NetEase FY2024 Q4 Earnings Release

4Q24 Investor PresentationInvestor Relations February 20, 2024NetEase

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 expressions. In addition, statementsthat 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 beimpacted 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 suchstrategies; NetEase’s ability to develop and manage its operations and business; competition for, among other things, capital, technologyand skilled personnel; potential changes in regulation environment in the markets where 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; risks related to evolving economic cycles and geopolitical events; risks related to the expansion of NetEase’s businesses and operations internationally; risks associated with cybersecurity threats or incidents; and fluctuations in foreign currency exchange rates that could adversely affect NetEase’s business and financial results. Further information regarding these and other risks is includedin NetEase’s filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. NetEase does not undertake any obligationto update this forward-looking information, except as required under applicable law. SAFE HARBOR STATEMENT

NetEase, 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 withtechnology, 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 Yo u d a o(NYSE: DAO), an intelligent learning company with industry-leading technology, and NetEase 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. For more information, please visit: http://ir.netease.com/.

MARKET SNAPSHOTIn USDNotes: 1Market Cap is calculated usingthe closing price on NASDAQ; Our market cap is HK$524.0 billion based on the closing price on the Hong Kong Stock Exchange2Net cash 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 loans3The result is based on the latest update in October 2024$67.2 billionMarket Cap 1(2/19/25)Shares Outstanding,Diluted (4Q24)3.2billionBasic Net Income per ADS (GAAP) (4Q24)$1.89Net Revenues (4Q24)$3.7billionNet income attributable to the Company’s shareholders (GAAP) (4Q24)$1.2billionNet cash 2(12/31/24)$18.0billionAAMSCI ESG Rating 3

2,866 2,858 2,910 0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%100.0% – 5 0 0 1 ,0 0 0 1 ,5 0 0 2 ,0 0 0 2 ,5 0 0 3 ,0 0 0 3 ,5 0 0 4 ,0 0 04Q233Q244Q24Online GamesRelated VAS69.5%68.8%66.7%Gros s MarginGAMES AND RELATED VALUE-ADDED SERVICES Games and Related Value-added Services Net Revenues and Gross Margin~65%: mobile games~35%: PC & console gamesNote: 1 US$1.00 = RMB7.2993 on December 31, 2024. Same exchange rate is applied to all years for illustrative purposesOnline Games97% (4Q24)RelatedVASUSD million1

•Introduced more new blockbuster games around the globe, reinforcing NetEase’s leadership across diverse genres and growing global momentum.•Marvel Rivalstopped Steam’s global top sellers chart shortly after its launch on December 6, with over 40 million registered users to date. Its Season 1 update in January 2025 sparked another surge, claiming the No. 1 spots on Steam’s top sellers and most-played charts worldwide.•Where Winds Meet accumulated over 15 million players within two weeks after the successful release of the game’s mobile version.•Justice mobile game topped the iOS download charts in Hong Kong, Macau and Taiwan and reached No. 1 position on the iOS top grossing chart in Taiwan in January 2025.•Blizzard titles World of Warcraft and Hearthstone continued to generate strong enthusiasm from the Chinese gaming community, while the return of Overwatch 2 on February 19, 2025 further fueled players’ passion. •Established titles maintained their popularity, such as Westward Journey Online 2, Fantasy Westward Journey Online andmobile game, Infinite Borders, Onmyoji, Identity V, Naraka: Bladepointand Justice franchise, demonstrating NetEase’s prowess in long-term game operations.•New game lineup for global markets, including Fragpunk, Destiny: Rising and MARVEL Mystic Mayhem, positioned to further diversify game portfolio. ONLINE GAMESPC & CONSOLE GAMESMOBILE GAMESFlagship Self-Developed PC & Console TitlesSelf-Developed Mobile GamesLicensed Mobile Games From Overseas DevelopersMobile Games in Overseas Markets

203 215 184 4Q233Q244Q24Net Revenues49.9%50.2%47.8%Gros s MarginYOUDAOYo u d a o Net Revenues and Gross MarginUSD million1•Yo u d a o ‘ soperating profit increased by over 10% year-over-year in the fourth quarter, achieving its first-ever annual operating profit in 2024.•By prioritizing high-demand courses, it achieved healthy development and reinforced profitability for learning services.•Yo u d a o ‘ sonline marketing services continued to advance domestic and overseas development.•Smart devices segment maintained healthy growth.Note: 1 US$1.00 = RMB7.2993 on December 31, 2024. Same exchange rate is applied to all years for illustrative purposes

2722742584Q233Q244Q24Net Revenues30.3%32.8%31.9%Gros s MarginNETEASE CLOUD MUSICNetEase Cloud MusicNet Revenues and Gross MarginNote: 1 US$1.00 = RMB7.2993 on December 31, 2024. Same exchange rate is applied to all years for illustrative purposes•NetEase Cloud Music continued to drive quality development across its music-centric ecosystem, nurturing its unique community and distinctive content offerings.•Continued to reinforce its signature music consumption experiences while expanding consumption scenarios and brand awareness.•Expanded its music library and kept bringing users a diverse range of licensed and original music.•Continued to improve its music-focused monetization and lay solid foundation for sustainable growth.USD million1

