ZTO Express Cayman : The Presentation - English (7.1 MB)

1Q 2023 INVESTOR PRESENTATION

May 2023

Safe Harbor Statement and Disclaimer

This presentation contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and other similar expressions. Among other things, the business outlook and quotations from management in this presentation contain forward-looking statements. ZTO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC") and The Stock Exchange of Hong Kong Limited (the "HKEX"), in its interim and annual report to shareholders, in announcements, circulars or other publications made on the website of the HKEX, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including but not limited to statements about ZTO's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: risks relating to the development of the e-commerce and express delivery industries in China; its significant reliance on certain third-partye-commerce platforms; risks associated with its network partners and their employees and personnel; intense competition which could adversely affect the Company's results of operations and market share; any service disruption of the Company's sorting hubs or the outlets operated by its network partners or its technology system; ZTO's ability to build its brand and withstand negative publicity, or other favorable government policies. Further information regarding these and other risks is included in ZTO's filings with the SEC and the HKEX.

All information provided in this presentation is as of the date of this presentation, and ZTO does not undertake any obligation to update any forward-looking statement, except as required under applicable 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
ESG Practices	22
03 OUR STRATEGIES	27

04 FINANCIAL OVERVIEW	32
Strong Unit Economics	33
Robust Parcel Volume and Revenue Growth	34
Strong Profitability and Margins	35
Continuous Cost Efficiencies and Productivity Gains	36
Strong Operating Cash Flow Supports Continued Investment in Growth	37
Reconciliation of GAAP to Adjusted / Non-GAAP Measures	38
	2

COMPANY OVERVIEW

01

Leading Express Delivery Company in China

6.3bn Parcels1	23.4 % Market Share2
#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

～90,000

Last-Mile Posts

97 Sorting Hubs5

454 Automation Lines

Source: Public filings. Data as of 1Q23 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

1. In terms of parcel volume calculated based on data from State Post Bureau
2. Includes about 11,000 self-owned vehicles with approximately 9,500 high capacity 15-17 meter trailer trucks
3. Line-haulroutes between sorting hubs only
4. Includes 88 self-operated sorting hubs, and 9 sorting hubs operated by our network partners
5. ZTO, YUNDA, YTO and STO are commonly known as Tongdas

～3,800 Line-haul Routes4

Indicates #1 in Industry

4