Xiaomi Corporation Class B · HKEX:1810

Xiaomi Corporation Class B — Q4 2021 Earnings Presentation

47 slides from Xiaomi Corporation Class B's earnings presentation, Mar 23, 2022

  1. Slide 1: Xiaomi Corporation 2021 Annual Results Announcement

    Xiaomi Corporation 2021 Annual Results Announcement

  2. Slide 2: Disclaimer and limitations

    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,

  3. Slide 3: Q4 2021 Key Highlights

    Q4 2021 Key Highlights Leading Smartphone Robust Financial Performance Market Position Revenue Adjusted Net Profit1 #3 44.1 million 85.6 billion 4.5 billion Global Global RMB RMB Market Share2 Smartphone Shipments 21.4% YoY 39.6% YoY Growing User Base Leading AIoT Platform 508.9 million 129.8 millio

  4. Slide 4: Remarkable Growth Achieved in 2021

    Remarkable Growth Achieved in 2021 Revenue Adjusted Net Profit1 RMB Billions RMB Billions In 2021 33.5% 328.3 28.2 69.5% 22.0 Total revenue RMB328.3 billion, up 33.5% 245.9 YoY 85.0 23.8 Revenue of each segment achieved 67.4 13.0 record highs 208.9 Adjusted net profit1 RMB22.0 billion, up 152.2 69.5

  5. Slide 5: R&D Expenses Exceeded RMB13 billion in 2021, up 42.3% YoY

    R&D Expenses Exceeded RMB13 billion in 2021, up 42.3% YoY R&D Expenses RMB Billions 2021 Key R&D Accomplishments 42.3% CyberFocus 13.2 CyberDog Surge P1 Imaging Robot Charging IC Algorithm 9.3 Smart Glasses Liquid Surge C1 Exploration Lens Image IC Edition ··· Expected R&D Investment Over Next 5 Yea

  6. Slide 6: Smartphone Shipments Exceeded 190 million Units in 2021, Ranked No.3 Globally

    Smartphone Shipments Exceeded 190 million Units in 2021, Ranked No.3 Globally 2021 Shipments 2021 Shipments YoY Vendor (Million Units) Market Share Growth Global Smartphone Market Share by Year Samsung 274.5 20.3% 7.4% % Apple 230.1 17.0% 11.1% 14.1% Xiaomi 191.2 14.1% 27.8% 11.8% OPPO 133.5 9.9% 15

  7. Slide 7: Smartphone Shipments Ranked No.3 in Mainland China in 2021

    Smartphone Shipments Ranked No.3 in Mainland China in 2021 with a Record High Market Share of 15.2% 2021 Shipments 2021 Shipments YoY Vendor (Million Units) Market Share Growth Mainland China Smartphone Market Share by Year vivo 71.5 21.5% 23.6% % OPPO 66.4 19.9% 14.2% 15.2% Xiaomi 50.5 15.2% 26.9%

  8. Slide 8: Strengthened Position in the Premium Smartphone Market

    Strengthened Position in the Premium Smartphone Market Global Premium Smartphone1 Shipments Global Premium Smartphone1 Shipments Million Units As % of Global Smartphone Shipments ~24 ~7% ~13% ~10 2020 2021 2020 2021 1 Smartphones with mainland China retail price at RMB3,000 and above or with oversea

  9. Slide 9: Mainland China New Retail Strategy

    Mainland China New Retail Strategy: Store Expansion in 2021 and Operation Efficiency Improvement in 2022 Mainland China Smartphone Market 2021: Focus on Store Expansion Xiaomi Online Market Share1 Offline Retail Stores in Mainland China # 23.4% 33.6% 10,200+ 7,000+ 2020 2021 3,200+ Xiaomi Offline Ma

  10. Slide 10: Smart EV Progressing Smoothly and Ahead of Schedule

    Smart EV Progressing Smoothly and Ahead of Schedule Smart EV R&D Team Currently Exceeded 1,000 People Mass Production Expected 1H 2024 10

  11. Slide 11: Smartphones

    Smartphones

  12. Slide 12: Strong Growth Despite Global Supply Shortage

    Strong Growth Despite Global Supply Shortage Smartphones Revenue RMB Billions In Q4 2021, smartphones revenue reached RMB50.5 37.2% 208.9 billion, up 18.4% YoY, driven 18.4% 50.5 by both increased shipments and ASP growth 152.2 42.6 In 2021, smartphones revenue reached RMB208.9 billion, up 37.2% YoY

