#1100000 e 阿里巴巴 动物园 March Quarter 2023 Results May 18, 2023 Alibaba Technology HHE Mouth 205-805 welcome Alibaba AGTech 00 1688 COPYRIGHT 2022 ALIBABA GRO ALL RIGHTS RESE#2Disclaimer Alibaba This presentation contains certain financial measures that are not recognized under generally accepted accounting principles in the United States ("GAAP"), including adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, see GAAP to Non-GAAP Measures Reconciliation, GAAP to Non-GAAP Net Income Attributable to Ordinary Shareholders and the slides presenting revenue and EBITA by segments. This presentation contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expect," "anticipate," "future," "aim," "estimate,” “intend," "seek," "plan," "believe," "potential," "continue," "ongoing," "target," "guidance," "is/are likely to" and similar statements. In addition, statements that are not historical facts, including statements about Alibaba Group's new organizational and governance structure, strategic benefits of this new structure and future spin-off or capital raising plans, statements about Alibaba's strategies and business plans, Alibaba's beliefs, expectations and guidance regarding the growth of its business and its revenue, the business outlook and quotations from management in this presentation, as well as Alibaba's strategic and operational plans, are or contain forward- looking statements. Alibaba may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include but are not limited to the following: Alibaba's corporate structure, including the VIE structure it uses to operate certain businesses in the PRC, Alibaba's ability to maintain the trusted status of its ecosystem; risks associated with sustained investments in Alibaba's businesses; Alibaba's ability to maintain or grow its revenue or business, including expanding its international and cross border businesses and operations; risks associated with Alibaba's acquisitions, investments and alliances; uncertainties arising from competition among countries and geopolitical tensions, including protectionist or national security policies; uncertainties and risks associated with a broad range of complex laws and regulations (including in the areas of anti-monopoly and anti-unfair competition, consumer protection, data security and privacy protection and regulation of Internet platforms) in the PRC and globally; cybersecurity risks; fluctuations in general economic and business conditions in China and globally; impacts of the COVID-19 pandemic and assumptions underlying or related to any of the foregoing. In particular, the timing and implementation details of Alibaba Group's new structure, whether the new structure will yield the expected strategic benefits, and the successful execution of spin-off or capital raising plans are subject to uncertainties and factors that may be beyond our control, including without limitation, successful restructurings of assets, liabilities and contracts, implementation of equity incentive plans, market conditions and regulatory reviews and approvals. Further information regarding these and other risks is included in Alibaba's filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. All information provided in this presentation is as of the date of this presentation and are based on assumptions that we believe to be reasonable as of this date, and Alibaba does not undertake any obligation to update any forward-looking statement, except as required under applicable law. 2#3Financial Highlights Three months ended March 2023, Year ended March 31, Alibaba (in RMB millions, except per share data and percentages) 2022 2023 YoY% % Total Revenue % Total 2022 Total revenue (1) China commerce 204,052 208,200 2% 100% 853,062 2023 868,687 YoY% Revenue 2% 100% 140,079 136,073 (3)% 65% 591,580 582,731 (1)% 67% International commerce Local consumer services 14,335 18,541 29% 9% 61,078 69,204 13% 8% (1) 10,696 12,549 17% 6% 44,616 50,112 12% 6% Cainiao 11,582 13,619 18% 7% 46,107 55,681 21% 6% Cloud Digital media and entertainment Innovation initiatives and others 18,971 18,582 (2)% 9% 74,568 77,203 4% 9% 8,005 8,273 3% 4% 32,272 31,482 (2)% 4% 384 563 47% 0% 2,841 2,274 (20)% 0% Income from operations 16,717 15,240 (9)% (3) 7% 69,638 100,351 44% (3) 12% Share-based compensation expense (3,737) 7,546 N/A 4% 23,971 30,831 29% 4% Amortization and impairment of intangible assets 2,831 2,494 (12)% 1% 11,647 13,504 16% 1% Impairment of goodwill N/A N/A 25,141 2,714 (89)% 0% Diluted (loss) earnings per share (6) (0.76) (5) 1.12 (5) N/A Diluted (loss) earnings per ADS (6) (6.07) (5) 9.00 (5) N/A 2.84 22.74 3.43 27.46 21% (5)(7) 21% (5)(7) Non-GAAP Measures (2) Adjusted EBITA Non-GAAP diluted earnings per share (2)(6) Non-GAAP diluted earnings per ADS (2)(6) 15,811 0.99 7.95 25,280 