SenseTime Group, Inc. Class B · HKEX:20

SenseTime Group, Inc. Class B — H1 2022 Earnings Presentation

42 slides from SenseTime Group, Inc. Class B's earnings presentation, September 2022

  1. Slide 1: 2022 Interim Results Briefing

    2022 Interim Results Briefing September 2022

  2. Slide 2: 2022 H1 Overview

    2022 H1 Overview Implementation of AI Maintain Leading Market Position and Strong Commercial Resilience Technology in 4 Segments Smart Life Smart Auto #1 RMB 1.4bn yoy: +98% yoy: +71% ranked by market share5 RMB 292mn Revenue China Computer Vision RMB 121mn Application Market 22% RMB 0.9bn (66%) RMB

  3. Slide 3: AI Data Center (AIDC) in Operation Since January 2022

    AI Data Center (AIDC) in Operation Since January 2022 “Key Regional 2.5 exaFLOPs 1.0 exaFLOPs Comprehensive AI Infrastructure Demonstration Project” total AI supercomputing power computing power of AIDC awarded by the National Development and Reform Commission (NDRC) of the Group servicing external

  4. Slide 4: Long Term Vision and Investment in AI R&D

    Long Term Vision and Investment in AI R&D RMB 1.9bn 49,000+ 12,500+ R&D expenses2 Cumulative AI models Total patents 40% YTD growth 90% R&D related 4,000+ 6.84 2,100+ R&D professionals New models produced per New patents 69% of total staff R&D employee in 2022 H1 15% YTD growth Note: 1. Data as of 3

  5. Slide 5: Proactively Responding to Pandemic and Macro Environment Changes

    Proactively Responding to Pandemic and Macro Environment Changes Revenue Breakdown by Business Segments Revenue Breakdown by Geographic 2022 H1 2022 H1 Overseas FY2021 Smart Business FY2021 RMB 275mn Smart Life 40% Smart Life 19% Smart 9% 21% Overseas Business 12% Smart Auto 42% 4% Smart Auto Mainla

  6. Slide 6: Smart Business: Digital Transformation Continues Under Pandemic

    Smart Business: Digital Transformation Continues Under Pandemic Revenue (RMBmn) 647 568  Due to control measures during the pandemic, some customers were unable to complete product deployment as planned, resulting in partial delay of revenue recognition 2021 H1 2022 H1  Despite temporary impact fr

  7. Slide 7: Smart Business: Digital Transformation Continues Under Pandemic

    Smart Business: Digital Transformation Continues Under Pandemic Leading Market Position Smart Transportation Consumer Household in Digital Energy Management in Subway System Smart Door Lock 30+ 640 90% State Grid Subway lines Stations Mainstream brands embedded with SenseTime’s recognition modules S

  8. Slide 8: Smart City: Pandemic Postponed Deployment but Raised Importance of Digitalization

    Smart City: Pandemic Postponed Deployment but Raised Importance of Digitalization (RMBmn) Revenue 786  Smart City deployment is postponed by 434 pandemic and related control measures in some regions of Mainland China  Pandemic brought importance and urgency for cities to accelerate full digitaliza

  9. Slide 9: Smart City: Pandemic Postponed Deployment but Raised Importance of Digitalization

    Smart City: Pandemic Postponed Deployment but Raised Importance of Digitalization SenseFoundry Penetration Increase in AI Models and the Maintain Leading Position in Continues to Expand Coverage of Long-tail Scenarios Smart City Industry Connected IoT devices 28,801 1.5mn+ AI models for smart city 2

  10. Slide 10: Smart Life: Software-Hardware Integration for Mobile Devices and IoT

    Smart Life: Successful Software-Hardware Integration Leading to Innovation for Mobile Devices and IoT Markets Revenue Growth (RMBmn) 97.6%  Continue to empower consumer-facing 292 enterprises 148  Major business lines achieved significant growth, including mobile devices, metaverse, healthcare, ed

  11. Slide 11: Smart Life: SenseME Platform for Mobile Devices

    Smart Life: SenseME Platform for Mobile Devices SenseME Platform for Mobile Devices Functions such as face unlock, super-resolution, night view enhancement and smart albums are now standard configuration of smart phones SDK AI Sensors AI ISP Chips 1.7bn+ 5 By end of 2022 cumulative IoT devices AI Se

  12. Slide 12: Smart Life: SenseMARS Platform Enabling Metaverse

    Smart Life: SenseMARS Platform Enabling Metaverse Metaverse Engine on Locations “Human-Objects-Locations” Metaverse based on 3D Perception, AI-Generated Content, and Decision Intelligence 10mn+ Physical space covered (m2) 120+ Locations 200+ APPs … Note: 1. Data as of 30 June 2022 11

