December Quarter 2014 Results

January 29, 2015

Disclaimer

This presentation contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S.

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similar statements. Among other things, statements that are not historical facts, including statements about Alibaba’s beliefs and

expectations, 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 written or oral forward-looking statements in

its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in press releases and other written materials and

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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; Alibaba’s ability to retain or increase

engagement of buyers, sellers and other participants in its ecosystem and enable new offerings; Alibaba’s ability to successfully

2

engagement of buyers, sellers and other participants in its ecosystem and enable new offerings; Alibaba’s ability to successfully

monetize traffic on its mobile platform; risks associated with limitation or restriction of services provided by Alipay; risks associated

with increased investments in Alibaba’s business; risks associated with acquisitions; privacy and regulatory concerns; competition;

security breaches; the continued growth of the e-commerce market in China and globally; 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.

This presentation contains certain financial measures that are not recognized under generally accepted accounting principles in the

United States (“GAAP”), including Non-GAAP EBITDA, Non-GAAP net income 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.

49%YoY GMV

Growth

December Quarter 2014 Highlights

334MMAnnual

Active Buyers (2)

40%YoY Revenue

Growth

3

265MMMobile MAUs (3)

US$ 130Bn12-MTH

Mobile GMV (1)(2)

Note: Unless otherwise indicated, all figures above are for the three months ended December 31, 2014(1) Assumes 1 US$ = 6.2046 RMB(2) For the twelve months ended December 31, 2014(3) For the month ended December 31, 2014; based on the aggregate mobile MAUs of apps that contribute GMV on our China retail marketplaces

183176

293

529

430

501

556

787

Quarterly GMV (China Commerce Retail)

GMV

(RMB Bn)

53% 46%YoY

Growth 65% 64% 45%65%62% 49%49%

255223

257 275346

295342

380

494

91

71

8899

183

135

159

176

346

294

345374

430

Dec 31,

2012

Mar 31,

2013

Jun 30,

2013

Sep 30,

2013

Dec 31,

2013

Mar 31,

2014

Jun 30,

2014

Sep 30,

2014

Dec 31,

2014

Taobao Marketplace Tmall

4

For 3M

ended

Active Buyers & Mobile MAUs

231255

279

307

334

(In Millions)

Annual Active Buyers Mobile MAUs

163

188

217

265

(In Millions)

Dec 31,

2013

Mar 31,

2014

Jun 30,

2014

Sep 30,

2014

Dec 31,

2014For 12M

ended

136

163

Dec 31,

2013

Mar 31,

2014

Jun 30,

2014

Sep 30,

2014

Dec 31,

2014

For 1M

ended

5

Mobile GMV Contribution

27%

33%

36%

42%

(RMB Bn)

Quarterly Mobile GMV and Mobile Penetration (China Commerce Retail)

(%)

6

26 32 41 55

104 118164

199

327

7%

11% 12%

15%

20%

Dec 31,

2012

Mar 31,

2013

Jun 30,

2013

Sep 30,

2013

Dec 31,

2013

Mar 31,

2014

Jun 30,

2014

Sep 30,

2014

Dec 31,

2014

Mobile GMV Mobile GMV as a % of Total GMV

For 3M

ended

529

787

20%

42%

Dec 31, 2013 Dec 31, 2014

GMV Mobile GMV as a % of Total GMV

December Quarter 2014 Financial Highlights GMV and Mobile Penetration

+49%

(RMB Bn)

18.7

26.2

Dec 31, 2013 Dec 31, 2014

+40%

Revenue

(%)

7

Non-GAAP EBITDA (1) and Margin(RMB Bn)

10.5 13.1

Dec 31, 2013 Dec 31, 2014

Non-GAAP Net Income (2) and Margin

(RMB Bn)

Margin 56% 50%

Note: For the three months ended on the respective dates (1) Non-GAAP EBITDA represents income from operations (which excludes interest and investment income, net, interest expense, other income, net, income tax expenses and share of

results of equity investees) before certain non-cash expenses, consisting of share-based compensation expense, amortization, depreciation and impairment of goodwill and intangible assets, and an equity-settled donation expense that we do not believe are reflective of its core operating performance during the periods presented.

(2) Non-GAAP net income represents net income before share-based compensation expense, amortization, impairment of goodwill, intangible assets and investments, gain (loss) on deemed disposals/disposals/revaluation of investments, amortization of excess value receivable arising from the restructuring of commercial arrangements with Ant Financial, and one-time expense items consisting of the expenses relating to the sale of shares by existing shareholders in our initial public offering, equity-settled donation expense and an immediate recognition of unamortized upfront fees and professional fees upon early repayment of bank borrowings.

