CANNAE HOLDINGS, INC. Investor Presentation
May 2021
Safe Harbor
This presentation contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business and political conditions, including changes in the financial markets and changes in conditions resulting from the outbreak of a pandemic such as the novel coronavirus COVID-19("COVID-19"); the overall impact of the outbreak of COVID-19 and measures to curb its spread, including the effect of governmental or voluntary mitigation measures such as business shutdowns, social distancing, and stay-at-home orders; our potential inability to find suitable acquisition candidates, acquisitions in lines of business that will not necessarily be limited to our traditional areas of focus, or difficulties in integrating acquisitions; significant competition that our operating subsidiaries face; risks associated with our Split-Off from FNF, including limitations on our strategic and operating flexibility related to the tax-free nature of the Split- Off and the Investment Company Act of 1940; risks related to our Externalization; the closing of the Alight transaction by Foley Trasimene Acquisition Corporation and Wynn Interactive transaction by Austerlitz Acquisition Corporation I within the prescribed time frames.
This presentation should be read in conjunction with the risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Forms 10-Q,10-K and other filings with the Securities and Exchange Commission.
Many statements and case studies contained herein relate to (i) Fidelity National Financial, Inc. ("FNF"), (ii) Fidelity National Information Services, Inc. ("FIS"), (iii) Black Knight, Inc. ("BKI"), (iv) Alight ("WPF" or "FTAC") or (v) Paysafe ("PSFE" or "FTAC II"). An investment in Cannae is not an investment in FNF, FIS, BKI, WPF or PSFE. The historical stock price performance of FNF, FIS, BKI, WPF or PSFE are not necessarily indicative of future performance of Cannae.
Past stock price performance and rate of return of common stock of Cannae may not be indicative of future performance.
CANNAE HOLDINGS INVESTOR PRESENTATION MAY 2021 | 2
Key investment highlights
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Led by William P. Foley, II
A preeminent operator and deal maker with a long, proven track record of shareholder value creation
Unique investment philosophy & playbook
Utilizes Foley's investment philosophy and value creation playbook built over 30+ years and hundreds of strategic acquisitions
Proven ability to generate excess returns
Cannae has generated an ~16% CAGR since inception in 2014 (1) versus ~14% for the S&P 500 and ~11% for the Russell 2000 (2)
Attractive portfolio with significant embedded upside
Significant value creation opportunities within existing portfolio and potential new investment opportunities
Source: Public company filings and market data as of 5/10/2021. | ||
(1) | Cannae return analysis from 7/1/2014 - 5/10/2021. Assumes shares of Remy and J. Alexander's continued to be held after spin-off from Cannae. See page 9 for further details. | CANNAE HOLDINGS INVESTOR PRESENTATION MAY 2021 | 3 |
(2) | S&P and Russell returns from Bloomberg data, return analysis from 7/1/2014 - 5/10/2021 inclusive of dividends reinvested in the index. |
1 Cannae overview
- Cannae Holdings Inc. ("Cannae" or the "Company") is a diversified holding company led by William P. Foley, II ("Bill Foley" or "Foley")
- Cannae was started as Fidelity National Financial Ventures (FNFV), a tracking stock of Fidelity National Financial (FNF), and in 2017, FNF spun out FNFV, renamed Cannae Holdings, Inc.
- Cannae leverages Foley's 30+ year track record of operating and investing in world class businesses and delivering significant shareholder value
- Foley has led the creation of ~$155 billion of shareholder value across multiple public company platforms over his career (1)
- Cannae has built an attractive portfolio of investments in leading companies with significant upside potential
- Cannae focuses on investing in profitable and growing technology enabled businesses in compelling industries
- The Company is externally managed by Trasimene Capital Management
Strong Returns Since Inception
+ 167% (2)
+ 142% (3)
+ 101% (3)
Cannae | S&P 500 | Russell 2000 |
Portfolio Investments as of May 2021
Company | Current | Initial Year | Cost of | Fair Value | FV Net of | Net | FV per | ||
CNNE | |||||||||
Ownership | invested | Investment | Expense | MOIC | |||||
Share | |||||||||
76.6M shares | 2019 | $726.1M | $1,741.5M | $1,402.1M | 1.9x | $15.30 | |||
(~18% ownership) | |||||||||
14.0M shares | 2007 | $84.9M | $1,175.0M | $886.0M | 10.4x | $9.67 | |||
(~9.4% ownership) | |||||||||
54.0M shares | |||||||||
(~7.5% ownership) | 2021 | $496.6M | $769.7M | $679.8M | 1.4x | $7.42 | |||
+ 8.1M warrants | |||||||||
(4) | 44.6M shares | 2021 | $398.3M | $461.1M | $440.3M | 1.1x | $4.80 | ||
(~8.3% PF ownership) | |||||||||
+ 8.0M warrants | |||||||||
(5) | 23.7M shares | 2019 | $80.0M | $235.0M | $184.3M | 23.0x | $2.01 | ||
(~16% PF ownership) | |||||||||
(6) | ~20% ownership interest | 2020 | $289.0M | $578.0M | $484.3M | 1.7x | $5.28 |
Various Other Investments (7) | Various equity and | Various | $402.4M | $486.0M | $453.6M | 1.2x | $4.95 | ||||||||||||
and Adjusted Net Cash (8) | debt investments | ||||||||||||||||||
TOTAL | |||||||||||||||||||
$2,477.3M | $5,446.3M | $4,530.4M | 1.8x | $49.43 | |||||||||||||||
Cannae's intrinsic value per share presents 34% upside to its share price of $36.94 as of 5/10/2021
One share of Cannae is up ~167% since inception in 2014 (2)
Source: Public company filings and market data as of 5/10/2021.
