1. Financial Overview TIM MORSE

2. Value Creation

3. Operational Framework Best-in-Class Properties Reach and Scale Science and Know-how Re-aligned Cost Structure Search Agreement Rich Data People Leverage Key Strengths Product Innovation User Insights Brand Value Engagement  $ Search Experiences Editorial as Competitive Advantage Continue to Improve and Evolve Execution Growth M&A Complexity Global Platforms Focus, Prioritization, Accountability Fix Now } Credibility

4. Value Creation Business Priorities Growth Margin Expansion Disciplined Resource Allocation Capital Efficiency Innovation Monetization Execution

5. Maximize Free Cash Flow Fund M&A Offset Equity Dilution Build Execution Machine Simplify Focus on ROI Expand Margins Operational: Share in Yahoo! Japan success Strategic: Participate in China growth through Alibaba Financial Framework Total Yahoo! Valuation Cash Core Business Asian Assets

6. Revenue

7. Monetize Insights Maintain Value Proposition Next-Gen Experience Portfolio Management O&O Search ~$1.5B Fees, Listings & Other ~$1.2B O&O Display ~$1.7B Revenue: 2009E Please note: 2009 revenue segments calculated using 2009 actuals through Q3’09 plus the midpoint of Q4’09 revenue guidance. Affiliates ~$2.0B Revenue Ex-TAC

8. Intelligent supply and demand shaping International UU growth Matching relevance Better utilized existing inventory Multi-objective optimization Web analytics Pricing accuracy Yield optimization Video Behavioral targeting Marketplace design Rich ads Insights-ROI Offline-online behavioral convergence Editorial click enhancement Easy to do business with Content optimization Revenue Levers INNOVATION MONETIZATION EXECUTION Search volume User experience

9. Revenue Growth Priorities Revenue Opportunity 5% of U.S. Ad Revenue Share Shift = $650 million 1 Close 50% of RPS Gap in U.S. = ~$300 million 2 Increase International ARPU by 50% = $500+ million annually 3 Win in DisplayGrow Search Volume & RPS Improve Monetization of International Audience #3#1#2 Note 1: Source Veronis Suhler Stevenson Communications Industry Forecast (2009). Note 2: Source: Internal Yahoo! Estimates. RPS gap compared to market leader. Note 3: Source: Internal Yahoo! Estimates.

10. Cost Optimization

11. P&L impacts over time Cost Management Overview Phase I Budget Discipline Differentiation Plan for Efficiency Phase III Simplify and Streamline Structural Changes Continuous Improvement Phase II Self-funding Mentality Right-sourcing Invest for Productivity

12. Be Lean Fund ROI Development Analytical Compliance Support Transactional Differentiating Costs Break workforce costs into actionable categories Workforce ~$3B Traditional View

13. Repositioning Cost Structure Resource Optimization Engineers & Salespeople Low-cost Centers of Excellence $ Organizational Efficiency Global Functions & Priorities Cost Optimization @ Scale $ Smarter Solutions System & Platform Investments Cloud Deployment & Tech Refresh $ Better Infrastructure Utilization Automation & Standardization Low-cost DCs & Flattened Networks $

14. Structural Opportunities Engineering Productivity 1x Output Up to 2x Output

15. Structural Opportunities Geographic Resources Undifferentiated, OrganicDifferentiated, Planned High Cost Low Cost

16. Structural Opportunities Infrastructure

17. Structural Opportunities Internal “Plumbing” Convoluted, ComplexLean, Simple A B B A

18. Impact of Search Agreement No revenue sharing All basic Algo and Paid Search costs funded by Microsoft after regulatory clearance 1st of 3 $50M payments to Yahoo! Upfront transition costs Regulatory Clearance Algo Transition U.S. Paid Search Transition International Paid Search Transition Revenue sharing begins as each market rolls out Headcount transitions completed and remaining Yahoo! support cost rationalized 2nd and 3rd $50M payments to Yahoo! 2010 Modeling2011-12 Modeling Will guide & report together Early 2010Within 12 months Within 24 months Please note: Additional detail on the terms of the agreement can be found in Yahoo!’s 8-K dated July 29, 2009.

19. Financial Metrics

20. “New” Financial Metrics GAAP Operating Income GAAP Net Income & EPS Profitability Operating Margin Rate Return on Invested Capital Efficiency GAAP Cash Flows from Operating Activities Free Cash Flow Cash Generation “New”

21. 1. Amount shown by dotted line is non-GAAP and excludes a goodwill impairment charge of $488 million. In 2008, GAAP Operating Income was $13 million, GAAP Operating Margin was 0.2% and Return on Invested Capital was 0%. 2. 2008 GAAP Net Income includes a $401 million non-cash gain related to Alibaba Group’s initial public offering of Alibaba.com. Note: Operating Margin is calculated as Operating Income / Revenues. Return on Invested Capital represents Operating Income After Tax divided by Average Invested Capital; it is calculated as: (Operating Income x (1 – Effective Tax Rate)) / (2-yr average of Stockholders’ Equity + Interest Bearing Debt – Cash & Cash Equivalents – Investments in equity interests). Effective Tax Rate is calculated as (Provision for income taxes) / (Income before provision for income taxes, earnings in equity interests, and minority interests). GAAP Operating Income $941M $413M 1 GAAP Operating Margin Rate 15% 6% 1 GAAP Net Income & EPS $732M $589M 51¢41¢ 2 Return on Invested Capital 14% 5% 1

22. 2010-2012 Financial Objectives 15-20% Operating Margin Rate Accelerate Revenue Growth 15-20% Return on Invested Capital Returns ~3x 2009 3-4x 2009 Margins Revenue