Suncar Technology Group Inc. · NASDAQ:SDA
Suncar Technology — Citizens JMP Technology Conference 2024
35 slides from Suncar Technology's conference presentation, Mar 5, 2024
Slide 1: SunCar – Leading Technology Platform For B2B Automotive Services and eInsurance
March 2024 SunCar – Leading Technology Platform For B2B Automotive Services and eInsurance Citizens JMP Technology Conference Presentation
Slide 2: Cautionary Statement Concerning Forward Looking Statements
This document contains forward - looking statements regarding SunCar Technology Group Inc . , a Cayman Islands exempted company, NASDAQ Ticker Symbol : SDA (the “Company”) . We base these forward - looking statements on our expectations and projections about future events, which we derive from the i
Slide 3: Company Profile
> Company Profile
Slide 4: SunCar Overview
$249 $282 $317 2021 2022 Strong 1H YoY Total Revenue Growth from 2022 – 2023 (4) LTM June 2023 SunCar Overview 4 Platform Highlights Key Financial Metrics Total Revenue (3) • Leading platform in China for digitized enterprise Auto Services and Auto eInsurance • ~$120B (1) total addressable market in
Slide 5: Consistent and Steady Long-Term Growth
Impacted by COVID Shutdowns $37 $77 $138 $220 $265 $239 $249 $282 $317 2021 2022 LTM June 2023 Consistent and Steady Long - Term Growth Steady revenue growth across economic cycles 5 Total Revenue (2015 – LTM June 2023) (1) 2015 – LTM (2) June 2023 ~33% CAGR 2015 2016 2017 2018 2019 2020 Supported b
Slide 6: One Stop Solution for Auto Services and eInsurance
One Stop Solution for Auto Services and eInsurance 6 One Stop Auto Services Solution for Enterprise Clients SunCar Capability Demands from enterprise clients Nationwide coverage Full services Online digital systems Validated quality and economies of scale ▪ Full geographic coverage to serve end cust
Slide 7: Passionate, Experienced and Innovative Management Team
Mr. Zaizhang Ye Co - Founder, Chairman & CEO • 23 years management & entrepreneurship experience • 15 years of Auto Service experience Our management has experience in the Auto Services and Insurance industry with a deep understanding and innovative mindsets regarding industry value chain and client
Slide 8: Auto Services and Insurance Markets in China
Auto Services and Insurance Markets in China
Slide 9: China is one of the largest markets globally in registered cars
China is one of the largest markets globally in registered cars China is the Largest and Fastest Growing Car Market in the World (1) Hedges & Company – Estimated (2) Hedges & Company – Estimated (3) Chinese Ministry of Public Safety (4) Wall Street Journal – Estimated (5) ACEA – Estimated 9 16M 11M
Slide 10: B2B Auto Services Market in China
• As the largest passenger vehicle market in the world, China’s high car ownership rate generates huge market potential for China’s B2B Auto Services market • SunCar’s technology platform streamlines and improves large enterprises’ ability to offer Auto Services to end customers Commentary B2B Auto
Slide 11: B2B Auto Services Market in China (cont'd)
B2B Auto Services Market in China (cont’d) 11 % of Cars Receiving Car Services 30% 25% 20% $18B $15B $12B $150 24B 20B 16B 200 Average Annual Value / End Customer 30B 25B 20B 250 Commentary • Potential upside as the percentage of car owners receiving car services through SunCar platform significantl
Slide 12: China Auto Insurance Industry
$116 $123 $129 $134 $140 $153 $146 2022 2023E 2024E 2025E 2026E Note: Non - financial metrics as of December 2023 (1) GlobalData – Based on Auto Insurance gross written premiums (2) Based on SunCar total GMV in the last - twelve - month (LTM) as of December 2023 2027E 2028E China Auto Insurance Indu
Slide 13: SunCar Auto Insurance – Serviceable Market
SunCar Auto Insurance – Serviceable Market Note: Non - financial metrics as of December 2023 (1) Shisanjing Consulting Extensive Cooperation with the Largest Insurance Companies 62,000+ Auto Service vendors selling eInsurance through SunCar platform 2 Minutes Average time to purchase Auto eInsurance
Slide 14: Digitized Platform for Auto-Services
Digitized Platform for Auto - Services
Slide 15: Strong Momentum and Market Share Expansion in Auto Services
December 2022 June 2023 $188 $199 $208 2021 2022 LTM June 2023 Strong Enterprise Client Growth from December 2022 to June 2023 Strong Momentum and Market Share Expansion in Auto Services 15 Full - Service Coverage Key Financial Metrics Offering full spectrum Auto Services • 300+ types of services •
Slide 16: Traditional Process For Auto Services Is Manual and Inefficient
Traditional Process For Auto Services Is Manual and Inefficient Customer Pain Points Service Shop Pain Points End Customers Service Shops Find Service Shops Sales & Marketing RFQ Send/ Receive RFQ Service Shop Diligence Respond/ Review RFQ Review & Compare RFQs Negotiate Final Price Wait for RFQ Dec
Slide 17: SunCar Process Solves The Pain Points
17 SunCar Process Solves The Pain Points Banks / Insurance Companies End Customers SunCar Service Providers Full Geographic Coverage 300+ Service Offerings Streamlined Automated Process for B2B Clients and their End Customers Large Enterprise Partnerships High Brand Loyalty Access to Large Network o
Slide 18: SunCar Auto Services Platform – Business Model
