Innovate Corp. · NYSE:VATE
Innovate — Investor Presentation (September 2022)
29 slides from Innovate's investor presentation, Sep 22, 2022
Slide 1: INNOVATE
w INNOVATE VATE LISTED NYSE
Slide 2: INNOVATE platform in three key areas of the new economy
INFRASTRUCTURE • DBM Global: Largest steel fabrication and erection company in the USA LIFE SCIENCES • R2 Technologies: the first and only device to employ Cryomodulationtm using PRECISION COOLING to address SOURCES of redness, benign lesions, inflammation and more • MediBeacon: Developing the first
Slide 3: DBM Global subsidiary brands
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Slide 4: DBM Global
• The largest steel fabrication and erection company in the USA • Approx. $1.5 billion Backlog as of 6/30/22 (down from $1.6 billion on 12/31/21) Approx. $1.7 billion Adjusted Backlog(1) as of 6/30/22 taking into account awarded, but not yet signed contracts • DBM is poised for growth and its perfor
Slide 5: Select DBM Steel Fabrication & Erection Projects
SoFi Stadium, Los Angeles Hudson Yards, New YorkApple Headquarters Facebook MPK21 Phoenix Convention CenterFort Benning Hospital Cosmopolitan Resort & Casino 5 Select DBM Steel Fabrication & Erection Projects 5
Slide 6: DBM Second Quarter 2022 Segment Highlights
DBM Second Quarter 2022 Segment Highlights 6 ■ Address working capital needs from growth, changes in projects and timing ■ Strong backlog provides runway for future cash generation of the business ■ Revenue and EBITDA increases primarily due to the acquisition of Banker Steel which was acquired May
Slide 7: Pansend Genovel Life Sciences
PANSEND GENOVEL 7 LIFE SCIENCES
Slide 8: Pansend Life Sciences, LLC
• Pansend is INNOVATE’s life sciences platform • Pansend has investments in four life science companies: R2 Technologies, MediBeacon, Triple Ring Technologies and Genovel Orthopedics • Pansend was founded by and is led by David A. Present, MD and Cherine Eldumiati Plumaker. Their outstanding leaders
Slide 9: R2 Technologies
• Glacial Rx®, launched in 2021 by R2 Technologies, is the first and only device to employ Cryomodulationtm using PRECISION COOLING to address SOURCES of redness, benign lesions, inflammation and more. • Massive market opportunity: $22 billion(1) skin tone evening, lightening and brightening product
Slide 10: Glacial Rx Laser Facial
Glacial Rx Laser Facial Feels good Little to no downtime No heat Proven effective on age spots Uses Cryomodulation technology Can be performed any time of the year No smoky plume Results are typical after a single treatment and one can expect to see the full benefit of Glacial Rx within 1 to 2 month
Slide 11: MediBeacon
MediBeacon 11 (1) Based on studies from LifeSci Advisors (2019) and L.E.K. (2017) commissioned by MediBeacon (2) Based on Effimed Exploratory GI Market Research (2017) commissioned by MediBeacon (3) Based on Medicare Plan B data from 2012-2017 combined with MediBeacon market assumptions (4) Based on
Slide 12: 12
12
Slide 13: Triple Ring Technologies, Genovel Orthopedics and Other Pansend Opportunities
Triple Ring Technologies • A diversified, profitable technology and product development firm with 100 experienced scientists & engineers, including 21 PhDs • Completed 450 projects from technology assessments to product development • 2021 revenue was $28 million • Pansend owns 23%(1) Genovel Orthope
Slide 14: Pansend Second Quarter 2022 Segment Highlights
Pansend Second Quarter 2022 Segment Highlights 14 MediBeaconR2 Technologies (1) Investment-to-date totals and equity ownership percentages are as of June 30, 2022. (2) MediBeacon agents and devices are not approved for human use by any regulatory agency. Company Investment to Date Equity % Fully Dil
Slide 15: Spectrum HC2 Broadcasting
SPECTRUM HC2 Broadcasting 15
Slide 16: HC2 Broadcasting overview
• One of the largest broadcast station groups in the US with 249 operating broadcast stations in over 100 markets – including 33 of the top 34 markets • One of the largest owners of broadcast spectrum in the US with more than 2.3 billion MHz POPs of spectrum • As cable TV “cord cutting” increases an
Slide 17: HC2 stations carry approx. 1,500 channels from over 70 diginets
17 HC2’s stations carry approx. 1,500 channels with programming from over 70 diginets
Slide 18: HC2 Broadcasting Second Quarter 2022 Segment Highlights
HC2 Broadcasting Second Quarter 2022 Segment Highlights 18 ■ Finished all station builds targeted in 2022 ■ Completed the build-out of a new station for license WKOB-LD in New York City. The new site for the station is One World Trade Center and is now on-air, providing a far-ranging robust signal t
Slide 19: INNOVATE Summary
INNOVATE Summary 19 INFRASTRUCTURE Integrated structural steel and construction services 91% Owned LIFE SCIENCES Develops innovative healthcare technologies to address unmet needs with four investments SPECTRUM One of the largest over-the-air broadcast groups in the U.S. 98% Owned (1) Based on lates
Slide 20: Appendix
20 APPENDIX
Slide 21: Q2 2022 Financial Highlights
(1) Net Income attributable to INNOVATE Corp. (2) See Appendix for reconciliation of Non-GAAP to U.S. GAAP (3) Adjusted Backlog takes into consideration awarded, but not yet signed contracts Q2 2022 Financial Highlights 21 Consolidated Q2 Results ■ Revenue increased $148.4M or 60.9% driven by our In
Slide 22: Current Credit Picture
Current Credit Picture 22 ($ millions) (1) Debt Maturity Profile excludes Preferred Stock and capital leases (2) Infrastructure Line of Credit reflects maturity in 2024 and not U.S. GAAP presentation (3) Debt Amortization and Maturity Profile chart presents debt annual amortization and maturity paym
Slide 23: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA 23 (in millions) Three Months ended June 30, 2022 Infrastructure Life Sciences Spectrum Non-operating Corporate Other and Elimination INNOVATE Net (loss) attributable to INNOVATE Corp. $ (12.4) Less: Discontinued operations — Net Income (l
Slide 24: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA 24 (in millions) Three Months ended June 30, 2021 Infrastructure Life Sciences Spectrum Non-operating Corporate Other and Elimination INNOVATE Net (loss) attributable to INNOVATE Corp. $ (23.5) Less: Discontinued operations (1.5) Net Incom
Slide 25: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA: DBM Global
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA 25 (in millions) DBM Global (Infrastructure Segment) Year Ended December 31, 2021 Six Months ended June 30, 2021 Six Months ended June 30, 2022 Last Twelve Months ended June 30, 2022 Net Income attributable to INNOVATE Corp., excluding dis
Slide 26: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA: Spectrum
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA 26 (in millions) Spectrum Year Ended December 31, 2021 Six Months ended June 30, 2021 Six Months ended June 30, 2022 Last Twelve Months ended June 30, 2022 Net (loss) attributable to INNOVATE Corp., excluding discontinued operations $ (12.
Slide 27: For more information
For more information email ir@innovatecorp.com or visit www.innovatecorp.com 27
Slide 28: Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains, and certain oral statements made by our representatives from time to time may contain, "forward-looking statements." Generally, forward-looking statements include information describing acti
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures In this presentation, INNOVATE refers to certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted EBITDA, which excludes results for discontinued operations, and Adjusted EBITDA for its