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© 2014 ICG Group, Inc. All Rights Reserved. /
ICG Investor Conference
February 26, 2014
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© 2014 ICG Group, Inc. All Rights Reserved. /
ICG Investor Conference Agenda
• 4:15 pm Welcome/ICG introduction Walter Buckley
• 4:30 pm MSDSonline Presentation Glenn Trout
• 5:00 pm GovDelivery Presentation Scott Burns
• 5:30 pm Bolt Solutions Presentation Eric Gewirtzman
• 6:00 pm Closing remarks Walter Buckley
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© 2014 ICG Group, Inc. All Rights Reserved. /
Forward-Looking StatementsThe statements contained in this presentation that are not historical facts are forward-looking statements that involve certain risks and uncertainties, including, but not limited to, risks associated with the effect of economic conditions generally, capital spending by our customers, our ability to retain existing customer relationships and secure new ones, our ability to compete successfully against alternative solutions, our ability to timely and effectively respond to technologicaldevelopments, our ability to retain key personnel, our ability to have continued access to capital and to deploy capital effectively and on acceptable terms, our ability to maximize value in connection with divestitures, and other risks and uncertainties detailed in ICG’s filings with the Securities and Exchange Commission. These and other factors may cause actual results to differ materially from those projected.
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© 2014 ICG Group, Inc. All Rights Reserved. /
Non-GAAP Financial MeasuresNon-GAAP net income (loss) and non-GAAP net income (loss) per diluted share are non-GAAP financial measures and haveno standardized measurement prescribed by GAAP. When referring to non-GAAP financial measures, the term “adjusted” isused interchangeably with the term “non-GAAP” by ICG’s management and the two have identical definitions. Non-GAAP netincome (loss) is GAAP net income (loss) attributable to ICG, including acquired businesses’ deferred revenue and excludingshare-based compensation, amortization of intangibles, impairment-related and other, other (income) loss, net, equity lossand income tax expense (benefit)-deferred amounts and impact of discontinued operations. Non-GAAP net income (loss)per diluted share is non-GAAP net income (loss) divided by (1) GAAP shares, including the any impact of incremental dilutivesecurities (in the case of income) or (2) GAAP shares, excluding any impact of incremental dilutive securities (in the case ofloss). ICG's core consolidated companies are Bolt, GovDelivery and MSDSonline. Please note the following:
- Bolt became a consolidated company on December 27, 2012. ICG has deemed Bolt’s operating results for the finalfour days of 2012 insignificant for consolidation purposes. Therefore, Bolt is included in equity loss for all 2012periods presented, and Bolt’s results are presented in ICG’s consolidated results beginning on January 1, 2013.- MSDSonline's results are not included in ICG's results for periods prior to Q2 2012 as ICG did not acquire anownership stake in MSDSonline until March 30, 2012.- CIML’s (primarily mylist’s) continuing operating results are included in ICG’s consolidated results from July 11, 2012to February 20, 2013 as ICG owned 51.6% and controlled CIML during this period. CIML was an equity methodcompany for periods prior to July 11, 2012 and, accordingly, was included in the equity loss line item. ICG’s ownershipin CIML was diluted as part of the Channel Intelligence sale described below, and CIML became an equity methodcompany on February 20, 2013 for periods going forward.- Channel Intelligence, Investor Force and Procurian were sold in Q1, Q1 and Q4 2013, respectively, and arepresented as discontinued operations under GAAP. Their results are presented within our non-GAAP measures as“Impact from discontinued operations.”
ICG's management believes these non-GAAP financial measures provide useful information to investors and potentialinvestors that enables them to view ICG’s business in a similar manner as ICG's management and provides meaningfulsupplemental information regarding ICG’s operating results as they exclude amounts that ICG excludes as part of itsmonitoring of operating results and assessment of the performance of its business.
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© 2014 ICG Group, Inc. All Rights Reserved. /
Overview
Bringing the Power of the Cloud to Industry-Specific Vertical Markets
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© 2014 ICG Group, Inc. All Rights Reserved. /
ICG: The Multi-Vertical Cloud Company
Cloud-smart Vertically Specialized Leadership
A pioneer of cloud computing, we know how to grow platforms
in change-ready markets.
