Innovate Corp. · NYSE:VATE

Innovate — HC2 Holdings — Investor Presentation (January 2017)

27 slides from Innovate's investor presentation, Jan 26, 2017

  1. Slide 1: HC2 Holdings, Inc. Investor Presentation

    HC2 HOLDINGS, INC. © HC2 Holdings, Inc. 2017 Investor Presentation January 26, 2017

  2. Slide 2: Who We Are / What We Do

    © 2 0 1 7 H C 2 H OL D I NGS , I NC. HC2 Holdings, Inc. 9 Wh o We Are Wh at We Do  Di v e r s i f i e d h o l d i n g c omp a n y  P e rma n e n t c a p i t a l  S t r a t e g i c a n d f i n a n c i a l p a r t n e r  T e am o f v i s i o n a r i e s  B u y a n d b u i l d c omp a n i e s  E

  3. Slide 3: HC2 Value Philosophy

    © 2017 HC2 HOLDINGS, INC. Clear focus on delivering sustainable value for all stakeholders Value operator with long-term outlook Acquire controlling equity interests in diverse industries creating value through growth in operating subsidiaries Strong capital base allows funding of subsidiary grow

  4. Slide 4: HC2 Company Snapshot

    © 2 0 1 7 H C 2 H OL D I NGS , I NC. HC2 Company Snapshot 11 Early Stage and Other Holdings Core Operating Subsidiaries  One of the largest steel fabrication and erection companies in the U.S.  Recently changed name to DBM Global Inc.  Offers full suite of integrated steel construction and profes

  5. Slide 5: Overview of Investments

    Overview of Investments

  6. Slide 6: DBM Global Inc. (Schuff Intl.) – Company Snapshot

    © 2017 HC2 HOLDINGS, INC. Select Customers: DBM Global Inc. (Schuff Intl.) – Company Snapshot 14 DBM Global Inc. is focused on delivering world class, sustainable value to its clients through a highly collaborative portfolio of companies which provide better designs, more efficient construction and

  7. Slide 7: DBM Global core activities, products and services

    © 2017 HC2 HOLDINGS, INC. CORE ACTIVITIES The largest structural steel fabricator and erector in the U.S. In-house structural & design engineering expertise Provides structural steel fabrication & erection services for smaller projects leveraging subcontractors and in-house project managers Manu

  8. Slide 8: DBM Global Historical Financial Summary

    © 2017 HC2 HOLDINGS, INC. $526.1 $513.8 $506.0 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 PF 2014 2015 LTM 9/30/16 DBM Global Historical Financial Summary 16 Revenue(1) Adj. EBITDA(1) Free Cash Flow(1) (2) Backlog(1) $45.8 $52.0 $53.8 8.7% 10.1% 10.6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% $

  9. Slide 9: Global Marine Systems (GMSL) – Company Snapshot

    © 2017 HC2 HOLDINGS, INC. Global Marine Systems (GMSL) – Company Snapshot 17 A leading provider of offshore marine engineering for subsea cable installation, maintenance and cable protection requirements Seeks to position itself as a key player driving convergence of its maintenance services acros

  10. Slide 10: Global Marine Systems (GMSL) – Company Snapshot

    © 2017 HC2 HOLDINGS, INC. Global Marine Systems (GMSL) – Company Snapshot 18 TELECOM MAINTENANCE TELECOM INSTALLATION OFFSHORE POWER OIL & GAS CORE ACTIVITIES Provision of vessels on standby to repair fiber optic telecom cables in defined geographic zones Location of fault, cable recovery, jointin

  11. Slide 11: Global Marine Historical Financial Summary

    © 2017 HC2 HOLDINGS, INC. Global Marine Historical Financial Summary 19 $50.0 $42.1 $37.0 29.8% 31.2% 25.5% 0% 10% 20% 30% 40% 50% 60% $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 PF 2014 2015 LTM 9/30/16 Adj. EBITDA Adj. EBITDA Margin $3.3 $4.8 $4.4 $5.9 $5.5 $3.3 $10.7 $9.9 $0.0 $5.0 $10.0 $15.0 $20.0

  12. Slide 12: American Natural Gas – Company Snapshot

    © 2017 HC2 HOLDINGS, INC. American Natural Gas – Company Snapshot 20 Designs, builds, owns, operates and maintains compressed natural gas commercial fueling stations for transportation Current HC2 ownership 49.9% with ability to increase to 63% In-depth experience in the natural gas fueling indust

  13. Slide 13: PTGi International Carrier Services

    © 2017 HC2 HOLDINGS, INC. PTGi International Carrier Services (“PTGi ICS”) 21 Leading international wholesale telecom service company providing voice and data call termination to the telecom industry worldwide Provides transit and termination of telephone calls through its own global network of nex

  14. Slide 14: Continental Insurance Group – Company Snapshot

    © 2017 HC2 HOLDINGS, INC. Continental Insurance Group – Company Snapshot 22 Continental Insurance Group (“CIG”) provides long-term care, life and annuity coverage that help protect policy and certificate holders from the financial hardships associated with illness, injury, loss of life, or income co

