Slide 1: Xiaomi Corporation 2020 Annual Results Announcement
Xiaomi Corporation 2020 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 su
Slide 3: Q4 2020 Revenue and Adjusted Net Profit
Revenue Adjusted net profit RMB billions RMB billions 24.8% 70.5 In Q4 2020 56.5 3.2 Total revenue was RMB70.5 billion, up 24.8% YoY 2.3 Adjusted net profit! was RMB3.2 billion, up 36.7% YoY Q4 2019 Q4 2020 Q4 2019 Q4 2020 @ Smartphones @ = loT and lifestyle products @ Internet services M Others * D
Slide 4: 2020 Revenue and Adjusted Net Profit
Revenue Adjusted net profit RMB billions RMB billions 19.4% 245.9 In 2020 208.8 13.0 11.5 Total revenue was RMB245.9 billion, up 19.4% YoY Adjusted net profit’ was RMB13.0 billion, up 12.8% YoY 2019 2020 2019 2020 @ Smartphones @ = loT and lifestyle products @ Internet services M Others * Defined as
Slide 5: No.3 market share globally with the highest YoY growth
No.3 market share globally with the highest YoY growth! in Q4 2020, smartphones sold in 100+ markets Million units Worldwide smartphone shipments and market share Vendor Q4 2020 shipment volume Q4 2020 market share Q4 2019 shipment volume Q4 2019 market share Shipment YoY growth Apple 81.8 22.7% 78.
Slide 6: Continued to gain market share in mainland China
Continued to gain market share in mainland China Million units Mainland China smartphone shipments and market share Vendor Q4 2020 shipment volume Q4 2020 market share Q4 2019 shipment volume Q4 2019 market share Shipment YoY growth Huawei 7 (incl. Honor) 18.8 22.4% 33.3 38.1% 43.5% OPPO 17.2 20.4%
Slide 7: Premium smartphones well received by the market
Premium smartphones well received by the market Oy | ini Over 1 million units of Mi 11 was sold Mi within 21 days in mainland China New Xiaomi users accounted for over 50% of Mi 11 users! Lei Jun Sig et 4 Special i i) | ) Premium smartphone shipments reached ~10 million units globally? " In the firs
Slide 8: Relentlessly pursue cutting-edge technologies
Relentlessly pursue cutting-edge technologies First quad-curved waterfall 2021 Top 100 Global Innovator Mi Air Charge Technology display concept smartphone Xiaomi listed as Top 100 Global Innovator three years in a row eee Listed as Top 100 Global Remote charging without any 88 ° hyper quad-curved s
Slide 9: Retail expansion in mainland China
Retail expansion in mainland China 3,200+ retail stores as of 31 Dec 2020 up 1,000+ stores since 30 Sep 2020 Aim to achieve full county-level coverage in mainland China Digitalize offline operations by integrating real-time data Optimize sales, store management and overall efficiency
Slide 10: Optimized internet organizational structure
Optimized internet organizational structure OO man 7 Software & Experience Department Team leader: Jin Fan Enhance user experience and interconnectivity across devices to focus on user experience GO> 0 Internet Business Department Team leader: Ma Ji Deliver high-quality internet services with sustai
Slide 11: Smartphones
Smartphones
Slide 12: Smartphone revenue
Smartphone revenue RMB billions 24.6% 152.2 38.4% 122.1 Q4 2020 smartphone revenue was 42.6 RMB42.6 billion, up 38.4% YoY 30.8 2020 smartphone revenue reached RMB152.2 billion, up 24.6% YoY Q4 2019 Q4 2020 2019 2020 11
Slide 13: Simultaneous growth in smartphone shipments, ASP and gross margin
Simultaneous growth in smartphone shipments, ASP and gross margin Smartphone shipments (millions) Smartphone ASP (RMB) Smartphone gross margin (%) YoY (%) 6.8% 10.5% 42.3 1,009 7.8% 945 LJ LJ a _ Q4 2019 oS 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 SS SS eS” 124.6 1,040 8.7% | || - a 2019 2020 2019 2020
Slide 14: Strengthened our leadership in online sales in mainland China
Strengthened our leadership in online sales in mainland China Online smartphone market share in mainland China reached 29.5% in Q4 2020 During the Singles’ Day’ and Double 122 Shopping Festivals, we ranked No.1 in sales volume among Android smartphones on JD.com, Tmall.com and Suning.com ‘From Novem
Slide 15: Key mainland China smartphone models
