Financial and Investment Perspectives Maggie WU, CFO and Head of Strategic Investments,

1 01 Financial 02 Value to 03 Investing for 04 Valuation Review Customers the Future 01 Financial 02 Value to 03 Investing for 04 Valuation Review Customers the Future Unrivalled User Scale & Reach Alibaba Annual Active Consumers

1,001 Mn

Overseas 140 Mn+ 194 1,001 Mn AAC(3) 860 Mn

130

807 Mn AAC(2)

730 807

Notes: 742 Mn 1. AAC on China marketplaces (1) for the last twelve months (“LTM”) AAC ended June 2020. 4 2. Alibaba Group’s AAC in China for Jun 2019 Jun 2020 LTM ended June 2020. 3. Global AAC of Alibaba Group for LTM ended June 2020. Robust Revenue Growth

LTM YoY Growth(1) 34% 33% 101% 60% 51%

Revenue (RMB Bn) 549

470 34% Total Revenue LTM YoY Growth Rate 100 45 25

Notes: 1. For the last twelve months ended June 2020. New Retail and 2. Represented by “Others” revenue under China Total Revenue Core Commerce 5 commerce retail business which comprises Direct Sales (2) mainly Freshippo, Supermarket, direct import and Intime. Strong Profit and Cash Flow Generation

Total Adjusted EBITA (RMB Bn)(1) Total Non-GAAP Free Cash Flow (RMB Bn) (1)

148 141 29% 35% 115 104

LTM Ended Jun 2019 Jun 2020 LTM Ended Jun 2019 Jun 2020

Note: 1. Please refer to our annual report on 6 Form 20-F for the definition of non- GAAP measures. Robust Growth Outperforming Global Peers

YoY Revenue Growth for LTM Ended June 2020 YoY Profit Growth(1) for LTM Ended June 2020

37.8%(2) 33.5% 35.2% 33.5% 28.2%

27.7% 25.4%

20.1%

13.6% 12.0% 12.8% 9.0%

Notes: 1. The profit growth is calculated based on Non- GAAP for Alibaba and , and GAAP net income for Facebook, , -9.2% and . The measures are not directly comparable and are for illustrative purpose only. 2. Facebook net profit would have grown 7% YoY 7 during LTM ended June 2020, if excluding US$5 Bn legal expenses recognized in the LTM ended June 2019. 01 Financial 02 Value to 03 Investing for 04 Valuation Review Customers the Future 02 Value to Customers 1. To Consumers 2. To Businesses Helping to Drive China Consumption Growth

CY 2015 LTM Ended June 2020

10%(3) 18%(4) RMB7.3 Tn (2) RMB30 Tn RMB39 Tn(2)

Notes: 1. Alibaba Digital Economy GMV mainly included GMV transacted through our China retail marketplaces, as well as GMV transacted through our international retail marketplaces and local consumer services. 2. Source: National Bureau of Statistics of China Alibaba Digital Economy GMV (“NBS”), Including online and offline physical (1) Alibaba Share of Retail Sales in China goods and offline virtual goods. for LTM Ended June 2020 3. Alibaba China retail marketplaces GMV divided by China retail sales in 2015, according to NBS. 4. Alibaba Digital Economy GMV (excl. international retail and ) divided 10 by China retail sales for LTM ended June 2020, according to NBS. Broad Penetration of Chinese Consumers

Chinese Consumers Alibaba China Retail Marketplaces AAC Penetration(4) 1.4 Bn (1) Total Population ~90% 1.2 Bn Developed areas Addressable (2) Consumers

742 Mn (3) AAC ~45%

Notes: Less-developed areas 1. Source: NBS, 2019. 2. Estimated based on NBS figure, excluding population with age <10 and >80. 11 3. AAC on China retail marketplaces for LTM ended June 2020. 4. We estimated our penetration rate based on 1.4 Bn total population, for LTM ended June 2020. Wide Coverage, High Retention and Deep Wallet Share

Average Consumer High-Spending Consumers Moderate and Low-Spending (1) Spending Consumers (2) (2) > RMB7,000 (US$1,000) < RMB7,000 (US$1,000)

