Results for year ended 31 DECEMBER 2019 Guy Wakeley Chief Executive - PowerPoint PPT Presentation

Results for year ended 31 DECEMBER 2019 Guy Wakeley – Chief Executive Rob Bloor – Group Financial Controller

Agenda 01 02 03 Summary Strategic & Introduction Operational Review 05 06 04 Summary Financial Q&A & Outlook Review | Equiniti Group plc 2020 2

Summary  Growth sustained in a challenging operating environment  North American business separation completed  Progress with cash generation, leverage and debt  Scale and resilience building | Equiniti Group plc 2020 Continuing strategic progress 3

Strategic & Operational Review | Equiniti Group plc 2020 4

Financial Highlights 2019) 2018) Change) Revenue (£m) 555.7) 530.9) 4.7% Underlying EBITDA (£m) 136.0) 129.5) 5.0% Cash flow conversion (%) 91) 102) (11.0%) Profit before tax (£m) 39.8) 24.3) 63.8% Net Debt (£m) 343.6) 352.0) (2.4%) Leverage (x) 2.5) 2.7) 0.2x Underlying Earnings Per Share (pence) 18.1) 17.8) 1.7% Dividend (pence) 5.49 5.32 3.2% | Equiniti Group plc 2020 Continued progress in a challenging environment 5

Challenges / Successes Challenges (Revenue) Successes US interest rates impact (£3m) 15 client wins in share registration UK/US corporate action weakness (£8m) Remediation volumes up 6% Retail share dealing down (£3m) 60 share plan launches MyCSP price reduced (£2m) Revenue growth excl pensions 7% Asset base up 7% | Equiniti Group plc 2020 Resilience demonstrated in a challenging environment 6

Operational Highlights • Separation from Wells Fargo achieved and $5m synergies delivered to plan; on track to deliver $10m in 2020 Infrastructure • UK and US datacenters reprovisioned, and network operation centres deployed in Chennai and Bangalore • US HR and Finance systems transitioned to Workday in global deployment • Operating scale and resilience transformed with new centres in Milwaukee, Wisconsin and Bangalore Investment • New technology centre launched in Krakow for 160 new application developers • £39m invested in core operating platforms • Platform investment maintained despite economic environment • Unprecedented number of wins for share plans and share registration • Organic launch of equity compensation plans and proxy advisory in North America Growth • | Equiniti Group plc 2020 Remediation volumes resilient • Acquisition of Monidee to transform global share plan proposition Investing for future growth 7

Divisional Review INVESTMENT Share registration, share plans and governance SOLUTIONS solutions for UK listed businesses Our purpose is to care for every EQ US Transfer agency, equity compensation and related customer and services for North American corporates simplify every transaction INTELLIGENT Regulatory technology and services for credit, SOLUTIONS remediation and risk/fraud | Equiniti Group plc 2020 PENSION Pensions administration, payments and software for SOLUTIONS Government and employers of life companies 8

Investment Solutions 15 60 £119bn £75bn Organic Growth 3.7% New clients New share plans Regulated & non- Total payment for 33 clients regulated AuA flows Margin 33.5% Challenges Successes • • Corporate action weakness £7m Regulated assets +7% Market Share c50% • • Retail share dealing £3m New share plan launches 60 • New clients 15 • Boardroom Advisory Services Launched Recurring Revenue c80% | Equiniti Group plc 2020 Continuing market leadership 9

EQ US 5m 4 £185bn Organic Growth 2.7% Number of Net new clients Total shareholders on register mobilised payment flow Margin 24.6% Challenges Successes • • Interest rates £3m Separation completed 26 May 2019 Market Share c15% • • Corporate action weakness £1m New shareholder portals launched • 7 new clients for equity compensation services including channel partnership with Vanguard and Wells Fargo • ADR programmes for existing UK clients Recurring Revenue c70% including Barclays, GSK, Prudential & Royal | Equiniti Group plc 2020 Dutch Shell Driving growth after separation 10

Intelligent Solutions 2,100 36 £13bn Organic Growth 3.0% Remediation New software Total resources deployed licenses sold payment flows Margin 25.5% Challenges Opportunities Market Share • • Conversion of discretionary spend Emerging Regulatory Themes #1 Unsecured Loans (Retail Finance) • PCP car finance #2 Motor Finance • Pension freedoms #2 Remediation Services • Interest only mortgages • Energy contracts • Move to a market-led structure Recurring Revenue c40% | Equiniti Group plc 2020 Growth driven by regulation 11

Pension Solutions 8 4 5m £27bn Organic Growth (5.5%) Net new Software Pension Total client wins licenses sold members served payment flows Margin 15.4% Challenges Successes • • Revenue stabilisation in H2 Reduction and delays to project work Market Share c25% • • Full year impact of change in scope to New client wins • NHS contract Multiple sales of Aquila platform • Step down in MyCSP contract Recurring Revenue c80% | Equiniti Group plc 2020 Progress with revenue stabilisation in H2 12

