Baidu Announces Fourth Quarter and Fiscal Year 2012 Results

         Baidu Announces Fourth Quarter and Fiscal Year 2012 Results

PR Newswire

BEIJING, Feb. 4, 2013

BEIJING, Feb. 4, 2013 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU), the leading
Chinese language Internet search provider, today announced its unaudited
financial results for the fourth quarter and fiscal year ended December 31,
2012[1].

(Logo: http://photos.prnewswire.com/prnh/20081103/BAIDULOGO )

Fourth Quarter and Fiscal Year 2012 Highlights

  oTotal revenues in the fourth quarter of 2012 were RMB6.335 billion ($1.017
    billion), a 41.6% increase from the corresponding period in 2011.
  oTotal revenues in fiscal year 2012 were RMB22.306 billion ($3.580
    billion), a 53.8% increase from 2011.
  oOperating profit in the fourth quarter of 2012 was RMB2.848 billion
    ($457.1 million), a 24.0% increase from the corresponding period in 2011.
  oOperating profit in fiscal year 2012 was RMB11.051 billion ($1.774
    billion), a 45.9% increase from 2011.
  oNet income attributable to Baidu in the fourth quarter of 2012 was
    RMB2.795 billion ($448.7 million), a 36.1% increase from the corresponding
    period in 2011. Diluted earnings attributable to Baidu per ADS[2] for the
    fourth quarter of 2012 were RMB7.99 ($1.28); diluted earnings attributable
    to Baidu per ADS excluding share-based compensation expenses (non-GAAP)
    for the fourth quarter of 2012 were RMB8.18 ($1.31).
  oNet income attributable to Baidu in fiscal year 2012 was RMB10.456 billion
    ($1.678 billion), a 57.5% increase from 2011. Diluted earnings
    attributable to Baidu per ADS for fiscal year 2012 were RMB29.83 ($4.79);
    diluted earnings attributable to Baidu per ADS excluding share-based
    compensation expenses (non-GAAP) for fiscal year 2012 were RMB30.44
    ($4.89).

    This announcement contains translations of certain RMB amounts into U.S.
    dollars at specified rates solely for the convenience of the reader.
[1] Unless otherwise noted, all translations from RMB to U.S. dollars are made
    at a rate of RMB 6.2301 to US$1.00, the effective noon buying rate as of
    December 31, 2012 in The City of New York for cable transfers of RMB as
    certified for customs purposes by the Federal Reserve Bank of New York.
    Effective on May 12, 2010, Baidu adjusted the ratio of its American
    depositary shares ("ADSs") representing Class A ordinary shares from one
[2] (1) ADS for one (1) Class A ordinary share to ten (10) ADSs for one (1)
    Class A ordinary share. All earnings per ADS figures in this announcement
    give effect to the forgoing ADS to share ratio change.

"Baidu once again posted solid growth in 2012 amidst challenging macro
conditions," said Robin Li, chairman and chief executive officer of Baidu.
"Similar to the early days of the Internet, this is a time of boundless
innovation, creativity and opportunity in our industry. We are at the heart of
the Internet in China and we're excited to embrace and lead the next stage of
mobile- and cloud-centric Internet growth."

Mr. Li continued, "We made encouraging progress in 2012, integrating Baidu's
superior search and search-related products and functions, like maps and image
recognition, into ouroffering. In 2013 we will continue to enhance
functionality, introduce new products, and step up efforts to push our
products to users."

Jennifer Li, Baidu's chief financial officer, commented, "Revenue growth and
profitability maintained a healthy trajectory in 2012 as we continued to
invest aggressively in developing a comprehensive ecosystem. In December, we
completed the iQiyi deal and consolidated its financials in our fourth quarter
results. In 2013, we'll be both stepping up our investments and increasing
sales and marketing efforts to ensure Baidu captures the huge opportunities
ahead."

Fourth Quarter 2012 Results

Baidu reported total revenues of RMB6.335 billion ($1.017 billion) for the
fourth quarter of 2012, representing a 41.6% increase from the corresponding
period in 2011.

