#1וח וח Xiaomi Corporation Q3 2023 Results Announcement#2Disclaimer 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, the "Group") for use in presentations by the Group and does not constitute a recommendation regarding the securities of the Group. No part of this presentation should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. 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This presentation and the information contained herein does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities of the Company or any of its subsidiaries or affiliates in any jurisdiction. The securities of the Company have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered, sold or delivered within the United States or to U.S. persons absent from registration under or an applicable exemption from the registration requirements of the United States securities laws. In addition, certain information related to other companies and market in general presented in this presentation has been obtained from publicly available information. The accuracy and appropriateness of that information has not been verified by the Company and cannot be guaranteed. No invitation is made by this presentation or the information contained herein to enter into, or offer to enter into, any agreement to purchase, acquire, dispose of, subscribe for or underwrite any securities or structured products, and no offer is made of any shares in or debentures of a company for purchase or subscription except as permitted under relevant laws. וח 2#3Q3 2023 Overall Financial Highlights Revenue RMB 70.9 billion 0.6% YoY Gross Profit Margin % 22.7% 6.1ppt YoY Adjusted Net Profit¹ RMB 6.0 billion RMB Cash 182.9% YoY Resources³ 127.6 billion Including expenses related to smart EV and other new initiatives² RMB1.7 billion 35.4% YoY וח 2 1 2 3 Defined as profit for the period, as adjusted by adding back (i) share-based compensation, (ii) net fair value changes on investments, (iii) amortization of intangible assets resulting from acquisitions, (iv) changes of value of financial liabilities to fund investors, and (v) income tax effects of non-IFRS adjustments Expenses related to smart EV and other new initiatives exclude share-based compensation expenses related to smart EV and other new initiatives of RMBO.2 billion Including but not limited to (i) cash and cash equivalents, (ii) restricted cash, (iii) short-term bank deposits, (iv) short-term investments measured at fair value through profit or loss, (v) short-term investments measured at amortized cost, (vi) long-term bank deposits and (vii) other investments included in long-term investments measured at fair value through profit or loss 3#4Q3 2023 Overall Business Highlights #3 Global Market Share Ranking¹ AloT Smartphones 14.1% Global Market Share¹ 55 markets Ranked Top 31 698.9 million AloT Connected Devices² 25.2% YoY 13.7 million Users with 5 or More Connected Devices² 26.0% YoY 623.1 million Global MIUI MAU³ 10.5% YoY 65 markets Internet Services 151.9 million Ranked Top 5¹ According to Canalys, by shipments in Q3 2023 As of September 30, 2023, excluding smartphones, tablets and laptops 1 2 3 In September 2023 Mainland China MIUI MAU³ 7.4% YoY וח 2 4#5Strategy Upgrade וח#6Xiaomi'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 invest in technologies that will benefit humanity וח 60#7Strategy Upgrade: [ Human x Car x Home ] 暂无播放 וח Human x Car x Home | Home Wi-F 已连接 中国移动 3.28GB * E + O All your needs in one smart ecosystem 7#8Xiaomi HyperOS: 13 Years of Exploration Mobile OS Embedded OS Self-Developed OS In-Car OS 2010 Birth of MIUI 2014 CESEMOU 2016 2017 2019 