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3. 2013 is the third year of the Microsoft Computing Safety Index (MCSI), Microsoft’s key tool for tracking the computing safety behavior of almost 10,500 consumers worldwide. The original 2011 MCSI survey was conducted in Brazil, France, Germany, the United Kingdom, and the United States. The 2012 MCSI was expanded to include 20 countries and regions (shown below) where 60 percent of the globe’s 2.4 billion Internet users live. The 2013 survey followed suit and was conducted in May, 2013. The MCSI measures the actions (or steps) that consumers take to help keep themselves and their families safe online based on self-reports of their own experience. The more steps they report taking, the higher their online safety score, with 100 being the highest rating possible. Adults 18 and older were recruited from online research panels in each country/region, with samples that reflect the age and gender mix of those who go online there. This is the most comprehensive picture of which we are aware. One of the goals of the Index is to measure consumer use of various safety settings built into upgrades of operating systems. Doing this requires guiding respondents to check the settings on their computers. For this reason, survey participants were limited to responding on devices, whether computer, smartphone, or tablet, that use some version of the Windows operating system. Specific changes to questions that accommodate new technology and greater use of mobile access are shown on Slide 26 in the Appendix of this deck. 2013 Microsoft Computing Safety Index Since its inception, the research for building the MCSI has been conducted for Microsoft by TNS Global Research. TNS is the world’s largest custom research company providing consumer, employee, and business insight to clients and governments from 75 offices worldwide. 20 Country/Region AUBEBRCACNEGFRDEINIDJPKRMYMXRUSGESTRUKUS Sample size10,484530515530527529488527538524538524512516524523526 525530532 Internet users (millions) 1.45 B208802851117516712055 102411843613.9313552.9245 3

4. Safer computing is built in three levels Through statistical analysis, researchers grouped individual questions and assigned points to each so that each respondent receives a score of 0 to 100. Because the Index has been designed to reflect the evolving issues consumers face online, specific items are added and deleted from the Index year to year. Proactive involvement in protecting self online Foundational: Settings and characteristics of users’ computing environments that can keep them safe Technical: Tools that can help users stay safer online Behavioral: Actions users take—or don’t take—to stay safe and avoid or fix problems Smart choices of sites Strong passwords Education Behavioral 30 points Social network settings Mobile device safety Browser settings and phishing filters Technical 40 points Software updates AntivirusFirewall Up-to-date, genuine version of Windows (Vista or newer) Secure wireless networks Foundational 30 points 4

5. 5

6. Online bullying victim Personal reputation Professional reputation Phishing Data leak (from a bank, credit bureau, employer) ID theft (not phishing) Online impersonation Illicit access (email or social network ) Botnet (computer enlisted in it) Persistent pop-ups Virus (not a botnet) Global loss* $23 Billion USD 179,750 years The high cost of trouble on the Internet 6 *Estimated financial and time loss as reported by survey respondents to mitigate risks.

7. 7 Internet users report problems they experienced in past year Online bullying victim Personal reputation Professional reputationPhishing Data leak (bank, credit bureau, employer) ID theft (not phishing) Online impersonation Illicit access (email or social network) Botnet (computer enlisted in it) Persistent pop-ups Virus (not a botnet) Australia4%8%5%10%3%5% 10%3%27%13% Belgium2%3%1%6%1%2% 8%2%16%4% Brazil8%29%23%14%9%7%11%14%9%38%18% Canada3%7%4%7%3%4%3%9%2%23%13% China14%25%19%31%22%14%22%29%16%39%37% Egypt35%30%22%24%11%16%22%27%13%43%39% France1%2%1%5%1% 3%0%11%2% Germany1%7%5%7%3%5% 8%2%16%15% India12%18%19%20%12% 16%19%14%29%26% Indonesia10%30%24%14%12%11% 28%11%31%19% Japan1%3%1% 3%2%1%6%5% Korea1%18%7%4%13% 8%7%5%27%21% Malaysia9%33%25%19%12%10%19%22%11%36%23% Mexico10%18%17%8%6% 8%21%9%38%17% Russia8%14%9%7%5%7%9%27%12%54%43% Singapore5%12%8%12%8%7%11%15%7%25%18% Spain3%10%8%7%3%6% 15%6%33%15% Turkey11%14%10%6% 5%8%12%4%26%18% United Kingdom1%3%2%5%1%3%5%8%3%17%8% United States3%6%4%7%3%4%5%9%4%20%11%