Key mainland China smartphone models Retail At the time of launch price’ RMB 5,000 4,000 3,000 2,000 1,000 Continued to execute our dual brand strategy a) Mi 10 Ultra Mi 10 Pro FB v0 a) Mi 10S ie Redmi K40 Series Redmi Note 9 Series Redmi 9 Series Successfully expanded our premium smartphone portfol
Slide 16: AIoT
AloT
Slide 17: IoT and lifestyle product revenue
loT and lifestyle product revenue RMB billions 67.4 Q4 2020 IoT and lifestyle product 62.1 revenue reached RMB21.1 billion, 21.1 up 8.0% YoY 19.5 2020 loT and lifestyle product revenue reached RMB67.4 billion, up 8.6% YoY Q4 2019 Q4 2020 2019 2020 16
Slide 18: Global leading consumer AIoT platform
Global leading consumer AloT platform ® “4 OS 0 28 0. @ iM », bad wJ © -e® 324.8 million 6.2 million 86.7 million 45.0 million Connected devices' Users with 5 or more devices Al assistant MAU2 Mi Home App MAU? Up 38.0% YoY connected to Xiaomi’s AloT platform’ Up 43.5% YoY Up 22.1% YoY Up 52.9% YoY ‘
Slide 19: Further expanded premium and ultra-large screen TV portfolio
Further expanded premium and ultra-large screen TV portfolio Global smart TV shipments in 2020 reached 12.0 million units Ranked No.1 in mainland China for 8 consecutive quarters! Ranked No.1 among TVs over 70 inches with market share of 27.7%? in mainland China ‘According to AVC, by shipments in Q4
Slide 20: Continued to launch competitive IoT products
Continued to launch competitive loT products to enhance ‘ According to AVC, by retail sales volume in Q4 2020 smart home connectivity Global Al speaker shipments exceeded 10 million units in 2020 Retail sales volume ranked No. 2 in mainland China with market share of 29.4%! Global router shipments e
Slide 21: Expanded our overseas IoT and lifestyle products footprint
Expanded our overseas IoT and lifestyle products footprint Overseas loT and lifestyle products sold in 80+ overseas markets in 2020 No. of markets sold in 2020 Mi Band Mi TV Box Xiaomi TWS Earbuds 80 markets 80 markets 79 markets Mi Router Mi Electric Scooter Mi Robot Vacuum Cleaner 7 ° ~ 71 markets
Slide 22: Internet Services
Internet Services
Slide 23: Internet services revenue
Internet services revenue RMB billions Q4 2020 Internet services revenue 8.4% 23.8 reached RMB6.2 billion, up 8.4% YoY 19.8 6.9 Vaan 6.2 Quarterly advertising revenue reached 5.7 historical high, up 23.1% YoY Quarterly gross margin of Internet services reached 68.4%, a record high 2020 Internet serv
Slide 24: Strong user growth
Strong user growth Global MIU] MAU' reached 396.3 million, up 28.0% YoY Mainland China MIU] MAU reached 111.0 million in Dec 2020 and reached 114.5 million in Jan 2021 Smart TV MAU? grew 48.0% YoY to 40.9 million 1 As of December in respective quarters ? As of December in respective quarters, includ
Slide 25: MIUI 12.5 delivering vastly improved user experience
MIUI 12.5 delivering vastly improved user experience and privacy protection Faster and smoother operations Lower CPU usage Lower power consumption Decrease CPU usage and power consumption Privacy protection @ wwe: 17 Introduce “fuzzy location” and other functions to protect user privacy UI animation
Slide 26: Continued to expand overseas internet services
Continued to expand overseas internet services Q4 2020 overseas internet services revenue was up 55.1% YoY and accounted for 14.1% of total internet services revenue Overseas internet services revenue as percent of total internet revenue o 14.1% 12.0% Q3 2020 Q4 2020 25
Slide 27: Overseas
Overseas
Slide 28: Q4 2020 overseas revenue
Q4 2020 overseas revenue reached RMB33.8 billion, up 27.6% YoY 2020 overseas revenue reached RMB122.4 billion, up 34.1% YoY Overseas revenue RMB billions 91.2 122.4 Q4 2019 Q4 2020 2019 2020 27
Slide 29: Smartphone market share ranked top 5 in 54 markets
No.1 No.2 No.3 No.4 No.5 Smartphone market share ranked top 5 in 54 markets, and No. 1 in 8 markets ® 2 ® G Belgium ~ w Netherlands i = 2. J) 3 a 2 ey ( 5 8 a Russia Portugal a é = . a 0 5 = . 2 : > SO: CE a : Estonia Source: Canalys, by shipments in Q4 2020 Malaysia Sweden Cambodia Belarus O Peru I
Slide 30: Ranked No. 3 in Europe while gaining traction in Latin America
