#1NetEase 1Q22 Investor Presentation Investor Relations May 24, 2022 網易 NETEASE#2SAFE 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,” “expects,” “anticipates,” “future,” "intends," "plans," "believes," "estimates" and similar statements. In addition, statements that are not historical facts, including statements about NetEase's strategies and business plans, its expectations regarding the growth of its business and its revenue and the quotations from management in this announcement are or contain forward-looking statements. NetEase 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. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: the risk that the online game market will not continue to grow or that NetEase will not be able to maintain its position in that market in China or globally; the risk that COVID-19 or other health risks in China or globally could adversely affect the Company's operations or financial results; risks associated with NetEase's business and operating strategies and its ability to implement such strategies; NetEase's ability to develop and manage its operations and business; competition for, among other things, capital, technology and skilled personnel; potential changes in government regulation that could adversely affect the industry and geographical markets in which NetEase operates, including, among others, initiatives to enhance supervision of companies listed on an overseas stock exchange and tighten scrutiny over data privacy and data security, as well as the risk that NetEase's ADSs could be barred from trading in the United States as a result of the Holding Foreign Companies Accountable Act and the rules promulgated thereunder; the risk that NetEase may not be able to continuously develop new and creative online services or that NetEase will not be able to set, or follow in a timely manner, trends in the market; competition in NetEase's existing and potential markets; and the risk that fluctuations in the value of the Renminbi with respect to other currencies could adversely affect NetEase's business and financial results. Further information regarding these and other risks is included in NetEase's filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. NetEase does not undertake any obligation to update this forward-looking information, except as required under the applicable law. 網易 NETEASE#3MARKET SNAPSHOT In USD Note: $63.7 billion 3.3 billion $1.06 Market Cap (5/23/22) Shares Outstanding, Diluted (1Q22) Basic net income per ADS (GAAP) (1Q22) $3.7 billion Net revenues (1Q22) $693 million Net income attributable to the Company's shareholders (GAAP) (1Q22) 1 Market Cap is calculated using the closing price on NASDAQ; Our market cap is HK$505.4 billion ($ 64.4 billion) based on the closing price on the Hong Kong Stock Exchange. $16.9 billion Cash, time deposits and short-term investments (3/31/22) 網易 NETEASE#4NetEase, 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 intelligent learning services, online music content community, and a private label e-commerce brand. NetEase, Inc. has been listed on NASDAQ since 2000 under the symbol (NASDAQ: NTES) and completed its dual listing on the Hong Kong Stock Exchange in June 2020 under the ticker (HKEX: 9999). Its technology-focused intelligent learning business, Youdao, has been listed on NYSE since October 2019 (NYSE: DAO). Its online music business, Cloud Village, has been listed on HKEX since December 2021 (HKEX: 9899). 網易 NETEASE#51Q22 BUSINESS HIGHLIGHTS • Online Games Leading developer and operator of self-developed PC and mobile games for internet users in China and internationally; Operator of licensed games from leading game developers internationally Aapkin MARVEL 无尽院 18 CB C Announced 2022 launch date for DiabloⓇ Immortal TM, which is slated for global market release on June 2 and release in China and Southeast Asia on June 23 • Launched Revelation mobile game, The Lord of the Rings: Rise to War and Dead by Daylight Mobile - NetEase in Japan in April • Propelled pipeline by advancing new games under development including console and mobile versions of Naraka: Blade