Evaluate Time Warners value range using the discounted

cash flow (DCF) approach

Interest rate: 7% growth rate

terminal value after the growth rate after the 5th year : 3%

2016 2015 2014 $3,925 $3,832 $3,827 (11) (37) 67 3,914 3,795 3,894 669 8,324 43 681 8,030 25 733 8,040 69 173 (493) (131) 324 277 236 1,008 31 161 182 328 72 232 219 166 (1,201) (112) (403) (8,774) (8,526) (7,789) 631 (200) 592 (637) (616) (1,752) 4,683 3,851 3,681 (In US$ millions) OPERATIONS Net Income Less Discontinued Operations, Net of Tax Net Income from Continuing Operations Adjustments for Non-Cash and Non-Operating Items: Depreciation and Amortization Amortization of Film and Television Costs Asset Impairments Venezuelan Foreign Currency Loss (Gain) Loss on Investments and Other Assets, Net Equity in Losses of Investee Companies, Net of Cash Equity-Based Compensation Deferred Income Taxes Premiums Paid and Costs Incurred on Debt Redemption Changes in Operating Assets and Liabilities, Net of Receivables Inventories and Film Costs Accounts Payable and Other Liabilities Other Changes Cash Provided by Operations from Continuing Operations INVESTING ACTIVITIES Investments in Available-for-Sale Securities Investments and Acquisitions, Net of Cash Acquired Capital Expenditures Proceeds from Time Inc. in the Time Separation Proceeds from the Sale of Time Warner Center Other Investment Proceeds Cash Provided (Used) by Investing from Continuing FINANCING ACTIVITIES Borrowings Debt Repayments Proceeds from Exercise of Stock Options Excess Tax Benefit from Equity Instruments Principal Payments on Capital Leases Repurchases of Common Stock Dividends Paid Other Financing Activities Cash Used by Financing Activities from Continuing Operations Cash Provided (Used) by Continuing Operations Cash Used by Discontinued Operations Effect of Venezuelan Exchange Rate Changes on Cash INCREASE (DECREASE) IN CASH AND EQUIVALENTS CASH AND EQUIVALENTS AT BEGINNING OF PERIOD CASH AND EQUIVALENTS AT END OF PERIOD (9) (1,228) (432) (41) (672) (423) (30) (950) (474) 1,400 1,264 173 1,383 309 (1.360) 143 (993) 3,830 3,768 2,409 (3,304) (2,344) (72) 172 165 338 88 151 179 (14) (11) (11) (2,322) (3,632) (5,504) (1,269) (1,150) (1,109) (1,103) (260) (173) (3,922) (3,313) (3,943) (599) (455) 1,121 (17) (190) (129) (616) (463) 802 2,155 2,618 1,816 $1,539 $2.155 $2,618 (8) 2016 2015 2014 $3,925 $3,832 $3,827 (11) (37) 67 3,914 3,795 3,894 669 8,324 43 681 8,030 25 733 8,040 69 173 (493) (131) 324 277 236 1,008 31 161 182 328 72 232 219 166 (1,201) (112) (403) (8,774) (8,526) (7,789) 631 (200) 592 (637) (616) (1,752) 4,683 3,851 3,681 (In US$ millions) OPERATIONS Net Income Less Discontinued Operations, Net of Tax Net Income from Continuing Operations Adjustments for Non-Cash and Non-Operating Items: Depreciation and Amortization Amortization of Film and Television Costs Asset Impairments Venezuelan Foreign Currency Loss (Gain) Loss on Investments and Other Assets, Net Equity in Losses of Investee Companies, Net of Cash Equity-Based Compensation Deferred Income Taxes Premiums Paid and Costs Incurred on Debt Redemption Changes in Operating Assets and Liabilities, Net of Receivables Inventories and Film Costs Accounts Payable and Other Liabilities Other Changes Cash Provided by Operations from Continuing Operations INVESTING ACTIVITIES Investments in Available-for-Sale Securities Investments and Acquisitions, Net of Cash Acquired Capital Expenditures Proceeds from Time Inc. in the Time Separation Proceeds from the Sale of Time Warner Center Other Investment Proceeds Cash Provided (Used) by Investing from Continuing FINANCING ACTIVITIES Borrowings Debt Repayments Proceeds from Exercise of Stock Options Excess Tax Benefit from Equity Instruments Principal Payments on Capital Leases Repurchases of Common Stock Dividends Paid Other Financing Activities Cash Used by Financing Activities from Continuing Operations Cash Provided (Used) by Continuing Operations Cash Used by Discontinued Operations Effect of Venezuelan Exchange Rate Changes on Cash INCREASE (DECREASE) IN CASH AND EQUIVALENTS CASH AND EQUIVALENTS AT BEGINNING OF PERIOD CASH AND EQUIVALENTS AT END OF PERIOD (9) (1,228) (432) (41) (672) (423) (30) (950) (474) 1,400 1,264 173 1,383 309 (1.360) 143 (993) 3,830 3,768 2,409 (3,304) (2,344) (72) 172 165 338 88 151 179 (14) (11) (11) (2,322) (3,632) (5,504) (1,269) (1,150) (1,109) (1,103) (260) (173) (3,922) (3,313) (3,943) (599) (455) 1,121 (17) (190) (129) (616) (463) 802 2,155 2,618 1,816 $1,539 $2.155 $2,618 (8)