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 ANDY EDLER SCOTT SHIELDS PHIL AINSLEY LIAM MCGRATH ADAM GREEN Business Development Managing Director, Managing Director, Chief Operating Officer Chief Risk Officer Director, Intelligent Enterprise Workflow Employee Services Solutions JAMES BROWN PAUL MATTHEWS AMY MADDEN GUY WAKELEY Director, Corporate Executive Director, Director of Marketing Chief Executive Officer Development Corporate Markets and Communications 3 | Equiniti Group plc 2016
TRADING UPDATE DELIVERING IN LINE WITH MARKET EXPECTATIONS Existing Clients New Clients • Renewed/extended relationships • New clients – All of our FTSE100 clients – Admiral – Estate and probate administration – Biffa service with a leading UK bank – GoCompare – KYC and customer onboarding – Retirement Advantage services with two international banks 4 | Equiniti Group plc 2016
EQUINITI – KEY ASSETS INTRODUCTION 02 03 04 01 RELATIONSHIPS SCALE TECHNOLOGY PEOPLE 5 | Equiniti Group plc 2016
RELATIONSHIPS 01 02 03 04 01 RELATIONSHIPS RELATIONSHIPS SCALE TECHNOLOGY PEOPLE Depth Length Breadth More than 70 of typically > 10 services On average the FTSE100 28 years 6 | Equiniti Group plc 2016
SCALE 02 SCALE More than The ability to The largest pension £200bn of payments mobilise tasks and share registers processed in 2016 at short notice at in Europe the largest scale 7 | Equiniti Group plc 2016
TECHNOLOGY 03 TECHNOLOGY More than Processor of Significant barriers 30 proprietary data and payments to entry and exit platforms on UK- at Amazon scale owned infrastructure 8 | Equiniti Group plc 2016
PEOPLE 04 PEOPLE Providing experience 4,500 people sophisticated, specialism with significant high margin diversity offshore capability services 9 | Equiniti Group plc 2016
03 Operating at scale
A NEW RELATIONSHIP ROYAL MAIL GROUP 2013 2013 2016 IPO Statistics Registrars & Share Plans Maturity 1. Net £350m shares 1. Largest online offer 1. Newly created FTSE100 2. 125k eligible share company 2. 250k applications received dealing instructions online in 48 hours 2. >400k shareholders 3. £1.1bn returned to investors 3. Share plans to 150k via debit cards in 4 hours employees 11 | Equiniti Group plc 2016
A NEW RELATIONSHIP ROYAL MAIL GROUP 2016 2016 IVR SMS Portal For 125k postal workers Building end-user customer journeys 12 | Equiniti Group plc 2016
CORPORATE ACTIONS AT SCALE • Acquisition of BG Group by RDS • Acquisition of ARM by Softbank • Acquisition of SABMiller • Processed £13bn of payments • Processed £24bn of payments by AB InBev • Processed £39bn of payments • Despatched 500k cheques • >3k cash messages • Largest Crest payment in UK history 13 | Equiniti Group plc 2016
04 Disruption in Financial Services
WHEEL OF FINANCIAL DISRUPTION SIX CLUSTERS OF FINANCIAL SERVICES INNOVATION Emerging payment rails Insurance eg crypto current disaggregation Connected Niche insurance Cashless specialised eg wearables world products Smarter, faster Strategic role of data machines Streamlined Shifting infrastructure customer Alternative preferences lending eg virtual New market technologies platforms Reduced intermediation Process Automation of externalisation high-value eg cloud activities computing Crowdfunding Customer Empowered empowerment investors eg social trading Source: World Economic Forum 2015 15 | Equiniti Group plc 2016
REGULATION 80 £1bn Over 80 pieces of legislation have been HSBC, Deutsche Bank and JPMorgan, spend passed in the UK since the financial crisis. over S1bn a year each on regulatory compliance and controls. (British Banking Association) (fintechFT, 2016) 13 , 000 167 JP Morgan CEO Jamie Dimon wrote in a letter to Compliance officers must assimilate shareholders that the firm had spent £1.6bn on their on average 167 regulatory alerts per day. Compliance Department, employing 13,000 people . (IT ProPortal, 2016) (Thomson Reuters, 2016) 16 | Equiniti Group plc 2016
