30 JUNE 2016 DISCLAIMER This presentation may contain forward - - PowerPoint PPT Presentation

30 JUNE 2016 RESULTS FOR SIX MONTHS ENDED

| Equiniti Group plc 2016 2

This presentation may contain ‘forward-looking statements’ with respect to certain of the Group’s plans and its current goals and expectations relating to its future financial performance condition, performance, results, strategic initiatives and objectives. Generally, words such as “may”, “could”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “aim”, “outlook”, “believe”, “plan”, “seek”, “continue” or similar expressions identify ‘forward-looking statements’. These forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond the Group’s control, including amongst

• ther

things, UK domestic and global economic business conditions, market-related risks such as fluctuation in interest rates, the policies and actions

• f

regulatory authorities, the impact of competition, inflation, deflation, the timing impact and

• ther

uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation or regulations in the jurisdictions in which the Group operates. As a result, the Group’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Group’s forward-looking statements. Forward-looking statements in this presentation are currently only as of the date on which such statements are made. The Group undertakes no

• bligation

to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Nothing in the presentation should be construed as a profit forecast.

DISCLAIMER

Agenda 01

INTRODUCTION & KEY HIGHLIGHTS

GUY WAKELEY

02

FINANCIAL RESULTS

JOHN STIER

03

OPERATIONAL & STRATEGIC REVIEW

GUY WAKELEY

04

SUMMARY & OUTLOOK

GUY WAKELEY

| Equiniti Group plc 2016 3

05

Q & A

Key Highlights

REVENUE £191.9m +5.9% ORGANIC GROWTH 4.3% Full year guidance maintained EBITDA £41.2m +7.0% FREE CASH FLOW TO EQUITY HOLDERS £18.5m + 134.2% LEVERAGE 2.9x Reduced from proforma 3.0x at 31.12.15 Dividend 1.64p In line with stated dividend policy

| Equiniti Group plc 2016 5

H1 2016 KEY HIGHLIGHTS – DELIVERING ON OUR COMMITMENTS

REVENUE VISIBILITY SUPPORTS MAINTENANCE OF FULL YEAR GUIDANCE

| Equiniti Group plc 2016 6

↓ Slowing in Pensions & MyCSP, although structural growth remains ↓ Market sentiment suppression of dealing volumes ↓ Uncertain balance between IPOs and M&A activity

POSITIVES CHALLENGES

H1 2016 – KEY TRENDS

↑ Compliance and regulation continue to drive growth ↑ Strong demand in employee share plans and international payments ↑ Corporate activity, e.g. Royal Dutch Shell takeover of BG Group ↑ Integration of acquisitions ↑ Further progress in offshoring

Business fundamentals remain sound

BUSINESS FUNDAMENTALS REMAIN SOUND

| Equiniti Group plc 2016 7

OPPORTUNITIES

BREXIT PERSPECTIVES

↑ Inbound UK M&A activity ↑ Increased demand for Reg Tech solutions ↑ Government focus on personal savings agenda INCREASED UNCERTAINTY… BUT… FUNDAMENTALS STRONG WITH OVERALL GROWTH AND GUIDANCE FOR FY 2016 REMAINS UNCHANGED ↑ Sole UK focus ↑ Non-discretionary long-term revenue model ↑ Focus on complex regulated markets ↑ Increased order intake from technology services ↑ Small exposure to government

DEFENCES CHALLENGES

↓ Interest rate reduction

• Largely hedged
• 25bps drop has £2-3m impact

↓ Retail investor sentiment

• Already in run-rate
• Some uptick evident

↓ New IPO Issuance

• No material impact in year
• Market share increased

| Equiniti Group plc 2016 8

Financial Results

| Equiniti Group plc 2016 9

Reported H1 2016 Reported* H1 2015 Reported Change % Organic Change % REVENUE (£m) Investment Solutions Intelligent Solutions Pension Solutions Interest Income 62.1 58.4 65.6 5.8 56.2 49.5 72.0 3.5 10.5 18.0 (8.9) 65.7 8.0 15.0 (8.9) Equiniti Group 191.9 181.2 5.9 4.3 EBITDA prior to exceptional items (£m) Investment Solutions Intelligent Solutions Pension Solutions Interest Income Central Costs 18.1 12.8 11.0 5.8 (6.5) 15.6 10.3 14.0 3.5 (4.9) 16.0 24.3 (21.4) 65.7 32.7 Equiniti Group 41.2 38.5 7.0 EBITDA margin prior to exceptional items (%) Investment Solutions Intelligent Solutions Pension Solutions 29.1 21.9 16.8 27.8 20.8 19.4 1.3 1.1 (2.6) Equiniti Group 21.5 21.2 0.3

