Cannae Holdings, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Kenai Holdings Inc. First Quarter 2024 Financial Results Conference Call. During today's presentation, all parties will be in a listen-only mode. Following the company's prepared remarks, the conference will be open for questions with instructions to follow at that time. As a reminder, this conference call is being recorded and a replay is available through 1159 p.m. Eastern Time, on May 16th, 2024. With that, I would like to turn the call over to Jamie Lillis of Solberry Strategic Communications. Please go ahead.

Thank you, Operator, and all of you for joining us. On the call today, we have our Chairman and Chief Executive Officer, Bill Foley, Kaniyia's President, Ryan Caswell, and Brian Coy, our Chief Financial Officer. Before we begin, I would like to remind listeners that this conference call and the Q&A following our remarks may contain forward-looking statements that involve a number of risks and uncertainties.

Statements that are not historical facts, including statements about recognized expectations, hopes, intentions, or strategies regarding the future as well as assumptions made by and information currently available to management. Because such statements are based on the fact Actual results may differ materially from those projected.

To include but are not limited to the risks and other factors detailed in our quarterly shareholder letter, which was released this afternoon, cited in our shareholder letter. I would now like to turn the call over to Bill.

Thank you, Jamie. Since returning as CEO of Kenai in February, I have been focused on executing a strategic plan designed to both grow the net asset value, or NAV, of our portfolio and close our share price discount to NAV. Our strategy has three main levers, including improving the performance and valuation of our portfolio companies, making new investments I believe in a strategy. First, I would like to discuss the performance of our two largest specifics of each company's quarter, but I want to highlight a few key points. Dun & Bradstreet produced a 4.3% year-over-year organic growth, which is up from the first quarter of last year. But more importantly, Anthony and his team continue to invest in new products and continue to build confidence in hitting their mid-term target of 5% to 7% organic growth. We continue to believe that there is significant upside in D&B's stock price and we're encouraged by the D&B's Board of Directors, of which I am the chairman, to authorize a share repurchase program for up to 10 million shares of Dun & Bradstreet common stock. In the first quarter, to an affiliate of HIG Capital for up to $1.2 billion. The sale values the segment at approximately 10 times its estimated 2023 EBITDA and 24 times its estimated unlevered free cash flow. We worked with Stefan for more than six months on this transaction, and we were excited to get it announced as it should greatly simplify Alight's business improve profitability, reduce their leverage to less than 3x debt to EBITDA, and allow the company to buy back more shares. I'm confident in the leadership of both D&B and Delight, and we look forward to their continued progress in 2024, which we believe eventually will translate into improving stock price performance and growing our NAV. I'm very proud of our work at AFC Bournemouth, our first football club. In the first full season under our ownership, the Cherries have already achieved their highest price per year league point total in the 125-year history of the club, and the season is not over yet.

Returning to capital returns to shareholders, we can't completely do this. Our previous in-house Dutch tender. We're in, we repurchased 9.7 million shares.

9.7 million shares. 9.7 million shares. 9.7 million shares. the shares back at a premium to where they are trading today, we believe it was effective use of capital given the quantity of shares acquired in such a compressed time frame. However, our stock price performance post-tender illustrates that we also need to grow our NAV through increasing since starting our share repurchase program, we've

We purchased approximately 34% of our common share of the business standing as compared to the rest remaining on our board. But by the time we got back on the board, we had about 10,000 members in the organization. which we plan to utilize. Today we announced a dividend of 12 cents per share per quarter. on June 28th Thank you. Initially, we'll fund the dividends, including the one next month, to the sale of assets for I'm really looking forward to meeting you again next year. Thank you. Thank you. uh... Thank you. Thank you. Thank you. dollars. Red. Blue. Green. Blue. Green. Blue. company investments. For example, if I return private investments, as it will reduce the mass of extravaganza. Thank you. The continuing operations posting $559 million in revenue. Representing a year-over-year decline. Okay. Thank you. Thank you. Thank you. Thank you. Thank you. and liquidity positions, including engagement platform in the first quarter. since we closed the application in May 2020. It's been awarded or as 100 points by the beverage tasting. ... ... ... ... ... ... ... you I don't know. uh... But.

some cash flow that would probably be the source of that can you touch on Jana a little bit maybe just a little bit more in America we have a number of different ideas that we're looking at right now that Some things are very, very inexpensive. That's really what we're searching right now.

And we've got three or four or five things that are kind of germinated to the top of the table. And we look at three or four different transactions.

We do have one potential transaction we're working on in which we've issued a letter of intent. And we have a couple of other ideas that should develop over the next 60 days to 90 days. But they'll be conservative. They'll be cash flow generating ideas, if that helps.

Any potential deals on your peak compete with capital?

What I asked you in your first question.

Thanks. Yeah, so we are looking at a lot of different opportunities, particularly in Europe, really not Africa or South America, but particularly in Europe, teams that could be feeder teams or development squads for one of our primary league teams, such as Bournemouth or Hibernian or Lorient. And again, we probably see being very careful. We want to make sure that whatever we buy or buy into, that it cash flows, that it's sustainable. It's not going to be an investment that requires additional capital infusions.

And they need to be teams that are geographically placed. So ... ... Thank you. And then you have to be . . . countries. ... ... ... ... ... ... uh uh uh

Scandinavian teams, Eastern European teams in very stable situations. Probably not a La Liga team or a Serie A team. They're a little bit expensive, but we have opportunities in both of those leagues. So I'd say it's a very patient approach, and we're trying to be careful, and we want to really develop our multi, that will result in a mark to our valuation, which will be a positive business.