Factset Research Systems Inc. · NYSE:FDS

Factset Research Systems — Investor Day (April 2022)

70 slides from Factset Research Systems's investor day presentation, Apr 5, 2022

Slide 2: Welcome + Opening Remarks
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. 2 Welcome + Opening Remarks Kendra Brown, Global Head of Investor Relations Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Business Use Only
Slide 3: Forward-Looking Statements and Non-GAAP Measures
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Forward-Looking Statements and Non-GAAP Measures 3 This presentation, and other statements that FactSet may make at Investor Day 2022, contains forward-looking statements based on management's current e
Slide 4: Agenda
8:30 a.m. Introduction + Agenda 8:35 a.m. Business + Strategic Overview 8:45 a.m. The Digital Platform 9:15 a.m. Q + A 9:25 a.m. Break + Product Demonstrations 9:40 a.m. Research + Advisory Solutions 10:00 a.m. Analytics + Trading Solutions 10:20 a.m. Content + Technology Solutions 10:40 a.m. Q + A
Slide 5: Today's Presenters
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Today’s Presenters 5 Phil Snow Chief Executive Officer John Costigan Chief Content Officer Gene Fernandez Chief Technology & Content Officer Linda Huber Chief Financial Officer Kristina Karnovsky Chief
Slide 7: Our purpose and key strengths
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 8: We're a growth company with a history of market outperformance
We’re a growth company with a history of significant market outperformance 8Copyright © 2022 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Stock performance vs. S&P 500 (last five years) 1 1 Market prices as of April 1, 2022 2 FactSet began trading on the New York Stoc
Slide 9: Our strategy: Build the leading open content and analytics platform
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Client Obsession: Deliver open, flexible, adaptive, solutions as part of our open ecosystem with hyper-personalized digital products to provide the “next best action” across the investment lifecycle Con
Slide 10: Five key trends inform our strategic investments
Efficiency of Operations Technology Disruption, Generational Shift Alpha Driven by Depth of Data Value Investing and Regulation Multi-Asset Class Content and Analytics Five key trends inform our strategic investments to drive growth 10Copyright © 2022 FactSet Research Systems Inc. All rights reserve
Slide 11: Significant opportunity to capture more of the addressable market
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. We see significant opportunity to capture more of the addressable market A S V CAGR Buy Side Banking Wealth PE/VC Corporates FactSet ASV and Opportunity Size (ASV vs. CAGR) Total Addressable Market (TAM
Slide 12: ASV growth rates by geography have largely doubled since FY19
ASV growth rates1 by geography have largely doubled since 2019 12 • Deep sector and private market investments drive banking growth • Large wealth deals contributing • Significantly higher retention due to product investments • Higher demand for feeds and APIs • Buy-side and analytics growth acceler
Slide 13: Results of accelerated investment in content, technology, and people
We are seeing the results of accelerated investment in content, technology, and people 13 Organic ASV Growth 1 Adjusted Operating Margin High Single Digit 33%+ 10%+ Adjusted Diluted EPS Growth 8% - 9% 33% - 34% 14% - 17% Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Business Us
Slide 14: Medium-term outlook
Medium-term outlook: 8-9% top line growth, 50-75 basis points of adjusted operating margin expansion per year, and 11-13% EPS growth Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Business Use Only 8-9% ASV Growth Goal 1, 2 35-36% Adjusted Operating Margin Goal 3 11-13% Adjus
Slide 15: The Digital Platform
The Digital Platform02 Gene Fernandez, Chief Technology and Content Officer Kristina Karnovsky, Chief Product Officer John Costigan, Chief Content Officer 15Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Business Use Only
Slide 19: Research + Advisory Solutions
03 Goran Skoko, Head of Research + Advisory Solutions Research + Advisory Solutions 19Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Business Use Only
Slide 20: Research + Advisory Highlights
Research + Advisory Highlights Focused on large ASV growth opportunities in corporates, fueled by our investment in Deep Sector. Also focused on private equity and venture capital ("PE/VC") supported by our recent acquisition of Cobalt, a provider of private capital data Expected accelerated growth
