Slide 1: Xiaomi Corporation 2019 Annual Results Announcement
Xiaomi Corporation 2019 Annual 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 sub
Slide 3: Xiaomi has achieved tremendous growth since our inception
Xiaomi has achieved tremendous growth 08.8 since our inception Revenue! RMB billion 2010 Xiaomi was founded 174.9 2012 Revenue surpassed RMB10 billion 2014 Revenue surpassed USD10 billion, the fastest ever? CAGR 112%2 2017 Revenue surpassed RMB100 billion 2019 Became the youngest company on Fortune
Slide 4: Revenue (2019)
Revenue RMB billion YoY % In 2019 174.9 Total revenue was RMB205.8 billion, up 17.7% YoY Adjusted net profit! was RMB11.5 billion, up 34.8% YoY 2018 2019 @ Smartphones @ = loT and lifestyle products @ Internet services ™ Others ‘Defined as profit for the period, as adjusted by adding back (i) fair v
Slide 5: Revenue (Q4 2019)
Revenue RMB billion YoY % 56.5 In Q4 2019 44.4 Total revenue was RMB56.5 billion, up 27.1% YoY Adjusted net profit! was RMB2.3 billion, up 26.5% YoY 22.8% Q4 2018 Q4 2019 @ Smartphones @ = loT and lifestyle products @ Internet services ™@ Others ‘Defined as profit for the period, as adjusted by addi
Slide 6: Increasing investments in R&D
Increasing investments in R&D R&D expenses RMB billion >10 Accumulative R&D expenses from 2016 to 2020 expected to surpass CAGR 53% 75 | RMB28.6 billion 5.8 | R&D expenses in 2019 increased 29.7% YoY 3.2 2.1 | R&D expenses in 2020 expected to surpass RMB10 billion L] | 2016 2017 2018 2019 | 2020E
Slide 7: Mi series has achieved success in the premium market
Mi 10 series has achieved success in the premium market Mi 10 Pro Launched on February 13, 2020 8GB+256GB RMB4,999 12GB+256GB RMB5,499 12GB+512GB RMB5,999 Mi 10 Pro is well-received by the market, with shipments exceeding our original target
Slide 8: Mi 10 Pro - Top scores in DXOMARK
Mi 10 Pro - Top scores in DXKOMARK DXOMARK [f 1As of launch MOBILE CAMERA SELFIE AUDIO Huawei Mate 30 Pro 5G 123 Honor V30 Pro 122 Huawei Mate 30 Pro 121 93 60 Xiaomi Mi CC9 Pro Premiu... 121 54 DXQOMARK a “oP MOBILE CAMERA SELFIE AUDIO iaomi Mi 10 Pro 124 76 Huawei Mate 20 X m1 75 Apple iPhone XS M
Slide 9: Inventory turnover days
Inventory turnover days a Prudent operation strategy 54 during the 4G to 5G transition in 2019 positions Xiaomi well to capture 5G opportunities Q4 2018 Q4 2019
Slide 10: Redmi makes high-end technologies readily accessible
Redmi makes high-end technologies readily accessible Redmi K30 5G - Bringing 5G technology to the mass market 5G models in our 2020 pipeline to accelerate 5G penetration Launched on December 10, 2019, with pricing starting from bringing the price of 5G smartphone to below RMB2,000 for the first time
Slide 11: COVID-19 outbreak's short-term impact on our businesses
COVID-19 outbreak’s short-term impact on our businesses Mainland China Overseas Internet services Production was impacted between February and early March, but has resumed to 80%-90% of normal level as of end of March 2020 Offline consumption was affected initially, but demands have seen a quick rec
Slide 12: Smartphone shipments rebounded rapidly from COVID-19 in mainland China
Smartphone shipments rebounded rapidly from COVID-19 in mainland China Mainland China smartphone shipments! Million units 0 f 1 oe 1 1 1 1 1 1 1 , Week 1 Week 2 Week 3 Week 4 Week5 Week6 Week7 Week 8 Week 9 Week 10 Week 11 Week 12 - -— = COVID-19 outbreak ‘According to thirc-party statistics, week 1
