Investor Presentation - Bilibili Inc.

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InvestorPresentationFebruary 2019

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This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. PrivateSecurities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,”“aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, theOutlook and quotations from management in this announcement, as well as Bilibili’s strategic and operational plans, contain forward-lookingstatements. Bilibili may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission,in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employeesto third parties. Statements that are not historical facts, including but not limited to statements about Bilibili’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differmaterially from those contained in any forward-looking statement, including but not limited to the following: Bilibili’s strategies; Bilibili’s futurebusiness development, financial condition and results of operations; Bilibili’s ability to retain and increase the number of users, members andadvertising customers, provide quality content, products and services, and expand its product and service offerings; competition in the onlineentertainment industry; Bilibili’s ability to maintain its culture and brand image within its addressable user communities; Bilibili’s ability to manage itscosts and expenses; PRC governmental policies and regulations relating to the online entertainment industry, general economic and businessconditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks isincluded in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in theattachments is as of the date of the press release, and the Company undertakes no duty to update such information, except as required underapplicable law.

Safe Harbor Statement

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Enrich the everyday life of young generations in China

4.1bn 93mm 78minRevenue in 2018 (RMB) MAU (1) in 18Q4 Mobile MAU in 18Q4 Avg. daily time spent

(excl. mobile game) in 18Q4

:

3

80mm

4

17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4

57

65

74 7277

85

93 93

17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4

424

583

728 734

868

1,027 1,079

1,156

Our rapid growth

Rapid user base expansion lays a solid foundation for fast revenue growth

MAU (mm) Net revenue (RMB mm)

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Gen Z represents the future of online entertainment

328mm Gen Z | 24% of total population in Chinapeople born from 1990 to 2009

(1) Exchange rate is 1USD=6.8755RMB

Gen Z is the key driving force of China’s online entertainment market

Gen Z outgrows overall China’s online entertainment market

2017

47.3

2020E

97.5Deep user penetration

Extensive time spent

Strong willingness to pay 55%62%

Market size (US$ bn) (1)

Gen Z CAGR

33%

Notes:

Gen Z’s contribution

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Efficient with tremendous upside

Commercialization

Content Community

Gen ZEver-growing supply ofuser generated content

Highly engagedand sticky

The story

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We have become the welcoming home of diverse interests...

ACGAnime, Comic

and Game

Entertainment

NO.1(1)

Pop Culture

Lifestyle

NO.2(1)

Technology

NO.5(1)

Anime

NO.4(1)

Game

NO.3(1)

(1) Ranked by video views in 2018

Celebrity

Pets

Foodie

E-Sports

Mobile Games

Science

Electronics

Cosplay

Domestic AnimeNotes:

Content Community Commercialization

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…And ever-growing supply of creative PUG videos

(1) In December 2018

total video views contributed by PUG videos

(1)

Talented Content CreatorsNumber of Monthly Average Active Content Creators

18Q417Q4

570234

143%

High-quality Content CreationNumber of Monthly Video Submissions

18Q417Q4

1,716692

148%

Loyal Fan BaseNumber of Content Creators with more than 10,000 Fans

Dec 31，2018Dec 31，2017

81%

89%

reate

Engage

EncourageCreate

(‘000)

(‘000)

Notes:


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Continuous support to content creators in all layers

Higher quality production

RewardCash Incentive Program

(1000+ fans)

ToolsMobile Content

Submission

More contentsubmission

TutorNew Star Project

UP Academy

Better incentive

VIP ServicePower Alliances

Top 100 UP Award

Maximize influence


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We also have a expansive OGV LibraryContent Community Commercialization

Animation Documentary TV，Movies and Variety shows

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We fostered highly engaged and sticky communities

Highly engaged users：

436mm avg. daily video views in Q4

1bn interactions(1) generated monthly in Q4

107% YoY growth

298% YoY growth

(1) Interactive features such as bullet-chats, commentaries, favorites, bilibili moment posts and virtual gifting

Notes:


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45mm official members (1) ~80% 12th-month retention rate (1)

44% YoY growth

(1) As of December 31, 2018. To become an official member, user needs to take and pass a community entrance exam consists of 100 questions covering community etiquette and various topics

