Digitalbridge Group, Inc. · NYSE:DBRG
Digitalbridge — Colony Capital — Citi Global TMT West Conference 2020
25 slides from Digitalbridge's conference presentation, Jan 6, 2020
Slide 1: Investor Presentation: Citi Global TMT West Conference
Exhibit 99.1 INVESTOR PRESENTATION Citi Global TMT West Conference: January 7-8, 2020 Marc C. Ganzi CEO Digital Bridge Holdings, LLC and CEO-Elect, Colony CapitalExhibit 99.1 INVESTOR PRESENTATION Citi Global TMT West Conference: January 7-8, 2020 Marc C. Ganzi CEO Digital Bridge Holdings, LLC and C
Slide 2: Disclaimer
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 ar
Slide 3: Disclaimer: Important Additional Information
Disclaimer Important Additional Information The Company, its directors and its executive officers will be participants in the solicitation of proxies from the Company’s stockholders in connection with the matters to be considered at the 2020 Annual Meeting of Stockholders (the “2020 Annual Meeting”)
Slide 4: Table of Contents
Table of Contents Digital Infrastructure Landscape 1 Colony’s Converged Digital Ecosystem 2 Colony’s Digital Investment Framework 3 Colony’s Inaugural Balance Sheet Investment 4 in Digital InfrastructureTable of Contents Digital Infrastructure Landscape 1 Colony’s Converged Digital Ecosystem 2 Colon
Slide 5: Digital Infrastructure Landscape
DIGITAL INFRASTRUCTURE LANDSCAPEDIGITAL INFRASTRUCTURE LANDSCAPE
Slide 6: Data Demand: A Global Opportunity
Data Demand: A Global Opportunity Mobile operators are forecasted to invest greater than $480 BILLION WORLDWIDE between 2018 and 2020 1 in mobile capex, with half coming from countries expected to have launched 5G by 2020 Mobile Operator Internet of Internet Users Investment Things 2018 9.1bn Capex
Slide 7: Strong Digital Infrastructure Demand Anticipated
Strong Digital Infrastructure Demand Anticipated Based on Projected Cloud Capital Expenditures and 5G Phone Shipments Projected Cloud Capital Expenditures – Global and Chinese-based Players (2018 – 2020P) ($ in millions) Y-o-Y Change Y-o-Y Change Y-o-Y Change 12% 7% 25% $37.5 Y-o-Y Change $33.6 $31.
Slide 8: Next Generation Networks Require a Converged Approach
Next Generation Networks Require a Converged Approach to Infrastructure Development and Ownership FROM DEVICES THROUGH THE CORE TO THE CLOUD AND BACK 5G End to End 5G CITIES WORLDWIDE HEALTHCARE PHONES Data Creation Data RETAIL Consumption SMART CITIES DRONES TRANSPORTATION IOT Edge Compute Node Net
Slide 9: Colony's Converged Digital Ecosystem
COLONY’S CONVERGED DIGITAL ECOSYSTEMCOLONY’S CONVERGED DIGITAL ECOSYSTEM
Slide 10: Colony's Global Digital Infrastructure Footprint
Colony’s Global Digital Infrastructure Footprint Colony is the TOWER ASSETS FIBER ASSETS only global REIT 2 that owns, Fueling global innovation. Providing Provide critical network mission-critical connectivity manages, and coverage and capacity 2 operates across all components of the digital ecosys
Slide 11: Colony's Converged U.S. Ecosystem vs. Peer Group
Colony’s Converged U.S. Ecosystem vs. Peer Group Colony controls and/or manages the only U.S. end-to-end digital infrastructure platform Colocation / Managed Service United States Digital Infra Macro Towers Small Cells Enterprise & Dark Fiber Edge Data Centers Hyperscale Data Centers Data Centers As
Slide 12: Performance vs. Peers in Towers
Performance vs. Peers in Towers (1) NET ORGANIC LEASING GROWTH Vertical Bridge, a U.S. (3) ADJ. EBITDA CAGR (2016A-2019E) (2016A-2019E) tower portfolio company managed by Digital 6.8% Average: 5.4% 4.8% 13.0% Bridge, has outperformed 22.2% the tower businesses of the big three public REITs 17.6% (2)
Slide 13: Performance vs. Peers in Hyper-scale Data Centers
Performance vs. Peers in Hyper-scale Data Centers TTM Domestic Leasing ($ in mm) LQA Revenue ($ in mm) Vantage, a U.S. data Vantage leasing in-line with public peers… …despite being 7x smaller on a revenue basis center portfolio company managed by Digital $3,226 $109 Bridge, has consistently proven