60% (4) 12% 1.34 10.71 35% (4)(7) 35% (4)(7) 130,397 6.59 147,911 13% 17% 6.82 4% (4)(7) 52.69 54.56 4% (4)(7) Notes: (1) (2) (3) (4) (5) (6) Beginning on October 1, 2022, we reclassified the revenue of our Instant Supermarket Delivery (f) business, which was previously reported under China commerce segment, as revenue from Local consumer services segment following the strategy refinement of Instant Supermarket Delivery business to focus on building customer mindshare for grocery delivery services through Ele.me platform. This reclassification conforms to the way that we manage and monitor segment performance. Comparative figures were reclassified to conform to this presentation. See the section entitled "GAAP to Non-GAAP Measures Reconciliation" for more information about the non-GAAP measures on Pages 16 and 17. Excluding the impact of the RMB13,046 million reversal of share-based compensation expense related to the mark-to-market adjustment of Ant Group share-based awards granted to our employees, income from operations for the quarter ended March 31, 2023 would have increased by RMB11,569 million year-over-year. Excluding the impact of certain items, our income from operations in fiscal year 2023 would have increased by RMB24,143 million year-over-year. The year-over-year increases were primarily due to an increase in China commerce adjusted EBITA, as well as narrowed adjusted EBITA losses of Local consumer services and Digital media and entertainment. The year-over-year changes for the quarter ended March 31, 2023 were primarily due to net gains arising from the increases in the market prices of our equity investments in publicly-traded companies, compared to net losses from these investments in the same quarter last year, partly offset by the decrease in share of profit of equity method investees, the increase in impairment of investments and the decrease in income from operations. The year-over-year increases in fiscal year 2023 were primarily due to the increase in income from operations and the decrease in net losses arising from changes in the fair values of our equity investments, partly offset by the decrease in share of profit of equity method investees and the increase in impairment of investments. Each ADS represents eight ordinary shares. (7) The year-over-year percentages as stated are calculated based on the exact amount and there may be minor differences from the year-over-year percentages calculated based on the RMB amounts after rounding. 3#4Cost of Revenue and Operating Expenses Cost of Revenue (excluding SBC) (RMB Mn) Three months ended % of Revenue Year ended 68% 139,637 Mar 31, 2022 66% 62% Product Development Expenses (excluding SBC) (RMB Mn) Three months ended % of Revenue 62% 6% Year ended Alibaba 5% 6% 5% 137,588 533,725 543,985 12,351 10,942 Mar 31, 2023 Mar 31, 2022 Mar 31, 2023 Mar 31, 2022 Mar 31, 2023 Sales & Marketing Expenses (excluding SBC) (RMB Mn) Three months ended % of Revenue 13% 44,430 43,230 Mar 31, 2022 Mar 31, 2023 General & Administrative Expenses (excluding SBC) (RMB Mn) Year ended Three months ended Year ended % of Revenue 12% 14% 12% 5% 5% 3% 4% 27,399 24,073 116,749 99,786 8,854 10,317 27,761 34,286 4 Mar 31, 2022 Mar 31, 2023 Mar 31, 2022 Mar 31, 2023 Mar 31, 2022 Mar 31, 2023 Mar 31, 2022 Mar 31, 2023#5Income Statement: Selected Financials Alibaba Three months ended March 31, Year ended March 31, Change (in RMB Mn, except percentages) Income from operations 2022 16,717 2023 15,240 YoY% YOY 2022 2023 (9)% Interest and investment income, net (36,708) 10,496 N/A (1,477) 47,204 69,638 100,351 YoY% 44% Change YoY 30,713 Interest expense (1,189) (1,736) 46% Other income, net 1,620 1,308 (19)% (547) (312) (15,702) (11,071) (4,909) (5,918) 21% 10,523 5,823 (45)% (29)% 4,631 (1,009) (4,700) (Loss) Income before income tax and share of results of (19,560) 25,308 N/A 44,868 59,550 89,185 50% 29,635 equity method investees Income tax expenses (2,079) (3,758) 81% (1,679) (26,815) (15,549) (42)% 11,266 Share of results of equity method investees 3,282 446 (86)% (2,836) 14,344 (8,063) N/A (22,407) Net (loss) income (18,357) 21,996 N/A 40,353 47,079 65,573 39% 18,494 Net (loss) income attributable to ordinary shareholders (16,241) 23,516 N/A 39,757 61,959 72,509 17% 10,550 Adjustments to reconcile net income to non-GAAP net income: Share-based compensation expense (3,737) 7,546 N/A 11,283 23,971 30,831 29% 6,860 Amortization and impairment of intangible assets 2,831 2,494 (12)% (337) 11,647 Impairment of goodwill and investments 5,303 7,290 37% 1,987 40,264 13,504 24,351 (40)% 16% 1,857 (15,913) Loss (Gain) on deemed disposals/disposals/revaluation of investments and others 37,845 (11,804) N/A (49,649) 21,671 13,857 (36)% (7,814) Equity-settled donation expense N/A N/A 511 N/A 511 (1) Tax effects (4,086) (147) (96)% 3,939 (8,244) Non-GAAP net income 19,799 27,375 38% 7,576 136,388 (7,248) 141,379 (12)% 996 4% 4,991 Non-GAAP net income attributable to ordinary shareholders 21,462 27,985 30% 6,523 143,552 144,029 0% 477 Note: (1) Tax effects primarily comprise tax effects relating to share-based compensation expense, amortization and impairment of intangible assets and certain gains and losses from investments, and others. 