Notes:

And even more loyal official members

50%

60%

70%

80%

90%

100%

0 3 6 9 12

2016 Oct 2016 Nov 2016 Dec2017 Jan 2017 Feb 2017 Mar2017 Apr 2017 May 2017 Jun2017 July 2017 Aug 2017 Sep


We fostered highly engaged and sticky communities

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Commercialization comes naturally: massive user demand intersects with high quality supply

Large and engaged user base

with strong willingness to pay

DemandEfficient match

driven by big data insights

of user interests and behaviors

Supply

Mobile GamesAdvertising

Live BroadcastingValue Added Services

….

We understand users’ demand… …and we offer the right contentand services


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Compelling core competency of our mobile game business

Efficient Matching Mechanism

Deep insights into our user interest & behavior through analyzing massive and

high quality user data

Customized game recommendation

Strong AC-Games Demand

Game is 3rd most popular video genre on our platform

Sophisticated Game Curation

1 Self developed

11 Exclusively distributed

300+ Jointly operated

(1) According to China Top Grossing Ranking in iOS App Store, Ranked No.2 on Jun 25, 2018

Notes:

Game-themed live broadcasting is also well received

4.5mm players within the first 30 days Top ranked (1) in China mobile game market

We have successfully introduced FGO, a Japanese anime & comics themed mobile game, to the Chinese market

6mm players within the first 30 days Over 100mm RMB gross revenue achieved within the first 30 days

We have successfully launched Azur Lane, a domestic ACG themed mobile game, with outstanding results

Majority of our mobile game players are converted from our community


1517Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4

349

492

600 617

688

791 744

713

Robust game revenue growth and strong pipeline

Azur Lane ReleasedIn 17Q2

FGO Released in 16Q3

RMB (mm)


Strong Pipeline

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Gen Z is the golden cohortwell chased by brand advertisers

Brand & Performance-based advertising: two growth engines

Customized performance-based ads help advertisers reach and convert target audiences


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17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4

Brand Ads Performance-based Ads

Advertising revenue: strong growth with great potential

RMB (mm)


Up 302%YOY

2941

49 40

70

96

137

160

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Live broadcasting & VAS: multi-faceted commercialization

Deep pool of talented hostsStrong emotional connection fostered by community

Premium membershipEnjoy exclusive or advanced high quality content


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RMB (mm)

17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4

38 41 4354

96

119

169

202


Live broadcasting & VAS revenue: strong growth with great potential

Up 276%YOY

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OUR FINANCIALS

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17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4

57

65

74 7277

85

93 93

Expanding user base and increasing paying ratio

(1) Average monthly active users for each of the quarters (includes both PC and mobile)(2) Calculated as average monthly paying users (MPU) in each year divided by average MAUs in each year. MPUs are calculated by counting individual users and exclude counting multiple services per user.

Notes:

Total MAUs(mm)

17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4

854 1,073 1,174 1,109

2,473

2,966

3,540

4,416

Y-o-Y Growth % 29%

Impressive growth of paying users

MPUs (thousands)

MPUs / MAUs (%)

2017 | 1.6% 2018 | 3.8% 4Q18 | 4.8%

(1)

(2)

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17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4

7.4

8.99.8 10.2

11.212.1 11.6

12.5

17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4

Mobile games Live broadcasting and VASAdvertising E-commerce and Others

Rapid growth of revenue and revenue per MAU

(1) Average monthly active users for each of the quarters (includes both PC and mobile)

Notes:

Revenue(RMB mm)

Y-o-Y Growth % 57%

Quarterly Total Revenue / Quarterly MAU (1)

(RMB)

Y-o-Y Growth % 23%

1,027

868

734728

583

424

1,1561,079

23

Margin expansion with operating leverage

(1) Excluding Share-based compensation(2) Revenue-sharing costs consist of fees paid to game developers, distribution channels (app stores) and payment processors, as well as fees we pay to hosts of our live broadcasting program and content creators in accordance with our revenue-sharing arrangements.(3) Content costs consist of amortized costs of purchased licensed content from copyright owners or content distributors.(4) Server and bandwidth costs are the fees we pay to telecommunication carriers and other service providers for telecommunication services, hosting our servers at their internet data centers, and providing content and application delivery services.(5) Others includes staff cost, depreciation, and others.

