2,228 2,450 2,782 3,157 Net debt (US$ m) (1,017) (1,181) (1,509) (1,887) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (0.15) (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT (45.0) Net profit (0.7) 30.8 EPS (2.7) 25.8 Margins (%) EBITDA margin EBIT margin Pretax margin (1.5) Net margin Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT P/E P/B Asset turnover ROE analysis (%) ROE stated-return on equity ROIC (57.1) (78.0) (29.7) (35.4) Interest burden (0.44) Tax rate (32.6) Financial leverage Credit ratios (%) Net debt/equity (132.9) (128.1) (135.9) (139.2) Net debt/ebitda (4.2) (3.5) (4.1) (4.4) Interest coverage ratio (88.0) (90.2) Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q1 (0.02) EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 57

58 Groupon, Inc. (GRPN) We remain on the sidelines on GRPN shares as it is not entirely clear to us that it will be able to sustain what are comparatively high take rates versus other marketplaces or lead generation channels for local businesses. Granted in the near term the likely competitors in the form of Facebook and/or Google have yet to exert a meaningful impact on commission rates but we feel that it is only a matter of time before product innovations arrive to help advertisers better and more cheaply target consumers, as Local remains one of the lowest online-penetrated verticals. We have not made material changes to the take rate and FX-neutral growth projections for bookings. We maintain our Neutral stance on GRPN shares and our price target remains at $8 as we flow through the ongoing moves of foreign currencies. Factors can push us to adopt more of a constructive investment stance on GRPN shares essentially focus on improved demand generation against the supply base it has already assembled: 1. Greater traction in the local segment through mobile offerings and Page product. 2. Greater consumer engagement and adoption as company's Pull initiatives gain traction. 3. Margin expansion in the goods business through logistics optimization Changes to our estimates are as summarized below: Exhibit 85: Groupon, Inc. CS Estimate Revisions 2Q15 2Q15 % % % Prior Current Δ Prior Current Δ Prior Current Δ Total Gross Billings % % % % Commission 49.1% 49.2% 9 bps 49.8% 50.0% 16 bps 50.4% 50.7% 22 bps Total Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.06 $ % $0.28 $ % $0.28 $ % KPIs for Groupon remain Gross Billings, Net Revenue, the implied take rate, and gross profit dollars. Exhibit 86: Groupon, Inc. Gross Billings and Year Over Year Growth US$ in millions % 38% 5% 24% 4% 10% 10% 5% 29% 29% 39% 31% -15% -17% Q12A 2Q12A 3Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15E 2Q15E 120% 100% 80% 60% 40% 20% 0% -20% -40% Exhibit 87: Groupon, Inc. Net Revenue and Year Over Year Growth US$ in millions % 45% 32% 30% 8% 7% 5% 26% 27% 23% 20% 20% -1% -1% Q12A 2Q12A 3Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15E 2Q15E 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% Internet 58

59 Our gross billings estimate for 2Q15 stands at $1.52 billion, reflecting 17% year over year decline given continued FX headwind. Our Revenue estimate stands at $745 million versus guidance of $700 million to $750 million. Our Adjusted EBITDA estimate for 2Q15 is now $72.8 million versus guidance range of $55 to $75 million. Exhibit 88: Groupon, Inc. Gross Profit Dollars and Year Over Year Growth US$ in millions % 28% 7% -10% -14% -11% -7% 6% 2% 1% 6% 4% -10% -9% Q12A 2Q12A 3Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15E 2Q15E 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% -20% Exhibit 89: Groupon, Inc. Adjusted EBITDA and Year Over Year Growth US$ in millions % 15% 12% 5% 12% 13% 10% 9% Q12A 2Q12A 3Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 5% 1Q14A 8% 2Q14A 9% 8% 10% 10% 3Q14A 4Q14A 1Q15E 2Q15E 16% 14% 12% 10% 8% 6% 4% 2% 0% CS estimates versus consensus for 2Q15, FY15 and FY16 are as shown below: Exhibit 90: Groupon, Inc. Credit Suisse Estimates vs. Consensus 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.06 $ % $0.29 $ % $0.28 $ %, Bloomberg Valuation In-line with the valuation methodology we have used with the rest of the Internet sector, we have based our 12-month price target on discounted cash flow, which suggests $8. We have used a weighted average cost of capital of 13.5% and a terminal growth rate expectation of 3%. Internet 59

60 Exhibit 91: Groupon, Inc. Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA % Net Income % Depreciation & Amortization Other Non-Cash Charges (Benefits) % Interest Expense (Income) (18.5) Changes in Operating Assets & Liabilities Unlevered Cash Flows % Capital Expenditures % Unlevered Free Cash Flows % Y/Y % Change (322.4)% 46.9% 15.6% (14.4)% 8.0% 9.2% Weighted Average Cost of Capital 13.5% Perpetual UFCF Growth Rate ("G") 3.0% 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets Adjusted Enterprise Value Year End Net Debt (Cash) (1181.4) Equity Value Diluted Shares Outstanding Equity Value Per Share $8 Internet 60

61 InterActiveCorp IACI Price (09 Jul 15): US$79.88, Rating: NEUTRAL, Target Price: US$72.00 Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) 3, , , ,775.7 EBITDA Depr. & amort. (119) (117) (103) (80) EBIT (US$) Net interest exp. (56) (56) (56) (56) Associates Other adj, (52) 7 PBT (US$) Income taxes (35) (104) (188) (229) Profit after tax Minorities Preferred dividends Associates & other Net profit (US$) Other NPAT adjustments Reported net income Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT Net interest (56) (56) (56) (56) Cash taxes paid Change in working capital (62) Other cash & non-cash items (7) (64) Cash flow from operations CAPEX 117 (59) (67) (73) Free cash flow to the firm Acquisitions (460) (62) Divestments 80 6 Other investment/(outflows) (3) 3 Cash flow from investments (440) (112) (67) (73) Net share issue/(repurchase) (200) Dividends paid (97) (29) Issuance (retirement) of debt Other 16 (20) Cash flow from financing (81) (249) activities Effect of exchange rates (13) Changes in Net Cash/Debt (110) (23) Net debt at start (20) (331) Change in net debt (443) (493) Net debt at end (331) (824) Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents ,411 1,904 Accounts receivable Inventory Other current assets Total current assets 1,554 1,620 2,063 2,580 Total fixed assets Intangible assets and goodwill 2,247 2,151 2,119 2,118 Investment securities Other assets Total assets 4,275 4,310 4,717 5,227 Liabilities Accounts payable Short-term debt Other short term liabilities Total current liabilities Long-term debt 1,080 1,080 1,080 1,080 Other liabilities Total liabilities 2,282 2,285 2,331 2,412 Shareholders' equity 1,992 2,025 2,386 2,814 Minority interest 1 Total equity & liabilities 4,275 4,310 4,717 5,227 Net debt (US$ m) (331) (824) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT (11.1) (14.8) Net profit (16.0) (27.9) EPS (37.7) Margins (%) EBITDA margin EBIT margin Pretax margin Net margin Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT P/E P/B Asset turnover ROE analysis (%) ROE stated-return on equity ROIC Interest burden Tax rate Financial leverage Credit ratios (%) Net debt/equity (13.9) (29.3) Net debt/ebitda (0.5) (1.2) Interest coverage ratio Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 61

