Rapid Growth Strategy - APRIL 2021 - Northern ...
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Rapid Growth Strategy APRIL 2021
Disclaimer
This presentation contains forward-looking statements. The words “anticipate”, “assume”, “believe”, “estimate”, “expect”, “intend”,
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nature, forward-looking statements involve risks and uncertainties. These statements are based on Northern Data AG
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market conditions affecting the industry, intense competition in the markets in which we operate and costs of compliance with
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NORTHERN DATA AG | 2A lot has happened since the beginning of 2020
2020 2021
9 APR 24 APR 14 SEP 25 NOV 14 DEC 8 MAR 07 APR 08 APR
Takeover of the First DC in the Takeover of
Canadian DC-Specialist Netherlands first fully
Sale of Texas
Kelvin Emtech Group green DC in
site to RIOT for
Sweden
~550 m EUR
Capital raise of Beginning of Capital raise of Capital raise of
30m EUR GPU-based HPC 52m EUR 60 m EUR
Mega-Project
DC in general
for USD 200 m
HPC Vision
NORTHERN DATA AG | 3Focusing on value accretion: Northern Data post sale of Texas site
DC setup
Crypto Hosting
Downside protection
Higher
contribution
Supply chain / partners from
profit share
Multi site strategy agreements
Renewable Energy HPC Services
ESG-compliant
NORTHERN DATA AG | 4We re-invented the modern datacenter (mobile and stationary)
High efficiency through AI Special setup of cold- and
▪ Proprietary AI technology hot-zones
▪ Initiates each processor and ▪ Often makes active cooling
maximizes their performance unnecessary
▪ Runs constant surveillance ▪ Reduces costs
programs ▪ Makes ND-HW 30% more energy-
efficient than conventional HW
Innovative software-concepts
▪ Allows moving applications and Use of air cooling rather than
workloads between different parts water cooling
of the DC (cloud-based) ▪ Possible due to innovative
▪ Increases DC flexibility and software-concepts and use of
reduces cooling-costs
Use of renewable energy cold- and hot-zones
▪ Running the DCs on scalable wind ▪ Allows for massive cost-reduction
and hydro energy in setup and maintenance
▪ Using locations with low-cost green
energy and mild climate
NORTHERN DATA AG | 5Our DC roll-out is well under way – 350 MW capacity in total in FY2021
Additional >700 MW in planning beyond FY2021
Location US 1-3 Location Hydro66
Capacity >30 MW Capacity 40 MW
Location Norway 3 LL Location Norway 2 GN Scale 80 MW
Scale >100 MW
Capacity 11.8 MW Capacity 36 MW Status Operating
Status Deployment
Scale 100 MW Scale 50 MW Use HPC & C.-H
Use HPC & C.-H
Status Operating Status In planning
Use HPC & C.-H Use HPC & C.-H Location Norway 1 NN
Capacity 36 MW
Location Norway 7 GD
Capacity 15 MW Scale 50 MW
Scale 15 MW Status Deployment
Status In planning Use HPC & C.-H
Use HPC & C.-H
Location Canada 1-3 Location Norway 4 KL
Capacity >20 MW Capacity 50 MW
Scale >100 MW Scale 50 MW
Status Deployment Status In planning
Use HPC & C.-H Use HPC & C.-H
Location Norway 5 LA Location Netherlands 1 Location Norway 6 VK Location Frankfurt 1
Capacity 100 MW Capacity 1.4 MW Capacity 10 MW Capacity 0.4 MW
Scale 250 MW Scale 1.4 MW Scale 10 MW Scale 1.5 MW
Status In planning Status Operating Status In planning Status Operating
Use HPC & C.-H Use HPC & C.-H Use HPC & C.-H Use HPC only
HPC and Crypto Hosting HPC only NORTHERN DATA AG | 6The Multisite Strategy based on renewables offers a range of advantages in FY21
DC Specs Hardware Specs
# ASICs under # GPUs under
Risk Reduction1 Mild Climate
management management
14 locations Average Temp of 6°C ~70,000 ~250,000
Green Energy Usage / Developed Capacity
High DC Standards Time to Market
PUE in MW
>90% / ~1.04 Up to Tier 3 ~350 2-4 months
Financials FY2021 Locations in Planning
Beyond FY2021e
Average Revenue2 per Average Costs2,3 per Additional Capacity in
Additional Sites4
MW MW MW
EUR ~1 m EUR ~0.7 m 20 >700
Average Capex per Additional GPUs and
EBITDA Margin De-Centralization
MW ASICs
~ 35% EUR ~0.4 m 4-6 countries > Triple-digit k
1. Sites operating or currently in development as of April 2021
2. Blended
3. COGS & all SG&A
4. Sites currently in the planning phase NORTHERN DATA AG | 7DCs are the foundation to our well-established crypto hosting and the
accretive HPC services business
The most successful cloud
2 Crypto Hosting 3 HPC Services companies today used a
profitable core business to
One of the world leading
Guaranteed recurring
distributed HPC cluster by
build up a price competitive
revenues with
Q2 2021 cloud offering
downside protection and
upside gain share
depending on crypto Perfectly positioned to
prices via profit share serve the growing demand
agreements
Using crypto hosting as a Crypto hosting provides the
base load case enables us to
avoid idleness and offer the platform from which we can
best prices in the market sell revolutionary HPC
services
1 Datacenter
Operations
We will be the only ESG-compliant scale DC for crypto and HPC services
Our DCs are future-ready and design tailored for application specific processors (ASICs) to be installed
NORTHERN DATA AG | 81 Leading in specialized datacenters
One of the world leading specialized datacenters, both in scale & innovation, Northern Data is solving
Vision the world’s most challenging computing problems quickly, cost-efficiently and sustainably.