Slide 21: Research & Advisory Solutions: Opportunities for Growth
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward.*FY22 Q2 Ending ASV 21 Research & Advisory Solutions: Opportunities for Growth Research & Advisory is expected to continue high-single-digit ASV growth, driven by continued growth in our largest firm typ
Slide 22: Research & Advisory Solutions: Deep Sector
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Research & Advisory Solutions: Deep Sector Sector-specific content and workflow tools power engagement across firm types and open sizeable new markets Connected Product Suite: Workstation, Feeds, APIs R
Slide 23: Research & Advisory Solutions: Private Markets
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Research & Advisory Solutions: Private Markets Collecting, acquiring and partnering to build private market content to power workflows across the Private Equity lifecycle Fundraising Deal Sourcing Due D
Slide 24: Research & Advisory Solutions: Advisor Dashboard
Research & Advisory Solutions: Advisor Dashboard Wealth managers get better results with Advisor Dashboard, a tool designed for efficient management of large-scale portfolios and complex client relationships 24Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Business Use Only INFO
Slide 25: Research & Advisory Solutions: Takeaways
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Research & Advisory Solutions: Takeaways Focused on large ASV growth opportunities in corporates, fueled by our investment in Deep Sector. Also focused on private equity and venture capital supported by
Slide 26: Analytics + Trading Solutions
04 Rob Robie, Head of Analytics + Trading Solutions Analytics + Trading Solutions 26Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Business Use Only
Slide 27: Analytics + Trading Solutions Highlights
27 Analytics + Trading Solutions Highlights Market-leading open portfolio lifecycle solutions spanning the front and middle office, capitalizing on market consolidation Hyper-personalized applications that enable the front office to grow assets and to outperform Driving efficiency in the middle offi
Slide 28: Analytics & Trading: Opportunities for Growth
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Analytics & Trading: Opportunities for Growth Portfolio lifecycle solutions drive cross-selling and capture new business BUY-SIDE • Growing Front Office market share among institutional asset managers b
Slide 29: Front Office Portfolio Management and Trading Solutions
29 Front Office Portfolio Management and Trading Solutions Empowers traders and portfolio managers to increase efficiency, outperform and grow assets with hyper-personalized, cognitive-driven solutions OPPORTUNITIES Enable portfolio managers to make faster and better-informed decisions to generate a
Slide 30: Middle Office Performance Solutions
Middle Office Performance Solutions Provides a complete solution for middle office operations, including performance measurement, attribution, Global Investment Performance Standards (“GIPS”), and reporting on cloud and API-based platforms OPPORTUNITIES Provide investment teams with a single solutio
Slide 31: Open Ecosystem
Open Ecosystem Open platform with flexible access to our applications and engines, providing an opportunity for partnerships OPPORTUNITIES Enhance our platform for users to systematically work within our environments Promote seamless connectivity for client and third-party systems with our Portfolio
Slide 32: Analytics & Trading: Takeaways
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Analytics & Trading: Takeaways Hyper-personalized applications that enable the front office to grow assets and to outperform Driving efficiency in the middle office through updated performance, risk and
Slide 33: Content + Technology Solutions
05 Jonathan Reeve, Head of Content + Technology Solutions Content + Technology Solutions 33Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Business Use Only
Slide 34: Content + Technology Solutions Highlights
34 Content + Technology Solutions Highlights Organized and "concorded" proprietary and third-party content delivered seamlessly to clients First to integrate content with cloud providers such as Snowflake, Amazon Web Services (“AWS”) and Google, providing clients with access to both FactSet and othe
Slide 35: Content + Technology Solutions: Opportunities for Growth
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Content + Technology Solutions: Opportunities for Growth Our breadth of content, open technology, and platform-agnostic solutions provide significant growth opportunities Technology Build modern applica
