2013 Analyst Day February 27, 2013 Redbox Business Review Anne Saunders President, Redbox Safe Harbor for Forward-Looking Statements Various remarks that we may make about future expectations, plans and prospects for the company constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various factors, including those discussed in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. Coinstar, Inc. assumes no obligation and does not intend to update these forward-looking statements. Reconciliation of GAAP and Non-GAAP Financial Measures This presentation contains references to both GAAP and non-GAAP financial measures. A reconciliation between GAAP and non-GAAP financial measures is available in the Appendix of this presentation, which is posted on the Investor Relations section of Coinstar’s website at www.coinstarinc.com. © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 2 My Redbox Story Growth Strategy The Early Relationship Years Expansion Network Brand Expansion Expansion “Really? You guys started with kiosks and DVDs? I never knew that.” © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 4 Our Assets Team Partners Network Marketing Engine Brand Customer Base © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 5 The Team © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 6 Our Content Partners “Love It Forever” Pilot (Sony) 3-D Test + Many More (Lionsgate) © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 7 Our Retail Partners Black Friday Promotion (Walgreens) McDonald’s Monopoly © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 8 Larger Footprint than McDonald’s and Starbucks Combined 68%* of Americans Are Within 5 Minutes of a Redbox Kiosk *Source: Spatial Insights, June 2011 © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 9 Powered by our Growing Marketing Engine 18MM+ Apps 4MM+ SMS Mobile 5MM 40MM+ 10MM+ Social Email Web 25B Redbox Annual Impressions* = 250 Super Bowls *Impressions = Consumers passing Redbox kiosks combined with email, Internet, social media, and mobile device interaction © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 10 Loyalty Earned Unprecedented Customer Loyalty Stronger than some of the world’s most valuable brands 86% 90% 76% 73% 80% 62% 70% 60% 50% 40% 30% 20% 10% 0% Redbox Netflix Ebay Apple Netflix Apple® Net Promoter Score – “Which of the following brands would you RECOMMEND to a friend or colleague?” “And which of the following brands would you tell a friend or colleague to AVOID?” Source, BrandIndex 2/7/13, prior 4 week average © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 11 It’s a Redhead Nation 2.5B+ Rentals and Counting Annual Transactions ~480MM Rental per Active Visits in 2012 Credit Card: ~6 ~42MM Customers Data as of 12/31/12 © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 12 Leveraging Our Past to Grow Our Future The Early Relationship Years Expansion Network Brand Expansion Expansion Functional Emotional Transactions Relationships R/K/D + ARPU © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 13 Our Opportunities Size and Share Market Expansion Product Mix Personalization Optimization and Innovation © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 14 Size and Share Opportunity with DVDs Entertainment ($ in thousands) Total Addressable Market $9,000 $8,000 $7,000 $6,000 Redbox competes $5,000 within the $4,000 Entertainment Sector Automated worth ~$8B today, $3,000 Retail “Sweet Spot” with an Automated Retail $2,000 “Sweet Spot” of ~$4B $1,000 Redbox $0 Entertainment Sources: CSTR Analysis (2013); SNL Kagan, IBISWorld (2012); BEA (2011); International Council of Shopping Centers (2009) © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 15 Expansion Into New Markets © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 16 More, Better Entertainment Blu-ray Promotions Games OOH Promotions © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 17 Precision Marketing CRM © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 18 My Redbox: More Personal, More Convenient Kiosk Mobile Web © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 19 Network Optimization Across 43,000+ Kiosks © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 20 Supply Chain Innovation © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 21 Brand Expansion and New Growth Opportunities Content Stability Adolescence Decline RIP Birth Death Growing Aging © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 22 Content, Not Vehicles Entertainment Hours Feature (illustrative) DVDs Other © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 23 Tickets As Easy As Redbox “Wow – cutting edge – could this be why Redbox Live Events Market: is #1? Bring it to R.I.” $13.6B* - Redbox Facebook fan “A dollar fee on top 38% of credit cards of the ticket price? that bought tickets That’s it? Wow.” were new to Redbox - Redbox customer “I can buy tickets here (at the kiosk) instead of going to the Having upended the DVD-rental business with its ubiquitous kiosks and box office? I’m already at a $1-a-night prices, Coinstar Inc.’s Redbox is now hoping to shake up the Redbox every week.” ticketing business, selling seats to live events with just a $1 fee tacked on. - Redbox customer Sources: CSTR Analysis (2013); SNL Kagan, IBISWorld (2012); BEA (2011); International Council of Shopping Centers (2009) © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 24 Redbox Instant™ by Verizon © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 25 Shawn Strickland CEO, Redbox Instant by Verizon Redbox Instant™ by Verizon © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 27 Thank You © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 28 Appendix Use of Non-GAAP Financial Measures Non-GAAP measures may be provided as a complement to results provided in accordance with United States generally accepted accounting principles (“GAAP”). We use the following non-GAAP financial measures to evaluate our financial results: • Core adjusted EBITDA from continuing operations; • Core diluted earnings per share (“EPS”) from continuing operations; • Free cash flow from continuing operations; and • Return on Invested Capital (“ROIC”). These measures, the definitions of which are presented below, are non-GAAP because they exclude certain amounts which are included in the most directly comparable measure calculated and presented in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for our GAAP financial measures and may not be comparable with similarly titled measures of other companies. Core and Non-Core Results We distinguish our core activities, those associated with