Fidelity National Financial, Inc. · NYSE:FNF
Fidelity National Financial — Barclays Americas Select Franchise Conference 2014
29 slides from Fidelity National Financial's conference presentation, May 13, 2014
Slide 1: Fidelity National Financial Barclays Americas Select Franchise Conference
Filed by Fidelity National Financial, Inc. Pursuant to Rule 425 of the Securities Act of 1933, as amended, and deemed filed pursuant to Rule 14a-6(b) of the Securities Exchange Act of 1934, as amended Subject Company: Fidelity National Financial, Inc. Commission File No.: 001-32630 Commission File N
Slide 2: Legal Disclosures
Legal Disclosures This presentation may contain forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements.
Slide 3: Fidelity National Financial Overview
Fidelity National Financial Overview - Fidelity National Financial (“FNF”) Fidelity National Financial FNF Core Ventures (“FNFV”) ($1.35 billion in aggregate book value) (2) Fidelity National Black Knight Holdings, (1) Inc Title Group (1) FNF has a 65% ownership in Black Knight Financial Services, L
Slide 4: Organization Structure
Organization Structure Chairman Bill Foley CEO Randy Quirk Fidelity National Black Knight President Shared Services Title Group Holdings Brent Bickett Roger Jewkes Tom Sanzone Tony Park Mergers & Erika Meinhardt Chris Azur Peter Sadowski Acquisitions Portfolio Company • Core Operations Mike Nolan Mi
Slide 5: Black Knight Financial Services
Black Knight Financial Services • FNF closed the acquisition and reorganization of Lender Processing Services, Inc. (“LPS”) into Black Knight Holdings in January 2014 – Total considerationof approximately$3.4 billion, consistingof 25.9 million sharesof FNF common stock and $2.5 billion in cash – Ori
Slide 6: FNF Investment Highlights
FNF Investment Highlights • Nation’s leading provider of title insurance, technology and transaction services to the real estate and mortgage industries – Nation’s largest title insurance company with industry-leading margins – Leading provider of mortgage loan origination and servicing technology s
Slide 7: Leading Provider of Transaction Services and Technology Solutions to the Real Estate and Mortgage Industries
Leading Provider of Transaction Services and Technology Solutions to the Real Estate and Mortgage Industries • Fidelity National Title Group • Black Knight Holdings • Fidelity National Title Group is the nation’s • #1 U.S. provider of mortgage servicing systems largest title insurance and escrow ser
Slide 8: FNF Core Product Offerings
FNF Core Product Offerings FNF CoreLogic Fiserv First American Title Insurance • Underwriting • Escrow • Other real estate settlement services Loan Origination Technology • Customer relationship management /lead management • Loan quality gateway • Enterprise loan origination system (LOS) • Small and
Slide 9: FNF Core Operating Strategy
FNF Core Operating Strategy • Extend and leverage our technology-enabled solutions in the real estate industry – Real Estate Transaction Services – Loan Origination Technology Solutions – Mortgage Servicing Solutions – Default Management – Data & Analytics • Pursue growth initiatives in high recurri
Slide 10: Title Insurance Market Share Overview
Title Insurance Market Share Overview Fidelity National Financial is the nation’s largest title company and escrow services group First American First American 25% 28% FNF FNF 28% 45% Stewart Stewart 12% 12% Others 14% Old Republic Others Old Republic 6% 9% 21% Direct Agency First American 26% FNF 3
Slide 11: FNF Title Insurance Market Share by State
FNF Title Insurance Market Share by State 11 Source: ALTA
Slide 12: Title Operating Strategy
Title Operating Strategy • Continuously monitor operating metrics – Open and closed order counts, headcount, efficiency metrics • React quickly, utilize the “order lag” to our advantage • Slow to add headcount when volumes improve; aggressively reduce headcount as order volumes decline • Management
Slide 13: Title Operating Performance
Title Operating Performance Mortgage Originations Title Revenue | Pre-tax Margin % $ trillions $ billions Improving Performance Despite Sluggish Market Source: Mortgage Bankers Association 13
Slide 14: Proven History of Managing Costs through Origination Cycles
Proven History of Managing Costs through Origination Cycles Orders Opened vs Head count Orders opened by direct title operations (thousands) Avg. Full-time employees (Direct title operations) Total Originations $3.0 $2.7 $2.3 $1.5 $2.0 $1.7 $1.3 $1.8 $1.8 ($ billions) Open Orders per 17.2 16.4 16.2
Slide 15: Industry Leading Margins
Industry Leading Margins FNF Outperforms Peers in All Types of Markets *Other competitors average includes First American, LandAmerica (through 2007), Stewart, and Old Republic; 2007 and 2008 include reserve strengthening charges for most companies 15
