Slide 1: Earnings Presentation 2Q 2021
1 EARNINGS PRESENTATION 2Q 2021 A u g u s t 5 , 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. Corporate Overview 2. 2Q Highlights 3. Financial Results 4. Executing the Digital Playbook 5. Q&A
Slide 4: Corporate Overview
sett ut] » DIGITALBRIDGE | CORPORATE OVERVIEW
Slide 5: A Leading Global Digital Infrastructure REIT
5 A LEADING GLOBAL DIGITAL INFRASTRUCTURE REIT DigitalBridge is the only dedicated, global-scale digital infrastructure firm investing across five key verticals: data centers, cell towers, fiber networks, small cells, and edge infrastructure. This unique investment strategy gives investors exposure
Slide 6: The DigitalBridge Difference: Investor–Operator–Builder
6 THE DIGITALBRIDGE DIFFERENCE: INVESTOR–OPERATOR–BUILDER With a heritage of investing capital efficiently, operating digital assets, and building businesses, we take an innovative approach to growth and value creation on behalf of our customers and investors DIGITAL REITs DIGITAL INFRASTRUCTURE ASS
Slide 7: Macro: Increased Demand for Digital Infra
7 MACRO: INCREASED DEMAND FOR DIGITAL INFRA Infrastructure supply remains insufficient today to meet the ever-growing requirements of a connected global economy shifting to all things digital GSMA – Global Mobile Capex Capex, 2020–2025 (billion) $1.1T Worldwide in Mobile Capex Over $1.3T on Global D
Slide 8: Micro: Demand for Connectivity Continues to Soar
8 GLOBAL MIGRATION TO DIGITAL Pandemic accelerated investment at least 10 yrs MICRO: DEMAND FOR CONNECTIVITY CONTINUES TO SOAR As the global economy emerges from the pandemic, the digital boom sparked by lockdowns looks set to continue with companies who rely on digital infrastructure growing faster
Slide 9: Fastest Growing Digital REIT
9 Since 1Q20, DigitalBridge has increased its digital asset base by ~70%, acquiring over $14B of Digital AUM FASTEST GROWING DIGITAL REIT 2021 YTD European Edge data center business $20.6B AUM & $7.7B FEEUM in 1Q20 grows to $35B AUM & $14.5B FEEUM in 2Q21 2020 Acquired telecom infrastructure firm Ph
Slide 10: DigitalBridge – Investing on a Global Scale
10 Asia DIGITALBRIDGE – INVESTING ON A GLOBAL SCALE 22 portfolio companies….already investing actively out of DCP II with commitments of over $4 billion, leveraging DigitalBridge’s deep operating expertise and global presence Note: This map is not inclusive of other secondary DigitalBridge offices.
Slide 11: 2Q Highlights
11 2 2Q HIGHLIGHTS
Slide 12: New Platform Investments Advance Strategic Vision
12 NEW PLATFORM INVESTMENTS ADVANCE STRATEGIC VISION Investments announced or closed in 2Q21 highlight DigitalBridge’s expanding global scope and leadership investing in next generation networks that support the proliferation of 5G and IOT enabled devices Asia Cell Towers § Asian tower platform - le
Slide 13: DCP II Update
13 DCP II UPDATE DCP II current commitments reach $6.6 billion, exceeding $6.0 billion target, on strong fundraising environment Highlights Quality Relationships and Fees § 4 of 5 largest global infrastructure investors are now LPs § Strong participation from existing DCP I investors and industry-le
Slide 14: Continuing to Grow Our Digital IM Franchise
14 Long-term contracted fee streams drive stable, predictable earnings that compound over time, similar to our digital operating revenues CONTINUING TO GROW OUR DIGITAL IM FRANCHISE + + Credit•Former the original base for growth 2019 2020 2021 $17B Digital Bridge DCP I DCP II •6 separately capitaliz
Slide 15: Digital – Finish(ing) the Mission
15 Wellness CLNC (BRSP) Internalization 5/21 Hotels 3/21 OED Portfolio Sale 6/21 Digital CORPORATE UPDATE – FINISH(ING) THE MISSION DBRG is ahead of plan to finish rotation ‘from diversified to digital’ at over 85% digital following 2Q announcement of OED (Other Equity & Debt) portfolio sale and BRS
Slide 16: June 2021 Rebranding to DigitalBridge – Inaugural Investor Day
16 JUNE 2021 REBRANDING TO DIGITALBRIDGE - INAUGURAL INVESTOR DAY § DigitalBridge…a new name with a rich heritage. Introduce the fastest-growing global digital infra REIT, a business with unique characteristics § Operating DNA § Access to institutional capital § Levered to strong, secular industry t
Slide 17: 2020 ESG Report Released
17 2020 ESG REPORT RELEASED ESG Focused on ESG issues where we can have the greatest impact AND which are most important to our stakeholders – our DB “Top Five” 1. Climate change: Energy efficiency, GHG emissions & physical climate risks 2. Diversity, Equity & Inclusion on our management teams and B
Slide 18: 2Q Financial Results
18Strictly Private and Confidential 3 2Q FINANCIAL RESULTS
Slide 19: 2Q21 Summary Results
19 2Q21 SUMMARY RESULTS (1) Includes Digital Operating and Digital Investment Management segments. Excludes Digital Other segment. ($ millions except per share & AUM) 2Q20 1Q21 2Q21 Y/Y% Total Company Consolidated Revenues $67.9 $220.6 $237.2 +249% Adjusted EBITDA (DBRG OP Share) ($5.2) $12.5 $15.2
