Xiaomi Corporation Class B · HKEX:1810

Xiaomi Corporation Class B — Q3 2023 Earnings Presentation

44 slides from Xiaomi Corporation Class B's earnings presentation, Nov 20, 2023

  1. Slide 1: Xiaomi Corporation Q3 2023 Results Announcement

    Xiaomi Corporation Q3 2023 Results Announcement

  2. 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

  3. Slide 3: Q3 2023 Overall Financial Highlights

    Q3 2023 Overall Financial Highlights RMB % Gross Profit Revenue 70.9 billion Margin 22.7% 0.6% YoY 6.1ppt YoY RMB Adjusted RMB Net Profit1 6.0 billion Cash 182.9% YoY Resources3 127.6 billion Including expenses related to smart 35.4% YoY EV and other new initiatives2 RMB1.7 billion 1 Defined as prof

  4. Slide 4: Q3 2023 Overall Business Highlights

    Q3 2023 Overall Business Highlights #3 698.9 million Global AIoT Connected Devices2 Market Share Ranking1 25.2% YoY AIoT 13.7 million 14.1% Users with 5 or More Global Market Share1 Connected Devices2 26.0% YoY Smartphones 55 markets Ranked Top 31 623.1 million Global MIUI MAU3 Internet 10.5% YoY 65

  5. Slide 5: Strategy Upgrade

    Strategy Upgrade

  6. Slide 6: Xiaomi's Goal for the Next Decade and Technology Philosophy

    Xiaomi’s Goal for the Next Decade and Technology Philosophy Goal for the Next Decade 2020-2030 Committed to sustainable investments in foundational core technologies, dedicated to becoming a leader in the evolving realm of global cutting-edge technologies Xiaomi Technology Philosophy Continuously in

  7. Slide 7: Strategy Upgrade: Human x Car x Home

    Strategy Upgrade: Human x Car x Home Human x Car x Home All your needs in one smart ecosystem 7

  8. Slide 8: Xiaomi HyperOS: 13 Years of Exploration

    Xiaomi HyperOS: 13 Years of Exploration Mobile OS Embedded OS Self-Developed OS In-Car OS 2010 Birth of MIUI Unified IoT device 2014 connection protocol Cross-platform quick app 2016 framework activated 2017 Introduction of Xiaomi Vela Pre-development of 2019 Xiaomi Mina OS Development of the 2021 o

  9. Slide 9: Xiaomi HyperOS: a Human-centric Operating System

    Xiaomi HyperOS: a Human-centric Operating System Designed for Human x Car x Home Ecosystem Comprehensive Refactoring: Optimize performance for individual device Cross-Device Intelligent Connectivity: Create seamless cross end-device connections Proactive Intelligence: Serve as an intelligence hub de

  10. Slide 10: IoT Open Platform

    IoT Open Platform Smart Device Partners Home Industry Partners Individual Developers Open Access to Extend Connectivity O p e n - S our c e Full Access Over 200 Categories Standards the Vela System 10

  11. Slide 11: Business and Financial Highlights

    Business and Financial Highlights

  12. Slide 12: Global Smartphone Shipments Market Share Increased for 3 Consecutive Quarters

    Global Smartphone Shipments Market Share Increased for 3 Consecutive Quarters Q3 2023 Shipments YoY Shipments Global Smartphone Vendor Q3 2023 Market Share (Million Units) Changes Shipments and Market Share Samsung 58.6 19.9% -8.5% 60.0 14.1% 12.9% 14.0% Apple 50.0 17.0% -5.5% 50.0 11.3% 41.5 11.2%

  13. Slide 13: Market Share Increased in All Major Markets Globally in Q3 2023

    Market Share Increased in All Major Markets Globally in Q3 2023 Q3 2023 Smartphone Shipments Ranking and Market Share +2.1% +1.2% No.2 No.3 23.3% +0.6% +0.2% Europe No.5 14.1% No.3 13.6% Global 17.7% Mainland China Middle East +1.8% No.3 +0.7% No.3 14.9% 18.3% No.3 Southeast Latin America 10.7% No.2

