FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported): March 14, 2018
HC2 HOLDINGS, INC.
Delaware | 001-35210 | 54-1708481 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
450 Park Avenue, 30th Floor | ||
New York, NY 10022 | ||
(Address of principal executive offices) | ||
(212) 235-2690 | ||
(Registrant’s telephone number, including area code) | ||
Not Applicable | ||
(Former name or former address, if changed since last report.) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company | ☐ | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
Item 7.01 Regulation FD Disclosure
On March 14, 2018, HC2 Holdings, Inc. (the “Company”) posted an updated Company Overview presentation to the Investor Relations section of the Company’s website at http://www.hc2.com, a copy of which is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information set forth in (and incorporated by reference into) this Item 7.01, including Exhibit 99.1 hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that Section. The information in this Item 7.01, including Exhibit 99.1 hereto, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Item No. | Description |
99.1 | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HC2 Holdings, Inc. | ||
March 14, 2018 | By: | /s/ Michael J. Sena |
Name: Michael J. Sena | ||
Title: Chief Financial Officer | ||
HC2 HOLDINGS, INC.
© HC2 Holdings, Inc. 2018
Corporate Overview
March 2018
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Special Note Regarding Forward-Looking Statements
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 actions, events, results, strategies and
expectations and are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,” “projects,” “may,” “will,”
“could,” “might,” or “continues” or similar expressions. The forward-looking statements in this press release include without limitation our 2018 guidance for the
Construction and Marine Services segments and statements regarding our expectation regarding building shareholder value and future cash and invested assets. Such
statements are based on the beliefs and assumptions of HC2's management and the management of HC2's subsidiaries and portfolio companies. The Company
believes these judgments are reasonable, but you should understand that these statements are not guarantees of performance or results, and the Company’s actual
results could differ materially from those expressed or implied in the forward-looking statements due to a variety of important factors, both positive and negative, that
may be revised or supplemented in subsequent reports on Forms 10-K, 10-Q and 8-K. Such important factors include, without limitation, issues related to the restatement
of our financial statements; the fact that we have historically identified material weaknesses in our internal control over financial reporting, and any inability to
remediate future material weaknesses; capital market conditions; the ability of HC2's subsidiaries and portfolio companies to generate sufficient net income and cash
flows to make upstream cash distributions; volatility in the trading price of HC2 common stock; the ability of HC2 and its subsidiaries and portfolio companies to identify
any suitable future acquisition opportunities; our ability to realize efficiencies, cost savings, income and margin improvements, growth, economies of scale and other
anticipated benefits of strategic transactions; difficulties related to the integration of financial reporting of acquired or target businesses; difficulties completing pending
and future acquisitions and dispositions; effects of litigation, indemnification claims, and other contingent liabilities; changes in regulations and tax laws; and risks that
may affect the performance of the operating subsidiaries and portfolio companies of HC2. Although HC2 believes its expectations and assumptions regarding its future
operating performance are reasonable, there can be no assurance that the expectations reflected herein will be achieved. These risks and other important factors
discussed under the caption “Risk Factors” in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), and our other
reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release.
You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to HC2 or persons acting on its behalf are expressly
qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and unless legally required, HC2 undertakes no
obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Safe Harbor Disclaimers
1
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Non-GAAP Financial Measures
Adjusted EBITDA
In this presentation, HC2 refers to certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”),
including Core Operating Subsidiary Adjusted EBITDA, Total Adjusted EBITDA (excluding the Insurance segment) and Adjusted EBITDA for its operating segments.
Management believes that Adjusted EBITDA measures provide investors with meaningful information for gaining an understanding of the Company’s results as it is
frequently used by the financial community to provide insight into an organization’s operating trends and facilitates comparisons between peer companies, because
interest, taxes, depreciation, amortization and the other items for which adjustments are made as noted in the definition of Adjusted EBITDA below can differ greatly
between organizations as a result of differing capital structures and tax strategies. In addition, management uses Adjusted EBITDA measures in evaluating certain of the
Company’s segments performance because they eliminate the effects of considerable amounts of non-cash depreciation and amortization and items not within the
control of the Company’s operations managers. While management believes that these non-GAAP measurements are useful as supplemental information, such
adjusted results are not intended to replace our GAAP financial results and should be read together with HC2’s results reported under GAAP.
Management defines Adjusted EBITDA as net income (loss) adjusted to exclude the impact of depreciation and amortization; amortization of equity method fair value
adjustments at acquisition; (gain) loss on sale or disposal of assets; lease termination costs; asset impairment expense; interest expense; net gain (loss) on contingent
consideration; loss on early extinguishment or restructuring of debt; other (income) expense, net; foreign currency transaction (gain) loss included in cost of revenue;
income tax (benefit) expense; (gain) loss from discontinued operations; noncontrolling interest; bonus to be settled in equity; share-based compensation expense; non-
recurring items; and acquisition costs. A reconciliation of Adjusted EBITDA to Net Income (Loss) is included in the financial tables at the end of this presentation.
Management recognizes that using Adjusted EBITDA as a performance measure has inherent limitations as an analytical tool as compared to net income (loss) or other
GAAP financial measures, as these non-GAAP measures exclude certain items, including items that are recurring in nature, which may be meaningful to investors. As a
result of the exclusions, Adjusted EBITDA should not be considered in isolation and do not purport to be alternatives to net income (loss) or other GAAP financial
measures or a measure of our operating performance.
Adjusted Operating Income
Insurance Adjusted Operating Income for the Insurance segment ("Insurance AOI") is a non-U.S. GAAP financial measure frequently used throughout the insurance
industry and is an economic measure the Insurance segment uses to evaluate its financial performance. Management believes that Insurance AOI measures provide
investors with meaningful information for gaining an understanding of certain results and provides insight into an organization’s operating trends and facilitates
comparisons between peer companies. However, Insurance AOI has certain limitations and we may not calculate it the same as other companies in our industry. It
should therefore be read together with the Company's results calculated in accordance with U.S. GAAP. Similarly to Adjusted EBITDA, using Insurance AOI as a
performance measure has inherent limitations as an analytical tool as compared to income (loss) from operations or other U.S. GAAP financial measures, as this non-U.S.
GAAP measure excludes certain items, including items that are recurring in nature, which may be meaningful to investors. As a result of the exclusions, Insurance AOI
should not be considered in isolation and does not purport to be an alternative to income (loss) from operations or other U.S. GAAP financial measures as a measure of
our operating performance. Management defines Insurance AOI as Net income (loss) for the Insurance segment adjusted to exclude the impact of net investment
gains (losses), including OTTI losses recognized in operations; asset impairment; intercompany elimination; non-recurring items; and acquisition costs. Management
believes that Insurance AOI provides a meaningful financial metric that helps investors understand certain results and profitability. While these adjustments are an
integral part of the overall performance of the Insurance segment, market conditions impacting these items can overshadow the underlying performance of the
business. Accordingly, we believe using a measure which excludes their impact is effective in analyzing the trends of our operations.
By accepting this document, each recipient agrees to and acknowledges the foregoing terms and conditions.
Safe Harbor Disclaimers
2
Company Overview
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
HC2 Holdings, Inc. (NYSE: HCHC)
4
Who We Are
What We Do
P ub l i c l y t r a d e d d i v e r s i f i e d h o l d i n g
c o m p a n y w i t h p o r t f o l i o o f un c o r r e l a t e d
a s s e t s a n d i n v e s t m e n t s
P e r m a 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 a m 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 ies
Pa r tn e r w i th op e r at in g ma n a g emen t
te a ms to e x e cute b u s ines s p l a n s
De l i v e r s u s ta i nab l e v a l ue f o r
s h a reh o lders
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Why Invest in the HC2 Approach?
5
Diverse portfolio of uncorrelated assets and investments across multiple industries
Unique combination of operating entities accessible through one investment
– Controlling stakes in leading, stable, cash flow generating businesses
– Option value opportunities with significant equity upside potential
Active management methodology to creating shareholder value by driving asset and
capital appreciation of subsidiary and investment holdings
– Long-term strategy allows management teams the ability to execute business plans
Continue to drive organic and inorganic growth; Increasing “Core Operating
Subsidiary” Revenue and Adjusted EBITDA
Well-positioned with financial flexibility to opportunistically capitalize and build
platform in both public and private markets
– Rigorous commitment to realize synergies and optimize resources
– Approach focused on control / implied control of acquisitions & investments
Continued focus on both cash flow and growth opportunities provides shareholders
with a unique balance of stability and option value
Look to not only create, but ultimately extract and monetize value where
and when necessary *
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
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 growth
Speed of execution gives HC2 a competitive advantage over traditional private equity firms
Env i s ion
Execute Empower
– Seek to build value over the long-term
– Leadership team’s expansive network results in
unique deal flow
– Target a barbell investment strategy
• Stable cash flow generation
• Early-stage companies with option value
E n v i s i o n
– Partner with experienced management
teams
– Establish specific operating objectives
and clear growth plans
– Provide financial expertise
– Help execute strategy
E m p o w e r M a n a g e m e nt
– Focus on speed of execution
– Capitalize on opportunities to
create, extract and monetize value
– Realize synergies and optimize
resources
– Deliver sustainable value
E x e c u t e
How HC2 Builds Value
6
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
HC2’s Diversified Portfolio
7
Early Stage and Other Holdings
Life Sciences: PANSEND
MediBeacon: Unique non-invasive real-time monitoring of kidney function
R2 Dermatology: Medical device to brighten skin based on Mass. General Hospital technology
BeneVir: Oncolytic viral immunotherapy for treatment of solid cancer tumors
Genovel: Novel, Patented, “Mini Knee” and “Anatomical Knee” replacements
Triple Ring Technologies: R&D engineering company specializing in medical devices,
homeland security, imaging, sensors, optics, fluidics, robotics & mobile healthcare
All data as of December 31, 2017 unless otherwise noted
Construction formerly Manufacturing; Energy formerly Utilities
HC2 Broadcasting Holdings
Capitalizing on Over-The-Air
broadcast opportunities
704Games (Formerly DMR)
Owns worldwide exclusive
licensing rights to NASCAR®
simulation style racing titles
Other:
Core Operating Subsidiaries
One of the largest steel
fabrication and erection
companies in the U.S.
