Digitalbridge Group, Inc. · NYSE:DBRG
Digitalbridge — Q3 2021 Earnings Presentation
32 slides from Digitalbridge's earnings presentation, Nov 4, 2021
Slide 1: Earnings Presentation 3Q 2021
1 EARNINGS PRESENTATION 3Q 2021 N o v e m b e r 4 t h , 2 0 2 1
Slide 2: Disclaimer
2 DISCLAIMER This presentation may contain forward-looking statements within the meaning of the federal securities laws, including statements related to our digital transformation. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated event
Slide 3: Agenda
3 AGENDA 1. 3Q Highlights 2. Financial Results 3. Executing the Digital Playbook 4. Key Takeaways 5. Q&A
Slide 4: 3Q Highlights
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Slide 5: Finish the Mission: Asset Rotation to Digital
5 CORPORATE UPDATE – FINISH THE MISSION Relaunched DigitalBridge last quarter as a leading global digital infrastructure firm; with the recently announced sale of the wellness business, new management will have successfully rotated over $73B in AUM ‘from diversified to digital’ in less than three ye
Slide 6: DBRG Strategic Roadmap: Now Entering Stage II
6 DBRG STRATEGIC ROADMAP…NOW ENTERING STAGE II Stage I The Transition (2019-2021) Stage II The Acceleration (2021-2023) Identify new platform opportunities that benefit from DBRG platform Invest in existing portfolio to build value In ve st m en t M an ag em en t D ig ita l O pe ra tin g $2B Cap
Slide 7: Capital Formation Update: DCP II Raises Hard Cap
7 CAPITAL FORMATION UPDATE… DCP II RAISES HARD CAP DigitalBridge is the partner of choice to institutional investors looking to build exposure to resilient, growing digital infrastructure asset class DCP I DCP II Fund Total Commitments $4.1B $8.1B 20212019 LARGEST DEDICATED DIGITAL INFRASTRUCTURE IN
Slide 8: Capital Formation Update: Progress Drives Guidance Higher
8 CAPITAL FORMATION UPDATE…PROGRESS DRIVES GUIDANCE HIGHER Excellent fundraising momentum from DCP II and co-invest drive total FEEUM past YE 2021 target of $17B Note: Individual components of graph are not to scale (1) Includes ~$1.2B raised subsequent to 9/30/21 •Former the original base for growt
Slide 9: Capital Formation Update: Extend Our Sector Leadership
9 CAPITAL FORMATION UPDATE…EXTEND OUR SECTOR LEADERSHIP A Focus on New and Emerging Strategies Private Credit Experienced, 7-person team in place Deployed ~$120M of capital from balance sheet to seed investments that will be contributed to fund/credit products Focus on capital formation in 202
Slide 10: Portfolio Activity Update: Continuing to Scale Our Platforms
10 Our investor-operator model allows us to quickly transform and scale DBRG portfolio companies. During 3Q we continued to grow our digital asset base, reaching over $40B in assets with several key bolt-on acquisitions. PORTFOLIO ACTIVITY UPDATE…CONTINUING TO SCALE OUR PLATFORMS $21B AUM & $8B FEEU
Slide 11: Corporate Activity Update
11 CORPORATE ACTIVITY UPDATE Wellness Infrastructure Sale – Overview In Sep 2021, DBRG reached an agreement to sell final legacy business, Wellness Infrastructure, for $3.2 billion Transaction will generate net value of $316 million to DBRG and transfer $294 million of subsidiary-level debt, gen
Slide 12: Financial Results
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Slide 13: Summary Financial Overview
13 SUMMARY FINANCIAL OVERVIEW NOTE: All $ in millions except per share & AUM DigitalBridge revenue and earnings growth in core digital segments has been rapid over the past two years driven by: Strong capital formation momentum in Digital IM Growth in Digital Operating driven by new acquisitions
Slide 14: Digital Earnings Summary
14 $9 $26 $20 $46 $82 $84 $54 $108 $115 3Q20 2Q21 3Q21 Digital IM - Run Rate Digital OperatingDigital IM - 1x Items $20 $39 $42 $99 $189 $200 $119 $236 $254 3Q20 2Q21 3Q21 Digital IM - Run Rate Digital OperatingDigital IM - 1x Items DIGITAL EARNINGS SUMMARY Consolidated Digital FRE / Adjusted EBITDA
Slide 15: Stabilized Growth
15 $76M $79M $85M $100M $124M $137M $155M $40M $38M $40M $41M $62M $70M $79M 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Annualized Revenue Annualized FRE $36M $34M $62M $84M $131M $131M $138M $13M $13M $28M $39M $56M $55M $56M 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Annualized Revenue Annualized EBITDA STABILIZE
Slide 16: Two Earnings Streams Generating Strong Growth