We bring the power of the cloud to industry-specific vertical
markets
We aim to be #1 in the markets we serve and choose to enter
Markets Re-imagined
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Recurring Revenue %
Retention Rates %
Y-o-Y Revenue Growth - Organic
Gross Margins
S&M Spend % of Revenue
G&A Spend % of Revenue (Exc SBC)
R&D Spend % of Revenue
© 2014 ICG Group, Inc. All Rights Reserved. /
Cloud Computing Business Model
* BVP Cloud Computing Index 9/20/13 & CAPIQ Analysis.** Goal is to at least maintain these rates.
CloudICG 2013 ICG 2014 Computing
Actual Goal Index Median *
87% ** N/A.
95% ** N/A
38% 31-35% 27%
70% 70%+ 72%
47% ~50% 43%
42% ~25% N/A
15% ~15% 17%
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© 2014 ICG Group, Inc. All Rights Reserved. /
Demonstrated Quarterly Growth
Q1
2012 2013
Q2 Q3 Q4 Q1 Q2 Q3
Rev
enue
(Mill
ions
)
Q4
8
Attractive Market Size & Growth Opportunities
• > $ Billion + market, growing >20%
Pursuing markets we can transform
• Big Data, Network Effect
© 2014 ICG Group, Inc. All Rights Reserved. /
ICG Market Characteristics
Early Cloud Adoption
• Proven customers, yet < 10% total market penetration
Attractive Competitive Dynamics
• Clear market leadership
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Audience Building. Efficiency. Actionable Insight.
Safety. Compliance. Regulatory Reporting.
Access. Retention. Distribution.
$30BInsurance
Market
$1B+PublicSector
CommunicationsMarket
$1B+EHS
ComplianceMarket
$30+BILLION
Total Addressable Market
109
DRAFT
© 2014 ICG Group, Inc. All Rights Reserved. /
ICG’s Platforms
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© 2014 ICG Group, Inc. All Rights Reserved. /
Growth Strategy
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11© 2014 ICG Group, Inc. All Rights Reserved. /
Go-To-Market Expansion
B2B Demand Generation
MarketingAutomation
CRM
Processes& Best
Practices
Sales & Marketing TeamMarket-LeadingBrands
20142013
239 people
$28.1 m
289 people
≈$40 m
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Deep DomainKnowledge
Public Sector
Compliance
Insurance
© 2014 ICG Group, Inc. All Rights Reserved. /
Innovate & Scale
Cloud Computing Architectures Product / R&D Team
Agile Development
Multi-Tenant Architecture
MassiveScale
Cloud Security & Redundancy
20142013
119 people
$9.0 m
143 people
≈$12.0 m
© 2014 ICG Group, Inc. All Rights Reserved. /
Corporate Development Strategy
New Market Entry Criteria:• Market that has seen little, if any, automation
• Cloud computing business model
• Ability to be clear market leader
• $10+ million recurring revenue business growing 20+ percent
• Strong renewal rates and compelling value proposition
• Unique solution with “big data” or “network effect” moats
• World-class management team with deep domain knowledge
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Copyright © 2001-2014, MSDSonline®. All Rights Reserved. MSDSonline® is a proprietary trademark of MSDSonline. All other trademarks are the property of the respective owners.
MSDSonline Business Overview
February 27, 2014
Copyright © 2001-2014, MSDSonline®. All Rights Reserved. MSDSonline® is a proprietary trademark of MSDSonline. All other trademarks are the property of the respective owners.
Established Leadership
Unique Cloud-Based EH&S Solutions Help Companies Comply with OSHA & EPA Laws 8,600+ Customers 85%+ of Revenue is Pure SaaS
Leading EH&S Site on Internet Average more than 140K Visits / Month 7,890,133 MSDS Searches in 2013 5+ Million Employees Protected by MSDSonline
Copyright © 2001-2014, MSDSonline®. All Rights Reserved. MSDSonline® is a proprietary trademark of MSDSonline. All other trademarks are the property of the respective owners.
