4Q 2022 INVESTOR PRESENTATION
March 2023
Safe Harbor Statement and Disclaimer
This presentation contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our unaudited results for the fourth quarter of 2022, our management quotes and our financial outlook for 2023.
Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the fourth quarter of 2022 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for 2023 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. In addition, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to the development of the e-commerce industry in China, our reliance on the Alibaba ecosystem, risks associated with our network partners and their employees
and personnel, intense competition which could adversely affect our results of operations and market share, any service disruption of our sorting hubs or the outlets operated by our network partners or our technology system. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.
All information provided in this presentation is as of the date of the presentation. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, after the date of this release, except as required by law.
1
Index
01 COMPANY OVERVIEW | 3 |
Leading Express Delivery Company in China | 4 |
Our Business: Past and Present | 5 |
Our Distinct Network Partner Business Model ("NPM") | 6 |
Our Core Competitive Advantages | 7 |
02 OUR CORE COMPETITIVE ADVANTAGES | 11 |
Significant Market Growth Opportunities | 12 |
Distinct Partner Network Built Upon a "Shared-Success" Philosophy | 13 |
Superior Scale & Reach | 14 |
Best-in-Class Operational Capabilities and Cost Efficiencies Enabled by Technology | 16 |
Experienced Leadership & Sound Execution | 19 |
Consistent Achievements in Strategic Focus | 20 |
Adjacent Expansion Beyond Express Delivery | 21 |
Sustainability Through Continuous ESG Practices | 22 |
03 OUR STRATEGIES | 26 |
04 FINANCIAL OVERVIEW | 31 |
Strong Unit Economics | 32 |
Robust Parcel Volume and Revenue Growth | 33 |
Strong Profitability and Margins | 34 |
Continuous Cost Efficiencies and Productivity Gains | 35 |
Strong Operating Cash Flow Supports Continued Investment in Growth | 36 |
Reconciliation of GAAP to Adjusted / Non-GAAP Measures | 37 |
2 |
COMPANY OVERVIEW
01
Leading Express Delivery Company in China
6.6 bn Parcels1 in 4Q22 | 21.6 % Market Share2 | in 4Q22 |
24.4 bn Parcels1 in 2022 | 22.1 % Market Share2 | in 2022 |
#1 | #1 | >99% County-Level Cities |
Covered |
31,000+ | 11,000+ | |||
Pickup / Delivery | Line-haul | |||
Outlets | Vehicles3 | |||
- Top ranking consumer satisfaction among "Tongdas通达"6 since 2014
- #1 market share by parcel volume in China's express delivery industry since 2016
The most profitable among "Tongdas通达"
~5,900
Direct Network
Partners
80,000+
Last-Mile Posts | 98 Sorting Hubs5 | 458 Automation Lines |
Source: Public filings. Data as of 4Q22 unless otherwise indicated
Notes:
1."Parcels"or"Parcel volume" in any given period is defined as the number of parcels picked up using ZTO waybills
- In terms of parcel volume calculated based on data from State Post Bureau
- Includes over 11,000 self-owned vehicles with approximately 9,700 high capacity 15-17 meter trailer trucks
- Line-haulroutes between sorting hubs only
- Includes 87 self-operated sorting hubs, and 11 sorting hubs operated by our network partners
- ZTO, YUNDA, YTO and STO are commonly known as Tongdas
3,750+
Line-haul
Routes4
Indicates #1 in Industry
4
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Disclaimer
ZTO Express (Cayman) Inc. published this content on 29 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 August 2023 03:40:18 UTC.