REGULATION $8bn $1-2tn Global spending on AML compliance is set to grow Global money laundering transactions are to more than $8 billion by 2017 (a compounded estimated at 2 to 5% of global GDP, or roughly annual growth rate of almost 9%). U.S. $1-2 trillion annually . (Wealthlnsight) (Global Economic Crime Survey 2016, PwC) £40m 1,997,247 1,997,247 complaints were opened by The average bank spends £40m per year on financial services organisations in Q2, 2015. KYC compliance with some banks spending up to £300m annually on KYC (Know Your Customer) Compliance and Customer Due Diligence (CDD). (Financial Conduct Authority) (IT ProPortal, 2016) £ The cost of regulatory compliance is growing and forecast to increase year on year 17 | Equiniti Group plc 2016
05 Technology
TECHNOLOGY 02 03 04 01 ONBOARDING COMPLAINTS & AUGMENTED FURTHER KYC REMEDIATION REALITY CAPABILITIES 19 | Equiniti Group plc 2016
KYC NET 01 02 03 04 01 ONBOARDING KYC ONBOARDING COMPLAINTS & AUGMENTED FURTHER Technology Use Case Clients KYC REMEDIATION REALITY CAPABILITIES Platform as a service Client onboarding and (PAAS) Customer rectification for retail onboarding and commercial banks 20 | Equiniti Group plc 2016
KYC NET DEMO 21 | Equiniti Group plc 2016
EQUINITI CHARTER 02 COMPLAINTS & REMEDIATION Technology Use Case Clients Enterprise workflow PPI, mortgages, for financial services, packaged accounts complaints management and rectification 22 | Equiniti Group plc 2016
EQUINITI CHARTER DEMO 23 | Equiniti Group plc 2016
EQ STRATA – AUGMENTED REALITY 03 AUGMENTED REALITY Technology Use Case Clients Augmented reality Shareplan, engagement powered by and enrolment for HP Aurasma mobile/global work forces 24 | Equiniti Group plc 2016
EQ STRATA – AUGMENTED REALITY DEMO 25 | Equiniti Group plc 2016
FURTHER CAPABILITIES 04 FURTHER CAPABILITIES Selftrade Compendia Risk Factor 26 | Equiniti Group plc 2016
ACQUISITIONS EQUINITI ACQUIRES FOR CAPABILITY NOT SCALE 01 02 03 04 05 06 Access to New capabilities Include Delivering RoI target Sourced growth relevant proprietary regulation- of >15% and off-market markets to existing technology driven, data- accretive to clients base intensive, non- earnings in discretionary, Year 1 mission-critical services 27 | Equiniti Group plc 2016
ACQUISITIONS THE JOURNEY KYCNET KNOW YOUR PRISM COSEC CUSTOMER COMPANY TECHNOLOGY SECRETARIAL SERVICES & SERVICES JP MORGAN DAVID VENUS PETER EVANS CDS EXECUTIVE RISKFACTOR COMPANY FINANCIAL SERVICES FRAUD & DATA CORPORATE DEALING SOFTWARE SECRETARIAL SERVICES SERVICES ANALYTICS NAT WEST EXEC KILLIK GLOBAL SELFTRADE DEALING SHARE PLANS ONLINE SHARE TOPLEVEL EXECUTIVE SHARE EXECUTIVE EXECUTION DIGITAL DEALING SHARE PLANS PLATFORM SOLUTIONS 2008 2009 2010 2011 2012 2013 2014 2015 2016 ICS COMPUTING 360 CLINICAL TRANSGLOBAL CASE MANAGEMENT, MEDICAL REVALIDATION PAYMENT SOLUTIONS PAYROLL SERVICES, PLATFORM AND SERVICES INTERNATIONAL NEAR-SHORE BPO PAYMENTS SERVICES XAFINITY GROUP INVIGIA COMPLAINTS PENSION SOLUTIONS HANDLING SOFTWARE PROSEARCH HAZELL CARR PANCREDIT ASSET REUNIFICATION REGULATORY LOAN SERVICES RESOURCES ADMINISTRATION TECHNOLOGY CAPABILITY REGULATORY CAPABILITY BOTH 28 | Equiniti Group plc 2016
CLIENT RETENTION 2016 • Registration Services • Registration Services • Employee Services • Registration Services • Registration Services • Employee Services • Employee Services • Exec Schemes • Employee Services • Exec Schemes • Registration Services • Registration Services • Registration Services • Investor Services • Registration Services • Sharesave • Employee Services • Registration Services • Exec Schemes • Registration Services • SAYE • Registration Services • Registration Services • Registration Services • Dealing • Employee Services • ESN 29 | Equiniti Group plc 2016
STRATEGIC PARTNERSHIPS BANKING AND CHALLENGERS, INVESTMENT, LIFE CONSUMER AND CAPITAL MARKETS LENDERS AND INSURERS AND RETIREMENT REGULATED 30 | Equiniti Group plc 2016
STRATEGIC PARTNERSHIPS GROWTH/X-FACTOR • Seven year • Corporate FX renewal of life relationship validation established • Pipeline of • Overseas opportunities executive share • Residual plan payments accounts launched 2016 • Growth in over- 2015 seas pension payments 2014 proposition 2013 2012 • Relationship established 2011 • Five year renewal • Overseas pension of strategic 2010 payments launched partnership 2009 2008 • Equiniti International 2007 Payments launched 2006 • Life validation contract • Overseas dividend payments undertaken 31 | Equiniti Group plc 2016
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