Notes: Mn 1. Average consumer annual spending on 190 Mn 550 China retail marketplaces. 2. High-spending consumers consist of consumers who spent more than RMB7,000 ~RMB9,000 on our China retail marketplaces during LTM ended June 2020. According to the Income Survey in June 2020 conducted by Beijing Normal University, there are 230 million people in China with more than RMB36,000 in annual disposable income. Using an 98% online retail penetration rate of 20-25% in 67% 96% 2019, based on NBS data, we estimate that (3) (4) (5) this group of people would spend more than Retention Retention Retention RMB7,000 per year online. 3. Consumers who spent more than RMB 7,000

Spending of Average Consumers Would Grow To ~ RMB10 K in Five Years

93 19 RMB ~10K

30 7 RMB ~2.5K

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

Avg. Annual No. of Orders Avg. Annual No. of Categories Purchased Avg. Annual Spending Per Consumer 13 Alibaba Digital Economy Synergy Ensures Increased User Engagement

Consumers’ Active Days per Month Stickier

Members 10 days 27days

9x 3x

More Spending More Categories (2) (2) Users on One Platform(1) Users on Five Platforms(1) than Overall User than Overall User

14

Notes: 1. For the month of June 2020. 2. For LTM ended June 2020. 02 Value to Customers 1. To Consumers 2. To Businesses Value Creation - Merchants’ P&L Table 1-1

Illustrative P&L

Revenue 100

Costs of Inventory (55) & Logistics ~3.9 Mn Paying Merchants on China retail marketplaces(1) Distribution Costs (20)

Branding & Marketing (10) 3 Mn+ Expenses Paying Enterprises(1)

RD & IT Expenses (2) 60% Notes: Other Operating (2) 1. Number of paying (7) 短视频 Companies Listed in China merchants & enterprises for Expenses the LTM ended June 2020. Enabled by our 2. Includes companies listed (3) on the Stock Multiple Digital Solutions Exchange, and ChiNext that Financing Costs (2) used more than one of the digital solutions we offer as of June 2020. 3. Not a consolidated 16 business of Alibaba Group. Profit Before Tax 4 Expanded Value Proposition Drives Monetization Broader Value Proposition

Sales & Consumer Our Take Distribution Acquisition Channel Management 4.5%(2) Digital Marketing 0.5% Others Product (1) Consumer 3.3% Branding Development Retention 2.5%(1) (1) 4.0% CMR+ CMR+ CMR+ Commission Commission Commission Logistics & Supply Chain Cloud Intelligence + Financial Services Management Data

Jun Qtr 2014 Jun Qtr 2017 Jun Qtr 2020 Alibaba Business Operating System (ABOS)

Notes: 1. Take rate for customer management revenue (“CMR”) and commission is the sum of CMR and commission divided by China retail marketplace GMV. Merchant’s Sales - GMV 17 2. Overall take rate for June Quarter 2020 of 4.5% is the sum of CMR, commission, Cainiao domestic revenue and local consumer services revenue, divided by Alibaba Digital Economy GMV (excl. GMV from New Retail, international retail and entertainment). Multi-Engine Growth Driver

Revenue in FY2015 Revenue for LTM Ended June 2020

LTM Revenue Jun 30, 2020

47% 77% (1) CMR + Commission(1) CMR + Commission

Note: 1. CMR + Commission in China retail commerce as % of total revenue. 18 Multi-Engine Growth Driver

Revenue for LTM Ended June 2020 CMR Mix

Innovation Initiatives and Others 1%

Digital Media & Entertainment 5%

Cloud Computing 8% Others 2% ～20% New Formats (1) Wholesale 4%

International Retail 5% Core 47% 100% (1) Commerce CMR + Commission ~80% Traditional Formats (1) Local Consumer Services 5%