Ranked No. 3 in Europe overall while gaining traction in Latin America Europe smartphone market share Vendor Q4 2020 market share Shipment YoY growth Apple 32.0% 9.0% Samsung 27.2% -8.9% Xiaomi 15.3% C€ 33.9% Huawei (incl. Honor) 10.4% -42.0% others 15.1% 3.5% Total 100.0% -3.1% Central and . . West
Slide 31: Strong performance in both online and carrier channels
Strong performance in both online and carrier channels Overseas (excluding India) smartphone shipments through online channels’ exceeded 16 million units in 2020, up 90%+ YoY ‘Including Micom and other E-commerce platforms. ? According to Canalys, by shipments. Overseas (excluding India) smartphone
Slide 32: Financials
Financials
Slide 33: Quarterly revenue by segment
Quarterly revenue by segment Total revenue RMB billions YoY % QoQ % aD aD 72.2 70.5 L L Q4 2019 Q32020 Q4 2020 loT and lifestyle product revenue RMB billions YoY % QoQ % a> <> : j a Q4 2019 Q32020 Q4 2020 Smartphone revenue RMB billions YoY % QoQ % 38.4% -10.4% 47.6 42.6 30.8 Q4 2019 Q32020 Q4 2020
Slide 34: Annual revenue by segment
Total revenue RMB billions 19.4% Annual revenue by segment Smartphone revenue RMB billions 24.6% 245.9 152.2 a 7 a loT and lifestyle product revenue RMB billions 62.1 2020 2019 2020 Internet services revenue RMB billions SS” 67.4 23.8 | a | 2019 2020 2019 2020 33
Slide 35: Continuous gross margin improvement
Continuous gross margin improvement Overall gross margin YX 13.9% 14.1% 16.1% Q4 2019 Q32020 Q4 2020 loT and lifestyle products gross margin 19 14.2% 12.1% = a i a Ls 2019 Q32020 Q4 2020 Smartphone gross margin 10.5% a - a Q4 2019 Q32020 Q4 2020 Internet services gross margin 63.7% 68.4% 60.4% 7 Q4
Slide 36: Continue to invest in brand building and R&D
Continue to invest in brand building and R&D Operating expense ratio increased YoY due to higher R&D and sales and marketing expense ratios R&D expenses reached RMB9.3 billion in 2020, up 23.5% YoY Operating expense ratio 13.4% 11.2% 12.1% 10.2% 4.0% 4.4% 3.6% 3.8% Q4 2019 Q4 2020 2019 2020 @ R&D ex
Slide 37: Adjusted net profit reached record high in 2020
Adjusted net profit reached record high in 2020 Adjusted net profit RMB billions Q4 2020 adjusted net profit! 11.5 reached RMB3.2 billion, up 36.7% 3.2 YoY 2.3 2020 adjusted net profit reached RMB13.0 billion, up 12.8% YoY Q4 2019 Q4 2020 2019 2020 Adjusted net profit margin t 4.2% t 4.5% J t 5.6% 5
Slide 38: Efficient working capital management
Efficient working capital management AR turnover days Inventory turnover days AP turnover days 103 90 15 ; ; : ' Q3 2020 Q4 2020 Q3 2020 Q4 2020 Q3 2020 Q4 2020 37
Slide 39: Strong cash flow performance
Strong cash flow performance Q4 2020 adjusted operating cash flow 2020 adjusted operating cash flow RMB billions RMB billions 21.9 5.6 16.3 11.9 Adjustments i 1 ——_. for fintech for fintech' Net cash generated Adjusted operating Net cash generated Adjusted operating from operating activities cash fl
Slide 40: Strengthened cash position to better capture business opportunities
Strengthened cash position to better capture business opportunities Cash resources RMB billions 108.0 Due to strong operating cash flow and capital market financings, cash resources’ increased 66.0 to RMB108.0 billion 2019 2020 "Including (i) cash and cash equivalents, (ii) restricted cash, (iii) sh
Slide 41: Additional earnings growth through strategic investments
Additional earnings growth through strategic investments Selected investee companies listed in 2020 Feb May Aug Oct Dec * aa * + o @ = >< 7] a @sxws , ae roborocl x PENS Segway-Ninebot 310+ companies invested as of Q4 2020 After-tax net gains on disposal of investments was RMB2.2 billion in 2020 Tot
Slide 42: United States District Court order on Xiaomi
UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA ‘XIAOMI CORPORATION, et a, Plaintiffs, Civil Action No> 21.280 RC) v. ReDocumentNo: 14,18 ‘DEPARTMENT OF DEFENSE, et al, Defendants. ORDER GRANTING PLAINTIFF'S MOTION FOR PRELIMINARY INJUNCTION; GRANTING PLAINTIFFS’ “Morton For Leave To FILE
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