Slide 13: Smartphones
Smartphones
Slide 14: Smartphone revenue
Smartphone revenue RMB billion 122.1 2019 smartphone revenue reached 30.8 RMB1 22.1 billion, up 7.3% YoY 113.8 25.1 Smartphone shipments reached 124.6 million units in 2019 Q4 2019 smartphone revenue was RMB30.8 billion, up 22.8% YoY 2018 2019 Q4 2018 Q4 2019 14
Slide 15: Highest growth in smartphone industry in Q4 2019
Highest growth! in smartphone industry in Q4 2019 Million units Smartphone companies, worldwide shipments and market share Company Q4 2019 Shipment Volume Q4 2019 Market Share Q4 2018 Shipment Volume Q4 2018 Market Share YoY Apple 78.4 21.3% 17 19.7% 9% Samsung 70.8 19.2% 69.9 19.2% 1% Huawei 56.0 1
Slide 16: Dual-brand smartphone strategy successfully propelled Xiaomi into the high-end market
Dual-brand smartphone strategy successfully propelled Xiaomi into the high-end market . . . . Redmi offers products with the Xiaomi targets the mid- to high-end ultimate price-performance ratio and diversified user markets across different price points Premium RMB5,000 and above RMB3,000-5,000 Mi CC
Slide 17: AIoT
AloT
Slide 18: IoT and lifestyle product revenue
loT and lifestyle product revenue reached RMB62.1 billion in 2019, up 41.7% from 2018 Q4 revenue was RMB19.5 billion, up 30.5% YoY loT and lifestyle product revenue RMB billion 62.1 43.8 14.9 19.5 2018 2019 Q4 2018 Q4 2019 18
Slide 19: Leading global consumer AIoT platform
Leading global consumer AloT platform ~235 million ~4.1 million Connected devices! Users with 5 or more devices YoY growth of 55.6% connected to Xiaomi’s loT platform! YoY growth of 77.3% ‘As of December 31, 2019, excluding smartphones and laptops 19
Slide 20: No.1 TV brand in mainland China, continuously expanding overseas
No.1 TV brand in mainland China, continuously expanding our presence overseas TV shipments reached ~12.8 million units in 2019, up 51.9% YoY No.1 TV brand in mainland China: Xiaomi set an unprecedented record of achieving over 10 million annual shipments, accounting for 20%! of market share No.1 sma
Slide 21: Xiaomi ranked No.1 in global wearable band markets
Xiaomi ranked No.1 in global wearable band markets by shipments in 2019 Million units Global top 5 wearable band companies by shipment volume Company 2019 Shipment Volume 2019 Market Share 2018 Shipment Volume 2018 Market Share YoY Xiaomi 35.6 ¢ 21.2% ) 22.9 19.9% 55% Apple 27.3 16.2% 21.2 18.4% 29%
Slide 22: MAU of AI Voice Assistant
= MAU of Al Voice Assistan reached Tal December 2019, up YoY
Slide 23: Internet Services
Internet Services
Slide 24: Internet services revenue
Internet services revenue RMB billion YoY % YoY % 24.4% ; 16.0 Internet services revenue 2 8% 104.0% reached RMB19.8 billion ; 4.0 in 2019, up 24.4% YoY UGE 0.9 44.4% 0.6 Q4 2019 revenue was RMB5.7 billion, up 41.1% YoY Ee FF 17.8% 2018 2019 Q4 2018 Q4 2019 @ Advertising ® Online games @ Advertising
Slide 25: Strong user growth
Strong user growth MIUI MAU TV MAU2 million million 49.1% Global MIUI MAU! reached 309.6 27.7 309.6 million, an increase of 27.9% YoY 242.1 18.6 Mainland China MIU] MAU! was 109.0 million TV MAU? grew 49.1% YoY to 27.7 million 2018 2019 2018 2019 ‘In December as of respective years In December as of
Slide 26: Advertising revenue
Advertising revenue increased quarter by quarter in 2019 amid challenging environment in China Advertising revenue RMB billion 3.0 2.9 2.5 2.3 Q1 2019 Q2 2019 Q3 2019 Q4 2019 26
