1. Sarah K. Stewart Alex Shelton April 30, 2014 Source: investor.pandora.com

2. Source: investor.pandora.com 3. CC by Kris Krug Internet Radio Leader 4. CC by Samsung Tomorrow Everywhere. CC by Easa Shamih CC by Gordon Mei 5. CC by Travis Isaacs Pandora Listens 6. ! 2012 U.S. Mobile Display Ad Revenue Share 7. Behavioral Targeting Offline Services Technological Advancement 8. 175,000,000 9. Partners CC Richard Busch 10. Competitors CC by Adam Fagen 11. Structure Life Cycle Market Demand 12. 310 million CC by Matthijs 13. Assessment Difficulty Build, Retain, Maintain Monetization Operating Costs 14. Profit? CC by Ken Teegardin 15. Hiring Freeze Department Restructure Product Platform Development 16. Step 1: Department Restructure Step 2: Development Step 3: Quality Assurance Step 4: Present and Release Step 5: Maintenance CC by Nemodus Photos 17. Where others see targets, we see bulls-eyes. CC by Chris Potter 18. Advertising Agreements Privacy Policy User Agreements 19. Invasion of Privacy CC by Craig Maccubbin 20. (inthousands) $0 $750,000 $1,500,000 $2,250,000 $3,000,000 2011 2012 2013 2014 2015 2016 Projected Ad Revenue Projected Total Costs and Expenses (excl. content acquisition) Proposed Ad Revenue Proposed Total Costs and Expenses (excl. content acquisiton) Actual and Projected Ad Revenue and Expenses vs. Projected with Proposal 21. Strategy approval Hiring freeze and department restructure begins Mobile application development and testing Present to advertisers Launch CC by Nemodus Photos Monitor Key Metrics Changes Unfreeze hiring 22. Listener Hours Advertising Revenue Finances CC by Jillian Key Metrics 23. Powerful Mobile Platform Gain in Mobile Marketing Profit CC by Rhino Neal Why Wait?