Gds Holdings Ltd. · HKEX:9698
Gds — Q4 2024 Earnings Presentation
48 slides from Gds's earnings presentation, Mar 19, 2025
Slide 1: 4Q24 & FY24 Earnings Call
4Q24 & FY24 Earnings Call 19 March 2025 NASDAQ: GDS HKEX: 9698 © GDS 2016 0
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such a
Slide 3: Business Strategy & Performance Highlights
Business Strategy & Performance Highlights William Huang, Chairman & CEO © GDS 2016
Slide 4: GDS FY24 Highlights
GDS FY24 HIGHLIGHTS (1)(2) Customer Commitments • New custome r co mmitme nts (net) of +11,055 sqm • Total area co mmitted incre ased by 1.8% y/y to 62 9,997 sqm Customer Move-In • Addition al area utili zed (net) of +47,79 2 sqm • Total area utili zed o f 45 3,094 sqm, +11.8% y/y, an d utilization
Slide 5: GDS 4Q24 Highlights
GDS 4Q24 HIGHLIGHTS Customer Commitments • New custome r co mmitme nts (net) of +3,214 sqm • Total area co mmitted incre ased by 1.8% y/y to 62 9,997 sqm Customer Move-In • Addition al area utili zed (net) of +14,44 0 sqm • Total area utili zed o f 45 3,094 sqm, +11.8% y/y, an d utilization rate of
Slide 6: Gross Additional Area Utilized (Organic Tier 1 Only)
Gross Additional Area Utilized (Organic Tier 1 Only) (1) By Quarter (Sqm) By Year (Sqm) 25,647 78,968 20,065 60,284 17,032 53,008 16,225 48,739 12,478 33,860 4Q23 1Q24 2Q24 3Q24 4Q24 FY2 0 FY2 1 FY2 2 FY2 3 FY2 4 Notes : 1. Exc ludes B-O-T and acqui si ti ons. © GDS 2016 5
Slide 7: Net Additional Area Utilized
Net Additional Area Utilized By Quarter (Sqm) By Year (Sqm) 4 Q 23 1 Q 24 2 Q 24 3 Q 24 4 Q 24 FY 2 0 FY 2 1 FY 2 2 FY 2 3 FY 2 4 O r ga n ic Ti e r 1 ( G r oss ) 1 2, 47 8 1 7, 03 2 20,065 25,647 16,225 O r ga n ic Ti e r 1 ( G r oss ) 5 3, 00 8 6 0, 28 4 3 3, 86 0 4 8, 73 9 78,968 Ch u rn ( 60 2 )
Slide 8: Backlog Delivery
Backlog Delivery Total Backlog Backlog Delivery Schedule Backlog For Area In Ser vice Backlog For Area Under Construction 234,185 228,787 176,904 213,640 203,369 176,904 95,821 106,613 111,834 122,306 65,858 138,364 122,174 111,045 101,806 81,063 YE20 YE21 YE22 YE23 YE24 Backlog At YE24 Delivery In
Slide 9: Gross Additional Area Committed (Organic Tier 1 Only)
Gross Additional Area Committed (Organic Tier 1 Only) (1) By Quarter (Sqm) By Year (Sqm) 20,913 99,197 91,277 11,714 52,175 49,452 9,474 9,678 9,387 48,802 4Q23 1Q24 2Q24 3Q24 4Q24 FY2 0 FY2 1 FY2 2 FY2 3 FY2 4 Notes : 1. Exc ludes B-O-T and acqui si ti ons. © GDS 2016 8
Slide 10: Net Additional Area Committed
Net Additional Area Committed By Quarter (Sqm) By Year (Sqm) 4 Q 23 1 Q 24 2 Q 24 3 Q 24 4 Q 24 FY 2 0 FY 2 1 FY 2 2 FY 2 3 FY 2 4 O r ga n ic Ti e r 1 ( G r oss ) 11 ,7 14 9 ,4 74 9,678 20,913 9,387 O r ga n ic Ti e r 1 ( G r oss ) 9 9, 19 7 9 1, 27 7 5 2, 17 5 4 8, 80 2 49,452 Ch u rn ( 1, 91 2 )
