EMERGING COMPANIESCOMPANIES SUMMIT EMERGING SUMMIT CEO IQIYI.COM, INC. CEO IQIYI.COM, GONG Yu EMERGING COMPANIES SUMMIT Online Online Video Advertising Taking from Share 100% Source: Source: 20% 40% 60% 80% (RMB (RMB Online Video Revenue as %a of TV AdRevenue 0% iResearch Online Video Advertisement Market Size iResearch bn 2009A ) 2009A 1.8 2.6% , DCCI , , June2011 , 2010A 2010A 3.1 4.1% 2011E 5.6 2011E 6.6% 2012E 9.1 2012E 9.5% 2013E 12.8 12.0% 2013E Source: DCCI (RMB Source: (RMB (RMB bn 2009A ) 67.6 iResearch bn TV Ads:Huge Market with Slower Growth ) % of Time Spent vs.% of AdSpend in China (2010) 31.0% , DCCI, , TV 2010A Online Video Advertising 75.9 Zenithoptimedia 44.1% , Synovate 2011E 85.2 Traditional , CNNIC , 2012E 95.4 Online Online video 6.7% 1.8% Revenue share Time share 2013E 106.4 TV EMERGING COMPANIES SUMMIT Professionally Professionally produced short User User generated content Performances Performances video contents of online video video （ UGC （ PPC ） ） Professionally Professionally produced long Self - produced content video （ PPC （ PPC ） ） EMERGING COMPANIES SUMMIT Content Content strategy releases theatresin tiles movie Over 2000 Movie channel High channel Documentaries TV for newdramas Over 30,000 episodes, simultaneousairing with channel TV drama - quality documentaries globally ， covering covering 98% of new ： Top TV/movie latest, online portal with highest major labels major fromMVs 10,000licensed channel Music - quality content Self channel Entertainment searched searched titles on Covers 90% over of domestic animation.Top channel Animation - produced high Rao including but not tolimited Over 20,000 episodes shows, of variety channel show Variety most most comprehensive and (You arethe one), Happy Boys - Baidu quality entertainmentNews Fei Cheng Wu EMERGING COMPANIES SUMMIT We Foundation Layingthe Are Sustainable Growth for Infrastructure Experience Content CDN APPs P2P Terminals: Transmission Value Content purchase Content creation User experience - added service Browser Browser + APPs : CDN + P2P EMERGING COMPANIES SUMMIT   Strong Infrastructure and Distribution Central CDNCore of nodes well as improving a small part of the user experience user the of part small a wellas improving Also offersP2Pas technology,cost bandwidth reducing traffic)internet China’sgross of (~5% 1,500G than more capacitya utilizing centers, data with~120 provinces30 in operators ~30 Covers IDC s (Internet Data Centers(InternetData nodes of CDN of nodes Strong Infrastructure Foundation InfrastructureStrong IQIYI has rapidly expanded beyond the PC to provide superior user experience superior providePC to beyondthe expanded has rapidly ) across multiple connected media devices and formatsand devicesmedia connected across multiple   active users) active ( devices on users activedaily 1mm with users installed Has 10mm manufacturers ~50 with cooperation through and tablets phones mobile of typesdifferent 250 than more Supports iPad Apple Galaxy TabGalaxy Samsung Support for Multiple Platforms Multiple forSupport iPad PC alone has 2mm installed and 200k daily200k and installed 2mm has alone TV Platforms Lepad Lenovo iPhone Apple