Kingsway Corporation · NYSE:KWY
Kingsway — Kingsway Financial Services — Investor Presentation (April 2025)
28 slides from Kingsway's investor presentation, Apr 23, 2025
Slide 1: Investor Presentation: Building through Search
NYSE: KFS Investor Presentation April 2025 Building through Search
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical facts and involve risks and uncertainties that could cause actual results
Slide 3: Agenda
Agenda Search Is An Attractive Asset Class Kingsway’s Value Proposition The Kingsway Growth Flywheel Appendix Building through Search
Slide 4: About Us
About Us Kingsway Financial Services Inc. (“Kingsway”) (NYSE: KFS) is the only publicly-traded US company employing the Search Fund model to acquire and build great businesses. Kingsway owns and operates a collection of high-quality B2B and B2C services companies that are asset-light, growing, profi
Slide 5: Search Is An Attractive Asset Class
Search Is An Attractive Asset Class
Slide 6: Search Has Compelling Long-Term Returns
Search Has Compelling Long-Term Returns The Search Fund model – or “Entrepreneurship Through Acquisition” (ETA) – has an attractive historical track record. “ Since 1996 the Center for Entrepreneurial Studies at Stanford Graduate School of Business (GSB) has conducted a biennial study of core search
Slide 7: Search Serves A Clear Market Purpose
Search Serves A Clear Market Purpose Search provides an exit to small business owners looking to retire, but who don’t have a logical succession plan. Looking to Retire Post-MBA No Succession Plan or Heir Talented and Motivated Seller Requires Monetization Event Provides a Financial Exit Buyer No PE
Slide 8: Why Search Outperforms
Why Search Outperforms An energetic, talented, and incentivized operator often finds numerous paths to improve a “lifestyle” business. Kingsway “Lifestyle” Business Motivated Operator Building through Search Founder-Led Sales Professional Sales Team Kingsway employs the traditional Search Fund model
Slide 9: The "Silver Tsunami" Of Business Owner Retirements Has Arrived
The “Silver Tsunami” Of Business Owner Retirements Has Arrived The next two decades will see record numbers of Baby Boomer business owners looking for an exit. Nearly $4.8 trillion of net More than 2 million small Lower middle market Search Funds can help fill worth, representing the businesses are
Slide 10: Kingsway's Value Proposition
Kingsway’s Value Proposition
Slide 11: Search Is Difficult To Access
Search Is Difficult To Access Kingsway offers a unique vehicle to participate in the Search Fund asset class via an NYSE-listed company. DIY SEARCH FUND INVESTING PRIVATE FOF OR SEARCH ACCELERATORS Kingsway Building through Search Most Search Fund investing is An alternative approach is to still don
Slide 12: Kingsway's Advantages
Kingsway’s Advantages Kingsway is well-positioned for success with permanent capital and years of investment in its Search infrastructure. Strong Track Disciplined Infrastructure Record Investment Criteria and Support World-Class Top Quality Public Company Advisory Board Searcher Talent Reputation P
Slide 13: Kingsway's Operating Structure
Kingsway’s Operating Structure Following the “Outsiders” playbook, Kingsway employs a decentralized model with highly incentivized operators. Kingsway Financial Services, Inc. Holding Company LEADERSHIP TEAM OPERATORS IN RESIDENCE OPERATING COMPANIES John T. Fitzgerald President, CEO, and Director K
Slide 14: A World-Class Advisory Board
A World-Class Advisory Board Kingsway’s Operators-In-Residence and Business CEO’s have access to an exceptional team of advisors. BOARD PROFILES Thomas Joyce Will Thorndike Tyler Gordy Mr. Tom Joyce served as CEO of Mr. Will Thorndike is widely known as Mr. Tyler Gordy is a Partner at Artesian, a Da
Slide 15: A Tax-Advantaged Corporate Structure
A Tax-Advantaged Corporate Structure Kingsway has $622m of valuable NOL tax assets. Kingsway’s tax assets stem from a legacy business exited many years ago. $385m Kingsway’s NOL’s relate to a truck insurance business that suffered during the 2008 financial crisis. $92m Kingsway began its pivot to th