Slide 14: Colony's Digital Investment Framework
COLONY’S DIGITAL INVESTMENT FRAMEWORKCOLONY’S DIGITAL INVESTMENT FRAMEWORK
Slide 15: Four Corners of Asset Selection
Four Corners of Asset Selection MARKET DYNAMICS ASSET QUALITY Focus on stable markets with catalysts Focus on unique, hard-to-replicate for near-term Digital Infrastructure assets and seek assets that provide investment and downside protection mission critical services to customers for asset owners
Slide 16: Alpha Creation Framework
Alpha Creation Framework Digital Colony seeks outperformance in our companies through hands-on participation in all of our businesses Direct Operating Proprietary Differentiated Dynamic Balance Human Capital Experience Back-Office Systems M&A Program Sheet Management Recruiting, developing and The p
Slide 17: Balance Sheet Investment Framework
Balance Sheet Investment Framework Colony believes in a Capital Allocation Opportunities: disciplined and methodical approach to • GP Commitments investing balance sheet • Direct Digital Investing capital with a sharp focus 1 • Warehouse Transactions on achieving the highest Colony will continually
Slide 18: Use of Industrial Sales Proceeds
Use of Industrial Sales Proceeds Net Industrial Sale Proceeds $403M Uses of Remaining Proceeds Remaining ~$185M Preferred New Digital Investments Uncommitted $1.2B Redemption Proceeds ~$200M Investment in • GP Co-Investments Series B & E Edge Data • Permanent Balance Committed Centers Sheet Investme
Slide 19: Colony's Inaugural Balance Sheet Investment in Digital Infrastructure
4 COLONY’S INAUGURAL BALANCE SHEET INVESTMENT IN DIGITAL INFRASTRUCTURE4 COLONY’S INAUGURAL BALANCE SHEET INVESTMENT IN DIGITAL INFRASTRUCTURE
Slide 20: Colony's Inaugural Balance Sheet Investment In Digital Infrastructure
Colony’s Inaugural Balance Sheet Investment In Digital Infrastructure Colony has acquired an ownership interest of 20.4% in DataBank from existing third-party investors for approximately $185 million; DataBank is the leading private owner and manager of Edge Data Centers in the U.S. with a nationwid
Slide 21: DataBank's Advantage in Edge Data Centers
DataBank’s Advantage in Edge Data Centers Low Latency applications driving need for Edge Computing DataBank’s tier II strategy is currently serving Edge Computing needs Sample 4G/LTE network – average latency of 50 to 100ms What is “the Edge” § The “Edge” is a broadly used term that is generally use
Slide 22: DataBank's Diversified, Blue Chip Customer Base
DataBank’s Diversified, Blue Chip Customer Base More than 1,800 customers trust DataBank for its experience, expertise, and service offerings Top 10 customers represent ~25% of total Monthly Recurring Select Customer Logos Revenue (MRR), and top 100 customers represent ~66% of MRR with increasing co
Slide 23: DataBank Outperforms the Average Public Peers on Churn
DataBank Outperforms the Average Public Peers on Churn Retail Colocation Data Center Churn Rates 1 Company Avg. Churn 4.0% DataBank 0.7% Equinix 2.3% 3.5% CyrusOne 1.5% 3.0% Switch Inc. 0.2% 2.5% Interxion 0.5% QTS 1.4% 2.0% 1.5% 1.0% Median churn of 0.6% at DataBank is 40% lower than the 0.5% peer
Slide 24: DataBank Transaction Process and Structure
DataBank Transaction Process and Structure Colony’s acquisition of its interest in DataBank was underpinned by a thorough and robust transaction process • DataBank was acquired in 2016 by a Digital Bridge-led consortium including personal investment from Marc Ganzi and Ben Jenkins and third-party ca
Slide 25: Definitions and Important Notes
Definitions and Important Notes Current Yield: Represents Core FFO less maintenance capital expenditures dividend by equity. EBITDA: Generally represents net income before interest expense, income tax provision (benefit), depreciation and amortization as defined and reported by each respective compa
Colony Capital — Citi Global TMT West Conference 2020 on 6ix