Xiaomi Corporation Class B · HKEX:1810
Xiaomi Corporation Class B — Q1 2020 Earnings Presentation
39 slides from Xiaomi Corporation Class B's earnings presentation, May 20, 2020
Slide 1: Xiaomi Corporation Q1 2020 Results Announcement
Xiaomi Corporation Q1 2020 Results Announcement
Slide 2: Disclaimer
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 su
Slide 3: Revenue
Revenue RMB billion YoY % In Q1 2020 49.7 Total revenue was RMB49.7 billion, up 13.6% YoY 43.8 Adjusted net profit! was RMB2.3 billion, up 10.6% YoY Smartphones revenue grew 12.3% YoY loT and lifestyle products revenue grew 7.8% YoY Internet services revenue grew 38.6% YoY Q1 2019 Q1 2020 @ Smartpho
Slide 4: Global smartphone shipments increased against market downtrend in Q1 2020
Our global smartphone shipments increased against market downtrend in Q1 2020, with the highest growth among major smartphone companies Million units Worldwide smartphone shipments and market share Vendor Q1 2020 Shipment Volume Q1 2020 Market Share Q1 2019 Shipment Volume Q1 2019 Market Share YoY S
Slide 5: Mainland China business demonstrated resilience during the pandemic
Our mainland China business demonstrated resilience during the pandemic Mainland China Xiaomi smartphone & smart TV shipments trend! 100% Our mainland China smartphone and smart TV shipments rebounded rapidly after the dip in February Jan Feb Mar ——Smartphones —Smart TV ‘As % of January shipments
Slide 6: Short-term impact of COVID-19 on our business
Short-term impact of COVID-19 on our business Mainland China Mainland China smartphone market gradually returned to normal level in March 2020 Our business was severely impacted by India’s strict lockdown starting in late March Since May, India has resumed production and retail operations in phases.
Slide 7: Overseas smartphone business recovering from the pandemic
Overseas smartphone business recovering from the pandemic Overseas smartphone activation trend! 100% In Europe, smartphone activation has returned to over 90%? of the pre-pandemic level In Southeast Asia and Middle East, smartphone activation has already surpassed the pre-pandemic level? " Daily ave
Slide 8: Mi 10/10 Pro
Mi 10/10 Pro Mainland China: launched on February 13 with prices starting at RMB3,999/4,999 Overseas: launched on March 27 with prices starting at EUR799/999 The launch of Mi 10 Series solidified our position in the premium market Mi 10 Pro ranked No.1 in overall camera, photo, video and audio score
Slide 9: Overseas revenue contributed to 50% of total revenue, setting a record high
Overseas revenue contributed to 50% of total revenue, setting a record high Revenue breakdown RMB billion Overseas revenue reached RMB24.8 billion in Q1 2020, up 47.8% YoY, contributing to 50.0% of total revenue Q1 2019 Q1 2020 @ Mainland China Mi Overseas
Slide 10: Smartphones
Smartphones
Slide 11: Smartphones: In Q1 2020
In Q1 2020 Smartphone revenue reached RMB30.3 billion, up 12.3% YoY Smartphone shipments reached 29.2 million units Smartphone revenue RMB billion 27.0 Q1 2019 Q1 2020 10
Slide 12: Introduced highly competitive products at key price points
Introduced highly competitive products at key price points to gain 5G smartphone market share RMB . | | Xiaomi ranked Top 32 in the RMB4,000-6,000 4,999 | | premium segment by sales volume = | iMi 10 Pro. | 3,999 a, 1 | 1 | i | 1 | 1 | | 2,999 | Mi 10 (< Redmi K30 Pro Series 1,999 ( Mi 10 Lite 5G Se
Slide 13: Smartphone ASP recorded 7.2% YoY growth in Q1 2020
Our smartphone ASP recorded 7.2% YoY growth in Q1 2020 5G smartphone rollouts have boosted our mainland China smartphone ASP Mainland China smartphone ASP RMB 18.7% Overseas smartphone ASP RMB Q1 2019 Q1 2020 Q1 2019 Q1 2020 12
Slide 14: MIUI technological breakthrough
MIUI 12 technological breakthrough Remarkable animation and visualized user interface powered by proprietary technologies Enhanced privacy protection with multiple renowned privacy certificates 13
Slide 15: AIoT
AloT
Slide 16: IoT and lifestyle products: In Q1 2020
In Q1 2020 loT and lifestyle product revenue reached RMB13.0 billion, up 7.8% YoY loT and lifestyle product revenue RMB billion 13.0 12.0 Q1 2019 Q1 2020 15
Slide 17: Global leading consumer AIoT platform
Global leading consumer AloT platform ser © @& 252.0 million 4.6 million 70.5 million 40.0 million Connected devices’ Users with 5 or more devices Al assistant MAU Mi Home APP MAU YoY growth of 42.6% connected to Xiaomi’s loT platform’ YoY growth of 54.9% YoY growth of 53.4% YoY growth of 67.9% ‘As
Slide 18: Global smart TV shipments in Q1 2020
Global smart TV shipments in Q1 2020 reached global TV market units, up 3.0% despite a decline in Ranked in mainland China for 5 consecutive quarters’ Launched Redmi Smart TV MAX with an enormous ‘ According to AVC, by shipments in Q1 2020 screen in March 2020, priced at RMB19,999 17
Slide 19: Key IoT products maintained strong growth
Key loT products maintained strong growth despite large home appliances being impacted by the pandemic or -& — ~~) Product \S Xiaomi TWS Earbuds Xiaomi WiFi Router Mi Band Mi Electric Scooter Mi Robot Vacuum Cleaner No.3 globally? No.2 in mainland China? No.1 globally* No.1 globally® No.2 in mainlan
