Digital 9 Infrastructure Plc · LSE:DGI9
Digital 9 Infrastructure — FY2021 Earnings Presentation
36 slides from Digital 9 Infrastructure's earnings presentation, March 2022
Slide 1: Annual Results Presentation for the period ended 31 December 2021
Digital 9 Infrastructure plc See Change. Annual Results Presentation for the period ended 31 December 2021
Slide 2: Presentation and Agenda
PRESENTATION AND AGENDA THE PRESENTATION TEAM AGENDA Investment Strategy & Market 3 Highlights 5 Thor Johnsen Isobel Gunn-Brown Andre Karihaloo Financial Overview 7 Head Of Digital Infrastructure Chief Financial Officer Investment Director Thor is the Fund Manager for Isobel is ACCA qualified and ha
Slide 3: The Opportunity
THE OPPORTUNITY MORE DEVICES… Endless demand. 30 billion Infinite opportunity. Network devices by 2023, nearly half of which will be machine to machine. The internet is the lifeblood of progress. MORE USERS… It’s a window to new opportunities, knowledge and skills, and fuels hope for a 800 million N
Slide 4: Investment Strategy
INVESTMENT STRATEGY Critical infrastructure for our connected world, with long-term, contracted, inflation protected income Portfolio as at 31 December 2021 Backbone of the internet 98% of the world's data is carried by subsea cables 40% shortfall in transatlantic subsea capacity by 2026 41% 59% Onl
Slide 5: Highlights from IPO to December 2021
HIGHLIGHTS FROM IPO to DECEMBER 2021 £845m Raised £630m Deployed3 £548m Pipeline £69m £548m4 £50m2 Follow-on near-term pipeline Investment into investment in (<6 months), part EMIC-1, Verne Global of a pipeline of a new subsea fibre to fund the c.£2 billion of system between expansion of opportuniti
Slide 6: ESG is Core to D9
ESG IS CORE TO D9 E S Supporting NYU research into carbon efficiency of subsea Moving data centre energy footprint from hydrocarbon G cables and maximising the sustainability of digital infrastructure dominant markets to renewable surplus markets Partnered with UN Taskforce on SMaRT Submarine Cables
Slide 7: Financial Overview
FINANCIAL OVERVIEW
Slide 8: Financial Highlights as at December 2021
FINANCIAL HIGHLIGHTS as at 31 December 2021 104.62 pence 6 pence £822 million £746 million IFRS NAV Dividend per share Market IFRS Investment per share (annualised) Capitalisation Valuation The NAV as at 31 December 2021 was 104.62 pence Dividends declared in respect of the period from 31 Market cap
Slide 9: Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME – Period from 31 March 2021 to 31 December 2021 £’m 31 December 2021 30 June 2021 £45.5m Unrealised fair value gain on FAIR VALUE GAIN ON INVESTMENTS 45.5 23.1 financial assets Fair value movement since acquisition: Distributions from investments 2.9 - Aqua Comms up
Slide 10: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION £’m 31 December 2021 30 June 2021 13.1% Investments at fair value through 746.2 193.2 TOTAL RETURN SINCE IPO (ANNUALISED) profit & loss* NAV growth plus dividend Trade and other receivables 0.3 0.1 Cash and cash equivalents 11.3 289.7 Total assets 757.8 483.0 Current
Slide 11: Fund Trajectory
FUND TRAJECTORY 9.82% Total Return since IPO in March 2021; Annualised 13.1% 9.82% 110 10% Cumulative Dividend Paid NAV per Cumulative Dividend Paid per Share NAV per Share Cumulative Total Shareholder Return 3.00p Cumulative Total Shareholder Return 105 1.50p 5% 100 104.62p 103.34p 102.02p 98.00p 9
Slide 12: Net Asset Value Bridge December 2021
NET ASSET VALUE BRIDGE 31 December 2021 12
Slide 13: Portfolio Performance
PORTFOLIO PERFORMANCE
Slide 14: Asset Investment 1: Aqua Comms
ASSET INVESTMENT 1: Providing the backbone to the internet in the Northern Hemisphere Asset Operating Length Total Fibre Current and Landing points # since (km) system Fibre Pairs Pairs owned expected data transmission capacity per FP 20,000km 100% >90% (“FPs”) (Tbps) revenues from of subsea fibre a
Slide 15: Asset Investment 2: EMIC-1
ASSET INVESTMENT 2: EMIC-1 Extending D9’s network to Asia, connecting 3 billion people 32,000km 3 In July 2021 D9 entered into definitive subsea and terrestrial fibre continents connected by D9’s agreements to deploy £50 million 1 into the owned by D9 following fibre network portfolio development of
Slide 16: Asset Investment 3: Verne Global
ASSET INVESTMENT 3: Shifting energy-intensive data processing to areas of abundant green power D9 bought 100% of Verne Global, an operational data centre platform located in Iceland in September 2021 £231m investment at a c.20x EV/Contracted run-rate EBITDA multiple Low cost Specialist in high perfo
Slide 17: Asset Investment – SeaEdge UK
ASSET INVESTMENT 4 – SeaEdge UK 1 Northern England hub connecting America and the Nordics £15m investment into an operational data centre located in Newcastle on the UK’s largest data centre campus Leased to and operated by Stellium Data Centres, via a 25-year lease, benefiting from annual, upward-o
Slide 18: Operational Highlights FY21 – Aqua Comms
OPERATIONAL HIGHLIGHTS FY21 – Aqua Comms Other highlights: March: Upgraded 2 trans-Atlantic subsea cables (AEC-1 and AEC-2) with Ciena’s GeoMesh Extreme, allowing 400GB wavelength services across both systems, driving efficiencies for customers. Revenues of $32.7m, a 10% uplift on 2020. Professional
