ibaba Intelligence - Strong Growth Driven by and Core

Jeff ZHANG, President of ibaba Cloud Intelligence

1 01 Undisputed Market 02 Redefining Cloud 03 Building Thriving Leader with Great Computing Ecosystem to Accelerate Potential Cloud Adoption

高速增长的业界第一 重新定义中国云计算 联合生态加速云化

2 Expanding Market Leadership 云计算市场份额持续稳步提升

Growing Faster Than Global Market Largest in Asia Pacific Largest in

(1) (2) (3) Public Cloud (IaaS) Public Cloud (IaaS) Public Cloud Service (IaaS+PaaS)

7.7% 9.1% 26.1% 28.2% 42% 42.4%

t t t

2018 2019 2018 2019 Dec Qtr 2019 Mar Qtr 2020

Notes: Charts and graphics created by ibaba Cloud Analytics based on the following sources: 1.IaaS: Infrastructure . Source: Gartner, 'Market Share: Enterprise Public Cloud Services, Worldwide 2019’ (2019). 2.Source: Gartner, 'Market Share: IT Services, Worldwide 2019’ (2019). 3.PaaS: . Source: IDC, 'Quarterly Public Cloud Services Tracker 2020Q1’ (2020). 3 Strengthening of Core Capabilities 云计算核心能力不断精进

The only China-based Cloud Service Provider included in Gartner's Magic Quadrant for 4 consecutive years (1)

Compute Network Security A Strong Performer NO.1 NO.1 NO.1 Container Service is positioned as a Strong ibaba Cloud Server Load Balancer No.1 WAF in Greater China No.1 in China (2019) (5) Performer in Forrester (2019) (2) (SLB) leads the world in growth (2020) (3) Region (2018) (4)

Notes: 1. Source: Gartner, 'Magic Quadrant for Cloud Infrastructure as a Service, Worldwide' (2017, 2018，2019, 2020). 2. Source: Forrester, ‘The Forrester New Wave™: Public Cloud Enterprise Container Platforms Q3 2019’ (2019). 3. Measured by YoY growth of revenue (2019Q1-2020Q1). Source: Gartner, 'Market Share: Enterprise Network Equipment by Market Segment, Worldwide 1Q20’ (2020). 4. WAF: Web Application Firewalls. Measured by market share. Source: Frost & Sullivan, 'Cloud-based WAF Market Ranking Statement' (2018). 5. Measured by market share. Source: IDC, ' Management Systems Tracker 2019 H2’ (2019). 4

5 Source: ibaba Cloud Business Analytics. Business Cloud ibaba Source: 2.

Number of paying customers for the last twelve months ended June 30, 2020 (deduplicated). Source: ibaba Cloud Customer Database. Customer Cloud ibaba Source: (deduplicated). 2020 30, June ended months twelve last the for customers paying of Number 1.

Notes：

2019 2018 2017 H1 CY20 H1

for the last twelve months ended Jun 30, 2020 30, Jun ended months twelve last the for

(1)

Paying customers, customers, Paying 45%

49%

3 Mn+ 3

53% 57% IaaS

t t

55% 51%

47% VAS 43%

Revenue Distribution of Value-added Services Value-added of Distribution Revenue

(2)

云计算付费客户规模超300万，产品使用深度持续增长

Engagement Engagement 3 Mn+ Paying Customers with Strong Strong with Customers Paying Mn+ 3 Growing Premium Customer Base with Increased ARPU 云计算高价值客户逐年增加，消费增速强劲

Percentage of A-share Companies on ibaba Cloud (1) ARPU of A-share Companies on ibaba Cloud (3)

CAGR t 57% t 60% 40%+

2018 (2) 2020 (2) 2018 2020

Notes: 1. The proportion of A-share companies with spending on ibaba Cloud compared to the total number of A-share companies (3,559 A-share companies in 2018 and 3,767 A-share companies in 2020 from Stock Exchange & ). 2. 12-month rolling number as of December 31, 2018 and June 30, 2020, respectively. Source: ibaba Cloud Business Analytics. 3. 12-month rolling sum as of June 30, 2018 and June 30, 2020, respectively. Source: ibaba Cloud Business Analytics. 6 Strong Focus on Regional Market 聚焦策略驱动海外市场强劲增长

200%+ 50%+ YoY Growth FY20 YoY Growth FY20

SEA IDC revenues (1) SEA-registered entities (2) t Focus on SEA while actively growing Success Stories global markets

Notes: 1. YoY growth of revenue for twelve months ended March 31, 2020. Source: ibaba Cloud Business Analytics. 2. YoY growth of number of SEA-registered entities for twelve months ended March 31, 2020. Source: ibaba Cloud Business Analytics. 7

8 Source: Gartner, ‘Forecast: Public Cloud Services, Worldwide, 2018-2024, 2Q20 Update’ (2020). Update’ 2Q20 2018-2024, Worldwide, Services, Cloud Public ‘Forecast: Gartner, Source: 3.

