Xiaomi Corporation Class B · HKEX:1810
Xiaomi Corporation Class B — Q1 2021 Earnings Presentation
41 slides from Xiaomi Corporation Class B's earnings presentation, May 27, 2021
Slide 1: Xiaomi Corporation Q1 2021 Results Announcement
Xiaomi Corporation Q1 2021 Results Announcement
Slide 2: Disclaimer
By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by representatives of Xiaomi Corporation (the “Company”, and together with its subsidiaries,
Slide 3: Q1 2021 total revenue RMB76.9 billion, up 54.7% YoY
Revenue Adjusted net profit RMB billions RMB billions In Q1 2021 54.7% 163.8% 76.9 6.6 6.1 Total revenue was RMB76.9 billion, up 54.7% YoY 18.2 49.7 Adjusted net profit1 was RMB6.1 5.9 billion, up 163.8% YoY 13.0 2.3 51.5 Both quarterly total revenue and 30.3 adjusted net profit achieved record high
Slide 4: #3 market share globally with the highest YoY growth in Q1 2021
#3 market share globally with the highest YoY growth1 in Q1 2021 Million units Worldwide smartphone shipments and market share Vendor Q1 2021 shipment volume Q1 2021 market share Q1 2020 shipment volume Q1 2020 market share Shipment YoY growth Samsung 76.5 22.0% 59.6 21.9% 28.4% Apple 52.4 15.1% 37.
Slide 5: Strengthened our position in the premium smartphone market
Strengthened our position in the premium smartphone market Premium smartphone Expanded our premium smartphone portfolio market share1 RMB4,000-6,000 Xiaomi market share % 16.1% 5.5% Mi 11 Mi 11 Pro Mi 11 Ultra Mi MIX FOLD RMB3,999+ RMB4,999+ RMB5,999+ RMB9,999+ Q1 2020 Q1 2021 Total orders for Mi 11
Slide 6: Relentlessly pursue innovative technologies – Mi 11 Ultra
Relentlessly pursue innovative technologies – Mi 11 Ultra Camera & Imaging No.1 DXOMARK camera score • Mi 11 Ultra achieved best overall score across photo and video categories • Jointly developed GN2 sensor, the largest smartphone camera sensor currently on the market Charging Silicon-oxygen anode
Slide 7: Relentlessly pursue innovative technologies – Mi MIX FOLD
Relentlessly pursue innovative technologies – Mi MIX FOLD Camera & Imaging Display Surge C1 image signal processor • Improved algorithm for more accurate auto focus, auto exposure and auto white balance, significantly Flexible 8.01” OLED display improving image quality • Offers an ultra-large 4:3 as
Slide 8: Continued improvements in our online and offline channel capabilities
Continued improvements in our online and offline channel capabilities Online Offline Xiaomi’s online smartphone market share in mainland China1 Offline retail stores % # 38.0% 29.5% 25.7% 5,500+ 19.6% 3,200+ 18.5% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Mi Home in West Lake, Hangzhou Dec 2020 Apr 20
Slide 9: Global new branding efforts
Global new branding efforts New branding identity Brand promotion Mi 11 promotional advertisements The new logo allows more people to feel and recognize Xiaomi’s corporate philosophy, and ultimately take a Dubai London liking to Xiaomi Bangkok Announced new logo and unveiled Invested in brand buildi
Slide 10: Entry into the smart electric vehicles business
Entry into the smart electric vehicles business Our strategy Our ecosystem Structure: Set up a wholly-owned subsidiary to operate the smart EV business Initial Investment: RMB10 billion Mobile USD10 billion over the next 10 years Total Investment: (estimated) Mr. Lei Jun will concurrently serve as C
Slide 11: Updates on DoD litigation
Updates on DoD litigation 2021 Court issued final order to vacate May 25 Xiaomi‘s designation as a CCMC U.S. DoD reported it will not appeal the Apr 27 Court’s preliminary injunction Court granted injunction to remove Mar 12 restrictions on purchasing and holding Xiaomi securities by U.S. persons Xi
Slide 12: Smartphones
Smartphones
Slide 13: Q1 2021 smartphone revenue reached RMB51.5 billion, up 69.8% YoY
Smartphone revenue RMB billions In Q1 2021 69.8% 51.5 Smartphone revenue reached RMB51.5 billion, up 69.8% YoY Smartphone shipments achieved RMB49.4 million units, up 69.1% YoY, a record high 30.3 Smartphone gross margin increased to 12.9% Q1 2020 Q1 2021 13
Slide 14: Continued to improve our market position in mainland China
Continued to improve our market position in mainland China Million units Mainland China smartphone shipments and market share Vendor Q1 2021 shipment volume Q1 2021 market share Q1 2020 shipment volume Q1 2020 market share Shipment YoY growth vivo 21.6 23.3% 12.1 16.6% 78.9% OPPO 20.6 22.2% 12.5 17.
