Slide 1: Xiaomi Corporation Q3 2020 Results Announcement
Xiaomi Corporation Q3 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 and Adjusted net profit
Revenue Adjusted net profit RMB billions RMB billions In Q3 2020 799 Total revenue was RMB72.2 4.1 billion, up 34.5% YoY 53.7 3.5 Adjusted net profit! was RMB4.1 billion, up 18.9% YoY Both quarterly total revenue and adjusted net profit were highest ever in history Q3 2019 Q3 2020 Q3 2019 Q3 2020 @
Slide 4: #3 market share globally with the highest YoY growth in Q3 2020
#3 market share globally with the highest YoY growth’ in Q3 2020 Million units Worldwide smartphone shipments and market share Vendor Q3 2020 shipment volume Q3 2020 market share Q3 2019 shipment volume Q3 2019 market share Shipment YoY growth Samsung 80.2 23.0% 78.9 22.4% 1.7% Huawei 51.7 14.9% 66.
Slide 5: Continue to execute our dual-brand strategy
Continue to execute our dual-brand strategy, with successful entry into the premium smartphone market Re! Dus © Mi 10 Ultra Mi 10 Pro m, SA Premium smartphone shipments exceeded 8 million units globally’ ‘Smartphones with mainland China major retail price at RMB3,000 and above or with overseas major
Slide 6: Relentless pursuit of innovations - camera and charging technologies
Relentless pursuit of innovations - camera and charging technologies be By a &) Global No.1" Global No.1" Global No.1" ey fc) 99 Cuewns,. )--- &)- HEEIRDRER': & MIX 2S MIX 3 Mi 9/9 Pro MiCC9 Pro Mi 10 Pro Mi 10 Ultra Released solution On Oct 19 Wireless charging 7.5W 10W 20/30W SOW 80w power World's
Slide 7: Relentless pursuit of innovations - Xiaomi Smart Factory
Relentless pursuit of innovations - Xiaomi Smart Factory es a : —" ——— o ! Lights-out factory Laboratory Manufacturing process 4 innovation 7 = i . ‘ - Automated production line * R&D for novel materials and * R&D for smart manufacturing = J = - Annual production capacity of one process technology e
Slide 8: Strengthened management team
Strengthened management team* Smartphone Corporate functions NPV [A @. 2 Wang Zeng Xuezhong Chang Cheng Peng Zhibin Alain Lam VP & President of VP. VP & CHO Smartphone VP & CFO “Group VPs joined in 2020
Slide 9: Smartphones
Smartphones
Slide 10: #3 market share globally by shipments
#3 market share globally by shipments’ Smartphone revenue RMB billions In Q3 2020 47.6 Smartphone revenue reached RMB47.6 billion, up 47.5% YoY Smartphone shipments achieved 46.6 32.3 million units, a record high Q3 2019 Q3 2020 ‘According to Canalys, by shipments in Q3 2020
Slide 11: Gained market share in mainland China and overseas markets
Gained market share in mainland China and overseas markets Million units Mainland China smartphone shipments and market share Vendor Q3 2020 shipment volume Q3 2020 market share Q3 2019 shipment volume Q3 2019 market share Shipment YoY growth Huawei 34.2 41.2% 41.5 42.5% -17.5% Vivo 15.3 18.4% 17.5
Slide 12: Mainland China online smartphone market share
Mainland China online smartphone market share’ % Continued to expand online smartphone market share in mainland China C€ 25.7% > During the Singles’ Day Shopping Festival, 18.5% 19.6% we ranked No.1 in sales volume among Android smartphones on JD.com, Tmall.com and Suning.com? Q1 2020 Q2 2020 Q3 202
Slide 13: Mainland China smartphone ASP and Overseas smartphone ASP
