NetEase Inc · NASDAQ:NTES
NetEase — Q2 2020 Earnings Presentation
20 slides from NetEase's earnings presentation, 2020
Slide 1: 2Q 2020 Investor Presentation
2Q 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 pla
Slide 4: Market Snapshot
MARKET SNAPSHOT In USD $62.3 131 $4.95 billion million 1 2 3 Market Cap ADS Outstanding, Basic net income per (08/12/20) Diluted ADS (GAAP) (2Q20) (2Q20) $2.6 $642 $14.6 billion million billion Net Revenue Net income attributable to Cash, time deposits (2Q20) the Company's shareholders and short-ter
Slide 5: 2Q20 Operational Highlights
20Q2 OPERATIONAL HIGHLIGHTS Launched exciting new titles including Fantasy Westward Journey H5, Grew Youdao’s intelligent learning business steadily with net revenues King of Hunters, PES Club Manager and MARVEL Duel from learning services and products by 190% year-over-year, and achieved positive n
Slide 6: Business Segments
BUSINESS SEGMENTS Online Games Online Education • Leading developer and operator of self-developed PC • A leading intelligent learning service operated by Youdao, and mobile games for internet users in China and our majority-controlled subsidiary dedicated to internationally; developing and using te
Slide 7: Online Games
ONLINE GAMES Online Games Net Revenue and Gross Margin RMB million Gros s Margin Mobile Game Net Revenue PC Game Net Revenue 64.3% 65.1% 63.7% 63.8% 64.1% 63.8% 62.8% 63.1% 63.1% 13,518 13,828 11,850 11,604 11,433 11,535 11,020 10,348 10,061 70% 72% 72% 72% 71% 70% Mobile Games as a 75% 70% 68% Perc
Slide 8: Online Games - PC Games
ONLINE GAMES - PC GAMES Flagship Self-Developed PC titles Flagship Licensed PC titles 8
Slide 9: Online Games - Mobile Games
ONLINE GAMES - MOBILE GAMES • Over 100 mobile games offered in China Self-Developed Mobile Games Licensed Mobile Games From Overseas Developers 9
Slide 10: Online Games - Mobile Games
ONLINE GAMES - MOBILE GAMES Launching Mobile Games in Overseas Markets Overseas games net revenue accounts for above 10% of total online games net revenue. • Overseas games net revenue reaches a new record driven by robust growths from Knives Out and Life-After in Japan • Knives Out successfully col
Slide 11: Online Education
ONLINE EDUCATION Youdao Net Revenue and Gross Margin RMB million Gross Margin Net Revenue 43.5% 45.2% 36.3% 32.9% 29.7% 29.8% 23.3% 23.4% 25.8% 623 541 410 346 323 230 226 193 174 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 11
Slide 12: Online Education
ONLINE EDUCATION Youdao Premium Courses Dual-teacher Live Streaming Class & Interactive Learning Experience Empowered by AI STEAM China University MOOC Learning NetEase Cloud Classroom Gamified Learning Certificates & Career Advancement Youdao Youdao Fun Reading Maths Youdao Youdao Manual Youdao U-D
Slide 13: Innovative Businesses and Others
INNOVATIVE BUSINESSES AND OTHERS Innovative Businesses and Others Net Revenue and Gross Margin RMB million Gros s Margin Net Revenue NetEase NetEase Yanxuan 15.8% 18.5% Cloud Music 15.5% 3,734 3,003 NetEase E-mail NetEase Media 2,692 NetEase CC 2Q19 1Q20 2Q20 13
Slide 14: Innovative Businesses and Others
INNOVATIVE BUSINESSES AND OTHERS NetEase Cloud Music NetEase Yanxuan • Launched in April 2013, NetEase Cloud Music is • Our innovative private label e-commerce business, one of the largest online music streaming targeting middle-class consumers in China with a platforms in China with more than 800 m
Slide 15: 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 16: Financial Highlights
FINANCIAL HIGHLIGHTS Net Revenue Net Income attributable to shareholders RMB billion (Continuing) (GAAP) RMB billion 18.2 17.1 4.5 14.4 3.4 3.6 2Q19 1Q20 2Q20 2Q19 1Q20 2Q20 RMB billion Operating Cash Flow Value Returned to Shareholders US$ 2019FY 2Q19 3Q19 4Q19 1Q20 2Q20 6.5 Dividend per $10.34 $1.
Slide 17: Balance Sheet Summary
] BALANCE SHEET SUMMARY Dec 31, RMB Jun 30, RMB Jun 30, USD in millions (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents 3,246 10,623 1,504 Time deposits 53,487 66,348 9,391 Other current assets 28,372 34,142 4,332 Total current assets 85,105 111,113 15,727 Property, equipmen
Slide 18: Income Statement Summary
INCOME STATEMENT SUMMARY Note: All percentages are calculated based on numbers in millions except per ADS data 18
Slide 19: Contact Us
CONTACT US Margaret Shi Brandi Piacente NetEase, Inc. The Piacente Group, Inc. E-mail: [email protected] E-mail: [email protected] Tel: (+86) 571-8985-3378 Tel: (+1) 212-481-2050 19
Slide 20: Thank You
THANK YOU 8A QZ NETEASE