Ccc Intelligent Solutions Holdings Inc. · NASDAQ:CCC
Ccc Intelligent Solutions — Dragoneer Growth Opportunities — SPAC Merger (April 2021)
66 slides from Ccc Intelligent Solutions's SPAC merger presentation, Apr 13, 2021
Slide 1: Investor Presentation April 2021
INVESTOR PRESENTATION CONFIDENTIAL APRIL 2021 1 ©2021 CCC Information Services Inc. All rights reserved.
Slide 2: Disclaimer
D i s c l a i m e r This investor presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to the proposed business combination (the “Business Combination”) between Dragoneer Growth Opportunities Corp. (“DGOC”) and
Slide 3: Disclaimer (Cont'd)
D i s c l a i m e r ( C o n t ’ d ) This Presentation also includes certain projections of non-GAAP financial measures. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these projected measures, together with some of the
Slide 4: CCC / Dragoneer / Advent Leadership
C C C / D r a g o n e e r / A d v e n t L e a d e r s h i p Githesh Ramamurthy Marc Fredman Barrett Callaghan Brian Herb Chairman & Senior Vice President, Executive Vice President, Executive Vice President, Chief Chief Executive Officer Chief Strategy Officer Markets and Customer Success Financial O
Slide 5: Dragoneer Investment Group overview
D r a g o n e e r I n v e s t m e n t G r o u p o v e r v i e w Companies People Capital Base § Focus on backing exceptional growth businesses with § Top talent who have demonstrated a pattern of § >$14 billion in total assets under management sustainable differentiation and superior economic excell
Slide 6: CCC and Dragoneer: A partnership of excellence
CCC and Dragoneer: A partnership of excellence CCC is a Market-Leading Vertical SaaS Company that Drives Significant Customer Value and ROI, Leading to Durable Differentiation, an Excellent Economic Model, and a Large Addressable Market with Long-Term Tailwinds What Dragoneer Looks for in a Company
Slide 7: Advent International overview
A d v e n t I n t e r n a t i o n a l o v e r v i e w • Founded in 1984, Advent International is one of the largest and most experienced global private equity firms • With 15 offices across four continents, our globally integrated team focuses on buyouts and growth equity investments in five core se
Slide 8: Company Overview
C O M P A N Y O V E R V I E W ©2021 Information Services Inc. All rights reserved.
Slide 9: CCC: The SaaS platform for the P&C insurance economy
C C C : T h e S a a S p l a t f o r m f o r t h e P & C i n s u r a n c e e c o n o m y INSURERS REPAIR FACILITIES 1 2 300 + 25,000 + Mission-critical AI-enabled (99.96% uptime) SaaS solutions to digitize Complete repair facility operating insurer workflows and drive optimal system to attract, deliv
Slide 10: CCC at a glance
C C C a t a g l a n c e Company overview 100% 30K+ 20+ § Mission-critical cloud platform for highly Multi-tenant Total Consecutive interconnected P&C insurance economy 1 2 cloud platform customers years of growth § Software powers customers’ growth, core operations, and profitability Business overvi
Slide 11: CCC is digitizing the P&C insurance economy
C C C i s d i g i t i z i n g t h e P & C i n s u r a n c e e c o n o m y 1 P&C insurance (US) Nearly half Auto (45%) of entire P&C insurance market is auto, 3 growing ~7% annually Claims 205B 1 of 3 P&C insurance premium dollars ~$600B Non-Auto (55%) 2 is spent on auto claims DWP The CCC Cloud 70B
Slide 12: CCC's leading position is built upon two foundational pillars
C C C ’ s l e a d i n g p o s i t i o n i s b u i l t u p o n t w o f o u n d a t i o n a l p i l l a r s CCC stats Auto Insurance Pillars ~80% of auto claims ~80% of volume paid by are repairable insurers 300+ ~$50B paid to repairers ~40% of volume sourced 1 insurers each year via DRP Repair Insure
Slide 13: Consistent long-term and accelerating growth
C o n s i s t e n t l o n g - t e r m a n d a c c e l e r a t i n g g r o w t h Resilient Business Model 1 Total company adjusted revenue 1 20+ consecutive years of growth across multiple market cycles Resilient business model driven by long-term customer value and recurring revenue Continued quarte
Slide 14: Experienced management team
E x p e r i e n c e d m a n a g e m e n t t e a m Mary Jo Prigge Andreas Hecht Githesh Ramamurthy Brian Herb Barrett Callaghan Joe Allen EVP and Chief Service SVP & GM, OEM Chairman & CEO EVP, CFO, and CAO EVP, Markets & SVP & GM, Automotive Delivery Officer Services Group Customer Success Services
Slide 15: Investment highlights
I n v e s t m e n t h i g h l i g h t s Large, acyclical TAM ready for digitization Blue chip customer base #1 industry SaaS platform powered by 100% with strong account retention 1 multi-tenant cloud and ongoing growth potential Mission-critical, deeply Highly recurring and visible SaaS revenue mod
Slide 16: Business and Product Overview
BUSINESS AND PRODUCT OVERVIEW ©2021 Information Services Inc. All rights reserved.