Cainiao 5% Notes: 1. The new formats in CMR mainly include recommendation feeds, Live and Tmall Farm, which are in addition to our traditional formats, such as search monetization, display marketing services and Taobaoke program. 2. Represented by “Others” revenue FY2018 Jun Qtr 2020 under China commerce retail (2) business which comprises mainly Freshippo, Tmall Supermarket, New Retail and Direct Sales 18% 19 direct import and Intime. Multi-Engine Growth Driver

Revenue for LTM Ended June 2020 New Formats

Innovation Initiatives and Others 1%

Digital Media & Entertainment 5% Super Recommendation Cloud Computing 8% 品牌新享 Others 2% New Brand and Product Promotion Wholesale 4%

Taobao Live International Retail 5% Core 47% 47% Commerce CMR + Commission BABA Farm Local Consumer Services 5% Customer Management Revenue(2) Juhuasuan Subsidy Program Cainiao 5% Notes: 1. Represented by “Others” revenue under China commerce retail business which comprises mainly Freshippo, Tmall Supermarket, direct import and Intime. 2. Going forward, we will combine Tmall Selected commission into the CMR revenue line. (1) New Retail and Direct Sales 18% … 20 Investing for 03 2. M&A and Investments the Future 1. Invest in Organic Growth Healthy Growth of Core Business and Narrowing Losses from Developing Business

LTM Ended June 2019 LTM Ended June 2020

RMB201 Bn 18% YoY RMB25 Bn RMB176 Bn RMB171 Bn RMB28 Bn 22% YoY RMB148 Bn RMB27 Bn RMB144 Bn 29% YoY RMB29 Bn RMB115 Bn

Marketplace-based Loss from Loss from Marketplace-based Loss from Loss from Core Commerce Core Commerce (1) (1) Adjusted EBITA 1. Local Consumer Services Core Commerce A. Cloud Computing Adjusted EBITA 1. Local Consumer Services Core Commerce A. Cloud Computing 2. International: Lazada B. Digital Media (1) 2. International: Lazada B. Digital Media Adjusted EBITA Adjusted EBITA Adjusted EBITA Adjusted EBITA (1) 3. New Retail & Direct Import and Entertainment 3. New Retail & Direct Import and Entertainment 4. Logistics: Cainiao C. Innovation Initiatives 4. Logistics: Cainiao C. Innovation Initiatives & Others & Others D. Unallocated D. Unallocated

22 Note: 1. Please refer to our annual report on Form 20-F for the definition of non- GAAP measures. Robust Progress of Developing Businesses

Business

65% 51% 80 Mn+ 290 Mn 60% 52%

Online GMV Contribution(1) Revenue Growth(2) Annual Active Consumers(3) Annual Active Consumers of Revenue Growth(2) Paying Subscriber Growth(5) Local Services(4)

Key Metrics

32% 110%+ 100%+ 2.5 Mn 3 Mn+ 30%+

Same Store Sales(6) Package Volume Growth of Order Growth(8) Annual Active Merchants(9) Paying Consumers(10) Narrowing Losses(2)(11) Cainiao Post and Guoguo (7)

Notes: 1. Online GMV as of total GMV in June 2020 for 130 self-operated stores which opened before April 2019. 2. YoY growth for the LTM ended June 2020. 3. For the LTM ended July 2020. 4. Deduped between Ele.me, Xingxuan, Koubei, Taopiaopiao, Fliggy and Amap for the twelve months ended June 2020. 23 5. YoY growth in number of average daily paying subscribers from June 2019 to June 2020. 6. For 130 self-operated stores which opened before April 2019, from Q1 FY20 to Q1 FY21. 7. YoY growth of package volume of Cainiao Post and Cainiao Guoguo for the month ended June 2020. 8. YoY growth Q1 FY20 to Q1 FY21. 9. Deduped between Ele.me, Xingxuan and Koubei for the twelve months ended June 2020. 10. Number of paying customers for the LTM ended June 2020. 11. YoY decrease in DME segment adjusted EBITA loss for the LTM ended June 2020. Track Record of Business Innovation

No.1 Online Wholesale No.1 Digital Payment Provider No.1 Online B2C Marketplace(4) No.1 Online B2C Export Leading Online Offline Marketplaces(1) and Leading Digital Marketplace(6) Integrated New Retail Platform in China(3) Marketplace