Slide 11: 4Q24 Orders To Absorb Inventory
4Q24 Orders To Absorb Inventory Selected New Orders in 4Q24 Underlying Data Centers SH19 SH13 Availab le Remaining (Sqm) Capacity New Order Capacity At 3Q24 At 4Q24 SH13 2,191 1,354 837 SH19 Phase 2 LF14 4,826 2,371 2,455 LF14 Phase 3 2,224 2,224 0 © GDS 2016 10
Slide 12: Recent New Order
Recent New Order LF20 / LF21 – 20,088 sqm / 75.8 MW CS3 Phase 2 / CS4 – 20,030 sqm / 75.8 MW © GDS 2016 11
Slide 13: Capacity Expansion
Capacity Expansion Increase In Capacity In Service (Sqm) Capacity Overview At YE24 (Sqm) Additional Capacity In Service Additional Capacity Completion Capacity (Sqm) 153,107 Area In Service 613,583 104,002 86,662 (1) Area Under Construction 102,691 78,41 9 Area Held for Future Development (1) 388,92
Slide 14: DayOne – Operation Updates
DayOne – Operation Updates Total IT Power Committed (MW) Total IT Power Utilized (MW) 467 121 431 101 103 388 74 74 182 121 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 Notes : Exc ludi ng 3rd party data centers . © GDS 2016 13
Slide 15: Financial & Operating Review
Financial & Operating Review Dan Newman, CFO © GDS 2016
Slide 16: Deconsolidation Of DayOne
Deconsolidation Of DayOne DayOne Data Centers Limited (“DayOne”), previously known as GDS International or GDSI, completed and closed its Series B equity raise on December 31, 2024. At closing, GDS’s equity interest in DayOne was diluted from 52.7% to 35.6%. Accordingly, GDS deconsolidated DayOne as
Slide 17: Pro Forma Consolidated 4Q&FY24 Financial Highlights
Pro Forma Consolidated 4Q&FY24 Financial Highlights (1) Rm b Mn 4Q24 FY24 FY24 Guidance & Y /Y Growth Net R evenue 3,126.0 +22.3% 11,545.5 +16.0% 11,340 – 11,760 Adjusted EBITDA 1,401.6 +23.7% 5,192.9 +12.3% 4,950 – 5,150 Notes : 1.Combi ned continui ng and di sc onti nued resul ts with intra -group
Slide 18: 4Q24 & FY24 P&L Analysis
4Q24 & FY24 P&L Analysis Quarterly Financial Review Rm b‘0 0 0 (Un le ss In dic at e d) 4Q 23 3Q 24 4Q 24 Y/Y Q/Q FY23 FY24 Y/Y Tota l Net R ev e nue 2,465,283 2,619,578 2,690,662 9.1% 2.7% 9,782,448 10,322 ,06 8 5.5% Co st of Re ven u e (2,032 ,35 2) (2,061 ,99 5) (2,112 ,54 5) 3.9% 2.5% (7,831 ,22
Slide 19: Move-In & MSR By Quarter
Move-In & MSR By Quarter Net Additional Area Utilized (Sqm) MSR (Rmb / Sqm / Month) 18,678 2,058 (1) 2,088 16,366 2,036 2,034 2,011 14,440 12,077 (1,692) 4Q23 1Q24 2Q24 3Q24 4Q24 Notes : 1. For 1Q24 MSR ca lcul ation, ar ea util iz ed at the beg inning of the quarter exc ludes thr ee B -O-T 4Q23 1Q2
Slide 20: Move-In & MSR By Year
Move-In & MSR By Year Net Additional Area Utilized (Sqm) MSR (Rmb / Sqm / Month) 83,821 78,709 2,406 2,336 2,186 2,058 2,011 50,962 47,792 35,788 FY20 FY21 FY22 FY23 FY24 4Q20 4Q21 4Q22 4Q23 4Q24 © GDS 2016 19