Offers full suite of integrated
steel construction and
professional services
92.5% ownership
FY17 Revenue: $579.0m
FY17 Adjusted EBITDA: $51.6m
Construction:
DBM GLOBAL (SCHUFF)
Leading provider of subsea
cable installation,
maintenance and protection
in telecom, offshore power
and oil & gas
JV’s with Huawei Marine
Networks & S.B. Submarine
Systems (China Telecom)
72.7% ownership
FY17 Revenue: $169.5m
FY17 Adjusted EBITDA: $44.0m
Marine Services:
GMSL
Premier distributor of natural
gas motor fuel throughout the
U.S.
Currently own or operate
44 natural gas fueling stations
throughout United States
67.7% ownership
FY17 Revenue: $16.4m
FY17 Adjusted EBITDA: $2.9m
Energy:
ANG
Telecom:
PTGI ICS
One of the largest
International wholesale
telecom service companies
Global sales presence
Internal and scalable
offshore back office
operations
100% ownership
FY17 Revenue: $701.9m
FY17 Adjusted EBITDA: $6.9m
Core Financial
Services Subsidiaries
Platform to invest in long-term
care (LTC) portfolio of assets
Initially acquired American
Financial Group’s LTC assets
Pending acquisition of
Humana’s $2.3b LTC assets
100% ownership
~$74.7m of statutory surplus
~$86.4m total adjusted capital
~$2.1b total GAAP assets
~$1.5b cash & invested assets
Insurance:
CIG
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
HC2’s Experienced Executive Team
8
Chief Accounting Officer
of HRG (NYSE: HRG)
Various accounting and
financial reporting
positions with Reader’s
Digest Association, Inc.,
last serving as Vice
President and North
American Controller
Director of Reporting
and Business Processes
for Barr Pharmaceuticals
Various positions with
PricewaterhouseCoopers
Certified Public
Accountant and holds a
BS in Accounting from
Syracuse University
Michael J. Sena
Chief Financial Officer
Executive Vice President
on the sales and trading
desk at Jefferies
Managing Director on
High Yield sales desk at
Prudential Securities
MBA from the University
of Southern California
after playing professional
baseball
BS in Electrical
Engineering University of
Virginia
Paul K. Voigt
Senior Managing
Director – Investments
General Counsel of
Prospect Administration
LLC
Assistant Secretary of
PSEC and Deputy Chief
Compliance Officer of
Prospect Capital
Management, L.P.
Corporate associate at
the law firms of Boies,
Schiller & Flexner LLP and
Sullivan & Cromwell LLP
Graduated cum laude
from Princeton University
AB from The Woodrow
Wilson School of Public
and International Affairs
JD with honors from The
Law School at The
University of Chicago
Joseph A. Ferraro
Chief Legal Officer &
Corporate Secretary
Over 17 years of diverse
HR, recruiting, equity and
foreign exchange sales
experience
SVP and Director of HR of
Harbinger Capital and
HRG
Head of Recruiting at
Knight Capital Group
Held various positions in
Human Resources, as
well as Foreign Exchange
Sales at Cantor
Fitzgerald after
beginning career in
Equity Sales at Merrill
Lynch
BA degree in
Communications and
Studio Art from Marist
College
Suzi Raftery Herbst
Chief Administrative
Officer
Managing Director of IR &
PR for RCS / AR Capital
Founder and CEO of
InVisionIR, a New York-based
advisory and consulting firm
SVP, IR & Marketing of iStar
Financial
SVP, IR & Marketing of Corvis
Corp. / Broadwing
Communications
First 10 years of career at
Lucent Technologies and
AT&T Corp. in various
finance/accounting/M&A
positions
BA in Economics from Boston
College; Graduated from
AT&T / Lucent’s prestigious
Financial Leadership
Program
Andrew G. Backman
Managing Director –
Investor & Public Relations
Director of HC2 since January 2014 and Chairman of the Board, Chief Executive Officer
and President of HC2 since May 2014
Director, Chairman of the Board and Chief Executive Officer of HRG Group Inc.
(July 2009 - December 2014)
President of HRG (July 2009 - June 2011)
Founder, CIO and CEO of Harbinger Capital Partners, LLC
Managed High Yield and Distressed trading operations for Barclays Capital (1998 – 2000)
A.B. in Economics from Harvard University
Philip A. Falcone – Chairman of the Board, Chief Executive Officer and President
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
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HC2 Stock Performance & Timeline
9 Note: As a result of the Schuff Tender, HC2’s ownership increased to 89% and subsequently through open market share purchases increased to 92%
5/29/2014
HC2 Acquires
Schuff (65%)
HC2 Acquires
Global Marine (97%)
9/22/2014
HC2 Announces
Results of Schuff
Tender Offer
10/7/2014
$250M Senior
Secured
Notes
Offering
11/20/2014
NYSE MKT Listing
Announced
12/23/2014
HC2 Forms Continental
Insurance Group
4/14/2015
$50M Tack-On to
Senior Secured Notes
3/23/2015
HC2 Acquires
Interest in Gaming
Nation
6/10/2015
HC2 closes LTC and Life Insurance
Acquisition
12/24/2015
Global Marine Acquires
Majority Interest in CWind
2/3/2016
R2 Dermatology
Receives FDA Approval
10/5/2016
Company
Renamed "HC2"
4/14/2014
HRG Group
Acquires Majority
Interest in "PTGi“
1/8/2014
8/01/2014
HC2 Initial Investment
in ANG
MediBeacon
Awarded Gates
Foundation grant
10/18/2016
MediBeacon Completes
Pilot Two Testing
3/2/2017
ANG Adds 18 CNG
Stations Through
Two Transactions
12/15/2016
BeneVir Granted New Oncolytic Immunotherapy
Patent
4/15/2017
$59M Equity Offering
11/9/2015
HC2 Announces Acquisition of Majority
Interest in DTV America
6/27/2017
Continental General Insurance Announces Acquisition of Humana
LTC Business
11/6/17
$38M Tack-On
Senior Secured Notes
6/27/2017
R2 Dermatology Receives 2nd FDA Approval
7/12/17
Transfer Listing to NYSE
5/16/2017
$55M Tack-On
Senior Secured
Notes
1/31/2017
HC2 Announces Purchase of
Assets of Mako Communications
9/13/2017
2017 2016 2015 2014
HC2 acquires Azteca
America
11/29/17
2018
Segment Detail
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
DBM Global Inc.
11
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 superior asset management solutions
The Company offers integrated steel construction services from a single source and
professional services which include design-assist, design-build, engineering, BIM
participation, 3D steel modeling/detailing, fabrication, advanced field erection, project
management and state-of-the-art steel management systems
Major market segments include commercial, healthcare, convention centers, stadiums,
gaming and hospitality, mixed use and retail, industrial, public works, bridges, transportation
and international projects
Business Description:
Rustin Roach – President and CEO
Michael Hill – CFO and Treasurer
Scott Sherman – VP, General Counsel
Shane Metzger - COO
Select Management:
Select Customers:
DC United
L.A. Rams
Sacramento Kings
Apple
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
DBM Global Inc.
12
Core Activities Products & Service Offerings Industries Served
The largest structural steel fabricator and
erector in the U.S.
In-house structural & design engineering
expertise
Assets of Mountain States Steel became part of
Schuff Steel (4Q17)
Mountain States Steel has a modern fabrication
facility located on approximately 32 acres in
Lindon, Utah.
Structural Steel fabrication
Steel erection services
Structural engineering & design services
Preconstruction engineering services
BIM (Building Information Modeling)
Project Mgmt (proprietary SIMS platform)
Extensive track record delivering structural steel
for iconic projects throughout the Western
United States: San Francisco-Oakland Bay
Bridge, Alameda Corridor Transportation
Authority Bridge, Mile High Stadium, Paris Hotel
& Casino in Las Vegas, etc.
