NetEase Inc · NASDAQ:NTES
NetEase — Q3 2021 Earnings Presentation
17 slides from NetEase's earnings presentation, Nov 16, 2021
Slide 1: 3Q21 Investor Presentation
NetEase 3Q21 Investor Presentation Investor Relations November 16, 2021
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 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 $74.6 3.4 $0.74 billion billion Market Cap Shares Outstanding, Basic net income per ADS (11/15/21) Diluted (3Q21) (GAAP) (3Q21) $3.4 $494 $15.3 billion million billion Net Revenues Net income attributable to the Cash, time deposits (3Q21) Company's shareholders (GAAP) and shor
Slide 5: 3Q21 Business Highlights
3Q21 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 providing learnin
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% 63.1% 63.1% 2,467 2,325 2,255 2,146 2,151 2,098 2,080 1,801 Mobile Games as 73% 69% a Percentage of 72% 73% 72% 70% 72% 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 Infinite
Slide 8: Online Education
ONLINE EDUCATION USD million Youdao Net Revenues and Gross Margin Gross Margin Net Revenues 57.3% 56.6% 52.3% 45.2% 45.9% 47.5% 43.5% 29.8% 215 208 201 172 139 97 84 64 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Note: 1 US$1.00 = RMB6.4434 on September 30, 2021. Same exchange rate is applied to all yea
Slide 9: Online Education Highlights
ONLINE EDUCATION HIGHLIGHTS Progressed Youdao’ s capabilities as an education technology provider, with steady advancements in STEAM courses, adult learning and smart learning hardware devices • Continued to upgrade the current AI system of Youdao Go (有 道围棋) to give our students a more efficient pla
Slide 10: Innovative Businesses and Others
INNOVATIVE BUSINESSES AND OTHERS USD million Innovative Businesses and Others Net Revenues and Gross Margin Gross Margin Net Revenues NetEase Cloud NetEase Media Music 19.3% 18.0% 15.6% 16.8% 14.4% 816 762 NetEase Yanxuan 730 651 605 NetEase E-mail NetEase CC 3Q20 4Q20 1Q21 2Q21 3Q21 Note: 1 US$1.00
Slide 11: Innovative Businesses and Others: NetEase Cloud Music
INNOVATIVE BUSINESSES AND OTHERS NetEase Cloud Music • Continued strong top-line growth, and achieved positive margin for the second consecutive quarter • Upgraded our main Cloud Music homepage in August, adding new community features such as “Music Gift Box (音 乐罐子)” function • Completed a direct ag
Slide 12: Innovative Businesses and Others: NetEase Yanxuan
INNOVATIVE BUSINESSES AND OTHERS NetEase Yanxuan • Successively launched numerous original design series across categories including clothing, dining and kitchen, home furnishing, and personal hygiene and maternity • Won two prestigious Red Dot Awards for our “Dear John Bedding Design” and “Yanxuan
Slide 13: Innovative Businesses and Others
INNOVATIVE BUSINESSES AND OTHERS Internet Media Live Streaming E-mail Services • www.163.com is one of • CC live streaming platform • China’s leading e-mail service China’s most visited internet offers various live streaming provider since 1997 portals, with strong user content with a primary focus
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS Net Revenues Net Income attributable to shareholders (GAAP) USD billion USD billion 3.44 0.55 3.19 0.49 2.90 0.47 3Q20 2Q21 3Q21 3Q20 2Q21 3Q21 Operating Cash Flow Value Returned to Shareholders USD billion US$ 2020FY 3Q20 4Q20 1Q21 2Q21 3Q21 0.98 Dividend per ADS $0.784 $0.195
Slide 15: Balance Sheet Summary
BALANCE SHEET SUMMARY 2020 2021 in millions Dec 31, RMB September 30, RMB September 30, USD (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents 9,117 22,267 3,456 Time deposits 71,079 59,412 9,221 Other current assets 27,635 27,265 4,231 Total current assets 107,831 108,944 16,9
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