Black Knight Financial Services, Inc.s2.q4cdn.com/723338038/files/doc_presentations/2017/BKFS...support all aspects of servicing and default –from loan boarding to disposition Black

1Black Knight Financial Services TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, or an affiliate. © 2017 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, or an affiliate. © 2016 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.

Black Knight Financial Services, Inc.

June 2017

2Black Knight Financial Services TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, or an affiliate. © 2017 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.

Disclaimer

Forward-Looking Statements

This presentation contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including

statements regarding expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on

Black Knight management's beliefs, as well as assumptions made by, and information currently available to, them. Because such statements are based on

expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Black Knight

undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties

that forward-looking statements are subject to include, but are not limited to: our ability to successfully achieve the conditions to and consummate the tax-free spin-

off of Black Knight from Fidelity National Financial, Inc.; electronic security breaches against our information systems; our ability to maintain and grow our

relationships with our customers; changes to the laws, rules and regulations that impact our and our customers’ businesses; our ability to adapt our services to

changes in technology or the marketplace; the impact of any potential defects, development delays, installation difficulties or system failures on our business and

reputation; changes in general economic, business, regulatory and political conditions, particularly as they affect the mortgage industry; risks associated with the

availability of data; the effects of our substantial leverage on our ability to make acquisitions and invest in our business; risks associated with our structure and

status as a “controlled company;” our ability to successfully integrate strategic acquisitions; and other risks and uncertainties detailed in the “Statement Regarding

Forward-Looking Information,” “Risk Factors” and other sections of our Annual Report on Form 10-K and other filings with the Securities and Exchange

Commission.

Non-GAAP Financial Measures

This presentation contains non-GAAP financial information, including Adjusted Revenues, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Earnings, Pro

Forma Adjusted Net Earnings and Adjusted Net Earnings Per Share. These are important financial performance measures for Black Knight, but are not financial

measures as defined by generally accepted accounting principles (“GAAP”). The presentation of this financial information is not intended to be considered in

isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Black Knight uses these non-GAAP

financial performance measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Black Knight believes

they provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater

transparency with respect to key metrics used by management in its financial and operational decision making, including determining a portion of executive

compensation. Black Knight also presents these non-GAAP financial performance measures because it believes investors, analysts and rating agencies consider

them useful in measuring Black Knight’s ability to meet its debt service obligations. By disclosing these non-GAAP financial performance measures, Black Knight

believes it creates for investors a greater understanding of, and an enhanced level of transparency into, the means by which the management of Black Knight

operates the company. These non-GAAP financial measures are not measures presented in accordance with GAAP, and Black Knight’s use of these terms may

vary from that of others in Black Knight’s industry. These non-GAAP financial measures should not be considered as an alternative to net earnings, operating

income, revenues, cash provided by operating activities or any other measures derived in accordance with GAAP as measures of operating performance or

liquidity. Black Knight has not provided a reconciliation of forward-looking Adjusted Net Earnings Per Share and Adjusted EBITDA growth to the most directly

comparable GAAP financial measures, due primarily to variability and difficulty in making accurate forecasts and projections of non-operating matters that may

arise, as not all of the information necessary for a quantitative reconciliation is available to Black Knight without unreasonable effort. See the Appendix for further

information.


Company Overview


Our Mission

To be the PREMIER BRAND for technology

in the mortgage industry, known for

PRODUCT EXCELLENCE; and to deliver

INNOVATIVE, SEAMLESSLY INTEGRATED

PRODUCTS with SUPERIOR CAPABILITIES,

FUNCTIONALITY and SUPPORT that enable

our clients to:

Realize greater efficiencies and drive

improved financial performance

Better manage and mitigate risk


Black Knight Financial Services Overview

2016 Adjusted Revenues: $1,033M(2)

Servicing Technology

$689M

Origination Technology

$166M

Data & Analytics $178M

Specialty

Servicing

Core

Servicing

67%

16%

17%

Percent of all first mortgages

processed using our servicing

technology(1)

Significant presence in top 25 U.S.

mortgage servicers and originators

Percent of U.S. population included

in Black Knight data

~61%

TOP

25

99.99%

Top provider of integrated

technology, data and analytics to

the U.S. mortgage industry

(1) As of December 31, 2016

(2) See Appendix for non-GAAP reconciliations


KEY MILESTONES FINANCIAL PERFORMANCE

Continued strong business momentum

Delivering on growth initiatives with new wins

Signed 3rd largest mortgage servicer in the U.S. and two of the top

50 lenders

Strengthened product portfolio with new innovative solutions and

two strategic acquisitions

LoanSphere Data Hub, loss mitigation and claims servicing

Acquired eLynx in May; supports full e-mortgage origination

process

Acquired Motivity Solutions in June; expands real-time business

intelligence and analytics capabilities

Significant deleveraging since the IPO (4.3x at IPO vs. 3.1x at

3/31/17)(1)

Adj. Revenue Growth

YoY

Adj. EBITDA Growth

Adj. EBITDA

Margin

Adj. Net Earnings

Growth YoY

2016(2)

10%

12%

16%

+80bps

Significant Momentum Since IPO

(1) Reflects net LTM leverage as of 3/31/15 on a pro forma basis factoring in the IPO proceeds and debt refinancing from May 2015.

