Digital 9 Infrastructure Plc · LSE:DGI9
Digital 9 Infrastructure — Investor Day (March 2023)
63 slides from Digital 9 Infrastructure's investor day presentation, March 2023
Slide 1: See Change: Capital Markets Day Presentation
See Change. Digital 9 Infrastructure plc Critical infrastructure for our connected world, with long-term, contracted, inflation-protected income Capital Markets Day Presentation
Slide 2: Introduction
INTRODUCTION Phil Jordan Chair Digital 9 Infrastructure plc 2
Slide 3: Agenda
AGENDA Introduction Phil Jordan, Chair of DGI9 3 14:30-14:40 Portfolio & strategy Arnaud Jaguin, Investment Director, Triple Point 4 14:40-15:00 Verne Global presentation Dominic Ward, CEO of Verne Global 10 15:00-15:30 Aqua Comms presentation Alan Harper, Chair of Aqua Comms 35 15:30-16:00 Coffee b
Slide 4: Portfolio & Strategy
PORTFOLIO & STRATEGY Arnaud Jaguin Investment Director Triple Point Investment Management LLP 4
Slide 5: Journey & Performance Since IPO
JOURNEY & PERFORMANCE SINCE IPO £905m Equity Raised £375m RCF £1,243m Invested3 6p p.a. Dividend Paid 9 high quality digital infrastructure investments to date across our four target subsectors: Subsea fibre, Data Centres, Wireless Networks and Terrestrial Fibre £300m £175m £275m £95m £300m £60m £75
Slide 6: Portfolio KPIs as at December 2022
PORTFOLIO KPIs as at 31 December 2022 Performance against IPO commitments Initial proceeds to be fully invested within 12 months Long-term contracts underpinned by high quality counterparties Diversified portfolio across 4 subsectors Synergies and expanding relationships between assets 10% total sha
Slide 7: Strong, Long-Term Growth Expected Within Digital Infrastructure Sector
STRONG, LONG-TERM GROWTH EXPECTED WITHIN DIGITAL INFRASTRUCTURE SECTOR Demand for the internet – and the infrastructure of the internet – is still Subsector market opportunity strong and growing, despite economic headwinds1 38% Forecast CAGR 2020 - 2026 2,500 Brain of the internet: processing & stor
Slide 8: Acquisition Rationale: Creating Shareholder Value
ACQUISITION RATIONALE: CREATING SHAREHOLDER VALUE Purpose-driven alignment to UN Sustainable Development Goal 9: focusing on connectivity and environmentally sustainable investments Platform Assets Strategic rationale SDG9 parameters Best-in-class expertise and track record in developing and operati
Slide 9: Portfolio Management: Creating Shareholder Value
PORTFOLIO MANAGEMENT: CREATING SHAREHOLDER VALUE Exploring complementary sources of capital to increase capex funding across the portfolio Portfolio expansion Portfolio resourcing Portfolio integration 9 investments and follow on Completed key senior hires Integrated Ficolo Oy and capital deployment
Slide 10: Verne Global Presentation
CAPITAL MARKETS DAY PRESENTATION Dominic Ward Chief Executive Officer Verne Global 10
Slide 11: Portfolio Location & Integration
PORTFOLIO LOCATION & INTEGRATION Data Centre Platform Verne Global Verne Global Finland Iceland Assets: Verne Global Iceland, Verne Global Finland, Verne Aqua Comms Global London Valuation: £517m Elio Networks Verne Global Location: Nordics, UK 1 Arqiva London Subsea Fibre Platform Wireless Platform
Slide 12: History of Verne Global
HISTORY OF VERNE GLOBAL 2007 2008 2011 The idea of Verne Global is born General Catalyst and Novator invest Wellcome Trust invests and construction begins 2012 2013 2014 First customers live and operational Campus capacity doubled following Ultra high density product launched multiple customer wins
Slide 13: Nordic & Metro Data Centre Platform
NORDIC & METRO DATA CENTRE PLATFORM Shifting energy-intensive, latency-insensitive data sets to geographies with low-cost green power Providing critical interconnectivity and low-latency solutions in dense urban centres Sustainable Customer-centric Scalable ICELAND | FINLAND | LONDON 1.2 80%+ 5 “ It
Slide 14: Uniquely Glocal Management Scaling the Platform
UNIQUELY “GLOCAL” MANAGEMENT SCALING THE PLATFORM Highly experienced executive team that has been responsible for billions of dollars and thousands of MWs across the globe Dominic Ward Chief Executive Officer Uniquely “glocal” across Iceland, Tech savvy, highly plugged in with Finland and UK custome
Slide 15: Verne Global Nordic | Metro Strategy
VERNE GLOBAL NORDIC | METRO STRATEGY We are reinventing how the world uses data centres We help our customers take the journey towards digital infrastructure sustainability by enabling them to divide their data and applications between those that justify metro locations and those that can take advan