5#6Cash Flow & Balance Sheet: Selected Financials Cash Flow Net cash (used in) provided by operating activities Less: Purchase of property and equipment (excluding land use rights and construction in progress relating to office campuses) Purchase of intangible assets (excluding those acquired through acquisitions) Changes in the consumer protection fund deposits Free cash flow Capital Expenditure Net cash (outflow) inflow from investment and acquisition activities Share Repurchase Balance Sheet Cash and cash equivalents Short-term investments Other treasury investments Restricted cash and escrow receivables Cash balance Less: Current and non-current bank borrowings Current and non-current unsecured senior notes Net cash position Net cash position (excluding restricted cash and escow receivables) (1) Three months ended March 31, Alibaba Year ended March 31, 2022 2023 2022 2023 RMB Mn RMB Mn USD Mn RMB Mn RMB Mn USD Mn (7,040) 31,401 4,572 142,759 199,752 29,086 (9,201) (2,513) (366) (42,028) (30,373) (4,423) (15) (22) (3) 1,171 3,379 492 (1,842) 2,306 336 (15,070) 32,267 4,698 98,874 171,663 24,996 (11,502) (3,478) (506) (53,309) (34,330) (4,999) (3,824) 1,478 215 (37,380) (840) (123) (12,132) (12,611) (1,836) (61,225) (74,746) (10,884) As of December 31, 2022 As of March 31, 2023 RMB Mn RMB Mn USD Mn 195,249 193,086 28,115 315,990 326,492 47,541 27,977 40,736 5,932 40,188 36,424 5,304 579,404 596,738 86,892 (56,558) (59,489) (8,662) (103,267) (101,865) (14,833) 419,579 435,384 63,397 379,391 398,960 58,093 Note: (1) Net cash used in investment and acquisition activities represent cash outflow for investment and acquisition activities, net of cash inflow from disposal of investments. 6#7Segment Results Three months ended March 31, 2023 Local China International consumer Cainiao (1) (1) commerce commerce services Cloud Alibaba Digital media and entertainment Innovation initiatives Unallocated (2) Consolidated and others (in RMB Mn, except percentages) Revenue 136,073 18,541 Revenue YoY% Change (3)% Adjusted EBITA 38,487 29% (2,330) 12,549 17% (4,153) 13,619 18,582 8,273 563 208,200 18% (2)% 3% 47% N/A 2% (319) 385 (1,102) (1,830) (3,858) 25,280 Adjusted EBITA YOY Change 6,253 233 1,415 593 109 864 622 (620) 9,469 (3) Adjusted EBITA YOY% Change 19% 9% 25% 65% 39% 44% 25% (19)% 60% Adjusted EBITA margin 28% (13)% (33)% (2)% 2% (13)% (325)% N/A 12% Revenue Adjusted EBITA Adjusted EBITA margin Three months ended March 31, 2022 China International Local consumer Cainiao (1) (1) commerce commerce services Cloud Digital media and entertainment Innovation initiatives Unallocated (2) Consolidated and others (in RMB Mn, except percentages) 140,079 32,234 23% 14,335 (2,563) (18)% 10,696 (5,568) (52)% 11,582 (912) 18,971 276 8,005 384 (8)% 1% (1,966) (25)% (2,452) (639)% (3,238) N/A 204,052 15,811 8% Notes: (1) Beginning on October 1, 2022, we reclassified the results of our Instant Supermarket Delivery () business, which was previously reported under China commerce segment, to Local consumer services segment following the strategy refinement of Instant Supermarket Delivery business to focus on building customer mindshare for grocery delivery services through Ele.me platform. This reclassification conforms to the way that we manage and monitor segment performance. Comparative figures were reclassified to conform to this presentation. Unallocated expenses primarily relate to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. (2) (3) For a more intuitive presentation, widening of loss in YoY% is shown in terms of negative growth rate, and narrowing of loss in YoY% is shown in terms of positive growth rate. 7#8China Commerce 淘宝Taobao TMALL 天猫 特 1688 FRESHIPPO Alibaba Health Taocaicai Taobao Deals Alibaba China Commerce Retail revenue • Revenue from our China commerce retail business in the quarter ended March 31, 2023 was RMB132,062 million (US$19,230 million), a decrease of 3% compared to RMB135,696 million in the same quarter of 2022. Direct sales and others revenue under China commerce retail business in the quarter ended March 31, 2023 was RMB71,788 million (US$10,453 million), decreasing slightly by 1% year-over-year, compared to RMB72,275 million in the same quarter of 2022, mainly due to decrease in offline store sales, which was negatively affected by the COVID-19 disruption in January and seasonal