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Investor Presentation for company

Investor Presentation for company 26
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Kevin,Falkland Islands,Professional
Published Date:08-07-2017
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On-Demand Insurance Solutions INVESTOR PRESENTATION 1 Ebix Way Johns Creek GA 30097 Phone (678) 281 2020 DISCLAIMER This Investor Presentation has been prepared by Ebix, Inc. (“Ebix”) for investors, solely for informational purposes. The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company and the data set forth in this information. Ebix makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions from, this information or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company. This Information includes certain statements and estimates provided by the Company with respect to the projected future performance of the Company. Such statements, estimates and projections reflect various assumptions by management concerning possible anticipated results, which assumptions may or may not be correct. No representations are made as to the accuracy of such statements, estimates or projections. Prospective investors will be expected to have conducted their own due diligence investigation regarding these and all other matters pertinent to investment in the Company. This presentation may contain statements that are not historical facts, referred to as “forward looking statements.” The corporation’s actual future results may differ materially from those suggested by such statements, depending on various factors including those described in filings made with the SEC. EXECUTIVE SUMMARY AND GROWTH PLATFORM EBIX MISSION Ebix goal is to be the largest insurance software services player in the world. CONVERGENCE The company’s technology vision is to focus on convergence of all insurance channels, processes and entities in a manner that data can seamlessly flow once a data entry has been made. The company intends to do that by designing products and services that are pioneering and at least a few years ahead of its competition. The company believes that profitability and revenue growth must go hand in hand. With no competitors who can match the completeness of its vision or its distinct advantages, Ebix is ideally positioned to seize an enormous “green field” opportunity. Continually cited for the high quality of its offering, Ebix has built an outstanding reputation among a large, impressive customer base. With a strong recurring, Software as a Service model, Ebix is positioned to be a leading player in the Global insurance software industry ABOUT EBIX Founded in 1976 Ebix, Inc. is listed on the NASDAQ Global Market & is a part of the Russell 2000 Index, Standard & Poor's Small Cap 600 GICS Application Software Sub-Industry Index and Dow Jones Internet Services Index and Dow Jones Internet Composite Index. A leading international supplier of On-Demand software and E-commerce services to the insurance, financial, e-governance and healthcare industries, Ebix, Inc. provides end-to-end on-Demand solutions ranging from infrastructure exchanges, front end & back end enterprise systems, outsourced administrative & custom software development solutions, and risk compliance solutions for various entities involved in these industries. Run by an Indian Entrepreneur Robin Raina who serves as Chairman of the Board, president & CEO of the company since 2001, the Company has 11 offices in India since 2001 with an employee base of approximately 2,000 staff members. India serves as the design and intellectual center of the Company’s operations since 2001. The Company has also made deep inroads in the charity sector in India through its CSR initiatives across the length and breadth of the country. (please see enclosed profile of Ebix CEO Robin Raina). With 40+ offices across Brazil, Singapore, Australia, the US, UK, New Zealand, India and Canada, and a market capitalization of approximately 2 Billion, Ebix powers multiple exchanges across the world in the field of life, finance, health and property & casualty insurance while conducting in excess of 100 billion in insurance premiums annually on its platforms. Through its various SaaS-based software platforms, Ebix employs hundreds of insurance and technology professionals to provide products, support and consultancy to thousands of customers on six continents. For more information, visit the Company's website at Ebix provides end to end solutions ranging from infrastructure exchanges, carrier systems, agency systems and Risk Compliance services to custom software development for all entities involved in the insurance and financial industries. The Company’s technology vision is to focus on convergence of all channels, processes and entities in any functional channel area, so that data can seamlessly flow once a data entry has been made. With a recurring revenue base of approx. 