HC2 Holdings, Inc. Q3 2020 Earnings Release Supplement November 9th, 2020 © HC2 HOLDINGS, INC. 2020 Safe Harbor Disclaimers Cautionary Statement Regarding Forward-Looking Statements Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains, and certain oral statements made by our representatives from time to time may contain, forward-looking statements, including, among others, statements related to the expected or potential impact of the novel coronavirus ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission File No. 001-35210 HC2 HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 54-1708481 (State or other jurisdiction of incorporation or organization) 450 Par ...

Financial Performance - HC2's Q2 2020 net revenue was $377 million, compared to $479.2 million in Q2 2019[41] - HC2 reported a net income attributable to HC2 Holdings, Inc of $13.1 million for Q2 2020[41] - HC2's total adjusted capital for the Insurance segment was approximately $360 million as of June 30, 2020[31] - HC2 Holdco debt reduced by $127.6 million YTD, resulting in ~$15 million in annualized interest savings[30] - The Construction segment paid $13.5 million in dividends to HC2, with an additional $4.5 million paid after the quarter ended[30] - The Energy segment fueled 5.3 million gasoline gallon equivalents in Q2 2020, up from 3.8 million in Q2 2019[30] COVID-19 Impact - Claim notifications for Continental Insurance are down 18% relative to the full year 2019 monthly average[23] - Certain new construction project awards are pending release by customers due to COVID-19, potentially decreasing backlog[16] - Non-essential industrial maintenance and repair projects are postponed due to differing customer responses to COVID-19 and volatile oil & gas markets[17] Strategic Initiatives - HC2 completed the sale of a 30% interest in HMN, using the net proceeds to redeem $50.6 million of 11.5% Notes[30] - HC2 is exploring strategic initiatives for DBM Global, including a potential sale or subsidiary refinancing, with net proceeds to reduce HC2 debt[36]

HC2 Holdings, Inc. (HCHC) Q2 2020 Earnings Conference Call August 10, 2020 5:00 PM ET Company Participants Garrett Edson - ICR Wayne Barr - Interim CEO & Director Michael Sena - CFO Conference Call Participants Sarkis Sherbetchyan - B. Riley FBR, Inc. Craig Carlozzi - Longfellow Operator Greetings. Welcome to HC2 Holdings, Inc. Second Quarter 2020 Earnings Call. [Operator Instructions]. I will now turn the conference over to your host, Garrett Edson of ICR. Thank you. You may begin. Garrett Edson Thank you, ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents HC2 Holdings, Inc.'s unaudited condensed consolidated financial statements for Q2 and H1 2020, covering operations, balance sheets, and cash flows with detailed notes [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) HC2 reported Q2 2020 net income of $12.7 million, driven by 'Other income,' while H1 2020 saw a $70.8 million net loss from discontinued operations Q2 & H1 2020 vs 2019 Key Operational Metrics (in millions, except per share amounts) | Metric | Q2 2020 | Q2 2019 | H1 2020 | H1 2019 | | :--- | :--- | :--- | :--- | :--- | | **Net Revenue** | $377.0 | $479.2 | $821.8 | $928.2 | | **Income (Loss) from Operations** | $4.9 | $33.6 | $(21.9) | $59.2 | | **Net Income (Loss) Attributable to Common Stockholders** | $12.7 | $9.0 | $(70.8) | $7.4 | | **Diluted EPS - Continuing Operations** | $0.26 | $0.24 | $(0.56) | $0.28 | | **Diluted EPS - Net Income (Loss)** | $0.26 | $0.12 | $(1.53) | $0.08 | - A significant gain of **$64.0 million** in 'Other income (loss)' for Q2 2020 was a primary driver of profitability, contrasting with a **$4.8 million** loss in the same period of 2019[10](index=10&type=chunk) - A loss from discontinued operations of **$60.0 million** in the first six months of 2020, which includes a **$39.3 million** loss on disposal, was the main contributor to the significant net loss for the period[10](index=10&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2020, HC2's total assets decreased to $6.63 billion and liabilities to $6.25 billion, primarily due to asset dispositions and debt reduction Balance Sheet Summary (in millions) | Account | June 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | $6,633.3 | $6,958.3 | | Assets held for sale | $0 | $323.3 | | **Total Liabilities** | $6,249.4 | $6,493.1 | | Debt obligations | $633.8 | $773.6 | | **Total HC2 Holdings, Inc. Stockholders' Equity** | $319.3 | $349.8 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In H1 2020, operating cash flow increased to $47.8 million, investing activities provided $138.9 million from dispositions, and financing used $222.6 million for debt payments Six Months Ended June 30, Cash Flow Summary (in millions) | Activity | 2020 | 2019 | | :--- | :--- | :--- | | **Cash provided by operating activities** | $47.8 | $36.8 | | **Cash provided by (used in) investing activities** | $138.9 | $(154.6) | | **Cash (used in) provided by financing activities** | $(222.6) | $69.0 | | **Net change in cash, cash equivalents and restricted cash** | $(25.1) | $(48.6) | - Investing activities were significantly impacted by **$144.0 million** in cash received from dispositions and **$85.5 million** from the sale of equity method investments in H1 2020[24](index=24&type=chunk) - Financing activities in H1 2020 included **$157.4 million** in principal payments on debt obligations and a **$52.1 million** cash outflow from transactions with