Slide 1: Earnings Presentation 4Q 2021
1 EARNINGS PRESENTATION 4Q 2021 F e b r u a r y 2 4 , 2 0 2 2
Slide 2: Forward-looking statements
2 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 m
Slide 3: Agenda
3 AGENDA 1. 2021 Year in Review 2. Financial Results 3. 2022 The Year Ahead 4. Wrap-Up 5. Q&A
Slide 4: 2021 Year in Review
4 1 2021 YEAR IN REVIEW
Slide 5: 2021 A Year of Results
5 2021 A YEAR OF RESULTS CEO 2021 Checklist Finished The Mission (Rotation To Digital) 100% rotated, ahead of plan Enhanced Corporate Capitalization Successful Rebrand to DigitalBridge (DBRG) DBRG is the Partner of Choice to institutional capital in the sector DBPII exceeded original target clos
Slide 6: 2021 Year in Review – Finished the Mission
6 2021 YEAR IN REVIEW – FINISHED THE MISSION In 2021, new management finished successfully rotating over $78B in AUM, completing its ‘diversified to digital’ transformation in less than three years. As we ‘finished the mission’, we relaunched as DigitalBridge - the leading global digital infrastruct
Slide 7: Legacy Asset Sales – Fueling the Next Phase
7 LEGACY ASSET SALES – FUELING THE NEXT PHASE DigitalBridge completed the announced internalization of Brightspire (fka Colony Credit Real Estate) for which DigitalBridge received $102M. Subsequent to the internalization, DBRG sold 9.5M shares generating ~$82M in net proceeds DigitalBridge completed
Slide 8: 2021 Capital Formation Highlights – DBP II
8 2021 CAPITAL FORMATION HIGHLIGHTS – DBP II In 2021, DigitalBridge reaffirmed its position as the partner of choice to institutional investors looking to build exposure to the resilient, growing digital infrastructure asset class with the successful closing of DBPII at $8.3B, 30% ahead of its origi
Slide 9: 2021 Activity and 50%+ Increase in AUM
9 During 2021 we continued to source attractive investments and grow our digital asset base, exceeding $45B in assets. Our investor- operator model allows us to quickly transform and scale DBRG portfolio companies. DIGITALBRIDGE WAS VERY ACTIVE IN 2021 WITH A 50%+ INCREASE IN AUM DigitalBridge and C
Slide 10: Building the Team
10 2020 Digital Infra Head Count - 79 During 2021 DigitalBridge continued to build the team, reinforcing our position as the leading global digital infrastructure firm. Digital board members Senior executives Operating partners/Advisors Significant office expansions Expanding global invest
Slide 11: 2021 Financial Results
11 2 2021 FINANCIAL RESULTS
Slide 12: 4Q 2021 Financial Overview
12 4Q 2021 FINANCIAL OVERVIEW NOTE: All $ in millions except per share & AUM 4Q20 3Q21 4Q21 Y/Y% Consolidated Revenues $25.2 $53.8 $59.9 +137% Consolidated FRE $4.6 $31.4 $32.5 +610% DBRG Pro-Rata Share of Revenue $17.4 $37.0 $39.9 +130% DBRG Pro-Rata Share of FRE $2.1 $20.7 $21.5 +948% Consolidated
Slide 13: 2021 Year End Financial Overview
13 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 14: Digital Earnings Summary
14 DIGITAL EARNINGS SUMMARY (1) Includes Digital Operating and Digital Investment Management segments. Excludes Corporate and Other segment. (2) Digital IM includes $8.1M and $11.7M in 4Q21 and 3Q21, respectively, of catch-up fees earned, which are customary fees paid on newly raised 3rd party capit
Slide 15: Stabilized Growth
15 $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 16: Corporate Clean Up
16 CORPORATE CLEAN UP Since new management assumed leadership 18 months ago with a commitment to de-lever, debt has come down from $6.7B to $1.4B, an 80% reduction. Hotel Sale Other Equity & Debt Sale Wellness Infra Sale Digital Acquisitions (1) NEW LOWER DBRG BORROWING COSTS LONGER-DURATION FINANCI
Slide 17: Introducing 2022 Guidance
17 $33 $79 $120 2020 2021 2022E INTRODUCING 2022 GUIDANCE Digital IM DigitalBridge expects Digital IM FRE to continue strong growth trajectory, with midpoint FRE guidance of $120M, up over 50%, normalized for 1x catch-up fees in 2021. * $120 Guidance Midpoint $108 As Reported 1x Catchup Fees1 Digita
Slide 18: Guidance Updates
18 2022 2023 2025 ($ in Millions) NEW Previous Update Previous Update Digital IM Fee Revenue $190 - $200M $180 - $230M $220 - $260M $240 - $300M $270 - $330M Digital IM FRE (earnings) $115 - $125M $110 - $140M $130 - $160M $140 - $200M $165 - $215M Average (mid) / Ending FEEUM (Implied) $21B / $22-2