80%, Ebix strives to work collaboratively with clients to develop innovative technology strategies and solutions that address specific business challenges. Ebix’s focus on quality has enabled its development unit in India to be awarded Level 5 status of the Carnegie Mellon Software Engineering Institute’s Capability Maturity Model Integrated (CMMI). With a \ ISO 27001-security certification, the Company also has a ISO 9001:2000 certification for both its development and BPO units in India. Its vast customer base includes hundreds of banks, financial institutions, insurance companies and hundreds of thousands of brokers, in addition to 80 of the Fortune 500 corporate clients. This includes an impressive blue-chip account base consisting of the world’s largest and most respected financial institutions, banks and insurance companies. In 2012 Ebix was ranked as the 6th Fastest Growing Technology Company in America by Forbes Magazine. Ebix was also ranked 4th Fastest Growing Technology Company in 2011 by FORTUNE. ABOUT EBIX The Company has its headquarters in Atlanta, Georgia, while having 45+ offices across the world in countries like Australia, Brazil, New Zealand, Singapore, Canada, U.K and India. Through its various SaaS based software platforms, Ebix employs 3,500+ professionals providing products, support and consultancy to thousands of customers on six continents across 60+ countries. A  few  more  summary  facts  about  Ebix   •  Market capitalization of 2 Billion approximately •  Largest insurance exchange in the world •  The client base includes 80 of the Fortune 500 clients •  The Company has a 99% plus customer retention rate across the world •  The Company has a proven high Growth and Profitable Recurring •  Ebix’s exchanges power transactions between hundreds of Revenue Model with 80% plus recurring revenues. thousands of brokers and insurance companies   •  Strong Balance sheet and an 18 year history of consistent •  Ebix runs over 22 million compliant life policy illustrations and over profitability, cash growth and revenue growth 40 million life insurance quotes annually   •  A client base spread across 60 + countries with hundreds of •  Ebix’s Financial exchange powers more than 50 billion in Annuity thousands of users using its platforms and exchanges premiums annually in the United States   •  Hundreds of thousands of users of its insurance, financial and •  Ebix Exchange in Australia powers most of the electronic property healthcare exchanges & casualty insurance transactions   •  Strong presence and roots in India spread across 11 offices with •  Ebix’s On-Demand CRM solution is used by 125,000 plus users in approximately 2,000 employees the United States alone   •  Ebix’s centers in India have Carnegie Mellon’s highest CMMI 5 •  Ebix systems tend to be multi-lingual, multi-currency and work in rating and that establishes the quality of Ebix’s operations to any of French, Portuguese, Spanish, Japanese, Chinese, Hindi and its prospective customers English •  Ebix has a strong clientele of financial institutions, banks, insurance •  All worldwide intellectual property and development is led by its companies, insurance brokers, healthcare professionals across the India staff world besides having a reputed client base in India including Indian Govt., Indian public and private sector, hospitals, insurance companies, brokers etc. as clients SUMMARY HIGHLIGHTS Industry Leadership Opportunity Large, Impressive Client High Growth and Profitable by Leveraging Ebix’s Strong Base for Expansion and Recurring Revenue Model. 1 2 3 Market Presence. Cross-selling. The U.S. insurance IT market is a highly Ebix’s outstanding reputation with a large With approx. 80% of its revenue generated from fragmented 60 billion industry. Ebix’s innovative customer base and community of recurring sources, derived from a 99% exchange strategy and its global reach positions insurance professionals offers tremendous plus customer retention rate, Ebix has a solid it as a possible leader in the worldwide insurance expansion and cross-selling opportunities to revenue base to build a high degree of visibility exchange markets accelerate an already very strong market to its growth and future revenues. position. Consistency of Performance. Operating Margins Q1 2017 2016 2015 2014 2013 2012 Annualized 37%   37%   34%   Revenues in million 316.4 298.3 265.5 214.3 204.7 199.4 33%   32%   Growth of Q1 2017 annualized 6% 19% 48% 55% 59% over other years Net Income in million Q1 2017 2016 2015 2014 2013 105.7 93.8 79.5 63.6 59.3 70.6 Growth of Q1 2017 annualized 35% 13% 33% 66% 78% 50% over other years 33% 32% 32% Diluted EPS in 3.31 2.86 2.28 1.67 1.53 1.8 Growth of Q1 2017 annualized 16% 45% 98% 116% 83% over other years Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2017 results have been annualized for presentation purposes. These numbers are GAAP numbers. SUMMARY HIGHLIGHTS Unique Differentiation Enhances Ebix’s Leadership Opportunity Ebix’s exchanges power transactions Ebix provides a multi-national between hundreds of thousands of broker or carrier a common code brokers and insurance companies. base world-wide, unlike any other software player in the insurance Ebix runs over 22 million compliant life policy industry that addresses these illustrations and over 40 million life insurance markets. quotes annually. Ebix’s annuity exchange powers in excess of 50 billion in premiums annually in the United States. Ebix Ebix systems are multi-lingual, multi-currency Exchange in Australia powers the majority of the electronic property & and work in French, Portuguese, Spanish, Japanese, Chinese and casualty insurance transactions. Ebix’s On-Demand CRM solution is used English. by 125,000 plus users in the United States alone. With the aggregation of a large community of insurance companies and brokers on its exchanges, Ebix is seen as a vehicle to insurance markets by these entities. Companies not using Ebix exchanges risk losing access to the aggregated markets that Ebix