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22 November 2016
Capital Markets Day
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KYC | COMPLAINTS | SHAREPLANS
KEY ASSETS
OPERATING AT SCALE
FINANCIAL SERVICESDISRUPTION
TRADING UPDATE
M&A
TECHNOLOGY
WORKING IN PARTNERSHIP
PRESENTERS
INTRODUCTIONS
| Equiniti Group plc 20163
AMY MADDENDirector of Marketing and Communications
PHIL AINSLEYManaging Director, Employee Services
JAMES BROWNDirector, Corporate
Development
LIAM MCGRATHChief Operating Officer
ADAM GREENChief Risk Officer
ANDY EDLERBusiness Development
Director, Intelligent Solutions
SCOTT SHIELDSManaging Director,
Enterprise Workflow
PAUL MATTHEWSExecutive Director, Corporate Markets
GUY WAKELEYChief Executive Officer
| Equiniti Group plc 2016
DELIVERING IN LINE WITH MARKET EXPECTATIONS
TRADING UPDATE
4
• New clients
– Admiral
– Biffa
– GoCompare
– Retirement Advantage
• Renewed/extended relationships
– All of our FTSE100 clients
– Estate and probate administration service with a leading UK bank
– KYC and customer onboarding services with two international banks
New ClientsExisting Clients
| Equiniti Group plc 20165
INTRODUCTION
EQUINITI – KEY ASSETS
RELATIONSHIPS SCALE TECHNOLOGY PEOPLE
02 03 0401
RELATIONSHIPS
01
SCALE TECHNOLOGY PEOPLE
02 03 04
| Equiniti Group plc 20166
RELATIONSHIPS
Depthtypically > 10 services
LengthOn average
28 years
BreadthMore than 70 of
the FTSE100
RELATIONSHIPS
01
| Equiniti Group plc 20167
SCALE
£200bn of paymentsMore than The largest pension
and share registers
in Europe
mobilise tasksThe ability to
at short notice at the largest scale
processed in 2016
SCALE
02
| Equiniti Group plc 20168
TECHNOLOGY
30 proprietary platforms on UK-
owned infrastructure
More thandata and payments
Processor ofto entry and exitSignificant barriers
at Amazon scale
TECHNOLOGY
03
| Equiniti Group plc 20169
PEOPLE
PEOPLE
04
4,500 people
with significant offshore capability
sophisticated, high margin
services
Providingspecialismexperience
diversity
03Operating at scale
| Equiniti Group plc 201611
ROYAL MAIL GROUP
A NEW RELATIONSHIP
2013 2013 2016
IPO Statistics
1. Largest online offer
2. 250k applications received online in 48 hours
3. £1.1bn returned to investors via debit cards in 4 hours
Registrars & Share Plans
1. Newly created FTSE100 company
2. >400k shareholders
3. Share plans to 150k employees
Maturity1. Net £350m shares
2. 125k eligible share dealing instructions
2016
| Equiniti Group plc 201612
ROYAL MAIL GROUP
A NEW RELATIONSHIP
IVR SMS Portal
For 125k postal workersBuilding end-user customer journeys
2016
| Equiniti Group plc 2016
CORPORATE ACTIONS AT SCALE
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• Acquisition of BG Group by RDS
• Processed £13bn of payments
• Despatched 500k cheques
• Acquisition of ARM by Softbank
• Processed £24bn of payments
• >3k cash messages
• Acquisition of SABMiller by AB InBev
• Processed £39bn of payments
• Largest Crest payment in UK history
04Disruption in Financial Services
Connectedinsurance
eg wearables
Niche specialised products
Alternativelending
Strategic role of dataStreamlined
infrastructure
Automation of high-value activities
Cashlessworld
Smarter, faster machines
New market platforms
Process externalisation
eg cloudcomputing
Reduced intermediation
Customer empowerment
Crowdfunding
Empowered investors
eg social trading
Shiftingcustomer
preferenceseg virtual
technologies
Insurance disaggregation
Emergingpayment rails
eg crypto current
| Equiniti Group plc 2016
SIX CLUSTERS OF FINANCIAL SERVICES INNOVATION
WHEEL OF FINANCIAL DISRUPTION
15Source: World Economic Forum 2015
| Equiniti Group plc 2016
REGULATION
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167Compliance officers must assimilate on average 167 regulatory alerts per day.
JP Morgan CEO Jamie Dimon wrote in a letter to shareholders that the firm had spent £1.6bn on their Compliance Department, employing 13,000 people.
£1bnOver 80 pieces of legislation have been passed in the UK since the financial crisis.
80HSBC, Deutsche Bank and JPMorgan, spend over S1bn a year each on regulatory compliance and controls.
