2019 Second Quarter Corporate Presentation August 13, 2019 Disc - PowerPoint PPT Presentation

2019 Second Quarter Corporate Presentation August 13, 2019

Disc sclaim aimer This presentation has been prepared by BEST Inc. (the “Company”) solely for informational purposes and have not been independently verified. No representations or warranties, express or implied, are made by the Company or any of its affiliates, directors, officers, employees, advisors, or representatives with respect to, and no reliance should be placed, on the accuracy, fairness or completeness of the information presented or contained in these materials. None of the Company nor any of its affiliates, directors, officers, employees, advisers or representatives accepts any responsibility or liability whatsoever for any loss howsoever arising from any information presented or contained in or derived from these materials. The information presented or contained in these materials is as of the date hereof and is subject to change without notice and its accuracy, fairness or completeness is not guaranteed. This presentation contains forward-looking statements. All statements, other than statements of historical facts, contained in this presentation, including, without limitation, statements regarding our strategy and market opportunities, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management, are forward- looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements are forward-looking statements within the meaning of the U.S. securities laws. These forward-looking statements are made only, and are based on estimates and information available to the Company, as of the date of this presentation, and are not guarantees of future performance. These forward-looking statements are based on a number of assumptions which are subject to known and unknown risks, uncertainties and other factors that are beyond the Company’s control, such as the political, social, legal and economic environment in which the Company will operate in the future. Accordingly, actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements and future results could materially differ from historical performance. Further information regarding these and other risks is included in the Company’s filings with the SEC. The Company undertakes no obligation to update or revise these forward-looking statements for events or circumstances that occur subsequent to the date of this presentation. Nothing herein constitutes an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in any jurisdiction or any inducement to enter into investment activity, or may form the basis of or be relied on in connection with any contract or commitment whatsoever. This presentation contains certain financial measures that are not recognized under generally accepted accounting principles in the United States (“GAAP”), such as “Non -GAAP Net Loss/Profit” , “Non -GAAP Net Loss/Profit Margin”, “EBITDA”, “ EBITDA Margin”, “ Adjusted EBITDA”, “Adjusted EBITDA Margin”, “Adjusted Total Operating Expenses”, “Adjusted Selling Expenses”, “Adjusted General and Administrative Expenses” and “Adjusted Research and Development Expenses” . Such non-GAAP financial measures have limitations as analytical tools. The presentation of such non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. These non-GAAP measures may differ from the non-GAAP information used by other companies and therefore their comparability may be limited. 2

2Q 2019 Results Review

nd Quarter 2 nd rter 2019 9 financial ancial highl ghligh ghts ts Strong revenue growth; solid gross profit, adjusted EBITDA, and non-GAAP net income improvement; compared with 2 nd Quarter 2018: re + was RMB8.0 billion, a YoY increase of 34.8%  Revenue ue was RMB8.8 billion, a YoY increase of 30.5%, revenue ue ex-Sto tore – Revenue ue from Express ss was RMB5.4 billion, a YoY increase of 30.4% – Revenue ue from Freigh ght t was RMB1.3 billion, a YoY increase of 26.8% – Revenue ue from SCM was RMB598.7 million, a YoY increase of 20.1% ue from Store + was RMB790.6 million, a YoY decrease of 1.0% – Revenue – Revenue ue from Others s was RMB646.7 million, a YoY increase of 183.1%  Gross s profit was RMB520.1 million, a YoY increase of 24.5%, gross profit t margin was 5.9%, a YoY decrease of 0.3 percentage points; gross profit t ex ex- Store + was RMB437.0 million, a YoY increase of 23.5%, gross profit ore + was 5.5%, a decrease by 0.5 percentage points YoY t margin ex ex-St Stor  Adjuste sted EBITDA A was RMB148.2 million, representing a YoY improvement of RMB106.6 million, adjuste ted EBITDA DA margin n was 1.7%, a YoY increase of ore + was RMB247.2 million, adjust ore + was 3.1% 1.1 percentage points; adjuste ted EBITDA A ex-Stor sted ed EBITDA DA margin ex-Stor ore + was RMB107.0  Non-GA GAAP net income me was RMB6.5 million, representing a YoY improvement of RMB62.0 million; n non-GA GAAP P net income me ex-St Stor million  Net cash generat ated ed from operating ng activities vities was RMB334.2 million; CAPEX EX was RMB380.9 million 4 Notes: All numbers presented have been rounded to the nearest integer, tenth, or hundredth and may not add up. Year over year comparisons are based on figures before rounding.