Commercial
Conv. & Event
Centers
Energy
Government
Healthcare
Bridge
Infrastructure
Leisure
Industrial & Mining
Infrastructure
Leisure
Retail
Transportation
Provides structural steel fabrication & erection
services for smaller projects leveraging
subcontractors and in-house project managers
Structural Steel fabrication (subcontracted)
Steel erection services (subcontracted)
Project Mgmt (proprietary SIMS platform)
Commercial
Government
Healthcare
Leisure
Retail
Transportation
Manufactures equipment for use in the
petrochemical oil & gas industries, such as:
pollution control scrubbers, tunnel liners,
pressure vessels, strainers, filters & separators
Design engineering
Fabrication services
Petrochemical
Oil & gas infrastructure
Pipelines
A highly experienced global Detailing and 3D
BIM Modelling company
Steel Detailing
3D BIM Modelling
BIM Management
Integrated Project Delivery (IPD)
3D Animation and Visualization
Commercial
Conv. & Event Ctrs
Energy
Government
Healthcare
Industrial & Mining
Infrastructure
Leisure
Retail
Transportation
A global Building Information Modelling (BIM),
Steel Detailing and Rebar Detailing firm
Steel Detailing
Rebar Detailing
3D BIM Modelling
Connection Design
Forensic Modelling & Animation
Commercial
Conv. & Event Ctrs
Energy
Government
Healthcare
Industrial & Mining
Infrastructure
Leisure
Retail
Transportation
The premiere Bridge and Complex Structures
Detailing and Building Information Modelling
(BIM) firm in N.A.
Bridge Detailing
Steel Detailing
3D BIM Modelling
Connection Design
Bridge
Commercial
Conv. & Event Ctrs
Energy
Government
Infrastructure
© 2 0 1 8 H C 2 H O L D I N G S , I N C . 13
“Engineering a Clean and Connected Future”
Leading provider of offshore marine engineering delivered via three business units
Founded in 1850 - Headquartered in UK with major regional hub in Singapore and an
established European base in Germany
Global Marine Group - Business Description:
Select Customers:
Fiber optic cable solutions to the
telecommunications and oil & gas markets
Installed roughly 21% of the world's subsea
fiber optic cable, amounting to 300,000km
In maintenance, Global Marine benefits
from long-term contracts with high renewal
rates; Responsible for 385,000km of the total
1,200,000km of global in-service cable
Significant opportunities in Telecom through
49% owned strategic joint ventures with
Huawei Technologies (HMN) and China
Telecom (SBSS)
Global Marine Highlights:
Power cable and asset management
services to the offshore renewables and
utilities market
Recognised for power cable repair solutions
and the ability to mobilise quickly to
minimise system downtime
CWind delivers a broad spectrum of topside
and subsea services to developers and has
experience at over 40 wind farms to date
CWind is strongly differentiated as the only
integrated service provider
CWind is recognized for having the most
fuel efficient Crew Transport Vessel (CTV)
fleet in the market
CWind Highlights:
Trenching and power cable lay services to
the oil & gas industry
To date, the Global Offshore team has been
involved in the installation of more than 470
power cables
Market-leading Q1400 trenching system
effective in the harshest of seas and most
challenging of seabed conditions
Completed work on five UK and two
European wind farms to date
Multiple operations in oil & gas for major oil
companies such as Shell and BP
Global Offshore Highlights:
Dick Fagerstal – Executive Chairman
Ian Douglas – Chief Executive Officer
Select Management:
© 2 0 1 8 H C 2 H O L D I N G S , I N C . 14
C
o
re
A
cti
v
it
ie
s
Maintenance
Provision of vessels on standby to repair fiber optic
telecom cables in defined geographic zones
Location of fault, cable recovery, jointing and
re-deployment of cables
Operation of depots storing cable and spare parts
across the globe
Management of customer data through the life of the
cable system
Wind Farm
Offshore wind planning, construction and
operations & maintenance support services
Fleet of Crew Transfer Vessels (CTVs) which have
a historically high utilisation and are positioned 4th
in the overall CTV market
Over 250 certified & experienced personnel
including technicians, riggers, slingers, lifting
supervisors & foremen
Offshore training facility
Trenching
Trenching of cables, rigid & flexible pipelines
and umbilicals
Precision installation in challenging seabed
environments utilizing the market-leading
Q1400 which able to perform jet trenching in
soils of up to 100KPA
Providing maximum, long-term protection of
assets
Engineering support & project management
Fiber Optic Cable Installation
Provision of turnkey repeated telecom systems via
Huawei Marine (“HMN”) joint-venture
Installation contracts for telecom customers
Services include route planning, route survey, cable
mapping, route engineering, laying, trenching and
burial at all depths
Fiber optic communications infrastructure to offshore
platforms
Permanent Reservoir Monitoring (“PRM”) systems
Power Cable Installation & Repair
Installation for inter-array power cables for
offshore wind market
Maintenance provision, including cable storage,
power joint development and vessel availability
Offshore wind planning, Interconnector
installation
Services include route planning, route survey,
cable mapping, route engineering, laying,
trenching and burial at all depths
Power Cable Installation
Planning, installation, burial, storage, testing,
locating, recovering and maintaining subsea
cables and other subsea assets
Modern assets including the Global
Symphony and the Q1400 trenching system
Approximately 400 m² of available space aft
of the cable lay spread, allowing space for
up to ten 20 foot containers of cable
protection system
470 power cables installed to date
Ve
ss
el
s
Cable Retriever
Pacific Guardian
Wave Sentinel
Cable Innovator
C.S. Sovereign
CS Recorder
Networker
Global Symphony
16 owned Crew Transfer Vessels in CWind Fleet
C.S. Sovereign
CS Recorder
Global Symphony
Global Symphony
Joi
n
t
Vent
u
re
s
Sino British Submarine Systems in Asia (SBSS); Joint
venture (49%) with China Telecom
Huawei Marine; Joint venture (49%) with Huawei
Technologies
International Cableship Pte Ltd (“ICPL”)
Joint venture (30%) with SingTel and ASEAN Cableship
SCDPL; Joint venture (40%) with SingTel
National Wind Farm Training Centers (100%)
Sino British Submarine Systems in Asia; Joint
venture (49%) with China Telecom
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
American Natural Gas
15
Designs, builds, owns, operates and maintains compressed natural gas commercial fueling stations for transportation
Building a premier nationwide network of publically accessible heavy duty CNG fueling stations throughout the
United States designed and located to serve fleet customers
– Completed the integration & upgrade of 18 fueling stations; 44 stations owned or operated nationwide
– Expect to expand station footprint via organic and select M&A opportunities
Founded in 2011, with headquarters in Saratoga Springs, New York
Business Description:
American transportation sector is rapidly
converting from foreign-dependent
diesel fuel to clean burning natural gas:
– Dramatically reduces emissions
– Extends truck life
– Significantly reduces fuel cost
Given the cost effectiveness of CNG, its
environmental friendliness and the abundance of
natural gas reserves in the United States, CNG is
the best candidate for alternatives to gasoline
and diesel for the motor vehicle market
Why CNG?: “Fueling the Future”
Currently 44 stations owned or operated in 15 states across the United States*
Drew West – Founder and Chief Executive Officer
Select Management:
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
PTGi International Carrier Services (“PTGi ICS”)
16
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 next-generation IP soft switches
and media gateways, connecting the networks of incumbent telephone companies, mobile operators and OTT
companies worldwide
Restructured in 2014, PTGi ICS now delivers industry leading technology via best of breed sales and operational
support teams
– 4Q17: Eleventh consecutive quarter of positive Adjusted EBITDA
– 4Q17: Sixth consecutive quarter of cash dividend to HC2
In business since 1997, recognized as a trusted business partner globally
Headquartered in Herndon, Virginia with representation across North America, South America, the Middle East and
Europe
Business Description:
Craig Denson – Chief Executive Officer
Select Management:
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Continental Insurance Group
17
The formation of Continental Insurance Group (“CIG”) in April 2015 to invest in the long-term care and life insurance
sector is consistent with HC2’s overall strategy of taking advantage of dislocated and undervalued operating
businesses
Through CIG, HC2 intends to build an attractive platform of insurance businesses
In December 2015, HC2 completed the acquisition of American Financial Group’s long-term care and life insurance
businesses, United Teacher Associates Insurance Company and Continental General Insurance Company
Key measures as of December 31, 2017:
– Statutory Surplus ~$74.7 million / Total Adjusted Capital ~$86.4 million
– GAAP Assets of ~$2.1 billion / Cash and Invested Assets ~$1.5 billion
Business Description:
James P. Corcoran – Executive Chair
– James has extensive experience in the insurance industry on both the corporate and regulatory side as the former
Superintendent of Insurance of the State of New York
Select Management:
Signed Definitive Agreement to Acquire Humana’s Long-Term Care Insurance Business *
Total Statutory Capital ~$150 million; ~$2.3 billion of cash and invested assets as of September 30, 2017
Immediately accretive to Continental’s Risk Based Capital ratio and Statutory Capital
Once completed, Continental will have approximately $3.5 billion in cash and invested assets
All data as of December 31, 2017 unless otherwise noted
* Humana acquisition expected to close by 3Q18
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Pansend
18 All data as of December 31, 2017 unless otherwise noted
HC2’s Pansend 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. Matthew Mulvey & Dr. Ian Mohr (who co-developed T-Vec); Biovex (owner of T-Vec) acquired
by Amgen for ~$1billion
Benevir’s T-Stealth is a second generation oncolytic virus with new features and new intellectual property
BeneVir holds exclusive worldwide license to develop BV-2711 (T-Stealth)
Granted new patent entitled “Oncolytic Herpes Simplex Virus and Therapeutic Uses Thereof”, covering the composition of
matter for Stealth-1H, BeneVir’s lead oncolytic immunotherapy, as well as other platform assets (2Q17)
74% equity ownership of dermatology company focused on lightening and brightening skin
Founded by Pansend in partnership with Mass. General Hospital and inventors Dr. Rox Anderson,
Dieter Manstein and Dr. Henry Chan
Over $20 billion global market
Received Food and Drug Administration approval for the R2 Dermal Cooling System (4Q16)
Received Food and Drug Administration approval for second generation R2 Dermal Cooling System (2Q17)
80% equity ownership in company with unique knee replacements based on technology from Dr. Peter Walker, NYU Dept.
of Orthopedic Surgery and one of the pioneers of the original Total Knee.