62 InterActiveCorp (IACI) The announcement of a planned Match IPO in 4Q15 did not come in as a surprise as investors have understood that this was in the works as management for the Match Group was separately appointed some time ago, and the only uncertainty on the event was the timing. At the meantime, we maintain our Neutral rating and $72 price target objective on IACI shares. Our fundamental expectations have not changed and the following three factors could lead to a more positive investment stance. 1. Greater-than-expected value creation at Tinder, which has just started to monetize its user base in 1Q15 2. Greater value creation in still nascent products (e.g. DailyBurn, Tutor), as well as the recovery of HomeAdvisor and the continued ramp of Vimeo 3. Faster-than-expected recovery of IAC's Search business following more than a year of declines The key performance indicators for investors to focus on remain segment revenue growth and EBITDA contributions from IACI's Search & Applications and Match group businesses. Exhibit 92: InterActiveCorp Search & Applications Revenue and Year Over Year Growth US$ in millions Exhibit 93: InterActiveCorp Search & Applications EBITDA and Margin US$ in millions % 46% 43% 50% % % 23% 40% 30% % 22% 20% 25% 25% 24% 24% 23% 21% 23% 24% 23% 21% 20% 25% 20% % 10% 9% 0% -3% -4% -8% -7% -10% % 10% 0% -10% -20% % 10% 5% 0% 2Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A 3Q12A 2Q12A 1Q12A 2Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A 3Q12A 2Q12A 1Q12A We are expecting Search & Applications query volume to continue to deteriorate in 2Q15 as IAC continues to navigate through Ask changes and experiment with marketing spends. Our 2Q15 revenue estimate for Search & Applications hence stands at $354.8 million vs. 1Q14's $382.9 million, down 10% year over year. As such, our adjusted EBITDA estimate of $71.4 million reflects a relatively flat ~20% segment margin vs. 1Q15's 21%. Internet 62

63 Exhibit 94: InterActiveCorp Match Revenue and Year Over Year Growth US$ in millions % 53% 35% 16% 19% 15% 15% 15% 11% 11% 12% 13% 9% 8% Q12A 2Q12A 3Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 60% 50% 40% 30% 20% 10% 0% Exhibit 95: InterActiveCorp Match EBITDA and Margin US$ in millions % 36% 39% 25% 34% 34% 39% 22% 31% 27% 36% 11% 24% Q12A 2Q12A 3Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% As for Match, our revenue estimate contemplates continued sequential growth to $254.5 million vs. 1Q15's $239.2 million; adjusted EBITDA is correspondingly at $61.7 million for 2Q15 given management comments on continued marketing spend in 2Q15 and $9 million non-recurring cost. Our estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Exhibit 96: InterActiveCorp Credit Suisse vs. Consensus Estimates 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.43 $ % $2.79 $ % $3.94 $ %, Bloomberg Valuation In-line with the valuation methodology we have used with the rest of our coverage universe, we have based our target price on DCF, which remains $72. We have used a weighted average cost of capital of 12% and a terminal growth rate expectation of 3%. Internet 63

64 Exhibit 97: InterActiveCorp Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA % Net Income % Depreciation & Amortization % Other Non-Cash Charges (Benefits) Interest Expense (Income) (56.2) (56.1) (56.1) (54.1) (31.8) (31.8) Changes in Operating Assets & Liabilities % Unlevered Cash Flows % Capital Expenditures % Unlevered Free Cash Flows % Y/Y % Change (28.1)% 73.4% 12.8% 15.0% 17.4% 9.8% Weighted Average Cost of Capital 12.0% Perpetual UFCF Growth Rate ("G") 3.0% 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets 0.0 Adjusted Enterprise Value Year End Net Debt (Cash) (93.4) Equity Value Diluted Shares Outstanding 87.2 Equity Value Per Share $72 As we have noted earlier, the following shows our discounted cash flow analysis for Match on a stand-alone basis: Exhibit 98: InterActiveCorp Match Segment Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA % Net Income % Depreciation & Amortization % Other Non-Cash Charges (Benefits) % Interest Expense (Income) Changes in Operating Assets & Liabilities Unlevered Cash Flows % Capital Expenditures % Unlevered Free Cash Flows % Y/Y % Change 8.3% 47.3% 15.0% 14.1% 11.6% 10.7% Weighted Average Cost of Capital 12.0% Perpetual UFCF Growth Rate ("G") 3.0% 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets Adjusted Enterprise Value Year End Net Debt (Cash) Equity Value Diluted Shares Outstanding 87.2 Equity Value Per Share $49 We have used the same weighted average cost of capital at 12% and terminal growth rate of 3%. Further, we have assumed no contribution to free cash flow from the growth in deferred revenue. Internet 64

65 King Digital Entertainment PLC KING Price (09 Jul 15): US$14.66, Rating: OUTPERFORM, Target Price: US$20.00 Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) 2, , , ,011.8 EBITDA Depr. & amort. (15) (34) (37) (41) EBIT (US$) Net interest exp. Associates Other adj, PBT (US$) Income taxes (204) (159) (142) (146) Profit after tax Minorities Preferred dividends Associates & other (5) Net profit (US$) Other NPAT adjustments (190) (132) (129) (134) Reported net income Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT Net interest Cash taxes paid Change in working capital Other cash & non-cash items (87) Cash flow from operations CAPEX (31) (19) (20) (21) Free cash flow to the firm Acquisitions (18) (45) Divestments Other investment/(outflows) (10) (16) (20) (21) Cash flow from investments (59) (79) (40) (42) Net share issue/(repurchase) 329 Dividends paid (364) (298) Issuance (retirement) of debt Other 11 (113) Cash flow from financing (23) (412) activities Effect of exchange rates (14) Changes in Net Cash/Debt Net debt at start (409) (964) (1,163) (1,743) Change in net debt (555) (199) (580) (605) Net debt at end (964) (1,163) (1,743) (2,348) Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents 964 1,163 1,743 2,348 Accounts receivable Inventory Other current assets Total current assets 1,296 1,441 2,028 2,642 Total fixed assets Intangible assets and goodwill Investment securities Other assets Total assets 1,442 1,604 2,193 2,809 Liabilities Accounts payable Short-term debt Other short term liabilities Total current liabilities Long-term debt Other liabilities Total liabilities Shareholders' equity 969 1,047 1,608 2,185 Minority interest Total equity & liabilities 1,442 1,604 2,193 2,809 Net debt (US$ m) (964) (1,163) (1,743) (2,348) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales 20.0 (13.3) (1.5) 4.2 EBIT 1.1 (21.8) (0.6) 2.5 Net profit 15.9 (23.7) (1.3) 3.0 EPS 16.5 (24.1) (3.2) 1.0 Margins (%) EBITDA margin EBIT margin Pretax margin Net margin Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT P/E P/B Asset turnover ROE analysis (%) ROE stated-return on equity ROIC 11,633.7 (383.9) (333.7) (283.3) Interest burden Tax rate Financial leverage Credit ratios (%) Net debt/equity (99.5) (111.0) (108.4) (107.4) Net debt/ebitda (1.0) (1.6) (2.3) (3.0) Interest coverage ratio Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 65

66 King Digital Entertainment PLC (KING) We note that the stock call for KING shares is highly contingent upon the decay curve for Candy Crush Saga, which we continue to model to be down ~50% year over year, every year until As for Candy Crush Soda, we have conservatively modeled 1Q15 as essentially the peak MAU quarter and for that title to also be down sequentially and year over year on a go-forward basis. Additionally, we continue to model that for the ~5 or so new games KING is to release every year going forward two out of the five are commercial failures and for the remaining three to reach that attained by Bubble Witch 2 in other words, no further hits but rather singles and doubles. We would note the KING development team's ability to generate another hit in Candy Crush Soda Saga should suggest that we should not be taking such a conservative stance on our future game releases, but we also feel that KING shares present an interesting opportunity even with what are likely low estimates. Hence we maintain our Outperform rating and our price target objective remains at $20. As we survey the performances for King's major contributing games, Candy Crush Saga has remained stable in the ~#4 position on ios in the US and Western Europe. While that is down from an average position of ~3 from 1Q15 Candy Crush Soda Saga with an average position of 5 on ios and 3 on Google Play in the US which should offset the downward move from its sister title. KING now has two games firmly entrenched in the top 5 on both ios and Google Play in its highest monetizing geographies which we view as a bullish sign for FY15. However we continue to stress the limitations of this data given that this says nothing about the absolute gross booking dollars generated but rather the relative rankings. We have therefore maintained our expectations for King's underlying metrics: Exhibit 99: King Digital Entertainment PLC -- MAUs and Year Over Year Growth In millions % 509% 700% 600% 500% 400% Exhibit 100: King Digital Entertainment PLC -- MUUs and Year Over Year Growth In millions % 607% 900% 800% 700% 600% 500% % 300% % % 37% 31% 14% -9% Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 200% 100% 0% -100% % 78% 29% 17% 3% -18% Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 300% 200% 100% 0% -100% We have modeled in a sequential decrease in monthly active users as well as monthly unique users the underlying assumption here is that users are migrating to new games as opposed to staying around and playing the older games. Internet 66

