Annual Social Value to the Salesforce.org's Product 2 Social Sector Donation & Discounts $1.08 billion At Salesforce, we believe business is a powerful platform for change, and to achieve intentional change, we must understand the full scale of our work. To this end, we have created a standard methodology to quantify and report on the total annual contributions of Salesforce.org that is transparent, reperformable, and verifiable. Our methodology is based on a framework from McPherson Strategies, feedback from Salesforce's Finance and Revenue Recognition teams, and input from the valuation and technical accounting advisory practices of a leading professional services firm. With this methodology, we are able to quantify the total monetary contribution of our technology and employee pro bono services. Total Social Value of Salesforce.org in Fiscal 201 This year's social value does not include grant value and general volunteering value, as it $1.09 billion has in previous years. This is due to both of these functions no longer being managed through Salesforce.org. For more information on grants and general volunteering, please download the Salesforce Stakeholder Impact Report. S 1 Fiscal20 represents the fiscal year ended January 31, 2020. ALE 2 Salesforce calculates the social value of products sold or donated based on the estimated price Salesforce would have received if 3 SF a comparable product was sold to a for-profit business of similar size and location, less the price that Salesforce received, if any, for Pro Bono Value the same product from a qualified non-profit, educational institution or other NGO. When a comparable Salesforce product price is $18.7 million ORCE. not readily available, a ratio of the weighted average of the Salesforce price to a for-profit company compared to Salesforce price to a non-profit company is used to estimate the social value. 3 The skills based pro-bono volunteering value represents the value of self reported hours donated by Salesforce employees to ORG / 8 non-profits to help them implement Salesforce solutions and support the professional capacity of the organization (i.e. board service, financial or legal counsel). Salesforce calculates this value by multiplying the number of pro-bono hours volunteered by Salesforce employees by the estimated billing rate of $195 per hour per as recommended in the CECP 2020 valuation guide.