H2 2019 - Central Products: Growth

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H2 2019 - Central Products: Growth A cross-family Growth update in collaboration with Facebook, Messenger, Instagram, and WhatsApp Growth teams. Our Strategy is to Grow the Family of Apps to achieve 3B Family MAP by 2020 through addressing barriers for: 1. People coming online 2. People online but not using our Apps (or using them less often), and 3. People aging up into our Apps Top of Mind Important, but have under relative control 1. US & Developed Markets FB Growth stabilizing Q/Q 2. Family External Reporting incl. WA survey 3. Defending Operator Programs like SMS and hardening Preloads and Headers against potential criticism Important and worried (H2 Focuses per below) 1. FB Older Cohorts in US & Developed Markets continue to have a declining DAP/MAP trend 2. Messenger Growth not on a great trajectory nor staffed well yet 3. Teens: (a) FB/MSGR losing fit even when they age up, and (b) Lack of solid understanding outside US 4. India: (a) Family-wide new user slowdown post Jio effect, and (b) FB&IG fit given WA&YT (+TikTok for teens) H1 Summary H1 2019 Goals Note: MAP (vs. MAU) is now only used for the People-level Family methodology where proper de-duplication is done. Goal | H1 Start | Est. H1 Finish | H1 Goal | Est. H1 Finish Y/Y Family Global MAP 2.75B 2.87B 2.88B +305M Global DAP 2.12B 2.24B 2.24B +268M App People-level (using de-duplicated Family methodology; except for WhatsApp) Facebook (incl. MSGR) MAP 2.05B 2.13B 2.13B +162M Facebook (incl. MSGR) DAP 1.45B 1.52B 1.51B +135M Instagram MAP 0.95B 1.02B 1.03B +146M Instagram DAP 0.63B 0.69B 0.68B +130M WhatsApp MAU 1.76B 1.89B 1.87B +279M WhatsApp DAU 1.36B 1.44B 1.44B +207M Facebook Global MAU 2,320M 2,415M 2,419M +181M Global DAU (7d) 1,528M 1,598M 1,589M +124M US&CA MAU 242M 245M 244M +4M US&CA DAU (30d) 186M 187M 186M +2M US Friend Accepts/day 32M 34M 34M +5M Messenger US MAU 172M 172M 171M +4M US DAU 97M 95M 99M +1M Global MAU 1,508M 1,545M 1,563M +104M WhatsApp Global MAU 1,762M 1,883M 1,883M +282M Global DAU 1,361M 1,449M 1,449M +212M Instagram FCI MAU 395M 432M 435M +67M FCI DAU 264M 290M 290M +54M Global MAU 1,150M 1250M 1,255M +200M Global DAU 720M 788M 788M +149M Operator Solutions Incremental FB MAU 0 26M 26M +6M HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL-050-00272518 PLTF EX-04023 0001 Family • MAP expected to end slightly behind forecast while DAP expected to end slightly ahead. MAP is below forecast from less IG abusive accounts (good) & under-forecasting IG SUMA. US&CA Q1 MAP was flat as Apps grew reach into each other and we expect modest incremental MAP growth in H2 (i.e. +3-5M Y/Y). • Regional Family Reporting on track for Q4'19 earnings (Jan '20) but remains risky. Delayed from Q2'19 target due to WA survey delays and methodology updates. We expect a large MAP decrease (could be >100M) from WA SUMA deduplication. Methodology is complex and impacted by user data changes or removals. • India MAP Growth slowing Family-wide as "Jio affordability effect" subsides. Family-wide decrease in new users after 2016 data pricing and 2018 phone pricing affordability impacts. • Teen usage continues solidly on IG in Developed Markets, and WhatsApp in Developing Markets. No signs of trend reversal on FB/MSGR, especially not in Developed Markets. Messenger Kids (1.4M US MAU) shows potential. Facebook • MAU expected to end -4M vs. aggressive +10M stretch goal, while DAU expected to end +9M vs. goal. MAP Y/Y growth slowing to +181M from +190M. Overall, we feel good about our work in H1 driving 10's of millions of incremental MAP/yr given the known ~10M in headwinds. DAP/MAP flat since 2018 from mix shift to Developing markets and declining DAP/MAP ratio in Developed Markets. • US DAU Growth stabilized from product work, but teens and older cohorts continue to be negative trends across Developed Markets. Investments since early 2018 in Friending, Notifications, and MSI have driven an estimated +2.5M incremental US DAU (with +1M from older cohorts), but not reversed these negative trends. [Charts: (1) Friending (PYMK) US DAU Impact, (2) Growth Notifications US DAU Impact, (3) FAST Relevance (i.e. MSI) US DAU Impact — showing 2017 trend vs 2018 trend lines. +0.6M incremental DAU (+0.2M from Old Cohorts); +1.4M incremental DAU (+0.6M from Old Cohorts); +0.5M incremental