Investor Presentation
①Low-cyclical and stable market demand...
Stable growth supported by structural long-term drivers within the PDR segment
KEY GROWTH DRIVERS IN THE EUROPEAN PDR MARKET
Insurance customers (IC's) are price focused but also other
criteria matter - the balancing between "premium" and
"commodity" likely to prevail, depending on IC preferences and
innovation pace
+0-1% >>>
+0-1%
(0-1)%>
Incident rate and magnitude
+1-2%>
Price of services
Total restorable property value + Ability to pass through
Number of households/
commercial properties
+
Value of households/
commercial properties
wage inflation
= Competitive pressure
=IC purchasing behaviour
+ Major events
PDR firms increasing
+proportion of claim
served
Social habits
Modernization of
buildings, incl. smart
detection technology
Propensity to restore
Insurance coverage
Changes in deductible
levels
Restoration service vs.
cash settlements
ADDRESSABLE PDR MARKET VALUE EUR ~5.2bn
EURbn
Water damages
(%09~)
Fire damages
(~40%)
3.9
1.3
1.6
0.5
2.1
Polygon is
active in all
areas of the
addressable
2.3
market
0.8
3.1
Property stock & value growth
The total installed base of restorable
property and consequently the
potential for damage is impacted to
some extent by new builds
Long term increase in real estate value
impacts the value of insurance claims
related to damage
Increasing GDP¹) drives real estate and
environmental services even further
ESTIMATED
DRIVERS OF PDR MARKET VALUE GROWTH - MARKET GROWTH EXPECTED AT 1-3% P.A.
Ageing building stock
Building stock is ageing which
increases the risk of damages from
e.g. pipe bursts and electrical fires
Mitigation of accidents and
reconstruction from damages to the
ageing building stock create demand
for preventive services
Growing share of PDR coverage
PDR suppliers are taking a larger
share of the total market,
reconstruction is increasingly
included into the PDR scope
Growth in damages to properties
from water and fire drives the need
and volume of reconstruction
projects
Residential
damages (~75%)
Commercial
damages (~25%)
Increasing no. of major events
The size and rate of restoration
required from significant incidents
are driven by the increasing number
and magnitude of major weather
events
Global warming increases the
frequency of heavy rains and
lightning causing floods and fires
Note: 1) GDP
Gross Domestic Product
Source: Company information, Third party provider
SUPPORTING MATERIALS | POLYGON 30View entire presentation