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 PROCESSES… FY 2017 EST. MARKET MARKET KEY SERVICES SHARE POS. REVENUE SHARE 1 Registration REGISTRATION #1 50% Shareholder services Technology-led SERVICES INVESTMENT SOLUTIONS Corporate actions and dividends FTSE 100 REGISTERS 33% - £132.3m Employee benefit schemes EMPLOYEE #1 SERVICES 25% Employee share plans Data-driven Retail investor services Executive share dealing INVESTMENT SERVICES #4 White label share dealing 7% International payments Payments Processing Bn Pension administration to public 34% - £139.0m #2 and private sectors PENSION SOLUTIONS Pension administration software Regulated, Embedded 15% #1 Data analytics Processes PUBLIC SECTOR 31% - £124.7m Regulated complaints #4 10% Customer on-boarding INTELLIGENT End-user Engagement SOLUTIONS Consumer credit Data analytics Source: Management information, management estimates 1. Interest income accounts for 2% (£10.1m) of 2017 revenue 3 Equiniti Group plc
INVESTMENT SOLUTIONS 4 Equiniti Group plc
INVESTMENT SOLUTIONS - PRODUCTS AND SERVICES REGISTRATION SERVICES EMPLOYEE SERVICES INVESTMENT SERVICES • • • Share registration service Allows employees to save a portion Execution-only trading services • • Administration and payment of of their gross salary Provision of trading services from Retail • dividends SAYE Option to invest in their company’s nominee, ISA, and SIP accounts Share Registration • Management of AGMs, EGMs, other shares (Sharesave) Dealing corporate events • • • Servicing the initial notification of SIP, bespoke executive and discretionary Executive and Employee share dealing SIP & death and account closing share plans services Specialist Bereavement • • Executive process Tax-efficient way of owning a stake in Certificated and online investment Share Services Share the company through share incentive dealing Dealing plans Plans • • • Direct management of flexible benefits Management of corporate actions, Foreign exchange services for corporates Corporate Flexible International plans e.g. rights issues, M&A, corporate and individuals • Actions Benefits Provides ability for staff to shape benefit Payments activity selections PROPRIETARY Xanite Payfac TECHNOLOGY PLATFORM 7% MARKET SHARE 50% OF FTSE 100 AND 40% OF FTSE 350 25% MARKET SHARE #4 EXECUTION ONLY RETAIL SHARE DEALING #1 IN SHARE REGISTRATION #1 IN UK EMPLOYEE SHARE PLANS 5 Equiniti Group plc
INVESTMENT SOLUTIONS – REVENUE MODEL REGISTRATION SERVICES EMPLOYEE SERVICES INVESTMENT SERVICES • • • Trading commissions Fixed fee Interest earned on balances Retail • • ISA administration fee Based on No. of shareholders • Dealing fee Registration • SAYE Share • Inactivity fee Contract of 3-7 years • (Sharesave) Dealing Fees per transaction for shareholder services • • • Dealing commissions Transactional fee Admin fee paid by corporate client SIP & • • Bereavement • Foreign exchange Bereavement BPO – corporate fee Dealing fee paid by employee Specialist Executive • Custody fee paid by financial institution Services Share Share Dealing Plans • • • Project fee Contracted FX margin and transaction fees Corporate Flexible • Paid by the corporate client International Actions Benefits Payments CONTRACTED REVENUE CONTRACTED REVENUE TRANSACTIONAL REVENUE REVENUE c. 60% c. 80% c. 80% VISIBILITY Reported Reported Organic Investment Solutions FY 2017 Change Change £m % % Revenue (£m) 132.3 6.7 6.7 Underlying EBITDA (£m) 43.5 16.0 Underlying EBITDA margin (%) 32.9 2.7 6 Equiniti Group plc
INTELLIGENT SOLUTIONS 7 Equiniti Group plc
