Gds Holdings Ltd. · HKEX:9698
Gds — Q3 2024 Earnings Presentation
50 slides from Gds's earnings presentation, Nov 19, 2024
Slide 1: 3Q24 Earnings Call
3Q24 Earnings Call 19 November 2024 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
Slide 3: Business Strategy & Performance Highlights
Business Strategy & Performance Highlights William Huang, Chairman & CEO © GDS 2016
Slide 4: 3Q24 Consolidated Highlights
3Q24 CONSOLIDATED HIGHLIGHTS (1) Customer Commitments • New custome r co mmitme nts (gross) of +3 6,924 sqm (+1 00 MW) • Total area co mmitted incre ased by 20 .2 % y/y to 7 85,692 sqm Customer Move-In • Addition al area utili zed (net) of +19,14 5 sqm • Total area utili zed o f 48 1,819 sqm, 20 .9
Slide 5: China – Gross Additional Area Utilized (Organic Tier 1 Only)
China – Gross Additional Area Utilized (Organic Tier 1 Only) (1) By Quarter (Sqm) By Year (Sqm) 25,647 62,744 60,284 53,008 20,065 48,739 17,032 12,839 33,860 12,478 3Q23 4Q23 1Q24 2Q24 3Q24 FY2 0 FY2 1 FY2 2 FY2 3 9M24 Notes : 1. Exc ludes B-O-T and acqui si ti ons. © GDS 2016 4
Slide 6: China – Net Additional Area Utilized
China – Net Additional Area Utilized By Quarter (Sqm) By Year (Sqm) 3 Q 23 4 Q 23 1 Q 24 2 Q 24 3 Q 24 FY 2 0 FY 2 1 FY 2 2 FY 2 3 9 M2 4 O r ga n ic Ti e r 1 ( G r oss ) 1 2, 83 9 1 2, 47 8 1 7, 03 2 20,065 25,647 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 62,744 Ch u
Slide 7: China – Gross Additional Area Committed (Organic Tier 1 Only)
China – Gross Additional Area Committed (Organic Tier 1 Only) (1) By Quarter (Sqm) By Year (Sqm) 21,499 20,913 99,197 91,277 11,714 52,175 9,474 9,678 48,802 40,065 3Q23 4Q23 1Q24 2Q24 3Q24 FY2 0 FY2 1 FY2 2 FY2 3 9M24 Notes : 1. Exc ludes B-O-T and acqui si ti ons. © GDS 2016 6
Slide 8: China – Net Additional Area Committed
China – Net Additional Area Committed By Quarter (Sqm) By Year (Sqm) 3 Q 23 4 Q 23 1 Q 24 2 Q 24 3 Q 24 FY 2 0 FY 2 1 FY 2 2 FY 2 3 9 M2 4 O r ga n ic Ti e r 1 ( G r oss ) 2 1, 49 9 11 ,7 14 9 ,4 74 9,678 20,913 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 40,065 Ch u rn
Slide 9: China – Selected Orders In 3Q24
China – Selected Orders In 3Q24 BJ12 – 7,016 sqm / 11.3 MW LF16 – 3,616 sqm / 8.3 MW LF18 – 11,218 sqm / 36.0 MW ◼ New customer commitment of churn ◼ Expansion of customer’s existing ◼ Expansion from customer’s existing capacity deployment deployment © GDS 2016 8
Slide 10: China – Capacity Expansion
China – Capacity Expansion Increase In Capacity In Service (Sqm) Capacity Overview (Sqm) Additional Capacity In Service Additional Capacity Completion 153,107 He ld f or Fut ure De v el opm e nt 3 21 ,5 4 9 104,002 83,74 3 In S e rv ic e 5 95 ,6 0 6 23,301 54,37 9 42,74 4 Un der Co nst ru ct ion 33,
Slide 11: International – Total IT Power Committed