“Mini-Knee” for early osteoarthritis of the knee; “Anatomical Knee” – A Novel Total Knee Replacement
Strong patent portfolio
50% equity ownership in company with unique technology and device for monitoring of real-time kidney function
Current standard diagnostic tests measure kidney function are often inaccurate and not real-time
MediBeacon’s Optical Renal Function Monitor will be first and only, non-invasive system to enable real-time, direct monitoring
of renal function at point-of-care
$3.5 billion potential market
Successfully completed a key clinical study of its unique, real-time kidney monitoring system on subjects with impaired kidney
function at Washington University in St. Louis. (1Q17)
Profitable technology and product development company
Areas of expertise include medical devices, homeland security, imaging systems, sensors, optics, fluidics, robotics and mobile
healthcare
Located in Silicon Valley and Boston area with over 90,000 square feet of working laboratory and incubator space
Contract R&D market growing rapidly
Customers include Fortune 500 companies and start-ups
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
704Games
(Formerly Dusenberry Martin Racing (DMi, Inc.))
19
Owns worldwide exclusive licensing rights to NASCAR® simulation style racing titles on interactive
entertainment platforms
– Owns all the code, artwork and animation previously
developed for legacy games
– License also extends to NASCAR® racetracks and
all the leading NASCAR® race teams and drivers
– Since inception, 704Games developed an all-new NASCAR® racing simulation game, NASCAR® Heat
Evolution, for PlayStations 4, Xbox One and PC, as well as NASCAR-themed mobile trivia and slots games
In April 2016, DMR secured $8.0m in additional equity growth capital from consortium of new investors
including superstar drivers Joey Logano and Brad Keselowski
– NASCAR® Heat Evolution successfully released September 2016
– NASCAR® Heat Evolution announced 2017 Team Update available February 2017
Team & Roster Updates, New Drivers, New Paint Schemes, 2017 NASCAR® Schedule, etc.
– DMR Re-brands to 704Games – Appoints racing industry veteran
Paul Brooks as CEO and Brad Keselowski to Board of Directors
(March 2017)
– NASCAR® Heat Mobile game released (May 2017)
– NASCAR® Heat 2 released (September 2017)
Headquartered in Charlotte, NC in NASCAR® Headquarters
building (NASCAR® Plaza)
Business Description:
All data as of December 31, 2017 unless otherwise noted
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
HC2 Broadcasting Holdings Inc.
20
Operational Stations: 135
– Full-Power Stations: 4
– Class A Stations: 34
– LPTV Stations: 97
Silent Licenses & Construction Permits: 476
U.S. Markets: >110
Total Footprint, Excluding Construction
Permits, Covers Approximately 60% of the
U.S. Population**
Broadcast Television Stations: Key Metrics*
HC2 Broadcasting Holdings Inc., a subsidiary of HC2 Holdings, has
strategically acquired broadcast assets across the United States
HC2’s broadcast vision is to capitalize on the opportunities to bring
valuable content to more viewers over-the-air and position the company
for a changing media landscape
Business Description:
Select Management:
Kurt Hanson – Chief Technology Officer,
HC2 Broadcasting Holdings
Louis Libin – Managing Director, Strategy,
HC2 Broadcasting Holdings
Les Levi – Business Development,
HC2 Broadcasting Holdings
Manuel Abud – President and CEO,
Azteca America
*As of 2/23/2018 (includes transactions pending approval at the US FCC)
** Based on 2010 population data
Fourth Quarter & Year End 2017
Highlights & Select Financial Data
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
($m) FY 2017 Q4 2017 Q3 2017 Q2 2017 Q1 2017 FY 2016
Adjusted
EBITDA
Core Operating Subsidiaries
Construction $51.6 $15.1 $16.8 $11.1 $8.6 $59.9
Marine Services 44.0 15.3 8.8 3.6 16.3 41.2
Energy 2.9 0.4 0.3 1.0 1.2 2.5
Telecom 6.9 1.6 1.5 2.2 1.7 5.6
Total Core Operating $105.5 $32.4 $27.3 $17.9 $27.8 $109.1
Early Stage and Other Holdings
Life Sciences ($22.4) ($5.2) ($8.2) ($4.9) ($4.1) ($12.0)
Other (3.1) 1.3 (1.1) (2.2) (1.2) (11.2)
Total Early Stage and Other ($25.5) ($3.9) ($9.3) ($7.1) ($5.2) ($23.2)
Non-Operating Corporate ($29.2) ($8.7) ($8.3) ($6.3) ($5.9) ($25.7)
Total HC2 (excluding Insurance) $50.8 $19.7 $9.8 $4.6 $16.7 $60.2
Adjusted
Operating
Income
Core Financial Services
Insurance $8.0 $2.6 $3.7 $2.6 ($1.0) ($15.9)
Segment Financial Summary
22
All data as of December 31, 2017
Construction formerly Manufacturing; Energy formerly Utilities.
Note: Reconciliations of Adjusted EBITDA and Adjusted Operating Income to U.S. GAAP Net Income in appendix. Table may not foot due to rounding. Adjusted Operating Income for Q1 2016 was adjusted to
exclude certain intercompany eliminations to better reflect the results of the Insurance segment, and remain consistent with internally reported metrics. Additional details in appendix.
Adjusted EBITDA for “Core Operating Subsidiaries” $105.5m for FY 2017
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Fourth Quarter and Full Year 2017 Highlights
23
Construction
$723 million record backlog provides significant visibility [~18 – 24 months]
$772 million backlog taking into consideration awarded, but not yet signed contracts
Continue to see opportunities in commercial sector totaling approximately $300m
Completed acquisitions of CanDraft VSI and Mountain States Steel to address compelling bridge market
Recently awarded first bridge infrastructure project following Mountain States acquisition
Distributed $9.5 million of dividend and tax share to HC2 in 4Q17; $28 million for FY17
Marine
Services
$445 million near record backlog
Strong FY17 joint venture and telecom maintenance
Completed acquisition of Fugro’s trenching and cable-laying business
Positioned well for tremendous long-term opportunities in rapidly growing global offshore power market
Continued to maintain three of six global contracted maintenance zone agreements (ACMA / SEAIOCMA / NAZ)
Upgraded fleet - C.S. Recorder (Telecom Install & Oil & Gas); C.S. Symphony (Offshore Power & Oil & Gas)
Energy
Signed first renewable natural gas supply agreement in 4Q17
Alternative Fuel Energy Tax Credit (“AFETC”) credit renewed for 2017; $3.0 million credit for FY17 to be
received in 2Q18
Completed integration & upgrade of 18 fueling stations; 44 stations owned or operated nationwide
HC2 equity ownership in ANG increased to 68% following conversion of a promissory note
Telecom
Continue focus on increasing margin, diversifying global customer base, delivering consistent EBITDA
New account representatives in Latin America, Eastern Europe and Russia
Distributed $2.0 million of dividend to HC2 in 4Q17; $8 million for FY17
Insurance
$7.1 million Net Income for FY17; $8.0 million Adjusted Operating Income for FY17
Announced acquisition of Humana’s ~$2.3 billion long-term care insurance business; Will increase
insurance investment platform to ~$3.5 billion of cash / invested assets once completed (~3Q18)
Pansend Very active discussions continue with strategic parties for multiple Pansend companies
Other
Primarily includes over-the-air broadcast television assets (HC2 Broadcasting Holdings), a console and
mobile video game publisher and other investments
HC2 Broadcasting Holdings Inc., entered into a $75 million bridge loan to primarily finance acquisitions in
the low power broadcast television distribution market; Subsequent to quarter end, increased bridge
loan by $27 million
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
HC2 Broadcasting Holdings Inc.