67 Exhibit 101: King Digital Entertainment PLC -- MUPs and Conversion Rate In millions 14 6% Exhibit 102: King Digital Entertainment PLC -- MGABPPU and Year Over Year Growth US$ $25 36% 40% % 4.01% 3.38% 3.02% 2.49% 2.34% 2.34% 2.47% 5% 4% 3% 2% $20 $15 $10 4% 1% 26% 26% 31% 20% 35% 30% 25% 20% 15% 10% 5% Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 1% 0% $5 $0-5% $16.62 $17.27 $18.02 $19.54 $20.92 $23.42 $23.64 $ Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 0% -5% -10% We have modeled a slight sequential uptick in in conversion rate. However, this is an output metric and more of a result of the decrease to our user base assumptions and a corresponding decrease in the number of MUPs. Given the casual nature of Candy Crush gameplay we have modeled in a drop-off in MGABPPU. Our gross booking estimate is hence $490 million versus guidance of $490 to $520 million for 2Q15.. CS estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Exhibit 103: King Digital Entertainment PLC - Credit Suisse vs. Consensus Estimates 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.39 $ % $1.79 $ % $1.72 $ %, Bloomberg Valuation In-line with the valuation methodology we have used with the rest of our coverage universe, we have based our target on DCF, which suggests $20. We have used a weighted average cost of capital of 13% and a terminal growth rate expectation of 0%. Internet 67

68 Exhibit 104: King Digital Entertainment PLC -- Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA Net Income Depreciation & Amortization Other Non-Cash Charges (Benefits) Interest Expense (Income) (0.6) (1.7) (2.5) (3.2) (3.9) (4.7) Changes in Operating Assets & Liabilities Unlevered Cash Flows Capital Expenditures Unlevered Free Cash Flows Y/Y % Change 5.3% (13.0)% 4.2% (2.1)% (1.3)% 0.0% Weighted Average Cost of Capital 13.0% Perpetual UFCF Growth Rate ("G") 0.0% 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets 0.0 Adjusted Enterprise Value Year End Net Debt (Cash) (1162.9) Equity Value Diluted Shares Outstanding Equity Value Per Share $20 Internet 68

69 LendingClub Inc. LC Price (09 Jul 15): US$14.20, Rating: NEUTRAL [V], Target Price: US$24.00 Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) EBITDA Depr. & amort. (17) (33) (54) EBIT (US$) Net interest exp. Associates Other adj, PBT (US$) Income taxes (0.63) Profit after tax Minorities Preferred dividends Associates & other 0.81 Net profit (US$) Other NPAT adjustments (73) (99) (120) Reported net income (48) (29) 31 Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT Net interest Cash taxes paid Change in working capital (2) Other cash & non-cash items Cash flow from operations CAPEX (39) (63) (83) Free cash flow to the firm (1) Acquisitions Divestments Other investment/(outflows) (2,625) (3,727) (4,602) Cash flow from investments (2,664) (3,790) (4,685) Net share issue/(repurchase) 0.93 Dividends paid Issuance (retirement) of debt Other 3,499 3,747 4,627 Cash flow from financing 3,500 3,747 4,627 activities Effect of exchange rates Changes in Net Cash/Debt Net debt at start (874) (963) Change in net debt (874) (89) (183) Net debt at end (874) (963) (1,146) Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents ,146 Accounts receivable Inventory Other current assets 5,322 8,733 12,838 Total current assets 6,196 9,696 13,984 Total fixed assets Intangible assets and goodwill Investment securities Other assets Total assets 6,377 9,912 14,234 Liabilities Accounts payable Short-term debt Other short term liabilities 5,377 8,823 12,970 Total current liabilities 5,386 8,836 12,988 Long-term debt Other liabilities Total liabilities 5,386 8,836 12,988 Shareholders' equity 991 1,075 1,246 Minority interest Total equity & liabilities 6,377 9,912 14,234 Net debt (US$ m) (874) (963) (1,146) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (0.00) (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT Net profit EPS Margins (%) EBITDA margin EBIT margin Pretax margin Net margin Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT P/E P/B Asset turnover ROE analysis (%) ROE stated-return on (2.9) 2.7 equity ROIC Interest burden Tax rate (1.3) Financial leverage Credit ratios (%) Net debt/equity (88.2) (89.6) (91.9) Net debt/ebitda (21.0) (9.5) (5.6) Interest coverage ratio Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q EPS for Q EPS for Q EPS for Q Daily Dec 11, Jul 09, 2015, 12/11/14 = US$ Dec-14 Mar-15 Jun-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 69

70 Lending Club Corporation (LC) We continue view Lending Club as one of the best secular growth stories in our coverage universe given its disruptive nature and superior consumer offering. We believe concerns around the organic growth rate as the company laps the Springstone acquisition in 2Q15, the recent lockup expiry and perceived competitive pressure have served as overhangs on the stock. We believe the following could send shares higher on the 2Q15 report. 1) Higher mix of organic traffic to Lending Club's site enabling to the company to drive leverage in its Sales and Marketing expense line which is currently running at about 40% of revenue 2) Expansion of its addressable market beyond domestic consumer and SMB credit via additional products (home equity lines of credit, secured credit financing etc.) or into other geographies beyond the US. 3) Improvement in take-rate via more complicated investment products and / or pricing increases over time consistent with what we have seen with other marketplace businesses. And given that Lending Club has no international exposure, it is one of the few companies in our coverage universe shielded from the recent appreciation of the USD. Key focus metrics for Lending Club are growth in loan origination volume, total number of loans originated, revenue and Adj. EBITDA. Exhibit 84: Lending Club Corporation Loan Origination Volume and Year Over Year Growth In millions % 226% 204% 174% 164% 124% 125% 106% 103% 107% 79% 250% 200% 150% 100% Exhibit 106: Lending Club Corporation Number of Loans Originated and Year Over Year Growth US$ % 168% 150% 103% 223% 140% 135% 184% 73% 250% 200% 150% 100% % 40 50% % % 2Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A 2Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A We expect $1.8 billion in loan origination volume for 2Q15 a sequential increase of $163 million from 1Q15 and 171k for number of loans originated versus 1Q15's 131.3k. Our estimates imply an average loan size of $10,477 versus 4Q14's $12,448. As for revenue, we expect $89.9 million versus company guidance $90 million - $92 million vs. 1Q15's $81.1 million. Our 2Q15 take-rate assumption is 4.5%. Internet 70

71 Exhibit 107: Lending Club Corporation -- Revenue and Year Over Year Growth US$ in millions % Exhibit 108: Lending Club Corporation -- Adjusted EBITDA and Margin US$ in millions 12 25% % 178% 138% 131% 105% 103% 110% 86% 200% 150% 100% 50% % 15% 18% 19% 5% 8% 13% 12% 13% 10% 20% 15% 10% 5% Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A 0% 0 (2) -2% Q12A Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 0% -5% The aforementioned revenue estimate contemplates $80.9 million in transaction fees and $9.2 million in Servicing and Management fees. We expect Servicing and Management fees to grow in line with origination volume as higher origination volume creates larger outstanding loan balances. Our Adj. EBITDA estimate for 2Q15 is $9.4 million versus company guidance $8.5 million - $10.0 million and 1Q15's $10.6 million. CS estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Exhibit 109: Lending Club Corporation - Credit Suisse vs. Consensus Estimates 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.01 $ % $0.06 $ % $0.16 $ %, Bloomberg Valuation In-line with the valuation methodology we have used with the rest of our coverage universe, we have based our target price on DCF, which suggests $24. We have used a weighted average cost of capital of 11% and a terminal growth rate expectation of 3%. Internet 71