*Company Secretariat business transferred from Investment Solutions to Intelligent Solutions (£1.6m revenue, £0.1m EBITDA)

DELIVERING ON OUR FINANCIAL COMMITMENTS

| Equiniti Group plc 2016 10

Reported H1 2016 Reported* H1 2015 Reported Change % Organic Change % Revenue (£m) 62.1 56.2 10.5 8.0 EBITDA prior to exceptional items (£m) 18.1 15.6 16.0 EBITDA margin prior to exceptional items (%) 29.1 27.8 1.3

• Revenue and EBITDA progress driven by strong organic growth
• Margins progressed due to corporate actions, project work and offshoring progress
• Corporate actions revenue increased to £5.6m (2015: £1.3m); delivered majority of FY 2016 target
• Good performance across all service lines

– Registration Services – New mandates, e.g. Metro Bank, Joules, Time Out – Investment Services – Strong growth in international payments offset by slowing trading volumes – Employee Services – Continued growth in SAYE and SIP schemes

*Company Secretariat business transferred from Investment Solutions to Intelligent Solutions (£1.6m revenue, £0.1m EBITDA)

INVESTMENT SOLUTIONS

| Equiniti Group plc 2016 11

Reported H1 2016 Reported* H1 2015 Reported Change % Organic Change % Revenue (£m) 58.4 49.5 18.0 15.0 EBITDA prior to exceptional items (£m) 12.8 10.3 24.3 EBITDA margin prior to exceptional items (%) 21.9 20.8 1.1

• Strong organic revenue growth driven by increase in remediation services and technology sales
• Continued growth in software business and focus on cost base, strengthening margins
• Decline in PPI more than offset by growth in rest of business underpinned by regulation

*Company Secretariat business transferred from Investment Solutions to Intelligent Solutions (£1.6m revenue, £0.1m EBITDA)

INTELLIGENT SOLUTIONS

| Equiniti Group plc 2016 12

Reported H1 2016 Reported H1 2015 Reported Change % Organic Change % Revenue (£m) 65.6 72.0 (8.9) (8.9) EBITDA prior to exceptional items (£m) 11.0 14.0 (21.4) EBITDA margin prior to exceptional items (%) 16.8 19.4 (2.6)

• Revenue and EBITDA declined as expected due to MyCSP concluding the roll-out of software to the

Civil Service

• New client wins, e.g. first generation life & pensions outsourcing contract with Retirement Advantage

PENSION SOLUTIONS

| Equiniti Group plc 2016 13

£m Reported H1 2016 Reported H1 2015 Exceptional Items (2.4) (4.5) Interest Income 5.8 3.5 Central Costs (6.5) (4.9)

• Continued reduction in exceptional items in line with guidance – broadly halved in the period

– Costs incurred as we conclude the roll-out of our offshore model and build scale in Chennai

• Interest revenue increased due to:

– Higher cash balances – Benefit of fixed rates until August 2018, underpinning ⅔ of interest receivable

• Higher central costs due to:

– Plc infrastructure and share plans – Investment in growth, particularly our sales function – Strengthening our compliance and risk functions

EXCEPTIONAL ITEMS/INTEREST INCOME/CENTRAL COSTS

| Equiniti Group plc 2016 14

£m H1 2016 H1 2015 Change % Revenue

191.9 181.2 5.9

EBITDA prior to exceptional items Depreciation Amortisation – software Net finance expense - proforma

41.2 (2.5) (8.3) (6.5) 38.5 (2.1) (8.8) (6.4) 7.0 19.0 (5.7) 1.6

Normalised PBT Cash tax of 15%

23.9 (3.6) 21.2 (3.2) 12.7 12.5

Normalised PAT Non controlling interest

20.3 (0.9) 18.0 (3.2) 12.8 (71.9)