Slide 15: Extending our dual brand strategy to targeted markets
Extending our dual brand strategy to targeted markets Mi MIX FOLD Mi 11 Lite Redmi K40 Gaming RMB9,999+ RMB2,299+ RMB1,999+ Business executives & Young generation & Gamers power users female users Launched differentiated products to target new users in key market segments 15
Slide 16: AIoT
AIoT
Slide 17: Q1 2021 IoT and lifestyle product revenue reached RMB18.2 billion
IoT and lifestyle product revenue RMB billions 18.2 In Q1 2021 IoT and lifestyle product revenue reached RMB18.2 billion, up 40.5% YoY 13.0 Q1 2020 Q1 2021 17
Slide 18: Global leading consumer AIoT platform
Global leading consumer AIoT platform 351.1 million 6.8 million 93.0 million 49.2 million Connected devices1 Users with 5 or more devices AI assistant MAU2 Mi Home App MAU2 Up 35.6% YoY connected to Xiaomi’s AIoT platform1 Up 31.9% YoY Up 22.8% YoY Up 48.9% YoY 1 As of March 31, 2021, excluding smar
Slide 19: Upgraded our IoT product portfolio
Upgraded our IoT product portfolio Computing Connectivity & peripherals Mi Laptop Pro 15” Mi Router AX9000 Mi Multi-coil Wireless Charging Pad E4 OLED + 9,000Mbps Charges 3 devices 3.5K resolution display 5GHz Esports spectrum simultaneously Smart home Mi Smart AC with Ventilation Mi Robot Vacuum Pr
Slide 20: Mi Smart AC with Ventilation
Mi Smart AC with Ventilation • Dual-hybrid turbine system with fresh air volume of up to 60m³/h. • Achieving 99.9% sterilization of the air in the entire house using UV-C deep ultraviolet sterilization • A miniature health screen displays the concentration of carbon dioxide in the room in real-time
Slide 21: AIoT leadership across key categories in mainland China
AIoT leadership across key categories in mainland China Smart TV Video Entertainment Ranked No. 1 Market share 18.4% 1 Mi band TWS Earbuds Wearables Ranked No. 2 Ranked No. 3 Market share 37.5% 2 Market share 14.8% 2 Air Purifier Robot Vacuum Cleaner Appliances Ranked No. 1 Ranked No. 2 Market share
Slide 22: Overseas IoT business maintained high growth potential
Overseas IoT business maintained high growth potential Revenue Product expansion Overseas IoT and lifestyle product revenue Mi 360 Home Security Camera 2K Pro 81.1% Mi TV Q1 75‘‘ Mi Smart Clock Mi Electric Scooter Pro 2 Mercedes-AMG Petronas F1 Team Edition Mi Smart Projector 2 Pro Q1 2020 Q1 2021 M
Slide 23: Internet Services
Internet Services
Slide 24: Q1 2021 Internet services revenue reached RMB6.6 billion, up 11.4% YoY
Internet services revenue RMB billions YoY % QoQ % In Q1 2021 11.4% Internet services revenue reached RMB6.6 6.6 billion, up 11.4% YoY 5.9 1.6 -8.6% -2.5% Quarterly advertising revenue reached 1.8 historical high 1.1 -27.6% 24.8% 1.5 Gaming revenue decreased due to strong industry performance during
Slide 25: Strong user growth
Strong user growth MIUI MAU1 Mainland China MIUI MAU1 Millions Millions 28.6% 6.4% Global MIUI MAU1 reached 425.3 million, an increase of 28.6% YoY Mainland China MIUI MAU1 in 425.3 118.6 Q1 2021 reached 118.6 million 330.7 111.5 Q1 2020 Q1 2021 Q1 2020 Q1 2021 1As of March in respective quarters 25
Slide 26: Continued to expand our smart TV internet services
Continued to expand our smart TV internet services User expansion Diversified services offerings TV MAU1 Millions 34.0%+ Q1 2020 Q1 2021 Advertisement Subscription On-demand service Continue to offer diversified value added services Our TV MAU1 grew over 34.0% YoY in Q1 2021 including video entertai
Slide 27: Huge growth potential for overseas internet services
Huge growth potential for overseas internet services Revenue User expansion Overseas internet services revenue Western Europe MIUI MAU1 50.0% 95.5% Q1 2020 Q1 2021 Q1 2020 Q1 2021 Overseas internet services revenue increased by 50.0% YoY in Q1 2021, accounting for 13.8% Rapid MIUI MAU growth in key