International – Total IT Power Committed (1) By Quarter (MW) 431 388 182 111 121 3Q23 4Q23 1Q24 2Q24 3Q24 Notes : 1. Ex cl udes c apaci ty contrac tual ly r eserv ed for c ustomer s wi thout separ ate res erv ati on fee. © GDS 2016 10
Slide 12: International – Sales Breakthrough In Batam
International – Sales Breakthrough In Batam New Commitment By Global Hyperscale Customer ◼ Creating a new market ◼ Most advanced AI data center design ◼ 34 MW contracted + 38 MW reserved ◼ Delivered and utilized within 18 months ◼ 1 st phase already entered service © GDS 2016 11
Slide 13: International – New Market Entry In Thailand
International – New Market Entry In Thailand Next Big Opportunity In South East Asia ◼ Global tech leaders recently announced multi -billion dollar investments in Thailand ◼ Opportunity to serve the domestic and regional market ◼ Acquired land for data center campus in Chonburi province ◼ Planned IT
Slide 14: International – Capacity Overview
International – Capacity Overview IT Power In MW He ld For F utu re Tota l Se c ure d Com m it t ed By Ma rk e t In Se rv ic e Und er Cons t ruc t ion Ut ili zed By Cus t om er s De v el opm en t (1 ) Ca pa c ity Cus t om e rs (2 ) Ho n g Ko n g 8 .6 2 5. 3 3 2. 5 6 6. 4 2 5. 4 3 .2 S in g ap o re -
Slide 15: Financial & Operating Review
Financial & Operating Review Dan Newman, CFO © GDS 2016
Slide 16: 3Q24 Consolidated P&L
3Q24 Consolidated P&L Quarterly Financial Review Rm b‘0 0 0 (Un le ss In dic at e d) 3 Q 23 2 Q 24 3 Q 24 Y /Y Q /Q S er vi ce Re ve nu e 2 ,5 18 ,9 7 8 2 ,8 26 ,3 6 9 2 ,9 65 ,7 1 3 1 7. 7% 4 .9 % E qu i pm en t Sa le s 55 0 0 / / Tota l Net R ev e nue 2 ,5 19 ,0 3 3 2 ,8 26 ,3 6 9 2 ,9 65 ,7 1 3 1
Slide 17: GDSH – 3Q24 Segment Financial Analysis
GDSH – 3Q24 Segment Financial Analysis (1) Rmb‘000 (Unless Indicated) 3Q23 2Q24 3Q24 Y/Y Q/Q Tota l N et Re venue 2,470 ,125 2,579 ,594 2,619 ,578 6.1% 1.6% Adjusted EBITDA 1,163 ,079 1,233 ,166 1,204 ,895 3.6% (2.3%) Adjusted EBITDA Mar gin 47.1% 47.8% 46.0% (1.1 ppts) (1.8 ppts) Notes : 1. All GDS
Slide 18: GDSH – Move-In & MSR
GDSH – Move-In & MSR Net Additional Area Utilized (Sqm) MSR (Rmb / Sqm / Month) 18,678 2,127 (1) 2,088 2,051 2,031 2,034 16,366 12,246 12,077 (1,692) 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 Notes : 1. For the purpos e of 1Q24 M SR c alc ulation, area utili zed at the beginni ng of the q ua
Slide 19: GDSH – Revenue & Adjusted EBITDA
GDSH – Revenue & Adjusted EBITDA Revenue (Rmb Mn) Adjusted EBITDA & Margin (Rmb Mn) 47.1% 46.4% 47.0% 47.8% 46.0% 2,579.6 2,619.6 2,470.1 2,456.7 2,426.1 1,233.2 1,204.9 1,163.1 1,139.2 1,140.7 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 © GDS 2016 18
Slide 20: GDSH – Capex & Cash Flow
