Ccc Intelligent Solutions Holdings Inc. · NASDAQ:CCC
Ccc Intelligent Solutions — CCC Information Services — SPAC Merger (February 2021)
53 slides from Ccc Intelligent Solutions's SPAC merger presentation, Feb 3, 2021
Slide 1: Investor Presentation
Exhibit 99.2 INVESTOR PRESENTATION CONFIDENTIAL FEBRUARY 2021 1 ©2021 CCC Information Services Inc. All rights reserved.Exhibit 99.2 INVESTOR PRESENTATION CONFIDENTIAL FEBRUARY 2021 1 ©2021 CCC Information Services Inc. All rights reserved.
Slide 2: Disclaimer
D i s c l a i m e r This investor presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to the proposed business combination (the “Business Combination”) between Dragoneer Growth Opportunities Corp. (“DGOC”) and
Slide 3: Disclaimer (Cont'd)
D i s c l a i m e r ( C o n t ’ d ) Non-GAAP Financial Measures. This Presentation includes certain financial measures not presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”), including, but not limited to, Revenue, Adjusted Revenue, Adjusted EBITDA, Adjusted G
Slide 4: Today's Presenters
T o d a y ’ s P r e s e n t e r s Githesh Ramamurthy Marc Fredman Brian Herb Chairman & Senior Vice President, Executive Vice President, Chief Financial Chief Executive Officer Chief Strategy Officer Officer, and Chief Administrative Officer Githesh joined CCC in 1992 as EVP / CTO. In 1996 he Marc l
Slide 5: Dragoneer Investment Group overview
D r a g o n e e r I n v e s t m e n t G r o u p o v e r v i e w Companies People Capital Base § Focus on backing exceptional growth businesses with § Top talent who have demonstrated a pattern of § >$14 billion in total assets under management sustainable differentiation and superior economic excell
Slide 6: CCC and Dragoneer: A partnership of excellence
CCC and Dragoneer: A partnership of excellence CCC is a Market-Leading Vertical SaaS Company that Drives Significant Customer Value and ROI, Leading to Durable Differentiation, an Excellent Economic Model, and a Large Addressable Market with Long-Term Tailwinds What Dragoneer Looks for in a Company
Slide 7: Advent International overview
A d v e n t I n t e r n a t i o n a l o v e r v i e w • Founded in 1984, Advent International is one of the largest and most experienced global private equity firms • With 15 offices across four continents, our globally integrated team focuses on buyouts and growth equity investments in five core se
Slide 8: Company Overview
C O M P A N Y O V E R V I E W ©2021 Information Services Inc. All rights reserved.C O M P A N Y O V E R V I E W ©2021 Information Services Inc. All rights reserved.
Slide 9: CCC: The SaaS platform for the P&C insurance economy
C C C : T h e S a a S p l a t f o r m f o r t h e P & C i n s u r a n c e e c o n o m y INSURERS REPAIR FACILITIES 1 2 300 + 25,000 + Mission-critical AI-enabled (99.96% uptime) SaaS solutions to digitize Complete repair facility operating insurer workflows and drive optimal system to attract, deliv
Slide 10: CCC at a glance
C C C a t a g l a n c e Company overview 100% 30K+ 20+ § Mission-critical cloud platform for highly Multi-tenant Total Consecutive interconnected P&C insurance economy 1 2 cloud platform customers years of growth § Software powers customers’ growth, core operations, and profitability Business overvi
Slide 11: CCC is digitizing the P&C insurance economy
C C C i s d i g i t i z i n g t h e P & C i n s u r a n c e e c o n o m y 1 P&C insurance (US) Nearly half Auto (45%) of entire P&C insurance market is auto, 3 growing ~7% annually Claims 205B 1 of 3 P&C insurance premium dollars ~$600B Non-Auto (55%) 2 is spent on auto claims DWP The CCC Cloud 70B