3772433134Q233Q244Q24Net Revenues34.4%37.8%37.8%Gros s MarginINNOVATIVE BUSINESSES AND OTHERSInnovative Businesses and Others Net Revenues and Gross MarginUSD million1NetEaseYa n x u a n•Leading private-label consumer lifestyle brand in China•Continued to strengthen its brand presence with highly popular products in focused categories•Va r i o u s p r o d u c t c a t e g o r i e s , s u c h a s p e t p r o d u c t s , h o u s e h o l d c l e a n i n g products and office furniture, achieved strong sales growth, securing leading positions in sales on several e-commerce platforms.WangyiXinwen•www.163.com portal and related mobile app, Wa n g y iXinwen:deliver quality information such as news, sports events, technology, fashion trends and online entertainment to our usersE-mail Services•China’sleading e-mail service provider since 1997Note: 1 US$1.00 = RMB7.2993 on December 31, 2024. Same exchange rate is applied to all years for illustrative purposes

3.84.85.41.8FY2 02 2FY2 02 3FY2 02 4Q4 20 2413.214.214.43.7FY2 02 2FY2 02 3FY2 02 4Q4 20 24FINANCIAL HIGHLIGHTSNet RevenuesNet Income Attributable to Shareholders(GAAP)Operating Cash FlowVa l u e R e t u r n e d t o S h a r e h o l d e r sUS$FY2022FY2023FY2024Q4 2024Dividend per ADS (declared)$1.38700$2.56485$2.58525$1.22025Total Dividends (declared)$906 m$1,649 m$1,651 m$775 mShare Buyback$1,187 m$687 m$1,230 m$245 m2.84.04.11.2 FY2 02 2FY2 02 3FY2 02 4Q4 20 24Notes: 1US$1.00 = RMB7.2993 on December 31, 2024. Same exchange rate is applied to all years for illustrative purposes2Total dividends (declared) equals to dividend per ADS (declared) multiplied by each quarter’s corresponding weighted average number of ADS outstanding, basic USD billion12

ESG PERFORMANCEMSCI RatingsS&P Global ESG ScoreSustainalyticsRatingsLast Updated: October 2024According to MSCI’s evaluation,NetEase is a leader among 233 companies in the media & entertainment industryAALast Updated: September 2024NetEase has been selected as a member of the 2022 Dow Jones Sustainability World Index and Dow Jones Sustainability Emerging Markets Index. The Company is also included in the S&P Global Sustainability Yearbook 2025 and 20225215.9Last Updated: October 2024NetEase is rated as a low-risk companyNetEase has been included in Sustainalytics’list of top ESG rated badges for 2023

BALANCE SHEET SUMMARY
Dec 31, RM B Dec 31, RM B Dec 31, USD
(Unaudited) (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents 21,429 51,383 7,039
Time deposits 100,856 75,441 10,335
Other current assets 20,408 26,501 3,631
Total current assets 142,693 153,325 21,005
Property, equipment and software, net 8,075 8,520 1,167
Other non-current assets 35,157 34,147 4,679
Total assets 185,925 195,992 26,851
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS &
SHAREHOLDERS’ EQUITY
Current liabilities:
Contract liabilities 13,362 15,299 2,096
Other current liabilities 40,480 34,369 4,708
Total current liabilities 53,842 49,668 6,804
Total liabilities 57,841 53,497 7,329
Redeemable noncontrolling interests 116 84 12
Total equity 127,968 142,410 19,510
Total liabilities, redeemable noncontrolling interests
and shareholders’ equity 185,925 195,992 26,851
in millions
2023 2024

INCOME STATEMENT SUMMARYNote: All percentages are calculated based on numbers in millions except per ADS data
4Q23 3Q24 4Q24 4Q24 QoQ YoY
RMB RMB RMB USD Change Change
(Unaudited) (Unaudited)
Total net revenues: 27,140 26,210 26,748 3,664 2.1% -1.4%
Games and related value-added services 20,921 20,864 21,242 2,910 1.8% 1.5%
Youdao 1,481 1,573 1,340 184 -14.8% -9.5%
NetEa se Clo u d Mu sic 1,986 1,999 1,880 258 -6.0% -5.3%
Innovative businesses and others 2,752 1,774 2,286 312 28.9% -16.9%
Gross profit 16,825 16,477 16,272 2,229 -1.2% -3.3%
Gross profit margin 62.0% 62.9% 60.8% 60.8%
Operating profit 6,868 7,147 7,821 1,072 9.4% 13.9%
Operating profit margin 25.3% 27.3% 29.2% 29.2%
Net income attributable to the Company’s shareholders 6,582 6,538 8,766 1,201 34.1% 33.2%
Diluted net income per ADS ¥10.12 ¥10.14 ¥13.67 $1.87 34.8% 35.1%
in m illions except per ADS data & percentage data

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