VNET Group, Inc. · NASDAQ:VNET

VNET — 21Vianet Group — Investor Presentation (March 2021)

28 slides from VNET's investor presentation, March 2021

  1. Slide 1: 21Vianet Group, Inc. Investor Presentation

    21Vianet Group, Inc. Investor Presentation March 2021

  2. 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

  3. Slide 3: Company Overview

    Ht 20 7 KE www.21vianet.com Company Overview

  4. Slide 4: 4Q20 Highlights

    4Q20 Highlights Financials Capacity 28.6% YoY 2,077 R Net revenue growth Net adds 47.7% YoY 53,553 R Adj. EBITDA growth Total capacity Sales & Resource New Credit ~ 2,000 R in Beijing & New Wholesale logo Source: Company filings. 4

  5. Slide 5: 2020 Highlights

    2020 Highlights Financials Capacity 27.4% YoY 17,263 R Net revenue growth Net adds 26.0% YoY 53,553 R Adj. EBITDA growth Total capacity Sales Momentum Diversified Financing ~180 MW $200M Private CB Wholesale in service and/or under MOU $150M Preferred Shares $400M Equity Follow-on ~9,000 RMB $350M P

  6. Slide 6: 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 provider services market is fast growin

  7. Slide 7: Dual-Core Growth Strategy

    Dual-Core Growth Strategy Retail Wholesale Retail Colocation Full Stack Services Hyperscale IDC Wholesale Colocation Focusing on high-growth verticals which require colocation space, connection, Targeting hyperscalers which require huge amount of space and power to bare-metal, and other value-added

  8. Slide 8: Resource Pipeline to Support IDC Growth

    Resource Pipeline to Support IDC Growth IDC Pipeline Capacity (1) Tenure Status FY2020 FY2021 1H21 2H21 BJ11 Leased In Service ~1,100 ~300 ~300 BJ12 Leased In Service ~1,400 BJ13 Leased Under Construction ~1,200 ~1,200 BJ14 Leased Under Construction ~1,100 ~1,100 BJ15 new Leased In Service ~2,000 BJ

  9. Slide 9: In-Service & On-Going Development of Wholesale Projects - Yangtze River Delta

    In-Service & On-Going Development of Wholesale Projects - Yangtze River Delta E-JS02 Total Capacity ~ 5,000 R E-JS Campus 01 Committed Rate 95% Total Capacity ~ 3,300 R Expected Delivery Date 2020 - 2021 Pre-commitment Rate 95% Expected Delivery Date 2021 Jiangsu SH04 Total Capacity ~ 400 R E-JS Cam

  10. Slide 10: In-Service & On-Going Development of Wholesale Projects - Greater Beijing Area

    In-Service & On-Going Development of Wholesale Projects - Greater Beijing Area BJ15 New N-HB01 Total Capacity ~ 2,000 R Total Capacity ~ 2,000 R Committed Rate >95% Expected Delivery Date 2021 BJ12 Total Capacity ~ 1,400 R Committed Rate > 90% N-HB02 N-HB Campus 01 Total Capacity ~ 5,700 R Total Cap

  11. Slide 11: Key Growth Pillars

    Key Growth Pillars Accelerate All-in Strengthen Harness the Continue to Capacity “Dual-core” Customer Ecosystem to Invest in Roll-out Strategy and Relationships and Solidify Platform Play Technology Full-Stack Attract New ones Services 4 2 5 1 3 11

  12. Slide 12: Investment Highlights

    Ht 20 ZK www.21vianet.com vestment Highlights 7

  13. Slide 13: Investment Highlights

    Investment Highlights A Pioneer and Leader in China’s Carrier-neutral IDC Market 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 Industry Expertise with Strong Re

  14. Slide 14: 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

  15. Slide 15: Premium Data Centers Located in Major Internet Hubs

    Premium Data Centers Located in Major Internet Hubs Self-built Data Centers  We operate 32 self-built data centers with ~49,850 cabinets # of Self-built Cabinets % Contribution Beijing ~22,900 46% Shanghai & Hangzhou ~9,800 20% Great Bay Area ~9,300 19% 46% Surrounding Area ~4,350 9% Others ~3,500

