Slide 1: MSFT Reporting Segments
Exhibit 99.1 MSFT Reporting Segments Frank Brod Chris Suh September 26, 2013
Slide 2: Forward-looking statements
During subject with theto this Securities risks call,and weand uncertainties. mayExchange make forward-looking Actual Commission. results We could statements, do materially not undertake whichdiffer areany predictions, because duty toofupdate factors projections, any discussed forward-looking or oth
Slide 3: Agenda
Agenda New Reporting Segments Overview One Microsoft Reporting Product to Segment Mapping Key Performance Indicators Q&A 3
Slide 4: New Segment Overview
Provide insight into business model economics Show progress against our strategy Increased accountability on gross margins Financial reporting follows how we manage the business New Segment Overview 4
Slide 5: Five New Reporting Segments
Five New Reporting Marketplaces Consumer Corporate-level | IPWindows Licensing Activity Segments* Enterprise Not Devices Attributed Other and | Server Consumer Licensing to aProducts Segment Commercial Other | Corporate Office Licensing Business * Please and Hardware Other | refer Dynamics to 5 4the
Slide 6: One Microsoft Attribution
One Microsoft Attribution Direct Reporting Attribution CostProduct of Revenue Product Direct andAttribution Shared NoS&M change Direct No change and Customer Direct and Segment Allocated Segments 6 Business Model & Customer Segments Revenue Direct Attribution New R&D Shared and Direct Old Direct
Slide 7: Product to Segment Mapping: Windows and D&C
ProducttotoD&C ~10% Accessories Segment Windows Licensing Mapping Volume (Academic) OEM Licensing 65%* ~90% Hardware ofto Windows D&C(mice Licensing Revenue & keyboards) ~10% Non-OEM to Windows D&C35%* Other of Retail Windows (Retail (fully Stores) Revenue packaged Windows 100% product) Live to D&C
Slide 8: Product to Commercial Segment Mapping
ProducttotoCommercial Azure Segment Mapping Other 100% Product to Commercial Transactional Other and Multi-Year *Percentages Licensing noted above 80%*relate of S&T to FY13 Revenue Q4 adjusted New Enterprise revenueServices Server and 20%* Tools of Revenue S&T Revenue 8 Traditional Licensing (Server
Slide 9: New Product to Segment Mapping: Bing & MSN
New Product to Segment Mapping Bing & MSN 100% to D&C Other Online Services Division Revenue *Percentages noted above relate to FY13 Q4 adjusted revenue 9
Slide 10: New Product to Segment Mapping: Office and Dynamics
New D&C to FY13 Product Licensing Q4 adjusted to Segment Remaining revenue Mapping to10 D&CBusiness Other ~90% Transactional to Commercial 15%* Licensing of MBD Revenue ~10% to100% Commercial to Commercial Other forLicensing Office 365 Business & Dynamics Annuity CRM 70%* Online of MBD Microsoft Rev
Slide 11: Product to Segment Mapping: Xbox and Other
Product Other Xbox to Segment Consoles, Mapping Xbox LIVE Windows Subscriptions, Phone Licensing 2nd andand 3rdIPParty 100% Games to D&C 100% Licensing to D&CSkype Hardware 100%New to Commercial Entertainment Licensing and Devices XboxDivision Studios (1st Revenue Party 11 Games) Percentages 100% to
Slide 12: Product to Segment Mapping Summary
Product revenue) Division (fully (100%) Annuity Studiospackaged Online (1st to (O365 OEM that Segment Party falls (100%)*Windows Services &product) Dynamics Games) into Mapping each Division (retail (100%)Marketplaces new CRM Revenue stores) reportable Bing Volume Online) (~10%)Windows Summary & MSN
Slide 13: Enhanced Disclosures
Enhanced starting with Disclosures Q1-FY14KPIs earnings are supplemental Earnings Release metrics & Related published Materials quarterly Newto provide Reporting additional Segments insight SEC Filings into business & MD&Aperformance KPIs 13 and aid in gauging progress of transition of business mode
Slide 14: KPIs—MSFT Consolidated