DAU (+0.2M from Old Cohorts)] • India DAU Growth slowing in addition to Family-wide MAP slowdown. India DAU Growth slowed in Sept'18 from a decline in DAU/MAU ratio with growing usage of other Apps (YouTube, TikTok, WhatsApp) as leading hypothesis. • Operator Solutions driving >+55M incremental MAP/yr (~30% of total!). Impact still growing, but at a slower rate as we approach saturation (>65% of opportunity live). Preloads cover >1B FB MAU. However, scrutiny on these programs is growing, and our reliance on SMS is a risk as mobile operators growingly want to monetize it. Messenger • Global MAU expected to end -18M vs. forecast, while DAU expected to end -25M vs. forecast. We can explain ~33% of the gap in DAU from intentional product changes with the rest being aggressive forecasting and unknowns. • US MAU is on track vs. forecast, but US DAU is -3.6M behind. The gap in DAU is partially explained by intentional product changes and country flux with the rest being aggressive forecasting and unknowns. • US Messenger Teen DAU continues to decline. Down to 6M (-20% Y/Y) while adult DAU is up to 92M (+5% Y/Y). For comparison, IG Direct teen senders are up to 12M (+15% Y/Y). WhatsApp • MAU and DAU growth are slightly ahead of goal primarily driven by continued growth in India (+106M MAU Y/Y). Expect growth to decelerate in H2 as we hit saturation on KaiOS (JioPhone) and lap a year since its launch last September. • Core Countries (IN, BR, ID) continue to drive 49% of MAU growth Y/Y (+139M): MAU is -1M behind forecast primarily due to Indonesia's slower adoption of smartphones, and India DAU/MAU % has plateaued at 77% after years of steady growth driven by lower engagement on KaiOS partially due to feature phone form factor. • Specialized Countries (GB, FR, PK, RU, EG, IE) MAU is +39M Y/Y, but are -0.8M behind forecast: This is primarily due to Pakistan's recent mobile data tax change. iMessage countries are ahead of forecasts and France is growing the fastest at 22% MAU Y/Y growth. HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL-050-00272519 PLTF EX-04023 0002 Instagram • FCI MAU expected to end -3M against goal while FCI DAU is on track. Global MAU expected to end -5M against forecast and Global DAU expected to end +5M against forecast. Growth decelerated in Q1 due to less abusive accounts and re-accelerated during Q2 mostly from real people growth and a slight rise in new abusive accounts. • IG SUMA is increasing as a % of total accounts. This may be masking people-level growth saturation among early adopter target cohort (younger people, newer devices) in most FCI markets (i.e. US, UK, AU, CA, DE, FR). • Operationalizing the Real World Closeness to achieve FB-IG Graph Differentiation: Central Products Platform will operationalize this work so we can execute on FB and IG only overlapping with the closest friends and family. H2 Strategy Family: Execute on Q4'19 External Reporting Plan and Grow with Country and Teen Focuses • Report on Family "People" metrics for Q4'19 Earnings (Jan '20): WA survey and deduplication is on track, but still with high execution risk. Methodology is necessarily complex and improves quarterly. There will be changes from better ground-truth, upstream FB/IG/WA/model updates, or factors like data policy limits and Interop account linking. We mitigate risk but can't eliminate Q/Q variance to 1M precision. Integrity estimates ~2.2% of Family MAP are "undesirable", but WA-only is not covered and the IG methodology will improve and likely increase over time. • Grow the Family with appropriate Country and Teen focuses: Continue to execute on the 2019 cross-family country strategy to win primarily-Feed and primarily-Messaging with the best Apps. We should also be deliberate about cross-family Teen focuses. First, we will work to improve our age collection and modeling across the Family to better understand how we're doing - especially in Developing Markets. In the meantime, for IG they will continue to focus on FCI (i.e. US) and double down on what's working well (i.e. multiple accounts), invest in messaging and video, as well as explore building for Tweens as part of the Messenger Kids "age up" strategy. IG should also better understand India given the TikTok threat and consider making it an FCI country in 2020. Facebook in Developed Markets will play defense with teens while trying to catch them at