March Quarter 2017 Results - Alibaba Group

1 March Quarter 2017 Results May 18, 2017 . Disclaimer This presentation contains forward-looking statements. These statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, . expects, anticipates, future, intends, plans, believes, estimates, potential, continue, ongoing, targets, guidance . and similar statements. Among other things, statements that are not historical facts, including statements about Alibaba 's strategies and business plans, Alibaba 's beliefs and expectations regarding the growth of its businesses and its revenue for the full fiscal year, 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.

2 Alibaba may also make forward-looking statements in its periodic reports to the Securities and Exchange Commission (the SEC ), 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, including but not limited to the following: Alibaba 's goals and strategies; Alibaba 's future business development;. Alibaba 's ability to maintain the trusted status of its ecosystem, reputation and brand; risks associated with increased investments in Alibaba 's business and new business initiatives; risks associated with strategic acquisitions and investments; Alibaba 's ability to retain or increase engagement of consumers, merchants and other participants in its ecosystem and enable new offerings.

3 Alibaba 's ability to maintain or grow its revenue or business; risks associated with limitation or restriction of services provided by Alipay; changes in laws, regulations and regulatory environment that affect Alibaba 's business operations; privacy and regulatory concerns; competition; security breaches; the continued growth of the e-commerce market in China and globally; risks associated with the performance of our business partners, including but not limited to Ant Financial, and fluctuations in general economic and business conditions in China and globally and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Alibaba 's filings with the SEC. 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.

4 This presentation contains certain financial measures that are not recognized under generally accepted accounting principles in the United States ( GAAP ), including adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted EPS 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 Reconciliation. 2. March Quarter 2017 Financial Highlights Revenue 60% YoY Cloud 103% Cloud Total Revenue Growth Computing YoY. Revenue Growth 47% YoY Cloud Computing Core Commerce Segment Adjusted Revenue Growth EBITA Margin (8%). Mobile 85% Mobile Revenue Strong 59% Core Commerce as % of China Segment Adjusted Commerce Retail Profitability and EBITA Margin Revenue Cash Flow US$ Bn(2). 507 MM Mobile MAUs (1) Non-GAAP Free Cash Flow Notes: Unless otherwise indicated, all figures above are for the three months ended March 31, 2017 .

5 (1) For the month ended March 31, 2017 ; in a given month, the number of unique mobile devices that were used to visit or access certain of our mobile applications at least once during that month. (2) All translations of RMB into US$ were made at to US$ 3. Quarterly Revenue Total revenue YoY growth of 60% was mainly driven by the robust revenue growth across all our segments, in particular our China commerce retail revenue growth. Our revenue is more diversified. Revenue from China commerce retail business represents 67%. of total revenue, down from 76% in the same Quarter of 2016. Total Revenue Total Revenue YoY Growth (%). (RMB Bn). China commerce retail revenue % of 76% 73% 70% 77% 67% 59% 60%. Total Revenue 55% 54%. 47% 47%. 45%. 41%. 39%. 37%. Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, 2016 2016 2016 2016 2017 2016 2016 2016 2016 2017 .

6 China commerce retail revenue Others Total revenue YoY growth rate (%). Core commerce revenue YoY growth rate (%). Note: For the three months ended on the respective dates. 4. Continued Upward Trend in Monetizing User Base Annual China Retail Revenue / Annual Active Buyer (1) Annual China Retail Mobile Revenue / Mobile MAU (2). (RMB) (RMB). 260 200. US$36(3) US$26(3). 240 180. 220 160. 200 140. 180 120. 160 100. 140 80. 120 60. Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, 2015 2015 2015 2016 2016 2016 2016 2017 2015 2015 2015 2016 2016 2016 2016 2017 . Notes: (1) China commerce retail revenue per active buyer for each of the above periods is calculated by dividing the China commerce retail revenue for the last 12-month period by the annual active buyers for the same 12-month period.

