Cheetah Mobile, Inc.

This presentation contains forward-looking statements. These statements are made under the “safe harbor”

provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be

identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates”

and similar statements. Among other things, the business outlook and quotations from management in this

presentation, as well as Cheetah Mobile’s strategic and operational plans, contain forward-looking statements.

Cheetah Mobile may also make written or oral forward-looking statements in its periodic reports to the U.S.

Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other

written materials and in oral statements made by its officers, directors or employees to third parties. Statements that

are not historical facts, including statements about Cheetah Mobile’s beliefs and expectations, are forward-looking

statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause

actual results to differ materially from those contained in any forward-looking statement, including but not limited to

the following: Cheetah Mobile’s goals and strategies; Cheetah Mobile’s ability to retain and increase its user base

and expand its product and service offerings; Cheetah Mobile’s ability to monetize its platform; Cheetah Mobile’s

future business development, financial condition and results of operations; competition from companies in a number

of industries including internet companies that provide online marketing services and internet value-added services;

expected changes in Cheetah Mobile’s revenues and certain cost or expense items; fluctuations in general

economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further

information regarding these and other risks is included in Cheetah Mobile’s filings with the SEC. All information

provided in this presentation is as of the date of this presentation, and Cheetah Mobile does not undertake any

obligation to update any forward-looking statement, except as required under applicable law.

Disclaimer

01

◼ Business Overview

◼ Financials

3

Three Pillars to Drive Revenue Growth

Utility

Products

Core Utility Apps

Personalization and

life style Utility AppsContent App

Mobile

Entertainment

Games

AI

Business

To Consumers

To Businesses

4

Revenue Model

Mobile

Traffic

3rd Party

Ad Platform

Cheetah

Mobile

Ad

Platform

Direct Sales

Monetize mobile traffic through advertising

Monetize mobile traffic through in-app purchases

Mobile

Games/

Live.me

In-app

Purchases

5

Revenue Contribution by Region

Overseas

Utility Products

and Related Services

Mobile

Games

LiveMe

AI

6

China

PCPC

Mobile

Core Utility Products

CM

Browser

Duba

Website

Navigator

DriverGenius

Clean

Master

Security

Master

Battery

Doctor

Safe

Wallet

Photo

Grid

CM

Launcher

Cheetah

Keyboard

CM

Show

AI Driven

Broad Product Matrix for Utility Apps

Personalization

7

Life style

Qu

Keyboard

Mini ProgramYundong

Zhuan

（运动赚）

Mobile in China

Mobile in China

Mobile in China

Mobile Overseas

Mobile Overseas

Mobile Overseas

PC

PC

PC

0

100

200

300

400

500

600

700

800

900

3Q17 2Q18 3Q18

825756

836 • Revenues: +4% y/y, +11% q/q, ~60% of the

total revenue

• Mobile utility business in the domestic

market +54% y/y, +18% q/q to 28% of total

revenue in 3Q18 ; growth in the domestic

market offset the decline in overseas markets,

which were impacted by Facebook and Google

discontinuing ads on mobile phone lock

screens

• Revenue from overseas mobile utility

business + 8% y/y in US$ terms, excluding the

Facebook and Google incidents

• The sequential growth was due to seasonality

effect

Healthy Revenues from Utility Products

RMB, million

8

RMB, million

• Non-GAAP operating

profit margin was 32% in

3Q18

• The q/q decrease mainly

due to increased

promotional activities in

the domestic market,

where we have seen

more emerging growth

opportunities

Strong Profits and Cash from Utility Products

9

157 141

228

318

179

213

260

327

265 282

264

17%15%

24%

32%

22%

26%

32%

34%36%

37%

32%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

50

100

150

200

250

300

350

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Non-GAAP Operating Profit Non-GAAP Operating Margin