college age, while exploring how to improve fit with teens in Developing Markets before it's too late. [Venn diagrams showing Family MAP overlap across Facebook, WhatsApp, and Instagram for Global (>2.8B), India (434M), US (239M), Japan (41M), and Russia (88M) markets] HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL-050-00272520 PLTF EX-04023 0003 Facebook: Strengthen Friending & Engagement for Old Cohorts and Remove Barriers in India • Double down on Developed Markets (i.e. US) with what's working while also finding new levers. For Friending we will help people maintain a "healthy graph" over the long term maximizing the value of new friendships. We will also continue to invest in optimizing Notifications as well as partnering with the FB App team on opportunities for both Sharing (i.e. IG→FB cross-posting of Stories) and Feed Ranking (i.e. more friend content). Lastly, we will seek new levers through research focused on older cohorts and explore how to better leverage products like Groups and Marketplace given relatively higher adoption by older cohorts. • Address Relevance, Usability, and Safety as top growth barriers beyond Affordability in India. For Relevance, we will work with the FB App team to increase public, video, and local language content. We will also focus on more seamless flows between WA<->FB starting with Share-to-WA and WA→FB Stories cross-posting. Longer term, as Interop progresses, we should make moving between these Apps even more seamless. For Usability, we will improve the KaiOS experience by moving to the FB Lite-based App, prepare for Google's new AFP device launch, and continue to make progress on language barriers as MAP growth is now mostly coming from non-English users and Tier 3 cities. For Safety, we will continue to invest in "Locked Profile" as it is showing safety sentiment lifts in early test. This product allows people to set posts to 'friends only' and doesn't let non-friends to see your full profile photo. • Continue to invest in account access, both short and long term, in a safe and robust way. Passwords continue to be a major barrier for new users globally. We will invest in simplifying the existing ways to authenticate while also working to make them more secure. Over the longer term we are exploring new authentication methods that are simpler, more secure, and reduce our reliance on SMS as that becomes a growing risk with mobile operators. Messenger: Focusing on US Levers and Key Defense Work While Building Team Capacity • Leverage FB App to help Messenger on path to primacy in the US. Partnering with FB App team to: (1) drive more messaging engagement and reach from FB App, and then (2) transition this engagement to the Messenger app. Collaboration has improved and are now working through initial round of tests. • Play defense to allow Messenger to focus on path to primacy in the US. MAU and DAU growth have slowed considerably and we expect more headwinds in H2 (i.e. forced upgrades for E2EE, potential deprecation of bumps). We will focus on mitigating these headwinds within the capacity constraints we have as we uncover them. • Build up team capacity from near zero and do Understand. We've reallocated headcount across CP Growth (without sacrificing FB Growth investment) to be setup by end of 2019. We are focused on hiring, setting up processes, and doing Understand work to help identify areas of opportunity to help drive the Messenger strategy to achieve primacy in the US. WhatsApp: Focus on Specialized Markets in Addition to Continued Developing Market Growth • Specialized Countries: Build a Playbook for iMessage Countries starting with France: The execution plan includes product improvements (optimizing Invite flows and improving low-Whatsapp-able contacts experience), on and off-FB marketing, FB Bookmark integrations, and identifying relevant telco and media partnership deals. In the other 5 countries, we will continue partnership deals and identifying product gaps. • Improve Registration and New User Experience and Minimize SMS Cost: In H1, we reduced costs with minimal effect on user registration success by optimizing our SMS routing algorithm, renegotiating vendor agreements and on-boarding cheaper vendors. We will continue to invest here by improving registration success by reducing churn from the registration flow, reducing re-registration attempts, and optimizing