CORPORATE PRESENTATION 1 Equiniti Group plc 1 Equiniti Group plc - - PowerPoint PPT Presentation

▶
corporate presentation
SMART_READER_LITE
LIVE PREVIEW

CORPORATE PRESENTATION 1 Equiniti Group plc 1 Equiniti Group plc - - PowerPoint PPT Presentation

Jan 16, 2024 35 likes •240 views

CORPORATE PRESENTATION 1 Equiniti Group plc 1 Equiniti Group plc INTRODUCTION 2 Equiniti Group plc WHAT WE DO THAT SHARE A SET OF EQUINITI PROVIDES SERVICES AND SOLUTIONS THAT SUPPORT COMPLEX COMMON CAPABILITIES AND REGULATED

slide-1
SLIDE 1

1 Equiniti Group plc 1 Equiniti Group plc

CORPORATE PRESENTATION

slide-2
SLIDE 2

2 Equiniti Group plc

INTRODUCTION

slide-3
SLIDE 3

3 Equiniti Group plc

FY 2017 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  White label share dealing  International payments

Bn

PENSION SOLUTIONS  Pension administration to public and private sectors  Pension administration software  Data analytics INTELLIGENT SOLUTIONS  Regulated complaints  Customer on-boarding  Consumer credit  Data analytics

EQUINITI PROVIDES SERVICES AND SOLUTIONS THAT SUPPORT COMPLEX AND REGULATED PROCESSES…

MARKET POS.

31% - £124.7m 34% - £139.0m 33% - £132.3m

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

Source: Management information, management estimates

  • 1. Interest income accounts for 2% (£10.1m) of 2017 revenue

#1 #1 #4 #2

…THAT SHARE A SET OF COMMON CAPABILITIES

  • EST. MARKET

SHARE 50% 25% 7% 15%

#1 #4

10% KEY SERVICES

FTSE 100 REGISTERS

PUBLIC SECTOR

WHAT WE DO

slide-4
SLIDE 4

4 Equiniti Group plc

INVESTMENT SOLUTIONS

slide-5
SLIDE 5

5 Equiniti Group plc

INVESTMENT SOLUTIONS - PRODUCTS AND SERVICES

  • Servicing the initial notification of

death and account closing process

  • Share registration service
  • Administration and payment of

dividends

  • Management of AGMs, EGMs, other

corporate events

Registration

  • Management of corporate actions,

e.g. rights issues, M&A, corporate activity

  • SIP, bespoke executive and discretionary

share plans

  • Tax-efficient way of owning a stake in

the company through share incentive plans

  • Allows employees to save a portion
  • f their gross salary
  • Option to invest in their company’s

shares

SAYE (Sharesave)

  • Direct management of flexible benefits

plans

  • Provides ability for staff to shape benefit

selections

25% MARKET SHARE #1 IN UK EMPLOYEE SHARE PLANS

  • Executive and Employee share dealing

services

  • Certificated and online investment

dealing

  • Foreign exchange services for corporates

and individuals

  • Execution-only trading services
  • Provision of trading services from

nominee, ISA, and SIP accounts

7% MARKET SHARE #4 EXECUTION ONLY RETAIL SHARE DEALING 50% OF FTSE 100 AND 40% OF FTSE 350 #1 IN SHARE REGISTRATION

REGISTRATION SERVICES EMPLOYEE SERVICES INVESTMENT SERVICES

Flexible Benefits Specialist Share Dealing Corporate Actions SIP & Executive Share Plans Retail Share Dealing International Payments

PROPRIETARY TECHNOLOGY PLATFORM

Xanite Payfac

Bereavement Services

slide-6
SLIDE 6

6 Equiniti Group plc

INVESTMENT SOLUTIONS – REVENUE MODEL

REGISTRATION SERVICES EMPLOYEE SERVICES INVESTMENT SERVICES

Investment Solutions Reported FY 2017 £m Reported Change % Organic Change % Revenue (£m) 132.3 6.7 6.7 Underlying EBITDA (£m) 43.5 16.0 Underlying EBITDA margin (%) 32.9 2.7

  • Trading commissions
  • ISA administration fee
  • Inactivity fee

Registration Bereavement Services Corporate Actions

  • Fixed fee
  • Based on No. of shareholders
  • Contract of 3-7 years
  • Fees per transaction for shareholder

services

  • Transactional fee
  • Bereavement BPO – corporate fee

paid by financial institution

  • Project fee

SAYE (Sharesave) Flexible Benefits SIP & Executive Share Plans

  • Interest earned on balances
  • Dealing fee
  • Admin fee paid by corporate client
  • Dealing fee paid by employee

Specialist Share Dealing Retail Share Dealing International Payments

  • FX margin and transaction fees
  • Dealing commissions
  • Foreign exchange
  • Custody fee
  • Contracted
  • Paid by the corporate client

CONTRACTED REVENUE

  • c. 60%

CONTRACTED REVENUE

  • c. 80%

TRANSACTIONAL REVENUE

  • c. 80%

REVENUE VISIBILITY

slide-7
SLIDE 7

7 Equiniti Group plc

INTELLIGENT SOLUTIONS

slide-8
SLIDE 8

8 Equiniti Group plc

INTELLIGENT SOLUTIONS - PRODUCTS AND SERVICES

DESCRIPTION

  • 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
  • Services related to asset reunification and identity validation
  • Handling and cleansing of large data for corporates
  • End-to-end loan servicing through Pancredit platform
  • Risk management and fraud analytics
  • Loan brokerage