Slide 12: CCC's leading position is built upon two foundational pillars
C C C ’ s l e a d i n g p o s i t i o n i s b u i l t u p o n t w o f o u n d a t i o n a l p i l l a r s CCC stats Auto Insurance Pillars ~80% of auto claims ~80% of volume paid by 300+ are repairable insurers 1 ~$50B paid to repairers ~40% of volume sourced insurers each year via DRP Repair Insure
Slide 13: Consistent long-term and accelerating growth
C o n s i s t e n t l o n g - t e r m a n d a c c e l e r a t i n g g r o w t h Resilient Business Model 1 Total company adjusted revenue 1 20+ consecutive years of growth across multiple market cycles Resilient business model driven by long-term customer value and recurring revenue Continued quarte
Slide 14: Experienced management team
E x p e r i e n c e d m a n a g e m e n t t e a m Mary Jo Prigge Andreas Hecht Brian Herb Barrett Callaghan Joe Allen EVP and Chief Service SVP & GM, OEM EVP, CFO, and CAO EVP, Markets & SVP & GM, Automotive Delivery Officer Services Group Customer Success Services Group 1 year with CCC 22 years wit
Slide 15: Investment highlights
I n v e s t m e n t h i g h l i g h t s Large, acyclical TAM ready for digitization Blue chip customer base #1 industry SaaS platform powered by 100% with strong account retention 1 multi-tenant cloud and ongoing growth potential Mission-critical, deeply Highly recurring and visible SaaS revenue mod
Slide 16: Business and Product Overview
BUSINESS AND PRODUCT OVERVIEW ©2021 Information Services Inc. All rights reserved.BUSINESS AND PRODUCT OVERVIEW ©2021 Information Services Inc. All rights reserved.
Slide 17: Auto insurance economy is complex and interconnected
A u t o i n s u r a n c e e c o n o m y i s c o m p l e x a n d i n t e r c o n n e c t e d CCC stats Dealers Medical Providers $100B+ $1T+ 30K+ Aftermarket Parts of txns annually historical data companies Recyclers OEMs Consumers CCC connects the many diverse Other Suppliers participants in the ins
Slide 18: Outcomes depend on complicated, hyper-local decisions
O u t c o m e s d e p e n d o n c o m p l i c a t e d , h y p e r - l o c a l d e c i s i o n s CCC is the definitive platform for major decisions made throughout the auto insurance economy EVENT-SPECIFIC FACTORS ECOSYSTEM LOCAL GEOGRAPHIC FACTORS 300+ 25K+ 1.4M 4.1B 6.9M 56K Insurance Repair Labor
Slide 19: CCC solutions address market needs
C C C s o l u t i o n s a d d r e s s m a r k e t n e e d s Insurance Repair Others SaaS solutions that digitize Complete repair facility operating Integrations and data that connect insurer workflows to drive optimal system to attract, deliver, and OEMs, dealers, parts suppliers, decisions and cust
Slide 20: Digitization driven by best-in-class SaaS solutions
D i g i t i z a t i o n d r i v e n b y b e s t -in - c l a s s S a a S s o l u t i o n s CCC solutions deliver Innovative enterprise and consumer-facing applications to drive tangible ROI by: digitization across insurance economy Facilitating lead generation & growth Digitizing manual processes Inc
Slide 21: World-class multi-tenant cloud technology platform
W o r l d - c l a s s m u l t i - t e n a n t c l o u d t e c h n o l o g y p l a t f o r m Cloud Enterprise Scale 350M+ 20M+ Annual interface txns Annual assignments Integrations 500K+ 1,400+ Active registered users Releases per year Applications 39.6 TB 2.7B Network traffic per day Database txns p
Slide 22: CCC delivers real-world AI solutions at enterprise scale
