Digitalbridge Group, Inc. · NYSE:DBRG
Digitalbridge — Colony Capital — Investor Presentation (November 2020)
34 slides from Digitalbridge's investor presentation, Nov 17, 2020
Slide 1: Company Presentation
COMPANY PRESENTATION November 17, 2020 Marc Ganzi I President & CEO, Colony Capital 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that ar
Slide 3: Agenda
Agenda # Section 1 Colony’s Evolving Digital Ecosystem Colony Grows on the Edge: DataBank adds 2 zColo Colony 2.0: Delivering on the Digital 3 Transformation 4 The Investment Case for CLNY 3 3
Slide 4: Colony's Evolving Digital Ecosystem
1 Colony’s Evolving Digital Ecosystem 4
Slide 5: CLNY's Differentiated End-to-End Converged Vision
CLNY’s Differentiated End-to-End Converged Vision Colony Capital is delivering customers the next-generation of mobile and internet connectivity solutions Traditional Siloed Digital Infrastructure Approach Hyper-Converged Digital Architecture Data Centers Small Cells Optic Fiber Macro Site Today’s I
Slide 6: Evolving Networks Demand New Thinking
Evolving Networks Demand New Thinking USE CASE: AUTONOMOUS DRIVING Tower Mounted Radio Unit (RRU) RADAR 1 PER SECOND 0 SONAR SHC 1 0 CAMERAS Shared Baseband 1 PER SECOND PER SECOND Controller 0 NETWORK OPERATING 1 CENTER 0 AUTONOMOUS VEHICLES GPS 1 PER SECOND 1 1 0 PER DAY… EACH DAY 0 1 1 LIDAR 1 0
Slide 7: Evolving Networks Need New Approaches
Evolving Networks Need New Approaches USE CASE: TELE MEDICINE Royal London Hospital United Kingdom 20:00 PM From devices through the core to the cloud and back Johns Hopkins Hospital EE.UU. Orleans St, Baltimore 11:00 AM Towers Sea Cable Diagnosis complexes in real time and Instantly 5G 0 LATENCY Op
Slide 8: Evolving Networks Require Converged Infrastructure
Evolving Networks Require Converged Infrastructure USE CASE: REMOTE FARMING Washington, DC EE.UU. 12:00 PM 5G and IoT in manufacturing and farming give machines the ability to streamline processes, monitor the supply chain, calibrate equipment, and free people from repetitive tasks. Automated soybea
Slide 9: Colony Grows on the Edge
2 COLONY GROWS ON THE EDGE DataBank + zColo – The Leading Domestic Edge Platform 9
Slide 10: Global Connectivity Post-COVID Pushing Compute on the Edge
Global Connectivity Post-COVID Pushing Compute on the Edge ▪ Our personal and professional lives were already migrating to digital On-demand Services platforms…then COVID-19 hit (Uber Eats / Apps) Virtual Events Telecommuting Conferences ▪ Unprecedented demand for MORE, BETTER, FASTER connectivity D
Slide 11: The Emerging Edge Opportunity
The Emerging Edge Opportunity Edge Data Center Market to Witness Massive Growth and Network Shift Through 2030 1 Exponential Growth in New & Emerging Use Cases… IOT Connected Devices • The next users of cloud-scale compute are machines, not people… BILLION BILLION BILLION IoT empowered by three key
Slide 12: Changing Architectures Drives Edge Growth
Changing Architectures Drives Edge Growth The Edge Will Spur Storage and Networking Investment 2 Pushing Demand Back to The Edge… 3 …Forcing Changes in Network Architecture…Resources Moving Back to Devices 4 …Driving Strong Growth in Edge Server Deployment COST ADOPTION SCALE EFFICIENCY TRADITIONAL
Slide 13: Colony Grows at the Edge: DataBank + zColo
Colony Grows at the Edge: DataBank + zColo zColo Acquisition Transforms the DataBank Platform Scaled Pro Forma Footprint ▪ DataBank emerges as a leading U.S. EDGE colocation operator for hyperscale, Pro Forma technology and content customers Combined ▪ zColo adds a diverse mix of strategically-impor
Slide 14: DataBank + zColo Value Creation
DataBank + zColo Value Creation zColo acquisition is highly accretive to the DataBank investment zColo Transaction Overview zColo’s Accretive Impact Peer Strong collocation ▪ Purchase Price: $1.4B EBITDA leasing & new Multiple(1) DataBank greenfield locations ▪ Equity Investment of $720M Acq. EBITDA
Slide 15: Executing On A Converged Digital Ecosystem
Executing On A Converged Digital Ecosystem Strategic investments enable DataBank customers access to Edge connectivity and the entire Colony digital ecosystem From a scaled national footprint with onramps …to the “far Edge” with modular data centers at to global internet traffic… the foot of cell to
Slide 16: Colony 2.0: Delivering on the Digital Transformation
3 Colony 2.0: Delivering on the Digital Transformation 16
Slide 17: Digital Transformation
Digital Transformation Executing a strategic plan to rotate the balance sheet and redeploy capital into digital infrastructure Where We Were Where We Are Today Where We’re Going Legacy Colony Transitioning into Digital Digital Infrastructure Diversified REIT managing industrial, healthcare and hospi
Slide 18: Colony 2.0 Playbook: Promises Made…
Colony 2.0 Playbook: Promises Made… Management’s commitment to investors De-Lever: Invest in High- Harvest Legacy Deliver Address Debt Quality Digital Asset Value – Core Digital Maturities and Assets Streamline the Growth Enhance Liquidity Organization 18
