Factset Research Systems Inc. · NYSE:FDS

Factset Research Systems — Investor Presentation (October 2024)

31 slides from Factset Research Systems's investor presentation, Oct 16, 2024

  1. Slide 1: FactSet Overview

    FactSet Overview October 16, 2024 Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only

  2. 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

  3. Slide 3: Overview

    Overview01

  4. Slide 4: FactSet at a Glance

    FactSet at a Glance1 20G L O B A L F O O T P R I N T ( C O U N T R I E S ) 37O F F I C E S I N C L U D I N G T W O U S D A T A C E N T E R S 12K+E M P L O Y E E S 216K+U S E R S C L I E N T S 8K+ $2.3B2 A S V 37.8%3 44 $16.453 4.8%3 F Y 2 4 A S V O R G A N I C G R O W T H R A T E F Y 2 4 A D J U S T

  5. Slide 5: Consistent Revenue Growth, Resilient Through All Market Cycles

    $14 $36 $134 $313 $641 $1,007 $1,494 $2,203 1990 1995 2000 2005 2010 2015 2020 2024 $104 $134 $177 1999 2000 2001 Dot-Com Burst +29% +32% $476 $576 $622 2007 2008 2009 Global Financial Crisis +21% +8% $920 $1,007 $1,127 2014 2015 2016 Oil Crash, Greek Default, Brexit +9% +12% $1,435 $1,494 $1,591 20

  6. Slide 6: As we grow, our ASV remains sticky and strong

    1 Please see Appendix for a reconciliation of these non-GAAP metrics to GAAP metrics. 2 Includes CUSIP Global Services (CGS), 3 Incremental ASV Growth, 4 FY18-FY23 actual, 5 Total Organic ASV Growth ASV Retention >95% Client Retention 90% As we grow, our ASV remains sticky and strong NOTE: Figures a

  7. Slide 7: Historical LTM Organic ASV Growth

    Average 6.5% Note: Chart above includes CGS starting FY23 Q3 $60 $71 $71 $79 $88 $82 $77 $72 $58 $62 $72 $78 $74 $83 $89 $112 $142 $150 $163 $157 $150 $159 $157 $145 $145 $114 $106 $104 5.1% 5.9% 5.5% 5.9% 6.6% 6.0% 5.6% 5.1% 4.1% 4.3% 5.0% 5.3% 5.0% 5.5% 5.8% 7.2% 8.9% 9.4% 10.1% 9.3% 8.8% 9.1% 8.0

  8. Slide 8: FactSet Today

    FactSet Today02

  9. Slide 9: A global company with a diversified ASV footprint

    Americas Europe, Middle East & Africa Asia Pacific 65% 25% 10% 9 We are a global company with a diversified ASV footprint NOTE: Percentages represent ASV from each region as of August 31, 2024. Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 9

  10. Slide 10: Our clients are at the center of what we do

    Our clients are at the center of what we do INSTITUTIONAL BUY SIDE: Institutional Asset Management Asset Owners Hedge Funds 50% DEALMAKERS: Banking Corporates PE/VC 19% WEALTH 14% PARTNERS & CGS 16% NOTE: Percentages represent ASV from each firm type as of August 31, 2024. Copyright © 2024 FactSet R

  11. Slide 11: Our Seamlessly Integrated Suite of Best-in-Class Applications

    Our Seamlessly Integrated Suite of Best-in-Class Applications Our flexible technology architecture and unique, high-quality data, coupled with professional services and a consultative approach provides solutions across core workflows 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

  12. Slide 12: Comprehensive and connected inventory of client, proprietary and third-party data

    Core Proprietary Data Sets 35 Third Party Data Vendors 1,000+ Client Portfolios (Institutional + Wealth) 15M+ Comprehensive and connected inventory of client, proprietary and third-party data CORE • Fundamentals • Estimates • Equity/Debt Capital Structure • Terms & Conditions • People • Global Excha

  13. Slide 13: Build/partner/buy strategy to capture more of the addressable market

    Note: Total addressable market (TAM) is the total market demand for a product or service. Serviceable addressable market (SAM) is the segment of the TAM targeted by FactSet’s products and services within our geographic segments. Serviceable Addressable Market Total Addressable Market We employ a bui

  14. Slide 14: Recent deals complement our strategy

    New York, NYNew York, NYBoston, MALakewood, COBoston, MAHeadquarters 20141968201120142004Founded DealmakersPartnerships & CGSDealmakersDealmakersInstitutional Buy- Side Sponsoring Workflow Data Management Solutions Data Management SolutionsPrivate MarketsDeep SectorPortfolio LifecycleStrategic Align

  15. Slide 15: The Future

    The Future03

  16. Slide 16: We are investing in the future

    DATA EXCELLENCE Open, flexible, modular End-to-end enterprise solutions and services provider Leader in artificial intelligence We are investing in the future. Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 16

  17. Slide 17: Elevating our AI capabilities to power clients' key workflows

    We are elevating our AI capabilities to power our clients’ key workflows and deliver unparalleled levels of personalization, discoverability, and productivity. Mile-Wide Discoverability Mile-High Innovation Enablement Mile-Deep Workflow Automation Copyright © 2024 FactSet Research Systems Inc. All r

