Q 15 Results 25 November 2015
Q 15 Results Company overview A leading global provider of T&CS with strong market position Highly educated workforce providing high-value services worldwide Diversified client portfolio with high customer retention Adj. revenue 1 : 296m Adj. EBITA margin 1 : 41% Organic adj. revenue CAGR 1 : 6% Organic adj. EBITA CAGR 1 : 1% 26 countries9 6 offices9 40,000+ entities 1,52 FTEs2 Global presence adj. Americas EMEA Asia Diversified client base revenue 8 Cayman Islands Amsterdam Guernsey 6 Luxembourg by geography 1 Atlanta Delaware Brussels Helsinki 9 Oslo 9 Beijing Private clients Corporate 7 RoW Netherlands 18% 51% 19% 5% Bahamas Houston Copenhagen Istanbul Rotterdam Guangzhou BVI 4 New York Cyprus London Stockholm Hong Kong Capital Guernsey Curaçao 5 San markets 8% Dubai Madrid Zug Shanghai Francisco 10% Dublin Malmö Zürich Singapore Cayman Islands Luxembourg São Paulo Funds Geneva Tokyo 16% 22% Toronto 22% 1. 2014 financials before specific items and one-off adj. revenue/expenses; CAGRs based on 2011-14 organic growth including FX; excluding any impact from CorpNordic 2. 2014 full-time employees ( FTEs ) Source: Company. George Town 4. Road Town 5. Willemstad 6. St. Peter Port 7. Includes financial institutions 8. Management estimates for 2014 9. Following CorpNordic acquisition 2
Q 15 Results Our strategy is built on five key success factors 1 Invest in human capital 2 Grow organically Lead market consolidation 4 Continuously improve operational excellence Attract, develop, engage and retain bestin-class talent globally Global Intertrust Academy International mobility program Pay for performance Grow with our existing clients Number of entities Average revenue per entity ( ARPE ) Grow with our business partners Increase cross-selling Expand network Develop new services Increase scale Expand into complementary services Expand footprint Increase productivity Leverage fixed cost base Invest in Information Technology 5 Maintain industry-leading risk management practices Maintain recognition by regulators and business partners for industry-leading compliance standards Independent risk-monitoring functions
Q 15 Results Successful IPO of Intertrust Listing and first trading on Euronext Amsterdam on 15 October 2015 IPO price at 15.50 per share Implied equity value at offering c. 1.bn Total offering size of c. 500m Total number of offered shares of 1.7m Free float of 7.% 1 Notes: 1. Post exercise of the over-allotment option 2. As of 17 November 2015 4
Q 15 Results Continuing to deliver on our objectives What are our objectives? Metric H1 15 YTD results Q 15 results Adj. revenue 1 Continue historical trends and aim for above market growth Revenue growth Organic growth at CC 2 +15.6% (y-o-y) +8.1% (y-o-y) +19.8% (y-o-y) +9.8% (y-o-y) Adj. EBITA 1 Continued adj. EBITA progression in line with historical trends Adj. EBITA growth Organic growth at CC 2 +10.4% (y-o-y) +.9% (y-o-y) +20.4% (y-o-y) +12.2% (y-o-y) Cash Continued high cash 97.6% Cash conversion conversion (94.5% H1 14) 97.7% (95.5% Q 14) Notes: 1. Adjusted financials before specific items and one-off revenues/expenses 2. Organic growth excluding CorpNordic acquisition at constant currency. Cash conversion = OpFCF / Adjusted EBITDA, where OpFCF = Adjusted EBITDA Maintenance Capex 5
( m) Q 15 Results Q results demonstrating continued strong organic 41,7% 40.5% growth (40.7% excl. 9,6% 9.8% (40.5% excl. CorpNordic) 72,9 87, 28,8 4,7 216,6 90, CorpNordic) 25,4 102,6 Adj. revenue Q 15 Y-o-Y YTD Sep 15 Y-o-Y Total growth 2 19.8% 17.0% Organic growth 16.2% 15.8% Organic growth at constant currency 4 9.8% 8.6% Adj. EBITA Q 14 Q 15 YTD Sep 14 YTD Sep 15 Adj. revenue¹ Adj. EBITA¹ Adj. EBITA margin Total growth 2 20.4% 1.6% Organic growth 18.8% 1.1% Organic growth at constant currency 4 12.2% 6.5% Strong revenue growth highlights Intertrust s continuing ability to outperform the market and gain additional