Gds Holdings Ltd. · HKEX:9698
Gds — Q3 2016 Earnings Presentation
23 slides from Gds's earnings presentation, Dec 5, 2016
Slide 1: 3Q 2016 Earnings Presentation
3Q 2016 Earnings Presentation December 5, 2016 NASDAQ: GDS © GDS 2016 0
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such a
Slide 3: Financial & Operating Highlights
Financial & Operating Highlights William Huang, Chairman & CEO © GDS 2016
Slide 4: Initial Public Offering on NASDAQ
Initial Public Offering on NASDAQ On November 2, 2016, the Company successfully completed its initial public offering of 20,070,735 ADSs (including shares to be issued on closing of the green-shoe), each representing eight of its Class A ordinary shares, at a price of US$10.00 per ADS for a total of
Slide 5: Performance Highlights
Performance Highlights Financial Results Operating Metrics Net revenue increased by 56.6% Y-o-Y and by Total area committed increased by 69.6% Y-o-Y 25.9% Q-o-Q to RMB297.2 million (US$44.6 and by 31.4% Q-o-Q to 58,627 sqm million) Area utilized (or revenue-generating space) Service revenue
Slide 6: Sales Achievements
Sales Achievements Total Area Committed Highlights End of Period / Sqm 58,627 Net additional total area committed of 14,013 sqm added in 3Q2016 14,013 44,614 22,709 sqm in YTD exceeds whole of FY2015 35,918 36,959 34,572 4 deals each worth more than US$10 million in annual recurring revenue
Slide 7: Data Center Development
Data Center Development Area In Service & Under Construction Highlights End of Period / Sqm 48,822 63,261 77,806 86,016 Area in service was 48,822 sqm, with 93.8% commitment rate 8,210 Area under construction was 37,194 sqm, with 14,545 34.5% pre-committed 14,439 Data center construction on sc
Slide 8: Financial & Operating Review
Financial & Operating Review Dan Newman, CFO © GDS 2016
Slide 9: Third Quarter 2016 Results
Third Quarter 2016 Results Summary Statement of Operations RMB Mn (unless indicated) 3Q2015 2Q2016 3Q2016 Y-o-Y Q-o-Q Revenue increased by 56.6% Revenue 189.8 236.0 297.2 56.6% 25.9% Y-o-Y, 25.9% Q-o-Q Service revenue increased by Service Revenue 168.5 234.0 266.9 58.4% 14.1% 58.4% Y-o-Y, 14.1%
Slide 10: Contract Backlog Build-up
Contract Backlog Build-up Total Area Committed & Area Utilized End of Period / Sqm Total Area Committed Area Utilized 58,627 24,258 sqm of contract backlog at end of 3Q2016 11,413 sqm relates to area in 44,614 service 35,918 36,959 12,845 sqm relates to area under 34,572 34,369 32,152 construc
Slide 11: Revenue & Area Utilized
Revenue & Area Utilized Revenue (RMB Mn) Area Utilized End of Period / Sqm Service Revenue Equipment Sales 34,369 30.3 32,152 2.0 23,957 15.7 8.7 22,365 21,083 21.3 266.9 234.0 193.4 202.4 168.4 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 Service revenue increased by 58.4
Slide 12: Adjusted EBITDA & Margin
Adjusted EBITDA & Margin Adjusted EBITDA (RMB Mn) & Margin Highlights 22.5% 23.1% 25.3% 20.0% 26.2% 78.0 Adjusted EBITDA increased by 82.7% Y-o-Y, 65.2% Q-o-Q Utilization rate increased to 70.4%, compared 53.4 48.3 47.2 with 66.2% at the end of 2Q2016 42.7 Operating leverage coming through A
Slide 13: Capex & On-Going Investment
Capex & On-Going Investment Capex Incurred (RMB Mn) Data Centers Under Construction Area Under Pre- 386.9 RFS Date Construction Commitment (sqm) Rate (%) 299.3 CD1 (Phase 2) 4Q16 1,550 100% 263.6 SH3 4Q16 7,911 68% 213.3 SZ3 4Q16 2,678 21% 158.2 BJ2 1H17 6,177 0% CD1 (Phase 3) 1H17 3,100 100% SZ4 (P
Slide 14: Balance Sheet & Liquidity
Balance Sheet & Liquidity Debt & Cash Outstanding Highlights As at September 30, 2016 RMB Mn Short Term Long Term Total Gross debt at September 30, 2016 of RMB3,931.7 million (US$589.6 million), of which 83% was long term Loan 574.5 1,407.7 1,982.2 IPO proceeds of US$180.6 million net of underwr
Slide 15: Questions & Answers
Questions & Answers www.gds-services.com ir@gds-services.com © GDS 2016
Slide 16: Appendix
Appendix © GDS 2016
Slide 17: Shares Outstanding
Shares Outstanding Shares Outstanding Before & After IPO Shares Outstanding Before IPO Ordinary Shares Outstanding After IPO* Ordinary Shares 217,987,922 Ordinary Shares 217,987,922 Preferred Shares 349,087,677 Preferred Shares Converted 349,087,677 Total 567,075,599 Ordinary Shares Issued As Prefer
Slide 18: Historical Financial Results
Historical Financial Results Condensed Consolidated Statement of Operations Amounts in thousands For the Three Months Ended, Mar 31, 2015 Jun 30, 2015 Sept 30, 2015 Dec 31, 2015 Mar 31, 2016 Jun 30, 2016 Sept 30, 2016 RMB RMB RMB RMB RMB RMB RMB USD Net Revenue Service revenue 144,462 147,315 168,44
Slide 19: Historical Financial Results
Historical Financial Results Condensed Consolidated Balance Sheets Amounts in thousands As of Dec 31, 2014 As of Dec 31, 2015 As of Jun 30, 2016 As of Sept 30, 2016 RMB RMB RMB RMB USD Cash 606,758 924,498 834,477 798,732 119,777 Accounts receivable, net of allowance for doubtful accounts 73,366 111
Slide 20: Historical Financial Results
Historical Financial Results Cash Flow Statement Amounts in thousands Year Ended Six Months Ended Three Months Ended Dec 31, 2014 Dec 31, 2015 Jun 30, 2016 Sept 30, 2016 RMB RMB RMB RMB USD Net cash provided by (used in) operating activities 27,937 (80,298) (22,069) (100,501) (15,072) Net cash used
Slide 21: Operating Metrics
Operating Metrics Key Performance Indicators End of Period 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 Area In Service (Sqm) 37,645 37,869 37,869 48,548 48,822 Area Under Construction (Sqm) 13,163 35,525 35,525 31,794 37,194 Area Committed (Sqm) 31,794 33,140 33,629 44,062 45,782 Area Pre-Committed (Sqm
Slide 22: Self-Developed Data Centers In Service
Self-Developed Data Centers In Service Self-Developed Data Centers In Service Area In Service Area Committed Commitment Area Utilized Utilization RFS Date Type Tenure (Sqm) (Sqm) Rate (Sqm) Rate KS1 2H10 Purpose-Built Owned 6,546 6,516 100% 5,867 90% Shanghai SH1 2H11 Purpose-Built Leased 6,432 6,18
Slide 23: Self-Developed Data Centers Under Construction
Self-Developed Data Centers Under Construction Self-Developed Data Centers Under Construction Area Under Area Pre-Commitment RFS Date Type Tenure Construction Pre-Committed Rate (Sqm) (Sqm) SH3 2H16 Purpose-Built Leased 7,911 5,343 68% Shanghai SH4 2H17 Purpose-Built Leased 8,210 0 0% SZ3 2H16 Conve