Source: Worldbank data (2019). (2019). data Worldbank Source: 2.

Source: Gartner, ‘Market Databook, 2Q20 Update’ (2020). (2020). Update’ 2Q20 Databook, ‘Market Gartner, Source: 1.

Charts, graphics and calculations produced by ibaba Cloud Analytics based on the following sources: following the on based Analytics Cloud ibaba by produced calculations and graphics Charts,

Notes:

IT spending IT spending IT

Spending Spending

(1) (1)

(1)

China GDP China US GDP US

US$402 Bn US$402 US$1,246 Bn US$1,246 US IT IT US IT China (2)

402 Bn 402

US$

14,343 Bn 14,343

1,246 Bn 1,246 US$

US$ 21,374 Bn 21,374 US$

t t

3.1 X 3.1

Public cloud Public Public cloud Public

(3) (3)

US$14 Bn Bn US$14 US$130 Bn US$130

1.5 X 1.5

3.4% 10.4%

IT Spending and GDP, China vs. US, 2019 US, vs. China GDP, and Spending IT Percentage of IT Spending on Public Cloud, 2019 Cloud, Public on Spending IT of Percentage

中国云计算市场仍旧处在初期阶段，发展潜力巨大

Stage with Enormous Potential Enormous with Stage Cloud Penetration in China at an Early Early an at China in Penetration Cloud

9 Values are presented as a percentage of total responses, N=189. Source: IDC, ‘Impact of COVID-19 on China's Economy and ICT Market’ (2020). Market’ ICT and Economy China's on COVID-19 of ‘Impact IDC, Source: N=189. responses, total of percentage a as presented are Values 2.

Source: Gartner, ‘Forecast: Public Cloud Services, Worldwide, 2018-2024, 2Q20 Update’ (2020). Update’ 2Q20 2018-2024, Worldwide, Services, Cloud Public ‘Forecast: Gartner, Source: 1.

Charts and graphics created by ibaba Cloud Analytics based on the following sources: following the on based Analytics Cloud ibaba by created graphics and Charts

Notes: Notes:

Software Platform Software

Cloud Computing Cloud

Network Devices Network Enterprise-grade Enterprise-grade

2022E 2021E 2020E 2019

Collaboration Collaboration Industry Application Industry

Data Centers Data Platform

Enterprise Enterprise Smart Phones Smart

Big Data Big

Security

Blockchain

IT Services IT

Solution

Robot

5G IoT AI

14 14.5 14.5 14.5 14.5

16.2

16.8 20.7

27.4

28.5

29.1 29.6 29.6 30.2

t t

US: 23% US: 74.3

China: 28% China:

NEW

3-year CAGR 3-year

Which ICT fields have seen the most positive impacts? impacts? positive most the seen have fields ICT Which

China US (2)

The pandemic has greatly changed how businesses operate and the technological landscape. landscape. technological the and operate businesses how changed greatly has pandemic The

Size of IaaS and PaaS Market PaaS and IaaS of Size

Impact of COVID-19 on Investment Technology on COVID-19 of Impact

(1)

中国市场促成了中国云计算的独特机会 China Market Presents Unique Opportunities Opportunities Unique Presents Market China 01 Undisputed Market 02 Redefining Cloud 03 Building Thriving Leader with Great Computing Ecosystem to Accelerate Potential Cloud Adoption

高速增长的业界第一 重新定义中国云计算 联合生态加速云化

10 Redefining in China 重新定义云计算市场空间

Ecosystem … Business Marketing Financial Smart Sales 3,000+ Solutions City Brain Systems Management Mobile Apps Management Devices Management AI/ML Mini Apps

Industry Solutions Public Services New Retail New Transportation …

Cloud Computing Digitalization Collaboration IoT Middle Office as Defined by Data Middle Office Business Middle Office Collaboration Middle Office DingTalk Teambition AIoT Platform Cloud-ification

Infrastructure Security Database Cloud-native DevOps CDN AI Cloud Elastic Computing Middleware Storage Network Big Data Engine …

