VNET Group, Inc. · NASDAQ:VNET
VNET — 21Vianet Group — Investor Presentation (August 2020)
24 slides from VNET's investor presentation, August 2020
Slide 1: 21Vianet Group, Inc. Investor Presentation
21Vianet Group, Inc. Investor Presentation August 2020
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of 21Vianet Group, Inc. (the “Company”) in any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be
Slide 3: Company Overview
Ht 20 7 KE www.21vianet.com Company Overview
Slide 4: 2Q20 Highlights
2Q20 Highlights 28.8% YoY 4,404 R Net revenue growth Net adds 17.5% YoY 44,050 R Adj. EBITDA growth Total capacity Sales momentum USD 150mm Retail IDC Preferred shares by Blackstone Started severing China Everbright Bank Wholesale IDC ~130MW committed under MOUs Source: Company filings. 4
Slide 5: A Pioneer and Leader in China's Fast Growing IDC Services Market
A Pioneer and Leader in China’s Fast Growing IDC Services Market Pioneer and Leader Market Potential(2) Future Upside A leading carrier-neutral and cloud- China’s carrier-neutral data center Dual-core strategy addressing both neutral data center services services market is fast growing wholesa
Slide 6: Dual-core Strategy for IDC Business
Dual-core Strategy for IDC Business Retail Wholesale Turn-key hybrid cloud Value added services Hyperscale IDC Wholesale colocation solutions Focus on high-growth verticals: Targeting large enterprise customers: @ Online Mobile IoT Internet Fintech streaming Our Strength: Our Strength: Scalable ID
Slide 7: Resource Pipeline to Support IDC Growth
Resource Pipeline to Support IDC Growth IDC Pipeline Capacity (1) Tenure Status 1H20 2H20 FY2020 FY2021 Beijing East II Leased Under Construction ~1,400 ~1,400 Beijing West Phase II Leased Under Construction ~1,100 ~1,100 Beijing South Phase II Leased Under Construction ~1,100 Guangzhou SC Phase II
Slide 8: Ongoing Development of Wholesale Projects
Ongoing Development of Wholesale Projects Jiangsu III Jiangsu Campus Beijing Initial Capacity ~ 5,000 R Initial Capacity > 3,000 R Total Capacity > 1,000 R Client Commitment Alibaba Pre-commitment Rate 95% Pre-commitment Rate 95% Expected Delivery Date 2020 Expected Delivery Date 2021 Expected Deliv
Slide 9: Investment Highlights
Ht 20 ZK www.21vianet.com vestment Highlights 7
Slide 10: Investment Highlights
Investment Highlights A Pioneer and Leader in China’s Carrier-neutral IDC Market with a Strong Brand Recognition Premium Data Centers Located Strategically in Major Internet Hubs Differentiated Business Model with a Comprehensive Service Offering Large, Diversified and Loyal Customer Base In-depth I
Slide 11: A Pioneer and Leader in China's Carrier-neutral IDC Market
A Pioneer and Leader in China’s Carrier-neutral IDC Market One of the first carrier-neutral IDC providers in China with infrastructure interconnected with various networks First global cloud operator in China to help accelerate enterprises’ digital transformation 11% Market Share(1) Strong brand and
Slide 12: Premium Data Centers Located in Major Internet Hubs
Premium Data Centers Located in Major Internet Hubs Self-built Data Centers We operate 30 self-built data centers with ~40,200 cabinets # of Self-built Cabinets % Contribution Beijing ~17,800 44% Shanghai & Hangzhou ~9,800 24% Great Bay Area ~5,700 14% 44% Satellite Cities ~3,400 8% Others ~3,500
Slide 13: Differentiated Business Model with a Comprehensive Service Offering
Differentiated Business Model with a Comprehensive Service Offering IDC Services Product Offerings “Dual core” Our Strength Co-location Retail + Wholescale Multi-carrier & multi-cloud connectivity Inter-connectivity High-performing facility & network Hybrid IT services Turn-key solutions
