#1▲中通快递 ZTO EXPRESS 3Q 2023 INVESTOR PRESENTATION Nov 2023 695311www.zto.com 中通快递 ZTO EXPRESS#2Safe Harbor Statement and Disclaimer " " Z 中通快递 ZTO ZTO EXPRESS 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-party e-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. !!!!!!!!#3Index Z中通快递 ZTO EXPRESS 01 02 02 COMPANY OVERVIEW Leading Express Delivery Company in China Our Business: Past and Present Our Distinct Network Partner Business Model ("NPM") Our Core Competitive Advantages OUR CORE COMPETITIVE ADVANTAGES Significant Market Growth Opportunities Distinct Partner Network Built Upon a "Shared-Success" Philosophy Superior Scale & Reach Best-in-Class Operational Capabilities and Cost Efficiencies Enabled by Technology Experienced Leadership & Sound Execution Consistent Achievements in Strategic Focus Adjacent Expansion Beyond Express Delivery ESG Practices 03 OUR STRATEGIES 04 FINANCIAL OVERVIEW 04 Strong Unit Economics Robust Parcel Volume and Revenue Growth Strong Profitability and Margins Continuous Cost Efficiencies and Productivity Gains Strong Operating Cash Flow Supports Continued Investment in Growth Reconciliation of GAAP to Adjusted / Non-GAAP Measures 3 4 569 11 12 13 14 16 19 20 21 22 22 27 32 33 34 35 36 37 38 2#4ZTO ZTOR悫终递 ZTO: Z 中通快递 ZTO EXPRESS ZTO: ZTO COMPANY OVERVIEW 01 PRESS 中國快園 ZTO EXPRESS#5Leading Express Delivery Company in China ~ 31,000 Pickup / Delivery Outlets ~ 6,000 Direct Network Partners Z中通快递 ZTO EXPRESS 7.5bn Parcels¹ 22.4% Market Share² #1 #1 >99% County-Level Cities Covered Z中通快递 ZTO EXPRESS • Top ranking consumer satisfaction among "Tongdas ji"6 since 2014 # 1 market share by parcel volume in China's express delivery industry since 2016 The most profitable among "Tongdas it" ~ 110,000 Last-Mile Posts ~ 10,000 Line-haul Vehicles³ III 00 ~ 3,800 Line-haul Routes4 97 Sorting Hubs5 482 Automation Lines Indicates #1 in Industry Source: Public filings. Data as of 3Q23 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 2. In terms of parcel volume calculated based on data from State Post Bureau 3. Includes about 10,000 self-owned vehicles with approximately 9,300 high capacity 15-17 meter trailer trucks 4. Line-haul routes between sorting hubs only 5. Includes 88 self-operated sorting hubs, and 9 sorting hubs operated by our network partners 6. ZTO, YUNDA, YTO and STO are commonly known as Tongdas#6Our Business: Past and Present Past: Following the Lead • First line-haul to truck across provinces in 2005 • PRC Postal Law (Revised in (2009) 新邮政法 legalized express delivery companies to operate alongside Postal Services Shanghai Zhongtongji Express commenced operations Acquired an additional 16 network partners to form a centrally managed nationwide network 1st generation automated sorting equipment jointly developed with Chinese Academy of Sciences Present: Pursuing and Surpassing 調 Certified as a National High and New Technology Enterprise高新技术企业 Achieved 90% digital waybill adoption • Founded in May 2002, being the youngest of I Tongdas ה I First to effectively implement "paid delivery" and prepayment-settlement practice with proprietary system Early adoption of E-Waybill Acquired 8 regional network partners' businesses I . . Z中通快递 ZTO EXPRESS Included in the MSCI Global Standard Index . Certified as a National Key Software Enterprise Completed secondary listing on HKEX 980 990 Completed US $1 billion convertible senior notes offering Became No.1 in China by parcel volume NYSE listed in 2016, first among Tongdas to become publicly listed abroad $ Alibaba led US$1.38bn strategic equity investment • Early mover on last-mile post Invested in Cainiao Post 50% 2011-2022 CAGR 2002 2005 2008 2009 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total Parcel 0.3bn 0.5bn 1.1bn 1.8bn 3.0bn 4.5bn 6.2bn 8.5bn (12.1bn (17.0bn) (22.3bn (24.4bn Volume Incremental Parcel Volume¹ 0.2bn 0.6bn 0.7bn 1.1bn 1.6bn 1.7bn 2.3bn 3.6bn 4.9bn 5.3bn 2.1bn Market Share 7.6% 9.3% 11.6% 13.0% 14.3% 14.4% 15.5% 16.8% 19.1% 20.4% 20.6% 22.1% Note: 1. Numbers may not add up due to rounding 10 5#7Our Distinct Network Partner Business Model ("NPM") Payment to Pickup Network Partner ° • Full express service fee Network Partners Last-Mile Post and Lockbox M Senders Payment to ZTO Express Line-haul transit fee • ⚫ Waybill fee • Last-mile delivery fee Payment to Delivery Network Partner • Last-mile delivery fee Z 中通快递 ZTO EXPRESS Z 中通快递 ZTO EXPRESS Fund flow Parcel flow Fee in blue ZTO revenues Network Partners Last-Mile Post and Lockbox 00 Pickup Outlets Sorting Hubs 00 Line-haul Transportation Sorting Hubs Delivery Outlets Core Express Delivery Network First-Mile Pickup Key Advantages of a Network Partner Model ("NPM") i-i Recipients Last-Mile Delivery NPM