(fintechFT, 2016)(British Banking Association)
(Thomson Reuters, 2016) (IT ProPortal, 2016)
13,000
| Equiniti Group plc 2016
REGULATION
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£40mThe average bank spends £40m per year on KYC compliance with some banks spending up to £300m annually on KYC (Know Your Customer) Compliance and Customer Due Diligence (CDD).
1,997,247 complaints were opened by financial services organisations in Q2, 2015.
$1-2tnGlobal spending on AML compliance is set to grow to more than $8 billion by 2017 (a compounded annual growth rate of almost 9%).
$8bnGlobal money laundering transactions are estimated at 2 to 5% of global GDP, or roughly U.S. $1-2 trillion annually.
(Global Economic Crime Survey 2016, PwC) (Wealthlnsight)
(IT ProPortal, 2016) (Financial Conduct Authority)
1,997,247
£ The cost of regulatory compliance is growing and forecast to increase year on year
05Technology
| Equiniti Group plc 201619
TECHNOLOGY
ONBOARDING KYC
COMPLAINTS & REMEDIATION
AUGMENTED REALITY
030201 04
FURTHER CAPABILITIES
ONBOARDING KYC
01
COMPLAINTS & REMEDIATION
AUGMENTED REALITY
FURTHER CAPABILITIES
0302 04
| Equiniti Group plc 201620
KYC NET
TechnologyPlatform as a service
(PAAS) Customer onboarding
Use CaseClient onboarding and rectification for retail
and commercial banks
Clients
ONBOARDING KYC
01
| Equiniti Group plc 2016
DEMO
KYC NET
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| Equiniti Group plc 201622
EQUINITI CHARTER
Technology Use Case ClientsEnterprise workflow for financial services,
complaints management and rectification
PPI, mortgages, packaged accounts
COMPLAINTS & REMEDIATION
02
| Equiniti Group plc 2016
DEMO
EQUINITI CHARTER
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| Equiniti Group plc 201624
EQ STRATA – AUGMENTED REALITY
Augmented reality powered by HP Aurasma
Shareplan, engagement and enrolment for
mobile/global work forces
Technology Use Case Clients
AUGMENTED REALITY
03
| Equiniti Group plc 2016
DEMO
EQ STRATA – AUGMENTED REALITY
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| Equiniti Group plc 201626
FURTHER CAPABILITIES
Selftrade Compendia Risk Factor
FURTHER CAPABILITIES
04
| Equiniti Group plc 201627
EQUINITI ACQUIRES FOR CAPABILITY NOT SCALE
ACQUISITIONS
01Access to growth markets
New capabilities relevant
to existing clients base
02Include
proprietary technology
03Delivering regulation-
driven, data-intensive, non-discretionary,
mission-critical services
04RoI target
of >15% and accretive to earnings in
Year 1
05Sourced
off-market
06
| Equiniti Group plc 2016
THE JOURNEY
ACQUISITIONS
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2008 2009 2010 2011 2012 2013 2014 2015 2016
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
CLIENT RETENTION 2016
• Registration Services • Registration Services• Sharesave
• Investor Services• Registration Services
• Registration Services• Employee Services • Exec Schemes
• Registration Services
• Registration Services • SAYE• Dealing• ESN
• Registration Services • Registration Services • Registration Services • Employee Services
• Registration Services• Employee Services • Exec Schemes
• Registration Services • Employee Services
• Registration Services • Employee Services• Exec Schemes
• Registration Services • Employee Services
| Equiniti Group plc 201629
| Equiniti Group plc 201630
STRATEGIC PARTNERSHIPS
BANKING AND CAPITAL MARKETS
INVESTMENT, LIFE AND RETIREMENT
CONSUMER AND REGULATED
CHALLENGERS, LENDERS AND INSURERS
| Equiniti Group plc 201631
GROWTH/X-FACTOR
STRATEGIC PARTNERSHIPS
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
• Seven year renewal of life validation
• Pipeline of opportunities
• Relationship established
• Overseas pension payments launched
• Equiniti International Payments launched
• Life validation contract
• Growth in over-seas pension payments proposition
• Corporate FXrelationship established
• Overseas executive share plan paymentslaunched
• Five year renewal of strategicpartnership
• Overseas dividend payments undertaken
• Residual accounts
| Equiniti Group plc 2016
CITI AND EQUINITI
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IRETI OGBUEMEA HEAD OF PAYMENT AND RECEIVABLES
What we value about Equiniti is that they’re innovative, creative
and proactive.
Equiniti can help us to deploy a more digital model to our clients, to look at the adjacencies to payments such as
the life validation service, and to come up with solutions that help us to enhance our clients’ experience.
CREATING VALUE THROUGH PARTNERSHIP
| Equiniti Group plc 201633
CONCLUSIONS
Equiniti has scale capacity in regulated
markets
Multiple technology capabilities
accelerate growth
Outsourcing is only of lasting value if
technology can drive innovation
1 2 3
| Equiniti Group plc 201634
Thank you