- See page 14 for further details.
- Return analysis from 7/1/2014 - 5/10/2021. Assumes shares of Remy and J. Alexander's continued to be held after spin-off from Cannae. See page 9 for further details.
- Bloomberg data, return analysis from 7/1/2014 - 5/10/2021 inclusive of dividends reinvested in the index.
Note: Per share amounts based on ~91.7M Cannae shares outstanding. Public values shown are net of allocable taxes and carried interest/ISIP. Public company filings and market data as of 5/10/21.
- Alight cost basis of common/warrants is based on combined capital committed/cost of private placement warrants as of 5/10/21. FV of common/warrants is based on shares and warrants expected to be received in connection with the Company's committed investments/private placement warrants and respective share/warrant prices as of 5/10/21. Subject to closing.
- Includes ~23.7M shares of TWND, post combination. Cost includes pre-combination investments in QOMPLX equity and $12.5M Convertible Note as well as $37.5M committed PIPE investment. FV is based on shares of TWND share price at 5/10/21. Subject to business combination closing.
- Optimal Blue presented at 2x cost less applicable taxes and carried interest. FV estimated from multiples for similar businesses, value at BKI call and business outperformance since acquisition.
- Primarily represents Austerlitz I, Austerlitz II, and Trebia at market value (less allocable taxes and carried interest / ISIP). Also includes Sightline Payment, Amerilife, Restaurant Group, CorroHealth, TripleTree, Colt and real estate at cost.
- Includes net cash less capital committed but not yet funded in connection with WPF, TREB, ASZ and TWND. Funding to occur concurrently with the closing of the business combinations. Does not reflect amounts for potential
backstop of AUS redemptions which could range from $0 to $690M.
1 Cannae is led by William P. Foley, II
William P. Foley, II
Best-In-Class Manager
- William P. Foley II ("Bill Foley" or "Foley") is responsible for the growth of ~$155 billion in publicly traded companies to date including Fidelity National Information Services ("FIS"), Fidelity National Financial ("FNF"), Black Knight, Inc. ("BKI"), Ceridian ("CDAY"), Dun & Bradstreet ("D&B" or "DNB") and Cannae (1)
- Through his career, Foley has developed a value creation framework to identify and execute investments and drive value for shareholders
- Foley has consistently accelerated growth and improved operating margins as well as executed strategic M&A and exceeded cost reduction targets on acquisitions
- Foley led the recently closed ~$9.0B merger of Paysafe with Foley Trasimene Acquisition Corp. II as well as the recently announced ~$7.3B merger of Alight with Foley Trasimene Acquisition Corp and the recently announced ~$3.2B merger of Wynn Interactive with Austerlitz Acquisition Corp I.(2)
- Foley is also the Majority Owner, Chairman, CEO and Governor of the National Hockey League's 31st franchise, the Vegas Golden Knights
Source: Public company filings and market data as of 5/10/2021.
- See page 14 for further details
- Alight and Wynn transactions subject to close.
- Achievement on-going.
- Synergy projection and realization data provided by FNF.
Strong Track Record Delivering Value…
$92.7B | |||||
$13.4B | $11.8B | $12.5B | |||
$9.8B | |||||
$3M | $2.5B | $1.6B | $2.9B | $2.0B | |
1984 LBO Current Mkt 2006 Spin- Current Mkt | 2015 IPO Current Mkt | 2018 IPO Current Mkt 2019 LBO Current Mkt | |||
Cap | Off | Cap | Cap | Cap | Cap |
…And Overachieving Targeted Savings ($M)
Acquiror | Target | Acquisition date | Forecast savings | $ of synergies |
achieved | ||||
Cannae | D&B | Feb-2019 | $200 | $246 (3) |
FNF | LPS | Jan-2014 | $150 | $312 |
FIS | Metavante | Apr-2009 | $260 | $300 |
FNF | Land America | Dec-2008 | $150 | $265 |
FIS | eFunds | Sep-2007 | $65 | $87 |
FIS | Cartegy | Feb-2006 | $50 | $50 |
FNF | Intercept (4) | Dec-2004 | $25 | $33 |
FNF | Aurum (4) | Mar-2004 | $15 | $17 |
FNF | Chicago Title (4) | Mar-2000 | $90 | $133 |
CANNAE HOLDINGS INVESTOR PRESENTATION MAY 2021 | 5
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Cannae Holdings Inc. published this content on 19 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 May 2021 12:05:00 UTC.