nd Quarter 2 nd rter 2019 bu busi siness ess highlights hlights Continued the strong momentum from 1Q, focused on market share gain, investing in networks and services, accelerating technology adoption, improving operating efficiency and productivity, and enhancing customer experience  Express ss parcels delivered reached 1.91 billion, a YoY increase of 49.0%, 1.72x market growth; market share increased to 12.2% from 10.5% YoY; continued to reduce unit costs and expenses significantly, cost per parcel reduced by 11.6% YoY to RMB2.73, highlighted by reductions in transportation and labor costs  Freight ht volume delivered reached 1.73 million tonnes, a YoY increase of 26.6%; gross margin improved by 1.2 percentage points YoY to 6.4%; continued to expand last-mile coverage by adding 6,171 service stations YoY to 17,380 as of June 30, 2019  SCM number of orders fulfilled reached 86.7 million, a YoY increase of 41.7%; managed 370 Cloud OFCs, over 2.8 million square meters of warehouses as of June 30, 2019, gross margin improved by 1.1 percentage points YoY to 8.7%  Store + number of branded stores reached 3,106 as of June 30, 2019, a YoY increase of 315.2%; number of membership stores exceeded 438,000 as of June 30, 2019, a YoY increase of 10.3%; gross margin improved by 2.5 percentage points YoY to 10.5%  UCargo number of transactions reached over 114,000, a YoY increase of 19.4%, revenue generated from external customers reached RMB521.8 million, accounting for 5.9% of the Company’s total revenue  Global continued to expand nationwide express and fulfilment operation in Thailand; readied to launch nationwide express operations in Vietnam  Capital provided cumulative total financing solutions to 9,465 trucks as of June 30, 2019, a YoY increase of 84.6% 5 Notes: All numbers presented have been rounded to the nearest integer, tenth, or hundredth and may not add up. Year over year comparisons are based on figures before rounding.

Str trong ong to top-line ine gro rowth th and d pr profit it impr prove ovemen ent Strong track record of top-line growth across segments; in the second quarter revenue grew 30.5% YoY, gross profit grew 24.5% YoY, gross profit increased by RMB102.4 million Revenue Gross Profit/(Loss) RMB mm RMB mm 73.8 .8% 39.9 .9% 30.5 .5% 196.8 6.8% 24.5 4.5% 2014-2018 Revenue CAGR FY 2017 – FY 2018 YoY 2Q18 – 2Q19 YoY FY 2017 – FY 2018 YoY 2Q18 – 2Q19 YoY 1,441 5.9% 6.2% 27,961 520 520 486 486 418 418 5.2% 2.4% 19,990 (375) (534) (532) (6.0%) 8,844 8,788 6,732 5,256 (10.2%) 3,066 (12.2%) 1 1 2014 2015 2016 2017 2018 2Q2018 2Q2019 2014 2015 2016 2017 2018 2Q2018 2Q2019 Gross Profit/(Loss) Gross Profit/(Loss) Margin % Notes: All numbers presented have been rounded to the nearest integer, tenth, or hundredth and may not add up. Year over year comparisons are based on figures before rounding. 6 1. Starting in 2017, the Company revised its arrangements with franchisees and the scope of its service. As a result, the Company became the principal that is directly responsible for last-mile delivery of all parcels and freight processed through its network, and the Company is liable to senders for damage to or loss of parcels and freight in connection with last-miledelivery.Therefore, in consideration of such expanded scope of services and increased responsibilities,the Company included the last-miledelivery service fee in its revenue.