point, Ghost World Chronicle, as well as the roll-out of Harry Potter: Magic Awakened in international markets Further expanded its international R&D capabilities by recruiting global talents and setting up first-party overseas games studio Youdao Leading intelligent learning services operated by Youdao, our majority-controlled subsidiary dedicated to providing learning content, applications and solutions to users of all ages 2 有道 1 Maintained a solid performance with its four pillars of future growth: smart devices, STEAM courses, adult learning, and education digitization solutions Continued to extend its technology offering by launching improved content, features and new products, and consistently optimized the functions and user experience for different STEAM courses Cloud Music Leading online music content community • Successfully increased profitability led by more effective monetization Continued to improve the differentiated community ecosystem and users' engagement through product innovation and content enhancement 網易 NETEASE#6ONLINE GAME SERVICES USD million Online Game Services Net Revenues and Gross Margin Gross margin Mobile game net revenues ■PC game net revenues 66.1% 65.1% 63.8% 64.6% 63.6% 64.5% 63.1% 64.1% 2,744 2,725 2,508 2,363 2,292 2,181 2,187 2,114 Mobile Games as 73% 73% 72% a Percentage of 72% 69% 72% 68% 67% Online Games Net Revenues Note: 1 2Q20 3Q20 4Q20 US$1.00 RMB6.3393 on March 31, 2022. Same exchange rate is applied to all years for illustrative purpose 1Q21 2Q21 3Q21 4Q21 1Q22 網易 NETEASE#7ONLINE GAME SERVICES PC GAMES MOBILE GAMES Self-Developed Mobile Games Flagship Self-Developed PC Titles 台灣 天下 逆水寒 倩 - 新倩女幽魂 永无间。 ONLINE RELA Flagship Licensed PC Titles 无尽的 Licensed Mobile Games From Overseas Developers MINECRAFT 【我的世界 KONAMI WORLD OF WARCRAFT 魔兽世界 星际争霸 DIABLO Football Launching Mobile Games in Overseas Markets 炉石传说 少英雄 HEROES OF THE STORM 守望先锋 无暴的 拉格朗日 網易 NETEASE#8YOUDAO USD million Note: Youdao Net Revenues and Gross Margin Gross margin Net revenues 57.3% 56.6% 52.3% 50.7% 45.2% 45.9% 47.5% 98 2Q20 141 3Q20 175 4Q20 219 211 210 204 53.1% 189 1Q21 2Q21 3Q21 4Q21 1Q22 網易 NETEASE 1 US$1.00 RMB6.3393 on March 31, 2022. Same exchange rate is applied to all years for illustrative purpose#9YOUDAO Online Knowledge Tools Learning Services |有道 Youdao Dictionary Youdao Kids Dictionary U Translate Youdao Translation U-dictionary voudao Youdao Premium Courses 2 NetEase Cloud. Classroom China University MOOC Youdao Youdao Youdao Weiqi iCloud Chess youdo Youdao Youdao Kada Youdao Drosophila Science Courses Fun Reading Smart Devices Education Digitalization Youdao Dictionary Pen Youdao Youdao Listening Pod Smart Light Solutions Achieved a solid and sustainable performance in the first quarter after disposing of its academic AST business • • Total net revenues for Youdao were RMB 1.2 billion, and gross margin was 53.1% in the first quarter Introduced a new smart learning product called Youdao Smart Light with the aim to help students develop more independent learning habits and improve their learning efficiency Continued to optimize the functions and user experiences for STEAM courses, for example, increasing gross billings from Youdao Chess ( by over 170% quarter-over-quarter Youdao Youdao Pocket Translator Super Dictionary Youdao Youdao Smart Learning Terminal Smart Cloud 網易 NETEASE#10CLOUD MUSIC USD million Note: 1 Cloud Music Net Revenues and Gross Margin (3.1%) 235 1Q21 4.1% Gross margin Net revenues 326 298 4Q21 12.2% 1Q22 US$1.00 RMB6.3393 on March 31, 2022. Same exchange rate is applied to all years for illustrative purpose NetEase Cloud Music Net revenues increased 39% year-over-year to RMB2.1 billion, due to increased revenues from membership subscriptions and social entertainment services Increased membership paying ratio year-over-year to 20% Gross margins more than doubled quarter-over-quarter in Q1 reaching 12.2%, as we continued to optimize our content cost structure Home to more than 450,000 registered independent artists on our platform by the end of March 2022 Introduced "Harry Potter Magic Radio," a joint-collaboration with NetEase Games, allowing