VNET Group, Inc. · NASDAQ:VNET
VNET — 21Vianet Group — Investor Presentation (September 2018)
25 slides from VNET's investor presentation, September 2018
Slide 1: 21Vianet Group, Inc. Investor Presentation
21Vianet Group, Inc. Investor Presentation September, 2018
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
Slide 3: At a Glance
At a Glance Inception Time In 1996 Listing Time Apr, 2011 Exchange / Ticker Nasdaq: VNET Price (as of Nov 16, 2018) $ 11.45 Market Cap $ 1.28 Billion
Slide 4: A Leading Internet Data Centre Services Provider in China
A Leading Internet Data Centre Services Provider in China Market • China's internet infrastructure industry is among the fastest growing in the world. • Carrier-neutrals internet data centers (IDC) are growing faster than the industry average. Leadership • VNET is a leading carrier-neutral & cloud-n
Slide 5: Hyper Growth of China's Internet Traffic
Hyper Growth of China’s Internet Traffic Internet Traffic per Month Internet Traffic per Capita China has the world’s largest under-addressed IDC market with significant potentials driven by: (EB) 42.4 (GB) 30 China’s ever deepening Internet penetration accelerates the demand for online services. 11
Slide 6: IDC: One of the Fastest Growing Sectors
IDC: One of the Fastest Growing Sectors Internet Data Center (IDC) Market Size in China Carrier-Neutral IDC Market to Outgrow (US$ Bn) (US$ Bn) 5.5 2.52 28.5 23.0 18.5 14.4 10.9 7.9 1.25 2.98 2016 2017E 2018E 2019E 2020E 2021E 0.51 0.74 Major growth drivers are: more data generated 2011 2015 per int
Slide 7: 21Vianet's Market Leadership
21Vianet’s Market Leadership China IDC Market Share in 2016 (1) Carrier-Neutral accounts for 44% Market (1) Carrier-Neutral Market: top 6 players represent ~70% share in tier 1 cities (1) Other Carrier- 21Vianet Neutral Carrier A 18% 26% 32% Carrier- Market Size YoY Growth Neutral or Carrier C $7.9
Slide 8: Investment Highlights
=e ae Investment Highlight
Slide 9: Investment Highlights
Investment Highlights Trusted Brand and Clear Leadership Advanced Technology with Customized Solutions Recurring Revenue and Diversified Customers Sustainable Growth and Profitability Strong Support from Shareholders and Partners 9
Slide 10: Trusted Brand and Clear Leadership
1 Trusted Brand and Clear Leadership Awards We build and operate our data centers in compliance with high industry standards in order to provide our customers with • Well-Known Trademark Honor (“中国驰名商标”) in 2014 secure and reliable environments necessary for optimal internet interconnectivity. • Rel
Slide 11: Advanced Technology with Customized Solutions
2 Advanced Technology with Customized Solutions Product Offering Inter- Hybrid IT Other value- Colocation VPN Service Cloud Service connectivity Service added service Customers value the most: Our Advantages • Multi-carrier & multi-cloud connectivity • Network features numerous interfaces with multi
Slide 12: Recurring Revenue and Customer Concentration
3 Recurring Revenue and Customer Concentration Recurring revenues contributing to over 90% of our net revenues since 2015 Top 20 customers in 3Q18 Net Revenue % Top 5 Customers % of 3Q Revenue Internet Company 11.2% 33% Financial Service 2.3% e-Commerce 2.3% 67% e-Commerce 2.2% e-Commerce 1.9% Top 2
Slide 13: Recurring Revenue and Diversified Customers
3 Recurring Revenue and Diversified Customers Social Mobile Search Engine Financial & E-Commerce Rich Media Enterprise Networking Internet /Portal Insurance Source: Company filings. 13
Slide 14: Sustainable Growth and Profitability
4 Sustainable Growth and Profitability Net Revenues Adjusted EBITDA (CNY mm) (CNY mm) 870 245 828 221 801 196 176 171 759 766 3Q17 4Q17 1Q18 2Q18 3Q18 3Q17 4Q17 1Q18 2Q18 3Q18 Source: Q3 2018 Company filings. 14
Slide 15: Strong Support from Shareholders and Partners
5 Strong Support from Shareholders and Partners Shareholders ■ TUS Holdings is an S&T investment ■ In Dec, 2014, we received a combined strategic investment from Kingsoft, holdings group established in reliance on Temasek and Xiaomi Tsinghua University focusing on S&T services ■ As of 30th June 2018
Slide 16: Strong Support from Shareholders and Partners
5 Strong Support from Shareholders and Partners Major beneficial ownership of our ordinary shares, as of March 31, 2018; Principal Shareholders: % of Share Holding % of Voting Power Tuspark Innovation Venture Ltd. 21.3 50.9 Esta Investments Pte Ltd (Temasek) 9.6 2.9 King Venture Holdings Limited 8
Slide 17: Our Nationwide Data Centers
Our Nationwide Data Centers BJ 1 BJ 7 65% SH 1 SZ 2 SH 4 GD 1 ZJ 2 Source: Company Data. 17 The demographic displayed on the map only represent the range of company’s self-built data center.