Slide 19: 2022: The Year Ahead
i, 2022: The Year — . / 4 32 A wa
Slide 20: Key Global Factors in the Year Ahead
20 KEY GLOBAL FACTORS IN THE YEAR AHEAD Macro Environment Secular Backdrop DIGITAL INFRASTRUCTURE : Global Investors See Resilient & Growing Demand Emerging Use Cases – AI, IOT, 5G Global Webscalers Ramping Capex Secular Tailwinds Behind Mobile/ Internet Connectivity DigitalBridge is well positioned
Slide 21: DBRG 2022 Thematic: Time to Build
21 DBRG 2022 THEMATIC…TIME TO BUILD With The Transition complete1…it’s TIME TO BUILD, working with 4 key DigitalBridge constituents. We believe this will be a key catalyst for new proprietary deals, continued strong capital formation, and continuing to extend our ecosystem. “Follow the Logos” our gu
Slide 22: Digital Investment Management Continues to Scale
22 DIGITAL INVESTMENT MANAGEMENT CONTINUES TO SCALE DigitalBridge is focused on extending its franchise in key adjacent digital infrastructure verticals, including: Credit, Core, and Ventures. New Strategies CREDIT Ability To Leverage Existing Relationships Strong Investor Interest Big TAM Proprieta
Slide 23: A Full Stack Digital Infrastructure Manager
23 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 anticipated annual global capex that enables us to pair capital to the right risk-adjusted opportunity. Ability
Slide 24: The Credit Opportunity
24 THE CREDIT OPPORTUNITY Institutional private credit portfolios are underexposed to key growth sectors in the economy. DigitalBridge is uniquely positioned as a value-add solution provider to companies in the digital ecosystem. Ability To Leverage Existing Relationships Strong Investor InterestBig
Slide 25: The Core Opportunity
25 THE CORE OPPORTUNITY A new vertical built to invest in long-duration, predictable-return strategies that leverage DigitalBridge’s global strategic customer relationships and deal sourcing capabilities. Long-duration contracts, inv-grade counterparties Cash-yield contribution Developed marke
Slide 26: The Ventures Opportunity
26 THE VENTURES OPPORTUNITY 5G / Next- Gen Networks Edge & Cloud Platforms Smart Cities & Smart Buildings Internet of Things (IoT) Digital Infrastructure The Physical Layer Consumption Layer Content & OTT Media Consumer Apps & Services Devices & Consumer Hardware Towers Small Cells Data Centers Edge
Slide 27: The 2022 Opportunity Roadmap at DBRG
27 THE 2022 OPPORTUNITY ROADMAP AT DBRG NORTH AMERICA LATAM BUY BUILD Towers Data Centers Fiber Small Cells Edge Infrastructure vsBUY BUILD BUY BUILD Towers Data Centers Fiber Small Cells EUROPE ASIA BUY BUILD Towers Data Centers Fiber Small Cells Edge Infrastructure BUY BUILD Towers Data Centers Fi
Slide 28: Our Commitment to Customers on a Global Scale
28 OUR COMMITMENT TO CUSTOMERS ON A GLOBAL SCALE DigitalBridge has committed $7.8 billion USD of growth capex to support our customers. DBRG has shovels in the ground on five continents, across all four core verticals of digital infrastructure. 2022 GROWTH CAPITAL $2.2B EUROPE ASIALATAMNORTH AMERICA
Slide 29: Wrap-Up
29 4 Wrap-Up
Slide 30: The DBRG Investment Case
30 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 31: DBRG Positioned to Hit $100B in AUM
31 DBRG POSITIONED TO HIT $100B IN AUM WITHIN NEXT 5 YEARS Global Private Infrastructure AUM is estimated by Preqin to 2X over the next 5 years, reaching $1.9TR, overtaking real estate as the largest real asset class Investors are under allocated to Digital Infrastructure…AND we are leaders in the s
Slide 32: 2022 CEO Priorities: Time to Build
32 2022 CEO PRIORITIES: TIME TO BUILD CEO 2022 Checklist Secular Tailwinds Around Connectivity – Big Growing TAM The Leading Management Team 25+ years Investing and Operating Digital Assets Converged Vision with Exposure to Entire Digital Ecosystem GOALS REMAIN UNCHANGED Focus on realization of high
Slide 33: Q&A Session
coutttuattlll) DIGITALBRIDGE Q&A SESSION
Slide 34: Non-GAAP Reconciliations
34 NON-GAAP RECONCILIATIONS ($ 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 35: Non-GAAP Reconciliations
35 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 36: Important Note Regarding Non-GAAP Financial Measures
36 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 37: DigitalBridge
DIGITALBRIDGE