Notes:

Cost of Revenue (1)

(RMB mm; as a percentage of revenue %)

Gross margin %

Operating Expenses (1)

(RMB mm)

As a percentage of revenue

39%31%28%29% 39%19%25%25%24% 17%

17Q4 18Q1 18Q2 18Q3 18Q4

38% 39%41% 41% 38%

12%11%

12%14% 15%

15%16%

14%15% 16%

10%

10%

8%

11%14%

Revenue-sharing costs Content costs Server and bandwidth costs Others

556647

768

877

954

17Q4 18Q1 18Q2 18Q3 18Q4

9% 9%12%

18% 16%9% 8%

7%

8% 12%

11%11%

12%

13%

12%

Selling and marketing expenses General and administrative expenses Research and development expenses

215242

315

418455

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Consolidated balance sheets

(RMB MM) Dec 31, 2017 Dec 31, 2018Assets

Cash and cash equivalents 763 3,540Time deposit 2 749Restricted Cash -- --Accounts receivable, net 393 324 Receivable due from related parties 30 --Prepayments and other current assets 477 991 Short-term investments 488 946

Total current assets 2,153 6,550

Property, equipment and software, net 187 395Production cost 21 204Intangible assets, net 426 1,420Good will 51 941Long-term Investments 636 980

Total non-current assets 1,321 3,940Total Assets 3,474 10,490

LiabilitiesAccounts payable 597 1,308Salary and welfare payables 149 247Taxes payable 25 39Short-term loans -- --Deferred revenue 573 985Accrued liabilities and other payables 48 670Intercompany payable 6 50

Total current liabilities 1,398 3,299Total Liabilities 1,398 3,299

Total Mezzanine equity 4,015 --

Total Bilibili Inc.’s shareholders’ (deficit)/equity (1,939) 6,951Non-controlling interests -- 240

Total shareholders’ (deficit)/equity (1,939) 7,191

Total Liabilities, Mezzanine and Shareholders' Equity 3,474 10,490

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Consolidated statements of operations and comprehensive loss(RMB MM, unless otherwise stated)

17Q4 18Q3 18Q4 YoY Change FY17 FY18 YoY ChangeNet revenues

Mobile games 617 744 713 15% 2,058 2,936 43%

Live broadcasting and VAS 54 170 202 276% 176 586 232%

Advertising 40 137 160 302% 159 464 191%

E-commerce and Others 23 28 81 254% 75 143 92%

Total net revenues 734 1,079 1,156 57% 2,468 4,129 67%

Cost of revenues (558) (884) (959) 72% (1,919) (3,273) 71%

Gross profit 176 195 197 12% 549 855 56%

Sales and marketing expenses (65) (197) (182) 181% (232) (586) 152%

General and administrative expenses (86) (111) (150) 75% (261) (461) 77%

Research and development expenses (87) (146) (154) 76% (280) (537) 92%

Total operating expenses (238) (454) (486) 104% (773) (1,584) 105%

Loss from operations (62) (259) (289) 366% (224) (729) 225%

Investment (loss)/income, net 8 (5) 75 892% 23 97 320%

Interest income 1 22 27 3210% 1 69 4533%

Exchange (losses)/gains (1) 2 (5) 412% 6 (2) -126%

Others, net 5 5 10 78% 19 26 43%

Loss before tax (49) (235) (182) 272% (175) (539) 208%

Income tax (2) (11) (9) 274% (9) (26) 193%

Net loss (51) (246) (191) 272% (184) (565) 207%

Adjusted net loss (25) (203) (152) 501% (101) (377) 273%

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THANK YOU!IR Contacts

Bilibili Inc.

Juliet YangTel: +86-21-2509 9255 Ext. 8523E-mail: [email protected]

The Piacente Group, Inc.

Tel: +86-10-5730-6200 (In China)Tel: +1-212-481-2050 (In U.S.)E-mail: [email protected]

Investor Presentation - Bilibili Inc.

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