INVESTOR PRESENTATION AUGUST 2018

Transcription

1 INVESTOR PRESENTATION AUGUST 2018

2 FORWARD LOOKING STATEMENTS This document may contain forward-looking statements and/or assumptions that involve known and/or unknown risks. Such statements and assumptions may include: the size and/or economics of the market, plans and intentions to increase market share, expand geographically, and/or further develop product capabilities; the results of strategic initiatives; and the impact of competition. These forward-looking statements and assumptions are based on the expectations of Solium and involve known and unknown risks, uncertainties and other factors that may cause or influence the actual results, market performance, or achievements to differ from any future expected results, performance or achievements expressed or implied by such forward-looking statements. Solium is not making any representation, expressed or implied, as to the accuracy or completeness of the statements or assumption of future performance and operational results made in this document. Important factors that could cause or influence such differences include, but are not limited to: inaccurate assumptions on the size and/or economic parameters of the market; changes in economic or business conditions in general; changes in the competition; changes in services provided by Solium s suppliers, alliance partners, and channel partners; changes in customer needs and expectations; and any governmental or regulatory actions. In making an investment decision, prospective investors must make their own determinations as to the reliability of these projections, assumptions and forward-looking statements. Solium undertakes no obligation to update any forward-looking statement, assumptions, or the other information herein in order to reflect events or circumstances that may arise after the date of this document. The information in this document is not to be copied, printed or distributed without the prior written approval of Solium. 2

3 A 500-EMPLOYEE COMPANY CAN GENERATE 12,500 SHARE-BASED TRANSACTIONS EACH YEAR 3

4 LAYER ON MULTIPLE JURISDICTIONS, REPORTING CURRENCIES AND TAX REGIMES 4

5 BUILDING THE WORLD S LEADING EQUITY MANAGEMENT PLATFORM 5

6 SINGLE SAAS PLATFORM Single, real-time, cloud-enabled platform Transacting on on 1513 global exchanges First and only global platform 6

7 REMOVING COMPLEXITY AND ENSURING COMPLIANCE Multi-jurisdiction operations Numerous award types Stringent compliance environment International tax & financial reporting Global & mobile employee base Multiple data entry points Manual calculations Limited access points Incompatible platforms SERVICE ADMINISTRATION COMPLIANCE REPORTING Participant transactions in real time Enhanced user support for administrators Participant support HRIS integration Grant allocation in multiple currencies Fund distribution in multiple currencies Automated processes improve data integrity Accurate audit trail Global regulatory and compliance database Streamlined report generation in real time Matrix security Report sharing functionality Enhanced international tax 7

8 OUR GLOBAL ADVANTAGE Global Shared Services 4 global operating centers (Calgary, Tempe, London, Sydney) 24/7 Call Center Participant logins in a 24-hour period Scalable enterprise offering with global capabilities Global money movement (US$8.5B 2017) Participants in over 100 Countries Unified Service Model 8

9 DIVERSIFIED CUSTOMER BASE Canada United States EMEA Australia 9

10 HOW WE SELL Direct sales force White label partners Customers Third party partners Law firms Wealth managers System integrators HCM companies 10

11 MORGAN STANLEY AND UBS PARTNERSHIPS Q FIRST CLIENT MIGRATIONS LIVE - COMPLETE ALL BY H R&D DEVELOPMENT ON TRACK AND ACHIEVING TARGET MILESTONES > 400 MORGAN STANLEY AND UBS CORPORATE CLIENTS $18M ANNUAL RECURRING REVENUE FOR MORGAN STANLEY $10M -15M INCREMENTAL R&D INVESTMENT FOR MORGAN STANLEY 37 NEW DEALS CLOSED JOINTLY WITH MORGAN STANLEY 11

12 PRIVATE MARKET FOCUS Pre-Seed Seed Series A Series B & Beyond Pre-IPO Public Early Stage Platform (Fast 409A) Later Stage/Pre-IPO (customized) valuations 409A valuations HR compensation data and planning tools Law Firms VCs Advisors & Consultants Accounting Firms Outsourced CFOs 12

