VNET Group, Inc. · NASDAQ:VNET
VNET — Investor Presentation (November 2021)
27 slides from VNET's investor presentation, November 2021
Slide 1: VNET Group, Inc. Investor Presentation
VNET Group, Inc. Investor Presentation November 2021
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 VNET 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 rel
Slide 3: Company Overview
01 Company Overview Digital Economy Infrastructure Service Provider 3
Slide 4: 3Q21 Highlights
3Q21 Highlights Financials Capacity Operations 25.3% YoY 2,388 R 75.5% UR Net revenue growth Net adds Mature Cabinets 22.2% YoY 65,264 R ~230 MW 9,296 RMB Adj. EBITDA growth Total capacity Wholesale in service Retail MRR per and/or under MOU Cabinet 4 Source: Company data as of Sep 30, 2021.
Slide 5: A Pioneer and Leader in China's Fast Growing IDC Market
A Pioneer and Leader in China’s Fast Growing IDC 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 in services market is fast growing whol
Slide 6: Dual-Core Growth Strategy
Dual-Core Growth Strategy Retail Wholesale Retail Colocation Full Stack Services Hyperscale IDC Interconnection Services Focusing on high-growth verticals which require colocation space, connection, bare- Targeting hyperscalers which require huge amount of space and power to metal, and other value-a
Slide 7: Resource Pipeline to Support IDC Growth
Resource Pipeline to Support IDC Growth IDC Pipeline Capacity (1) Tenure Status 9M21 4Q21 FY2021 BJ03/04 Leased Extension ~400 ~400 BJ11 Leased In Service ~400 ~400 BJ13 Leased In Service ~1,200 ~1,200 BJ14 Leased In Service ~1,100 ~1,100 BJ16 Leased Under Construction ~600 ~600 N-HB01 Leased Under
Slide 8: In-Service & Under Development (Yangtze River Delta)
In-Service & Under Development (Yangtze River Delta) E-JS Campus 01 E-JS02 Total Capacity ~ 3,300 R Total Capacity ~ 5,000 R Pre-commitment Rate >95% Committed Rate >95% Jiangsu SH04 / SH05 E-JS Campus 02 Total Capacity ~ 1,300 R Total Capacity >8,000 R Committed Rate >95% Expected Delivery Date 202
Slide 9: In-Service & Under Development (Greater Beijing Area)
In-Service & Under Development (Greater Beijing Area) BJ15 BJ12 Total Capacity ~ 2,000 R Total Capacity ~ 1,400 R Committed Rate >95% Committed Rate >90% N-HB Campus 01 Total Capacity ~ 7,000 R N-HB02 Expected Delivery Date 2022 - 2023 Total Capacity ~ 6,500 R Committed Rate >95% N-HB Campus 02 Tota
Slide 10: Key Growth Pillars
Key Growth Pillars All-in Harness the Accelerate Strengthen Customer “Dual-core” Strategy Ecosystem to Continue to Invest in Capacity Relationships and and Full-Stack Solidify Technology Roll-out Attract New ones Services Platform Play 2 4 1 3 5 Source: Company information. 10
Slide 11: Commitment to Sustainability and Corporate Social Responsibility
Commitment to Sustainability and Corporate Social Responsibility ENVIRONMENT SOCIAL GOVERNANCE Pursuing net-zero-carbon strategy, Committed to creating a diversified, 6-member board with extensive dedicated to reducing carbon footprint inclusive and open workplace, out of experience, of which 5 are
Slide 12: Investment Highlights
02 Investment Highlights Digital Economy Infrastructure Service Provider 12
Slide 13: Investment Highlights
Investment Highlights A Pioneer and Leader in China’s Carrier-Neutral IDC Market Premium Data Centers Located in Major Internet Hubs Differentiated Business Model with Comprehensive Offerings Large and Diversified Customer Base, with Strong Loyalty In-depth Industry Expertise with Strong Engineering
Slide 14: A Pioneer and Leader in China's Carrier-Neutral IDC Market
A Pioneer and Leader in China’s Carrier-Neutral IDC Market The first carrier-neutral IDC providers in China with infrastructure interconnected with various network providers The first global cloud operating entity in China to help accelerate enterprises’ cloud transformation 11% Market Share(1) Stro