Slide 16: Black Knight and ServiceLink
Black Knight and ServiceLink • FNF owns 65% of Black Knight Financial Services LLC and ServiceLink Holdings LLC, respectively, the former LPS and ServiceLink businesses – Technology solutions, data and analytics products • $187 million in first quarter 2014 revenue • More than 50% of all mortgage lo
Slide 17: Black Knight Operating Strategy
Black Knight Operating Strategy • Technology Solutions that Deliver Value – Provide solutions that automate the client’s entire business process by delivering business process automation throughout loan lifecycle • Reduce cost; reduce risk; increase operational efficiency; improve quality – Deliver
Slide 18: ServiceLink Operating Strategy
ServiceLink Operating Strategy • Committed to providing mortgage services that reduce risk, enhance quality and offer unmatched service • Lead with our Serve-first culture in all of the businesses – Leverage operating efficiencies and our interactive, detail-oriented management approach • Focused bu
Slide 19: Real Estate Market Overview
Real Estate Market Overview ExistingHomeSales2000– 2013 Housing Inventory in millions Mix shift towards a resale driven market will increase fee per file Source: National Association of Realtors 19
Slide 20: FNFV - Overview
FNFV -Overview • In January 2014, FNF announced that it was creating a tracking stock called Fidelity National Financial Ventures (“FNFV”) that will be distributed to FNF shareholders once all required regulatory and shareholder approvals are obtained, which are expected to be completed by June 30,
Slide 21: FNFV - Strategy
FNFV -Strategy – Ownership:Take meaningful minority or control positions in quality companies that are well-positioned in their respective industries, run by best in class management teams and that compete in industries that have attractive organic and add-on M&A growth opportunities – Operations:Ab
Slide 22: FNFV Portfolio Company Investments – $1.35 Billion Book Value
FNFV Portfolio Company Investments – $1.35 Billion Book Value Other (2) 32% owned $259 mm $68 mm 19% 5% $332 mm 32% owned $128 mm 25%(1) 10% $148 mm 11% $313 mm $99 mm 23% 7% Excludes other comprehensive income of ($76.8) million; Ceridian and Comdata are owned through a common holding company (1) 5
Slide 23: Significant Portfolio Company Investments
Significant Portfolio Company Investments A leading worldwide Premier food service Premier food service Nation’s leading employee manufacturer, company, operating company, operating 43 benefits platform specializing remanufacturer and approximately 640 company upscale dining restaurants in health in
Slide 24: Significant Portfolio Company Investments
Significant Portfolio Company Investments A leading provider of global A leading provider of human capital management innovative payment solutions and payment solutions, including solutions electronic payments and fleet solutions Business Description 32% equity ownership 32% equity ownership positio
Slide 25: Consolidated Selected Financial Highlights
Consolidated Selected Financial Highlights 2011 2012 2013 Q1 2013 Q1 2014 Revenue Title Revenue $4,650 $5,509 $5,889 $1,385 $1,403 Other Revenue $150 $1,656 $2,676 $656 $686 FNF Consolidated Revenue $4,800 $7,165 $8,565 $2,041 $2,089 (1) Adjusted EBITDA $528 $852 $1,004 $220 $206 Pre-Tax Earnings $4
Slide 26: FNF Core Selected Financial Highlights
FNF CoreSelected - Financial Highlights 2011 2012 2013 Q1 2013 Q1 2014 Revenue Title Revenue $4,631 $5,494 $5,813 $1,353 $1,373 Investment Income & $151 $137 $156 $32 $30 Realized Gain/Loss Total Revenue $4,782 $5,631 $5,969 $1,385 $1,403 (1) Adjusted EBITDA $527 $803 $822 $179 $148 Pre-Tax Earnings
Slide 27: FNFV - Selected Financial Highlights
FNFV -Selected Financial Highlights 2011 2012 2013 Q1 2013 Q1 2014 Total Revenue $18 $1,535 $2,609 $656 $686 (1) Adjusted EBITDA $1 $50 $177 $41 $58 Pre-Tax Earnings ($1) $166 ($25) ($9) $21 (1) Adjusted Net Earnings $86 $39 $30 $4 $10 (1) Adjusted Diluted EPS $0.39 $0.17 $0.13 $0.02 $0.04 (2) Free
Slide 28: Balance Sheet March 31, 2014
Balance SheetMarch – 31, 2014 Inter- FNF Core FNFV Company Total Cash and Investments $4,297 $ 480 $ (33) $4,744 Goodwill and Other Intangible Assets 5,390 982 - 4,657 Other Assets 2,409 1,168 - 2,206 Total Assets $12,096 $2,630 (33) $14,693 Notes Payable $ 3,001 $376 (33) $ 3,344 Reserve for title
Slide 29: FNF Investment Highlights
FNF Investment Highlights • Nation’s leading provider of title insurance, technology and transaction services to the real estate and mortgage industries – Nation’s largest title insurance company with industry-leading margins – Leading provider of mortgage loan origination and servicing technology s
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