Slide 36: The Flexible & Open Data Ecosystem
36 FACTSET DATA BENCHMARK DATA THIRD-PARTY DATA REAL-TIME DATA Application Development Enterprise Data Management Platforms Partnerships API’s Cloud ANALYTICS Concordance Services Widgets Named Entity Recognition Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Business Use Only T
Slide 37: Differentiated ESG Content Strategy
Supply Chain Differentiated ESG Content Strategy Differentiated ESG Insights FactSet’s Truvalue Labs applies artificial intelligence to quantify corporate ESG behavior from external stakeholders Comprehensive ESG Ecosystem Combines FactSet’s differentiated ESG data with 40+ industry-leading third-pa
Slide 38: Real-time solutions spanning Enterprise Data Feeds and Digital APIs
Real-time solutions spanning Enterprise Data Feeds and Digital APIs 38 WORKSTATION APIs Access the same real-time and historical prices in FactSet Workstation, from any desktop or web application Zero footprint, scalable, FactSet managed entitlements ENTERPRISE FEEDS Ingest consolidated feeds for re
Slide 39: CGS will continue to provide global leadership and innovation
CGS will continue to provide global leadership and innovation • CGS is a central part of the global securities marketplace and is the foundation for security master files relied on by critical front, middle and back-office functions around the world • CGS databases contain up to 60 different data el
Slide 40: Content + Technology Solutions: Takeaways
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Content + Technology Solutions: Takeaways Organized and "concorded" proprietary and third-party content and deliver it seamlessly to client workflow solutions First to integrate content with cloud provi
Slide 43: FactSet Culture + Growth Mindset
06 Vinay Kapoor, Chief Diversity, Equity & Inclusion Officer FactSet Culture + Growth Mindset 43Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Business Use Only Dan Viens, Chief Human Resources Officer
Slide 46: Sales Strategy
Sales Strategy Live our Mission Know our Clients Execute with Excellence Win with Quality Grow with Confidence 01 02 03 04 05 9.4%* LTM Growth $1,750M* ASV *FY22 Q2 Ending ASV and ASV LTM Growth 46Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Business Use Only
Slide 47: Our Purpose
47 Drive the Investment Community to See More, Think Bigger, and Do Its Best Work O U R P U R P O S E Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Business Use Only
Slide 48: Live Our Mission
Live Our Mission Deliver value to clients, tailored by market and firm type 48 Research + Advisory Solutions Content + Technology Solutions Analytics + Trading Solutions S A L E S C L I E N T S FY21 ASV APAC EMEA Americas by Market by Firm Type Buy Side Sell Side Wealth Copyright © 2022 FactSet Rese
Slide 49: Know Our Clients
49 E s ta b lis h e d G ro w th Know Our Clients % ASV by Solution Client Need FactSet Value Insights, ESG, Consolidation Performance, Risk, Truvalue Alternative Investments, ESG Cabot, Signals, Private Market Banker Efficiency, Deal Velocity Productivity Tools, Signals/APIs Connectivity, Speed, Fle
Slide 50: Execute with Excellence
50 • Tailor solutions to client workflow • Engage clients with teams specialized by firm type • Prioritize resources based on client potential and needs • Ensure discipline through value-based pricing • Delight clients through dedicated support and workflow knowledge Client Segmentation High-potenti
Slide 51: Win with Quality
Win with Quality 51 Existing Clients1 ASV Retention 95%+ Client Retention 92% Growth 3-year CAGR 10% Contribution to Growth Rate 30% 60%+ 13 years New Clients ASV Growth Rate3 ASV from Clients with all 3 solutions2 Client tenure based on ASV2 1 As of 2/28/22 2 Based on a weighted average as of 2/28/
Slide 52: Grow with Conviction
Grow with Conviction 52 8-9% ASV Growth Goal 1,2 • Differentiated Content • Workflow Solutions • Firm Types • Packages • Client Segmentation • Pricing • Retention • Customer Success • New Logos Know our Clients | Execute with Excellence | Win with Quality Copyright © 2022 FactSet Research Sys
Slide 54: Key Highlights
54 Key Highlights Robust financial model with 95% 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 Dis
Slide 55: Attractive financial model with strong free cash flow conversion
Attractive financial model with demonstrated strong free cash flow conversion Revenues Adjusted EBITDA and EBITDA Margin1 Capital Expenditures as % of Revenues Free Cash Flow2 Note: Figures as of FactSet fiscal year end August 31; YTD 6-month figure as of February 28 1 See appendix for a reconciliat