volatility from an earlier Chinese New Year, as well as normalizing grocery demand due to decrease in consumer hoarding behavior post-COVID-19. China Commerce Wholesale revenue Revenue from our China commerce wholesale business in the quarter ended March 31, 2023 was RMB4,011 million (US$584 million), a decrease of 8% compared to RMB4,383 million in the same quarter of 2022. Business Highlight For the quarter ended March 31, 2023, online physical goods GMV on Taobao and Tmall, excluding unpaid orders, declined mid-single-digit year-over-year. China's consumption gradually recovered throughout the quarter ended March 31, 2023. In the month of March, online physical goods GMV growth on Taobao and Tmall, excluding unpaid orders, turned positive, driven by strong growth of fashion & accessories and healthcare categories. We remain focused on improving the customer value proposition of our Taobao app by increasing media content that strengthens consumer engagement; being more price competitive through more effective targeting and introduction of new marketing features; and catering to consumers' time-sensitive needs for high-frequency everyday necessities through our neighborhood retail businesses. In April, we started testing a new interface for Taobao app that aims at increasing front page exposure for livestreaming, channels for price competitive products and neighborhood shopping categories. Segment adjusted EBITA China commerce adjusted EBITA increased by 19% to RMB38,487 million (US$5,604 million) in the quarter ended March 31, 2023, compared to RMB32,234 million in the same quarter of 2022. Three months ended March 31, Year ended March 31, (in RMB Mn, except percentages) 2022 2023 YoY % 2022 2023 YoY % Customer management 63,421 60,274 (5)% 315,038 290,378 (8)% Direct sales and others 72,275 71,788 (1)% 259,830 274,954 6% China commerce wholesale 4,383 4,011 (8)% 16,712 17,399 4% Revenue 140,079 136,073 (3)% 591,580 582,731 (1)% Adj. EBITA 32,234 38,487 19% 182,431 184,862 1% Adj. EBITA Margin 23% 28% 31% 32% 8#9International Commerce . International Commerce Retail revenue Lazada AliExpress trendyol Daraz A ▶阿里巴巴国际站 Alibaba.com Revenue from our International commerce retail business in the quarter ended March 31, 2023 was RMB13,967 million (US$2,034 million), an increase of 41% compared to RMB9,887 million in the same quarter of 2022. The increase was primarily due to the growth in revenue generated by Trendyol, Lazada and AliExpress. The increase in revenue from Trendyol resulted from robust year- over-year order growth and more efficient use of subsidies. The increase in revenue from Lazada is driven by the continuous improvement in monetization rate by offering more value-added services and the robust year-over-year order growth. The increase in revenue from AliExpress was mainly driven by the double-digit order growth of AliExpress, accelerated by the direct sales and fulfillment service, with the launch of a new service Choice to global consumers. International Commerce Wholesale revenue • Revenue from our International commerce wholesale business in the quarter ended March 31, 2023 was RMB4,574 million (US$666 million), an increase of 3% compared to RMB4,448 million in the same quarter of 2022. Segment adjusted EBITA International commerce adjusted EBITA was a loss of RMB2,330 million (US$339 million) in the quarter ended March 31, 2023, compared to a loss of RMB2,563 million in the same quarter of 2022. Business Highlight • Alibaba During the quarter, AliExpress launched Choice, a new service to global consumers. Choice offers consumers a curation of great value products across an extensive range of categories. Consumers in selected countries enjoy free shipping, free returns and quality delivery guarantees when placing orders on Choice. In Southeast Asia, Lazada recorded double-digit order growth year-over-year during the quarter ended March 31, 2023. Through continuous improvement of user engagement program to most of the markets, Lazada continued to increase buyer base. During the quarter, Trendyol mobilized its resources to provide aid and support for those affected by the major earthquakes that struck Türkiye in February. Year-over-year order growth rate in the quarter remained resilient, driven by the normalization of the Turkish business from March onwards as well as the strong order growth in new businesses. Three months ended March 31, Year ended March 31, (in RMB Mn, except percentages) International commerce retail International commerce wholesale 2022 2023 YoY % 2022 2023 YoY % 9,887 13,967 41% 42,668 49,873 17% 4,448 4,574 3% 18,410 19,331 5% Revenue 14,335 18,541 29% 61,078 69,204 13% Adj. EBITA (2,563) (2,330) 9% (8,991) (5,620) 37% 9 Adj. EBITA Margin (18)% (13)% (15)% (8)%#10Local Consumer Services C 高德地图 