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

2019 Second Quarter Corporate Presentation

August 13, 2019

2

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

• r 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.

2Q 2019 Results Review

2nd

nd Quarter

rter 2019 9 financial ancial highl ghligh ghts ts

4

Strong revenue growth; solid gross profit, adjusted EBITDA, and non-GAAP net income improvement; compared with 2nd Quarter 2018:  Revenue ue was RMB8.8 billion, a YoY increase of 30.5%, revenue ue ex-Sto tore re+ was RMB8.0 billion, a YoY increase of 34.8% – 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% – Revenue ue from Store+ was RMB790.6 million, a YoY decrease of 1.0% – 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 t margin ex ex-St Stor

• re+ was 5.5%, a decrease by 0.5 percentage points YoY

 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 1.1 percentage points; adjuste ted EBITDA A ex-Stor

• re+ was RMB247.2 million, adjust

sted ed EBITDA DA margin ex-Stor

• re+ was 3.1%

 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

• re+ was RMB107.0

million  Net cash generat ated ed from operating ng activities vities was RMB334.2 million; CAPEX EX was RMB380.9 million

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.

2nd

nd Quarter

rter 2019 bu busi siness ess highlights hlights

5

Continued the strong momentum from 1Q, focused on market share gain, investing in networks and services, accelerating technology adoption, improving

• perating 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%

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.

(375) (534) (532) 486 486 1,441 418 418 520 520 (12.2%) (10.2%) (6.0%) 2.4% 5.2% 6.2% 5.9% 2014 2015 2016 2017 2018 2Q2018 2Q2019 Gross Profit/(Loss) Gross Profit/(Loss) Margin %

Str trong

• ng to

top-line ine gro rowth th and d pr profit it impr prove

• vemen

ent

6 6,732 8,788 3,066 5,256 8,844 19,990 27,961 2014 2015 2016 2017 2018 2Q2018 2Q2019

39.9 .9%

FY 2017 – FY 2018 YoY

73.8 .8%

2014-2018 Revenue CAGR

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.

• 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.

Revenue

RMB mm

Gross Profit/(Loss)

RMB mm

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

24.5 4.5%

2Q18 – 2Q19 YoY

196.8 6.8%

FY 2017 – FY 2018 YoY

1 1

30.5 .5%

2Q18 – 2Q19 YoY

Strong volume growth, ongoing network optimization, and increased technology application drive lower costs and operating leverage; adjusted operating expenses as a percentage of revenue improved by 1.0 percentage points YoY

7

Conti ntinu nuously

• usly impr

prov

• ving

ng ope perat rating ing leve verage rage

349 349 554 554 868 868 1,470 1,992 493 493 551 551 11.4% 10.5% 9.8% 7.4% 7.1% 7.3% 6.3% 2014 2015 2016 2017 2018 2Q2018 2Q2019 % of Revenue

Cost of Revenue

RMB mm

Adjusted Operating Expenses1

RMB mm 3,440 5,791 9,377 19,504 26,520 6,315 8,268 112.2% 110.2% 106.0% 97.6% 94.8% 93.8% 94.1% 2014 2015 2016 2017 2018 2Q2018 2Q2019 % of Revenue

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.

• 1. Adjusted operating expenses represent total operating expenses excluding SBC.

(718) (1,059) (1,363) (923) (452) (56) 6 (23.4%) (20.2%) (15.4%) (4.6%) (1.6%) (0.8%) 0.1% 2014 2015 2016 2017 2018 2Q2018 2Q2019 Non-GAAP Net Income/(Loss) Non-GAAP Net Income/(Loss) Margin

Pro rofi fita tabi bility ty inflect ection ion po point

8

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.

• 1. Before the completion of the Company’s IPO in September 2017, no SBC expense had been recognized. Upon completion of the IPO, the Company immediately recognized a substantial amount of SBC expense associated with vested share-based awards, especially in the third quarter of 2017.
• 2. Non-GAAP net loss represents net loss excluding SBC expense, amortization of intangible assets resulting from business acquisitions and fair value change of equity investments.

Adjusted EBITDA and Adjusted EBITDA Margin

RMB mm

Non-GAAP Net Income/(Loss)2

RMB mm

2Q2019 recorded positive non-GAAP net income for the first time during a second quarter; adjusted EBITDA improved by 256% YoY while adjusted EBITDA margin improved by 1.1 percentage points

1 1

(629) (905) (1,120) (583) (18) 42 148 (18.3%) (17.2%) (12.7%) (2.9%) (0.1%) 0.6% 1.7% 2014 2015 2016 2017 2018 2Q2018 2Q2019

• Adj. EBITDA
• Adj. EBITDA Margin

(329) (312) (789) 26 26 637 637 432 432 334 334 2014 2015 2016 2017 2018 2Q2018 2Q2019

Operating Cashflows

RMB mm

CAPEX

RMB mm 212 398 628 750 1,078 230 381 6.9% 7.6% 7.1% 3.8% 3.9% 3.4% 4.3% 2014 2015 2016 2017 2018 2Q2018 2Q2019 % of Revenue

Improv proving ing cash sh flow genera neration tion with th minimal imal cape pex x sp spent nt

9

Asset-light model drives solid cash flow generation. CAPEX is expected to be within 3-4% of revenue annually; company invested RMB369.8 million in automation in 2Q 2019.

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.

• 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. 1

*Decrease in operating cash flow in 2Q was due to seasonal cash flow cycle which is offset over the six month period. Net cash flow for the first six months in 2019 was RMB128.7 million compared to negative RMB178.1 million for the same period in 2018, an improvement of RMB306.8 million.

*

10

RMBmm

(Except for %)

GAAP AP to to non-GAA GAAP P measu asures res reconci

• nciliat

iation

• n

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.

• 1. In the second quarter of 2019, the Company recorded share-based compensation (“SBC”) expense of RMB25.7 million, of which approximately RMB0.3 million was allocated to cost of revenue, RMB1.8 million was allocated to selling expenses, RMB21.8 million was allocated to general and administrative expenses, and RMB2.4 million was

allocated to research and development expenses.

Non-GAAP Net Income/(Loss) FY17 FY18 2Q18 2Q19

Net Loss (1,228) (508) (94) (22) Add: Share-based Compensation Expense1 299 109 35 26 Amortization of Intangible Assets Resulting from Business Acquisitions 7 12 3 3 Non-GAAP Net (Loss)/Income (923) (452) (56) 6 Non-GAAP Net (Loss)/Income Margin (4.6%) (1.6%) (0.8%) 0.1%

EBITDA and Adjusted EBITDA FY17 FY18 2Q18 2Q19

Net Loss (1,228) (508) (94) (22) Add: Depreciation & Amortization 364 462 107 151 Interest Expense 47 75 22 15 Income Tax Expense 10 12 3 4 Subtract: Interest Income (75) (103) (32) (26) EBITDA (882) (62) 6 122 Add: Share-based Compensation Expense1 299 109 35 26 Adjusted EBITDA (583) (18) 41 148 Adjusted EBITDA Margin (2.9%) (0.1%) 0.6% 1.7%

11

Financi ancial al highlights hlights by by se segm gment nt – 2nd

nd Quarter

rter 2019 2019

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.