Gaining Share in Express Delivery Market (Market share by parcel volume) Network Scalability Rapid geographic coverage expansion Flexibility ✓ Localized decision-making 34% Capital Efficiency ✓ Lower costs for first/last-mile buildout Our NPM: "Best of Both Worlds" 24% "Shared-success" philosophy • Build cohesiveness, align interests, share risks, assure rewards Milestone event: converting major network partners into shareholders Centralized proprietary IT Infrastructure and well-integrated peripherals • Technology backbone for effective end-to-end collaboration with network partners "Best of both worlds": NPM organization yet vertically managed through digitalization 76% 66% 2011 ■ Network Partner Model Sources: iResearch, public filings Note: 2022 Direct Model 1 1. Include SF, EMS, China Post, JD, and other express delivery companies that use direct model. Some express delivery companies' market share based on assumptions 6 CO !!!!!!!!#8Our Core Competitive Advantages ZTO 中通快递 ZTO EXPRESS 8 Our "shared-success" philosophy, our focus on profitability and our disciplined investment approach greatly contributed to our distinct leadership in the industry and cannot be easily replicated Sustainability throug ESG practices tinuous 1 Significant market growth opportunities 2 Distinct partner network built upon a "shared-success" philosophy To bring happiness to more people through our services Mission Z 中通快递 ZTO EXPRESS Superior scale & reach 3 Best-in-class operati capabilities and cost efficie ebled by technology Adjacent expansion eyond express delivery 7 "Shared-success" 同建共享 Values Innovation and entrepreneurship 创新和企业家精神 Consistent achievements in strategic focus 6 Trust and accountability 信任责任 Experienced leadership & sound execution 5 7#9ናና Next-generation hybrid drones improving accessibility while reducing logistics costs and delivery time " 10 7405#10“ Self-driving vehicles optimizing the efficiency of last-mile delivery " JAC 入畫中通快递 ZTO EXPRESS JAC ZIO 用我们的产品 造就更多人的幸福 Bring Happiness to More Pergi through Our Services#11GE 7011 Real-time data monitoring and analytics powering operational excellence " 69,211 1101 2106 55 ZON 双十一快递数据大屏 RONUNG SHARE ANDA MWARE 69.211 X/244 实时业务量 210,938,980 142 9999.99 0775+ 22P 21,588 381275 21,588 438.99% + 215.88% + WISH SOM 81.79% 4.上海 21,588 215.88% +> 5.32 21,588 215.80% + 9999.99 9999.99 9999.99 9999.99 9999.99 TL01-至今累计订单 預置业务量 586,655,157 2.02 Iz 6 DM 21,588 215.80%-> 10-5 N 10-9 N THE 231 175-49331 79-49-291 7 20 21,588 215.88% ↑ о 8 A 21,588 215.86% -> TAMIN 542% 0295 ION B 1/790 54 <-801 BRANE 责任申通 HITAKER 191 1 198 STARE 21,588 60,872,194 60,872,194 80872.194 2129 21,588 318 21,588 4-800 21,588 2.9 2008 12 01 801305A 532 21,500 2.8 605 21,588 2.6 7 BR 21,588 23 8 7H 21,588 2.4 20 EXT FAY 中通头条 St&t 95 St Of Pct. 30.99% 2021-09-13 09:38:02 MORNING (797) Ano 109 26236 ANTILL MWAXE 1228 999.99 2 640 7 MMA B AM 21,588 3 AMD 21,588 44 21,588 S. P.M. 21,588 6 R.M 21,589 21,588 21,588 0.77% + 999.99 999.99% † O 215.88% -> о 215.88% + 0 215.88% + o 215.30%-> о 215.38% +> 215.40%-> 0 O 2018 63.372.794 60.872.194 60,872,194 24.34% 2828 111 IFEINS 5 18 521 4001 KANZU MARK D 1,142,866 1,142,866 9.9 50872.19 9.9 3 RINDO 4FE81796 262,866 9.9 108,566 99 WOR (2021-11-11 01:53:22】巴高淖尔完成11.11大促的第一票揽收,收单号73157092381295. T 86455 157 603.721 60,8721 17 19 2.392 1920#12HWW Z 中通快递 ZTO EXPRESS OUR CORE COMPETITIVE ADVANTAGES 02#131 Significant Market Growth Opportunities Z中通快递 ZTO EXPRESS Market Opportunities High Internet and Digital Commerce Penetration 1,079mm Internet users in China as of Jun 2023 884mm Online shoppers in China as of Jun 2023 ☑NEW E-commerce formats Increasing Demand for Diversified Services Express Delivery Industry Stable Volume Growth with More Sustainable Pricing Level • • Stable and Healthy Volume Growth 40bn+ incremental parcel volume from 2021 to 2025 Continued economic growth with higher e-commerce penetration More Sustainable Pricing Level Shift focus towards quality and differentiated products and services Constructive regulatory environment that supports sensible competition and curtails below-cost pricing¹ Express Delivery Market in China Becoming More Consolidated (Market share by parcel volume) Cross-border Opportunities Agriculture & Rural Demand 28.6% 7.6% 13.7% 22.1% 8.2% 10.0% 2011 2022 17.4% 15.3% 10.8% 15.9% Time-definite Products 2B Supply Chain Management 2.5% 20.4% 11.7% 15.8% CR6 = 71.4% CR6 = 86.3% ■ ZTO ■YUNDA - ΥΤΟ ■ STO BEST 2 ■ J&T ■ SF ■ Others Tongdas Sources: ¡Research, National Bureau of Statistics of China, State Post Bureau of China, CNNIC, Ministry of Commerce of the People's Republic of China, public filings Notes: 1. On Jan 7th 2022, State Post Bureau announced Measures for the Administration of Express Delivery Market (Draft) 2. BEST sold its express delivery business in China to J&T in 4Q2021. 