Maggie Wu, Chief Financial Officer 1

Financial Perspective Maggie Wu, Chief Financial Officer 1. Report Card since Last Investor Day 2. Strong Core, Invest for Future 3. Valuation Framework

2 1. Report Card since Last Investor Day

3 FY18 Revenue Growth Guidance FY18 Actual Revenue Growth

(1) 45%-49% 58%

(1) 54% excluding the consolidation of Cainiao Network since Oct 2017

4 58% FY18 Revenue Growth 54% LTM Revenue Growth(1) 47% Outperformed All 36% 34% Technology Peers 24% 20%

(2) Notes: (1) Represents the last twelve months ended Mar 31, 2018 (except Baidu). 5 (2) Represents CY17 revenue growth prior to the restatement. Annual Active Consumers (mn)

Accelerated Annual Active +98mn 552 515 (1)

Consumers Growth Net Adds: +31mn 488 466 454 443 434 439 423

Note: Mar 31, 2016 Jun 30, 2016 Sep 30, 2016 Dec 31, 2016 Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Mar 31, 2018 (1) The number of annual active consumers on our China retail marketplaces for the twelve months ended on the respective dates. Represents user accounts that had one or more confirmed orders on the relevant platform during the previous twelve months, 6 regardless of whether or not the buyer and seller settle the transaction. Daily # of Taobao App Launches Average Spending per Average Daily # of (3) per Active User(1) Annual Active Consumer(2) Short-form Video Views Enhanced User Engagement ~RMB 1.9bn 8 8.7K

Notes: (1) For the month ended Aug 31, 2018. (2) In terms of GMV per annual active consumer on China retail marketplaces in FY18. 7 (3) Average daily viewership of short-form video from Apr to Jun 2018. FY18 YoY Growth

45% Expanding B2C Market Leadership 39%

Tmall Physical Goods GMV China B2C Market(1) Note: 8 (1) Calculating using the sum of the quarterly China B2C market size, according to Analysys. New Retail and Other Revenue(1)

Fast Growing 3.6x Revenue New Retail Business (RMBmn) 5,825 5,084 3,226 1,614 Notes: For the three months ended on the respective dates. (1) Refers to “Others” line under China commerce retail; new retail revenue mainly includes Hema, Tmall Import and Intime. We started Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Mar 31, 2018 to consolidate Intime in mid-May 2017; revenue from Hema was reclassified from Innovation initiatives and others to “Others” line under China commerce retail starting from fiscal year 2018. 9 Cloud Computing Revenue

YoY Growth % 96% 99% 104% 103%

Continuing to Expand Revenue (RMBmn) Cloud Market Leadership 4,385 3,599 2,975 2,431

Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Mar 31, 2018 Note: 10 For the three months ended on the respective dates. 40% of China’s Top 500 Companies 49% of China Listed Companies are on Alibaba Cloud(1) are on Alibaba Cloud(1)

High Quality Enterprise 40% 49% Customers of Alibaba Cloud 40% 31%

FY17 FY18 FY17 FY18

Note: 11 (1) Source: Alibaba Cloud as of Aug 2018. Average Daily Paying Subscribers

Digital Media and CAGR Entertainment: +180% Robust User Growth

FY16 FY17 FY18 12 Revenue Users & Consumers Cash Flow Core Commerce Cloud Computing

58% YoY FY18 Total Revenue Growth

Financial Highlights GMV (1) 617mn US$15.8bn 60% YoY 101% YoY Mobile MAUs(2) RMB4.8tn Non-GAAP Free Cash Flow Revenue Growth Revenue Growth (US$768bn(1) ) Notes: Unless otherwise indicated, all figures are for the twelve months ended Mar 31, 2018. 552mn (1) All translations of RMB into US$ were made at RMB6.2726 to US$1.00, the exchange rate on Mar 30, 2018 as set forth in the H. Transacted on China Retail 38% 10 statistical release of the Federal Reserve Board. (3) (2) For the month ended Mar 31, 2018; in a given month, the number of unique mobile devices that were used to visit or access Marketplaces Annual Active Consumers Adjusted EBITA YoY Growth certain of our mobile applications at least once during that month. 13 (3) For the twelve months ended Mar 31, 2018; the number of annual active consumers on our China retail marketplaces. 2. Strong Core, Invest for Future