CONECESSORBONECTORES 2021 Early 2022 Late 2023 Unified IoT device connection protocol Introduction of Xiaomi Vela Cross-platform quick app framework activated Pre-development of Xiaomi Mina OS וח 2 Development of the operating system for Xiaomi EV Unified software architecture, system development lines integration completed Unveiled Xiaomi HyperOS 8#9Xiaomi HyperOS: a Human-centric Operating System Designed for [Human x Car x Home] Ecosystem Xiaomi HyperOS SPU Comprehensive Refactoring: Optimize performance for individual device Cross-Device Intelligent Connectivity: Create seamless cross end-device connections Proactive Intelligence: Serve as an intelligence hub delivering intelligent services to users End-to-End Security: Ensure robust cross-device and system-wide privacy and security Open Platform: Foster ecosystem development collaboration with global developers P וח O#10lot Open Platform וח 2 [ Smart Device Partners] Open Access to Over 200 Categories [ Home Industry Partners] Extend Connectivity Standards xiaomi vela Open-Source the Vela System [ Individual Developers ] Full Access 10#11Business and Financial Highlights וח#12Global Smartphone Shipments Market Share Increased for 3 Consecutive Quarters Vendor Q3 2023 Shipments (Million Units) YoY Shipments Q3 2023 Market Share Changes Global Smartphone Shipments and Market Share Samsung 58.6 19.9% -8.5% 14.1% 12.9% 11.3% Apple 50.0 17.0% -5.5% 41.5 11.2% Xiaomi 41.5 14.1% 2.4% 33.3 33.2 30.5 OPPO 26.4 9.0% -7.5% Transsion 26.0 8.8% 39.5% Others 92.1 31.2% -1.1% Total 294.6 100.0% -1.1% Source: Canalys, by shipments Q4 2022 Q1 2023 Global Smartphone Shipments (Million Units) Q2 2023 Q3 2023 ―― Market Share (%) וח 2 12#13Market Share Increased in All Major Markets Globally in Q3 2023 Q3 2023 Smartphone Shipments Ranking and Market Share No.3 14.1% Global +1.2% No.3 18.3% Latin America +1.8% +2.1% No.2 23.3% Europe 1+0.6% 1+0.2% No.5 No.3 17.7% Middle East 13.6% Mainland China No.3 14.9% 1+0.7% No.3 10.7% Africa Southeast No.2 17.7% Asia India +2.1% +2.6% Source: Canalys, by shipments Market Share Improvement Compare with Q2 2023 13 P וח#14Xiaomi 14 Series: Our New Flagship with Enhanced Technologies and Xiaomi HyperOS Launched in Mainland China in October 2023 Xiao iwoeix iwoeix Sales Volume 6 times of Last Series¹ Note: Specifications based on Xiaomi 14 Pro 1 In the first five minutes of sales launch Summilux Leica Summilux Optical Lenses 第三代 Snapdragon World's First 骁龙 SnapdragonⓇ 8 Gen 3 Mobile Platform Xiaomi Ceramic Glass 10x Higher Drop Resistance and 1.25x Higher Scratch Resistance וח Industry-leading f/1.42 - ƒ/4.0 Variable Aperture Capability Xiaomi HyperOS 小米澎湃OS Xiaomi HyperOS Unleashing the Full Performance Potential of Xiaomi 14 Series Innovative All-Around Liquid Display 14#151 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 by Week in Mainland China 21.9% RMB4,000-6,000 Smartphone Market Share² by Week in Mainland China 51.1% W33 W34 W35 W36 W37 W38 W39 W40 W41 W42 W43 W44 W45 W33 W34 W35 W36 W37 W38 W39 W40 W41 W42 W43 W44 W45 Positive review rate on JD.com in one month after product launch. For Xiaomi 14 Series, the positive review rate on JD.com was collected by the end of November 19, 2023. Based on ratings from Xiaomi JD self- operated flagship store 2 By units sold in mainland China, according to third-party data. W33-W45 refer to the week starts from Monday August 14, 2023 to Monday November 06, 2023 וח 15#161 2 Record Results During Double 11 Shopping Festival 小米11.11终极战报 וח 全渠道支付金额破 2241Z 元 创历年大促新纪录 Xiaomi 14 小米11.11 全程战报 四大平台 国产冠军 京东4K-6K价位段国产手机销量/销额 双料冠军 天猫国产手机销量冠军 抖音国产手机销量/销额 双料冠军 拼多多4-6K价位段国产手机销量/销额 双料冠军 