  14. Slide 14: Xiaomi 14 Series: Our New Flagship

    Xiaomi 14 Series: Our New Flagship with Enhanced Technologies and Xiaomi HyperOS Launched in Mainland China in October 2023 Industry-leading ƒ/1.42 - Leica Summilux ƒ/4.0 Variable Aperture Optical Lenses Capability Xiaomi HyperOS World’s First Unleashing the Full Snapdragon® 8 Gen 3 Performance Pote

  15. Slide 15: Steadfast Execution of Smartphone Premiumization Strategy

    Steadfast Execution of Smartphone Premiumization Strategy Increasing Positive Ratings from Our Users1 Xiaomi 14 Series Xiaomi MIX Fold 3 Xiaomi 13 Ultra Xiaomi 13 Series Xiaomi MIX Fold 2 Xiaomi 12S Ultra 99%+ 99%+ 99%+ 99%+ 99%+ 98%+ Smartphone Market Share2 RMB4,000-6,000 Smartphone by Week in Mai

  16. Slide 16: Record Results During Double 11 Shopping Festival

    Record Results During Double 11 Shopping Festival Cumulative Paid GMV Over Xiaomi 14 Offline Retail Store GMV RMB22.4 billion1 No.1 Domestic Smartphone Model up 77% YoY Registered a Shopping Across 4 Platforms2 Festival Record High 1 Across all channels and platforms, From 20:00:00 October 23, 2023

  17. Slide 17: R&D Expenses Ramped up to RMB5.0 billion in Q3 2023

    R&D Expenses Ramped up to RMB5.0 billion in Q3 2023 R&D Expenses RMB Billions ~20 Q3 2023 2022 R&D Expenses R&D Expenses as % of Nationwide R&D Expenses1 16.0 Up 22% YoY 0.5%+ 13.6 13.2 9.3 7.5 Number of 5.8 R&D Employees2 Number of Granted Patents Globally2 3.2 53%+ 35,000+ of Total Employees 2017

  18. Slide 18: Fully Embrace AI

    Fully Embrace AI Enhance User Experience Improve Operational Efficiency Sales Forecasts AI Real-time AI Input Translation Method Intelligent Decision Support AI Portrait AI Smart painting Intelligent Customer Service AI Assistant AI Image Text-to-Image Extender & Generation AI Image Search Note: The

  19. Slide 19: Q3 2023 Revenue Achieved YoY and QoQ Growth

    Q3 2023 Revenue Achieved YoY and QoQ Growth Revenue RMB Billions 70.5 70.9 67.4 Total revenue RMB70.9 billion, up 5.3% 7.1 7.8 7.4 QoQ and achieved YoY growth 19.1 20.7 Smartphones revenue grew 13.8% QoQ 22.3 IoT and lifestyle products revenue grew 8.5% YoY 42.5 41.6 36.6 Internet services revenue r

  20. Slide 20: Gross Profit Margins Reached Record Highs

    Gross Profit Margins Reached Record Highs Smartphone Gross Profit Margin IoT Gross Profit Margin Overall Gross Profit Margin % % % 22.7% 16.6% 17.8% 17.6% 21.0% 15.7% 19.5% 13.3% 14.3% 13.5% 17.2% 11.2% 16.6% 8.9% 8.2% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q

  21. Slide 21: Maintained Discipline in Managing Operating Expenses

    Maintained Discipline in Managing Operating Expenses Operating Expenses RMB Billions 11.9 11.1 0.2 10.2 1.2 10.2 0.2 0.2 9.4 0.1 1.7 0.8 0.2 1.4 1.1 10.4 9.2 8.6 9.1 8.0 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Operating expenses (excluding expenses related to smart EV and other new initiatives) Expe