8. 8 Damage to professional reputation is the most costly loss worldwide Global avg. loss per victim (USD) $164$97$535$158$200$218$158$87$129$50$143 Online bullying victim Personal reputation Professional reputation Phishing Data leak (from a bank, credit bureau, employer) ID theft (not phishing) Online impersonation Illicit access (email or social network ) Botnet (computer enlisted in it) Persistent pop-ups Virus (not a botnet)

9. Median cost of problems by country/region Online bullying victim Personal reputation Professional reputation Phishing Data leak (from a bank, credit bureau, employer) ID theft (not phishing) Online impersonation Illicit access (email or social network ) Botnet (computer enlisted in it) Persistent pop-ups Virus (not a botnet) US$LocalUS$LocalUS$LocalUS$LocalUS$LocalUS$LocalUS$LocalUS$LocalUS$LocalUS$LocalUS$Local Australia AUD $481525$318348$196214$128140$183200$275300$92100$115125$7885$110120$92100 Belgium EUR $3,9783,015$132100$1,9791,500$9975$143109$660500$11789$666505$396300$132100$313238 Brazil BRL $78175$44100$44100$89200$4451,000$89200$89200$164370$333750$47105$67150 Canada CAD $484500$102105$484500$174180$194200$366378$484500$7880$4850$9295$8790 China CNY $33200$81500$1631,000$49300$93569$65400$49300$16100$49300$16100$24150 Egypt EGP $21150$36250$43300$51358$41290$21150$1431,000$100700$43300$14100$17120 France EUR $1,3201,000——$198150$416315$924700$637483$561425——$158120$264200$12595 Germany EUR $6952$132100$363275$181138$693525$264200$198150$356270$132100$7960$132100 India INR $513,000$211,250$342,000$412,450$744,400$1277,500$855,000$342,000$342,000$382,250$251,500 Indonesia IDR $90900,000$35350,000$15150,000$23225,000$1001,000,000$50500,000$50500,000$20200,000$25250,000$25250,000$20200,000 Japan JPY ——$35035,000$50050,000$60060,000——$1,500150,000$26026,000——$76876,839$101,000$1,350135,000 Korea KRW ——$2730,000$3640,000$90100,000$2932,500$4550,000$4550,000$7785,000$3640,000$1820,000$4550,000 Malaysia MYR $63200$125400$94300$157500$3141,000$94300$119380$63200$71225$31100$47150 Mexico MXN $40500$1782,250$53675$2573,250$1982,500$1982,500$59750$791,000$791,000$40500$40500 Russia RUB $15500$361,175$311,000$311,000$923,000$391,250$15500$12400$12400$15500$15500 Singapore SGD $22$118150$552700$158200$217275$197250$374475$236300$79100$158200$4355 Spain EUR $389295$1613$6953$6650$7960$198150$7355$11588$165125$6650$5340 Turkey TRY $52100$260500$338650$99190$260500$260500$164315$101195$78150$3670$2650 United Kingdom GBP $3120$3120$153$100$153100$590385$153100$613400$766500$12380$7750$7750 United States USD $350N/A$100N/A$2,600N/A$328N/A$230N/A$100N/A$300N/A$88N/A$100N/A$105N/A$126N/A 9

10. Consumers see themselves as best able to protect their information “Who do you feel is most effective at helping you maintain the online security, privacy, and safety of your personal information online?” Most EffectiveSelfBusGov’t 20-Country/Region61%20%9% Australia63%15%10% Belgium66%15%5% Brazil66%22%8% Canada69%16%6% China46%30%16% Egypt44%22%16% France70%10%7% Germany72%10%3% India55%24%11% Indonesia74%18%6% Japan63%31%1% Korea56%22%15% Malaysia66%18%10% Mexico65%24%6% Russia60%29%3% Singapore59%16%20% Spain41%20%15% Turkey48%21%22% United Kingdom70%14%6% United States64%16%4% 10