Ромелиор Xiaomi HyperOS וח Cumulative Paid GMV Over RMB22.4 billion' Registered a Shopping Festival Record High Xiaomi 14 No.1 Domestic Smartphone Model Across 4 Platforms2 小米之家 销额同比增长 77% 手机 销量同比增长109% Offline Retail Store GMV up 77% YoY וח 2 Across all channels and platforms, From 20:00:00 October 23, 2023 to 23:59:59 November 11, 2023 RMB4,000-6,000 No.1 domestic smartphone brand by sales volume and sales value, from 20:00:00 October 23, 2023 to 23:59:59 November 11, 2023 across JD.com; No.1 domestic smartphone brand by sales volume, from 20:00:00 October 24, 2023 to 23:59:59 November 11, 2023 across Tmall.com; No.1 domestic smartphone brand by sales volume and sales value, from 20:00:00 October 20, 2023 to 23:59:59 November 11, 2023 across Douyin; RMB4,000-6,000 No.1 domestic smartphone brand by sales volume and sales value, from 20:00:00 October 20, 2023 to 23:59:59 November 11, 2023 across Pinduoduo 16#17R&D Expenses Ramped up to RMB5.0 billion in Q3 2023 R&D Expenses RMB Billions 3.2 2017 2017-2022 CAGR: 38.4% 9.3 7.5 5.8 -20 Q3 2023 R&D Expenses 16.0 Up 22% YoY 13.6 13.2 2018 2019 2020 2021 2022 2023 1 Source: National Bureau of Statistics 2 As of September 30, 2023 2022 R&D Expenses as % of Nationwide R&D Expenses¹ 0.5%+ Number of R&D Employees² 53%+ of Total Employees Number of Granted Patents Globally² 35,000+ וח 2 17#182:36 Fully Embrace Al Enhance User Experience A Al Real-time 你希望小爱在这段内容上做什么样的改动呢? Translation Al Input Method □ 修饰这段文字,要求描述内容更专业 ● 延续上文风格,扩写这段文字 山 扩写这段发言稿,使其描述内容更真实 有问题尽管问我.... A 88 <I> Q W E R T YU о P A S D F G H J KL 分词 Z X C V B NM ☑ 符 123 中 J ب Al Portrait B Al Assistant Text-to-Image Generation Improve Operational Efficiency Sales Forecasts อ Al Smart painting Intelligent Decision Support Al Image Extender & Al Image Search Intelligent Customer Service וח 2 Note: These features are available for use after obtaining eligibility for the "Xiaomi HyperOS AI Beta Test" on the Xiaomi Community. During beta test period, it is only supported on Xiaomi 14 series. Specifically for "AI Smart Painting", it is supported on Xiaomi Pad 6 Max 14, Xiaomi Pad 6 Pro and Xiaomi Pad 6 during beta test period after obtaining eligibility for the "Xiaomi HyperOS AI Beta Test". For specific beta test rules, please refer to the "Xiaomi HyperOS AI Beta Test Announcement" 18#19Q3 2023 Revenue Achieved YoY and QoQ Growth Total revenue RMB70.9 billion, up 5.3% QoQ and achieved YoY growth Smartphones revenue grew 13.8% QoQ IoT and lifestyle products revenue grew 8.5% YoY Internet services revenue reached a record high, grew 9.7% YoY Revenue RMB Billions 70.9 70.5 67.4 7.1 7.8 7.4 19.1 20.7 22.3 42.5 41.6 36.6 Q3 2022 Q2 2023 Smartphones Internet services Q3 2023 IoT and lifestyle products Others וח 2 19#20Overall Gross Profit Margin % Gross Profit Margins Reached Record Highs % Smartphone Gross Profit Margin IoT Gross Profit Margin % וח 2 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 ייון וון יוון 22.7% 20 20#21Maintained Discipline in Managing Operating Expenses Operating Expenses RMB Billions 11.9 11.1 10.2 0.2 1.2 10.2 ---- 0.2 9.4 0.2 0.8 0.2 1.1 F0.1 1.4 1.7 10.4 9.2 9.1 8.6 8.0 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Operating expenses (excluding expenses related to smart EV and other new initiatives) Expenses related to smart EV and other new initiatives excluding share-based compensation (SBC) expenses SBC expenses related to smart EV and other new initiatives וח 21#221 2 Adjusted Net Profit Increased 182.9% YoY Adjusted Net Profit¹ RMB Billions 5.4% 8.4% 7.6% 3.0% 1.7 1.4 2.2% 1.1 6.0 0.8 5.1 1.2 3.2 2.1 1.5 Q3 2022 Q4 2022 Q1 2023 Adjusted Net Profit¹ Expenses related to smart EV and other new initiatives² Q2 2023 Q3 2023 Adjusted Net Profit¹ Margin וח Defined as profit for the period, as adjusted by adding back (i) share-based compensation, (ii) net fair value changes on investments, (iii) amortization of intangible assets resulting from acquisitions, (iv) changes of value of financial liabilities to fund investors, and (v) income tax effects of non-IFRS adjustments Expenses related to smart EV and other new initiatives exclude share-based compensation expenses related to smart EV and other new initiatives 22 22#23Lowest 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 7.3 36.8 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) Q3 2022 (3.5) Q4 2022 (3.7) (3.3) (2.7) Q1 2023 Q2 2023 Q3 2023 1 Including work in progress, spare parts, and others Raw materials Finished goods Others¹ Provision for impairment וח 23#241 Record High Cash Position Our cash resources were over RMB127.6 billion Cash Resources¹ RMB Billions 127.6 113.2 94.6 Q1 2023 Q2 2023 Q3 2023 וח Including but not limited to (i) cash and cash equivalents, (ii) restricted cash, (iii) short-term bank deposits, (iv) short-term investments measured at fair value through profit or loss, (v) short-term investments measured at amortized cost, (vi) long-term bank deposits and (vii) other investments included in long-term investments measured at fair value through profit or loss 24#25ESG וח#261 Fully Integrated ESG Management into Our Business Operations Carbon Neutrality By 2040 CARBON NEUTRAL Achieve carbon neutrality in our own operations of our existing businesses¹ ESG Ratings Score Improved from both MSCI & Sustainalytics 100% renewable energy Carbon Neutralization Action Report by the end of 2023 World's Best Employer Recognized on the 2023 WORLD'S BEST EMPLOYERS List by Forbes Opportunities in Clean Tech Electronic Waste Privacy & Data Security Data Privacy and Security Human Rights - Supply Chain Carbon - Own Operations On the list for 3 consecutive years Based on our latest earnings announcement, our existing businesses include smartphones, IoT and lifestyle products, internet services, and others P וח 46 26#27Giving back to Our Society וח 2 Poverty and Disaster Relief Cumulative Donation of RMB156 million¹ Talent Development Xiaomi Scholarships Program Covered 60 Colleges and Universities¹ Technology Innovation Xiaomi Innovation Joint Fund Cumulative Donation of RMB108 million and 74 Scientific Projects¹ 1 By Beijing Xiaomi Foundation, as of October 2023 27 22#28Smartphones וח#29Smartphone Shipments Exceeded 41 million Units in Q3 2023 Achieved Both YoY and QoQ Growth In Q3 2023, smartphones revenue was RMB41.6 billion Smartphone shipments were 41.8 million units, rose 27% QoQ Gross profit margin reached 16.6%, registered a record high Smartphones Revenue RMB Billions 42.5 41.6 36.6 Q3 2022 Q2 2023 Q3 2023 וח 29 29#30Mainland China Smartphone Shipments Ranked No.5 in Q3 2023 Source: Canalys, by shipments Vendor Q3 2023 Shipments (Million Units) Q3 2023 Market Share YoY Shipments Changes HONOR 11.8 OPPO 10.9 17.7% 16.4% -1.0% -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% -4.5% 30 P וח#31Redmi Note 13 Series: Flagship Experience for Mass Market Launched in Mainland China in September 2023 Camera 200MP Samsung ISOCELL HP3 Sensor Display 1.5K FHD+AMOLED 1,800nit Peak Brightness 85.36% 120W MAX Charging 5,000mAh Battery 120W Fast-charging Xiaomi Imaging Mastermind Corning Gorilla Glass Victus Redmi x AAPE Limited Edition Note: Specifications based on Redmi Note 13 Pro and on Redmi Note 13 Pro+ Red Sales Volume Exceeded 410,000 Units in the First Hour of Sales