Adt Inc. · NYSE:ADT
Adt — ADT State Farm Partnership Announcement Conference Call (September 2022)
12 slides from Adt's conference presentation, Sep 6, 2022
Slide 1: Investor Presentation
Investor Presentation September 6, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements The Company has made statements in this communication and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included
Slide 3: State Farm becomes a significant strategic investor in ADT
State Farm becomes a significant strategic investor in ADT Leading auto & home insurer in the U.S. Most trusted brand in World class ~90M total policies and accounts smart home security technology innovator and 13.7 million homeowners serving 6.5 million households policies in force • New integrated
Slide 4: Strong conviction in ADT's customer-focused strategy and growth potential
Strong conviction in ADT’s customer-focused strategy and growth potential • State Farm to invest $1.2 billion to acquire 133.3 million shares at $9 per share, 17.6% premium to market1. After their equity investment and the tender offer described below, State Farm will own ~15% of ADT2 State Farm – A
Slide 5: State Farm and Google are industry leaders and best-in-class partners for ADT
State Farm and Google are industry leaders and best-in-class partners for ADT Leading auto & home World class insurer in the U.S. technology innovator 100-year ~57,000 employees and Highly recognized consumer Helpful smart home platform track record 19,500 agents nationwide technology brand A++ High
Slide 6: Our vision of these partnerships reinforces our long-term strategy outlined at our investor day
Our vision of these partnerships reinforces our long-term strategy outlined at our investor day Enable customers to better manage Accelerate penetration and unlock the risks of everyday life and 1 2 greater share of wallet in fast protect what matters most growing markets Build upon our success Adva
Slide 7: 1. Enable customers to better manage the risks of everyday life and protect what matters most
1. Enable customers to better manage the risks of everyday life and protect what matters most ADT’s immediate customer Severity Frequency notification and ability to rapidly notify emergency response Annual Losses services via 24/7 smoke and fire from Fire Damage monitoring can reduce or prevent hom
Slide 8: 2. Accelerate penetration and unlock greater share of wallet in fast growing markets
2. Accelerate penetration and unlock greater share of wallet in fast growing markets Partnership accelerates penetration and expands ADT’s addressable markets ~90M total policies and accounts and 13.7M homeowners policies Broader addressable market with expanded circle of protection that combines se
Slide 9: 3. Advance path toward capital efficient growth and innovation
3. Advance path toward capital efficient growth and innovation CSB Subscribers Attrition Revenue Payback 7M+ 16%+ 2.7x 2.3x 2.2x 6.5M 13.1% 6.4M 12.7% < 2.0x ~12% 1 1 2021 2Q22 2025 Goals Pre-IPO 2021 2Q22 2025 Pre-IPO 2021 2Q22 2025 Goals Goals Nov 2021 Jan 2020 Aug 2020 and Jan 2022 Aug 2022 4Q 20
Slide 10: 4. Improve customer unit economics and financial upside
4. Improve customer unit economics and financial upside ADT and State Farm partnership expected to drive significant long-term customer and financial benefits for both companies Increase Revenue Improve Cash Flow and Capital Efficiency Enhance Higher customer satisfaction Opportunity to leverage Cus
Slide 11: 5. Build upon our success integrating with state-of-the-art technology from Google
5. Build upon our success integrating with state-of-the-art technology from Google Customer Expansion Vertical Extension Enhanced Innovation Significant opportunity to give more ADT monitoring scaled to new Nest video + ADT analytics power new customers access to Google Nest verticals and customer s
Slide 12: In summary
In summary State Farm to become significant strategic investor in ADT, showing strong conviction in ADT’s customer- focused strategy and growth potential Potential to revolutionize smart home security and homeowners insurance with first-of-its-kind integrated offering Protect & Total of up to $600 m
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