Usi Corporation · TWSE:1304
Usi — AIFA Conference 2005
26 slides from Usi's conference presentation, Mar 8, 2005
Slide 1: U.S.I. Holdings Corporation Investor Presentation March 2005
U.S.I. Holdings Investor March 2005 Presentation Corporation
Slide 2: About Forward-Looking Statements
About This Corporation, the competition future its All projected When although forward-looking these “Management’s qualify 1 business financial future plans, integration statements document plans, regulatory used Forward-Looking allnot objectives, operating costs, forward-looking in strategy; intent
Slide 3: USI Management Team
USIBowler Name David Jeff Bob Ed Ernest Robert Experience Team 2 Jones Senior Schneider has Position Eslick Newborn Nesbit worked Chief Senior Management with Chairman, Senior EVP Industry Marketing 200+ Senior together VP, &VP, Corporate acquisitions Chief VP, Experience President Team Human in Off
Slide 4: USI Profile
USI A 9th Leading National 78 500+ More Middle Approximately Predominantly Buying Broad Property 5 Demonstrated 52% (a) 3 broad Market Offices Source: largest Profile of sales than Product Market top decisions product Benefits Scale &Leader 60,000 in U.S. professionals July 400 casualty, 20 Cross-Se
Slide 5: Investment Highlights
Investment Achieve Consistent Diversified Proven, Focused Augment Target Management Substantial 5% 4 of USI atproactive annual strategy least growth organic fully Highlights % revenue directly of 10% cash diluted personal for with cross-selling growth of mix EBITDA earnings aligned prior accretive o
Slide 6: Diversified Revenue Mix and National Scale
Revenue Diversified Property Group Specialized Total National West Midwest Northeast Southwest Midatlantic Southeast USI Corporate *Pro 5 Offices forma Coast 2004 Employee Scale and Diversity 9% 37% 7% 15% Revenues Revenue 22% for Benefits 10% Casualty and Summit Benefits Local Services Mix =58% $40
Slide 7: Broad Array of Products and Services
BroadHealth Retail Property Fidelity Group Wealth Dental Health Estate Disability Life Business Alternative Annuities Workplace Core Voluntary Section Flexible Total Electronic Print Association Life, Professional Workers’ General Travel Personal Defined Related Employee 6 Benefits Communications Co
Slide 8: Sales Management Focus
Salesproducer Proactively Standardized Formalized Stewardship USI’s Continued Cross-Selling Increase Standard New 7 business Management passionate from technology focus, manage goal –weekly 20% production recruitment client setting client-centric training, of sales retention platform sales total and
Slide 9: Organic Growth Strategy
Organic Formal -20% -10% 0% 10% Increase P&C Exposure 8% Shifting Acquisition (-7%) Consistent SFA Actively Cross Proactively Superior “Best Lost 8 Target Current offor Business and Efforts” selling (-10%) current stewardship 100% Growth contracts penetration manage solutions benefits units and recr
Slide 10: Cross-Selling Strategy
Cross-Selling Single Strategy Definition Compensation Aggressive Benefits Improved Additional Cross-selling Reduced Product Increases Improves 9 distribution diversification acquisition Organic Client client of revenue local cross-sell is leverages perpetuates Strategy and aretention Retention manag
Slide 11: Proven Cross-Sell Account Matrix
Proven Cross-Sell Top Business Sold Account 10 15 business clients Strategy Name 1 Property Account Matrix or ranked Package and currently &2Opportunity Casualty Account byGL revenues being Umbrella Employee 3 Account provided Auto Benefits 4toAccount WC client Surety Retirement Proposed 5 Account H
Slide 12: Cross-Selling Success
Cross-Selling # Categories 3+ 2+ 15 10 7 4 Top 2002 400 173 66 25 Product 1 2 3 4+ Overall = 11of 39or 92% 96% 100% Increase 15 14 67 30 98% 58189 400 15 Product more 2003 15 13 78 36 Accounts Retention Category Accounts 400 207 =2004 Sold Decrease Success 2004 95% Retention
