tim

TIM 101

April 2019

Contents.

● Who I am

● Netflix Update

● Netflix Supply Chain

Ming Chao Snapshot ● Information Systems Management (ISM), BS, UC Santa Cruz, 2004

● Master Business Administration, MBA, Santa Clara University, 2010

● Netflix 2018 – Present

● Currently Position – Head of Trade Compliance

● Held various positions in project/program management, auditing, consulting and trade compliance

● Seagate, Netapp, Infinera, Expeditors

Favorite Netflix Shows

Company Snapshot

● 190+ Markets ● 130 MM Global Paid Members* ● 57 MM US Paid Members* ● 73 MM Int’l Paid Members*

*Membership figures (rounded) as of Q3’18.

Continuing to add members globally

Accelerating revenue growth Greater than 11x revenue increase over the past decade

Very large addressable market 705m broadband homes excluding China (year-end 2017)

2010-2013 Expansion (Canada, LatAm, UK, Ireland, Nordics, Benelux)

2014 Expansion (France, Germany, Switzerland, Austria)

2015 Expansion (Australia, New Zealand, Japan, Spain, Portugal, Italy)

2016 Expansion (Rest of World x-China)

China US

Building a virtuous cycle

Netflix Content Connect people to stories that can inspire them and enrich their lives We focus first and foremost on the “Story” and on creating unique meaningful dialogues with (potential) fans. We believe that our advertising should be as entertaining and compelling as our content.

Promote the right content to the right people We are constantly gathering insights and shaping our targeting capabilities to serve the right content, at the time, to the right person.

Be creative revolutionaries We challenge creative and media strategy norms with each new campaign. We are always seeking opportunities to be disruptive and innovative.

130M paid members in 190+ countries

~90% of members have engaged with Original Content. We are shifting to exclusive content and expanding original content which differentiates our service, drives enjoyment, motivates consumers and helps our partners reach big sales and marketing goals.

Types of Shows Local originalsWell-known franchises New shows

19 Emmy Wins 16 Emmy Nominations 2 SAG Nominations

● Best Actress, Limited Series or TV Movie ● Writing for a Limited Series, Movie or Drama ● Writing for a Variety Special ● Television Movie ● Structured Reality Program

5 Emmy Nominations 1 GG Nomination 2 SAG Nominations

10 Emmy Nominations 1 GG Nomination 3 SAG Nominations

We are committed to quality

2 Emmy Wins 12 Emmy Nominations 1 SAG Nomination

● Supporting Actress, Limited Series or Movie

● Supporting Actor, Limited Series or Movie

● 23 Emmy wins for Netflix Originals in 2018, tied for most wins with HBO ● 112 Emmy nominations for Netflix Originals in 2018, up from 91 in 2017 ● Winner of Female Actor in Drama Series in 2018 SAG Awards ● Winner of Best Performance by an Actor in a Television Series, Comedy in 2018 Golden Globes

etc...

Note: Nominations and results from 2018 Emmy Awards; results from 2018 SAG Awards and 2018 Golden Globe Awards

12 Emmy Nominations 2 GG Nominations 4 SAG Nominations

Emmy Wins Including…

2 Emmy Wins 13 Emmy Nominations 2 GG Nominations 2 SAG Nominations 1 SAG Win

● Best Actress, Drama ● Directing for a Drama

Series

Building of a Global Supply Chain

Prep Carrier Transfer

Airport of Export

Airport of Entry

Customs Clearance Deliver

Lifecycle of a Typical Netflix Import / Export Netflix typically assumes all liabilities & responsibilities along the chain.

What is Supply Chain Supply Chain is the management of complex requirements, procedures, and costs of shipping goods between different countries and territories.

Often one of the most neglected and promising functions of an organization because a lot of the work is done behind the scenes with third parties and the opportunities for establishing clear trade routes and cost savings is typically underestimated.

Challenges at Netflix ● Current volume requires regular overtime from International Shipping Specialists ● Over-reliance on third parties without SOP ● Encumbering non-Facilities/logistics Netflix employees to handle complex logistics responsibilities ● Netflix pay whatever carriers and vendors charge us ● Both third party partner-initiated and Netflix-initiated shipments get stuck in customs ● International shipment volume projected to drastically increase within the next two years

What is Trade Compliance? Screening, classifying, valuing, auditing, reporting, and much more!

Multiple agencies and regulations from the origin & destination countries govern international imports and exports

HIGHLIGHTS

✔ Denied Party Screening against government watch lists & sanctions programs.

✔ Classifications including Export Commodity Classification Number (ECCN) for software & hardware. Schedule B (and international HTS equivalents), for everything.

✔ Shipping terms review and negotiation with partners or vendors.

✔ Valuation using WTO-accepted customs values for shipped goods.

✔ Paperwork including licenses, permits, certifications, inspections for certain goods and countries, import tax drawback, reports, customs inquiries.

✔ Control access to restricted technology by foreign nationals from embargoed countries.

The US Custom & Border Protection (CBP) => Regulations for over 40 federal agencies are enforced by the U.S. Border Patrol on U.S. imports and exports.

The US Bureau of Industry & Security (BIS) => Regulations for over 9 categories of technology exports such as nuclear, computer, IT, sensors, lasers, avionics/aerospace, marine.

The US Office of Foreign Assets Control (OFAC) => Enforces economic and trade sanctions. Ensures that U.S.companies do not accidentally do business with sanctioned-countries or “SDNs”. OFAC publishes a list of “Specially Designated Nationals,” individuals, groups, companies, and entities that U.S. persons are prohibited from doing business.

International Agencies:

Key Agencies