GDSH – Capex & Cash Flow (1) Capex (Rmb Mn) Cash Flow (Rmb Mn) 3 Q 23 4 Q 23 1 Q 24 2 Q 24 3 Q 24 12,695.2 O pe ra ti ng Ca s h Fl ow 5 78 .7 1 ,0 47 .6 ( 96 .3 ) 5 99 .4 6 39 .9 9,234.2 9,294.1 Ch in a Ca p ex ( 76 7 .9 ) ( 36 8 .5 ) ( 89 3 .5 ) ( 92 3 .6 ) ( 78 8 .1 ) (1) In ve stm en t i n G DS I
Slide 21: GDSH – Financing Obligation & Liquidity
GDSH – Financing Obligation & Liquidity Net Debt & Leverage (Rmb Mn Unless Indicated) 3Q23 4Q23 1Q24 2Q24 3Q24 Total Loan 25,862.8 25,670.4 26,961.2 26,885.9 26,683.2 Convertible Bond 8,546.3 8,434.8 8,453.4 8,495.4 8,357.0 Finance Lease 8,530.3 8,442.0 8,536.1 8,433.6 8,321.4 Total Gro ss Debt 42,9
Slide 22: GDSH – Loan Maturity Schedule
GDSH – Loan Maturity Schedule At 3Q24 (Rmb Mn) (1) (2) Proje ct Loa n Working C apital Con vertible Bond 7,517 6,901 6,594 4,054 4 ,3 45 4 ,0 64 3,254 2,946 3,000 1 ,5 11 892 2 ,5 42 2 ,5 56 2 ,5 30 1 00 7 92 202 4 202 5 202 6 202 7 202 8 202 9 203 0 203 1 & Beyo nd Notes : 1. Exc hange rate o f 7.0
Slide 23: GDSH – Asset Monetization
GDSH – Asset Monetization Pre-REIT C-REIT GDSH Investors GDSH Investors 30% 70% 20% 80% C-REIT ABS ABS Project Project 1 Project 2 …… Project N © GDS 2016 22
Slide 24: GDSI – 3Q24 Segment Financial Analysis
GDSI – 3Q24 Segment Financial Analysis (1) Rmb‘000 (Unless Indicated) 3Q23 2Q24 3Q24 Y/Y Q/Q Tota l N et Re venue 49,32 8 255 ,5 33 363 ,2 09 636 .3 % 42.1% Adjusted EBITDA (36,468) 84,53 1 97,01 4 (366.0%) 14.8% Adjusted EBITDA Mar gin (73.9%) 33.1% 26.7% 100 .6 ppts (6.4 ppts) Notes : 1. All GDSH
Slide 25: GDSI – Move-In & Ramp-Up
GDSI – Move-In & Ramp-Up Total IT Power Utilized (MW) IT Power Utilized Ramp-Up (MW) ~300 ~400 101 103 73 103 20 21 3Q23 4Q23 1Q24 2Q24 3Q24 Utili zed 3 Q24 Utili zed Wi th in 18 Total IT Power Utilized Months Within 1 8 Mon th s © GDS 2016 24
Slide 26: GDSI – Revenue & Adjusted EBITDA
GDSI – Revenue & Adjusted EBITDA Revenue (Rmb Mn) Adjusted EBITDA & Margin (Rmb Mn) (73.9%) 3.6% 22.7% 33.1% 26.7% 363.2 97.0 84.5 255.5 206.0 46.8 111.4 (36.5) 4.0 49.3 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 © GDS 2016 25
Slide 27: GDSI – Capex & Cash Flow
GDSI – Capex & Cash Flow Capex (Rmb Mn) Cash Flow (Rmb Mn) 3 Q 23 4 Q 23 1 Q 24 2 Q 24 3Q 24 Rev is ed Guida nce: Rmb 8.0 bn O pe ra ti ng Ca s h Fl ow ( 68 .2 ) ( 98 .3 ) ( 28 .7 ) ( 10 6 .9 ) 1.6 3,958.6 Inv e s tin g Ca s h Flo w ( 80 4 .5 ) ( 78 5 .0 ) ( 70 1 .6 ) ( 1, 14 6 .4 ) (2,110 .7) Ca s
Slide 28: GDSI – Financing Obligation & Liquidity
GDSI – Financing Obligation & Liquidity Net Debt & Leverage (Rmb Mn Unless Indicated) 3Q23 4Q23 1Q24 2Q24 3Q24 Total Loan 3,272.1 3,869.8 4,149.8 4,851.2 5,924.4 Total Gro ss Debt 3,272.1 3,869.8 4,149.8 4,851.2 5,924.4 (-) Cash 336.3 408.7 403.4 1,511.9 1,650.6 (+) Shareholder Loan (Due To GDSH) 97
Slide 29: GDSI – Loan Maturity Schedule