  13. Slide 13: Xiaomi 12 Series Benchmarking against iPhone

    Xiaomi 12 Series Benchmarking against iPhone Outstanding Product Performance1  Two different screen sizes to meet different user needs  The latest Snapdragon® 8 Gen 1 Mobile Platform  All-new imaging computing algorithm, including CyberFocus  Industry’s first 120W single cell 4,600mAh battery de

  14. Slide 14: Redmi K50G: Elevated Gaming Experience

    Redmi K50G: Elevated Gaming Experience Elevated Gaming Experience  The latest Snapdragon® 8 Gen 1 Mobile Platform and 120W fast-charging  All-new dual vapor chamber heat dissipation system  CyberEngine X-axis motor 1016 and JBL quad speakers for immersive vibration and audio effect  Flat gaming

  15. Slide 15: Redmi K50 and Redmi K50 Pro: Flagship Performance

    Redmi K50 and Redmi K50 Pro: Flagship Performance Exceptional All-round Features1  MediaTek Dimensity 9000, a TSMC 4nm-class smartphone chip  120W fast-charging with a large 5,000mAh battery, powered by Xiaomi's self-developed Surge P1 charging IC  First Redmi model that features a 2K display, ac

  16. Slide 16: MIUI 13: Stable and Smooth User Experience

    MIUI 13: Stable and Smooth User Experience Further Optimized Core OS Experience Strengthened Privacy Protection ··· Smarter Higher Background Faster Longer Facial Recognition ID Processing Process Efficiency Storage Battery Life Protection Watermark Improved Multi-tasking Efficiency Personalized Int

  17. Slide 17: Gained Leadership Across All Major Markets

    Gained Leadership Across All Major Markets 2021 Xiaomi Smartphone Market Share & Ranking Market Share Improved Compared with 2020 No.2 22.5% Europe No.3 15.2% Mainland China No.2 16.6% No.2 Middle East 16.1% No.3 No.3 Asia Pacific 12.5% 7.5% Latin America Africa No.1 24.9% India Source: Canalys, by

  18. Slide 18: Smartphone Market Share Ranked No. 1 in 14 Markets and Top 5 in 62

    Smartphone Market Share Ranked No. 1 in 14 Markets and Top 5 in 62 Markets in 2021 No.1 Spain Greece Croatia India Malaysia Colombia Poland Slovakia Russia Myanmar Ukraine Lithuania Belarus Serbia No.2 France Italy Portugal Thailand Turkey Indonesia Peru Chile Morocco Romania Kazakhstan Israel Nepal

  19. Slide 19: Ranked No.2 in Europe in 2021

    Ranked No.2 in Europe in 2021 Vendor 2021 Shipments (Million Units) 2021 Market Share Shipments YoY growth Samsung 57.3 30.6% -6.8% Xiaomi 42.1 22.5% 30.1% Apple 39.9 21.3% -13.0% OPPO 8.5 4.6% 77.7% Others 39.1 21.0% -26.9% Total 186.9 100% -5.6% Market Spain Italy France Germany Ranking #1 #2 #2 #

  20. Slide 20: Strong Performance of Overseas Premium Smartphone Market

    Strong Performance of Overseas Premium Smartphone Market Overseas Premium Overseas Premium Smartphone2 Smartphone Brand in 20211 Shipments as % of Overseas Top 3 Smartphone Shipments Increased by YoY Growth of Overseas Premium ~6% YoY Smartphone2 Shipments in 2021 160%+ Mainly in Western Europe, 202

  21. Slide 21: Solid Expansion of Overseas Carrier Markets

    Solid Expansion of Overseas Carrier Markets Market Share of Carrier Channels in Europe1 Market Share of Carrier Channels in Latin America1 16.8% 12.3% 7.9% 4.6% 3.4% 0.6% 2019 2020 2021 2019 2020 2021 Overseas Smartphone Shipments Through Carrier Smartphone Shipments Carrier Sub-networks Through Car

  22. Slide 22: AIoT

    AIoT

  23. Slide 23: Revenue of IoT and Lifestyle Products Reached a Record High

    Revenue of IoT and Lifestyle Products Reached a Record High IoT and Lifestyle Products Revenue RMB Billions In Q4 2021, IoT and lifestyle products revenue reached RMB25.1 billion, a record high, 26.1% 19.1% 85.0 up 19.1% YoY 25.1 67.4 In 2021, IoT and lifestyle 21.1 products revenue reached RMB85.0

