JEFFERIES 2013 TMT CONFERENCE

9 May 2013Andrew Roberts, Group CEO, Innovation Group

Agenda

1. Who we are and what do we do?

2. What’s different about us?

3. Our recent performance and growth potential

4. What’s in our portfolio?

5. Our growth markets

6. What our customers say about us

7. What the industry analysts say about us

8. Why we are a good investment prospect

9. Questions

2

Group – Growth targets

AnnualRevenue growth 12-14%

Cash flow conversion 85%

2014/15EBITDA Margin 20%

Adjusted profit margin 15%

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Innovation Group Services

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Motor Property

Maintenance Dry WetService Plans

AccidentManagement

What’s different about us?

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Recent performance

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• Strong, consistent growth track record

• Three year progression across revenue, Adj PBT and Adj EPS

(£’m) (£’m) (p)

Current portfolio & deployment options

Deployment options:

• On premise

• Hosted

• BPO

• SaaS

• Cloud

• BPaaS

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Insurer Policy Insurer Claims

Insurer Configurator

Insurer Rating Insurer Billing Insurer Reinsurance

Insurer Rapid Assess

Insurer Symbility Insurer Gateway

Insurer Analytics

Insurer isubs

MotorProperty

Future Technology - IGnition

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• Innovation

• Mobile

• Big Data

• Telematics

• Proof of Concepts

• New Partnerships

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Insurer Portfolio

Insurer Mobile Insurer DataInsurer

Telematics

Our Global General Insurance Market

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Source: Swiss Re World Insurance Report

55%30%

15%North America

Europe

APAC + South Africa

DWP per region in USD MillionsNorth America: 737,152Europe: 395,008APAC & South Africa: 206,172

Total: 1.33 Trillion USD

Primary Distribution Channels

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Distribution Channels UK US

Direct e.g. Web, Mobile, Mail, Call Center✔✔✔✔

Aggregator✔✔✔✔

Captive Agents✔✔✔✔

Independent Agents / Brokers ✔✔✔✔

White-Label✔✔✔✔

Retail✔✔✔✔

Affinity✔✔✔✔

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US General Insurance Major Market Trends

• Continuing State and Federal Regulation

• Insurer Growth Strategies of Greenfield, New States, New Lines

• Buy Suite Solution vs. Buy Modules

• Customer Experience and Interaction via Portals, Mobile, Email, SMS, Social Media

• New Products, Underwriting Profitability, Multi-Channel Distribution and Speed to Market

• Claims Transformation Extending to Supply Chain

• Extend Enterprise with Technology and BPS

• Estimated US Insurance Employee Shortfall of 400,000 by 2020

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Source: Gartner, Novarica, Celent

US – who are we targeting?

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Source: Forrester, Novarica, NAMIC, Celent, Gartner

Tier 1 insurers� New business models / greenfield outside “traditional model”� Partner for delivery

Tier 2 & 3 insurers � Strong growth � Replacing legacy with suite � Pockets of innovation and new business models to compete� Lack managed networks� Strong alternative deployment interest: Hosted, SaaS, Cloud� Joint BPS and Software customers

� 3900+ AM Best Registered Insurers� 1000+ “unique insurers” - 90% + Tier 2 & 3� Commercial lines opens up another 50% of the GI market to us

IG Positioned to take #3 in the US General Insurance

Vendor

Functionality RatingTechnology

Rating

Deployment

Offerings

Upgrade-

ability

BPS

Services

Supply

ChainPolicy Claims Analytics

Guidewire✔ (3) ✔ (2) ✗

1 – Claims

2 - PolicyOn-Premise Low ✗ ✗

Accenture

✔ (4) ✔ (1) ✔

2 – Claims

4 - Policy

On-Premise, Hosted,

CloudMed

✔

Limited

✗

Innovation

Group✔ (2) ✔ (3)

✔

“raised the

bar”

1 – Policy

3 - Claims

On-Premise, Hosted,

SaaS, BPaaS, CloudHigh ✔

✔

CSC

✔ ✔ ✔ ✔

On-Premise, Hosted,

CloudHigh

✔

(Policy &

Claims)

✗

Majesco✔ (4) ✔ ✗ 4 - Policy

On-Premise, Hosted,

CloudLow ✗ ✗

Exigen

✔ (1) ✔ ✔

✔ On-Premise, Hosted,

SaaS, CloudMed

✗

✗

13Source: Gartner, Celent, Novarica

What our clients say about us (1)

“Innovation Group’s knowledge in developing and maintaining auto repair facility networks assists AFR in our endeavour to provide our policy holders with multiple options for auto collision repairs and a superior claim experience,” Chad Yearwood, Director of Claims for American Farmers and Ranchers

“Consistently delivering on our promise of exceptional claims service is a critical aspect of Homesite’s business. Innovation Group’s Insurer Claims and Insurer Analytics technology impressed us throughout the evaluation and selection process. As we migrate, we expect key benefits in time-to-market and out-of-the-box capabilities.” Peter B. Settel, SVP and CIO for Homesite

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What our clients say about us (2)

“A key component to any successful partnership is the understanding of business strategy & this is where Innovation Group stands apart,” Wessel Steffens, Head, Absa Vehicle & Commercial Asset Finance

“Hertz Claim Management International has worked with Innovation Group for six years on the build, roll out in 12 countries and ongoing development of our claims system. This partnership has enabled us to fulfil customer expectations & to grow and improve services,” David Voller, European Claims Manager, Hertz Claim Management

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Industry recognises where we are:

- Celent US Insurance BPO Report – Innovation Group registers the most deals in P&C

- Novarica Virtual Insurance Report – Top Provider

- Gartner 2012 Hype Cycle – Provider

- Gartner 2012 Policy Critical Capability report – Top rating

- Gartner Claims Report – Top 4

- Celent Policy Management report – Top rating

- Celent Big Data Mastery report – “IG raised the bar”

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5 reasons to invest

1. Strong growth profile, with a balanced geographical spread

2. Well-placed to benefit from the changes in the insurance markets

3. Technology business to transition customers from old to new

4. Management team incentivised for growth

5. 2013 is an inflection year for the business

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Questions

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