Online marketing revenues for the fourth quarter of 2012 were RMB6.288 billion
($1.009 billion), representing a 40.8% increase from the corresponding period
in 2011. Baidu had about 406,000 active online marketing customers[3] in the
fourth quarter of 2012, representing a 30.5% increase from the corresponding
period in 2011 and a 4.1% increase from the previous quarter. Revenue per
online marketing customer for the fourth quarter of 2012 was approximately
RMB15,500 ($2,488), a 7.6% increase from the corresponding period in 2011 and
a 3.1% decrease from the previous quarter.

Traffic acquisition cost (TAC) as a component of cost of revenues was RMB606.8
million ($97.4 million), representing 9.6% of total revenues, as compared to
7.9% in the corresponding period in 2011 and 8.6% in the third quarter of
2012. The increase mainly reflects increased contextual ads contributions and
hao123 promotions through our network.

Bandwidth costs as a component of cost of revenues were RMB337.2 million
($54.1 million), representing 5.3% of total revenues, compared to 4.3% in the
corresponding period in 2011. Depreciation costs as a component of cost of
revenues were RMB317.5 million ($51.0 million), representing 5.0% of total
revenues, compared to 4.8% in the corresponding period in 2011. These
increases were mainly due to an increase in network infrastructure capacity
and the consolidation of iQiyi into the Company's financial statements.

Content costs as a component of cost of revenues were RMB120.3 million ($19.3
million), representing 1.9% of total revenues, compared to 0.6% in the
corresponding period in 2011. Content costs mainly consist of amortization of
licensed content costs from copyright owners or content distributors, and
costs of self-produced content. The increase was mainly due to the
consolidation of iQiyi into the Company's financial statements.

Selling, general and administrative expenses were RMB792.4 million ($127.2
million), representing an increase of 51.7% from the corresponding period in
2011, mainly due to an increase in marketing expenses and the consolidation of
iQiyi into the Company's financial statements.

Research and development expenses were RMB701.6 million ($112.6 million), a
69.6% increase from the corresponding period in 2011. The increase was
primarily due to an increase in the number of research and development
personnel.

Share-based compensation expenses, which were allocated to related operating
cost and expense line items, were RMB66.6 million ($10.7 million) in the
fourth quarter of 2012, compared to RMB56.7 million in the previous quarter
and RMB46.6 million in the corresponding period in 2011.

Operating profit was RMB2.848 billion ($457.1 million), representing a 24.0%
increase from the corresponding period in 2011. Operating profit excluding
share-based compensation expenses (non-GAAP) was RMB2.915 billion ($467.8
million), a 24.3% increase from the corresponding period in 2011.

Loss from equity method accounting was RMB121.7 million ($19.5 million),
representing an increase of RMB113.9 million ($18.3 million) compared to the
corresponding period in 2011. This increase was mainly attributable to loss
pickup from Baidu's cash investment in iQiyi and other invested entities.

Other Income was RMB380.5 million ($61.1 million), representing an increase of
RMB359.5 million ($57.7 million) compared to the corresponding period in 2011.
This increase mainly reflects a one-time gain for fair value adjustment
arising from the step acquisition of iQiyi.

Income tax expense was RMB539.9 million ($86.7 million), compared to an income
tax expense of RMB404.5 million in the corresponding period in 2011. The
effective tax rate for the fourth quarter of 2012 was 16.2% compared to 16.5%
for the corresponding period in 2011.

Net income attributable to Baidu was RMB2.795 billion ($448.7million),
representing a 36.1% increase from the corresponding period in 2011. Basic and
diluted earnings attributable to Baidu per ADS for the fourth quarter of 2012
amounted to RMB8.00 ($1.28) and RMB7.99 ($1.28), respectively.

Net income attributable to Baidu excluding share-based compensation expenses
(non-GAAP) was RMB2.862 billion ($459.4 million), a 36.3% increase from the
corresponding period in 2011. Basic and diluted earnings attributable to Baidu
per ADS excluding share-based compensation expenses (non-GAAP) for the fourth
quarter of 2012 amounted to RMB8.19 ($1.31) and RMB8.18 ($1.31), respectively.

