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Financial Services for Consumers and Small Businesses

Eric Jing, CEO, Ant Financial Services


To Provide the World with Equal Access to Financial Services

30% 80% 90%


of adult population worldwide of SMEs worldwide of adult population in developing countries
unbanked no access to formal financial systems without credit card

Source: World Bank 2014 1


Ant Financial is a TechFin Company

Consumers Small Businesses

Our Partners
Enabling Partners Financial
Institutions
TechFin to Redefine the Offering
Capabilities ISVs
of Financial Services

2
Our Core Strengths

1 Integral Part of the Alibaba Economy

2 Global Digital Financial Service Platform

3 Leading Breadth and Scale Across the Financial Service Spectrum

4 Data-Empowered Comprehensive Solutions for Small Businesses

5 Unrivalled TechFin Capabilities


3
1 Integral Part of the Alibaba Economy

Cainiao Koubei
ecosystem ecosystem

Alibaba Commerce Logistics Local Services Transportation



Other strategic
ecosystem Media Dining partners
Healthcare Lodging

Travel

Ant Financial Ecosystem 4


1 Integral Part of the Alibaba Economy
Mutual Benefit in the Burgeoning Ecosystem

Mutual Reinforcement in the Journey of Globalization Membership Connect to Enhance Customer Loyalty
Significant Use Case to Exclusive
Boost Payment Services Membership Privileges

Tailor-made travel plans Priority viewing

Designated cash coupon/show tickets

Intime shopping discounts

Crucial Infrastructure to More Comprehensive


Foster E-commerce Customer Insights

5
2 Global Digital Financial Service Platform
The Next Generation of Financial Network Driven by Data Technology
Ant Financial Local Partners

520mn 1
112mn 2
Enable Enable
Consumers Merchants
to Buy to Sell
Consumer
Global Merchant Globally Our Globally
Network Payment Network Goals
Network

Enable
Users
MY PH SG ID
to Transfer
Globally
1 Defined as number of global users directly served by Ant Financial during the twelve months ended March 31, 2017
2 Defined as number of global users served by Ant Financials strategic local partnersPaytm and Ascend Money, during the twelve months ended March 31, 2017 6
2 Global Digital Financial Service Platform
Highly Replicable Model to Enable Our Partners to Succeed

Empowering Our Local Partners Enabling to Become the 4th Largest e-Wallet Worldwide

Business
Total wallets Daily average # of transactions
Technology
Strategy

Strategic
Local Partners
10x 13x
Risk Operational
Management Experience

Product
Jan-2015 Mar-2017 Jan-2015 Mar-2017
Know-how

7
3 Leading Breadth and Scale across the Financial Service Spectrum
The Center of FinLife Powered by Deep Customer Insights

Payment Wealth Financing Insurance


Ant Insurance Service
Credit
Management System
520mn 330mn 100mn 392mn 257mn
Annual active users1 Cumulative users1 Annual active users1 Annual active users1 Activated users1

17% 73% 43% 95%


YoY AUM growth per active user use Ant Credit Pay 6+ times in 1 year YoY premium growth per user YoY growth

PayPal2 Charles Schwab3 China Merchants Bank3 Ping An Group3 FICO Score U.S. Credit Accounts3
203mn active accounts 10.2mn active accounts 46mn credit cards in circulation 131mn active users 180mn

1 During the twelve months ended March 31, 2017, or by the end of March 31, 2017
2 During the twelve months ended March 31, 2017; Source: Form 10-Q 8
3 As of fiscal year ended December 31, 2016; Source: annual reports
3 Leading Breadth and Scale across the Financial Service Spectrum
One Stop for Integrated Financial Solutions

~430mn ~250mn ~60mn


using using using
2+ categories1 of services 3+ categories1 of services all 5 categories1 of services

8 in 10 Ant Financial users 5 in 10 Ant Financial users 1 in 10 Ant Financial users

1 Categories of services provided by Ant Financial, including payment, wealth management, financing, insurance and credit system. 9
3 Leading Breadth and Scale across the Financial Service Spectrum
A Leading Mobile Payment Player with Strong User Engagement

Rapid Growth in Offline Payment Continuously Increasing User Engagement High Proportion of
Consumer-to-Merchant Transactions
7x
# of Offline
+54%
DAU
Payment Transactions Commercial Transactions1

Money Transfer and Red Packets

70%
Mar 16 Mar 17 Mar 16 Mar 17

1 Number of commercial transactions divided by total number of transactions in March 2017 10


3 Leading Breadth and Scale across the Financial Service Spectrum
Open Platform Driven by Artificial Intelligence in Wealth Management

