Innovate Corp. · NYSE:VATE
Innovate — Investor Presentation (November 2021)
37 slides from Innovate's investor presentation, Nov 4, 2021
Slide 1: INNOVATE
w INNOVATE VATE LISTED NYSE
Slide 2: INNOVATE is who we are, INNOVATE is what we do
INNOVATE IS WHO WE ARE INNOVATE IS WHAT WE DO 2
Slide 3: INNOVATE is a platform of best-in-class assets in 3 key areas
INFRASTRUCTURE • DBM Global: Largest steel fabrication and erection company in the USA LIFE SCIENCES • R2 Technologies: FDA-cleared revolutionary device to lighten and brighten skin in the $22 billion(1) aesthetic dermatology market • MediBeacon: Developing the first real-time monitoring of kidney f
Slide 4: Chairman, CEO and Executive Management
AVIE GLAZER – CHAIRMAN OF THE BOARD • Leads INNOVATE’s strategic and philosophical direction • Strong insider investment having purchased over $62 million in last 2 years • An owner of the Super Bowl champion Tampa Bay Buccaneers • Co-Chairman of Manchester United – the world’s most popular sports t
Slide 5: DBM Global
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Slide 6: DBM Global
• The largest steel fabrication and erection company in the USA • Approx. $1.6 billion Backlog as of 9/30/21 (up from $395 million on 12/31/20) Approx. $1.9 billion Adjusted Backlog(1) as of 9/30/21 taking into account awarded, but not yet signed contracts • DBM is poised for growth from increased i
Slide 7: Select DBM Steel Fabrication & Erection Projects
SoFi Stadium, Los Angeles Hudson Yards, New YorkApple Headquarters Facebook MPK21 Phoenix Convention CenterFort Benning Hospital Cosmopolitan Resort & Casino 7 Select DBM Steel Fabrication & Erection Projects 7
Slide 8: DBM Financial Summary
DBM Financial Summary 8 $579 $716 $713 $677 $0 $100 $200 $300 $400 $500 $600 $700 $800 2017 2018 2019 2020 Revenue $23.6 $27.7 $24.7 $6.8 $0 $5 $10 $15 $20 $25 $30 2017 2018 2019 2020 Net Income Attrib. to INNOVATE $498 $395 $1,606 $826 $608 $1,889 $0 $500 $1,000 $1,500 $2,000 2019 2020 21Q3 Backlog
Slide 9: Pansend Genovel Life Sciences
PANSEND GENOVEL 9 LIFE SCIENCES
Slide 10: Pansend Life Sciences
Pansend Life Sciences 10 PANSEND
Slide 11: Pansend Life Sciences
• Pansend is INNOVATE’s life sciences platform • Pansend has investments in four life science companies: R2 Technologies, MediBeacon, Triple Ring Technologies and Genovel Orthopedics • Pansend’s outstanding leadership team has a proven track record for developing and monetizing life science companie
Slide 12: R2 Technologies
R2 Technologies ™ Technologies
Slide 13: Glacial Rx
• Glacial Rx®, launched in 2021 by R2 Technologies, is the first FDA cleared treatment for age spot removal that uses Cryomodulation – a patented cooling technology. This revolutionary system soothes skin while effectively removing age spots • Glacial Rx® is anticipated to disrupt conventional heat-
Slide 14: Glacial Rx Laser Facial
Glacial Rx Laser Facial Feels good Little to no downtime No heat Proven effective on age spots Uses Cryomodulation technology Can be performed any time of the year No smoky plume Results are typical after a single treatment and one can expect to see the full benefit of Glacial Rx within 1 to 2 month
Slide 15: MediBeacon
MediBeacon MediBeacon
Slide 16: MediBeacon
MediBeacon 16 (1) Based on studies from LifeSci Advisors (2019) and L.E.K. (2017) commissioned by MediBeacon (2) Based on Effimed Exploratory GI Market Research (2017) commissioned by MediBeacon (3) Based on Medicare Plan B data from 2012-2017 combined with MediBeacon market assumptions (4) Based on
Slide 17: 17
17
Slide 18: Other Pansend Opportunities
Other Pansend Opportunities 18 GENOVEL
Slide 19: Other Pansend Opportunities
Triple Ring Technologies • A diversified, profitable technology and product development firm with 100 experienced scientists & engineers, including 21 PhDs • Completed 450 projects from technology assessments to product development • 2020 revenue was $27 million • Pansend owns 23%(1) Genovel Orthope
Slide 20: Spectrum HC2 Broadcasting
SPECTRUM HC2 Broadcasting 20
Slide 21: HC2 Broadcasting