C C C d e l i v e r s r e a l - w o r l d A I s o l u t i o n s a t e n t e r p r i s e s c a l e Real-world Adoption Example Solutions Built for Scale Damage Detection Hyperscale platform to 5+ support large volume of 9 of 10 years of AI concurrent users in consumers deployed in market prefer estim
Slide 23: $35B+ global market opportunity
$ 3 5 B + g l o b a l m a r k e t o p p o r t u n i t y Loss Adjustment Accuracy Ecosystem 1,600 Expense (LAE) $75B+ $50B+ $1T+ Claims handling Avoidable claims Claims expenses leakage payouts Claims 1,100 5:1 5:1 1% 1 Target value capture rate $15B+ $10B+ $10B+ Digitizing claims Eliminating Digitiz
Slide 24: Many expansion adjacencies available
M a n y e x p a n s i o n a d j a c e n c i e s a v a i l a b l e + Cross-sell existing products + Geographic expansion CCC Total Addressable Market + M&A opportunities $35B+ + Cross-sell existing products + Multi-line expansion + New product innovation + New customer expansion (digital / mobile, AI
Slide 25: Building durable, differentiated insurance platform in China
B u i l d i n g d u r a b l e , d i f f e r e n t i a t e d i n s u r a n c e p l a t f o r m i n C h i n a 3 of the world’s top Generational opportunity to digitize insurance economy in China 10 insurers are based in China – and all use CCC has early leadership position CCC solutions with insurers
Slide 26: Rising complexity drives demand for digital solutions
R i s i n g c o m p l e x i t y d r i v e s d e m a n d f o r d i g i t a l s o l u t i o n s VEHICLE STRUCTURE INTERNAL SYSTEMS ADAS / DIAGNOSTICS 33% 100M+ 900% # of repairable parts Avg. lines of code Growth in rate of repaired per claim since 2010 per vehicle vehicles scanned since 2017 CONNECTE
Slide 27: Long-term ADAS evolution will create new opportunities
L o n g - t e r m A D A S e v o l u t i o n w i l l c r e a t e n e w o p p o r t u n i t i e s ADAS-enabling the world’s vehicles …And accompanying rise in ADAS-driven will be multi-decade evolution… complexity will create new opportunities CLAIMS ADAS technology still developing, New solutions to
Slide 28: Strong long-term customer retention and growth
S t r o n g l o n g - t e r m c u s t o m e r r e t e n t i o n a n d g r o w t h Blue chip Sales growth index 2 70% customer base 10+ year insurance customers revenue from 10+ 1 year accounts 18 of top 20 Avg. revenue per long- term insurance customer insurers on platform (10+ years) has risen 80%
Slide 29: Proven ability to cross-sell solutions: repair facility examples
P r o v e n a b i l i t y t o c r o s s - s e l l s o l u t i o n s : R e p a i r f a c i l i t y e x a m p l e s Repair facility cross-selling has Example: Rapid adoption of CCC Engage risen significantly over time package throughout 2020 Share of repair customers by # of subscribed products 7% 4%
Slide 30: Multiple network effects strengthen the CCC platform
M u l t i p l e n e t w o r k e f f e c t s s t r e n g t h e n t h e C C C p l a t f o r m … and ecosystem expansion Insurer performance… … drives shop growth and efficiency… Higher customer sat Increased use of repair Real-time facility channel and performance parts sourcing Insurance Parts Repair
Slide 31: Case Study: Parts expansion
Dealer Count ORDER PARTS CONVERT TO REPAIR ORDER C a s e S t u d y : P a r t s e x p a n s i o n Convert to RO K Be io ysn to ic n e Auto Parts 1-800 Radiator Parts Channel ~10% of GMV now facilitated electronically, Delivers today Delivers tomorrow Delivers in 2 days Cancel Cancel A/M RT Headlamp a
