corporate presentation - investors.equiniti.com · corporate events registration • management of...

1 Equiniti Group plc


CORPORATE PRESENTATION


INTRODUCTION


FY 2017 REVENUE SHARE1

INV

ESTM

ENT

SOLU

TIO

NS

REGISTRATION SERVICES

Registration

Shareholder services

Corporate actions and dividends

EMPLOYEESERVICES

Employee benefit schemes

Employee share plans

INVESTMENTSERVICES

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

INTELLIGENTSOLUTIONS

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 estimates1. 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


INVESTMENT SOLUTIONS


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 of 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

SpecialistShare

Dealing

CorporateActions

SIP & Executive

SharePlans

RetailShare

Dealing

InternationalPayments

PROPRIETARY TECHNOLOGYPLATFORM

Xanite Payfac

BereavementServices


INVESTMENT SOLUTIONS – REVENUE MODEL

REGISTRATION SERVICES EMPLOYEE SERVICES INVESTMENT SERVICES

Investment SolutionsReported

FY 2017£m

ReportedChange

%

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

BereavementServices

CorporateActions

• 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 SpecialistShare

Dealing

RetailShare

Dealing

InternationalPayments

• FX margin and transaction fees

• Dealing commissions • Foreign exchange• Custody fee

• Contracted

• Paid by the corporate client

CONTRACTED REVENUEc. 60%


TRANSACTIONAL REVENUEc. 80%

REVENUEVISIBILITY


INTELLIGENT SOLUTIONS


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

Proprietarytechnology platforms:

Charter

Pancredit

#4COMPLAINTS, 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


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 SOLUTIONSReported

FY 2017£m

ReportedChange

%

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 REVENUEc. 70%

REVENUEVISIBILITY

CREDIT SERVICING

DATA ANALYTICS


PENSION SOLUTIONS


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

ProprietaryTechnology Platform:

CONTRACTED

PROJECT &SOFTWARE

#2THIRD PARTY

ADMINISTRATION

~15% MARKET SHARE

MARKET POSITION

#1PUBLIC 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


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 of pensioners

– Software project income charged on a time and materials basis

– Ancillary income charged as cost + pricing

PENSION SOLUTIONSReported

2017£m

ReportedChange

%

Organic Change

%

Revenue (£m) 139.0 0.7 0.7

Underlying EBITDA (£m) 24.6 (11.2)

Underlying EBITDA margin (%) 17.7 (2.4)


REVENUEVISIBILITY

REVENUE TYPE


FINANCIAL RESULTS


GR

OW

THD

ELEV

ERA

GIN

GEA

RN

ING

S

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


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

ORGANICPROGRESSION

FAVOURABLEOUTLOOK

A YEAR OF STRONG PROGRESS


Reported 2017

Reported 2016

Reported Change %

Organic Change %

REVENUE (£m)Investment SolutionsIntelligent SolutionsPension SolutionsInterest Income

132.3124.7139.0

10.1

124.0109.3138.1

11.2

6.714.1

0.7(9.8)

6.72.80.7

(9.8)

Equiniti Group 406.1 382.6 6.1 2.9

Underlying EBITDA (£m)Investment SolutionsIntelligent SolutionsPension SolutionsInterest IncomeCentral Costs

43.533.024.610.1

(12.7)

37.528.327.711.2

(12.3)

16.016.6

(11.2)(9.8)

3.3

Equiniti Group 98.5 92.4 6.6

Underlying EBITDA margin (%)Investment SolutionsIntelligent SolutionsPension Solutions

32.926.517.7

30.225.920.1

2.70.6

(2.4)

Equiniti Group 24.3 24.2 0.1

DELIVERING ON OUR FINANCIAL COMMITMENTS


APPENDIX


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


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


HAZELL CARR REGULATORY RESOURCES

ICS COMPUTINGCASE MANAGEMENT, PAYROLL SERVICES, NEAR-SHORE BPO SERVICES

360 CLINICALMEDICAL REVALIDATION PLATFORM AND SERVICES

KILLIK GLOBALSHARE PLANS EXECUTIVE SHARE PLANS

TOPLEVELDIGITAL SOLUTIONS

DAVID VENUS COMPANY SECRETARIAL SERVICES

NAT WEST EXEC DEALING EXECUTIVE SHARE DEALING

PRISM COSECCOMPANY SECRETARIAL SERVICES

JP MORGANCDS EXECUTIVE CORPORATE DEALING SERVICES

PANCREDIT LOAN ADMINISTRATION

INVIGIA COMPLAINTS HANDLING SOFTWARE

TRANSGLOBAL PAYMENT SOLUTIONSINTERNATIONAL PAYMENTS

XAFINITY GROUPPENSION SOLUTIONS

PROSEARCHASSET REUNIFICATION SERVICES

PETER EVANSFINANCIAL SERVICES SOFTWARE

SELFTRADEONLINE SHARE EXECUTION PLATFORM

KYCNETKNOW YOUR CUSTOMER TECHNOLOGY & SERVICES

RISKFACTORFRAUD & DATA ANALYTICS

REGULATORY CAPABILITY TECHNOLOGY CAPABILITY BOTH

2017

MARKETING SOURCEDATA ANALYTICS & CYBER SECURITY

GATEWAY2FINANCEMORTGAGE AND CONSUMER CREDIT EXPERTISE

NOSTRUMEND-TO-END LOAN MANAGEMENT TECHNOLOGY

2008 2009 2010 2011 2012 2013 2014 2015 2016

2018

2017 2018

Well Fargo Shareholder ServicesSHARE REGISTRATION

ACQUISITIONS – THE JOURNEY

corporate presentation - investors.equiniti.com · corporate events registration • management of...

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