retries. • Maintain New User Growth in Developing Markets: KaiOS (JioPhone) growth has slowed in H1 as we hit saturation in India. Global release for KaiOS was released in H1, but engineering is still improving support for low-end KaiOS. In September, we will lap a year since the India KaiOS (JioPhone) launch and so India MAU Y/Y growth is forecasted to slow. We will continue to focus on improving crash rates and the user experience. Instagram: Focus on FCI Growth, Lean into Multiple Accounts, and Building a Healthy Graph • Focus on FCI with Investments in Notifications, Access & Top of Funnel. In H1, our biggest FCI wins have come from Account Recovery and Connections as well as improvements to Push targeting. We will continue to focus on levers with outsized impact on FCI growth and expanding reachability and top of funnel channels (SEO & Embeds). HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL-050-00272521 PLTF EX-04023 0004 • Lean into Multiple Accounts. We've seen that Multiple Account creation encourages people who are privacy-concerned, especially teens and Japan, to share more so we will improve the ease and clarity of creating, logging in, and switching between these accounts. • Evolving our Graph Health strategy to also optimize for Graph Management and Differentiation. We will continue to build people's initial graph as quickly as possible as well as giving people the tools they need to evolve their graphs (including pruning) to align with the graph differentiation strategy of Interests + Close Friends. • Invest in Understanding for Indian Teens/Creators and late adopter cohorts in the FCI. To unblock IG's growth beyond the early adopter FCI cohort, we will be looking into older users and older Android devices within the existing FCI, as well as Indian teens and creators (including celebrities). Operator Solutions (FOS): Mitigate the Scrutiny of our Programs While Driving More Impact Overall, we expect growing scrutiny of our Partnership programs and will ensure they remain secure, avoid unintended data use, include appropriate transparency and control, and have proper proactive internal and external narratives. • Free Basics/Flex: We have 65% of FB MAU opportunity live and our focus is increasingly on sustaining this impact and unlocking remaining large markets. We plan to update Free Basics to an improved version (renamed "Discover"), which sustainably allows access to all sites on the internet and helps win support of previous net neutrality detractors. We'll also continue to invest in Messenger and WhatsApp through both zero-rating and special priced products. • Headers: This program, where operators provide phone numbers to help us pre-fill fields in registration and login, drives >+24M FB MAU/yr. We are working on improving transparency and control (opt out), removing server data retention, limiting to only approved use cases, and working on more proactive comms. Even with this work, in Indonesia there is growing risk to this program with recent regulations. • SMS Binds: Across the Family we spend $550M/yr on SMS and send another $900M/yr worth over free binds with operators. Operators increasingly intend to monetize the SMS we rely for Account Confirmation and Recovery, which has led to large price increases (i.e. 6x in India) and shutdowns of free binds that drive >20M MAP. We are investing in solutions to ensure we responsibly use these binds and exploring ways to reduce long term reliance on SMS. • Preloads: The program is now on 9 of 10 new Android devices (excl. China) covering 73% of FB revenue and 66% FB MAU. Preloads drive ~9M FB MAU/yr and ~12M Messenger MAU/yr and we will drive additional growth through frictionless installs (i.e. installing Messenger from FB). The program continues to be sustained by Actionable Insights and our App Quality program, however flattening Neko rev share is increasing pressure on sustainability. People Team | Current ENG (BIS) | 2019 Budget ENG HC Facebook Growth | 109 | 143 Messenger Growth | 0 | 11 WhatsApp Growth | 4 | 7 Instagram Growth | 44 | 61 Operator Solutions | 44 | 51 Facebook Lite Interfaces | 70 | 88 TOTAL | 271 | 361 CP Growth H1 Pulse: Participation at 98% (up from 97%) with Manager Favorability of 80% (+1%), Company Dimension Favorability of 71% (+1%), and Personal Experience Dimension Favorability of 63% (-2%). Discussion Topics 1. Do we