VNET Group, Inc. · NASDAQ:VNET
VNET — 21Vianet Group — Investor Presentation (March 2019)
26 slides from VNET's investor presentation, March 2019
Slide 1: 21Vianet Group, Inc. Investor Presentation
21Vianet Group, Inc. Investor Presentation March, 2019
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: At a Glance
At a Glance Inception Time In 1996 Listing Time Apr, 2011 Exchange / Ticker Nasdaq: VNET Price (as of Feb 28, 2019) $ 9.44 Market Cap $ 1.06 Billion
Slide 4: A Leading Internet Data Centre Services Provider in China
A Leading Internet Data Centre Services Provider in China Market • China's internet infrastructure industry is among the fastest growing in the world. • Carrier-neutrals internet data centers (IDC) are growing faster than the industry average. Leadership • VNET is a leading carrier-neutral & cloud-n
Slide 5: Hyper Growth of China's Internet Traffic
Hyper Growth of China’s Internet Traffic Internet Traffic per Month Internet Traffic per Capita China has the world’s largest under-addressed IDC market with significant potentials driven by: (EB) 42.4 (GB) 30 China’s ever deepening Internet penetration 11.3 8 accelerates the demand for online servi
Slide 6: IDC: One of the Fastest Growing Sectors
IDC: One of the Fastest Growing Sectors Internet Data Center (IDC) Market Size in China Carrier-Neutral IDC Market to Outgrow (US$ Bn) (US$ Bn) 5.5 2.52 35.4 28.5 23.0 18.5 14.4 10.7 1.25 2.98 2017 2018E 2019E 2020E 2021E 2022E 0.51 0.74 Major growth drivers are: more data generated 2011 2015 per in
Slide 7: 21Vianet's Market Leadership
21Vianet’s Market Leadership China IDC Market Share in 2017 (1) Carrier-Neutral accounts for 44% Market (1) Carrier-Neutral Market: top 6 players represent ~70% share in Tier-1 cities (1) Other Carrier- Carrier A neutral 21Vianet 30% 25% 16% Carries- Market Size or YoY Growth neutral 21Vianet $10.7
Slide 8: Investment Highlights
5 nc = | Investment Highlig 2
Slide 9: Investment Highlights
Investment Highlights Trusted Brand and Clear Leadership Advanced Technology with Customized Solutions Recurring Revenue and Diversified Customers Sustainable Growth and Profitability Strong Support from Shareholders and Partners 9
Slide 10: Trusted Brand and Clear Leadership
1 Trusted Brand and Clear Leadership Certification We build and operate our data centers in compliance with high industry standards in order to provide our customers with secure and reliable environments necessary for optimal internet interconnectivity. Inter- ISO/IEC ISO/IEC ISO ISO 22301 connectiv
Slide 11: Advanced Technology with Customized Solutions
2 Advanced Technology with Customized Solutions Product Offering Inter- Hybrid IT Other value- Colocation VPN Service Cloud Service connectivity Service added service Customers value the most: Our Advantages • Multi-carrier & multi-cloud connectivity • Network features numerous interfaces with multi
Slide 12: Recurring Revenue and Customer Concentration
3 Recurring Revenue and Customer Concentration Recurring revenues contributing to over 90% of our net revenues since IPO Top 20 customers in 4Q18 Net Revenue % Top 5 Customers % of 4Q Revenue Internet Company 11.9% 33% e-Commerce 2.5% Financial Service 2.3% 67% e-Commerce 2.2% Social network 1.8% To
Slide 13: Recurring Revenue and Diversified Customers
3 Recurring Revenue and Diversified Customers Source: Company filings. 13
Slide 14: Sustainable Growth and Profitability
4 Sustainable Growth and Profitability Net Revenues Adjusted EBITDA (CNY mm) (CNY mm) 902 255 870 245 828 221 801 766 196 171 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 Source: Q4 2018 Company filings. 14
Slide 15: Strong Support from Shareholders and Partners
5 Strong Support from Shareholders and Partners Shareholders ■ TUS Holdings is an S&T investment ■ In Dec, 2014, we received a combined strategic investment from Kingsoft, holdings group established in reliance on Temasek and Xiaomi Tsinghua University focusing on S&T services ■ As of Dec 31, 2018,
Slide 16: Strong Support from Shareholders and Partners
5 Strong Support from Shareholders and Partners Major beneficial ownership of our ordinary shares, as of March 31, 2018; Principal Shareholders: % of Share Holding % of Voting Power Tuspark Innovation Venture Ltd. 21.3 50.9 Esta Investments Pte Ltd (Temasek) 9.6 2.9 King Venture Holdings Limited 8
Slide 17: Our Nationwide Data Centers
Our Nationwide Data Centers BJ 1 BJ 7 65% SH 1 SZ 2 SH 4 GD 1 ZJ 2 Source: Company Data. 17 The demographic displayed on the map only represent the range of company’s self-built data center.
