Investor Presentation - Bilibili

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Investor

PresentationFeb 2021

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This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private

Securities 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, the Effects of COVID-19, Outlook and quotations from management in this announcement, as well as Bilibili’s strategic and

operational plans, contain forward-looking statements. 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 employees to 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 differ materially from those contained in any forward-looking statement, including

but not limited to the following: the effect of the COVID-19 pandemic on the Bilibili’s business, results of operations, financial condition, and stock

price; Bilibili’s strategies; Bilibili’s future business development, financial condition and results of operations; Bilibili’s ability to retain and increase

the number of users, members and advertising customers, provide quality content, products and services, and expand its product and service

offerings; competition in the online entertainment industry; Bilibili’s ability to maintain its culture and brand image within its addressable user

communities; Bilibili’s ability to manage its costs and expenses; PRC governmental policies and regulations relating to the online entertainment

industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further

information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information

provided in this presentation is as of the date of the presentation, and the Company undertakes no duty to update such information, except as

required under applicable law.

Safe Harbor Statement

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Enrich the everyday life of young generations in China

:

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202mn

MAU (1) (2)

55% YOY

187mn

Mobile MAU (1) (2)

61% YOY

54mn

DAU (1)

42% YOY

18mn

MPU (1) (3)

103% YOY

75minsAvg. daily time spent (1) (4)

4

18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4

1,156

1,374 1,538

1,859 2,008

2,316

2,618

3,226

3,840

Net revenue (RMB mn)MAU (mn)

18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4

93101

110

128 130

172 172

197 202

Bilibili Outstanding Growth Track Record

Rapid user base expansion sets solid foundation for fast revenue growth

Y-o-Y Growth 55% Y-o-Y Growth 91%

Notes:

(1) Refers to industry related to video content on video-centric platforms and non-video-centric platforms as well as mobile games. Non-video-centric platforms include social media, instant messaging, e-commerce, browser, and other kind of platforms

(2) Average daily time spent on video-based content by China mobile internet users

Source: iResearch

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Golden Opportunity from Videolization

Massive Video-based Industry(1)

RMB bn

583

1,803

2019 2025E

3x

5G and

video production tools

Infrastructure

More diversified content,

more video content creators

Supply

Rising demand and

spending power

for video-based content

Demand

Video becoming fundamental to information, entertainment and communication

More Video Users, More Time Spent (2)

Hours per daymn

930

2020 2025E

2.5

3.6

2020 2025E

+41%

+27%

1,180

Our Core User Base

Notes:

(1) in 2020

(2) in 2019

(3) Gen Z+ is expected to spend 5.0 hours daily on video-based content, compare with 3.6 hours for overall mobile users in 2025.

(4) Per capita value of Gen Z+ in China’s video-based industry is expected to reach RMB3,042, compared with RMB1,527 for overall users in 2025 .

Source: iResearch

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Gen Z+ Key Characteristics

86%of our users

aged below 35(1)

Our Unparalleled Leadership in Gen Z+

Gen Z+ (1985-2009)

Key driving force of consumption

+99%Higher per capita value(4)

More time spent & more value

+83 mins

More time spent (3)

65%Gen Z+ contribution to China’s

video-based industry revenue(2)

450+ mn

Gen Z+ population

The golden cohort and future of the video-based industry

Commercialization

Content Community

UsersEver-growing ecosystem

centered around PUGV

Highly engaged,

interactive and sticky

User-centric with

massive opportunities

Aspiring and

fast growing

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The story

A Welcoming Video Community for All the Videos You Like

Multi-scenarios

PGC

PUGC

UGC

Fragmented Time Immersive Experience

Story Mode

PUGVs

Live Broadcasting

OGVs

Games

Lifestyle

Tech

&

Knowledge

Anime Entertainment

Fashion

E-Sports

Mobile Games

Celebrity

Cosplay

Electronics

How-to

Vlog

Chinese Anime

Interests

Pop Culture

Content Community Commercialization

Multi-categories

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9

Ever-growing Supply of Creative PUG videos

(1) In 20Q4

total video views

contributed by PUG videos

(1)

Talented Content Creators

Number of Monthly Average Active Content Creators

20Q419Q4

1.0mn

88%

High-quality Content CreationNumber of Monthly Video Submissions

5.9mn

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

Dec 31, 2020Dec 31, 2019

70%

91%

reate

Engage

EncourageCreate

Notes:


