Alibaba : March Quarter 2024 and Full Fiscal Year 2024 Results Presentation

March Quarter 2024 Results

May14,2024

1

Disclaimer

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, Alibaba's plan to convert to primary listing in Hong Kong, Alibaba's strategies and business plans, Alibaba's beliefs, expectations and guidance regarding the growth of its business, revenue and return on investments, share repurchases, 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; Alibaba's ability to compete, innovate and maintain or grow its revenue or business, including expanding its international and cross-border businesses and operations and managing a large and complex organization; risks associated with sustained investments in Alibaba's businesses; fluctuations in general economic and business conditions in China and globally; uncertainties arising from competition among countries and geopolitical tensions, including protectionist or national security policies and export control, economic or trade sanctions; risks associated with Alibaba's acquisitions, investments and alliances; uncertainties and risks associated with a broad range of complex laws and regulations (including in the areas of data security and privacy protection, anti-monopoly and anti-unfair competition, content regulation, consumer protection and regulation of Internet platforms) in the PRC and globally; cybersecurity risks; impact of the COVID-19 pandemic; 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 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

Financial Highlights

		Three months ended Mar 31,
(in RMB Mn, except per share data and percentages)	2023	2024		YoY%
Taobao and Tmall Group		89,889	93,216		4%
Cloud Intelligence Group	24,742	25,595		3%
Alibaba International Digital Commerce Group	18,915	27,448		45%
Cainiao Smart Logistics Network Limited	18,915	24,557		30%
Local Services Group	12,340	14,628		19%
Digital Media and Entertainment Group	4,989	4,945		(1)%
All others(1)	53,303	51,458		(3)%
Total segment revenue		223,093	241,847		8%
Unallocated	232	397
Inter-segment elimination	(15,125)	(20,370)
Consolidated revenue		208,200	221,874		7%
Income from operations	15,240	14,765		(3)%
Share-based compensation expense	7,546	7,123
Amortization and impairment of intangible assets	2,494	2,081
Impairment of goodwill, and others	-	-
Net income	21,996	919		(96)%
Diluted earnings per share(2)(3)	1.12	0.16		(86)%
Diluted earnings per ADS(2)(3)	9.00	1.30		(86)%
Non-GAAP Measures
Adjusted EBITA	25,280	23,969		(5)%
Non-GAAP net income	27,375	24,418		(11)%
Non-GAAP diluted earnings per share(2)(4)	1.34	1.27		(5)%
Non-GAAP diluted earnings per ADS(2)(4)	10.71	10.14		(5)%

Twelve months ended Mar 31,

2023	2024	YoY%
413,206	434,893	5%
103,497	106,374	3%
70,506	102,598	46%
77,512	99,020	28%
50,249	59,802	19%
18,444	21,145	15%
197,115	192,331	(2)%
930,529	1,016,163	9%

866 1,297

(62,708) (76,292)

868,687	941,168	8%
100,351	113,350	13%
30,831	18,546
13,504	21,592
3,225	11,540
65,573	71,332	9%
3.43	3.91	14%
27.46	31.24	14%
147,911	165,028	12%
141,379	157,479	11%
6.82	7.78	14%
54.56	62.23	14%

Notes: During fiscal year 2024, our segment reporting has been updated to reflect our Reorganization and the reclassification of the revenue of our DingTalk business, which was previously reported under Cloud Intelligence Group, to All others, the purpose of which was to provide DingTalk with greater autonomy to promote innovation and enhance competitiveness. Our CODM started to review information under this new reporting structure and segment reporting has been updated to conform to this change as well as the way we manage and monitor segment performance. Comparative figures were reclassified to conform to this presentation.

1. All others include Sun Art, Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent Information Platform (which mainly consists of UCWeb and Quark businesses), Fliggy, DingTalk (previously reported under Cloud Intelligence Group segment) and other businesses. The majority of revenue within All others consist of direct sales revenue, which is recorded on a gross basis.
2. Each ADS represents eight ordinary shares.
3. Diluted earnings per share is derived from dividing net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares, on a diluted basis. Diluted earnings per ADS is derived from the diluted earnings per share after

	adjusting for the ordinary share-to-ADS ratio.	3
(4)	Non-GAAP diluted earnings per share is derived from dividing non-GAAP net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary 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.

