#1NetEase 3Q23 Investor Presentation Investor Relations Nov 16, 2023 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 games market will not continue to grow or that NetEase will not be able to maintain its position in that market in China or globally; 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; 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; the risk related to economic uncertainty and capital market disruption; the risk related to the expansion of NetEase's businesses and operations internationally; the risk associated with cybersecurity threats or incidents; 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 applicable law. 網易 NETEASE#3NetEase, Inc. NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase") is a leading internet and game services provider centered around premium content. With extensive offerings across its expanding gaming ecosystem, the Company develops and operates some of the most popular and longest running mobile and PC games available in China and globally. Powered by one of the largest in-house game R&D teams focused on mobile, PC and console, NetEase creates superior gaming experiences, inspires players, and passionately delivers value for its thriving community worldwide. By infusing play with culture, and education with technology, NetEase transforms gaming into a meaningful vehicle to build a more entertaining and enlightened world. Beyond games, NetEase service offerings include its majority-controlled subsidiaries Youdao (NYSE: DAO), an intelligent learning company with industry- leading technology, and Cloud Music (HKEX: 9899), a well-known online music platform featuring a vibrant content community, as well as Yanxuan, NetEase's private label consumer lifestyle brand. NetEase's market-leading ESG initiatives are among the most recognized in the global media and entertainment industry, earning it inclusion in the 2022 Dow Jones Sustainability World Index, 2022 Dow Jones Sustainability Emerging Markets Index and 2023 Bloomberg Gender-Equality Index, as well as receiving an "A" rating from MSCI. For more information, please visit: http://ir.netease.com/. 網易 NETEASE#4MARKET SNAPSHOT In USD Notes: $74.2 billion Market Cap 1 (11/15/23) $1.1 billion 3.2 billion $1.67 Shares Outstanding, Diluted (3Q23) Basic Net Income per ADS (GAAP) (3Q23) Net income attributable to the Company's shareholders (GAAP) (3Q23) $14.3 billion Cash position 2 (09/30/23) A 3 MSCI ESG Rating 1 Market Cap is calculated using the closing price on NASDAQ; Our market cap is HK$580.5 billion based on the closing price on the Hong Kong Stock Exchange 2 3 Cash position refers to total cash and cash equivalents, current and non-current time deposits and restricted cash, as well as short-term investments balance, minus short-term and long-term loans The result is based on the latest update in December 2022 $3.7 billion Net Revenues (3Q23) 網易 NETEASE#5GAMES AND RELATED VALUE-ADDED SERVICES USD million¹ Note: 1 Games and Related Value-added Services Net Revenues and Gross Margin 67.4% 65.0% Gross Margin ■Online Games Related VAS Online Games 69.0% 94% (3Q23) Related VAS 2,985 2,563 2,577 3Q22 2Q23 3Q23 US$1.00 = RMB7.2960 on September 29, 2023. Same exchange rate is applied to all years for illustrative purposes ~ 22%: PC & console games ~78%: mobile games Definition of this segment was changed to include related value-added services, such as NetEase CC Live streaming service, game- related merchandise and others, as of 2Q 2022. CC直播 CC.163.COM 網易 NETEASE#6ONLINE GAMES PC & CONSOLE GAMES • MOBILE GAMES Flagship Self-Developed PC & Console Titles Self-Developed Mobile Games Hersel xyq.163.com 新倩女幽魂 ONLINE C REVELATIEREL 天 香 逆水寒 Aabicin. Ne 无尽的 拉格朗日 Mobile Games in Overseas Markets Licensed Mobile Games From Overseas Developers MINECRAF 【我的世界 KONAMI oFootball KONAMI 5v5 无尽的 拉格朗日 HANEIR 寒 • • Our recently launched titles have demonstrated strong performance during the quarter. Justice mobile game gained robust revenue and user growth, accumulating over 50 million registered players. ➤ Dunk City Dynasty, NetEase Game's first self-developed basketball game, topped China's iOS top-grossing chart at the end of October. Time-honored flagship titles, including the Fantasy Westward Journey series, continued to invigorate players, and newer hit games, including Eggy Party, Identity V and Naraka: Bladepoint, maintained ongoing popularity. Overseas NetEase studios: announced the establishment of a new game studio called Fantastic Pixel Castle. 