  22. Slide 22: Adjusted Net Profit Increased 182.9% YoY

    Adjusted Net Profit Increased 182.9% YoY Adjusted Net Profit1 RMB Billions 14.0 8.4% 9.0% 7.6% 12.0 7.0% 10.0 5.4% 8.0 5.0% 1.7 6.0 3.0% 1.4 2.2% 3.0% 4.0 1.1 6.0 1.0% 0.8 5.1 2.0 1.2 3.2 2.1 1.5 0.0 -1.0% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Adjusted Net Profit1 Expenses related to smart EV and

  23. Slide 23: Lowest Inventory Levels in 11 Quarters

    Lowest Inventory Levels in 11 Quarters Leveraging Our Comprehensive Management System Inventory RMB Billions 53.0 50.4 9.0 8.1 42.6 38.5 36.8 7.3 7.7 7.4 27.3 28.7 22.0 22.7 19.3 19.6 17.1 16.9 11.4 12.8 (2.9) (3.5) (3.7) (3.3) (2.7) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Raw materials Finished goo

  24. Slide 24: Record High Cash Position

    Record High Cash Position Cash Resources1 RMB Billions 127.6 113.2 94.6 Our cash resources were over RMB127.6 billion Q1 2023 Q2 2023 Q3 2023 1 Including but not limited to (i) cash and cash equivalents, (ii) restricted cash, (iii) short-term bank deposits, (iv) short-term investments measured at fa

  25. Slide 25: ESG

    ESG

  26. Slide 26: Fully Integrated ESG Management into Our Business Operations

    Fully Integrated ESG Management into Our Business Operations Carbon Neutrality ESG Ratings World’s Best Employer By 2040 Score Improved from both Recognized on the MSCI & Sustainalytics 2023 WORLD’S BEST Achieve carbon neutrality in our own operations of our existing EMPLOYERS businesses1 List by Fo

  27. Slide 27: Giving back to Our Society

    Giving back to Our Society Poverty and Talent Technology Disaster Relief Development Innovation Cumulative Donation of Xiaomi Scholarships Program Xiaomi Innovation Joint Fund RMB156 million1 Covered 60 Colleges and Cumulative Donation of Universities1 RMB108 million and 74 Scientific Projects1 27 1

  28. Slide 28: Smartphones

    Smartphones

  29. Slide 29: Smartphone Shipments Exceeded 41 million Units in Q3 2023

    Smartphone Shipments Exceeded 41 million Units in Q3 2023 Achieved Both YoY and QoQ Growth Smartphones Revenue RMB Billions 42.5 41.6 In Q3 2023, smartphones revenue was 36.6 RMB41.6 billion Smartphone shipments were 41.8 million units, rose 27% QoQ Gross profit margin reached 16.6%, registered a re

  30. Slide 30: Mainland China Smartphone Shipments Ranked No.5 in Q3 2023

    Mainland China Smartphone Shipments Ranked No.5 in Q3 2023 Q3 2023 Shipments Vendor Q3 2023 Market Share YoY Shipments Changes (Million Units) HONOR 11.8 17.7% -1.0% OPPO 10.9 16.4% -9.7% Apple 10.6 15.9% -5.8% vivo 10.4 15.6% -26.0% Xiaomi 9.1 13.6% 0.4% Others 13.9 20.8% 21.3% Total 66.7 100.0% -4

  31. Slide 31: Redmi Note 13 Series: Flagship Experience for Mass Market

    Redmi Note 13 Series: Flagship Experience for Mass Market Launched in Mainland China in September 2023 Camera Display Charging 200MP Samsung 1.5K FHD+AMOLED 5,000mAh ISOCELL HP3 Sensor 1,800nit Peak Battery 120W Brightness Fast-charging Xiaomi Imaging Corning Gorilla Redmi x AAPE Mastermind Glass Vi

  32. Slide 32: Reinforce Global Presence

    Reinforce Global Presence Latin America Africa Middle East Smartphone shipments Q3 2023 Smartphone shipments Q3 2023 Smartphone shipments Q3 2023 43% 100% 20% Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Source: Canalys, by shipments 32