72 Exhibit 110: Lending Club Corporation Inc. -- Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E '15-'20 EBITDA % Net Income (48.5) (29.5) Depreciation & Amortization % Other Non-Cash Charges (Benefits) % Interest Expense (Income) Changes in Operating Assets & Liabilities % Unlevered Cash Flows % Capital Expenditures % Unlevered Free Cash Flows % Y/Y % Change (39.1)% 645.3% 117.4% 73.2% 32.5% 25.4% 24.8% 24.3% 21.6% 22.4% 20.8% Weighted Average Cost of Capital 11.0% Perpetual UFCF Growth Rate ("G") 3.0% 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets 0.0 Adjusted Enterprise Value Year End Net Debt (Cash) (849.8) Equity Value Diluted Shares Outstanding Equity Value Per Share $24 Internet 72

73 LinkedIn LNKD Price (09 Jul 15): US$207.56, Rating: OUTPERFORM, Target Price: US$ Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) 2, , , ,502.9 EBITDA Depr. & amort. (237) (376) (390) (469) EBIT (US$) 36 (267) Net interest exp. (5) (15) Associates Other adj, PBT (US$) 31 (281) Income taxes (47) 77 (24) (75) Profit after tax (15) (204) (13) 192 Minorities Preferred dividends Associates & other Net profit (US$) Other NPAT adjustments (269) (423) (421) (462) Reported net income (15) (204) (13) 192 Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT 36 (267) Net interest (5) (15) Cash taxes paid Change in working capital Other cash & non-cash items ,094 Cash flow from operations ,118 1,761 CAPEX (548) (354) (364) (369) Free cash flow to the firm ,391 Acquisitions Divestments Other investment/(outflows) (1,746) (319) Cash flow from investments (2,293) (672) (364) (369) Net share issue/(repurchase) 16 Dividends paid Issuance (retirement) of debt Other 167 (3) Cash flow from financing 183 (3) activities Effect of exchange rates Changes in Net Cash/Debt (1,541) ,391 Net debt at start (788) (40) Change in net debt 1,541 (39) (754) (1,391) Net debt at end (40) (1,431) Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents ,276 2,668 Accounts receivable Inventory Other current assets 3,212 2,801 2,833 2,863 Total current assets 4,122 3,878 4,827 6,377 Total fixed assets Intangible assets and goodwill Investment securities Other assets Total assets 5,427 5,168 6,092 7,541 Liabilities Accounts payable Short-term debt Other short term liabilities ,265 1,809 Total current liabilities 883 1,038 1,385 1,943 Long-term debt 1,214 1,236 1,236 1,236 Other liabilities 5 Total liabilities 2,102 2,274 2,621 3,179 Shareholders' equity 3,320 2,894 3,470 4,362 Minority interest 5 Total equity & liabilities 5,427 5,168 6,092 7,541 Net debt (US$ m) (40) (1,431) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT (24.4) (837.5) (104.1) 2,367.8 Net profit 32.4 (13.8) EPS 25.0 (17.1) Margins (%) EBITDA margin EBIT margin 1.6 (9.3) Pretax margin 1.4 (9.9) Net margin Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT (100.8) 2, P/E P/B Asset turnover ROE analysis (%) ROE stated-return on (0.5) (6.6) (0.4) 4.9 equity ROIC (0.4) (5.4) (0.4) 6.6 Interest burden Tax rate Financial leverage Credit ratios (%) Net debt/equity (1.2) (32.8) Net debt/ebitda (0.1) (1.9) Interest coverage ratio 7.3 (18.2) Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 73

74 LinkedIn Corporation (LNKD) LinkedIn will be reporting its 2Q15 results on 30 July The company remains one of our favorite names in our coverage universe on the investment thesis predicated on three key points: 1. LinkedIn's current roster of little under 35,000 corporate solutions clients implies a minority penetration rate for Talent Solutions 2. The company's all-you-can-eat subscription model undercharges enterprise customers and longer term LinkedIn should potentially move to a more lucrative per-lead transaction model in the interim, we believe it has pricing power 1. Optionality of LinkedIn's unique data set, which it can leverage into new businesses We continue to believe that three of the four primary factors that drove a reset lower to revenue and adj. EBITDA guidance last quarter (FX, Lynda, weakness in Display, sales force reorg) are ultimately transitory while the deterioration of LinkedIn s premium display business is not an unfixable problem. Additionally the growth drivers and underlying fundamentals have also not changed and neither does our investment thesis. As such we maintain our Outperform rating and $307 price target. We note that the following factors may be catalysts that could lead us to raise our forecasts in the near-to-medium term: Faster-than-expected ramp of Sales Navigator and the roll-out of additional products that would monetize LinkedIn's unique data assets Acceleration of Marketing Solutions on the heels of consumer engagement recovery and contribution from Bizo Continued pricing increases in Talent Solutions as the company exerts market power as the current all-you-can-eat subscription model undercharges enterprise customers Our projections for LinkedIn's key KPIs are as shown below. Exhibit 111: LinkedIn Corporation Corporate Solutions Customers and Sequential Additions In thousands Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1.4 1Q14A 2.2 2Q14A 2.3 3Q14A 3.0 4Q14A 1.5 1Q15A 2.2 2Q15E Exhibit 112: LinkedIn Corporation Talent Solutions Revenue and Year Over Year Growth % 90% 80% 78% 72% 62% 58% 49% 45% 41% 30% Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% We estimate that LinkedIn will add ~2,100 corporate solutions customers sequentially to reach ~37k total, and with our projection of a 20 bps sequential ARPU growth our Talent Internet 74

75 Solutions revenue stands at $418.7 million versus 1Q15's $396.4 million and 2Q14's $322.2 million. Exhibit 113: LinkedIn Corporation Marketing Solutions Revenue and Year Over Year Growth % 68% 56% 17% 18% 17% 15% 44% 45% 56% 38% 14% Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 80% 70% 60% 50% 40% 30% 20% 10% 0% Exhibit 114: LinkedIn Corporation Premium Subscriptions Revenue and Year Over Year Growth % 79% 73% 68% 61% 48% 46% 44% 43% 38% 28% 23% Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Our Marketing Solutions estimate stands at $121.6 million, while our Premium Subscription revenue estimate is $129.1 million versus last quarter's $122.1 million and $105.2 million of a year ago. In aggregate, our revenue estimate is $669.4 million versus guidance range of $670 to $675 million, and our Adjusted EBITDA stands at $118.9 million versus guidance of $120 million. Our estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Exhibit 115: LinkedIn Corporation Credit Suisse Estimates vs. Consensus 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.26 $ % $1.67 $ % $3.01 $ %, Bloomberg Valuation In-line with the valuation methodology we have used with the rest of the Internet sector, we have based our 12-month price target on discounted cash flow, which suggests $307. We have used a weighted average cost of capital of 10.5% and a terminal growth rate expectation of 3%. Internet 75

76 Exhibit 116: LinkedIn Corporation Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-20 EBITDA % Net Income (204.5) (13.1) Depreciation and Amortization % Other Non-Cash Charges (Benefits) % Interest/Other Expense (Income) (14.6) Changes in Operating Assets & Liabilities % Unlevered Cash Flows % Capital Expenditures % Unlevered Free Cash Flows % YOY Change 842.1% 112.7% 81.9% 54.0% 33.4% 21.0% Weighted Average Cost of Capital Perpetual UFCF Growth Rate ("G") 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets 0.0 Adjusted Enterprise Value Year End Net Debt (Cash) (3035.0) Equity Value Diluted Shares Outstanding Equity Value Per Share $307 Internet 76