Slide 32: Growth levers drive future performance
G r o w t h l e v e r s d r i v e f u t u r e p e r f o r m a n c e New Markets § New customer segments § Multi-line expansion New Solutions § Geographic expansion § M&A opportunities § Insurer innovation § Repair facility innovation Upsell § Ecosystem innovation § Cross-sell existing § M&A opportun
Slide 33: Financial Overview
F I N A N C I A L O V E R V I E W ©2021 Information Services Inc. All rights reserved. 33F I N A N C I A L O V E R V I E W ©2021 Information Services Inc. All rights reserved. 33
Slide 34: Financial highlights
F i n a n c i a l h i g h l i g h t s 1 1 • 20+ consecutive years of adjusted revenue growth Consistent growth • Benefiting from strong network effect and expansion into new products at scale and accelerating • Proven ability to cross-sell solutions 2 2 Highly predictable, recurring • 96% recurring
Slide 35: Annual recurring software business model
A n n u a l r e c u r r i n g s o f t w a r e b u s i n e s s m o d e l 1 1 Recurring Software / SaaS Other 96% 4% 2 2 2020 Revenue 2020 Revenue Recurring Mostly Subscription Trans- Trans- actional actional Average Contracts: 3-5 Year Deals 1. See Recurring Software and Other Revenue definitions in
Slide 36: Historical revenue and margin performance
H i s t o r i c a l r e v e n u e a n d m a r g i n p e r f o r m a n c e 1 2 Adjusted Revenue Adjusted EBITDA (US $ in millions) (US $ in millions) 570 170 +10% 518 +13% 148 462 419 124 119 384 104 3 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Annual Organic Adj. EBITDA 7% 9% 10% 12% 10% 27%
Slide 37: 2020 financial performance
2 0 2 0 f i n a n c i a l p e r f o r m a n c e 1 2 Adjusted Revenue Adjusted EBITDA (US $ in millions) (US $ in millions) +5% +19% 598 203 570 170 2019 2020 2019 2020 Adj. EBITDA 30% 34% Revenue growth through 2020 highlights resiliency of 3 Margin (%) recurring business model Double-digit adjusted
Slide 38: Adjusted Revenue forecast
1 2 0 2 1 A d j u s t e d R e v e n u e f o r e c a s t (US $ in millions) 20-30 675 5-10 5-10 10-15 30 598 1 2 3 4 5 2020 Annualized Signed not COVID Committed Net new 2021 Revenue existing yet live normalization not yet business Revenue revenue signed 1. Full year impact of revenue opportunities r
Slide 39: Adjusted EBITDA forecast
1 2 0 2 1 A d j u s t e d E B I T D A f o r e c a s t (US $ in millions) 60-65 242 203 (10-12) (8-10) (5-7) 1 2 3 4 2020 Incremental Discretionary Public Operating 2021 Adj. EBITDA Investment Spend Company Costs Leverage Adj. EBITDA Adj. EBITDA 34% 36% 2 Margin (%) 1. 1 Increased P&L investment larg
Slide 40: Long-term modeling guidance
L o n g - t e r m m o d e l i n g g u i d a n c e Long-term Targets 1 Organic Adjusted Revenue Growth 7-10% 1 Adjusted Gross Profit Margin 80% 2 Adjusted EBITDA Margin 45% Cap Ex as % of Revenue 4-7% Effective Tax Rate Mid 20s% Working Capital as % of Revenue Low single-digit consumption 1. Calculat
Slide 41: Transaction Overview
T R A N S A C T I O N O V E R V I E W ©2021 Information Services Inc. All rights reserved. 41T R A N S A C T I O N O V E R V I E W ©2021 Information Services Inc. All rights reserved. 41
Slide 42: Transaction summary
T r a n s a c t i o n s u m m a r y Transaction Overview Valuation ($mm) Enterprise Value ($mm) (1) § Fully distributed pro forma enterprise value of $7.0bn, or 29.1x CY21E Adj. EBITDA of Shares Outstanding (mm) 654.2 $242mm (x) Share Price $10.00 § Transaction to be funded by a combination of $692m
Slide 43: CCC has a unique combination of attributes relative to peers