  15. Slide 15: Pansend Life Sciences

    © 2017 HC2 HOLDINGS, INC. Pansend Life Sciences 23 HC2’s Life Sciences Segment Is Focused on the Development of Innovative Healthcare Technologies and Products 80% equity ownership of company focused on immunotherapy; Oncolytic virotherapy for treatment of solid cancer tumors Founded by Dr. Matthe

  16. Slide 16: Financial Overview

    Financial Overview

  17. Slide 17: Historical Consolidated Revenue and Adj. EBITDA

    © 2017 HC2 HOLDINGS, INC. Historical Consolidated Revenue and Adj. EBITDA 25 ($USD millions) Core Operating Revenue(1) $162.0 $460.4 $701.0 $526.1 $513.8 $506.0 $167.8 $134.9 $145.3 $2.5 $6.8 $6.5 $858.4 $1,115.8 $1,358.8 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 PF 2014 2015 LTM 9/30/16 PTGi ICS

  18. Slide 18: Free Cash Flow Generation

    © 2017 HC2 HOLDINGS, INC. Free Cash Flow Generation 26 ($USD millions) 1.Free Cash Flow defined as Adjusted EBITDA less Maintenance Capital Expenditures. LTM 9/30/16Core Operating Adj. EBITDA$97.8Less: Non-Operating Corporate Adj. EBITDA$22.0Less: DBM Global Maintenance Capex8.2 Less: GMSL Maintenan

  19. Slide 19: Appendix

    Appendix

  20. Slide 20: Subsidiary Capitalization

    © 2 0 1 7 H C 2 H OL D I NGS , I NC. Subsidiary Capitalization 28 ($USD millions) DBM Capitalization GMSL Capitalization 1. Line of credit balance of $1.9 million was attributable to a DBM subsidiary joint venture, which was exited subsequent to September 30, 2016. Revolving Credit Facility ($50 mil

  21. Slide 21: LTM 9/30/16 Adjusted EBITDA Reconciliation

    © 2017 HC2 HOLDINGS, INC. LTM 9/30/16 Adjusted EBITDA Reconciliation 29 ($USD thousands) 1.Adjusted EBITDA is not calculated for our Insurance segment, but included for purposes of reconciling to the consolidated Net income (loss) attributable to HC2 Holdings, Inc. Note: Last Twelve Months’ (“LTM”)

  22. Slide 22: Adjusted EBITDA Reconciliation – Nine Months Ended 9/30/16

    © 2 0 1 7 H C 2 H OL D I NGS , I NC. 9 Months Ended 9/30/16 Adjusted EBITDA Reconciliation 30 ($USD thousands) Nine Months Ended September 30, 2016 Other and Non-operating HC2 Holdings DBM Global GMSL PTGi ICS ANG Pansend Eliminations Corporate Ex Insurance Insurance HC2 Holdings Net Income (loss) a

  23. Slide 23: Adjusted EBITDA Reconciliation – Nine Months Ended 9/30/15

    © 2 0 1 7 H C 2 H OL D I NGS , I NC. 9 Months Ended 9/30/15 Adjusted EBITDA Reconciliation 31 ($USD thousands) Nine Months Ended September 30, 2015 Other and Non-operating HC2 Holdings DBM Global GMSL PTGi ICS ANG Pansend Eliminations Corporate Ex Insurance Insurance HC2 Holdings Net Income (loss) a

  24. Slide 24: 2015 Adjusted EBITDA Reconciliation

    © 2 0 1 7 H C 2 H OL D I NGS , I NC. 2015 Adjusted EBITDA Reconciliation 32 ($USD thousands) Fiscal Year Ended December 31, 2015 Other and Non-operating HC2 Holdings DBM Global GMSL PTGi ICS ANG Pansend Eliminations Corporate Ex Insurance Insurance HC2 Holdings Net Income (loss) attributable to HC2

  25. Slide 25: 2014 Adjusted EBITDA Reconciliation

    © 2017 HC2 HOLDINGS, INC. 2014 Adjusted EBITDA Reconciliation 33 ($USD thousands) 1.DBM Global includes financials pro forma for the 5 months ended May 26, 2014, prior to our acquisition of a controlling interest. 2.GMSL includes financials pro forma for the period ended September 22, 2014, prior to

  26. Slide 26: LTM 9/30/16 Net Revenue Reconciliation

    © 2017 HC2 HOLDINGS, INC. LTM 9/30/16 Net Revenue Reconciliation 34 ($USD millions) Twelve Months Ended December 31,Nine Months Ended September 30,Nine Months Ended September 30,Latest Twelve Months Ended September 30,2015201520162016Net revenue by segment:DBM Global$513.8$380.8$373.0$506.0Global Ma

  27. Slide 27: HC2 Holdings, Inc. Contact

    HC2 HOLDINGS, INC. © HC2 Holdings, Inc. 2017 A n d r e w G . B a c k m a n • i r @ h c 2 . c o m • 2 1 2 . 2 3 5 . 2 6 9 1 • 4 5 0 P a r k A v e n u e , 3 0 t h F l o o r , N e w Y o r k , N Y 1 0 0 2 2 January 26, 2017

HC2 Holdings — Investor Presentation (January 2017) on 6ix