  24. Slide 24: Global Leading Consumer AIoT Platform

    Global Leading Consumer AIoT Platform 434.0 million 8.8 million 107.0 million 63.9 million Connected Devices1 Users with 5 or More Devices AI Assistant MAU2 Mi Home App MAU2 Up 33.6% YoY Connected to Xiaomi’s AIoT Platform1 Up 23.3% YoY Up 42.0% YoY Up 40.4% YoY 1 As of December 31, 2021, excluding

  25. Slide 25: Record High Global Smart TV Revenue in 2021

    Record High Global Smart TV Revenue in 2021 Global Smart TV Shipments in Q4 2021 4.2 million 20%+ up YoY No.1 No.1 TV Brand Smart TV Brand in Mainland China in India for 3 Consecutive for 14 Consecutive Years1 Quarters2 Redmi TV MAX 100" Launched in March 2022 1 According to AVC, by shipments in 201

  26. Slide 26: Continued to Penetrate High-end White Goods Market

    Continued to Penetrate High-end White Goods Market Air Conditioners Washing Machines Global Air Conditioner Shipments in 2021 exceeded 2.0 million, up 70%+ YoY No.1 by Online Sales Volume in 2021 Smart Air Conditioner with Ventilation ranked in the Direct Drive All-in-one Washer/Dryer Category No.1

  27. Slide 27: Leading Wearable Brand Globally and in Mainland China

    Leading Wearable Brand Globally and in Mainland China Wearable Bands1 TWS Global Shipments3 No.2 Mainland China Shipments3 Global Shipments2 No.1 No.2 Mainland China Shipments2 No.2 1 According to Canalys, wearable bands include basic bands, basic watches, and smart watches 2 According to Canalys, b

  28. Slide 28: Maintained Leadership across AIoT Product Categories

    Maintained Leadership across AIoT Product Categories 2021 Online Channel Performance in Mainland China Smart Lock Smart Speaker ··· ··· Ranked No.1 by Sales Volume Ranked No.1 by Sales Volume Cleaning Robot Smart Router ··· ··· Ranked No.2 by Sales Volume Ranked No.2 by Sales Volume Source: AVC, bas

  29. Slide 29: AIoT Business: Strengthening Our Leadership While Targeting High Growth Products

    AIoT Business: Strengthening Our Leadership While Targeting High Growth Products Mainland China AIoT Market Xiaomi 2021 Market Share High Smart Maintaining Bubble size is indicative of Band Smart Harvesting Stable Leadership in Xiaomi product revenue size Cash Flow Lock Growing Markets in Mainland C

  30. Slide 30: Internet Services

    Internet Services

  31. Slide 31: Global MIUI MAU increased by 112.5 million in 2021

    Global MIUI MAU increased by 112.5 million and Mainland China MIUI MAU increased by 18.9 million in 2021 Global MIUI MAU Millions 508.9 485.9 453.8 Global MIUI MAU1 reached 508.9 million, 425.3 396.3 a record high, increased by 112.5 million from Q4 2020, up 28.4% YoY Q4 2020 Q1 2021 Q2 2021 Q3 2021

  32. Slide 32: Internet Services Revenue Achieved Robust Growth

    Internet Services Revenue Achieved Robust Growth In Q4 2021, internet services Internet Services Revenue revenue reached RMB7.3 RMB Billions billion, up 17.7% YoY 18.8% 17.7% 28.2 YoY % In 2021, internet services YoY % 7.3 23.8 -9.9% revenue reached RMB28.2 6.2 billion, up 18.8% YoY 6.2 -14.4% 1.4 6

  33. Slide 33: Continued Growth in Overseas Internet Services

    Continued Growth in Overseas Internet Services Overseas Internet Services Revenue as % of Total Internet Services Revenue Overseas internet services revenue 21.5% 19.9% reached RMB1.6 billion, up 79.5% YoY in Q4 2021, accounting for 21.5% of 15.6% total internet services revenue, a 14.1% 13.8% recor

  34. Slide 34: Advertising and Gaming Driving Revenue Growth

    Advertising and Gaming Driving Revenue Growth Life-time Value (“LTV”)1 Q4 2021 Global pre-installation Pre-installation 12-Month LTV per Smartphone Unit in Mainland China2 revenue reached a record high ~2x ~1.5x Pre-installation Search, Search, performance Q4 2021 Global search, performance- perform

