VNET Group, Inc. · NASDAQ:VNET
VNET — Q4 2023 Earnings Presentation
29 slides from VNET's earnings presentation, March 2024
Slide 1: VNET Group, Inc. Investor Presentation
单击此处编辑母版标题样式 VNET Group, Inc. Investor Presentation March 2024
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: 4Q 2023 Highlights
单击此处编辑母版标题样式 4Q 2023 Highlights Financials (in RMB) Liquidity (in RMB) Revenue: 1,898 million (+0.9% YoY) Unused Credit Line: 2,811 million Adjusted EBITDA: 440 million (+4.0% YoY) Cash Position(1): 5,456 million Retail & Wholesale Updates Capacity RMB 9,477 93,597 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 Yangtze River E-JS04 15 1Q24 Cloud Service Wholesale Delta 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 ü A leading carrier- and cloud-neutral data center services provider in China with 28 years of experience ü ~10%(1) market share of China’s carrier-neutral data center services market ü 275 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 53 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) Services • Other Value-add
Slide 11: 2023 Cabinet Delivery
单击此处编辑母版标题样式 2023 Cabinet Delivery Region IDC Code Tenure Status Cabinet Delivered in 2023 E-JS Campus 02 A Owned In-Service 1,270 Yangtze River Delta E-JS Campus 02 B Owned In-Service 1,420 E-JS Campus 02 C Owned In-Service 1,560 BJ17 Owned In-Service 750 Greater Beijing Area Others Owned In-Servic
Slide 12: 2024 Resource Pipeline to Support IDC Growth
单击此处编辑母版标题样式 2024 Resource Pipeline to Support IDC Growth Region IDC Code Tenure Status Capacity (MW) E-JS Campus 02 D Owned Under Construction 26 Yangtze River Delta E-JS Campus 02 E Owned Under Construction 60 E-JS04 Owned Under Construction 15 Greater Beijing Area BJ18 Owned Under Construction 18
Slide 13: 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-JS Campus 02 C 26 E-JS01 5 Yangtze River Delta E-JS02 64 E-JS03 15 SH04 2 SH05 7 S
Slide 14: 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) E-JS Campus 02 D 26 Yangtze River Delta E-JS Campus 02 E 60 E-JS04 15 Other Regions W-OR03 2 Total 102 Source: Company data. Note: IT capacity numbers measured by megawatt are rounded. 14
Slide 15: 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) 55.0% 56.5% 59.0% 58.9% 59.0% 93,597 87,310 88,922 52,408 55,235 87,322 86,927 4,240 48,016 49,316 51,316 4,741 4,679 4,271 4,314 84,608 89,357 82,581 82,631 82,656
Slide 16: 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 n >7,500 enterprise customers, of which >1,500 customers have enjoyed our colocation, connectivity, bare metal, hybrid cloud and maintenance services, etc. n Around 90% of net revenues have been recurring revenues since IPO n Low c
Slide 17: Contents
CONTENTS 1. Company Overview 2. Business Overview 3. Financials Overview 4. Appendix
Slide 18: 4Q23 Financial Highlights
单击此处编辑母版标题样式 4Q23 Financial Highlights RMB MM 4Q22 3Q23 4Q23 YoY QoQ FY2022 FY2023 YoY Net revenues 1,881 1,887 1,898 0.9% 0.6% 7,065 7,413 4.9% Gross profit 328 306 291 -11.4% -5.1% 1,358 1,292 -4.8% Adjusted cash gross profit(1) 740 738 742 0.2% 0.5% 2,846 2,977 4.6% Adjusted cash gross margin 39.
Slide 19: 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) 39.4% 41.8% 40.8% 39.1% 39.1% 22.6% 30.8% 29.4% 26.9% 23.2% 754 556 535 740 743 738 742 508 424 440 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 1Q23 2Q23 3Q23 4Q23 Adj
Slide 20: 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 2,811 MM unused 5,456 357 5,049 3,402 2,989 2,963 286 4,250 2,454 1,708 5,099 817 751 3,116 2,989 1,771 2,963 1,708 799 817 751 683 2024
Slide 21: 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 December 31, 2023 6.7x 2027 Convertible Bonds 5.8x 15.0% 3.9x 5.5x 3.7x Borrowing 4.2x 49.5% 2.9x 2.1x 2026 Convertible Bonds 2020 2021 2022 2023 35.5% Total Debt / LQA Adj. EBITDA Net Debt / LQA
Slide 22: Guidance
单击此处编辑母版标题样式 Guidance RMB MM 2023 Actual 2024 Guidance Implied YoY Revenues 7,413 7,800 - 8,000 5.2% - 7.9% Adjusted EBITDA 2,039 2,220 - 2,280 8.9% - 11.8% Source: Company data. 22
Slide 23: Contents
CONTENTS 1. Company Overview 2. Business Overview 3. Financials Overview 4. Appendix
Slide 24: Key P&L Items
单击此处编辑母版标题样式 Key P&L Items Amount in thousands Three months ended Twelve months ended December 31, 2022 September 30, 2023 December 31, 2023 December 31, 2022 December 31, 2023 RMB RMB RMB US$ RMB RMB US$ Net revenues 1,880,673 1,886,924 1,898,480 267,395 7,065,232 7,412,930 1,044,089 Cost of revenu
Slide 25: GAAP to Non-GAAP Reconciliations
单击此处编辑母版标题样式 GAAP to Non-GAAP Reconciliations Amount in thousands Three months ended Twelve months ended December 31, 2022 September 30, 2023 December 31, 2023 December 31, 2022 December 31, 2023 RMB RMB RMB US$ RMB RMB US$ Gross profit 328,375 306,478 290,878 40,969 1,358,256 1,292,485 182,042 Plus
Slide 26: Key Balance Sheet Items
单击此处编辑母版标题样式 Key Balance Sheet Items Amount in thousands, As of December 31, 2022 December 31, 2023 RMB RMB US$ Cash, cash equivalents and restricted cash 2,989,494 5,098,987 718,177 Accounts and notes receivable, net 1,763,693 1,715,975 241,690 Property and equipment, net 11,964,498 13,024,393 1,83
Slide 27: Key Cash Flow Items
单击此处编辑母版标题样式 Key Cash Flow Items Amount in thousands Three months ended December 31, 2022 September 30, 2023 December 31, 2023 RMB RMB RMB US$ Net cash generated from operating activities 407,488 454,313 730,680 102,913 Net cash used in investing activities (1,333,383) (750,146) (1,401,935) (197,458
Slide 28: 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 29: THANKS!
http://ir.vnet.com THANKS! Email: ir@vnet.com IR Contact: Xinyuan Liu