Normalised profit attributable to ordinary shareholders

19.4 14.8 31.1

Normalised earnings per share (pence)

6.5 4.9 32.7

Proforma results adjust for IPO related costs and our ongoing funding structure Normalised profit excludes exceptional items and amortisation of acquisition related intangible assets and includes finance expenses on a proforma basis

GROUP NORMALISED PROFIT

| Equiniti Group plc 2016 15

• Interest payable rates fixed at 3% to October 2018

£m Reported H1 2016 Reported H1 2015 EBITDA (prior to exceptional items) Working capital movement 41.2 (3.0) 38.5 1.1 Free cash flow Cash flow conversion (%) Exceptional items Capital expenditure Net interest costs Taxes paid Other 38.2 93 (2.8) (10.5) (5.0) (1.2) (0.2) 39.6 103 (5.5) (8.3) (16.7) (0.9) (0.3) Free cash flow to equity holders 18.5 7.9 Net change in borrowings IPO related costs Investment in current year acquisitions Payment of deferred consideration Dividends paid (6.0) (18.3) (12.1) (0.4) (5.3) 15.0

• (17.6)

(3.7) (2.0) Net cash movement (23.6) (0.4)

CASH FLOW STATEMENT

| Equiniti Group plc 2016 16

• Continued reduction in leverage
• Net debt/EBITDA at 2.9x at 30 June 2016 (proforma 3.0x at 31 December 2015) reflecting strong cash

flow

• Deleveraging progress in H1 slowed by

– Seasonality of business – Payment of £18.3m of IPO costs in H1 2016 – £12.5m spent on acquisitions

• Moving towards our medium term net debt/EBITDA target 2.0 – 2.5x

£m Reported H1 2016 Proforma FY 2015 Reported H1 2015

Cash and cash equivalents (52.9) (58.2) (29.6) Senior debt 250.0 250.0 440.0 Revolving credit facility 64.0 70.0 60.5 Other 0.6 0.9 0.4 Net debt 261.7 262.7 471.3 Net debt/EBITDA 2.9x 3.0x 5.5x

LEVERAGE

Operational & strategic review

| Equiniti Group plc 2016 18

GROUP STRATEGY

1 2 3 4 5

Grow sales to existing clients Win new B2B Clients Develop & acquire new capabilities Operating leverage Reinvest strong cash flows

5% organic growth 2% acquisitive growth 25 BPS per annum c5% revenue reinvested in CAPEX

Regulated platforms for FTSE 350 clients

| Equiniti Group plc 2016 19

REGULATION & COMPLIANCE DIGITISATION CLIENT COST PRESSURE

• Challenges around anti money

laundering and know your customer

• Increasing remediation,

particularly financial services

• Pensions regulation changes
• Savings - Increase in SAYE limits
• Increased demand for online and

mobile

• Importance of customer experience
• Pressure of shorter product life

cycles

• Burden of legacy technology
• Low interest rates
• Low GDP growth
• Pressure to reduce operating costs

DRIVERS OF GROWTH

DRIVERS FOR SMART TECHNOLOGY SOLUTIONS

| Equiniti Group plc 2016 20

• Major client retention remains at 100%
• Revenue from key accounts increased by 12%
• Revenue visibility >90% for 2016 and >80% for 2017
• Renewed/extended relationships

– Barclays, Cemex, Royal Dutch Shell, Severn Trent, Telent, Tesco

• Complaints management software

– HSBC, TSB

• Asset reunification

– Santander, Royal Dutch Shell

• New mandates

– Metro Bank, Joules, Time Out, Draper Esprit, Ascential

• New share registration clients, e.g.

