Slide 1: FactSet Overview
FactSet Overview September 21, 2023 Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures This presentation, and other statements that FactSet may make in connection with this presentation, contains forward-looking statements based on management's current expectations, assumptions, estimates, forecasts and projections as of the date such s
Slide 3: Our purpose is to drive the investment community to see more, think bigger
Our purpose is to drive the investment community to see more, think bigger, and do its best work We are transforming the way our users discover, decide, and act on opportunities We are a growth company We drive sustainable growth through continued investment and executional excellence. Our subscript
Slide 4: FactSet at a glance
FactSet at a glance1 19G L O B A L F O O T P R I N T ( C O U N T R I E S ) 31O F F I C E S 12K+E M P L O Y E E S 189K+U S E R S C L I E N T S ~8K 1 Figures as of FactSet end of fiscal year, August 31, 2023 2 LTM Organic ASV + Professional Services based on last twelve months as of August 31, 2023 3
Slide 5: The market continues to respond favorably to our performance and digital strategy
The market continues to respond favorably to our performance and digital strategy Notes: Market prices for the past 5 years through September 15, 2023 FDS (+82%) S&P 500 (+55%) Market Cap: $16B$8B $12B $12B $12B $13B 5Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Busine
Slide 6: Build the leading Innovation Platform powering financial information
6Copyright © 2023 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Build the leading Innovation Platform powering financial information that delivers differentiated advantage for our clients’ success C L I E N T O B S E S S I O N Drive next-gen workflow solutions with
Slide 7: Our digital platform is critical to the success of the investment community
Centralize Content Expanded content access | Data decision support | Enabling data science Our digital platform is critical to the success of the investment community Digital Platform Operational Efficiencies Cohesive investment process | Frictionless user experience Cost Rationalization Simplificat
Slide 8: Data connectivity and FactSet Marketplace
20% • Listings • Securities • Entities • People • Transactions • Relationships – Associations (e.g., Revenue, Frequency, History) Data Connectivity Expansive coverage, depth, and speed of FactSet’s core proprietary data portfolio • Core Data: Speed • Core Data: Depth • Unique Data: Broad coverage Fa
Slide 9: Portfolio lifecycle workflow solutions
S Y M B O L O G Y C O N C O R D A N C E B E S T I N C L A S S T E C H N O L O G Y B E S T I N B R E E D D A T A R E S E A R C H P O R T F O L I O C O N S T R U C T I O N T R A D I N G P E R F O R M A N C E + A T T R I B U T I O N R E P O R T I N G • Generate ideas and discover opportunities with uni
Slide 10: Transforming the way our users discover, decide, and act on opportunities
Transforming the way our users discover, decide, and act on opportunities using our digital platform Hyper-Personalized Products Open Ecosystem & Self-ServiceTrusted Partner ❖ Remove friction from the client experience with solutions that are open, flexible, and easy to use ❖ Advance the Digital Tra
Slide 11: Historical LTM Organic ASV Growth
Historical LTM Organic ASV Growth Strong execution drives higher retention in the Americas and strategic wins within Premier accounts Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only $60 $71 $71 $79 $88 $82 $77 $72 $58 $62 $72 $78 $74 $83 $89 $112 $142 $1
Slide 12: ASV retention remains strong
$79 $72 $78 $112 $157 FY18 FY19 FY20 FY21 FY22 FY23 $145 189K+ G L O B A L U S E R S 6% change since Q4/2022 7.9K+ G L O B A L C L I E N T S 5% change since Q4/2022 1 LTM Organic ASV + Professional Services Growth Rate is based on the last twelve months as of August 31, 2023 2 CGS now included $M 98
Slide 13: ASV Split by Client, Geography, Firm Type, and Business
82% 64% 51% 42% 18% 26% 20% 33% 10% 16% 25% 13%APAC EMEA Americas Content & Technology Solutions Analytics & Trading Research & Advisory Sell-Side Buy-Side ASV Split by Client, Geography, Firm Type, and Business 1 Percentage of Organic ASV + Professional Services as of August 31, 2023 2 Professional
Slide 14: Our strategy has driven growth across regions
Our strategy building the leading open content and analytics platform has driven growth Americas $1,377M 1,2 EMEA $559M 1,2 AsiaPac $217M 1,2 • Deep sector and private market investments drive banking growth • Asset Managers growing due to our Portfolio Lifecycle strategy • Large Wealth deals contri
Slide 15: Recent deals completed
Headquarters Boston, MA Lakewood, CO Boston, MA New York, NY New York, NY Founded 2004 2014 2011 1968 2014 Sponsoring SBU Analytics & Trading Research & Advisory Research & Advisory CTS CTS Strategic Alignment Portfolio Lifecycle Deep Sector Private Markets Data Management Solutions Data Management
Slide 16: Our people and culture power our growth agenda