Fliggy Ele.me Amap Alibaba Segment revenue • Revenue from Local consumer services, which includes "To-Home" and "To- Destination" businesses such as Ele.me, Amap and Fliggy, was RMB12,549 million (US$1,827 million) in the quarter ended March 31, 2023, an increase of 17% compared to RMB10,696 million in the same quarter of 2022, primarily due to GMV growth of Ele.me driven by order growth and higher average order value. Segment adjusted EBITA Local consumer services adjusted EBITA was a loss of RMB4,153 million (US$605 million) in the quarter ended March 31, 2023, compared to a loss of RMB5,568 million in the same quarter of 2022, primarily due to the continued narrowing of loss from our "To-Home" business driven by Ele.me's improved unit economics per order, which was due to increased average order value and reduced delivery cost per order year-over-year. Business Highlight To-Home: Starting in February, Ele.me's GMV growth and order growth substantially increased due to improving consumer demand, increasing number of active merchants and effective scaling of our delivery capacity. For the quarter ended March 31, 2023, Ele.me's unit economics per order continued to be positive and improved year-over-year due to increased average order value and reduced delivery cost per order. To-Destination: For the quarter ended March 31, 2023, year-over-year order growth of "To-Destination" businesses, which included Amap and Fliggy, increased rapidly due to the strong recovery in commuting and travel demand. In March, the number of average daily active users of Amap reached a new record high of 150 million, driven by increasing intra-city commute and inter- city travel demand. In March, Fliggy's domestic hotel booking value grew over 70% compared to the same period in 2019 driven by a surge in business and recreational travel demand. (in RMB Mn, except percentages) Revenue Adj. EBITA Adj. EBITA Margin Three months ended March 31, 2022 2023 YoY % 10,696 12,549 17% (5,568) (4,153) 25% (52)% (33)% Year ended March 31, 2022 2023 44,616 50,112 (22,092) (14,021) (50)% (28)% YoY % 12% 37% 10#11CAI Cainiao NAO Segment Revenue • Revenue from Cainiao, which represents revenue from its domestic and international one-stop-shop logistics services and supply chain management solutions, after inter-segment elimination, was RMB13,619 million (US$1,983 million) in the quarter ended March 31, 2023, an increase of 18% compared to RMB11,582 million in the same quarter of 2022, primarily driven by increasing revenue per order from international fulfillment solution services as well as increasing demand for consumer logistics services. Total revenue generated by Cainiao, before inter-segment elimination, which includes revenue from services provided to other Alibaba businesses, was RMB18,915 million (US$2,754 million), an increase of 15% compared to RMB16,451 million in the same quarter of 2022. Segment adjusted EBITA • Cainiao adjusted EBITA was a loss of RMB319 million (US$46 million) in the quarter ended March 31, 2023, compared to a loss of RMB912 million in the same quarter of 2022. Business Highlight • Alibaba Cainiao continues to expand its international logistics network by strengthening its end-to-end logistics capabilities. For AliExpress Choice, Cainiao has upgraded its warehouse network to improve its parcel bundling and direct shipping capabilities, enabling merchants to achieve full-scale global logistics management for worldwide shipping. In March, Cainiao became the first China logistics partner of the United Nations World Food Programme (WFP), and through the partnership Cainiao will help WFP shorten delivery time of critical supplies during global emergency situations. In China, Cainiao continues to expand its Cainiao Post network that offers a variety of value-added services. During the quarter ended March 31, 2023, Cainiao Post further increased its penetration of door-step parcel delivery service to customers, with door-step delivery parcels increasing by approximately 85% year-over-year. Three months ended March 31, Year ended March 31, (in RMB Mn, except percentages) 2022 2023 YoY % Revenue 11,582 13,619 18% 2022 46,107 2023 YoY % 55,681 21% Adj. EBITA Adj. EBITA Margin (912) (319) 65% (1,465) (391) 73% (8)% (2)% (3)% (1)% 11#12Cloud - Alibaba Cloud DingTalk Segment Revenue Revenue from our Cloud segment, after inter-segment elimination, was RMB18,582 million (US$2,706 million) in the quarter ended March 31, 2023, a decline of 2% compared to RMB18,971 million in the same quarter of 2022. Total revenue from our Cloud business, before inter-segment elimination, which includes revenue from services provided to other Alibaba businesses, was RMB24,559 million (US$3,576 million), decrease of 3% compared to RMB25,230 million in the same quarter