24
Operational Stations: 135
– Full-Power Stations: 4
– Class A Stations: 34
– LPTV Stations: 97
Silent Licenses & Construction Permits: 476
U.S. Markets: >110
Total Footprint, Excluding Construction
Permits, Covers Approximately 60% of the
U.S. Population**
Broadcast Television Stations: Key Metrics*
HC2 Broadcasting Holdings Inc., a subsidiary of HC2 Holdings, has
strategically acquired broadcast assets across the United States
HC2’s broadcast vision is to capitalize on the opportunities to bring
valuable content to more viewers over-the-air and position the company
for a changing media landscape
Business Description:
Select Management:
Kurt Hanson – Chief Technology Officer,
HC2 Broadcasting Holdings
Louis Libin – Managing Director, Strategy,
HC2 Broadcasting Holdings
Les Levi – Business Development,
HC2 Broadcasting Holdings
Manuel Abud – President and CEO,
Azteca America
*As of 2/23/2018 (includes transactions pending approval at the US FCC)
** Based on 2010 population data
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Looking Ahead - 2018 Focus and Priorities
25
Optimization of HC2 Capital Structure
– Global refinancing of 11% Secured Notes to reduce cost of debt capital
– Continue to reduce cumulative outstanding of preferred equity
– Explore alternative financing structures at subsidiary level
– Explore alternative financing structures for broadcasting assets
Monetization / Value Creation Within Diverse HC2 Portfolio
Continued Focused Expansion of Over-The-Air Broadcast Television Strategy
– Expand market reach of nationwide network
– Valuable alternative distribution channel for content providers
– Improve and add content across acquired assets through strategic relationships
with content providers
Initiated 2018 Guidance for Construction & Marine Services
– DBM Global: Currently expect $60 million - $65 million of FY18 Adjusted EBITDA
– Global Marine: Currently expect $45 million - $50 million of FY18 Adjusted EBITDA
HC2 does not guarantee future results of any kind. Guidance is subject to risks and uncertainties, including, without limitation, those factors outlined in the “Forward Looking
Statements” of this presentation and the “Risk Factors” section of the company’s annual and quarterly reports filed with the Securities and Exchange Commission (SEC).
Appendix:
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
HC2’s Diversified Portfolio
27
Early Stage and Other Holdings
Life Sciences: PANSEND
MediBeacon: Completed “Pilot Two” Clinical Study at Washington University in St. Louis (1Q17)
R2 Dermatology: Received FDA Approval for second generation R2 Dermal Cooling System (2Q17)
BeneVir: Granted additional patent protecting oncolytic immunotherapy Stealth-1H & other assets (2Q17)
Genovel: Novel, Patented, “Mini Knee” and “Anatomical Knee” replacements
Triple Ring Technologies: R&D engineering company specializing in medical devices,
homeland security , imaging, sensors, optics, fluidics, robotics & mobile healthcare
All data as of December 31, 2017 unless otherwise noted
Construction formerly Manufacturing; Energy formerly Utilities
HC2 Broadcasting Holdings
Capitalizing on Over-The-Air
broadcast opportunities
704Games (Formerly DMR)
released NASCAR® Heat 2
September 12, 2017
Other:
Core Financial
Services Subsidiaries
~$74.7m of statutory surplus
~$86.4m total adjusted
capital
~$2.1b total GAAP assets
~$1.5b cash & invested
assets
Platform for growth through
additional M&A including
pending acquisition of
Humana’s
~$2.3b long-term care
portfolio
Insurance:
CIG
Core Operating Subsidiaries
FY17 Revenue: $579.0m
FY17 Adj. EBITDA: $51.6m
Backlog $723m; ~$772m
with contracts awarded,
but not yet signed; ~$300m
additional opportunities
Solid long-term pipeline
Awarded major contract for
new Los Angeles Rams and
Los Angeles Chargers
stadium
Construction:
DBM GLOBAL (SCHUFF)
FY17 Revenue: $169.5m
FY17 Adj. EBITDA: $44.0m
Strong full-year joint venture
performance, in particular
Huawei Marine
Solid long term telecom and
offshore power
maintenance & install
opportunities
Awarded 5-year SEAIOCMA
maintenance renewal
Marine Services:
GMSL
FY17 Revenue: $16.4m
FY17 Adj. EBITDA: $2.9m
Delivered 11,095,000
Gasoline Gallon Equivalents
(GGEs) in FY17 vs. 3,912,000
GGEs in FY16
44 stations currently owned
or operated vs. two stations
at time of HC2’s initial
investment in 3Q14
Energy:
ANG
Telecom:
PTGI ICS
FY17 Revenue: $701.9m
FY17Adj. EBITDA: $6.9m
Continued focus on higher
margin wholesale traffic mix
and improved operating
efficiencies
Sixth consecutive cash
dividend paid to HC2 in
4Q17; $8m paid for FY17
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Consolidated Financial Summary
28
($m) Q4 2017 Q4 2016 FY 2017 FY 2016
Statement of
Operations
(Selected Financial Data)
Total Net Revenue $458.5 $454.0 $1,634.1 $1,558.1
Total Operating Expenses $460.0 $449.0 $1,635.3 $1,559.5
Income Loss From Operations ($1.5) $5.0 ($1.1) ($1.4)
Interest Expense ($15.7) ($11.8) ($55.1) ($43.4)
Income From Equity Investees $5.2 $7.6 $17.8 $10.8
Income (loss) Before Taxes ($11.2) ($6.7) ($39.8) ($45.8)
Net Loss attributable to common
and participating preferred
($9.2) ($67.3) ($49.7) ($105.4)
Non-GAAP
Measures
Core Operating Adjusted EBITDA $32.4 $37.9 $105.5 $109.1
Total Adjusted EBITDA $19.7 $26.5 $50.8 $60.2
Insurance AOI $2.6 ($6.9) $8.0 ($15.9)
All data as of December 31, 2017 unless otherwise noted
Construction formerly Manufacturing; Energy formerly Utilities
Note: Reconciliations of Adjusted EBITDA and Adjusted Operating Income to U.S. GAAP Net Income in appendix. Table may not foot due to rounding. Adjusted Operating Income for Q1 2016 was adjusted to
exclude certain intercompany eliminations to better reflect the results of the Insurance segment, and remain consistent with internally reported metrics. Additional details in appendix.
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Construction: DBM Global Inc.
29
4Q17 Net Income: $9.2m; FY17 Net Income: $23.6m versus $28.0m in FY16
4Q17 Adjusted EBITDA: $15.1m; FY17 Adjusted EBITDA: $51.6m versus $59.9m in FY16
Record backlog of $723m at end of 4Q17, an increase of over 44% vs. $503m in year-ago quarter
– ~$772m taking into consideration awarded, but not yet signed contracts
– ~$300m incremental opportunities that could be awarded over next several quarters
Awarded major stadium construction contract for new Los Angeles Sports and Entertainment District – New home of the Los
Angeles Rams and Los Angeles Chargers
Recently completed “tuck-in” acquisitions of North American Operations of Candraft VSI and Mountain States Steel
to address compelling bridge market
Recently awarded first bridge infrastructure project post Mountain States acquisition
Distributed $9.5m and $28.0m of dividend and tax share to HC2 in 4Q17 and full year 2017, respectively
Fourth Quarter and Full Year Update
Continue to select profitable, strategic and “core competency” jobs, not all jobs
Solid long-term pipeline of prospective projects; No shortage of transactions to evaluate
Commercial / Stadium / Healthcare sectors remain strong, primarily in West region
Opportunities to add higher margin, value added services to overall product offering (e.g. BDS VirCon/PDC/Candraft)
Strategic Initiatives
Loma Linda Hospital
$45.8
$52.0
$59.9
$51.6
$526.1 $513.8 $502.7
$579.0
2014PF 2015A 2016A 2017A
Historical Performance
Adjusted EBITDA Revenue
All data as of December 31, 2017 unless otherwise noted
Construction formerly Manufacturing
10.1%
11.9%
8.7%
Los Angeles Rams Stadium
8.9%
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Marine Services: Global Marine Group
30
Joint Venture established in 1995 with China Telecom
China’s leading provider of submarine cable installation
Located in Shanghai and possesses a fleet of advanced purpose-built
cable ships
Currency Exchange: CNY:USD 1:0.129
All data as of December 31, 2017 unless otherwise noted
4Q17 Net Income: $6.2m; FY17 Net Income: $15.2m versus $17.4m in FY16
4Q17 Adjusted EBITDA: $15.3m; FY17 Adjusted EBITDA: $44.0m versus $41.2m in FY16
Near record Global Marine backlog of $445m at year-end 2017
Completed acquisition of Fugro’s trenching and cable laying business; Positioned well for tremendous long-term
opportunities in rapidly growing global offshore power market
Secured renewal of remaining two of its three long-term cable maintenance contracts; Continue to have three of six
global contracted maintenance zone agreements (ACMA / SEAIOCMA / NAZ)
Upgraded and revitalized fleet:
– C.S. Recorder (Telecom Installation for HMN and O&G); C.S. Symphony (Offshore Power and O&G)
Fourth Quarter and Full Year Update
Strategic Initiatives
Total HMN* 2017 2016 2015 2014
Revenue NA ~$207m ~$203m ~$88m
Profit NA ~$25m ~$14m ~$2m
Cash / Equivalents NA ~$48m ~$27m ~$16m
$50.0
$42.1 $41.2
$44.0
$163.6
$134.9
$161.9 $169.5
2014PF 2015A 2016A 2017A
Historical Performance
Adjusted EBITDA Revenue
Note: 2014 PF Adj. EBITDA inclusive of approx. $10m offshore power installation vs. minimal contribution in 2015 & 1H16 as a result of Prysmian agreement which expired in 4Q15
29.8%
31.2% 25.4%
49% ownership 49% ownership
26.0 %
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
4Q17 Net Income: $1.5m; FY17 Net (Loss): ($0.5)m versus Net Income $0.01m in FY16
4Q17 Adjusted EBITDA: $0.4m; FY17 Adjusted EBITDA: $2.9m versus $2.5m in FY16
Signed first renewable natural gas supply agreement in 4Q17
Alternative Fuel Energy Tax Credit (“AFETC”) credit renewed for 2017 - ~$3.0m credit for FY2017 to be recognized in 2Q18
Completed the integration & upgrade of 18 fueling stations throughout the U.S.