  18. Slide 18: With FactSet...

    With FactSet… …an Investment Banker can update a pitchbook with the click of a button. …a Portfolio Manager can query their portfolio’s performance in natural language. …a Wealth Advisor can automatically create an investment proposal for a prospect. Copyright © 2024 FactSet Research Systems Inc. Al

  19. Slide 19: Financials | Fiscal 2024

    Financials | Fiscal 202404

  20. Slide 20: Long-term strategy drives growth through changing market cycles

    Our long-term strategy to build the leading open content and analytics platform drives growth through changing market cycles Americas $1,457M 1,2,3 EMEA $569M 1,2,3 AsiaPac $229M 1,2,3 • We saw gains from growth in wealth and banking. • These gains were further enhanced by lower erosion and greater

  21. Slide 21: Attractive financial model with strong free cash flow conversion

    368 428 494 487 585 73.7% 83.8% 91.7% 77.5% 75.2% 72.5% 40.0% 60.0% 80.0% 100.0% - 100 200 300 400 500 600 FY19 FY20 FY21 FY22 FY23 FY24 Free Cash Flow % FCF Conversion 503 514 540 628 778 848 35.0% 34.4% 33.9% 34.1% 37.3% 38.5% 28.0% 30.0% 32.0% 34.0% 36.0% 38.0% 40.0% FY19 FY20 FY21 FY22 FY23 FY24

  22. Slide 22: Returning capital to shareholders

    28% 30% 30% 32% 30% 28% FY19 FY20 FY21 FY22 FY23 FY24 100 110 118 126 139 151 FY19 FY20 FY21 FY22 FY23 FY24 $220 $201 $265 $19 $177 $235 FY19 FY20 FY21 FY22 FY23 FY24 Returning capital to shareholders $0.7B over the last six years $1.1B over the last six years $M $M 368 428 494 487 585 615 FY19 FY20

  23. Slide 23: Executing our strategy through workflow solutions

    23Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Executing our strategy through workflow solutions that leverage our content refinery 82% 65% 50% 18% 25% 19% 10% 14% 16% APAC EMEA Americas Sell-Side Buy-Side ASV Split by Client, Geography, and Firm Type

  24. Slide 24: Sustain value creation through disciplined capital allocation

    Sustain value creation through disciplined capital allocation Current focus on cash-flow- neutral tuck-in acquisitions and partnerships Normalized share repurchase program with expanded share repurchase authorization amount Target quarterly dividend ~25%- 30% of net income Target annual organic inve

  25. Slide 25: Optimizing capital structure to ensure flexibility

    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 previous revolver 1 Based on $575M of drawn revolver as of February 28, 2022, and $561M of FY22 Q

  26. Slide 26: FY2024 Guidance vs Performance

    $72 $78 $112 $157 $145 $104 FY19 FY20 FY21 FY22 FY23 FY24 $1.4 $1.5 $1.6 $1.8 $2.1 $2.2 FY19 FY20 FY21 FY22 FY23 FY24 $10.00 $10.87 $11.20 $13.43 $14.55 $16.45 FY19 FY20 FY21 FY22 FY23 FY24 FY2024 Guidance vs Performance …building on momentum of the last several years $2,180 - 2,190M* Revenue2,4 Adj

  27. Slide 27: Committed to margin management while investing in innovation

    Committed to margin management while investing in innovation to drive top-line growth People ~7% cost reduction YoY Q4 Variance1 Real Estate ~9% cost reductions YoY Q4 Variance1 Technology ~20% expense increase YoY Q4 Variance1 Third-Party Data Costs ~15% expense increase YoY Q4 Variance1 • Reductio

  28. Slide 28: Fiscal 2025 Outlook

    28Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only FISCAL 2025 OUTLOOK As of September 19, 2024 $90 - $140 million (~4% to ~6%)Organic ASV Growth1 $2,285 - $2,305 millionRevenues 32.5% - 33.5%GAAP Operating Margin 36.0% - 37.0%Adjusted Operating Margin 17

  29. Slide 29: EBITDA and Adjusted EBITDA reconciliation

    FactSet EBITDA and Adjusted EBITDA reconciliation FY2024 1FY2023 1FY2022 1FY2021 1FY2020 1FY2019 1 $537.1$468.1$396.9$399.6$372.9$352.8Net Income 65.866.335.78.213.120.1Interest Expense 2 114.4116.846.768.054.269.2Income Taxes 125.2105.486.764.557.660.5Depreciation and Amortization Expense $842.5$75

  30. Slide 30: 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 FY20241FY20231FY20221FY20211FY20201FY20191($ millions) $700.3$645.6$538.3$555.2$505.8$427.1Net cash provided by oper

  31. Slide 31: Business Outlook Non-GAAP Reconciliations

    31Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Business Outlook Operating Margin, Net Income and Diluted EPS (in millions, except per share data) High End of RangeLow End of RangeFiscal 2025 (Forward Looking) $2,305$2,285Revenues $749$ 765Operating In

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