11.2 15.1

Dec 31, 2013 Dec 31, 2014

Margin 60% 58%

2.95%

2.52% 2.77%

2.61%

3.53%

2.63%

3.03%

2.54%

3.23%

3.05% 2.70%

Quarterly Monetization Rate Trends

Quarterly Monetization Rate (China Commerce Retail)

(%)

Non-mobile

monetization

rate(1)

Blended

We manage the business for growth in GMV and active buyers, not for monetization rate

• Blended monetization rate is lower Y/Y due to 1) a greater percentage of GMV coming from mobile and 2) lower P4P monetization on the PC interface driven by user experience improvements

• Blended monetization rate is higher sequentially due to strong GMV growth on Tmall

0.55% 0.47% 0.58% 0.61%

1.12% 0.98%

1.49%

1.87%

1.96%

2.52% 2.77%

2.30%2.51%

2.31%

3.05%

2.18%

2.52%2.30%

2.70%

Dec 31,

2012

Mar 31,

2013

Jun 30,

2013

Sep 30,

2013

Dec 31,

2013

Mar 31,

2014

Jun 30,

2014

Sep 30,

2014

Dec 31,

2014

Mobile Monetization Rate Non-mobile Monetization Rate Blended Monetization Rate

8

Notes:

(1) Derived from China commerce retail non-mobile revenue / non-mobile GMV

(2) Derived from China commerce retail mobile revenue / mobile GMV

Mobile

monetization

rate(2)

Blended

monetization

rate

For 3M

ended

Quarterly RevenueRevenue Breakdown by BusinessTotal Revenue

(% of Total Revenue)(RMB Bn)

Others

18.7

12.0

15.8 16.8

26.2

82%

3%

2%5%

1% 7%

China Commerce Retail

Cloud

Computing

and Internet

InfrastructureInternational

Commerce Wholesale

International

Commerce Retail

China Commerce

Wholesale

(1)

32%41%

110%

21%

85%

9

For 3M ended Dec 31, 2014(1) Other revenue mainly represents interest income generated from micro loans and revenue

generated by UCWeb and AutoNavi. We expect the restructuring of our relationship with Ant

Financial to close in the March 2015 quarter, upon which we will no longer consolidate revenue

generated by the SME loan business in our financial results.

Dec 31,

2013

Mar 31,

2014

Jun 30,

2014

Sep 30,

2014

Dec 31,

2014For 3M

ended

Revenue Growth of Major Businesses(YoY growth % )

1 2 3 4 5

1. China Commerce Retail

2. China Commerce Wholesale

3. International Commerce Retail

4. International Commerce Wholesale

5. Cloud Computing and Internet Infrastructure

Quarterly Margin Trends

Non-GAAP Net Income (2) and MarginNon-GAAP EBITDA (1) and Margin (RMB Bn) (RMB Bn)

• We don’t manage a margin target

• Lower Y/Y non-GAAP EBITDA margin was due to:

• Consolidation of acquired businesses (mainly UCWeb, AutoNavi) with lower margins

• Investment in initiatives such as mobile OS, local services and digital entertainment

• Higher Q/Q non-GAAP EBITDA margin was primarily due to the operating leverage in this seasonally strong quarter

• We will continue to invest in new and existing businesses to drive long-term growth in GMV, new active buyers, revenue and profit

58%60% 50%56%Margin Margin51% 40%

10.5

6.8

13.1

Dec 31, 2013 Sep 30, 2014 Dec 31, 2014

11.2

8.5

15.1

Dec 31, 2013 Sep 30, 2014 Dec 31, 2014

10

Note: For the three months ended on the respective dates (1) Non-GAAP EBITDA represents income from operations (which excludes interest and investment income, net, interest expense, other income, net, income tax expenses and share of

results of equity investees) before certain non-cash expenses, consisting of share-based compensation expense, amortization, depreciation and impairment of goodwill and intangible assets, and an equity-settled donation expense that we do not believe are reflective of its core operating performance during the periods presented.

(2) Non-GAAP net income represents net income before share-based compensation expense, amortization, impairment of goodwill, intangible assets and investments, gain (loss) on deemed disposals/disposals/revaluation of investments, amortization of excess value receivable arising from the restructuring of commercial arrangements with Ant Financial, and one-time expense items consisting of the expenses relating to the sale of shares by existing shareholders in our initial public offering, equity-settled donation expense and an immediate recognition of unamortized upfront fees and professional fees upon early repayment of bank borrowings.