Slide 18: Financial Overview
Financial Overview
Slide 19: Revenue Growth Supported by Capacity, MRR & Utilization
Revenue Growth Supported by Capacity, MRR & Utilization Net Revenues & Cabinets (1) IDC MRR per Cabinet (2) (CNY) (Net Revenues in CNY mm) 902 828 870 8,271 8,384 8,457 7,878 7,905 766 801 7,598 7,697 7,817 7,766 30,303 30,654 29,080 29,035 29,149 4,942 4,943 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
Slide 20: Margin Improvements through Efficiency Enhancement
Margin Improvements through Efficiency Enhancement Adjusted Cash Gross Profit & Margin (1) Adjusted EBITDA & Margin (2) (CNY mm) 45.0% 45.4% (CNY mm) 28.2% 28.3% 43.4% 43.9% 26.7% 24.5% 41.8% 409 255 22.3% 245 392 364 221 347 320 196 171 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 Adjusted Cas
Slide 21: CAPEX Plan For Business Expansion
CAPEX Plan For Business Expansion Capital Expenditures (1) Estimated Investment Regions (CNY mm) • Focusing on expanding data center capacity mainly in tier 1 cities; 1052 • Exploring the merging opportunities in nearby satellite cities and quasi - tier 1 cities. 700 – 900 435 435 396 2015 2016 2017
Slide 22: Cash Positions & Liquidity
Cash Positions & Liquidity Operating Cash Flow (1) Adjusted EBITDA Interest Coverage (2) (CNY mm) 4.8x 705 3.4x 3.4x 487 2.4x 325 1.4x 217 84 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Source: Company filings. 1. The statistics displayed on the charts above for 2018 only represent Hosting and
Slide 23: Financial Highlights
Financial Highlights CNY'000 4Q17 3Q18 4Q18 YoY QoQ Revenues 765,814 870,068 901,887 17.8% 3.7% Gross profit 200,200 241,195 246,341 23.1% 2.1% Adjusted cash gross profit(1) 320,067 391,940 409,214 27.9% 4.4% Adjusted cash gross margin 41.8% 45.0% 45.4% 3.6 pp 0.3 pp Operating (loss)/profit 7,795 64
Slide 24: 2018 Financial Highlights
2018 Financial Highlights CNY‘mm 2016 2017 2017 vs. 2016 2018 2018 vs. 2017 Revenues 2,669 2,975 11.5% 3,401 14.3% Gross profit 732 845 15.4% 944 11.8% Adjusted cash gross profit(1) N/A 1,248 N/A 1,513 21.2% Adjusted cash gross margin N/A 42.0% N/A 44.5% 2.5 pp Operating (loss)/profit -65 157 N/A 23
Slide 25: Guidance
Guidance CNY mm 1Q18 A 4Q18 A 1Q19 E YoY(1) Revenues 801 902 860 – 880 8.6% Adjusted EBITDA 196 255 230 - 250 22.4% CNY mm 2018 A 2019 E YoY(1) Revenues 3,401 3,760 – 3,860 12.0% Adjusted EBITDA 918 1,000 – 1,100 14.4% Source: Company filings 1. YoY represents the midpoints of the guidance ranges co
Slide 26: Thank You!
Contact Information: Company website: Thank You! http://www.21vianet.com Email: [email protected] IR Contacts: Rene Jiang Leading carrier -neutral & cloud - Julia Jiang neutral service provider in China