As of December 31, 2012, Baidu had cash, cash equivalents and short-term
investments of RMB32.485 billion ($5.214 billion). This amount includes the
$1.5 billion raised through the Company's registered bond offering in November
2012. Net operating cash inflow and capital expenditures for the fourth
quarter of 2012 were RMB3.396 billion ($545.1 million) and RMB786.4 million
($126.2 million), respectively.

Adjusted EBITDA (non-GAAP), defined in this announcement as earnings before
interest, taxes, depreciation, amortization, other non-operating income and
share-based compensation expenses, were RMB3.324 billion ($533.6 million) for
the fourth quarter of 2012, representing a 25.9% increase from the
corresponding period in 2011.

    Online marketing customers exclude group buying customers of Qunar,
[3] Baidu's majority-owned subsidiary that offers online travel search
    services.

Fiscal Year 2012 Results

Total revenues in 2012 were RMB22.306 billion ($3.580 billion), representing a
53.8% increase from 2011.

Online marketing revenues in 2012 were RMB22.246 billion ($3.571 billion),
representing a 53.5% increase from 2011. The growth was driven by increases in
both the number of active online marketing customers and revenue per customer.
Baidu had about 596,000 active online marketing customers in 2012,
representing a 22.1% increase from 2011. Revenue per online marketing customer
for 2012 was RMB37,300 ($5,987), an increase of 25.6% from 2011.

Traffic acquisition costs in 2012 were RMB1.930 billion ($309.8 million),
representing 8.7% of total revenues, compared to 8.0% in 2011. The increase in
TAC as a percentage of total revenues reflects an increased revenue
contribution from Baidu's products and services, such as contextual ads,
through our network.

Bandwidth costs as a component of cost of revenues were RMB1.069 billion
($171.6 million), representing 4.8% of total revenues, compared to 4.3% in
2011. Depreciation costs as a component of cost of revenues were RMB1.082
billion ($173.7million), representing 4.9% of total revenues, compared to 4.5%
in 2011. These increases were mainly due to an increase in network
infrastructure capacity.

Content costs as a component of cost of revenues were RMB215.1 million ($34.5
million), representing 1.0% of total revenues, compared to 0.5% in 2011. The
increase was mainly due to the consolidation of iQiyi into the Company's
financial statements.

Selling, general and administrative expenses in 2012 were RMB2.501 billion
($401.5 million), representing an increase of 47.8% from the previous year,
mainly due to an increase in people and marketing expenses.

Research and development expenses totaled RMB2.305 billion ($370.0 million) in
2012, representing a 72.7% increase from 2011, primarily due to an increase in
the number of research and development personnel.

Share-based compensation expenses, which were allocated to related operating
cost and expense line items, were RMB212.3 million ($34.1 million) in 2012,
compared to RMB152.0 million in 2011.

Operating profit in 2012 was RMB11.051 billion ($1.774 billion), a 45.9%
increase from 2011. Operating profit excluding share-based compensation
expenses (non-GAAP) in 2012 was RMB11.264 billion ($1.808 billion),
representing a 45.7% increase from 2011.

Loss from equity method accounting in 2012 was RMB294.2 million ($47.2
million), representing an increase of RMB114.8 million ($18.4 million)
compared to 2011. This increase was mainly attributable to loss pick-up from
invested entities.

Income tax expense was RMB1.574 billion ($252.7 million), compared to an
income tax expense of RMB1.189 billion in 2011. The effective tax rate for
2012 was 13.2% compared to 15.2% in 2011. The year-over-year decrease in the
effective tax rate was mainly due to recognition of tax benefits obtained in
2012 for 2011.

Net income attributable to Baidu in 2012 was RMB10.456 billion ($1.678
billion), representing a 57.5% increase from 2011. Basic and diluted earnings
attributable to Baidu per ADS in 2012 amounted to RMB29.86 ($4.79) and
RMB29.83 ($4.79), respectively.