Slide 16: Verne Global Has Achieved Rapid Expansion
VERNE GLOBAL NORDIC | METRO STRATEGY Verne Global has achieved rapid expansion and is ready for a new phase of growth Building the platform Expanding the platform Capitalising on the market opportunity • Single facility in Iceland • Expansion into Finland and the UK – 5 sites • Leading Northern Euro
Slide 17: The Market Opportunity
THE MARKET OPPORTUNITY Verne Global’s hyper growth underpinned by the recent explosion in High Intensity Compute (“HIC”) demand HIC use cases… …driving specific data centre demands… …leading to the decade of unprecedented growth Artificial intelligence High density Total worldwide HIC spend $m $48bn
Slide 18: The Verne Global Standard
THE VERNE GLOBAL STANDARD Lower Cost More Efficient • We enable our customers to • We bring natural free air cooling Powering the world’s most do a lot more with a lot less. 365 days per year. innovative industries is a mighty • We bring long term stable • Our stable climate means power task. But hi
Slide 19: Lower Cost
Lower Cost We enable our customers to do a lot more with a lot less. We bring long term stable power pricing. We build from the ground up to optimise costs. 19
Slide 20: Lower Cost
LOWER COST Illustrative Annual Data Centre Costs Data Centre Savings of for 1 MW in London and Iceland $9 c.75% $8 Power $7 Infrastructure $6 • Lower power costs, capex, Millions $5 PUE, opex costs $4 • More stable, predictable $3 $2 • We enable our customers $1 to do a lot more with a lot $0 less L
Slide 21: More Efficient
More Efficient We bring natural free air cooling 365 days per year. Our stable climate means power and money isn’t wasted heating or cooling our data centres. 21
Slide 22: More Efficient
MORE EFFICIENT Perfect climate • Perfect temperature range Celsius 15 • ‘Never’ too cold 10 • January average of 0ºC (32ºF) 5 • Warmer in December in Iceland than 0 New York -5 • ‘Never’ too hot Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec • July average of 13ºC (55ºF) Low Power Usage Effectivene
Slide 23: More Sustainable
More Sustainable We bring natural free air cooling 365 days per year. Our stable climate means power and money isn’t wasted heating or cooling our data centres. 23
Slide 24: Market Leading Sustainability Targets
MORE SUSTAINABLE Market Leading 2022 Greenhouse Sustainability Targets Gas Emissions Power Usage Effectiveness Carbon Usage Effectiveness In 2022, Verne Global customers consumed the equivalent Target PUE of 1.15 Target CUE of 0.00 energy of over 10,000 homes, but with the carbon footprint of just 7
Slide 25: More Customer Success
More Customer Success We put customers first. Every time. Nothing makes us happier than seeing them succeed. We back them up with the best customer support you can imagine. 25
Slide 26: The Verne Global Standard
MORE CUSTOMER SUCCESS The Verne Global Standard 100% Customer 24/7/365 Support Net Promoter Score - Satisfaction 100 26
Slide 27: Backed by a Globally Connected Partner Ecosystem: Hardware Partners
BACKED BY A GLOBALLY CONNECTED PARTNER ECOSYSTEM Hardware Partners 100k Teraflops Intel’s AI and HPC architectures underpin some of the world’s Our campus is already home to some of the brightest NVIDIA- most ambitious and transformative projects. Operating at powered research projects in the world,
Slide 28: Service and Development Partners
BACKED BY A GLOBALLY CONNECTED PARTNER ECOSYSTEM Service Partners Origo is a leading Nordic IT Service company that Sensa delivers professional managed services and a Endor offers complete strategic IT consulting and Opin Kerfi enables clients to grow sustainably in a utilizes the ingenuity of its s
Slide 29: Primary Interconnect Hub for Iceland
MORE CUSTOMER SUCCESS Primary interconnect hub for Iceland Reykjavík DANICE to Denmark 29
Slide 30: Latencies
MORE CUSTOMER SUCCESS Latencies Copenhagen 14.9 ms Frankfurt 17.5 ms London Amsterdam Dublin 18.9 ms 17.8 ms 10 ms Paris 21.8 ms Halifax New York 33.7 ms 40.6 ms 30
Slide 31: The Next Decade
The Next Decade Bigger. Better. Bolder. More Verne Global 31
Slide 32: Expanding Campus
THE NEXT DECADE Expanding Campus KEF110 6MW KEF101 16.2 MW KEF201 10.5 MW KEF301 16 MW FUTURE CONSTRUCTION 32
Slide 33: More Verne Global
