Digitalbridge Group, Inc. · NYSE:DBRG
Digitalbridge — Investor Presentation (February 2022)
40 slides from Digitalbridge's investor presentation, Feb 24, 2022
Slide 1: DigitalBridge Corporate Overview February 2022
1 DIGITALBRIDGE CORPORATE OVERVIEW F e b r u a r y 2 0 2 2
Slide 2: A Leading Global Digital Infrastructure Firm
2 DigitalBridge (NYSE: DBRG) is the only global-scale digital infrastructure firm investing across five key verticals: data centers, cell towers, fiber networks, small cells, and edge infrastructure A LEADING GLOBAL DIGITAL INFRASTRUCTURE FIRM 25+ Years of Experience - Largest Digital Infrastructure
Slide 3: Table of Contents
3 TABLE OF CONTENTS Build the Next Great Digital Infrastructure Platform ONE OPPORTUNITY ONE MISSION Digital Infrastructure THE OVERVIEWSE CT IO N 1 THE FINANCIALSSE CT IO N 2 THE DETAILSSE CT IO N 3 Digital Investment Management Digital Operating TWO DIVISIONS Simple, High-Growth Business Digital I
Slide 4: One Opportunity: Digital Infrastructure
4 ONE OPPORTUNITY Digital Infrastructure
Slide 5: Massive global opportunity in converged digital infrastructure
5 Coverage Ultra-reliability and low-latency User-to-user / machine-to-machine 2G 3G 4G Future Siloed Towers Data Centers Small CellsFiber Secular Tailwinds Traditional Approach “Old infra” DBRG is building next-gen networks to serve an increasingly converged digital ecosystem As the leading digital
Slide 6: Two Divisions: Digital Investment Management, Digital Operating
6 TWO DIVISIONS Digital Investment Management Digital Operating
Slide 7: DigitalBridge Business Profile
7 DIGITALBRIDGE BUSINESS PROFILE Operating Earnings from Balance Sheet Investments Investment Management Fees and Profits Participation Digital Investment Management Digital Operating Two business lines that both generate growing, predictable earnings backed by investment grade clients Bu si ne ss M
Slide 8: Built for the Entire Digital Investment Cycle
8 BUILT FOR THE ENTIRE DIGITAL INVESTMENT CYCLE Unique DBRG architecture gives investors diversified exposure to the Digital Investment Cycle from high-return ‘business-building’ expertise in the Digital IM platform to stable, mature assets in Digital Operating…both generate growing, predictable ear
Slide 9: Three Reasons to Own
eeettntlll) DIGITALBRIDGE THREE REASONS TO OWN
Slide 10: The DBRG Investment Case
10 THE DBRG INVESTMENT CASE The Demand – Global demand for More, Better, Faster connectivity is driving digital infrastructure investment and DBRG is well positioned for key emerging digital thematics: Edge, 5G, Convergence The Supply – DBRG’s investment management platform is the Partner of Cho
Slide 11: Three Reasons to Own: Powerful Secular Tailwinds
11 THREE REASONS TO OWN 1 2 3 Powerful Secular Tailwinds Digital Infrastructure Experts Simple, High-Growth Business
Slide 12: The Demand: More, Better, Faster Connectivity
12 THE DEMAND: MORE, BETTER, FASTER CONNECTIVITY Global demand for connectivity is driving the need for significant, persistent investment in digital infrastructure Exponential Growth in Data Traffic global capex investment of >$400B annually to meet digital infrastructure demand $300 $250 $200 $150
Slide 13: The Supply: DigitalBridge Is the Partner of Choice
13 THE SUPPLY: DIGITALBRIDGE IS THE PARTNER OF CHOICE DBRG’s investment management platform is the partner of choice as the world’s leading institutional investors increasingly allocate capital to this growing, resilient asset class DIGITAL FEEUMALTERNATIVES AUM Source: Preqin Note: DigitalBridge’s
Slide 14: Three Reasons to Own: Digital Infrastructure Experts
14 THREE REASONS TO OWN 1 2 3 Powerful Secular Tailwinds Digital Infrastructure Experts Simple, High-Growth Business
Slide 15: The Digital Infrastructure Experts
15 THE DIGITAL INFRASTRUCTURE EXPERTS THREE REASONS TO OWN Digital Infrastructure Experts The DigitalBridge team has a 25+ year track record of successfully building businesses in the digital infrastructure sector. Deep specialization creates durable competitive advantages that generate alpha for ou
Slide 16: Experienced Team Dedicated to Digital Infra
16 EXPERIENCED TEAM DEDICATED TO DIGITAL INFRA EXECUTIVE LEADERSHIP Marc Ganzi President and Chief Executive Officer Jacky Wu Chief Financial Officer Ben Jenkins CIO, Digital Investment Management DIGITAL INVESTMENT & ASSET MANAGEMENT TEAM Leslie Golden Managing Director Global Head of Capital Forma
Slide 17: Why Does a Converged Strategy Matter?