• 1. Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives.
• 2. EBITDA represents net loss excluding depreciation, amortization, interest expense and income tax expense and minus interest income. Adjusted EBITDA represents EBITDA excluding share-based compensation (SBC) expense and fair value change of equity investments.
• 3. See the slide entitled “GAAP to Adjusted/Non-GAAP Measures Reconciliation” for more information about the non-GAAP measures used in this presentation.
• 4. Ex-Store include BEST Express, BEST Freight, BEST Supply Chain Management and Others.

RMBmm (Except for %) 2Q2017 2Q2018 2Q2019 %Change YoY Revenue 4,856 6,732 8,788 30.5% Express 3,076 4,177 5,446 30.4% Freight 782 1,030 1,306 26.8% Supply Chain Management 376 499 599 20.1% Store+ 594 798 791 (1.0%) Others1 28 228 647 183.1% Gross Profit 133 418 520 24.5% Gross (Loss)/Profit Margin 2.7% 6.2% 5.9%

• 0.3ppts

Express 3.6% 5.5% 4.5%

• 1.0ppts

Freight (7.8%) 5.2% 6.4% +1.2ppts Supply Chain Management 9.4% 7.6% 8.7% +1.1ppts Store+ 5.7% 8.0% 10.5% +2.5ppts Others1 48.3% 14.4% 8.9%

• 5.5ppts

Adjusted EBITDA 2, 3 (135) 42 148 256.0% Ex-Store+ 4 289 Store+ (99) Unallocated (42) Adjusted EBITDA Margin (2.8%) 0.6% 1.7% +1.1ppts

Business Overview

Parti rtici cipant pant in vast st, , fast st-growing growing ta target rget add ddre ressa ssable ble mark rket ets

13

Logistics market size of China, US and Southeast Asia(1)

US$ bn

Fast-growing logistics sub-sectors in China

RMB bn 1,602 1,634 1,672 1,829 2,010 1,451 1,482 1,393 1,495 1,636 226 249 281 313 348 2014 2015 2016 2017 2018 China USA SEA 733 1,194 2019E 2023E Expres ess 1,611 2,270 2019E 2023E Less than truckload ad Freigh ght

We are a key player in the world’s largest and fastest-growing logistics markets and its sub-sectors

Source: Frost and Sullivan Note:

• 1. 2018 year-end exchange rate, US$ / RMB = 6.6174

4,087 5,247 2019E 2023E Full truckload ad Freigh ght 1,571 2,111 2019E 2023E Supply chain manage geme ment nt 299 1,002 2019E 2023E Truckload ad ser ervice ce broker erage age platfo form 492 2,084 2019E 2023E FMCG B2B platfo form

Before

Monoline logistics companies create islands of disparate online and offline information

Our r visi sion

• n is t

s to lever erage ge technology hnology and d an integr egrat ated ed supply chain and logistics platform…

BEST provides one-stop online-offline smart supply chain solutions

Our Platform

B2B2C O2O

Online

B2C B2B Supply Chain Systems Last-mile Express Trucking Cross-border

Offline

14

15 Source: Council of Supply Chain Management Professionals (CSCMP), Frost and Sullivan, iResearch, State of Logistics Report, National Bureau of Statistics of China and China Federation of Logistics & Purchasing. 0% 5% 10% 15% 20% 25% 30% 1991 1996 2001 2006 2011 2016 Warehousing Transportation Administration

Development of China Logistics Market

Logistics Costs as % of GDP

Warehousing: 31.3% 34.6% Transportation: 55.4% 51.9%

Development of US Logistics Market

Logistics Costs as % of GDP

0% 3% 6% 9% 12% 15% 18% 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016

Warehousing: 49.1% 30.2% Transportation: 47.2% 63.4% Total: 16.1% of GDP Total: 8.0% of GDP Total: 24.0% of GDP 14.8% of GDP

Outsourcing Technology Standardization Consolidation

K E Y D R I V E R S O F T H E T R A N S F O R M AT I O N

…to transform China’s inefficient supply chain and logistics industry

Administration: 3.7% 6.4% Administration: 13.3% 13.5%

2018 2018

Market rket leading ding gro rowt wth

16

CAGR GR 2016–20 2018 (vs.

• s. Indus

ustr try) y) 2Q2 Q2019 (vs.

• s. Indus

ustr try) y) Expr press ess  Started operation in 2010, currently is the 4th largest express provider by volume(1)  Market share grew from 2.0% in 2014 to 10.8% in 2018  Parcel volume grew from 1.0 billion in 2014 to 5.4 billion in 2018 58.9% vs 27.3% 49.0% vs. 28.4% Freight ght  Started operation in 2012, currently is the 2nd largest LTL provider by volume(2)  Freight volume grew from 0.5 million tonne in 2014 to 5.4 million tonnes in 2018 34.9% vs 19.8%(2) 26.6%(3) Supp pply ly Chain ain Manage ageme ment nt  Started operation in 2009, leading 3PL supply chain management service provider for fashion & apparel and FMCG segments  Number of orders fulfilled grew from 10.0 million in 2014 to 246.7 million in 2018 29.3% vs. 9.5%(2) 20.1%(3) Stor

• re+

 Started operation in 2015, one of the leading online and offline FMCG platforms for convenience stores  Number of orders fulfilled grew from 687,692 in 2016 to 3,055,042 in 2018 125.4% vs 177.8%(2) (1.0)%(3) UCar argo go  Started operation in 2015 to source transportation needs for internal BUs, opened platform to external customers in March 2018  Number of transactions increased from 17,626 in 2016 to 466,278 in 2018 N/A vs 100.0%(2) 246.5 %(3, 4)

We have consistently outperformed and outgrown the industry with strong momentum in gaining market share from competitors

Note:

• 1. In terms of parcel volume
• 2. According to Frost & Sullivan industry research
• 3. Industry data not available
• 4. Growth is calculated based only on revenue generated by transactions with external customers

By Volume By Revenue

Sender / Recipient Sender / Recipient

Express press

17

Asset-light business utilizing our network, franchisee partners and 3rd party transportation service providers to provide express delivery of parcels

Highlig hlight hts  Fast t growt wth h and d market ket share e gain: continual significant above-market growth, moving from 6th (6.9% market share) in 2016 to 4th (10.8% market share) in 2018; YoY growth by parcel volume was 49.0% in 2Q 2019, market share improved to 12.2% as of June 30, 2019 from 10.5% as of June 30, 2018  Contin tinuo uous us reduct uctio ion n in unit t cost: Cost per parcel decreased by 11.6% YoY, driven by a decrease in transportation cost per parcel by 17.7% to RMB0.71, labor cost per parcel by 31.5% to RMB0.23, lease cost per parcel by 15.0% to RMB0.09 and other costs per parcel by 25.2% to RMB0.14  Opera erating ing efficie iciency ncy enhance ncement ent: : leveraged critical scale and network to optimize operations, reduced the number of hubs and sortation centers to 97 as of June 30, 2019 from 128 as of June 30, 2018  Techn hnolo

• logic

ical l advan vancement cements: s: 75 automated sorting and 732 dimensions and weight scanning systems in operation, digital waybill usage was 100% as of June 30, 2019 Strat ateg egies ies  Brand nd build lding ing: : continue to improve service quality and enhance customer experience  Netwo work rk optim imizat ization ion: : further reduce total number of hubs and sortation centers to around 90 by end of 2019 to lower transportation, labor, lease and other costs  Techn hnolo

• logy

gy applic plicat ation ion: : continue to invest in automation technology to increase productivity  Market ket share re gain: target minimum parcel volume growth to be 1.5x of industry growth in 2019 Pick-Up/ p/Del eliv iver ery Sortin ting g and Transp nspor

• rtin

ting

Service Stations Service Stations Hubs and Sortation Centers Line-Haul Transportation and Feeder Services* Hubs and Sortation Centers

Pick-Up p / Deliver livery

Operated by BEST Operated by Franchisee Partners *All transportation outsourced to 3rd party transportation service providers

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.