New Utility Apps in China and Overseas Market

10

Personalization, Life style, AI-driven

• Offering personalized ring tones

• Offering a wide array of 3D video

effects

• Targeting younger users in China

• An AI-powered keyboard app

• Offering smart prediction, and

voice input

• Offering thousands of themes

Mobile Utility Business in China Grew Rapidly

• Users: MAU in the domestic market grew by

17% y/y and 6% q/q, reaching a new high of

171 million

• Revenues: Revenues from mobile utility

products in the domestic market grew by 54%

y/y and 18% q/q

Our Achievements in the Domestic Market

Our Strengths in the Domestic Market

• Replicating our success in the overseas market

to China

• Built partnerships with several local partners to

distribute our apps

• Strong profits and cash flow generated by utility

products provides a solid foundation for our

investments in new initiatives

11

• Market Trend: growth of mobile Internet penetration in lower-tier cities

• Our Tactics: tailor our products to attract users in lower-tier cities

• Achievement: DAUs continue to grow in our domestic market, driven by the

growth of active users in lower-tier cities

Market Opportunities in China’s Mobile Internet

Space

Mobile Internet Population in China

12

Source: Deutsche Bank Research Report

Population million

446 475 469 499 505

454 496 538

571 599

0

200

400

600

800

1000

1200

2016 2017 2018F 2019F 2020F

First- and second- tier Cities Lower-tier Cites

Both Mobile Utility Product Revenues in the

Overseas Markets and PC Revenues were Stabilized

• Mobile Utility Products in the Overseas Markets:

✓ While 3Q18 revenues from mobile utility products in the overseas markets

decreased double digits y/y, it resumed its sequential growth. However,

excluding the Facebook and Google incidents, revenues from overseas

mobile utility business + 8% y/y in US$ terms

✓ Non-GAAP operating profit for our mobile utility product in the overseas

market was more than 40%

• PC Business: 3Q18 PC revenues were flat y/y, but +4% q/q

13

Arrow.io

Rolling Sky

Dancing Ball

Cooking Adventure

Tap Tap Dash

Mafia Revenge

Piano Tiles 2

Skid Storm

Tap Tap Fish

Bricks n Balls

Liveme Trade Town

Mobile

Entertainment

Dancing Line

Fast Growing Mobile Entertainment Business

14

498

333

362

• Revenues: +37% y/y, +50% q/q, accounted

for ~40% of total revenue in 3Q18. The growth

was driven by both our mobile games

operation and LiveMe

✓ Mobile games: +78% y/y, +106% q/q to

RMB285 million, driven by ramp-up of

Bricks n Balls, and the continued strong

performance of Piano Tiles 2, Dancing

Line, and Rolling Sky

✓ Content: +5% y/y and +9% q/q to

RMB213 million, driven by Live.me, as

several new features were introduced,

which further improved its ARPU

Significant Increase in Mobile Entertainment Revenue

RMB, million

15

Strong Game Developing and Publishing Capability

2015 2016 2017 2018

• Identify promising games from large amount of candidates

• Improve and fine tune game experience

• Increase user engagement and time spent

• Improve ARPU from mobile gamers

16

Bricks n Balls (BnB), a Classic Block Elimination Game,

Started Ramping Up

• Google Play featured BnB on its global

homepage in September 2018

• According to App Annie, BnB was ranked

among the top 3 casual games in the US on

Google Play in terms of user downloads

• According to App Annie, BnB was ranked

among the top 10 board games on Apple’s

App Store in terms of user downloads

17

Piano Tiles 2 Rolling Sky Dancing Line

High-quality Third-party Content Enriching Flagship Games

18

Leveraging Mini Game to Promote Our Games

19

Bricks n BallsPiano Tiles 2Dancing Line Rolling Sky

• We have integrated our best-selling game titles with several mini game

platforms to expand its user base

• So far, our games have been on the WeChat, QQ and Facebook mini

game platforms. We expect to integrate our games with more platforms

in the future

19

LiveMe: Popular Live Streaming Platform in the

Overseas Markets

20

• LiveMe: a popular live streaming app launched

in April 2016. Live broadcasting is very popular

in China. We brought this model overseas

• Monetization: introduced virtual gifts in 2Q16;

this feature contributes to the vast majority of

LiveMe’s revenues

• Financing: Series A – US$60 million in May

2017; Series B - US$50 million in November

2017

• Ranking: No. 3 grossing social app in the U.S.

