GDS : 4Q23 Earnings Presentation

4Q23&FY23 Earnings Call

26 March 2024

NASDAQ: GDS

HKEX: 9698

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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 as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Such statements are based upon management's current assumptions, forecasts, expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties, assumptions and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP measures have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of the Company's results under U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalent. First, adjusted GP, adjusted GP margin, adjusted EBITDA and adjusted EBITDA margin are not substitutes for gross profit, net income (loss), cash flows provided by (used in) operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP. Second, other companies may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of these non-GAAP financial measures as tools for comparison. Finally, these non-GAAP financial measures do not reflect the impact of net interest expenses, income tax expenses (benefits), depreciation and amortization, operating lease cost relating to

prepaid land use rights, accretion expenses for asset retirement costs, share-based compensation expenses, gain from purchase price adjustment and impairment loss of long-lived assets, each of which have been and may continue to be incurred in the Company's business. See

the Appendix for reconciliation between our adjusted GP and adjusted EBITDA to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP, which is gross profit and net income or net loss, respectively.

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Business Strategy & Performance Highlights

William Huang, Chairman & CEO

FY23 HIGHLIGHTS (1)

Customer Commitments	• New customer commitments (net) of +40,259 sqm
	• Total area committed increased by 6.4% y/y to 670,975 sqm
Customer Move-In	• Additional area utilized (net) of +48,201 sqm
	• Total area utilized of 418,748 sqm, +13.0% y/y, and utilization rate of 73.1%
Financial Results	• Total revenue grew by 6.8% y/y to Rmb 9,956.5 mn ($1,402.3 mn)
	• Adjusted EBITDA grew by 8.8% y/y to Rmb 4,624.1 mn ($651.3 mn)
Financing Transactions	• Obtained Rmb 10 bn ($1.4 bn) of new debt financing / refinancing facilities
	• Equity raise of $587 mn for GDS International in 1Q24

Notes:

1. Exchange rate of 7.0999:1 (RMB:USD) is used throughout this presentation, except for stated otherwise.

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4Q23 HIGHLIGHTS (1)

Customer Commitments	• New customer commitments (net) of +17,242 sqm
	• Total area committed increased by 6.4% y/y to 670,975 sqm
Customer Move-In	• Additional area utilized (net) of +20,074 sqm
	• Total area utilized of 418,748 sqm, +13.0% y/y, and utilization rate of 73.1%
Financial Results	• Total revenue grew by 6.3% y/y to Rmb 2,556.5 mn ($360.1 mn)
	• Adjusted EBITDA grew by 5.7% y/y to Rmb 1,132.6 mn ($159.5 mn)
Financing Transactions	• Obtained Rmb 1,733 mn ($244 mn) of new debt financing / refinancing facilities
	• Equity raise of $587 mn for GDS International in 1Q24

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Snapshot Of Current Portfolio

Total IT Power Capacity, Customers Commitments / Reservations, & Utilization (MW)

		China (1)	International (2)	Total
	In Service	1,201	88	1,289
	Under Construction	332	242 (3)	574
	Total Capacity	1,533	330	1,863
	Total Commitments & Reservations	1,355	202	1,558
	Total Utilized	888	74	961
Notes:
1	. For the purpose of this presentation, "China" refers to assets or business in mainland China and includes 3r d party data centers in Hong Kong and Macau. For the purpose of this illustration, "China" is as at 31/12/2023, and assumes 2.19 kW per
	disclosed sqm.
2	. For the purpose of this presentation, "International" refers to assets and business outside mainland China, except for 3r d party data centers in Hong Kong and Macau which are included in "China", unless stated otherwise. For the purpose of this
	illustration, "International" is as of today.
3	. Including phases which are yet to commence			5

Strategic Priorities - China

Financial Objectives & How We Get There

Selectively target new business

Increase asset utilization by delivering backlog

Incur capex as needed for customer move-in

Monetize assets when market allows

STEADY EBITDA GROWTH

DE-LEVER TO BELOW 5 TIMES

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Strategic Priorities - International

Strategic Priorities

• Create 2nd growth engine
• Emulate success in China
• Initial focus on regional hub markets
• Anticipate where demand will flow
• Establish standalone business

Notes:

1. Include phases which are yet to commence.

Snapshot Of Current Portfolio (MW)

		Singapore
Market	Hong Kong	Johor	Total
		Batam
Capacity In Service &	34	296	330 (1)
Under Construction
Secured Pipeline	66	279	345
Committed & Reserved	31	171	202
Utilized	4	70	74

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Gross Additional Area Committed (Organic Only)

By Quarter (Sqm)				By Year (Sqm)
	China	International (1)			China	International (1)
			21,499			99,197	95,362
				19,154
						4,085	80,506
		16,098
				68,098				68,419
14,066				7,440			28,331
	11,669
	5,792							19,617
			21,499			99,197	91,277
	6,385
14,066					68,098
		10,306		11,714				52,175	48,802
	5,284
4Q22	1Q23	2Q23	3Q23	4Q23	FY19	FY20	FY21	FY22	FY23

Notes:

1. For the purpose of this presentation, "China" refers to assets or business in mainland China and includes 3r d party data centers in Hong Kong and Macau. "International" refers to assets or business outside mainland China, except for 3r d party data centers in Hong Kong and Macau which are included in "China", unless stated otherwise.

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Net Additional Area Committed

By Quarter (Sqm)

China - Organic China - B-O-T China - Acquisition International (1)

By Year (Sqm)

(1)

China - Organic China - B-O-T China - Acquisition International

			16,072	17,242
12,347				7,440
	2,895	4,050	16,072
12,347
				9,802
	6,385	5,792
4Q22	(3,490)	(1,742)	3Q23	4Q23
2Q23
	1Q23

Notes:

1. Refers to area committed under customer agreements remaining in effect at the closing of the acquisition.

161,558

27,911

38,006

92,800

9,045

16,665

95,641

67,090

FY19FY20

118,722

4,085
22,864
3,440	73,894
	28,331	40,259
88,333
	45,563	19,617
		20,642
FY21	FY22	FY23

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