5.3% 6.8% 6.9% 9.4% 10.8% 10.5% 12.2% 2014 2015 2016 2017 2018 2Q2018 2Q2019 18

Express press – fast st gro rowth th and d mark rket et sh share are gain in

735 735 1,402 2,166 3,769 5,470 1,280 1,907 128.0% 90.8% 54.4% 74.1% 45.1% 39.6% 49.0% 51.9% 48.1% 51.3% 28.0% 26.6% 25.0% 28.4% 2014 2015 2016 2017 2018 2Q2018 2Q2019 BEST Express Volume BEST Express YoY Industry YoY

65.2 .2%

2014-2018 CAGR

Note: Data as of June 30, 2019. Source: iResearch, State Post Bureau of China.

Outperforming Industry Growth

mm Parcels

Continuously Gaining Market Share

Market Share (%)

5.5 5 ppt pts

2014-2018

1.7 7 ppts pts

2Q2018-2Q2019

1.72 72x

2Q Industry Growth

3.52 2.88 2.62 1.83 1.48 1.50 1.17 1.47 1.61 1.58 1.56 3.30 3.09 3.08 2.73 2014 2015 2016 2017 2018 2Q2018 2Q2019 Cost per Parcel Last-mile delivery service fee 19

Express press – volum

ume e growt wth, h, networ work k optimiza imization,

• n, techn

chnology

• logy app

pplication ication drive ive unit econo

• nomics

mics impr provem

• vement

nt

Parcel Volume

mm

Revenue per Parcel

RMB

Gross Profit/(Loss) per Parcel

RMB (0.45) ) (0.2 .23) ) (0.13) ) 0.09 0.14 0.18 0.13 (14.7%) (8.7%) (5.2%) 2.7% 4.4% 5.5% 4.5% 2014 2015 2016 2017 2018 2Q2018 2Q2019 Gross Profit/(Loss) per Parcel Gross Profit/(Loss) Margin* 735 1,402 2,166 3,769 5,470 1,280 1,907 2014 2015 2016 2017 2018 2Q2018 2Q2019

Cost of Revenue per Parcel

RMB 3.07 2.65 2.49 1.92 1.63 1.68 1.30 1.47 1.61 1.58 1.56 3.39 3.24 3.26 2.86 2014 2015 2016 2017 2018 2Q2018 2Q2019 Revenue per Parcel Last-mile delivery service fee

45.1% 1%

FY 2017 – FY 2018 YoY

65.2 .2%

2014-2018 CAGR

6.4% 4%

FY 2017 – FY 2018 YoY

19.5% .5% (ex-LM)

2014-2018 CAGR

11.6% .6%

2Q18 – 2Q19 YoY

4.4% 4%

FY 2017 – FY 2018 YoY

14.6% .6% (ex-LM)

2014-2018 CAGR

12 12.4% .4%

2Q18 – 2Q19 YoY

55.6 .6%

FY 2017 – FY 2018 YoY

28.4 .4%

2Q18 – 2Q19 YoY *Gross Profit Margin is calculated based on revenue per parcel including last-mile delivery service fee starting from 2017

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.

• 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. 1 1

49.0 .0%

2Q18 – 2Q19 YoY

1.97 1.48 1.29 1.01 0.87 0.87 0.71 2014 2015 2016 2017 2018 2Q2018 2Q2019 0.29 0.23 0.43 0.22 0.18 0.19 0.14 2014 2015 2016 2017 2018 2Q2018 2Q2019 0.23 0.22 0.20 0.13 0.11 0.11 0.09 2014 2015 2016 2017 2018 2Q2018 2Q2019 1.02 0.94 0.70 0.47 0.33 0.34 0.23 2014 2015 2016 2017 2018 2Q2018 2Q2019 20

Transportation Cost per Parcel

RMB

Labor Cost per Parcel

RMB

Other Costs per Parcel

RMB

Lease Cost per Parcel

RMB

Express press – continuou tinuous s re redu duction tion in cost st pe per r parc rcel el

13.8% .8%

FY 2017 – FY 2018 YoY

18.5 .5%

2014-2018 CAGR

17.7% .7%

2Q18 – 2Q19 YoY

15.4% .4%

FY 2017 – FY 2018 YoY

16.8 .8%

2014-2018 CAGR

15.0 .0%

2Q18 – 2Q19 YoY

29.8 .8%

FY 2017 – FY 2018 YoY

24.6% 4.6%

2014-2018 CAGR

31.5 .5%

2Q18 – 2Q19 YoY

18.2 .2%

FY 2017 – FY 2018 YoY

11.2% .2%

2014-2018 CAGR

25.2 .2%

2Q18 – 2Q19 YoY

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.

Sender / Recipient Sender / Recipient

Fre reight ight

21

Asset-light business utilizing our network, franchisee partners and 3rd party transportation service providers to provide LTL and FTL delivery

Highlig hlight hts  Stron

• ng

g volu lume growth th: : freight volume increased from 678,000 tonnes in 2014 to 5,430,000 tonnes in 2018; increased by 26.6% YoY to 1,730,000 tonnes in 2Q19  Ongoin

• ing

g netwo work rk optim timiz izat ation ion: : number of hubs and sortation centers reduced by 20.5% YoY to 101 which resulted in improved operational efficiency with lower transportation and labor costs, while shortened delivery time  Sign gnific ifican ant t margin gin impr prove

• vement

ent: : gross profit/loss per tonne improved from negative RMB107 in 2014 to positive RMB29 in 2018; gross profit margin improved by 1.2 percentage points YoY to 6.4% in 2Q19  Servic rvice e covera erage ge expa pansio nsion: : total number of franchised last-mile service stations increased by 55.1% YoY to 17,380 as of June 30, 2019 from 11,209 as of June 30, 2018 Strat ateg egies ies  E-com commerc erce e focus: s: increase percentage of e-commerce related transactions to improve product mix and profit margin  Netwo work rk optim imizat ization ion: : optimize number of hubs and sorting centers to around 90 by 2020 to further reduce costs and shorten delivery time  Dyna nami mic c routing ing integr egrat ation ion with Expres ress: : centralize dynamic route planning to further reduce transportation costs  Cust stom

• mer

er exper perience ience and d service vice quality lity enhancem ancement ent: continue to increase number of service stations and provide value-added services to customers Pick-Up/ p/Del eliv iver ery Sortin ting g and Transp nspor

• rtin

ting

Service Stations Service Stations Hubs and Sortation Centers Line-Haul Transportation and Feeder Services* Hubs and Sortation Centers

Pick-Up p / Deliver livery

Operated by BEST Operated by Franchisee Partners *All transportation outsourced to 3rd party transportation service providers

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.