12#142. Distinct Partner Network Built Upon a "Shared-Success" Philosophy ZO 中通快递 Our "shared-success" philosophy inspired us to enhance and transform the network partner model, and has underpinned our success Fee Sharing Mechanism Before 2008: Last-mile delivery is free of charge Outlets earn revenue only on pick-up • Outlets with higher delivery volumes relative to pickup volumes (e.g. due to geographic disparity, uneven nature of economic development) are less profitable or loss making Negatively impacted outlets' service quality and network stability Successfully Convert Major Network Partners to Shareholders ZTO founded in 2002 Acquired 8 regional network partners 2014 2013 Consolidated Shanghai Zhongtongji Express and certain network partners to form ZTO Express 2015 Acquired an additional 16 network partners to form a centrally-managed nationwide network Chairman Lai currently holds 25.9%1 After 2008: ZTO introduced delivery service fee sharing mechanism Pickup outlets pay last-mile outlets for delivery based on pre-set formulae Sharing mechanism facilitated by implementation of our proprietary operating system • Today, the fee sharing mechanism continues to serve as a balancing function across our network Major network partners became shareholders of ZTO and united under a common goal Share-swap transactions fairly priced and with transparency ⚫ The reorganization aligned interests, built trust and forged loyalty, and laid the foundation for network stability Note: 1. Data as of Sep 30, 2023 13 !!!!!!!!#153 Superior Scale & Reach Largest Express Delivery Company in China Our leading network has been built through time, investments and innovations - such scale and capabilities cannot be built overnight with 22.4% market share¹ & Globally2 110,000 Last-Mile Posts 94% 99% Village- Level City County- Level City 97 Coverage Coverage Sorting Hubs4 81mm 31,000 Daily Parcel Volume³ Service Outlets Loyal, Customer- Centric & Results- Driven People 23,000+ Employees ZTO 中通快递 ZTO EXPRESS Largest5 Self-Operated Modern Facilities Space6 of 7.0mm m² & Self-Owned Line-Haul Fleet of 10,000 ZTO Trusted Partner to Customers, Merchants & E-Commerce Platforms Stable Partner Network 5% churn Source: public filings, ZTO official websites media coverage Notes: Data as of 3Q23 unless otherwise indicated Data quoted are approximate and not precise 1. In terms of parcel volume for 3Q23 calculated based on data from State Post Bureau 2. According to iResearch in terms of parcel volume 3. Daily volume calculated by 3Q23 parcel volume divided by 92 days 4. 88 self-operated sorting hubs and 9 network partner-operated sorting hubs 5. According to iResearch Self-operated sorting hub Network/partner-operated sorting hub Line haul routes for illustrative Purpose only 6. Land area for self-operated sorting hubs including self-owned land and leased from third-parties 7. Delayering refers to reducing the number of stops a package must be aggregated and segregated across the transit network "De-layering?" Strategy Average Number of Parcel Transit Times Has Been Decreasing 14 88888881#163 Superior Scale & Reach (Cont'd) Our Multi-Functional Last-Mile Posts Self Pick-Up and Drop-Off Delivering and Receiving Packages Customer Service Process Packages for Storage Retail Space Store Couriers for Fees 心 Note: 2-A E-S Z中通快递 ZTO EXPRESS Strategic Importance of Last-Mile Presence Solution to increasing delivery cost due to volume surge Alternative to door-to-door pickup and delivery Competitive Financing Support Operating Software ◉ 量 91 Mobile Merchandise Applications Sourcing We support our network partners in multiple ways to invest early and secure last-mile physical presence Early-Mover in establishing last-mile posts in strategic locations with customer access Retail Training Largest Service Provider among logistic players in China Enhance customer reach and connectivity "Express+" opportunities to create additional income ~110,000 posts as of 3Q2023 Covering All provinces¹ and ~300 cities Maintain and improve network profitability and stability 1. Not including Hong Kong, Macau and Taiwan 15#174 Best-in-Class Operational Capabilities and Cost Efficiencies Enabled ZTO by Technology Cost leadership with high operational efficiencies driven by continuous innovations 中通快递 ZTO EXPRESS Line-Haul Transportation TOP ZIO • Largest self-owned line-haul fleet of 10,000 vehicles among Tongdas Systematic upgrade with high-capacity trailers Data-driven route planning and safety monitoring . Patented curved trailer with higher load capacity and improved fuel economy Note: RFID-equipped tires to allow real-time monitoring of operating conditions and schedule needed maintenance DECREASING COST PER PARCEL (RMB) 0.77 0.68 0.62 0.39 1 0.51 0.52 0.51 0.38 0.34 0.31 0.30 0.32 2017 2018 2019 2020 2021 2022 --Transportation Cost 100 -Sorting Cost 1. Transportation cost per parcel in 2020 affected by national toll road fee waiver policy and lower domestic diesel price Sorting Technologies . 