77 Netflix, Inc. NFLX Price (09 Jul 15): US$670.09, Rating: NEUTRAL, Target Price: US$(from ) Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) 5, , , ,996.7 EBITDA ,017 Depr. & amort. (2,782) (3,701) (4,532) (4,674) EBIT (US$) Net interest exp. (53) (152) (119) (108) Associates Other adj, PBT (US$) Income taxes (83) (21) (89) (269) Profit after tax Minorities Preferred dividends Associates & other Net profit (US$) Other NPAT adjustments (13) (87) (74) (82) Reported net income Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT Net interest (53) (152) (119) (108) Cash taxes paid Change in working capital (3,636) (5,015) (4,426) (4,476) Other cash & non-cash items 3,408 5,769 6,750 7,196 Cash flow from operations ,552 3,409 CAPEX Free cash flow to the firm ,552 3,409 Acquisitions (75) (80) (61) (51) Divestments Other investment/(outflows) (75) (84) Cash flow from investments (43) (57) (136) (134) Net share issue/(repurchase) Dividends paid Issuance (retirement) of debt Other (40) (172) (1) (1) Cash flow from financing 41 (132) (1) (1) activities Effect of exchange rates (111) Changes in Net Cash/Debt ,415 3,274 Net debt at start (700) (708) (1,330) (3,745) Change in net debt (8) (621) (2,415) (3,274) Net debt at end (708) (1,330) (3,745) (7,019) Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents 1,114 3,227 5,642 8,916 Accounts receivable Inventory 2,126 2,550 1, Other current assets Total current assets 3,940 6,504 8,126 10,481 Total fixed assets Intangible assets and goodwill Investment securities Other assets 2,966 4,115 5,022 5,967 Total assets 7,057 10,764 13,293 16,592 Liabilities Accounts payable Short-term debt Other short term liabilities 2,462 3,931 5,960 8,528 Total current liabilities 2,663 4,134 6,183 8,784 Long-term debt 900 2,400 2,400 2,400 Other liabilities 1,636 2,166 2,389 2,532 Total liabilities 5,199 8,700 10,972 13,716 Shareholders' equity 1,858 2,064 2,322 2,876 Minority interest Total equity & liabilities 7,057 10,764 13,293 16,592 Net debt (US$ m) (708) (1,330) (3,745) (7,019) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT 76.3 (48.4) Net profit 61.0 (57.0) EPS 58.6 (57.9) Margins (%) EBITDA margin EBIT margin Pretax margin Net margin Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT P/E P/B Asset turnover ROE analysis (%) ROE stated-return on equity ROIC (14.9) (11.7) Interest burden Tax rate Financial leverage Credit ratios (%) Net debt/equity (38.1) (64.4) (161.3) (244.1) Net debt/ebitda (1.2) (3.3) (6.9) (6.9) Interest coverage ratio Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 77

78 Netflix, Inc. (NFLX) Netflix will report its 2Q15 on 15 July We see little in the way of incremental data points to derail the current bull thesis on NFLX shares, which we believe currently reflects expectations for acceleration of subscriber growth due to incremental International launches as well as the end of its content investment cycle in We have made numerous changes to the way we model our content spend assumptions on a go-forward basis. Previously we had tethered our content acquisition forecasts to the number of subscribers. This led to volatile swings in our per subscriber content spend as a new market launch augurs a large upfront spend ahead of the revenue contribution from new subscribers. Given that Netflix will purchase content based on its expected penetration targets in any new region, we have elected to model our content acquisition costs in essentially the same way. Hence our price target change from $505 to $700 reflects a sharper increase in the near-term followed by a period of flattening content costs. We have updated our model to reflect the most current foreign exchange environment. The net result is ~11% headwind to FY15 earnings this is offset by the aforementioned changes to our content acquisition spend expectations and as we update the company's off-balance-sheet content liabilities from the latest 10-Q filing. We while maintain our Neutral rating and positive bias for NFLX shares given its position as the secular leader in online streaming video, and only valuation holds us back from a more positive stance. Exhibit 117: Netflix, Inc. CS Estimate Revisions 2Q15 2Q15 % 2Q15 % % 2015 % % 2016 % Prior FX-Only Δ Current Δ Prior FX-Only Δ Current Δ Prior FX-Only Δ Current Δ Domestic Paid Streaming Subs % % % % % % Int'l Paid Streaming Subs % % % % % % Domestic Paid DVD Subs % % % % % % Domestic Streaming Revenue % % % % % % International Streaming Revenue % % % % % % Domestic DVD Revenue % % % % % % Total Revenue % % % % % % Adjusted EBITDA % % % % % % Pro Forma EPS $0.63 $ % $ % $2.39 $ % $ % $2.87 $ % $ % We have maintained our growth trajectory expectation for both Domestic and International streaming paid customers: Exhibit 118: Netflix, Inc. Paid Domestic Streaming Subscribers and Year Over Year Growth In millions % 26% 25% 23% 23% 21% 19% 15% 13% 30% 25% 20% 15% Exhibit 119: Netflix, Inc. Domestic Streaming Revenue and Year Over Year Growth In millions % 26% 26% 25% 25% 25% 24% 17% 17% 30% 25% 20% 15% 15 10% % Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 5% 0% , Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 5% 0% Internet 78

79 Our 41.0 million Domestic streaming paid subscriber estimate for 2Q15 bakes in a continued deceleration trajectory it assumes 0.65 million incremental subscribers from 1Q15 to 2Q15 versus the 0.7 million from the equivalent period last year. Guidance is for 41.0 million paid members. We are estimating Domestic streaming revenue to be $1025 billion consistent with company guidance of $1.024 billion, Exhibit 85: Netflix, Inc. -- Paid International Streaming Subscribers and Year Over Year Growth In millions % 119% 99% 86% 84% 78% 73% 50% 49% Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 140% 120% 100% 80% 60% 40% 20% 0% Exhibit 86: Netflix, Inc. -- International Streaming Revenue and Year Over Year Growth US$ in millions % 135% 118% 88% 85% 89% 75% 35% 29% Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% We estimate 21.5 million International paid streaming subscribers for 2Q15 it assumes 2.2 million incremental subscribers from 1Q15 to 2Q15 versus the 1.1 million from the equivalent period last year. Guidance is for 21.5 million paid members. We expect International streaming revenue to be $446 million versus company guidance of $450 million. Exhibit 87: Netflix, Inc. Paid DVD Subscribers and Year Over Year Growth In millions 8 0% Exhibit 88: Netflix, Inc. DVD Revenue and Year Over Year Growth US$ in millions 250 0% 7 6-5% 200-5% % -17% -16% -17% -16% -16% -16% -11% -11% -10% -15% -20% % -18% -16% -16% -16% -16% -16% -11% -12% -10% -15% -20% Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E -25% Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E -25% We estimate 5.3 million DVD subscribers for 2Q15 it assumes a loss of 0.2 million subscribers from 1Q15 to 2Q15 versus the 0.4 million from the equivalent period last year. Internet 79

80 Our revenue projection is $163.3 million. Netflix does not offer specific guidance for DVD subscribers or revenue. Our estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Exhibit 89: Netflix, Inc. Credit Suisse Estimates vs. Consensus 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.68 $ % $1.91 $ % $3.23 $ %, Bloomberg Valuation In-line with the valuation methodology we have used with the rest of the Internet sector, we have based our 12-month price target on DCF, which suggests $700 (vs. $505 prior). We have used a weighted average cost of capital of 11.5% and a terminal growth rate expectation of 3%. Exhibit 90: Netflix, Inc. -- Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA % Net Income % Depreciation & Amortization % Other Non-Cash Charges (Benefits) % Interest Expense (Income) Changes in Operating Assets & Liabilities (5014.5) (4425.6) (4476.3) (4539.1) (4594.8) (4652.9) Unlevered Cash Flows % Capital Expenditures Unlevered Free Cash Flows % Y/Y % Change % 208.6% 33.4% 19.8% 13.9% 9.6% Weighted Average Cost of Capital 11.5% Perpetual UFCF Growth Rate ("G") 3.0% 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets (7427.6) Adjusted Enterprise Value Year End Net Debt (Cash) (1329.7) Equity Value Diluted Shares Outstanding 63.1 Equity Value Per Share $700 Internet 80