Slide 18: Financial Overview
Financial Overview
Slide 19: Revenue Growth Supported by Capacity, MRR & Utilization
Revenue Growth Supported by Capacity, MRR & Utilization Net Revenues & Cabinets (1) IDC MRR per Cabinet (2) (CNY mm) (Net Revenues in CNY mm) 870 828 8,271 8,384 801 7,878 7,817 7,905 7,615 7,598 7,697 7,766 759 766 29,149 30,303 29,080 29,035 27,424 4,982 4,942 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q
Slide 20: Margin Improvements through Efficiency Enhancement
Margin Improvements through Efficiency Enhancement Adjusted Cash Gross Profit & Margin (1) Adjusted EBITDA & Margin (2) 28.2% (CNY mm) 45.0% (CNY mm) 26.7% 24.5% 43.9% 23.2% 43.4% 22.3% 245 392 221 41.6% 41.8% 196 364 347 176 171 316 320 3Q17 4Q17 1Q18 2Q18 3Q18 3Q17 4Q17 1Q18 2Q18 3Q18 Adjusted Cas
Slide 21: CAPEX Plan For Business Expansion
CAPEX Plan For Business Expansion Capital Expenditures (1) Estimated Investment Regions (CNY mm) • Focusing on expanding data center capacity mainly in tier 1 cities; • Exploring the merging opportunities in nearby satellite cities and 1,052 quasi - tier 1 cities. wholesale projects 801 M&A 752 575
Slide 22: Cash Positions & Liquidity
Cash Positions & Liquidity Operating Cash Flow (1) Adjusted EBITDA Interest Coverage (2) (CNY mm) 468 5.0x 402 325 3.4x 3.4x 2.4x 217 1.4x 84 FY14 FY15 FY16 FY17 9M18 FY14 FY15 FY16 FY17 9M18 Source: Company filings. 1. The statistics displayed on the charts above for 2018 Q2 only represent the Host
Slide 23: Financial Highlights
Financial Highlights CNY'000 3Q17 2Q18 3Q18 YoY QoQ Revenues 759,255 828,317 870,068 14.6% 5.0% Gross profit 217,076 229,433 241,195 11.1% 5.1% Adjusted cash gross profit(1) 315,594 364,008 391,940 24.2% 7.7% Adjusted cash gross Margin 41.6% 44.0% 45.0% - - Operating (loss)/profit 47,927 51,496 64,6
Slide 24: Guidance
Guidance CNY‘MM 3Q18 A 4Q18 E 4Q17 A YoY Revenues 828 870 - 890 766 13.6% - 16.2% Adjusted EBITDA 221 245 - 265 171 43.3% - 55.0% CNY‘MM Previous FY18 Updated FY18 FY17 A YoY Revenues 3,280 - 3,380 3,370 - 3,390 2,975 13.3% - 13.9% Adjusted EBITDA 800 - 880 905 - 925 671 34.9% - 37.9% Source: Compan
Slide 25: Thank You!
Contact Information: Company website: Thank You! http://www.21vianet.com Email: IR@21vianet.com IR Contacts: Rene Jiang Leading carrier -neutral & cloud - Julia Jiang neutral service provider in China
21Vianet Group — Investor Presentation (September 2018) on 6ix