CORPORATE PRESENTATION. 1 Equiniti Group plc

Transcription

1 CORPORATE PRESENTATION 1 Equiniti Group plc 1 Equiniti Group plc

2 INTRODUCTION 2 Equiniti Group plc

3 Bn INVESTMENT SOLUTIONS WHAT WE DO EQUINITI PROVIDES SERVICES AND SOLUTIONS THAT SUPPORT COMPLEX AND REGULATED PROCESSES THAT SHARE A SET OF COMMON CAPABILITIES MARKET POS. EST. MARKET SHARE KEY SERVICES FY 2017 REVENUE SHARE 1 REGISTRATION SERVICES #1 50% FTSE 100 REGISTERS Registration Shareholder services Corporate actions and dividends Technology-led EMPLOYEE SERVICES #1 25% Employee benefit schemes Employee share plans 33% m Data-driven INVESTMENT SERVICES #4 7% Retail investor services Executive share dealing White label share dealing International payments Payments Processing PENSION SOLUTIONS INTELLIGENT SOLUTIONS #2 15% #1 PUBLIC SECTOR #4 10% Pension administration to public and private sectors Pension administration software Data analytics Regulated complaints Customer on-boarding Consumer credit Data analytics 34% m 31% m Regulated, Embedded Processes End-user Engagement Source: Management information, management estimates 1. Interest income accounts for 2% ( 10.1m) of 2017 revenue 3 Equiniti Group plc

4 INVESTMENT SOLUTIONS 4 Equiniti Group plc

5 INVESTMENT SOLUTIONS - PRODUCTS AND SERVICES REGISTRATION SERVICES EMPLOYEE SERVICES INVESTMENT SERVICES Registration Share registration service Administration and payment of dividends Management of AGMs, EGMs, other corporate events SAYE (Sharesave) Allows employees to save a portion of their gross salary Option to invest in their company s shares Retail Share Dealing Execution-only trading services Provision of trading services from nominee, ISA, and SIP accounts Bereavement Services Servicing the initial notification of death and account closing process SIP & Executive Share Plans SIP, bespoke executive and discretionary share plans Tax-efficient way of owning a stake in the company through share incentive plans Specialist Share Dealing Executive and Employee share dealing services Certificated and online investment dealing Corporate Actions Management of corporate actions, e.g. rights issues, M&A, corporate activity Flexible Benefits Direct management of flexible benefits plans Provides ability for staff to shape benefit selections International Payments Foreign exchange services for corporates and individuals PROPRIETARY TECHNOLOGY PLATFORM Xanite Payfac 50% OF FTSE 100 AND 40% OF FTSE 350 #1 IN SHARE REGISTRATION 25% MARKET SHARE #1 IN UK EMPLOYEE SHARE PLANS 7% MARKET SHARE #4 EXECUTION ONLY RETAIL SHARE DEALING 5 Equiniti Group plc

6 INVESTMENT SOLUTIONS REVENUE MODEL REGISTRATION SERVICES EMPLOYEE SERVICES INVESTMENT SERVICES Registration Fixed fee Based on No. of shareholders Contract of 3-7 years Fees per transaction for shareholder services SAYE (Sharesave) Interest earned on balances Dealing fee Retail Share Dealing Trading commissions ISA administration fee Inactivity fee Bereavement Services Transactional fee Bereavement BPO corporate fee paid by financial institution SIP & Executive Share Plans Admin fee paid by corporate client Dealing fee paid by employee Specialist Share Dealing Dealing commissions Foreign exchange Custody fee Corporate Actions Project fee Flexible Benefits Contracted Paid by the corporate client International Payments FX margin and transaction fees REVENUE VISIBILITY CONTRACTED REVENUE c. 60% CONTRACTED REVENUE c. 80% TRANSACTIONAL REVENUE c. 80% Investment Solutions Reported FY 2017 m Reported Change % Organic Change % Revenue ( m) Underlying EBITDA ( m) Underlying EBITDA margin (%) Equiniti Group plc

