3. This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors listed at the end of this presentation, or discussed in today’s press release, in the management discussion and analysis section of the company’s 2004 Form 10-K and our most recent 10-Q or in other reports and filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward looking statements.
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6. Reporting Segments Microsoft Great Plains Microsoft Navision Microsoft Axapta Microsoft Solomon Microsoft CRM MBN/Retail Manager Microsoft Partner Program Windows Server SQL Server Exchange Server Other Servers Developer Tools Training, Certification & MS Press Premier Product Support Services Microsoft Consulting Services Professional Product Support Xbox Consumer software & hardware PC and Online games TV Platform MSN Search MSN Internet Access MSN Premium Web Services Windows XP – Pro & Home Windows Media Center Edition Tablet PC Other standard Windows O/S Windows Mobile Software Windows Embedded Device O/S MapPoint Windows Automotive Microsoft Office Microsoft Project Microsoft Visio SharePoint Portal Server Microsoft LiveMeeting OneNote
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8. Fiscal Q4 Results* *FY05-Q4 G&A includes legal costs resulting from a charge of $756 million for anti-trust-related claims, including $626 million for a settlement with IBM
9. Q4 Revenue By 7 Segments Broad-based demand drives strong Q4 revenue Server & Tools $2.7B ▲ 16% Information Worker $2.9B ▲ 3% Microsoft Business Solutions $247M ▲ 11% Client $3.0B ▲ 10% Home & Entertainment $610M ▲ 22% MSN $582M ▼ 1% Mobile and Embedded Devices $97M ▲ 39%
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20. Q4 GAAP Operating Income* $2,175 $800 $1,997 ($76) $104 ($14) ($179) ($1,818) $2,989 *Includes stock-based compensation expense and legal charges **Represents unallocated Corp. expenses which primarily include corporate operations related to sales and marketing, product support services, human resources, legal, finance, IT, corporate development and procurement activities, certain research and development costs, and accrued legal contingencies.
27. Reconciliation Of Differences Between GAAP And Non-GAAP Financial Measures: Operating Income The non-GAAP measures provided above, which remove legal settlements and stock-based compensation expenses from the most directly comparable GAAP measures, are included as an additional clarifying item to aid readers of the financial statements in further understanding the Company's fourth quarter and fiscal year 2005 performance and the impact that certain items and events had on the financial results. The non-GAAP financial measures provided above should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
28. Reconciliation Of Differences Between GAAP And Non-GAAP Financial Measures: Net Income The non-GAAP measures provided above, which remove legal settlements and stock-based compensation expenses from the most directly comparable GAAP measures, are included as an additional clarifying item to aid readers of the financial statements in further understanding the Company's fourth quarter and fiscal year 2005 performance and the impact that certain items and events had on the financial results. The non-GAAP financial measures provided above should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
29. Reconciliation Of Differences Between GAAP And Non-GAAP Financial Measures: Earnings Per Share The non-GAAP measures provided above, which remove legal settlements and stock-based compensation expenses from the most directly comparable GAAP measures, are included as an additional clarifying item to aid readers of the financial statements in further understanding the Company's fourth quarter and fiscal year 2005 performance and the impact that certain items and events had on the financial results. The non-GAAP financial measures provided above should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.