Slide 17: Auto insurance economy is complex and interconnected
A u t o i n s u r a n c e e c o n o m y i s c o m p l e x a n d i n t e r c o n n e c t e d CCC stats Dealers Medical Providers $100B+ $1T+ 30K+ Aftermarket Parts of txns annually historical data companies Recyclers OEMs Consumers CCC connects the many diverse Other Suppliers participants in the ins
Slide 18: Outcomes depend on complicated, hyper-local decisions
O u t c o m e s d e p e n d o n c o m p l i c a t e d , h y p e r - l o c a l d e c i s i o n s CCC is the definitive platform for major decisions made throughout the auto insurance economy EVENT-SPECIFIC FACTORS ECOSYSTEM LOCAL GEOGRAPHIC FACTORS 300+ 25K+ 1.4M 4.1B 6.9M 56K Insurance Repair Labor
Slide 19: CCC solutions address market needs
C C C s o l u t i o n s a d d r e s s m a r k e t n e e d s Insurance Repair Others SaaS solutions that digitize Complete repair facility operating Integrations and data that connect insurer workflows to drive optimal system to attract, deliver, and OEMs, dealers, parts suppliers, decisions and cust
Slide 20: Digitization driven by best-in-class SaaS solutions
D i g i t i z a t i o n d r i v e n b y b e s t -in - c l a s s S a a S s o l u t i o n s CCC solutions deliver Innovative enterprise and consumer-facing applications to drive tangible ROI by: digitization across insurance economy Facilitating lead generation & growth Digitizing manual processes Inc
Slide 21: World-class multi-tenant cloud technology platform
W o r l d - c l a s s m u l t i - t e n a n t c l o u d t e c h n o l o g y p l a t f o r m Cloud Enterprise Scale 350M+ 20M+ Annual interface txns Annual assignments Integrations 500K+ 1,400+ Active registered users Releases per year Applications 39.6 TB 2.7B Network traffic per day Database txns p
Slide 22: CCC delivers real-world AI solutions at enterprise scale
C C C d e l i v e r s r e a l - w o r l d A I s o l u t i o n s a t e n t e r p r i s e s c a l e Real-world Adoption Example Solutions Built for Scale Damage Detection Hyperscale platform to 5+ support large volume of 9 of 10 years of AI concurrent users in consumers deployed in market prefer estim
Slide 23: $35B+ global market opportunity
$ 3 5 B + g l o b a l m a r k e t o p p o r t u n i t y Loss Adjustment Accuracy Ecosystem 1,600 Expense (LAE) $75B+ $50B+ $1T+ Claims handling Avoidable claims Claims expenses leakage payouts Claims 1,100 5:1 5:1 1% 1 Target value capture rate $15B+ $10B+ $10B+ Digitizing claims Eliminating Digitiz
Slide 24: Many expansion adjacencies available
M a n y e x p a n s i o n a d j a c e n c i e s a v a i l a b l e + Cross-sell existing products + Geographic expansion CCC Total Addressable Market + M&A opportunities $35B+ + Cross-sell existing products + Multi-line expansion + New product innovation + New customer expansion (digital / mobile, AI
Slide 25: Building durable, differentiated insurance platform in China
B u i l d i n g d u r a b l e , d i f f e r e n t i a t e d i n s u r a n c e p l a t f o r m i n C h i n a 3 of the world’s top Generational opportunity to digitize insurance economy in China 10 insurers are based in China – and all use CCC has early leadership position CCC solutions with insurers
