Great Elm Group, Inc. · NASDAQ:GEG

Great Elm — Q2 2022 Earnings Presentation

23 slides from Great Elm's earnings presentation, Feb 10, 2022

  1. Slide 1: Conference Call Presentation Fiscal Second Quarter Ended December 31, 2021

    Great Elm Group, Inc. Conference Call Presentation Fiscal Second Quarter Ended December 31, 2021 February 10, 2022 NASDAQ: GEG

  2. Slide 2: Disclaimer

    edit Master title style Disclaimer Statements in this press release that are “forward-looking” statements, including statements regarding expected growth, profitability, acquisition opportunities and outlook involve risks and uncertainties that may individually or collectively impact the matters des

  3. Slide 3: Driving Shareholder Value: Business Operating Units

    edit Master Driving title styleValue Shareholder Business Operating Units Operating Companies Investment Management Great Elm Durable Medical Equipment (“DME”) Business Great Elm Capital Management, Inc. (“GECM”) ▪ Distributor of respiratory care equipment (CPAP, ventilators, ▪ SEC Registered Invest

  4. Slide 4: Fiscal 2022 Second Quarter Highlights

    edit Master Fiscal title style 2022 Second Quarter Highlights Consolidated IM Operating Companies GECC grew AUM DME grew revenue and meaningfully, year-over-year Adjusted EBITDA by 8.1% Great Elm grew revenue and and 39.8%, respectively year- Adjusted EBITDA by 9.4% Post quarter end, GECC over-year

  5. Slide 5: Consolidated Financials: By Quarter

    edit Master title Consolidated style Financials: By Quarter Summary (in millions) Three Months Ended December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020 Revenue by segment DME $ 15.7 $ 15.6 $ 15.4 $ 13.1 $ 14.5 Investment Management 1.0 1.0 0.9 0.7 0.8 General Corpora

  6. Slide 6: Consolidated Financials: Year-Over-Year

    edit Master title Consolidated style Financials: Year-Over-Year Summary (in millions) Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2021 2020 2021 2020 Revenue by Segment DME $ 15.7 $ 14.5 $ 31.3 $ 29.2 Investment Management 1.0 0.8 2.0 1.5 General Corporate

  7. Slide 7: DME – Operating Highlights

    edit Master Operating title style DME – Operating Highlights Companies: ▪ In fiscal 2Q22, DME generated $15.7 million of revenue, $0.9 million of net income and $2.6 million of Adjusted EBITDA1 ▪ Revenue increased due to continued organic growth in resupply sales and contributions from the AMPM and

  8. Slide 8: DME – By Quarter

    edit Master Operating title style DME – By Quarter Companies: (in thousands) Three Months Ended December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020 Total net revenue Sales and services revenue - medical equipment $ 8,968 $ 8,730 $ 8,566 $ 7,309 $ 8,411 Sales and servi

  9. Slide 9: DME – Year-Over-Year

    edit Master Operating title style DME – Year-Over-Year Companies: (in thousands) Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2021 2020 2021 2020 Total Net Revenue: Sales and Services Revenue - Medical Equipment $ 8,968 $ 8,411 $ 17,698 $ 16,419 Sales and S

  10. Slide 10: Investment Management: A Scalable, High Margin Business

    edit MasterManagement: Investment title style A Scalable, High Margin Business AUM GROWTH HIGH MARGINS Grow GECC’s AUM through the AUM Growth Given the largely fixed cost nature of the issuance of additional debt and equity, Investment Management business, we supplemented by accretive acquisitions,

  11. Slide 11: Investment Management

    edit MasterManagement Investment title style In fiscal 2Q22, Investment Management generated Quarterly Highlight $1.0 million of revenue, $2.6 million of net loss and no Adjusted EBITDA1 GECC is building a platform that provides a ▪ Year over year revenue growth driven by an “continuum of lending” t