KPIs—MSFT Licensing OEM, Multi-year and Consolidated Total licensing, Contracted Rest Microsoft not of billed business Bookings Expected Geographic growth futureUnearned mix recognition Starting revenue Q1-FY14 of total forunearned Windows, Q4-FY13revenue Server 14 (by& Tools, quarter) MBDCommercial
Slide 15: KPIs—Segments
KPIs—Segments Dynamics Tools Software revenue revenue Windows growth growth Office Windows Enterprise consumer Pro revenue Services revenue growth revenue growth Windows Office growthcommercial Server (non-Pro) product revenue revenue revenue growth growth growth Windows Dynamics Enterprise volume r
Slide 16: KPIs—Segments
KPIs—Segments growth US SearchEDD shareXbox Starting console Q1-FY14 unit sales Q4-FY13 Xbox 16 LIVE members Skype monthly connected users Xbox console unit sales Online Services Division Online Advertising revenue growth Online Advertising revenue
Slide 17: FY14 Q1 KPIs
FY14 Q1growth Consumer—Hardware revenue Commercial KPIs cloud Microsoft Devices revenue Xbox &Consolidated Consumer—Licensing growth console Office unit Bookings sales 365 commercial Surface growth Windows revenue Contracted seat Progrowth Commercial—Licensing revenue notDevices billed growthUnearne
Slide 18: What to expect for Q1 FY14
Whatfor slide to expect revenueinand October operating All financials, income results earnings in the commentary old segment andview forward for Q1 looking FY14 statements 18 will be reported in the new segments New KPI metrics will be published starting with Q1 FY14 results A supplemental
Slide 19: Copyright and disclaimer
© 2013not information should WARRANTIES, Microsoft beherein interpreted EXPRESS, Corporation. is for informational to beIMPLIED aAll commitment rights purposes ORreserved. STATUTORY, on only theMicrosoft, part andof represents AS Microsoft, Windows, TO THEtheand INFORMATION current Windows Microsoft
Slide 20: Appendix
Appendix
Slide 21: Financial Statements – One Microsoft
$Financial 17,044 77,849 2,046 6,740 Statements 20,046 19,495 36,261 – 6,203 One Microsoft 921 32,438 37,182 37,126 Other 2013 4,644 Licensing 372 $41,770 57,600 Hardware 2012 2,495 (485) 317,240 2 1$ Devices 73,723 1,998REVENUE 21,733 and Consumer 34,463 ($ in579 Other millions) 35,042 Licensing 9,
Slide 22: Financial Statements – One Microsoft FY12 quarters
Financial 1,738 1,513 171 56,193 9,126 10,109 7,202 22Statements FY12Q2 10,119 9,585 1,282 1,166 (5) – One $ 15,247 11,401 10,751 Microsoft 395 FY12Q4 FY12Q2 4,141 Other (544) 25 428 Licensing $ 4,964 20,885 $ 18,059 8,395 Hardware 9536,740 4,763 114 19,495 8,509 31,437 2 1FY12Q3 Devices 6,203 7,153
Slide 23: Financial Statements – One Microsoft FY13 quarters
Financial 1,400 1,563 $216 57,600 9,542 7,162 7,018 GROSS Statements FY13Q2 8,945MARGIN 10,6271,248 1,574 (557) – One 10,193 $12,201 15,764 Microsoft 23 FY13Q1 FY13Q4 393Other 3,929 (1,347) 677 Licensing 430 $ 19,896 $4,752 16,008 Hardware 9,085 6,461 2,808 264 19,021 5,703 3 9,349 2 16,618 Devices
Slide 24: Definitions
Definitions and licensing licensing; subscriptions advertising; categories makeofmore and above. –the display Devices (“Xbox certain Windows informed 24advertising; Platform”); other anddecisions operating Consumer patentSubscription, Surface; licensing online, system Devices and and and revenue; an
Slide 25: Definitions
Definitions through Studio, Microsoft comprising: online offerings, System seamless Office –Enterprise Commercial Center, and for operations business Dynamics Services, andOur Windows across (“Commercial Commercial CRM including theEmbedded; Online; user’s Premier segments Office”), hardware Windows
Slide 26: Definitions – internal accounting
Definitions internal accounting – Corporate policies and that Other differ Corporate from U.S. and GAAP Other includes relate to adjustments revenue recognition, to conform income our internal statement accounting classification, policies and todepreciation. U.S. GAAP and26 1corporate-level activity