Cash Return to Shareholders

Share Repurchase

• During the quarter ended March 31, 2024, we repurchased a total of 524 million ordinary shares (equivalent of 65 million ADSs) for a total of US$4.8 billion. These purchases were made in both the U.S. and Hong Kong markets under our share repurchase program. For the fiscal year ended March 31, 2024, we repurchased a total of 1,249 million ordinary shares (equivalent of 156 million ADSs) for a total of US$12.5 billion.
• As of March 31, 2024, we had 19,469 million ordinary shares (equivalent of 2,434 million ADSs) outstanding, a net decrease of 520 million ordinary shares during the quarter, or a 2.6% net reduction in our outstanding shares after accounting for shares issued under our equity incentive plan. For the full fiscal year ended March 31, 2024, our share repurchase program resulted in a net decrease of 1,057 million ordinary shares, or a 5.1% net reduction in our outstanding shares after accounting for shares issued under our equity incentive plan.

Repurchase amount (US$Bn) Shares repurchased (Mn ADSs) Outstanding shares (Mn ADSs) Net reduction % in total shares outstanding(1)

		Three months ended					Twelve months ended				Three months ended					Twelve months ended
Jun. 30,		Sep. 30,		Dec. 31,		Mar. 31,			Mar. 31,		Jun. 30,		Sep. 30,		Dec. 31,		Mar. 31,			Mar. 31,
2022	2022	2022	2023	2023	2023	2023	2023	2024	2024
3.5		2.1		3.3		1.9			10.9		3.1		1.7		2.9		4.8			12.5
39	24	45	22	130	36	19	37	65	156
2,648	2,626	2,585	2,566	2,566	2,549	2,531	2,499	2,434	2,434
							3.9%(2)									5.1%

Dividends

• Our board of directors has approved a two-part dividend comprised of (i) an annual regular cash dividend for fiscal year 2024 in the amount of US$0.125 per ordinary share or US$1.00 per ADS, and (ii) a one-time extraordinary cash dividend as a distribution of proceeds from disposition of certain financial investments in the amount of US$0.0825 per ordinary share or US$0.66 per ADS, in each case payable in U.S. dollars, to holders of ordinary shares and holders of ADSs, as of the close of business on June 13, 2024, Hong Kong Time and New York Time, respectively. The aggregate amount of the dividend will be approximately US$4.0 billion.

Notes:

4

1. Net reduction % in total shares outstanding is calculated by comparing the outstanding number of shares at the end of the fiscal year to the outstanding number of shares at the end of the prior fiscal year.
2. As of March 31, 2022, we had 21,357 million ordinary shares (equivalent of 2,670 million ADSs) outstanding.

Income Statement: Selected Financials

		Three months ended Mar 31,		Twelve months ended Mar 31,
(in RMB Mn, except percentages)	2023	2024	YoY%	Change YoY	2023	2024	YoY%	Change YoY
Income from operations		15,240	14,765	(3)%	(475)		100,351	113,350	13%	12,999
Interest and investment income, net	10,496	(5,702)	N/A	(16,198)	(11,071)	(9,964)	(10)%	1,107
Interest expense	(1,736)	(2,177)	25%	(441)	(5,918)	(7,947)	34%	(2,029)
Other income, net	1,308	2,963	127%	1,655	5,823	6,157	6%	334
Income before income tax and share of results of	25,308	9,849	(61)%	(15,459)	89,185	101,596	14%	12,411
equity method investees
Income tax expenses	(3,758)	(5,722)	52%	(1,964)	(15,549)	(22,529)	45%	(6,980)
Share of results of equity method investees	446	(3,208)	N/A	(3,654)	(8,063)	(7,735)	(4)%	328
Net income	21,996	919	(96)%	(21,077)	65,573	71,332	9%	5,759
Net income attributable to ordinary shareholders	23,516	3,270	(86)%	(20,246)	72,509	79,741	10%	7,232
Adjustments to reconcile net income to non-GAAP net income:
Share-based compensation expense	7,546	7,123	(6)%	(423)	30,831	18,546	(40)%	(12,285)
Amortization and impairment of intangible assets	2,494	2,081	(17)%	(413)	13,504	21,592	60%	8,088
(Gain) Loss on deemed disposals/disposals/revaluation of investments	(11,804)	4,994	N/A	16,798	13,857	21,659	56%	7,802
Impairment of goodwill and investments, and others	7,290	10,657	46%	3,367	24,862	33,679	35%	8,817
Tax effects(1)	(147)	(1,356)	822%	(1,209)	(7,248)	(9,329)	29%	(2,081)
Non-GAAP net income	27,375	24,418	(11)%	(2,957)	141,379	157,479	11%	16,100
Non-GAAP net income attributable to ordinary shareholders	27,985	25,343	(9)%	(2,642)	144,029	158,587	10%	14,558
Note:									5
(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.