Full Suite of EH&S Compliance Solutions MSDS / Chemical Management Workplace Training Compliance Reference Tools Injury & Illness Recordkeeping
Customers Using our Services Save Time Managing Safety Information Lower Costs in Meeting Compliance Requirements Improve Safety Communications to Employees Reduce Potential Risks & Liabilities
MSDSonline Overview
Copyright © 2001-2014, MSDSonline®. All Rights Reserved. MSDSonline® is a proprietary trademark of MSDSonline. All other trademarks are the property of the respective owners.
OSHA-Required Safety Document Material Safety Data Sheet Safe Handling, Transportation & Storage Information Part of Hazard Communication Regulation (HazCom)
Required Throughout Supply Chain Authored by Chemical Manufacturers Follow Product to End-User (Employer) Made Available to Workers
Traditionally Managed on Paper Three-Ring Binders Home-Grown Systems 2,000+ Documents 5-6 Pages/Document
What is an MSDS?
# 2Most Cited
OSHAViolation
Copyright © 2001-2014, MSDSonline®. All Rights Reserved. MSDSonline® is a proprietary trademark of MSDSonline. All other trademarks are the property of the respective owners.
Key Pillars of Core Offering
ContentLeading Online MSDS Database5+ Million Indexed & Searchable MSDSsHelps Clients Build & Maintain Compliant Library
MSDS/Chemical Management ToolsTrack & Manage Chemicals Where UsedRight-to-Know DeploymentReplace Inefficient Paper SystemsSimplify Regulatory Reporting
ServicesMSDS AuthoringMSDS Library BuildingOngoing ManagementUpdate / Verify New Versions
Copyright © 2001-2014, MSDSonline®. All Rights Reserved. MSDSonline® is a proprietary trademark of MSDSonline. All other trademarks are the property of the respective owners.
The Who & What
Safety Managers / DirectorsEH&S Directors Facility ManagersOperations / Plant ManagersRisk ManagersTraining ManagersSecurityHuman ResourcesProcurement
Buyer Solution
Copyright © 2001-2014, MSDSonline®. All Rights Reserved. MSDSonline® is a proprietary trademark of MSDSonline. All other trademarks are the property of the respective owners.
Competitive Advantages
Leading Cloud MSDS Database 5+ Million Indexed & Searchable MSDSs 60,000 New / Updated MSDSs Added Each Month
Marketing Engine 800,000+ Registered Users Growing at 5,000 New Users / Month
Sales Engine 120+ Sales People Enterprise & Mid-Market Coverage Efficient, Repeatable Sales Process
Copyright © 2001-2014, MSDSonline®. All Rights Reserved. MSDSonline® is a proprietary trademark of MSDSonline. All other trademarks are the property of the respective owners.
Some of Our 8,600+ Customers…
Copyright © 2001-2014, MSDSonline®. All Rights Reserved. MSDSonline® is a proprietary trademark of MSDSonline. All other trademarks are the property of the respective owners.
Additional Regulatory Drivers
GHS is Shining a Light on HazCom Re-Authoring MSDSs to GHS Format New Label Formats Churn of MSDSs to GHS Formatted SDSs Employee Training Requirements
OSHA Beefing Up Enforcement Increase in Site Inspection Activity Site-Specific Targeting Underreporting of Incidents has Prompted a
National Emphasis Program (NEP)
Sustainability is Becoming a Real Issue Fertilizer Plant Explosion in Texas Coal Mining Chemical Spill in West Virginia
Copyright © 2001-2014, MSDSonline®. All Rights Reserved. MSDSonline® is a proprietary trademark of MSDSonline. All other trademarks are the property of the respective owners.
139,000 Targets 100 – 4,999 Employees Single Site & Multi-Site
Medium Biz. Segment(50.3% of $$)
11,000 Targets 5,000 + Employees Single Site & Multi-Site
Large Biz. Segment(40.0% of $$)
456,000 Targets 10 - 99 Employees Single Site
Small / Mid. Biz. Segment(9.4% of $$)
480,000 Targets < 10 Employees Need Few MSDSs
Small Biz. Segment(.3% of $$)
$5M
$169M
$900M
$716M
$1.8B Market Potential
Annual Recurring Revenues – US Only
Copyright © 2001-2014, MSDSonline®. All Rights Reserved. MSDSonline® is a proprietary trademark of MSDSonline. All other trademarks are the property of the respective owners.