SunCar Auto Services Platform – Business Model Note: Operating metrics as of December 2023 18 Connecting to Over 46,000 Suppliers and Car Service Vendors 62,000+ Enterprise Clients Bank Bank Customer SunCar Auto Services Platform $ (Revenue) $ (COGS) Vendor 1 Vendor 2 Vendor 3 x Customizable menu x
Slide 19: Highly Integrated SunCar Auto Services Technology Platform
Highly Integrated SunCar Auto Services Technology Platform Note: Non - financial metrics as of December 2023 19 Enterprise Clients Service Shops Connect & manage over 46,000 suppliers Provides digital platform systems User - friendly, high efficiency operation tools 880+ Bank Clients 280+ Insurance
Slide 20: Marquee Enterprise Clients with Significant Land and Expand Opportunities
Marquee Enterprise Clients with Significant Land and Expand Opportunities 20 SunCar’s nationwide reach has created significant opportunity to land and expand across large banking, insurance, and other organizations across China >880 Banks >280 Insurance Companies >200 Enterprise Clients in OEM, Inte
Slide 21: Strong Growth Across Top Five Auto Services Enterprise Clients
Strong Growth Across Top Five Auto Services Enterprise Clients Customer 1 15% Customer 2 9% Customer 3 5% Customer 4 3% Customer 5 2% All Others 66% Note: Non - financial metrics as of December 2023 (1) Revenue and CAGR based on combined USD revenue for top five customers across the period of 2021 –
Slide 22: Land & Expand – Auto Services Clients Case Studies
Land & Expand – Auto Services Clients Case Studies Top - 2 Banking Clients Note: Non - financial metrics as of December 2023 (1) Public Sources (2) Revenue growth based on USD revenue for the period 2021 – 2023. Based on estimated 2023 Revenue for Bank 1 and Bank 2 22 Enterprise Client Description (
Slide 23: SunCar Auto Service Platform – Growth Strategy
SunCar Auto Service Platform – Growth Strategy 23 Expansion of the Types and Volume of Auto Services Expand with Existing Enterprise Clients International Expansion Through M&A Opportunities Regional Expansion
Slide 24: Technology Enabled Auto eInsurance
Technology Enabled Auto eInsurance
Slide 25: China's Leading Digital Auto eInsurance Platform
China’s Leading Digital Auto eInsurance Platform (1) Revenue CAGR based on USD revenue for the period 2021 – LTM June 2023. Non - financial metrics as of December 2023 (2) Total eInsurance revenue includes SaaS and Technology Services (3) YoY Growth is based on USD revenue for 6 - month ending June
Slide 26: SunCar's Platform Offers Complete Insurance Lifecycle
SunCar’s Platform Offers Complete Insurance Lifecycle 26 Fully Digital User - Friendly Robust Product Offering Innovative and Efficient 2 Minutes to get Full Policy
Slide 27: SunCar Auto eInsurance Platform – Business Model
SunCar Auto eInsurance Platform – Business Model Note: Operating metrics as of December 2023 27 Back - end Tech Integration App - Based eInsurance Solution Insurers 62,000+ Sales Partners Sales Partners Service Providers Car Owner Car Owner Connects With Sales Partner Sales Partner provides Insuranc
Slide 28: SunCar's Modern Technology Stack
SunCar’s Modern Technology Stack 28 SunCar Cloud Applications Platform Integration Infrastructure AI Task Scheduling | Hybrid Cloud | High Security SunCar Multi - Tenant Platform Enterprise Clients API docking, front - end plug - in and module integration OEM and Emerging NEV Companies Innovative an
Slide 29: eInsurance Business Segments
eInsurance Business Segments Note: Non - financial metrics as of December 2023 29 Insurance Renewal for Registered Cars New Cars / New Electric Vehicles (NEVs) SaaS & Technology Services • Auto eInsurance renewal for ~2M+ cars as of LTM June 2023 through partnership with 62K+ sales partners • High g
Slide 30: NEV OEM Sales Partners Overview
NEV OEM Sales Partners Overview • Engaging with mainstream NEV clients • Direct cooperation with NEV manufacturing clients providing a full - spectrum eInsurance solution Select NEV Manufacturing Sales Partners New Car / NEV Insurance Driving Significant Growth Note: Non - financial metrics as of De
Slide 31: SunCar's Insurance Platform – Growth Strategy
SunCar’s Insurance Platform – Growth Strategy 31 International Expansion Through M&A Opportunities Regional Expansion for all Registered Vehicles Exploding Demand for EV Sales in China Higher Volume - based Commissions With the Continuous Expansion of Car Ownership in China
Slide 32: Financial Summary
Financial Summary
Slide 33: Annual P&L
▪ In the first half of 2023, the Auto Services business was recovering from the aftermath of COVID - 19 and sluggish return - to - office ▪ eInsurance growth fueled by the rapid adoption of electric vehicles in China as well as Suncar’s strong relationship with NEV OEMs ▪ Promotional service expense
Slide 34: Valuation & Growth Benchmarking
~1.6x 9.1x 8.5x 7.4x 4.4x 9.3x 11.3x Vertical Software Companies Average: 12.3x 18.1x 13.0x 13.0x 13.1x 11.7x 9.1x LTM Growth Rate (4) (%) Valuation & Growth Benchmarking 34 Insurtech Companies Average: 7.4x EV/2024E Revenue (3) 22% 9% 11% 13% 4% 10% 16% 15% 12% 19% 7% 10% 6% Average: 9.1% Average:
Slide 35: Thank you
Thank you www.SunCartech.com
SunCar Technology Group — Citizens JMP Technology Conference 2024 on 6ix