of 2022. Segment adjusted EBITA Cloud adjusted EBITA was RMB385 million (US$56 million) in the quarter ended March 31, 2023, compared to RMB276 million in the same quarter of 2022. Business Highlight Alibaba Generative Al: In April, Alibaba Cloud unveiled its latest large language model (LLM), Tongyi Qianwen (†). We plan to integrate new LLM into all business applications across Alibaba's ecosystem in the near future to further enhance user experience. Product Pricing: Recently, Alibaba Cloud has endorsed multiple actions to make computing more accessible and affordable. We announced a new instance family that provides the same level of stability and offers up to 40% cost savings. For existing products, we reduced the prices of some of our core utility products, including computing, storage, networking and security products, by up to 50%. DingTalk: During the 2023 DingTalk Spring Summit on April 18, 2023, DingTalk unveiled the integration of intelligent capabilities based on Alibaba's Tongyi Qianwen LLM into its product. Users can activate multiple Al capabilities by typing the slash symbol (/), including article creation, meeting notes summary, image generation, DingTalk mini-app building, and robot training. As a PaaS platform, DingTalk will further help customers and ecosystem partners to unlock the potential of Al capabilities. Three months ended March 31, Year ended March 31, (in RMB Mn, except percentages) 2022 2023 YoY % 2022 2023 YoY % Revenue 18,971 18,582 (2)% Adj. EBITA 276 385 39% 74,568 1,146 77,203 4% 1,422 24% Adj. EBITA Margin 1% 2% 2% 2% 12 12#13Digital Media and Entertainment YOUKUÐ Segment Revenue Alibaba Pictures 美國互娱 Quark 夸克 Revenue from our Digital media and entertainment segment in the quarter ended March 31, 2023 was RMB8,273 million (US$1,204 million), an increase of 3%, compared to RMB8,005 million in the same quarter of 2022. Segment Adjusted EBITA Alibaba Digital media and entertainment adjusted EBITA in the quarter ended March 31, 2023 was a loss of RMB1,102 million (US$160 million), compared to a loss of RMB1,966 million in the same quarter of 2022, primarily due to the narrowing of loss from Youku driven by disciplined investment in content and production capability. Year ended March 31, Three months ended March 31, (in RMB Mn, except percentages) 2022 2023 YoY % 2022 2023 Revenue 8,005 8,273 3% 32,272 31,482 YoY % (2)% Adj. EBITA (1,966) (1,102) 44% (4,690) (1,874) 60% Adj. EBITA Margin (25)% (13)% (15)% (6)% Innovation Initiatives and Others Segment Revenue DAMO TMALL GENIE ALIBABA DAMO ACADEMY • Revenue from Innovation initiatives and others was RMB563 million (US$82 million) in the quarter ended March 31, 2023, an increase of 47% compared to RMB384 million in the same quarter of 2022. Segment Adjusted EBITA Innovation initiatives and others adjusted EBITA in the quarter ended March 31, 2023 was a loss of RMB1,830 million (US$267 million), compared to a loss of RMB2,452 million in the same quarter of 2022. Three months ended March 31, Year ended March 31, (in RMB Mn, except percentages) 2022 2023 YoY % 2022 2023 Revenue 384 563 47% 2,841 2,274 YoY % (20)% Adj. EBITA (2,452) (1,830) 25% (7,129) (6,907) 3% Adj. EBITA Margin (639)% (325)% (251)% (304)% 13 13#14Appendix#15Revenue Breakdown Notes: Three months ended March 31, Year ended March 31, Alibaba % Total % Total (in RMB Mn, except percentages) Total China commerce China commerce retail 2022 (1) 140,079 2023 136,073 % YoY Revenue 2022 2023 % YoY Revenue (3)% 65% 591,580 582,731 (1)% 67% - - Customer management 63,421 60,274 (5)% 29% 315,038 290,378 (8)% 33% (2) - Direct sales and others 72,275 71,788 (1)% 34% 259,830 274,954 6% 32% China commerce wholesale 4,383 4,011 (8)% 2% 16,712 17,399 4% 2% Total International commerce 14,335 18,541 29% 9% 61,078 69,204 13% 8% International commerce retail 9,887 13,967 41% 7% 42,668 49,873 17% 6% International commerce wholesale 4,448 4,574 3% 2% 18,410 19,331 5% 2% (1) Local consumer services 10,696 12,549 17% 6% 44,616 50,112 12% 6% Cainiao 11,582 13,619 18% 7% 46,107 55,681 21% 6% Cloud 18,971 18,582 (2)% 9% 74,568 77,203 4% 9% Digital media and entertainment Innovation initiatives and others Total 8,005 8,273 3% 4% 32,272 31,482 (2)% 4% 384 204,052 563 208,200 47% 0% 2,841 2,274 (20)% 0% 2% 100% 853,062 868,687 2% 100% (1) Beginning on October 1, 2022, we reclassified the revenue of our Instant Supermarket Delivery () business, which was previously reported under China commerce segment, as revenue from Local consumer services segment following the strategy refinement of Instant Supermarket Delivery business to focus on building customer mindshare for grocery delivery services through Ele.me platform. This reclassification conforms to the way that we manage and monitor segment performance. Comparative figures were reclassified to conform to this presentation. (2) Direct sales and others revenue under China commerce retail primarily represents our direct sales businesses, comprising mainly Sun Art, Tmall Supermarket, Freshippo, and Alibaba Health's direct sales businesses where revenue and the cost of inventory are recorded on a gross basis. 