1.9mn

20Q419Q4

2.8mn

109%


AI-powered algorithm

promotes original and high

quality content

Help creators quickly build

fan base and gain influence

High Quality Traffic

Peer creators inspire each other

Positive feedback & encouraging culture

Engaging and interactive community

Motivation and support for

lifelong content creation

Continuous Creation

Customized

premium services

Cash Incentive

Program

Sparkle Platform

Tutorials & Tools

Opportunity to unlock

commercial value

Unlock Value

Robust Mechanism Continuously Attracts and Supports Content Creators

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OGV: High Quality Content with Multiple Commercial Avenues


Fueling the Growth of Premium Members

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(mn)

Up 91%YOY

Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20

3.6

4.8 5.3

6.1

7.6

10.9 10.5

12.8

14.5

High Quality OGV

Valuable IP Assets in Long Term Multiple Derivatives

Expand User BaseSupplement

Content Ecosystem

Strengthen

Commercialization

Mobile Games

IP Licensing

Merchandise

Movie

Anime

Comic

Highly Engaged and Interactive Community

Interactive Features Frequently Engaged by Our Users

Note:

(1) In 20Q4

(2) Interactive features such as bullet-chats, commentaries, following, favorites, sharing, bilibili moment posts, virtual gifting and like etc.

One Click Triple-function Combo

Coin-

castingAdd to

FavoriteLike

ShareBullet-chat Commentary Following Virtual

Gifting

Moment

70% YoY growth

Highly Engaged

1.2bn avg. daily video views (1)

94% YoY growth

Highly Interactive

4.7bn monthly interactions(1)(2)

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80%+ 12th-month retention rate (1)

(1) 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:

50%

60%

70%

80%

90%

100%

0 3 6 9 12

Jan-19 Feb-19 Mar-19 Apr-19

May-19 Jun-19 Jul-19 Aug-19

Sep-19 Oct-19 Nov-19 Dec-1918Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4

45 49 54

62

68

82

89

97

103

Highly Sticky Community with a Strong Sense of Belonging

103mn official members (1)

(mn)

Up 51%YOY


Commercialization Comes Naturally around Users’ Interests

Desired content and services fulfilling needsUsers’ diverse, expanding interests

Diverse

Interest

Mobile Games

Advertising

VAS

……

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E-commerce

of user interests

and behaviors

Big data insights


Efficient match powered by

Compelling Core Competency of Our Mobile Game Business

Know what they want

User interest & behavior

quality user data

Customized game recommendation

Massive base of gamers

Game is the 2nd most popular

video genre on our platform

Ability to select and operate games

1 Self developed

43 Exclusively

distributed

700+ Jointly

operated

Game-themed live broadcasting

is also the most popular genre

2020 Launched


Strong pipeline

Majority of our gamers are directly converted from our platform

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Robust Game Revenue Growth

(RMB mn)


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19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 2019 2020

873 920 933 871

1,151 1,248 1,275 1,130

3,598

4,803

Up 34%YOY

Up 30%YOY

Value-added Services: Multi-faceted Commercialization

Live broadcasting

Natural extension of our

diversified content platform

Premium membership

Enjoy exclusive or advanced

high quality content


Maoer

Premium

audio drama platform

Bilibili Comic

Pay to view

comic platform

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(RMB mn)


VAS Revenue: Strong Growth with Great Potential

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19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 2019 2020

292 326

453 571

794 825

980

1,247

1,641

3,846

Up 118%YOY

Up 134%YOY


InlineSplash ad

Immersive and interactive brand ads Customized and innovative native ads Performance-based ads

Sponsorship

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Advertising: Bilibili is Becoming a Go-to Platform for Advertisers

(RMB mn)


Advertising Revenue: Strong Growth with Great Potential

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19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 2019 2020

112 168 247

290 214

349

558

722

817

1,843

Up 149%YOY

Up 126%YOY

Our Growth Strategies

Pursue healthy and

high-quality user growth

Put our community first

3 Reinforce our ever-growing

content ecosystem

Strengthen our user-centric

commercialization capabilities

1

2

3

4

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OUR

FINANCIALS

Total MAUs(mn)

55%

Diversified Revenue Mix(RMB mn)

Y-o-Y Growth

Expanding User Base Drives Revenue Growth

23

19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4

101110

128130

172 172

197202

19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 2019 2020

1,374 1,538 1,859

2,008 2,316

2,618 3,226

3,840

6,778

11,999

Mobile games VAS Advertising E-commerce and Others

77%Y-o-Y Growth 91%

Rapid Growth of Paying Users and Paying Ratio

MPU / MAUImpressive growth of paying users

MPUs (mn)

24

19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4

5.7 6.3

7.9 8.8

13.4 12.9

15.0

17.9

Y-o-Y Growth 103%

19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4

5.7% 5.7%

6.2%

6.8%

7.8%7.5% 7.6%

8.9%

19Q4 20Q1 20Q2 20Q3 20Q4

35%38% 39% 37% 33%

14%14%

14%14%

19%

11%

12%11%

9%

8%

19%13%

13%

16%

15%

Revenue-sharing costs Content costs Server and bandwidth costs E-commerce and others

1,6041,778

2,006

2,454

2,883

Cost of Revenue and Operating Expenses

(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 self-produced and licensed content.

