NetEase Inc · NASDAQ:NTES
NetEase — Q4 2021 Earnings Presentation
16 slides from NetEase's earnings presentation, Feb 24, 2022
Slide 1: 4Q21 Investor Presentation
NetEase 4Q21 Investor Presentation Investor Relations February 24, 2022
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This announcement contains statements of a forward-looking nature. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expect
Slide 3: Market Snapshot
MARKET SNAPSHOT In USD $61.4 3.3 $1.36 billion billion Market Cap Shares Outstanding, Basic net income per ADS (2/23/22) Diluted (4Q21) (GAAP) (4Q21) $3.8 $894 $16.2 billion million billion Net Revenues Net income attributable to the Cash, time deposits (4Q21) Company's shareholders and short-term i
Slide 4: NetEase, Inc.
NetEase, Inc. Founded in 1997, NetEase, Inc. is a leading China-based internet technology company that develops and operates some of China's most popular online PC and mobile games, and offers other innovative services, including intelligent learning services, online music content, and a private lab
Slide 5: 4Q21 Business Highlights
4Q21 BUSINESS HIGHLIGHTS Online Games Youdao Leading developer and operator of self-developed PC and mobile Leading intelligent learning services operated by Youdao, our games for internet users in China and internationally； majority-controlled subsidiary dedicated to providing learning content, app
Slide 6: Online Game Services
ONLINE GAME SERVICES USD million Online Game Services Net Revenues and Gross Margin Gross margin Mobile game net revenues PC game net revenues 66.1% 64.1% 63.8% 63.6% 64.6% 64.5% 64.1% 63.1% 2,730 2,495 2,351 2,280 2,170 2,175 2,121 2,103 Mobile Games as 68% 73% 72% 69% a Percentage of 70% 72% 73% 7
Slide 7: Online Game Services
ONLINE GAME SERVICES PC GAMES MOBILE GAMES Self-Developed Mobile Games Flagship Self-Developed PC titles Licensed Mobile Games From Overseas Developers Flagship Licensed PC titles Launching Mobile Games in Overseas Markets
Slide 8: Youdao
YOUDAO USD million Youdao Net Revenues and Gross Margin Gross margin Net revenues 57.3% 56.6% 47.5% 52.3% 50.7% 45.2% 45.9% 43.5% 218 210 209 203 174 141 98 85 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Note: 1 US$1.00 = RMB6.3726 on December 30, 2021. Same exchange rate is applied to all years for ill
Slide 9: Youdao
YOUDAO Completed a smooth business transition in compliance with requirements from the regulator, and achieved steady growth throughout 2021 • Total net revenues for Youdao were RMB1.3 billion in the fourth quarter, representing 21% year-over- year growth • Launched the Youdao Boardgame Academy (有道
Slide 10: Cloud Music
CLOUD MUSIC USD million Cloud Music Net Revenues and Gross Margin Gross margin Net revenues NetEase Cloud Music 4.1% 2.2% • Net revenues increased 24% year-over-year to RMB1.9 (7.1%) billion, with increasing membership paying ratio 302 • Continued product innovation initiatives in Q4, including 296
Slide 11: Innovative Businesses and Others
INNOVATIVE BUSINESSES AND OTHERS USD million Innovative Businesses and Others Net Revenues and Gross Margin NetEase Yanxuan Internet Media Gross margin Net revenues • Private label consumer brand • www.163.com is one of China’s targeting young professionals in most visited internet portals, 28.2% 26
Slide 12: NetEase's ESG Performances
NetEase’ s ESG Performances MSCI Ratings DJSI (Dow Jones Sustainability Index) Ratings Sustainalytics Ratings
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS Net Revenues Net Income attributable to shareholders (GAAP) USD billion USD billion 3.3 13.7 2.6 11.6 9.3 1.9 0.9 3.8 +23% YoY +484% YoY +10% QoQ +79% QoQ FY2019 FY2020 FY2021 Q4 2021 FY2019 FY2020 FY2021 Q4 2021 Operating Cash Flow Value Returned to Shareholders USD billion US$
Slide 14: Balance Sheet Summary
BALANCE SHEET SUMMARY 2020 2021 in millions Dec 31, RMB Dec 31, RMB Dec 31, USD (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents 9,117 14,498 2,275 Time deposits 71,079 70,755 11,103 Other current assets 27,635 27,867 4,373 Total current assets 107,831 113,120 17,751 Property
Slide 15: Income Statement Summary
INCOME STATEMENT SUMMARY Note: All percentages are calculated based on numbers in millions except per ADS data
Slide 16: Thank You
THANK YOU