Slide 21: Revenue & Adjusted EBITDA By Quarter
Revenue & Adjusted EBITDA By Quarter Revenue (Rmb Mn) Adjusted EBITDA & Margin (Rmb Mn) 46.2% 46.9% 47.8% 46.0% 48.2% 2,619.6 2,690.7 2,579.6 2,465.3 2,432.2 1,297.7 1,233.2 1,204.9 1,139.2 1,140.7 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 © GDS 2016 20
Slide 22: Revenue & Adjusted EBITDA By Year
Revenue & Adjusted EBITDA By Year Revenue (Rmb Mn) Adjusted EBITDA & Margin (Rmb Mn) 46.6% 47.9% 46.8% 48.4% 47.2% 10,322.1 9,782.4 9,268.1 7,801.3 4,876.4 4,733.0 4,333.7 5,731.4 3,733.1 2,669.8 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 © GDS 2016 21
Slide 23: Capex
Capex (1) Capex (Rmb Mn) FY25 Capex Guidance Breakdown 12,695.2 (Rmb Bn) 9,294.1 Base Case Capex 2.5 Add: Capex For 151.6 MW New Orders 2.3 FY25 Capex Guidance: ~4,300 Less: Net Cash Proceeds From ABS (0.5) 3,497.8 3,009.2 Total Capex ~4.3 FY2 1 FY2 2 FY2 3 FY2 4 FY2 5 Notes : 1. Exc ludes GD S’s in
Slide 24: Cash Flow
Cash Flow Rmb Mn 4Q23 1Q24 2Q24 3Q24 4Q24 FY23 FY24 Operating Cash Flow 1,042.6 (99.5) 599.4 639.9 1,079.9 2,359.3 2,219.7 Capex (368.5) (943.0) (923.6) (788.1) (354.4) (3,497.8) (3,009.2) (1) Investment in DayOne (310.1) (409.3) 1,578.1 0.0 0.0 (1,017.3) 1,168.8 Investing Cash Flow (678.6) (1,352.3
Slide 25: Financing Obligation & Liquidity
Financing Obligation & Liquidity Net Debt & Leverage ( Rm b M n Unl es s Indi ca t ed ) 4 Q 23 1 Q 24 2 Q 24 3 Q 24 4 Q 24 To ta l Lo a n 2 5, 67 0 .4 2 6, 96 1 .2 2 6, 88 5 .9 2 6, 68 3 .2 2 6, 24 7 .6 Co n ve rti b le B on d 8 ,4 34 .8 8 ,4 53 .4 8 ,4 95 .4 8 ,3 57 .0 8 ,5 77 .2 Fi na n ce L ea se
Slide 26: Loan Maturity Schedule
Loan Maturity Schedule At 4Q24 (Rmb Mn) (1) Working C apital Proje ct Loa n Con vertible Bond (3) 6,988 6,676 5,610 (2) 4,312 3,176 3,237 2,918 2,046 2025 2026 2027 2028 2029 2030 2031 2032 & Beyond Notes : 1. Exc hange rate o f 7.1884:1 (R MB:USD). 2. Incl uding work ing c apital loan of Rm b 1,438
Slide 27: Asset Monetization – ABS
Asset Monetization – ABS Structure Economic Highlights (Rmb Bn) GDSH Investors Tota l Equity Considera tion (A) 1.7 30% 70% Less: Re investment of 30% (0.5) Tota l N et Ca sh Procee ds 1.2 - Received Up front 0.5 - Deferred 0.7 ABS (Special Equity Plan) Debt Deconsolidate d (B) 1.2 Tota l Enter pris
Slide 28: Asset Monetization – C-REIT
Asset Monetization – C-REIT Structure GDSH Investors 20% 80% C-REIT ABS #1 ABS #2 …… ABS #N Project #1 Project #2 …… Project #N © GDS 2016 27
Slide 29: Net Debt Reduction Path