7 (2) Annual mobile revenue per mobile MAU from China commerce retail is calculated by dividing mobile revenue from China commerce retail for the last 12-month period by the mobile MAUs for the last month of the same period. (3) All translations of RMB into US$ were made at to US$ 5. User Growth - Active Buyers & Mobile MAUs Annual Active Buyers Mobile MAUs (in millions) (in millions). 460 507. 454 500 493. 450. 443 450. 439 450. 440 427. 434. 410. 430. 400. 423. 420. 350. 410. 400 300. For 12M Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, For 1M Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, ended 2016 2016 2016 2016 2017 ended 2016 2016 2016 2016 2017 . 6. Quarterly Cost Trends Cost of Revenue (Excluding SBC) Product Development Expenses (Excluding SBC). (RMB Bn) (RMB Bn). % of % of Revenue 35% Revenue 35% 37% 8% 5% 8%. Mar 31, 2016 Dec 31, 2016 Mar 31, 2017 Mar 31, 2016 Dec 31, 2016 Mar 31, 2017 .

8 Sales & Marketing Expenses (Excluding SBC) General & Administrative Expenses (Excluding SBC). (RMB Bn) (RMB Bn). % of % of 10% 8% 10% 4% 4% 6%. Revenue Revenue Mar 31, 2016 Dec 31, 2016 Mar 31, 2017 Mar 31, 2016 Dec 31, 2016 Mar 31, 2017 . Note: For the three months ended on the respective dates. 7. Free Cash Flow, Capital Expenditures and Cash Capital Expenditures and Intangible Cash, Cash Equivalents and Non-GAAP Free Cash Flow (1) Assets Short-term Investments (RMB Bn) (RMB Bn) (RMB Bn). Non-real Estate 3% 6% 7%. CAPEX as a % of Revenue US$ Bn(2) Mar 31, 2016 Dec 31, 2016 Mar 31, 2017 Mar 31 2016 Dec 31, 2016 Mar 31, 2017 As of Sep 30, As of Dec 31, As of Mar 31, 2016 2016 2017 . Acquisitions of Land Use Rights and Short-term Investments Construction in Progress Non-GAAP Free Cash Flow Non-real Estate CAPEX and Cash and Cash Equivalents Intangible Assets Notes: Unless otherwise indicated, all figures in the above charts are for the three months ended on the respective dates.

9 (1) Non-GAAP free cash flow represents net cash provided by operating activities as presented in Alibaba Group 's consolidated cash flow statement less purchases of property and equipment and intangible assets (excluding acquisition of land use rights and construction in progress), and adjusted for changes in loan receivables relating to the SME loan business and others. (2) All translations of RMB into US$ were made at RMB to US$ 8. March Quarter Segment Reporting Core Commerce Cloud Digital Media Innovation Un- Consolidated Computing Entertainment Initiatives allocated(2). & Others China Commerce Retail China Commerce Wholesale International Commerce Retail International Commerce Wholesale Mar 17 RMB 31,570 RMB 2,163 RMB 3,927 RMB 919 RMB 38,579. Revenue US$ 4,587 US$ 314 US$ 571 US$ 133 - US$ 5,605. (MM) 47% YoY 103% YoY 234% YoY 88% YoY 60% YoY.

10 Mar 17 Adjusted RMB 18,579 RMB (169) RMB (1,711) RMB (682) RMB (866) RMB 15,151. EBITA. US$ 2,699 US$ (24) US$ (249) US$ (99) US$ (126) US$ 2,201. (MM). Mar 17. Adjusted EBITA 59% (8%) (44%) (74%) 39%. Margin (%). Mar 16 Adjusted EBITA Margin 59% (16%) (17%) (210%) 43%. (%). Notes: 1. Segmental information is presented after elimination of inter-company transactions. 2. Unallocated expenses are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. 3. All translations of RMB into US$ were made at to US$ 9. Fiscal 2017 Highlights 56% YoY 80% Mobile Revenue Revenue GMV RMB T Mobile as % of China Total Revenue (US$ 547 Bn(1)) Commerce Retail Growth Revenue Transacted on 45% YoY China retail 79% Mobile GMV. Core Commerce marketplaces as % of Revenue Growth annual GMV.