Slide 19: Operational Highlights FY21 – Verne Global
OPERATIONAL HIGHLIGHTS FY21 – Verne Global Other highlights: Wirth Research, a leader in Computational Fluid Dynamics, has relocated its supercomputer to Verne Global’s campus, which enables them to analyse and optimise the performance of designs for its industry customers at zero carbon cost Outper
Slide 20: Portfolio Valuation
PORTFOLIO VALUATION IFRS Investment Valuation as at 31 December 2021: £487 million, an uplift of 11.7% against total invested funds of £435 million. The Investment Manager is responsible for carrying out the fair valuation of the portfolio, which has then been presented to the Board for its approval
Slide 21: Portfolio: Contract Terms and Inflation Protection
PORTFOLIO: CONTRACT TERMS AND INFLATION PROTECTION SEAEDGE UK1 Recurring Revenue 100% 100% 100% by Contract Length 75% 75% 75% 7.1 years 50% 50% 50% Weighted average contract term for recurring revenue across the 25% 25% 25% portfolio 0% 0% 0% 1–3 3–5 5 – 10 10+ 1–3 3–5 5 – 10 10+ 1-3 3-5 5 - 10 10+
Slide 22: Outlook
OUTLOOK
Slide 23: Debt Overview
DEBT OVERVIEW As intended in our prospectus, D9 has 4 secured a revolving credit £300m Syndicate of International Revolving credit facility facility of £300 million Banks In March 2022, D9 completed on a new syndicated revolving credit facility (“RCF”) for £300 million plus an uncommitted accordion
Slide 24: Illustrative Portfolio Cashflow per Share
ILLUSTRATIVE PORTFOLIO CASHFLOW PER SHARE GAV by sector as at 31 December 2021 Immediate Pipeline Subsea, Data 41% Centre, 59% 50TB Aqua Comms expansion 40MW Verne Currency exposure as at 31 expansion December 2021 £300m debt EUR deployed 9% GBP USD 35% 54% ISK 2% Existing Asset £300m Debt 40MW Vern
Slide 25: Portfolio: Illustrative Valuation Using Comparable Multiples
PORTFOLIO: ILLUSTRATIVE VALUATION USING COMPARABLE MULTIPLES EBITDA multiples Subsea Fibre 50x Illustrative valuation, adding c.50p to NAV if using a comparable market multiples methodology 40x 30x 23x Verne Global and Aqua Comms 20x @ comparator 12x multiples adds 10x c.50p to NAV 0x Aqua Comms Mai
Slide 26: Pipeline: People, Purpose, Platform
PIPELINE: PEOPLE, PURPOSE, PLATFORM No. of Bilateral No. of Bilateral Near term £’m % assets £’m Wider term £’m % assets £’m Data centre 108 20% 5 38 Data centre 908 64% 5 491 Verne Global Subsea fibre - 0% - - Subsea fibre2 360 25% 3 - Terrestrial 90 16% 2 90 Terrestrial - 0% - - Wireless 350 64% 2
Slide 27: Pipeline: People, Purpose, Platform
PIPELINE: PEOPLE, PURPOSE, PLATFORM >$300 billion Investment Manager transactional Platform-driven approach already being proved in experience in digital infrastructure subsea fibre and green data centres, with expansion and capital deployment Portfolio revenue is contracted on average for £400 bill
Slide 28: Thank You for Attending
INVESTMENTS WITH PURPOSE FOR PROFIT DIGITAL 9 BY PEOPLE INFRASTRUCTURE FROM TRIPLE POINT / THANK YOU FOR ATTENDING
Slide 29: Appendix
APPENDIX
Slide 30: Board of Directors
BOARD OF DIRECTORS Phil Jordan – Independent Chairman Phil Jordan has a successful track record in the digital infrastructure and technology sectors, both in an John (Jack) Waters Jr. – executive and non-executive capacity. Phil’s executive career includes country, regional and group Chief Informati
Slide 31: The Manager
THE MANAGER Triple Point’s Digital Infrastructure Team £2.7 bn 180 Our team has one core ambition: Assets under management Employees and counting to empower societies and unleash economies by connecting investors to cutting edge opportunities that deliver Something happens when people come together.
Slide 32: Investment Process
INVESTMENT PROCESS The Investment Manager’s Digital Infrastructure team employs a rigorous investment process when appraising new opportunities presented to it for consideration. 32
Slide 33: Purpose Driven Investments
PURPOSE DRIVEN INVESTMENTS Our committed and embedded approach ensures we focus on using sustainability to drive value and best practice across our portfolio. Weighted average (by SDG 9 alignment Sub sector Metric Units Verne Global Aqua Comms investment value) Decarbonisation of All sub sectors Sco
Slide 34: 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. Dividends declared in respect of the period from 31 March 2021 to 31 Structure Jersey-incor
Slide 35: Glossary
GLOSSARY CAGR Compound Annual Growth Rate ESG Environmental, Social and Governance FAANGs Facebook, Amazon, Apple, Netflix and Alphabet FTTH Fibre To The Home GHG Green House Gas HPC High Performance Computing IFRS International Financial Reporting Standards IPO Initial Public Offering IRR Internal
Slide 36: Disclaimer
DISCLAIMER THIS DOCUMENT IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR GENERAL INFORMATION ONLY REGARDING DIGITAL 9 INFRASTRUCTURE PLC. INVESTORS SHOULD NOT SUBSCRIBE FOR OR PURCHASE SHARES ON THE BASIS OF INFORMATION CONTAINED IN THIS PRESENTATION OR IN RELIANCE ON THIS PRESENTAT
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