16 $140M $500M $600M $60M $225M $275M $54M $130M $400M $500M $23M $55M $175M $225M 2020 2021E 2023E 2025E $170M $230M $300M $100M $140M $200M $84M $165M $180M $240M $33M $95M $110M $140M 2020 2021E 2023E 2025E Digital IM revenue and Fee Related Earnings (FRE) projected to continue growth as DBRG exp
Slide 17: Strategic Priority: Lowering Our Cost of Capital
17 Databank: In October, Databank completed its 2nd securitization of 2021, issuing $332M primarily A- notes at an all-in rate of 2.43% Brings Databank’s weighted average interest rate to ~2.4% Vantage: In November, Vantage priced $530M of 5-year class A securitized notes at an all-in rate of
Slide 18: Executing the Digital Playbook
18 3 EXECUTING THE DIGITAL PLAYBOOK
Slide 19: The European Edge Opportunity
19 Global and regional hyperscale, cloud, and enterprises increasingly need a partner with a Pan-European Footprint 0 1 2 3 4 5 2.5 billion GSMA ME Europe 2021 4.3 billion CONNECTED DEVICE GROWTH 2020 2025 0 2 4 6 8 10 12 14 16 18 TRAFFIC GROWTH (Exabytes per month) 4x GROWTH 2019 2020 2025 THE EURO
Slide 20: AtlasEdge: Europe's Next-Gen Edge Platform
20 BACKGROUND PAN EUROPEAN FOOTPRINT New edge infrastructure platform built to serve the growing demand from cloud providers, streaming services and enterprises for high-performance, scalable and secure edge facilities AtlasEdge’s highly inter-connected, scaled data center infrastructure can dis
Slide 21: Key Partnerships: DBRG Strategic Development at Work
21 KEY PARTNERSHIPS – DBRG STRATEGIC DEVELOPMENT AT WORK DigitalBridge’s deep network of industry relationships allowed DBRG to source, develop and execute this proprietary strategy on a rapid time scale, effectively ‘standing up’ AtlasEdge in less than six months May 2021 - Long standing relation
Slide 22: Key Management: Building a Leading Team with Liberty Global
22 KEY MANAGEMENT - BUILDING A LEADING TEAM IN PARTNERSHIP WITH LIBERTY GLOBAL Josh Joshi, a DigitalBridge operating partner and former CFO of Interxion prior to its sale to Digital Realty for $8 billion, serves as AtlasEdge’s Executive Chairman and has quickly built out a top-notch team with 100+ y
Slide 23: Key Acquisitions: Colt European Data Centres
23 KEY ACQUISITIONS – COLT EUROPEAN DATA CENTRES DigitalBridge spearheaded AtlasEdge’s first strategic M&A deal, acquiring an attractive multi-country portfolio of 12 data centers across 11 markets in Europe, strengthening AtlasEdge’s unique portfolio of distributed data centres that are positioned
Slide 24: AtlasEdge: An Archetypal DBRG Investment
24 ATLASEDGE – AN ARCHETYPAL DBRG INVESTMENT AtlasEdge investment aligns with key DigitalBridge thematics, leveraging all aspects of our differentiated business-building strategy DigitalBridge Strategy Alignment with secular tailwinds Deploy capital into growing market verticals that naturally suppo
Slide 25: Key Takeaways
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Slide 26: Key Takeaways: 3Q 2021
26 KEY TAKEAWAYS – 3Q 2021 CEO 3Q Checklist Secular Tailwinds Around Connectivity – Big Growing TAM The Leading Management Team 25+ years Investing and Operating Digital Assets Converged Vision with Exposure to Entire Digital Ecosystem Finish The Mission (Rotation To Digital) 100% pro forma rotated,
Slide 27: Unveiling a New Simpler DBRG
27 UNVEILING A NEW SIMPLER DBRG DigitalBridge is releasing its 2021 Corporate Overview The dominant player in a secular growth sector managed by the leading management team in the space Unique DigitalBridge architecture gives investors diversified exposure to the Digital Investment Cycle from ‘busin
Slide 28: Q&A Session
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Slide 29: Non-GAAP Reconciliations
29 NON-GAAP RECONCILIATIONS ($ in thousands) 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 1Q20 Digi tal IM net income ( loss ) $ 39,272 $ 15,786 $ 7,663 $ 2,702 $ 3,539 $ 2,424 $ 2,529 Adjustments: Interest income 2,250 - (1) (1) (2) - (30) Investment and servicing expense - - 32 204 - - - Depreciation and amortiz
Slide 30: Non-GAAP Reconciliations
30 NON-GAAP RECONCILIATIONS ($ in thousands) 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 1Q20 Net income (loss) attributable to common stockholders $ 41,036 $ (141,260) $ (264,806) $ (140,575) $ (205,784) $ (2,042,790) $ (361,633) Net income (loss) attributable to noncontrolling common interests in Operating Comp
Slide 31: Important Note Regarding Non-GAAP Financial Measures
31 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 32: DigitalBridge
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