VNET Group, Inc. · NASDAQ:VNET
VNET — 21Vianet Group — Investor Presentation (August 2021)
28 slides from VNET's investor presentation, August 2021
Slide 1: 21Vianet Group, Inc. Investor Presentation
21Vianet Group, Inc. Investor Presentation August 2021 1
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: Company Overview
01 Company Overview Digital Economy Infrastructure Service Provider 3
Slide 4: 2Q21 Highlights
2Q21 Highlights Financials Capacity Sales Momentum 30.8% YoY 6,950 R 76.3% UR Net revenue growth Net adds Mature Cabinets 38.7% YoY 62,876 R ~230 MW 9,015 RMB Adj. EBITDA growth Total capacity In service and/or Retail MRR per under MOU Cabinet 4 Source: Company filings.
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-neutral China’s carrier-neutral data center services Dual-core strategy addressing both data center services provider in China with market is fast gr
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 1H21 2H21 FY2021 BJ11 Leased In Service ~300 ~300 BJ13 Leased Under Construction ~1,200 ~1,200 BJ14 Leased In Service ~1,100 ~1,100 BJ16 Leased Under Construction ~600 ~600 N-HB01 Leased Under Construction ~2,000 ~2,000
Slide 8: In-Service & Under Development (Yangtze River Delta)
In-Service & Under Development (Yangtze River Delta) E-JS02 Total Capacity ~ 5,000 R E-JS Campus 01 Committed Rate 95% Total Capacity ~ 3,300 R Expected Delivery Date 2020 - 2021 Pre-commitment Rate 95% Expected Delivery Date 2021 Jiangsu SH04 / SH05 E-JS Campus 02 Total Capacity ~ 1,300 R Total Cap
Slide 9: In-Service & Under Development (Greater Beijing Area)
In-Service & Under Development (Greater Beijing Area) N-OR02 BJ12 Total Capacity ~ 3,000 R Total Capacity ~ 1,400 R Committed Rate >95% Committed Rate > 90% Expected Delivery Date 2021 N-HB02 BJ15 Total Capacity ~ 5,700 R Total Capacity ~ 2,000 R Committed Rate >95% Committed Rate >95% Expected Deli
Slide 10: Key Growth Pillars
Key Growth Pillars Accelerate Continue to Capacity All-in Harness the Invest in Strengthen Roll-out “Dual-core” Strategy and Ecosystem to Technology Customer Full-Stack Services Solidify Platform Play Relationships and Attract New Ones 4 2 5 1 3 10
Slide 11: Investment Highlights
02 Investment Highlights Digital Economy Infrastructure Service Provider 11
Slide 12: 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 13: 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 14: Premium Data Centers Located in Major Internet Hubs
Premium Data Centers Located in Major Internet Hubs Self-built Data Centers We operate 32 self-built data centers with ~59,000 cabinets # of Self-built Cabinets % Contribution Beijing ~ 24,400 41% Shanghai & Hangzhou ~ 9,300 16% Greater Bay Area ~ 9,300 16% 41% Surrounding Area ~ 12,400 21% Others
Slide 15: Differentiated Business Model with Comprehensive Offerings
Differentiated Business Model with Comprehensive Offerings IDC Services “Dual Core” Product Offerings Our Strength Co-location Retail + Wholescale Multi-carrier & multi-cloud connectivity Inter-connectivity High-performing facility & network Hybrid IT services Turn-key solutions tailored
Slide 16: 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 17: In-depth Industry Expertise w/ Strong Engineering Capabilities
In-depth Industry Expertise w/ Strong Engineering Capabilities Innovative and Tailormade Technologies Secure and Reliable Data Centers Power Management Smart Routing Energy Recycling Environmental Controls Superior Highly Secure Interconnectivity Buildings & Data Floors 125 Dedicated Enginee
Slide 18: Visionary Leadership w/ Stellar Track Record of Execution
Visionary Leadership w/ 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 Chunfeng CAI Qihang LIU Chief Executive Officer of Wholesale
Slide 19: Financial Overview
03 Financial Overview Digital Economy Infrastructure Service Provider 19
Slide 20: 1Q21 Financial Highlights
1Q21 Financial Highlights RMB'000 2Q20 1Q21 2Q21 YoY QoQ Net revenues 1,144,061 1,386,923 1,496,978 30.8% 7.9% Gross profit 272,332 323,312 359,515 32.0% 11.2% Adjusted cash gross profit(1) 467,552 605,289 640,247 36.9% 5.8% Adjusted cash gross margin 40.9% 43.6% 42.8% 1.9 pps -0.8 pps Adjusted EBIT
Slide 21: 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) 1,497 1,387 1,348 62,876 1,246 8,953 9,074 9,131 9,144 9,015 8,711 8,822 8,747 1,144 55,926 3,971 53,553 51,476 3,716 3,677 3,825 44,050 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q2
Slide 22: Margin Improvements Through Efficiency Enhancement
Margin Improvements Through Efficiency Enhancement Adjusted Cash Gross Profit & Margin (1) Adjusted EBITDA & Margin (2) (RMB mm) (RMB mm) 44.5% 27.7% 27.4% 28.4% 43.1% 42.8% 27.0% 26.8% 41.3% 40.9% 1,324 1,993 1,050 1,513 1,633 918 640 425 468 306 2018 2019 2020 2Q20 2Q21 2018 2019 2020 2Q20 2Q21 Ad
Slide 23: Healthy Cash Flow Generation and Capital Expenditure
Healthy Cash Flow Generation and Capital Expenditure Operating Cash Flow Capital Expenditure (RMB mm) (RMB mm) 803 5,500 705 714 589 3,967 1,248 1,131 396 435 2018 2019 2020 6M21 2017 2018 2019 2020 2021 Key Drivers Key CapEx Spending & Expected Capacity Expansion Capex mainly include expenditure
Slide 24: Healthy Capital Structure
Healthy Capital Structure Total Debt (1) / LQA Adjusted EBITDA(4) Debt Structure as of 30 Jun, 2021 (x) 4.7x Borrowing 3.1x 23% 2.6x 2.2x CB bonds 48% Total Debt: RMB 7,996 MM Excl. changes in the fair value of Bond 2018 2019 2020（2） 2Q21（2） convertible notes CB notes（2） payables 5% 24% Adjusted EBI
Slide 25: Guidance
Guidance RMB mm 3Q20 A 2Q21 A 3Q21 E YoY(1) Revenues 1,246 1,497 1,530 – 1,550 23.6% Adjusted EBITDA 368 425 420 – 440 16.8% RMB mm 2020 A 2021 E YoY(1) Revenues 4,829 6,100 - 6,300 28.4% Adjusted EBITDA 1,324 1,680 – 1,780 30.7% Source: Company filings. 25 1. YoY represents the midpoints of the gui
Slide 26: Appendix
04 Appendix Digital Economy Infrastructure Service Provider 26
Slide 27: Shareholding Structure
Shareholding Structure Major beneficial ownership of our ordinary shares, as of 30 June, 2021; Principle shareholders Number of Shares % of Share Holding % of Voting Power Sheng Chen 44,761,879 5.1 28.6 Tuspark 94,415,771 10.9 8.0 GIC 75,913,716 8.7 6.4 Vector Holdco (Blackstone) 49,107,816 5.7 4.2
Slide 28: THANKS!
Contact Information: THANKS! Company website: http://www.21vianet.com Email: [email protected] IR Contacts: Xinyuan Liu Julia Jiang 28