Donnelley Financial Solutions, Inc. · NYSE:DFIN
Donnelley Financial Solutions — Sidoti Summer Small Cap Virtual Conference 2022
16 slides from Donnelley Financial Solutions's conference presentation, Jun 15, 2022
Slide 1: Investor Presentation – Sidoti Summer Small Cap Conference
Investor Presentation Investor Sidoti 2022 Presentation Summer Small Cap Conference JUNE 15, 2022 AUGUST 2020 DFINsolutions.com © 2022 DFIN. All rights reserved. This presentation is the intellectual property of DFIN. The ideas expressed in it may not be adopted or reproduced without prior permissio
Slide 2: Forward Looking Statements and Use of Non-GAAP Financial Measures
FORWARD LOOKING STATEMENTS AND USE OF NON-GAAP FINANCIAL MEASURES USE OF FORWARD-LOOKING STATEMENTS This presentation includes certain "forward-looking statements" within the meaning of, and subject to the safe harbor created by, Section 21E of the Securities Exchange Act of 1934, as amended, with r
Slide 3: DFIN at a Glance
DFIN AT A GLANCE What we do Segment overview • DFIN assists private/public companies and investment firms with the • Capital Markets services corporate clients by providing digital creation, submission and distribution of regulatory filings document creation and online content management tools to su
Slide 4: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Growing $270 million of software sales in FY21, expected to grow at a double-digit rate annually Software Sales Expect software sales to exceed $500 million by 2026 Shifting Growth of high-margin software is offsetting declining low-margin print services Revenue Mix Expect
Slide 5: Long-Term Roadmap
LONG-TERM ROADMAP 2026 • aspires to be the market- leading provider of regulatory and compliance solutions, delivering confidence to clients through document management, tagging, Sustained Value and filing Creation • Our strategy centers around 2016 Fundamental accelerating growth in our • Becoming
Slide 6: DFIN's Software Assets Are Well-Positioned for Future Growth
DFIN’S SOFTWARE ASSETS ARE WELL-POSITIONED FOR FUTURE GROWTH Transactional Compliance Software Other Software1 Total Software Software FY 2021 Net Sales $105M $154M $11M $270M 2016 to 2021 Net 14% 18% flat 15% Sales CAGR Long-Term Sales Mid- to high-single-digits High-teens 20%+ Mid-teens Growth Pro
Slide 7: Accelerating the Shift to a More Favorable Sales Mix
ACCELERATING THE SHIFT TO A MORE FAVORABLE SALES MIX 2016 2021 2026E Software Solutions Software Tech- 14% Solutions Enabled Tech- 27% Services Tech- Enabled Software 30% - 35% Enabled Services Solutions Services Print and 47% 55% - 60% Print and 52% Distribution 39% Distribution 21% Print and Distr
Slide 8: Performance Highlights Post-Spin
PERFORMANCE1 HIGHLIGHTS POST-SPIN Revenue and Revenue Mix Profitability 1,004.9 993.3 350 35.0% 983.5 963.0 874.7 894.5 29.7% +1,330 300 30.0% 14% bps 16% 18% 22% 22% 27% 294.8 $ millions $ millions 250 25.0% 19.4% 200 16.4% 17.0% 16.1% 20.0% 47% 47% 15.7% 46% 42% 46% 52% 150 170.8 173.4 15.0% 161.1
Slide 9: Long-Term Financial Targets
LONG-TERM FINANCIAL TARGETS Long-Term Historical1 Commentary Projection2 • Sales mix continues to evolve Total Sales Growth 0.2% CAGR Low-single-digit • Software growth more than offsets decline in transactional and print & distribution sales, driving consolidated sales growth • Software revenue in
Slide 10: DFIN Is Becoming Fundamentally More Profitable
DFIN IS BECOMING FUNDAMENTALLY MORE PROFITABLE $250M 24.2% 25% $230M $221M $211M $200M 20% $132M $88M $124M $150M 15% 13.6% 10.3% 13.… $100M 10% $70M $45M $47M $50M 5% $53M $50M $53M $0M 0% Q1 2019 Q1 2020 Q1 2022 Transactional Revenue Software Revenue Compliance Revenue EBITDA Margin Mix shift and
Slide 11: Strong Track-Record of Shareholder Friendly Activity
STRONG TRACK-RECORD OF SHAREHOLDER FRIENDLY ACTIVITY Reduced leverage • Utilized strong free cash flow and proceeds from assets sales to pay down debt • Reduced non-GAAP net leverage from 3.4x at year-end 2016 to 0.2x as of 12/31/21 Efficient Capital Structure • Redeemed $233 million of outstanding
Slide 12: Appendix
Appendix 12
Slide 13: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Donnelley Financial Solutions, Inc. and Subsidiaries ("DFIN") Reconciliation of GAAP to Non-GAAP Measures For the Three and Twelve Months Ended December 31, 2021 (UNAUDITED) (in millions, except per share data) For the Three Months Ended December 31, 2021 Net Income
Slide 14: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Donnelley Financial Solutions, Inc. and Subsidiaries (“DFIN”) Donnelley Financial Solutions, Inc. and Subsidiaries ("DFIN") Reconciliation of GAAP to Non-GAAP Measures Reconciliation of GAAP to Non-GAAP Measures (UNAUDITED) For the Three and Twelve Months Ended Decem
Slide 15: Reconciliation of GAAP Net Earnings to Adjusted EBITDA
RECONCILIATION OF GAAP NET EARNINGS (LOSS) TO ADJUSTED EBITDA 15
Slide 16: DFINsolutions.com
DFINsolutions.com © 2022 DFIN. All rights reserved. This presentation is the intellectual property of DFIN. The ideas expressed in it may not be adopted or reproduced without prior permission from and compensation to DFIN.
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