Slide 1: Linedata Services: Investors Presentation
DATE: March 2014 LINEDATA SERVICES : INVESTORS PRESENTATION DENIS BLEY GROUP CFO
Slide 2: About Linedata
01 About Linedata
Slide 3: Our Mission
OUR MISSION — Linedata is a global solutions provider committed to the investment management and credit communities. — Linedata apply its market and client insight to provide innovative and tailored mission-critical software and services that help its clients grow. COPYRIGHT AND SOLE PROPERTY OF LIN
Slide 4: More Than Just Software
MORE THAN JUST SOFTWARE Sustainable and Uncompromising client focus long-term client Customer service and long-term satisfaction relationships 80% of clients work with Linedata for more than 10 years Understand clients' markets and turning insights into value-added innovation Market driven
Slide 5: A Global Solutions Provider for Investment Management and Credit
A GLOBAL SOLUTIONS PROVIDER dedicated to the Investment Management and the Credit community 2013 Around Revenue 50% 1000 €160m of revenue employees outside France 4 regions dedicated to 600 clients Presence in 50 countries 16 locations around the globe AN INTERNATIONAL COMPANY COPYRIGHT AND SOLE PRO
Slide 6: An International Player: New Locations in 2013
AN INTERNATIONL PLAYER 3 NEW LOCATIONS IN 2013 Riga Edimbourg Dublin Luxembourg Toronto Londres Paris Seattle Pékin New York Boston Madrid Tunis Irvine Hong Kong Chennai COPYRIGHT AND SOLE PROPERTY OF LINEDATA 6
Slide 7: Key 2013 numbers
wn 1S ® 2 £ S < a ci =) N oy = 02
Slide 8: Key Numbers
KEY NUMBERS REVENUE EBITDA + 11,3% + 21,6 % 144,0 M€ 160,3 M€ 41,3 M€ 33,9 M€ 23,6 % 25,8 % 2012 2013 2012 2013 EBIT NET RESULT + 17,0 % + 16,4 % 30,3 M€ 25,9 M€ 15,2 M€ 17,7 M€ 18,0 % 18,9 % 10,6 % 11,0 % 2012 2013 2012 2013 COPYRIGHT AND SOLE PROPERTY OF LINEDATA 8
Slide 9: Rates of Exchange
RATES OF EXCHANGE 2012 / 2013 (£ / $) 2012 2013 Variation $ Average (P&L) 1,286 1,328 -3,3% Closing (BS) 1,319 1,379 -4,5% £ Average (P&L) 0,811 0,849 -4,7% Closing (Bilan) 0,816 0,834 -2,2% COPYRIGHT AND SOLE PROPERTY OF LINEDATA 9
Slide 10: Revenue by Region
REVENUE BY REGION % at constant exchange rates and on a like-for- (€ millions – IFRS) 2011 2012 % change like basis Southern Europe 71,4 69,8 -2,1% -2,1% Northern Europe 28,9 27,6 -4,4% -0,8% North America 40,5 59,7 +47,5% +2,2% Asia 3,3 3,2 -3,1% +0,1% Total 144,0 160,3 +11,3% -0,6% Rounded, audite
Slide 11: Strong Recurring Model
STRONG RECURRING MODEL €160,3 M* * Including €4,7 M of exceptional revenue in Enterprise savings €144,0 M 41,1 (26%) Implementation, +32% Consulting & Services 31,1 (22%) 6,7 (5%) +49% 10,0 (6%) Perpetual licences ASP/ Facilities 33,7 (23%) +5% 35,4 (22%) Management 109,1M€ 106,2 M€ Maintenance & (7
Slide 12: Revenue by Business Segment
REVENUE BY BUSINESS SEGMENT 2012 2013 Insurance & Hedge Funds Insurance & Hedge Funds Savings Savings 7% Lending & 9% 12 % Leasing 14 % Lending & Leasing 25 % 35 % 52 % 48 % Traditional Funds Traditional Funds COPYRIGHT AND SOLE PROPERTY OF LINEDATA 12
Slide 13: EBITDA
EBITDA €M IFRS 2012 2013 Change Revenue 144,0 160,3 +11,3% Purchases and external charges (32,8) (36,0) +9,7% Taxes (2,8) (3,3) +15,5% Staff expenses (72,9) (79,2) +8,6% Other expenses (1,6) (0,5) -68,8% EBITDA 33,9 41,3 +21,6% EBITDA % 23,6% 25,8% - COPYRIGHT AND SOLE PROPERTY OF LINEDATA 13
Slide 14: EBITDA Margin by Region