  12. Slide 12: Investment Management: By Quarter

    edit MasterManagement: Investment title style By Quarter (in thousands) Three Months Ended December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020 Total revenues $ 1,021 $ 983 $ 949 $ 728 $ 760 GAAP net income (loss) from continuing operations1 $ (2,631) $ (140) $ 1,311 $

  13. Slide 13: Investment Management: Year-Over-Year

    edit MasterManagement: Investment title style Year-Over-Year (in thousands) Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2021 2020 2021 2020 Total revenues $ 1,021 $ 760 $ 2,004 $ 1,533 Net income (loss) from continuing operations - GAAP1 $ (2,631) $ 3,631

  14. Slide 14: General Corporate: By Quarter

    edit Master General title style Corporate: By Quarter (in thousands) Three Months Ended December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020 Total revenue $ 172 $ 243 $ 281 $ 162 $ 45 1 Operating costs and expenses : Public company costs (878) (993) (429) (1,162) (651)

  15. Slide 15: General Corporate: Year-Over-Year

    edit Master General title style Corporate: Year-Over-Year (in thousands) Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2021 2020 2021 2020 Total revenue $ 172 $ 45 $ 415 $ 136 Operating costs and expenses1: Public company costs (878) (651) (1,871) (1,265) No

  16. Slide 16: 2Q22 Consolidating Balance Sheets

    edit Master Financial title style Review: 2Q22 Consolidating Balance Sheets (Unaudited) Durable Medical Investment Corporate Elimination Consolidated $ in thousands Equipment Management ASSETS Cash and cash equivalents $ 8,228 $ 787 $ 15,941 $ - $ 24,956 Accounts receivable, net 5,271 1,375 95 (125)

  17. Slide 17: 2Q22 Consolidating Income Statement

    edit Master Financial title style Review: 2Q22 Consolidating Income Statement (Unaudited) For the three months ended December 31, 2021 Durable Medical Investment Corporate Elimination Consolidated $ in thousands Equipment Management Total Revenues $ 15,728 $ 1,021 $ 172 $ (172) $ 16,749 Cost of reve

  18. Slide 18: Shareholder Alignment

    edit Master Strong title style Shareholder Alignment ▪ Employees of GEG/Great Elm Capital Management, Inc. (“GECM”) Employee Share Employee Share ▪ Employees of GEG collectively own approximately 1.9 million shares of GEG, collectively own approximately 1.9 million shares of GEG, representing repres

  19. Slide 19: Appendix

    edit Master title style Appendix Great Elm Group, Inc. | NASDAQ: GEG 19

  20. Slide 20: Organization Structure

    edit Master title Organization: style Structure Great Elm Group, Inc. (“Great Elm” or “GEG”) (NASDAQ: GEG) Holds Former 20% ~20.4% 100% 80.1% 19.9% 80% JPM shares owners Great Elm Capital Forest Investments, Inc. Great Elm Capital Corp. Management, Inc. (“GECM”) Great Elm Durable Medical (“Forest”)

  21. Slide 21: Appendix: Non-GAAP Reconciliation

    edit Master Appendix: title style Reconciliation Non-GAAP For the three months ended December 31, 2021 Durable Medical Investment Corporate Consolidated $ in thousands Equipment Management EBITDA: Net income (loss) from continuing operations - GAAP $ 937 $ (2,631) $ (2,465) $ (4,159) Interest expens

  22. Slide 22: Non-GAAP Reconciliation (cont.): Prior Year Period

    edit Master Appendix: title style Reconciliation (cont.): Prior Year Period Non-GAAP For the three months ended December 31, 2020 Durable Medical Investment Corporate (1) Consolidated $ in thousands Equipment Management (1) EBITDA: Net income (loss) from continuing operations - GAAP $ (2,878) $ 3,63

  23. Slide 23: Contact Information

    edit Master Appendix: title style Contact Information Investor Relations 800 South Street, Suite 230 Waltham, MA 02453 +1 (617) 375-3006 investorrelations@greatelmcap.com Great Elm Group, Inc. | NASDAQ: GEG 23

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