Net Debt Reduction Path For Illustration Purposes Only (Rmb Bn) Net Debt / Net Debt / Net Debt / 4Q24 Annualized EBITDA: 4Q25 Annualized EBITDA: 4Q25 Annualized EBITDA: 6.8x 6.2x (2) 5.5x (2) 35.2 2.5 4.8 35.1 4.2 2.4 30.9 (1) Ne t D eb t a t Y E 24 O p er a tin g Ca sh fl ow To ta l Ne t Ca sh P ro
Slide 30: Business Outlook For Continuing Operations
Business Outlook For Continuing Operations FY25 Guidance Rmb Mn FY24 Actual FY25 Guidance Implied Y/Y Total Revenue 10,322.1 11,290 - 11,590 +9.4% – +12.3% Adjusted EBITDA 4,876.4 5,190 - 5,390 +6.4% – +10.5% Capex 3,009.2 (1) ~4,300 +42.9% Notes : 1. Refers to net c as h us ed in inv esting ac ti v
Slide 31: Adjusted EBITDA Guidance Scenarios
Adjusted EBITDA Guidance Scenarios For Illustration Purposes Only After ABS After ABS FY25 (Rmb Mn) Before ABS (Official Guidance) + Gain On Sale (2) Adjusted EBITDA (1) ~5,400 ~5,290 ~5,690 Adjusted EBITDA Growth +10.7% +8.5% +16.7% Notes : 1. Ta ke th e mi d-point of adj usted EBIT DA guid ance as
Slide 32: DayOne – Financial Overview
DayOne – Financial Overview Key Financial Results for DayOne (1) In US$ Mn 4Q23 1Q24 2Q24 3Q24 4Q24 FY23 FY24 Net revenue 14.1 27.4 35.0 49.8 60.7 24.1 172.9 Adjusted EBITDA 0.5 6.2 11.2 13.0 15.0 (13.5) 45.4 Adjusted EBITDA margin 3.7% 22.7% 32.1% 26.2% 24.7% (56.1%) 26.3% Capex (107.5) (89.3) (157
Slide 33: Questions & Answers
Questions & Answers www.gds-services.com ir@gds-services.com © GDS 2016
Slide 34: Appendix
Appendix © GDS 2016
Slide 35: KPIs
KPIs As At 4Q23 1Q24 2Q24 3Q24 4Q24 Area In Service (Sqm) 548,352 549,352 580,165 595,606 613,583 Area Under Construction (Sqm) 151,602 141,576 117,861 120,422 102,691 Total Capacity (Sqm) 699,953 690,928 698,026 716,028 716,274 Area Committed (Sqm) 507,108 505,851 535,224 548,372 564,139 Area Pre-C
Slide 36: Data Center Summary By Market
Data Center Summary By Market At 31/12/24 (Sqm, Unless Indicated) (1) A rea H el d for Pre - A rea U n d er A rea Pre - To ta l A rea C o m mi tm en t # o f Se lf- A rea In Ser vic e To ta l C ap ac ity F u tu re A rea C o m m itted A rea U tili zed C o m mi tm en t U tili zati o n R ate C onstructi
Slide 37: Data Center Capacity By Tenure
Data Center Capacity By Tenure At 31/12/24 (Sqm, Unless Indicated) Area In Service Area Under Construction Total Capacity Lease 313,273 33,592 346,865 Own 239,974 65,660 305,634 B-O-T 55,722 3,440 59,162 3 rd Party 4,613 - 4,613 Total 613,583 102,691 716,274 % Lease 51.1% 32.7% 48.4% % Own 39.1% 63.
Slide 38: Top 5 Customer & Contract Renewal
Top 5 Customer & Contract Renewal Top 5 Customer (1) Contract Renewal % of Total Ar ea % of Total Ar ea % of 4 Q2 4 Total Net Period Sqm # Committe d Committe d Rev enue FY2 5 162 ,4 28 25.8% 1 33.7% 29.6% FY2 6 75,19 2 11 .9 % 2 14.3% 14.0% FY2 7 139 ,7 62 22.2% 3 8.4% 6.9% FY2 8 79,55 8 12.6% 4 7.
