NetEase Inc · NASDAQ:NTES
NetEase — Q4 2020 Earnings Presentation
18 slides from NetEase's earnings presentation, 2021
Slide 1: 4Q 2020 Investor Presentation
4Q 2020 Investor Presentation 1
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: Company Overview
COMPANY OVERVIEW 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 pl
Slide 4: Market Snapshot
MARKET SNAPSHOT In USD $81.2 $682 $0.22 billion million 1 2 3 Market Cap ADS Outstanding, Basic net income per (2/24/21) Diluted ADS (GAAP) (4Q20) (4Q20) $3.0 $150 $15.3 billion million billion Net Revenue Net income attributable to Cash, time deposits (4Q20) the Company's shareholders and short-ter
Slide 5: Business Overview
BUSINESS OVERVIEW Online Games Online Education • Leading developer and operator of self-developed PC and mobile • Leading intelligent learning services operated by Youdao, our majority- games for internet users in China and internationally controlled subsidiary dedicated to developing and using tec
Slide 6: 4Q20 and FY20 Highlights
4Q20 and FY20 HIGHLIGHTS Online Games Online Education • A number of new games were introduced in China in 4Q, such • 4Q total revenues reached RMB1.1 billion as For All Time, Unknown Future, Akasha Book ✓ Net revenues from learning services grew by 199% YoY to RMB732 million • As the first game of
Slide 7: Online Game Services
ONLINE GAME SERVICES Online Game Services Net Revenue and Gross Margin RMB million Gross Margin PC Game Net Revenue Mobile Game Net Revenue 63.7% 63.8% 64.1% 63.8% 63.6% 63.1% 63.1% 63.1% 13,518 13,828 13,862 13,400 11,850 11,604 11,433 11,535 72% 73% 72% 72% 72% 71% 70% 70% Mobile Games as a Percen
Slide 8: Online Games Services
ONLINE GAMES SERVICES PC GAMES MOBILE GAMES Flagship Self-Developed PC titles Self-Developed Mobile Games * ** Licensed Mobile Games From Overseas Developers Flagship Licensed PC titles ** Launching Mobile Games in Overseas Markets * For All Time, Unknown Future and Akasha Book were launched in 4Q20
Slide 9: Online Education
ONLINE EDUCATION Youdao Net Revenue and Gross Margin RMB million Gross Margin Net Revenue 45.2% 45.9% 47.5% 43.5% 32.9% 29.8% 23.4% 25.8% 1,107 896 623 541 170% YoY 159% 410 YoY 323 346 93% 226 140% YoY YoY 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 9
Slide 10: Online Education Highlights
ONLINE EDUCATION HIGHLIGHTS • Gross billings from online courses in 4Q increased by 223% YoY to RMB1.1 billion, driven by the rapid growth across all segments • Growth from our K-12 segment reached a record high RMB767 million in gross billings in 4Q, up 355% YoY, with K-12 paid enrollments expandin
Slide 11: Innovative Businesses and Others
INNOVATIVE BUSINESSES AND OTHERS Innovative Businesses and Others Net Revenue and Gross Margin RMB million Gross Margin Net Revenue NetEase NetEase Yanxuan Cloud Music 20.6% 18.5% 18.0% 16.8% 15.8% 5,255 NetEase E-mail NetEase Media 3,734 3,900 3,721 3,003 NetEase CC 4Q19 1Q20 2Q20 3Q20 4Q20 11
Slide 12: Innovative Businesses and Others
INNOVATIVE BUSINESSES AND OTHERS NetEase Cloud Music NetEase Yanxuan • Achieved strong growth in all three forms: • Our innovative private label consumer brand, membership, live broadcast and advertising, and targeting young professionals in China with a strong continue to see margin improvement as
Slide 13: Innovative Businesses and Others
INNOVATIVE BUSINESSES AND OTHERS Internet Media • www.163.com is one of China’s most visited internet portals, with strong user diversity, reach and stickiness • Mobile News App is one of the most popular news apps in China Live Streaming • CC live streaming platform offers various live streaming co
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS Net Revenue Net Income attributable to shareholders RMB billion (Continuing) (GAAP) RMB billion 19.8 3.1 3.0 18.7 15.7 1.0 4Q19 3Q20 4Q20 4Q19 3Q20 4Q20 RMB billion Operating Cash Flow (Continuing) Value Returned to Shareholders US$ 2019FY 4Q19 1Q20 2Q20 3Q20 4Q20 8.2 Dividend p
Slide 15: Balance Sheet Summary
] BALANCE SHEET SUMMARY 2019 2020 in millions Dec 31, RMB Dec 31, RMB Dec 31, USD (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents 3,246 9,117 1,397 Time deposits 53,487 71,079 10,893 Other current assets 28,372 27,635 4,236 Total current assets 85,105 107,831 16,526 Property
Slide 16: Income Statement Summary
INCOME STATEMENT SUMMARY Note: All percentages are calculated based on numbers in millions except per ADS data 16
Slide 17: Contact Us
CONTACT US Margaret Shi Brandi Piacente NetEase, Inc. The Piacente Group, Inc. E-mail: ir@service.netease.com E-mail: netease@thepiacentegroup.com Tel: (+86) 571-8985-3378 Tel: (+1) 212-481-2050 Twitter: https://twitter.com/NetEase_Global 17
Slide 18: Thank You
THANK YOU sa D Z NETEASE