Quarterly Cost Trends

Cost of Revenue (Pre-SBC)

3.9 4.4

6.1

21%

26% 23%

Dec 31, 2013 Sep 30, 2014 Dec 31, 2014

Product Development Expenses (Pre-SBC)

1.5 1.9 1.8

8% 11%

7%

Dec 31, 2013 Sep 30, 2014 Dec 31, 2014

(% of revenue)(RMB Bn) (% of revenue)(RMB Bn)

0.6 1.0 1.2

3% 6% 5%

Dec 31, 2013 Sep 30, 2014 Dec 31, 2014

11

Sales & Marketing Expenses (Pre-SBC)

1.8 1.6 2.6

10% 9% 10%

Dec 31, 2013 Sep 30, 2014 Dec 31, 2014

General & Administrative Expenses (1) (Pre-SBC)(% of revenue)(RMB Bn) (% of revenue)(RMB Bn)

Note: For the three months ended on the respective dates

(1) Excluded equity settled donation expenses

4,313 4,313 4,313

830 830

1,989

GAAP to Non-GAAP Reconciliation

Quarterly Net Income

(RMB MM)

5,983 5,983 5,983 5,983

13,1150

GAAP Net Income Share Based

Compensation

Expense

One-time Charge

for Financing-related

Fees

Others Non-GAAP Net Income

12Note: For the three months ended December 31, 2014

YoY: -28%

YoY: +25%

• Our CAPEX decreased sequentially mainly due to decrease in acquisition of land use rights

• Non-real estate CAPEX decreased sequentially due to higher spending in the September quarter ahead of Singles Day

17.2

22.9

92%

53%

88%

Free Cash Flow, Capital Expenditures and Cash

3.4

10%

Capital ExpendituresFree Cash Flow (1)

(% of revenue)(RMB Bn) (RMB Bn) (% of revenue)

109.9

130.7

21.8

23.7

Cash, Cash Equivalents and

Short-term Investments

(RMB Bn)

8.9

Dec 31, 2013 Sep 30, 2014 Dec 31, 2014

Free Cash Flow

% of Revenue

13

1.2 1.7

1.2

0.4

1.7

0.3

1.6 1.5

6%

5%

Dec 31, 2013 Sep 30, 2014 Dec 31, 2014

Non-real Estate CAPEX

Acquisitions of Land Use Rights

and Construction in Progress

Non-real Estate CAPEX as a % of

Revenue

Note: Unless otherwise indicated, all figures in the above charts are for the three months ended on the respective dates(1) 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 micro loans of its SME loan business.

57.9

51.9

88.1 107.0 6.0

As of Jun 30,

2014

As of Sep 30,

2014

As of Dec 31,

2014

Cash and Cash Equivalents

Short-term Investments

GAAP to Non-GAAP ReconciliationFor the Three Months Ended

RMB MM Dec 31, 2013 Sep 30, 2014 Dec 31, 2014

Non-GAAP EBITDA

Income from operations 8,801 4,345 9,347

Add: Share based compensation expense 659 3,010 4,313

Add: Amortization of intangible assets 123 598 614

Add: Depreciation and amortization of property and equipment and land use rights 394 540 654

Add: Impairment of goodwill and intangible assets - - 175

Add: Equity-settled donation expense 1,269 - -

Non-GAAP EBITDA 11,246 8,493 15,103

Non-GAAP net income

Net income 8,357 3,030 5,983

Add: Share based compensation expense 659 3,010 4,313

Add: Amortization of intangible assets 123 598 614

14

Add: Amortization of intangible assets 123 598 614

Add: Impairment of goodwill, intangible assets and investments 55 - 1,032

Add: (Gain) loss on deemed disposals /disposals/revaluation of investments - (60) 241

Add: Amortization of excess value receivable arising from the restructuring of

commercial arrangements with Ant Financial - 35 66

Add: Expenses relating to the sale of shares by existing shareholders in initial public

offering - 195 36

Add: Equity-settled donation expense 1,269 - -

Add: Immediate recognition of unamortized upfront fees and professional fees upon

early repayment of bank borrowings- - 830

Non-GAAP net income 10,463 6,808 13,115

Free cash flow

Net cash provided by operating activities 14,922 5,865 19,408

Less: Purchase of property, equipment and intangible assets

(excluding land use rights and construction in progress)(1,187) (1,693) (1,222)

Add: Changes in loan receivables, net 3,428 4,766 4,738

Free cash flow 17,163 8,938 22,924