Slide 13: Stewardship and Retention
Stewardship Retention Overall Q1 12 2004retention =2004 Success 2003 87.4% accounts = (financial mid 91.0% Q2 2004 80s = impact) 88.6% Q3 2004 = 89.3% Q4 2004 = 90.4%
Slide 14: Operations and Margin Expansion Plan
Operations Organizational Proactive Flash CEO Executive Expenses Detailed Comprehensive Strict 13 Calls compliance Calls plans regional are Board –Summary – third first tracked are structure budgeting –with week week in oversight every place and policy of of in quarter compared and every to every pl
Slide 15: EBITDA Margin Improvement Targets
Margin 60% 54.1% 220 Eliminate Utilize Justification Mgmt House Small Leverage Benchmark Technology Consolidate Corporate Infrastructure Certain 19.0% 260 150 4.0% 6.8% 20.1% 630 14 Target Current bps 50% business and business 52.0% 16.0% 26.0% automation Expansion one-time Field Corporate EBITDA US
Slide 16: Disciplined Acquisition Strategy
Highly USI’s Disciplined Strong Current Fold-in Must Accretive Target Mix Use Minimum Passed 15 multiple ofmeet highly purchase management on cash, fragmented acquisitions geographic to 39 IRR financial Acquisition acquisition cash seller experienced techniques potential ofprice earnings 15% notes i
Slide 17: Due Diligence and Integration Process
Due Diligence Comprehensive Financial Operational Legal Human Detailed Business Investment Historical Cash Impact Immediate Plan Synergies Monitoring 16 in flow review on place resource presentation overview review clearly and USI and integration considerations and review atforecasted IRR and Income
Slide 18: Acquisitions 2003-2005
2003-2005 Agency Guild Hastings BMI O’Leary-Kientz Benefits Diversified Bertholon-Rowland Dodge, Future Benefit Patterson Summit Total = 17Meets DoesInsurance $166.5 Agency Planning Not Warren, Partners Revenue Global Team Tapley Smith Acquisitions Insurance $2.4 $1.9 $4.5 Partners & Associates $11.
Slide 19: Financial Overview
U.S.I Holdings Financial Overview Corporation
Slide 20: Total Revenues 4-Year CAGR
Total $ 500,000 4-Year 2001 (no 19in acquisitions) thousands 2002 Revenues CAGR: 400,000 20038.8% 2004 300,000 200,000 100,000 -
Slide 21: EBITDA 4-Year CAGR
$ in2004 EBITDA 100,000 4-Year 2001 (a) 20 thousands 2002 CAGR: 80,000 Excludes 200310.0% 60,000 2004 $12.4 (a) 40,000 million20,000 in Identified - 4th Quarter Expenses related to the Company’s margin improvement plan.
Slide 22: USI Summary Income Statement
USI ($ 2004 Total Operating EBITDA Non-Operating Before Income Amortization Net Common (a) 21 in 2004 Income Operating thousands) 2003 Revenues Income Tax (Loss) excludes 81,773 Share Expenses 2002 Adding (Loss) Expense 23,663 From Income Tax Expenses $407,198 (a) Year 73,132 $12.4 Adding $23,610 Pe
Slide 23: Reconciliation of Reported to Adjusted Results
Reconciliation On expenses ($3.9 approximately For Identified 2004 Reported (Dollars Revenues Compensation Other Stock-based EBITDA Amortization Depreciation Interest Early tax with Addback: Income amortization Weighted-Average Diluted 22 expense December the GAAP As million), extinguishment operati
Slide 24: Pro Forma Capitalization
($ thousands) Pro Actual Operating Term Debt: Seller Total Debt/LTM Leverage: Debt/Total (a) Patterson 23 Pro Forma Debt Stockholders’ Capitalization loan notes As Forma Smith. Adjusted Cash & 156,324 EBITDA Capitalization and revolver As As$2,886 other of Adjusted 246,066 Equity (a) December $483,8
Slide 25: The USI Story
The USI Consistency Revenue Sales Cross-selling Significant 28% Strong Growing Disciplined USI Motivated Aligned Over 24 story target 130 management Acquisition goals Story diversification high years isand Margin approach attractive ofand quality Focused Organic of combined strategies Opportunities
Slide 26: U.S.I. Holdings Corporation Investor Presentation March 2005
U.S.I. Holdings Investor March 2005 Presentation Corporation