  35. Slide 35: Financials

    Financials

  36. Slide 36: Quarterly Revenue by Region and Segment

    Quarterly Revenue by Region and Segment Total Revenue Total Revenue by Region, Q4 2021 RMB Billions RMB Billions 21.4% 48.7% 85.6 70.5 85.6 51.3% Mainland China Overseas Q4 2020 Q4 2021 Smartphones Revenue IoT and Lifestyle Products Revenue Internet Services Revenue RMB Billions RMB Billions RMB Bil

  37. Slide 37: Annual Revenue by Region and Segment

    Annual Revenue by Region and Segment Total Revenue Total Revenue by Region, 2021 RMB Billions YoY % RMB Billions 33.5% 49.8% 328.3 245.9 205.8 328.3 50.2% Mainland China Overseas 2019 2020 2021 Smartphones Revenue IoT and Lifestyle Products Revenue Internet Services Revenue RMB Billions RMB Billions

  38. Slide 38: Quarterly Gross Margin by Segment

    Quarterly Gross Margin by Segment Overall 18.3% 17.1% 16.1% Q4 2020 Q3 2021 Q4 2021 Smartphones IoT and Lifestyle Products Internet Services 12.8% 73.6% 76.1% 10.5% 10.1% 13.0% 68.4% 12.1% 11.6% Q4 2020 Q3 2021 Q4 2021 Q4 2020 Q3 2021 Q4 2021 Q4 2020 Q3 2021 Q4 2021 38

  39. Slide 39: Annual Gross Margin by Segment

    Annual Gross Margin by Segment Overall 17.7% 14.9% 13.9% 2019 2020 2021 Smartphones IoT and Lifestyle Products Internet Services 74.1% 11.9% 12.8% 13.1% 64.7% 11.2% 61.6% 8.7% 7.2% 2019 2020 2021 2019 2020 2021 2019 2020 2021 39

  40. Slide 40: Continue to Invest in R&D

    Continue to Invest in R&D Operating Expense Ratio 13.4% 13.4% 11.8% Operating expense ratio was 13.4% in 11.2% Q4 2021 R&D expense ratio continued to increase 4.4% 4.5% 3.8% 4.0% Q4 2020 Q4 2021 2020 2021 R&D expense ratio 40

  41. Slide 41: Robust Cash Flow Performance

    Robust Cash Flow Performance Adjusted Operating Cash Flow1 and Capex RMB Billions 11.3 11.9 12.0 (1.1) (1.5) (2.0) Q4 2019 Q4 2020 Q4 2021 Adjusted operating cash flow 1 Capital expenditures Repurchased HKD8.4 billion of Shares in 2021 1 Operating cash flow adjustments including (i) the change of lo

  42. Slide 42: Strong Cash Position

    Strong Cash Position Cash Resources1 RMB Billions 108.0 106.0 Our cash resources reached approximately 66.0 RMB106.0 billion 2019 2020 2021 1 Including (i) cash and cash equivalents, (ii) restricted cash, (iii) short-term bank deposits, (iv) short-term investments measured at fair value through prof

  43. Slide 43: ESG

    ESG

  44. Slide 44: ESG Awards and Recognitions

    ESG Awards and Recognitions Award of Excellence in ESG World’s Best Employer Award of Excellence in ESG Recognized on the by The Chamber of Hong Kong “2021 World’s Best Employers” list Listed Companies by Forbes 44

  45. Slide 45: Data Privacy and Cyber Security

    Data Privacy and Cyber Security In January 2022 In November 2021 German Federal Office for IoT Security Foundation Information Security (BSI) put Xiaomi's IoT Security Policy could not identify any anomalies among the world's best that would require further investigation or other measures In January

  46. Slide 46: Giving back to Our Community

    Giving back to Our Community Disaster Relief In July 2021 Flood disaster relief of RMB50 million for Henan, China1 In October 2021 Flood disaster relief of €1 million for Germany, the Flood disaster relief of RMB10 million for Shanxi, China1 Volcano relief of €100,000 for Spain2 Netherlands and Belg

  47. Slide 47: IR@xiaomi.com

    IR@xiaomi.com

Xiaomi — Q4 2021 Earnings Presentation on 6ix