Slide 20: Internet Services
Internet Services
Slide 21: Internet services: In Q1 2020
In Q1 2020 Internet service revenue reached RMB5.9 billion, up 38.6% YoY Internet service revenue RMB billion YoY % 38.6% Q1 2019 Q1 2020 @ Advertising ® Online games @ Other internet value-added services 20
Slide 22: Global MIUI MAU reached 330.7 million
Global MIUI MAU' reached 330.7 million, an increase of 26.7% YoY Mainland China MIUI MAU’ was 111.5 million TV MAU? grew 46.8% YoY to 30.4 million, paid users reached 4.3 million, up 53.7% YoY ‘As of March in respective quarters ? As of March in respective quarters, including both TV and TV box user
Slide 23: Advertising business remained solid despite challenging environment
Advertising business remained solid despite challenging environment Advertising revenue RMB billion Advertising revenue increased 16.6% YoY in Q1 2020, mainly driven by: 16.6% Jaman * diversified monetization methods, including search, pre-installation, and news feeds * diversification of advertisin
Slide 24: Gaming business delivered strong revenue growth
Gaming business delivered strong revenue growth, benefiting from: * fast-growing online gaming market in mainland China in Q1 2020 * increased gaming ARPU from our premium smartphones Gaming revenue RMB billion 80.5% 1.5 Q1 2019 Q1 2020 23
Slide 25: Increasingly diversified revenue streams driving sustained revenue growth
Increasingly diversified revenue streams driving sustained revenue growth Internet services revenue RMB billion In Q1 2020, 38.1% of internet services revenue > was from internet services 30.898 outside of advertising and . . . 4.3 5.9 gaming from mainland China smartphones, a YoY growth of 71.5% Q1
Slide 26: Overseas
Overseas
Slide 27: Overseas revenue in Q1 2020
Overseas revenue in Q1 2020 was RMB24.8 billion, up 47.8% YoY, accounting for 50.0% of total revenue Overseas revenue RMB billion 47.8% 24.8 16.8 Q1 2019 Q1 2020 26
Slide 28: Overseas smartphone shipments achieved remarkable growth
Overseas smartphone shipments achieved remarkable growth Q1 2020 Xiaomi smartphone shipments YoY growth Africa Source: Canalys 27
Slide 29: Strong growth in Western Europe; No.1 in Spain for the first time
Achieved strong growth against market downtrend in Western Europe, and ranked No.1 in Spain for the first time Western Europe smartphone market share Rank Vendor Q1 2020 Market share Shipment YoY Growth #1 Samsung 37% -21% #2 Apple 24% -8% #3 Huawei 18% 40% #4 Xiaomi 10% Ci% > Total 100% -19% Spain
Slide 30: India's No.1 smartphone brand, driving growth in adjacent markets
India’s No.1 smartphone brand, driving growth in adjacent markets India smartphone market share Nepal smartphone market share 31.2% 30.9% 29.0% 14.0% Q1 2019 Q1 2020 Q1 2019 Q1 2020 Continued market share expansion in India Ranked No.1 in Nepal smartphone market with market share of 30.9%, equal to
Slide 31: Financials
Financials
Slide 32: Solid operating profitability
Solid operating profitability Revenue Gross profit RMB billion SEs” RMB billion AA, _SEs” 43.8 49. — Q1 2019 Q1 2020 Q1 2019 Q1 2020 Gross profit less operating expenses Adjusted net “aos” RMB billion RMB billion Include FX loss of RMB503 million 109.6% _SS” 6% 2.3 V a [ Q1 2019 Q1 2020 Q1 2019 Q1 2
Slide 33: Continued gross margin expansion
Continued gross margin expansion Overall gross margin trend 15.2% Gross margin by segments in Q1 2020 * Smartphones 8.1% * loT and lifestyle products 13.4% * Internet services 57.1% Q1 2019 Q4 2019 Q1 2020 32
Slide 34: Effective expense control during the pandemic
Effective expense control during the pandemic Operating expenses Operating expense ratio RMB billion 6.9 12.1% : ; : Q4 2019 Q1 2020 Q4 2019 Q1 2020 33
Slide 35: Efficient working capital management
Efficient working capital management AR turnover days Inventory turnover days AP turnover days 121 71 65 96 : ; i; Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 34
Slide 36: Increase in inventory turnover days was mainly due to the pandemic
Increase in inventory turnover days was mainly due to the pandemic Raw materials inventory increased because of the production disruption in Q1 2020, driving up the inventory balance Finished goods inventory declined, with a shortage in supply 1 Excluding provision for impairment Inventory breakdown
Slide 37: Xiaomi had invested in over 300 companies as of Q1 2020
300+ Xiaomi had invested in over 300 companies as of Q1 2020 RMB32.3 billion Investment carrying amount! as of Q1 2020, YoY growth of 11.4% Kingsoft Cloud successfully listed on Nasdaq USD4.8 billion 13.8% Kingsoft Cloud Xiaomi’s stake? market capitalization? "Includes long-term investments measured
Slide 38: Xiaomi is in the rapid growth stage, facing pandemic challenges this year
Xiaomi is in the rapid growth stage, facing challenges of the pandemic this year Smartphones and loT products demands are resilient. Xiaomi has been comparatively less impacted by the pandemic due to our advantages in online channels, value proposition of high price-performance and diversified busin
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