EFTA01457504

8 May 2015 Software & Services Alibaba Model updaled:07 May 2016 liurirchi rho nuitibms Asia China Software & Services Alibaba Routers: BABA .N Buy Price 16 May 15) largol Price 52 Week range Marker CaP (nil Bloomberg MBA US USD 80.00 USD 104.00 USD 79.54 119.15 EURm 167.983 USOm 190.720 [Company Prolik, Founded in 1999, Mamba leads Ow Chine fetal market through Teobee Rhe largest online shopping platiorm in China based on GMVI.Trnal (the largest 3rd parry platform for releilersforands in arms of GMV) and Juhuasuan la lead, rg Chne group buy-mg platform) The COMperry eaten to global wholesale market through Alibaba corn and China wholesale market through theater,. Akbaba also tents the global COASUMel market place tea. AllExpress and also provides cloud computing services such as data mining, processing end storage P1 Ice Proton-mince 120 110 100 90 80 70 Se 4 Mar "5 Margin in 52 48 44 40 36 32 28 Amin 114$040 '00171•444440 13 4 IS I6E r In 18E MUM Melee . li ttirr mane Claurth so 60 40 20 0 eve ereeilh (U1S1 roe are 20 0 -20 .60 13 14 15 16E 17E 19E ea witues.er Nei inner Con. lorth llklll Hu , , Page 2 50 40 37 20 10 0 Racal yew end 31-Mr 2013 lint/mina! Strom-ma 2014 2015 2016E 2017E 2019E 08 EES ICNY) 5.78 11 80 t2.76 17.86 24.06 30.40 Resorted EPS 9.3091 3.52 990 9.27 10.51 10.37 72.30 OPS (CNY) 0.00 000 0.00 090 000 000 SVPS (CPIY) 4.0 18.3 526 712 95.0 1238 Weighted average slime Ire) 2,294 2,175 2,425 2,521 2.552 2,806 Average market cap (CNYmI na n• 1,444260 1,192,321 1,192,321 1122321 Enpronrot virus (CNYm) ne na 1.343.188 1.031.757 988.085 893.373 ValimN--m Metrics PIE (DO)1q na no 48.7 27.8 20.6 16.3 P/E (Reporeed) (x) ne rot 843 472 303 22.2 P/BV (x) 0.00 000 9.11 697 528 4.05 SCE Yield (34) no ne 29 36 4.9 6.2 Dividend Yield MI ne erl 00 00 0.0 0.0 EV/Seles lx) nm ran 17.6 101 7.2 5.2 EV/EBITOA nm nm 537 790 18.2 12,3 EV/E81T 00 nm leill 593 321 20.0 13.4 IniXinat ieN`rritl Sala revenue 34.51) 52.504 76.204 101.997 135.293 171,735 Gross prom 25.473 40.159 52.510 72.167 97.558 125010 EMMA 11,731 223)3 25.030 35.522 53..195 72.058 DeprethetiOn 675 1,024 140 716 2.099 3.921 ronortnabon 305 359 2,245 2.715 2.592 1,898 EBB 10.751 24,920 22.645 32.151 48.496 69.239 Net interest meornelesP•me) .1.533 447 6405 1.360 2243 4.807 ASSOC4testattliates 4 -203 -1.590 -1.293 -1,422 -1.299 Exceptc.nals/extraorcnanes 0 0 0 0 0 0 Other pre ca. ncome/(expensel 894 2,429 2.486 4,453 6,778 8.044 Profit before lax 10.112 26.902 31.836 37.984 52116 93.090 Income tax expense 1,457 3.196 6416 9.122 13.296 18.484 Wormers 117 88 59 46 71 79 Other post-tax income/Cemeroal -128 -238 -405 0 0 0 Net profit 9,404 23,078 23,366 27.484 43,328 60,229 08 adjustments (includmg CalUtiOn) 5.348 4.446 8.788 19.236 20.347 21.882 06 Net profit 13.752 27,522 32,154 48.720 63.675 82.111 !Cash now (CNYml Cash Sow horn opererons 14.476 22379 49.288 52.463 71.402 90.850 Net Capt.( -2402 4776 -7.620 -7.660 -8.794 -10.304 Free cash flow 12,274 21,0)3 41.007 44.813 62.608 93.546 Equity isisearthought backl -28.349 -3.425 82.319 0 0 0 Dividends paid 0 0 0 0 0 0 Nat mold/eel in borrowings 28.932 12.789 23.000 0 .30030 0 Other investingthroncing cant 'lows 2.082 -28.318 41.524 -2.040 -2.706 4.435 Net Cash flow 13.539 2,649 65.462 42.773 29,902 77.112 Change in acrkingea4001 AM 4,692 4751 2,248 2.985 2,842 Pala:lr e Sheut iC N int! Gish and other Nord ante 34.093 37.966 98.507 141.280 171.182 248.294 Tangible fixed Mean 3.808 5.581 10.992 15.211 19,314 23.799 GoodwilVintang.ble assets 13.523 15,358 44589 41,874 39.282 37.384 Assaccteshnvestrnents 5,341 30,340 82,377 85,297 69,139 73,917 Other assets 7,031 22403 11,387 9.774 11.508 13.405 TOW assets 63.786 111.549 227.852 273.437 310.429 399.699 Irnerest bearing debt 33.101 41,075 52055 54.811 24.811 24,811 Other liabilities 19.639 29.656 31,422 38.181 44015 47.998 Total IctrIrtuas 52,740 70,731 89,477 90,992 66)3213 72.809 Shareholders' equity 10.509 39,738 137,237 181.242 242.325 322.538 MulOritate 537 1,079 1.138 1.203 1,274 1.353 TOW tharahOldeff equity 11,046 40.818 139,375 182.445 243199 323.891 Abe debt -982 4709 -44452 44489 -148,377 -223,083 IKEV Company Mettrx sres growth Ciki 72.4 52.1 45.1 33.8 32.6 269 08 EPS growth MI 141.4 105.0 8.1 40.0 34.7 26.4 EBITDA Margin Did 34.0 50.1 322 349 39.3 42.0 EDIT Mersin (M) 31.1 47.5 29.7 31.5 35.8 38.6 Payout ratio (14) 0.0 0.0 0.0 00 0.0 0.0 ROE BS) 40.0 81.8 26.4 17 3 20.5 21.3 Cromaeles (14) 7.3 91 10.0 7.5 6.5 6.0 Capexklapreciabon Ix) 3.1 3.6 3A 2.2 1.9 18 Net debtrormity 49 7.6 49.2 47 4 -60.1 -03.0 Net interest cover CO 7.0 45.6 nm nm ern mini Smart Company ham Deursch• Sant avenue Deutsche Bank AG/Hong Kong CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0117074 SDNY_GM_002632S8 EFTA01457504