Delivered 11,095,000 Gasoline Gallon Equivalents (GGEs) for full year 2017 vs. 3,912,000 GGEs in 2016
44 stations currently owned or operated or under development vs. two stations at time of initial investments (3Q14)
HC2 equity ownership in ANG increased to 68% following conversion of a promissory note
Fourth Quarter and Full Year Update
-$0.4
$0.9
$2.5
$2.9
$1.8
$6.8 $6.4
$16.4
2014A 2015A 2016A 2017A
Historical Performance
Adjusted EBITDA
Revenue
Energy: American Natural Gas (ANG)
31
All data as of December 31, 2017 unless otherwise noted
Energy formerly Utilities
39.6%
12.8%
(14.1%)
17.7%
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Steady quarterly results again due to continued focus on higher margin wholesale traffic mix, smaller global
accounts, and improved operational efficiencies
– 4Q17 Net Income: $1.3m; FY17 Net Income: $6.2m versus $1.4m in FY16
– 4Q17 Adjusted EBITDA: $1.6m; FY17 Adjusted EBITDA: $6.9m versus $5.6m in FY16
– Sixth consecutive quarter of cash dividend to HC2
– $8.0m dividends distributed for the year-ended 2017
– New account representatives in Latin America, Eastern Europe and Russia
– Continued focus on increasing margin, diversifying global customer base, delivering consistent EBITDA
One of the key objectives: leverage the infrastructure and management expertise within PTGi-ICS
– Over 800+ wholesale interconnections globally provides HC2 the opportunity to leverage the existing cost effective
infrastructure by bolting on higher margin products and M&A opportunities
– A focused strategic initiative has been launched within PTGi-ICS to identify potential M&A opportunities
Fourth Quarter and Full Year Update
Telecommunications: PTGi-ICS
32
$(1.2)
$2.0
$5.6
$6.9
$162.0
$460.4
$735.0 $701.9
2014A 2015A 2016A 2017A
Historical Performance
Adjusted EBITDA
Revenue
All data as of December 31, 2017 unless otherwise noted
0.8%
0.4%
(0.1%)
1.0%
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Insurance: Continental Insurance Group
33
Note: Reconciliation of Adjusted Operating Income to U.S. GAAP Net Income in
appendix. All data as of December 31, 2017 unless otherwise noted
Continental Insurance Group serves as a platform for run-off Long Term Care (“LTC”) books of business
and for acquiring additional run-off LTC businesses
– 4Q17 Net Income: $3.4m; FY17 Net Income: $7.1m versus Net (Loss) $14.0m in FY16
– 4Q17 Adjusted Operating Income: $2.6m; FY17 Adjusted Operating Income $8.0m versus ($15.9m) in FY16
– ~$74.7m statutory surplus at end of fourth quarter
– ~$86.4m total adjusted capital at end of fourth quarter
– ~$2.1b in total GAAP assets at December 31, 2017
– ~$1.5b in cash and invested assets at December 31, 2017
Signed Definitive Agreement to Acquire Humana’s ~$2.3 Billion Long-Term Care Insurance Business
– Will significantly expand and leverage Continental’s insurance platform in Austin, Texas
– Once completed, Continental will have approximately $3.5 billion portfolio of cash and investable assets
– Immediately accretive to Continental’s RBC Ratio and Statutory Capital
– Opportunity to meaningfully increase investment portfolio yield
– Validates and endorses HC2’s insurance platform and strategy
– Expected to close by third quarter 2018
Fourth Quarter and Full Year Update
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Pansend
34
All data as of December 31, 2017 unless otherwise noted
HC2’s Pansend 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. Matthew Mulvey & Dr. Ian Mohr (who co-developed T-Vec); Biovex (owner of T-Vec) acquired
by Amgen for ~$1billion
Benevir’s T-Stealth is a second generation oncolytic virus with new features and new intellectual property
BeneVir holds exclusive worldwide license to develop BV-2711 (T-Stealth)
Granted new patent entitled “Oncolytic Herpes Simplex Virus and Therapeutic Uses Thereof”, covering the composition of
matter for Stealth-1H, BeneVir’s lead oncolytic immunotherapy, as well as other platform assets (2Q17)
74% equity ownership of dermatology company focused on lightening and brightening skin
Founded by Pansend in partnership with Mass. General Hospital and inventors Dr. Rox Anderson,
Dieter Manstein and Dr. Henry Chan
Over $20 billion global market
Received Food and Drug Administration approval for the R2 Dermal Cooling System (4Q16)
Received Food and Drug Administration approval for second generation R2 Dermal Cooling System (2Q17)
80% equity ownership in company with unique knee replacements based on technology from Dr. Peter Walker, NYU Dept.
of Orthopedic Surgery and one of the pioneers of the original Total Knee.
“Mini-Knee” for early osteoarthritis of the knee; “Anatomical Knee” – A Novel Total Knee Replacement
Strong patent portfolio
50% equity ownership in company with unique technology and device for monitoring of real-time kidney function
Current standard diagnostic tests measure kidney function are often inaccurate and not real-time
MediBeacon’s Optical Renal Function Monitor will be first and only, non-invasive system to enable real-time, direct monitoring
of renal function at point-of-care
$3.5 billion potential market
Successfully completed a key clinical study of its unique, real-time kidney monitoring system on subjects with impaired kidney
function at Washington University in St. Louis. (1Q17)
Profitable technology and product development company
Areas of expertise include medical devices, homeland security, imaging systems, sensors, optics, fluidics, robotics and mobile
healthcare
Located in Silicon Valley and Boston area with over 90,000 square feet of working laboratory and incubator space
Contract R&D market growing rapidly
Customers include Fortune 500 companies and start-ups
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Notable Financial and Other Updates
35
Collateral Coverage Ratio Exceeded 2.0x at Quarter End (4Q17)
$72.7 million in Consolidated Cash (excluding Insurance segment)
– $29.4 million Corporate Cash
$11.5 million Received in Dividends and Tax Share from DBM Global and PTGi ICS in 4Q17
$36.0 million Received in Dividends and Tax Share from DBM Global and PTGi ICS Full Year 2017
HC2 Broadcasting Holdings Inc., Entered into a $75 million Bridge Loan to Primarily Finance Acquisitions
Broadcast Television Distribution Market
Subsequent to quarter end, increased bridge loan by $27 million
2018 Key Priorities:
– Optimize HC2 capital structure
– Monetization / value creation within diverse HC2 portfolio
– Continued focused expansion of over-the-air television broadcast strategy
Initiated 2018 Guidance for Construction & Marine Services
– DBM Global: Currently expect $60 million - $65 million of FY18 Adjusted EBITDA
– Global Marine: Currently expect $45 million - $50 million of FY18 Adjusted EBITDA
All data as of December 31, 2017 unless otherwise noted
(1) Market capitalization on a fully diluted basis, excluding preferred equity, using a common stock price per share of $5.16 on March 13, 2018
(2) Cash and cash equivalents
(3) Enterprise Value is calculated by adding market capitalization, total preferred equity and total debt amounts, less Corporate cash
($m) Balance Sheet (at December 31, 2017)
Market Cap(1) $228.0
Preferred Equity $26.7
Total Debt $400.0
Corporate Cash(2) $29.4
Enterprise Value(3) $625.3
HC2 does not guarantee future results of any kind. Guidance is subject to risks and uncertainties, including, without limitation, those factors outlined in the “Forward Looking
Statements” of this presentation and the “Risk Factors” section of the company’s annual and quarterly reports filed with the Securities and Exchange Commission (SEC).