14 70% New Consumers from 30mn Less Developed Areas(2) Age: 19~35 Strong Core 110mn+ Diversified Consumer Base New Consumers(1) & Rising Penetration into in the twelve months ended Jun 30, 2018 Less Developed Areas 45mn Age: 36~50

Notes: (1) New consumers refer to net addition of annual active consumers on our China retail marketplaces in the twelve months ended Jun 30, 2018 as compared to twelve months ended Jun 30, 2017. 15 (2) Represents third and lower tier cities. Average Annual Spending 19-25 Age Group 31-35 Age Group (1) per Annual Active Consumer Fastest Growth in Spending(2) Highest Spending(2) Strong Core ~RMB8.3K ~RMB8.7K Consumers

Spending More

FY17 FY18 Notes: (1) In terms of GMV per annual active consumer on China retail marketplaces in FY17 and FY18. 16 (2) For the twelve months ended Jun 30, 2018. ~RMB 12K

132 23 Strong Core The Longer Consumers ~RMB Are On the Platform, 3K 6 the Higher Their Spending 27

Consumer Cohort 1 Year 2 Years 3 Years 4 Years 5 Years

Avg. Annual No. of Orders(1) Avg. Annual No. of Categories Purchased(1) Avg. Annual Spending per Consumer(1) Note: 17 (1) For the twelve months ended Mar 31, 2018. 100mn+ Consumers (2) (1) 98%+ Retention Rate Strong Core with Annual Spending > RMB10,000 Sticky High Spending Consumers

Notes: (1) For the last twelve months ended Jun 30, 2018. (2) 98% of consumers with spending more than RMB10,000 for the last twelve months ended Jun 30, 2017 continue to spend more than 18 RMB10,000 for the last twelve months ended Jun 30, 2018. Every 100 88VIP Members Bring in New Users to the Following Services(1)

Ele.me (2) Entertaining Content Youku Taopiaopiao Strong Core Youku Xiami Ele.me Early Stage Membership Local Services Program Shows 38 27 Momentum Taopiaopiao(2) Tmall Shopping Discounts Supermarket 32

Tmall Import Selected Brands Notes: (1) As of Aug 31, 2018. 19 (2) Our affiliated business. Strong Core * User Base

634mn MAUs(1) 870mn AAU(2) 400mn+ MAUs(3) 400mn+ MAUs(4) 168mn AAC(5) 100mn+ AAC(6) Notes: *Represents our affiliated business. (1) Mobile MAUs on our China retail marketplaces for the month ended Jun 30, 2018. (2) During FY18, Alipay, together with its global JV partners, served approximately 870mn annual active users all * over the world. * (3) UCWeb MAUs is calculated as sum of 268mn China MAUs according to QuestMobile and 149mn international MAUs according to App Annie; as of Aug 2018. (4) QuestMobile as of Aug 2018. (5) Represents Ele.me's Annual Active Consumer for the last twelve months ended Jun 30, 2018. 20 (6) Aggregated Lazada and AliExpress Annual Active Consumer, for the twelve months ended Jun 30, 2018. China Market Global Market AAC 600mn+(1) AAC 100mn+(2)

Strong Core LONG TERM TARGET Cross-platform Users 2bn Cornerstone of CONSUMERS Alibaba Digital Economy * GLOBALLY

Notes: *Represents our affiliated business. (1) Latest estimated number of annual active consumers on our China retail marketplaces and local services for the twelve months. 21 (2) Aggregated Lazada and AliExpress annual active consumer, for the twelve months ended Jun 30, 2018. 50%+ TOP20 (1) China Listed Consumer & Retail Companies Global Strategic Partners Have Presence On 76% 70%+ Strong Core 90%+ Leading Growth Engine for Both China 24% Tmall Merchants and Global Brand Companies Retention(6) 11%

