NetEase Inc · NASDAQ:NTES
NetEase — Q3 2022 Earnings Presentation
14 slides from NetEase's earnings presentation, Nov 17, 2022
Slide 1: 3Q22 Investor Presentation
NetEase 3Q22 Investor Presentation Investor Relations Nov 17, 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: 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 and longest running mobile and PC games. Powered by industry-leading in-house R&D capabilities in China and globally, NetEase creates superior gam
Slide 4: Market Snapshot
MARKET SNAPSHOT In USD $46.8 3.3 $3.4 $1.44 billion billion billion 1 Market Cap Shares Outstanding, Basic net income per ADS Net revenues (11/16/22) Diluted (3Q22) (GAAP) (3Q22) (3Q22) $942 $13.3 million billion A Net income attributable to the Cash position 2 MSCI ESG Rating 3 Company's shareholde
Slide 5: Games and Related Value-added Services
GAMES AND RELATED VALUE-ADDED SERVICES 1 USD million Games and Related Value-added Services Net Revenues and Gross Margin Gross Margin Online Games Related VAS Online Games Related 61.3% 64.9% 65.0% VAS 93% (3Q22) 2,550 2,629 2,410 ~ 31%: PC & console games Definition of this segment has been change
Slide 6: Online Games
ONLINE GAMES PC & CONSOLE GAMES MOBILE GAMES Flagship Self-Developed Titles Self-Developed Mobile Games Licensed Mobile Games From Overseas Developers Flagship Licensed Titles Launching Mobile Games in Overseas Markets • Extended the longevity of leading franchise titles including Fantasy Westward J
Slide 7: Youdao
YOUDAO 1 USD million Youdao Net Revenues and Gross Margin Gross Margin Net Revenues 56.6% 54.2% Continued to improve total net revenues and reached a 42.8% record high RMB1.4 billion led by increased sales of new services and smart devices. 197 195 • Expanded Youdao’s portfolio with more AI-empowere
Slide 8: Cloud Music
CLOUD MUSIC 1 USD million Cloud Music Net Revenues and Gross Margin • Maintained strong top-line growth of 22% year-over-year Gross margin Net Revenues despite a challenging macro environment 14.2% 13.0% • Further expanded its gross margin for the fourth quarter in a row, reaching 14.2% in the third
Slide 9: Innovative Businesses and Others
INNOVATIVE BUSINESSES AND OTHERS 1 USD million Innovative Businesses and Others Net Revenues and Gross Margin NetEase Yanxuan Gross Margin Net Revenues • Leading private label consumer lifestyle brand in China • Continued to build its brand awareness by consistently creating highly popular 27.2% 25.
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS USD billion 1 Net Revenues Net Income Attributable to Shareholders (GAAP) 12.3 3.0 10.4 2.4 8.3 1.7 0.9 3.4 FY2019 FY2020 FY2021 Q3 2022 FY2019 FY2020 FY2021 Q3 2022 Operating Cash Flow Value Returned to Shareholders US$ FY2019 FY2020 FY2021 Q3 2022 Dividend per ADS (declared) $
Slide 11: ESG Performance
ESG PERFORMANCE MSCI Ratings DJSI (Dow Jones Sustainability Index) Ratings Sustainalytics Ratings
Slide 12: Balance Sheet Summary
BALANCE SHEET SUMMARY 2021 Co. Dec 31, RMB Sep 30, RMB Sep 30, USD in millions (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents 14,498 17,999 2,530 Time deposits 70,755 89,302 12,554 Other current assets 27,867 24,291 3,415 Total current assets 113,120 131,592 18,499 Property
Slide 13: Income Statement Summary
INCOME STATEMENT SUMMARY Note: All percentages are calculated based on numbers in millions except per ADS data
Slide 14: Thank You
THANK YOU