499 613 639 656 585 578 545 123 142 136 161 779 727 714 707 2014 2015 2016 2017 2018 2Q2018 2Q2019 Cost per Tonne Last-mile delivery service fee 22 (107) (164) (101) (43) 29 39 49 (27.3%) (36.5%) (18.8%) (5.8%) 3.8% 5.2% 6.4% 2014 2015 2016 2017 2018 2Q2018 2Q2019 Gross Profit/(Loss) per Tonne Gross Profit/(Loss) Margin* 678 1,507 2,982 4,316 5,430 1,366 1,730 2014 2015 2016 2017 2018 2Q2018 2Q2019 392 449 538 604 614 618 594 132 142 136 161 736 756 754 755 2014 2015 2016 2017 2018 2Q2018 2Q2019 Revenue per Tonne Last-mile delivery service fee

Fre reight ight – gro rowt wth h in e-comm commerce rce and d consump sumption tion dr drives es de demand mand for r LTL se serv rvices ices

Freight Volume

000’s tonnes

Revenue per Tonne

RMB

Cost of Revenue per Tonne

RMB

Gross Profit/(Loss) per Tonne

RMB

25.8 .8%

FY 2017 – FY 2018 YoY

68.2 .2%

2014-2018 CAGR

26.6 .6%

2Q18 – 2Q19 YoY

7.2% 2%

FY 2017 – FY 2018 YoY

4.1% 1% (ex-LM)

2014-2018 CAGR

5.7% 7%

2Q18 – 2Q19 YoY

2.7% 7%

FY 2017 – FY 2018 YoY

11.9% .9% (ex-LM)

2014-2018 CAGR

0.1% 1%

2Q18 – 2Q19 YoY

22.5 .5%

2Q18 – 2Q19 YoY

9.6p 6ppts ts

FY 2017 – FY 2018 YoY

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.

*Gross Profit Margin is calculated based on revenue per tonne including last-mile delivery service fee starting from 2017

1 1

303 303 402 402 436 436 423 423 382 382 382 382 352 352 2014 2015 2016 2017 2018 2Q2018 2Q2019 39 40 31 48 45 41 45 2014 2015 2016 2017 2018 2Q2018 2Q2019 48 57 66 63 57 55 55 2014 2015 2016 2017 2018 2Q2018 2Q2019 110 110 114 114 107 107 113 113 101 101 101 101 94 94 2014 2015 2016 2017 2018 2Q2018 2Q2019 23

Transportation Cost per Tonne

RMB

Labor Cost per Tonne

RMB

Other Costs per Tonne

RMB

Lease Cost per Tonne

RMB

Fre reight ight – ongoing going re redu duction tion of

• f unit

t costs sts

9.7% 7%

FY 2017 – FY 2018 YoY

8.0%

2Q18 – 2Q19 YoY

9.5% 5%

FY 2017 – FY 2018 YoY

1.5%

2Q18 – 2Q19 YoY

10.6 .6%

FY 2017 – FY 2018 YoY

7.2%

2Q18 – 2Q19 YoY

6.3% 3%

FY 2017 – FY 2018 YoY

9.7%

2Q18 – 2Q19 YoY

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.

Supp pply Chai hain n Manag nagem ement nt

24

• Integrated supply chain solutions including warehouse and inventory planning, online and offline fulfillment and transportation solutions, intra-city

same-day delivery, and SaaS platform for merchants

Highlig hlight hts  Solid id growt wth: number of orders fulfilled increased from 20 million in 2014 to 247 million in 2018; increased by 41.7% YoY to 86.7 million in 2Q19  Impr prove

• ved margin

gins: s: Gross margin improved by 1.0 percentage points YoY to 8.7% as a result of focusing on fashion & apparel and FMCG segments  Sign gnific ifican ant t scale: le: managed 370 warehouses across China and over 2.8 million square meters of facilities, of which franchisees owned and operated 259 Cloud OFCs and 1.2 million square meters of facilities as of June 30, 2019  Stron

• ng

g growt wth h in franchi chised sed Clou

• ud

d OFC C busine siness: ss: orders fulfilled by franchised Cloud OFCs increased by 78.5% YoY to 36.6 million in 2Q19, accounting for 42.3% of total number of orders fulfilled Strat ateg egies ies  One One-sto stop p solut ution ion: accelerate integration with other business units to offer integrated supply chain solutions to more customers  Fashio hion & & App ppar arel el and FMCG CG segm gmen ents ts focus: us: continue to expand market leading position in these two segments  New w product

• ducts

s and services rvices offering: ring: provide SaaS platform to merchants to digitize their supply chain; build out intra-city delivery network in major cities; develop fresh produce supply chain to enable rural villages to sell fresh produce directly to consumers

Online Merchants Offline

Other Transportation Service Providers Consumers BEST Cloud OFCs Customer Warehouses Membership Stores and Branded Stores Customer Stores Distributors

B2C B2B O2O

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.

442 721 1,161 1,389 1,719 1,380 1,607 45 201 561 995 1,090 1,008 1,235 487 922 1,722 2,384 2,809 2,388 2,842 2014 2015 2016 2017 2018 2Q2018 2Q2019 Self-Operated Cloud OFCs Franchised Cloud OFCs 47 52 93 99 115 110 111 18 54 140 228 237 238 259 65 106 233 327 352 348 370 2014 2015 2016 2017 2018 2Q2018 2Q2019 Self-Operated Cloud OFCs Franchised Cloud OFCs 25 28 33 58 98 104 38 52 5.1% 4.0% 4.7% 6.1% 5.0% 7.6% 8.7% 2014 2015 2016 2017 2018 2Q2018 2Q2019 Gross Profit Gross Profit Margin

Supp pply Chai hain n Manag nagem ement nt – extensive tensive nation tionwide de network twork and d se servi rvices ces

Number of Orders fulfilled

mm

Gross Profit

RMB mm

Total Warehouse GFA

000’s sqm

Cloud OFCs

19 45 88 132 164 41 50 1 9 33 48 82 20 37 20 20 54 54 121 121 180 180 247 61 61 87 87 2014 2015 2016 2017 2018 2Q2018 2Q2019 Self-Operated Cloud OFCs Franchised Cloud OFCs

36.7 .7%

FY 2017 – FY 2018 YoY

87.3 .3%

2014-2018 CAGR

41.7 .7%

2Q18 – 2Q19 YoY

7.6% 6%

FY 2017 – FY 2018 YoY

52.6 .6%

2014-2018 CAGR

6.3%

2Q18 – 2Q19 YoY

6.0% 0%

FY 2017 – FY 2018 YoY

38.8 .8%

2014-2018 CAGR

36.3 .3%

2Q18 – 2Q19 YoY

17.8% .8%

FY 2017 – FY 2018 YoY

55% 5%

2014-2018 CAGR

19.0 .0%

2Q18 – 2Q19 YoY

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.

