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COWEN COLLABORATIVE INSIGHTS February 25, 2019 _ Figure 109 Share Of U.S. eCommerce Sales '13 vs. ‘18E vs. ‘23E Office Equip/Supplies Garden Equip/Supplies Toys Sporting Goods Other 100% 90% 80% Media Auto 70% Food & Bev 60% Furniture & Home Furnishings 50% 40% Consumables 6 30% Electronics & Appliances 20% 10% Clothing & Accessories 6 0% 2013 2018E 2023E Source: Cowen and Company; U.S. Census Bureau Analyzing Two Key Verticals for CBD Adoption As part of our monthly survey of 2,500 US consumers, we ask Amazon.com purchasers to indicate which categories (out of a list of 30) they purchased on Amazon in the past 30 days. Our data shows that Personal Care Products and Vitamins & Supplements were more likely to be purchased (vs. the average across all categories) by both Prime and Non-Prime members throughout 2018. Taking a closer look at 4018, in each month (on average) 19% of all Amazon Prime Purchasers bought at least one personal care product and 15% purchased a Vitamin or Supplement, while the average purchase rate across all 30+ categories was only 12% of Prime purchasers. We noted a similar trend among Non-Prime Purchasers in 4Q18, with 13% who bought Personal Care Products and 10% who bought Vitamin or Supplements, compared to the average purchase rate across all categories of 8%. Figure 110 Prime Member Purchaser % By Vertical, 1Q18-4Q18 Figure 111 Non-Prime Purchaser % By Vertical, 1Q18-4Q18 25% 23% 16% 21% 22% 14% 4 13% 7 14% y 13% 20% 19% 12% 12% 11% 15% 10% 8% 7% 10% 6% A% 5% 2% 0% 0% 1018 2018 3018 4a18 1018 2018 3018 4a18 Personal Care Products mVitamins & Supplements Average Across All Categories Personal Care Products mVitamins &Supplements Average Across All Categories Source: Cowen proprietary Consumer Internet Survey, n=~2500, Dec ‘18 Source: Cowen proprietary Consumer Internet Survey, n=~2500, Dec ‘18 66 COWEN.COM HOUSE_OVERSIGHT_024882