Slide 1: Xiaomi Corporation Q2 2021 Results Announcement
Xiaomi Corporation Q2 2021 Results Announcement
Slide 2: 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 subsidiaries,
Slide 3: Key highlights in Q2 2021
Key highlights in Q2 2021 #2 global smartphone Record results market share Revenue Adjusted net profit1 #2 #3 #1 87.8 billion 6.3 billion Global Mainland China Europe RMB RMB market share market share market share 64.0% YoY 87.4% YoY 16.7% 16.8% 28.5% Growing user base Leading AIoT platform 453.8 mi
Slide 4: Record revenue and adjusted net profit
Record revenue and adjusted net profit Revenue Net profit Adjusted net profit1 RMB billions RMB billions RMB billions In Q2 2021 64.0% Total revenue was RMB87.8 87.8 83.9% 8.3 87.4% billion, up 64.0% YoY 7.0 6.3 Net profit was RMB8.3 billion, 20.7 up 83.9% YoY 53.5 5.9 4.5 3.4 Adjusted net profit wa
Slide 5: Powerful brand with global recognition
Powerful brand with global recognition 2021 Kantar BrandZTM Top 100 Fortune Global 500 Most Valuable Global Brands Ranked #338 in 2021 Ranked #70 in 2021 Up 84 slots from last year Up 11 slots from last year Listed for 3rd consecutive year Listed for 3rd consecutive year 5
Slide 6: No. 2 market share globally with the highest YoY growth
No. 2 market share globally with the highest YoY growth1 Million units Worldwide smartphone shipments and market share Vendor Q2 2021 shipment volume Q2 2021 market share Q2 2020 shipment volume Q2 2020 market share Shipment YoY growth Samsung 58.0 18.4% 53.7 18.9% 8.1% Xiaomi 52.8 16.7% 28.8 10.1%
Slide 7: No. 3 market position in mainland China with the highest YoY growth
No. 3 market position in mainland China with the highest YoY growth1 Million units Mainland China smartphone shipments and market share Vendor Q2 2021 shipment volume Q2 2021 market share Q2 2020 shipment volume Q2 2020 market share Shipment YoY growth vivo 18.2 24.3% 14.8 16.3% 23.3% OPPO 16.0 21.4
Slide 8: Strengthened our position in the premium market
Strengthened our position in the premium market RMB5,000+ RMB4,000 – 5,000 RMB3,000 – 4,000 ··· ··· ··· Xiaomi Xiaomi Xiaomi Xiaomi 11 Xiaomi 10S Redmi K40 Pro MIX FOLD 11 Ultra 11 Pro Market share1 Market share1 Market share1 +3.6% YoY +4.1% YoY +8.4% YoY Premium smartphone2 shipments reached over
Slide 9: Continuous investment in research and development
Continuous investment in research and development R&D expenses RMB billions 56.5% 3.1 In Q2 2021 2.0 R&D expenses increased by 56.5% YoY to RMB3.1 billion Q2 2020 Q2 2021 9
Slide 10: Continuous technology innovation – Xiaomi MIX 4
Continuous technology innovation – Xiaomi MIX 4 Camera Under Panel “Point to Connect” (CUP) technology UWB1 technology Full screen display with The first domestic smartphone hidden front camera to feature UWB RMB500 million+ R&D investment 60 Patent applications 1 Ultra wide band 10
Slide 11: Exploration of future technologies – CyberDog
Exploration of future technologies – CyberDog CyberDog – a bio-inspired quadruped robot Promote innovation by establishing a robotics laboratory and open source platform 11
Slide 12: Xiaomi Smart Factory (Phase 2) commenced construction in Beijing
Xiaomi Smart Factory (Phase 2) commenced construction in Beijing1 58,300 10 million Total area Annual capacity Begin production Ultra-premium by end of 2023 smartphone units Xiaomi’s first large-scale smart factory, leveraging Phase 1’s R&D capabilities 1 Began construction on July 14, 2021 12
Slide 13: Attracting and retaining the best talent
Attracting and retaining the best talent Incentives for young engineers Incentives for technology and outstanding staff specialists and core management 3,904 Participants 122 Participants • Outstanding young engineers, fresh • Technology specialists graduates, and staff in core positions • Middle an
Slide 14: Recruiting the best talent for our smart EV business
Recruiting the best talent for our smart EV business Self-driving division Announced Total applications recruiting acquisition of received for smart EV business1 500 positions DeepMotion Development of to strengthen Over L4 autonomous autonomous driving 20,000 driving technology capability Note: The
