Usi Corporation · TWSE:1304
Usi — Investor Presentation (May 2004)
24 slides from Usi's investor presentation, May 26, 2004
Slide 1: U.S.I. Holdings Corporation Investor Presentation May 2004
Exhibit 99.1 Exhibit U.S.I. Investor May 2004 Holdings 99.1 Presentation Corporation
Slide 2: About Forward-Looking Statements
About This •Corporation, All projected When although forward-looking these “Management’s qualify thestatements future its business financial future plans, document integration plans, used Forward-Looking all regulatory not costs, forward-looking objectives, operating in intentions all which strategy
Slide 3: USI Senior Management Team
USIBowler Name David Tom Jeff Bob Ed Ernest 130 Experience Team Jones years Senior Schneider O’Neil has Position Eslick Newborn worked experience Chief Senior Management with Chief Chairman, EVP Industry Marketing 200+ Senior together VP, Operating &–Corporate acquisitions Chief middle VP, Experienc
Slide 4: USI: A National Middle Market Broker
USI A National Middle Broad Demonstrated – (a) Approximately 9th Leading 59 400+ Predominantly Buying 5Property 47% Market Source: broad Profile Offices largest Product of sales Market Scale top decisions product Leader Benefits & July in U.S. professionals 400 casualty, Cross-Selling Resources with
Slide 5: Investment Highlights
Investment Consistent Focused Augment Experienced – Target Diversified 5Proven, 21.7% 28% Substantial 5% Over -10% ofin 130 USI at in strategy 3growth proactive organic least 2003 to Highlights years and fully revenue 5 years 10% motivated for target with of % diluted growth cross-selling middle of
Slide 6: Diversified Revenue: Scale and Local Presence
Revenue Diversified Property Group Specialized National USI Total West Southwest Midwest Northeast Southeast 2003 Employee Scale and Diversity Coast Revenues Revenue Benefits Casualty 7% 44% 16% and 10% 24% Benefits Local Services Mix =58% $355 Presence 35% MM 7%
Slide 7: Broad Insurance Product Array
Broad Insurance Property General Workers’ Fidelity Professional Personal Affinity Group Health Life Disability Dental Specialized Benefits Core Voluntary Section Flexible Total Electronic Print Bank Company Executive Estate Individual Defined Benefits Communications Compensation Owned Array Planning
Slide 8: Proven Cross-Sell Matrix: Top 15 Accounts
Proven Cross-Sell Top Business Benefit Core Name Account Sold Proposed Blocked 15 business Package clients Strategy or Pers. 1 2 3 4 5 6 7 8 9 10 11 12 13 15 Property and Q S Matrix proposed; Account SS QQQpending S or Def. ranked SGL Q Sand S currently Q S& SUmbrella SQ Opportunity S 14 Casualty di
Slide 9: Cross-Selling Strategy and Benefits
Cross-Selling Strategy .Benefits Increases Improves Aggressive Additional Single distribution Definition Compensation Improved Cross-selling Product diversification Organic Client client of revenue local Strategy cross-sell isand leverages perpetuates Retention aretention management Revenue MANDATOR
Slide 10: Cross-Selling Success: Categories of Product Sold
Cross-Selling # Categories 1 2+ 3+ 4+ 5+ = of or Increase 10more 7 4 0 Product 03914 662173 025 67 28 15 =Sold Top Decrease 15 189 Success 2002 400 15 Accounts 400 2003 2002 Top2003 400 Accounts
Slide 11: Proactively Managed Sales: Integrated Process
Sales Proactively – Integrated Personal “What Standardized Senior Formalized Standard Management you management accountability sales technology measure manage goal client weekly philosophy setting stewardship sales andinvolvement platform sales review behavior, and drives meetings pipeline gets for
Slide 12: Organic Growth Strategy