• One of the largest broadcast station groups in the US with approx. 230 broadcast stations in over 90 markets – including 34 of the top 35 markets • One of the largest owners of broadcast spectrum in the US with more than 2.3 billion MHz POPs of spectrum • As cable TV “cord cutting” increases and t
Slide 22: HC2 stations carry approx. 1,350 channels from over 80 diginets
22 HC2’s stations carry approx. 1,350 channels with programming from over 80 diginets
Slide 23: OTA free TV households are growing rapidly
“The extraordinary growth of multicast TV networks over the past five years is one of the less told stories in the media industry. Today, more people watch more advertising for more time on multicast networks in the U.S. than they do on ad-supported streaming services, and all of that viewing is new
Slide 24: Spectrum is becoming increasingly valuable
• In 2017, the FCC reallocated OTA broadcasting spectrum to the telecom industry – auction prices were $0.93 per megahertz POP • INNOVATE owns 98% of HC2 Broadcasting (86% fully diluted) Spectrum is becoming increasingly valuable & HC2 Broadcasting owns 2.3 billion MHz POPs of spectrum 24 0.93 1.11
Slide 25: Additional INNOVATE Opportunities
25 ADDITIONAL INNOVATE OPPORTUNITIES
Slide 26: INNOVATE – Additional Opportunities
INNOVATE – Additional Opportunities 26 (1) There are no assurances that milestones will be achieved. (2) This estimate may change based on changes to the quarterly forecasts and actual results reported on the 2020 U.S. tax return. Benevir • As part of INNOVATE’s sale of Benevir to Janssen Biotech in
Slide 27: Summary
27 SUMMARY
Slide 28: Chairman quote on best-in-class assets
“It’s rare to uncover a single investment in the new economy that’s best-in-class. To find a company that has multiple best-in-class assets is extraordinary” Avie Glazer INNOVATE Chairman 28
Slide 29: Appendix
29 APPENDIX
Slide 30: Consolidated Q3 Results
(1) Net Income attributable to INNOVATE Corp. (2) See Appendix for reconciliation of Non-GAAP to U.S. GAAP (3) Adjusted Backlog takes into consideration awarded, but not yet signed contracts and there are no assurances that these contracts will be entered into in the timeframe we anticipate or at al
Slide 31: Current Credit Picture
Current Credit Picture 31 Debt Summary ($ millions) Maturity Sep-21 Dec-20 11.50% Senior Secured Notes 2021 $ — $ 340.4 8.50% Senior Secured Notes 2026 330.0 — 7.50% Convertible Senior Notes 2022 3.2 55.0 7.50% Convertible Senior Notes 2026 51.8 — Line of Credit (1) 2024 5.0 15.0 Infrastructure Debt
Slide 32: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (Q3 2021)
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA 32 (in millions) Three months ended September 30, 2021 Infrastructure Life Sciences Spectrum Non- operating Corporate Other and Eliminations INNOVATE Net (loss) attributable to INNOVATE Corp. $ (211.9) Less: Discontinued operations (200.3)
Slide 33: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (Q3 2020)
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA 33 (in millions) Three months ended September 30, 2020 Infrastructure Life Sciences Spectrum Non- operating Corporate Other and Eliminations INNOVATE Net (loss) attributable to INNOVATE Corp. $ (17.3) Less: Discontinued operations 8.2 Net
Slide 34: DBM Global Adjusted EBITDA reconciliation
(in millions) DBM Global (Infrastructure Segment) For the Year Ending December 31, 2015 2016 2017 2018 2019 2020 Net Income (loss) attributable to INNOVATE Corp., excluding discontinued operations $ 24.4 $ 28.0 $ 23.6 $ 27.7 $ 24.7 $ 6.8 Adjustments to reconcile net income (loss) to Adjusted EBITDA:
Slide 35: For more information
For more information email ir@innovatecorp.com or visit www.innovatecorp.com 35
Slide 36: Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains, and certain oral statements made by our representatives from time to time may contain, "forward-looking statements." Generally, forward-looking statements include information describing acti
Slide 37: Non-GAAP Financial Measures
Non-GAAP Financial Measures In this presentation, INNOVATE refers to certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted EBITDA, which excludes results for discontinued operations, and Adjusted EBITDA for its