NetEase Inc · NASDAQ:NTES
NetEase — Q2 2021 Earnings Presentation
17 slides from NetEase's earnings presentation, Aug 31, 2021
Slide 1: 21Q2 Investor Presentation
NetEase 21Q2 Investor Presentation Investor Relations Department August 31, 2021
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation 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: 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 online education, music streaming and a private label e- commerce plat
Slide 4: Market Snapshot
MARKET SNAPSHOT In USD 3.4 $60.1 $0.82 billion Market Cap Shares Outstanding, Basic net income per ADS (8/30/21) Diluted (2Q21) (GAAP) (2Q21) $3.2 $549 $16.7 billion million billion Net Revenues Net income attributable to the Cash, time deposits (2Q21) Company's shareholders (GAAP) and short-term in
Slide 5: 2Q21 and Recent Business Highlights
2Q21 and RECENT BUSINESS HIGHLIGHTS 1 Online Games 2 Online Education Leading developer and operator of self-developed PC and Leading intelligent learning services operated by Youdao, our mobile games for internet users in China and internationally； majority-controlled subsidiary dedicated to provid
Slide 6: Online Game Services
ONLINE GAME SERVICES Online Game Services Net Revenues and Gross Margin Gross Margin Mobile Game Net Revenues PC Game Net Revenues 66.1% 63.8% 64.1% 63.8% 63.6% 64.6% 63.1% 63.1% 14,982 14,528 13,828 13,862 13,518 13,400 11,535 11,604 73% 72% 72% 73% 72% Mobile Games as a Percentage of 71% 70% 70% O
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 * * PC games such as Naraka: Bladepoint, and mobile games such as
Slide 8: Online Education
ONLINE EDUCATION Youdao Net Revenues and Gross Margin Gross Margin Net Revenues 57.3% 52.3% 47.5% 45.2% 45.9% 43.5% 25.8% 29.8% 1,340 1,293 1,107 896 623 541 410 346 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
Slide 9: Online Education Highlights
ONLINE EDUCATION HIGHLIGHTS Continued to explore new strategic opportunities in non- academic businesses such as STEAM courses, adult learning, and learning devices • Advanced the STEAM courses with strong forward momentum, and launched more products such as advanced level courses of Youdao Go (有道围棋
Slide 10: Innovative Businesses and Others
INNOVATIVE BUSINESSES AND OTHERS Innovative Businesses and Others Net Revenues and Gross Margin Gross Margin Net Revenues NetEase Cloud NetEase Media Music 19.3% 18.5% 18.0% 16.8% 14.4% 5,255 4,704 NetEase Yanxuan 4,195 3,900 3,734 NetEase E-mail NetEase CC 2Q20 3Q20 4Q20 1Q21 2Q21
Slide 11: Innovative Businesses and Others: NetEase Cloud Music
INNOVATIVE BUSINESSES AND OTHERS NetEase Cloud Music • Achieved positive gross margin for the first time ever, marking a new milestone with our music operations • Almost doubled the membership paying ratio owing to our advanced social networking functions and promotions like 88VIP • Maintained stron
Slide 12: Innovative Businesses and Others: NetEase Yanxuan
INNOVATIVE BUSINESSES AND OTHERS NetEase Yanxuan • Our private label consumer brand, targeting young professionals in China with a strong emphasis on quality of life • Introduced highly popular products, with proprietary award- wining product designs and strictly controlled product quality • Partner
Slide 13: Innovative Businesses and Others
INNOVATIVE BUSINESSES AND OTHERS Internet Media Live Streaming E-mail Services • www.163.com is one of • CC live streaming platform • China’s leading e-mail China’s most visited internet offers various live streaming service provider since 1997 portals, with strong user content with a primary focus
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS Net Revenues Net Income attributable to shareholders (GAAP) RMB billion RMB billion 20.5 20.5 4.5 4.4 18.2 3.5 2Q20 1Q21 2Q21 2Q20 1Q21 2Q21 Operating Cash Flow Value Returned to Shareholders RMB billion US$ 2020FY 2Q20 3Q20 4Q20 1Q21 2Q21 5.5 Dividend per ADS $0.784 $0.297 $0.1
Slide 15: Balance Sheet Summary
BALANCE SHEET SUMMARY 2020 2021 oufilars Dec 31, RMB June 30, RMB June 30, USD (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents 9,117 9,936 1,539 Time deposits 71,079 75,702 11,725 Other current assets 27,635 30,321 4,696 Total current assets 107,831 115,959 17,960 Property,
Slide 16: Income Statement Summary
INCOME STATEMENT SUMMARY Note: All percentages are calculated based on numbers in millions except per ADS data
Slide 17: Thank You
THANK YOU