VNET Group, Inc. · NASDAQ:VNET
VNET — Q3 2023 Earnings Presentation
28 slides from VNET's earnings presentation, November 2023
Slide 1: VNET Group, Inc. Investor Presentation
单击此处编辑母版标题样式 VNET Group, Inc. Investor Presentation November 2023
Slide 2: Disclaimer
单击此处编辑母版标题样式 Disclaimer This presentation includes “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospectus or financial results. The words “expect”, “anticipate”,
Slide 3: 3Q 2023 Highlights
单击此处编辑母版标题样式 3Q 2023 Highlights Financials (in RMB) Liquidity (in RMB) Revenue: 1,887 million (+4.0% YoY) Unused Credit Line: 2,240 million Adjusted EBITDA: 508 million (+11.6% YoY) Cash Position(1): 3,024 million Retail & Wholesale Updates Capacity RMB 9,495 88,922 R total cabinets under management
Slide 4: Largest Customer Order Wins
单击此处编辑母版标题样式 Largest Customer Order Wins Capacity Contracted Signing Time of Region IDC Code Customer Sector Project Type / Under MoU (MW) Contract / MoU E-JS Campus 02 45 3Q23 Internet Wholesale Yangtze River Delta Consumer SH05 1.5 3Q23 Retail Electronics Source: Company data. 4
Slide 5: Contents
CONTENTS 1. Company Overview 2. Business Overview 3. Financials Overview 4. Appendix
Slide 6: Pioneer and Leader in China’s Fast Growing IDC Market
A单击此处编辑母版标题样式 Pioneer and Leader in China’s Fast Growing IDC Market Pioneer and Leader A leading carrier- and cloud-neutral data center services provider in China with 27 years of experience ~10%(1) market share of China’s carrier-neutral data center services market 220 approved and pending pa
Slide 7: Dual-Core Growth Strategy
单击此处编辑母版标题样式 Dual-Core Growth Strategy Retail Wholesale Retail Colocation Full-stack Services Hyperscale IDC Interconnectivity Services Focusing on high-growth verticals which require colocation interconnectivity, bare- Targeting hyperscalers which require huge amount of space and power to metal, an
Slide 8: ESG Initiatives – Commitment to Sustainability
单击此处编辑母版标题样式 ESG Initiatives – Commitment to Sustainability Commitment to achieve both targets of carbon neutrality and 100% renewable energy usage by 2030 Received A rating by MSCI, representing the highest ranking to-date in China’s Internet Services & Infrastructure industry Scored 57 by the S&P
Slide 9: Contents
CONTENTS 1. Company Overview 2. Business Overview 3. Financials Overview 4. Appendix
Slide 10: Differentiated Business Model with Comprehensive Offerings
单击此处编辑母版标题样式 Differentiated Business Model with Comprehensive Offerings Managed Hosting Services Cloud Services VPN Services1 (IDC) • Co-location • Multi-protocol Label Switching (MPLS) & Software- • Interconnectivity defined Wide Area Network • Hybrid IT Services (SD-WAN) • Other Value-added Servic
Slide 11: Resource Pipeline to Support IDC Growth
单击此处编辑母版标题样式 Resource Pipeline to Support IDC Growth IDC Code Tenure Status 9M23 4Q23E 2023E E-JS Campus 02 A Owned In-Service 1,270 - 1,270 E-JS Campus 02 B Owned In-Service 1,420 - 1,420 N-OR06 (Phase I) Leased In-Service 800 - 800 BJ17 Leased Under Construction - 750 750 E-JS Campus 02 C Owned Un
Slide 12: Wholesale Capacity In-Service
单击此处编辑母版标题样式 Wholesale Capacity In-Service Capacity Contracted / Region IDC Code Under MoU (MW) BJ06 2 BJ12 9 Greater Beijing Area BJ15 7 N-HB02 47 N-HB03 11 E-JS Campus 01 42 E-JS Campus 02 A 25 E-JS Campus 02 B 24 E-JS01 5 Yangtze River Delta E-JS02 64 E-JS03 15 SH04 2 SH05 7 SH06 11 N-OR02 29 N-O
Slide 13: Wholesale Capacity Under Construction
单击此处编辑母版标题样式 Wholesale Capacity Under Construction Capacity Contracted / Region IDC Code Under MoU (MW) Yangtze River Delta E-JS Campus 02 (Phase II) 110 W-OR03 2 Other Region N-OR06 (Phase II) 25 Total 137 Source: Company data as of September 30, 2023. Note: IT capacity numbers measured by megawatt
Slide 14: Strategically Located Network of Premium Data Centers
单击此处编辑母版标题样式 Strategically Located Network of Premium Data Centers Total Capacity (1) Utilized Capacity & Overall Utilization Rate (2) 87,322 87,310 86,927 88,922 55.1% 55.0% 56.5% 59.0% 58.9% 82,660 4,741 4,679 4,271 4,314 5,090 51,316 52,408 48,016 49,316 45,527 77,570 82,581 82,631 82,656 84,608
