Innovate Corp. · NYSE:VATE
Innovate — Investor Presentation (September 2021)
32 slides from Innovate's investor presentation, Sep 24, 2021
Slide 1: INNOVATE
w INNOVATE NYSE: VATE
Slide 2: INNOVATE is who we are, INNOVATE is what we do
INNOVATE IS WHO WE ARE INNOVATE IS WHAT WE DO 2
Slide 3: INNOVATE is a platform of best-in-class assets in 3 key areas
INFRASTRUCTURE • DBM Global: Largest steel fabrication and erection company in the USA LIFE SCIENCES • R2 Technologies: FDA-cleared revolutionary device to lighten and brighten skin in the $22 billion(1) aesthetic dermatology market • MediBeacon: Developing the first real-time monitoring of kidney f
Slide 4: Chairman, CEO and Executive Management
AVIE GLAZER – CHAIRMAN OF THE BOARD • Leads INNOVATE’s strategic and philosophical direction • Strong insider investment having purchased over $62 million in last 2 years • An owner of the Super Bowl champion Tampa Bay Buccaneers • Co-Chairman of Manchester United – the world’s most popular sports t
Slide 5: Infrastructure
INFRASTRUCTURE Daw 27S AO ezvircon BANKER STEEL [gigi GRAY WOLF
Slide 6: DBM Global overview and backlog
• Largest steel fabrication and erection company in the USA • Poised for enhanced growth from increased investment in alternative energy and additional public infrastructure spending such as the bipartisan $550 billion infrastructure bill before Congress • Approx. $1.6 billion Backlog as of 6/30/21
Slide 7: Select DBM Steel Fabrication & Erection Projects
SoFi Stadium, Los Angeles Hudson Yards, New YorkApple Headquarters Facebook MPK21 Phoenix Convention CenterFort Benning Hospital Cosmopolitan Resort & Casino 7 Select DBM Steel Fabrication & Erection Projects 7
Slide 8: DBM Financial Summary
DBM Financial Summary 8 $503 $579 $716 $713 $677 $0 $100 $200 $300 $400 $500 $600 $700 $800 2016 2017 2018 2019 2020 Revenue $28.0 $23.6 $27.7 $24.7 $6.8 $0 $5 $10 $15 $20 $25 $30 2016 2017 2018 2019 2020 Net Income Attrib. to Innovate $498 $395 $1,634 $826 $608 $1,899 $0 $500 $1,000 $1,500 $2,000 2
Slide 9: Pansend Life Sciences
PANSENDGENOVEL 9 LIFE SCIENCES
Slide 10: Pansend Life Sciences platform
• Pansend is INNOVATE’s life sciences platform • Investments in four life science companies: R2 Technologies, MediBeacon, Triple Ring Technologies and Genovel Orthopedics • Outstanding leadership team with a proven track record for developing and monetizing life science companies • In 2018, sold Ben
Slide 11: R2 Technologies Glacial Rx
• Glacial Rx®, launched in 2021 by R2, is the first FDA cleared treatment for age spot removal that uses Cryomodulation – a patented cooling technology. This revolutionary system soothes skin while effectively removing age spots • Glacial Rx® is anticipated to disrupt conventional heat-based laser t
Slide 12: How Glacial Rx Compares
1M Technologies How Glacial Rx” Compares Results are typical after a single treatment, and you can expect to see the full benefit of Glacial Rx” within one to two months -and in some cases, even sooner. Glacial Rx™ LASER FACIAL FEELS GOOD VA v LITTLE TO NO DOWNTIME VA v NO HEAT Vv v PROVEN EFFECTIVE
Slide 13: MediBeacon
MediBeacon 13 (1) Based on studies from LifeSci Advisors (2019) and L.E.K. (2017) commissioned by MediBeacon (2) Based on Effimed Exploratory GI Market Research (2017) commissioned by MediBeacon (3) Based on Medicare Plan B data from 2012-2017 combined with MediBeacon market assumptions (4) Based on
Slide 14: MediBeacon
MediBeacon Life, illuminated.