Slide 20: Digital Earnings Summary
20 $16.6 $82.3 $82.0 $9.3 $18.2 $25.6 $25.9 $100.5 $107.6 41% 46% 46% 2Q20 1Q21 2Q21 Digital Operating Digital FRE Combined Margin $42.0 $189.2 $189.1 $20.9 $31.1 $46.9 $62.9 $220.3 $236.0 2Q20 1Q21 2Q21 Digital Operating Digital IM DIGITAL EARNINGS SUMMARY Consolidated Digital FRE / Adjusted EBITDA
Slide 21: Simplification of Cost Structure and G&A
21 16 11 8 2020 EOY 1Q-2021 (ex.DiscOps) 2Q-2021 (ex.DiscOps) # of Offices 300 201 132 2020 EOY 1Q-2021 (ex.DiscOps) 2Q-2021 (ex.DiscOps) N SIMPLIFICATION OF COST STRUCTURE AND G&A As part of the Digital Transformation, the Company has completed strategic divestitures and undergone cost rationalizat
Slide 22: Stable to Significant Growth
22 STABLE TO SIGNIFICANT GROWTH… $40M $38M $40M $41M $62M $70M 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 $76M $79M $85M $100M $124M $137M 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 $36M $34M $62M $84M $131M $131M 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 $13M $13M $28M $39M $56M $55M 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Digital investment man
Slide 23: Two Powerful High-Growth Revenue and Earnings Streams
23 TWO POWERFUL HIGH-GROWTH REVENUE AND EARNINGS STREAMS $44M $90M $110M $140M $95M $140M $200M 1H21 Actual FY2021 Guidance FY2023 Target FY2025 Framework $73M $145M $180M $240M $155M $230M $300M 1H21 Actual FY2021 Guidance FY2023 Target FY2025 Framework $28M $55M $175M $225M $60M $225M $275M 1H21 A
Slide 24: $500M Corporate Securitization Lowers DBRG Cost of Capital
24 $500M CORPORATE SECURITIZATION LOWERS DBRG COST OF CAPITAL • LOWER COST OF CAPITAL: Successful rotation into high quality digital earnings positions capital structure to be competitive; early use - taking out $86M of 7.5% preferreds • LONGER-DURATION FINANCING: Revolving variable funding notes (V
Slide 25: Executing The Digital Playbook
25 4 Executing The Digital Playbook
Slide 26: Two-Way Athlete: DigitalBridge Can Buy and Build
26 TWO-WAY ATHLETE: DIGITALBRIDGE CAN BUY AND BUILD 25yr + Track Record successfully executing both buy and build-driven strategies is a key differentiator…especially relative to financial sponsors new to the sector DigitalBridge expertise as both investor and operator of digital infrastructure give
Slide 27: Buy – Strategic M&A Is a Core Capability
27 BUY – STRATEGIC M&A IS A CORE CAPABILITY AT DIGITALBRIDGE Accelerating value creation, from large-scale investments that establish new platform…to accretive M&A supporting continued portfolio company growth Buy When:- Ability to execute ‘carve outs’ vsBUY BUILD Proprietary Deal flow DigitalBridge
Slide 28: Build – The Expertise to Make Our Vision a Reality
28 SLC5 Data Center BUILD – THE EXPERTISE TO MAKE OUR VISION A REALITY DigitalBridge companies are always building – delivering for customers cements strong relationships and generates superior returns for investors, especially when markets are elevated Superior Economics Returns from building are g
Slide 29: Why Is Building So Critical Today?
29 1Q20 1Q21 WHY IS BUILDING SO CRITICAL TODAY? Public and private market multiples are elevated today, improving the relative ‘value prop’ of building while at the same time there is a growing need for new investment to support customer growth BUILD: Investing to support customer growthBUY: Elevate
Slide 30: Where Are We Building
30 WHERE ARE WE BUILDING EUROPE ASIA NORTH AMERICA LATAM
Slide 31: Case Study – DataBank SLC (Salt Lake City)
31 INVESTMENT BACKGROUND SLC 5 Campus § DataBank entered the Salt Lake City market in 2017 with the acquisition of C7 Data Centers (SLC 1 – 3) § Salt Lake City’s “Silicon Slopes” technology sector employment has grown at 2x the national average over the past 10 years § Alternative to expensive data
Slide 32: Why DBRG?
32 WHY DBRG? CEO 2Q Checklist Secular Tailwinds Around Connectivity 25+ years Investing and Operating Digital Assets Converged Vision with Exposure to Entire Digital Ecosystem Continue to Build Digital IM Franchise DCPII exceeded target hitting $6.6B…and we are not done yet Invest In High Quality Di
Slide 33: Q&A Session
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Slide 34: Non-GAAP Reconciliations
34 NON-GAAP RECONCILIATIONS Total DBRG for the Three Months Ended Core Digital Segments(3) for the Three Months Ended Core Funds from Operations (in thousands, except per share) June 30, 2021 March 31, 2021 June 30, 2020 June 30, 2021 March 31, 2021 June 30, 2020 Net income (loss) attributable to co
Slide 35: Non-GAAP Reconciliations
35 NON-GAAP RECONCILIATIONS Three Months Ended (In thousands) June 30, 2021 March 31, 2021 June 30, 2020 DBRG Share of Core Digital Revenues Total Revenues $235,966 $220,322 $62,870 Less: Non-controlling interest (169,935) (166,133) (33,608) DBRG pro-rata share of Revenues $66,031 $54,189 $29,262 Di
Slide 36: Important Note Regarding Non-GAAP Financial Measures
36 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 37: DigitalBridge
DIGITALBRIDGE