15#16GAAP to Non-GAAP Measures Reconciliation Three months ended March 31, Alibaba Year ended March 31, 2022 2023 2022 2023 RMB Mn RMB Mn USD Mn RMB Mn RMB Mn USD Mn Adjusted EBITA and Adjusted EBITDA Income from operations 16,717 15,240 2,219 69,638 100,351 14,612 Share-based compensation expense (3,737) 7,546 1,099 23,971 30,831 4,489 Amortization and impairment of intangible assets 2,831 2,494 363 11,647 13,504 1,967 Impairment of goodwill 25,141 2,714 395 Equity-settled donation expense 511 75 Adjusted EBITA 15,811 25,280 3,681 130,397 147,911 21,538 Depreciation of property and equipment, and operating lease cost relating to 7,562 6,843 996 27,808 27,799 4,047 land use rights Adjusted EBITDA 23,373 32,123 4,677 158,205 175,710 25,585 Non-GAAP net income Net income (18,357) 21,996 3,203 47,079 65,573 9,548 Adjustments to reconcile net income to non-GAAP net income: Share-based compensation expense (3,737) 7,546 1,099 23,971 30,831 4,489 Amortization and impairment of intangible assets 2,831 2,494 363 11,647 13,504 1,967 Impairment of goodwill and investments 5,303 7,290 1,061 40,264 24,351 3,546 Loss(Gain) on deemed disposals/disposals/revaluation of investments and others 37,845 (11,804) (1,719) 21,671 13,857 2,017 Equity-settled donation expense 511 75 Tax effects (1) (4,086) (147) (21) (8,244) (7,248) (1,056) Non-GAAP net income Non-GAAP Free cash flow 19,799 27,375 3,986 136,388 141,379 20,586 Net cash (used in) provided by operating activities (7,040) 31,401 4,572 142,759 199,752 29,086 Less: Purchase of property and equipment (excluding land use rights and construction in progress relating to office campuses) (9,201) (2,513) (366) (42,028) (30,373) (4,423) Purchase of intangible assets (excluding those acquired through acquisitions) Changes in the consumer protection fund deposits Free cash flow (15) (22) (3) 1,171 3,379 492 (1,842) 2,306 336 (15,070) 32,267 4,698 98,874 171,663 24,996 Note: (1) Tax effects primarily comprise tax effects relating to share-based compensation expense, amortization and impairment of intangible assets and certain gains and losses from investments, and others. 16#17GAAP to Non-GAAP Net Income Attributable to Ordinary Shareholders Alibaba Three months ended March 31, 2022 Year ended March 31, 2023 2022 2023 (in Mn, except per share data) Net (loss) income attributable to ordinary shareholders - basic RMB RMB USD RMB RMB USD (16,241) 23,516 3,424 61,959 72,509 10,558 Dilution effect on earnings arising from share-based awards operated by equity method investees and subsidiaries (8) (29) (4) (37) (38) (5) Net (loss) income attributable to ordinary shareholders - diluted (16,249) 23,487 3,420 61,922 72,471 10,553 (1) Non-GAAP adjustments to net income attributable to ordinary shareholders Non-GAAP net income attributable to ordinary shareholders for 37,703 4,469 651 81,593 71,520 10,414 21,454 27,956 4,071 143,515 143,991 20,967 computing non-GAAP diluted earnings per share/ADS Weighted average number of shares on a diluted basis for computing non-GAAP diluted earnings per share/ADS (million shares) 21,599 20,882 21,787 21,114 (4) Diluted (loss) earnings per share (2)(4) Non-GAAP diluted earnings per share (3)(4) Diluted (loss) earnings per ADS (2)(4) Non-GAAP diluted earnings per ADS (3)(4) (0.76) 1.12 0.16 2.84 3.43 0.50 0.99 1.34 0.20 6.59 6.82 0.99 (6.07) 9.00 1.31 22.74 27.46 4.00 7.95 10.71 1.56 52.69 54.56 7.94 See the section entitled "GAAP to Non-GAAP Measures Reconciliation" for the reconciliation of net income to non-GAAP net income for more information of these non-GAAP adjustments. Diluted (loss) earnings per share is derived from dividing net (loss) income attributable to ordinary shareholders by the weighted average number of shares on a diluted basis. Diluted (loss) earnings per ADS is derived from the diluted (loss) earnings per share after adjusting for the ordinary share-to-ADS ratio. Non-GAAP diluted earnings per share is derived from dividing non-GAAP net income attributable to ordinary shareholders by weighted average number of shares for computing non-GAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS is derived from the non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. Each ADS represents eight ordinary shares. Notes: (1) (2) (3) (4) 17 17#18Revenue and Adjusted EBITA by Segments for March Quarter Alibaba Three months ended March 31, 2023 China International (1) commerce commerce Local consumer services Cainiao Cloud (1) Digital media and entertainment Innovation initiatives Unallocated (2) Consolidated and others (in RMB Mn, except percentages) Revenue YoY % Change 136,073 18,541 12,549 13,619 18,582 8,273 (3)% 29% Income (Loss) from operations 36,529 (2,974) 17% (6,599) 18% (2)% 3% 563 47% (1,167) (910) (1,702) (2,437) N/A (5,500) 208,200 2% 15,240 Add: Share-based compensation expense 1,544 620 1,063 596 1,292 441 396 1,594 7,546 Add: Amortization of intangible assets 414 24 1,383 252 3 159 211 48 2,494 Adjusted EBITA Adjusted EBITA margin 38,487 28% (2,330) (13)% (4,153) (319) 385 (33)% (2)% 2% (1,102) (13)% (1,830) (325)% (3,858) N/A 25,280 12% Three months ended March 31, 2022 Local China International (1) commerce commerce consumer services Cainiao Cloud Digital media and Innovation initiatives (2) Unallocated Consolidated (1) entertainment and others (in RMB Mn, except percentages) Revenue 140,079 14,335 10,696 11,582 18,971 8,005 384 204,052 Income (Loss) from operations 32,556 (1,918) (6,588) (1,081) 598 (2,170) (2,727) Add: Share-based compensation expense Add: Amortization of intangible assets (902) (664) (479) (85) (326) 5 64 (1,953) (1,350) 16,717 (3,737) 580 19 1,499 254 4 199 211 65 2,831 Adjusted EBITA Adjusted EBITA margin 32,234 23% (2,563) (18)% (5,568) (52)% (912) 276 (1,966) (2,452) (8)% 1% (25)% (639)% (3,238) N/A 15,811 8% Notes: (1) (2) Beginning on October 1, 2022, we reclassified the results of our Instant Supermarket Delivery (e) business, which was previously reported under China commerce segment, to Local consumer services segment following the strategy refinement of Instant Supermarket Delivery business to focus on building customer mindshare for grocery delivery services through Ele.me platform. This reclassification conforms to the way that we manage and monitor segment performance. Comparative figures were reclassified to conform to this presentation. Unallocated expenses primarily relate to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. 1 18#19Revenue and Adjusted EBITA by Segments for Year ended March 31 Alibaba Year ended March 31, 2023 Local China International consumer Cainiao Cloud (1) commerce commerce services (1) Digital media and entertainment Innovation initiatives Unallocated (2) Consolidated and others Revenue YoY % Change 582,731 (1)% Income (Loss) from operations 172,191 69,204 13% (8,429) 50,112 12% (23,302) 21% (in RMB Mn, except percentages) 55,681 77,203 4% 31,482 (2)% 2,274 (20)% N/A 868,687 2% (3,622) (5,151) (4,638) (9,409) (17,289) 100,351 Add: Share-based compensation expense 7,969 2,716 3,672 2,218 6,561 1,756 Add: Amortization and impairment of intangible assets 4,702 93 5,609 1,013 12 1,008 1,658 844 4,281 30,831 223 13,504 Add: Impairment of goodwill 2,714 2,714 Add: Equity-settled donation expense 511 511 Adjusted EBITA Adjusted EBITA margin 184,862 32% (5,620) (8)% (14,021) (391) (28)% (1)% 1,422 2% (1,874) (6)% (6,907) (304)% (9,560) N/A 147,911 17% Revenue Income (Loss) from operations Add: Share-based compensation expense Add: Amortization of intangible assets Add: Impairment of goodwill Adjusted EBITA Adjusted EBITA margin Year ended March 31, 2022 Local China International consumer Cainiao Cloud (1) commerce commerce services (1) Digital media and entertainment Innovation initiatives Unallocated (2) Consolidated and others (in RMB Mn, except percentages) 591,580 61,078 44,616 46,107 74,568 32,272 2,841 853,062 172,536 7,078 2,817 (10,655) (30,802) (3,920) (5,167) 1,569 95 2,556 1,396 6,297 6,154 1,059 16 (7,019) 1,520 809 (9,424) (35,911) 69,638 1,839 456 1,716 23,971 241 11,647 182,431 31% (8,991) (15%) (22,092) (50%) (1,465) (3%) 1,146 2% (4,690) (7,129) (15%) (251%) 25,141 (8,813) N/A 25,141 130,397 15% Notes: (1) (2) Beginning on October 1, 2022, we reclassified the results of our Instant Supermarket Delivery () business, which was previously reported under China commerce segment, to Local consumer services segment following the strategy refinement of Instant Supermarket Delivery business to focus on building customer mindshare for grocery delivery services through Ele.me platform. This reclassification conforms to the way that we manage and monitor segment performance. Comparative figures were reclassified to conform to this presentation. Unallocated expenses primarily relate to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. The goodwill impairment, and the equity-settled donation expense related to the allotment of shares to a charitable trust, are presented as unallocated items in the segment information because our management does not consider these as part of the segment operating performance measure. 19#20阿里巴巴 动物园 Technology 0.0 Product Mat Brown 205-805 HH 1111 Alibaba welcome Alibaba AGTech 00 1688 இருக் COPYRIGHT 2022 ALIBABA GRO ALL RIGHTS RESE