Areas of Focus in 2014
Drive Top Line Growth Sales Force Expansion & Territory Realignment Marketing Automation
Capitalize on GHS Continue to Execute Against GHS Opportunity Leverage Marketing & Thought Leadership Opportunities
Create Operational Growth Capacity through Companywide Technology Investments Marketing Sales Finance HR
Copyright © 2001-2014, MSDSonline®. All Rights Reserved. MSDSonline® is a proprietary trademark of MSDSonline. All other trademarks are the property of the respective owners.
Thank You
GovDeliveryFebruary 2014 ICG Investor Conference
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We enable public sector organizations to connect with more people and get them to take action.
Reach more people with the right type of communication using our Messaging Module.
Newsletters Automated Alert
Mobile Alerts
Social Media Post
Widgets
Messaging
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A Strategy Not a Twitter Post
Blog posts don’t read to their kids, people do.
Twitter updates don’t make emergency kits, people do
Smartphones don’t buy fishing licenses, people do
Campaigns don’t get flu shots, people do.
Emails don’t cook healthy meals, people do.
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A Large Market in Transition• A Sector not a Segment:
The public sector is more than 38% of the global economy and just beginning to adopt commercial communication practices (i.e., 3-5 year lag from commercial customers)
• Spend is Transitioning from Legacy Buckets:Government spending on communication and promotion is beginning a transition that will displace massive legacy spending o Over $2.5B spent per year by U.S. governments alone on postal mail o Over $1.5B spent per year in U.S. alone on traditional advertisingo Legacy government IT systems being reevaluated around the globe as
part of transition to Cloudo Over $75B annual IT spend in just U.S. Federalo Gov. cloud adoption expected growth from $2.87 billion in 2013 to $18.48
billion in 2018, representing a CAGR of 45.1% over the five-year span
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Many Target Organizations Contribute to $1B+ Opportunity in Current Markets
1,400 10,277 2,100
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Proven Sales Model Drives New Recurring Revenue Clients and Expansion• Proven direct sales model
– Limited setup fees– Focus on recurring fees paid on annual basis– New clients through aggressive demand generation, consultant network, and direct
sales organization– Upsell through trusted relationships and unique value within existing clients
• Recurring revenue from digital outreach– >100% renewal rate on revenue basis – Increasing value and unique position from which to drive referrals and upsells
through Client Success team
• Expansion solutions that often drive more revenue than initial solution– Targeted messaging to enhance online transactions– Campaign/program management tools– Emergency notifications– Advanced analytics– Professional services
• Add-on solutions in CRM and Collaboration through licensing arrangements
Public Sector Communications vs. Private Sector Marketing
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Marketing Cloud vs. Communication CloudPrivate Sector Marketing Cloud Public Sector Communications Cloud
• Control for the marketer• Inbound lead management• Field sales / ecommerce integrations• Sales growth as priority
• Audience building working across entities• Automation tied to Web content, social
content & unique business applications• Higher volumes & emergency messaging• Complex & variable mission objectives
including channel shift
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The GovDelivery Communications Cloud is an enterprise class technology platform that enables you to build a large audience and get them to act.
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Mass Outreach
Transactional Messaging
Disparate Online Applications & Legacy Paper
Government Messaging Today
Conceptual
Unparalleled Audience Building
Highly Scalable Multi-Channel Messaging
Workflow & Automation
World Class Data Infrastructure & Analytics
Unique Market Position in Sales, Security, Contracting
Digital Messaging
through GovDelivery
Government Messaging 2020
LegacyPaper
1:1 Contact
Mass Outreach
Proven Professional Services
GovDelivery LeadsA dramatic change in government
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1,000+organizations with clients in all 50 states, every Federal executive department, & the U.K./Europe
20,000+ active administrators across all levels of government
60+ million people signed up for updates through GovDelivery
6 billionmessages per year & growing
Largest driverof targeted traffic & social media engagement for many of largest government bodies in the U.S.
