Usi Corporation · TWSE:1304
Usi — Investor Presentation (September 2005)
32 slides from Usi's investor presentation, Sep 7, 2005
Slide 1: USI Holdings Corporation, September 2005
Exhibit 99.1 USI Holdings September 2005 Corporation
Slide 2: About This Presentation: Forward-Looking Statements
About This Corporation, the competition future its All projected When although forward-looking these “Management’s qualify 1 business financial future plans, integration statements document plans, regulatory used Forward-Looking allnot objectives, operating costs, forward-looking in strategy; intent
Slide 3: USI Senior Management Team
USI Name David Chairman, 25 28 27 18 16 1 Experience Team 2 4948 46Senior 51 49 has Position Eslick worked President Management with Jeff Industry 200+ Jones together and acquisitions Bob Experience CEO Team inSchneider USI Chief and sourced, Age Marketing other Ed Bowler brokers completed, Officer
Slide 4: USI Profile
USI A –10th –Leading National –73 –500+ –More Middle –Approximately –Predominantly –Buying Broad –Property –5 Demonstrated –52% (a) 3 Market broad Source: Offices Profile largest of Product sales than Market top Scale decisions product Benefits Leader &July 60,000 in professionals 400 casualty, U.S.
Slide 5: Historical USI Acquisition Perspective
Historical USI Acquisition Pursued Majority Including Limited Integration Focus Improved Standardized Reduced Earnings Three IPO Debt/capital Strengthened Controlled-Growth Leverage Acquisitions Pursue Proactively Positioned 1994 4 isLate successfully consecutive on well only integration acquisition
Slide 6: Investment Highlights
Investment Achieve –Consistent Diversified Proven, –Focused –Augment Target Management –Substantial –5% 5 ofatUSI proactive annual least strategy growth Highlights revenue organic fully % directly 10% of cash diluted cross-selling personal for with of mix growth earnings aligned Operating prior accr
Slide 7: Diversified Revenue Mix
Revenue Diversified Property Group Specialized Total National West Midwest Northeast Midatlantic Southwest Southeast Corporate *Pro 6 forma Coast 2004 Employee Scale and Diversity 9% 37% 7% USI 15% Revenues Revenue 22% for Benefits 10% Casualty and Offices Summit Benefits Local Services Mix =58% $40
Slide 8: Broad Product Distribution
Distribution Retail Property Fidelity Group Wealth Retirement Dental Health Estate Disability Life Business Alternative Annuities Workplace Core Voluntary Section Flexible Total Electronic Print Association Life, Workers’ General Travel Personal Specialty Primary Healthcare Executive Professional Ph
Slide 9: Proactively Managing Sales Strategy
Salesbusiness Proactively –Standardized –Formalized Stewardship –USI’s –Continued Cross-Selling –Increase New –Standard –New 8 Management producer passionate from technology manage focus, –goal production client weekly 20% recruitment setting client-centric training, sales of retention platform sale
Slide 10: Organic Growth Strategy
Organic 10% Formal Increase P&C Exposure 8% Shifting Acquisition (-7%) (0%) (-4%) (+4%) Consistent (+25%) (+24%) (-8%) (-10%) SFA Actively Cross Proactively Superior ”Best Lost Current (a) 9 Please offor Business 0% and Efforts” selling (-10%) current stewardship Target 100% Growth(a) contracts pene
Slide 11: Cross-Selling Strategy
Cross-Selling Single Strategy Definition Compensation Aggressive Benefits Improved Additional Cross-selling Reduced Product Increases Improves 10 distribution diversification acquisition Organic Client client of revenue local cross-sell is leverages perpetuates Strategy and aretention Retention mana
Slide 12: Proven Cross-Sell Strategy
Proven Cross-Sell Top As Account Business Employee Core Retirement Executive Package Pers. Sold 11 of15 business Benefit P6/30/05 & clients Strategy GL Name 1 Property CBenefits Account / Life Cross-Service Umbrella Enrollment or ranked and currently Disability &2Opportunity Casualty Account by Auto
Slide 13: Cross-Servicing Top Accounts
Cross-Servicing # 1 Top 2002 2003 Product 2004 = 12of or Increase 15 400 Product more 15Accounts 400 Retention Category Accounts 10 14 13 173 189 207 2+ =8 7Categories 9Decrease 3+ 478 3 56692% 67 Success 4+ 25 30 36 1 296% 3 4+ Sold 100% Overall 98%Retention 95%
Slide 14: Retention Stewardship
Retention Stewardship –Retention Overall –Q3 –Q4 –Q1 –Q2 13 2004 2005retention Success =YTD 2003 2004 87.4% 88.6% 89.3% 90.4% 90.6% 89.9% accounts = 2Q (financial mid 91.0% 2005 80s=impact) 94.7
Slide 15: Operations: Organizational Structure and Controls
Operations Organizational Proactive –Flash –CEO –Executive Expenses –Detailed Comprehensive Strict 14 compliance Calls Calls regional are plans Summary Board ––tracked third first structure are budgeting with –oversight week week in every and place policy in of of compared quarter and place every to
Slide 16: Margin Expansion on Scale