Net income attributable to Baidu excluding share-based compensation expenses
(non-GAAP) in 2012 was RMB10.668 billion ($1.712 billion), reflecting a 57.1%
increase from 2011. Basic and diluted earnings attributable to Baidu per ADS
excluding share-based compensation expenses (non-GAAP) in 2012 were RMB30.47
($4.89) and RMB30.44 ($4.89), respectively.

Net operating cash inflow and capital expenditures in 2012 were RMB12.583
billion ($2.020 billion) and RMB2.311 billion ($370.9 million), respectively.

Adjusted EBITDA (non-GAAP) was RMB12.698 billion ($2.038 billion) in 2012,
representing a 47.4% increase from 2011.

Outlook for First Quarter 2013

Baidu currently expects to generate total revenues in an amount ranging from
RMB5.890 billion ($945.4 million) to RMB6.080 billion ($975.9 million) for the
first quarter of 2013, representing a 38.1% to 42.6% year-over-year increase.
This forecast reflects Baidu's current and preliminary view, which is subject
to change.

Conference Call Information

Baidu's management will hold an earnings conference call at 8:00 PM on
February 4, 2013 U.S. Eastern Time (9:00 AM on February 5, 2013 Beijing/Hong
Kong Time).

Dial-in details for the earnings conference call are as follows:

International:   +65-6723-9381
US:              +1-718-354-1231
UK:              +44-20-3059-8139
Hong Kong:       +852-2475-0994
Passcode for all regions: 89724453

A replay of the conference call may be accessed by phone at the following
number until February 11, 2013:

International: +61-2-8199-0299
Passcode: 89724453

Additionally, a live and archived webcast of this conference call will be
available at http://ir.baidu.com .

About Baidu

Baidu, Inc. is the leading Chinese language Internet search provider. As a
technology-based media company, Baidu aims to provide the best way for people
to find information. In addition to serving Internet search users, Baidu
provides an effective platform for businesses to reach potential customers.
Baidu's ADSs, ten of which represent one Class A ordinary share, currently
trade on the NASDAQ Global Select Market under the symbol "BIDU".

Safe Harbor Statement

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," "future,"
"intends," "plans," "believes," "estimates," "confident" and similar
statements. Among other things, the outlook for the first quarter 2013 and
quotations from management in this announcement, as well as Baidu's strategic
and operational plans, contain forward-looking statements. Baidu 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 fourth parties. Statements that are not
historical facts, including statements about Baidu'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: our growth strategies; our future
business development, including development of new products and services; our
ability to attract and retain users and customers; competition in the Chinese
and Japanese language Internet search markets; competition for online
marketing customers; changes in our revenues and certain cost or expense items
as a percentage of our revenues; the outcome of ongoing, or any future,
litigation or arbitration, including those relating to intellectual property
rights; the expected growth of the Chinese language Internet search market and
the number of Internet broadband and mobile device users in China; Chinese
governmental policies relating to the Internet and Internet search providers
and general economic conditions in China and elsewhere. Further information
regarding these and other risks is included in our annual report on Form 20-F
and other documents filed with the Securities and Exchange Commission. Baidu
does not undertake any obligation to update any forward-looking statement,
except as required under applicable law. All information provided in this
press release and in the attachments is as of the date of this press release,
and Baidu undertakes no duty to update such information, except as required
under applicable law.

About Non-GAAP Financial Measures

To supplement Baidu's consolidated financial results presented in accordance
with GAAP, Baidu uses the following measures defined as non-GAAP financial
measures by the SEC: adjusted EBITDA, operating profit excluding share-based
compensation expenses, net income excluding share-based compensation expenses,
and basic and diluted earnings per ADS excluding share-based compensation
expenses. The presentation of these non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP. For more
information on these non-GAAP financial measures, please see the tables
captioned "Reconciliations of non-GAAP results of operations measures to the
nearest comparable GAAP measures" and "Reconciliation from net cash provided
by operating activities to adjusted EBITDA" set forth at the end of this
release.