Slide 28: Overseas
Overseas
Slide 29: Overseas revenue reached RMB37.4 billion in Q1 2021, up 50.6% YoY
Q1 Revenue breakdown RMB billion 48.7% 50.0% Overseas revenue reached 49.7 76.9 RMB37.4 billion in Q1 2021, up 50.6% YoY, contributing 50.0% to 48.7% of total revenue 51.3% Q1 2020 Mainland China Overseas Q1 2021 29
Slide 30: Smartphone market share ranked No. 1 in 12 markets and top 5 in 62
Smartphone market share ranked No. 1 in 12 markets and top 5 in 62 markets No.1 Spain India Russia Ukraine Poland Belarus Croatia Nepal Myanmar Malaysia Colombia Lithuania No.2 Italy Portugal Greece Mexico Peru Ecuador Qatar Turkey Chile Czech Republic Hungary Latvia Romania Slovakia Thailand Morocc
Slide 31: Achieved significant scale in key overseas markets
Achieved significant scale in key overseas markets 2021 Q1 Xiaomi smartphone market share & ranking Ranking improved No. 2 22.7% Europe No.3 No.2 14.3% 17.5% Middle East APAC (ex. Greater No.3 No.4 China) 11.5% 7.2% Latin America Africa No.1 28.3% India Source: Canalys 31
Slide 32: Ranked No. 2 in Europe for the first time
Ranked No. 2 in Europe for the first time Europe smartphone market share Rank Vendor Q1 2021 market share Shipment YoY growth #1 Samsung 34.7% 21.1% #2 Xiaomi 22.7% 85.1% #3 Apple 18.9% 22.3% #4 OPPO 3.6% 153.0% Total 100% 16.5% Spain #1 Italy #2 France #3 Germany #3 Market share 35.1% 25.2% 20.9% 1
Slide 33: Continued to expand our overseas channels
Continued to expand our overseas channels Carrier channel Online channel Xiaomi’s smartphone market share in Western Europe carrier channels1 % 11.3% 7.4% 4.9% Q1 2020 Q4 2020 Q1 2021 Covered 150+ carrier channels worldwide2 Overseas (excluding India) smartphone Overseas (excluding India) smartphone
Slide 34: Financials
Financials
Slide 35: Revenue by segment
Revenue by segment Total revenue RMB billions YoY % QoQ % 54.7% 9.1% 76.9 70.5 49.7 Q1 2020 Q4 2020 Q1 2021 Smartphone revenue IoT and lifestyle product revenue Internet services revenue RMB billions YoY % QoQ % RMB billions YoY % QoQ % RMB billions YoY % QoQ % 69.8% 20.8% 40.5% -13.4% 11.4% 6.4% 51
Slide 36: Gross margin by segment
Gross margin by segment Overall gross margin 18.4% 15.2% 16.1% Q1 2020 Q4 2020 Q1 2021 Smartphone gross margin IoT and lifestyle products gross margin Internet services gross margin 12.9% 72.4% 10.5% 13.4% 14.5% 68.4% 12.1% 57.1% 8.1% Q1 2020 Q4 2020 Q1 2021 Q1 2020 Q4 2020 Q1 2021 Q1 2020 Q4 2020 Q
Slide 37: Continued to step up investments in brand building and R&D
Operating expense ratio 10.6% 10.6% Continued to step up investments in brand building and R&D R&D expenses increased by 61.0% YoY to RMB3.0 billion in Q1 2021 Expect to recruit another 5,000+ 3.8% 3.9% engineers in 2021 Q1 2020 Q1 2021 R&D expense ratio 37
Slide 38: Adjusted net profit saw strong growth
Adjusted net profit saw strong growth Adjusted net profit RMB billions YoY % QoQ % 163.8% 89.4% 6.1 Adjusted net profit saw steady growth in Q1 2021, reaching a record high of RMB6.1 billion, up 163.8% YoY 3.2 2.3 Q1 2020 Q4 2020 Q1 2021 Adjusted net 4.6% 4.5% 7.9% profit margin 1Defined as profit f
Slide 39: Efficient working capital management
Efficient working capital management AR turnover days Inventory turnover days AP turnover days 111 103 65 15 58 13 Q4 2020 Q1 2021 Q4 2020 Q1 2021 Q4 2020 Q1 2021 39
Slide 40: Additional earnings growth through strategic investments
Additional earnings growth through strategic investments Selected investee companies in 2021 Q1 320+ companies invested as of Q1 2021 After-tax net gains on disposal of investments was RMB0.4 billion in 2021 Q1 Total value of investment1 was RMB69.7 billion HKD3.3 per share2 1 Include (i) fair value
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