  33. Slide 33: AIoT

    AIoT

  34. Slide 34: Global Leading Consumer AIoT Platform

    Global Leading Consumer AIoT Platform Number of Connected Devices1 Users with 5 or More Devices Mi Home App MAU Millions Connected to Xiaomi’s AIoT Millions Platform1 Millions 84.0 82.9 698.9 13.7 13.0 78.1 12.3 75.8 654.5 11.6 10.9 72.4 618.0 589.4 558.3 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2

  35. Slide 35: Resilient IoT and Lifestyle Products Revenue

    Resilient IoT and Lifestyle Products Revenue IoT and Lifestyle Products Revenue RMB Billions 22.3 In Q3 2023, IoT and lifestyle products 20.7 revenue reached RMB20.7 billion, up 19.1 8.5% YoY Gross profit margin reached 17.8%, registered a record high Q3 2022 Q2 2023 Q3 2023 35

  36. Slide 36: Smart TV: No.1 TV Shipments in Mainland China in Q3 2023

    Smart TV: No.1 TV Shipments in Mainland China in Q3 2023 No.1 TV Shipments in Mainland China in Q3 20231 Global Smart TV Shipments Reached 2.7 million in Q3 2023 Ranked Top 5 Globally1 1 According to AVC, by shipments in Q3 2023 36

  37. Slide 37: Smart Large Home Appliances: Momentum Continued

    Smart Large Home Appliances: Momentum Continued Air Washing Refrigerators Conditioners Machines The number of air conditioner Refrigerator shipments reached a record Washing machine shipments exceeded shipments by the end of Q3 2023 high of over 670k units in Q3 2023, up 310k units in Q3 2023, up 28

  38. Slide 38: Tablets: Ranked among Top 5 Globally

    Tablets: Ranked among Top 5 Globally Redmi Pad SE Launched in Overseas in August 2023 Launched in Mainland China in September 2023 Global Shipments1 in Q3 2023 up 120% YoY Ranked Top 5 Globally1 in Q3 2023 for the First Time Ranked Top 3 in Mainland China1 in Q3 2023 1 According to Canalys, by shipm

  39. Slide 39: Wearables: Leading Position in Mainland China

    Wearables: Leading Position in Mainland China Leading Brand New Product Launch Xiaomi Smart Watch S3 TWS Launched in Mainland China in October 2023 Mainland China Shipments1 A 1.43’’ AMOLED display featured a smooth 60Hz refresh rate Innovative interchangeable bezel design No.2 Leveraging L1+L5 dual

  40. Slide 40: Internet Services

    Internet Services

  41. Slide 41: Global MIUI MAU Reached 623 million and Mainland China 152 million

    Global MIUI MAU Reached 623 million and Mainland China MIUI MAU Reached 152 million in Q3 2023 YoY % Global MIUI MAU 10.5% Millions 623.1 594.8 606.0 563.9 582.1 11.2 17.1 18.2 12.7 Global MIUI MAU1 reached 623.1 million, YoY growth of 59.1 million Mainland China MIUI MAU1 reached 151.9 million, YoY

  42. Slide 42: Internet Services Revenue Achieved Another Record High

    Internet Services Revenue Achieved Another Record High Internet Services Revenue RMB Billions 7.8 YoY % 7.4 In Q3 2023, internet services revenue 7.1 1.3 -7.2% reached RMB7.8 billion, a record high 1.3 1.4 1.1 1.0 5.6% 1.0 Advertising revenue reached a record high, up 15.7% YoY 5.4 15.7% 4.7 5.1 Gam

  43. Slide 43: Overseas Internet Services Revenue Reached a Record High

    Overseas Internet Services Revenue Reached a Record High Overseas Internet Services Revenue as % of Total Internet Services Revenue In Q3 2023, overseas internet 30.0% services revenue reached a record high of RMB2.3 billion, up 35.8% 26.8% 26.1% 25.7% YoY, accounting for 30.0% of total 24.2% intern

  44. Slide 44: IR@xiaomi.com https://ir.mi.com/

    IR@xiaomi.com https://ir.mi.com/

Xiaomi — Q3 2023 Earnings Presentation on 6ix