– Domino’s Pizza

• First generation life & pensions outsourcing contract

– Retirement Advantage

DELIVERING RESULTS 1

Grow sales to existing clients

2

Win new B2B Clients

| Equiniti Group plc 2016 21

• Cash flow conversion of 93%
• Continued investment in the business with capex at 5.5% of revenue
• Continued reduction in leverage due to strong cash conversion
• Utilisation of tax assets
• Interest charge fixed to 2018
• Increased scale in Chennai

– c550 people from c390 at 31.12.15 – Supporting IT, BPO, Sales & Marketing, Finance, HR and Payroll

• Continued focus on procurement and property rationalisation
• RiskFactor (HSBC)
• KYCnet (Deutsche Bank)
• First Digital AGM (Jimmy Choo)
• First employee engagement via augmented reality (DS Smith)

DELIVERING RESULTS 3 4 5

Develop & acquire new capabilities Operating leverage Reinvest strong cash flows

PROGRESSIVE DIVIDEND POLICY DISTRIBUTING 30% OF NORMALISED PROFIT TO ORDINARY SHAREHOLDERS

| Equiniti Group plc 2016 22

• UK based provider of credit

decisioning and risk profiling software for commercial lending

• Deep client relationships
• Broad applicability across lending

products

• Complements our other ‘conduct

risk’ capabilities within the Intelligent Solutions division

• Cutting edge workflow

technology for on-boarding and monitoring of commercial and retail clients

• Multi-tenanted technology
• perates as a SaaS, on-premise
• r managed service
• Broad applicability across

financial services as well as retail, travel, legal services Q1 2016 TWO ACQUISITIONS IN FINANCIAL SERVICES TECHNOLOGY

Fully integrated and contributing to growth

Q3 2016 ADDING TO TECHNOLOGICAL CAPABILITIES

Acquisition in Intelligent Solutions

• Digital services technology provider
• Provider of large-scale digital case

management solutions

• Clients include HM Passport Office, Ofsted

and Heritage Lottery fund

• Digitisation of customer services provides

cross-sell opportunity to existing clients

NEW CAPABILITIES IN COMPLIANCE FOR FINANCIAL SERVICES

CONTRIBUTES TO GUIDANCE OF ACQUISITION GROWTH OF 2% PER ANNUM

| Equiniti Group plc 2016 23

FOR EQUINITI WEALTH SOLUTIONS – JUNE 2016 TECHNOLOGY INNOVATION OF THE YEAR – MAY 2016 BEST SHARE REGISTRAR – APRIL 2016 No 1. PENSION ADMINISTRATION PLATFORM BY IN-HOUSE TEAMS – MARCH 2016 PENSIONS TECHNOLOGY FIRM OF THE YEAR – FEBRUARY 2016

AWARD-WINNING TECHNOLOGY

Summary & Outlook

SUMMARY & OUTLOOK

• Strong set of results with guidance maintained
• Revenue and margin progression
• Strong cash conversion drives further deleveraging
• Well placed to deliver in line with full year expectations

| Equiniti Group plc 2016 26

Q&A

| Equiniti Group plc 2016 26

Equiniti is a leading provider of technology and solutions for complex and regulated administration, serving blue-chip enterprises and public sector organisations

Appendix

27 | Equiniti Group plc 2016

FY 2015 REVENUE SHARE1

INVESTMENT SOLUTIONS REGISTRATION SERVICES  Registration  Shareholder services  Corporate actions and dividends EMPLOYEE SERVICES  Employee benefit schemes  Employee share plans INVESTMENT SERVICES  Retail investor services  Executive share dealing  Wealth management solutions  White label share dealing  International payments

PENSION SOLUTIONS  Pension administration to public and private sectors  Pension administration software  Data analytics INTELLIGENT SOLUTIONS  Loan administration  Enterprise workflow & case management  Data analytics

Market Pos.

27% 38% 32%

#1

#1

#4

#2

• EST. Market

SHARE 50% 25% 7% 15%

#1 #4

10% Key services

FTSE 100 REGISTERS

PUBLIC SECTOR

COMPLAINTS, CASE MANAGEMENT, AND REGULATORY SERVICES

Technology-led End-user Engagement Data-driven Payments Processing Regulated, Embedded Processes

Source: Management information, management estimates

1 Interest income accounts for 3% of FY 2015 revenue

28 | Equiniti Group plc 2016

WHAT WE DO

| Equiniti Group plc 2016 29

SCALE PROVIDER OF SOLUTIONS TO LARGE CORPORATES AND GOVERNMENT, FACILITATING MIDDLE-OFFICE INTERACTIONS WITH THEIR EMPLOYEES, SHAREHOLDERS, CUSTOMERS AND CITIZENS

Source: Management information

1Marketing rights to c. 4m further known individuals through Corporate Sponsored Nominee and Club Together

OUR KEY ASSETS

Thank You