11. Global score is virtually unchanged versus 2012 34.6 34.3 BehavioralTechnicalFoundationalTotalvs. 2012 20-Country/Region10.49.514.734.6  Australia11.610.317.639.5  Belgium9.39.116.334.7  Brazil10.79.414.034.1  Canada11.19.316.837.2  China9.58.513.431.4  Egypt11.79.712.734.1  France8.27.513.729.4  Germany8.47.616.632.5  India12.710.612.736.1  Indonesia13.112.811.837.7  Japan5.44.313.723.4  Korea7.57.112.527.1  Malaysia13.814.114.442.3  Mexico10.910.415.036.3  Russia10.39.713.733.8  Singapore11.2 16.338.7  Spain10.39.814.534.6  Turkey13.311.515.340.2  United Kingdom10.58.617.136.1  United States7.69.615.933.1  MCSI reveals safety behavior is not improving 11

12. Consumers report they aren’t using all available foundational protections Some say they are not using the most basic tools that could stave off trouble 12

13. In fact, many are better protected than they realize Directing users to check their system settings reveals a more positive picture 13 See Slide 22 for a description of how computer settings were checked.

14. Reported use of foundational protections by country/region Up-to-date Windows (Vista or newer) Installed antimalware software on my PC or laptop Turn on and leave on my computer firewall Run software updates or turn on automatic updates Use secured wireless networks Before checkingAfter checkingBefore checkingAfter checkingBefore checkingAfter checking 20-Country/Region72%54% 95% 40% 84% 40% 82% 33% Australia83%66% 97% 49% 87% 53% 87% 37% Belgium78%48% 97% 49% 82% 52% 92% 38% Brazil75%50% 98% 40% 88% 35% 85% 26% Canada78%60% 96% 51% 87% 52% 89% 34% China47%49% 96% 51% 83% 30% 70% 45% Egypt63%50% 87% 39% 78% 34% 64% 21% France77%39% 96% 41% 86% 42% 91% 20% Germany74%63% 98% 53% 86% 49% 86% 34% India61%49% 95% 25% 74% 33% 71% 36% Indonesia60%49% 95% 34% 78% 26% 66% 23% Japan76%56% 92% 39% 91% 30% 91% 20% Korea53%51% 96% 48% 91% 30% 84% 25% Malaysia74%55% 95% 31% 79% 32% 70% 38% Mexico74%48% 97% 36% 83% 39% 82% 42% Russia68%60% 95% 30% 77% 48% 75% 20% Singapore83%58% 94% 37% 88% 43% 86% 42% Spain69%57% 96% 34% 87% 38% 83% 39% Turkey74%54% 92% 35% 82% 36% 79% 47% United Kingdom84%61% 96% 44% 90% 49% 90% 39% United States83%59% 96% 40% 88% 47% 91% 29% 14

15. Key technical tools are not widely used Use among smartphone owners Limit what strangers can see on social networks Limit amount of personal info available online Change social network privacy settings Use a PIN or password to lock a mobile device Limit what friends can see on social networks Use screen names and gamer tags, not my real name Use phishing and web browser filters Hide my computer's identity from websites Use a mobile security app or feature Edit or delete info to protect my online reputation Use search engines to monitor and manage my personal info online Used a service to edit or delete information about me online Respondent use of each of the 12 technical tools 15

16. Use of technical tools by country/region Limit what strangers can see on my social networking site Take steps to limit the amount of personal info available about myself online Change my social network privacy settings to limit what I share Use a PIN or password to lock my mobile device Limit what friends can see on my social networking site Create screen names and/or gamer tags that are not my real name Use phishing and web browser filters Take steps to hide my computer's identity from websites Edit or delete information about me that might impact my online reputation Use a mobile security application Use search engines to monitor and manage my personal information online Used a service to edit or delete information about me online 20-Country/Region36% 33% 29%23%21% 19% 21% 15%10% Australia43%48%37% 39% 29% 23% 21% 16% 13%6% Belgium38%39%30% 43% 33%28%23%13%11% 13% 17%3% Brazil38%36%32% 18% 31%18%25%21%23% 24% 16%13% Canada35%47%32% 34% 28%33%24%27%16% 12% 4% China33%34%32% 16% 14%27%25%20% 13%11% Egypt30%26%36% 42% 35%20%14%20%27% 28% 20%18% France29%30%20% 41% 27%24%19%15%7% 15% 13%3% Germany26%33%26% 39% 21%12%22%19%10% 22% 14%4% India34%41%38% 35% 34%16%20%21%25% 30% 21%17% Indonesia47%36%47% 44% 40%22%21%23%29% 33% 23%26% Japan20%7%9% 11% 15%25%16%7%5% 11% 7%3% Korea23%33%17% 26% 19%10%20%11%17% 22% 14%8% Malaysia48%44%46% 51% 46%31%26%28%30% 35% 24%28% Mexico47%30%45% 32% 39%21% 24%27% 16% 13%12% Russia46%40%41% 28% 31%29%19%21%12% 19% 10%8% Singapore42% 43% 41% 33%25%20%27%25% 22% 14%11% Spain40%31%33% 37% 32%23%18%20%23% 17% 14%11% Turkey45%33%47% 38% 36%21%26%24%26% 25% 12% United Kingdom34%41%30% 33% 24%25%22%19%14% 16% 10%5% United States30%40%26% 27% 19%27%18%23%11% 18% 7%6% 16 only