Slide 26: Rising complexity drives demand for digital solutions
R i s i n g c o m p l e x i t y d r i v e s d e m a n d f o r d i g i t a l s o l u t i o n s VEHICLE STRUCTURE INTERNAL SYSTEMS ADAS / DIAGNOSTICS 33% 100M+ 900% # of repairable parts Avg. lines of code Growth in rate of repaired per claim since 2010 per vehicle vehicles scanned since 2017 CONNECTE
Slide 27: Long-term ADAS evolution will create new opportunities
L o n g - t e r m A D A S e v o l u t i o n w i l l c r e a t e n e w o p p o r t u n i t i e s ADAS-enabling the world’s vehicles …And accompanying rise in ADAS-driven will be multi-decade evolution… complexity will create new opportunities CLAIMS ADAS technology still developing, New solutions to
Slide 28: Strong long-term customer retention and growth
S t r o n g l o n g - t e r m c u s t o m e r r e t e n t i o n a n d g r o w t h Blue chip Sales growth index 2 70% customer base 10+ year insurance customers revenue from 10+ 1 year accounts 18 of top 20 Avg. revenue per long- term insurance customer insurers on platform (10+ years) has risen 80%
Slide 29: Proven ability to cross-sell solutions
P r o v e n a b i l i t y t o c r o s s - s e l l s o l u t i o n s : R e p a i r f a c i l i t y e x a m p l e s Repair facility cross-selling has Example: Rapid adoption of CCC Engage risen significantly over time package throughout 2020 Share of repair customers by # of subscribed products 7% 4%
Slide 30: Multiple network effects strengthen the CCC platform
M u l t i p l e n e t w o r k e f f e c t s s t r e n g t h e n t h e C C C p l a t f o r m … and ecosystem expansion Insurer performance… … drives shop growth and efficiency… Higher customer sat Increased use of repair Real-time facility channel and performance parts sourcing Insurance Parts Repair
Slide 31: Case Study: Parts expansion
Dealer Count ORDER PARTS CONVERT TO REPAIR ORDER C a s e S t u d y : P a r t s e x p a n s i o n Convert to RO K Be io ysn to ic n e Auto Parts 1-800 Radiator Parts Channel ~10% of GMV now facilitated electronically, Delivers today Delivers tomorrow Delivers in 2 days Cancel Cancel A/M RT Headlamp a
Slide 32: Growth levers drive future performance
G r o w t h l e v e r s d r i v e f u t u r e p e r f o r m a n c e New Markets § New customer segments § Multi-line expansion New Solutions § Geographic expansion § M&A opportunities § Insurer innovation § Repair facility innovation Upsell § Ecosystem innovation § Cross-sell existing § M&A opportun
Slide 33: Leading Innovations
L E A D I N G I N N O V A T I O N S ©2021 Information Services Inc. All rights reserved. 33
Slide 34: Insurance pillar: Leading claims digitization
I n s u r a n c e p i l l a r : L e a d i n g c l a i m s d i g i t i z a t i o n Dealers 1 billion+ Medical Providers Aftermarket Parts days of annual cycle time Recyclers OEMs Consumers Other Suppliers Repair Insurers 300+ Facilities Labor Rentals 1 Sublets Insurers on platform Glass Lenders Fleet
Slide 35: Insurance pillar: Mobile and AI
I n s u r a n c e p i l l a r : M o b i l e a n d A I 80%+ of consumers prefer mobile claims navigation channels ~20% of industry repairable claims processed by photo estimate 90+ insurers on platform 35 ©2021 CCC Information Services Inc. All rights reserved.