482 automated sorting lines in service as of 3Q23 . Joint collaborations with Chinese Academy of Sciences to develop several generations of automated sorting technologies (e.g. cross-belt sorting equipment, line shaft diverter, dynamic weighting machines) ZTO 中通快递双十一敏据音板 15.48.27.0 2019 21,040,763 7.919.063 35,834,839 30.29% APTURA Developed and continuously re-engineered sophisticated software to support high-speed sorting (e.g. data-enabled algorithm, real-time analytics and recalibration) 16 11111111#18• ZTO 4 Best-in-Class Operational Capabilities and Cost Efficiencies Enabled Z by Technology (Cont'd) Our culture of innovation and technological focus will continue to drive value creation going forward Digital and Innovative Culture INDUSTRY LEADING PROFITS Establish data-driven and value-add operational management framework; digitize business know-how and make processes calculable "Problem-solving" to "Problem Prevention" www- Strong In-house R&D Capabilities Net Profit Market Share¹ ~80% ~80% ~60%2 ~50% 2019 2020 2021 2022 . Certified as "High and New Technology Enterprise" since 2017 with significant tax benefits • ~1,400 tech talents • 260 software copyrights • 684 trademarks • 192 patents Achieved ~60% net profit share among Tongdas in 2022 with ~35% parcel volume share 中通快递 ZTO EXPRESS Continuous Breakthrough in Autonomous Technology Next-generation automation with faster throughput and smarter, more precise dispatch Testing unmanned vehicles, self-driving cars, hybrid drones ZIO Data Analytics Capabilities Collect vast volume of data from all aspects of operation Analyze with Al and deep learning Achieve optimal performance with data learning • Optimize routing planning based on data insights Source: public filings Notes: Data as of 3Q23 unless otherwise indicated 1. According to public filings. Net profit for ZTO and BEST represent adjusted net income; otherwise, represent net profit after deducting nonrecurring profit or loss attributable to shareholders of the parent company 2. BEST sold its express delivery business in China to J&T in 4Q2021. 17#194 Best-in-Class Operational Capabilities and Cost Efficiencies Enabled ZTO by Technology (Cont'd) ZTOPIDAE Cold Chain “冷链” Provide varied yet integrated logistic services by implementing more efficient time-space operational design at Smart Logistic Parks ZTOCWST Maintenance Station “维保站” 中通云仓科技 Cloud Warehousing “云仓” Integrated Logistics 中通快递 ZTO EXPRESS Offer comprehensive one-stop services Address the demand of diversified 2B customers Optimize resources utilization Less-than-Truckload “快运” ZIO TO FREIGHT 中通快运 Express Delivery “快递” ZOTTO EXPRESS 中通快递 Warehouse-Delivery Enable zero-distance pickup for new e- commerce formats Extend order placement hours Cross-sell other logistics services (express delivery, cold chain, LTL, and more) ZTO Smart Logistics Parks Completed Under Construction Enabling Technology Adopt customized equipment: automated sorting lines, self-driving vehicles, solar energy Standardize operations through process digitization Optimize routing planning based on data insights 18 !!!!!!!!#205 Experienced Leadership & Sound Execution Meisong Lai Stable and Entrepreneurial Management Team with Deep Industry Knowledge & Experience Founder, Chairman & Chief Executive Officer 21 years of experience in express delivery industry Deputy chairman of the China Express Delivery Association Jilei Wang. Z中通快递 ZTO EXPRESS Director and Vice President of Infrastructure Management 16 years of experience in express delivery industry Former deputy general manager of ZTO's network partner in Beijing Hongqun Hu Director and Chief Operating Officer 31 years of experience in financial services industry Former chairman of Zhejiang Tonglu Rural Commercial Bank Vice President of Overseas Operation Over 21 years of managerial experience in logistics and 9 years of experience in overseas operation • Former manager of ZTO Network Partner Jianchang Lai Performance Metrics Results-oriented KPIs Process-driven OKRS Sources: public filings and media coverage Huiping Yan. Jingxi Zhu Chief Financial Officer Over 31 years of experience in corporate and financial management 11 years at GE in US and Asia, 8 years in public accounting and tax consulting VP of Information Technology and Digital Operation Over 20 years of experience in