Slide 15: Smartphones
Smartphones
Slide 16: Smartphone revenue
Smartphone revenue RMB billions In Q2 2021 59.1 86.8% Smartphone revenue reached RMB59.1 billion, up 86.8% YoY Smartphone shipments achieved 52.9 million 31.6 units, up 86.8% YoY, a record high Q2 2020 Q2 2021 16
Slide 17: Mainland China offline retail expansion continued to gain traction
Mainland China offline retail expansion continued to gain traction Offline retail stores in mainland China Xiaomi offline smartphone market share in # mainland China1 % +3,100 7.8% 7.0% 7,600+ 4,500+ 4.7% 3,200+ Dec 2020 Mar 2021 June 2021 Q4 2020 Q1 2021 Q2 2021 1 According to third-party data, by
Slide 18: Broke new records during the 618 e-Commerce Festival
Broke new records during the 618 e-Commerce Festival - Smart TV - Order value exceeded RMB1.7 billion3 - Wearable devices - Order volume exceeded 1.9 million units3 - Smart AC - Order value exceeded RMB850 million3 Cumulative paid GMV exceeded No.1 by order volume1 among IoT products achieved 158 No
Slide 19: Rapidly expanding our global footprint
Rapidly expanding our global footprint Q2 2021 Xiaomi smartphone shipment rankings and market share Ranking improved Market share improved No. 1 28.5% Europe No. 2 No.1 20.9% Middle East 18.7% APAC No. 3 No. 3 15.8% 8.5% Latin America Africa No.1 29.0% India Source: Canalys 19
Slide 20: Smartphone market share ranked No. 1 in 22 markets and top 5 in 65
Smartphone market share ranked No. 1 in 22 markets and top 5 in 65 markets New New New New New New No.1 Spain Italy France Greece Russia Poland Ukraine Belarus Czech Republic Romania Serbia Croatia Bulgaria New New New New Slovakia Lithuania Colombia India Indonesia Thailand Malaysia Myanmar Algeria
Slide 21: Ranked #1 in Europe for the first time
Ranked #1 in Europe for the first time Europe smartphone market share Rank Vendor Q2 2021 market share Shipment YoY growth #1 Xiaomi 28.5% 70.1% #2 Samsung 26.6% -10.8% #3 Apple 16.1% -23.9% #4 OPPO 4.6% 163.0% Others 24.2% -20.0% Total 100.0% 0.3% Spain #1 Italy #1 France #1 Germany #3 Market share
Slide 22: AIoT
AIoT
Slide 23: IoT and lifestyle product revenue
IoT and lifestyle product revenue RMB billions 20.7 35.9% In Q2 2021 IoT and lifestyle product revenue reached RMB20.7 billion, up 35.9% YoY 15.3 Q2 2020 Q2 2021 23
Slide 24: Global leading consumer AIoT platform
Global leading consumer AIoT platform 374.5 million 7.4 million 102.0 million 56.5 million Connected devices1 Users with 5 or more devices AI assistant MAU2 Mi Home App MAU2 Up 34.0% YoY connected to Xiaomi’s AIoT platform1 Up 30.2% YoY Up 38.6% YoY Up 44.5% YoY 1 As of June 30, 2021, excluding smar
Slide 25: #1 TV brand in mainland China with innovative premium products
#1 TV brand in mainland China with innovative premium products Global smart TV shipments in Q2 2021 reached 2.5 million units Ranked No.1 in mainland China for 10 consecutive quarters1 Ranked No.1 among TVs over 70 inches in mainland China2 1 According to AVC, by shipments in Q2 2021 2 According to
Slide 26: Extending our multi-screen ecosystem with Xiaomi Pad 5 series
Extending our multi-screen ecosystem with Xiaomi Pad 5 series Xiaomi’s first tablet since 2018 • Qualcomm Snapdragon 870 processor1 • 11-inch 2.5k display with 120Hz refresh rate • 8600mAh battery, 67W fast charging allowing full charge in 67 minutes1 • Dolby Atmos 8-speaker surround sound1 • Custom
Slide 27: Xiaomi's first premium smart speaker – Xiaomi Sound
Xiaomi’s first premium smart speaker – Xiaomi Sound Hi-Res certified Dynamic tuning Xiaomi’s first speaker by HARMAN to feature UWB Intercom capability across 360˚ sound multiple speakers 27
Slide 28: Overseas IoT business maintained high growth momentum
Overseas IoT business maintained high growth momentum Revenue Smart TV global expansion Popular categories Overseas IoT and lifestyle Multiple products with 100%+ product revenue YoY growth YoY revenue growth2 93.8% Xiaomi Electric Scooter Xiaomi Band Smart TVs sold in 40+ markets1 Xiaomi Watch Xiao
Slide 29: Internet Services
Internet Services
Slide 30: Record user number
