Slide 1: Earnings Presentation 1Q 2022
1 EARNINGS PRESENTATION 1Q 2022 M a y 5 , 2 0 2 2
Slide 2: Forward-looking statements
2 Some of the statements contained in this Quarterly Report on Form 10-Q (this "Quarterly Report") constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
Slide 3: Agenda
3 AGENDA 1. 1Q Highlights 2. Financial Results 3. Executing the Digital Playbook 4. Q&A 5. Appendix
Slide 4: 1Q Highlights
| sautttaautll || . DIGITALBRIDGE 1Q HIGHLIGHTS
Slide 5: 1Q 2022 – Already Delivering on Key 2022 Objectives
5 1Q 2022 – ALREADY DELIVERING ON KEY 2022 OBJECTIVES In the first four months of 2022, DigitalBridge has announced a series of transactions that position the firm to deliver and exceed 2022 financial guidance while also advancing key strategic objectives that enhance the firm’s ability to pair capi
Slide 6: Accretive Wafra Transaction Boosts Digital IM Earnings
6 ACCRETIVE WAFRA TRANSACTION BOOSTS DIGITAL IM EARNINGS Attractive Valuation Metrics Transaction Consideration (assumes Earnout achieved in 2023) $800M $925M $925M Incremental IM FRE (31.5% of mid-point) +$38M +$46M +$60M Transaction Multiple 21.1x 20.1x 15.4x $82 $99 $130 2022 2023 2025 $120 $145
Slide 7: Change to Conventional C-Corp Increases Flexibility
7 CHANGE TO CONVENTIONAL C-CORP INCREASES FLEXIBLITY Ability to reinvest and scale – Prioritize fast-growing digital platform over time over REIT ‘gymnastics’ Wafra transaction is excellent example of ‘highest and best use’ of capital that does not fit REIT structure Other examples: Warehouse in
Slide 8: DigitalBridge Acquires AMP Capital Intl Infra Equity Business
8 DIGITALBRIDGE ACQUIRES AMP CAPITAL INTL INFRA EQUITY BUSINESS Strategic Fit – similar ‘value-add’ infrastructure equity franchise targets smaller - $100-500M - high-return mid- market opportunities with Digital+ mandate New digital logos and expanded global LP base Advances "Full Stack” IM Strateg
Slide 9: New Transactions to Accelerate Digital IM Growth
9 NEW TRANSACTIONS TO ACCELERATE DIGITAL IM GROWTH $82 2022 $143 Post GIF Transaction DBRG Share ($ in millions; FRE mid-point at DBRG share) Original FRE Guidance DBRG Share +74% Run-rate ‘22 DBRG FRE (1) Increases by Consolidating Wafra stake and opportunistic AMP transaction to generate powerful
Slide 10: Key Investments Advance Full-Stack Strategy
10 KEY INVESTMENTS ADVANCE FULL-STACK STRATEGY VENTURESCREDITCORE+ DigitalBridge made ‘warehouse’ investments across all three new verticals - CORE, CREDIT, VENTURES - outlined as key components of its Full-Stack strategy built to pair the best ideas in digital infrastructure with the right capital.
Slide 11: Building a Full Stack Digital Infrastructure Investor
11 BUILDING A FULL STACK DIGITAL INFRASTRUCTURE INVESTOR ‘Full stack’ approach to Digital Infrastructure allows DigitalBridge the ability to invest, operate and capitalize on $400+ billion of anticipated annual global capex that enables us to pair capital to the right risk-adjusted opportunity. Abil
Slide 12: 2022 Financial Results
12 2 2022 FINANCIAL RESULTS
Slide 13: 1Q 2022 Financial Overview
13 1Q 2022 FINANCIAL OVERVIEW NOTE: All $ in millions except per share & AUM 1Q21 4Q21 1Q22 Y/Y% Consolidated Revenues $31.1 $59.9 $44.9 +44% Consolidated FRE $20.1 $34.8 $24.6 +22% DBRG Pro-Rata Share of Revenue $21.4 $39.9 $30.6 +43% DBRG Pro-Rata Share of FRE $13.6 $23.8 $17.0 +25% Consolidated R
Slide 14: Digital Earnings Summary
14 DIGITAL EARNINGS SUMMARY $189.2 $189.9 $202.5 $31.1 $59.9 $44.9 $220.3 $249.8 $247.4 1Q21 4Q21 1Q22 Digital Operating Digital IM $82.3 $84.5 $88.6 $18.2 $32.5 $22.3 $100.5 $117.0 $110.9 46% 47% 45% 1Q21 4Q21 1Q22 Digital Operating Digital IM Combined Margin Consolidated Adjusted EBITDA(1)Core Dig
Slide 15: Stabilized Growth