17 WHY DOES A CONVERGED STRATEGY MATTER? DigitalBridge forges deeper relationships with customers through a structural ‘at-bats’ advantage that leads to proprietary deals and the ability to offer ‘converged solutions’ vs. components FLEXIBILITY Relative contribution and relevance of verticals shifts
Slide 18: Three Reasons to Own: Simple, High-Growth Business
18 THREE REASONS TO OWN 1 2 3 Powerful Secular Tailwinds Digital Infrastructure Experts Simple, High-Growth Business
Slide 19: Digital IM and Digital Operating revenue and earnings growth targets
19 Digital IM revenue and Fee Related Earnings (FRE) anticipated to continue growth as DBRG expands the magnitude and scope of its investment products – Full Stack Digital Infra Manager $175M $500M $600M $72M $225M $275M $132M $170M $400M $500M $56M $68M $175M $225M 2021 2022E 2023E 2025E $200M $260
Slide 20: One Mission: Build the Next Great Digital Infrastructure Platform
20Strictly Private and Confidential ONE MISSION Build the Next Great Digital Infrastructure Platform
Slide 21: DBRG Strategic Roadmap: Now Entering Stage II
21 DBRG STRATEGIC ROADMAP…NOW ENTERING STAGE II Stage I The Transition (2019-2021) Stage II The Acceleration (2021-2023) Identify new platform opportunities that benefit from DBRG platform Invest in existing portfolio to build value In ve st m en t M an ag em en t D ig ita l O pe ra tin g $2B Ca
Slide 22: DBRG Strategic Roadmap: The Flywheel Effect
22 DBRG STRATEGIC ROADMAP…THE FLYWHEEL EFFECT The “Flywheel” stage serves the long-term vision for the company as a serial compounder of value… The dominant player in a secular growth sector managed by the leading management team in the space Stage III The Flywheel (2023+) Capitalize on digital tran
Slide 23: The Financials
; wy THE FINANC 7 4 °° he
Slide 24: 2021 Year End Financial Overview
24 2021 YEAR END FINANCIAL OVERVIEW NOTE: All $ in millions except per share & AUM 2020 2021 Y/Y% Consolidated Revenues $85.8 $191.7 +123% Consolidated FRE $32.8 $107.7 +228% DBRG Pro-Rata Share of Revenue $71.6 $131.8 +84% DBRG Pro-Rata Share of FRE $27.7 $71.3 +157% Consolidated Revenues $313.3 $7
Slide 25: Stabilized Growth in annualized revenue and EBITDA
25 $36M $34M $62M $84M $131M $131M $132M $138M $13M $13M $28M $39M $56M $55M $56M $60M 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Annualized Revenue Annualized EBITDA STABILIZED GROWTH Digital IM and Digital Operating divisions have continued to grow consistently with ‘lower left to upper right traject
Slide 26: DBRG Financial Profile
26 DBRG FINANCIAL PROFILE Financial Snapshot – DBRG Share $45B Digital AUM $6.2B Total Assets $1.4B Total Debt Corporate Cash @ 12/31/21 $894M BrightSpire (NYSE:BRSP 35M Shares @ $9.00) $315M Wellness Infra Sale1 (estimated to close 1Q22) $316M VFN Availability ‘Corporate revolver’ $200M Remaining O
Slide 27: Digital Investment Management Algorithm
27 2021 2022E 2023T $200M $260M $192M $190M $220M 2021 2022E 2023T $125M $160M $108M $115M $130M 2021 2022E 2023T DIGITAL INVESTMENT MANAGEMENT ALGORITHM AVG. FEEUM (avg. of beginning and ending #s) REVENUE FRE/Adjusted EBITDA Figures do not include Performance Fees RevenueFEEUM Average Investment M
Slide 28: Digital Operating Algorithm: Easy as 1-2-3
28 DIGITAL OPERATING ALGORITHM… EASY AS 1-2-3 $68M-$72M 2022 Guidance Core Organic Growth Tuck-In M&A New Platforms, M&A 2023 Guidance 4-6% YoY 2-3% YoY $175M-$225M Deploy $1.5B Dry Powder 3 1 2 3 Incremental EBITDA Algorithm For Illustrative Purposes Only Core Organic Growth Annual Core Organic G
Slide 29: The Details
29 3 THE DETAILS