Slide 56: Strategic investments have accelerated top-line growth
Strategic investments have accelerated top-line growth FY19 FY20 FY21 FY22 Guidance Base growth Acceleration from Investments 1 Cumulative three-year investments (FY20 - FY22) based internal attribution estimates 2 Organic LTM growth reported for respective FY quarter ends 3 FactSet’s expectations a
Slide 57: Returning capital to shareholders
31% 34% 28% 30% 30% FY17 FY18 FY19 FY20 FY21 81 89 100 110 118 FY17 FY18 FY19 FY20 FY21 $261 $304 $220 $200 $265 FY17 FY18 FY19 FY20 FY21 Returning capital to shareholders $0.5B over the last five years $1.25B over the last five years $M $M 284 352 368 428 494 FY17 FY18 FY19 FY20 FY21 Avg 30.6% $M +
Slide 58: Disciplined capital allocation framework drives value creation
58 Disciplined capital allocation framework drives value creation Last 5 Years (FY17 - FY21) 50% Return Reinvest Dividend Share Repurchase M&A CapEx R&D 1 FactSet’s expectations as of April 5, 2022. Actual results may differ materially from expectations above Investments (R&D / CapEx) Share Repurcha
Slide 59: Optimizing capital structure to ensure flexibility
Optimizing capital structure to ensure flexibility 1.0x 3.9x 2.0x - 2.5x Feb 28, 2022 Mar 1, 2022 Target Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Business Use Only • Investment grade ratings from Moody’s (Baa3) and Fitch (BBB) • New credit agreement with $500 million revol
Slide 60: We reaffirm fiscal 2022 guidance
We reaffirm fiscal 2022 guidance of 8% - 9% ASV1 growth and expanded margin 60 The Fiscal 2022 Outlook shown here is a forward-looking statement. Given the risks, uncertainties and assumptions related to FactSet's business and operations, including the ongoing uncertainty surrounding the duration, m
Slide 61: CUSIP Global Services
CUSIP Global Services Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Business Use Only CY 2021 FY 2022 FY 2025 Pre-Acquisition Annual Subscription Value (ASV) ~ $157M As of Dec 31, 2021 ~ $165M As of Aug 31, 2022 Mid-to-High Single Digit Growth Annual Revenues ~ $180M Calendar Y
Slide 62: Margin expansion plan
Margin expansion plan • Actively manage key expense drivers: people, real estate, technology and third-party data • Reduce real estate footprint to reduce costs • Focus on sustainable margin expansion to fund investment, coupled with careful expense management and productivity goals People 7% - 8% g
Slide 63: 8-9% ASV growth and 50-75 bps of margin expansion per year
We expect 8-9% ASV growth and 50-75 basis points of margin expansion per year to deliver 35-36% adjusted operating margin by year-end 2025 Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Business Use Only 63 FactSet Organic ASV Growth 2, 3 FactSet Adjusted Operating Margin 4, 5 F
Slide 64: Financial Update: Takeaways
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Financial Update: Takeaways Robust financial model with more than 95% subscription-based revenues supported by pricing discipline, demonstrated EBITDA flow-through and strong free cash flow conversion S
Slide 66: Closing Remarks
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Closing Remarks Phil Snow, Chief Executive Officer09 66Copyrigh © 2022 FactSet Research Systems Inc. All rights reserved. Business Use Only
Slide 67: EBITDA and Adjusted EBITDA reconciliation
FactSet EBITDA and Adjusted EBITDA reconciliation FY2017 1 FY2018 1 FY2019 1 FY2020 1 FY2021 1 LTM Q2FY2022 2 YTD Q2 FY2022 3 Net Income $258.3 $267.1 $352.8 $372.9 $399.6 $419.3 $217.6 Interest Expense, Net 6.6 14.4 16.6 9.8 6.4 6.7 3.2 Income Taxes 86.1 84.8 69.2 54.2 68.0 55.3 24.3 Depreciation a
Slide 68: Free cash flow reconciliation
($ in thousands) 68 Note: Columns may not foot due to rounding 1 Fiscal year ending August 31 2 Six months ending February 28 3 Includes property, equipment, leasehold improvements and capitalized internal-use software ($ millions) FY2017 1 FY2018 1 FY2019 1 FY2020 1 FY2021 1 YTD Q2 FY20222 Net cash
Slide 69: Adjusted operating margin reconciliation
($ in thousands) 69 1 Costs primarily related to professional fees associated with the ongoing multi-year investment plan. ($ millions) Low end of range High end of range Revenues $1,800 $1,830 Operating income $459 $485 Operating margin 25.5% 26.5% Intangible asset amortization 26 26 Real estate ch
Slide 70: Adjusted diluted EPS reconciliation
($ in thousands) 70 Note: Columns may not foot due to rounding 1 Fiscal year ending August 31 2 Six months ending February 28 3 Includes property, equipment, leasehold improvements and capitalized internal-use software ($ millions) Low end of range High end of range Diluted earnings per common share