1999 2003 2004 2007 2008 2009 2010 2013 2014 2015 2016 2017 2019

No.1 Online Retail Leading Online Advertising No.1 Cloud Provider in Asia(5) Leading Digital No.1 Office Collaboration (2) No.1 IoT Appliances Network Marketplace Platform Logistics Platform Services(7) Ecosystem(9)

Notes: 1. According to Analysys, 2019. 2. In terms of GMV, 2020. No.1 B2B FMCG Online 3. In terms of total payment volume (TPV) 2020, not a (8) consolidated business of Alibaba Group. Marketplace 4. According to Analysys, 2020. 24 5. According to Gartner, 2020. 6. According to Analysys, 2019. 7. In terms of DAU, 2020. 8. According to Kantar and New Distribution, 2019. 9. According to AVC, 2020. Innovation is in our DNA

Extensive Merchant Analytic Tools Membership Programs Marketing Program Matrix Search Ad System 直通⻋ ⽣意参谋 省钱⽉卡 Tmall Flagship Ad Alliance System Store 2.0 New Businesses New Businesses Recommendation Feed Ad 超级推荐

The most extensive global B2C 30-min Delivery Experience Post-post-pay信⽤住 LST POS - Data-driven Operating marketplace with strong infrastructure Daily Fresh Series Offering"3R" System for Mom-and-pop Shops Digital Visa to connect global buyers and sellers

(1) First Online Escrow Wealth Management Product with Minimum Consumer and SME Credit with No Payment Platform Investment Threshold at RMB1 Collateral Requirement

Cainiao Guoguo：Largest Crowdsourced Package Delivery Platform Cainiao Post：China's Largest Last-mile Network

World-leading Capabilities in Cloud Infrastructure Services, Full-stack Proprietary Technology Dingtalk-driven Office Collaboration Cloud-native Services and Hardware and Software Integration

IoT Audio Setting to Connect IoT Products Online AIoT + Content Solutions to Expand IoT Scenarios and Create More Values for Each Connection

… …

25 Note: 1. Not a consolidated business of Alibaba Group. Invest for Future Growth

Profitability

Traction

IoT Trade Assurance Seeds

Innovation Initiatives DME Cloud Computing Core Commerce

Soil = Technology and Consumer Insights 26 Growing Into Big Trees...

Expecting to Turn Profitable Expecting Operating Cash Flow to within FY2021 Turn Positive in FY2021 27 Investing for 03 2. M&A and Investments the Future 1. Invest in Organic Growth Rationale of our M&A and Investments

Increase Investments in Supplement Core Businesses Tap into New Sectors Strategic Businesses

New User Acquisition User Experience Enhancement Business Digitalization

(1) Electric Vehicle

Red

Real Estate

Music

29 Note: 1. In September 2019, the Company received a 33% equity interest in and the profit sharing arrangement with Ant Group was terminated. Consistent Emphasis on Synergies

Comprehensive Home Operational Efficiency Digitalized Operation Decorating & Furnishing New Retail Initiative Optimization Solution

15% 3.5 Mn+ DAU 10% 6,000+

Online orders generated through Online contribution of Newly launched decorating and Tmall supermarket warehouse cost (1) cooperation with Juhuasuan in a total sales furnishing platform (Tangping) to reduction after integration (3) (4) digitalize the value chain from with Cainiao 5-day promotion period (2) end to end

Notes: 30 1. During the period from April 2020 to June 2020. 2. For the month of March 2020. 3. Since April 2020. 4. From August 27, 2020 to August 31, 2020. 01 Financial 02 Value to 03 Investing for 04 Valuation Review Customers the Future Valuation Framework

