ZTO Express Financial Overview slide image

ZTO Express Financial Overview

• 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
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