Digital 9 Infrastructure Plc · LSE:DGI9
Digital 9 Infrastructure — Investor Presentation (February 2022)
29 slides from Digital 9 Infrastructure's investor presentation, Feb 2, 2022
Slide 1: Presentation materials
Presentation materials February 2022
Slide 2: Agenda and Presentation Team
Agenda and Presentation Team Placing summary 3 THOR JOHNSEN Head of Digital Infrastructure Thor is the Fund Manager for D9. He has over 15 years’ experience in infrastructure investment Highlights and Timeline 4 and over 22 years in M&A, deploying over $3 billion, including as head of infrastructure
Slide 3: Digital 9 Infrastructure Plc Overview
Digital 9 Infrastructure Plc Overview Pure play exposure to a critical and growing £400 billion asset class: Digital Infrastructure, listed on the LSE with ticker DGI9 Platform-driven approach already being proved in subsea fibre and green data centres, with expansion and capital deployment Portfoli
Slide 4: D9 Timeline
D9 Timeline £845m raised, £693m deployed3, £500m pipeline £500m £50m2 £69m near-term pipeline £300m £175m Investment into EMIC-1, 1.5p per share 1.5p per share Follow-on investment in (<6 months), part of a Investment Trust IPO on Placing and retail a new subsea fibre system Dividend for Dividend fo
Slide 5: Investment Strategy
Investment Strategy Critical infrastructure for our connected world, with long-term, contracted, inflation-linked income Pro forma portfolio composition: Portfolio plus Immediate pipeline Data centres Subsea fibre “Backbone of the Internet” 30% 26% Only 10% of enterprise IT spending has moved to the
Slide 6: ESG is core to D9
ESG is core to D9 E S G Aqua Comms is supporting NYU research into the carbon efficiency of subsea cables and maximising the environmental sustainability of digital infrastructure Our purpose is at the heart of our investment strategy, which we Aqua Comms has partnered with the UN’s Taskforce on SMa
Slide 7: Portfolio locations
Portfolio locations Asset Investment 4: Data Centre Asset Investment 3: Data Centre Asset: SeaEdge UK1 Investment: £15m Location: UK AEC-2 IPO pipeline asset?: Yes Asset: Verne Global Investment: £231m NSC Asset Investment 1: Location: Nordics CC-2 Subsea Fibre IPO pipeline asset?: Yes AEC-1 CC-1 AE
Slide 8: Asset investment 1: Subsea fibre backbone to the internet
Asset investment 1: Providing the backbone to the internet in the Northern Hemisphere Total Current and # Asset Operating Length system Fibre Fibre Pairs expected data transmission Landing points 20,000km 100% >90% since (km) Pairs owned capacity per revenues from (“FPs”) FP (Tbps) of subsea fibre a
Slide 9: Asset investment 2: EMIC-1
Asset investment 2: EMIC-1 Extending D9’s network to Asia, connecting 3 billion people Overview 30,000km+ 3 • In July 2021 D9 entered into definitive agreements to deploy continents connected by D9’s £50 million into the development of a new intercontinental fibre subsea and terrestrial fibre fibre
Slide 10: Asset investment 3: Verne Global
Asset investment 3: Shifting energy-intensive data processing to areas of abundant green energy Overview £231m investment into an operational data centre platform located in Iceland specialising in high performance computing (HPC), one of the fastest growing subsectors in data centres, with growth r
Slide 11: Asset investment 3: Low cost, sustainable, scalable
Asset investment 3: Low cost Sustainable Scalable Delivering energy-intensive High Iceland’s climate provides a Considerable headroom for further Performance Computing (HPC) cost geographical advantage in sustainability expansion at Verne Global’s 40-acre effectively in continental Europe is 100% re
Slide 12: Asset investment 3: Follow-on investment of $93m
Asset investment 3: Follow-on investment of $93m to fund expansion during 2022 $93m investment in Verne Global over the next 12 months to fund the expansion of capacity by a further 20.7 MW Expansion includes completion of a new 8.2 MW data hall and a further 12.5 MW of repurposed capacity to meet e
Slide 13: Asset investment 4: SeaEdge UK1
Asset investment 4: SeaEdge UK1 Northern England hub connecting America and the Nordics Overview Aqua Comms cable North Sea Connect landing in SeaEdge UK1 £15m investment into an operational data centre located in Newcastle on the UK’s largest data centre campus Leased to and operated by Stellium Da
Slide 14: Portfolio: Contract terms and inflation linkage
Portfolio: Contract terms and inflation linkage Recurring Revenue by Contract Length SeaEdge UK1 100% 100% 100% 7.3 years 75% 75% 75% 50% 50% 50% Weighted average contract term for recurring revenue 25% 25% 25% across the portfolio 0% 0% 0% 1 – 3 years 3 – 5 years 5 – 10 years 10+ years 1 – 3 years
Slide 15: Asset investment 5: TETRA Ireland
