Management Discussion and Analysis

• Digital media and entertainment . The • Innovation initiatives and others . The
digital media and entertainment businesses innovation initiatives and others segment
leverage our deep consumer insights to serve includes businesses such as Amap, DingTalk,
the broader interests of consumers through our Tmall Genie and others.
key distribution platform, Youku, and through
Alibaba Pictures and our other diverse content
platforms that provide online videos, films, live
events, news feeds and literature, among others.
In addition, we develop, operate and distribute
mobile games through Lingxi Games (靈犀互娛).

The table below sets forth supplemental financial information of our reported segments for fiscal year 2021:

Year ended March 31, 2021

Digital Innovation
Core Cloud media and initiatives
commerce computing entertainment(1) and others(1) Unallocated(2) Consolidated
RMB RMB RMB RMB RMB RMB US$
(in millions, except percentages)
Revenue 621,146 60,120 31,186 4,837 – 717,289 109,480
Income (Loss)
from operations 158,981 (9,050) (10,321) (15,502) (34,430) 89,678 13,688
Add: Share-based
compensation
expense 24,356 8,861 3,281 5,162 8,460 50,120 7,650
Add: Amortization
of intangible
assets 11,175 23 922 83 224 12,427 1,896
Add: Fine imposed
pursuant to
China’s Anti-
monopoly Law(3) – – – – 18,228 18,228 2,782
Adjusted EBITA 194,512 (166) (6,118) (10,257) (7,518) 170,453 26,016
Adjusted EBITA
margin 31% (0)% (20)% (212)% 24%

(1) Beginning on April 1, 2020, we reclassified the results of our self-developed online games business, which was previously reported
under the innovation initiatives and others segment, to the digital media and entertainment segment because it has moved
beyond the incubation stage. This reclassification conforms to the way that we manage and monitor segment performance.
Comparative figures were reclassified to conform to this presentation.
(2) Unallocated expenses primarily relate to corporate administrative costs and other miscellaneous items that are not allocated to
individual segments.
(3) For a description of the relevant PRC Anti-monopoly investigation and administrative penalty decision, see “Business Overview –
Legal and Administrative Proceedings – PRC Anti-monopoly Investigation and Administrative Penalty Decision.”

Fiscal Year 2021 Annual Report 97