13 FINANCIAL AND OPERATING METRICS

14 TTM KEY FINANCIALS (THROUGH Q2 2018) $96.4M TOTAL REVENUE $9.5M ADJUSTED EBITDA * REVENUE BY GEOGRAPHY U.S. 50% Canada 33% *International 17% *Primarily comprised of UK & Australia All $ figures in USD * Non-GAAP measure. See reconciliation of Adjusted EBITDA in the 2018 Q2 MD&A available on

15 REVENUE MODEL + + Brokerage, transaction & fund movement fees Foreign exchange spread Implementation fees Special projects & consulting 66% FIXED-RECURRING SUBSCRIPTION REVENUE 30% PARTICIPANT & PLAN BASED - REOCCURRING ACTIVITY 4% ONE-TIME 96% Based on TTM 15

16 AVERAGE ANNUALIZED TRADES PER PARTICIPANT month moving average 5-year moving average Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 16

17 GROWING ANNUAL REVENUE 5 YEAR CAGR* 11% 120 (USD, in millions) TTM * CAGR calculated

18 TTM ADJUSTED EBITDA (USD, in millions) % 20% TTM Adjusted EBITDA Margin 17% 15 14% 12% 10% TTM Q TTM Q TTM Q TTM Q TTM Q TTM Q Note: The decline in adjusted EBITDA margin is inline with the Company s expectation and reflects planned hiring to support the U.S. white label agreements 18

19 KEY FINANCIAL METRICS (USD, in millions) Q2 18 Q1 18 TTM Cash (USD, in millions) N/A Free Cash Flow* (USD, in millions) 4.0 (4.1) 7.1 Enterprise Value** (CAD, in millions) N/A * Non-GAAP measure calculated by subtracting purchases of property, plant and equipment from cash from (used in) operating activities. **Non-GAAP measure calculated by 1) multiplying closing market price of shares at the period end date by the number of shares outstanding; 2) adding debt from the revolving credit facility; and 3) subtracting cash and cash equivalents converted to CAD at the period end date. No Debt and Strong Cash Balance to Fuel Acquisitions and Support New Client Wins 19

20 GROWTH STRATEGY

21 INTERNATIONAL GROWTH OPPORTUNITIES United States Canada Leverage lead market share Market-leading presence in equity administration Expansion into ESPP market Win a share of IPOs choosing Shareworks Significant white-label and partnership potential with large Wealth Management firms UK/Europe Distribution strength through channel and direct sales Expansion into Germany via landmark German account Barcelona service centre in place to support mainland Europe Australia Success in signing Macquarie Group and BHP Billiton Continuing to build brand awareness and strong pipeline with focus on ASX 100 companies 21

22 GROWTH THROUGH A GLOBAL PLATFORM 1 ORGANIC GROWTH Direct salesforce Increase share of wallet within customer base Wide range of products for addressing multiple markets Strong distribution capabilities in all major operating markets 2 ACQUISITIONS Acquire books of business Continue to lead the consolidation Leverage diminishing marginal cost model of business 3 GEOGRAPHIC EXPANSION Continued investment in key global markets & capacity Building global scale enabling access to larger global opportunities White-Label Partnership Opportunities 22

23 LONG-TERM OPPORTUNITY Complementary products & services Asia / Pacific EMEA Canada >$1B TOTAL ADDRESSABLE MARKET Global tax & mobility Total rewards reporting US$96M TTM REVENUE United States 23

24 INVESTMENT HIGHLIGHTS 1 Robust Technology Solution Multiple Distribution Channels Strong and Predictable Subscription-Based Revenue Model Consistent Revenue Growth with 5-year CAGR of 11% Sizable Total Market Opportunity 24

25 THE GLOBAL SOLUTION FOR EQUITY COMPENSATION ADMINISTRATION