Gds Holdings Ltd. · HKEX:9698
Gds — Merger or Acquisition (October 2017)
13 slides from Gds's merger presentation, Oct 18, 2017
Slide 1: CyrusOne / GDS Strategic Partnership
CYRUSONE / GDS STRATEGIC PARTNERSHIP October 18, 2017
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements regarding future events and our future results that are subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are statements that co
Slide 3: Presenters
Presenters Gary Wojtaszek William Huang Jonathan Schildkraut President and CEO, CyrusOne Founder, Chairman and Chief Strategy Officer, CyrusOne CEO, GDS 3
Slide 4: Partnership Between Two Leading Data Center Companies
Partnership Between Two Leading Data Center Companies Owner, operator and developer of data centers for more Owner, operator and developer of data centers for more Company than 16 years with LQA(1) revenue of ~$200MM and than 17 years with LQA(1) revenue of ~$668MM holding #1 market position in Chin
Slide 5: Overview of Key Transaction Terms
Overview of Key Transaction Terms ▪ Collaborative sales and marketing efforts Exclusive referral arrangement Target home market clients for international expansion Commercial Facilitate on-boarding and management of inbound customer demand Agreement ▪ Sharing of best practices Design and con
Slide 6: Strategic Rationale
Strategic Rationale 1 Well-positioned to meet resource needs on a global basis in Enhanced Ability to world’s two largest markets resulting in compelling value creation Serve Customers for both customer bases 2 Provides access to largest markets in U.S. and Asia with ability to Global Reach and addr
Slide 7: Enhanced Ability to Serve Customers
1 Enhanced Ability to Serve Customers ▪ 2016 GDP(1): $18.6 Trillion World’s Two ▪ 2016-2022 Projected GDP CAGR(1): 4.0% Largest ▪ 2016 GDP(1): $11.2 Trillion Economies ▪ 2016-2022 Projected GDP CAGR(1): 8.6% ▪ Hyperscale companies aggregating demand and expanding Customer Base internationally With G
Slide 8: Global Reach and Local Expertise
2 Global Reach and Local Expertise Midwest Northeast Cincinnati (6 locations) New York (1 location) South Bend (2 locations) Connecticut (2 locations) Kentucky (1 location) New Jersey (2 locations) Chicago (2 locations) Quincy (1 location) Beijing (2 locations) East Shanghai (4 locations) No. Virgin
Slide 9: Leverage Combined Knowledge Base
3 Leverage Combined Knowledge Base ▪ Exclusive referral agreement for respective home countries ▪ Identify customers’ international requirements and match to partner solutions Sales and ▪ Develop joint marketing plans Marketing ▪ Attend each other’s key industry events and conferences ▪ Website upda
Slide 10: Public Market Overview
Public Market Overview ($MM) Share / ADS price (as of 10/17/2017) $61.29 $12.97 Shares / ADS outstanding(1) 91.3 95.1 Market capitalization ($MM) $5,595 $1,234 Net debt(1) 1,829 593 Enterprise Value ($MM) $7,425 $1,827 Valuation(2) Multiple Multiple(3) EV / 2017 Consensus Adjusted EBITDA 20.1x 25.7x
Slide 11: Appendix (Non-GAAP Reconciliations)
APPENDIX (NON-GAAP RECONCILIATIONS)
Slide 12: Non-GAAP Reconciliations (1)
Non-GAAP Reconciliations (1) Quarter ended Quarter ended ($MM) June 30, 2017 June 30, 2016 Net (loss) income ($0.8) $9.1 Interest expense 16.5 11.5 Income tax expense 0.7 0.5 Depreciation and amortization 63.7 44.7 Transaction and acquisition integration costs 1.7 0.4 Legal claim costs 0.6 0.3 Stock
Slide 13: Non-GAAP Reconciliations (1)
Non-GAAP Reconciliations (1) Quarter ended Quarter ended (figures in thousands of Renminbi “RMB”) June 30, 2017 June 30, 2016 Net loss (75,723) (115,419) Net interest expenses 85,755 57,329 Income tax benefit (1,334) (1,543) Depreciation and amortization 78,692 49,518 Accretion expenses for asset re