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Copyright © 2012 Arcstone Equity Research Bo Brustkern Managing Director 720-259-0472 [email protected] om 03 April 2012

Fb arcstone presentation_2012-04-03

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Page 1: Fb arcstone presentation_2012-04-03

Copyright © 2012 Arcstone Equity Research

Bo BrustkernManaging [email protected]

03 April 2012

Page 2: Fb arcstone presentation_2012-04-03

Bo Brustkern 720-259-0472 [email protected]

Arcstone Equity Research exists to bring a bright light into the dark room of private company market transactions. We specialize in the research and valuation of high growth private companies. Our research universe includes many companies currently trading in the private company market.

We serve the deep pools of capital looking to establish positions in leading private companies. Our clients benefit from privileged access, deep dives and customized investment research.

For access to our analysts, please contact me directly at 720-259-0472

Quora | Klout | Twitter | LinkedIn

Important disclosures appear in the Appendix.

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Bo Brustkern 720-259-0472 [email protected]

2009-2017 Revenue Tracks GOOG

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Bo Brustkern 720-259-0472 [email protected]

2011-2020 Revenue/MAU remains far below GOOG Benchmark

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Bo Brustkern 720-259-0472 [email protected]

2009-2020 Income Statement Forecast Detail

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Bo Brustkern 720-259-0472 [email protected]

Discounted Cash Flow Model

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Bo Brustkern 720-259-0472 [email protected]

DCF Analysis Summary (Pre-IPO)

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Bo Brustkern 720-259-0472 [email protected]

Pro-forma Diluted Shares Outstanding

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Bo Brustkern 720-259-0472 [email protected]

Valuation Table & Sensitivity Analysis

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Bo Brustkern 720-259-0472 [email protected]

TEV Multiples compared to GOOG circa 2004

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Bo Brustkern 720-259-0472 [email protected]

Multiples Comparison Table

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Bo Brustkern 720-259-0472 [email protected]

This presentation is solely for informational purposes and is not intended to be used as the primary basis of investment decisions. Arcstone Equity Research, LLC (“Arcstone”) has not assessed the suitability of the subject company for any person. Nothing in this presentation constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to individual circumstances or otherwise constitutes a personal recommendation to the reader of this presentation. Arcstone does not offer advice on the tax consequences of investment. This presentation is not an offer or the solicitation of an offer to sell or buy any security. Arcstone is not a broker-dealer and is not registered as an investment advisor. Any person using this presentation should consult with their financial advisers and independent tax advisers before making any investment decision. Arcstone is a private company that is not affiliated with Facebook, Inc. Principals and employees of Arcstone do not own any shares of Facebook. However, a principal of Arcstone has been engaged by a third party to advise it and others on the value of Facebook, and the Arcstone principal has provided that advice. The third party and others may have entered into a transaction or transactions involving shares of Facebook. The Arcstone principal will not purchase or sell shares of Facebook as part of the transactions. Arcstone believes that the analysis provided by its principal to the third party was consistent with the information provided in this presentation. The analysis provided in this presentation, however, is based on more recent, and more reliable, information about Facebook than was available to the Arcstone principal at the time the analysis was provided to the third party, and therefore the two analyses are not identical.Information and opinions presented in this presentation were obtained or derived from sources Arcstone believes are reliable, but Arcstone makes no representations as to their accuracy or completeness. Arcstone accepts no liability for loss arising from the use of the material presented in this presentation. This presentation is not to be relied upon in substitution for the exercise of independent judgment. Arcstone may have issued, and may in the future issue, other presentations that are inconsistent with, and reach different conclusions from, the information presented in this presentation. Those presentations reflect the different assumptions, views and analytical methods of the analysts who prepare them and Arcstone is under no obligation to ensure that such other presentations are brought to the attention of any recipient of this presentation. Arcstone may be involved in many activities that relate to companies mentioned in this presentation. These activities may include business valuation, investment research, and/or advisory services.No representation or warranty, express or implied, is made regarding future performance. Past performance should not be taken as an indication or guarantee of future performance. Information, opinions and estimates contained in this presentation reflect a judgment at its original date of publication by Arcstone and are subject to change without notice. The price, value of and income from any of the securities or financial instruments mentioned in this presentation can fall as well as rise. Principal is not guaranteed. Equity prices are variable. Investments discussed in this presentation have a high level of volatility. High volatility investments may experience sudden and large falls in their value causing losses when that investment is realized. Those losses may equal your original investment. This material is not directed to, intended for distribution to, or use by, any person or entity if Arcstone is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to such person or entity. The securities described in this presentation may not have been registered under the Securities Act of 1933, as amended, and, in such case, may not be offered or sold in the United States or to U.S. persons unless they have been so registered, or an exemption from the registration requirements is available. This presentation may not be may be altered in any way, reproduced, distributed, transmitted, provided or disclosed in any manner to any other person, in whole or in part, for any purpose without the prior written consent of Arcstone Equity Research, LLC. All material presented in this presentation, unless specifically indicated otherwise, is under copyright to Arcstone. If this presentation is being distributed by an institution other than Arcstone, or its affiliates, that institution is solely responsible for distribution. This presentation does not constitute investment advice by Arcstone to the clients of the distributing institution, and neither Arcstone, its affiliates, and their respective officers, directors and employees accept any liability whatsoever for any direct or consequential loss arising from their use of this presentation or its content.All trademarks, service marks and logos used in this presentation are trademarks or service marks or registered trademarks or service marks of Arcstone or its affiliates. Copyright 2012 Arcstone Equity Research, LLC. All Rights Reserved. Additional information is available upon request.

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Copyright © 2012 Arcstone Equity Research

Thank you.

Bo BrustkernManaging [email protected]