7 INTELLIGENT SOLUTIONS 7 Equiniti Group plc

8 INTELLIGENT SOLUTIONS - PRODUCTS AND SERVICES DESCRIPTION Proprietary technology platforms: Charter Pancredit COMPLAINTS, CASE MANAGEMENT AND REGULATORY SERVICES CREDIT SERVICING DATA ANALYTICS Specialist software, people and process know-how to financial institutions and large corporates for complaints processing and case management Client on-boarding solutions know your customer/anti-money laundering checks Cyber security solutions End-to-end loan servicing through Pancredit platform Risk management and fraud analytics Loan brokerage Services related to asset reunification and identity validation Handling and cleansing of large data for corporates Proprietary software platforms to enable end to end outsourced remediation and lending solutions Emerging challenger in fragmented markets Leverages existing relationships to cross-sell into established customer base Large pipeline of acquisition opportunities KYCnet Client on-boarding and rectification for retail and commercial banks Provides Saas and analysis for European Banks RiskFactor Credit decisioning and risk profiling software for commercial lending Good UK penetration, now winning international deployments Toplevel Computing Provider of large-scale digital case management solutions Growing pipeline in Government and private sector Marketing Source Data analytics and cyber security business Multiple clients in financial services MARKET POSITION #4 COMPLAINTS, CASE MANAGEMENT, AND REGULATORY SERVICES ~10% MARKET SHARE Gateway2Finance Loan brokerage firm with mortgage and consumer credit expertise Now building out capability for financial services BPO Nostrum Provider of end-to-end loan management technology Strengthens our position in the lending sector 8 Equiniti Group plc

9 INTELLIGENT SOLUTIONS REVENUE MODEL REVENUE MODEL REVENUE TYPE COMPLAINTS, CASE MANAGEMENT AND REGULATORY SERVICES Complaints handling software (Invigia): - Upfront licensing fee - Project execution and product implementation fees - Recurring support fees Specialist people: Fees charged per placement of administrators and actuaries at clients on a transactional basis Transactional Contracted CREDIT SERVICING Upfront licensing fee Project execution and product implementation Recurring support / maintenance Project DATA ANALYTICS Service fees charged as % of the value of shares reunited with owners Transaction fees for each customer tracing and screening REVENUE VISIBILITY PROJECT REVENUE c. 70% INTELLIGENT SOLUTIONS Reported FY 2017 m Reported Change % Organic Change % Revenue ( m) Underlying EBITDA ( m) Underlying EBITDA margin (%) Equiniti Group plc

10 PENSION SOLUTIONS 10 Equiniti Group plc

11 PENSION SOLUTIONS - PRODUCTS AND SERVICES DESCRIPTION Proprietary Technology Platform: CONTRACTED PROJECT & SOFTWARE MyCSP Pension Administration: Outsourced administration and software services for a number of public and private sector pension schemes Life & Pensions: Prudential administered schemes outsourced to Equiniti Administering annuity books NHS: Provide software and specialist admin services Data Solutions: Data analytics, complex and bulk calculation services to pension schemes and life insurance companies Pension Software: Customised software to efficiently and effectively manage the rules of all pension schemes Pension administration services to the Civil Service 51% owned JV with government MARKET POSITION Resilient core business Visible, high margin and cash generative Market leadership, brand & reputation Long heritage with services since 1836 High client fidelity Long-standing customer relationships with some of the largest UK companies Supportive macroeconomic and regulatory trends Platform for cross-selling of additional services Strong expansion in add-on services #1 PUBLIC SECTOR #2 THIRD PARTY ADMINISTRATION ~15% MARKET SHARE 11 Equiniti Group plc

12 PENSION SOLUTIONS REVENUE MODEL REVENUE MODEL REVENUE TYPE CONTRACTED Pension Administration and Life & Pensions: Fixed yearly fee for core administration Most contracts include variable components based on members or administrative tasks NHS: Payroll admin revenue based on number of pensioners Software project income charged on a time and materials basis Ancillary income charged as cost + pricing Project Transactional Contracted PROJECT & SOFTWARE MyCSP Data Solutions: Project fees charged on ongoing basis for services provided Pension Software: License fees (perpetual or recurring) Maintenance fees (fixed) Specific fees for implementation / development projects Fixed fee contract with yearly fees agreed upfront Project income charged on a time and materials basis PENSION SOLUTIONS REVENUE VISIBILITY CONTRACTED REVENUE c. 70% Reported 2017 m Reported Change % Organic Change % Revenue ( m) Underlying EBITDA ( m) 24.6 (11.2) Underlying EBITDA margin (%) 17.7 (2.4) 12 Equiniti Group plc

