Suncar Technology Group Inc. · NASDAQ:SDA
Suncar Technology — Investor Presentation (October 2024)
34 slides from Suncar Technology's investor presentation, Oct 28, 2024
Slide 1: Leading Technology Platform For B2B Auto eInsurance & Services
1 Leading Technology Platform For B2B Auto eInsurance & Services Investor Presentation Oc t o be r 20 2 4
Slide 2: Cautionary Statement Concerning Forward Looking Statements
2 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
Slide 3: Company Profile
3 Company Profile
Slide 4: SunCar Overview, Platform Highlights and Key Financial Metrics
4 $159 $203 1H 2023 1H 2024 $282 $364 $407 2022 Total Revenue 1H of 2024 2023 LTM June 2024 SunCar Overview Platform Highlights Key Financial Metrics Total Revenue (3) • Founded in 2007, SunCar is a leading platform for digitalized B2B Auto Services and Auto eInsurance in China • ~$120B (1) total ad
Slide 5: SunCar at a Glance
SunCar at a Glance Leveraging Technology to Facilitate Automotive Services & eInsurance to Enterprise Customers Note: Historical financials based on public filings from the period ending June 30, 2024 Marquee Customer Base with 1,400+ Enterprise Clients & Partners in China Strong Financial Performan
Slide 6: Marquee Enterprise Customers & Partners
Marquee Enterprise Customers & Partners Unique Value Proposition for Enterprise Customers & Partners SunCar’s Technology & Data Integrations with Enterprise Customers & Partners creates significant barriers to entry Multi - Tenant Platform SunCar Cloud x Leading cloud - based platform to streamline
Slide 7: Investment Thesis
Strong Track - record of Growth with Over 33% CAGR for Over 10+ Years Investment Thesis Long - standing Relationships with the Largest Enterprises in China Including Auto Manufacturers, Insurance Companies, Banks, etc. Technology & Data Integrations with Enterprise Customers & Partners Allow for Sig
Slide 8: One Stop Solution for Auto eInsurance & Services
One Stop Solution for Auto eInsurance & Services Nationwide Auto eInsurance Technology Platform ▪ High marketing & sales cost ▪ Ability to customize and optimize insurance for end customers ▪ Opaque insurance pricing restricts price optimization ▪ Time consuming, inefficient and manual application p
Slide 9: Consistent Long-Term Growth
Impacted by COVID Shutdowns $37 $77 $138 $220 $265 $239 $249 $282 $364 $407 2022 2023 LTM June 2024 Consistent Long - Term Growth Steady revenue growth across economic cycles Total Revenue (2015 – LTM June 2024) 2015 – 1H 2024 ~33% CAGR 201 5 2016 2017 2018 2019 202 0 2021 Supported by developed cap
Slide 10: Experienced and Innovative Management Team
M r . Z a i zhan g Ye Co - Founder, Chairman & CEO • 24 years of Management & Entrepreneurship experience • 16 years of Auto Services experience • Serial entrepreneur with multiple successful exits SunCar’s management has unique experience in digitalizing China’s Auto Services and Insurance industri
Slide 11: Auto Services and Insurance Markets in China
11 Auto Services and Insurance Markets in China
Slide 12: China is the Largest and Fastest Growing Car Market
12 China now has the largest auto market in the world China is the Largest and Fastest Growing Car Market (1) Hedges & Company – Estimated (2) Chinese Ministry of Public Safety (3) Wall Street Journal – Estimated (4) ACEA – E s t i m a t e d 16M 11M 30M (3) US EU China Registered Cars by Country (20
Slide 13: China's Auto Insurance Industry
China’s Auto Insurance Industry 2024E 2025E 2026E Note: Non - financial metrics as of June 2024 (1) GlobalData – Based on Auto Insurance gross written premiums ~$120B (1) Total Auto Insurance GMV $ in billions Based on a $1.8B total GMV, SunCar has an implied market share of ~1 - 2% , presenting sig
Slide 14: SunCar Auto Insurance – Serviceable Market
SunCar Auto Insurance – Serviceable Market Note: Non - financial metrics as of June 2024 Extensive Cooperation with the Largest Insurance Companies 65,000+ Vendors & 18 Manufacturers Network of vendors and manufacturers selling eInsurance through SunCar platform 2 Minutes Average time to purchase Au
Slide 15: B2B Auto Services Market in China
B2B Auto Services Market in China % 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’s platform significantly increase
Slide 16: Technology-Enabled Auto Insurance
16 T echnolog y - Ena b led Auto Insurance
Slide 17: China's Leading Digital Auto Insurance Platform
$1,058 $1,771 LTM June 2023 LTM June 2024 China’s Leading Digital Auto Insurance Platform Online Quotation and CRM System No Underwriting Risk or Loss Exposure Direct Connection to Car Insurance Database System Features Highly I n t e g r at ed Highly Se cu r e C lo u d Based High Ac cu r a c y Has
