VNET Group, Inc. · NASDAQ:VNET

VNET — 21Vianet Group — Investor Presentation (November 2020)

26 slides from VNET's investor presentation, November 2020

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

    21Vianet Group, Inc. Investor Presentation November 2020

  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: 3Q20 Highlights

    3Q20 Highlights Financials Capacity 27.0% YoY 7,426 R Net revenue growth Net adds 35.2% YoY 51,476 R Adj. EBITDA growth Total capacity Pipeline Resource Capital Structure ~ 8,000 R / ~ 50 MW USD ~ 400mm adds in 3Q Surrounding Equity follow-on Beijing Area Source: Company filings. 4

  5. Slide 5: 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

  6. Slide 6: Dual-core Strategy for IDC Business

    Dual-core Strategy for IDC Business Retail Wholesale Turn-key hybrid cloud Value added services Hyperscale IDC Wholesale colocation solutions Focus on high-growth verticals: Targeting large enterprise customers: @ Online Mobile IoT Internet Fintech streaming Our Strength: Our Strength:  Scalable ID

  7. Slide 7: Resource Pipeline to Support IDC Growth

    Resource Pipeline to Support IDC Growth IDC Pipeline Capacity (1) Tenure Status 1H20 3Q20 FY2020 FY2021 BJ11 Leased In Service ~1,100 ~1,100 BJ12 Leased In Service ~1,400 ~1,400 BJ13 Leased Under Construction ~1,200 BJ14 Leased Under Construction ~1,100 N-HB01 NEW Leased Brownfield ~2,000 N-HB02 NEW

  8. Slide 8: 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 ~ 3,000 R Expected Delivery Date 2020 - 2021 Pre-commitment Rate 95% Expected Delivery Date 2021 Jiangsu SH04 Total Capacity ~ 400 R E-JS Cam

  9. Slide 9: In-Service & On-Going Development of Wholesale Projects - Greater Beijing Area

    In-Service & On-Going Development of Wholesale Projects - Greater Beijing Area New N-HB01 BJ12 Total Capacity ~ 1,400 R Total Capacity ~ 2,000 R Committed Rate > 90% Expected Delivery Date 2021 New N-HB02 N-HB Campus 01 Total Capacity ~ 7,000 R Total Capacity ~ 6,000 R Expected Delivery Date 2022 -

  10. Slide 10: Investment Highlights

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

  11. Slide 11: Investment Highlights

    Investment Highlights A Pioneer and Leader in China’s Carrier-neutral IDC Market with a Strong Brand Recognition 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 I

  12. Slide 12: 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

  13. Slide 13: Premium Data Centers Located in Major Internet Hubs

    Premium Data Centers Located in Major Internet Hubs Self-built Data Centers  We operate 31 self-built data centers with ~47,650 cabinets # of Self-built Cabinets % Contribution Beijing ~20,700 43% Shanghai & Hangzhou ~9,800 21% Great Bay Area ~9,300 20% 43% Satellite Cities ~4,350 9% Others ~3,500

  14. Slide 14: 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

  15. Slide 15: 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

  16. Slide 16: 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 172 Dedicated Engineering Pro

  17. Slide 17: Financial Overview

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  18. Slide 18: 3Q20 Financial Highlights

    3Q20 Financial Highlights RMB'000 3Q19 2Q20 3Q20 YoY QoQ Net revenues 980,969 1,144,061 1,245,794 27.0% 8.9% Gross profit 222,555 272,332 275,143 23.6% 1.0% Adjusted cash gross profit(1) 396,731 467,552 526,230 32.6% 12.6% Adjusted cash gross margin 40.4% 40.9% 42.2% 1.8 pp 1.4 pp Adjusted EBITDA(2)

  19. Slide 19: 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) 1,246 1,144 8,788 8,822 8,953 9,074 8,663 8,711 8,747 1,091 1,048 51,476 981 3,825 44,050 39,646 3,893 36,291 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4,279 32,116 4,244 Utilization

  20. Slide 20: Margin Improvements Through Efficiency Enhancement

    Margin Improvements Through Efficiency Enhancement Adjusted Cash Gross Profit & Margin (1) Adjusted EBITDA & Margin (2) (RMB mm) (RMB mm) 29.6% 44.5% 27.0% 27.7% 27.8% 42.0% 43.1% 42.2% 40.4% 22.5% 1,513 1,633 1,050 1,248 918 671 526 368 397 273 2017 2018 2019 3Q19 3Q20 2017 2018 2019 3Q19 3Q20 Adju

  21. Slide 21: Healthy Cash Flow Generation and Capital Expenditure

    Healthy Cash Flow Generation and Capital Expenditure Operating Cash Flow Capital Expenditure (RMB MM) (RMB MM) 803 705 ~4,000 487 430 1,965 326 1,248 791 396 435 2017 2018 2019 9M19 9M20 2017 2018 2019 9M19 9M20 Key Drivers Key Capital Expenditure Spending & Expected Capacity Expansion  Capex mainl

  22. Slide 22: Healthy Capital Structure Thanks to Prudent Financial Policies & Various Financing Channels

    Healthy Capital Structure Thanks to Prudent Financial Policies & Various Financing Channels Total Debt or Net Debt(1)(2) / Adjusted EBITDA(3) Debt Structure as of 30 Sep, 2020 (x) Bank Borrowings 15% 4.3x Convertible Notes 3.2x 3.2x 3.2x 31% 2.5x 0.6x 1.4x 1.2x Excl. changes in (0.1x) -1.2x the fair

  23. Slide 23: Guidance

    Guidance RMB mm 4Q19 A 3Q20 A 4Q20 E YoY(1) Revenues 1,048 1,246 1,320 - 1,340 27% Adjusted EBITDA 264 368 380-400 48% RMB mm 2019 A 2020 E YoY(1) Revenues 3,789 4,800 - 4,820 27% Adjusted EBITDA 1,050 1,314 - 1,334 26% Source: Company filings. 1. YoY represents the midpoints of the guidance ranges

  24. Slide 24: Appendix

    Ht 20 ZK www.21vianet.com

  25. Slide 25: Shareholding Structure

    Shareholding Structure Major beneficial ownership of our ordinary shares, as of 30 Sep, 2020; Principle shareholders % of Share Holding % of Voting Power Tuspark 16.6(1) 48.8(1) Sheng Chen 5.0(1) 14.4(1) Kingsoft 4.1(4) 8.5(4) GIC 7.3%(5) 2.7%(5) Blackstone(2) 6.1(3) 2.3(3) Fidelity International 4.

  26. Slide 26: 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

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