Cash Flow & Balance Sheet: Selected Financials

			Three months ended Mar 31,			Twelve months ended Mar 31,
			2023	2024			2023	2024
	Cash Flow		RMB Mn		RMB Mn	USD Mn		RMB Mn		RMB Mn	USD Mn
	Net cash provided by operating activities	31,401	23,340	3,233	199,752	182,593	25,289
	Less:
	Purchase of property and equipment (excluding land use rights and construction in
	progress relating to office campuses)	(2,513)	(10,174)	(1,410)	(30,373)	(27,579)	(3,820)
	Purchase of intangible assets (excluding those acquired through acquisitions)	-	-	-	(22)	(842)	(116)
	Changes in the buyer protection fund deposits	3,379	2,195	304	2,306	2,038	282
	Free cash flow		32,267	15,361	2,127	171,663	156,210	21,635
	Net cash outflow relating to capital expenditure	(3,478)	(11,153)	(1,545)	(34,330)	(32,087)	(4,444)
	Net cash inflow (outflow) from investment and acquisition activities(1)	1,478	(328)	(45)	(840)	2,961	410
	Share Repurchase	(12,611)	(34,014)	(4,711)	(74,746)	(88,745)	(12,291)
			As of Mar 31,		As of Mar 31,
			2023		2024
	Balance Sheet		RMB Mn		RMB Mn	USD Mn
	Cash and cash equivalents	193,086	248,125	34,365
	Short-term investments	326,492	262,955	36,419
	Other treasury investments	40,736	106,150	14,701
	Cash balance	560,314	617,230	85,485
	Less:
	Current and non-current bank borrowings	(59,489)	(68,435)	(9,478)
	Current and non-current unsecured senior notes	(101,865)	(102,341)	(14,174)
	Net cash position		398,960		446,454	61,833
Note:										6
(1) Net cash inflow (outflow) from investment and acquisition activities represent cash outflow for investment and acquisition activities, net of cash inflow from disposal of investments.

Cost of Revenue and Operating Expenses

Cost of Revenue (excluding SBC)

(RMB Mn)
Three months ended		Twelve months ended
% of Revenue
66%	67%	62%	62%

137,588	147,207	543,985	583,311
Mar 31, 2023	Mar 31, 2024	Mar 31, 2023	Mar 31, 2024
Sales & Marketing Expenses (excluding SBC)
(RMB Mn)
Three months ended		Twelve months ended
% of Revenue
12%	13%	12%	12%

24,073	28,091	99,786	112,876
Mar 31, 2023	Mar 31, 2024	Mar 31, 2023	Mar 31, 2024

Product Development Expenses (excluding SBC)

(RMB Mn)
Three months ended		Twelve months ended
% of Revenue
5%	5%	5%	5%

10,942	12,048	43,230	44,633
Mar 31, 2023	Mar 31, 2024	Mar 31, 2023	Mar 31, 2024
General & Administrative Expenses (excluding SBC)
(RMB Mn)
Three months ended		Twelve months ended
% of Revenue
5%	4%	4%	4%