Slide 36: Insurance pillar: Mobile and AI
I n s u r a n c e p i l l a r : M o b i l e a n d A I 300+ 500+ AI models in production human touches per traditional estimate 2.7B 50+ DB transactions per day insurers using CCC AI in production § Real-time part and labor prices § Tailored to local jurisdictions 100%+ § Deep insurer integration § A
Slide 37: Insurance pillar: Fraud prevention
I n s u r a n c e p i l l a r : F r a u d p r e v e n t i o n GEO-TAGGING TELEMATICS MEDIA MANIPULATION 5-10% LINE-LEVEL AUDIT INJURY CAUSATION BILL REVIEW of P&C claims payouts PRIOR DAMAGE potentially fraudulent CROSS-CARRIER …AND MORE $1 trillion+ historical data 56K+ insurer audit rules active o
Slide 38: Insurance pillar: Total loss automation
I n s u r a n c e p i l l a r : T o t a l L o s s a u t o m a t i o n ~20% of auto claims result in total loss ~70 days average cycle time per total loss 30+ LIENHOLDERS AUTOMATION years processing total loss vehicle valuations 38 ©2021 CCC Information Services Inc. All rights reserved.
Slide 39: Repair pillar: Leading repair workflow
R e p a i r p i l l a r : L e a d i n g r e p a i r w o r k f l o w Dealers ~80% Medical Providers Aftermarket Parts of repair value paid by insurers Recyclers OEMs Consumers Other Suppliers Repair Insurers 25K+ Facilities Labor Rentals 1 Sublets repair facility customers Glass Lenders Fleets Towing
Slide 40: Repair pillar: Photo estimating
R e p a i r p i l l a r : P h o t o e s t i m a t i n g 20M+ z repair estimates written on CCC platform every year 50M+ electronic customer communications sent 25%+ of repair customers adopting in past 12 months 40 ©2021 CCC Information Services Inc. All rights reserved.
Slide 41: Repair pillar: Shop scheduling
R e p a i r p i l l a r : S h o p s c h e d u l i n g 20+ AC ACM ME E In Ins su ur ran anc ce e average days from loss reported to repair started 7.3M consumer reviews for vehicle repair 200M+ calendar entries made by repairers in CCC ONE 41 ©2021 CCC Information Services Inc. All rights reserved.
Slide 42: Repair pillar: Repair procedures
R e p a i r p i l l a r : R e p a i r p r o c e d u r e s 33% increase in parts per repairable claim since 2010 900% growth in rate of repaired vehicles scanned since 2017 2.3M repair procedures on CCC platform 42 ©2021 CCC Information Services Inc. All rights reserved.
Slide 43: Repair pillar: Parts ordering
R e p a i r p i l l a r : P a r t s o r d e r i n g $13B+ annual parts on CCC repairable estimates 25K+ 1 repair facility customers eligible for parts ordering 4K+ parts suppliers live on platform 43 1. Includes other entities that estimate damaged vehicles ©2021 CCC Information Services Inc. All ri
Slide 44: Insurance economy: Leading network
I n s u r a n c e e c o n o m y : L e a d i n g n e t w o r k Dealers 30K+ Medical Providers Aftermarket Parts companies on platform Recyclers OEMs Consumers Other Suppliers Repair Insurers 80 Facilities Labor Rentals Sublets Net Promoter Score Glass Lenders Fleets Towing Auctions 100% Government en
Slide 45: Insurance economy: Digital payments
I n s u r a n c e e c o n o m y : D i g i t a l p a y m e n t s REPAIR PAYMENT RECEIVED CLAIM PAYMENT SENT >50% of insurance payments are sent by check $100B+ PAYMENT COMPLETE commerce enabled annually by CCC 350M+ annual interface transactions LENDER PAYMENT RECEIVED MEDICAL PAYMENT RECEIVED 45 1.
