Management Presentation

Disclaimer

This announcement contains forward-looking statements relating to the business outlook, estimates of financial

performance, forecast business plans and growth strategies of the Group. These forward-looking statements are based

on information currently available to the Group and are stated herein on the basis of the outlook at the time of this

announcement. They are based on certain expectations, assumptions and premises, some of which are subjective or

beyond our control. These forward-looking statements may prove to be incorrect and may not be realised in future.

Underlying these forward-looking statements are a large number of risks and uncertainties. In light of the risks and

uncertainties, the inclusion of forward-looking statements in this announcement should not be regarded as

representations by the Board or the Company that the plans and objectives will be achieved. Furthermore, this

announcement also contains statements based on the Group’s management accounts, which have not been audited or

reviewed by the Auditor, Shareholders and potential investors should therefore not place undue reliance on such

statements.

Strategy and business model

A New Strategy in A New Decade

Provide users with continuous satisfaction

E-commerce

Ad platform

Social platform

Camera app

Big data

Smarthardware

Value-addedservices

3

2018 2019 2020 2021

50 m

100 m

150 m

200 m

MAU

59.59m

200m

Meitu community growth target

4

Daily user-generated

content upload in Dec

2018

Daily PV trend

500k %

0

10000000

20000000

30000000

40000000

2018-12-01 2018-12-31 2019-01-30

30 mn

5

Accumulated PV in Dec

2018

8 bn

Significant growth in page view on community

Make-up Food

6

Anime Travel Fun

Various content categories on community

Enabling physical cosmetics stores to

offer virtual make-ups, facial analysis,

skin test, and make-up

recommendations through Meitu's AR

technology

Improve sale efficiency and channel

online to offline stores

Pilot clients：Sephora, Clarins, Shiseido,

Make Up For Ever, DFS, Dolce & Gabbana

Beauty7

New ad format- MEITUGENIUS

Revenue from Internet business

36% 36%

43%41%

51% 49%

65%

Advertising is the main revenue driver

8

2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4

Advertising IVAS

36% 36%

43%41%

51% 49%70%

76%

Proportion of Advertising Revenue

-

50

100

150

200 2017 revenue（mn） 2018 revenue（mn） YoY growth

281%

9

254%173%

305%

270%

55%

51%

49%

China KA advertising revenue distribution by verticals

Verticals with the highest revenue growth rate for 2018:

Cosmetics & skincare, Maternal & Baby Products, Web Services, Finance, and Medical Services

Advertisers (brand)

2018 Number of advertisers

2018

ARPA (m)

2018 advertising revenue

Number of customers Proportion(%) Revenue (m) Proportion(%)

Repeat Advertisers 91 39% 2.51 288 63%

New Advertisers 144 61% 0.93 134 37%

TOTAL 235 100% 1.54 362 100%

2018 new and repeat advertiser revenue contribution

Average revenue per advertiser ("ARPA")

10

The average revenue from repeat advertisers (domestic KA business) reached RMB 2.51 million, a yoy increase of 44%

Source: Meitu advertising sales data (unaudited)

Results Review

11

750

948

541

456210

492

0

100

200

300

400

500

600

700

800

900

1,000

2017 2018

Internet business

3,740

1,844

2,881

1,907859

-63

-500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2017 2018

Smart hardware

Gross profit (RMB in millions)

Revenue Cost of sales Gross profit Revenue Cost of sales Gross profit

377 mninventory impairment

12

H116 H216

-255

-285

-33 -13

-118

-761

H117 H217 H118

13

H218

Adjusted net profits/losses (RMB in millions)

1,339

3,4212,362

2016 2017 2018

85%

76%

85%

R&D G&A

425 559

1,021

2016 2017 2018

27%

12%

37%

243 416

699

2016 2017 2018

15%9%

25%

199 210286

2016 2017 2018

13%

5%

10%

14

Cost of revenue and expenses (RMB in millions)

Cost of revenue S&M

Note:

All include SBC

2241

25 30

9268

H116 H216 H117 H217 H118 H218

5,515 5,293 5,1723,815

2,694

H216 H117 H217 H118 H218

15

Capital expenditure and cash position(RMB in millions)

Capital expenditure

Cash position

Appendix

16

Year endedDecember 31, 2018

Year ended December 31, 2017

RMB’000 RMB’000

17

Profit & Loss

December 31 December 31

2018 2017

RMB’000 RMB’000

18

Balance sheet

December 31 December 31

2018 2017

RMB’000 RMB’000

19

Balance sheet (continued)

Year ended December 31,

2018 2017

RMB’000 RMB’000

20

Cash flow statement

Year ended December 31,

2018 2017

RMB’000 RMB’000

21

Non-IFRS Financial Measures Reconciliation