on Google Play. Top 10 gross social app in the

U.S. on Apple’s App Store

• Recent Development:

✓ Improve the ARPU of top paying users in the

US and Middle East

✓ Tailor-made several offline and online

activities for top paying users in the US and

Middle East

RMB, million

• The reduced losses were primarily

attributable to an increase in revenues

from mobile game operations

✓ Non-GAAP operating profit for

mobile games operation +RMB13

million y/y, +17 million q/q

✓ OPM for the existing games

reached 24% VS 7% same

period last year

• The y/y reduced loss was due to the

disposal of News Republic in 4Q17

Non-GAAP Operating Loss for the Mobile Entertainment

Business Continued to Narrow

21

• Cheetah Mobile invested ~US$40 million in Beijing OrionStar, an AI

company incorporated in China

• Cheetah Mobile holds about ~40% of equity in Beijing OrionStar

22

Invest in Beijing OrionStar to Strengthen AI Technologies

Complete AI Technology Suite in Beijing OrionStar

23

Innovative AI Hardware Offerings from Cheetah Mobile

and OrionStar

Orion OS Platform

AI Hardware Products

Users

Facial

Recognition

Voice

Recognition

Text to

SpeechNLP

Indoor

Navigation

Robotics

Arm 24

To BusinessesTo Consumers

Cheetah Voicepod is An AI-based Smart Speaker –

Developed by Cheetah Mobile

Superior sound WIFI music

streaming

Play audiobooks, news

briefs, and more Far-field

voice

recognition

2-year

QQ Music

subscription

service

• Started delivering in April.

• Promoted on leading social

media platforms such as

Douyin and Miaopai.

• Distribution channels:

➢ Available on JD.com

and Tmall.com

➢ Expanding offline

distribution channel

• Sound and voice have been

the two most favorite

features of our users.

25

Cheetah Translator: A Top Seller During This Year’s Single’s

Day Shopping Festival

– Developed by Cheetah Mobile

• Jointly developed with Beijing OrionStar

• User-friendly single-button design that can

automatically identify source language and

target language

• Affordable price of ~US$40

• Currently supported languages: Chinese,

English, Japanese, Korean, Thai and

Spanish

• Partnerships with well-known retail chains

for a larger customer base

26

• Cheetah Mobile has exclusive distribution rights and is

responsible for implementation in various work

locations

GreetBot: A Commercially Launched Receptionist Robot

Focusing on the Business to Business Market - Developed by

OrionStar

• Developed by OrionStar, a robot that can function as a

receptionist or guide working at office front desks, hotel

lobbies, shopping malls, or supermarkets

27

4Q18 Revenue Guidance:

RMB1,390 – RMB1,430 million (US$202 – 208 million)

28

Financial Guidance

02

◼ Business Overview

◼ Financials

29

30

(RMB, million)

Total Revenues

31

(RMB, million)

Non-GAAP Gross Profit

Non-GAAP Operating Expenses

32

(RMB, million)

33

(RMB, million)

Non-GAAP Operating Profit

34

(RMB, million)

Non-GAAP Net Income (Loss)

1050

Balance sheet snapshot

Notes1. Free cash flow = operating cash flow – Capex

Sep. 2018

Free cash flow1

Capital expenditure

(RMB, million)

(RMB, million)

35

(RMB, million)

Balance Sheet

Cash and cash equivalents, restricted cash

and short-term investments3,625

Accounts receivable, net 567

Other current assets 986

Total current assets 5,178

Long-term Investment 1,608

Other non-current assets 908

Total non-current assets 2,516

Total assets 7,693

Accounts payable 164

Accrued expenses and others 1,485

Others 95

Total current liabilities 1,744

Total non current liabilities 146

Total liabilities 1,890

Total mezzanine equity 678

Total shareholders' equity 4,944

Noncontrolling interests 181

Total equity 5,126

Total liabilities, mezzanine equity and equity 7,693

96

118

26

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40

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140

2015 2016 2017

851

280

595

0

100

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900

2015 2016 2017

Thank you!