Slide 46: Financial Overview
F I N A N C I A L O V E R V I E W ©2021 Information Services Inc. All rights reserved. 46
Slide 47: Financial highlights
F i n a n c i a l h i g h l i g h t s 1 1 • 20+ consecutive years of adjusted revenue growth Consistent growth • Benefiting from strong network effect and expansion into new products at scale and accelerating • Proven ability to cross-sell solutions 2 2 Highly predictable, recurring • 96% recurring
Slide 48: Annual recurring software business model
A n n u a l r e c u r r i n g s o f t w a r e b u s i n e s s m o d e l 1 1 Recurring Software / SaaS Other 96% 4% 2 2 2020 Revenue 2020 Revenue Recurring Mostly Subscription Trans- Trans- actional actional Average Contracts: 3-5 Year Deals 1. See Recurring Software and Other Revenue definitions in
Slide 49: Historical revenue and margin performance
H i s t o r i c a l r e v e n u e a n d m a r g i n p e r f o r m a n c e 1 2 Adjusted Revenue Adjusted EBITDA (US $ in millions) (US $ in millions) 570 170 +10% 518 +13% 148 462 419 124 119 384 104 3 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Annual Organic Adj. EBITDA 7% 9% 10% 12% 10% 27%
Slide 50: 2020 financial performance
2 0 2 0 f i n a n c i a l p e r f o r m a n c e 1 2 Adjusted Revenue Adjusted EBITDA (US $ in millions) (US $ in millions) +5% +19% 598 203 570 170 2019 2020 2019 2020 Adj. EBITDA 30% 34% Revenue growth through 2020 highlights resiliency of 3 Margin (%) recurring business model Double-digit adjusted
Slide 51: Adjusted Revenue forecast
1 2 0 2 1 A d j u s t e d R e v e n u e f o r e c a s t (US $ in millions) 20-30 675 5-10 5-10 10-15 30 598 1 2 3 4 5 2020 Annualized Signed not COVID Committed Net new 2021 Revenue existing yet live normalization not yet business Revenue revenue signed 1. Full year impact of revenue opportunities r
Slide 52: Adjusted EBITDA forecast
1 2 0 2 1 A d j u s t e d E B I T D A f o r e c a s t (US $ in millions) 60-65 242 203 (10-12) (8-10) (5-7) 1 2 3 4 2020 Incremental Discretionary Public Operating 2021 Adj. EBITDA Investment Spend Company Costs Leverage Adj. EBITDA Adj. EBITDA 34% 36% 2 Margin (%) 1. 1 Increased P&L investment larg
Slide 53: Long-term modeling guidance
L o n g - t e r m m o d e l i n g g u i d a n c e Long-term Targets 1 Organic Adjusted Revenue Growth 7-10% 1 Adjusted Gross Profit Margin 80% 2 Adjusted EBITDA Margin 45% Cap Ex as % of Revenue 4-7% Effective Tax Rate Mid 20s% Working Capital as % of Revenue Low single-digit consumption 1. Calculat
Slide 54: Transaction Overview
T R A N S A C T I O N O V E R V I E W ©2021 Information Services Inc. All rights reserved. 54
Slide 55: Transaction summary
T r a n s a c t i o n s u m m a r y Transaction Overview Valuation ($mm) Enterprise Value ($mm) 1 § Fully distributed pro forma enterprise value of $7.0bn, or 29.1x CY21E Adj. EBITDA of 4 670.7 Shares Outstanding (mm) $242mm (x) Share Price $10.00 2 Equity Value $6,707 § Transaction to be funded by
Slide 56: CCC has a unique combination of attributes relative to peers
C C C h a s a u n i q u e c o m b i n a t i o n o f a t t r i b u t e s r e l a t i v e t o p e e r s Insurtech Peers Vertical Software Peers Recurring Peer Average: 79% 1 Revenue % 2 96% 97% Market 89% 88% 87% 82% 80% 80% 80% Leader 72% 60% 56% Mission Critical Chariot_Guidance_Low GWRE DCT ADSK DS