C C C h a s a u n i q u e c o m b i n a t i o n o f a t t r i b u t e s r e l a t i v e t o p e e r s Insurtech Peers Vertical Software Peers Recurring Peer Average: 78% 1 2 Revenue % 96% 96% 88% 88% Market 86% 82% 81% 77% 76% 72% Leader 56% 54% Mission Critical Chariot_Guidance_Low GWRE DCT ADSK DS
Slide 44: Peer benchmarking – Operating metrics
P e e r b e n c h m a r k i n g – O p e r a t i n g m e t r i c s (US $ in millions) Insurtech Peers Vertical Software Peers 2021E Revenue Growth 17% Peer Average: 9% 14% 13% 12% 11% 9% 9% 9% 7% 7% 6% 2% Chariot_Guidance_Low DCT GWRE ADSK ANSS DSGX BSY NEM-DE SNPS CDNS VRSK TYL 1 $675 $263 $754 $4,2
Slide 45: Peer benchmarking – Valuation metrics
P e e r b e n c h m a r k i n g – V a l u a t i o n m e t r i c s 1 Insurtech Peers Vertical Software Peers EV / 2021E Adj. EBITDA Peer Average: 37.7x 47.2x 46.8x 44.2x 40.2x 35.5x 35.1x 34.1x 31.8x 29.1x 24.1x NM NM Chariot_Guidance_Low DCT GWRE TYL ADSK BSY ANSS NEM-DE CDNS DSGX SNPS VRSK 1 EV / 2
Slide 46: Peer benchmarking – Valuation metrics
P e e r b e n c h m a r k i n g – V a l u a t i o n m e t r i c s 1 Insurtech Peers Vertical Software Peers EV / 2021E Revenue Peer Average: 14.6x 23.5x 18.1x 16.4x 14.3x 14.2x 14.0x 13.8x 13.2x 11.8x 10.4x 10.5x 10.4x Chariot_Guidance_Low DCT GWRE ANSS ADSK BSY TYL DSGX CDNS VRSK NEM-DE SNPS 1 EV /
Slide 47: Powering Forward. Thank you.
P O W E R I N G F O R W A R D T h a n k y o u . ©2021 Information Services Inc. All rights reserved. ©2021 CCC Information Services Inc. All rights reserved. 47P O W E R I N G F O R W A R D T h a n k y o u . ©2021 Information Services Inc. All rights reserved. ©2021 CCC Information Services Inc. All
Slide 48: Appendix
A P P E N D I X ©2021 Information Services Inc. All rights reserved. 48A P P E N D I X ©2021 Information Services Inc. All rights reserved. 48
Slide 49: Reconciliation
R e c o n c i l i a t i o n (US $ in millions) 1 2015 2016 2017 2018 2019 2020 Total Revenue $ 430 $ 466 $ 5 07 $ 5 70 $ 616 $ 633 Product Divestment [1st Party Clinical - revenue] (46) ( 47) (45) (52) (46) (35) Adjusted Revenue - Non-GAAP $ 384 $ 419 $ 462 $ 5 18 $ 570 $ 598 Adjusted Revenue Growth
Slide 50: Reconciliation (continued)
R e c o n c i l i a t i o n ( c o n t i n u e d ) (US $ in millions) 1 2018 2019 2020 Adjusted Cost of Revenue Calculation: Cost of revenue - GAAP $ 2 13 $ 226 $ 208 (-) Product Divestment [1st Party Clinical] (39) (40) (31) (-) Amortization of Intangible Asset - Acquired Technology (28) (28) (26) (
Slide 51: Definitions
D e f i n i t i o n s Term Definition Calculated by dividing (a) annualized software revenue recorded in the last month of the measurement period for unique billing accounts that generated revenue during the corresponding month of the prior year by (b) Software annualized software revenue as of the
Slide 52: Consolidated balance sheets
C o n s o l i d a t e d b a l a n c e s h e e t s (US $ in millions) 2018 2019 ASSETS Current Assets: Cash and Cash Equivalents $ 57 $ 93 Accounts Receivable - Net of Allowances of $3,970 and $3,024 for 2019 and 2018, Respectively 59 64 Income Taxes Receivable 4 6 Deferred Contract Costs 2 13 Other
Slide 53: Consolidated statements of cash flows
C o n s o l i d a t e d s t a t e m e n t s o f c a s h f l o w s (US $ in millions) 2018 2019 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (55) $ (210) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization of software, equipment, and prope
CCC Information Services — SPAC Merger (February 2021) on 6ix