(2) The period prior to the IPO is on a pro forma basis. See Appendix for non-GAAP reconciliations.


Unique and Compelling Business Model

Hosted SaaS solutions Economies of scale benefits

Long-term contractsSignificant and predictable

recurring revenue

Volume-based pricing with minimums;

annual COLAEmbedded volume and pricing growth

Mission critical technology

solutions and productsDeep, long-term relationships

CHARACTERISTICS BENEFITS


Historically: Fragmented Industry; Multiple Technology Vendors


Black Knight Delivers Technology, Data and Analytics

Across the Loan Lifecycle

Broadest and most complete

product offering versus any

of our competitors


Servicing Technology

BUSINESS OVERVIEW

Proven, reliable and comprehensive technology solutions that

support all aspects of servicing and default – from loan boarding to

disposition

Black Knight technologies help servicers improve quality, reduce

cost and help mitigate risk

MSP, the industry’s leading servicing platform, is augmented by

LoanSphere, a workflow and business process automation platform

KEY TRENDS

Heightened regulatory environment is pushing servicers to industry-

standard technology and scalable solutions through workflow and

rules-based technology

2016 Adjusted Segment Revenues: $689 million (67% of total)(1)

(1) Adjusted Revenues for the Technology segment are presented in conformity with Accounting Standards Codification 280, Segment Reporting; therefore, it is considered a GAAP financial measure.


Origination Technology

BUSINESS OVERVIEW

Loan Origination Systems automate and facilitate the origination or

acquisition of mortgage loans

Empower supports retail and wholesale loan originations

LendingSpace supports correspondent loan originations

Exchange is a large, interconnected platform of real estate parties

that allows lenders and service providers to connect and do

business electronically

Closing Insight suite helps meet loan quality and disclosure

requirements established by regulators and government sponsored

entities

eLynx is a leading provider of eMortgage and document support

technology to the mortgage industry (acquired May 2016)

Lenders looking to replace in-house technologies with scaled 3rd

party providers that help manage increasing costs to originate loans

KEY TRENDS


(1) Adjusted Revenues for the Technology segment are presented in conformity with Accounting Standards Codification 280, Segment Reporting; therefore, it is considered a GAAP financial measure.


Data & Analytics

Data & Analytics (“D&A”) delivers solutions into multiple segments

grouped into 3 primary categories:

Mortgage (Origination, Default & Servicing)

Secondary Market (Capital Market, Investors & Government)

Real Estate Professionals (Associations, Brokers/Agents & Title)

One of the largest public and proprietary data sets in the U.S.,

including 99.99% of the population and 96% of all mortgage

transactions, enables unique D&A offerings delivered through our

core platforms

BUSINESS OVERVIEW

Increasing need for integrated data & analytics to enhance decision

making and minimize risk in response to changing customer

dynamics, regulatory demands and risk appetite

KEY TRENDS


(1) Adjusted Revenues for the Data & Analytics segment are presented in conformity with Accounting Standards Codification 280, Segment Reporting; therefore, it is considered a GAAP financial measure.


Large Whitespace Opportunity With Existing Customers

New products signed on by Top 10 clients since 2015 IPO. BKFS logo represents products deployed where revenue is currently being recognized

1 Client 1

2 Client 2

3 Client 3

4 Client 4

5 Client 5

6 Client 6

7 Client 7

8 Client 8

9 Client 9

10 Client 10

Clients Other Servicing Technologies Origination Technologies Data & Analytics Products MSP