(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) E-commerce and others include cost of goods sold associated with our E-commerce business, staff cost, depreciation and others.

Notes:

Expanding Gross Margin (1)

(Non-GAAP, RMB mn; as a percentage of revenue %)

Gross margin %

Operating Expenses (1)

(Non-GAAP, RMB mn; as a percentage of revenue %)

(2) (3) (4) (5)

Operating expense as percentage of revenue %

25

20.1% 23.2% 23.4% 23.9% 24.9%

19Q4 20Q1 20Q2 20Q3 20Q4

20%26% 25%

37%26%11%

12%12%

11%11%

7%

6%6%

7%7%

Sales and marketing expenses Research and development expenses

General and administrative expenses

782

1,0261,135

1,7591,713

38.9% 44.3% 43.4% 54.5% 44.6%

Consolidated Balance Sheets(RMB MM) Dec 31, 2019 Dec 31, 2020

Assets

Cash and cash equivalents 4,963 4,678

Time deposits 1,845 4,720

Accounts receivable, net 745 1,054

Prepayments and other current assets 1,511 1,931

Short-term investments 1,261 3,357

Total current assets 10,324 15,740

Property and equipment, net 516 762

Production cost, net 444 668

Intangible assets, net 1,657 2,357

Goodwill 1,012 1,296

Long-term investments, net 1,251 2,233

Other long-term assets 312 810

Total non-current assets 5,193 8,126

Total assets 15,517 23,866

Liabilities

Accounts payable 1,904 3,074

Salary and welfare payables 356 734

Taxes payable 68 127

Short-term loans - 100

Deferred revenue 1,369 2,118

Accrued liabilities and other payables 576 1,239

Total current liabilities 4,273 7,392

Long-term debt 3,415 8,341

Other long-term liabilities 193 351

Total noncurrent liabilities 3,608 8,692

Total liabilities 7,880 16,084

Total Bilibili Inc.’s shareholders’ equity 7,052 7,600

Noncontrolling interests 584 182

Total shareholders’ equity 7,636 7,782

Total liabilities and shareholders’ equity 15,517 23,866 26

Consolidated Statements of Operations and Comprehensive Loss(RMB MM, unless otherwise stated)

19Q4 20Q3 20Q4 YoY Change FY19 FY20 YoY Change

Net revenues

Mobile games 871 1,275 1,130 30% 3,598 4,803 34%

Value-added services 571 980 1,247 118% 1,641 3,846 134%

Advertising 290 558 722 149% 817 1,843 126%

E-commerce and others 276 413 741 168% 722 1,507 109%

Total net revenues 2,008 3,226 3,840 91% 6,778 11,999 77%

Cost of revenues (1,610) (2,464) (2,896) 80% (5,588) (9,159) 64%

Gross profit 398 762 944 137% 1,190 2,840 139%

Sales and marketing expenses (413) (1,190) (1,021) 147% (1,199) (3,492) 191%

General and administrative expenses (160) (254) (343) 114% (592) (976) 65%

Research and development expenses (245) (401) (484) 98% (894) (1,513) 69%

Total operating expenses (818) (1,845) (1,847) 126% (2,685) (5,981) 123%

Loss from operations (420) (1,083) (903) 115% (1,495) (3,141) 110%

Investment (loss)/income, net - 14 9 2350% 97 28 -71%

Interest income 36 18 15 -58% 163 83 -49%

Interest expense (15) (36) (35) 133% (47) (109) 132%

Exchange (losses)/gains (3) 11 13 -533% (12) 42 -450%

Others, net 22 (8) 72 227% 26 96 269%

Loss before income tax (380) (1,084) (829) 118% (1,268) (3,001) 137%

Income tax (7) (17) (15) 114% (36) (53) 47%

Net loss (387) (1,101) (844) 118% (1,304) (3,054) 134%

Adjusted net loss (337) (990) (682) 102% (1,082) (2,622) 142%

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THANK YOU!IR Contacts

Bilibili Inc.

Juliet Yang

Tel: +86-21-2509 9255 Ext. 8523

E-mail: [email protected]

The Piacente Group, Inc.

Tel: +86-21-6039-8363 (In China)

Tel: +1-212-481-2050 (In U.S.)

E-mail: [email protected]

Documents

Investor Presentation - Bilibili