GDSI – Loan Maturity Schedule At 3Q24 (Rmb Mn) Project Loan 2,171 2,028 1,184 602 45 202 4 202 5 202 6 202 7 202 8 & Beyo nd Notes : 1. Exc hange rate o f 7.0074:1 (R MB:USD), 0.9 018:1 (R MB:H KD), 1.7013:1 (RM B:MYR ) and 5.4731:1 (RMB:SGD). © GDS 2016 28
Slide 30: GDSI Series B Issue
GDSI Series B Issue Capitalization At Closing Deal Summary ▪ $2.5 bn pre-money equity valuation Gross Proceeds $1.0 b n, u psi zab le to $1.2 bn ▪ 75% premium to Series A price Form of Share Capital Serie s B conve rtibl e preferred shares ▪ Implies $6.75 per GDS ADS GDSH 37.6% ▪ Expected to close b
Slide 31: Business Outlook
Business Outlook FY24 Capex Guidance Revised Revised FY24 Rmb Mn FY23 Actual FY24 Guidance Implied Y/Y Guidance Total Revenue 9,956.5 11,340 – 11,760 -- +13.9% – +18.1% Adjusted EBITDA 4,624.1 4,950 – 5,150 -- +7.0% – +11.4% Capex (1) 6,325.6 6,500 11,000 (2) +73.9% Notes : 1. Refers to net c as h u
Slide 32: Questions & Answers
Questions & Answers www.gds-services.com ir@gds-services.com © GDS 2016
Slide 33: Appendix
Appendix © GDS 2016
Slide 34: KPIs – China & International
KPIs – China & International As At 3Q23 4Q23 1Q24 2Q24 3Q24 Area In Service (Sqm) 554,210 572,555 583,229 630,963 647,468 Area Under Construction (Sqm) 189,585 182,746 172,537 226,272 234,741 Total Capacity (Sqm) 743,795 755,301 755,766 857,235 882,210 Area Committed (Sqm) 509,519 531,311 539,728 58
Slide 35: KPIs – China Only
KPIs – China Only As At 3Q23 4Q23 1Q24 2Q24 3Q24 Area In Service (Sqm) 540,606 548,352 549,352 580,165 595,606 Area Under Construction (Sqm) 150,116 151,602 141,576 117,861 120,422 Total Capacity (Sqm) 690,722 699,953 690,928 698,026 716,028 Area Committed (Sqm) 495,914 507,108 505,851 535,224 548,3
Slide 36: Data Center Summary By Market – China
Data Center Summary By Market – China At 30/09/24 (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 o
Slide 37: Data Center Capacity By Tenure – China
Data Center Capacity By Tenure – China At 30/09/24 (Sqm, Unless Ind icate d) Are a In Service Are a Under Construction Tota l C apacity Lea se 305 ,9 49 40,19 9 346 ,1 48 Own 227 ,7 41 76,78 3 304 ,5 24 B-O-T 55,72 2 3,440 59,16 2 3 rd Party 6,194 - 6,194 Tota l 595 ,6 06 120 ,4 22 716 ,0 28 % Lea s
Slide 38: Top 5 Customer & Contract Renewal – China
Top 5 Customer & Contract Renewal – China Top 5 Customer (1) Contract Renewal % of Total Ar ea % of Total Ar ea % of Total Net Period Sqm # Committe d Committe d Rev enue 4Q24 50,08 3 8.0% 1 33.5% 30.1% FY2 5 101 ,7 31 16.2% 2 14.4% 14.8% FY2 6 70,42 3 11 .2 % FY2 7 127 ,8 78 20.3% 3 8.1% 6.0% FY2 8
Slide 39: Principal Shareholders
Principal Shareholders At 30/09/24 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 31.3% Pi
Slide 40: Financing Obligations & Liquidity