Reconciliations
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted EBITDA
Full Year Ended December 31, 2017
37
(in thousands)
Construction Marine Energy Telecom
Life
Sciences
Other &
Elimination
Net loss attributable to HC2 Holdings, Inc. (46,911)$
Less: Net Incom e attributable to HC2 Holdings Insurance segm ent 7,066
Net Income (loss) attributable to HC2 Holdings, Inc., excluding Insurance
Segment
23,624$ 15,173$ (516)$ 6,163$ (18,098)$ (18,005)$ (62,318)$ (53,977)$
Adjustments to reconcile net income (loss) to Adjusted EBITDA:
Depreciation and amortization 5,583 22,898 5,071 371 186 1,508 71 35,688
Depreciation and amortization (included in cost of revenue) 5,254 - - - - - - 5,254
Amortization of equity method fair value adjustment at acquisition - (1,594) - - - - - (1,594)
Asset impairment expense - - - - - 1,810 - 1,810
(Gain) loss on sale or disposal of assets 292 (3,500) 247 181 - - - (2,780)
Lease termination costs - 249 - 17 - - - 266
Interest expense 976 4,392 1,181 41 - 4,373 44,135 55,098
Net loss (gain) on contingent consideration - - - - - - (11,411) (11,411)
Other (income) expense, net (41) 2,683 1,488 149 (17) 6,541 (92) 10,711
Foreign currency (gain) loss (included in cost of revenue) - (79) - - - - - (79)
Income tax (benefit) expense 10,679 203 (4,243) 7 (820) (1,129) (10,185) (5,488)
Noncontrolling interest 1,941 260 (681) - (3,936) (1,164) - (3,580)
Bonus to be settled in equity - - - - - - 4,130 4,130
Share-base compensation expense - 1,527 364 - 319 279 2,754 5,243
Non-recurring items - - - - - - - -
Acquisition costs 3,280 1,815 - - - 2,648 3,764 11,507
Adjusted EBITDA 51,588$ 44,027$ 2,911$ 6,929$ (22,366)$ (3,139)$ (29,152)$ 50,798$
Total Core Operating Subsidiaries 105,455$
Non-
operating
Corporate
Total HC2
Year Ended December 31, 2017
Core Operating Subsidiaries Early Stage & Other
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted EBITDA
Full Year Ended December 31, 2016
38
(in thousands)
Year Ended December 31, 2016
Construction Marine Energy Telecom
Life
Sciences
Other &
Elimination
Net loss attributable to HC2 Holdings, Inc. (94,549)$
Less: Net loss attributable to HC2 Holdings Insurance segm ent (14,028)
Net Income (loss) attributable to HC2 Holdings, Inc., excluding Insurance
Segment
28,002$ 17,447$ 7$ 1,435$ (7,646)$ (24,800)$ (94,966)$ (80,521)$
Adjustments to reconcile net income (loss) to Adjusted EBITDA:
Depreciation and amortization 1,892 22,007 2,248 504 124 1,480 9 28,264
Depreciation and amortization (included in cost of revenue) 4,370 - - - - - - 4,370
Amortization of equity method fair value adjustment at acquisition - (1,371) - - - - - (1,371)
(Gain) loss on sale or disposal of assets 1,663 (9) - 708 - - - 2,362
Lease termination costs - - - 179 - - - 179
Interest expense 1,239 4,774 211 - - 1,164 35,987 43,375
Net loss (gain) on contingent consideration - (2,482) - - - - 11,411 8,929
Other (income) expense, net (163) (2,424) (8) (87) (3,213) 9,987 (1,277) 2,815
Foreign currency (gain) loss (included in cost of revenue) - (1,106) - - - - - (1,106)
Income tax (benefit) expense 18,727 1,394 (535) 2,803 1,558 3,250 11,245 38,442
Noncontrolling interest 1,834 974 (4) - (3,111) (2,575) - (2,882)
Bonus to be settled in equity - - - - - - 2,503 2,503
Share-base compensation expense - 1,682 597 - 251 273 5,545 8,348
Non-recurring items - - - - - - 1,513 1,513
Acquisition Costs 2,296 290 27 18 - - 2,312 4,943
Adjusted EBITDA 59,860$ 41,176$ 2,543$ 5,560$ (12,037)$ (11,221)$ (25,718)$ 60,163$
Total Core Operating Subsidiaries 109,139$
Core Operating Subsidiaries Early Stage & Other Non-
operating
Corporate
Total HC2
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted EBITDA
Three Months Ended December 31, 2017
39
(in thousands)
Construction Marine Energy Telecom
Life
Sciences
Other &
Elimination
Net loss attributable to HC2 Holdings, Inc. (8,537)$
Less: Net Incom e attributable to HC2 Holdings Insurance segm ent 3,383
Net Income (loss) attributable to HC2 Holdings, Inc., excluding Insurance
Segment
9,160$ 6,230$ 1,485$ 1,253$ (3,822)$ (8,218)$ (18,008)$ (11,920)$
Adjustments to reconcile net income (loss) to Adjusted EBITDA:
Depreciation and amortization 1,389 6,337 1,195 86 57 575 21 9,660
Depreciation and amortization (included in cost of revenue) 1,419 - - - - - - 1,419
Amortization of equity method fair value adjustment at acquisition - (371) - - - - - (371)
Asset impairment expense - - - - - - - -
(Gain) loss on sale or disposal of assets 199 - 208 181 - - - 588
Lease termination costs - - - 2 - - - 2
Interest expense 357 1,029 629 4 - 1,965 11,704 15,688
Net loss (gain) on contingent consideration - - - - - - (5,410) (5,410)
Other (income) expense, net 117 240 (164) 72 8 3,741 368 4,382
Foreign currency (gain) loss (included in cost of revenue) - 52 - - - - - 52
Income tax (benefit) expense 887 (36) (4,255) 7 (820) (1,129) (1,073) (6,419)
Noncontrolling interest 751 (121) 1,321 - (728) 1,502 - 2,725
Bonus to be settled in equity - - - - - - 2,780 2,780
Share-base compensation expense - 394 3 - 80 213 547 1,237
Non-recurring items - - - - - - - -
Acquisition costs 833 1,515 - - - 2,648 339 5,335
Adjusted EBITDA 15,112$ 15,269$ 422$ 1,605$ (5,225)$ 1,297$ (8,732)$ 19,748$
Total Core Operating Subsidiaries 32,408$
Three Months Ended December 31, 2017
Core Operating Subsidiaries Early Stage & Other Non-
operating
Corporate
Total HC2
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted EBITDA
Three Months Ended September 30, 2017
40
(in thousands)
Construction Marine Energy Telecom
Life
Sciences
Other &
Elimination
Net loss attributable to HC2 Holdings, Inc. (5,967)$
Less: Net Incom e attributable to HC2 Holdings Insurance segm ent 4,280
Net Income (loss) attributable to HC2 Holdings, Inc., excluding Insurance
Segment
7,082$ 844$ (939)$ 1,348$ (6,760)$ (600)$ (11,222)$ (10,247)$
Adjustments to reconcile net income (loss) to Adjusted EBITDA:
Depreciation and amortization 1,314 6,221 1,247 94 50 272 17 9,215
Depreciation and amortization (included in cost of revenue) 1,293 - - - - - - 1,293
Amortization of equity method fair value adjustment at acquisition - (573) - - - - - (573)
Asset impairment expense - - - - - - - -
(Gain) loss on sale or disposal of assets 486 - 25 - - - - 511
Lease termination costs - - - 15 - - - 15
Interest expense 238 1,021 262 14 - 1 11,686 13,222
Net loss (gain) on contingent consideration - - - - - - (6,320) (6,320)
Other (income) expense, net (165) 888 277 12 (10) (118) (718) 166
Foreign currency (gain) loss (included in cost of revenue) - (238) - - - - - (238)
Income tax (benefit) expense 4,481 (137) - - - - (4,746) (402)
Noncontrolling interest 558 43 (763) - (1,506) (689) - (2,357)
Bonus to be settled in equity - - - - - - 765 765
Share-base compensation expense - 394 179 - 71 19 718 1,381
Non-recurring items - - - - - - - -
Acquisition costs 1,501 300 - - - - 1,564 3,365
Adjusted EBITDA 16,788$ 8,763$ 288$ 1,483$ (8,155)$ (1,115)$ (8,256)$ 9,796$
Total Core Operating Subsidiaries 27,322$
Three Months Ended September 30, 2017
Core Operating Subsidiaries Early Stage & Other Non-
operating
Corporate
Total HC2
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted EBITDA
Three Months Ended June 30, 2017
41
(in thousands)
Construction Marine Energy Telecom
Life
Sciences
Other &
Elimination
Net loss attributable to HC2 Holdings, Inc. (17,911)$
Less: Net Incom e attributable to HC2 Holdings Insurance segm ent 164
Net Income (loss) attributable to HC2 Holdings, Inc., excluding Insurance
Segment
4,179$ (3,053)$ (365)$ 2,060$ (4,106)$ (3,757)$ (13,033)$ (18,075)$
Adjustments to reconcile net income (loss) to Adjusted EBITDA:
Depreciation and amortization 1,240 5,255 1,381 94 41 331 16 8,358
Depreciation and amortization (included in cost of revenue) 1,302 - - - - - - 1,302
Amortization of equity method fair value adjustment at acquisition - (325) - - - - - (325)
Asset impairment expense - - - - - 1,810 - 1,810
(Gain) loss on sale or disposal of assets (145) - 18 - - - - (127)
Lease termination costs - 55 - - - - - 55
Interest expense 174 1,040 154 14 - 16 10,675 12,073
Net loss (gain) on contingent consideration - - - - - - 88 88
Other (income) expense, net 28 490 255 (9) (11) 803 214 1,770
Foreign currency (gain) loss (included in cost of revenue) - 83 - - - - - 83
Income tax (benefit) expense 3,232 (134) (1) - - - (6,543) (3,446)
Noncontrolling interest 369 (156) (492) - (911) (1,372) - (2,562)
Bonus to be settled in equity - - - - - - 585 585
Share-base compensation expense - 394 91 - 76 18 527 1,106
Non-recurring items - - - - - - - -
Acquisition costs 701 - - - - - 1,168 1,869
Adjusted EBITDA 11,080$ 3,649$ 1,041$ 2,159$ (4,911)$ (2,151)$ (6,303)$ 4,564$
Total Core Operating Subsidiaries 17,929$
Three Months Ended June 30, 2017
Core Operating Subsidiaries Early Stage & Other Non-
