Digitalbridge Group, Inc. · NYSE:DBRG
Digitalbridge — Colony Capital — Q1 2021 Earnings Presentation
27 slides from Digitalbridge's earnings presentation, May 6, 2021
Slide 1: First Quarter 2021 Earnings Presentation
1 FIRST QUARTER 2021 EARNINGS PRESENTATION May 6, 2021
Slide 2: Disclaimer
2 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
Slide 3: Agenda
3 Agenda # Section 1 Q1 Highlights 2 Financial Results 3 Executing the Digital Playbook 4 Q&A
Slide 4: 1Q 2021 Highlights
ColonyCapital 1 1Q 2021 Highlights
Slide 5: 2021 Finish the Mission
5 2021 Finish the Mission Harvest Legacy & Streamline Organization Continue Investing in High-Quality Digital Assets Further Expand Digital Investment Management Last year, we stabilized the base and delivered on our commitments. In 2021, we are focused on “Finishing The Mission” as we enter the fin
Slide 6: Harvest Legacy & Streamline Organization
6 Harvest Legacy & Streamline Organization CLNY has already made significant progress towards its 2021 targets with Digital AUM now at 70% of total AUM as key strategic legacy monetizations have been executed CLNC Management Contract Internalized Tolka Irish NPL Portfolio $350m sale, $100M net proce
Slide 7: 2021 Head Start: Investing in High-Quality Digital
7 Mexico United States, CanadaUnited States 2021 Head Start: Investing in High-Quality Digital Four significant investments already in-flight out of DCP II with projected commitments of $3 to $4 billion, leveraging Digital Colony’s deep operating expertise and global presence 5 Colombia, Peru & Chil
Slide 8: Continuing to Grow Our Digital IM Franchise
8 Continuing to Grow Our Digital IM Franchise Long-term contracted fee streams drive stable, predictable earnings that compound over time, similar to our digital operating revenues Q1 Update +$830M New Capital Formation +30% YOY Note: Individual components of graph are not to scale
Slide 9: Complete transformation of the business formerly known as Colony Capital
9 Complete transformation of the business formerly known as Colony Capital Significant Changes Since Last May Annual Meeting AlignmentESGLeadership Governance Wholesale change in board composition …more focused …more diverse …more digital Refresh - 50% of Board new in past year First independe
Slide 10: Profound Governance Changes
10 2019 Profound Governance Changes In the past year, the board has been refreshed to be more diverse, right-sized and more focused on the new digital mission Focused board reduced from 12 to 10 members Significant increase in digital expertise, 50% of board with tech/telco backgrounds, augments
Slide 11: Financial Results
ColonyCapital 2020 Financial Results
Slide 12: 1Q21 Summary Results
12 1Q21 Summary Results Note: Historical comparative figures have been recast to exclude the results of discontinued operations except for AUM and legacy monetizations. (1) Core FFO has been redefined to better align with our digital transformation and notably excludes realized gains or losses (exce
Slide 13: Digital Earnings Summary
13 $45.1 $127.5 $189.2 $19.2 $24.4 $29.5 $64.3 $151.9 $218.7 1Q20 4Q20 1Q21 Digital Operating Digital IM Consolidated Digital Adjusted FRE + EBITDA(1)Core Digital Revenues(1) Digital Earnings Summary Consolidated Digital Revenues increased to $219M in 1Q21, driven primarily the zColo acquisition in
Slide 14: Simplification of Cost Structure and G&A
14 As part of the Digital Transformation, the Company has completed strategic divestitures and undergone cost rationalization efforts that have significantly decreased G&A to operate more efficiently Simplification of Cost Structure and G&A Total G&A(1) Non-Digital, $205 Non-Digital, $169 Non-Digita
Slide 15: Annualized Digital Revenues and Earnings
15 $40M $38M $40M $41M $62M 1Q20 2Q20 3Q20 4Q20 1Q21 $76M $79M $85M $100M $124M 1Q20 2Q20 3Q20 4Q20 1Q21 $36M $34M $62M $84M $131M 1Q20 2Q20 3Q20 4Q20 1Q21 $13M $13M $28M $39M $58M 1Q20 2Q20 3Q20 4Q20 1Q21 Increased FEEUM by $6B during 2020, with the majority raised in 4Q20; this success in capital
Slide 16: 2021 Guidance and 2023 Targets
16 $39M $62M $80M $90M $85M $110M 2020 Actual 1Q21 Run-Rate 2021 Guidance 2023 Targets 1 1 $84M $124M $140M $160M $150M $200M 2020 Actual 1Q21 Run-Rate 2021 Guidance 2023 Targets $23M $58M $53M $175M $58M $225M 2020 Actual 1Q21 Run-Rate 2021 Guidance 2023 Targets $54M $131M $125M $400M $135M $500M 2
Slide 17: Executing the Digital Playbook
17 Executing the Digital Playbook3
Slide 18: Digital Operating – Overview
18 Digital Operating – Overview Colony is experiencing strong momentum at its two primary digital operating businesses DataBank and Vantage SDC • Dec 2020, $1.4 billion acquisition of zColo led by Colony Capital, portfolio of 44 data centers from Zayo • Oct 2020, $30 million strategic investment in
Slide 19: Strong Digital Operating Performance
19 1.3% 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 Churn % $23m 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 Bookings Strong Digital Operating Performance Note: Please reference the supplemental financial disclosures for the definition of Bookings and Quarterly Churn Strong Secular Tailwinds Increasing Cloud DemandScalable Ext
Slide 20: Performance Drives Capital Deployment
20 Growth Capex 67% Maintenance Capex 4% Distributions 29% Performance Drives Capital Deployment Note: Please reference the supplemental financial disclosures for the definition of Adjusted EBITDA Number of Datacenters Total Rentable Square Footage (k) 19 76 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 411 1,792 1
Slide 21: Pioneering Digital Infrastructure Financings Flow Through to CLNY Shareholders
21 Pioneering Digital Infrastructure Financings Flow Through to CLNY Shareholders Digital Operating – Impact of Strategic Finance Key pillar of Digital Colony Playbook, Strategic Finance, adding tangible value to DataBank and Vantage Stabilized Data Centers +$50M CLNY Share of Incremental 5Yr Cash F
Slide 22: The Digital Colony Playbook and 2023 Build Up
22 $53m-$58m 2021 Guidance Core Organic Growth New Builds New Platforms, M&A 2023 Guidance 4-6% YoY 2-3% YoY $175m-$225m Cash Revolver OED Wellness CLNC +$2.0B Dry Powder THE DIGITAL COLONY PLAYBOOK Deal Underwriting Strategic Finance Asset Management Proprietary Deal Flow 17.5-20x Entry Multipl
Slide 23: Q&A Session
23 4 Q&A Session
Slide 24: Non-GAAP Reconciliations
24 Non-GAAP Reconciliations Total CLNY Core Digital Segments(3) for the Three Months Ended for the Three Months Ended Core Funds from Operations (in thousands, except per share) March 31, 2021 December 31, 2020 March 31, 2020 March 31, 2021 December 31, 2020 March 31, 2020 Net income (loss) attribut
Slide 25: Non-GAAP Reconciliations
25 Non-GAAP Reconciliations Three Months Ended (In thousands) March 31, 2021 December 31, 2020 March 31, 2020 CLNY Share of Core Digital Revenues Total Revenues $218,700 $151,921 $64,506 Less: Non-controlling interest (166,102) (114,360) (35,942) CLNY pro-rata share of Revenues $52,598 $37,561 $28,5
Slide 26: Important Note Regarding Non-GAAP Financial Measures
26 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 27: ColonyCapital
ColonyCapital