(1) As of March 31, 2017


Black Knight Growth Strategy

Selectively Pursue Strategic

Acquisitions

Powerful Focus and Dedication to

Staying Current with Regulatory

Requirements

Continue to Innovate and Introduce New

Solutions

Win New Clients in Existing Markets

Further Penetration of Our Solutions

with Existing Clients


Enterprise client deals make DEEP relationships DEEPER

Enterprise Client Deals Deliver Significant Revenue Upside

Y1 Y2 Y3 Y4

Enterprise Client Revenue Expansion

2XBASE

3XBASE

Servicing

Technology

Origination

TechnologyData &

Analytics


Black Knight Financial Services

Powerful sector trends creating

significant growth opportunities

Market leading provider of end-to-

end solutions

Broad and deep client relationships with top mortgage

institutions

Large whitespace opportunity with

existing customers

Differentiated data assets and analytics

capabilities

Highly recurring and resilient revenue

Scalable and cost effective operating

model

World class management team with track record of

success


Financial Overview


Unique and Compelling Business Model

Hosted SaaS solutions Economies of scale benefits High margins

Long-term contractsSignificant and predictable

recurring revenueHigh revenue visibility

Mission critical technology

solutions and productsDeep, long-term relationships Long term customers

Volume-based pricing

with minimums;

annual COLA

Embedded volume and

pricing growthStrong organic growth

CHARACTERISTICS BENEFITS FINANCIAL IMPLICATION


Highly Recurring and Resilient Revenue

$670 $719 $745

$865 $940

$1,033

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

$2,400

$2,600

$2,800

$0

$200

$400

$600

$800

$1,000

$1,200

2011 2012 2013 2014 2015 2016

Servicing Origination D&A Total Mortgage Originations

Highly predictable business model through all economic cycles

Black Knight revenues largely independent from mortgage volumes

Stable and predictable revenue base

>99% revenue retention from 2015 to 2016(1)

>80% recurring revenue

Deep, entrenched, long-term customer

relationships

No major client has left (excluding M&A

activity)

Avg. contract 3-5 years; top 10 clients 20+

year tenure

Source: Management, Mortgage Bankers Association

(1) Of the customers representing 95% of revenues in 2015, approximately 99% continue to be customers in 2016

(2) Amounts represent Adjusted Revenues for the respective periods. See appendix for non-GAAP reconciliations

$B$M

Highly Resilient Revenues(2)


$745$865 $940

$1,033

2013 2014 2015 2016

Historical Financial Performance

$97

$67

$96$80

2013 2014 2015 2016

(1) See appendix for non-GAAP reconciliations

(2) 2013 Capex represents former LPS Technology, Data and Analytics segment, plus assumed fifty percent of LPS Corporate and Other Capex

$197$288

$318$383

2013 2014 2015 2016

Adjusted

EBITDA &

Margin(1)

Adjusted

Revenues(1)

Adjusted

EBITDA Less

Capex

Capex(2)

($ in millions)

New Management Team

Annual

Technology Data & Analytics

$294$355

$414$463

39.5%41.0%

44.0% 44.8%

2013 2014 2015 2016


Capital Structure and Deleveraging

Significant deleveraging from 4.3x(2) at IPO

($ in millions) As of 3/31/17 Maturity Interest Rate

Cash and Cash Equivalents $ 108

Revolver ($400mm) 50 2020 LIBOR + 200bps

Term A Loan 730 2020 LIBOR + 200bps

Term B Loan 393 2022 LIBOR + 225bps / 75bps floor

Senior Notes 390 2023 5.75%

Total Long-term Debt(1) $1,563

Capital Lease Obligation 9 2017 0.00%

Total Debt $1,572

Net Debt $1,464

LTM 3/31/17 Adjusted EBITDA $ 472

Total Debt / LTM Adjusted EBITDA 3.3x

Net Debt / LTM Adjusted EBITDA 3.1x

(1) Excludes unamortized bond premium, original issue discount and debt issuance costs

(2) Reflects net LTM leverage as of 3/31/15 on a pro forma basis factoring in the IPO proceeds and debt refinancing from May 2015


Capital Allocation Framework

Continue to invest in the business

Product development and implementation resources

Critical infrastructure (i.e., hardware for hosting, information security)

Repay debt

Target leverage of approximately 3.0x

Maintain ample liquidity

Pursue targeted acquisitions

Small size product-focused, tuck-in acquisitions

Return cash to shareholders

Opportunistic share repurchases


Appendix


Non-GAAP Financial Measures

Adjusted Revenues – We define Adjusted Revenues as Revenues adjusted to include the revenues that were not recorded by Black

Knight during the periods presented due to the deferred revenue purchase accounting adjustment recorded in accordance with GAAP.

These adjustments are reflected in Corporate and Other.

Adjusted EBITDA – We define Adjusted EBITDA as Net earnings (loss), with adjustments to reflect the addition or elimination of certain

income statement items including, but not limited to (i) Depreciation and amortization; (ii) Interest expense; (iii) Income tax expense

(benefit); (iv) Other expense (income), net; (v) Loss (gain) from discontinued operations, net of tax; (vi) deferred revenue purchase

accounting adjustment recorded in accordance with GAAP; (vii) equity-based compensation, including related payroll taxes; (viii)

transition and integration costs; (ix) costs associated with debt and/or equity offerings, including the planned tax-free spin-off of Black

Knight from FNF; (x) member management fees paid to FNF and THL Managers, LLC; (xi) acquisition-related costs; (xii) significant

legal and regulatory matters; and (xiii) exit costs, impairments and other charges. These adjustments are reflected in Corporate and

Other.