Slide 15: Strategically Located Network of Premium Data Centers
Strategically Located Network of Premium Data Centers Self-built Data Centers • 38 self-built data centers with ~61,500 cabinets # of Self-built Cabinets % Contribution Beijing ~ 26,000 42% Shanghai & Hangzhou ~ 9,500 16% Greater Bay Area ~ 9,300 15% Surrounding Area ~ 13,200 21% Beijing Others ~ 3,
Slide 16: Differentiated Business Model with Comprehensive Offerings
Differentiated Business Model with Comprehensive Offerings Managed Hosting Services Cloud Services VPN Services1 • Co-location • Multi-protocol Label Switching (MPLS) & Software-defined Wide Area Network • Inter-connectivity (SD-WAN) • Hybrid IT Services • Internet Access & Network Services • Other
Slide 17: Large and Diversified Customer Base, with Strong Loyalty
Large and Diversified Customer Base, with Strong Loyalty Retail ◼ ~3,000 enterprise customers have enjoyed company’s colocation, connectivity, bare mental, hybrid cloud and maintenance services ◼ Over 90% of net revenues have been recurring revenues since IPO ◼ Maintain low concentration of risk wit
Slide 18: In-depth Industry Expertise with Strong Engineering Capabilities
In-depth Industry Expertise with Strong Engineering Capabilities Innovative and Tailored Technologies Secure and Reliable Data Centers ✓ Power Management ✓ Smart Routing Superior Interconnectivity ✓ Energy Recycling ✓ Environment Controls Highly Secure Buildings & Data Floors Hypersensitive Detectio
Slide 19: Visionary Leadership with Stellar Track Record of Execution
Visionary Leadership with Stellar Track Record of Execution Josh Sheng CHEN Samuel SHEN Tim CHEN Founder and Chairman Chief Executive Officer, Chief Financial Officer Executive Chairman of Retail IDC China Energy Internet Alliance Shiqi WANG Qihang LIU Chief Executive Officer of Wholesale IDC Presid
Slide 20: Financial Overview
03 Financial Overview Digital Economy Infrastructure Service Provider 20
Slide 21: 3Q21 Financial Highlights
3Q21 Financial Highlights RMB'000 3Q20 2Q21 3Q21 YoY QoQ Net revenues 1,245,794 1,496,978 1,560,460 25.3% 4.2% Gross profit 275,143 359,515 375,184 36.4% 4.4% Adjusted cash gross profit(1) 526,230 640,247 674,492 28.2% 5.3% Adjusted cash gross margin 42.2% 42.8% 43.2% 1.0 pps 0.4 pps Adjusted EBITDA
Slide 22: 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) 1,560 1,497 1,348 1,387 9,074 9,131 9,144 9,015 9,296 8,711 8,822 8,747 8,953 1,246 65,264 62,876 3,811 55,926 3,971 53,553 51,476 3,716 3,677 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q
Slide 23: 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% 28.9% 44.5% 27.0% 27.7% 27.4% 43.1% 42.2% 43.2% 41.3% 1,324 1,993 1,050 1,513 1,633 918 674 450 526 368 2018 2019 2020 3Q20 3Q21 2018 2019 2020 3Q20 3Q21 Ad
Slide 24: Healthy Cash Flow Generation and Capital Expenditure
Healthy Cash Flow Generation and Capital Expenditure Operating Cash Flow Capital Expenditure (RMB mm) (RMB mm) 3,967 803 705 714 724 1,790 1,248 396 435 2018 2019 2020 9M21 2017 2018 2019 2020 9M21 Key Drivers Key CapEx Spending & Expected Capacity Expansion ◼ Continuously increasing cash flow from
Slide 25: Healthy Capital Structure
Healthy Capital Structure Total Debt & Net Debt / LQA Adjusted EBITDA1 Debt Structure as of Sep 30, 2021 4.7x Borrowing 3.9x 27% 3.1x CB bonds 2.2x 45% 2.8x 2.1x 1.4x Adjusted for changes -0.1x in the fair value of convertible notes 2018 2019 2020 3Q21 CB notes Bonds 5% payable Total Debt / LQA Adj.
Slide 26: Guidance
Guidance RMB mm 4Q20 A 3Q21 A 4Q21 E YoY(1) Revenues 1,348 1,560 1,750 – 1,770 30.5% Adjusted EBITDA 390 450 450 - 470 17.9% RMB mm 2020 A 2021 E YoY(1) Revenues 4,829 6,190 - 6,210 28.5% Adjusted EBITDA 1,324 1,740 – 1,760 32.2% Source: Company data as of 30 Sep, 2021. 26 1. YoY represents the midp
Slide 27: THANKS!
http://ir.vnet.com THANKS! Email: ir@vnet.com IR Contacts: Xinyuan Liu Julia Jiang 27