Capita Plc · LSE:CPI

Capita — Investor Day (October 2012)

77 slides from Capita's investor day presentation, Oct 8, 2012

1. Slide 1: Investor & analyst presentation

   Investor & analyst presentation Paul Pindar Chief Executive 8 October 2012 1

2. Slide 2: Welcome & agenda

   Welcome & agenda  Purpose of today  Opportunity to meet members of our divisional management team  Provide a deeper insight into a number of our businesses, examining our capabilities, competitive landscape and future developments  Schedule:  2.10pm– 2.55pm: Workplace Services – Dawn Marriott-S

3. Slide 3: Current organisational structure – 2012

   Current organisational structure – 2012 Nigel Wilson Gillian Sheldon Martin Bolland Martina King Paul Bowtell Non-Executive Director Non-Executive Director Non-Executive Chairman Non-Executive Director Non-Executive Director Senior Independent Director Paul Pindar Chief Executive Maggi Bell Gordon H

4. Slide 4: New organisational structure – 2013

   New organisational structure – 2013 Martin Bolland Nigel Wilson Martina King Paul Bowtell Paul Pindar Gillian Sheldon Non-Executive Non-Executive Director Non-Executive Director Non-Executive Director CEO Non-Executive Director Chairman Snr Independent Director Maggi Bell Gordon Hurst Vic Gysin Andy

5. Slide 5: Workplace Services

   Workplace Services Dawn Marriott-Sims “ Executive Director To be widely recognised as the leading provider of corporate travel, recruitment, and HR transformational and delivery services in our chosen markets “ 8 October 2012 5

6. Slide 6: Agenda

   Agenda  Workplace Services – what we do  Operational focus  Market trends & opportunities  Our clients and what we do for them  Business Travel – the journey 6

7. Slide 7: What we do

   What we do Dawn Marriott-Sims Executive Director Travel Specialist Recruitment People Services Veredus Recruitment CBT/BSI/ Education Learning & Process Expotel Resourcing (exec search) Development Outsourcing Evolvi Social Care HR Solutions IT Resourcing Screening Rail Systems Resourcing & Payroll

8. Slide 8: What we do… For a client base of around 6,000 different organisations

   What we do… Travel Specialist Recruitment People Services  At peak we issue 1  3,000 people working  In any one given week we million corporate rail every week have in excess of 5,000 tickets per month  Includes nurses, workers actively out with teachers, doctors, IT, clients via our RPO  We ar

9. Slide 9: Our focus

   Our focus Clients Users Employees Partners A service that is A working culture A culture of A professional and reliable, easy to that enables working with key informative service use, embraces the employees to thrive partners being for stakeholders digital age where and develop clear about our which

10. Slide 10: Market trends & opportunities

    Market trends & opportunities Market Trends Opportunities Specialist • Increased price pressure for • More than 80% of employers Recruitment interims as a result of limited plan to maintain or increase their budgets use of non permanent workers in • Wide scale legislative changes the next year such

11. Slide 11: Department for Education and other clients

    Department for Education }2/ J on Ma Kent eS PRUDENTIAL \& “—™-_ FR: G83 OXFORDSHIRE ee) COUNTY COUNCIL w ov.uk Chevron + ws NetworkRail SO dexo ni meet > Fees OFCom e Staffordshire Trent Water wat ide > AgustaWestland A Finmeccanica Company everything _ 'Z (ROLLS) go 22. E aE | nl ROYCE ac ham City

12. Slide 12: Driving value into the nuclear sector

    Driving value into the nuclear sector  RPO contract to provide all non permanent workers  Provide services to 9 nuclear companies in a collaboration deal across 23 site locations  On-site and off-site delivery teams  Embedded technology – streamlined processes  Successfully transitioned 2,300 a