Slide 19: Extending Maturities, Maximizing Liquidity
Extending Maturities, Maximizing Liquidity Next Corporate Debt Maturity 2023(1) Significant Liquidity for Digital Transformation Year end liquidity forecasted to increase from a range of $625-725M to $650-750M on favorable outlook for 4Q20 OED monetizations +$290M -$370M 2025 2025 Exchangeable 2021
Slide 20: Continuing Progress On Asset Rotation
Continuing Progress On Asset Rotation Key 2H 2020 Highlights Demonstrates Ability to Deliver The Digital Transformation Announced sale of Hospitality Business DataBank Acquisition of zColo INVEST IN DIGITAL ▪ $2.8B transaction value ▪ $1.4B acquisition led by Colony Capital ▪ Reduces consolidated de
Slide 21: Rapid Digital Transformation in AUM
Rapid Digital Transformation in AUM 4% 32% 45% 2018 2019 TODAY 2023 55% 68% 96% 100% Legacy Colony AUM Digital AUM 21
Slide 22: Investment Management FEEUM Growth
Investment Management FEEUM Growth 33% growth in digital FEEUM in first 10 months of 2020…far exceeding our 15% guidance for the year High Quality Relationships and Fees Exceeding Expectations ▪ Leveraging long-standing relationships built on success ▪ Zayo (1Q20): Landmark $14.3B take-private added
Slide 23: Digital Earnings Continue to Increase Quarter over Quarter
Digital Earnings Continue to Increase Quarter over Quarter Core Digital Revenues(1) Consolidated Digital FRE / Adjusted EBITDA(1) ($ in millions) ($ in millions) Digital Operating Digital IM Digital Operating Digital FRE Combined Margin $118.7 $54.5 $20.1 $8.9 Q/Q Q/Q $62.7 $25.9 $20.7 $98.6 $9.3 $4
Slide 24: Progress Towards 2023 Targets
Progress Towards 2023 Targets Investment Management Digital Fee Revenues1 Digital IM FRE1 Digital IM revenue and FRE is 20-30% $200M 30-40% $110M RANGE ANNUAL GROWTH ANNUAL GROWTH RANGE anticipated to grow rapidly as Colony $80M expands the magnitude and scope of its $150M investment products Invest
Slide 25: CLNY Update: Promises Made, Promises Kept
CLNY Update: Promises Made, Promises Kept Finalized key corporate initiatives and continued to deliver on digital transformation De-levered - Finalized Key Investing in High-Quality Harvest Legacy – Delivering on Corporate Initiatives Digital Assets Streamline the Organization Core Digital Growth ▪
Slide 26: The Colony Investment Case
4 THE COLONY INVESTMENT CASE Why Own CLNY? 26
Slide 27: Core Highlights to the Colony 2.0 Investment Thesis
Core Highlights to the Colony 2.0 Investment Thesis Significant Opportunity in Powerful secular tailwinds driving digital infrastructure investment. CLNY well Digital Infrastructure positioned for emerging digital themes: convergence, international, edge Deep and Experienced Alignment with the premi
Slide 28: Massive Secular Tailwinds Drive $1.1 Trillion Spend in 5G
Massive Secular Tailwinds Drive $1.1 Trillion Spend in 5G Without technology, “social distancing” would have meant isolation. Mobile is keeping us connected Global Mobile Data Usage Global Mobile Capex Global mobile data usage expected to grow almost 4x by 2025, driven by $1.1 trillion Global Mobile
Slide 29: The Total Addressable Digital Infrastructure Market Keeps Growing
The Total Addressable Digital Infrastructure Market Keeps Growing Digital Colony’s projected deployment of $2.5B per year represents 1% of Digital Infrastructure TAM $179.2 New Fiber 39M Route Miles Deployed1 $241B $21.3 $13.5 87K New Towers Built Digital Infrastructure Equity Activity ($378B total
Slide 30: The Leading Investment Team in Global Digital Infrastructure
The Leading Investment Team in Global Digital Infrastructure REVAMP OF SENIOR MANAGEMENT Leading transformation to Donna L. Hansen Marc Ganzi Jacky Wu Ben Jenkins Justin Chang Karren Fink Kevin Smithen Severin White Colony 2.0 Global Head of Global Head of Strategy Chief Administrative Chief Executi
Slide 31: Colony's Differentiated Strategy
Colony’s Differentiated Strategy We operate across the digital A Converging Digital Ecosystem ecosystem FROM DEVICES THROUGH THE CORE TO THE CLOUD AND BACK ▪ Digital infrastructure is converging IOT Cloud Data ▪ Customer solution provider Center ▪ Flexibility to evolve with opportunity set HEALTHCAR
Slide 32: Colony Continues to Deliver on Our Commitments
Colony Continues to Deliver on Our Commitments Commitment YTD Highlights Future Paid down 2021 converts, issued $300M Address Near-Term Corporate Debt Maturities and Enhance Liquidity of new 2025 converts. Amended revolver COMPLETED to clear Path-to-Digital Deployed over $530M between Another signif
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended Three Months Ended (In thousands) September 30, 2020 June 30, 2020 September 30, 2019 (In thousands) September 30, 2020 June 30, 2020 CLNY Share of Consolidated Revenues Digital Operating Adjusted EBITDA Determined as Follows Total Revenues $316,677 $286,7
Slide 34: Important Note Regarding Non-GAAP Financial Measures
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 utilized
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