Netease Inc · NASDAQ:NTES
Netease — Q1 2021 Earnings Presentation
18 slides from Netease's earnings presentation, May 2021
Slide 1: 1Q 2021 Investor Presentation
1Q 2021 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 $70.4 $3.4 $1.01 billion million billion 1 2 Market Cap Shares Outstanding, Basic net income per (5/17/21) Diluted ADS (GAAP) (1Q21) (1Q21) $3.1 $678 $16.2 billion million billion Net Revenue Net income attributable to Cash, time deposits (1Q21) the Company's shareholders and
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: 1Q21 Highlights
1Q21 HIGHLIGHTS Online Games Online Education • Added a number of new titles in 1Q and recently, including • 1Q achieved sound and sustainable growth: Revelation mobile game, Yu-Gi-Oh! Duel Links, Elysium of ✓ Total net revenues increased by 147 % year-over-year to Legends and Pokémon Quest RMB1.3 b
Slide 7: Online Game Services
ONLINE GAME SERVICES Online Game Services Net Revenues and Gross Margin RMB million Gross Margin PC Game Net Revenue Mobile Game Net Revenue 64.1% 64.6% 63.1% 63.8% 63.1% 63.8% 63.6% 63.1% 13,828 14,982 13,518 13,862 13,400 11,535 11,604 11,433 73% 73% 72% 72% 71% 72% 70% 70% Mobile Games as a Perce
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 * Revelation mobile game, Elysium of Legends and Yu-Gi-Oh! Duel Links
Slide 9: Online Education
ONLINE EDUCATION Youdao Net Revenue and Gross Margin RMB million Gross Margin Net Revenue 57.3% 43.5% 45.2% 45.9% 47.5% 32.9% 29.8% 25.8% 1,340 1,107 896 148% 623 YoY 541 170% YoY 410 159% 323 346 YoY 93% YoY 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 9
Slide 10: Online Education Highlights
ONLINE EDUCATION HIGHLIGHTS • Gross billings from Youdao’s K-12 segment was up 130% year-over-year despite the high base due to the outbreak of COVID-19 last year • Paid student enrollments from K-12 climbed to 306,000, up 100% year-over-year • Continued to strengthen Youdao’s servicing team, which
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 18.5% 16.8% 18.0% 15.8% 14.4% 5,255 4,195 NetEase E-mail NetEase Media 3,734 3,900 3,003 NetEase CC 1Q20 2Q20 3Q20 4Q20 1Q21 11
Slide 12: Innovative Businesses and Others
INNOVATIVE BUSINESSES AND OTHERS NetEase Cloud Music NetEase Yanxuan • Maintained strong growth while creating a more • Our innovative private label consumer brand, immersive, liberating music experience for music targeting young professionals in China with a strong enthusiasts emphasis on quality o
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 (GAAP) RMB billion 20.5 19.8 4.4 3.6 17.1 1.0 1Q20 4Q20 1Q21 1Q20 4Q20 1Q21 RMB billion Operating Cash Flow Value Returned to Shareholders US$ 2020FY 1Q20 2Q20 3Q20 4Q20 1Q21 8.2 Dividend per ADS $0.784 $0.232 $0.29
Slide 15: Balance Sheet Summary
] BALANCE SHEET SUMMARY 2020 2021 in millions Dec 31, RMB Mar 31, RMB Mar 31, USD (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents 9,117 8,791 1,342 Time deposits 71,079 75,612 11,541 Other current assets 27,635 31,126 4,750 Total current assets 107,831 115,529 17,633 Propert
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 NetEase, Inc. E-mail: ir@service.netease.com Tel: (+86) 571-8985-3378 Twitter: https://twitter.com/NetEase_Global 17
Slide 18: Thank You
THANK YOU sa D Z NETEASE