  16. Slide 16: 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

  17. Slide 17: Large, Diversified and Loyal Customer Base

    Large, Diversified and Loyal Customer Base Retail  ~1,300+ 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

  18. Slide 18: 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 125 Dedicated Engineering Pro

  19. Slide 19: Visionary Management Team with a Strong Track Record of Execution

    Visionary Management Team with a Strong Track Record of Execution Josh Sheng CHEN Samuel Yuan-Ching SHEN Sharon Xiao LIU Founder and Chairman Chief Executive Officer, Chief Financial Officer, Executive Chairman of Retail IDC President of Wholesale IDC China Energy Internet Alliance Shiqi WANG Chunfe

  20. Slide 20: Financial Overview

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  21. Slide 21: 4Q20 Financial Highlights

    4Q20 Financial Highlights RMB'000 4Q19 3Q20 4Q20 YoY QoQ Net revenues 1,048,119 1,245,794 1,348,367 28.6% 8.2% Gross profit 247,871 275,143 294,425 18.8% 7.0% Adjusted cash gross profit(1) 425,887 526,230 581,850 36.6% 10.6% Adjusted cash gross margin 40.6% 42.2% 43.2% 2.5 pp 0.9 pp Adjusted EBITDA(

  22. Slide 22: 2020 Financial Highlights

    2020 Financial Highlights RMB mm 2018 2019 2019 vs. 2018 2020 2020 vs. 2019 Revenues 3,401 3,789 11.4% 4,829 27.4% Gross profit 945 939 -0.6% 1,076 14.5% Adjusted cash gross profit 1,513 1,633 8.0% 1,993 22.0% Adjusted cash gross Margin 44.5% 43.1% -1.4 pp 41.3% -1.8 pp Adjusted EBITDA(2) 918 1,050

  23. Slide 23: 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) 1,348 1,246 8,953 9,074 9,131 8,788 8,663 8,711 8,822 8,747 1,144 1,091 53,553 1,048 51,476 3,677 3,825 44,050 39,646 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 3,893 36,291 4,27

  24. Slide 24: Margin Improvements Through Efficiency Enhancement

    Margin Improvements Through Efficiency Enhancement Adjusted Cash Gross Profit & Margin (1) Adjusted EBITDA & Margin (2) (RMB mm) (RMB mm) 27.7% 28.9% 44.5% 43.1% 43.2% 27.0% 27.4% 41.3% 40.6% 25.2% 1,324 1,993 1,050 1,513 1,633 918 582 390 426 264 2018 2019 2020 4Q19 4Q20 2018 2019 2020 4Q19 4Q20 Ad

  25. Slide 25: Healthy Cash Flow Generation and Capital Expenditure

    Healthy Cash Flow Generation and Capital Expenditure Operating Cash Flow Capital Expenditure (RMB mm) (RMB mm) 803 714 3,967 705 487 1,248 396 435 2017 2018 2019 2020 2017 2018 2019 2020 Key Drivers Key Capital Expenditure Spending & Expected Capacity Expansion  Capex mainly include expenditure for

  26. Slide 26: 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) / Adjusted EBITDA Debt Structure as of 31 Dec, 2020 (x) Convertible Notes Bank Borrowings 4.3x 26% 24% 3.2x 3.1x 2.5x 0.6x 1.4x 1.0x Excl. changes in (0.1x) the fair value of convert

  27. Slide 27: Guidance

    Guidance RMB mm 1Q20 A 4Q20 A 1Q21 E YoY(1) Revenues 1,091 1,348 1,375 - 1,395 27.0% Adjusted EBITDA 259 390 395 - 415 56.1% RMB mm 2020 A 2021 E YoY(1) Revenues 4,829 6,100 - 6,300 28.4% Adjusted EBITDA 1,324 1,680 – 1,780 30.7% Source: Company filings. 1. YoY represents the midpoints of the guidan

  28. Slide 28: 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

21Vianet Group — Investor Presentation (March 2021) on 6ix