Heritage Global Inc. · NASDAQ:HGBL
Heritage Global — Investor Presentation (June 2020)
23 slides from Heritage Global's investor presentation, Jun 4, 2020
Slide 1: Investor Presentation May 2020
Investor Presentation May 2020 Acquisition/disposition/valuation/lending services for surplus and distressed assets Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This communication includes forward-looking statements based on our current expectations and projections about future events. For these statements, Heritage Global Inc. (the “Company”) claims the protection of the safe harbor for forward-looking statements contained in the
Slide 3: Company Overview
Company Overview Heritage Global Inc. is a diversified financial services company providing acquisition, disposition, valuation, and lending services for surplus and distressed assets. Asset Sales Valuation Services Advisory Specialty Lending Specialty Financing Solutions Charged-Off Portfolios SPEC
Slide 4: Representative Clients
Representative Clients CED AMGEN QSENG QARES Ax ReGIONs CHASE © JPMorgan ee NOKIA @ aot oes Honeywell at. BBS pareve ME bp color HARLEY-DAVIDSON AEROJE of Genentech ' IROCKETDYNE QH RSE
Slide 5: Value Creation – Investment Highlights
Value Creation – Investment Highlights MARKET DATA1 FINANCIAL TRENDS2 1 In US dollars as of 5/27/20. 2 Represents LTM data through March 31, 2020. 3 See “Reconciliations of Non-GAAP Measures” in the Appendix of this presentation. Competitive Advantages Financial Performance Shareholder Value Global
Slide 6: Competitive Advantages
Competitive Advantages Domain Expertise * Deal sourcing * Relationships * Execution capabilities * Track records Platforms * Diversification * Integrated services offering/turnkey solution provider * Global scale/infrastructure * Player across underserved markets Durability Countercyclical * Auction
Slide 7: Leadership Team
Leadership Team Ross Dove Chief Executive Officer Over 30 years experience in the auction industry. Kirk Dove Chief Operating Officer Over 30 years experience in the auction industry. Scott West Chief Financial Officer Over 25 years executive financial accounting and business management experience s
Slide 8: Positioned to Grow in All Cycles
Positioned to Grow in All Cycles Wider spreads on principal asset/loan activities Favorable lending cycle Higher nonperforming assets/net charge-offs Building surplus inventories and bankruptcies Lower asset prices/volumes Pressure on Net Interest Margins Declining Net Interest Income Macro Headwind
Slide 9: Expected COVID-19 Impact
Expected COVID-19 Impact* * The Company cautions that for certain of its business units that rely on travel and field work restrictions, related to COVID-19 may result in decreased revenues depending on the scope and duration of such restrictions. Rising Supply of Distressed Assets Accelerating auct
Slide 10: Sustainable Growth
Sustainable Growth Vision: Become the dominant solution and most respected and trusted firm to corporations, trustees and lenders needing to monetize challenged assets across all classes and geographies. Growth Drivers Principal Deals Business Development Product & Services Development Target Market
Slide 11: Global Platform
Global Platform Puerto Rico Costa Rica Mexico Canada Spain England France Ireland Germany Italy China South Korea Australia HERITAGE GLOBAL PARTNERS SALES
Slide 12: Financial Performance
Financial Performance 1 Profitability Inflection point Building scale across platforms Rising operating leverage 2 Diversification Across/within business units Agency vs. principal revenue streams More predictable and forecastable revenues, margins, and earnings 3 Financial Flexibility Building EBIT
Slide 13: Financial Performance – Operating Efficiencies
Financial Performance – Operating Efficiencies Action Plan Build Scale Within businesses Manage Expenses Corporate level Drive Operating Leverage Maintain high incremental margins Increasingly Leverage Synergies Processes & systems Across platforms Business unit level Centralized database Favorable
Slide 14: Value Creation
Value Creation Financial Performance * Healthy & achievable growth projections Strengthening & Leveraging the Balance Sheet * Upsized credit facility * Business lines of credit * Capital management Investor Relations * Investor targeting & outreach * Enhance messaging, disclosures, reporting Improvi
Slide 15: Appendix
Appendix
Slide 16: Heritage Global Partners
Heritage Global Partners 3 Growth Drivers Shift toward higher-contribution principal deals Recent alliance with Napier Park to acquire industrial equipment and real estate assets Building surplus equipment assuming accelerating Pharma M&A to refill pipelines Increasingly leveraging Capital Asset Red
Slide 17: Heritage National Loan Exchange (NLEX)
Heritage National Loan Exchange (“NLEX”) 3 Growth Drivers Innovative expansion into FinTech, student loans, and peer-to-peer lending sectors Plans to add post-sale initiatives Banks set to bring more volume to market reflecting a less onerous regulatory environment 1 Services NLEX is a loan sale adv
Slide 18: Heritage Global Capital Services
Heritage Global Capital 1 Services Heritage Global Capital provides specialty financing solutions to small- and medium-sized investors in charged-off and nonperforming asset portfolios and other asset-based classes. 2 Differentiating Factors Decades of domain expertise and the ability to leverage es
Slide 19: Heritage Global Valuations
Heritage Global Valuations 3 Growth Drivers Additional bank-approved vendor lists Deepen penetration with existing bank relationships Geographic expansion 1 Services Industrial and wholesale inventory/equipment valuations to assist financial institutions in making lending decisions 2 Differentiating
Slide 20: Heritage Global Patents & Trademarks
3 Growth Drivers Expand relationships with National Association of Bankruptcy Trustees Increase sales of non-commercialized patents in Global 1000 Heritage Global Patents & Trademarks 1 Services Proactively manage/streamline corporate Intellectual Property portfolios via sealed-bid and online auctio
Slide 21: Peer Comparables
Peer Comparables Valuation Comparisons Date: (sm) 201920202021 201920202021 219-220 2021 20/19 21/20 2019 YD _ QH RSE
Slide 22: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures 1 The Company uses the non-GAAP financial measure “Adjusted EBITDA” in assessing its results because the Company believes that Adjusted EBITDA is relevant and useful supplemental information for our investors. The Company believes that the presentation of this no
Slide 23: InvestorRelations@hginc.com (858) 242-4741
InvestorRelations@hginc.com (858) 242-4741