81 MercadoLibre Inc. MELI Price (09 Jul 15): US$133.31, Rating: OUTPERFORM, Target Price: US$(from ) Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) EBITDA Depr. & amort. (17) (22) (27) (34) EBIT (US$) Net interest exp. 4 (8) (12) (15) Associates Other adj, (2) (14) (7) (7) PBT (US$) Income taxes (49) (34) (38) (65) Profit after tax Minorities Preferred dividends Associates & other Net profit (US$) Other NPAT adjustments (65) (45) (22) (26) Reported net income Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT Net interest (9) Cash taxes paid Change in working capital Other cash & non-cash items 42 5 (30) (53) Cash flow from operations CAPEX (34) (37) (43) (51) Free cash flow to the firm Acquisitions Divestments 2, Other investment/(outflows) (2,619) (421) Cash flow from investments (322) (26) (43) (51) Net share issue/(repurchase) Dividends paid (28) (22) (19) (19) Issuance (retirement) of debt (8) (0) Other 106 (21) Cash flow from financing 70 (42) (19) (19) activities Effect of exchange rates (56) (37) Changes in Net Cash/Debt (113) Net debt at start (201) (88) (132) (220) Change in net debt 113 (44) (89) (157) Net debt at end (88) (132) (220) (377) Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents Accounts receivable Inventory Other current assets Total current assets Total fixed assets Intangible assets and goodwill Investment securities Other assets Total assets 967 1,017 1,152 1,364 Liabilities Accounts payable Short-term debt Other short term liabilities Total current liabilities Long-term debt Other liabilities Total liabilities Shareholders' equity Minority interest Total equity & liabilities 967 1,017 1,152 1,364 Net debt (US$ m) (88) (132) (220) (377) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT (21.5) (7.4) Net profit 5.1 (27.4) EPS (38.2) (24.1) Margins (%) EBITDA margin EBIT margin Pretax margin Net margin Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT P/E P/B Asset turnover ROE analysis (%) ROE stated-return on equity ROIC Interest burden Tax rate Financial leverage Credit ratios (%) Net debt/equity (24.8) (35.0) (47.2) (59.8) Net debt/ebitda (0.4) (0.8) (1.0) (1.1) Interest coverage ratio (32.8) Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 07/08/15 the S&P 500 INDEX closed at Internet 81

82 MercadoLibre Inc. (MELI) MercadoLibre remains one of the best secular growth stories in our coverage space, offering investors pure play exposure to LatAm e-commerce growth and best in class product innovation and execution. We maintain our Outperform rating and our target price moves to $181 (vs. $192 prior). In spite of an what remains adverse FX environment in Brazil, we believe our recent upgrade thesis remains as valid as ever as there remains room for MELI to outperform via the following: 1. Increased off-platform adoption of MercadoPago 2. Better than expected adoption of interest free listings in non-core countries resulting in ASP lift and higher take-rates 3. Reduction of consumer and seller friction and ensuing volume lift through mass adoption of MercadoEnvios 4. Seller adoption of new Product Listing Advertisement over the longer term We have updated our model for marketplace and non-marketplace disclosure on the most recent 10-Q. We had underestimated the impact non-marketplace revenues had in Argentina and Mexico and we expect this to continue (especially in Mexico where interest free financing is a nascent product). We have made the following changes to our model: 1. Quarterly update for FX rate changes (results in ~10% headwind to revenue and earnings ceteris paribus) 2. Updated marketplace and non-marketplaces disclosure based on geography in 10-Q The net result of this is a decrease to net revenue, adj. EBITDA, and adj. EPS for 4Q14 and beyond. Exhibit 91: MercadoLibre, Inc. - CS Estimate Revisions 2Q15 2Q15 % 2Q15 % % 2015 % % 2016 % Prior FX-Only Δ Current Δ Prior FX-Only Δ Current Δ Prior FX-Only Δ Current Δ Gross Merchandise Value % % % % % % Total Payment Value % % % % % % Net Revenue % % % % % % Adjusted EBITDA % % % % % % Pro Forma EPS $0.45 $ % $ % $2.37 $ % $ % $3.05 $ % $ % The key focus metrics for the company remain the growth rates for Gross Merchandise Value, Items Sold, Total Payment Volume, and Consolidated Take-Rate: Internet 82

83 Exhibit 92: MercadoLibre Inc. Quarterly Total Payment Volume and Year Over Year Growth % 44% 40% 34% 42% 25% 36% 52% 47% 56% 30% 60% 50% 40% 30% 20% Exhibit 93: MercadoLibre Inc. Consolidated Take Rate 10.0% 8.8% 9.0% 9.0% 8.9% 9.0% 8.0% 7.3% 7.0% 6.3% 6.6% 6.5% 6.6% 6.3% 6.4% 6.0% 5.0% 4.0% 3.0% % 0% 2.0% 1.0% 0.0% 2Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A 2Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A Exhibit 94: MercadoLibre Inc. Quarterly Gross Merchandise Value and Year Over Year Growth % 18% 33% 31% 30% 15% Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 5% 2Q14A -10% 3Q14A -16% 4Q14A -8% 1Q15A -18% 2Q15E 40% 30% 20% 10% 0% -10% -20% -30% Exhibit 95: MercadoLibre Inc. Quarterly Number of Items Sold and Year Over Year Growth in millions % 21% 27% 25% 20% 20% 17% 22% 27% 27% 24% Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 30% 25% 20% 15% 10% 5% 0% We expect further GMV deceleration year over year at $1.488 billion as ASP mix shift and currency headwinds continue to suppress ASPs in combination with +24% growth in items sold to 29 million. Our TPV estimate for 4Q14 is $1.02 billion. As for the take rate, we are forecasting a modest sequential decrease in line with seasonality. However we note the possibility MELI could monetize better than expected as interest-free financing gains additional traction in core countries and "other" resulting in higher-take rates despite seasonality. Our updated estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Internet 83

84 Exhibit 96: MercadoLibre Inc. - Credit Suisse vs. Consensus Estimates 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.44 $ % $2.27 $ % $2.85 $ %, Bloomberg Valuation Consistent with the valuation methodology we have used with the rest of our coverage universe; we have based our target price on discounted cash flow analysis, which suggests $181 (vs. $192 prior). We have used a weighted average cost of capital of 11.0% and a terminal growth rate expectation of 3%. Exhibit 97: MercadoLibre Inc. Discounted Cash Flow Analysis CAGR 2016E 2017E 2018E 2019E 2020E 2021E '16-'21 EBITDA % Net Income % Depreciation & Amortization % Other Non-Cash Charges (Benefits) Interest Expense (Income) % Changes in Operating Assets & Liabilities Unlevered Cash Flows % Capital Expenditures % Unlevered Free Cash Flows % Y/Y % Change 35.8% 56.4% 54.2% 43.4% 38.7% 30.0% Weighted Average Cost of Capital 11.0% 11.0% 11.0% 11.0% 11.0% 11.0% Perpetual UFCF Growth Rate ("G") 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 2016E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets 0.0 Adjusted Enterprise Value Year End Net Debt (Cash) (220.4) Equity Value Diluted Shares Outstanding 44.2 Equity Value Per Share $181 Internet 84