feel we're doing enough to win with Teens across the Family? HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL-050-00272522 PLTF EX-04023 0005 H2 2019 Goals (tentative) Goal | Est. H2 Start | H2 Goal (tentative) | H2 Y/Y Family Global MAP 2.87B 3.00B* +288M* Global DAP 2.24B 2.40B* +275M* *will drop (could be >100M MAP) in Q4 with WA survey and WA de-duplication App People-level (using de-duplicated Family methodology; except for WhatsApp) Facebook (incl. MSGR) MAP 2.13B 2.20B +151M Facebook (incl. MSGR) DAP 1.52B 1.56B +105M Instagram MAP 1.02B 1.10B +160M Instagram DAP 0.69B 0.74B +110M WhatsApp MAU 1.89B 2.02B +260M WhatsApp DAU 1.45B 1.58B +212M Facebook Global MAU 2,415M 2,496M +176M Global DAU (7d) 1,598M 1,644M +116M US&CA MAU 245M 246M +4M US&CA DAU (30d) 187M 188M +2M US Friend Accepts/day 34M 36M +4M Messenger US MAU 172M 174M +3M US DAU 95M 98M flat Global MAU 1,545M 1,590M +97M WhatsApp Global MAU 1,886M 2,022M +260M Global DAU 1,450M 1,575M +212M Instagram FCI MAU 432M 462M +67M FCI DAU 290M 312M +49M Global MAU 1,250M 1,351M +201M Global DAU 788M 856M +136M Operator Solutions Incremental FB MAU 0 28M +5M [Chart: Family of Apps MAU Y/Y Growth (+ tentative H2 2019 Goals), 2008–2020, showing Facebook, WhatsApp, Instagram, and Messenger MAU Y/Y growth lines and forecasts. Note: Internet MAP Y/Y growth (ex-China) estimated to be ~+200M] HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL-050-00272523 PLTF EX-04023 0006 Appendix Family External Reporting Timeline [Timeline chart: April (Q1 earning), July (Q2 earning), Oct. (Q3 earning), Jan. (Q4 earning) 2019, and April (Q1 earning), July (Q2 earning) 2020 — showing FB MAU/DAU & Region breakouts (US&CA, Europe, APAC, ROW) each quarter, with "Script disclosure only Family MAP, DAP" through Q3'19, a "Target cutover to reporting Family in parallel" at Q4'19 with Family MAP/DAP & Region breakouts appearing in the 10-K, continuing in 10-Q through Q1'20, and "Target cutover to Family as primary" at Q2'20 (only if material trend or if required by SEC), with Family MAP, DAP & Region breakouts in the 10-Q] India Family-wide MAP Growth Slowing Due to Less New Users post "Jio Affordability Effect" [Chart: India Family MAP YoY, Jan'14–Jul'19, showing (1) Jio Data Price drop accelerations and (2) Jio Phone Launch with WhatsApp Android metric, Overall Facebook metric, Facebook-lite Android metric, Overall WhatsApp metric, Overall Instagram metric lines] Facebook H1 Growth Known Headwinds (not MECE) [Chart: India Family New User Growth YoY, showing FB KaiOS and WA KaiOS launch markers with FB New, IG New, WA New lines, Jan'18–Jan'19, noting "(2) WhatsApp KaiOS launch gives temporary topline Y/Y boost" and "Family-wide Slowdown Begins"] Categories (Not MECE) | Global MAP | Global DAP | Notes 1. New Headwinds in H1 Temporary icon placement issue on JioPhone | -2M | -1.7M | moved to 3rd screen from 1st for some time Infinite Loop SEV | -3M | N/A Compromised Account SEV (S176800) | -1.3M | N/A Pakistan Mobile Data Tax | -0.2M | -0.6M Decrease in Abusive MAP (detected) | -3M | -0.7M 2. Intentional Product Changes Privacy and Security Changes | -2M | -0.6M | Bypass Login, SMS/Call Log permission removal Messenger Bump Changes | unknown | -0.5M | Can't size for MAP due to data retention Improved Fake Account Detection | <-1M | N/A HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL-050-00272524 PLTF EX-04023 0007 Facebook US Growth Trends [Chart 1: US FB DAU Y/Y by Cohort, 2004-2010 vs 2011+ cohorts, 12/1/13-8/25/18, showing older cohort DAP/MAP decline following MAP trends] [Chart 2: US FB DAU/MAU Ratio by Cohort — 2004-2010 cohort: 2017-02 = 0.865, 2019-03 = 0.855; 2011+ cohort: 2017-02 = 0.674, 2019-03 = 0.668] [Chart 3: ~50% of the lost FB DAU in US&CA from Older pre-2011 Cohorts appear as IG DAU — showing FB and/or IG DAU (~120M) vs FB DAU (~100M/80M) lines, 2017-2019] Note: charts are account level, not people level Facebook Q2 Developed Markets Projections [Chart: US&CA DAP (30-day avg), Apr'19-Jun'19: "Flat to +1M Q/Q." P80: 187.6M, P50: 186.9M, P20: 186.2M. Annotated with Mother's Day and Memorial Day.] [Chart: Europe DAP (30-day avg), 8.Apr-17.Jun: "Flat to +1M Q/Q. Seasonal." P80: 287.1M, P50: 286.5M, P20: 285.9M] [Chart: US&CA MAP, 8.Apr-17.Jun: "+1M to +2M Q/Q." P80: 245.8M, P50: 244.5M, P20: 243.3M. "Flat Q-to-date due to less Fake Accounts."] [Chart: Europe