With Already High Mobile Penetration in More Developed / Affluent Countries... New Users in Less Developed / Affluent Countries Harder to Garner, per McKinsey Countries fall into one of 5 groups based on Group 1: High barriers across the board; offline populations that are young, rural, and have low literacy barriers they face to Internet adoption Countries: Bangladesh, Ethiopia, Nigeria, Pakistan, Tanzania Offline population, 2014: 548 million Internet penetration, 2014: 18% Performance on Internet Group 1 Group 2: Medium to high barriers with larger challenges in incentives and Barriers Index Incentives Group 2 infrastructure; mixed demographics Average score 100 Group 3 Minimum - 0 Countries: Egypt, India, Indonesia, Philippines, Thailand Maximum -100 80 Group 4 Offline population, 2014: 1,438 million Group 5 Internet penetration, 2014: 20% 60 40 Group 3: Medium barriers with greatest challenge in incentives; rural and literate offline populations 20 Countries: China, Sri Lanka, Vietnam Offline population, 2014: 753 million Infrastructure 0 Internet penetration, 2014: 49% Group 4: Medium barriers with greatest challenge in low incomes and affordability; offline populations predominantly urban / literate / low income Low incomes Countries: Brazil, Colombia, Mexico, South Africa, Turkey and affordability Offline population, 2014: 244 million Internet penetration, 2014: 52% Group 5: Low barriers across the board; offline populations that are highly User capability literate and disproportionately low income and female Countries: Germany, Italy, Japan, Korea, Russia, USA 3 Offline population, 2014: 147 million Internet penetration, 2014: 82% Source: World Bank; McKinsey analysis from Internet Barriers Index KPCB INTERNET TRENDS 2016 | PAGE 14