Slide 57: Peer benchmarking – Operating metrics
P e e r b e n c h m a r k i n g – O p e r a t i n g m e t r i c s (US $ in millions) Insurtech Peers Vertical Software Peers 2021E Revenue Growth 18% Peer Average: 11% 14% 13% 13% 12% 9% 9% 8% 8% 8% 7% 2% Chariot_Guidance_Mid DCT GWRE ADSK BSY DSGX SNPS ANSS TYL NEM-DE CDNS VRSK 1 2021E Revenue $675
Slide 58: Peer benchmarking – Valuation metrics
P e e r b e n c h m a r k i n g – V a l u a t i o n m e t r i c s 1 Insurtech Peers Vertical Software Peers EV / 2021E Adj. EBITDA Peer Average: 38.9x 53.4x 50.9x 46.4x 40.7x 36.1x 35.8x 33.8x 30.5x 29.1x 22.8x NM NM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 EV / 2021E Adj. EBITDA / 2021E Revenue Growth Pe
Slide 59: Peer benchmarking – Valuation metrics
P e e r b e n c h m a r k i n g – V a l u a t i o n m e t r i c s 1 Insurtech Peers Vertical Software Peers EV / 2021E Revenue Peer Average: 13.9x 19.6x 17.5x 16.4x 15.6x 15.4x 14.1x 13.9x 11.1x 10.7x 10.4x 10.4x 10.0x Chariot_Guidance_Mid DCT GWRE ANSS BSY ADSK TYL CDNS DSGX VRSK NEM-DE SNPS 1 EV /
Slide 60: Powering Forward. Thank you.
P O W E R I N G F O R W A R D T h a n k y o u . ©2021 Information Services Inc. All rights reserved. ©2021 CCC Information Services Inc. All rights reserved. 60
Slide 61: Appendix
A P P E N D I X ©2021 Information Services Inc. All rights reserved. 61
Slide 62: Reconciliation
R e c o n c i l i a t i o n (US $ in millions) 1 2015 2016 2017 2018 2019 2020 Total Revenue $ 430 $ 466 $ 507 $ 570 $ 616 $ 633 Product Divestment [1st Party Clinical - revenue] (46) ( 47) (45) (52) (46) (35) Adjusted Revenue - Non-GAAP $ 384 $ 419 $ 462 $ 5 18 $ 570 $ 5 98 Adjusted Revenue Growth
Slide 63: Reconciliation (continued)
R e c o n c i l i a t i o n ( c o n t i n u e d ) (US $ in millions) 1 2018 2019 2020 Adjusted Cost of Revenue Calculation: Cost of revenue - GAAP $ 2 13 $ 226 $ 208 (-) Product Divestment [1st Party Clinical] (39) (40) (31) (-) Amortization of Intangible Asset - Acquired Technology (28) (28) (26) (
Slide 64: Definitions
D e f i n i t i o n s Term Definition Calculated by dividing (a) annualized software revenue recorded in the last month of the measurement period for unique billing accounts that generated revenue during the corresponding month of the prior year by (b) Software annualized software revenue as of the
Slide 65: Consolidated balance sheets
C o n s o l i d a t e d b a l a n c e s h e e t s (US $ in millions) 2018 2019 ASSETS Current Assets: Cash and Cash Equivalents $ 57 $ 93 Accounts Receivable - Net of Allowances of $3,970 and $3,024 for 2019 and 2018, Respectively 59 64 Income Taxes Receivable 4 6 Deferred Contract Costs 2 13 Other
Slide 66: Consolidated statements of cash flows
C o n s o l i d a t e d s t a t e m e n t s o f c a s h f l o w s (US $ in millions) 2018 2019 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (55) $ (210) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization of software, equipment, and prope
Dragoneer Growth Opportunities — SPAC Merger (April 2021) on 6ix