Sto tore re+

26

Smart supply chain for convenience stores and last-mile services for consumers

Highlig hlight hts  Rapid pidly ly growin wing g netwo work: : number of branded stores increased to 3,106 from 748 YoY, number of membership stores increased by 10.3% YoY to 438,140  Sign gnific ifican ant t increas ease e in orders ers fulfille filled d for brand nded ed stores: es: the total number of store orders fulfilled was 755,756; of which 214,417 orders, accounting for 28.4% of total

• rders, was fulfilled for branded stores, representing a 13.3 percentage-point increase YoY in 2Q19

 Stron

• ng

g margin gin impr prove

• vement

ent: improved gross margin from negative 0.1% in 2015 to positive 9.0% in 2018; improved by 2.5 percentage points YoY to 10.5% in 2Q19  2C last t mile le service vices: s: rolled out Store+ membership programs, online-to-offline and last-mile services, including parcel pick-up/drop-off, home delivery, community group- buying etc. Strat ateg egies ies  Brand nded ed stores res expa pansio nsion: n: expand franchised BEST-Neighbor stores to critical scale to improve gross margin and reduce fulfillment costs per order  Memb mbers ership hip store e quali ality ty enhance ncemen ent: improve margins and reduce fulfillment costs further by enhancing the quality of membership stores and their orders  Technolog hnology y applicatio plication: deploy data analytics to deepen cooperation with brands and stores to optimize merchandise procurement, improve operating efficiency, and roll out new services  Last Last-mile ile service vices s to consumer sumers: s: expand membership program, online-to-offline and last-mile services to grow 2C business

Online Merchants Offline Membership and Branded Stores Last-Mile Services Consumers Merchandise and services flow Data flow

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.

282 351 272 345 94 1,489 476 2,761 376 376 1,840 748 748 3,106 2017 2018 2Q2018 2Q2019 Self-Operated Stores Franchised Stores 3,556 247,631 363,755 423,636 397,289 438,140 2015 2016 2017 2018 2Q2018 2Q2019 242,237 698,673 131,632 214,417 2,161,301 2,521,568 738,959 541,339 10,1 ,151 687,692 2,403,5 ,538 3,220,2 ,241 870,591 755,756 2015 2016 2017 2018 2Q2018 2Q2019 Branded Stores Membership Stores To Total 27

Sto tore re+ – ra rapi pid d network twork expansion, pansion, st stro rong ng margin rgin impr provement

• vement

Number of Branded Stores Number of Membership Stores Gross Profit/(Loss) per Order

RMB

Number of Orders Fulfilled

(1) (14) 64 84 73 110 (0.1%) (1.7%) 6.9% 9.0% 8.0% 10.5% 2015 2016 2017 2018 2Q2018 2Q2019 Gross Profit/(Loss) per order Gross Profit/(Loss) Margin

389 89.4% .4%

FY 2017 – FY 2018 YoY

315.2 5.2%

2Q18 – 2Q19 YoY

27.1% 1%

FY 2017 – FY 2018 YoY

570 70.2% .2%

2015-2018 CAGR

13.2 .2%*

2Q18 – 2Q19 YoY

16.5 .5%

FY 2017 – FY 2018 YoY

392. 92.1% 1%

2015-2018 CAGR

10.3 .3%

2Q18 – 2Q19 YoY

31.1% 1%

FY 2017 – FY 2018 YoY

49.7 .7%

2Q18 – 2Q19 YoY

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.

* Decrease in store orders was due to ongoing efforts to improve the quality of orders from membership stores

Oth ther er se servi rvice ce offerings erings

28

Highlight hts St Strategi gies es UCargo  Significant increase in transaction volume since opening the platform to external customers in March 2018. Number of transactions increased from 17,626 in 2016 to 466,278 in 2018  The number of total transactions increased by 19.4% YoY to 114,538,

• f which external transactions increased by more than 3.6 times to

94,406 in 2Q 2019  Continue to roll out new solutions such as multimodal, LTL, clean energy vehicles, etc.  Provide after-market services such as bulk purchases, insurance, maintenance and repairs to drive revenue growth and margin Capital  Financial services provider to participants in our ecosystem to help them grow their businesses, and improve the overall efficiency of our network  Have provided financing solution to 9,465 trucks as of June 30, 2019  Deepen strategic cooperation with truck manufacturers to expand financing offerings  Provide supply chain financing solutions to ecosystem participants Global  International service coverage in 18 countries and regions outside of China via partners and our own networks  Continued to grow nationwide express and fulfilment operation in Thailand, as well as readied to launch nationwide express operations in Vietnam in 2Q 2019  Capture enormous growth opportunities in Southeast Asia, invest and roll out networks in Vietnam, Indonesia and others  Develop more cross-border solutions to cover more countries Cloud  Backbone to BEST’s integrated services and smart solutions  Strong proprietary technology and big data analytics capabilities drive

• perational excellence and enhance value creation across ecosystem

 Invest in human capital and new technologies; continue to create more solutions and improve company’s

• perational efficiency

 Monetize SaaS platform

29

Oth thers ers se servi rvice ce offerings ferings – new gro rowt wth h engi ngine nes s

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.

4 4 68 13 138 33 57 2015 2016 2017 2018 2Q2018 2Q2019 32 49 198 1,236 36 228 647 2015 2016 2017 2018 2Q2018 2Q2019

Revenue

RMB mm

Gross Profit

RMB mm

523 23.5% .5%

FY 2017 – FY 2018 YoY

238 38.0% .0%

2015-2018 CAGR

183 83.1%

2Q18 – 2Q19 YoY

103.3 .3%

FY 2017 – FY 2018 YoY

225 25.5% .5%

2015-2018 CAGR

74.2 4.2%

2Q18 – 2Q19 YoY

213 213 4,228 8,591 5,126 9,465 2016 2017 2018 2Q2018 2Q2019 17,203 103,713 318,727 70,144 20,132 423 7,874 147,551 25,781 94,406 17,626 111,587 466,278 95,925 114,538 2016 2017 2018 2Q2018 2Q2019 Internal External

UCargo- Number of Transactions 317.9 .9%

FY 2017 – FY 2018 YoY

414.3 4.3%

2016-2018 CAGR

19.4 .4%

2Q18 – 2Q19 YoY 180,000 261,414 222,362 295,440 3,027 4,514 3,947 4,830 2017 2018 2Q2018 2Q2019 2017 2018 2Q2018 2Q2019

Agents Trucks

UCargo - Registered Agents and Trucks

End of Period

45.2 .2%

FY 2017 – FY 2018 YoY

32.9 .9%

2Q18 – 2Q19 YoY

49.1% 1%

FY 2017 – FY 2018 YoY

22.4 .4%

2Q18 – 2Q19 YoY

UCargo – Revenue Generated from External Customers

RMBmm 18 18 151 151 257 257 467 467 444 444 522 522 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 30

Oth thers ers se servi rvice ce offerings ferings – ra rapi pid d expansion pansion of netw tworks

• rks and

d gro rowth th in tr transact nsaction ion volume ume

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.