Notes: (1) Out of 400+ China listed consumer and retail companies. Source: Wind. (2) Revenue calendar YoY growth of the China listed consumers & retail companies whose products are sold on Tmall in both 2016 and 2017. 2017 Overall 2017 Same Brand 2017 Overall 2017 Same Brand (2) (3) (4) (5) (3) Tmall paid GMV fiscal YoY growth of the companies discussed in note (2) above. Revenue Growth Paid GMV Growth on TMALL Revenue Growth Paid GMV Growth on TMALL (4) Combined revenue calendar YoY growth of the top 20 Tmall global strategic partners that are publicly listed. Source: Bloomberg. (5) Tmall paid GMV fiscal YoY growth for the companies discussed in note (4) above. 22 (6) Represents the retention rate of Tmall merchants who purchased pay for performance and display ads in FY18 vs FY17. Enable Merchants to Work @ Alibaba – Wide Spectrum of Services and Products

UniUni Strategy Strategy

Pay for Performance Livestream * Tmall Fans

Branded Ads Display Ads Affiliates Xiaomi 短视频鲁班短视频

Note: 2003 2003 2007 2008 2009 2010 2011 2013 2014 2015 2016 2017 2018 23 *Our affiliated business. Comprehensive Merchants Solutions Across All Functions

Payment & Branding / Marketing Marketplace Store-front Procurement Logistics / Warehouse IT Infrastructure Customer Service Data Analytics Financing

Pay for Performance Tmall Fans Xiaomi *

Affiliates Display Ads 鲁班短视频

Uni Strategy Branded Ads Livestream

Note: 24 *Our affiliated business. Value Creation Throughout Merchants' P&L

Costs of Inventory Typical Retailer’s P&L Items Revenue Revenue Distribution Costs Branding & Marketing Expenses RD & IT Expenses Other Operating Expenses Financing Costs & Logistics

Pay for Performance Affiliates Xiaomi * Infrastructure 短视频 SaaS * Pay-for- Performance Alibaba

Uni Strategy Offerings Branded Ads

Branded Ads Affiliates Display Ads Xiaomi

Tmall Fans Display Ads Livestream 阿里旺旺鲁班

Note: 25 *Our affiliated business. Advances in Data Technology Unleash New Value for Consumers and Merchants

26 Old Version New Version Modules Recommendation Feeds • Targeting different groups of consumers Strong Core Mobile Taobao: New User Interface

27 Old Version New Version Modules Recommendation Feeds • Targeting different groups of • Move recommendation consumers Strong Core section to the second page • Change small vertical icons Mobile Taobao: Recommendation Feeds to big product photos • Shown at the end of the page • Utilize different formats, e.g. New User Interface short-form video, livestream …

28 RELEVANCY Personalized Recommendation Feeds

Improving Recommendation Strong Core Personalized Technology Pay-for-Performance Continuous Improvements on Search

Recommendation Technology Personalized +30% Purchase Conversion Modules Rate Improvement

Personalized Search Aug 2018 vs Aug 2017

2010 2013 2016 2018 29 Mobile Taobao Daily Product Page Views

Recommendation Strong Core Search

Fundemental Search Traffic Mix Shift Recommendation

Aug 2015 Aug 2018 30 View Click Bookmark Add to Cart Strong Core Close-loop Measurable Recommendation Feeds Repurchase Purchase Yet to Be Monetized Visible Actionable Share Feedback Logistics Payment

31 Invest for Future

32 Free Cash Flow(1) (US$bn) Strong Core Generates Robust

Cash Flow 15.8 10.0 8.0

Note: (1) Represents net cash provided by operating activities as presented in our consolidated cash flow statement less purchases of property and equipment, intangible assets and licensed copyrights (excluding acquisition of land use FY16 FY17 FY18 rights and construction in progress) and others. FY16, FY17 and FY18 free cash flow are translated from RMB into 33 US$ at RMB6.4480, RMB6.8832 and RMB6.2726 to US$1.00, respectively. Not Drawn to Scale

