Usi Corporation · TWSE:1304
Usi — Shareholder Meeting (May 2003)
21 slides from Usi's shareholder meeting presentation, May 23, 2003
Slide 1: USI Takes Flight
U.S.I. Holdings Corporation “USI Takes Flight” Annual Shareholders Meeting May 22, 2003
Slide 2: About Forward-Looking Statements
About Forward-Looking Statements This document and the related oral presentation include forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond the control of U.S.I. Holdings Corporation, which may include statements about: • its business strateg
Slide 3: USI Profile
USI Profile · Leading provider of P&C insurance and diverse financial products and services to middle market companies in the U.S. – 8 th largest U.S. Broker* – Leading Benefits Broker (represents 45% of 2002 total revenues) · Integrated national distribution capability – Single distribution point f
Slide 4: National Company With Regional Focus
National Company With Regional Focus [MAP] * Corporate l Insurance Brokerage Offices l Specialized Benefits Offices Note: Percentage figures represent 2002 revenues
Slide 5: Experienced Senior Management Team
Experienced Senior Management Team Name Position Industry Experience Age David Eslick Chairman, President and CEO Tom O’Neil Chief Operating Officer Jeff Jones Chief Marketing Officer Bob Schneider EVP & CFO Ed Bowler Senior VP Corporate Development Ernest Newborn Senior VP, General Counsel and Secr
Slide 6: USI offers a broad range of services
USI offers a broad range of services Property and Casualty Group Employee Benefits · General Commercial Liability · Group Health · Workers’ Compensation · Group Life · Fidelity and Surety Bonds · Group Disability · Professional Liability · Group Dental · Personal Lines (Auto, Home, etc.) · Affinity
Slide 7: Consistent Growth From Diversified Revenue Mix
Consistent Growth From Diversified Revenue Mix Leadership in P&C market complemented by sizable and growing presence in benefits business helps assure healthy growth in all market environments [PIE CHART] Total 2002 Revenues = $328 MM
Slide 8: Attractive Middle Market Customer Base
Attractive Middle Market Customer Base l Very large potential market – Approximately 1.1 million middle market businesses in the U.S. * – USI has less than 2% market penetration – USI can have a local presence on a national scale; primary competitors are local and regional brokers l Customers value
Slide 9: Growth Strategy
Growth Strategy l Consistent organic growth through all market cycles – Diversified revenue mix – Proven, proactive cross-selling capability – Strategic partnerships – Goal is 8–10% growth annually over long-term l Focused strategy for margin expansion – Improving but still room to improve l Augment
Slide 10: Critical Objectives Achieved
Critical Objectives Achieved
Slide 11: Objectives Achieved
Objectives Achieved · Exit non core businesses ® Sold USIA in 4/02 · Complete IPO ® $90 million raised in 10/02 · De-leverage USI ® LT Debt reduced by 51%($109 million) · Positive financial results ® A record year of results · Expand Management Team ® 4 new executive positions · Complete full integr
Slide 12: Financial Overview
Financial Overview e USI
Slide 13: Income Statement
Income Statement ($ in thousands) Change Total Revenue 328,196 311,579 5.3 % (1) Total Expenses 269,761 276,586 (2.5 )% EBITDA 58,435 34,993 % EBITDA Margin 17.8 % 11.2 % % Net Income (from continuing operations) $ 10,936 $ (34,677 ) N/A (1) 8.1% excluding the culling of low margin business
Slide 14: Six Year Revenue Growth Trend
Six Year Revenue Growth Trend GRAPH Note: Revenue figures for 2000 exclude $8 million of non-recurring revenues in 2000 received from strategic partners.
Slide 15: Net Income from Continuing Operations
Net Income from Continuing Operations GRAPH
Slide 16: USI Balance Sheet
USI Balance Sheet Year Ended ($ in thousands) Assets Operating Cash 21,374 30,832 Other Current Assets 254,461 266,055 Intangible Assets 280,130 282,189 Other Assets 23,541 51,784 579,506 630,860 Liabilities Current Liabilities 268,605 285,053 Long Term Debt 103,964 212,950 Other 2,836 8,386 375,405
Slide 17: Capitalization
Capitalization December 31, ($ in thousands) Debt: Term Loan 29,521 112,500 Revolving credit facility 56,075 73,475 Seller notes and other debt 51,239 64,061 Total Debt 136,835 250,036 Stockholders’ Equity (includes redeemable common equity) 204,101 124,471 Total Capitalization 340,936 374,507 Debt/
Slide 18: Milestones to Look for in 2003
Milestones to Look for in 2003 l Focused on Operational Efficiencies – 100 – 200 bps EBITDA Margin Improvement – Eliminate redundancies and utilize best practices l Sales Management Intensity – 8% – 10% Organic Revenue Growth – Retention, cross selling, and new client acquisition l Disciplined Acqui
Slide 19: Long Term Goals
Long Term Goals (3 to 5 years) l USI becomes the leading distributor of fully-integrated risk management and health/welfare to the middle market 30% l Sustained strong organic revenue growth through all market and economic cycles l EBITDA margins of 28% – 30% l Accretive Acquisitions of at least $15
Slide 20: Summary
Summary l 8 th Largest U.S. Broker – Revenue diversity – Middle Market focus l Consistent organic growth through all market cycles – Diversified revenue mix – Proven, proactive cross-selling capability l Focused strategy for margin expansion – Improving but still 500 bps opportunity l Augment growth
Slide 21: U.S.I. Holdings Corporation
U.S.I. Holdings Corporation “USI Takes Flight” May 22, 2003