17. Conduct transactions on reputable sites ONLY Create passwords using uppercase and lowercase letters, numbers, and symbols Educate myself about the latest steps to protect against identity theft Use unique passwords for each account or website Educate myself about the latest steps for protecting my online reputation Am selective when texting Use websites with https:// Some respondents behave cautiously, but are not proactive Users report not behaving in risky ways, but miss taking active steps to protect themselves 17

18. Behavioral steps by country/region Conduct transactions on reputable sites ONLY Create passwords using upper and lower case letters, numbers and symbols Educate myself about the latest steps to help prevent identity theft Create unique passwords for each account or website I use Educate myself about the latest steps to protect my online reputation Am selective about what I share in text messages Use secure websites (https://) 20-Country/Region45% 37%31% 30% Australia49%51%40%33%29%41%32% Belgium54%40%23%20%15%31%42% Brazil47%42%41%17%46%29%32% Canada54%51%33%34%22%37%33% China45%47%37%33%25%12%28% Egypt36%46%51%45%48%20%27% France48%36%16%17%11%27%43% Germany44%49%24%22%12%19%34% India37%39%55%41%55%36%33% Indonesia52%42%53%41%48%50%21% Japan19%25%28%18%16%9%14% Korea44%45%32%15%22%14%13% Malaysia46%48%59%48%58%27%36% Mexico45%49%30%43%28%34%30% Russia46%55%26%36%26%42%17% Singapore44% 41%29%39% 27% Spain41% 31% 26%42%32% Turkey63%48% 36%42%38%43% United Kingdom45%49%35%32%26%36%28% United States39%42%36%34%21%28%26% 18

19. 2013 MCSI Additional Findings 19

20. Average number of safety steps by country/region 7 behaviors12 technical tools 5 foundational settings Before checkingAfter checking 20-Country/Region 2.5 2.92.4 3.4 Australia 2.83.1 2.9 3.7 Belgium 2.32.7 3.6 Brazil 2.52.9 2.3 3.4 Canada 2.72.8 3.6 China 2.32.6 2.3 3.3 Egypt 2.72.9 2.1 2.7 France 2.02.3 2.2 3.4 Germany 2.02.3 2.7 3.5 India 3.03.2 2.1 3.2 Indonesia 3.13.9 1.9 2.9 Japan 1.3 2.2 3.4 Korea 1.92.2 2.1 3.3 Malaysia 3.24.3 2.3 3.1 Mexico 2.63.2 2.4 3.5 Russia 2.53.0 2.3 3.2 Singapore 2.63.4 2.6 3.7 Spain 2.42.9 2.4 3.5 Turkey 3.23.5 2.5 3.5 United Kingdom 2.52.6 2.8 3.7 United States 2.3 2.6 3.7 Of the 5 foundational settings, respondents reported using 2.4; after checking, it was actually 3.4. Of 12 technical tools to manage online reputation and safety, the average respondent used only about 3. Of the 7 behaviors to improve online safety, the average respondent demonstrated 2.5. Checking for foundational settings During the survey, respondents were asked about five foundational elements of their PC’s safety: Up-to-date Windows (Vista or newer) Antimalware software installed Firewall protection Automatic software updates Use of secure wireless connections At the end of the survey, they were guided to verify their answers on the three that are prone to confusion and easy to check: antimalware software, firewall protection, and automatic updates. Many respondents reported discovering that they were better protected than they had known. 20 See Slide 27 for the % conversion of safety steps by country/region