Capital - Trucks Financed

End of Period

103 03.2% .2%

FY 2017 – FY 2018 YoY

535 35.1% 1%

2016-2018 CAGR

84.6 .6%

2Q18 – 2Q19 YoY

246 46.5 .5%

2Q18 – 2Q19 YoY

Senior manageme gement nt Experien ence ce

Johnn hnny Chou u Shaonin

• ning

Founde under, , Chair airman man and d CEO Google, UTStarcom, AT&T Bell Laboratory, Master in Science and Engineering Princeton University George Chow

• w

Director ctor, , Chief Strate tegy y and Investme tment nt Office icer Credit Suisse, UBS, Merrill Lynch, MBA in Finance Stern School of Business, New York University Felix ix Dong Feng GM of BEST Capit ital al servic ice line ne Hangzhou Guangfa Bank, Southwestern University of Finance and Economics Andy dy Liu u Bo Senior ior Vice Preside ident, nt, GM of Store

• re+ servic

ice line UTStarcom, Motorola, China University of Mining and Technology Mary y Liu Jime mei Senior ior Vice Preside ident nt of Human man Re Resour urce ces s and d Admini inistr trati ation

• n

UTStarcom, Ting Hsin International Group, Central South University, University of Texas Tony y Liu u Tao Senior ior Vice Preside ident, nt, GM of Freig ight ht service vice line Shandong Zitong International Logistics, Zhilian Logistics, Shandong University of Finance and Economics Jenny Pan n Xiaoji

• jie

Princ ncipal ipal Accou counti nting ng Office icer State Street Corp Zhejiang, KPMG China, South China University of Technology, Zhejiang University Ted Yuan n Xingjun jun Vice ce Preside ident, nt, GM GM of UCar argo

• service

vice line ne Hangzhou PoolMaster Logistics, UTStarcom, Hangzhou Kelong Electrical Appliances, City University

• f Leeds

Mandy ndy Zhang ang Mangli li Senio ior r Vice Preside ident nt, , GM of SCM service vice line ne UTStarcom, Zhejiang Province Economics and Construction Development Consulting Company, Hangzhou Wireless Equipment Factory, Zhejiang University Fred d Zhang ang Yanbing nbing Senior ior Vice Preside ident nt of Engine neeri ring ng, , GM of Cloud ud servic ice line ne UTStarcom, China TravelSky, National University of Defense Technology, Karlsruhe Institute of Technology Richar hard d Zhou

• u Jian

an Senior ior Vice Preside ident, nt, GM of Global bal service vice line UTStarcom, Shanghai Ziimoo Communication Technology, Cellon (Shanghai) Communication Technology, Huazhong University of Science and Technology Vict ctor

• r Zhou
• u Shaohua

aohua Senio ior r Vice Preside ident nt, , GM of Expre press s servic ice line ne UTStarcom, Motorola, China Mobile, Beijing University of Posts and Telecommunications

Divers rse e and d expe peri rience enced d mana nage gemen ent t te team am

31

Posi siti tione

• ned

d to to conti tinu nue e st stro rong ng gro rowth th moment mentum

32

We are focused on maximizing long-term value propositions to businesses and consumers through comprehensive integrated services and enhanced experience driven by technology and service quality  Technology enabled networks well-positioned to capture opportunities from demand for integrated supply chain solutions and services as a result of strong growth in e-commerce, online-to-offline integration, and ongoing industry consolidation  Asset-light business model ensures solid operating cash flow with minimal CAPEX spent and a high return on capital  Outperforming industry growth in key sub-sectors  New businesses provide growth engines with strong revenue and margin contribution  Significant gross profit, EBITDA, net income improvement YoY  Adjusted EBITDA and margin to continue to improve  Adjusted net income is at an inflection point, strive to turn positive for full year 2019

Supplemental Materials

Business Model Financial Statements

Integr egrat ated ed logis istics tics and d supp pply ly chain n netw tworks ks Expr press ess Freight ght SCM CM Stor

• re+

Expr press ess parcel cel deliv iver ery LTL and d FTL deliver livery Smar art onlin ine-offlin ine supply ly chain in manage agement ent S2B 2B2C 2C smar art supp pply ly chain n for conven venien ience ce stores es and last-mile ile servic vices s for consu sumers

• Youngest and one of the fastest growing

express networks among major players, ranked within the top 4 by parcel volume

• 100% province and city, 99% district and

county coverage

• Asset-light model with 5,300+ franchisee

partners operating 36,000+ service stations, self-operate 97 hubs and sortation centers, 100% of facilities leased, 100% transportation needs

• utsourced
• Leading and among the fastest growing

LTL service providers in China. Ranked number 2 by LTL volume

• 100% province and 99% city coverage
• Asset-light model with 4,800+ franchisee

partners operating 17,000+ service stations, self-operate 101 hubs and sortation centers, 100% of facilities leased, 100% transportation needs

• utsourced
• Provides value-added services to

customers

• Leading 3PL supply chain management

services provider offers customized solutions and services to multinationals, corporates and SMEs

• Solutions include warehouse and inventory

planning, online and offline fulfillment and transportation solutions, intra-city same- day delivery, and SaaS platform for merchants

• Nationwide coverage with 370 Cloud Order

Fulfillment Centers (OFCs), 2.8 million square meters of GFA

• Asset-light model with 259 franchised

cloud OFCs operated 1.2 million square meters of facilities, 100% of facilities leased, 100% transportation needs

• utsourced
• Addresses pain points in the traditional

retail industry such as high channel costs and inefficient supply chain management

• Offers online merchandise sourcing and

store management services for convenience stores; and provides online to

• ffline, and last-mile services to

consumers

• Covers 24 provinces and 41 tier 1 and 2

cities; 3,100+ branded stores and 438,000+ membership stores as of June 30, 2019

• Integrated with SCM - fulfillment and

transportation services provided by SCM

Business iness model: l: techn hnology

• logy enable

led d integrate egrated d smart rt logis isti tics cs and supply ply chain n platf tform

• rm

34

Our mission is to empower business and enrich life by leveraging technology and business model innovation to create a smarter, more efficient supply chain

Notes: As of June 30, 2019 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.

Integr egrat ated ed logistics and supply chain networks (cont’d) Finan ancia cial l service vices Techno nolog logy y plat atfor

• rm

UCar argo go Glob

• bal

al Capit pital al Cloud ud Trucklo kload ad service vice broke

• kerage

age plat atfor

• rm

Inter erna natio tional al e-commer commerce ce logis istics tics Financial services for BEST’s ecosystem Prop

• prie

rietar ary cloud ud-base ased d SaaS aS service vices s and applic plicat atio ions ns plat atfor

• rm
• Provides customized solutions to

customers and sources truckload capacity from transportation service providers to match demand from both the external customers and internal business units

• Executes real-time bidding, en route

monitoring, service quality evaluation, insurance and settlement

• Provides value-added services such as

bulk purchase of vehicles, insurance, ETC, parts sales and general maintenance, etc.