• Machine • Data • Quantum • Fintech • Robot • T-head DAMO Academy Intelligence Processing Computing 11 Redefining Cloud Computing in China 重新定义云计算市场空间

Ecosystem … Business Marketing Financial Smart Sales 3,000+ Solutions City Brain Systems Management Retail Mobile Apps Management Devices Management AI/ML Mini Apps

Industry Solutions Internet Public Services New Retail New Finance Transportation Manufacturing …

Cloud Computing Digitalization Collaboration IoT Middle Office as Defined by Data Middle Office Business Middle Office Collaboration Middle Office DingTalk Teambition AIoT Platform Alibaba Cloud Cloud-ification

Infrastructure Security Database Cloud-native DevOps CDN Big Data AI Cloud Elastic Computing Middleware Storage Network Big Data Engine …

• Machine • Data • Quantum • Fintech • Robot • T-head DAMO Academy Intelligence Processing Computing 12 Full-stack, Proprietary Technology with World-leading Capabilities 全栈自研、世界领先

Infrastructure Security Database Cloud-native DevOps CDN Big Data AI Cloud Elastic Computing Middleware Storage Network Big Data Engine …

Cloud Infrastructure Services Cloud-native Services Hardware and Software Integration

Compute High-performance Network Security Database Big Data Chips X-Dragon Server Cloud Disk

1.6x 1 Mn 24 Mn 6 Bn 544 K 3.6 TB 78,563 20% PPS IPS Performance Single-instance ECS network Attacks Transactions Processed each Hanguang 800 Performance (2) high clock speed IOPS speed mitigated (1) per second (2) second performance improvement ECS instance

Notes： 1. On November 11, 2019. 2. Peak performance on November 11, 2019. 13 Redefining Cloud Computing in China 重新定义云计算市场空间

Ecosystem … Business Marketing Financial Smart Sales 3,000+ Solutions City Brain Systems Management Retail Mobile Apps Management Devices Management AI/ML Mini Apps

Industry Solutions Internet Public Services New Retail New Finance Transportation Manufacturing …

Cloud Computing Digitalization Collaboration IoT Middle Office as Defined by Data Middle Office Business Middle Office Collaboration Middle Office DingTalk Teambition AIoT Platform Alibaba Cloud Cloud-ification

Infrastructure Security Database Cloud-native DevOps CDN Big Data AI Cloud Elastic Computing Middleware Storage Network Big Data Engine …

• Machine • Data • Quantum • Fintech • Robot • T-head DAMO Academy Intelligence Processing Computing 14 Redefining How Data Flows: Data Middle Office 重新定义数据应用：数据中台

Digitalization Collaboration IoT Middle Office Data Middle Office Business Middle Office Collaboration Middle Office DingTalk Teambition AIoT Platform

One ID

Data Extraction Consumer Brand Tagging Store Tagging Break Down Efficient Use Implement Finer-grained Center Tagging System System System Data Silos of Computing Resources Operations

Data Public Intelligent Asset Data Data Management Center Brands Merchandise Manufacturing Logistics Channels Sales Marketing Services Development During Nov 11 2019 Promotional Period Vertical • 74x customer growth Data Sales Data Marketing Data Member Data Visitor • 118% of the GMV goal achieved

15 Redefining How We Work: Cloud+DingTalk 重新定义工作方式：云钉一体

Digitalization Collaboration IoT Middle Office Data Middle Office Business Middle Office Collaboration Middle Office DingTalk Teambition AIoT Platform

DingTalk-driven Office Collaboration

Digital Business Flows Mobilized Applications Industry-tailored Solutions Intelligent Analysis Chart

Instant Communication Meeting Calendar Collaboration Digital Workflow …

Enterprise DingTalk Industry-tailored DingTalk DingTalk-mobilized Platforms …

Data Fusion Business Integration

Superior Computing Capability and Elasticity Provided by ibaba Cloud

16

16

Superior Computing Capability and Elasticity Provided by ibaba Cloud ibaba by Provided Elasticity and Capability Computing Superior

Mobile Approvals Mobile Intelligent Conference Intelligent Calendar Events Calendar

Business Integration Business Fusion Data

average in Mar 2020 Mar in average

sessions each workday on on workday each sessions

DingTalk active classroom classroom active DingTalk

…

1

Mn+ Enterprise DingTalk Enterprise DingTalk-mobilized Platforms DingTalk-mobilized DingTalk Industry-tailored

Video Conferencing Video

Online Documentation Online t

Mar 2020 Mar

Instant Communication Instant Digital Workflow Digital Collaboration Calendar Meeting