21. Proactive Tips for Greater Online Safety 21

22. Top tips for online safety* 1: Defend your devices Defend your devices Strengthen your devices’ defenses Avoid downloading malware 2: Protect sensitive personal information Protect sensitive personal information Look for signs of a secure webpage (https://) Save financial transactions for home Keep sensitive info to yourself Avoid scams 3: Create strong passwords Create strong passwords Use unique, long, and strong passwords & PINs Keep them secret 22 *Click the links for detailed information on each tip. 4: Take charge of your online reputation Take charge of your online reputation Pay attention to what’s online about you Cultivate an accurate, positive reputation 5: Use social networks more safely Use social networks more safely Use Settings or Options to manage your privacy Accept new friends wisely Be careful what you post 6: Take extra steps to help keep kids safer online Take extra steps to help keep kids safer online Play online with kids Manage and monitor kids’ computer use Get reports of kids’ computer use

23. “Do 1 Thing” to stay safer online 23 We can take many steps to help protect ourselves and our families online. Microsoft is asking you to “Do 1 Thing” to stay safer online. Take any of the actions below and Microsoft will make a donation to TechSoup Global, a nonprofit organization using technology to solve global problems and foster social change!TechSoup Global Share your #Do1Thing story on the new Microsoft Safer Online webpage: Microsoft.com/SaferOnline Microsoft.com/SaferOnline Change your profile pictures to the #Do1Thing icon (bit.ly/MSFTdo1thing) & tells us on Twitter or Facebook.bit.ly/MSFTdo1thingTwitter Facebook Post, tweet, blog, or share the icon or webpage with your social circles using the hashtag #Do1Thing. Sample post: Tell @Safer_Online the 1 thing you can do to stay safer online! #Do1Thing #SID2014 http://bit.ly/1e4XvQM

24. 24

25. 20 /Country Region AUBEBRCACNEGFRDEINIDJPKRMYMXRUSGESTRUKUS MCSI sample 10,484530515530527529488527538524538524512516524523526 525530532 Internet users (millions) 1.45 B208802851117516712055 102411843613.9313552.9245 2013 MCSI samples 25

26. 26 Building the 2013 Index Conduct transactions on reputable sites ONLY Use websites with an https:// connection for highly sensitive transactions Create unique passwords for each account or website I use Create passwords using uppercase and lowercase letters, numbers, and symbols Educate myself about the latest steps to help prevent identity theft Educate myself about the latest steps to protect my online reputation NEW: Being selective about what I share through text messages Create screen names and gamer tags that are not my real name Change my social network privacy settings to limit what information I share Take steps to limit the amount of personal information available about myself online Use phishing and web browser filters Take steps to hide my computer`s identity from the websites I visit Use search engines to monitor and manage my personal information online Edit or delete information about me online that might impact my online reputation Used a service to edit or delete information about me online NEW: Use a mobile security application or feature (Smartphone users only) NEW: Use a PIN or password to lock my mobile device (Smartphone users only) NEW: Limit what friends can see on my social network site NEW: Limit what strangers can see on my social network site Up to date operating system (Vista or newer) Turn on and leave on my computer firewall Install or update antimalware software on my PC or laptop Run software updates or turn on automatic updates Use secured wireless networks Behavioral 30 points Technical 40 points Foundational 30 points New questions accommodate evolving technology and greater use of mobile devices