Slide 27: Increasingly diversified revenue streams driving sustained revenue growth
Increasingly diversified revenue streams driving sustained revenue growth Internet services revenue RMB billion In Q4 2019, ~43.0% of internet services revenue was from internet services outside 40 of advertising and gaming from mainland China smartphones, with YoY growth of 112.6% Q4 2018 Q4 2019 =
Slide 28: Overseas
Overseas
Slide 29: Expanding our global footprint
Expanding our global footprint - Strong growth momentum in overseas markets Revenue breakdown RMB billion Smartphones sold in 90+ markets Ranked top 5 by smartphone shipments in 45 markets! Overseas revenue reached RMB91.2 billion in 2019, up 30.4% YoY 2018 @ Mainland China 2019 @ Overseas ‘In 2019,
Slide 30: Overseas revenue
Overseas revenue RMB billion 40.7% Overseas revenue in Q4 2019 was RMB26.4 billion, up 40.7% YoY, 18.8 accounting for 46.8% of total revenue 26.4 Q4 2018 Q4 2019 30
Slide 31: India's No.1 Smartphone Brand
Source: IDC India’s No.1 Smartphone Brand 10 consecutive quarters: Q3 2017 to Q4 2019 Q4 2019 market share: 29% 31
Slide 32: Further expanding our market share in Western Europe
Further expanding our market share in Western Europe Western Europe smartphone market share Spain smartphone market share Q4 2019 Shipments Q4 2019 Shipments Rank Vendor Market Share YoY Growth Rank Vendor Market Share YoY Growth #1 Apple 37% 24% #1 Samsung 24% 11% #2 Samsung 31% 7% #2 Xiaomi 23% 66
Slide 33: Financials
Financials
Slide 34: Gross margins by segment increased in 2019
Gross margins by segment increased in 2019 Internet services loT and lifestyle products Smartphone aw ee aad 62.9% 63.7% —_———— 11.2% ——___—— 10.3% 10.6% 9.4% = — ~ 6.2% 7.2% 6.1% 7.8% 2018 2019 Q4 2018 Q4 2019 34
Slide 35: Operating expense ratio
Operating expense ratio 10.2% 9.1% Operating expense ratio increased due to continuous investment in R&D and brand building overseas R&D expenses increased 29.7% YoY in 2019 2018 2019 @ R&D expense ratio 35
Slide 36: Healthy working capital with a decline in inventory turnover days
Healthy working capital with a decline in inventory turnover days AR turnover days Inventory turnover days AP turnover days N\, 115 65 101 ; Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q4 2018 Q4 2019 14 13 36
Slide 37: Strong cash flow performance
Strong cash flow performance 2019 adjusted operating cash flow Q4 2019 adjusted operating cash flow RMB billion RMB billion a 11.3 23.8 —_ —_ for fintech! for fintech' Net cash generated Adjusted operating Net cash generated Adjusted operating from operating activities cash flow from operating activ
Slide 38: Adequate cash and assets enable us to weather through volatile markets
Adequate cash and assets enable us to weather through volatile markets Cash resources! RMB66.0 billion + Book value of investment portfolio? a RMBSO. / billion Bohs tell Gi ils Yearly increased RMB24, 9 billion and other real estate? RMB11.3 billion Financial debt RMB17.6 billion ‘The cash resources
Slide 39: The first Xiaomi ecosystem company listed on STAR market
The first Xiaomi ecosystem company listed on STAR market Roborock was the first Xiaomi ecosystem 2 : company listed on Shanghai Stock Exchange UG K >| Fs Science and Technology Innovation Board TK FP. EBA Ae (STAR market), indicating that Xiaomi’s ' ecosystem business model is recognized by the Chin
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