• Nationwide network, 4,800+ service

providers and agents with access to 295,000+ trucks as of June 30, 2019

• Provides international logistics solutions

including inbound and outbound door-to- door international express, LTL, fulfilment, reverse logistics and freight forwarding through our own networks and global partners

• Covered 18 countries and regions outside
• f China as of June 30, 2019
• Operated 3 Cloud OFCs in the US,

continued to expand nationwide express and fulfilment operation in Thailand, and readied to launch nationwide express

• perations in Vietnam as of June 30, 2019
• Operated 110,000+ square meters of

facilities outside of China as of June 30, 2019

• Provides financial services and support to

participants in our ecosystem to help them grow their businesses, while improve the

• verall efficiency of our network
• Offers finance leases to help our

franchisee partners and transportation service providers acquire trucks and other logistics equipments

• Centralizes sourcing of products and

services used by our franchisee partners and transportation service providers such as bulk procurement of trucks and accessories to obtain group discount to reduce costs

• Strong proprietary technology and big data

analytics capabilities drive operational excellence and enhance value creation across ecosystem

• Powers the technology solutions and

applications for our ecosystem. Offers integrated web and mobile portal for merchants, consumers, franchisee partners, transportation service providers and employees

• Provides access to a wide range of

application and services such as SMS, OMS, TMS, WMS, billing and payment settlement, CRM and customer data tracking and analytics

• 820+ engineers, and 800,000+ external

users of our SaaS platform as of June 30, 2019

Business iness model: l: techn hnology

• logy enable

led d integrate egrated d smart rt logis isti tics cs and supply ply chain n platform (cont’d)

35

We have built comprehensive logistics and supply chain infrastructures and operations, powered by our proprietary cloud-based SaaS technology, and supported by our financial services platform

Notes: As of June 30, 2019 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.

Incom

• me

e st statem tement ent

For the year Ended ed Dece cemb mber er 31, For the three ee months hs Ended ed June 30, (RMB ‘000 Unless Noted Otherwise) 2016 2016 2017 2017 2018 2018 2018 2018 2019 2019 Revenue enue Express 5,388,833 12,786,279 17,702,869 4,177,173 5,446,395 Freight 1,604,573 3,178,044 4,102,610 1,029,676 1,305,785 Supply Chain Management 1,241,356 1,600,952 2,074,414 498,521 598,674 Store+ 560,226 2,226,034 2,845,002 798,480 790,558 Others 49,149 198,253 1,236,084 228,470 646,718 Total Revenue ue 8,844,1 ,137 19,989,5 ,562 27,960,9 ,979 6,732,3 ,320 8,788,1 ,130 Cost of Reve venue Express (5,671,356) (12,435,550) (16,915,801) (3,948,228) (5,202,070) Freight (1,906,930) (3,362,652) (3,946,032) (975,846) (1,222,296) Supply Chain Management (1,183,245) (1,502,570) (1,970,105) (460,451) (546,778) Store+ (569,557) (2,072,912) (2,589,883) (734,571) (707,497) Others (45,479) (130,327) (1,098,021) (195,577) (589,422) Total Cost of Revenue enue (9,376,5 ,567) (19,504,0 ,011) (26,519,8 ,842) (6,314,6 ,674) (8,268,0 ,063) Gross (Loss)/ )/Prof

• fit

(532,430) 485,551 1,441,1 ,137 417,646 520,067 Selling Expenses (370,017) (694,852) (893,859) (205,736) (213,222) General and Administrative Expenses (521,237) (928,188) (1,020,671) (271,108) (301,169) Research and Development Expenses (80,326) (139,009) (184,581) (51,499) (62,517) Other Operating Income 104,047 – –

• Total Oper

erating ng Expens enses (867,533) (1,762,0 ,049) (2,099,1 ,111) (528,343) (576,908) Loss from Oper erations ns (1,399,9 ,963) (1,276,4 ,498) (657,974) (110,697) (56,841) Interest Income 24,386 75,056 102,821 31,675 26,024 Interest Expense (21,379) (47,154) (75,060) (21,836) (14,696) Foreign Exchange (Loss) (1,864) (6,320) (6,533) (4,318) (2,198) Other Income 44,409 56,035 171,370 17,650 33,076 Other Expense (8,542) (18,507) (30,672) (2,681) (3,225) Loss Before Income me Tax and Share of Net Income me/(Lo (Loss) ) of Equity Inves estees es (1,362,9 ,953) (1,217,3 ,388) (496,048) (90,207) (17,860) Income Tax Expense (570) (9,856) (11,887) (3,440) (4,410) Loss Before Share e of Net Income me/(Lo (Loss) ) of Equity Inves estee ees (1,363,5 ,523) (1,227,2 ,244) (507,935) ) (93,647) (22,270) Share of Net Income/(Loss) of Equity investees 43 (816) (456) (101) (101) Net Loss (1,363,4 ,480) (1,228,0 ,060) (508,391) (93,748) (22,371) Net Loss Attributable to Non-controlling Interests – (167) (403)

• (3,077)

36

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.

Balance ance sh shee eet

(RMB ‘000 Unless Noted Otherwise) As of June 30, 2018 2018 As of Septem ember 30, 2018 2018 As of Dece cemb mber er 31, 2018 2018 As of March ch 31, 2019 2019 As of June 30, 2019 2019 ASSETS Current ent Assets Cash and Cash Equivalents 1,770,238 610,962 1,630,444 1,469,631 1,575,254 Restricted Cash 1,314,505 1,135,259 1,278,326 1,351,466 1,223,996 Accounts and Notes Receivables 772,044 858,658 1,046,844 945,990 1,026,171 Inventories 179,580 164,268 151,031 168,830 175,294 Prepayments and Other Current Assets 1,677,633 1,892,305 1,904,846 1,880,370 1,999,878 Short-term Investments 1,197,342 2,082,201 1,007,329 926,706 1,083,465 Lease Rental Receivables 270,745 388,479 613,439 677,952 153,737 Amounts Due from Related Parties 117,470 104,943 197,488 114,158 715,180 Total Current Asset ets 7,299,5 ,557 7,237,0 ,075 7,829,7 ,747 7,535,1 ,103 7,952,975 Non-cu current Asset ets Property and Equipment, Net 1,544,692 1,818,441 2,064,657 2,088,339 2,410,140 Intangible Assets, Net 145,196 139,636 143,810 136,257 129,905 Long-term Investments 144,877 228,334 214,339 214,304 214,203 Goodwill 457,514 457,514 469,076 469,076 469,076 Non-current Deposits 68,131 69,186 77,043 100,372 103,052 Other Non-current Assets 59,715 46,551 45,531 44,526 69,525 Lease Rental Receivables 67,520 82,955 90,638 113,397 163,026 Restricted Cash 950,379 1,114,904 1,431,441 1,396,821 1,352,958 Operating lease right-of-use assets

• 4,442,251

4,036,752 Total Non-cur current ent Asset ets 3,438,0 ,024 3,957,5 ,521 4,536,5 ,535 9,005,3 ,343 8,948,6 ,637 Total Assets 10,737,5 ,581 11,194,5 ,596 12,366,2 ,282 16,540,4 ,446 16,901,6 ,612 37

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.