27. All safety steps by country/region Conduct trans- actions on reputabl e sites ONLY Create passwds using upper- and lower- case letters, numbers and symbols Educate myself about the latest steps to prevent identity theft Create unique passwds for each account or web- site I use Educate myself about the latest steps to protect my online reputatio n Am selective about what I share in text msgs Use websites with https:// Limit what stranger s can see on my social network site Limit the amt of personal info available about me online Change my social network privacy settings to limit what I share Use a PIN or passwd to lock my mobile device Limit what friends can see on my social network site Create screen names and gamer tags that are not my real name Use phishing & web browser filters Take steps to hide my PC’s identity from websites Edit or delete informati on about me that might impact my online reputatio n Use a mobile security app Use search engines to monitor and manage my personal info online Use a service to edit or delete info about me onlin e Use up- to-date Windows (Vista or newer) Installed antimalware software on my PC or laptop Turn on and leave on my computer firewall Run software updates or turn on automatic updates Use secured wireless networks Before checking After checking Before checking After checking Before checking After checking 20-Country/ Region 45% 37%31% 30%36% 33% 29%23%21% 19% 21% 15%10% 72%54% 95% 40% 84% 40% 82% 33% Australia 49%51%40%33%29%41%32%43%48%37% 39% 29% 23% 21% 16% 13%6% 83%66% 97% 49% 87% 53% 87% 37% Belgium 54%40%23%20%15%31%42%38%39%30% 43% 33%28%23%13%11% 13% 17%3% 78%48% 97% 49% 82% 52% 92% 38% Brazil 47%42%41%17%46%29%32%38%36%32% 18% 31%18%25%21%23% 24% 16%13% 75%50% 98% 40% 88% 35% 85% 26% Canada 54%51%33%34%22%37%33%35%47%32% 34% 28%33%24%27%16% 12% 4% 78%60% 96% 51% 87% 52% 89% 34% China 45%47%37%33%25%12%28%33%34%32% 16% 14%27%25%20% 13%11% 47%49% 96% 51% 83% 30% 70% 45% Egypt 36%46%51%45%48%20%27%30%26%36% 42% 35%20%14%20%27% 28% 20%18% 63%50% 87% 39% 78% 34% 64% 21% France 48%36%16%17%11%27%43%29%30%20% 41% 27%24%19%15%7% 15% 13%3% 77%39% 96% 41% 86% 42% 91% 20% Germany 44%49%24%22%12%19%34%26%33%26% 39% 21%12%22%19%10% 22% 14%4% 74%63% 98% 53% 86% 49% 86% 34% India 37%39%55%41%55%36%33%34%41%38% 35% 34%16%20%21%25% 30% 21%17% 61%49% 95% 25% 74% 33% 71% 36% Indonesia 52%42%53%41%48%50%21%47%36%47% 44% 40%22%21%23%29% 33% 23%26% 60%49% 95% 34% 78% 26% 66% 23% Japan 19%25%28%18%16%9%14%20%7%9% 11% 15%25%16%7%5% 11% 7%3% 76%56% 92% 39% 91% 30% 91% 20% Korea 44%45%32%15%22%14%13%23%33%17% 26% 19%10%20%11%17% 22% 14%8% 53%51% 96% 48% 91% 30% 84% 25% Malaysia 46%48%59%48%58%27%36%48%44%46% 51% 46%31%26%28%30% 35% 24%28% 74%55% 95% 31% 79% 32% 70% 38% Mexico 45%49%30%43%28%34%30%47%30%45% 32% 39%21% 24%27% 16% 13%12% 74%48% 97% 36% 83% 39% 82% 42% Russia 46%55%26%36%26%42%17%46%40%41% 28% 31%29%19%21%12% 19% 10%8% 68%60% 95% 30% 77% 48% 75% 20% Singapore 44% 41%29%39% 27%42% 43% 41% 33%25%20%27%25% 22% 14%11% 83%58% 94% 37% 88% 43% 86% 42% Spain 41% 31% 26%42%32%40%31%33% 37% 32%23%18%20%23% 17% 14%11% 69%57% 96% 34% 87% 38% 83% 39% Turkey 63%48% 36%42%38%43%45%33%47% 38% 36%21%26%24%26% 25% 12% 74%54% 92% 35% 82% 36% 79% 47% United Kingdom 45%49%35%32%26%36%28%34%41%30% 33% 24%25%22%19%14% 16% 10%5% 84%61% 96% 44% 90% 49% 90% 39% United States 39%42%36%34%21%28%26%30%40%26% 27% 19%27%18%23%11% 18% 7%6% 83%59% 96% 40% 88% 47% 91% 29% 27 only

28. Facebook.com/SaferOnline Microsoft.com/Safety Twitter.com/Safer_Online Youtube.com/MSFTOnlineSafe ty Connect with us online!

29. © 2014 Microsoft Corporation. All rights reserved. This material is provided for informational purposes only. Microsoft makes no warranties, express or implied. 29