August 9, 2016
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This presentation contains forward-looking information within the meaning of applicable Canadian securities legislation, including management’s expectations and certain assumptions with respect to the registry services and products, its competitive landscape, economic conditions in Canada and in particular, Saskatchewan, Ontario and Quebec, real estate market in Saskatchewan, economic impact of energy and resource sectors, transaction volumes, statements regarding the future financial position or results of ISC, customer growth and diversification, dividend expectations, creation of shareholder value, growth opportunities, development and completion of projects, impact of cost management efforts, capital and operating expectations, real gross domestic product, changes in high-value property registrations, changes in motor vehicle sales volume, steady growth of active business entities, consolidated EBITDA margin, income taxes, our ability to attract and retain skilled staff, the compensation and benefits that will be paid or provided to employees and our level of customer service, as well as goodwill and intangibles are material factors in preparing forward-looking statements. In addition, the words ‘‘may’’, ‘‘will’’, ‘‘would’’, ‘‘should’’, ‘‘could’’, ‘‘expect’’, ‘‘plan’’, ‘‘intend’’, ‘‘trend’’, ‘‘indicate’’, ‘‘anticipate’’, ‘‘believe’’, ‘‘estimate’’, ‘‘predict’’, ‘‘project’’, ‘‘targets’’, ‘‘strive’’, ‘‘strategy’’, ‘‘continue’’, ‘‘likely’’ or ‘‘potential’’ or the negative or other variations of these words or other comparable words or phrases are intended to identify forward-looking statements. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. Although ISC believes the forward-looking information contained in this release is based upon reasonable assumptions, readers are cautioned not to place undue reliance on forward-looking information as it is inherently uncertain and no assurance can be given that the expectations reflected in such information will prove to be correct. Many factors and risks could cause our actual results to differ materially from those expressed or implied by forward-looking information including those detailed in ISC’s Annual Information Form, dated March 15, 2016, ISC’s Consolidated Financial Statements and Notes and Management’s Discussion and Analysis for the quarter ended June 30, 2016 as well as other documents filed by ISC with Canadian securities regulators through SEDAR at www.sedar.com from time to time. Investors and others should carefully consider the above-noted factors and risks and other uncertainties and potential events. The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities legislation, ISC assumes no obligation to update or revise such information to reflect new events or circumstances. 3
Transformed from Crown corporation to publicly traded business corporation in July 2013 to provide a better business model for the Government of Saskatchewan and customers (Government retained 31% shareholding) Saskatchewan’s exclusive Provide customers with safe, secure services provider of key search and necessary to transact property, corporate and registry information services personal property searches and registrations Solid balance sheet and cash flow generation Acquisition of ESC Corporate Services Ltd. in October 2015 ~ 4.8 % Dividend yield Ticker Symbol TSX: ISV TSX: ISV 4
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Information Services Corporation (ISC) is the exclusive provider of key search and registry information for the Government of Saskatchewan. Land Corporate Personal Property Registry Registry Registry Law firms Municipalities Real estate agents Government and Customers private businesses Surveyors Home builders +more TSX: ISV 6
Governments look for opportunities to offer products and services through the private sector when the cost is reasonable. It allows governments to focus on their priority areas and shift costs of maintaining and upgrading technology to the private sector. ISC is looking to build on its track record by translating its experience and success into new markets and products. TSX: ISV 7
Full-service registry management Process customer requests Analyze, interpret and apply existing policy Maintain system integrity Government Customer through record keeping and upgrades • ISC manages and delivers registry • ISC acts as the customer interface Initiate product development service operations. and planning either online, in person or by telephone. • Government retains oversight, • Ongoing customer support, training and traditional public policy consultation through customer forums accountability and data ownership. and committees. TSX: ISV 8
A wholly owned subsidiary of ISC ESC is a diversified supplier of corporate services in Ontario and Quebec: • Customers: Financial services institutions, law firms, corporations • Services: searches and registrations, Know-Your-Customer services, corporate supplies and accessories TSX: ISV 9
Governments, legal firms and financial institutions are looking to find cost savings and focus on their core business without compromising service quality. Improved workflows and automated processes help meet requirements and reduce potential business risk for clients. ISC has the know-how, processes, technology and proven experience to manage data authentication and security. TSX: ISV 10
We operate in two reportable segments defined by their primary type of service offering. • ESC - Search and Registration • Land Registry (includes Land Services Titles Registry, Land Surveys Directory and Geomatics) • ESC - "Know-Your-Customer" Services • Personal Property Registry • ESC - Corporate Supplies and • Corporate Registry Accessories • Common Business Identifier and Business Registrations Saskatchewan • Saskatchewan Asbestos Registry TSX: ISV 11
Individuals or businesses who directly benefit from ISC registries: Municipalities Real estate Home builders Insurance Car dealers agents companies Intermediaries who manage relationships with end users but are typically the beneficiary of our registries: Law firms Surveyors Engineers TSX: ISV 12
Law firms Financial Institutions Legal Professionals TSX: ISV 13
Transaction Service Revenue Type* Flat fees Online or in person Searches (standard searches, e.g. $11.00 Customized per land title search) Value-based fees (0.3% of the value of the land title) Registrations Online or in person Flat fees (other registries) Online or in person Maintenance and Flat or negotiated fees related services Customized * For a full list of our fees, go to www.isc.ca TSX: ISV 14
Transaction Service Revenue Type* Search and registration Online or in person Flat fees Know-Your-Customer In person Flat fees Online or in person Corporate supplies and Per unit fees accessories Customized * For a full list of our fees, go to www.eservicecorp.ca/index.php/pricing-turnaround-times TSX: ISV 15
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Total revenue for year ended December 31, (CAD$ millions) 2013 2014 2015 Land Titles Registry Personal Property Registry Corporate Registry Geomatics Land Surveys Directory Services TSX: ISV 17
Consolidated EBITDA 1 and Consolidated Adjusted EBITDA 1 for the year ended December 31, (CAD$ millions) EBITDA Adjusted EBITDA 2013 2014 2015 1 EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin and free cash flow are not recognized as measures under IFRS and do not have a standardized meaning prescribed by IFRS and therefore, are not comparable to similar measures by other corporations. See section name “Non - IFRS Measures” in the Management’s Discussion & Analysis for the period ended December 31, 2015. TSX: ISV 18
$ 24.7M Total revenue 41.7% EBITDA margin $ 0.38 EPS (basic share) TSX: ISV 19
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