ZTO Express Financial Overview slide image

ZTO Express Financial Overview

Strong 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
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