Asset investment 5: TETRA Ireland Exclusive, long-standing operator of public safety wireless communication networks in Ireland Overview Conditional agreement to acquire a majority (56%) stake in TETRA Ireland for ~600 approximately €76m, the exclusive operator of public safety wireless sites across
Slide 16: Near-term pipeline: Illustrative asset
Near-term pipeline: Illustrative asset Enabling mission-critical services to the local population Asset overview Mission-critical wireless infrastructure providing 99%+ population coverage Fast growing, yielding IOT platform serving the utilities sector, opportunity to expand into other B2B Strong v
Slide 17: Indicative Portfolio: Combining existing portfolio with new opportunities
Indicative Portfolio: Combining the existing portfolio with new opportunities Recurring Revenue by Contract Length Immediate Pipeline1 D9 Indicative Portfolio2 100% 100% 100% 7.6 years 75% 75% 75% Weighted average 50% 50% 50% contract term for recurring revenue 25% 25% across the indicative 25% port
Slide 18: Indicative portfolio including opportunities in immediate pipeline
Indicative portfolio including opportunities in immediate pipeline D9 pro forma GAV by sector1 Implied acquisition multiple – proforma for leverage and platform growth Subsea Data centre 26% 30% Adding £300m of debt Wireless reduces the average 44% multiple of the pro forma fund to 9.4x Investing an
Slide 19: Illustrative portfolio cashflow per share
Illustrative portfolio cashflow per share 40MW Verne £300m debt expansion deployed @11.2x Immediate pipeline Tetra Ireland Cashflow as at 30 Jun 21 SeaEdge UK1 Tetra Ireland Immediate pipeline £300m debt deployment 40MW Verne expansion Total This slide is illustrative only and shows potential routes
Slide 20: Portfolio: Illustrative valuation using comparable multiples
Portfolio: Illustrative valuation using comparable multiples EBITDA multiples Illustrative D9 NAV, reaching 150p if using a comparable market multiples methodology Subsea Fibre 50x Verne Global 40x @ Green Mountain multiple 30x 23.1x 20x 11.6x 10x 0x Aqua Comms GCX (legacy Aqua Comms (modern cables)
Slide 21: Pipeline: People, Purpose, Platform
Pipeline: People, Purpose, Platform Not in an No. of Not in an Near term £’m % assets auction process Wider term £’m % No. of auction process £’m Europe assets £’m Data centre 80 16% 3 10 & UK Data centre 322 24% 4 276 Subsea fibre 28 6% 1 28 Subsea fibre2 664 50% 3 364 Terrestrial - - - - Terrestri
Slide 22: Key terms
Key terms The Company Digital 9 Infrastructure plc (Ticker: DGI9) Target dividend 6p per share p.a. payable in year 1, equivalent to 4.5 pence per share for the nine month period from IPO to 31 December 2021. 3.0p per share declared and paid during 2021 relating to the period from IPO to 30 Structur
Slide 23: Digital 9 Infrastructure Plc Overview
Digital 9 Infrastructure Plc Overview Pure play exposure to a critical and growing £400 billion asset class: Digital Infrastructure, listed on the LSE with ticker DGI9 Platform-driven approach already being proved in subsea fibre and green data centres, with expansion and capital deployment Portfoli
Slide 24: Appendix
Appendix DIGITAL
Slide 25: Investment Manager: Triple Point Investment Management LLP
Investment Manager: Triple Point Investment Management LLP Extensive industry and execution experience across the management E S team, Board and portfolio companies G $250bn 180+ Our purpose is at the heart of our investment strategy, which we of digital infrastructure transaction experience employe
Slide 26: ESG alignment
ESG alignment Our ESG policy was guided by relevant frameworks, D9’s Memberships regulations, best practices and global initiatives Triple Point is a member of the Sustainable Digital Infrastructure Alliance (SDIA) which guides our data centre net-zero expectations and assessment D9 via Aqua Comms i
Slide 27: Global Leading Expertise in Digital Infrastructure
Global Leading Expertise in Digital Infrastructure $250 billion of digital infrastructure transaction experience Operating Partners Alan Harper Board of Directors 12 years at Vodafone Plc including as Group Strategy Director, led c.$200bn of acquisitions. Co-founded/CEO Eaton Towers, a leading tower
Slide 28: Board of Directors
Board of Directors John (Jack) Waters Jr. – Independent Chairman Jack Waters has significant experience in the digital infrastructure sector with an executive career spanning over 30 years. Most recently, Jack was President of Zayo Networks and Chief Operating Officer at Zayo Group Holdings Inc (“Za
Slide 29: Disclaimer
Disclaimer THIS DOCUMENT IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION IN CONNECTION WITH THE PROPOSED ADMISSION OF NEW ORDINARY SHARES IN THE SHARE CAPITAL OF DIGITAL 9 INFRASTRUCTURE PLC (“D9") ON THE SPECIALIST FUND SEGMENT OF THE MAIN MARKET OF THE LONDON STOC
Digital 9 Infrastructure — Investor Presentation (February 2022) on 6ix