  13. Slide 13: Smart Life: SenseMARS Platform Enabling Metaverse

    Smart Life: SenseMARS Platform Enabling Metaverse Metaverse Engine on Human “Human-Objects-Locations” Metaverse based on 3D Perception, AI-Generated Content, and Decision Intelligence 50 Interactive Digital Human Products Created #1 Overall Competitiveness “2022 China Digital Human Market Observatio

  14. Slide 14: Smart Life: SenseMARS Platform Enabling Metaverse

    Smart Life: SenseMARS Platform Enabling Metaverse Metaverse Engine on Objects “Human-Objects-Locations” Metaverse based on 3D Perception, AI-Generated Content, and Decision Intelligence Cooperation with Top IPs 15,000 Limited-edition digital collectibles sold Sold out once launched … Note: 1. Data a

  15. Slide 15: Smart Life: SenseCare Platform for Healthcare

    Smart Life: SenseCare Platform for Healthcare Working with leading hospitals and city-level healthcare projects 18 16 75 Millions AI Modules Domestic & Overseas Hospitals & Medical Medical Tests Medical Device Licenses Institutions Note: 1. Data as of 30 June 2022 14

  16. Slide 16: Smart Life: SenseRobot for Household Consumption

    Smart Life: SenseRobot for Household Consumption SenseRobot — Our First Consumer AI Product for Households Integrates AI vision, robotic arms and AI decision-making intelligence AI Vision Intelligence Decision-Making Intelligence Targeting 200 million chess enthusiasts Robotic Arms Intelligence 15

  17. Slide 17: Smart Auto: SenseAuto Platform Develops in All Fronts

    Smart Auto: SenseAuto Platform Develops in All Fronts Revenue growth: 71.1%  Commercialization in all product fronts (RMBmn) 121  Full-suite technology well received by the market 71  Launched multiple new products  Mass production and delivery to auto- OEM customers 2021 H1 2022 H1  In-depth c

  18. Slide 18: Smart Auto: SenseAuto Cabin and SenseAuto Pilot

    Smart Auto: SenseAuto Cabin and SenseAuto Pilot Product Commercialization 3mn+ Strategic Agreement with GAC Group new vehicles to enable Mass Productions and Delivery to Partners and Car Models … Accelerate the development and mass production of “intelligent vehicles” Intelligent connected vehicles

  19. Slide 19: Smart Auto: SenseAuto Cabin and SenseAuto Pilot

    Smart Auto: SenseAuto Cabin and SenseAuto Pilot SenseAuto Pilot Parking Assistance System V1.4.0 Automatic parking without driver interference Real-time Parking Space Detection Cross-Layer Mapping Obstacle Detection 18

  20. Slide 20: Smart Auto: SenseAuto RoboX

    Smart Auto: SenseAuto RoboX SenseAuto Robobus V1.1.1 SenseAuto Robosweeper V1.1.0 Beijing, Shanghai Lingang, Wuxi, Xi’an Safe, efficient and intelligent Physical deployment Unmanned sweeping operations 19

  21. Slide 21: Smart Auto: SenseAuto Connect

    Smart Auto: SenseAuto Connect Building an industry-leading cloud-based data base & capability center for V2X Connect Platform V1.0.0  Road test licenses awarded in Shanghai, Beijing and Chengdu  Building an industry-leading cloud-based data base and capability center for V2X (Vehicle-to-everything

  22. Slide 22: Smart Auto: SenseAuto Empower

    Smart Auto: SenseAuto Empower Offering automobile companies with AI-as-a-Service based on SenseCore Data Desensitization SDK V1.2.0 “Technical Requirements and Methods for Automobile Transmission Video and Image Desensitization”  Jointly developed by China Association of Automobile Manufacturers, S

  23. Slide 23: AI-as-a-Service Formulating New Revenue Driver

    AI-as-a-Service Formulating New Revenue Driver Lingang AIDC has become the largest commercially operated AI supercomputing center in East China after 6 months of operation. Expected to become the largest in China by year end 2022 External service computing AIDC peak computing power Domestic-made Com

  24. Slide 24: Financial Review

    Financial Review 23

  25. Slide 25: 2022 H1 Financial Overview

    2022 H1 Financial Overview Revenue Gross Profit Adjusted Net Loss(1) (RMB million) (RMB million) (RMB million) 3,048 2,073 (703) (716) 1,652 1,205 1,415 934 (2,564) FX gains/ losses 63 69 (447) 2021 H1 2021 H2 2022 H1 2021 H1 2021 H2 2022 H1 2021 H1 2021 H2 2022 H1 91.8% 17.9% (14.3%) 73.0% 68.0% 66