Baidu believes that these non-GAAP financial measures provide meaningful
supplemental information regarding its performance and liquidity by excluding
certain expenses, particularly share-based compensation expenses, that may not
be indicative of its operating performance or financial condition from a cash
perspective. We believe that both management and investors benefit from
referring to these non-GAAP financial measures in assessing our performance
and when planning and forecasting future periods. These non-GAAP financial
measures also facilitate management's internal comparisons to Baidu's
historical performance and liquidity. Baidu has computed its non-GAAP
financial measures using the same consistent method from quarter to quarter
since April 1, 2006. Baidu believes these non-GAAP financial measures are
useful to investors in allowing for greater transparency with respect to
supplemental information used by management in its financial and operational
decision making. A limitation of using these non-GAAP financial measures is
that these non-GAAP measures exclude share-based compensation charge that has
been and will continue to be for the foreseeable future a significant
recurring expense in our results of operations. A limitation of using
non-GAAP adjusted EBITDA is that it does not include all items that impact our
net income for the period.Management compensates for these limitations by
providing specific information regarding the GAAP amounts excluded from each
non-GAAP measure. The accompanying tables have more details on the
reconciliations between GAAP financial measures that are most directly
comparable to non-GAAP financial measures.

For investor and media inquiries, please contact:

China
Victor Tseng
Baidu, Inc.
Tel: 86-10-5992-7244
ir@baidu.com

Nick Beswick
Brunswick Group
Tel: +86-10-5960-8600
Email: baidu@brunswickgroup.com

U.S.
Patricia Graue
Brunswick Group
Tel: +1-415-671-7676
Email: baidu@brunswickgroup.com



Baidu, Inc.
Condensed Consolidated Statements of Income
                             Three
                             Months                   Twelve Months Ended
                             Ended
                 December    December    September    December 31, December
                 31,         31,         30,                       31,
(In RMB
thousands
except for       2012        2011        2012         2012         2011
share, per
share (or ADS)
information)
                 Unaudited   Unaudited   Unaudited    Unaudited    Audited
Revenues:
Online
marketing        6,287,549   4,466,664   6,246,009    22,245,643   14,489,767
services
Other services  47,797      7,429       4,711        60,383       11,019
Total revenues  6,335,346   4,474,093   6,250,720    22,306,026   14,500,786
Operating
costs and
expenses:
Cost of
revenues (note   (1,993,313) (1,240,588) (1,696,512)  (6,448,545)  (3,896,883)
1, 2)
Selling,
general and      (792,373)   (522,449)   (642,788)    (2,501,336)  (1,692,810)
administrative
(note 2)
Research and
development      (701,575)   (413,779)   (614,541)    (2,304,825)  (1,334,434)
(note 2)
Total
operating costs  (3,487,261) (2,176,816) (2,953,841)  (11,254,706) (6,924,127)
and expenses
Operating       2,848,085   2,297,277   3,296,879    11,051,320   7,576,659
profit
Other income:
Interest        252,556     158,991     228,330      866,465      418,201
income
Interest        (33,012)    (25,915)    (24,002)     (107,857)    (82,551)
expense
Foreign
exchange gain    (3,028)     2,374       (2,359)      (4,533)      (1,959)
(loss), net
Loss from
equity method    (121,719)   (7,794)     (69,312)     (294,229)    (179,408)
investments
Other income    380,545     21,044      29,656       454,271      78,237
(loss), net
Total other     475,342     148,700     162,313      914,117      232,520
income
Income before   3,323,427   2,445,977   3,459,192    11,965,437   7,809,179
income taxes
Income taxes    (539,909)   (404,492)   (467,699)    (1,574,159)  (1,188,861)
Net income      2,783,518   2,041,485   2,991,493    10,391,278   6,620,318
Less: net loss
attributable to  (11,964)    (12,185)    (16,208)     (64,750)     (18,319)
noncontrolling
interests
Net income
attributable to  2,795,482   2,053,670   3,007,701    10,456,028   6,638,637
Baidu, Inc.
Earnings per
share for Class
A and Class B
ordinary
shares:
Net income
attributable to  79.96       58.83       86.02        298.62       190.27
Baidu,
Inc.-Basic
Net income
attributable to  79.91       58.73       85.94        298.29       189.88
Baidu,
Inc.-Diluted
Earnings per
ADS (1 Class A
ordinary share
equals 10 ADSs
):
Net income
attributable to  8.00        5.88        8.60         29.86        19.03
Baidu,
Inc.-Basic
Net income
attributable to  7.99        5.87        8.59         29.83        18.99
Baidu,
Inc.-Diluted
Weighted
average number
of Class A and
Class B
ordinary shares
outstanding:
Basic            34,963,019  34,907,318  34,946,375   34,939,838   34,890,050
Diluted          34,983,115  34,966,028  34,979,732   34,979,459   34,962,831
(1) Cost of
revenues are
detailed as
follows:
Sales tax and   (442,709)   (327,624)   (427,146)    (1,572,420)  (1,024,858)
surcharges
Traffic
acquisition      (606,809)   (353,762)   (538,192)    (1,929,966)  (1,155,546)
costs
Bandwidth       (337,194)   (192,230)   (266,871)    (1,069,306)  (626,444)
costs
Depreciation    (317,488)   (214,866)   (279,873)    (1,081,890)  (657,845)
costs
Operational     (164,412)   (122,998)   (149,720)    (569,725)    (358,169)
costs
Content costs   (120,337)   (26,940)    (32,307)     (215,133)    (66,494)
Share-based
compensation     (4,364)     (2,168)     (2,403)      (10,105)     (7,527)
expenses
Total cost of   (1,993,313) (1,240,588) (1,696,512)  (6,448,545)  (3,896,883)
revenues
(2) Includes
share-based
compensation
expenses as
follows:
Cost of         (4,364)     (2,168)     (2,403)      (10,105)     (7,527)
revenues
Selling,
general and      (4,423)     (14,113)    (18,294)     (54,512)     (50,012)
administrative
Research and    (57,778)    (30,360)    (36,023)     (147,692)    (94,489)
development
Total
share-based      (66,565)    (46,641)    (56,720)     (212,309)    (152,028)
compensation
expenses





