Capital Markets Day 22 November 2016 1 TRADING UPDATE 2 KEY - - PowerPoint PPT Presentation

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Capital Markets Day 22 November 2016 1 TRADING UPDATE 2 KEY - - PowerPoint PPT Presentation

Dec 17, 2022 466 likes •823 views

Capital Markets Day 22 November 2016 1 TRADING UPDATE 2 KEY ASSETS 3 OPERATING AT SCALE FINANCIAL SERVICES 4 DISRUPTION TECHNOLOGY 5 KYC | COMPLAINTS | SHAREPLANS 6 M&A 7 WORKING IN PARTNERSHIP PRESENTERS INTRODUCTIONS

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22 November 2016

Capital Markets Day

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KYC | COMPLAINTS | SHAREPLANS

KEY ASSETS OPERATING AT SCALE FINANCIAL SERVICES DISRUPTION TRADING UPDATE M&A TECHNOLOGY WORKING IN PARTNERSHIP

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PRESENTERS

INTRODUCTIONS

| Equiniti Group plc 2016 3

AMY MADDEN Director of Marketing and Communications PHIL AINSLEY Managing Director, Employee Services JAMES BROWN Director, Corporate Development LIAM MCGRATH Chief Operating Officer ADAM GREEN Chief Risk Officer ANDY EDLER Business Development Director, Intelligent Solutions SCOTT SHIELDS Managing Director, Enterprise Workflow PAUL MATTHEWS Executive Director, Corporate Markets GUY WAKELEY Chief Executive Officer

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| Equiniti Group plc 2016

DELIVERING IN LINE WITH MARKET EXPECTATIONS

TRADING UPDATE

4

  • New clients

– Admiral – Biffa – GoCompare – Retirement Advantage

  • Renewed/extended relationships

– All of our FTSE100 clients – Estate and probate administration service with a leading UK bank – KYC and customer onboarding services with two international banks

New Clients Existing Clients

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| Equiniti Group plc 2016 5

INTRODUCTION

EQUINITI – KEY ASSETS

RELATIONSHIPS SCALE TECHNOLOGY PEOPLE

02 03 04 01

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RELATIONSHIPS

01

SCALE TECHNOLOGY PEOPLE

02 03 04

| Equiniti Group plc 2016 6

RELATIONSHIPS

Depth

typically > 10 services

Length

On average 28 years

Breadth

More than 70 of the FTSE100 RELATIONSHIPS

01

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| Equiniti Group plc 2016 7

SCALE

£200bn of payments More than The largest pension and share registers in Europe mobilise tasks The ability to at short notice at the largest scale processed in 2016 SCALE

02

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| Equiniti Group plc 2016 8

TECHNOLOGY

30 proprietary platforms on UK-

  • wned infrastructure

More than data and payments Processor of to entry and exit Significant barriers at Amazon scale TECHNOLOGY

03

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PEOPLE

PEOPLE

04

4,500 people with significant

  • ffshore capability

sophisticated, high margin services Providing specialism experience diversity

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03 Operating at scale

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| Equiniti Group plc 2016 11

ROYAL MAIL GROUP

A NEW RELATIONSHIP

2013 2013 2016

IPO Statistics

  • 1. Largest online offer
  • 2. 250k applications received
  • nline in 48 hours
  • 3. £1.1bn returned to investors

via debit cards in 4 hours

Registrars & Share Plans

  • 1. Newly created FTSE100

company

  • 2. >400k shareholders
  • 3. Share plans to 150k

employees

Maturity

  • 1. Net £350m shares
  • 2. 125k eligible share

dealing instructions

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2016

| Equiniti Group plc 2016 12

ROYAL MAIL GROUP

A NEW RELATIONSHIP

IVR SMS Portal

For 125k postal workers Building end-user customer journeys

2016

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| Equiniti Group plc 2016

CORPORATE ACTIONS AT SCALE

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  • Acquisition of BG Group by RDS
  • Processed £13bn of payments
  • Despatched 500k cheques
  • Acquisition of ARM by Softbank
  • Processed £24bn of payments
  • >3k cash messages
  • Acquisition of SABMiller

by AB InBev

  • Processed £39bn of payments
  • Largest Crest payment in UK

history

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04 Disruption in Financial Services