Slide 14: Large, Diversified and Loyal Customer Base
Large, Diversified and Loyal Customer Base Retail ~1,200+ enterprise customers for retail IDCs: 70% internet customers and 30% financial institutions and Government Owned Enterprise (GOE) Over 90% of net revenues have been recurring revenues since IPO Maintain low concentration of risk with to
Slide 15: In-depth Industry Expertise with Strong R&D Capabilities
In-depth Industry Expertise with Strong R&D Capabilities Innovative and Recognized Technology Secure and Reliable Data Centers Power Management Smart Routing Energy Recycling Environmental Controls Superior Highly Secure Interconnectivity Buildings & Data Floors 172 Dedicated Engineering Pro
Slide 16: Visionary Management Team with Executional Excellence
Visionary Management Team with Executional Excellence Josh Sheng CHEN Alvin Shiqi WANG Sharon Xiao LIU Founder and Chairman Chief Executive Officer and President Chief Financial Officer China Energy Internet Alliance Samuel SHEN Chunfeng CAI Tim CHEN Johnny Qihang LIU Executive Chairman, Retail IDC
Slide 17: Financial Overview
tt 2p 77 HK www.21vianet.com y Financial Overview x sete ie oe L; Gd eS J, 6 , © y ae | ee :
Slide 18: 2Q20 Financial Highlights
2Q20 Financial Highlights CNY'000 2Q19 1Q20 2Q20 YoY QoQ Net revenues 888,020 1,090,797 1,144,061 28.8% 4.9% Gross profit 228,248 234,111 272,332 19.3% 16.3% Adjusted cash gross profit(1) 403,809 417,127 467,552 15.8% 12.1% Adjusted cash gross margin 45.5% 38.2% 40.9% -4.6 bps 2.6 bps Adjusted EBITD
Slide 19: Sustainable Growth Driven by New Capacity Expansion
Sustainable Growth Driven by New Capacity Expansion Net Revenue & Cabinets (1) Retail IDC MRR per Cabinet (2) (RMB mm) (#) (RMB) (CNY) 1,144 1,091 8,788 8,822 8,747 8,953 1,048 8,663 8,711 44,050 8,271 8,384 8,457 981 888 3,893 39,646 36,291 4,279 32,116 4,244 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
Slide 20: Margin Improvements Through Efficiency Enhancement
Margin Improvements Through Efficiency Enhancement Adjusted Cash Gross Profit & Margin (1) Adjusted EBITDA & Margin (2) (RMB mm) (RMB mm) 29.4% 27.0% 27.7% 26.8% 44.5% 43.1% 45.5% 42.0% 40.9% 22.5% 1,513 1,633 1,050 1,248 918 671 404 468 261 306 2017 2018 2019 2Q19 2Q20 2017 2018 2019 2Q19 2Q20 Adju
Slide 21: Healthy Cash Flow Generation and Capital Expenditure
Healthy Cash Flow Generation and Capital Expenditure Operating Cash Flow Capital Expenditure (RMB MM) (RMB MM) 803 705 3,000 ~ 3,400 487 1,248 220 914 396 435 2017 2018 2019 1H20 2017 2018 2019 1H20 Key Drivers Key Capital Expenditure Spending & Expected Capacity Expansion Capex mainly include exp
Slide 22: Healthy Capital Structure Thanks to Prudent Financial Policies
Healthy Capital Structure Thanks to Prudent Financial Policies & Various Financing Channels Total Debt or Net Debt(1)(2) / Adjusted EBITDA(3) Debt Structure as of June 30, 2020 (x) Bank Borrowings Convertible Notes 14.3% 4.3x 4.7x 27.5% 2.5x 3.2x Repayment of 1.4x Excl. changes US$131 MM of 0.6x 0.8
Slide 23: Guidance
Guidance CNY mm 3Q19 A 2Q20 A 3Q20 E YoY(1) Revenues 981 1,144 1,230 – 1,250 26.4% Adjusted EBITDA 273 306 340 - 360 28.2% Previous Updated CNY mm 2019 A YoY(1) 2020 E 2020 E Revenues 3,789 4,600 – 4,800 4,700 – 4,900 26.7% Adjusted EBITDA 1,050 1,250 – 1,350 1,280 – 1,380 26.7% Source: Company fili
Slide 24: Thank You!
Contact Information: Company website: Thank You! http://www.21vianet.com Email: IR@21vianet.com Leading carrier -neutral & cloud-neutral service provider IR Contacts: Rene Jiang in China Julia Jiang