MAP, 8.Apr-17.Jun: "Potential Risk of -1M Q/Q." P80: 388.5M, P50: 384.9M, P20: 383M] US Teens: FB Continuing to Lose Fit While IG Appears to be Maintaining It [Chart: US FB MAU by Year of Birth and Age, based on age affinity model — birth year cohorts 1991-2005 MAU curves by age. "Birth Year <2000 flattening at similar levels." "Later birth year cohorts (2001, 2003) are showing significant softening as user ages up."] [Chart: IG MAU Penetration by Year of Birth and Age — Yob cohorts 1996-2004, Age 11-22, showing % MAU penetration climbing to near 100% by later teen years] HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL-050-00272525 PLTF EX-04023 0008 Facebook India DAP Growth Slowed in Sept, 2018 due to a Declining DAP/MAP Ratio India FB DAP (incl. Y/Y) Millions 250 200 150 100 50 0 DAP Sep'2018: WA and YT available on JioPhone Q1 2018: FB available on JioPhone 01/01/15 01/01/16 01/01/17 01/01/18 01/01/19 Sep'18 FB DAP Y/Y FB DAP India FB DAP:MAP Ratio 65% 60% 55% 50% 45% 40% DAP/MAP 01/31/15 01/31/16 01/31/17 01/31/18 01/31/19 Sep'18 India App DAP Growth Sep 2018 YouTube crosses FB DAP in Nov'17 WhatsApp (Actuals) YouTube Onavo Android-only Estimate DAP = ~257M (193M – 342M) Facebook (Actuals) Messenger (Actuals) Instagram Actuals TikTok Onavo Android-only Estimate DAP = ~42 M (32M – 57M) Messenger H1 Growth Known Headwinds (not MECE) Categories (Not MECE) | Global MAP | Global DAP | Notes / Next Steps 1. New Headwinds | | | Google SMS read-only permission change | neutral | -1.3M | 2. Intentional Product Changes | | | Bump changes (NFB algorithm & turn of YFJJ) | unknown | -6M | Can't size for MAP due to data retention Feed Ranking Changes (link) | neutral | -0.3M | FB=C White Chrome (link) | tbd | -0.4M | Removing entry point on tabs except Feed 2019 Country Focuses by Family of Apps (Top 30 Countries) Context: Family of Apps MAU Trends by Country (with winners or on path to win in Feed or Messaging) Winning or path to win in Feed or Messaging: = Facebook = Messenger = Instagram = WhatsApp = No Family App India United States Indonesia Brazil Pakistan Russia Bangladesh Nigeria Japan Mexico Vietnam Philippines Germany Egypt Thailand Turkey United Kingdom France Italy Korea Feed | MSG Note: Facebook includes Messenger, and MAU not de-duplicated 9 HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL-050-00272526 PLTF EX-04023_0009 Being deliberate with how each of our Apps focus on countries helps put the right focus and resourcing. • Specialized Countries: pick the best apps to establish clear path to messaging and feed primacy • Core Countries: maintain messaging and feed primacy with the winning apps • Monitor Countries: track w/w trends closely due to unique characteristics (e.g. FB in Japan) Note: Instagram has Focus Countries (FCI) based on Revenue, Competition (Snapchat), and Family incrementality. Country | Facebook | Instagram | Messenger | WhatsApp | Notes India | Specialized | Understand* | | Core | - IG exploring India with growth of TikTok United States | Specialized | Focus | Specialized | | - P1 for MSGR and strategy here will be leveraged for other iMessage mkts Indonesia | Core | | | Core Brazil | Core | Focus | | Core Pakistan | Core | | Specialized | Russia | Monitor | Understand | | Specialized | - IG continuing Understand work in H2 Bangladesh | Core | | Specialized | | - Messenger lagging imo Nigeria | Core | | | Core Japan | Monitor | Focus | | | - LINE has won Messaging Mexico | Core | | | Core Vietnam | Core | | Specialized | Core Philippines | Core | | Specialized | Iran | Blocked | | Blocked | Specialized | - Telegram blocked Germany | Monitor | Focus | | Core Egypt | Core | | | Specialized Thailand | Core | | Specialized | Turkey | Monitor | | | Core United Kingdom | Core | Focus | Specialized | Specialized France | Core | Focus | Specialized | Specialized Italy | Core | | | Core Korea | Monitor | Focus | | | - Kakao has won Messaging Myanmar | | | Specialized | South Africa | Core | | | Core Ukraine | Core | | Specialized | Colombia | Core | | | Core Spain | Core | | | Core Poland | Specialized | | | Argentina | Core | | | Core Canada | Specialized | Focus | Specialized | Australia | Core | Focus | Specialized | * denotes changes from H1/19 to H2/19; bold remains the focus Specialized countries for Messaging. HIGHLY CONFIDENTIAL (COMPETITOR) 10 META3047MDL-050-00272527 PLTF EX-04023 0010