Slide 18: eInsurance Revenue Drivers
eInsurance Revenue Drivers Note: Historical financials based on public filings 18 Auto Insurance Transactions for Registered Cars New Cars / Electric Vehicles (EVs) Technology Services • ~5M Auto eInsurance transactions completed LTM June 2024 through partnership with 65,000+ sales partners and 18 a
Slide 19: SunCar Auto eInsurance Platform – Business Model
SunCar Auto eInsurance Platform – Business Model Note: Non - financial metrics as of June 2024 Back - end Tech Integration App - Based eInsurance Solution Insurers 65,000+ Sales Partners Sales Partners Service Providers Car Owner Car Owner Connects With Sales Partner Sales Partner provides Insurance
Slide 20: EV OEM Sales Partners Overview
EV OEM Sales Partners Overview • Generate incremental revenue through sale of insurance during new - car purchase • Increased owner connectivity improves post - sale experience • Additional monetization post - sale through sale of insurance renewal and auto services Select EV Manufacturing Sales Par
Slide 21: SunCar's Insurance Platform – Growth Strategy
SunCar’s Insurance Platform – Growth Strategy International M&A Opportunities Regional Expansion Exploding Demand for EVs Continuing Growth in New Car Sales 21
Slide 22: Insurance-related Technology Services Business
22 Insurance - related Technology Services Business
Slide 23: SunCar's Technology Stack
SunCar’s Technology Stack AI Task Scheduling | Hybrid Cloud | Big Data Applications P l a t f o r m I n t e g r a t i o n Infrastructure S unC a r M ul t i - T e n a n t P l at f o r m Technology Driven 200+ T ech s t a f f 165 IP r egi s t e r ed 6 T o p IT A w a r ds Managing Complexity – 45+ sub
Slide 24: Unlocking SunCar's Technology Services Market Potential
Unlocking SunCar’s Technology Services Market Potential Large Gas Vehicle Market Potential • Significant value delivered by SunCar through bundling of insurance product for new vehicle sales • The Company is targeting the gas vehicle market which represents an addressable market opportunity 30x larg
Slide 25: Digitalized Platform for Auto-Services
25 Digitalized Platform for Auto - Services
Slide 26: Strong Momentum and Market Share Expansion in Auto Services
$199 $215 $224 2022 2023 Strong Auto Services Transaction Growth from 2022 to 2023 LTM June 2024 Strong Momentum and Market Share Expansion in Auto Services Full - Service Coverage Key Financial Metrics Offering the full spectrum of Auto Services to Enterprise Clients • 300+ types of services simila
Slide 27: SunCar Auto Services Platform – Business Model
SunCar Auto Services Platform – Business Model Connecting to Over 48,000 Suppliers and Car Service Vendors 1,400+ Enterprise Clients Bank Bank C us t omer SunCar Auto Services Platform $ (Revenue) $ (COGS) V e n d o r 1 V e n d o r 2 V e n d o r 3 x C u s t omi z able menu x Nationwide coverage x 48
Slide 28: Marquee Customers with Significant Land and Expand Opportunities
>300 Insurance Companies Marquee Customers with Significant Land and Expand Opportunities SunCar’s nationwide reach has created a significant opportunity to land and expand within our existing large enterprise customer base >900 Banks >200 EVs, Other Services Note: Non - financial metrics as of June
Slide 29: SunCar Auto Services Platform – Growth Strategy
SunCar Auto Services Platform – Growth Strategy 29 Expansion of the Types and Volume of Auto Services Expand within Existing Enterprise Clients International Expansion Through M&A Regional Expansion
Slide 30: Financial Summary
30 Financial Summary
Slide 31: P&L
31 P&L Note: The revenue growth rate of LTM June 2024 is compared to the responding period of LTM June 2023 LTM June 24 FY2023 FY2022 FY2021 ($ in millions) Revenue $224 $215 $199 $188 Auto Services $184 $149 $83 $61 Auto eInsurance Business $144 $118 $68 $57 Insurance Intermediation Service $40 $31
Slide 32: Adjusted EBITDA Reconciliation
32 Adjusted EBITDA Reconciliation Note: Historical financials based on public filings (1) Non - cash expenses related to additional platform investments, software, equipment and property (2) Includes non - recurring transaction related fees and expenses associated with the Company’s Business Combina
Slide 33: Valuation & Growth Benchmarking
33 2 . 5 x Insurtech Companies Average: 8.8x 15.3x 8.2x 7.4x 4.4x 17.0x 14.5x 14.2x 13.1x 12.5x 12.0x 11.6x 10.7x LTM Revenue Growth Rate (3) (%) Valuation & Growth Benchmarking Vertical Software Companies A v e r a g e : 13 . 2x EV/LTM Revenue 28 % 13% 1 1 % 8% 4% 26% 15% 1 1 % 10% 9% 8% 8% 7% Av e
Slide 34: Thank you
34 Thank you www.SunCartech.com
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