Innovate Corp. · NYSE:VATE
Innovate — HC2 Holdings — Investor Presentation (June 2015)
22 slides from Innovate's investor presentation, Jun 29, 2015
Slide 1: Company Overview June 2015
H C 2 H OLDINGS , I NC . © HC2 Holdings, Inc. 2015 Company Overview • June 2015
Slide 2: Diversified holding company seeking to acquire and build businesses
© 2015 H C 2 H OLDINGS , I NC . HC2 Holdings, Inc. 1 Diversified holding company seeking to acquire and build businesses that provide attractive growth parameters. Identity Goals Focus on majority interests in stable, cash flow generating businesses and early stage companies with significant upside
Slide 3: Why Invest in HC2? Investment Highlights
© 2015 H C 2 H OLDINGS , I NC . Investment Highlights 2 Strong, proven management team led by Philip Falcone Access to a combination of operating entities that can not be replicated Controlling stakes in leading, stable, cash flow generating businesses Option value opportunities with significant equ
Slide 4: Technology Holdings
© 2015 H C 2 H OLDINGS , I NC 2014 Results T ECHNOLOGY H OLDINGS Nervve : Provider of video and image search technology for information extraction and powerful analytics applications for customers in the Government, Media & Entertainment, Social Media, Sports and Advertising markets . Dusenberry Mar
Slide 5: Envision, Execute, Empower
© 2015 H C 2 H OLDINGS , I NC . Envision Envision Execute Empower We take a hands - on approach and partner with management teams to establish and execute specific strategic operating objectives. Empower Management Execute Value operator with long - term outlook . Acquire controlling equity interest
Slide 6: HC2 Management Team
© 2015 H C 2 H OLDINGS , I NC . HC2 Management Team 5 Philip A. Falcone Chairman of the Board, Chief Executive Officer and President Served as a director, Chairman of the Board and Chief Executive Officer of HRG Group Inc. (“HRG”) from July 2009 to December 2014 From July 2009 to June 2011, served a
Slide 7: HC2 Stock Performance / Key Milestones
© 2015 H C 2 H OLDINGS , I NC . HC2 common stock price has trended positively in reaction to all deal activity and company announcements that have occurred since early 2014 2.83 4.05 4.43 5.59 8.20 8.43 9.20 10.70 11.35 Jan Mar May Jul Sep Nov 2015 Apr HRG Group acquires majority interest in "PTGi"
Slide 8: Schuff International - Company Snapshot
© 2015 H C 2 H OLDINGS , I NC Schuff International - Company Snapshot 7 Schuff operates as an integrated fabricator and erector of structural steel and heavy steel plate. The Company fabricates and erects structural steel for commercial and industrial construction projects including high and low - r
Slide 9: Schuff International - Company Snapshot
© 2015 H C 2 H OLDINGS , I NC . Schuff International - Company Snapshot 8 S CHUFF S TEEL S CHUFF S TEEL M ANAGEMENT C OMPANY A ITKEN S CHUFF H OPSA E NGINEERING C ORE A CTIVITIES One of the largest steel fabricators and erectors in the U.S. Provides project management capabilities for smaller projec
Slide 10: Global Marine Systems (GMSL) - Company Snapshot
© 2015 H C 2 H OLDINGS , I NC Global Marine Systems (GMSL) – Company Snapshot 9 S ELECT C USTOMERS Provides offshore marine engineering and underwater services for subsea cable installation, maintenance and cable protection requirements . Seeks to position itself as a key player to drive convergence
Slide 11: Global Marine Systems (GMSL) - Company Snapshot
© 2015 H C 2 H OLDINGS , I NC . Global Marine Systems (GMSL) – Company Snapshot 10 T ELECOMS M AINTENANCE T ELECOMS I NSTALLATION O IL & G AS I NSTALLATION O FFSHORE P OWER I NSTALLATION C HARTERS (R E - E NTRY EXPECTED 4Q 2015) C ORE A CTIVITIES Provision of vessels on standby to repair fiber optic
Slide 12: Novatel Wireless
© 2015 H C 2 H OLDINGS , I NC . Leader in the design and development of intelligent wireless solutions based on 2G, 3G and 4G technologies. Headquartered in San Diego, California, Novatel Wireless, Inc. has been issued over 54 technology patents and has established partnerships with leading telecom
Slide 13: American Natural Gas (ANG)
© 2015 H C 2 H OLDINGS , I NC . In August 2014, HC2 acquired $15.5 million of convertible preferred for 51% of equity. ANG has in - depth experience in the natural gas fueling industry. Designs, builds, owns, operates and maintains compressed natural gas (“CNG”) fueling stations for transportation.
Slide 14: Continental Insurance Group
© 2015 H C 2 H OLDINGS , I NC . In April 2015, HC2 established CIG as its insurance platform led by industry veteran Jim Corcoran, as Executive Chairman. The formation of Continental Insurance Group is consistent with HC2’s overall strategy of taking advantage of a dislocated and undervalued long -
Slide 15: Nervve
© 2015 H C 2 H OLDINGS , I NC . In October 2014, HC2 made an initial contribution of $5 million in convertible preferred equity Subsequent financing increased the total to $5.6 million Headquartered in Buffalo, NY; Offices in VA and NY. Nervve has developed the fastest, most accurate video search te
Slide 16: Dusenberry Martin Racing
© 2015 H C 2 H OLDINGS , I NC . On December 31, 2014, HC2 / DMR completed a $6 million asset purchase agreement to acquire worldwide exclusive licensing rights to the NASCAR brand for interactive gaming, including mobile, console and PC games. DMi , Inc., doing business as Dusenberry Martin Racing,
Slide 17: PTGi ICS and R2 Dermatology
© 2015 H C 2 H OLDINGS , I NC . PTGi International Carrier Services, Inc. (“ PTGi ICS”) L eading international wholesale telecom service company providing voice and data call termination to the telecom industry worldwide. In business for over a decade with regional presence in the USA, Europe, Asia,
Slide 18: Limitations on the Use of Information
© 2015 H C 2 H OLDINGS , I NC . Limitations on the Use of Information. This company overview has been prepared by HC2 Holdings, Inc. (the “Company” or “HC2”) solely for informational purposes, and no t for the purpose of updating any information or forecast with respect to the Company or any of its
Slide 19: Appendix: Reconciliations
Appendix: Reconciliations
Slide 20: Reconciliation of Pro forma Net Revenue To U.S. GAAP Net Revenue
© 2015 H C 2 H OLDINGS , I NC . Reconciliation of Pro forma Net Revenue To U.S. GAAP Net Revenue 19 Years Ended Year-over-Year 2014 2013 Net % of Net % of (in thousands) Revenue Total Revenue Total Variance Variance % Telecommunications 161,953 19.0% 230,686 28.8% (68,733) -29.8% Manufacturing 526,1
Slide 21: Reconciliation of Adjusted EBITDA To U.S. GAAP Net Income
© 2015 H C 2 H OLDINGS , I NC . Reconciliation of Adjusted EBITDA To U.S. GAAP Net Income 20 As Reported HC2 Holdings, Inc. Schuff GMSL ICS Other HC2 Holdings, Inc. Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, 2014 December 31, 2014 (1) December 31, 2014 (2) Decembe
Slide 22: Contact: Company Overview June 2015
H C 2 H OLDINGS , I NC . © HC2 Holdings, Inc. 2015 Company Overview • June 2015 Ashleigh Douglas • ir@hc2.com • 212.235.2691 • 450 Park Avenue, 30 th Floor, New York, NY 10022