could offer them access to. With fully owned offshore facilities in India, Ebix has the ability to reduce the cost structure of acquired companies and increase Experienced Executive Management their efficiency. Team with Domain Expertise and Industry Recognition. Ebix’s centers in India have Carnegie Mellon’s highest CMMI 5 rating and that establishes the Ebix’s team includes subject matter and quality of Ebix’s operations to any of its prospective customers. domain experts with a deep understanding of the insurance industry spanning a thousands of years of experience amongst them. Its infrastructure and experienced executive management team is highly capable of sustaining its leadership and developing Ebix into an even larger organization. GLOBAL FOOTPRINT Our markets and our clients cross geographic boundaries. Ebix employs hundreds of insurance & technology professionals providing products, support and consultancy to thousands of customers on six continents across 50+ countries through 40+ offices. Canada United Kingdom United States India UAE Singapore Brazil Australia New Zealand FINANCIAL SNAPSHOT THE JOURNEY TILL NOW • In 1999 Ebix had 19.0 million in Net Losses. • In 2016 Ebix had 93.8 million of Net Income. 120 105.71 100 93.85 79.53 80 71.37 70.57 63.55 59.00 59.27 60 38.80 40 27.31 20 12.70 6.00 4.30 (19) 2.60 (11) 1.70 0.10 0.50 0 2001 2002 2004 2006 2007 2003 2005 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Annualized 2000 (20) 1999 (40) CONSISTENT GROWTH AND PROFITABILITY Revenue  (in  millions)   Net  Income  (in  millions)   Diluted  EPS   316.41 298.29 265.48 214.32 204.71 199.37 168.97 132.19 105.71 93.85 79.53 71.37 70.57 63.55 59.27 59.00 1.80 2.28 1.75 1.67 1.53 3.31 1.51 2.86 2010 2011 2012 2013 2014 2015 2016 YTD 2017 Q1 Annualized CAGR calculated using 2009 as the base period through 2016 Revenue CAGR – 17 % Net Income CAGR – 13 % EPS CAGR – 16 % RECURRING REVENUE STREAMS WITH CONSISTENT GROWTH AND PROFITABILITY • Stable, predictable base of recurring revenues • Approximately 80% in recurring revenue streams • Scaling on-demand model of with 30 - 40% operating margin levels 298.29 265.48 Sales (in millions) Operating Margins 214.32 204.71 199.37 168.97 132.19 41% 40% 39% 37% 37% 34% 33% 2010 2011 2012 2013 2014 2015 2016 Revenue Growth & Operating Margins RECURRING REVENUE STREAMS WITH CONSISTENT GROWTH AND PROFITABILITY 93.85 Net Income (in millions) 79.53 Diluted EPS 71.40 70.60 63.55 59.27 59.00 2.86 2.28 1.80 1.75 1.67 1.53 1.51 2010 2011 2012 2013 2014 2015 2016 EBIX Net Income Growth & Diluted EPS OPERATING INCOME Combined Operating Income from 2010-2016 = 542 Million 100.3 Operating Income (in millions) 88.7 79.7 77.0 75.0 68.7 52.5 2010 2011 2012 2013 2014 2015 2016 RECURRING INCOME STREAMS WITH CONSISTENT MARGINS Net Income (in millions) 26.4 Operating Margins 24.6 24.1 23.0 22.2 21.9 20.2 37% 35% 35% 33% 33% 32% 32% Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 EBIX Operating Margins & Net Income Growth BALANCE SHEET METRICS Healthy Balance Sheet 2011 2012 2013 2014 2015 2016 Net Debt/(Net Cash) 21.9 44.4 (0.6) 69.4 148.4 155.6 (millions) Current Ratio 1.28 1.44 1.54 1.49 2.28 2.34 Cash Balance (millions) +Short-term 25.2 37.4 57.5 52.6 58.7 117.2 investments Working Capital 14.0 25.0 35.7 34.1 65.6 120.2 (millions) Debt to equity ratio 0.15 0.22 0.14 0.28 0.51 0.64 INDUSTRY AND MARKET OVERVIEW INDUSTRY AND MARKET OVERVIEW EBIX’s footprint addresses the most strategic needs in the insurance industry Life and Annuity 4 Property & Casualty (P&C) 1 • On-Demand straight through processing solutions for Life • Enterprise Solutions for Carriers, Brokers, Agents, MGA’s, TPA’s Insurance and Wealth management sectors • Back-office Administration Systems • New business to claims including reinsurance and commission • Broker/Agency Management processing • CRM • Enterprise-wide innovation to the front and back office • Research, Quoting, Underwriting operations of financial services • Policy Production • Enterprise CRM Solutions • Accounting • Agency Management • Claims Processing • Research, Quote and Illustrate • Insurance Certificate Creation/Management • eApp Exchange, Requirements Management, Case Management, Underwriting, App. Submission, Compensation Health Exchanges Health Content/E-Learning 2 Management, Agent Portals • Policy Administration • eSignature • Claims Administration • Policy Delivery • Agency Management – CRM, Advisor Tools • Post Issue Policy Servicing • Web Portals – Brokers, Employers, Consumers • Online Quoting Software Development Services 5 • Online Enrollment • Custom Product Development • Medical Management • Strategic Consulting • Analytics & Reporting • Business Process Management • Consumer & Patient Healthcare Information • Systems Integration • E-Learning, M-Learning • IT Outsourcing • CME • E-Governance • Telemedicine Risk Compliance Solutions 6 Risk Management 3 • Insurance Certificate Creation & Issuance • Managers, Claims Administrators, TPAs, Healthcare, Carriers and • Certificate Tracking Safety Professionals • Back-office & Compliance • Worker’s Compensation Injury Reporting Service • Claims Validation • Claims Management and Compliance • Claims Processing • Incident and Loss Notice Reporting • Health - Enrollment Services • Managed Care Tracking • Health – Claims Adjudication • Loss and Risk Analysis • Reinsurance EBIX’S INSURANCE INDUSTRY OFFERINGS P&C Broker Systems EXCHANGES RISK COMPLIANCE SOLUTIONS P&C Insurance Company Back-end Systems