10,317	10,559	34,286	36,339
Mar 31, 2023	Mar 31, 2024	Mar 31, 2023	Mar 31, 2024	7

Segment Results: Quarter ended March 31

Three months ended Mar 31, 2024

			Alibaba
			International	Cainiao Smart		Digital Media
		Cloud	Digital	Logistics	Local	and
(in RMB Mn, except percentages)	Taobao and	Intelligence	Commerce	Network	Services	Entertainment	All Others(1)		Unallocated(2)	Inter-segment
Tmall Group	Group	Group	Limited	Group	Group	Total segments	elimination	Consolidated
Revenue	93,216	25,595	27,448	24,557	14,628	4,945	51,458	241,847	397	(20,370)	221,874
Revenue YoY%	4%	3%	45%	30%	19%	(1)%	(3)%	8%			7%
Adjusted EBITA	38,501	1,432	(4,085)	(1,342)	(3,198)	(884)	(2,818)	27,606	(2,900)	(737)	23,969
Adjusted EBITA YoY Change	(540)	445	(1,914)	(1,023)	865	245	(963)	(2,885)	1,464	110	(1,311)
Adjusted EBITA YoY%(3)	(1)%	45%	(88)%	(321)%	21%	22%	(52)%	(9)%			(5)%
					Three months ended Mar 31, 2023
			Alibaba
			International	Cainiao Smart		Digital Media
		Cloud	Digital	Logistics	Local	and
(in RMB Mn)	Taobao and	Intelligence	Commerce	Network	Services	Entertainment	All Others(1)		Unallocated(2)	Inter-segment
Tmall Group	Group	Group	Limited	Group	Group	Total segments	elimination	Consolidated
Revenue	89,889	24,742	18,915	18,915	12,340	4,989	53,303	223,093	232	(15,125)	208,200
Adjusted EBITA	39,041	987	(2,171)	(319)	(4,063)	(1,129)	(1,855)	30,491	(4,364)	(847)	25,280

Notes: During fiscal year 2024, our segment reporting has been updated to reflect our Reorganization and the reclassification of the results of our DingTalk business, which was previously reported under Cloud Intelligence Group, to All others, the purpose of which was to provide DingTalk with greater autonomy to promote innovation and enhance competitiveness. Our CODM started to review information under this new reporting structure and segment reporting has been updated to conform to this change as well as the way we manage and monitor segment performance. Comparative figures were reclassified to conform to this presentation.

1. All others include Sun Art, Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent Information Platform (which mainly consists of UCWeb and Quark businesses), Fliggy, DingTalk (previously reported under Cloud Intelligence Group segment) and other businesses.
2. Unallocated primarily relates to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments.
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.

8

Segment Results: Twelve months ended March 31

Twelve months ended Mar 31, 2024

			Alibaba
			International	Cainiao Smart		Digital Media
		Cloud	Digital	Logistics	Local	and
(in RMB Mn, except percentages)	Taobao and	Intelligence	Commerce	Network	Services	Entertainment	All Others(1)		Unallocated(2)	Inter-segment
Tmall Group	Group	Group	Limited	Group	Group	Total segments	elimination	Consolidated
Revenue	434,893	106,374	102,598	99,020	59,802	21,145	192,331	1,016,163	1,297	(76,292)	941,168
Revenue YoY%	5%	3%	46%	28%	19%	15%	(2)%	9%			8%
Adjusted EBITA	194,827	6,121	(8,035)	1,402	(9,812)	(1,539)	(9,160)	173,804	(6,190)	(2,586)	165,028
Adjusted EBITA YoY Change	5,687	2,020	(3,091)	1,793	3,336	1,250	228	11,223	5,953	(59)	17,117
Adjusted EBITA YoY%(3)	3%	49%	(63)%	N/A	25%	45%	2%	7%			12%
					Twelve months ended Mar 31, 2023
			Alibaba
			International	Cainiao Smart		Digital Media
		Cloud	Digital	Logistics	Local	and
(in RMB Mn)	Taobao and	Intelligence	Commerce	Network	Services	Entertainment	All Others(1)		Unallocated(2)	Inter-segment
Tmall Group	Group	Group	Limited	Group	Group	Total segments	elimination	Consolidated
Revenue	413,206	103,497	70,506	77,512	50,249	18,444	197,115	930,529	866	(62,708)	868,687
Adjusted EBITA	189,140	4,101	(4,944)	(391)	(13,148)	(2,789)	(9,388)	162,581	(12,143)	(2,527)	147,911

