Digitalbridge Group, Inc. · NYSE:DBRG
Digitalbridge — Colony Capital — Investor Presentation (June 2020)
24 slides from Digitalbridge's investor presentation, Jun 3, 2020
Slide 1: Company Presentation
COMPANY PRESENTATION June 3, 2020 Marc Ganzi | CEO Digital Colony, CEO-elect Colony Capital
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
DISCLAIMER All forward-looking statements reflect Colony Capital’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Additional information about these and other factors can be found in Colony Capital’s reports filed from time to time with the SEC.
Slide 4: Agenda
AGENDA 1 2 3 Business transition overview Significant market opportunity— Databank Case Study growth & resilience Colony 2.0 playbook Management team • Track record of success Differentiated strategy • Translate experience into enhanced returns 4
Slide 5: CLNY's Digital Transformation
CLNY’s Digital Transformation 1
Slide 6: Colony Capital: A Heritage of Moving Forward
COLONY CAPITAL: A HERITAGE OF MOVING FORWARD Executing a strategic plan to rotate the balance sheet and recycle capital into digital infrastructure. Where We Were Where We Are Today Where We’re Going Legacy Colony Digital Infrastructure Diversified REIT managing industrial, healthcare and hospitalit
Slide 7: A Transition Well Underway
A TRANSITION WELL UNDERWAY Rotation from Diversified REIT to Digital REIT began in 2018 with the launch of Digital Colony. 2 years later over 40% of CLNY AUM is digital CLNY 2018 Today — 2020 CLNY 2022 Legacy Colony Capital Digital Infrastructure $50B+ in AUM Converged Digital Ecosystem Six Legacy S
Slide 8: New Profile, New Management
NEW PROFILE NEW MANAGEMENT COLONY 2020 Marc Ganzi Chief Executive Officer NEW TEAM MEMBERS LEADING TRANSFORMATION TO COLONY 2.0 Ben Jenkins Justin Chang PROVEN TRACK Jacky Wu CIO — Digital Investment Management CFO & Treasurer CIO — Digital Balance Sheet Investments RECORD OF SUCCESS Jonathan Grunzw
Slide 9: Digital Colony Today
DIGITAL COLONY TODAY Digital Colony is a leading owner, operator and investment manager of companies enabling the next generation of mobile and internet connectivity TOWER ASSETS FIBER ASSETS $20B AUM ~350,000 Sites >135,000 Route Miles Source: Digital Colony manages nearly $20 billion of Provide cr
Slide 10: Colony 2.0 Playbook
COLONY 2.0 PLAYBOOK Accelerate Colony’s strategic pivot towards Digital LONG TERM GROWTH Create Clear Liquidity Runway Grow Investment Management Harvest legacy assets • 12-18M ‘path to digital’ • Extend Equity franchise • Divest OED assets • Reprofile corporate debt • Launch new verticals—Credit, L
Slide 11: Investment Case — Why Own Colony?
Investment Case — Why Own Colony? Significant Market Opportunity | Top Management Team | Differentiated Strategy 2
Slide 12: Aligned with Powerful Secular Tailwinds
ALIGNED WITH POWERFUL SECULAR TAILWINDS Digital Connectivity is driving a generational change in computing…a huge, growing market All aspects of our personal, professional and consumer lives: work, school, shopping, entertainment, socializing and professional services are migrating to digital platfo
Slide 13: Demand Driven Investment: Fast Forward a Decade
DEMAND DRIVEN INVESTMENT FAST FORWARD A DECADE Without today’s technology, “social distancing” would have meant isolation. COVID-19 has changed the way we work and connect while accelerating industry trends underlying persistent demand in digital infrastructure GLOBAL MOBILE DATA USAGE GLOBAL MOBILE
Slide 14: Combo of Resilience & Growth Drives Strong Market Performance
COMBO OF RESILIENCE & GROWTH DRIVES CONSISTENTLY STRONG MARKET PERFORMANCE Tower and data center companies have outperformed the broader equity markets and REIT indices… …OVER THE LAST 5 YEARS …AND YEAR TO DATE +235% +21% +17% +151% -5% -15% +63% +35% Tower Co Index: AMT, CCI, SBAC; equal-weighted S
Slide 15: Top Management Team in Digital Infrastructure
TOP MANAGEMENT TEAM IN DIGITAL INFRASTRUCTURE Executive Leadership Marc Ganzi Ben Jenkins Track Record of CEO-Elect, Colony Capital Managing Partner & Digital Colony Managing Partner Chief Investment Officer Success Investment & Asset Management Team Boca Raton New York London Singapore Experien
Slide 16: Supported by Industry Leaders
…SUPPORTED BY INDUSTRY LEADERS Experienced network of CEOs operating businesses Cross-selling Market intelligence Proprietary ideas / flow Access to 100s of years of cumulative experience investing /operating digital assets 16
Slide 17: Colony's Differentiated Strategy
COLONY’S DIFFERENTIATED STRATEGY Operate across the digital ecosystem A Converging Digital Ecosystem Digital infrastructure is converging FROM DEVICES THROUGH THE CORE TO THE CLOUD AND BACK Customer solution provider IOT Cloud Data Flexibility to evolve with opportunity set Center Exclusive fo
Slide 18: Four Corners of Underwriting
FOUR CORNERS OF UNDERWRITING Underwriting matters — not all digital infrastructure is alike MARKET DYNAMICS ASSET QUALITY Focus on stable markets with catalysts for Focus on unique, hard-to-replicate assets and near-term Digital Infrastructure investment seek assets that provide mission critical and
Slide 19: Disciplined Framework: Alpha Creation
DISCIPLINED FRAMEWORK: ALPHA CREATION Digital Colony seeks outperformance in our companies through hands-on participation in all of our businesses Human Direct Operating Differentiated Dynamic Balance ESG Capital Experience M&A Program Sheet Management Recruiting, developing and The principals at Di
Slide 20: Investing Across the Digital Ecosystem
INVESTING ACROSS THE DIGITAL ECOSYSTEM Colony targets investments across the risk/return spectrum, typically with cash yields in place in addition to attractive ROIC growth capex opportunities Core Opportunistic Wireless Hyperscale Small Cell Wholesale / Enterprise Enterprise Towers Data Centers Net
Slide 21: Digital Colony in Action — Databank
Digital Colony in Action — Databank 3 21
Slide 22: DataBank: Enterprise Data Center, Cloud and Connectivity Provider
DataBank is a leading provider of enterprise-class data center, cloud, DATABANK’S NATIONWIDE FOOTPRINT — NFL Cities and connectivity services, offering customers 100% uptime availability of data, applications, and infrastructure. The company’s managed data center services are anchored in world-class
Slide 23: Digital Colony Value Add
DIGITAL COLONY VALUE ADD Since acquisition in 2016, DataBank has transformed from a regional midwestern business to a scaled national data center operator, benefiting from Digital Colony’s alpha creation strategies Digital Colony Operating Partner, Raul Martynek, appointed CEO of DataBank in 2017
Slide 24: Investment Summary
INVESTMENT SUMMARY Key Takeaway: Opportunity to build exposure to powerful digital infrastructure thematic with top industry Current Focus management team at ‘value’ levels. • Clear ‘path-to-digital’ • Deliver G&A savings As legacy assets are monetized, liquidity ‘path-to-digital’ becomes • Invest i