INTELLIGENT SOLUTIONS - PRODUCTS AND SERVICES Charter Proprietary technology Pancredit platforms: DESCRIPTION • Specialist software, people and process know-how to financial • Proprietary software platforms to enable end to institutions and large corporates for complaints processing and COMPLAINTS, CASE end outsourced remediation and lending solutions case management MANAGEMENT AND • • Client on-boarding solutions – know your customer/anti-money Emerging challenger in fragmented markets REGULATORY SERVICES • laundering checks Leverages existing relationships to cross-sell into • Cyber security solutions established customer base • Large pipeline of acquisition opportunities • End-to-end loan servicing through Pancredit platform KYCnet • CREDIT SERVICING Risk management and fraud analytics • Client on-boarding and rectification for retail and commercial banks • Loan brokerage • Provides Saas and analysis for European Banks RiskFactor • Services related to asset reunification and identity validation • Credit decisioning and risk profiling software for commercial lending • DATA ANALYTICS Handling and cleansing of large data for corporates • 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 MARKET POSITION • Now building out capability for financial services BPO #4 ~10% Nostrum COMPLAINTS, CASE MANAGEMENT, AND MARKET • Provider of end-to-end loan management technology REGULATORY SERVICES SHARE • Strengthens our position in the lending sector 8 Equiniti Group plc
INTELLIGENT SOLUTIONS – REVENUE MODEL REVENUE MODEL REVENUE TYPE • Complaints handling software (Invigia): - Upfront licensing fee Transactional - Project execution and product Contracted implementation fees COMPLAINTS, CASE - Recurring support fees MANAGEMENT AND • Specialist people: Fees charged per REGULATORY SERVICES placement of administrators and actuaries at clients on a transactional basis Project • Upfront licensing fee • Project execution and product implementation CREDIT SERVICING • Recurring support / maintenance • Service fees charged as % of the value of PROJECT REVENUE REVENUE DATA ANALYTICS shares reunited with owners c. 70% • Transaction fees for each customer VISIBILITY tracing and screening Reported Reported Organic INTELLIGENT SOLUTIONS FY 2017 Change Change £m % % Revenue (£m) 124.7 14.1 2.8 Underlying EBITDA (£m) 33.0 16.6 Underlying EBITDA margin (%) 26.5 0.6 9 Equiniti Group plc
PENSION SOLUTIONS 10 Equiniti Group plc
PENSION SOLUTIONS - PRODUCTS AND SERVICES Proprietary Technology Platform: DESCRIPTION Pension Administration: • Outsourced administration and software services for a number of public and private sector pension schemes Life & Pensions: CONTRACTED • Prudential administered schemes outsourced to Equiniti • Resilient core business • Administering annuity books – Visible, high margin and cash generative NHS: • Market leadership , brand & • Provide software and specialist admin services reputation – Long heritage with services since 1836 Data Solutions: • High client fidelity • Data analytics, complex and bulk calculation services to pension schemes and – Long-standing customer relationships with life insurance companies PROJECT & some of the largest UK companies SOFTWARE Pension Software: • • Customised software to efficiently and effectively manage the rules of all Supportive macroeconomic and regulatory trends pension schemes • Platform for cross-selling of additional • Pension administration services to the Civil Service services • 51% owned JV with government MyCSP – Strong expansion in add-on services MARKET POSITION #1 #2 ~15% PUBLIC SECTOR THIRD PARTY MARKET SHARE ADMINISTRATION 11 Equiniti Group plc
PENSION SOLUTIONS – REVENUE MODEL REVENUE MODEL REVENUE TYPE • Pension Administration and Life & Pensions: Transactional – Fixed yearly fee for core administration – Most contracts include variable components based on members or administrative tasks Project • NHS: CONTRACTED – Payroll admin revenue based on number of pensioners – Software project income charged on a time and materials basis – Ancillary income charged as cost + pricing Contracted • CONTRACTED REVENUE Data Solutions: REVENUE – Project fees charged on ongoing basis c. 70% VISIBILITY for services provided PROJECT & • Pension Software: SOFTWARE – License fees (perpetual or recurring) – Maintenance fees (fixed) – Specific fees for implementation / development projects Reported Reported Organic PENSION SOLUTIONS 2017 Change Change • Fixed fee contract with yearly fees agreed £m % % upfront • Project income charged on a time and Revenue (£m) 139.0 0.7 0.7 MyCSP materials basis Underlying EBITDA (£m) 24.6 (11.2) Underlying EBITDA margin (%) 17.7 (2.4) 12 Equiniti Group plc
FINANCIAL RESULTS 13 Equiniti Group plc
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