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SLIDE 15 Connected insurance eg wearables Niche specialised products Alternative lending Strategic role of data Streamlined infrastructure Automation of high-value activities Cashless world Smarter, faster machines New market platforms Process externalisation eg cloud computing Reduced intermediation Customer empowerment Crowdfunding Empowered investors eg social trading Shifting customer preferences eg virtual technologies Insurance disaggregation Emerging payment rails eg crypto current

| Equiniti Group plc 2016

SIX CLUSTERS OF FINANCIAL SERVICES INNOVATION

WHEEL OF FINANCIAL DISRUPTION

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Source: World Economic Forum 2015

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| Equiniti Group plc 2016

REGULATION

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167

Compliance officers must assimilate

  • n average 167 regulatory alerts per day.

JP Morgan CEO Jamie Dimon wrote in a letter to shareholders that the firm had spent £1.6bn on their Compliance Department, employing 13,000 people.

£1bn

Over 80 pieces of legislation have been passed in the UK since the financial crisis.

80

HSBC, Deutsche Bank and JPMorgan, spend

  • ver S1bn a year each on regulatory compliance

and controls.

(fintechFT, 2016) (British Banking Association) (Thomson Reuters, 2016) (IT ProPortal, 2016)

13,000

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| Equiniti Group plc 2016

REGULATION

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£40m

The average bank spends £40m per year on KYC compliance with some banks spending up to £300m annually on KYC (Know Your Customer) Compliance and Customer Due Diligence (CDD). 1,997,247 complaints were opened by financial services organisations in Q2, 2015.

$1-2tn

Global spending on AML compliance is set to grow to more than $8 billion by 2017 (a compounded annual growth rate of almost 9%).

$8bn

Global money laundering transactions are estimated at 2 to 5% of global GDP, or roughly U.S. $1-2 trillion annually.

(Global Economic Crime Survey 2016, PwC) (Wealthlnsight) (IT ProPortal, 2016) (Financial Conduct Authority)

1,997,247

£

The cost of regulatory compliance is growing and forecast to increase year on year

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05 Technology

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| Equiniti Group plc 2016 19

TECHNOLOGY

ONBOARDING KYC COMPLAINTS & REMEDIATION AUGMENTED REALITY

03 02 01 04

FURTHER CAPABILITIES

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ONBOARDING KYC

01

COMPLAINTS & REMEDIATION AUGMENTED REALITY FURTHER CAPABILITIES

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| Equiniti Group plc 2016 20

KYC NET

Technology

Platform as a service (PAAS) Customer

  • nboarding

Use Case

Client onboarding and rectification for retail and commercial banks

Clients

ONBOARDING KYC

01

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| Equiniti Group plc 2016

DEMO

KYC NET

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EQUINITI CHARTER

Technology Use Case Clients

Enterprise workflow for financial services, complaints management and rectification PPI, mortgages, packaged accounts

COMPLAINTS & REMEDIATION

02

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| Equiniti Group plc 2016

DEMO

EQUINITI CHARTER

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| Equiniti Group plc 2016 24

EQ STRATA – AUGMENTED REALITY Augmented reality powered by HP Aurasma Shareplan, engagement and enrolment for mobile/global work forces

Technology Use Case Clients

AUGMENTED REALITY

03

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| Equiniti Group plc 2016

DEMO

EQ STRATA – AUGMENTED REALITY

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FURTHER CAPABILITIES

Selftrade Compendia Risk Factor FURTHER CAPABILITIES

04

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| Equiniti Group plc 2016 27

EQUINITI ACQUIRES FOR CAPABILITY NOT SCALE

ACQUISITIONS

01

Access to growth markets New capabilities relevant to existing clients base

02

Include proprietary technology

03

Delivering regulation- driven, data- intensive, non- discretionary, mission-critical services