logistics technology management Sound Execution Driven by Clear Accountability & Fair Measurement of Performance Advancements & Eliminations Emphasis on internal promotion Fair competition with true talents Incentive Programs Equitable incentives to reward performance Talent Development ZTO Academy and fast-track On-the-job training Mentorship 19#216 Consistent Achievements in Strategic Focus ZTO 中通快递 ZTO EXPRESS We have simultaneously maintained our superior service quality, grown our market share, and sustained our profitability Superior Service Quality (%) Expanding Market Share Market Share Sustained Profitability (RMB mm) Income from Operations 1.5% 22% 0.2% 18% 1.3% 22.1% 25% 2.3% 7,736 19% Leading Position 20.4% 20.6% 5,463 5,503 4,754 19.1% of customer satisfaction (2014 -2023Q3) amongst Tongdas¹ 2019 2020 2021 2022 2019 2020 % Increase in Market Share 2021 Operating Income Margin % 2022 Parcel Volume Non-GAAP Adjusted Net Income² (Parcel volume in mm) 40% <1 31% 22,289 9% 24,389 (RMB mm) per million 42% Monthly average effective complaint rate 1 in three consecutive years 17,003 12,121 19% 18% 16% 24% 6,806 5,292 4,590 4,947 2019 2020 2019 2020 2021 2022 YoY Growth % 2021 2022 Non-GAAP Adjusted Net Income Margin % Sources: 1. According to State Post Bureau 2. Adjusted net income is defined as net income before (i) share-based compensation expense, (ii) gain on disposal of equity investees, (iii) impairment of equity investments and (iv) unrealized gain from investment in equity investee 20#227 Adjacent Expansion Beyond Express Delivery Systemically develop an ecosystem with diversified product and services leveraging core express infrastructure and ability to access and consolidate resources International/Cross-Border (Since 2014) Diversified products: freight forwarding, dedicated routes, centralized shipping, international express delivery, overseas warehousing, etc. International express delivery service coverage in Southeast Asia and Africa "Belt and road" initiatives and RCEP ZTO:+ Network Strong Infrastructure 中通星联 Scale & Reach Less-than-Truckload (Since 2016) . Focus on heavy cargo Average daily volume ranking top 5 among competitors in 2022 98% County/township-level coverage in China 20k service outlets Warehouse Delivery (Since 2018) • Diversified products including B2C, B2B, 中通快运 ZOTO FREIGHT cross-border and temperature-controlled warehousing Self or franchisee-operated warehousing totalling 2mm m² in area Integrated warehousing, processing and delivery fulfillment Technology Capability Z中通快递 ZTO EXPRESS ZOCWST W 中通云仓科技 Finance ZTOPEER ZTO FINANCE Sources: Yunlian Research, public filings, ZTO official website Note: data quoted are approximate and not precise 1. Not including Hong Kong, Macau and Taiwan Digital k 中快传媒 Marketing N ZHONGKUAL MEDIA ZTO 中通快递 ZTO EXPRESS ZrO Cold Chain/Air Freight (Since 2020) COLD CHAIN ZTO STAR UNION Cold Chain: existing network coverage across 300 cities Air Freight: collaboration with 30 airports 4 免喜 TUXI Last-Mile Posts (Since 2018) • • 110k last-mile posts Covering all provinces¹ and ~300 cities in China Standardized last-mile service posts with commercial and community services Established strategic foothold for enhanced end- to-end linkage Fleet Maintenance Stations Eco friendly Packaging 21 11111111#238 ESG Practices-Firmly Commit to "Dual Carbon Reduction" Climate Change & Clean Energy Response Reduction in greenhouse gas emission intensity (kg of CO2/RMB10,000) Reduction in energy consumption intensity (ton of standard coal equivalent/RMB10,000) ZTO 547 531 -15% 449 0.224 中通快递绿色发展蓝皮书 -16% 0.215 0.181 2020 2021 2022 2020 2021 2022 YoY Growth ZTO 中通快递 ZTO EXPRESS The Company prepared contingency plans for potential climate change risks through climate risk identification and policy analysis, and released the ZTO Express Blue Book on Green Development to share green development experience and best practices with the express delivery industry PV facilities are gradually installed at the sorting hubs Renewable energy generation in 2022 was 30,000 MWh, increased by 500% yoy • Low Carbon Delivery & Green Packaging Pick-up . Promoting green Sortation packaging and green pick- up vehicles to reduce carbon emissions Using digital technology to improve pick-up efficiency • Applying intelligent . Using new energy vehicles, high- capacity trailer trucks Optimizing routes and schedules, and improving loading rate Promoting the application and promotion of hydrogen-fueled trucks sorting equipment to Transportation reduce the proportion of damaged parcels and save consumables Photovoltaic facilities are gradually installed at the sorting hubs Delivery • CO₂ Further increasing the green fleet and introduce drones in remote areas • Increasing the placement of self-pickup equipment In 2022 Green recyclable transfer bags cumulatively used: 32.25 million increased 74% Slim tape procurement rate 100% E-way bills utilization rate 100% "Recycling Program"- Cumulative investment in green recycling devices: 25,000+, an increase of 1,000+ compared to last year 绿色寄递 从我做起 A Note: 1. ESG data for FY2022; for detailed ESG reports, please refer to: https://zto.investorroom.com/ESG 22 22 !!!!!!!!