noncontrolling interests[24](index=24&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies and financial results, covering diversified segments, the GMSL sale, asset sales, debt restructuring, and COVID-19 impacts [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=60&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2020 revenue decline to $377.0 million due to segment weakness and COVID-19 impacts, strategic asset sales for debt reduction, and recent executive changes - The company is a diversified holding company with seven reportable segments: Construction, Energy, Telecommunications, Insurance, Life Sciences, Broadcasting, and Other[195](index=195&type=chunk) - The COVID-19 pandemic has significantly impacted operations, particularly in the Construction segment, which incurred **$8.4 million** in related costs during Q2 2020 for safety measures and inefficiencies[207](index=207&type=chunk) - The company is actively managing its capital structure, using proceeds from the sales of GMSL and HMN to repay **$15.0 million** of its revolving credit facility and a total of **$127.5 million** of its Senior Secured Notes in 2020[211](index=211&type=chunk)[212](index=212&type=chunk) Adjusted EBITDA by Segment (in millions) | Segment | Q2 2020 | Q2 2019 | | :--- | :--- | :--- | | **Total Core Operating Subsidiaries** | **$23.5** | **$25.2** | | Construction | $19.1 | $23.1 | | Energy | $4.2 | $1.3 | | Telecommunications | $0.2 | $0.8 | | **Total Early Stage and Other** | **$(4.7)** | **$4.7** | | **Non-Operating Corporate** | **$(3.6)** | **$(4.4)** | | **Total Adjusted EBITDA** | **$15.2** | **$25.5** | [Controls and Procedures](index=85&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls were effective as of June 30, 2020, with no material changes to internal control over financial reporting during the quarter - As of June 30, 2020, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[353](index=353&type=chunk) - No changes occurred during the fiscal quarter ended June 30, 2020, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[354](index=354&type=chunk) [PART II. OTHER INFORMATION](index=86&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=86&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management believes none will materially affect financial statements, with details in Note 16 - The company states that it does not believe any pending legal proceedings will have a material adverse effect on its Condensed Consolidated Financial Statements[358](index=358&type=chunk) - For detailed information on legal matters, the report refers to Note 16, which discusses the DBMG Class Action lawsuit and a stockholder litigation case[358](index=358&type=chunk)[145](index=145&type=chunk)[153](index=153&type=chunk) [Risk Factors](index=86&type=section&id=Item%201A.%20Risk%20Factors) This section highlights material risks, primarily the widespread impacts of the COVID-19 pandemic across all segments, and risks from recent changes to the Board and executive management - The COVID-19 pandemic is identified as a major risk, potentially causing material adverse impacts on business, operating results, and financial condition across all segments[360](index=360&type=chunk) - The Construction segment (DBMG) faces risks of project delays and increased costs due to COVID-19, having already incurred **$8.8 million** in such costs in H1 2020[367](index=367&type=chunk) - Recent changes to the Board of Directors and executive management, including the departure of the former CEO and the search for a permanent successor, are cited as risks that could disrupt business and strategic direction[365](index=365&type=chunk)[366](index=366&type=chunk) [Other Information](index=88&type=section&id=Item%205.%20Other%20Information) On August 7, 2020, the company finalized an employment agreement with interim CEO Wayne Barr, Jr., detailing his compensation and severance - The company entered into an employment agreement with interim CEO Wayne Barr, Jr. on August 7, 2020[379](index=379&type=chunk) - Mr. Barr's compensation includes a **$360,000** annual base salary, a 2020 bonus of at least **$180,000** contingent on performance, and a **$90,000** restricted stock award[380](index=380&type=chunk)[381](index=381&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 2020 (Registrant's telephone number, including area code) _____________________________________________________________________________________________________________________ | Securities registered pursuant to Section 12(b) of the Act: | | | | --- | --- | --- | | Title of each class | Trading Sy ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission File No. 001-35210 HC2 HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 54-1708481 (State or other jurisdiction of incorporation or organization) 450 Park Avenue, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission File No. 001-35210 HC2 HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 54-1708481 (State or other jurisdiction of incorporation or organization) 450 Par ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission File No. 001-35210 HC2 HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 54-1708481 (State or other jurisdiction of incorporation or organization) 450 Park Ave ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission File No. 001-35210 HC2 HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 54-1708481 (State or other jurisdiction of incorporation or organization) 450 Park Av ...