15 $76M $79M $85M $100M $124M $137M $155M $175M $235M $41M $43M $47M $48M $70M $78M $88M $106M $124M 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Annualized Revenue Annualized FRE $36M $34M $62M $84M $131M $131M $132M $138M $145M $13M $13M $28M $39M $56M $55M $56M $60M $62M 1Q20 2Q20 3Q20 4Q20 1Q21
Slide 16: More Capital to Allocate
16 MORE CAPITAL TO ALLOCATE Additional firepower remains available after strategic acquisitions of Wafra and AMP close, generated from launching our new products & strategies and harvesting the last remaining legacy investments ~$1,000 ~$1,400 $650 $500 $389 $328 Current Liquidity Wafra AMP New Prod
Slide 17: Executing the Digital Playbook
17 3 EXECUTING THE DIGITAL PLAYBOOK
Slide 18: Accelerating and Scaling Our Customer Centric Platform
18 ACCELERATING AND SCALING OUR CUSTOMER CENTRIC PLATFORM Our ability to support the growth of global tech and telco customers is fundamental to investments that increase the scalability of the DigitalBridge IM platform. Ability to serve global tech/telco customers at-scale Leverage balance shee
Slide 19: Leveraging Our Comparative Advantages to Grow at Scale
19 2019 2020 2021 2022E LEVERAGING OUR COMPARATIVE ADVANTAGES TO GROW AT SCALE Asset-light model and expertise investing across the ecosystem are key differentiators that allow us to compete and win, growing more quickly than our digital infrastructure peers Fastest Growing AUM on Asset Light Model
Slide 20: Performing as a Category Leader Within Only 5 Years
20 7% 8% 12% 13% 16% 74% PERFORMING AS A CATEGORY LEADER WITHIN ONLY 5 YEARS Fast-growing asset-light model allows DigitalBridge to compete head-to-head with established players with two-to-three-decade head start EBITDA Growth CAGRS 1Q20 – 1Q22 Active Macro Towers by YE2021 34,000 40,000 128,000 21
Slide 21: 2022 Key Objectives
21 2022 KEY OBJECTIVES 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 Focus on realization of high-growth digital infrastructure platform Build a Full-Stac
Slide 22: Hyper-Converged Digital Infrastructure
22 Towers Small Cells Fiber Data Centers Edge Infrastructure Hyper-Converged Digital Infrastructure DigitalBridge (NYSE: DBRG) is the leading global digital infrastructure investor, managing and operating assets across five key verticals: data centers, cell towers, fiber networks, small cells, and e
Slide 23: Q&A Session
cout tut DIGITALBRIDGE SESSION
Slide 24: Appendix
24Strictly Private and Confidential 5 APPENDIX
Slide 25: Pre/Post Transaction Analysis Digital IM
25 Pre/Post Transaction Analysis Digital IM Current Post-Transaction Fee-Related Earnings (FRE) DBRG 68.5% / Wafra 31.5% DBRG 100% Corporate Share of Performance Fees1 (Carried Interest) DBRG 68.5% / Wafra 31.5% DBRG 100% for all future investment funds DBPI - Wafra retains 31.5% of corporate share
Slide 26: AMP Infra Equity - Business Profile and Key Deal Terms
26 Transaction Scope Purchase of AMPs International Infrastructure Equity Platform: Includes the Platform and existing funds including GIF I, GIF II & Co-Investment Vehicles IM Platform Consideration $143M Upfront Cash Payment for IM Platform $49M for rights to the carried interest for GIF I
Slide 27: Non-GAAP Reconciliations
27 NON-GAAP RECONCILIATIONS ($ in thousands) 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 Digi tal IM n et in come ( loss ) $ ( 9,143) $ 28,194 $ 39,272 $ 15,786 $ 7,663 $ 2,702 $ 3,799 $ 2,424 Adjustments: Interest expense (income) 2,500 2,499 2,250 - (1) (1) (2) - Investment and servicing expense (inco
Slide 28: Non-GAAP Reconciliations
28 NON-GAAP RECONCILIATIONS ($ in thousands) 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 Net income (loss) attributable to common stockholders $ (262,316) $ (20,686) $ 41,036 $ (141,260) $ (264,806) $ (140,575) $ (205,784) $ (2,042,790) Net income (loss) attributable to noncontrolling common interests i
Slide 29: Important Note Regarding Non-GAAP Financial Measures
29 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 30: DigitalBridge
DIGITALBRIDGE