EBITDA MARGIN BY REGION % of revenue 2012 2013 Southern Europe 23,3% 27,8% Northern Europe 25,5% 26,3% North America 23,7% 23,8% Asia 10,2% 13,1% Total 23,6% 25,8% COPYRIGHT AND SOLE PROPERTY OF LINEDATA 14
Slide 15: Income Statement
INCOME STATEMENT % at constant exchange rates and on €M IFRS 2011 2012 Variation a like-for-like basis * Revenue 144,0 160,3 +11,3% - 0,6% EBITDA 33,9 41,3 +21,6% +13,7% EBITDA % 23,6% 25,8% EBIT 25,9 30,3 +17,0% +12,2% EBIT % 18,0% 18,9% Net Financial result (1,9) (3,8) Income tax (8,8) (8,8) +0,6%
Slide 16: Cash Flow Statement
CASH FLOW STATEMENT Var. €M IFRS 2012 2013 2012 2013 EBITDA 33,9 41,3 +21,6% Income tax (10,7) (3,9) Net financial result (1,9) (3,5) Other non cash 0,3 (0,2) Operating CF 21,6 33,7 +56,1% CAPEX (6,4) (36,9)* Working Capital change (0,6) (0,1) Operating FCF 14,6 (3,3) -123,1% Net debt change 26,4 18
Slide 17: Cash Analysis
CASH ANALYSIS FCF OP. INVEST. & EFF. DIVIDENDE CAPITAL & EXCHANGE STREAM BANK + €27,8 M ADD. - €30,5 M DEBT SHARES CHANGE - €4,1 M & OTHERS +€18,4 M DIVIDEND AND OTHERS CASH OPERATING ON HAND CASH FLOWS 2012 CASH ACQUISITION +€17,7 M NET DEBT ON HAND CHANGE 2013 +€29,3 M FREE CASH FLOW NETS 2013 = +
Slide 18: Balance Sheet
BALANCE SHEET ASSETS (€M) 2012 2013 LIABILITIES & EQUITY(€M) 2012 2013 Goodwill 104,5 119,7 Net Equity 84,9 93,3 Other fixed assets 26,8 37,7 Accrued tax 8,7 12,3 Prepaid tax 5,6 6,1 LT Liabilites 6,3 6,4 Current Assets 36,4 38,2 ST liabilities 41,6 48,8 Cash on hand 17,9 29,3 Bank debt 49,7 70,2 TO
Slide 19: Key Financial Indicators
KEY FINANCIAL INDICATORS EBIT per share Dividend Net profit per +18% + 39% share + 38% 2012 : €0,55 2012 : €2,90 Payout : 28% 2012 : €1,70 2013 : €4,02 2013 : €0,65 * 2013 : €2,35 Payout : 29% * Dividend of €0,65 to be proposed to GM on 12/05/2014 COPYRIGHT AND SOLE PROPERTY OF LINEDATA 19
Slide 20: Stock Exchange
STOCK EXCHANGE Stock Price over 12 months Shareholders % TREASURY SHARES 7 LINEDATA MANAGEMENT 43 SBF 120 50 PUBLIC 51 #s of shares : 7 830 025 Market price 26€ +60% over 1 year Market Cap : circa €200 m COPYRIGHT AND SOLE PROPERTY OF LINEDATA 20
Slide 21: Strategy & perspectives
03 Strategy & perspectives
Slide 22: Linedata LT Strategy: RISE
LINEDATA LT STRATEGY : RISE High Profitability Revenue growth Client satisfaction Grow on international markets COPYRIGHT AND SOLE PROPERTY OF LINEDATA 22
Slide 23: 2014 Outlook
2014 OUTLOOK Accelerate and deploy strategic Develop cross-selling within initiatives regions • Institutional funds : reinvigorate R&D • Linedata Ekip : penetrate NA markets spendings for FO & BO for capital lease and car finance • Hedge fungs: deploy the new Sigma • Linedata CapitalStream : develop
Slide 24: Mise en application du programme RISE
MISE EN APPLICATION DU PROGRAMME RISE Sales Client satisfaction Enterprise culture development Anticipate needs Advisory board Reinforce link between associates Understand issues Strenghten efforts to win Internal blog, newsletter User group new names and new deals Développement Launch of an Enterpr
Slide 25: Mid-Term Strategy
MID-TERM STRATEGY 2013 2014 Objective 2015 & + A first successfull phase A second step to accelerate in Lending & Leasing Investment Management New offering with EKIP 360 More money for Product investment Acquisition of CapitalStream Additional staffing in Sales & MArketing 2014 : an interim year to
Slide 26: Thank you for your attention
Thank you for your attention. Questions / Answers...