RMB International: Lazada Local Services: (2) Ele.me New Retail(3) 37.0bn Logistics: Cainiao 1Q FY19 Adjusted EBITA by Segments Marketplace- RMB based Core 32.8bn Digital Media & Commerce(1) Entertainment Organic Investment Core Commerce Innovation Adjusted EBITA Adjusted EBITA Initiatives & Cloud for the Future Others and Computing RMB Unallocated 26.5bn Adjusted EBITA

Notes: (1) Marketplace-based core commerce is net of investments in user and user experience. (2) Two-month contribution. 34 (3) New Retail primarily includes Hema, Tmall Import and Intime. STRATEGIC INVESTMENTS Show Early Results

35 More Selection More Convenience Seamless Online Offline Scalable Better Quality Connection Proprietary Technology

New Retail: Hema Superior User Experience

(2) Hundreds of 3R(1) Product Offerings 3 km x 30-Minute Delivery Online Orders % Unmanned (3) Notes: Farm to Table 60% Check-out System (1) 3R represents Ready to Cook, Ready to Heat and Ready to Eat. (2) Delivery within 30 minutes for orders within a 3 km radius of the nearest store. 36 (3) Data of Hema stores which operated over 1.5 years as of Jul 31, 2018. New Retail: Grocery Retail Traditional Grocery Retail Create New + Transform Old

Business Model Primarily Self-operated Stores Self-operated (Create New) + Enable Third-party (Transform Old)

New Retail: Hema Monetization Model Direct Sales Direct Sales + Commission + Technology Service Fee + … Advanced Model # of Stores Closing Opening Annual Revenue per sqm ~10k(1) 50k+(2) (RMB)

Notes: (3) (1) Annualized revenue per square meter of YTD revenue of China and Hong Kong listed major grocery retailers. Profitability (2) Annualized revenue per square meter of YTD revenue of Hema stores which started operation before Jan 2017. 37 (3) For illustrative purposes only. Massive Consumer Base High Utilization of Logistics Network One-Stop Solution for Local Service Merchants with Commercial Intention Utilization *

Delivery Restaurant Online Marketing Local Services *

* * *

Notes: Financial Services Consumer Acquisition Offline Network *Represents our affiliated business. 9am 12pm 3pm 6pm 9pm Time (1) Annual active consumers on our China retail marketplaces for (1) (2) the twelve months ended Jun 30, 2018. 576mn AAC 870mn AAU (2) During FY18, Alipay, together with its global JV partners, served 38 approximately 870mn annual active users all over the world. Cainiao Network Delivery Speed Improvement China Daily Packages Average Daily Package Volume 812mn 110mn Cainiao Network: 9.0 Days 69mn Our Scale and # of Daily Packages 69mn 22mn Enabled by Cainiao(1) User Experience 3.1x 152mn Improvement 2.8 Days 2013 2014 2015 2016 2017 2014 2017 2017 # of Singles Day Logistics Orders (mn) First 100mn Orders Fulfilled (Days) Note: (1) Represents average daily packages processed by Cainiao 39 Network in 2017. Extensive Global Coverage International Commerce Retail 100mn+ International: Consumers(1) (3)

RUSSIA UK USA FRANCE BRAZIL SPAIN (3) Our Global Footprint INDIA PAKISTAN 79% INDONESIA YoY Revenue Growth(2)

INDONESIA MALAYSIA SINGAPORE THAILAND PHILIPPINES VIETNAM

Notes: (1) Annual active consumers of Lazada and AliExpress for the twelve months ended Jun 30, 2018. (2) International commerce retail revenue YoY growth rate for the twelve months ended Jun 30, 2018. 40 (3) Our affiliated business. Invest for Future Growth

SEEDS TRACTION CASH FLOW ▪ Internet of Things ▪ Tmall Global New Retail ▪ AMap ▪ Xianyu (Secondhand) ▪ DingTalk ▪ Rural Taobao ▪ Tmall Genie ▪ Lingshoutong