THE NEXT DECADE More Verne Global Verne Global delivers sustainable data centre solutions that enable organisations to cost-effectively scale their digital infrastructure while reducing their environmental impact. …and the 90:10 rule! Verne Global Finland Verne Global London • D9 acquired Verne Glob
Slide 34: Verne Global at a Glance
VERNE GLOBAL AT A GLANCE Leading Nordic DC platform Key performance indicators • Nordic data centre platform with 5 sites, building at c.6x EV/EBITDA • >200 MW multiples, emitting less than 2% emission of UK/EU data centres • 80% power cost savings • Selling to HPC, hyperscale and large-enterprise c
Slide 35: Aqua Comms Presentation
CAPITAL MARKETS DAY PRESENTATION Alan Harper Chair Aqua Comms 35
Slide 36: Portfolio Location & Integration
PORTFOLIO LOCATION & INTEGRATION Data Centre Platform Verne Global Verne Global Finland Iceland Assets: Verne Global Iceland, Verne Global Finland, Verne Aqua Comms Global London, Valuation: £517m Elio Networks Verne Global Location: Nordics, UK 1 Arqiva London Subsea Fibre Platform Wireless Platfor
Slide 37: History of Aqua Comms
HISTORY OF AQUA COMMS Aqua Comms subsea assets portfolio: Timeline: 7 2014 Aqua Comms is founded 6 2014 Sea Fibre Networks, owner of CC-1, is acquired 5 2016 Construction on AEC-1 is completed Construction of CC-2 and NSC commences. CC-2 provides another route across 2018 the Irish sea whilst NSC li
Slide 38: Subsea Fibre Platform
SUBSEA FIBRE PLATFORM Providing the backbone to the # Asset Operating Length Total system Fibre FPs Terabits per sec Landing points since (km) Pairs (FP) owned per FP internet in the Northern Hemisphere 1 AEC-1 2016 5,534 6 6 20 USA, Ireland and Asia 2 AEC-2 20204 7,622 8 1 20 USA, Ireland, Denmark
Slide 39: D9 Subsea Strategy
D9 SUBSEA STRATEGY Plan for automated international connectivity North Global Connectivity Europe FABRIC layer Services carried over EU(N) ubiquitous global transit North network, built, owned North South Asia America Europe and operated neutrally US(W) US(E) EU(S) Middle US(W) by AquaComms East AS(
Slide 40: Strong Market Growth Across Target Geographies
MARKET OVERVIEW Strong market growth across target geographies Trans-Atlantic Trans-Pacific Europe to India • Largest Trans-oceanic route with forecast • The second largest Trans-oceanic route • Small current market (c.10% size of Atlantic) 30% CAGR in traffic (50% size of Atlantic) with forecast 45
Slide 41: Evolving and Growing Wholesale Customer Base
MARKET & GOTOMARKET Evolving and growing Direct Sales 90% Traditional wholesale customer wholesale customer base Tier 1 OTTs group – eg Meta, Google, Indirect Sales 10% Microsoft, Amazon and Apple Aqua Comms sells: Traditional telcos and indirect Traditional Direct Sales 80% distribution partners –
Slide 42: Aqua Comms at a Glance
AQUACOMMS AT A GLANCE Leading owner and operator of Key performance indicators modern subsea fibre systems • Independent, open access neutral cable operator servicing 7 • 32,000 km of fibre in operation or development subsea cables across the globe1 • 7 subsea cables in operation or development • Se
Slide 43: Arqiva Presentation
CAPITAL MARKETS DAY PRESENTATION Shuja Khan Chief Executive Officer Arqiva 43
Slide 44: Portfolio Location & Integration
PORTFOLIO LOCATION & INTEGRATION Data Centre Platform Verne Global Verne Global Finland Iceland Assets: Verne Global Iceland, Verne Global Finland, Verne Aqua Comms Global London Valuation: £517m Elio Networks Verne Global Location: Nordics, UK 1 Arqiva London Subsea Fibre Platform Wireless Platform
Slide 45: Arqiva: The Leading Enabler of Digital Connected Solutions
ARQIVA – THE LEADING ENABLER OF DIGITAL CONNECTED SOLUTIONS Arqiva represents an attractive opportunity to access the UK and global Owner and sole operator of the UK’s Leader in high growth smart utilities media and smart utilities critical national TV and radio connectivity sectors, with differenti
Slide 46: We Enable Mission-Critical Services in Media Distribution & Smart Utilities
WE ENABLE MISSION-CRITICAL SERVICES IN MEDIA DISTRIBUTION & SMART UTILITIES Our End Markets Media Distribution Smart Utilities Networks FY22 Revenue1 £241m £82m (D9 pro rata) FY22 Functional 74% 42% EBITDA2 Satellite Metering Enterprise Our segments TV (DTT) Radio Digital Platforms Global Media (Dir
Slide 47: Our Strategy
OUR STRATEGY PURPOSE Enabling a switched-on world to flow AMBITIONS Undisputed leader in UK Transition global media UK’s leading smart utilities Innovator of scalable TV and radio broadcast to cloud solutions platform solutions for new connectivity sectors STRATEGIC Customer, industry and Innovation