operating
Corporate
Total HC2
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted EBITDA
Three Months Ended March 31, 2017
42
(in thousands)
Construction Marine Energy Telecom
Life
Sciences
Other &
Elimination
Net loss attributable to HC2 Holdings, Inc. (14,496)$
Less: Net loss attributable to HC2 Holdings Insurance segm ent (761)
Net Income (loss) attributable to HC2 Holdings, Inc., excluding Insurance
Segment
3,203$ 11,152$ (697)$ 1,502$ (3,410)$ (5,430)$ (20,055)$ (13,735)$
Adjustments to reconcile net income (loss) to Adjusted EBITDA:
Depreciation and amortization 1,640 5,085 1,248 97 38 330 16 8,454
Depreciation and amortization (included in cost of revenue) 1,240 - - - - - - 1,240
Amortization of equity method fair value adjustment at acquisition - (325) - - - - - (325)
Asset impairment expense - - - - - - - -
(Gain) loss on sale or disposal of assets (248) (3,500) (4) - - - - (3,752)
Lease termination costs - 194 - - - - - 194
Interest expense 207 1,302 136 9 - 2,391 10,070 14,115
Net loss (gain) on contingent consideration - - - - - - 231 231
Other (income) expense, net (21) 1,065 1,120 74 (4) 2,115 44 4,393
Foreign currency (gain) loss (included in cost of revenue) - 24 - - - - - 24
Income tax (benefit) expense 2,079 510 13 - - - 2,177 4,779
Noncontrolling interest 263 494 (747) - (791) (605) - (1,386)
Bonus to be settled in equity - - - - - - - -
Share-base compensation expense - 345 91 - 92 29 962 1,519
Non-recurring items - - - - - - - -
Acquisition costs 245 - - - - - 693 938
Adjusted EBITDA 8,608$ 16,346$ 1,160$ 1,682$ (4,075)$ (1,170)$ (5,862)$ 16,689$
Total Core Operating Subsidiaries 27,796$
Three Months Ended March 31, 2017
Core Operating Subsidiaries Early Stage & Other Non-
operating
Corporate
Total HC2
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted EBITDA
Three Months Ended December 31, 2016
43
(in thousands)
Construction Marine Energy Telecom
Life
Sciences
Other &
Elimination
Net loss attributable to HC2 Holdings, Inc. (61,464)$
Less: Net loss attributable to HC2 Holdings Insurance segm ent (2,050)
Net Income (loss) attributable to HC2 Holdings, Inc., excluding Insurance
Segment
7,292$ 8,667$ (61)$ (2,572)$ (4,655)$ (3,536)$ (64,549)$ (59,414)$
Adjustments to reconcile net income (loss) to Adjusted EBITDA:
Depreciation and amortization 629 5,214 769 115 37 430 5 7,199
Depreciation and amortization (included in cost of revenue) 1,322 - - - - - - 1,322
Amortization of equity method fair value adjustment at acquisition - (325) - - - - - (325)
(Gain) loss on sale or disposal of assets 2,626 1 - 708 - - - 3,335
Lease termination costs - - - - - - - -
Interest expense 322 1,091 69 - - 1,163 9,116 11,761
Net loss (gain) on contingent consideration - (2,482) - - - - 11,411 8,929
Other (income) expense, net (75) (1,234) 391 487 10 99 (966) (1,288)
Foreign currency (gain) loss (included in cost of revenue) - 864 - - - - - 864
Income tax (benefit) expense 6,086 2,150 (535) 2,803 1,558 3,250 32,726 48,038
Noncontrolling interest 594 464 (253) - (809) (513) - (517)
Bonus to be settled in equity - - - - - - 2,503 2,503
Share-base compensation expense - 375 490 - 67 35 712 1,679
Non-recurring items - - - - - - - -
Acquisition Costs 1,868 24 - - - - 490 2,382
Adjusted EBITDA 20,664$ 14,809$ 870$ 1,541$ (3,792)$ 928$ (8,552)$ 26,468$
Total Core Operating Subsidiaries 37,884$
Core Operating Subsidiaries Non-
operating
Corporate
Total HC2
Three Months Ended December 31, 2016
Early Stage & Other
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
Reconciliation of U.S. GAAP Net Income (Loss) to Insurance
Adjusted Operating Income
44
(in thousands)
Adjusted Op rating Income - Insurance ("Insurance AOI")
FY 2017 Q4 2017 Q3 2017 Q2 2017 Q1 2017 FY 2016 Q4 2016
Net Income (loss) - Insurance segment 7,066 3,381 4,282 164$ (761)$ (14,028)$ (2,050)$
Net realized and unrealized gains on inv estments (4,983) (2,129) (978) (1,095) (781) (5,019) (7,696)
Asset impairment 3,364 - - 2,842 522 2,400 2,400
Acquisition costs 2,535 1,377 422 736 - 714 445
Insurance AOI 7,982$ 2,629$ 3,726$ 2,647$ (1,020)$ (15,933)$ (6,901)$
Biographies
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
HC2 Executive Leadership Team
46
Philip A. Falcone Served as a director of HC2 since January 2014 and Chairman of the Board, Chief
Executive Officer and President of HC2 since May 2014
Served as a director, Chairman of the Board and Chief Executive Officer of HRG Group
Inc. (“HRG”) from July 2009 to December 2014
From July 2009 to June 2011, served as the President of HRG
Chief Investment Officer and Chief Executive Officer of Harbinger Capital Partners, LLC
(“Harbinger Capital”)
Before founding Harbinger Capital in 2001, managed the High Yield and Distressed
trading operations for Barclays Capital from 1998 to 2000
Received an A.B. in Economics from Harvard University
Chairman of the Board
Chief Executive Officer
President
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
HC2 Executive Leadership Team
47
Michael J. Sena Chief Financial Officer of HC2 since June 2015
Served as the Chief Accounting Officer of HRG from November 2012 to May 2015
From January 2009 to November 2012, held various accounting and financial reporting
positions with the Reader’s Digest Association, Inc., last serving as Vice President and
North American Controller
Served as Director of Reporting and Business Processes for Barr Pharmaceuticals from
July 2007 until January 2009
Held various positions with PricewaterhouseCoopers
Mr. Sena is a Certified Public Accountant and holds a Bachelor of Science in
Accounting from Syracuse University
Chief Financial Officer
Paul K. Voigt Senior Managing Director of HC2 since May 2014
Prior to joining HC2, served as Executive Vice President on the sales and trading desk at
Jefferies from 1996 to 2013
Served as Managing Director on the High Yield sales desk at Prudential Securities from
1988 to 1996
Mr. Voigt received an MBA from the University of Southern California in 1988 after
playing professional baseball. Graduated from the University of Virginia where he
received a Bachelor of Science in Electrical Engineering
Senior Managing Director
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
HC2 Executive Leadership Team
48
Joseph A. Ferraro Chief Legal Officer & Corporate Secretary of HC2 since September 2017
Served as General Counsel of Prospect Administration LLC, the administrator for
Prospect Capital Corporation (NASDAQ: PSEC) for nearly nine years prior to HC2
Served as Assistant Secretary of PSEC and Deputy Chief Compliance Officer of
Prospect Capital Management, L.P., and advised multiple Prospect-affiliated
registered investment companies, registered investment advisers and funds.
Served as corporate associate at the law firms of Boies, Schiller & Flexner LLP and
Sullivan & Cromwell LLP
Mr. Ferraro graduated cum laude from Princeton University with an A.B. from The
Woodrow Wilson School of Public and International Affairs, and graduated with honors
from The Law School at The University of Chicago
Chief Legal Officer &
Corporate Secretary
Andrew G. Backman Managing Director of Investor Relations & Public Relations of HC2 since April 2016
Prior to joining HC2, served as Managing Director of Investor Relations and Public
Relations for RCS Capital and AR Capital (now AR Global) from 2014 to 2016
Founder and Chief Executive Officer of InVisionIR, a New York-based advisory and
consulting firm from 2011 to 2014
Served as Senior Vice President, Investor Relations & Marketing of iStar Financial from
2004 to 2010
Served as Vice President, Investor Relations and Marketing Communications for Corvis
Corporation / Broadwing Communications from 2000 to 2004
Spent first 10 years of career at Lucent Technologies and AT&T Corp.
Mr. Backman earned a Bachelor of Arts degree in Economics from Boston College and
graduated from AT&T / Lucent Technologies’ prestigious Financial Leadership Program
Managing Director
© 2 0 1 8 H C 2 H O L D I N G S , I N C .
HC2 Executive Leadership Team
49
Suzi Raftery Herbst
Chief Administrative Officer of HC2 since March 2015 with over 17 years of diverse
human resources, recruiting, equity and foreign exchange sales experience
Prior to joining HC2, served as Senior Vice President and Director
of Human Resources of Harbinger Capital and HRG
Previously served as Head of Recruiting at Knight Capital Group
Previously held various positions in Human Resources, as well as Foreign Exchange Sales
at Cantor Fitzgerald after beginning her career in Equity Sales at Merrill Lynch
Ms. Herbst earned a Bachelor of Arts degree in Communications and Studio Art from
Marist College
Chief Administrative
Officer
HC2 HOLDINGS, INC.
© HC2 Holdings, Inc. 2018
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 March 2018