Balance sheet (cont’d)

38

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.

(RMB ‘000 Unless Noted Otherwise) As of June 30, 2018 2018 As of Septem ember 30, 2018 2018 As of Dece cemb mber er 31, 2018 2018 As of March ch 31, 2019 2019 As of June 30, 2019 2019 Liabilities es and Shareholders’ Equity Current ent liabilities es Securitization Debt

• 145,359

Short-term bank loans 1,297,000 1,454,900 1,782,900 2,135,000 2,271,500 Accounts and notes payable 2,248,970 2,326,568 2,851,557 2,767,388 2,849,868 Income tax payable 1,728 3,356 5,767 8,401 4,969 Customer advances and deposits and deferred revenue 1,091,020 1,200,973 1,219,230 1,127,295 1,329,016 Accrued expenses and other current liabilities 1,916,563 1,946,259 2,238,785 1,857,933 2,016,272 Capital lease obligation 2,851 2,851 2,851 1,953 1,884 Operating Lease Liabilities

• 1,026,425

776,510 Amount due to related parties 10,511 13,265 12,429 25,324 597 Total current ent liabilities es 6,568,6 ,643 6,948,1 ,172 8,113,5 ,519 8,949,7 ,719 9,395,975 Non-cu current liabilities es: : Securitization Debt

• 67,272

Capital lease obligation 3,070 872 745 2,207 2,095 Deferred tax liability 30,136 29,425 25,356 24,583 23,843 Non-current liabilities 79,126 79,126 86,504 90,282 91,032 Operating lease liabilities

• 3,588,439

3,380,525 Total non-curr urrent liabilities es 112,332 109,423 112,605 3,705,5 ,511 3,564,767 Total liabilities es 6,680,9 ,975 7,057,5 ,595 8,226,1 ,124 12,655,2 ,230 12,960,7 ,742 BEST Inc. . Shareholders’ Equity 4,056,6 ,606 4,134,2 ,237 4,138,1 ,115 3,882,2 ,282 3,941,0 ,012 Non-controlling Interests

• 2,764

2,043 2,934 (142) Total Shareholders’ Equity 4,056,6 ,606 4,137,0 ,001 4,140,1 ,158 3,885,2 ,216 3,940,870 Total Liabilities es and Shareholders’ Equity 10,737,5 ,581 11,194,5 ,596 12,366,2 ,282 16,540,4 ,446 16,901,6 ,612

Sta tatem temen ent t of cash shfl flows

• ws

For the year Ended ed Dece cemb mber er 31, For the three ee months hs Ended ed June 30, (RMB ‘000 Unless Noted Otherwise) 2016 2016 2017 2017 2018 2018 2018 2018 2019 2019 Net Cash Generated (used in)/from Operating Activities (788,794) 25,602 637,204 432,412 334,242 Net Cash Generated from/(used in) Investing Activities 677,074 952,503 (1,230,953) (369,276) (638,496) Net Cash Generated from/(used in) Financing Activities 4,110,498 3,730,859 557,149 (331,583) 304,705 Exchange Rate Effect on Cash and Cash Equivalents, and Restricted Cash (18,751) (18,751) 53,179 75,231 27,331 Net Increase/(Decrease) in Cash and Cash Equivalents, and Restricted Cash 2,636,517 (368,213) 16,579 (193,216) 27,782 Cash and Cash Equivalents, and Restricted Cash at Beginning of Period 291,064 3,380,532 2,982,829 3,345,479 2,934,494 Cash and Cash Equivalents, and Restricted Cash at End of Period 2,927,581 3,012,319 2,999,408 3,152,263 2,962,276 39

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.

Recon concili iliati ation

• n of adj

djusted sted EBITDA TDA and d non-GAA GAAP P net t income

• me

40

Reconciliation of Adjusted EBITDA

For the year Ended ed Dece cemb mber er 31, For the three ee months hs Ended ed June 30, (RMB ‘000 Unless Noted Otherwise) 2016 2016 2017 2017 2018 2018 2018 2018 2019 2019 Net Loss (1,363,4 ,480) (1,228,0 ,060) (508,391) (93,748) (22,371) (+) Depreciation & Amortization 246,311 363,909 461,612 106,515 151,250 (+) Interest Expense 21,379 47,154 75,060 21,836 14,696 (+) Income Tax Expense 570 9,856 11,887 3,440 4,410 (-) Interest Income (24,386) (75,056) (102,821) (31,675) (26,024) EBITDA (1,119,606) (882,197) (62,653) 6,368 121,961 Share-based Compensation Expenses – 298,963 109,107 35,251 26,212 Fair Value Change of Equity Investments – – (64,628)

• Adjusted EBITDA

(1,119,6 ,606) (583,234) (18,174) 41,619 148,173

Reconciliation of Non-GAAP Net Income

For the year Ended ed Dece cemb mber er 31, For the three ee months hs Ended ed June 30, (RMB ‘000 Unless Noted Otherwise) 2016 2016 2017 2017 2018 2018 2018 2018 2019 2019 Net Loss (1,363,4 ,480) (1,228,0 ,060) (508,391) (93,748) (22,371) Share-based Compensation Expense – 298,963 109,107 35,251 26,212 Amortization of Intangible Assets Resulting from Business Acquisitions – 6,580 12,003 2,981 2,644 Fair Value Change of Equity Investments – – (64,628)

• Non-GAA

AAP Net (Loss)/Inc Income

• me

(1,363,4 ,480) (922,517) (451,909) (55,516) 6,485

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.

Recon concili iliati ation

• n of adj

djusted sted EBITDA TDA and d non-GAA GAAP P net t income

• me by

by se segm gment nt

For the three ee months hs Ended ed June 30, 2019 (RMB ‘000 Unless Noted Otherwise) BEST (ex-Store

• re+)

Store+ Unallocated Total Net Income me/(L (Los

• ss)

132,766 (104,158) (50,979) (22,371) (+) Depreciation & Amortization 138,542 3,666 9,042 151,250 (+) Interest Expense

• 14,696

14,696 (+) Income Tax Expense 4,844 (434)

• 4,410

(-) Interest Income

• (26,024)

(26,024) EBITDA 276,152 (100,926) (53,265) 121,961 Share-based Compensation Expenses 13,337 1,922 10,953 26,212 Adjusted EBITDA 289,489 (99,004) (42,312) 148,173

Breakdown and Reconciliation of Adjusted EBITDA by Segments

41

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.

For the three ee months hs Ended ed June 30, 2019 (RMB ‘000 Unless Noted Otherwise) BEST (ex-Store

• re+)

Store+ Unallocated Total Net Income me/(L (Los

• ss)

132,766 (104,158) (50,979) (22,371) Share-based Compensation Expense 13,337 1,922 10,953 26,212 Amortization of Intangible Assets Resulting from Business Acquisitions Fair Value Change of Equity Investments 906 1,737

• 2,643

Non-GAA AAP Net Income me/(Lo (Loss) 147,010 (100,499) (40,026) 6,484

Breakdown and Reconciliation of Non-GAAP Net Income

Thank you!