market share, particularly in Netherlands and in Luxembourg Profitability improvement in Q (+20 bps over Q 14 including CorpNordic, +90 bps excluding CorpNordic) driven by: Strong revenue growth Effect of operating leverage as the FTE s hired in Q4 and Q1 were increasingly billable and measures to improve operating efficiency started taking effect Q is historically dilutive in EBITDA margin terms as revenue line suffers from reduced number of billable hours due to summer holidays YTD margin over 2014-15 decrease mainly driven by additional investments in billable staff, IT and expenses to support business growth Notes: 1. Adjusted financials before specific items and one-off revenues/expenses 2. Total growth of adjusted financials. Organic growth excluding CorpNordic acquisition 4. Organic growth excluding CorpNordic and at constant currency 6 6
( m) Q 15 Results Group trading update - September YTD 2015 Margin % Revenue and Adj. EBITA (Actual growth) 41.7% 40.5% Key performance indicators YTD 2014 YTD 2015 216,6 25,4 Total Revenue Growth 2 17.0% Organic Revenue Growth (in CC without CorpNordic) 1 8.6% 90, 102,6 # of entities (k) 40.7 42.1 ARPE ( k) 7.1 8.0 ARPE Growth 1.1% ARPE Growth (CC) 1 6.2% YTD 2014 YTD 2015 YTD 2014 YTD 2015 Revenue Adj. EBITA FTE 1491 171 Revenue / FTE ( k) 19.7 197.2 EBITA / FTE ( k) 80.7 79.8 1. CC refers to constant currency without CorpNordic 2. Including FX. Annualised numbers Source: Reported YTD 2014 and reported YTD 2015 financials before specific items and one-off revenue/expenses 7 7
Q 15 Results Significant increase in the number of entities and in ARPE Entities ARPE 1,2 ( k) Total growth.4% Total 1.1% growth Organic growth 4 40,7 1.6% 42,1 Organic growth 4 7,1 1.9% 8.0 (8.1 excl CorpNordic) 40 Sep 14 Sep 15 YTD Sep 14 YTD Sep 15 Net inflows of +1,85 entities between Sep-14 and Sep-15, of which +671 through organic growth and +714 entities acquired through CorpNordic Notes: 1. Average revenue per entity ("ARPE") 2. Annualised numbers based on adjusted revenue before specific items and one-off revenue/expenses. Including CorpNordic 4. Organic growth excluding CorpNordic 8 8
Q 15 Results FTE growth to support new business FTEs Revenue per FTE 1,2 ( k) Total growth 14.9% Total 1.8% growth Organic growth 4 1.491 10.1% 1.71 Organic growth 4 19,7 5.2% 197.2 (20.8 excl. CorpNordic) Sep 14 Sep 15 YTD Sep 14 YTD Sep 15 Net increase of 222.1 FTEs over the last 12 months period ended in September 2015: +72.1 through CorpNordic acquisition +122.4 billable FTE, mainly in the Netherlands and Luxembourg to support business growth +27.6 non-billable FTE, partially to support IT initiatives Notes: 1. Full-time employees 2. Annualised numbers based on adjusted revenue before specific items and one-off revenue/expenses. Including CorpNordic 4. Organic growth excluding CorpNordic 9 9
Q 15 Results Cash conversion remains strong OpFCF² ( m) Cash conversion¹ 28.9 5.7 89.8 105. 95,5% 97,7% 94,8% 97,7% Capex ( m) Maintenance Capex ( m) 1.4 0.8 4.9 2.5 Strategic Capex ( m) 2.6 2.0 6.2 4.9 11,1 7,4 4,0 2,8 Q 14 Q 15 YTD YTD Q 14 Q 15 YTD YTD Strategic capex driven by implementation of the BAR programme in Switzerland and in the Nordics, including CorpNordic acquisition Focus on business initiatives driving lower maintenance capex Notes: 1. Cash conversion = OpFCF / Adj. EBITDA 2. OpFCF = Adj. EBITDA Maintenance Capex 10 10
