APX — Deutsche Bank Leveraged Finance Conference 2015
18 slides from APX's conference presentation, Sep 30, 2015
Slide 1: APX Group Holdings, Inc. Deutsche Bank Leveraged Finance Conference
Exhibit 99.1 APX Group Deutsche Leveraged SeptemberBank Finance 30, Holdings, 2015Conference Inc.
Slide 2: Forward-looking statements
preliminary business forward-looking looking similar Forward-looking factors, home product national costs subscribers local These Form should future obligations The results finalization quarter This United measure information measures, depreciation interest compliance available Flow presentation 2Ad
Slide 3: Executive management team
executive Prior Spent Mark Todd Chief Innovation Bywater ting 3[Graphic Officer to Pedersen Davies Financial Executive 12joining Todd Appears years management Officer Chief Santiago Alex at Vivint, Officer Officer Dell Here] Sales Dunn Inc. served team since JT Officer President Matt in Hwang Novemb
Slide 4: Press reviews of Vivint smart home
the “Instead –“The -“Think “… Samsung, “Like 72° –TechCrunch Intelligent Security iOS, DWELL Entrepreneur TechRadar vivint !it’s Android, Vivint good of more of Smart experience… it or Magazine Learning piecemeal technology, like home ADT…” complete &Locks Nest’s Web system HDThermostat gadgets than
Slide 5: The multi-billion dollar Smart Home opportunity
The billion Smart in •Categories Video Access $3 CAGR 28% Energy $15 Security but 1) Lighting 2) 3) 4) Other 6) 7) Based 5Source: Higher Customer Non-commodity… Affordable billions Compelling In-Home Personalized Interoperability Integrated, requires Smart 5) 2014 Home on industry Analyst •System is
Slide 6: Vivint overview
vivint Over 225K+ ~$700 Most (platform, North (97% Investment [Graphic “… 6–home TechCrunch it’s 1comprehensive of in American ismillion million new more the aAppears meaningful devices, by customers US leading complete in Blackstone customers… zip footprint annual Here] sales, codes) Smart solution
Slide 7: The Sky platform
the Sky 350K+ 190+ inbound 125+ Cloud Monkey DIY Non-integrated Vivint “Vivint Smart has Doorbell Space harmonious •Record 7Note: Security Cloud Expandable Regular vivint come Platform and million Sky Thermostats: Monkey: Home based vs. can model subscribers sales is storage data camera retail: Came
Slide 8: Customers choosing more Smart Home packages
vivint More packages… Customers Smart Percent Security 100 $48.53 58 70 80 51 042 20 30 82009 539 61 49 952010 Vivint is Home $44.50 leading only 2011 choosing leading customers $58.35 offering $56.24 the 2012RMR industry $61.89 Smart $57.59 2013 are choosing Home 2014 $61-$62 in Smart 2015 package
Slide 9: Vivint platform and financial overview
platform Vivint Broad, Data Vivint’s Originates, Two Highly $56-$57 total In 894.2 -1,000.0 500.0 562.0 671.8 revenue $600.0 $563.7 $631-$634 $400.0 $455.2 2011 $0.0 $200.0 $adjusted $292.3 300 200 02250 50 100 150 % Note: (1) (2) 011 inmargin thousands growth Adjusted Pro $244.0 $175.2 millions mon
Slide 10: Leading subscriber portfolio performance and peer comparison
leading subscriber 15.4% 20.0% 15.0% 14.2% 10.0% $38 $50 5.0% $30 0.0% $10 annual 38.0x 14.0% 13.5% 13.4% 13.0% 12.5% 12.0% 11.5% 11.0% Vivint Note: (1). (2) Reflect Based 3.9% $- Based 36.7x ADT Monitronics 28.0x 26.0x $70 $60 $40 36.0x 34.0x 12.3% 30.0x portfolio industry growth on latest $62 $48
Slide 11: Highly efficient direct-to-home sales model
unique Highly Flexibility Hiring Primarily Scalability The •Efficiency Proven Predictability Variable total Personalized, 89% More Direct-to-home Commission direct-to-home 151,090 49,069 58K-59K 204,464 225K-227K 180,347 219,034 2011 167K-168K 155395 % (1) NOTE: Sales direct inside Estimated efficie
Slide 12: Attractive returns for new subscribers
attractive For ~$15 New Based Vivint illustrative cumulative ~$1,860 recovery $2,000 steadily -$1,500 -$1,000 -$500 $0 $500 $1,000 $1,500 0-$2,000 -$2,500 (1) months 126 Assumes 12 each installations subscriber per on organically 18 cumulative and increasing net new subscriber these and 24annual net
Slide 13: Robust contractually recurring cash flow characteristics
robust Contractually Estimated Direct-to-home Maintenance Low Not High operating ($‘s Adjusted Less Operating % New total ($ $60 $40 $42.2 $48.7 2011 $0 $20 $27.1 Vivint Excludes As 13 conversion in of$34.3 expected $56—$57 in RMR attrition Maintenance millions) Subscriber 2012 gross December has ge
Slide 14: Q3 2015 results and estimates
q3inthousands revenue $$168 $171 $100 $146.9 $78.8 $103 total in 1,017 12.8% 1,018 12.0%- Q3 901.4 Y-o-Y Note: Subscriber 14 2015 ‘14 millions subscribers(1) -$56—$57 Revenue -% 12.3% $49.1 Q3 adjusted key growth data ‘15 metric $ in Eand does 14%—16% 12%—13% Q3 EBITDA millions Adjusted LTM estimate
Slide 15: Key metrics and Q&A
$61+MILLION+ Q&A LTM NEW WORLDWIDE AND 1,000,000+ TECHS $56 CUSTOMERS RECURRING 80% ADOPTION Note: 15 subscribers ADDITIONAL AVG. 3,000 INSTALL RMR SUBSCRIBERS RMR +and 100% RATE >3,000 MONTHLY SALES Avg 100% FORSERVICES RMR SMART EMPLOYEES REPS per REVENUE New HOME Subscriber SEASONAL ENABLED are e
Slide 16: Appendix
Appendix
Slide 17: Adjusted EBITDA and Cash Flow reconciliation
reconciliation 2011 Net Interest Income Depreciation Amortization Non-capitalized Non-cash Gain Transaction Adjusted Less Operating Excludes subscriber Reflects Other 17 loss maintenace on 2012 Adjustments (income) adjustments expense, tax 2GIG $non-cash subscriber EBITDA loan compensation Cash (62.
Slide 18: Definitions of non-GAAP measures
certain Total Avg. canceled contract, Acquisition These associated Income exclude unusual, expenditures Net 18 Creation Service RMR Subscribers include definitions (loss) the non-cash, are subscribers with per effects Cost Margin terminated to Cost before commissions, Subscriber New maintain the ––M
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