Serving all levels of government ranging from mid-sized cities & counties to the largest government organizations in the world
GovDelivery: the unrivaled leader in cloud-based public sector communication
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“Our ROI is more lives saved & less property & fewer homes destroyed or damaged.”Eugene Luke, Emergency Management Specialist, Federal Emergency Management Agency (FEMA)
“As a result of a campaign focused on government contracting, visits to the SBA Government Contracting page have jumped 72 percent since the campaign began. Also, SBA has yielded a 255 percent increase in entry-level courses like Government Contracting 101.”Small Business Administration (SBA) success story
Delivering Real ValueAcross all levels of government
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Within the first six months of the [website’s] launch, the [State of Indiana] saw a return on investment between $200,000 & $250,000 through reduced postage, printing & mailing costs, & the state has seen annual savings of nearly $200,000. Robert Paglia, Director, Indiana Department of Technology & IN.gov
“Within one hour, we generated more revenue than we did in weeks with the old method. People here were elated – we had reduced a truckload of work processing checks as well as printing & mailing costs.”Margie Damgaard, Web Division Coordinator, Wisconsin DNR
Delivering Real ValueAcross all levels of government
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Work Together to Build Audience through the GovDelivery Network
Compete for the Same Customers
Unique Competitive Advantage: Connect with More People through the GovDelivery Network
MORE PEOPLE MORE ACTION
Grew Digital Outreach from less than 100,000 to over 1 million
40,000 Active Participants in Preparedness through
community.fema.govGovDelivery is the #1 Referrer of Online Traffic to FEMA.GOV
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The ACA’s Secret Weapon
http://www.washingtonpost.com/blogs/the-fix/wp/2013/10/14/meet-obamacares-secret-traffic-weapon/
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Convert to Action
Impact & Reach
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Growth in Messaging & Reach
2004 2005 2006 2007 2009 2011
Total Registered Users(in Millions)
201220102008200K
60M+
2013
2004 2005 2006 2007 2009 2011
Messages Sent Annually
2012201020086M
6B
2013
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11,574Communications every single MINUTE!
Messaging Scale Today
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2,158Registered usersevery single
HOUR!
Accelerating Reach
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ISO 27001 Certification
Extensive audit by one of largest civilian agencies in U.S. Federal government
IL II certification in U.K. for G-Cloud
Security Initiatives
50
Unique contract vehicles allowing for rapid procurement at Federal & U.K. level
Proven national partnership for identification of state & local consultants in support of public sector opportunities
Over 90% of clients on “Managed Network Service” through which GovDelivery determines which clients are promoted & featured
GovLoop, a revenue-generating online knowledge community of 100,00+, that is a 365-day a year online conference. It is a place where GovDelivery, and other paying sponsors, can bring thought leadership to the public sector community. This has a high strategic value in the market as it positions GovDelivery as a thought leader and is less than 10% of revenue.
Unique Business Assets
51
2014 Key Initiatives
• Enterprise Excellence & “Program” Results
• Expand the Value of Subscriber Base
• Accelerate Sales and Marketing Investment
Thank You
Bolt Platform - ICG Conference2014
We Provide A Better Way for a Consumer to Choose and Buy Insurance
Bolt’s Vision: Leveraging the Cloud, Providing a Comprehensive Single-relationship P&C Insurance Solution to the Consumer
2/26/2014 54
Direct to Consumer
Exclusive Agent
Independent Agent
Technology
Experts/Processes
Markets
How Businesses and Individuals purchase
Insurance Today
Our Industry Viewpoint
2/26/2014 55
Insurance Provider
Business
Home
Auto Specialty
Insurance companies spend substantial marketing dollars to attract new customers & retain existing ones
The Critical Buying Stage
How is Insurance Buying Behavior Influenced?
Earning Trusted Advisor Incumbency • Consumers want to buy insurance through their own preferred medium • They prefer to go and stay with the provider who covers all their needs.
2/26/2014 56
Omni-Channel Approach
What we are seeing
• Customers buying patterns changing• Single carrier model best case scenario:
• Satisfies ~40% of the flow
• Bundling & combining of non-proprietary products
• Need to offer the right product for the customer from the right carrier, competitive
2/26/2014 57
What does BOLT do?