Q 15 Results Impact of regulatory environment remains unchanged Updated BEPS recommendations inline with expectations, FATCA and AIFMD continue to contribute to revenue growth Regulators' goals Increased transparency and reporting requirements Examples of measures FATCA (entered into force in 1, initial reporting started in 15, full reporting by 18) AIFMD (transposed into national law in July 1, end of transition for EU managers in Jul 14, end of transition non-eu managers beyond 18) Common Reporting Standard (early adopters in Jan 2016) BEPS (Recommendations finalized in Sep 15, countries to decide on national implementation) Impact on Intertrust FATCA revenues of approx. 1m in 2014 AIFMD created business opportunity for us to offer Depository Services as well as Manco Services. Increasingly complex reporting requirements expected to further increase demand for administrative work from affected clients Prevent aggressive tax planning practices BEPS (Recommendations finalized in Sep 15, countries to decide on national implementation): Amendment to EU Parent Subsidiary Directive (to be transposed in national law by Jan 16) Key tax and non-tax related drivers for setting up entities will remain in place. Over medium to long term, some jurisdictions may be come more attractive for certain types of new incorporations, some less Increased demand for additional services, increasing revenues per entity Impact on market dynamics Increased revenue per entity Increased competitive advantage for large players Increased outsourcing by clients 11 11
Q 15 Results Current trading Current trading Revenue: for Q4 2015 in line with the growth achieved in the first 9 months of 2015 Adj EBITA margin: further modest margin improvement in Q4 2015 over the YTD margin excluding Corp Nordic Dividend policy Target dividend in the range of 40% to 50% of adjusted net income 1 Dividends to be paid in semi-annual installments First interim payment expected in Q4 2016 for the year ending 1 December 2016 1. Adjusted net income calculated as adjusted EBITA less net interest cost, less tax cost calculated at effective tax rate 12
About Intertrust Our services. Aligned to your needs. We provide high quality trust and corporate services to multinational corporations, financial institutions, alternative investment funds and entrepreneurs from every corner of the world. Our services are supported by: Our global ICT Platform Working with a single point of contact Ongoing feedback loops to keep improving Aligning our services to your needs Corporate services Registered agent Registered office Fiduciary management Corporate secretarial Legal administration Accounting & reporting Transaction support & project management Formation & liquidation support Specialist services groups > Securitization services (e.g. for CLO and ABS structures) > Escrow solutions > Treasury management services > Employee stock option plans > Business set up & infrastructure support > Real estate administration > Aviation leasing services Funds regulatory services > AIFMD services (depositary & AIF management services) > Outsourced investor compliance (e.g. AML, KYC, FATCA, AIFMD) > Retail feeder vehicles administration 1
This presentation may contain forward looking statements with respect to Intertrust s future financial performance and position. Such statements are based on Intertrust s current expectations, estimates and projections and on information currently available to it. Intertrust cautions investors that such statements contain elements of risk and uncertainties that are difficult to predict and that could cause Intertrust s actual financial performance and position to differ materially from these statements. Intertrust has no obligation to update or revise any statements made in this presentation, except as required by law. 2015 Intertrust Group B.V. This document is provided by Intertrust for information purposes only and does not constitute an offer, invitation or inducement to contract. The information herein does not constitute legal, tax, regulatory, accounting or other professional advice and therefore one should seek appropriate professional advice before considering a transaction as described in this document. No liability is accepted whatsoever for any direct or consequential loss arising from the use of this document. The text of this disclaimer is not exhaustive, further details can be found at: http://www.intertrustgroup.com/disclaimer.html