INVESTOR PRESENTATION

February 2013
 Safe Harbor
This presentation 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. These forward-looking statements are based on the current
assumptions, expectations and projections of the Company's management about future
events. Although the assumptions, expectations and projections reflected in these
forward-looking statements represent management's best judgment at the time of this
presentation, the Company can give no assurance that they will prove to be correct.
Numerous factors, including those related to market conditions and those detailed from
time-to-time in the Company’s filings with the Securities Exchange Commission, may
cause results of the Company to differ materially from those anticipated in these forward-
looking statements. Many of the factors that will determine the Company’s future results
are beyond the ability of the Company to control or predict. These forward-looking
statements are subject to risks and uncertainties and, therefore, actual results may differ
materially. The Company cautions you not to place undue reliance on these forward-
looking statements. The Company undertakes no obligation to revise or update any
forward-looking statements, or to make any other forward-looking statements, whether
as a result of new information, future events or otherwise. All references to “Company”
and “NetEase” as used throughout this presentation refer to NetEase, Inc. and its
subsidiaries.

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 Market Snapshot

•  Recent price (02/06/2013) : $45.63

•  ADS outstanding, diluted: 131.36 million
•  Market capitalization : $6.00 billion
•  Institutional ownership : 56.6%
•  Insider and 5%+ owners : 72.5%
•  Total Revenues (FY 2012) : $1.35 billion
•  Net income (FY 2012) : $583.9 million
•  Cash, time deposits and short-term $2.6 billion
investments (as of 12/31/12) :
•  Cash, time deposits and short-term $20.09
investments per ADS, diluted (as of 12/31/12) :

All dollar figures in US$ based on the conversion of Renminbi (RMB) into USD at the noon
buying rate of USD1.00 = RMB6.2301 on the last trading day of December 2012
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 NetEase, Inc.
A leading China-based Internet technology company that develops and
operates some of China’s most popular online games, e-mail services,
advertising services and web portals.

•  Founded in 1997
•  ADSs listed on NASDAQ Global Select Market (formerly
the NASDAQ National Market) since June 30, 2000
•  Over 7,000 employees as of December 31, 2012
•  Extensive product development team of 2,000

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 Businesses

Online Games: The leading provider of self-developed online games to

Internet users in China; licensee of leading games by Blizzard
Entertainment.
Internet Portal: Provides Chinese Internet users with online services
centered around content, community, communication and commerce.
Advertising Services: Enables advertisers to reach one of the largest
user bases in China.
E-mail Services: The largest provider of free e-mail services in China,
which has great marketing value for advertisers who wish to reach our
audience of consumers.
Youdao Products: Specialized online tools complement our portal
including Youdao Dictionary, Youdao Cloudnote, and Huihui.cn.
E-commerce: Internet portal provides platform with large user base for
NetEase’s growing range of products and services online.
Mobile applications: Strategic investment in development of mobile
applications to capitalize on ongoing trend of mobile Internet usage.

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 NetEase Brand
Building Community 

Research & Valuable

Development Content

Portal User Online Games

A Massive Feedback Leading China’s online
Marketing Platform entertainment and driving
growth

E-mail

Mobile Applications High End User Experience
E-commerce

Stickiness & New User Acquisition

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 NetEase
Online Games

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 Online Games
NetEase’s top revenue-contributing MMORPGs:

Self-developed:

Licensed:

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 Online Games
Fantasy Westward Journey - 梦幻西游 - 2D (time-based)
•  One of the most popular MMORPG games in China
•  Launched in January 2004
•  New “Perfect Beauty” 3D scene setting is the first of its kind in
China
•  Record PCU of 2.7M in August 2012
•  Timely updates and expansion packs
-  12th expansion pack released in September 2012

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 Online Games
Westward Journey Online II - 大话西游Ⅱ - 2D (time-based)
•  Launched in August 2002
•  13th expansion pack released in June 2012
•  10th anniversary celebrated in August 2012
•  Reached record PCU of 1.3M in August 2012
•  New expansion pack to be released in Q2 2013

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 Online Games
Tianxia III - 天下叁 – 3D (item-based)
•  Comprehensive upgrade from Tianxia II launched in October 2011
•  Leading position in the 3D game market
•  Launched open beta testing in 2Q 2012
•  New “3DX” version released in September 2012
•  New expansion pack to be released in Q2 2013