2/26/2014 58
Carriers hire us to:•Provide them with a scalable multi-carrier, multi-channel platform that allows them to offer their customers more products and choice•Improving their customers’ experience (multi-channel, real-time, single call)•Help them to Support customers through all channels
Agent subscribe to our platform to :•Gain easy and efficient access to products their customers need
Consumers come to us to : •Buy Insurance and protect themselves
Our Goal
• Be a dominate force in the distribution of flow business
Flow = High volume/Low premium
• Achieve this through an omni-channel nationwide approach
2/26/2014 59
Total Addressable Market
• The US Property and Casualty Market annual GWP (Gross Written Premium) >$400B of which $150B is estimated as Flow type business
• It spends approximately 20% on Distribution bringing our addressable Market to $30B
2/26/2014 60
Strategy
• Provide the integrated cloud technology needed to facilitate flow and ease of use
• Enhance with an industry leading Insurance Platform that is a better way to choose and buy insurance online
• Lead the industry by being the ultimate users of the technology
• Leverage our ecosystem of partners for markets and distribution
2/26/2014 61
The BOLT platform includes multiple Pre-Integrated Components
Bolt Choice Platform
CRMAnd Campaigns
Omni-Channel Portal
Management System
CallCenter
Telephony
Data WarehouseReportingAnalytics
Commercial Lines
Comparison Engine
Personal Lines Comparison
Engine
Direct Carrier Connections Off-Line Carriers
Agency
Markets
2/26/2014 62
Our Moat - Content of Carrier/State/LOB BOLT Platform Integration summary
Carrier/State/LOBcombinations
Start of 2013 986
Commercial Lines 982
Personal Lines 4
New integrations completed in 2013 922
Commercial Lines 198
Personal Lines 724
Current commitments for 2014 656
Commercial Lines 139
Personal Lines 517
Total 2,564
Commercial Lines 1,319
Personal Lines 1,245
BOLT Distribution
2/26/2014 64
Partner Programs Customized Programs/Portals for Large Scale Affinity Partners
Wholesale ServicesMarket and Expertise Solution for Agents
Business DirectE-Agency focused on Direct Commercial and Personal Lines
Top 10 Direct Carrier
Customer case studies:Hiscox:•One of the largest UK insurance companies•Decided to focus on a direct to small business owner model in the US•Focus on a limited group of class codes (and geographies) •Spend double digit m$’s on online marketing per annum•More than half of the prospects that come to their site are ineligible for their products•BOLT agency receives Hiscox ineligible prospects and provide them with the products they need via a multi-carrier offering
2/26/2014 65
Customer case study:A Top 10 US carrier•One of the largest insurance companies in the US•Highly focused on Auto insurance, with some appetite for Home owners, and Commercial Lines underwriting•Their goal is to protect their Auto book from competitors (Geico, Progressive etc..) by making sure their agents can cater to all their customers needs = provide products that are outside their own underwriting appetite and expertise•Have $1.4b of non proprietary business that is sold by its captive agents•Use the BOLT platform to allow their agents to offer and to manage Non carrier product - Single data entry allows the agent access to over 20 other insurance carriers (provides over 700 carrier/product/state combinations)
2/26/2014 66
Customer case study:
Citizens:• Reduce and limit the inflow of non applicable
submissions and policies to Citizens• 52%+ of policies are not effectively shopped
• Produce premium comparisons• Validate the statutes
• Private market should be the choice if the premium offered to customer is less than 15% of the Citizens premium
• Broaden market access to all Citizens agents2/26/2014 67
How we generate revenue
• SAAS Fees
• Commissions
• Professional Services
2/26/2014 68
© 2014 ICG Group, Inc. All Rights Reserved. /
Closing Remarks
69
© 2014 ICG Group, Inc. All Rights Reserved. /
Revenue Growth
2012Actual
2013Actual
Rev
enue
(Mill
ions
)
2014Guidance
70
© 2014 ICG Group, Inc. All Rights Reserved. /
Non-GAAP Net Income/Share Improvement
2012Actual
2013Actual
Non
-GA
AP
Net
Inco
me/
Shar
e
$(0.36)
2014Guidance
71
© 2014 ICG Group, Inc. All Rights Reserved. /
Investment Highlights
Large market opportunity aligned
Clear market leader in each vertical market
Strong recurring revenue base
Demonstrated record of outstanding revenue growth
Proven track record of successfully entering and scaling cloud-ready markets
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© 2014 ICG Group, Inc. All Rights Reserved. /
ICG Investor Conference
February 26, 2014
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