Mainland China smartphone ASP Overseas smartphone ASP Our smartphone ASP recorded 1.6% YoY growth in Q3 2020 Mainland China smartphone ASP continued to increase, driven by strong growth of premium smartphones Overseas smartphone ASP decreased slightly due to a change in product mix, with global ship
Slide 14: Successful entry into the premium smartphone market
Successful entry into the premium smartphone market while making 5G technology accessible to the mass market Key mainland China smartphone models Retail price’ RMB 5,000 4,000 3,000 2,000 1,000 1At the time of launch Mi 10 Ultra yy M10 Pro Bi iio Redmi K30 series - Redmi 10X 5G Strengthened premium
Slide 15: AIoT
AloT
Slide 16: IoT and lifestyle product revenue
loT and lifestyle product revenue RMB billions 18.1 In Q3 2020 56 loT and lifestyle product revenue reached RMB18.1 billion, up 16.1% YoY, recovering from the impact of the pandemic Q3 2019 Q3 2020 15
Slide 17: Global leading consumer AIoT platform
Global leading consumer AloT platform & “oon? 2 ® 0. @ Mm », bad wJ © -e® 289.5 million 5.6 million 78.4 million 43.1 million Connected devices’ Users with 5 or more devices Al assistant MAU Mi Home App MAU? Up 35.8% YoY connected to Xiaomi’s AloT platform’ Up 35.5% YoY Up 34.2% YoY Up 59.0% YoY ‘As
Slide 18: Strengthened our position in premium TV market
Strengthened our position in premium TV market WY wt Xiaomi TV Master Mi TV LUX Transparent Mi TV LUX 82” Mi TV LUX 82” Pro 65” OLED TV Edition RMB12,999 RMB49,999 RMB9,999 RMB49,999 Global smart TV shipments in Q3 2020 reached 3.1 million units Ranked No.1 in mainland China for 7 consecutive quarte
Slide 19: Overseas IoT and lifestyle product revenue up 56.2% YoY
Overseas loT and lifestyle product revenue up 56.2% YoY moccce , Overseas sales exceeded Leen mainland China sales Major overseas AloT products Mi Electric Scooter : Xiaomi TWS Earbuds ' Mi Robot Vacuum Cleaner Mi Air Purifier Market position No.1 globally" No.1 globally? No.2 globally" No.2 in main
Slide 20: Internet Services
Internet Services
Slide 21: Internet services revenue in Q3 2020
In Q3 2020 Internet services revenue reached RMB5.8 billion, up 8.7% YoY Quarterly advertising revenue reached historical high Record overseas internet services revenue Internet services revenue RMB billions YoY % 5.8 5.3 Q3 2019 Q3 2020 @ Advertising ™ Online games @ Other internet value-added serv
Slide 22: Strong user growth
Strong user growth MIUI MAU? Smart TV MAU2 millions millions Global MIUI MAU! reached 368.2 368.2 SE 35.5 million, up 26.3% YoY 291.6 Mainland China MIUI MAU! reached 109.4 million 23.9 Smart TV MAU? grew 49.9% YoY to 35.8 million, with paid subscribers reaching 4.2 million Q3 2019 Q3 2020 Q3 2019 Q
Slide 23: Overseas internet services revenue increased by 75.6% YoY
Overseas internet services revenue increased by 75.6% YoY Rapid growth in overseas internet Mi Browser services revenue driven by expanding user base Overseas internet services revenue accounted for 12.0% of total internet services revenue in Q3 2020 No.1 on Xiaomi smartphones in India, Indonesia an
Slide 24: Overseas
Overseas
Slide 25: Overseas revenue hit record high in Q3 2020
Overseas revenue hit record high in Q3 2020 Overseas revenue RMB billions 5 Overseas revenue reached RMB339.8 billion in Q3 2020, 26.1 up 52.1% YoY Q3 2019 Q3 2020 24
Slide 26: Smartphone market share ranked top in markets
Smartphone market share ranked top 5 in 54 markets, top 3 in 36 markets and #1 in 10 markets Spain Ukraine No.2 QO @ Italy Russia nos () @ France Portugal No.4 @ S Germany Netherlands No.5 () oO Belgium Switzerland Source: Canalys, by shipments in Q3 2020 = Greece Latvia Hungary Romania e Singapore
