Slide 1: Investor Presentation
a Investor Presentation Speakers: Mckeel Hagerty | Chief Executive Officer HAGERTY Patrick MeClymont | SVP & Chief Financial Officer
Slide 2: Forward-looking statements
This presentation contains statements that constitute “forward-looking statements” (vi) manage the cyclical nature of the insurance business, including through any within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- periods of recession, economic downturn or inflatio
Slide 3: Q1 2023 highlights and 2023 outlook
Total Revenue growth of 30% Written Premium growth of 18% Improved Profitability » Net Income (Loss) of $(15) million compared to $16 million in the prior year period due primarily to the $32 million change in fair value of the warrant liabilities » Adjusted EBITDA of $7 million, an improvement of $
Slide 4: Hagerty Marketplace is a top focus area in 2023
» Hagerty Marketplace is a top focus area in 2023 as we seek to provide an unmatched online and live Marketplace experience for consumers. » Our Marketplace is positioned as the trusted brand for auto enthusiasts, offering certification services, title and escrow, financing options and other high-va
Slide 5: State Farm partnership progress
» Digital and technology teams are progressing through the testing phase and regulatory approval process » Expect to begin activating State Farm’s approximately 19,200 agents to sell classic car policies in 2023 » 480,000+ existing collector car policies and up to 75% HDC enrollment possible on new
Slide 6: 2023 priorities: revenue growth and improved profitability
Total Revenue growth of 22-26% powered by Written Premium growth of 11-13% » Sustain double-digit Written Premium growth trajectory » Deliver an unmatched online and live Marketplace experience » Drive loyalty, referrals and incremental revenue and profit from Membership Continued evolution into an
Slide 7: Revenue and written premium growth
30% 18% 1 See Appendix for additional information regarding this non-GAAP measure.
Slide 8: Total Revenue Q1 2023 Highlights
Total Revenue Q1 2023 Highlights Q1 2023 Commission + fee revenue (+19%) » Written Premium growth 18% Millions Commission + fee revenue1 Membership, marketplace + other revenue » Policies in Force retention of 87.9% Earned premium in Hagerty Reinsurance Membership, marketplace + other revenue (+63%)
Slide 9: Q1 2023 Adjusted EBITDA
Q1 2023 Adjusted EBITDA IN THOUSANDS Q1 2023 Q1 2022 Millions Net Income (Loss) $(15,025) $15,866 $16 Interest and Other (Income) Expense (5,647) 684 Income Tax (Benefit) Expense 3,668 2,030 Depreciation and Amortization 13,743 7,147 Restructuring, Impairment and Related Charges, Net 5,535 — Change
Slide 10: 2023 Outlook
2023 Outlook 2022 Results vs 2023 Outlook in thousands 2022 Results Low End Range High End Range Low End Range High End Range Total Revenue $787,588 $961,000 $993,000 22% 26% Total Written Premium $776,664 $862,000 $878,000 11% 13% Net Income (Loss) $2,403 $(13,000) $7,000 $(15,403) $4,597 Adjusted
Slide 11: Appendix
APPENDIX
Slide 12: Total Written Premium and New Business Count seasonality
Total Written Premium New Business Count (Insurance) 250 90 80 200 70 60 150 50 100 40 30 50 20 10 0 0 $ IN Q1 Q2 Q3 Q4 Total THOUSANDS Q1 Q2 Q3 Q4 Total 2018 32,610 56,729 51,795 35,356 176,490 2018 82,514 137,943 123,385 86,621 430,463 2019 36,848 62,842 57,426 37,585 194,701 2019 96,732 158,501 1
Slide 13: 1.3 million Paid Members (+6%)
1.3 million Paid Members (+6%) Paid Membership Counts Guest User Counts U.S. Q1 2022 Q1 2023 Q1 2022 Q1 2023 Insurance Member 447,473 475,425 U.S. 1,139,099 1,228,161 Insurance + HDC 640,239 674,897 Canada 74,526 80,358 HDC Standalone 29,271 32,850 8% growth Total Guest User Count 1,213,625 1,308,51
Slide 14: Adjusted EBITDA reconciliation Q1
IN THOUSANDS Q1 2023 Q1 2022 Net Income (Loss) ($15,025) $15,866 Interest and Other (Income) Expense (5,647) 684 Income Tax (Benefit) Expense 3,668 2,030 Depreciation and Amortization 13,743 7,147 Restructuring, Impairment and Related Charges, Net 5,535 — Change in Fair Value of Warrant Liabilities
Slide 15: Adjusted earnings per share reconciliation
IN THOUSANDS EXCEPT FOR PER SHARE AMOUNTS Q1 2023 Q1 2022 Net Income (Loss) attributable to controlling interest 1 ($2,099) $27,507 Net Income (Loss) attributable to non-controlling interest (12,926) (11,641) Consolidated Net Income (Loss) ($15,025) $15,866 Change in Fair Value of Warrant Liabilitie
Slide 16: 2023 Adjusted EBITDA outlook reconciliation
IN THOUSANDS 2023 Low 2023 High Net Income (Loss) ($13,000) $7,000 Interest and Other (Income) Expense (10,750) (10,750) Income Tax (Benefit) Expense 14,300 14,300 Depreciation and Amortization 41,700 41,700 Restructuring, Impairment and Related Charges, Net 5,535 5,535 Change in Fair Value of Warra
Slide 17: Never Stop Driving
Never Stop Driving HAGERTY