Slide 15: Triple Ring Technologies and Genovel Orthopedics
Triple Ring Technologies • Diversified, profitable technology and product development firm with 100 experienced scientists & engineers, including 21 PhDs • Completed 450 projects from technology assessments to product development • 2020 revenue was $27 million • Pansend owns 23%(1) Genovel Orthopedi
Slide 16: Spectrum: HC2 Broadcasting
SPECTRUM HC2 Broadcasting 16
Slide 17: HC2 Broadcasting
• One of the largest broadcast station groups in the US with approx. 230 broadcast stations in over 90 markets – including 34 of the top 35 markets • One of the largest owners of broadcast spectrum in the US with more than 2.3 billion MHz POPs of spectrum • As cable TV “cord cutting” increases and t
Slide 18: OTA free TV households are growing rapidly
“The extraordinary growth of multicast TV networks over the past five years is one of the less told stories in the media industry. Today, more people watch more advertising for more time on multicast networks in the U.S. than they do on ad-supported streaming services, and all of that viewing is new
Slide 19: Spectrum is becoming increasingly valuable
• In 2017, the FCC reallocated OTA broadcasting spectrum to the telecom industry – auction prices were $0.93 per megahertz POP • INNOVATE owns 98% of HC2 Broadcasting (86% fully diluted) Spectrum is becoming increasingly valuable & HC2 Broadcasting owns 2.3 billion MHz POPs of spectrum 19 0.93 1.11
Slide 20: Additional Opportunities
ADDITIONAL OPPORTUNITIES 20
Slide 21: INNOVATE – Additional Opportunities
INNOVATE – Additional Opportunities 21 (1) There are no assurances that milestones will be achieved. Benevir • As part of INNOVATE’s sale of Benevir to Janssen Biotech in 2018, $140 million will be paid to INNOVATE upon certain regulatory approvals in the US, EU & Japan and up to $370 million will b
Slide 22: Summary
22 SUMMARY 22
Slide 23: Chairman quote on best-in-class assets
“It’s rare to uncover a single investment in the new economy that’s best-in-class. To find a company that has multiple best-in-class assets is extraordinary” Avie Glazer INNOVATE Chairman 23
Slide 24: Appendix
24 APPENDIX 24
Slide 25: Consolidated Q2 Results
(1) Net Income attributable to INNOVATE Corp. (2) See Appendix for reconciliation of Non-GAAP to U.S. GAAP (3) Adjusted Backlog takes into consideration awarded, but not yet signed contracts and there are no assurances that these contracts will be entered into in the timeframe we anticipate or at al
Slide 26: Current Credit Picture
Current Credit Picture 26 Debt Summary ($ millions) Maturity Jun-21 Dec-20 11.50% Senior Secured Notes 2021 $ — $ 340.4 8.50% Senior Secured Notes 2026 330.0 — 7.50% Convertible Senior Notes 2022 3.2 55.0 7.50% Convertible Senior Notes 2026 51.8 — Line of Credit (1) 2024 5.0 15.0 Infrastructure Debt
Slide 27: Adjusted EBITDA reconciliation, three months ended June 30, 2021
27 (in millions) Three months ended June 30, 2021 Infrastructure Life Sciences Spectrum Non- operating Corporate Other and Eliminations INNOVATE Net (loss) attributable to INNOVATE Corp. $ (23.5) Less: Discontinued operations (1.5) Net Income (loss) attributable to INNOVATE Corp., excluding disconti
Slide 28: Adjusted EBITDA reconciliation, three months ended June 30, 2020
28 (in millions) Three months ended June 30, 2020 Infrastructure Life Sciences Spectrum Non- operating Corporate Other and Eliminations INNOVATE Net income attributable to INNOVATE Corp. $ 13.1 Less: Discontinued operations 7.5 Net Income (loss) attributable to INNOVATE Corp., excluding discontinued
Slide 29: DBM Global Adjusted EBITDA reconciliation
29 (in millions) DBM Global (Infrastructure Segment) For the Year Ending December 31, 2015 2016 2017 2018 2019 2020 Net Income (loss) attributable to INNOVATE Corp., excluding discontinued operations $ 24.4 $ 28.0 $ 23.6 $ 27.7 $ 24.7 $ 6.8 Adjustments to reconcile net income (loss) to Adjusted EBIT
Slide 30: For more information
For more information: Email: ir@innovatecorp.com Website: innovatecorp.com 30
Slide 31: Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains, and certain oral statements made by our representatives from time to time may contain, "forward-looking statements." Generally, forward-looking statements include information describing acti
Slide 32: Non-GAAP Financial Measures
Non-GAAP Financial Measures In this presentation, INNOVATE refers to certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted EBITDA, which excludes results for discontinued operations, and Adjusted EBITDA for its