Launch וח 31#32Latin America Smartphone shipments Q3 2023 43% Reinforce Global Presence Africa Smartphone shipments Q3 2023 100% Middle East Smartphone shipments Q3 2023 20% Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Source: Canalys, by shipments וח 2 32 32#33AloT וח#34Global Leading Consumer AloT Platform Number of Connected Devices¹ Millions Users with 5 or More Devices Connected to Xiaomi's AloT Platform¹ Millions Mi Home App MAU Millions 558.3 654.5 618.0 589.4 698.9 13.7 13.0 12.3 11.6 10.9 84.0 82.9 78.1 75.8 72.4 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 1 Excluding smartphones, tablets and laptops וח 34#35Resilient lot and Lifestyle Products Revenue In Q3 2023, IoT and lifestyle products revenue reached RMB20.7 billion, up 8.5% YoY Gross profit margin reached 17.8%, registered a record high IoT and Lifestyle Products Revenue RMB Billions 22.3 20.7 19.1 Q3 2022 Q2 2023 Q3 2023 וח 35#36Smart 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 וח 2 36 56#37Smart Large Home Appliances: Momentum Continued Air Conditioners The number of air conditioner shipments by the end of Q3 2023 exceeded 2022 full year level Refrigerators Refrigerator shipments reached a record high of over 670k units in Q3 2023, up 95% YoY Washing Machines Washing machine shipments exceeded 310k units in Q3 2023, up 28% YoY ИЗЗАСТРА וח 37#38Tablets: Ranked among Top 5 Globally Global Shipments¹ in Q3 2023 up 120% YoY Redmi Pad SE Launched in Overseas in August 2023 Launched in Mainland China in September 2023 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 shipments in Q3 2023 וח 2 38#39Wearables: Leading Position in Mainland China Leading Brand TWS Mainland China Shipments¹ No.2 New Product Launch Xiaomi Smart Watch S3 Launched in Mainland China in October 2023 A 1.43" AMOLED display featured a smooth 60Hz refresh rate Innovative interchangeable bezel design Leveraging L1+L5 dual-frequency GNSS chip for precise positioning ysbe, Bequi 1 According to Canalys, by shipments in Q3 2023 TUESDAY 09 28 (a M O 0 A AUGUST 16 וח 39#40Internet Services וח#41Global MIUI MAU Reached 623 million and Mainland China MIUI MAU Reached 152 million in Q3 2023 Global MIUI MAU¹ reached 623.1 million, YoY growth of 59.1 million Mainland China MIUI MAU¹ reached 151.9 million, YoY growth of 10.5 million Global TV MAU2 exceeded 64 million All three metrics reached record highs 12 In September 2023 In September 2023, including TV, TV box and TV stick users Global MIUI MAU Millions YoY % 10.5% 623.1 594.8 582.1 563.9 606.0 11.2 17.1 -12.7 18.2 וח Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Mainland China MIUI MAU Millions YoY % 7.4% 141.4 143.7 -2.3 146.2 -2.6 149.3 151.9 2.6 3.1 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 41#42Internet Services Revenue Achieved Another Record High In Q3 2023, internet services revenue reached RMB7.8 billion, a record high Advertising revenue reached a record high, up 15.7% YoY Gaming revenue continued to grow YoY for ninth consecutive quarters Internet Services Revenue RMB Billions 7.8 YoY % 7.4 7.1 1.3 -7.2% 1.3 1.4 1.1 1.0 1.0 5.6% 15.7% 5.1 5.4 4.7 Q3 2022 Q2 2023 Q3 2023 Advertising Gaming Other internet value-added services וח 42#43Overseas Internet Services Revenue Reached a Record High In Q3 2023, overseas internet services revenue reached a record high of RMB2.3 billion, up 35.8% YoY, accounting for 30.0% of total internet services revenue Overseas Internet Services Revenue as % of Total Internet Services Revenue 26.8% 26.1% 25.7% 24.2% 30.0% וח 2 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 43#44וח וח [email protected] https://ir.mi.com/