04

RoI target

  • f >15% and

accretive to earnings in Year 1

05

Sourced

  • ff-market

06

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| Equiniti Group plc 2016

THE JOURNEY

ACQUISITIONS

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2008 2009 2010 2011 2012 2013 2014 2015 2016

HAZELL CARR REGULATORY RESOURCES ICS COMPUTING CASE MANAGEMENT, PAYROLL SERVICES, NEAR-SHORE BPO SERVICES 360 CLINICAL MEDICAL REVALIDATION PLATFORM AND SERVICES KILLIK GLOBAL SHARE PLANS EXECUTIVE SHARE PLANS TOPLEVEL DIGITAL SOLUTIONS DAVID VENUS COMPANY SECRETARIAL SERVICES NAT WEST EXEC DEALING EXECUTIVE SHARE DEALING PRISM COSEC COMPANY SECRETARIAL SERVICES JP MORGAN CDS EXECUTIVE CORPORATE DEALING SERVICES PANCREDIT LOAN ADMINISTRATION INVIGIA COMPLAINTS HANDLING SOFTWARE TRANSGLOBAL PAYMENT SOLUTIONS INTERNATIONAL PAYMENTS XAFINITY GROUP PENSION SOLUTIONS PROSEARCH ASSET REUNIFICATION SERVICES PETER EVANS FINANCIAL SERVICES SOFTWARE SELFTRADE ONLINE SHARE EXECUTION PLATFORM KYCNET KNOW YOUR CUSTOMER TECHNOLOGY & SERVICES RISKFACTOR FRAUD & DATA ANALYTICS

REGULATORY CAPABILITY TECHNOLOGY CAPABILITY BOTH

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CLIENT RETENTION 2016

  • Registration Services
  • Registration Services
  • Sharesave
  • Investor Services
  • Registration Services
  • Registration Services
  • Employee Services
  • Exec Schemes
  • Registration Services
  • Registration Services
  • SAYE
  • Dealing
  • ESN
  • Registration Services
  • Registration Services
  • Registration Services
  • Employee Services
  • Registration Services
  • Employee Services
  • Exec Schemes
  • Registration Services
  • Employee Services
  • Registration Services
  • Employee Services
  • Exec Schemes
  • Registration Services
  • Employee Services

| Equiniti Group plc 2016 29

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| Equiniti Group plc 2016 30

STRATEGIC PARTNERSHIPS

BANKING AND CAPITAL MARKETS INVESTMENT, LIFE AND RETIREMENT CONSUMER AND REGULATED CHALLENGERS, LENDERS AND INSURERS

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| Equiniti Group plc 2016 31

GROWTH/X-FACTOR

STRATEGIC PARTNERSHIPS

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

  • Seven year

renewal of life validation

  • Pipeline of
  • pportunities
  • Relationship established
  • Overseas pension

payments launched

  • Equiniti International

Payments launched

  • Life validation contract
  • Growth in over-

seas pension payments proposition

  • Corporate FX

relationship established

  • Overseas

executive share plan payments launched

  • Five year renewal
  • f strategic

partnership

  • Overseas dividend

payments undertaken

  • Residual

accounts

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| Equiniti Group plc 2016

CITI AND EQUINITI

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IRETI OGBU EMEA HEAD OF PAYMENT AND RECEIVABLES

What we value about Equiniti is that they’re innovative, creative and proactive. Equiniti can help us to deploy a more digital model to our clients, to look at the adjacencies to payments such as the life validation service, and to come up with solutions that help us to enhance our clients’ experience.

CREATING VALUE THROUGH PARTNERSHIP

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| Equiniti Group plc 2016 33

CONCLUSIONS

Equiniti has scale capacity in regulated markets Multiple technology capabilities accelerate growth Outsourcing is only

  • f lasting value if

technology can drive innovation

1 2 3

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| Equiniti Group plc 2016 34

Thank you