Slide 48: Media Distribution
Media Distribution 48
Slide 49: Arqiva's Role Across the Media Distribution Chain
MEDIA DISTRIBUTION Arqiva plays a vital role for media platforms across linear and non-linear content Creation Contribution Processing Distribution Transmission Consumption Arqiva Non-Arqiva Primary Secondary Broadcast Activity Activity Compression, Encoding, Format Processing, Encryption Broadcast
Slide 50: UK Media Market Is Thriving
MEDIA DISTRIBUTION UK media market is thriving, underpinned by the PSBs and a vibrant industry ecosystem Arqiva’s operations and its customers are fundamental to the UK TV and Radio broadcast market is worth £15bn p.a. UK media ecosystem Arqiva delivers TV to 4 out of 5 households in the UK with mor
Slide 51: DTT and Radio Platforms Are Resilient
MEDIA DISTRIBUTION DTT and radio platforms are resilient, set to endure to beyond 2040 Video Consumption Other % of avg. daily viewing, 15% all ages, 2022¹ by Platform¹ Linear Viewing and DTT Continue to Thrive SVOD 11% Broadcast TV 58% Youtube 16% TV Advertising Spend² £bn TV DTT is Highly Effectiv
Slide 52: Long-Term Outlook Underpinned by Economic, Regulatory and Political Factors
MEDIA DISTRIBUTION Long-term outlook is underpinned by Economic Advantage Supportive UK Government economic, regulatory • Transmission costs represents a low % of • DCMS remains very supportive of public service total broadcaster spend broadcasting and political factors • DTT is half the effective c
Slide 53: Stable Blue-Chip Customers with Long-Term Contracted Business
MEDIA DISTRIBUTION Our customers are stable ‘blue-chips’ with long-term contracted business Blue-Chip Key Customers Long-Term Inflation-Linked Contracts Renewal Track UK Public Service Business Unit Typical Contract Length Inflation Linkage UK Commercial TV UK Commercial Radio Record1 Broadcasters T
Slide 54: Smart Utilities Networks
Smart Utilities Networks 54
Slide 55: Unique Communications Solution for the Utilities Industry
SMART UTILITIES NEWORKS Arqiva provides a unique communications solution for the utilities industry Domestic Smart Communications Network Headend Data Provision Utilities Enterprise Usage Meters (Radio Frequency) Arqiva activity Water Non-Arqiva activity Data Aggregation, Firewall Security and Data
Slide 56: Utilities Networks Subject to Regulated Incentives and Controls
SMART UTILITIES NEWORKS Industry Overview Contracting Environment Utilities networks are • Clear RFP processes • Served by geographically defined water companies, integrated across subject to the water supply chain − In line with 5-year AMP investment periods and frameworks regulated • 24 water comp
Slide 57: Efficiency and Sustainability Goals Fuelling Smart Metering Demand
SMART UTILITIES NEWORKS Efficiency and sustainability goals are fuelling smart metering demand Smart metering is viewed positively by the Utilities businesses face Leading to significant opportunities government, regulators and consumers alike: challenges on: for Arqiva across water and energy: Deli
Slide 58: We Create Significant Value for Shareholders, Customers and the UK
WE CREATE SIGNIFICANT VALUE FOR SHAREHOLDERS, CUSTOMERS AND THE UK £323m £3.4bn Revenue1 Ongoing cost Sustainable, Value to our Long-term c. 76% optimisation investment-grade Shareholders £177m contracted order Cash conversion3 programme capital structure book2 EBITDA1 c4 million smart 98.5%+ Over 1
Slide 59: Arqiva at a Glance
ARQIVA AT A GLANCE The leading enabler of digital connected solutions Key performance indicators • Critical national broadcasting infrastructure serving c.98.5% of • Strong profitability and cash conversion: the UK population − FY22 revenue of £323m and 55%1 EBITDA margin • Leading provider of smart
Slide 60: Closing Remarks
CLOSING REMARKS Ben Beaton Fund Manager Triple Point Investment Management LLP 60
Slide 61: Closing Remarks
CLOSING REMARKS Strong growth pipeline ahead, Strong portfolio performance, and Significant progress on minority reflected in £223m capex pipeline annual returns above target stake syndication for 2023 Op. cash dividend cover to Agreed term sheet for $100m Reaffirming target aggregate increase progr
Slide 62: Q&A Session
Q&A SESSION Q&A Session All presenters 62
Slide 63: Thank You for Attending
U2? INFRASTRUCTURE THANK YOU FOR ATTENDING