Financing Obligations & Liquidity GDS Holdings Consolidated (Rmb Mn Unless Indicated) 3Q23 4Q23 1Q24 2Q24 3Q24 Total Loan 29,13 4.9 29,54 0.2 31,111.0 31,73 7.1 32,607.6 Con vertible Bond 8,546 .3 8,434 .8 8,453 .4 8,495 .4 8,357.0 Finan ce Le ase 8,530 .3 8,442 .0 8,536 .1 8,433 .6 8,321.4 Gross De
Slide 41: 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 Sep 30, 2 023 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 RM B RM B RM B RM B RM B USD (1 ) Net R evenu e Serv ic e re venue 2,518,978 2,556,490 2,627,367 2,826,369 2,
Slide 42: Historical Financial Results – Balance Sheets
Historical Financial Results Condensed Consolidated Balance Sheets A m ount in tho us a nds . A s of S ep 3 0 , 2 0 2 3 Dec 31, 2023 M ar 3 1 , 2 0 2 4 J un 3 0 , 2 0 2 4 S ep 3 0 , 2 0 2 4 R MB R MB R MB R MB R MB U SD ( 1 ) C a sh 7 ,5 2 4 ,8 9 4 7 ,7 1 0 ,7 11 7,6 4 1 ,4 3 9 9 ,9 0 7 ,8 2 3 9 ,4
Slide 43: Historical Financial Results – Statements of Cash Flows
Historical Financial Results Condensed Consolidated Statements Of Cash Flows Am ou nts in tho usan ds Th ree Mo nth s En ded Sep 30, 2 023 Dec 31, 2 023 Mar 31, 2 024 Jun 30, 2 024 Sep 30, 2 024 RM B RM B RM B RM B RM B USD (1 ) Net cas h prov ided by (us ed in) operating ac ti vi ti es 510,446 949,
Slide 44: 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 Sep 30, 2 023 Dec 31, 2 023 Mar 31, 2 024 Jun 30, 2 024 Sep 30, 2 024 RM B RM B RM B RM B RM B USD (1 ) G ross profit 447,449 432, 317 573,674 637,825 656,921 93,611 Depr e
Slide 45: 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 Sep 30, 2 023 Dec 31, 2 023 Mar 31, 2 024 Jun 30, 2 024 Sep 30, 2 024 RM B RM B RM B RM B RM B USD (1 ) Net loss (420,831) (3,164,644) (344,931) (231,768) (231,109) (32,931) Net interes t
Slide 46: Selected Segment Information
Selected Segment Information A m ount s in thou s an ds Thr e e M ont hs En de d S ep 3 0 , 2 0 2 3 Dec 31, 2023 M ar 3 1 , 20 2 4 J un 3 0 , 2 0 2 4 S ep 3 0 , 2 0 2 4 GDSH GDSI Elim ination Tota l GDSH GDSI Elim ination Tota l GDSH GDSI Elim ination Tota l GDSH GDSI Elim ination Tota l GDSH GDSI E
Slide 47: Selected Segment Information – Cont'd
Selected Segment Information – Cont’d A m ount s in thou s an ds Thr e e M ont hs En de d S ep 3 0 , 2 0 2 3 Dec 31, 2023 M ar 3 1 , 20 2 4 J un 3 0 , 2 0 2 4 S ep 3 0 , 2 0 2 4 GDSH GDSI Elim ination Tota l GDSH GDSI Elim ination Tota l GDSH GDSI Elim ination Tota l GDSH GDSI Elim ination Tota l GD
Slide 48: Selected Segment Information – Cont'd
Selected Segment Information – Cont’d Am ou nt in tho usan ds. As o f Sep 30, 2 023 Dec 31, 2 023 Mar 31, 2 024 Jun 30, 2 024 Sep 30, 2 024 RM B RM B RM B RM B RM B USD (1 ) Pr operty and equipment, net GDSH 42,988,571 40,098,416 39,839,824 40,087,960 40,210,445 5,729,943 GDSI 6,411,287 7,408,567 7,
Slide 49: 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 50: 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 J oh