Slide 16: The Kingsway Growth Flywheel
The Kingsway Growth Flywheel
Slide 17: Kingsway's Strategy: A Self-Funding Flywheel
Kingsway’s Strategy: A Self-Funding Flywheel Cash flows from Kingsway’s portfolio of asset-light businesses can fund further acquisitions and growth. Invest To Grow Acquire Great Businesses 2 1 Typical Organic Growth Path Post-Transaction Investment period to position the business for growth Kingswa
Slide 18: A Promising Track Record
A Promising Track Record Kingsway’s experience with Search provides confidence the model is working. PWSC Kingsway’s proof-of-concept with the Search Fund model was the acquisition of a new home warranty business called PWSC. PWSC was acquired for $10m, funded 50% with preferred equity. Tyler Gordy,
Slide 19: Financial And Business Targets
Financial And Business Targets Kingsway seeks to grow EBITDA via acquisition as well as organically. 2-3 >30% ACQUISITIONS PER YEAR ACQUISITION IRR HURDLE Kingsway’s 12-month run-rate adjusted EBITDA for its operating companies is $19.0-$20.0 million Building through Search NYSE:KFS 19
Slide 20: Kingsway Owns High-Quality B2B and B2C Services Businesses
Kingsway Owns High-Quality B2B and B2C Services Businesses Public peers generally trade for EBITDA multiples well into the double-digits. B2B Services B2B Services B2B Services Healthcare Services Healthcare Services Vertical Market SaaS Skilled Trades Building through Search NYSE:KFS 20
Slide 21: Kingsway's Acquisitions Have Been Done At Attractive Multiples
Kingsway’s Acquisitions Have Been Done At Attractive Multiples Business purchases are consistently within the target valuation range. Acquired 2021 2022 2022 2023 2023 2024 2025 Deal Price $11.0M $8.5M $10.9M $2.8M $11.0M $19.5M $5.0M Adj. EBITDA (i) $1.9M $1.8M $2.7M Not Disclosed $1.8M $3.1M $0.8M
Slide 22: Case Study: SPI
Case Study: SPI SPI was purchased for 1.3x ARR – and today is a Rule-of-40 SaaS business. CEO PROFILE Mission-Critical Timeshare Software Opportunity to Accelerate Growth In 2024, SPI Reached Rule-of-40 Drew Richard Drew joined Kingsway in the summer of 2022. Prior to joining Kingsway, he worked in
Slide 23: Appendix
a. Appendix
Slide 24: Kingsway's Extended Warranty Businesses
Kingsway’s Extended Warranty Businesses Kingsway owns and operates four high-margin, asset-light warranty businesses with high returns on capital. Acquired Services Channel Performance Vehicle Credit Onboarding two new 2012 Warranty Unions partners; robust pipeline Vehicle Independent 2020 Warranty
Slide 25: 12-Month Run-Rate Adjusted EBITDA Definition
12-Month Run-Rate Adjusted EBITDA Definition This metric is not intended to be guidance by management regarding the future earnings of the Company; rather, it is intended to capture the twelve-month earnings of what the Company currently owns or has recently acquired; as such, it includes: The a
Slide 26: Consolidated GAAP to Non-GAAP Operating Income Reconciliation
Consolidated GAAP to Non-GAAP Operating Income Reconciliation (In ‘000s) For the Year Ended 2024 2023 2022 2021 GAAP Net Income (Loss) ($8,295) $24,012 $15,065 $1,860 Discontinued Operations 182 1,538 15,067 (4,573) Changes in Fair Value; Realized Gains/Losses (1) 260 (689) (10,649) 907 Employee Rel
Slide 27: Chapters Group Offers A Template For Kingsway
Chapters Group Offers A Template For Kingsway Chapters Group, a listed German firm, pursued a similar business model to Kingsway – and now trades for 30x EBITDA. 10x Return since 2018 Chapter’s Group (“CHG”) began as a software startup in 1998 near Frankfurt, Germany. In 2018, it sold its core busin
Slide 28: Building through Search
Building through Search Kent Hansen James Carbonara kingsway-financial.com Chief Financial Officer Partner, Hayden IR (312) 766-2163 (646) 755-7412 khansen@kingsway-financial.com james@haydenir.com
Kingsway Financial Services — Investor Presentation (April 2025) on 6ix