Record user number Global MIUI MAU Millions 453.8 425.3 396.3 Global MIUI MAU1 reached 453.8 million, 368.2 an increase of 32.1% YoY 343.5 Mainland China MIUI MAU1 reached Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 124.0 million, representing an increase of 5.3 million from March 2021 Mainland China MI
Slide 31: Internet services revenue
Internet services revenue RMB billions YoY % In Q2 2021 19.1% Internet services revenue reached RMB7.0 7.0 billion, up 19.1% YoY 5.9 1.6 -10.3% Advertising revenue reached historical 1.8 0.9 -10.7% quarterly high, contributing to increase in internet services gross margin to 74.1% 1.0 Gaming revenue
Slide 32: Continued growth in overseas internet services
Continued growth in overseas internet services Overseas internet services revenue as percent of total internet revenue Overseas internet services revenue increased by 96.8% YoY in Q2 2021, accounting for 15.6% of total internet 15.6% services revenue 14.1% 13.8% 12.0% Western Europe MIUI MAU increas
Slide 33: Financials
Financials
Slide 34: Revenue by region and segment
Revenue by region and segment Total revenue Total revenue by region, Q2 2021 RMB billions YoY % QoQ % RMB billions 64.0% 14.2% 87.8 49.7% Overseas 76.9 YoY % 53.5 87.8 81.6% 50.3% Mainland China Overseas Q2 2020 Q1 2021 Q2 2021 Smartphone revenue IoT and lifestyle product revenue Internet services r
Slide 35: Gross margin by segment
Gross margin by segment Overall gross margin 18.4% 17.3% 14.4% Q2 2020 Q1 2021 Q2 2021 Smartphone gross margin IoT and lifestyle products gross margin Internet services gross margin 12.9% 72.4% 74.1% 11.8% 14.5% 13.2% 60.3% 11.4% 7.2% Q2 2020 Q1 2021 Q2 2021 Q2 2020 Q1 2021 Q2 2021 Q2 2020 Q1 2021 Q
Slide 36: Adjusted net profit reached record high
Adjusted net profit reached record high Net profit Adjusted net profit1 RMB billions RMB billions YoY % QoQ % YoY % QoQ % 83.9% 6.1% 87.4% 4.2% 8.3 7.8 Adjusted net profit reached a 6.1 6.3 record high of RMB6.3 billion in Q2 2021, up 87.4% YoY 4.5 3.4 Q2 2020 Q1 2021 Q2 2021 Q2 2020 Q1 2021 Q2 2021
Slide 37: Prudent operating expense management
Prudent operating expense management Operating expense ratio 11.3% 11.2% Continued to maintain high operating efficiency Operating expense ratio was 11.3% in Q2 2021 3.7% 3.5% Q2 2020 Q2 2021 R&D expense ratio 37
Slide 38: Strong cash flow performance
Strong cash flow performance Adjusted operating cash flow and Capex RMB billions 27.1 16.3 8.4 6.7 (0.5) (0.7) (3.4) (3.0) 2019 2020 Q2 2020 Q2 2021 Adjusted operating cash flow 1 Capital expenditures Repurchased 208 million shares totaling HKD5.4 billion in 2021 year-to-date 1 Operating cash flow a
Slide 39: Strengthened cash position
Strengthened cash position Cash resources1 RMB billions 111.6 108.0 108.9 Due to strong operating cash flow and capital market financings, cash 75.5 64.4 resources increased to RMB111.6 billion Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 1 Including (i) cash and cash equivalents, (ii) restricted cash, (
Slide 40: Additional earnings growth through strategic investments
Additional earnings growth through strategic investments Selected investee companies listed or received listing approval in Q2 2021 smart manufacturing AI speech image sensor and display polymer lithium consumer electronics ion batteries components 330+ companies invested as of Q2 2021 After-tax net
Slide 41: ESG updates
ESG updates
Slide 42: Our ESG goals & strategies
Our ESG goals & strategies Environmental Social Governance Technology Innovation Reduce packaging and use Promote workplace diversity and Joined the United Nations Global Reduce carbon footprint biodegradable materials advocate employee welfare Compact (UNGC) in 2020 through better product d
Slide 43: Continued to strengthen privacy protection and data security
Continued to strengthen privacy protection and data security Xiaomi Security & Privacy Published white papers and reports1 Awareness Month to enhance transparency in Q2 2021 Held the Xiaomi Security & Privacy Awareness For smartphones and MIUI system For IoT products Month in June 2021 to raise empl
Slide 44: IR@xiaomi.com
IR@xiaomi.com