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 Online Games
Heroes of Tang Dynasty II - 大唐无双Ⅱ - 2.5D (item-based)
•  Martial arts-themed game
•  Comprehensive upgrade of Heroes of Tang Dynasty
•  Launched in November 2012
•  New expansion pack to be released in Q2 2013

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 Online Games
Ghost - 倩女幽魂 - 2.5D (item-based)
•  Strong performance since full-scale closed beta testing launch in
September 2011
•  One of the most popular 2.5D MMORPGs of 2012 in China
•  Open beta testing for new features launched in April 2012
•  New version for Q2 2013

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 Online Games
Two new action games launched in 2H 2012
•  Positive user feedback to unlimited beta testing launch in
September and October 2012
•  Expands the style of games offered
•  New expansion packs to be released in Q2 2013

Soul of the Fighter – 斩魂 - 3D Kung Fu Master – 武魂 - 2.5D

(item-based ARPG) (item-based MMORPG)

PHOTO PHOTO

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 Online Games

•  Working together with Blizzard Entertainment to bring World of

Warcraft® to Chinese gamers since 2009
•  Launched in PRC expansion packs Wrath of the Lich King™ and
World of Warcraft: Cataclysm® in August 2010 and July 2011
•  Released East Asian-inspired expansion set World of Warcraft®:
Mists of Pandaria® on October 2, 2012 for PRC audience
•  Introduced StarCraft® II in PRC in April 2011
•  The Battle.net World Championships were held in Shanghai,
China on November 17-18, 2012 for fans of Blizzard games

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Online Games

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 NetEase Quarterly Online Games Revenue
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
Revenues in RMB Millions

The online gaming market in China

generated RMB56.96 billion or US 9.14 billion in revenue in 2012

Source: iResearch

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 NetEase
Internet Portal

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 A Massive Marketing Platform
•  NetEase family of websites provide platform for content
channels, community services and online services
•  163.com is China’s 7th most-visited website (Alexa)
•  Launched new homepage for 163.com on January 1,
2013
•  Comprehensive coverage of the 2012 London
Olympics and Euro Cup 2012

Attracting
User Experience Blog and Micro-blog
Advertisers
•  Focus on enhancing •  Provides platforms •  Massive interactive
user experience for distributing marketing platform
•  Continual additions of personal information for advertisers
new portal content, •  Social networking •  Gains access to
viewer channels •  Community services NetEase’s community
•  Capability •  Key demographic:
enhancements and Young consumers
upgraded with discretionary
functionality income

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 NetEase Quarterly Advertising Services
Revenue
300

250

200

150

100

50

0
Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
Revenues in RMB Millions

Top advertising verticals in Q4 2012:

Automobile, Financial Services and Internet Services

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 Youdao Products
•  Differentiated search service, focusing on vertical search
products and mobile apps using search technology
•  “Youdao Dictionary 5.0” was released in Q1 2012
•  Over 275M installations of Youdao Dictionary
•  Cloud storage service “Youdao Cloudnote” contains unique
handwritten Chinese note-taking function and fully
integrated mobile features
•  Youdao Cloudnote 3.0 released in December 2012
•  8.5M installations as of year end 2012
•  “Huihui.cn”, launched in September 2012, is a one-stop
shopping guide service

Data is as of December 31, 2012.

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Mobile Applications

•  Strategic entry into mobile space

to attract new advertising
customers
•  Offers over 20 applications for
smartphone platforms, including:
•  News client
•  E-reader
•  Open education courses
•  Cloud music
•  NetEase Mobile News app is
China’s most popular news
application (DCCI Research)
•  50M installations
•  Daily average of 22M active users

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 NetEase
E-mail, Wireless Value-
added Services and Others

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 E-mail

•  China’s largest e-mail service provider

•  2012 marked 15th anniversary of mailbox services
•  530M registered e-mail users as of December 31, 2012
•  Version 5.0 launched August 2012
•  Fee-based premium e-mail services to corporate users
•  2012 marked third anniversary of Enterprise mailbox
services
•  One of top 3 Enterprise mailbox service providers in China
•  Over 50,000 paying customers as of December 31, 2012

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 Other Services

•  Weibo (Micro-blog)