Margin 40% 50% On Scale Gain 25.0 18.0 6.9 Insurance Specialized Corporate Operating 2004 (a) 15 Please track 5.0 28.0 23.0 30% of 100 Actual revenue offices Expansion to bps 21.7 Brokerage see 20% Overhead Margin achieve Benefits Next per Appendix over 28.0 at 10%or year Step (a) fixed near 0% (190
Slide 17: Highly Disciplined Acquisition Strategy
Highly Disciplined Must – Passed (a) 16Accretive Target USI’s Strong Current Fold-in Mix Use Minimum Please meet multiple of on fragmented highly purchase management cash, acquisitions geographic see 39 financial Acquisition to acquisition IRR potential Appendix cash seller experienced techniques of
Slide 18: Comprehensive Due Diligence and Integration Process
Due Comprehensive Detailed Immediate – 17Financial Operational Legal Human Business Investment Historical Cash Impact Plan Synergies Monitoring Diligence in flow review presentation on place resource integration overview review clearly and USI and considerations and review and atdue forecasted IRR I
Slide 19: Acquisitions 2003-2005
2003-2005 Agency Guild of $2.4 Westbury, York, NoYesYes = 18Meets America $11.8 NY Agency Revenue = San NY Does NoYesYes $4.5 Acquisitions Patterson//Smith Hastings Francisco, Boston, $4.1 Not (MM) $1.9 NoYesYes Mass Tapley Location CA $0.8 Long Summit Cranston, $25.0 BMI NoYesYes Auction Beach, Ins
Slide 20: USI Holdings Financial Overview
USI Holdings Financial Overview Corporation
Slide 21: Historical Revenue and Operating Income
Historical Revenue 450,000 2004 Operating $ 80,000 2001 (1) (2) (3) $8.1 million 20inYTD Please 4Q thousands and 2005 2002 2004 70,000 in400,000 2005 $1.6 acquisition Operating see Income (1) 2003 excludes Appendix million Revenue 60,000 2004 350,000 (2)Performance integration related $12.4mm YTD 50
Slide 22: Update: Fiscal Summary Financials
Update Fiscal Total Interest Amortization Pre Income Net 2001 272.7 32.1 41.5 (41.1) 2002 ($96.5) (62.3) 265.7 20.8 54.4 9.9 2003 ($2.8) (13.2) 272.4 21.3 64.0 28.4 $35.5 1.9 337.8 23.7 73.4 28.6 2004 $8.3 (7.8) 150.9 11.1 33.9 19.0 2005 $10.9 (0.1) 206.2 14.0 48.2 12.9 6/30/05 $2.6 (4.7) 381.1 26.0
Slide 23: Credit Statistics: Debt and EBITDA Ratios
Credit Debt/Total Debt/Adjusted EBITDA 70.00% 37.3% 39.2% 66.2% 5.0x 32.3% 2.1x 4.5x 12 1.8x 2001 (a) 2.3x 3.3x 5.3x 8.5x 9.6x (b) Appendix 22 10 Represents EBITDA 4.5x 2.0x 2002 8Ratios 37.1% 660.00% (b)/Interest 4.0x 2.0x 4for 2003 Capitalization 2is0details) adjusted 3.5x PF defined 50.00% 2004 E
Slide 24: Income from Continuing Operations Summary
USI4Q Total Operating Per Income Six Year 2005 $0.53 2004 $0.45 2003 $0.96 (a) $0.88 $2.2mm (c) $8.1 million 23 Please Share: Months Summary and Ended $246,736 $188,953 $407,198 $345,531 Revenues 2004 in from adjustment $1.6 see acquisition Income Ended excludes Continuing Appendix million Income(a)
Slide 25: Capitalization
($ thousands) Capitalization Operating Term Debt: Seller Total Debt/LTM Leverage: Debt/Total As $212,588 $32,580 6/30/2005 2.1x $645,641 406,271 $128,438 $2,887 12/31/2004 1.8x $483,889 327,565 (a) 24 LTM of32.3% 37.1% Debt Stockholders’ Capitalization loan notes PF 26,782 27,887 Cash & PF Capitaliz
Slide 26: The USI Story
The Consistency Significant Strong Motivated – 25Aligned Revenue Cross-selling Sales Growing Disciplined USI Over USIstory Acquisition 130 management Story goals and diversification high Margin years isofapproach attractive Focused Organic and quality ofOpportunities Expansion combined strategies pi
Slide 27: USI Holdings Corporation Appendix
USI Holdings Corporation Appendix
Slide 28: Reconciliation: Second Quarter Results
2Q December On expenses million respectively, For Compensation Revenues Margin Per Income $122,555 7,254 16.8% $0.09 $124,724 $244,567 Identified (Dollars $2,169 2005 $246,736 14,008 19.5% 27 & Share the As Excluding YTD 3,669 0.13 108 6,769 Three in improvement From from in Reported of 70,894 71,00
Slide 29: Reconciliation: Fourth Quarter 2004
On December recorded million), approximately Compensation Revenues Amortization Addback: Income Weighted-Average For Diluted $112,836 5,890 1,349 (100) 10.5% 49,472 $5,790 (Dollars 28,554 16,081 Identified 17.0% 49,127 $39,744 $— 2004 $407,198 28 the (6,324) (6,553) As Reconciliation Excluding 5,890
Slide 30: Non-GAAP Financial Measures
Non-GAAP a) other Company’s expenses ongoing relevant and stock assets continuing purchase Additionally, This attributable is (Operating margin You GAAP. which companies potential Operations” 29 relevant Operating resulting should financial operating use (or we inowing cost investors method are Oper
Slide 31: Reconciliation of Adjusted EBITDA
Reconciliation Compensation EBITDA One-Time Integration Adjusted Depreciation Operating $304.5 2001 $31.8 $14.1 $54.2 $41.5 $12.7 $197.4 $321.4 2002 $55.7 $5.5 $65.4 $54.4 $11.0 $195.9 $345.5 2003 $73.1 $0.4 $73.5 $64.0 $9.5 $237.3 $407.2 2004 $69.4 $0.3 $82.1 $73.4 $8.7 YTD $151.3 $244.6 $38.4 $8.4
Slide 32: USI Holdings Corporation, September 2005
USI Holdings September 2005 Corporation
USI Holdings — Investor Presentation (September 2005) on 6ix