2013 Analyst Day February 27, 2013 Agenda 7:00 am Registration and Breakfast 8:00 Welcome Rosemary Moothart, Director of Investor Relations 8:05 Company Overview Paul Davis, CEO 8:15 Seizing Our Opportunity J. Scott Di Valerio, CFO, Incoming CEO 9:05 Coin Business Review Mike Skinner, President, Coin 9:25 Break 9:40 New Ventures Business Review David Veenstra, Corporate SVP, Strategy & New Ventures 10:00 Redbox Business Review Anne Saunders, President, Redbox 10:50 Break 11:00 Driving Value Creation Galen Smith, SVP Finance, Redbox, Incoming CFO 11:25 Closing Remarks J. Scott Di Valerio, CFO, Incoming CEO 11:30 Q&A 12:00 noon Luncheon © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 1 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 Company Overview Paul Davis CEO Positioned for Growth in Automated Retail • Focused portfolio • Vast white space • Abundant growth opportunities • Highly capable team • Financial strength to support growth © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 4 Impressive 2012 Financial Results Income from Net cash provided continuing by operating Revenue operations Diluted EPS* activities $2.2B $150MM $4.67 $464MM Core Core adjusted diluted EBITDA** EPS** FCF** ROIC† $470MM $4.83 $256MM 18% Source of ROIC: CapitalIQ *From continuing operations **From continuing operations; refer to Appendix for a discussion of non-GAAP financial measures, including the exclusion of certain non-core items. †Refer to Appendix for a discussion of non-GAAP financial measures, including the exclusion of certain non-core items. We use CapitalIQ as a source for ROIC as it is readily available to investors. © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 5 It’s about the People Innovative Highly Customer Capable Centric Dedicated © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 6 Seizing Our Opportunity J. Scott Di Valerio CFO Incoming CEO Five numbers to remember about Coinstar, Inc. $4B+ 3 6 ~$16B 20% © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 8 Five numbers to remember about Coinstar, Inc. 3 The 20% We expect We are Automated to profitably reimagining Retail “Sweet double our retail across Spot” is revenue to 6 attractive ~$16B in an $4B+ by Consumer ~$85B Total 2017 Sectors Addressable Market We focus 3 global on generating trends are stakeholder driving the value and emergence long-term of Automated ROIC of Retail $4B+ 6 ~$16B 20% © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 9 Five numbers to remember about Coinstar, Inc. 3 The 20% We expect We are Automated to profitably reimagining Retail “Sweet double our retail across Spot” is revenue to 6 attractive ~$16B in an $4B+ by Consumer ~$85B Total 2017 Sectors Addressable Market We focus 3 global on generating trends are stakeholder driving the value and emergence long-term of Automated ROIC of Retail $4B+ 6 ~$16B 20% © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 10 Our Automated Retail vision continues to be relevant today, tomorrow and into the future Coinstar’s goal is to be a leader in the Automated Retail industry by delivering innovative products and services and by delighting consumers, retailers, investors, and employees. © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 11 Today, Automated Retail provides a fully automated, end-to-end service where consumers still value a physical presence Automated Retail VS. Retail Automation © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 12 Our aspiration is to double to ~$4B+ Revenue by 2017 Consumer Sectors in which Total Addressable we directly compete Market: ~$85B Maximum deployable Automated Retail in our Automated Retail target segments “Sweet Spot” ~$16B 2017 Aspirations CSTR 2017: >$4B CSTR 2012: 2012 Revenue >$2B Sources: NRF, RNG, CSTR Analysis (2013); SNL Kagan, IBISWorld, JRC European Commission, Specialty Coffee Association of America, eBay, TDlinx (2012); BEA, Euromonitor, EPA (2011); Mercator Advisory Group, Euromonitor, Vending Times, Kantar, National Pharmacy Market (2010); International Council of Shopping Centers, IBISWorld, Neilsen (2009) © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 13 To reach $4B+ Revenue, we expect roughly half of our growth from the Core, with the remainder from New Ventures CSTR Revenue Growth (2012 – 2017) New Ventures Core Business Redbox Coin 2012 Sources of Growth 2017 Source: CSTR Finance © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 14 Our growth strategy is to expand into new sectors beyond our existing Automated Retail core Develop Automated Retail Concepts • Rubi™ (Coffee) • Gift Card Exchange Product Extensions Launch Product Extensions • Redbox Tickets™ • Coin to PayPal Organic New Right and M&A Find Right Locations Concepts Locations growth • New Deployments • Location Optimization • Revenue Maximization Execute M&A and Strategic Partnerships Automated • Redbox Instant™ by Verizon Retail Core • NCR © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 15 Five numbers to remember about Coinstar, Inc. 3 The 20% We expect We are Automated to profitably reimagining Retail “Sweet double our retail across Spot” is revenue to 6 attractive ~$16B in an $4B+ by Consumer ~$85B Total 2017 Sectors Addressable Market We focus 3 global on generating trends are stakeholder driving the value and emergence long-term of Automated ROIC of Retail $4B+ 6 ~$16B 20% © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 16 There are 3 global consumer trends driving Automated Retail acceptance by consumers Increased Technology 24/7 Instant Urbanization Advancement Gratification More, denser cities provide Cost of automated retail Automated Retail excels at more opportunities for solutions comes down delivering quality services compact, convenient and consumers become and products quickly and solutions more comfortable with around the clock Automated Retail © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 17 Retailers are responding to the same 3 global consumer trends, and Coinstar is leading the way Increased Technology 24/7 Instant Urbanization Advancement Gratification Smaller Footprints Social, Local, Mobile Omni-channel & Automation Retailing Automated Retail is the Coinstar is a leader in Automated Retail SMALLEST format leveraging social, local, provides consumers retail solution available mobile, and automation (and our retail partners) technologies to MONETIZE a whole NEW CHANNEL our consumer relationships to serve their needs © 2013 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc. 18 Five numbers to remember about Coinstar, Inc. in 2013 3 The 20% We expect We are Automated to profitably reimagining Retail “Sweet double our retail across Spot” is revenue to 6 attractive ~$16B in an $4B+ by Consumer ~$85B Total 2017 Sectors Addressable Market We focus 3 global on generating trends are stakeholder driving the value and emergence long-term of Automated