13 FINANCIAL RESULTS 13 Equiniti Group plc

14 DELEVERAGING EARNINGS GROWTH FINANCIAL HIGHLIGHTS Revenue 406.1m +6.1% Underlying EBITDA 98.5m +6.6% Underlying EPS* 16.9 pence +7.0% Underlying dividend** 5.05 pence +6.3% Underlying leverage ** 2.5x (0.2)x Operating cash flow conversion 93% * Restated to reflect the bonus element of the rights issue. ** Restated to remove the impact of the rights issue dilution. 14 Equiniti Group plc

15 A YEAR OF STRONG PROGRESS 100% retention of FTSE clients 140 contract renewals with TCV of 115m Growing UK Registration market share 8 client wins from competitors >70% new listings Pension Solutions Modest revenue growth in a challenging market Intelligent Solutions Strong revenue performance with growth across all service offerings Rising interest rate environment Wells Fargo Shareowner Services completion RESILIENT CHARACTERISTICS ORGANIC PROGRESSION FAVOURABLE OUTLOOK 15 Equiniti Group plc

16 DELIVERING ON OUR FINANCIAL COMMITMENTS REVENUE ( m) Investment Solutions Intelligent Solutions Pension Solutions Interest Income Reported Reported Reported Change % (9.8) Organic Change % Equiniti Group Underlying EBITDA ( m) Investment Solutions Intelligent Solutions Pension Solutions Interest Income Central Costs (12.7) (12.3) (11.2) (9.8) 3.3 Equiniti Group Underlying EBITDA margin (%) Investment Solutions Intelligent Solutions Pension Solutions (2.4) Equiniti Group (9.8) 16 Equiniti Group plc

17 APPENDIX 17 Equiniti Group plc

18 GROUP STRATEGY Grow sales to existing clients Win new B2B Clients Develop & acquire new capabilities Operating leverage Reinvest strong cash flows Organic growth Acquisitive growth Margin growth Continued reinvestment in CAPEX Regulated platforms for FTSE 350 clients 18 Equiniti Group plc

19 OUR TECHNOLOGY FOUR MAIN PLATFORMS Share registration, dividend and shareplan administration Compendia pension administration and payroll Custody and settlement, investment and wealth management Enterprise workflow & Case and complaints management 19 OUR TECHNOLOGY IS AN ENABLER TO DRIVE US FORWARD IN A WORLD INCREASINGLY FOCUSED ON DIGITAL TRADING AND STRATEGIC USE OF DATA 19 Equiniti Group plc

20 ACQUISITIONS THE JOURNEY DAVID VENUS COMPANY SECRETARIAL SERVICES NAT WEST EXEC DEALING EXECUTIVE SHARE DEALING PRISM COSEC COMPANY SECRETARIAL SERVICES PETER EVANS FINANCIAL SERVICES SOFTWARE KILLIK GLOBAL SHARE PLANS EXECUTIVE SHARE PLANS JP MORGAN CDS EXECUTIVE CORPORATE DEALING SERVICES SELFTRADE ONLINE SHARE EXECUTION PLATFORM KYCNET KNOW YOUR CUSTOMER TECHNOLOGY & SERVICES RISKFACTOR FRAUD & DATA ANALYTICS TOPLEVEL DIGITAL SOLUTIONS Well Fargo Shareholder Services SHARE REGISTRATION PROSEARCH ASSET REUNIFICATION SERVICES ICS COMPUTING CASE MANAGEMENT, PAYROLL SERVICES, NEAR-SHORE BPO SERVICES XAFINITY GROUP PENSION SOLUTIONS HAZELL CARR REGULATORY RESOURCES 360 CLINICAL MEDICAL REVALIDATION PLATFORM AND SERVICES INVIGIA COMPLAINTS HANDLING SOFTWARE PANCREDIT LOAN ADMINISTRATION TRANSGLOBAL PAYMENT SOLUTIONS INTERNATIONAL PAYMENTS MARKETING SOURCE DATA ANALYTICS & CYBER SECURITY GATEWAY2FINANCE MORTGAGE AND CONSUMER CREDIT EXPERTISE TECHNOLOGY CAPABILITY REGULATORY CAPABILITY BOTH NOSTRUM END-TO-END LOAN MANAGEMENT TECHNOLOGY 20 Equiniti Group plc