Personalized Investment Recommendations More Value To Asset Managers Open Platform Model

+69% 100+
Selected Products Selected Products

Fix-1erm pr-duc1s Buy Gold


imited offering
Gold ETF
M-1-0u0 -1vest0e1t fro0 RMB1 asset management
4.50% 77 Days User A: 276.04 User B:
companies2
Individuals
Expected annualized yield Maturity Current gold pr/)e (RMB/g

Invest
InvestNow
Now Invest Now

Investment Objective: Investment Objective:


2600+ Platform
-m-n1h l-w-risk
weal1h managemen1 pr-duc1s Preservation of Capital Top-ra1k fu1ds
Total Return increase in customer fund products2
Risk Appetite: Risk Appetite : conversion ratio1
Inves1men1 plan f-r re1iremen1 life
Fullgoal CSI 300 Index Enhanced
Low
Top 1 retur1
Ide1t-fy-1g dark horses
Boser( Gre(t Br(nds Fund
High
+5.40% +29.75%
Fund performance in the past year
Fund perf-rmance in 1he pas1 year Fund
Fund perform(n)e in
performance /n the
thep(st
pastye(r
year

Data Technology Channel Marketing


Selected Products Wealth Management My Assets Sele)ted Produ)ts We(lth M(n(gement My Assets

1 Conversion ratio refers to the portion of Ant Fortune users who purchased fund products after receiving a card recommendation in Ant Fortune App
2 As of May 31, 2017 11
4 Data-Empowered Comprehensive Solutions for Small Businesses

Cash Lending Unsecured Lending


Banks Manage-
ment 5.2mn
Insurance
Payment Small Businesses Served1
Data
Credit
Asset Insights System Supply Chain Finance
Managers Security
RMB 3.5bn
Cumulative Loans1
Technology
Support Operation
Institutional Marketing
Cloud Cash Management
1.4mn
Computing

Investors ERP CRM HR


Small Businesses Served1

1 Cumulatively by the end of March 2017 12


5 Unrivalled TechFin Capabilities
Biometrics: Unparalleled Technology Applicable to Financial Transactions

From Password to Biometric ID Face Pay: Globally Recognized Financial-grade Technology


More Convenient and Safer

Eyeprint 150mn+ Multi-level Liveness for Anti-spoofing


Face Authentication Users1

Face
<3 seconds
Interaction Time

Voice
<0.1bp Real Face Photo Video 3D face simulator
Fingerprint False Match Rate
(Financial-grade)
and more recognition
methods to be adopted
1 As of May 31, 2017 13
5 Unrivalled TechFin Capabilities
Blockchain: Innovative TechFin Infrastructure to Enhance Trust
Mutual insurance plan
Charity organization initiating institution

Media Asset management Auditor


Auditor
institution
355 charity programs Mutual Mutual insurance plans
Charity
13mn donations made Insurance running on blockchain
Rmb67mn fund raised Payment gateway Donors Payment gateway Members since business launch
in less than 10 weeks1

Regulator Regulator

Massive data Customization catering


processing capability to corporate needs

1 From mid-March to end-May 2017 Leading Commercial Feasibility and Scalability 14


5 Unrivalled TechFin Capabilities
Risk Management: Providing Security Solutions to Our Partners in the Digital Economy

Deliver Our Best-in-Class Solutions Outstanding Payment Security Leveraging Risk Management Capability to Enable Partners
Technology O2O
<0.1s Transportation
decision-making
Fraud Loss Rate
A leading global
digital payment platform
19bps >14bn 1

<0.1bp Consumer
Finance
Transactions

(<0.001%) A leading global


Data
Massive
Intelligence
Automated card association 2.95bps >2000 1
device data volume Banking
deep-learning capabilities
Companies Served
Healthcare
Hospitals

1 Since product launch in January 2015 15


5 Unrivalled TechFin Capabilities
Credit System: Broadly Integrated in Multiple Scenarios by Different Industries

A Convenient Credit Passport for Users

+95% YoY
Zhima Score Users 1 RMB 34bn
Cumulative guarantee
deposits released3
+400% YoY
Daily Requests by Merchants2

1 Growth refers to number of cumulative users as the end of March 31, 2017 compared to those of March 31, 2016
2 Growth refers to daily average number of authorized requests made by merchants about ones Zhima Score in March 2017, compared to that in March 2016 16
3 As of May 31, 2017
Ant Financial: Financial Services for Consumers and Small Businesses

Deep
Global Unrivalled
Customer
Platform Technology
insights

17
THANKS

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