#248 ESG Practices-Achieving High Quality and Sustainable Development 中通快递 ZOTTO ZTO EXPRESS |||| Social Responsibility Product and Service Innovation Corporate Governance Customer Privacy Protection Continuously improving information and data management to ensure the security of information and data. Privacy waybills utilization rate achieved 50%, increased by ~5 times: Cyber Security Certified by the Information Security System: ISO 27001 ISO 27701 GB/T 22080 65 Patents 19 Software Copyrights 139 Trademarks The optimization of courier tools has resulted in a 20% efficiency improvement during the pick-up and delivery operations, a 30% increase in business support efficiency, and a 50% increase in fulfillment control efficiency. Intelligent robot omnichannel coverage of business scenarios: 300+ ESG Governance Decision-making ESG Committee of the Board of Directors: Supervise and manage ESG strategy, formulate policies Organization ESG Working Group: Coordinate and promote the implementation of ESG work Relevant Functional Departments: Implementation Implementation of ESG-related policies and objectives Materiality issues Materiality issues identified in 2022: 21 Shared Success Pay greater attention to enhance employees' sense of belonging and well Employee welfare activities Employee training sessions Enhance network capacity and reinforce the service advantages of the network through technology and training empowerment. being by valuing their growth and development. 672 334 你潮活了吗? 2022 保险,小哥免费! Have funded for couriers' Accidental Group Insurance for 3 consecutive years 6,624 suppliers being screened and assessed by green environmental protection, quality management, business ethics, labor rights and other ESG related elements to promote ESG management. Actively participated in charitable events such as student aid, community assistance, and pandemic and disasters support. Risk Prevention and Control Conducted various forms of integrity awareness campaigns targeting at directors, employees, outsourced personnel and contractors. There were no major violations or disputes regarding business ethics and anti- corruption in 2022. The risk management work has been upgraded to a new level by constantly strengthening risk prevention, in- process supervision and subsequent recap. Compliance and Integrity Note: 1. ESG data for FY2022; for detailed ESG reports, please refer to: https://zto.investorroom.com/ESG 23 !!!!!!!!#25"G Accelerating the transition towards green and low-carbon transportation 优鲜送 "#26"G Adoption of solar energy in transit centers " ZOEXPRESS |中通快递 HI H CHI ZTO#27"E 申通快递 ZTO EXPRESS G 金象 OZWE323 ●川Z WE323- Enhancing life quality and supporting common prosperity " 創 Theans NOM 中通快 TOE 11084 精品黄桃 NUTRITIOUS FRUIT GREEN BE ZTO#28时代 Pres ZIO PRO ZO ZTO E 香满中华通 Z中通快递 ZTO EXPRESS OUR STRATEGIES 03#29Our Strategies III ZTO 中通快递 ZTO EXPRESS To achieve continuous market share expansion and profit targets while maintaining high quality of service and customer satisfaction Enhance the scale and capability of logistics operations Invest in the logistics ecosystem to integrate resources in logistics value chain Expand last-mile presence and consolidate strategic resources Further develop each key logistics segments (LTL, cloud warehousing, international, cold-chain, last-mile) and integrate support functions such as financing Z 中通快递 ZON 53 ZTO EXPRESS 中道星联 ZTO: PEN ZTOK Add and upgrade facilities with more efficient layout, automation and digitized process management Purchase and upgrade of self-owned and operated fleet driving further efficiency Further "green" initiatives by introducing clean-energy transportation capacity ZO Test and implement differentiated product and services to meet diversifying customer demand Establish brand-level coordinated planning to improve integration & collaboration and maximize resource utilization Build information & technology platform to enable cross-selling, information sharing, and management know-how 28#3066 大涼山 來自营店需 www 大涼山 Promoting rural revitalization Wmy and serving the rural market "#31LIFE TO EXPRESS ZTOargas ZTO EXPRESS ប្រើសេវាកម្មរបស់យើងនឹងបង្កើតស្វគមង្គលកាន់តចើន Bring Happiness to More People through Our Services www TO EXPRESS ISUZU 3E-4915 ZTOREIZ AL