Slide 15: Large and Diversified Customer Base with Strong Loyalty
单击此处编辑母版标题样式 Large and Diversified Customer Base with Strong Loyalty >7,000 enterprise customers, of which >1,400 customers have enjoyed our colocation, connectivity, bare metal, hybrid cloud and maintenance services, etc. Around 90% of net revenues have been recurring revenues since IPO Low c
Slide 16: Contents
CONTENTS 1. Company Overview 2. Business Overview 3. Financials Overview 4. Appendix
Slide 17: 3Q23 Financial Highlights
单击此处编辑母版标题样式 3Q23 Financial Highlights RMB MM 3Q22 2Q23 3Q23 YoY QoQ Net revenues 1,814.2 1,821.7 1,886.9 4.0% 3.6% Gross profit 316.6 342.7 306.5 -3.2% -10.6% Adjusted cash gross profit(1) 707.7 742.9 738.4 4.3% -0.6% Adjusted cash gross margin 39.0% 40.8% 39.1% 0.1 pps -1.7 pps Adjusted EBITDA(2)
Slide 18: Healthy Margins Through Efficiency Enhancement
单击此处编辑母版标题样式 Healthy Margins Through Efficiency Enhancement Adjusted Cash Gross Profit & Margin (1) Adjusted EBITDA & Margin (2) (RMB MM) (RMB MM) 39.0% 39.4% 41.8% 40.8% 39.1% 25.1% 22.6% 30.8% 29.4% 26.9% 754 556 535 740 743 738 508 708 455 424 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 Adj
Slide 19: Well Laddered Debt Profile and Strong Liquidity Position
单击此处编辑母版标题样式 Well Laddered Debt Profile and Strong Liquidity Position Debt Breakdown by Maturity Cash Position (1) (RMB MM) (RMB MM) Credit line availability: RMB 2,240MM unused 4,916 4,926 3,402 2,989 3,024 286 1,795 1,708 4,308 3,116 2,989 3,024 711 696 3,131 165 1,708 608 2023 end 2024 end 2025 e
Slide 20: Healthy Capital Structure
单击此处编辑母版标题样式 Healthy Capital Structure Total Debt & Net Debt / LQA Adjusted EBITDA1 Debt Structure as of September 30, 2023 5.8x 2027 Convertible Bonds 5.5x 16.0% 3.9x 3.7x Borrowing 4.2x 4.2x 46.0% 2.9x 2.1x 2026 Convertible Bonds 2020 2021 2022 3Q23 38.0% Total Debt / LQA Adj. EBITDA Net Debt / LQ
Slide 21: Guidance
单击此处编辑母版标题样式 Guidance 2023 Original 2023 Revised RMB MM 2022 Actual Implied YoY Implied YoY Guidance Guidance Revenues 7,065 7,600 - 7,900 7.6% - 11.8% 7,400 – 7,600 4.7% - 7.6% Adjusted EBITDA 1,873 2,025 - 2,125 8.1% - 13.5% 2,000 – 2,060 6.8% - 10.0% Source: Company data. 21
Slide 22: Contents
CONTENTS 1. Company Overview 2. Business Overview 3. Financials Overview 4. Appendix
Slide 23: Key P&L Items
单击此处编辑母版标题样式 Key P&L Items Three months ended Amount in thousands September 30, 2022 June 30, 2023 September 30, 2023 RMB RMB RMB US$ Net revenues 1,814,210 1,821,744 1,886,924 258,624 Cost of revenues (1,497,627) (1,478,995) (1,580,446) (216,618) Gross profit 316,583 342,749 306,478 42,006 Sales an
Slide 24: GAAP to Non-GAAP Reconciliations
单击此处编辑母版标题样式 GAAP to Non-GAAP Reconciliations Three months ended Amount in thousands September 30, 2022 June 30, 2023 September 30, 2023 RMB RMB RMB US$ Gross profit 316,583 342,749 306,478 42,006 Plus: depreciation and amortization* 388,217 400,173 431,933 59,201 Plus: share-based compensation expe
Slide 25: Key Balance Sheet Items
单击此处编辑母版标题样式 Key Balance Sheet Items As of As of Amount in thousands December 31, 2022 September 30, 2023 RMB RMB US$ Cash, cash equivalents and restricted cash 2,989,494 3,024,214 414,504 Accounts and notes receivable, net 1,763,693 2,090,160 286,480 Property and equipment, net 11,964,498 12,920,47
Slide 26: Key Cash Flow Items
单击此处编辑母版标题样式 Key Cash Flow Items Three months ended Amount in thousands September 30, 2022 June 30, 2023 September 30, 2023 RMB RMB RMB US$ Net cash generated from operating activities 607,417 423,476 454,313 62,269 Net cash used in investing activities (614,482) (1,051,510) (750,146) (102,815) Net
Slide 27: Definitions
单击此处编辑母版标题样式 Definitions Term Definition Capacity In Service Data centers which are ready for service Capacity Under Construction Data centers which are actively under construction and have not yet reached the stage of being ready for service Utilized Capacity Capacity in service that is committed t
Slide 28: Thanks!
http://ir.vnet.com THANKS! Email: ir@vnet.com IR Contact: Xinyuan Liu