85 Pandora Media P Price (09 Jul 15): US$15.11, Rating: NEUTRAL [V], Target Price: US$21.00 Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) , , ,814.0 EBITDA Depr. & amort. (102) (143) (172) (197) EBIT (US$) (30) (68) (11) 61 Net interest exp Associates Other adj, PBT (US$) (30) (68) (11) 61 Income taxes Profit after tax (29) (68) (11) 61 Minorities Preferred dividends Associates & other Net profit (US$) (29) (68) (11) 61 Other NPAT adjustments Reported net income (29) (68) (11) 61 Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT (30) (68) (11) 61 Net interest 0.13 Cash taxes paid Change in working capital (30) (7) (33) (41) Other cash & non-cash items Cash flow from operations CAPEX (30) (34) (37) (41) Free cash flow to the firm (9) Acquisitions Divestments Other investment/(outflows) Cash flow from investments 22 2 Net share issue/(repurchase) Dividends paid Issuance (retirement) of debt Other (32) (30) (37) (41) Cash flow from financing (32) (30) (37) (41) activities Effect of exchange rates Changes in Net Cash/Debt Net debt at start (344) (355) (417) (518) Change in net debt (10) (63) (101) (186) Net debt at end (355) (417) (518) (704) Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents Accounts receivable Inventory Other current assets Total current assets ,147 Total fixed assets Intangible assets and goodwill Investment securities Other assets Total assets ,056 1,328 Liabilities Accounts payable Short-term debt Other short term liabilities Total current liabilities Long-term debt Other liabilities Total liabilities Shareholders' equity Minority interest Total equity & liabilities ,056 1,328 Net debt (US$ m) (355) (417) (518) (704) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (0.04) (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT (24.8) (84.1) (659.2) Net profit (27.8) (84.0) (659.2) EPS 1,778.1 (41.9) Margins (%) EBITDA margin EBIT margin (3.3) (5.9) (0.7) 3.4 Pretax margin (3.2) (5.9) (0.7) 3.4 Net margin (3.2) (5.9) (0.7) 3.4 Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT (94.3) (40.7) (246.2) 41.0 P/E P/B Asset turnover ROE analysis (%) ROE stated-return on (4.0) (8.1) (1.1) 5.4 equity ROIC (12.9) (30.6) (4.3) 21.1 Interest burden Tax rate Financial leverage Credit ratios (%) Net debt/equity (60.8) (65.2) (67.0) (70.9) Net debt/ebitda (4.9) (5.6) (3.2) (2.7) Interest coverage ratio Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q1 (0.13) (0.12) (0.14) (0.11) EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 04/09/15 the S&P 500 INDEX closed at Internet 85

86 Pandora Media (P) Pandora shares remain out of favor due to increasingly competitive streaming music landscape as well as the ongoing Web IV proceedings. Earlier this year, Pandora indicated that it intended to deploy consumer marketing dollars for the first time in its history in order to accelerate the growth of its user base. As we outlined in our 14 December 2014 note: "Working Our Way Through Pandora's New Conversion Funnel", the ROI of paid user acquisition for Pandora is favorable on both subscription and ad supported products. However, we have not seen a meaningful ramp in the user growth trajectory thus far in We believe the prospects for an accelerated pace of new user activation and reengagement via marketing is now off the table due to price inflation of the ad inventory Pandora was likely looking to use. Furthermore, given the uncertainty in content licensing costs with the pending Web IV proceedings, we cannot disagree with what looks like an increased effort at the company to control what it can control hiring sales personnel to target local advertising dollars in a bid to push RPMs higher. Hence we maintain our Neutral rating and $21 target price at this time. Despite the fact that mobile and desktop RPMs are more a mathematical output versus an input to the model, we continue to expect investor focus to remain on these two metrics especially given softer-than-expected advertising revenue over the last couple of quarters. Below are our expectations for Mobile and Desktop RPMs. Exhibit 98: Pandora Media Mobile RPMs and Year Over Year Growth US$ % 42% 44% 11% 16% 23% 19% 32% Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 60% 50% 40% 30% 20% 10% 0% Exhibit 99: Pandora Media PC RPMs and Year Over Year Growth US$ % 4% 18% 7% 10% 11% 10% 16% Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Pandora no longer discloses listening metrics on a monthly basis but we will receive the quarterly update on the 2Q15 results. We are currently anticipating 5.5 billion hours versus 1Q15's 5.3 billion and 5.0 billion from a year ago. Accordingly, our advertising revenue forecast for 2Q15 stands at $222.5 million versus 1Q15's $178.7 million and $177.3 million in the same period last year. Internet 86

87 Exhibit 100: Pandora Media Listener Hours and Year Over Year Growth In billions % 16% 13% 29% 25% 15% 10% Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 8% 35% 30% 25% 20% 15% 10% 5% 0% Exhibit 101: Pandora Media Advertising Revenue and Year Over Year Growth US$ in millions % 39% 45% 39% 44% 36% 27% 25% Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Our total revenue and adjusted EBITDA estimates for 2Q15 is $280.5 million versus guidance range $280 to $285 million, and $12 million versus guidance range $8 million to $13 million respectively. Our estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Exhibit 102: Pandora Media - Credit Suisse vs. Consensus Estimates 2Q15 FY15 FY16 CS Consensus % Diff CS Consensus % Diff CS Consensus % Diff Revenue % % % Adjusted EBITDA % % % Adjusted EPS $0.03 $ % $0.15 $ % $0.39 $ %, Bloomberg Valuation In-line with the valuation methodology we have used with the rest of our coverage universe, we have based our target price on DCF, which suggests $21. We have used a weighted average cost of capital of 11.5% and a terminal growth rate expectation of 3%. Internet 87

88 Exhibit 103: Pandora Media Discounted Cash Flow Analysis CAGR 2015E 2016E 2017E 2018E 2019E 2020E '15-'20 EBITDA % Net Income (68.1) (10.9) % Depreciation & Amortization % Other Non-Cash Charges (Benefits) % Interest Expense (Income) Changes in Operating Assets & Liabilities 13.8 (24.0) (30.4) (29.0) (27.6) (22.4) Unlevered Cash Flows % Capital Expenditures % Unlevered Free Cash Flows % Y/Y % Change 77.8% 85.1% 51.3% 31.9% 23.7% Weighted Average Cost of Capital 11.5% Perpetual UFCF Growth Rate ("G") 3.0% 2015E NPV of Unlevered Free Cash Flows Present Value of Terminal Value Enterprise Value Off-Balance Sheet Assets 0.0 Adjusted Enterprise Value Year End Net Debt (Cash) (417.3) Equity Value Diluted Shares Outstanding Equity Value Per Share $21 Internet 88