  26. Slide 26: 2022 H1 Revenue Breakdown

    2022 H1 Revenue Breakdown Smart Smart Smart Smart Business City Life Auto 40% 31% 21% 9% (2021 FY: 42%) (2021 FY: 46%) (2021 FY: 9%) (2021 FY: 4%)  Growth in average  Expansion in number of  AI sensors generated  Selected as supplier for revenue per customer cities served revenue; ready for incr

  27. Slide 27: Operating Expenses

    Operating Expenses R&D Expenses G&A Expenses Selling Expenses Opex(1) Growth (excl. SBC) (RMB million) (RMB million) (RMB million) Opex (excl. SBC) Opex (excl. SBC) Opex (excl. SBC) SBC SBC SBC 43.5% 2,035 39.3% 1,842 152 1,772 40.2% 88 465 1,443 26.1% 1,883 931 855 1,754 51 769 102 1,307 2.3% 389 4

  28. Slide 28: Working Capital

    Working Capital Turnover Days – Period Ending Method(1) Provision for Impairment (as % of gross trade receivables) Cash Conversion Cycle 23.4% 20.0% 16.2% 374 401 388 395 403 2021 H1 2021 YE 2022 H1 Net Impairment Losses on Financial Assets 271 (RMB million) 200 157 142 10.8% 11.1% 38.3% 127 121 96

  29. Slide 29: Capex and Cash Balance

    Capex and Cash Balance Capex(1) Total Cash(2) Equity and Bond Investment(3) (RMB million) (RMB million) (RMB million) Net Cash Equity Investment 23.5% 28.8% 78.4% Total Borrowings Bond Investment 21,793 6,806 340 19,528 1,109 622 18,048 1,461 1,065 877 4,501 4,311 21,453 18,907 16,983 5,345 388 4,50

  30. Slide 30: To Create an AI-Empowered Future Through Innovation

    TO CREATE AN AI-EMPOWERED FUTURE THROUGH INNOVATION 坚持原创,让人工智能引领人类进步

  31. Slide 31: Business Review

    01 Business Review 30

  32. Slide 32: Smart Auto: New Technology Partnership

    Smart Auto: New Technology Partnership Partnership with Alfa Romeo F1 Team ORLEN Extending Application of AI Technology to Motorsport Improving racing performance through reinforcement learning of optimal race strategies, speech transcription, anomaly detection in the race car’s sensor data, compreh

  33. Slide 33: R&D & SenseCore

    R&D & 02 SenseCore 32

  34. Slide 34: Industry-Leading Super-Large Base Model

    Industry-Leading Super-Large Base Model ImageNet Top-1 Accuracy 90.35% Automatic data labeling based on the Super-Large Base Model Automatic data production line based on the Super-Large Base Model Smart Auto Smart City 600X 1/500 Manual Automatic Manual Automatic Labeling speed Cost reduced by 600x

  35. Slide 35: NLP and Decision-Making Intelligence

    NLP and Decision-Making Intelligence Breakthrough in NLP Explore Commercialization of and Speech Recognition Decision-making Intelligence With SenseCore’s multimodal data processing Self-developed general large-scale distributed capabilities, we successfully self-developed leading training framework

  36. Slide 36: Strategic Vision

    04 Strategic Vision 35

  37. Slide 37: Strategic Vision

    Strategic Vision SenseCore Smart Life Smart Auto — — — Commercialize SenseCore Develop and unleash the Achieve mass production and through Shanghai Lingang growth potential of AI sensor, provide open, co-developed AIDC, empowering AI AI ISP chips and self-driving capabilities to production and R&D a

  38. Slide 38: ESG Initiatives

    05 ESG Initiatives 37

  39. Slide 39: Human-Centric AI Technology Promoting Sustainable Development

    Human-Centric AI Technology Promoting Sustainable Development First Corporate Social Building AI Innovation Commitment to Data Security Responsibility Report Post-IPO Ecosystem and Privacy Protection Open source and Consecutively received Committed to develop open partnerships 3 authoritative certif

  40. Slide 40: Fighting Covid with AI

    Fighting Covid with AI SenseThunder- SenseThunder-Air “All-in-One” Air “All-in-One” System System Deployment and donation Digital Hospital Management Fangcang Increase efficiency of anti-pandemic work Hospitals & Self-Driving SenseTime Education Platform Shuttle Minibus Remote online teaching suppor

  41. Slide 41: Providing for Amyotrophic Lateral Sclerosis (ALS) Patients

    Providing for Amyotrophic Lateral Sclerosis (ALS) Patients AI-Powered Intelligent Nursing System Around-the-clock contactless care for ALS1 patients Vital signs and special situations monitoring Extra care and support for patients Note: 1. Amyotrophic Lateral Sclerosis 40

  42. Slide 42: Q&A

    Q&A 41

SenseTime Group — H1 2022 Earnings Presentation on 6ix