Organic ..Consistent .”Best Lost Current Acquisition Actively Formal Increase 8% Shifting P&C Exposure SFA Cross Proactively Superior Business offor Efforts” and selling current Target Growth stewardship 100% contracts penetration manage solutions benefits units and recruiting ofNon-Recurring ison b
Slide 13: Focused Strategy Continued: EBITDA Margin Expansion
Focused Strategy Continued Reduction – Each EBITDA Results Expanding 2003A 21.7% 2002A 19.3% 2001A 9.8% Organic Continued Internal Sharing 100for Strategy margin bps and of growth in revenue Margins Margin streamlining best compensation operating of external EBITDA practices for and growth Through E
Slide 14: Margin Expansion: Current Technology and Expense Initiatives
•Margin 220 260 150 630 Current Technology Eliminate Utilize Justification Mgmt House Small Leverage Benchmark Consolidate Corporate Infrastructure Certain bps Expansion business Target and Field Corporate EBITDA business automation one-time USI duplicate expense staff operating related real Comp Op
Slide 15: Clear Path for Margin Expansion
Path for 36.1% 37.8% 27.1% 33.0% 23.9% 25.7% 26.0% 28.1% 24.9% 1997 9.8% 21.1% 22.3% 19.3% Source: 1998 BRO 26.8% 29.1% 21.7% 25.0% Company Margin 1999 HRH USIExpansion 2000 reports 2001 is 2002 Clear 2003
Slide 16: Highly Disciplined Acquisition Strategy
Highly Disciplined – Every target At Avoid USI’s Strong Current Fold-in Must Immediate least acquisition fragmented subscribe show be highly auctions management acquisitions 10% geographic accretive Acquisition acquisition and ability experienced ofaggressive to prior-year that industry to USI tofoo
Slide 17: Acquisitions: Revenue Growth Opportunity
Acquisitions: Revenue Fully-integrated Growth Structured Young – Attractive Opportunity company opportunities growth equity entrepreneurial Why toproduct –opportunity participate valuation 10 USIyears forvs. and the focus Peers? old and sales business, duedrive tocapabilities broader strategy client
Slide 18: 2003 Acquisitions
2003 Agency Guild Hastings BMI O’Leary-Kientz Benefits Diversified Total = Meets Insurance Acquisitions $Agency 25.5 Revenue = Team Tapley Does Insurance $$$2.4 Not $1.9 4.5 (MM) 4.1 11.8 Westbury, Houston, Long Cincinnati, $Boston, 0.8 Location Beach, Chicago, TX NY Mass OH Auction No CA NoIL No Ye
Slide 19: Key Objectives and Accomplishments
Key De-leverage Objectives Clean 5%—10% EBITDA Acquire .Results .Acquired $150 USI 7Debt/capital 7.7% 21.7% consecutive Accomplishments Has million operational average 2003 $25 Delivered margin $26 organic balance million versus ratio million last quarters expansion and revenue reduced 4On of 19.3%
Slide 20: U.S.I. Holdings Corporation Financial Overview
U.S.I Holdings Financial Overview Corporation
Slide 21: USI Reflects Total Operating Results
USIReflects ($ 2004 Total Operating EBITDA Non-Operating Before Income Amortization Net Common (a) of Income Income 2003 Revenues Income Income Tax (Loss) in 18,398 Share Expenses 2003 thousands) aAdding From (Loss) Expense Statement normalized 5,434 Taxes From Tax Expenses $(a) 2002 16,336 92,825 C
Slide 22: Pro Forma Capitalization
Prother ($ Actual Term Debt: Seller O Total Debt/LTM Leverage: Debt/Total (a) (b)perating Assumes EBITDA Forma Assets Debt Stockholders’ Liabilities Capitalization loan notes Assets Liabilities Asthousands) Adjusted $155,388 EBITDA Cash Capitalization and 124,375 $the defined 589,844 634,024 $other
Slide 23: The USI Story: Consistency and Growth
The Consistency Significant Strong Sales Motivated – Aligned Revenue Cross-selling Sales 22% Growing Disciplined USI Centrally Behavior Client Cross New Over USI Management story 28% Acquisition account 130 management selling retention Story on and diversification high Margin management managed year
Slide 24: U.S.I. Holdings Corporation Investor Presentation May 2004
U.S.I.2004 Investor May Holdings Presentation Corporation