89 The Priceline Group Inc PCLN Price (09 Jul 15): US$1,126.07, Rating: OUTPERFORM, Target Price: US$(from 1,400.00) 1, Income statement (US$ m) 12/14A 12/15E 12/16E 12/17E Revenue (US$ m) 8, , , ,452.4 EBITDA 3,461 3,590 4,327 5,224 Depr. & amort. (208) (338) (385) (377) EBIT (US$) 3,073 3,065 3,699 4,557 Net interest exp. (74) (114) (103) (88) Associates Other adj, (9) (5) (32) (32) PBT (US$) 2,989 2,946 3,563 4,437 Income taxes (568) (769) (973) (1,204) Profit after tax 2,422 2,177 2,590 3,233 Minorities Preferred dividends Associates & other Net profit (US$) 2,824 2,747 3,274 3,925 Other NPAT adjustments (402) (570) (684) (691) Reported net income 2,422 2,177 2,590 3,233 Cash flow (US$) 12/14A 12/15E 12/16E 12/17E EBIT 3,073 3,065 3,699 4,557 Net interest (74) (114) (103) (88) Cash taxes paid Change in working capital (25) (266) 9 9 Other cash & non-cash items (59) (200) (330) (522) Cash flow from operations 2,914 2,485 3,275 3,956 CAPEX Free cash flow to the firm 2,914 2,485 3,275 3,956 Acquisitions Divestments Other investment/(outflows) (2,480) (1,370) (279) (311) Cash flow from investments (2,349) (1,240) (140) (155) Net share issue/(repurchase) Dividends paid Issuance (retirement) of debt Other (4,999) 1,227 (47) (47) Cash flow from financing (4,999) 1,227 (47) (47) activities Effect of exchange rates (136) (175) Changes in Net Cash/Debt (4,570) 2,297 3,088 3,754 Net debt at start (5,011) (441) (2,738) (5,826) Change in net debt 4,570 (2,297) (3,088) (3,754) Net debt at end (441) (2,738) (5,826) (9,580) Balance sheet (US$ m) 12/14A 12/15E 12/16E 12/17E Assets Cash and cash equivalents 3,149 5,432 8,567 12,367 Accounts receivable Inventory Other current assets 1,475 1,712 1,740 1,767 Total current assets 5,267 7,875 11,163 15,121 Total fixed assets Intangible assets and goodwill 5,661 5,410 5,146 4,916 Investment securities 3,756 4,974 4,974 4,974 Other assets Total assets 14,941 18,569 21,613 25,348 Liabilities Accounts payable Short-term debt 37 Other short term liabilities 1,061 1,145 1,304 1,468 Total current liabilities 1,380 1,404 1,567 1,733 Long-term debt 3,850 4,074 4,121 4,167 Other liabilities 1,144 1,205 1,205 1,205 Total liabilities 6,374 6,684 6,893 7,105 Shareholders' equity 8,567 11,886 14,720 18,243 Minority interest Total equity & liabilities 14,941 18,569 21,613 25,348 Net debt (US$ m) (441) (2,738) (5,826) (9,580) Per share data 12/14A 12/15E 12/16E 12/17E No. of shares (wtd avg) CS adj. EPS (US$) Prev. EPS (US$) Dividend (US$) Dividend payout ratio Free cash flow per share (US$) Key ratios and 12/14A 12/15E 12/16E 12/17E valuation Growth (%) Sales EBIT 27.4 (0.3) Net profit 29.2 (2.7) EPS 26.5 (9.9) Margins (%) EBITDA margin EBIT margin Pretax margin Net margin Valuation metrics (x) EV/sales EV/EBITDA EV/EBIT P/E P/B Asset turnover ROE analysis (%) ROE stated-return on equity ROIC Interest burden Tax rate Financial leverage Credit ratios (%) Net debt/equity (5.1) (23.0) (39.6) (52.5) Net debt/ebitda (0.1) (0.8) (1.3) (1.8) Interest coverage ratio Quarterly data 12/14A 12/15E 12/16E 12/17E EPS for Q EPS for Q EPS for Q EPS for Q Daily Jul 09, Jul 09, 2015, 7/09/14 = US$ Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Price Indexed S&P 500 INDEX On 04/09/15 the S&P 500 INDEX closed at Internet 89

90 The Priceline Group Inc. (PCLN) While we acknowledge the uncertainty with respect to the EUR/USD exchange rate and inherent macro risk in the region with a potential Grexit, we have not yet noted any signs of demand destruction and have hence maintained our FX Neutral International booking growth projections. That said, our near term estimates have actually increased after we update our exchange rate assumptions given the downward vector of the EUR/USD exchange rate quarter, we had assumed an overly punitive scenario. As a result, our price target increases to $1500 vs. prior $1400. We maintain our Outperform rating as we believe PCLN shares have: 1. Open ended story with a long runway for hotel room nights growth as its market share remains in the high single digit percentage range 2. It will be a beneficiary of rising outbound Chinese travel demand, especially to Europe vis-à-vis its partnership with Ctrip (which now owns elong) 3. Long-term potential for traction in US of Booking.com platform to usher in greater demand versus the supply base it has already built or in the event that this traction does not materialize, margin expansion from the moderation of offline marketing spend The below table summarizes the changes to our PCLN estimates for 2Q15, FY15, and FY16: Exhibit 104: The Priceline Group Inc. CS Estimate Revisions 2Q15 1Q15 % % % Prior Current Δ Prior Current Δ Prior Current Δ Agency Bookings % % % Merchant Bookings % % % Total Gross Bookings % % % Total Revenues % % % Gross Profit % % % Adjusted EBITDA % % % Adjusted EPS $11.07 $ % $50.27 $ % $58.71 $ % Our projections for the key components of The Priceline Group's businesses are as shown below: Internet 90

91 Exhibit 105: The Priceline Group Inc. International Gross Travel Bookings and FX-Neutral Year Over Year Growth US$ in millions % 41% 43% 43% 44% 41% 42% 38% 35% 32% 27% 29% 22% Q12A 3Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Exhibit 106: The Priceline Group Inc. Domestic Gross Travel Bookings and Year Over Year Growth US$ in millions % 7.2% 5.3% 4.4% 11.7% 16.7% 26.5% 19.5% 20.6% 9.9% 3.4% 2.1% 4.1% Q12A 3Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13A 1Q14A 2Q14A 3Q14A 4Q14A 1Q15A 2Q15E 30% 25% 20% 15% 10% 5% 0% Our International Gross Travel Booking estimate for 2Q15 stands at $12.0 billion which reflects 22.4% FX-neutral year over year growth (2.6% y/y growth on a US Dollar basis) versus management guidance range of 17%-24%. Our Domestic Gross Travel Booking estimate is $1.9 billion, or 4% y/y growth - guidance calls for 0%-5%. Exhibit 107: The Priceline Group Inc. Consolidated Gross Profit and Year Over Year Growth US$ in millions % 30% 27% 42% 42% 36% 38% 39% 36% 32% 26% 19% 45% 40% 35% 30% 25% 20% Exhibit 108: The Priceline Group Inc. Adjusted EBITDA and Margin US$ in millions % 46% 36% 29% 37% 49% 38% 31% 38% 50% 39% 29% 36% 60% 50% 40% 30% % Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A 3Q12A 2Q12A 15% 10% 5% 0% Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A 3Q12A 2Q12A 20% 10% 0% Our expectations for Domestic and International GTB on stable revenue margin/commission rate translate into 7% growth in gross profit dollars (including FX impact) for 2Q15. Accordingly we expect a modest amount of deleverage throughout the rest of 2015 due to FX headwinds before Priceline once again starts to see operating leverage in 2016 and beyond. And our adjusted EBITDA is at $754 million versus guidance range of $715 to $765 million. Although this metric has become less indicative of Priceline's growth prospects over time, we present below it has added roughly 60,000 properties to the Booking.com platform sequentially to reach ~680,000. Internet 91

92 Exhibit 109: The Priceline Group Inc. Booking.com Property Count and Year Over Year Growth % % 50% 50% 47% 37% 30% 30% 28% 35% 44% 57% 54% 61% 62% 63% 56% 52% 44% 41%44% 40% 42% 55% 50% 59% 55% 41% 26% 60% 50% 40% 30% % 20% % Q15E 1Q15A 4Q14A 3Q14A 2Q14A 1Q14A 4Q13A 3Q13A 2Q13A 1Q13A 4Q12A 3Q12A 2Q12A 1Q12A 4Q11A 3Q11A 2Q11A 1Q11A 4Q10A 3Q10A 2Q10A 1Q10A 4Q09A 3Q09A 2Q09A 1Q09A 4Q08A 3Q08A 2Q08A 0% The EU continues to be the region with the greatest number of property additions, as shown on the charts below which compare mix: Exhibit 110: The Priceline Group Inc. Booking.com Regional Property Mix for 1Q15 Other 11.6% Exhibit 111: The Priceline Group Inc. Booking.com Regional Property Mix for 2Q15 Other 11.3% APAC 10.3% APAC 10.4% NA 10.2% NA 10.0% EU 67.9% EU 68.2% Our estimates versus consensus for revenue, adjusted EBITDA, and adjusted EPS are as shown below for 2Q15, FY15, FY16. Internet 92