網易 NETEASE#7YOUDAO USD million¹ Note: 1 Youdao Net Revenues and Gross Margin 54.2% 192 3Q22 47.0% 165 2Q23 Gross Margin Net Revenues 55.9% 211 3Q23 Youdao achieved record-high revenue, driven by growth in its learning services and online. marketing services, and substantially reduced its loss from operations as an ongoing effort. ➤ The growth in our learning services was due to our consistent ability to launch unique and high-quality courses. ➤ Online marketing services for Youdao have maintained a robust growth trajectory, achieving record-high revenue in the third. quarter. Continued to drive technological innovation and expanded the user base of our digital human language coach, "Hi Echo", by launching an independent app, attracting over 100,000 user registrations within a month. US$1.00 = RMB7.2960 on September 29, 2023. Same exchange rate is applied to all years for illustrative purposes 網易 NETEASE#8CLOUD MUSIC USD million¹ Note: 1 Cloud Music Net Revenues and Gross Margin 14.2% 323 3Q22 27.0% Gross Margin Net Revenues 27.2% 267 270 Cloud Music considerably strengthened its music-centric membership monetization and further improved overall profitability. Net revenues declined 16% compared to the same period last year, as a result of declining revenue of social entertainment services as we adjusted our focus to improve profitability. Continued to expand our music library by adding songs from popular C-pop artists like Karen Mok (莫文蔚), ZHENG Jun (郑钧) and ZHANG Jie (张 *). Dedicated to empowering and assisting independent artists, we served a thriving community of over 660,000 registered independent artists as of the end of September. 2Q23 3Q23 US$1.00 = RMB7.2960 on September 29, 2023. Same exchange rate is applied to all years for illustrative purposes 網易 NETEASE#9INNOVATIVE BUSINESSES AND OTHERS USD million¹ Note: 1 Innovative Businesses and Others Net Revenues and Gross Margin 29.5% 25.5% Gross Margin Net Revenues 27.3% 严选 282 270 271 網易 NEWS 3Q22 2Q23 3Q23 US$1.00 = RMB7.2960 on September 29, 2023. Same exchange rate is applied to all years for illustrative purposes NetEase Yanxuan Leading private-label consumer lifestyle brand in China Continued to build its brand awareness by consistently creating highly popular products through diversified channels Down jacket series gained immense popularity during this year's "Double Eleven" online shopping event Internet Media www.163.com is one of China's most visited Internet portals, with strong user diversity, reach and stickiness Mobile News App is one of the most popular news apps in China BE-mail Services . China's leading e-mail service provider since 1997 網易 NETEASE#10FINANCIAL HIGHLIGHTS USD billion¹ 10.1 Net Revenues 13.2 12.0 3.7 FY2020 FY2021 FY2022 Q3 2023 Operating Cash Flow 3.8 3.4 3.4 FY2020 FY2021 FY2022 13 1.3 Q3 2023 US$ Net Income Attributable to Shareholders (GAAP) 1.7 FY2020 2.3 FY2021 2.8 1.1 FY2022 Q3 2023 Value Returned to Shareholders FY2020 FY2021 FY2022 Q3 2023 Dividend per ADS (declared) $0.784 $1.170 $1.387 $0.495 Total Dividends $515 m (declared) 2 $777 m $906 m $318 m Share Buyback $1,625 m $1,974 m $1,187 m $52 m Notes: 1 US$1.00 = RMB7.2960 on September 29, 2023. Same exchange rate is applied to all years for illustrative purposes 2 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#11ESG PERFORMANCE MSCI Ratings B BB A A BBB Environment 0.7 Social ▲0.2 Governance 0.8 DJSI (Dow Jones Sustainability Index) Ratings 6 19 18 39 39 49 25.9 Sustainalytics Ratings 14.7 15.0 18.0 18.4 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 3% 10% 31% 21% 22% 13% 31 ■NTES 2022 DJSI Score ■DJSI Industry Mean 54 53 21 15 11 Industry Rank 54/1039 0% Negligible Low Medium High Severe CCC B BB BBB A AA AAA Environmental Social Governance&Economic LAGGARD AVERAGE 0-10 10-20 20-30 30-40 40+ LEADER#12BALANCE SHEET SUMMARY in millions ASSETS Current assets: Cash and cash equivalents Time deposits Other current assets 2022 Dec 31, RMB Sep 30, RMB (Unaudited) 2023 Sep 30, USD (Unaudited) 24,889 15,116 2,072 84,948 87,174 11,948 21,766 25,275 3,464 Total current assets 131,603 127,565 17,484 Property, equipment and software, net 6,342 7,582 1,039 Other non-current assets 34,816 36,428 4,993 Total assets 172,761 171,575 23,516 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & SHAREHOLDERS' EQUITY Current liabilities: Contract liabilities 12,519 14,189 1,945 Other current liabilities 44,310 29,680 4,068 Total current liabilities 56,829 43,869 6,013 Total liabilities 63,888 47,630 6,528 Redeemable noncontrolling interests 136 144 20 Total equity 108,737 123,801 16,968 Total liabilities, redeemable noncontrolling 172,761 171,575 23,516 interests and shareholders' equity 網易 NETEASE#13INCOME STATEMENT SUMMARY 3Q22 2Q23 3Q23 3Q23 QoQ YOY in millions except per ADS data & percentage data RMB RMB RMB USD Change Change (Unaudited) (Unaudited) (Unaudited) Total net revenues: 24,427 24,011 27,270 3,738 13.6% 11.6% Games and related value-added services 18,699 18,799 21,780 2,985 15.9% 16.5% Youdao 1,402 1,207 1,539 211 27.5% 9.8% Cloud Music 2,357 1,949 1,973 270 1.2% -16.3% Innovative businesses and others 1,969 2,056 1,978 272 -3.8% 0.5% Gross profit 13,744 14,375 16,966 2,325 18.0% 23.4% Gross profit margin 56.3% 59.9% 62.2% 62.2% Operating profit 4,742 6,063 7,558 1,036 24.7% 59.4% Operating profit margin 19.4% 25.2% 27.7% 27.7% Net income attributable to the Company's shareholders 6,699 8,243 7,837 1,074 -4.9% 17.0% Diluted net income per ADS ¥10.17 ¥12.69 ¥12.06 $1.65 -5.0% 18.6% Note: All percentages are calculated based on numbers in millions except per ADS data 網易 NETEASE#14THANK YOU 網易 NETEASE