Baidu, Inc.
Condensed Consolidated Balance Sheets
                                                       December 31 December 31
(In RMB thousands except for number of shares and per  2012        2011
share data)
                                                       Unaudited   Audited
ASSETS
 Current assets:
Cash and cash equivalents                             11,880,632  4,127,482
Restricted cash                                       395,029     483,387
Short-term investments                                20,604,223  10,051,578
Accounts receivable, net                              1,253,483   599,558
Amounts due from related parties                      -           149,728
Deferred tax assets, net                              160,315     121,411
Other assets, current                                 380,407     315,012
 Total current assets                               34,674,089  15,848,156
 Non-current assets:
Fixed assets, net                                     3,958,323   2,744,241
Intangible assets, net                                1,517,219   928,511
Goodwill                                              3,877,564   2,419,542
Long-term investments, net                            803,499     734,360
Amounts due from related parties                      -           100,000
Deferred tax assets, net                              53,303      52,125
Other assets, non-current                             784,893     513,606
 Total non-current assets                           10,994,801  7,492,385
Total assets                                           45,668,890  23,340,541
LIABILITIES AND EQUITY
 Current liabilities:
Short-term loans                                       -           125,878
Accounts payable and accrued liabilities               3,806,836   2,545,445
Customer advances and deposits                         2,067,586   1,573,967
Deferred revenue                                       94,121      62,705
Deferred income                                        64,506      34,779
Long-term loans, current portion                       2,170,978   46,000
Capital lease obligation                               32,502      17,773
 Total current liabilities                          8,236,529   4,406,547
 Non-current liabilities:
Deferred income                                        190,000     19,942
Long-term loans                                        356,589     2,277,925
Notes payable                                          9,336,686   -
Amounts due to related parties                         -           148,873
Deferred tax liabilities                               289,482     131,629
Capital lease obligation                               44,479      30,112
 Total non-current liabilities                      10,217,236  2,608,481
Total liabilities                                      18,453,765  7,015,028
Redeemable noncontrolling interests                    1,033,283   935,978
Equity
Class A Ordinary Shares, par value US$0.00005 per
share,
 825,000,000 shares authorized, and
27,111,117 shares and                                  12          12
 27,202,710 shares issued and outstanding as
at December 31,
 2011 and December 31, 2012
Class B Ordinary Shares, par value US$0.00005 per
share,
 35,400,000shares authorized, and 7,803,000
shares and                                             3           3
 7,763,000 shares issued and outstanding as at
December 31,
 2011 and December 31, 2012
Additional paid-in capital                             2,095,273   1,771,770
Retained earnings                                      24,038,219  13,604,334
Accumulated other comprehensive loss                   (78,278)    (84,403)
 Total Baidu, Inc. shareholders' equity             26,055,229  15,291,716
 Noncontrolling interests                           126,613     97,819
Total equity                                           26,181,842  15,389,535
Total liabilities, redeemable noncontrolling           45,668,890  23,340,541
interests, and equity



Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (*) (in RMB thousands, unaudited)
                                       Three months ended December    Three months ended September   Three months ended December    Twelve months ended December   Twelve months ended December 31,
                                       31, 2011                       30, 2012                       31, 2012                       31, 2011                       2012
                                       GAAP      Adjustment Non-GAAP  GAAP      Adjustment Non-GAAP  GAAP      Adjustment Non-GAAP  GAAP      Adjustment Non-GAAP  GAAP       Adjustment Non-GAAP
                                       Result               Results   Result               Results   Result               Results   Result               Results   Result                Results
Operating profit                       2,297,277 46,641     2,343,918 3,296,879 56,720     3,353,599 2,848,085 66,565     2,914,650 7,576,659 152,028    7,728,687 11,051,320 212,309    11,263,629
                                       Three months ended December    Three months ended September   Three months ended December    Twelve months ended December   Twelve months ended December 31,
                                       31, 2011                       30, 2012                       31, 2012                       31, 2011                       2012
                                       GAAP      Adjustment Non-GAAP  GAAP      Adjustment Non-GAAP  GAAP      Adjustment Non-GAAP  GAAP      Adjustment Non-GAAP  GAAP       Adjustment Non-GAAP
                                       Result               Results   Result               Results   Result               Results   Result               Results   Result                Results
NetincomeattributabletoBaidu,Inc. 2,053,670 46,641     2,100,311 3,007,701 56,720     3,064,421 2,795,482 66,565     2,862,047 6,638,637 152,028    6,790,665 10,456,028 212,309    10,668,337
(*) The adjustment is only for share-based compensation.



Reconciliation from net cash provided by operating activities to adjusted EBITDA(*) (in RMB thousands,
unaudited)
             Three     As a %   Three     As a %   Three     As a %    Twelve    As a %    Twelve     As a %
             months    of       months    of       months    of        months    of        months     of
             ended              ended              ended               ended               ended
             December  total    September total    December  total     December  total     December   total
             31, 2011  revenues 30, 2012  revenues 31, 2012  revenues  31, 2011  revenues  31, 2012   revenues
Net cash
provided by  3,357,790 75%      3,779,180 61%      3,396,282 54%       8,178,819 56%       12,582,618 56%
operating
activities
 Changes
in assets
and
liabilities, (973,970) -22%     (360,530) -6%      (136,513) -2%       (521,561) -4%       (545,055)  -2%
net of
effects of
acquisitions
 Income
taxes        404,492   9%       467,699   8%       539,909   8%        1,188,861 8%        1,574,159  7%
expenses
 Interest
income and   (148,700) -3%      (162,313) -3%      (475,342) -8%       (232,520) -2%       (914,117)  -4%
other, net
Adjusted     2,639,612 59%      3,724,036 60%      3,324,336 52%       8,613,599 58%       12,697,605 57%
EBITDA
(*) Definition of adjusted EBITDA: earnings before interest,
taxes, depreciation, amortization, other non-operating
income, and share-based compensation expenses.



SOURCE Baidu, Inc.

Website: http://www.baidu.com
 
Press spacebar to pause and continue. Press esc to stop.