Structural Growth in Equiniti’s Core Shareholder Markets 1 3 UK Regulated Assets under Administration £bn On register shareholders and retail customers (m) CAGR 9% CAGR 14% (5% UK only) 5.0 4.8 25.4 25.3 11.6 11.2 10.5 10.2 21.9 9.6 20.1 17.6 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 4 2 Payment flows £bn Non-Regulated Assets under Administration £bn CAGR 71% (7% UK only) CAGR 35% (6% UK only) 242 185 519.7 408.0 157 UK 115 | Equiniti Group plc 2020 90 93 88 90.2 93.5 80.1 80.2 72.2 US 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Structural growth in markets ahead of GDP 13

Sustainable Financial Performance Operating Cash Flow Conversion % Underlying EBITDA £m/Margin % Revenue £m 113 100% incl RFF 555.7 136.0 530.9 102 129.5 CAGR 12% 93 98% excl RFF 100 91 406.3 98.2 382.6 92.4 369.0 86.2 23.4% 24.2% 24.2% 24.4% 24.5% FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 ROCE % Profit Before Tax £m Leverage Post IFRS-16 X CAGR 12% 39.8 3.4 9.8 9.8 28.5 9.7 25.3 9.6 24.3 3.0 9.5 2.7 2.7 2.5 | Equiniti Group plc 2020 -71.7 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Continuing progress against key metrics 14

Capital Allocation Model Organic business Operating cash flow deployment Shareholder Structural growth Organic Deleverage Acquisitions returns 30% Strong cash generation investment 2.0 – 2.5x > 15% ROCE of underlying Strong operating leverage 6 – 7% of revenue profit 3 – 7% Organic Optimised capital allocation revenue growth | Equiniti Group plc 2020 Progressive earnings and dividend growth 15

Review Financial 16 | Equiniti Group plc 2020

Group Income Statement £m 2019) 2018*) Change %**) Revenue 555.7 ) 530.9) 4.7 ) 136.0 ) 129.5) 5.0 ) Underlying EBITDA (12.9) (12.0) 7.5) Depreciation Amortisation – software (29.9) (23.9) 25.1) (31.8) (31.7) 0.3) Amortisation – acquired intangibles EBIT prior to non-operating charges 61.4) 61.9) (0.8) Non-operating charges (5.5) (20.8) (73.6) EBIT 55.9 ) 41.1) 36.0 ) Finance costs (16.1) (16.8) (4.2) Profit before tax 39.8 ) 24.3) 63.8 ) • Amortisation of software higher due to the completion of the development of a number of significant projects, such as investment in the US and MiFID II, where the work completed in 2018 and the assets became available to use with amortisation of the assets commencing • Cessation of non-operating charges following separation of EQ US in May 2019 | Equiniti Group plc 2020 * 2018 numbers throughout this presentation have been revised to reflect impact of IFRS 16 ** Change at actual foreign exchange rates. Revenue change at constant foreign exchange rates is 4.0% and underlying EBITDA is 4.5% Progress across key metrics 17

Group Income Statement Reported) Organic) £m 2019) 2018) Change %*) Change %**) Revenue Investment Solutions 149.7) 142.5) 5.1) 3.7) Intelligent Solutions 170.9) 165.9) 3.0) 3.0) Pension Solutions 127.0) 129.0) (1.6) (5.5) Interest Income 14.1) 12.1) 16.5) 16.5) Total UK & Europe 461.7 ) 449.5) 2.7 ) 1.1 ) EQ US*** 94.0) 81.4) 15.5) 2.7) Group Revenue 555.7 ) 530.9) 4.7 ) 1.4 ) Underlying EBITDA Investment Solutions 50.2) 48.5) 3.5) Intelligent Solutions 43.5) 41.1) 5.8) Pension Solutions 19.5) 22.3) (12.6) Interest Income 14.1) 12.1) 16.5) Total UK & Europe 127.3 ) 124.0) 2.7 ) EQ US*** 23.1) 20.3) 13.8) Divisional Total 150.4 ) 144.3) 4.2) Central Costs (14.4) (14.8) (2.7) | Equiniti Group plc 2020 Group Underlying EBITDA 136.0 ) 129.5) 5.0 ) Group Underlying EBITDA margin % 24.5 ) 24.4 ) 0.1 ) *EQ US reported revenue change at constant foreign exchange rates is 11.0% and underlying EBITDA is 10.5%. **Organic change % is at constant foreign exchange rates ***The acquisition of EQ US completed on 1 February 2018 and results were consolidated into the Group from that date. Prior period performance is from 1 February 2018 to 31 December 2018 Good progress across the Group 18