13. Slide 13: Transforming the way VW provides learning

    Transforming the way VW provides learning  Delivery of VW Group UK’s commercial training since 2008  Management of National Learning Centre in Milton Keynes  Helping VW employees improve performance  Learning programme scheduling, design and delivery  Monitoring the L&D investment against busin

14. Slide 14: Belfast 'near shore' HR delivery centre of excellence

    Belfast ‘near shore’ HR delivery centre of excellence Overview Services provided  Established in 2006  HR case management  Currently over 300 HR, Payroll and  Resourcing Recruitment professionals  HR Administration  Current contracts run as far as 2021  Remuneration administration  Public an

15. Slide 15: Civil Service Learning (CSL) update

    Civil Service Learning (CSL) update  Enhancing talent to support Civil Service reform:  Developing leaders for the future  Building capability  Developing commerciality  YTD – 44% Capita delivery, 56% procured (35% of which are SMEs)  Over 200,000 registered users of the service  Over 600 sup

16. Slide 16: Recruiting Partnering Project (RPP) update

    Recruiting Partnering Project (RPP) update  Implementation under way and all major milestones met  Joint programme governance established and all work-streams progressing for service commencement in H1 2013  Joint operational governance and partnering regime in place for operational transition 

17. Slide 17: Business travel - creating scale in a new market

    Business travel - creating scale in a new market 4th largest corporate travel services supplier in 2012 the UK 2012 ACQUISITION OF A YEAR OF AWARDS EXPOTEL GROUP 2011/12 MAJOR CONTRACT WINS 2010 ACQUISITION OF BSI 2007 ACQUISITION OF HARRY WEEKS TRAVEL (rebranded to Evolvi) 2007 REBRANDED AS CAPITA

18. Slide 18: Workplace Services

    Workplace Services “ “ To be widely recognised as the leading provider of corporate travel, recruitment, and HR transformational and delivery services in our chosen markets 18

19. Slide 19: Health & Wellbeing

    Health & Wellbeing Jason Powell Executive Director 8 October 2012 19

20. Slide 20: Health & Wellbeing Agenda

    Health & Wellbeing Agenda  The Health & Wellbeing story  The Capita ecosystem  Our capability  Diversified revenue base  RPP case study  Personal Independence Payments case study 20

21. Slide 21: The Health & Wellbeing story

    The Health & Wellbeing story “Establishing capability through acquisition to drive organic growth” 21

22. Slide 22: Building capability

    Building capability (Medical Services) (Occupational health business) Pre 2008 2008 2009 2010 2011 2012 Post 2012 22

23. Slide 23: Driving organic growth

    Driving organic growth (Medical Services) (Occupational health business) Clinics Central Govt Frameworks DH Framework DWP PIP RPP RAF / Navy BSA Choices Pre 2008 2008 2009 2010 2011 2012 Post 2012 23

24. Slide 24: Drivers of growth – Capita ecosystem

    Drivers of growth – Capita ecosystem Capita major BPO contracts Capita Health & Divisions Wellbeing HR Mid-ticket L&P acquisitions CID 24

25. Slide 25: Our capability – powering Health & Wellbeing

    Our capability – powering Health & Wellbeing Primary Care Clinics 10 Clinics nationally 7 in London Nurse Full GP/Nurse Health Systems Consultants Services. Pa Clinical Triage c.180k Nurse c.8m Episodes PA c.30k Mobile Nurse Electronic Reporting c.200k Reports/PA Capita BPO DMAS 15 Installations Con

26. Slide 26: Increasingly diversified revenue base

    Increasingly diversified revenue base Medico Legal Reporting 23% Life Screening 7% Organisational Health (Incl. EAP & Physiotherapy) 14% International Medical Services 8% Health Informatics & Decision Support 25% Military & Custodial Services 6% PIP Assessments 9% NHS Business Services Authority 7%

27. Slide 27: RPP case study

    RPP case study Recruitment Partnering Project (RPP) – Ministry of Defence  Capita selected to deliver entire recruitment process for the Army and enabling ICT for Navy and RAF in a contract worth a total of £497m over 10 years  Capita Health & Wellbeing is a key part of overall solution (approx 10

28. Slide 28: Personal Independence Payments case study

    Personal Independence Payments case study Personal Independence Payments (PIP) – Department for Work and Pensions  Selected to provide assessments across central England and Wales, expected to be worth around £140m over 5 years  PIP will replace the existing Disability Living Allowance (DLA) for p

29. Slide 29: Questions?

    CAPITA Ww Questions?