Factset Research Systems — Investor Day (April 2022) on 6ix

Factset Research Systems — Investor Day (April 2022)

Slide 1: Investor Day 2022

Slide 2: Welcome + Opening Remarks

Slide 3: Forward-Looking Statements and Non-GAAP Measures

Slide 4: Agenda

Slide 5: Today's Presenters

Slide 6: Business + Strategic Overview

Slide 7: Our purpose and key strengths

Slide 8: We're a growth company with a history of market outperformance

Slide 9: Our strategy: Build the leading open content and analytics platform

Slide 10: Five key trends inform our strategic investments

Slide 11: Significant opportunity to capture more of the addressable market

Slide 12: ASV growth rates by geography have largely doubled since FY19

Slide 13: Results of accelerated investment in content, technology, and people

Slide 14: Medium-term outlook

Slide 15: The Digital Platform

Slide 16: 16Copyright © 2022 FactSet Research

Slide 17: Q+A

Slide 18: Break

Slide 19: Research + Advisory Solutions

Slide 20: Research + Advisory Highlights

Slide 21: Research & Advisory Solutions: Opportunities for Growth

Slide 22: Research & Advisory Solutions: Deep Sector

Slide 23: Research & Advisory Solutions: Private Markets

Slide 24: Research & Advisory Solutions: Advisor Dashboard

Slide 25: Research & Advisory Solutions: Takeaways

Slide 26: Analytics + Trading Solutions

Slide 27: Analytics + Trading Solutions Highlights

Slide 28: Analytics & Trading: Opportunities for Growth

Slide 29: Front Office Portfolio Management and Trading Solutions

Slide 30: Middle Office Performance Solutions

Slide 31: Open Ecosystem

Slide 32: Analytics & Trading: Takeaways

Slide 33: Content + Technology Solutions

Slide 34: Content + Technology Solutions Highlights

Slide 35: Content + Technology Solutions: Opportunities for Growth

Slide 36: The Flexible & Open Data Ecosystem

Slide 37: Differentiated ESG Content Strategy

Slide 38: Real-time solutions spanning Enterprise Data Feeds and Digital APIs

Slide 39: CGS will continue to provide global leadership and innovation

Slide 40: Content + Technology Solutions: Takeaways

Slide 41: Q+A

Slide 42: Break

Slide 43: FactSet Culture + Growth Mindset

Slide 44: 44Copyright © 2022 FactSet Research

Slide 45: Sales Strategy

Slide 46: Sales Strategy

Slide 47: Our Purpose

Slide 48: Live Our Mission

Slide 49: Know Our Clients

Slide 50: Execute with Excellence

Slide 51: Win with Quality

Slide 52: Grow with Conviction

Slide 53: Financial Update

Slide 54: Key Highlights

Slide 55: Attractive financial model with strong free cash flow conversion

Slide 56: Strategic investments have accelerated top-line growth

Slide 57: Returning capital to shareholders

Slide 58: Disciplined capital allocation framework drives value creation

Slide 59: Optimizing capital structure to ensure flexibility

Slide 60: We reaffirm fiscal 2022 guidance

Slide 61: CUSIP Global Services

Slide 62: Margin expansion plan

Slide 63: 8-9% ASV growth and 50-75 bps of margin expansion per year

Slide 64: Financial Update: Takeaways

Slide 65: Q+A

Slide 66: Closing Remarks

Slide 67: EBITDA and Adjusted EBITDA reconciliation

Slide 68: Free cash flow reconciliation

Slide 69: Adjusted operating margin reconciliation

Slide 70: Adjusted diluted EPS reconciliation