Adjusted EBITDA Margin – Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by Adjusted Revenues.

Adjusted Net Earnings and Pro Forma Adjusted Net Earnings – We define Adjusted Net Earnings as Net earnings with adjustments

to reflect the addition or elimination of certain income statement items including, but not limited to (i) the net incremental depreciation

and amortization adjustments associated with the application of purchase accounting; (ii) deferred revenue purchase accounting

adjustment recorded in accordance with GAAP; (iii) equity-based compensation, including related payroll taxes; (iv) costs associated

with debt and/or equity offerings, including the planned tax-free spin-off of Black Knight from FNF; (v) member management fees paid to

FNF and THL Managers, LLC; (vi) acquisition-related costs; (vii) significant legal and regulatory matters; and (viii) adjustment for income

tax expense at our full year estimated effective tax rate, assuming the conversion of all the shares of our Class B common stock into

shares of Class A common stock, assuming that Black Knight was a taxable entity as of the beginning of the earliest period presented

and assuming the effect of the non-GAAP adjustments. For periods that include the results of operations prior to the third quarter of

2015, Pro Forma Adjusted Net Earnings would further include pro forma adjustments to present interest expense as if the amount of

debt outstanding and applicable interest rates as a result of the debt refinancing were consistent for all periods prior to the debt

refinancing.

Adjusted Net Earnings Per Share – We calculate per share amounts assuming the exchange of all shares of Class B common stock

into shares of our Class A common stock at the beginning of the respective period, as well as the dilutive effect of any unvested

restricted shares of Class A common stock.


Non-GAAP Reconciliations: Adjusted Revenues

Years Ended

December 31,

($ in millions) 2016 2015 2014 2013 2012 2011

Revenues $ 1,026.0 $ 930.7 $ 852.1 $ 744.8 $ 718.9 $ 670.4

Deferred revenue purchase accounting adjustment 7.3 9.6 12.8 - - -

Adjusted Revenues $ 1,033.3 $ 940.3 $ 864.9 $ 744.8 $ 718.9 $ 670.4


Non-GAAP Reconciliations: Adjusted EBITDA

Years Ended

December 31,

LTM Ended

March 31,

($ in millions) 2016 2015 2014 2013 2017

Net earnings (loss) $ 133.0 $ 82.4 $ (107.1) $ 84.2 $ 133.8

Depreciation and amortization 208.3 194.3 188.8 83.6 212.9

Interest expense 67.6 89.8 128.7 53.6 67.5

Income tax expense (benefit) 25.8 13.4 (5.3) 45.7 25.6

Other expense (income), net 6.4 4.6 12.0 (0.2) 7.6

Discontinued operations, net of tax — — 0.8 0.9 —

EBITDA 441.1 384.5 217.9 267.8 447.4

Deferred revenue purchase accounting adjustment 7.3 9.6 12.8 — 6.4

Equity-based compensation 12.4 11.4 6.4 15.6 15.1

Transition and integration costs — — 110.3 — —

Debt and/or equity offering expenses 0.6 4.4 — — 1.8

Management fees — 3.6 9.0 — —

Acquisition-related costs 1.7 — — — 1.7

Legal and regulatory matters — — (1.5) 2.5 —

Exit costs, impairment and other charges — — — 8.1 —

Adjusted EBITDA $ 463.1 $ 413.5 $ 354.9 $ 294.0 $ 472.4

Adjusted EBITDA Margin (%) 44.8% 44.0% 41.0% 39.5%


Non-GAAP Reconciliation: Adjusted Net Earnings and Pro Forma Adjusted

Net Earnings

Years Ended

December 31,

($ in millions, except per share) 2016 2015

Net earnings $ 133.0 $ 82.4

Depreciation and amortization purchase accounting adjustment 90.1 90.3

Deferred revenue purchase accounting adjustment 7.3 9.6

Equity-based compensation 12.4 11.4

Debt and/or equity offering expenses 0.6 9.2

Management fees — 3.6

Acquisition-related costs 1.7 —

Legal and regulatory matters 6.4 —

Interest expense adjustment — 23.3

Income tax expense adjustment (76.1) (78.4)

Adjusted Net Earnings / Pro Forma Adjusted Net Earnings $ 175.4 $ 151.4

Adjusted Net Earnings Per Share $ 1.15

Weighted Average Adjusted Shares Outstanding 152.7

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