Cost Efficiency Speed Scale Sustainability
Leading AI powered container Long standing preferential Not just provider of the largest 90% of our sites exclusively
software. Operational supplier relationships GPU Cluster in the world with use renewable energy – We
efficiency through proprietary Backlog of future DC sites more than 250,000 even aim for a circular
tower design and full DC Agile development approach processors but also provider ecosystem. ND is committed
integration. Lowest energy offering HW & SW out of one of around 70,000 ASIC to global ESG standards
costs through global location hand processors.
advantages.
1 year 2.5x #1 90%
until customer’s HW is faster than an average Most powerful distributed of our sites are fully
fully amortized1 DC clusters2 cluster by 2021 renewable
1) Calculation based on current Crypto Prices March 2021
2) Calculation comparing NDs average to CyrusOne, Digital Realty, AWS and Equinix average
NORTHERN DATA AG | 92 A simplified view of our crypto hosting business
Crypto Northern
Miner Data
Specification and supply
chain by ND
Hardware HW Suppliers
Base Case (recur. )
Hosting Fee Datacenter Run Costs Energy Provider
Infrastructure &
Engineering Fee
Maintenance Costs
DC Infrastructure
Upside Case
Profit Share
Investment
amortization
Crypto Market
Crypto Rewards
NORTHERN DATA AG | 102 Our approach to crypto hosting is unique…
Committed Growth Path
ND operating model secures resilient mining revenue
streams for our customers, creating high demand for
growth projects
Profit Share Agreements
Related revenues are fully recurring with a profit-
sharing upside potential depending on the crypto price
– Translating to >35% EBITDA margins in FY2021
Scale Advantage
Through long standing supplier relationships we
secured our server infrastructure growth of >10 exahash
in an otherwise dried up market
NORTHERN DATA AG | 112 …which has allowed us to become a crypto hosting market leader
Scale – powerful Growth – Mastering an Profitability –
customer base exponential roll-out Unparalleled margins
The world’s largest mining Despite increased speed and We will operate at very high profit
companies are amongst our complexity of our exponential roll- margins even for Crypto and
customers out plans our supply chain and DC market standards
operations are delivering on target
NORTHERN DATA AG | 12Besides Crypto, also the HPC market is growing rapidly –
3 primarily due to a number of emerging trends
Technology Mega Trends HPC Market Growth Trend
Automation HPC Cloud Forecast shows massive growth
Rise of AI & AR are just two examples of tech Values in $M
requiring increased data processing
8.800
Digitization +23.6% p.a. 7.600
Trend fueling the exponential need for more
6.400
data processing at faster speeds
5.300
Explosion of Data capacity 4.300
3.910
New technologies exponentially expand the
data volumes generated, stored & processed 2.466
Generation Z
Digital Natives, looking to get content faster,
are driving the greater processing need 2018 19 20 21 22 23 2024
Source: Hyperion research, 2020
NORTHERN DATA AG | 13HPC Life AI Physics Rendering
Science
Customers
A simple
Fees Scale Storage Security
view of
our HPC Platform for HPC Applications
business
Crypto Base Case (100% load of GPUs)
Crypto
Miner
Provisioning
Northern
Data
Clustering
Virtualization
HPC DC Operations
Renewable Energy
NORTHERN DATA AG | 143 There are three factors that will put us ahead of the competition
Due to our base case we have a cost
Crypto Base advantage over competition: 40%
Lower price than comparable AWS
Case We have no processor vacancies and can
offerings1
cross-finance our offering
Specialized Our DCs are built for specialized processors
10 years
and optimized to such a degree that our
Processor proprietary design allows PUE levels ofWe have a three horizon business plan to become the world leader in
specialized HPC used for crypto hosting and other HPC use cases
Crypto hosting New HPC services
2021 2022 2023 2024
Horizon 1 Horizon 2 Horizon 3
Goal Deliver on crypto & HPC roll- Establish ourselves as an EU Stay ahead of the market by
out plans and enter HPC leader for specialized HPC services upgrading technology stack to
market as a major player and further expand crypto hosting application specific hardware
Advance roll-out of new Boost crypto hosting profits Expand into new crypto
ASIC cluster until EoY 2022 through increased profit hosting use cases as
share needed
Milestones Complete roll-out of new 250k Dominate EU market for a Upgrade hardware stack to
GPU HPC cluster by Q2 2021 single specialized HPC use application specific processors
case (ASICs) for target markets
Acquire first customer base in Build up software Secure new supply lines for
AI HPC in financial services, ecosystem to expand into technology shift
telecom, and life science other use cases
NORTHERN DATA AG | 16Why to invest in Northern Data
Leading specialized HPC DC operator – We are building the
largest GPU cluster in the world with a future proof DC design
Rapid growth – With our revenue growth we outperform a
double-digit growth market that is fueled by mega trends
Stellar profitability– Market leading operational efficiency and a profit
share model allow us to gain EBITDA margins of 35+% (FY2021) Thank you
Low risk – Our HPC growth efforts are 100% protected by a for your time
crypto hosting base case
Strong market position – Our customer base & our preferred
supplier relationships are unmatched in the market
Clear outlook – Our order back log and site development pipeline
fully cover our growth plans of the next years (>700 MW)
Sustainability platform – All our newly developed sites are
entirely green and we are building towards a circular ecosystem
NORTHERN DATA AG | 17Northern Data AG An der Welle 3 60322 Frankfurt am Main Deutschland Jens-Philipp Briemle Head of Investor Relations Phone: +49 171 557 6989 Email: jens-philipp.briemle@northerndata.de ir@northerndata.de N OR THE RN DA T A. DE
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