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

、

32 Valuation Framework

CORE COMMERCE

MARKETPLACE-BASED CORE COMMERCE LAZADA LOCAL SERVICES NEW RETAIL LOGISTICS IMPORTS

METRICS

No.1 Online Retail Marketplace(1) Leading International Leading Local Consumer Leading New Retail Leading Digital No.1 Online Cross No.1 Online Wholesale Marketplaces(2) Retail Marketplace Service Platform Marketplace Logistics Platform Border Marketplace(3) No.1 Online B2C Export Marketplace(3) 32% 40 Bn+ Notes: 80 Mn+ 100 Mn+ 290 Mn (7) (9) All translations of RMB into US$ in this SSSG Digitalized Packages 40%+ (11) presentation were made at RMB 7.0651 to RMB201 Bn (US$29 Bn) AAC (4) MAU(5) AAC(6) YoY Growth in GMV US$1.00. 1. In terms of GMV, 2020. 65% 2. According to Analysys, 2019. (8) 4 Mn+ 3. According to Analysys, 2020. LTM Adjusted EBITA Online % of GMV 4. For LTM ended July 2020. Daily Cross Border 5. For the month ended June 2020. Packages (10) 6. Deduped between Ele.me, Xingxuan, Koubei, Taopiaopiao, Fliggy and Amap for the twelve months ended June 2020. VALUATION COMPARISON PEERS (12) 7. Same store sales growth fo 130 self- operated stores which opened before April 2019, from Q1 FY20 to Q1 FY21. 8. Online GMV contribution in June 2020 for 130 self-operated stores which opened before April 2019. 9. Number of digitalized packages processed by Cainiao for the twelve months ended June 2020. EV/EBITDA 35-40x, 2021 P/E 30-50x, 2022 Leading logistics data 10. Daily package volume for the month P/E 35-40x, 2021 with ended June 2020. P/GMV 1.5-2.5x, 2021 P/S 5-10x, 2022 P/GMV 1-1.5x, 2021 11. YoY growth rate of GMV (exclude unpaid no comparable peers P/E 35-45x, 2021 orders) of Tmall Global for the quarter P/S 5-10x, 2021 P/S 0.7-1x, 2021 ended June 2020. / 33 12. We collected peers’ valuation EV/EBITDA 25-35x 2022 methodology based on broker reports from CS, GS, MS, JPM, UBS, BofA, and Citi published in July to September 2020. Valuation Framework

DIGITAL MEDIA & INNOVATION INVESTMENT IN CORE COMMERCE CLOUD COMPUTING STRATEGIC INVESTMENTS ENTERTAINMENT INITIATIVES & OTHERS TECHFIN

REVENUE AND METRICS FOR THE LTM ENDED JUNE 30, 2020

RMB470 Bn RMB176 Bn ～90 Mn RMB45 Bn 60% (4) Revenue Adjusted EBITA Revenue YoY 52% Amap DAU Paying Subscribers YoY(3) RMB7.3 Tn 742 Mn Expected To Turn 100 Mn+ (5) Alibaba Digital Economy GMV (1) AAC (2) Profitable Within FY21 DingTalk DAU

VALUATION COMPARISON PEERS (6)

SoTP

E-commerce AWS (7) EV/EBITDA 35-40x, 2021 SoTP/DCF DCF SoTP/DCF P/S 10-15x, 2021 SoTP/DCF DCF VALUATION VALUATION: US$45 Bn P/GMV 1.5-2.5x, 2021 EV/EBITDA 35-40x, 2021

Notes: 5. DingTalk’s average daily on workdays in June 2020. 1. Alibaba Digital Economy GMV mainly included GMV transacted through 6. We collected peers’ valuation methodology based on broker reports from 34 our China retail marketplaces, as well as GMV transacted through our CS, GS, MS, JPM, UBS, BofA, and Citi published in July to September 2020. international retail marketplaces and local consumer services. 7. For strategic investments in public companies, valuation calculated by 2. Annual active consumers on China retail marketplaces for LTM ended market values of Alibaba’s stake as of June 30, 2020; for strategic June 2020. investments in private companies, valuation based on their fair value as 3. YoY growth in number of average daily paying subscribers from June of June 2020. Translation of RMB into US$ were made at RMB7.0651 to 2019 to June 2020. US$1.00. 4. Amap’s average daily active users in August 2020. 35