GDS : 2Q23 Earnings Presentation

2Q23 Earnings Call

22 August 2023

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

Strategic Business Objectives

China

1. Selectively target new business based on inventory and speed of move-in
2. Prioritize delivery of Rmb 6 bn backlog to grow revenue with less capex
3. Increase utilization rate to over 80% within 3 years to drive up ROI
4. Invest incremental capex based on firmly committed demand
5. Monetize assets where appropriate to accelerate FCF generation

International

1. Develop 2nd growth engine for GDS shareholders
2. Win new business from reference China and global customers
3. Leverage development cost advantage and speed of execution
4. Finance expansion without burdening GDS balance sheet
5. Benchmark value creation through external funding rounds

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2Q23 HIGHLIGHTS (1)

Customer Commitments	• New customer commitments (gross) of +16,098 sqm
	• Total area committed increased by 8.4% y/y to 637,661 sqm, or 1,428 MW
Customer Move-In	• Gross additional area utilized of +14,854 sqm
	• Total area utilized of 382,796 sqm, +10.7% y/y, and utilization rate of 72.1%
Financial Results	• Total revenue grew by 7.0% y/y to Rmb 2,472.0 mn ($340.9 mn)
	• Adjusted EBITDA grew by 16.3% y/y to Rmb 1,235.1 mn ($170.3 mn)
Financing Transactions	• Obtained Rmb 722.5 mn ($99.6 mn) of new debt financing / refinancing facilities
	• Repurchased $299,910,000 of the 2.00% Convertible Senior Notes due 2025

Notes:

1. Exchange rate of 7.2513:1 (RMB:USD) is used throughout this presentation.

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