COMPLAINTS, CASE MANAGEMENT AND REGULATORY SERVICES

Proprietary technology platforms:

Charter Pancredit

#4 COMPLAINTS, CASE MANAGEMENT, AND REGULATORY SERVICES ~10% MARKET SHARE

MARKET POSITION

CREDIT SERVICING DATA ANALYTICS

  • 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

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
slide-9
SLIDE 9

9 Equiniti Group plc

REVENUE TYPE

INTELLIGENT SOLUTIONS – REVENUE MODEL

Contracted Transactional Project

REVENUE MODEL

  • 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

  • Upfront licensing fee
  • Project execution and product implementation
  • Recurring support / maintenance
  • Service fees charged as % of the value of

shares reunited with owners

  • Transaction fees for each customer

tracing and screening COMPLAINTS, CASE MANAGEMENT AND REGULATORY SERVICES

INTELLIGENT SOLUTIONS Reported FY 2017 £m Reported Change % Organic Change % Revenue (£m) 124.7 14.1 2.8 Underlying EBITDA (£m) 33.0 16.6 Underlying EBITDA margin (%) 26.5 0.6

PROJECT REVENUE

  • c. 70%

REVENUE VISIBILITY CREDIT SERVICING DATA ANALYTICS

slide-10
SLIDE 10

10 Equiniti Group plc

PENSION SOLUTIONS

slide-11
SLIDE 11

11 Equiniti Group plc

PENSION SOLUTIONS - PRODUCTS AND SERVICES

DESCRIPTION

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

MyCSP

  • Pension administration services to the Civil Service
  • 51% owned JV with government

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

Proprietary Technology Platform:

CONTRACTED PROJECT & SOFTWARE

#2 THIRD PARTY ADMINISTRATION ~15% MARKET SHARE

MARKET POSITION

#1 PUBLIC SECTOR

  • 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

slide-12
SLIDE 12

12 Equiniti Group plc

PENSION SOLUTIONS – REVENUE MODEL

Transactional Project Contracted

REVENUE MODEL

  • Pension Administration and Life & Pensions:

– Fixed yearly fee for core administration – Most contracts include variable components based on members or administrative tasks

  • 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

MyCSP

  • Fixed fee contract with yearly fees agreed

upfront

  • Project income charged on a time and

materials basis

CONTRACTED PROJECT & SOFTWARE

  • NHS:

– Payroll admin revenue based on number

  • f pensioners

– Software project income charged on a time and materials basis – Ancillary income charged as cost + pricing PENSION SOLUTIONS Reported 2017 £m Reported Change % Organic Change % Revenue (£m) 139.0 0.7 0.7 Underlying EBITDA (£m) 24.6 (11.2) Underlying EBITDA margin (%) 17.7 (2.4)

CONTRACTED REVENUE

  • c. 70%

REVENUE VISIBILITY

REVENUE TYPE

slide-13
SLIDE 13

13 Equiniti Group plc

FINANCIAL RESULTS

slide-14
SLIDE 14

14 Equiniti Group plc

GROWTH DELEVERAGING EARNINGS 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.

FINANCIAL HIGHLIGHTS

slide-15
SLIDE 15

15 Equiniti Group plc

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

A YEAR OF STRONG PROGRESS

slide-16
SLIDE 16

16 Equiniti Group plc

Reported 2017 Reported 2016 Reported Change % Organic Change % REVENUE (£m) Investment Solutions Intelligent Solutions Pension Solutions Interest Income 132.3 124.7 139.0 10.1 124.0 109.3 138.1 11.2 6.7 14.1 0.7 (9.8) 6.7 2.8 0.7 (9.8) Equiniti Group 406.1 382.6 6.1 2.9 Underlying EBITDA (£m) Investment Solutions Intelligent Solutions Pension Solutions Interest Income Central Costs 43.5 33.0 24.6 10.1 (12.7) 37.5 28.3 27.7 11.2 (12.3) 16.0 16.6 (11.2) (9.8) 3.3 Equiniti Group 98.5 92.4 6.6 Underlying EBITDA margin (%) Investment Solutions Intelligent Solutions Pension Solutions 32.9 26.5 17.7 30.2 25.9 20.1 2.7 0.6 (2.4) Equiniti Group 24.3 24.2 0.1

DELIVERING ON OUR FINANCIAL COMMITMENTS

slide-17
SLIDE 17

17 Equiniti Group plc

APPENDIX

slide-18
SLIDE 18

18 Equiniti Group plc

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

1 2 3 4 5

slide-19
SLIDE 19

19 Equiniti Group plc

Custody and settlement, investment and wealth management Compendia pension administration and payroll Share registration, dividend and shareplan administration Enterprise workflow & Case and complaints management

FOUR MAIN PLATFORMS

19

OUR TECHNOLOGY IS AN ENABLER TO DRIVE US FORWARD IN A WORLD INCREASINGLY FOCUSED ON DIGITAL TRADING AND STRATEGIC USE OF DATA

OUR TECHNOLOGY

slide-20
SLIDE 20

20 Equiniti Group plc

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 2017

MARKETING SOURCE DATA ANALYTICS & CYBER SECURITY GATEWAY2FINANCE MORTGAGE AND CONSUMER CREDIT EXPERTISE NOSTRUM END-TO-END LOAN MANAGEMENT TECHNOLOGY

2008 2009 2010 2011 2012 2013 2014 2015 2016 2018 2017 2018

Well Fargo Shareholder Services SHARE REGISTRATION

ACQUISITIONS – THE JOURNEY