Notes: During fiscal year 2024, our segment reporting has been updated to reflect our Reorganization and the reclassification of the results of our DingTalk business, which was previously reported under Cloud Intelligence Group, to All others, the purpose of which was to provide DingTalk with greater autonomy to promote innovation and enhance competitiveness. Our CODM started to review information under this new reporting structure and segment reporting has been updated to conform to this change as well as the way we manage and monitor segment performance. Comparative figures were reclassified to conform to this presentation.

1. All others include Sun Art, Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent Information Platform (which mainly consists of UCWeb and Quark businesses), Fliggy, DingTalk (previously reported under Cloud Intelligence Group segment) and other businesses.
2. Unallocated primarily relates to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments.
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.

9

Taobao and Tmall Group

Xianyu

Business Highlights

• Under our strategy to put users first and develop systems for brands, merchants and industrial belt manufacturers to operate with high efficiency on our platform, we aim to provide a shopping experience that satisfies all aspects of consumption needs with quality products and services at attractive prices. We are increasing strategic investment in areas such as price competitive product supplies, customer service, membership program benefits and technology, aiming to enhance user experience, which resulted in improved consumer retention and higher purchase frequency.
• Our strategy of price-competitiveness and focus on user experience is yielding results. During the quarter, we achieved double-digit online GMV and order growth year- over-year, driven by strong increase in the number of purchasers and purchase frequency.
• Importantly, the number of 88VIP members increased by double digits year-over-year, surpassing 35 million during the quarter. We will continue to increase the subscription of 88VIP membership among our premium shoppers by improving customer service and enhancing program benefits.

	Three months ended Mar 31,		Twelve months ended Mar 31,
(in RMB Mn, except percentages)	2023	2024	YoY %		2023	2024	YoY %
Customer management	60,545	63,574	5%		291,541	304,009	4%
Direct sales and others	25,212	24,690	(2)%	103,811	110,405	6%
China commerce wholesale	4,132	4,952	20%	17,854	20,479	15%
Revenue	89,889	93,216	4%		413,206	434,893	5%
Adj. EBITA	39,041	38,501	(1)%		189,140	194,827	3%

China Commerce Retail Revenue

• Revenue from our China commerce retail business in the quarter ended March 31, 2024 was RMB88,264 million (US$12,224 million), an increase of 3% compared to RMB85,757 million in the same quarter of 2023.
• Customer management revenue increased by 5% year-over-year, primarily due to a double-digityear-over-year growth in online GMV, excluding unpaid orders, partly offset by a decline in overall take rate. The overall take rate decreased year- over-year primarily due to the increase in online GMV mainly coming from Taobao merchants and the introduction of new models that currently have low monetization rates.
• Direct sales and others revenue under China commerce retail business in the quarter ended March 31, 2024 was RMB24,690 million (US$3,419 million), a decrease of 2% compared to RMB25,212 million in the same quarter of 2023.

China Commerce Wholesale Revenue

• Revenue from our China commerce wholesale business in the quarter ended March 31, 2024 was RMB4,952 million (US$686 million), an increase of 20% compared to RMB4,132 million in the same quarter of 2023, primarily due to an increase in revenue from value-addedservices provided to paying members.

Segment Adjusted EBITA

• Taobao and Tmall Group adjusted EBITA was RMB38,501 million (US$5,332 million) in the quarter ended March 31, 2024, compared to RMB39,041 million in the same quarter of 2023, primarily due to the increase in investment in user experience (which resulted in improved consumer retention and higher

purchase frequency) and technology infrastructure, partly offset by the increase
in revenue from customer management service.	10