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Accelerating GrowthMicrosofts strategic rationale for deal announcedwith Nokia on September 3, 2013

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This presentation contains forward-looking statements, which are any predictions, projectionstatements about future events based on current expectations and assumptions that are subjuncertainties. The potential risks and uncertainties include, among others, that the expected other benefits from the Nokia transaction may not be realized, including because of: our inab

transaction, or Nokias inability to repay the financing should it take down the financing and tdoesnt close; the response to the acquisition by the customers, employees, and strategic anpartners of the Nokias Devices & Services business; the extent to which we achieve anticipatefficiencies and cost savings, and anticipated smart device and mobile phone market share tagrowth rates for the smart device and mobile phone markets; ongoing downward pressure omobile devices; unanticipated restructuring expenses; any restrictions or limitations imposed authorities; the impact of Microsoft management and organizational changes resulting from Nokias Devices & Services business; the ability to retain key Nokia personnel; our effectivenethe Nokia Devices & Services business with Microsofts businesses; the response of existing Mdevices original equipment manufacturers; risks related to the Nokia Devices & Services interoperations; and our ability to realize our broader strategic and operating objectives. Actual rematerially differ because of the factors discussed above, in the comments made during this cand in the risk factors section of our Form 10-K, Form 10-Qs, and other reports and filings wand Exchange Commission. We do not undertake any duty to update any forward-looking st

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1

2

3

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7

8

2012, Q3 2012, Q4

Nokia Windows Pho

by Calendar

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?

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($0.12)

($0.06)

$0.04

($0.08)

$0.00

$0.08

($0.15)

($0.10)

($0.05)

$0.00

$0.05

$0.10

FY14E FY15E FY16E

GAAP

Non-GAAP*

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NPV

Assumed Operating Margin 5%

Annual Operating Income $2.3 billion $

NPV $15 billion $

Smartphone Revenue Opportunity2018E WorldwideSmartphone Shipments

1.7 billion

Assumed Market Share 15%

Annual Revenue ~$45 billion

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Microsoft benefits under more than

60 patent

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Nokia executives on board assuming key roles

Device/supply chain consolidation

Phone device R&D centered in Finland

Marketing/services consolidation

Nokia sales team intactIntegration executives mobilized

Working rhythms intact

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Net Income Twelve Months Ended

June 30,

(In millions) 2014 2015 2016

Estimated impact of acquisition (GAAP) ($1,005) ($541) $299

Estimated for acquisition-related amortization and

integration expenses $309 $548 $410

Estimated impact of acquisition (non-GAAP) ($696) $7 $709

Earnings per share Twelve Months EndedJune 30,

2014 2015 2016

Estimated impact of acquisition (GAAP) ($0.12) ($0.06) $0.04

Estimated for acquisition-related amortization and

integration expenses $0.04 $0.06 $0.04

Estimated impact of acquisition (non-GAAP) ($0.08) $0.00 $0.08

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