Slide 27: Ranked Top in Western Europe with YoY growth of 107.3%
Ranked Top 3 in Western Europe with YoY growth of 107.3% in Q3 2020, ranked No.1 in Spain for the third consecutive quarter Western Europe smartphone market share Vendor Q3 2020 market share Shipment YoY growth Samsung 35.8% 56% Apple 248% 134% Xiaomi 13.3% <q 1073% > Huawei 118% -32.3% Others 14.3%
Slide 28: Continued to expand overseas channels - online
Continued to expand overseas channels —- online Mi.com E-commerce platforms > a SSE LF PC Bang good MiNote 10Lite fj @ amazon pas tokopedia WGGearbest Cdiscount = Wishopee Flipkart Mi.com is available in 32 countries Overseas online smartphone shipments and regions as of Q3 2020 (excluding India) re
Slide 29: Continued to expand overseas channels - carriers
Continued to expand overseas channels —- carriers Partnered with 50+ carriers, expanded into 100+ carrier sub-networks of 50 countries Shipments through carrier channels grew 200%+ YoY in the first nine months of 2020 Western Europe smartphone market share in carrier channels doubled to 4.6%! in Q3
Slide 30: Financials
Financials
Slide 31: Revenue by segment
Revenue by segment Total revenue RMB billions YoY % QoQ % <> 72.2 53.7 53.5 L Q3 2019 Q22020 Q3 2020 loT and lifestyle product revenue RMB billions YoY % QoQ % Gp «Dp 18.1 15.6 15.3 7 Q3 2019 Q22020 Q3 2020 Smartphone revenue RMB billions YoY % QoQ % > =D. 323-316 7 Q3 2019 Q22020 Q3 2020 Internet s
Slide 32: Gross margin by segment
Gross margin by segment Overall gross margin 15.3% 14.4% 14.1% Q3 2019 Q22020 Q3 2020 loT and lifestyle products gross margin 12.8% 14.2% 11.4% L Q3 2019 Q22020 Q3 2020 Smartphone gross margin 9.0% 7.2% 8.4% Q3 2019 Q22020 Q3 2020 Internet services gross margin 62.9% 60.3% 60.4% Q3 2019 Q22020 Q3 20
Slide 33: Higher operating leverage
Higher operating leverage Continued to step up investments in brand building and R&D, while overall operating expense ratio declined due to operating leverage Operating expense ratio Q3 2019 Q2 2020 11.2% NY 9.4% Q3 2020 32
Slide 34: Adjusted net profit saw steady growth
Adjusted net profit saw steady growth Adjusted net profit RMB billions YoY % QoQ % a> «>. J Adjusted net profit saw steady growth in 2020, reaching a record high of RMB4.1 billion in Q3, up 18.9% YoY Q3 2019 Q2 2020 Q3 2020 Adjusted net profit margin C 6.5% C 6.3% > ‘Defined as profit for the period
Slide 35: Efficient working capital management
Efficient working capital management AR turnover days Inventory turnover days AP turnover days 72 112 J J ; : ; Q2 2020 Q3 2020 Q2 2020 Q3 2020 Q2 2020 Q3 2020 34
Slide 36: Adequate cash resources and strong operating cash flow performance
Adequate cash resources and strong operating cash flow performance Cash resources! Q3 2020 adjusted operating cash flow RMB billions RMB billions 9.5 Adjustments for fintech? Q3 2019 Q3 2020 Net cash generated from Adjusted operating operating activities cash flow lnclude (i) cash and cash equivalen
Slide 37: Strong investment performance
Strong investment performance Selected investee companies listed since 2018 2018 2019 2020 e @ e Mainland @ranceanc Amlogic 6 China &) ESPRESSIF roe Segway-Ninebot Overseas huamiillYizae Wax a Q2uwe. >< As of Q3 2020, we invested in over 300 companies, after-tax net gains on disposal of investments
Slide 38: Slide 38