•  Blog and Lofter

•  Online photo album

•  Caipiao

•  Wireless value-added services

•  Yinxiangpai - personalized
photo product service

•  WangYiBao - online payment

service

•  Huatian – online dating service

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 NetEase Quarterly
E-mail, WVAS and Others Revenue

90

80

70

60

50

40

30

20

10

0
Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
Revenues in RMB Millions

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Financial Highlights

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 Summary of Financial Results
(in millions, 2011 2012 2012 2012 Q312- Q411- FY FY FY 2012/
excluding percentages and Q4 Q3 Q4 Q4 Q412 Q412 2011 2012 2012 2011
per ADS data) RMB RMB RMB US$ QoQ YoY RMB RMB US$ YoY
Change
Change change
Total revenues:
Online game services 1,833 1,740 1,977 317 +13.6% +7.9% 6,552 7,287 1,170 +11.2%

Advertising services 279 243 260 42 +6.8% -6.8% 795 850 136 +6.9%

E-mail, WVAS and others 37 62 90 14 +45.03% +141.1% 125 243 39 +94.4%

Total revenues 2,149 2,045 2,327 373 +13.8% +8.3% 7,473 8,380 1,345 +12.1%

Total net revenues 2,099 2,002 2,271 365 +13.4% +8.2% 7,291 8,201 1,316 +12.5%

Gross profit 1,453 1,362 1,608 258 +18.1% +10.7% 4,918 5,623 903 +14.3%

Gross profit margin 69.2% 68.0% 70.8% 70.8% N/A N/A 67.5% 68.6% 68.6% N/A

Operating profit 924 824 1,028 165 +24.7% +11.2% 3,323 3,712 596 +11.7%

Operating profit margin 44.0% 41.2% 45.3% 45.3% N/A N/A 45.6% 45.3% 45.3% N/A

Net profit 899 812 1,009 162 +24.2% +12.2% 3,234 3,637 584 +12.5%

Diluted earnings per ADS ¥ 6.85 ¥6.17 ¥7.68 $1.23 +24.5% +12.1% ¥24.68 ¥27.65 $4.44 +12.0%

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 Balance Sheet Highlights
December 31, December 31, December 31,
2011 2012 2012
RMB million RMB million USD million

ASSETS
Current assets:
Cash and cash equivalents 2,215 1,591 255
Time deposits 9,705 13,099 2,102
Other current assets 2,554 3,179 510
Total current assets 14,474 17,869 2,868
Property, equipment and software 849 815 131
Other assets 122 594 95
Total assets 15,445 19,278 3,094
LIABILITIES & SHAREHOLDERS’ EQUITY
Current liabilities:
Deferred revenue 1,014 1,160 186
Other current liabilities 1,269 2,416 388
Total current liabilities 2,283 3,577 574
Total liabilities 2,347 3,676 590
Total shareholders’ equity 13,098 15,601 2,504
Total liabilities and shareholders’ equity 15,445 19,278 3,094

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 Returning Value to Shareholders

•  Special cash dividend of US$0.04 per ordinary

share (US$1 per ADS) paid to shareholders of
record as of January 15, 2013, with total amount
of approximately US $131 million.

•  As of December 31, 2012: Purchased 1.66M

ADSs, or US$67.2M, in open market purchases
as part of US$100M share repurchase program
initiated in November 2012.

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 Key Takeaways

•  The growing popularity of NetEase flagship self-developed games

combined with the launch of new games is driving revenue growth
•  NetEase has strong in-house R&D capabilities, enabling
continuous upgrades, expansion packs and development of new
games
•  NetEase is partnered with Blizzard Entertainment to operate world’s
most popular MMORPG World of Warcraft® in China
•  The NetEase portal and largest e-mail base in China provide an ideal
and cost-effective platform for our advertisers to reach out to their
target consumer groups
•  NetEase is actively entering mobile Internet by investing in
development of mobile applications
•  NetEase has a strong balance sheet with ample cash to fund its
growing game pipeline and portal development

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 Contact Us

If you would like to request a video trailer or investor kit, or if you have
any queries regarding NetEase, Inc., please contact:

Cassia Curran
NetEase, Inc.
E-mail: cassia@corp.netease.com
Tel: (+86) 571-8985-2076

Brandi Piacente
The Piacente Group, Inc.
E-mail: brandi@corp.netease.com
Tel: (+1) 212-481-2050

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 网聚人的力量
Power to the People