Slide 39: Principal Shareholders
Principal Shareholders At 31/12/24 Pro Form a Ordinary Sha res (1) Equiva le nt A DS Equiva le nt A DS % of Total ADS Change (3) Willi am Hu ang (2) 55,46 9,176 6,933 ,647 6,933 ,647 3.6% Directors & Office rs (4) 6,057 ,356 757 ,1 69 757 ,1 69 0.4% STT 477 ,2 88,484 59,66 1,060 59,66 1,060 31.2% Pi
Slide 40: Historical Financial Results – Statements Of Operations
Historical Financial Results Condensed Consolidated Statements Of Operations Am ou nts in tho usan ds Th ree Mo nth s En ded Year Ende d Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 RM B RM B RM B RM B RM B USD (1 ) RM B USD (1 ) Net r evenu e Serv ic e
Slide 41: Historical Financial Results – Balance Sheets
Historical Financial Results Condensed Consolidated Balance Sheets Am ount in thousa nds. A s of De c 31, 20 23 Mar 31, 20 24 Jun 30, 20 24 Sep 30, 20 24 De c 31, 20 24 RMB RMB RMB RMB RMB USD ( 1 ) Ca sh 7, 354, 809 7, 238, 009 8, 395, 908 7, 757, 903 7, 867, 659 1, 077, 865 Account s receivable, n
Slide 42: Historical Financial Results – Cash Flows
Historical Financial Results Condensed Consolidated Statements Of Cash Flows Am ou n ts in tho us and s T hree Mo nths En ded Year En ded De c 31, 20 23 Mar 31, 20 24 Ju n 30, 20 24 Sep 30, 2024 De c 31, 20 24 De c 31 , 20 23 De c 31 , 20 24 RMB RMB RMB RMB RMB USD ( 1 ) RMB RMB USD ( 1 ) Ne t cash
Slide 43: Reconciliation From Gross Profit To Adjusted Gross Profit
Reconciliation From Gross Profit To Adjusted Gross Profit Adjusted Gross Profit Am ou nts in tho usan ds Th ree Mo nth s En ded Year End ed Dec 31, 2 023 Mar 31, 2 024 Jun 30, 2 024 Sep 30, 2 024 Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 RM B RM B RM B RM B RM B USD (1 ) RM B RM B USD (1 ) Gross profit
Slide 44: Reconciliation From Net Loss To Adjusted EBITDA
Reconciliation From Net Loss To Adjusted EBITDA Adjusted EBITDA Am ou nts in tho usan ds Th ree Mo nth s En ded Year Ende d Dec 31, 2 023 Mar 31, 2 024 Jun 30, 2 024 Sep 30, 2 024 Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 RM B RM B RM B RM B RM B USD (1 ) RM B RM B USD (1 ) Net inco me (los s) (3,164,6
Slide 45: Definition Of KPIs
Definition Of KPIs A re a In S e rvi ce E nt ir e ne t flo o r ar e a of da ta ce n te rs (o r p ha se s o f da ta ce n te rs) w hi ch a re r e ad y f or se r vi ce E nt ir e ne t flo o r ar e a of da ta ce n te rs (o r p ha se s o f da ta ce n te rs) w hi ch a re a cti ve ly un d er c on str u cti
Slide 46: Analyst Coverage
Analyst Coverage Br oke r An aly st Co ntact BofA Dal ey Li daley.li 2@ bofa.c om CICC Shuyu n Che s huyun.che @c ic c.com .c n Ci ti Louis Ts ang loui s.c p.ts ang@c iti.c om Ci ti c Secu rities J unyun Chen c henjuny un@c itic s.c om Cow en Mic hael Eli as mi chael .el ias @c owen.c om Dai wa Robi
Slide 47: DayOne – Capacity Overview
DayOne – Capacity Overview IT Power (1) In MW FY23 FY24 Power In Service 75 132 Power Under Construction 196 369 Held For Future Development (2) 404 712 Total Secured Capacity 675 1,213 Customer Commitments (3) 121 469 Utilized Capacity 74 123 Notes : 1. Inc ludi ng 3 rd party data centers 2. D evel
Slide 48: DayOne – Financial Overview
DayOne – Financial Overview Key Financial Results for DayOne (1) Am ou nts in tho usan ds Th ree Mo nth s En ded Year End ed Dec 31, 2 023 Mar 31, 2 024 Jun 30, 2 024 Sep 30, 202 4 Dec 31, 2 024 Dec 31, 2023 Dec 31, 2024 (1 ) RM B RM B RM B RM B RM B USD RM B RM B USD (2 ) Net rev enue 102,853 199,9