…

on workdays in in workdays on users active

DingTalk’s average daily daily average DingTalk’s

100

Mn+

Intelligent Analysis Chart Analysis Intelligent Solutions Industry-tailored Applications Mobilized Flows Business Digital

DingTalk-driven Office Collaboration Office DingTalk-driven

AIoT Platform AIoT Teambition DingTalk ce ffi O Middle Collaboration ce ffi O Middle Business ce ffi O Middle Data

ce ffi O Middle

IoT Collaboration Digitalization

重新定义工作方式：云钉一体 Redefining How We Work: Cloud+DingTalk Work: We How Redefining Redefining How Things Connect: Alibaba IoT 重新定义链接方式：阿里巴巴物联网

Digitalization Collaboration IoT Middle Office Data Middle Office Business Middle Office Collaboration Middle Office DingTalk Teambition AIoT Platform

IoT Applications

Smart Cities Smart Lifestyle Smart Manufacturing Agricultural Water Conservation

ibaba Cloud Voice Controlled Smart Homes Devices IoT Platform Services 272 Mn

Device management t IoT end-devices can be

Datahub connected to Device Linkage Virtual Devices (1) Device IoT Rules Genie as of May 2020 Integration IoT Hub Engine SDK Real-time Monitoring Time Series Database Early Childhood Education Assistant Obtain Daily Updates

Security Authentication & Permission Policies Message Service

Note: 1. Source: IoT Analytics. 17 Redefining Cloud Computing in China 重新定义云计算市场空间

18 Building Best-in-class Vertical Solutions 持续打造领先的行业解决方案

Leading Industry Strong Performer Industry Rapid Growth Industry New Opportunities Industry Public Transportation & Services New Retail Logistics Media Services Education

Digital in Internet Finance & Manufacturing Automotive Resource Medical Fintech Industry Services Rural

Case Studies Vertical Solutions Large-scale Replicability 19 01 Undisputed Market 02 Redefining Cloud 03 Building Thriving Leader with Great Computing Ecosystem to Accelerate Potential Cloud Adoption

高速增长的业界第一 重新定义中国云计算 联合生态加速云化

20

Case Study: Online Education - Full Cloud Adoption 案例：助力在线教育客户全站上云

Internet

Intelligent Recommendation Data Lake TAL Education Group Cloud-based Gaming

By Industry Public Services Online Education New Retail • Largest cloud migration success story in the education sector New Finance • Millions of teachers and students concurrently participating in virtual classes (1) Others • 90% more efficient preparation of classroom materials

Collaborative Office Live Streaming Development & Testing By Use Case Operations & Maintenance Security Data Analytics & Operations Setting the bar for online education, and providing best Digital Operating System practices for customer success

Note: 1. Ongoing project. Data provided based on peak performance in 2020. 22 Case Study: Public Services - Digitalization for Higher Efficiency 案例：助力公共服务数字化转型，全面提效

Internet

Public Services Province Public Service

Municipal Services Cloud + DingTalk Middle Office & DingTalk Traffic Management By Industry Health Services 352 one-stop services New Retail • • traffic congestion ranking • Average collaboration processes No. 5 -> No. 57 (1) New Finance turnaround reduced from 1-2 Others months to 2 days (2019)

Collaborative Office Live Streaming Development & Testing By Use Case Operations & Maintenance Security Data Analytics & Operations Deployed in numerous cities and Deployed in over 30 cities provinces such as Shanghai, Hainan around the world Digital Operating System and Zhengzhou

Note: 1. Source: AMAP, ‘2016Q2 Traffic Analysis of China's Major Cities’ (2016), ‘2018Q2 Traffic Analysis of China's Major Cities’ (2018). 23 Case Study: Manufacturing - Intelligent Next Generation O&M Platform through Industrial IoT 案例：通过工业物联网打造新一代设备智能运维平台

Internet

Public Services New Retail SHOUGANG GROUP New Finance By Industry (1) Industrial IoT Platform Others

Industrial Internet • Reduce: Steel inspection and maintenance cost lowered by 20% Open Road Tolling • Improve: Personnel work efficiency increased by 20% Education & Research Cloud • Trust: Hardware operational stability improved by 10-20%

Collaborative Office Live Streaming Development & Testing By Use Case Operations & Maintenance Security Data Analytics & Operations Industrial internet IoT solutions already deployed Digital Operating System for 30+ customers

Note: 1. Data provided based on the project in 2019-2020. 24 The New Infrastructure of Digital Economy

数字经济的新型基础设施

25 27