DIGITAL MEDIA & COMMERCE CLOUD COMPUTING INNOVATION INITIATIVES COMMERCE ENTERTAINMENT CORE COMMERCE 41 3. Valuation Framework

42 Valuation Framework

DIGITAL MEDIA & INNOVATION INITIATIVES CORE COMMERCE CLOUD COMPUTING ENTERTAINMENT & OTHERS Strategic Investment

…

43 Valuation Framework CORE COMMERCE DIGITAL MEDIA & INNOVATION INITIATIVES CLOUD COMPUTING (14) Notes: MARKETPLACE-BASED CORE COMMERCE INTERNATIONAL LOCAL SERVICES NEW RETAIL(6) LOGISTICS ENTERTAINMENT & OTHERS Strategic Investment Unless otherwise stated, FY18 financials are translated from RMB into US$ at RMB6.2726 to US$1.00. (1) Annual active consumers on our China retail marketplaces for the twelve months ended Jun 30, 2018. (2) Marketplace-based core commerce is net of investments in user and user experience. FY18 adjusted EBITA is translated from RMB into US$ at RMB6.83 to US$1.00. (3) Annual active consumers of Lazada and AliExpress in the last twelve months ended Jun 30, 2018. (4) Represents Ele.me's annual active consumers for the twelve months ended Jun 30, 2018. 100mn+ VALUATION64 Hema Stores COMPARISON PEERS 400mn+ 437mn 5mn (5) Ele.me was consolidated in May 2018. 2-month revenue is translated 168mn 69mn Daily (1) Lazada & AliExpress RMB50k+ Annual (10) from RMB into US$ at RMB6.6171 to US$1.00. 576mn AAC (4) (8) >1mn Paying Customers Youku + UCWeb AMap Tmall Genie (7) (6) New Retail primarily includes Hema, Tmall Import and Intime. (3) AAC Revenue per sqm Packages (11) (12) (13) (7) Hema has 64 stores as of Jul 31, 2018; annualized revenue per square AAC MAUs MAUs Devices meter of YTD revenue of Hema stores which started operation before Jan 2017 is RMB50k+. US$mn 2-month US$mn 1Q FY19 US$mn US$mn US$mn US$mn (8) Represents average daily packages processed by Cainiao Network in 2017. FY18 Adjusted EBITA(2) 17,991 Revenue(5) 395 (9) (9) Cainiao Network was consolidated in Dec 2017 quarter. Jun 2018 Revenue 503 FY18 Revenue 2,135 FY18 Revenue 3,119 FY18 Revenue 524 quarter revenue is translated from RMB into US$ at RMB6.6171 to US$1.00. (10) As of Jun 2017. VALUATION COMPARISON PEERS … (11) UCWeb MAUs is calculated as sum of 268mn China MAUs according to QuestMobile and 149mn international MAUs according to App Annie; as of Aug 2018, (12) Source: QuestMobile as of Aug 2018. (13) Tmall Genie achieved sales of 5 million units since the official launch in 2017. Valuation: US$80bn+ (14) For strategic investments in public companies, valuation calculated by market values of Alibaba's stake as of Sep 14, 2018; for strategic investments in private companies, valuation based on their fair value as 44 of Aug 31, 2018. THE PRESENT: MARKETPLACE-BASED CORE COMMERCE THE FUTURE STRATEGIC INVESTMENTS

CORE COMMERCE UPSIDE

(1) FY18 ADJUSTED EBITA INTERNATIONAL NEW RETAIL US$80bn+ US$18.0bn + LOCAL SERVICES LOGISTICS + (RMB122.9bn) CLOUD COMPUTING

® DIGITAL MEDIA & ENTERTAINMENT

Note: (1) Marketplace-based core commerce is net of investments in user and user experience. INNOVATION INITIATIVES & OTHERS FY18 adjusted EBITA is translated from RMB 45 into US$ at RMB6.83 to US$1.00. THANK YOU