FUTERAN NOV ZTO EXPRESS 066666088 http://kh.zto.com Towards a top-tier global integrated logistics service provider THER "#3266 免喜生活 LIVING SERVICE CENT 盛大 今日优惠 2762 WILL Last-mile posts enhancing customer reach and network efficiency " 开 冰淇 快乐传惠 ASWISS DEE#337TO PR ZO Z 中通快递 STREOVER 中國 ZOTOPES 中通快递 Z中通快递 ZTO EXPRESS FINANCIAL OVERVIEW 04 ZO 中國休 O#34Strong Unit Economics (RMB/Unit) Non-GAAP Operating Profit 0.37 0.32 0.32 0.34 0.35 0.37 0.32 0.24 0.25 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Non-GAAP Adjusted Net Income¹ 0.32 0.33 0.28 0.29 0.28 0.30 0.31 0.20 0.20 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Non-GAAP Adjusted EBITDA² 0.47 0.47 0.52 0.50 0.51 0.46 0.43 0.38 0.35 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 II I ZTO 中通快递 ZTO EXPRESS ASP³ 1.39 1.45 1.46 1.34 1.36 1.40 1.24 1.24 1.17 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Unit Cost of Revenue³ 1.05 1.14 0.97 0.98 1.04 1.00 0.99 0.81 0.82 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Total Opex4 0.06 0.06 0.05 0.05 0.04 0.04 0.04 0.04 0.03 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Notes: 1. Adjusted net income is defined as net income before (i) share-based compensation expense, (ii) gain on disposal of equity investees, (iii) impairment of equity investments and (iv) unrealized gain from investment in equity investee 2. Adjusted EBITDA is defined as net income before depreciation, amortization, interest expenses and income tax expenses, and further adjusted to exclude (i) shared-based compensation expense, (ii) gain on disposal of equity investees, (iii) impairment of equity investments and (iv) unrealized gain from investment in equity investee 3. Excluding freight forwarding business 4. Including other operating income and excluding SBC 33 !!!!!!!!#35Robust Parcel Volume and Revenue Growth (Parcel volume in millions) 17,003 31% YOY Growth Parcel Volume 9% YOY Growth 22,289 2020 (Parcel volume in millions) 2021 Quarterly Parcel Volume 24,389 2022 (RMB million) (RMB million) 25,214 21% YoY Growth Total Revenue 16% YoY Growth 30,406 ZTO 中通快递 ZTO EXPRESS 35,377 2020 2021 2022 Quarterly Revenue 同比增长 11% 12% 22% 18% 21% 7% 14% 13% 1.5% 23% 17% 17% 8% 12% 4% 20% 24% 18% 9,871 9,740 9,218 8,657 8,945 8,983 9,076 7,677 7,523 7,904 7,391 6,343 6,203 6,368 6,593 6,297 5,700 5,226 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 34#36Strong Profitability and Margins Income from Operations and Margin Net Income and Margin 中通快递 ZOTTO ZTO EXPRESS (RMB million) (RMB million) Year-over-Year Growth Year-over-Year Growth 16% 31% 76% 36% 60% 20% 75% 45% 11% -5% 35% 64% 38% 65% 22% 90% 44% 24% 29.6% 26.0% 25.9% I 20.3% 21.2% 21.6% I 24.9% 22.3% 1 22.9% 24.3% 21.7% 26.7% 19.0% 1 2,530 2,879 18.5% 2,350 18.4% 2,460 2,175 2,424 15.5% 2,129 1,895 2,054 1,748 1,759 1,360 14.1% 1,116 1,986 1,665 1,950 11.1% 1,148 876 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Operating profit Operating margin % Adjusted EBITDA¹ and Margin Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net income Net Profit margin % Adjusted Net Income² and Margin (RMB million) (RMB million) Year-over-Year Growth Year-over-Year Growth 17% 29% 36% 36% 52% 24% 56% 34% 15% -5% 35% 35% 38% 63% 22% 82% 44% 25% I 39.9% 33.4% 33.5% 34.4% 34.9% 37.9% 26.0% 26.6% 29.7% 2,739 20.3% 20.9% 21.5% i 21.4% 25.8% 3,884 18.9% 25.3% 3,397 3,133 3,439 2,531 2,341 2,892 2,998 1,968 2,002 15.5% 1,148 2,120 1,745 13.3% 1,759 1,873 1,920 1,055 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Notes: Adjusted EBITDA Adjusted EBITDA margin % Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Adjusted net income Adjusted net income margin% 1. Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses, and further adjusted to exclude (i) shared-based compensation expense; (ii) gain on disposal of equity investees, (iii) impairment of equity investments and (iv) unrealized gain from investment in equity investee 2. Adjusted net income is a non-GAAP financial measure, which is defined as net income before (i) share-based compensation expense, (ii) gain on disposal of equity investees, (iii) impairment of equity investments and (iv) unrealized gain from investment in equity investee 35#37Continuous Cost Efficiencies and Productivity Gains Cost of Revenues - Breakdown (RMB million) (RMB million) Gross Profit and Margin ZIO 中通快递 ZTO EXPRESS 33.9% I 21.2% 24.4% 25.4% 27.3% 28.1% 28.1% 29.8% 1 20.5% -323 1,193 238 3,304 308 301 85 1,059 307 1,106 -284 1,179 183 222 2,773 1 1,068 148 974 952 2,444 2,523 2,706 954 83 120 113 107 127 2,251 2,203 92 2,015 2,140 1,636 1,880 1,891 1,934 2,013 1,935 2,048 1,568 1,620 2,840 3,351 2,954 3,030 3,102 3,394 3,182 3,200 3,246 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 ■Line-Haul Transportation Cost Sorting Hub Cost Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Gross Profit Gross Margin ■ Other Costs (RMB) ■ Cost of Accessories Sold ■Freight Forwarding Cost Cost of Revenues per Parcel¹ Key Observations on 3Q 2023 Results Line-haul transportation cost Better economies of scale (+) Improved load rate (+) Real-time data monitoring and analytics to optimize route planning(+) Diesel price declined, decreased ~1 cents (+) Sorting hub cost - Better economies of scale (+) Improved standardization in operating procedures with improved labor productivity (+) Increased automation, 482 sets of automated sorting equipment in use (441 sets @ 3Q22) (+) 0.06 0.05 0.20 0.05 0.05 0.05 0.17 0.02 0.19 0.01 0.02 0.18 0.18 0.02 0.02 0.36 0.32 0.29 0.30 0.30 0.50 0.53 0.57 0.49 0.49 www 0.04 0.03 0.18 0.15 0.02 0.02 0.12 8.93 0.32 0.32 0:02 0.25 0.27 0.51 0.51 0.42 0.43 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 ■Line-Haul Transportation Cost Other Costs Sorting Hub Cost Cost of Accessories Sold Gross profit Freight Forwarding Cost Note: 1. Cost of revenues per parcel is calculated based on cost of revenues divided by the number of parcels handled in a given quarter Gross profit increased as the result of increased revenue and cost productivity gain 36#38Strong Operating Cash Flow Supports Continued Investment in Growth Z 中通快递 ZTO EXPRESS Operating Cash Flow Capital Expenditure (RMB million) (RMB million) (RMB million) Notes: 7,220 59% Growth 11,479 22% Decline 9,328 22% Decline Cash and Cash Equivalent¹ 16% Growth 86% Growth 31,970 27,452 25,6642 967 7,234 21,892 422 13,076 42% 18,819 Decline 13,809 4,060 895 28 3,762 8,361 793 6,812 2,938 2,201 852 39 1,272 11,693 9,721 9,285 2,161 31 7,781 1,241 2021 2022 Q2 2023 Q3 2023 2021 2022 Q2 2023 Q3 2023 2021 2022 Q2 2023 Q3 2023 Purchases of Land Use Rights ■Purchases of Property, Equipment and Vehicles Short-term & long-term investments ■Restricted cash ■Cash and cash equivalents 1. Including cash and cash equivalents, restricted cash and short-term & long-term investments 2. On August 24,2022. ZTO completed US $1 billion convertible senior notes offering (net proceeds equivalent to RMB 6.6 billion, including over allotment, excluding underwriting fees and other listing expenses) 37#39Reconciliation of GAAP to Adjusted / Non-GAAP Measures Adjusted EBITDA Net Income Add: Depreciation Add: Amortization Z 中通快递 ZTO ZTO EXPRESS Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, 2021 2022 2022 2022 2022 2023 2023 2023 Sep 30, Dec 31, 2020 2020 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 875,524 1,758,702 1,895,455 2,129,285 1,664,821 2,530,213 2,349,610 1,210,290 1,291,613 533,526 1,272,225 1,147,890 1,747,686 453,818 503,814 495,708 530,874 508,464 567,265 601,643 640,577 633,279 665,400 651,685 671,283 712,734 Add: Interest Expenses 25,390 13,707 23,184 25,651 33,928 29,525 30,353 31,054 31,392 12,174 15,582 33,798 52,271 24,852 59,635 23,102 32,002 35,199 31,637 76,147 34,793 33,791 31,951 71,710 72,218 83,801 Add: Income Tax Expenses EBITDA (27,845) 289,605 149,638 254,859 1,675,360 2,120,390 1,220,105 2,125,684 229,525 371,429 255,219 438,205 439,388 500,518 455,007 575,585 271,387 1,967,675 2,741,585 1,823,075 2,891,978 3,031,761 3,406,549 2,878,016 3,883,090 3,449,483 248,027 178,980 254,976 Add: Share-based Compensation Expense Add: Impairment of the investments Less: Gain on Deemed Disposal of Equity Method Investments Unrealized gain from -1,086 -2,357 26,328 -60,515 -9,083 764 -10,838 Adjusted EBITDA Adjusted EBITDA margin 25.67% 22.68% 29.02% 26.62% investment in equity investee 1,675,360 2,119,304 1,468,132 2,125,684 1,967,675 2,739,228 2,002,055 2,891,978 2,997,574 3,397,466 3,132,992 3,883,854 3,438,645 25.24% 29.72% Adjusted Net Income RMB'000 Net Income RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 1,210,290 1,291,613 533,526 1,272,225 1,147,890 1,747,686 875,524 1,758,702 1,895,455 2,129,285 1,664,821 25.33% 33.41% 33.51% 34.42% 34.88% 39.87% 37.89% RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 2,530,213 2,349,610 Add: Share-based 248,027 178,980 254,976 Compensation Expense Add: Impairment of the investments Less: Gain on Deemed Disposal of Equity Method Investments -1,086 Unrealized gain from investment in equity investee Adjusted Net Income 1,210,290 1,290,527 Adjusted Net Income Margin 18.23% 15.63% Note: Numbers may not add up due to rounding -2,357 26,328 -49,192 -9,083 764 -8,866 781,553 1,272,225 1,147,890 1,745,329 1,054,504 1,758,702 1,872,591 2,120,202 1,919,797 2,530,977 2,340,744 12.07% 17.37% 18.93% 20.3% 20.93% 21.48% 21.37% 25.98% 25.79% 15.53% 13.34% 38#40THANK YOU 幸福都是奋斗出来的! 中通快递 ZTO EXPRESS 回胜晨板金 中通快递 ·ZTO EXPRESS 4.5ml