VNET Group, Inc. · NASDAQ:VNET
VNET — 21Vianet Group — Investor Presentation (May 2021)
28 slides from VNET's investor presentation, May 2021
Slide 1: 21Vianet Group, Inc. Investor Presentation
21Vianet Group, Inc. Investor Presentation May 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: 1Q21 Highlights
1Q21 Highlights Financials Capacity 27.1% YoY 2,373 R Net revenue growth Net adds 60.0% YoY 55,926 R Adj. EBITDA growth Total capacity Sales Momentum Capital Funding ~190 MW USD ~600 mm in service and/or under MOU Convertible bonds (~ 100 MW in service; ~ 90 MW under MOU) RMB ~ 650 mm banking facili
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 Under Construction ~1,100 ~1,100 BJ16 Leased Extension ~600 ~600 N-HB01 Leased Brownfield ~2,000 ~2,000 N-HB02 Le
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) BJ12 Total Capacity ~ 1,400 R Committed Rate > 90% N-HB01 Total Capacity ~ 2,000 R Expected Delivery Date 2021 BJ15 Total Capacity ~ 2,000 R Committed Rate >95% N-HB02 N-HB Campus 01 Total Capacity ~ 5,700 R Total Capacity ~ 7,000 R Committed Rat
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 ~52,100 cabinets # of Self-built Cabinets % Contribution Beijing ~ 22,950 44% Shanghai & Hangzhou ~ 9,800 19% Greater Bay Area ~ 9,300 18% 44% Surrounding Area ~ 6,650 13% 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 with 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 with 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 1Q20 4Q20 1Q21 YoY QoQ Net revenues 1,090,797 1,348,367 1,386,923 27.1% 2.9% Gross profit 234,111 294,425 323,312 38.1% 9.8% Adjusted cash gross profit(1) 417,127 581,850 605,289 45.1% 4.0% Adjusted cash gross margin 38.2% 43.2% 43.6% 5.4 pps 0.4 pps Adjusted EBITDA
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) 1,387 1,348 1,246 8,953 9,074 9,131 9,144 8,663 8,711 8,822 8,747 1,144 55,926 1,091 53,553 51,476 3,716 3,677 3,825 44,050 39,646 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 3,89
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) 29.9% 44.5% 43.6% 27.0% 27.7% 27.4% 43.1% 41.3% 23.8% 38.2% 1,324 1,993 1,050 1,513 1,633 918 605 415 417 259 2018 2019 2020 1Q20 1Q21 2018 2019 2020 1Q20 1Q21 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 5,000 – 6,000 705 714 3,967 274 1,248 435 683 2018 2019 2020 3M21 2018 2019 2020 2021 Key Drivers Key CapEx Spending & Expected Capacity Expansion Capex mainly include expenditure for
Slide 24: Healthy Capital Structure
Healthy Capital Structure Total Debt (1) / LQA Adjusted EBITDA(4) Debt Structure as of 31 Dec, 2020 (x) Borrowing 4.9x 22% 3.1x 2.6x Total Debt: 2.2x CB bonds 48% RMB 8,065 MM Excl. changes in Bond the fair value of payables 2018 2019 2020（2） 1Q21（2） convertible notes CB notes （2） 24% 6% Adjusted EB
Slide 25: Guidance
Guidance RMB mm 2Q20 A 1Q21 A 2Q21 E YoY(1) Revenues 1,144 1,387 1,470 - 1490 29.4% Adjusted EBITDA 306 415 405 - 425 35.6% 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 guid
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 13 April, 2021; Principle shareholders Number of Shares % of Share Holding % of Voting Power Sheng Chen 44,761,879 5.2 28.8 Tuspark 94,415,771 11.0 8.0 GIC 90,527,634 10.5 7.7 Vector Holdco (Blackstone) 49,107,816 5.7 4.
Slide 28: Thanks! Contact Information
Contact Information: THANKS! Company website: http://www.21vianet.com Email: [email protected] IR Contacts: Rene Jiang Julia Jiang 28