I N V E S T O R P R E S E N T A T I O N Q1 2012
Profile Leading provider to financial services industry 1,200 North American bank and credit union customers Value Five technology-enabled platforms Approx. 90% recurring revenue I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 2
Profile Broad Enabling Solutions Where We Help How We Help Payment Solutions Client Service Loan Registration Revenue Generation & Recovery Efficiency Loan Servicing Productivity Lending Technology Compliance Business Service Solutions I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 3
Strengths TRUST Trusting customer relationships Serve customers´ customers Diversified revenue, long-term contracts with high renewal rates Top 100 global financial #1 market positions technology providers Proven technological capabilities Specialized skill sets include M&A Long-term track record I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 4
Lending Technology Services # 1 in Canada # 1 in Select U.S. Markets Growth Drivers Growth Drivers Mortgage activity Channel adoption Expansion in retail Multi-channel adoption and commercial lending channels Market penetration New on-line offerings $187B $120B annually annually I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 5
Loan Servicing # 1 in Canada Growth Drivers Student loans Geographic expansion $18B portfolio 1.6M students Professional services I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 6
Loan Registration and Recovery Services # 1 in Canada Growth Drivers Vehicle loans Customer adoption Customer penetration 3 million+ annual transactions Evolving business model Connectivity services I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 7
Payment Solutions # 1 in Canada Growth Drivers Enhancement services New account 20 million accountholders openings I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 8
Business Service Solutions Leading Position Growth Drivers Consumer activity Customer programs 2.5 million insurance claims annually I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 9
Profile Increasing Revenue Diversification 2011 1 2006 $318.0M $724.7M 40% 90% 5% 22% 15% 10% 18% Payment solutions Loan registration & recovery services Recession-resistant Loan servicing Lending technology services Business service solutions 1. Revenue for 2011 is pro forma: includes revenue of Asset and Mortgagebot as if part of D+H at the start of 2011. I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 10
A High Degree of Recurring Revenue Revenue $ Sharing Long-term Contracts Customer Value Subscription Fees I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 11
Growth Plan Maintain “Follow Your Customer” strategy Grow market leadership while Shareholder and continuing strategic Customer diversification Value Drive efficiency I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 12
Organic Growth: Payment Solutions I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 13
Organic Growth: Lending Technology 85+ new customers since acquisition Strong and expanding margins 6,000 community banks (16% share currently) I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 14
Acquisition Strategy Platform Tuck-under Provide immediate scale Extend capabilities in existing areas I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 15
Most Recent Acquisition Profitable and growing business Leading provider of cloud-based loan origination solutions (LOS) 150 community banks and credit unions Mortgagebot Avista Loan Point Of Origination Consumer Bank Sale Solutions Recurring subscription based fees I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 16
US Mortgage Value Chain Consumer • Ability to capture information on the borrower • Multi-channel capability • Provide product selection based on borrower needs Point of Sale POS • Calculate state and local fees “light” • Data validation to ensure application quality • Presents compliance disclosures required at application • Connection to credit providers for credit scoring • Underwriting – connection to Fannie/Freddie • Required documentation tracking Loan Processing • Product/pricing/eligibility engine • Order third party services (appraisals, flood, title LOS insurance) • Document imaging Final underwriting • Document validation • Closing documents created Closing • Scheduling of closing activity Secondary markets • Secondary markets pipeline management (e.g. what rate commitments are 60 days out) Compliance • Manages compliance with HMDA and other regulations Integration • Integration with back end core service providers • Post-closing tracking Secondary markets I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 17
New Strategic Investment Community Bank Community Bank Virtualized Community Applications Bank I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 18
Powerful Combination POS LOS Infrastructure 1,000+ 150 300 customers customers customers 6,000+ Community Banks and Credit Unions I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 19
Partnering Strategy Partner Selectively To… D+H Capabilities Domain Expand best-in-class Expertise Knowledge capabilities SaaS LOS-POS Augment global delivery Recovery services Mortgages capacity Hosting of services Credit cards Achieve offshore Early stage collection Student loans economics Document processing Lien registration Software development Cheque program Supplement application development Technology integration Commercial credit I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 20
Financial Review Solid performance, strategic advancement I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 21
Expanding Performance Annual Revenue Quarterly Revenue ($ millions) ($ millions) 17.9% CAGR 800 724.7 181.6 169.5 700 600 500 400 300 200 100 0 1 1 05 06 07 08 09 10 11 Q1 2011 Q1 2012 US segment 1. Calculated under IFRS; previous periods under Canadian GAAP I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 22
Q1 Canadian Segment Revenue $ millions Payment solutions 74.8 Loan registration & 38.0 recovery services Loan servicing 34.1 Lending technology 14.5 services Business service 8.6 solutions I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 23
Cost Management Consolidated Expenses ($ millions) 140.8 Cost increased year-over-year 132.0 with addition of Mortgagebot Includes spending on efficiencies, process realignment, product redesign Transformational costs dissipating as year unfolds Q1 2011 Q1 2012 I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 24
Expanding Performance Quarterly Adjusted EBITDA 1 Annual Adjusted EBITDA 1 ($ millions) ($ millions) 14.8% CAGR 200 181.2 41.6 39.3 150 100 50 0 2 2 Q1 2011 Q1 2012 05 06 07 08 09 10 11 US segment 1. Adjusted EBITDA is a non-IFRS term (see Appendix C). 2. Calculated under IFRS; previous periods under Canadian GAAP. I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 25
Profitability Measures Quarterly Adjusted Net Income 1 Annual Adjusted Net Income 1 ($ per share) ($ per share) 1.8994 2.00 0.4275 0.3709 1.50 1.00 0.50 0.00 2 2 07 08 09 10 11 Q1 2011 Q1 2012 1. Adjusted Net Income and Adjusted Net Income Per Share are non-IFRS terms (see Appendix C). 2. Calculated under IFRS; previous periods under Canadian GAAP. I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 26
Conservative Debt Position Long-term credit facilities and multi-year bond provide certainty Total bonds $142.8M (at Mar. 31, 2012) – $80M maturing June 30, 2017 – US $63 million (C $62.8 million) maturing April 12, 2021 – Unused shelf of US $37 million Total credit facility $213M (at Mar. 31, 2012) – Unused facility of $142M – Additional arrangement of $150M available Flexibility maintained following recent acquisition/investment (Debt to EBITDA below 2x) On May 3, 2012, Avista acquired for US $40 million On April 24, 2012, Compushare investment of US $9.8 million Strong financial capacity for growth I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 27
Solid Return On Investment Since IPO Cash distributed to Owners* $15.77 Total Share Price Appreciation* 8.50 Total Shareholder Return $24.27 Average Annual Return 14.24% * For the period of December 20, 2001 to March 31, 2012 I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 28
Other Information Common Share Price (TSX:DH) 52 week high $20.45 (May 8, 2012) 52 week low $14.45 Closing Common Share Price $19.19 (May 8, 2012) Market Capitalization $1.1 billion (March 30, 2012) Common Shares Outstanding 59.2 million Average Daily Trading Volume 174,128 Annualized Dividend Per Share $1.24 Number of Employees 4,300 2011 Globe & Mail Profit Ranking 166 (out of top 1,000 public companies) 2011 FinTech Ranking (Global) 41 Brian Kyle, 416-696-7700 Contact investorrelations@dhltd.com I N V E S T O R P R E S E N TAT I O N Q 1 2 0 1 2 29
Recommend
More recommend