Slide 30: Digital IM Growth Profile
30 35% 35% 20% 10% DIGITAL IM GROWTH PROFILE Long-term contracted fee streams drive stable, predictable earnings that compound over time, similar in nature to our Digital Operating assets EQUITY FUNDS LAUNCH DATE FEEUM1 SPV 2013 $2.1B DBP I 2018 $3.2B DBP II 2020 $8.0B Co-invest $4.1B NEW STRATEGIES
Slide 31: 2022: A Full Stack Digital Infrastructure Manager
31 2022: A FULL STACK DIGITAL INFRASTRUCTURE MANAGER ‘Full stack’ approach to Digital Infrastructure allows DigitalBridge the ability to invest, operate and capitalize on $400+ billion of annual global capex that enables us to pair capital to the right risk-adjusted opportunity Ability To Leverage E
Slide 32: Digital Operating Profile
32 Digital Operating segment comprised of stakes in two data center businesses: DataBank and Vantage SDC Segment focused on growing exposure to mature, yield-focused digital infrastructure assets with stable growth profile and positive cash flows DBRG maintains management control as investment s
Slide 33: DigitalBridge: Investing on a Global Scale
33 DIGITALBRIDGE – INVESTING ON A GLOBAL SCALE Leading digital infrastructure investment firm with operating expertise and global presence - $45B in assets and growing rapidly Colombia, Peru, Chile Canada, U.S. and U.K. U.K. United StatesUnited States United States Brazil Brazil, Chile, Colombia, Me
Slide 34: DigitalBridge Universe: What We've Built So Far
34 DIGITALBRIDGE UNIVERSE: WHAT WE'VE BUILT...SO FAR INVESTMENT MANAGEMENT DIGITAL OPERATING1 DBH Legacy Cos. DBP I/DBP II(1) Co-Invest Capital DBRG Balance Sheet Mgmt. Fees Mgmt. Fees & Carried Interest Mgmt. Fees & Carried Interest Investment Earnings MEXICO TOWER PARTNERS 2013 ~3,000 active sites
Slide 35: DigitalBridge: Infrastructure Partner to the Digital Economy
35 Towers Small Cells Fiber Data Centers Edge Infrastructure Hyper-Converged Digital Infrastructure DigitalBridge (NYSE: DBRG) is the leading global digital infrastructure investor, managing and operating assets across five key verticals: data centers, cell towers, fiber networks, small cells, and e
Slide 36: Non-GAAP Reconciliations
36 NON-GAAP RECONCILIATIONS ($ in thousands) FY 2021 FY 2020 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 1Q20 Digi tal IM net income ( loss ) $ 90,915 $ 11,454 $ 28,194 $ 39,272 $ 15,786 $ 7,663 $ 2,702 $ 3,799 $ 2,424 $ 2,529 Adjustments: Interest income 4,748 (33) 2,499 2,250 - (1) (1) (2) - (30) Investmen
Slide 37: Non-GAAP Reconciliations
37 NON-GAAP RECONCILIATIONS ($ in thousands) FY 2021 FY 2020 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 1Q20 Net income (loss) attributable to common stockholders $ (385,716) $ (2,750,782) $ (20,686) $ 41,036 $ (141,260) $ (264,806) $ (140,575) $ (205,784) $ (2,042,790) $ (361,633) Net income (loss) attribu
Slide 38: Forward-Looking Statements
38 This presentation may contain forward-looking statements within the meaning of the federal securities laws, including statements relating to (i) our strategy, outlook and growth prospects; (ii) our operational and financial targets and (iii) general economic trends and trends in our industry and
Slide 39: Important Note Regarding Non-GAAP Financial Measures
39 IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES This presentation includes certain “non-GAAP” supplemental measures that are not defined by generally accepted accounting principles, or GAAP, including the financial metrics defined below, of which the calculations may from methodologies utili
Slide 40: DigitalBridge
DIGITALBRIDGE
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