gamers to enjoy Harry Potter-themed podcast content within the game 網易 NETEASE#11INNOVATIVE BUSINESSES AND OTHERS USD million Note: 1 Innovative Businesses and Others Net Revenues and Gross Margin 26.8% 24.1% 427 1Q21 592 4Q21 NetEase Yanxuan 網易 NEWS 严选 Gross margin Net revenues 23.3% Internet Media Leading private label consumer lifestyle brand in China Successively launched a variety of popular products across core categories such as pets, home cleaning and bedding 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 476 CC Live Streaming CC.163.COM 1Q22 US$1.00 RMB6.3393 on March 31, 2022. Same exchange rate is applied to all years for illustrative purpose E-mail Services CC live streaming platform offers various live streaming content with a primary focus on games China's leading e-mail service provider since 1997 Nearly 500 million annual active users as of March 31, 2022 網易 NETEASE#12ESG PERFORMANCE MSCI Ratings DJSI (Dow Jones Sustainability Index) Ratings Sustainalytics Ratings A 39 14.9 BBB BBB 18.0 BB 19 18.4 Environment 2.3 B Social 0.1 18 Governance 0.4 Governance Environment Social 23 23 25.9 ▲ 18 2018. 6 2019.6 2019. 11 2020. 12 2021. 11 2019 2020 2021 2018 2019 2020 2021 30% 19% 10% ■NTES 2021 DJSI Score DJSI Industry Average 16% 16% 47 39 37 9% 0% 23 21 CCC B BB BBB A AA AAA 18 17 13 CCC B BB BBB A AA AAA Industry Rank 45/993 Barely No Risk Low Risk Middle Risk High Risk Very High Risk Total Governance Environment Social 0-10 10-20 20-30 30-40 40+#13FINANCIAL HIGHLIGHTS USD billion Net Revenues USD billion Note: 1 2 9.3 11.6 13.8 FY2019 FY2020 2.7 FY2019 3.7 FY2021 Q1 2022 Operating Cash Flow 3.9 3.9 FY2020 FY2021 0.7 Q1 2022 USD billion Net Income Attributable to Shareholders (GAAP) US$ 3.4 FY2019 1.9 FY2020 2.7 0.7 FY2021 Q1 2022 Value Returned to Shareholders FY2018 FY2019 FY2020 FY2021 Q1 2022 Dividend per ADS (declared) $0.354 $1.378 $0.784 $1.170 $0.322 Total Dividends (declared) $229 m $1,334 m $515 m $777 m $211 m Share Buyback (mn) $1,178 m $0.2 m $1,625 m $1,974 m $143 m US$1.00 RMB6.3393 on March 31, 2022. Same exchange rate is applied to all years for illustrative purpose Total Dividends (declared) equals to Dividend per ADS (declared) multiplied by each quarter's corresponding Weighted average number of ADS outstanding, basic 網易 NETEASE#14BALANCE SHEET SUMMARY in millions ASSETS Current assets: Cash and cash equivalents Time deposits 2021 2022 Dec 31, RMB (Unaudited) Mar 31, RMB (Unaudited) Mar 31, USD (Unaudited) 14,498 9,852 1,554 70,755 81,303 12,825 Other current assets 27,867 27,918 4,404 Total current assets 113,120 119,073 18,783 Property, equipment and software, net 5,434 5,842 922 Other non-current assets 35,090 34,332 Total assets 153,644 159,248 5,416 25,121 LIABILITIES, REDEEMABLE NONCONTROLING INTERESTS & SHAREHOLDERS' EQUITY Current liabilities: Contract liabilities 12,133 12,051 1,901 Other current liabilities 38,368 39,713 6,265 Total current liabilities 50,501 51,764 8,166 Total liabilities 54,220 57,473 9,067 Redeemable noncontrolling interests 145 147 Total shareholders' equity 99,279 101,628 23 16,031 Total liabilities, redeemable noncontrolling 153,644 159,248 25,121 interests and shareholders' equity 網易 NETEASE#15INCOME STATEMENT SUMMARY 1Q21 4Q21 1Q22 1Q22 QoQ YoY in millions except per ADS data & percentage data RMB RMB RMB USD Change Change (Unaudited) (Unaudited) (Unaudited) (Unaudited) Total net revenues: 20,517 24,374 23,556 3,716 -3.4% 14.8% Online game services 14,982 17,398 17,273 2,725 -0.7% 15.3% Youdao 1,340 1,334 1,201 189 -10.0% -10.4% Cloud Music 1,491 1,889 2,067 326 9.4% 38.6% Innovative businesses and others 2,704 3,753 3,015 476 -19.7% 11.5% Gross profit 11,053 12,918 12,836 2,025 -0.6% 16.1% Gross profit margin 53.9% 53.0% 54.5% 54.5% Operating profit 4,276 4,608 5,507 869 19.5% 28.8% Operating profit margin 20.8% 18.9% 23.4% 23.4% Net income attributable to the 4,439 5,694 4,394 693 -22.8% -1.0% Company's shareholders Diluted net income per ADS ¥6.53 ¥8.57 ¥6.63 $1.05 -22.6% 1.5% 網易 NETEASE Note: All percentages are calculated based on numbers in millions except per ADS data#16THANK YOU 網易 NETEASE