Our people and culture power our growth agenda • Our client focus drives the creation of industry-leading products and services • Our culture of innovation and collaboration makes FactSet an attractive firm for top talent, including technologists • Our focused investment in learning and development
Slide 17: 2022 Sustainability Report – Key Highlights
2022 Sustainability Report – Key Highlights Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only. Scan QR code to read FactSet’s 2022 Sustainability Report
Slide 18: Our Awards
Our Awards B E S T D A T A A N A L Y T I C S P R O V I D E R Inside Market Data & Inside Reference Data Award Buy-Side Technology Award Fund Technology & WSL Awards B E S T R E P O R T I N G S Y S T E M P R O V I D E R Waters Ranking Awards Wealth Briefing European Award B E S T O V E R A L L T E C
Slide 19: Financial Review | Fiscal 2023
Financial Review | Fiscal 2023
Slide 20: Key Highlights
Key Highlights Robust financial model with 98.9% subscription-based revenues supported by pricing discipline, demonstrated EBITDA flow-through and strong free cash flow conversion Strategic investments drive best-in-class solutions and scale up the content refinery, accelerating top-line growth Disc
Slide 21: Attractive financial model with strong free cash flow conversion
352 368 428 494 487 585 83.1% 73.7% 83.8% 91.7% 77.5% 75.2% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 110.0% - 100 200 300 400 500 600 FY18 FY19 FY20 FY21 FY22 FY23 Free Cash Flow % FCF Conversion 426 503 514 540 628 778 31.5% 35.0% 34.4% 33.9% 34.1% 37.3% 28.0% 30.0% 32.0% 34.0% 36.0% 38.0% 40.0%
Slide 22: Returning capital to shareholders
33% 28% 30% 30% 32% 30% FY18 FY19 FY20 FY21 FY22 FY23 89 100 110 118 126 139 FY18 FY19 FY20 FY21 FY22 FY23 $304 $220 $201 $265 $19 $177 FY18 FY19 FY20 FY21 FY22 FY23 Returning capital to shareholders $0.6B over the last six years $1.1B over the last six years $M $M 352 368 428 494 487 585 FY18 FY19
Slide 23: Capital Allocation Framework
Digital Platform Private Markets Other Deep Sector 24Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Investments (R&D / CapEx) Share Repurchas Dividends Acquisitions Capital Allocation Framework Medium Term Goals Target annual organic investment net ~100
Slide 24: Optimizing capital structure to ensure flexibility
25Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Optimizing capital structure to ensure flexibility Debt incurred for CGS on March 1, 2022, included $1.0B of new senior notes, $1.0B of new term loan, $250M drawn new revolver, net of repayment of $575M p
Slide 25: In fiscal year 2023 we delivered on ASV Growth, Revenue & Adjusted Operating Margin
$79 $72 $78 $112 $157 FY18 FY19 FY20 FY21 FY22 FY23 $145 $1.4 $1.4 $1.5 $1.6 $1.8 $2.1 FY18 FY19 FY20 FY21 FY22 FY23 $8.53 $10.00 $10.87 $11.20 $13.43 $14.55 FY18 FY19 FY20 FY21 FY22 FY23 In fiscal year 2023 we delivered on ASV Growth, Revenue & Adjusted Operating Margin …building on momentum of the
Slide 26: Balancing sustainable margin expansion with investing in innovation
Committed to balancing sustainable margin expansion with investing in innovation to drive top-line growth. • Actively managed key expense drivers: people, real estate, technology, and third-party data in FY23 • Real estate rightsizing was completed in FY23, resulting in a 7% decrease in facility exp
Slide 27: Appendix
APPENDIX
Slide 28: Fiscal 2024 Outlook
At the midpoint, guidance for fiscal 2024 reflects ASV growth of 7% and adjusted operating margin of 36.5%, an expansion of 30bps over fiscal 2023 1 Organic ASV + Professional Services growth as compared to fiscal 2023 The Fiscal 2024 Outlook shown here is a forward-looking statement. Given the risk
Slide 29: FactSet EBITDA and Adjusted EBITDA reconciliation
FactSet EBITDA and Adjusted EBITDA reconciliation FY2018 1 FY2019 1 FY2020 1 FY2021 1 FY2022 1 FY2023 1 Net Income $267.1 $352.8 $372.9 $399.6 $396.9 $468.1 Interest Expense 2 16.3 20.1 13.1 8.2 35.7 66.3 Income Taxes 84.8 69.2 54.2 68.0 46.7 116.8 Depreciation and Amortization Expense 57.3 60.5 57.
Slide 30: FactSet free cash flow reconciliation
($ in thousands) Note: Columns may not foot due to rounding 1 Fiscal year ending August 31 2 Includes property, equipment, leasehold improvements and capitalized internal-use software ($ millions) FY2018 1 FY2019 1 FY2020 1 FY2021 1 FY20221 FY20231 Net cash provided by operating activities $385.7 $4
Slide 31: Non-GAAP Reconciliations Business Outlook: Operating Margin, Net Income
Non-GAAP Reconciliations Business Outlook Operating Margin, Net Income Fiscal 2024 (Forward Looking) Low End of Range High End of Range Revenues $2,210 $2,230 Operating Income $732 $747 Operating Margin 33.1% 33.5% Intangible Asset Amortization 70 71 Adjusted Operating Income $ 802 $ 818 Adjusted Op
Slide 32: Non-GAAP Reconciliations Business Outlook: Adjusted Diluted EPS
($ in thousands) (In Millions Except Per Share Data) Low-end of range High-end of range Diluted earnings per common share $14.20 $14.70 Intangible asset amortization 1.54 1.53 Discrete tax items (0.09) (0.08) Adjusted diluted earnings per common share $15.65 $16.15 The Fiscal 2024 Outlook shown here