30. Slide 30: Investor & Banking Services

    Investor & Banking Services Anthony O’Keeffe Executive Director 8 October 2012 30

31. Slide 31: Agenda Investor & Banking Services

    Agenda Investor & Banking Services  Who we are  What we do  Multi-jurisdictional services  Some core statistics  A global client base  Organic growth - success stories  Niche acquisitions supporting growth  Lift-outs adding value  Where we are headed  Any questions 31

32. Slide 32: Who we are Investor & Banking Services

    Who we are Investor & Banking Services Divisional Director Anthony O’Keeffe Capita Fiduciary CFG Fund Admin Shareholder Services Asset Services/Sector Group Services Fiduciary Jersey UK UK Fiduciary Netherlands Ireland Ireland Fiduciary Germany Luxembourg Fiduciary London Fiduciary Ireland Fiduciary

33. Slide 33: Who we are Investor & Banking Services

    Who we are Investor & Banking Services  FY 2011 revenue of £213m, average annual compound growth exceeds 40% in a number of business lines; a mixture of organic, acquisition and lift- out  Highly profitable business: margins consistently exceed 25%  c2,400 people across 10 jurisdictions  Clear v

34. Slide 34: Who we are Investor & Banking Services

    Who we are Investor & Banking Services  Building position and scale in new jurisdictions  Strong pipeline of new opportunities  Robust governance and control - regulated and non-regulated businesses  Unique infrastructure and delivery network offering UK/international clients:  A value-add prop

35. Slide 35: What we do Investor & Banking Services

    What we do Investor & Banking Services Capita Fiduciary Group Provides corporate and trust services to a wide range of institutional, & Capita International corporate and private clients worldwide, from locations in Hungary, Ireland, Financial Services Jersey, Luxembourg, The Netherlands, Switzerlan

36. Slide 36: Multi-jurisdictional services - enhanced value proposition

    Multi-jurisdictional services - enhanced value proposition Investor & Banking Services 36

37. Slide 37: Some core statistics Investor & Banking Services

    Some core statistics Investor & Banking Services We have helped more 11 of the last 14 FTSE100 companies float in the UK in the companies who have last five years than any other changed registrar have registrar moved to Capita Assets under Account Corporate Receipts Payments management/ management s

38. Slide 38: A global client base Investor & Banking Services

    A global client base Investor & Banking Services 38

39. Slide 39: John Lewis Partnership Investor & Banking Services

    John Lewis Partnership Investor & Banking Services A new type of bond for retail investors We would like to thank Capita The Partnership’s objectives: for their hard work in ensuring  To develop & diversify the Partnership’s source of funding the project met our objectives, whilst preserving our br

40. Slide 40: Client value & Capita value

    Circle Holdings Investor & Banking Services Building long-term relationships Capita also provides support services to the offshore group of companies Client value & Capita value Capita now also provides technical & specialist company secretarial support to the AIM quoted company working closely with

41. Slide 41: Success stories Investor & Banking Services

    Success stories Investor & Banking Services Standard Life plc (Service quality) NAMA (Capability)  Standard Life – FTSE 100 provider of long term  The NAMA project is designed to remove the main savings and investments systemic risk to the Irish banking system by  Share register and employee shar

42. Slide 42: Niche acquisitions supporting growth

    Niche acquisitions supporting Investor & Banking Services growth  We are an active acquirer of businesses  In 2011 we acquired AIB International Financial Services; Barclays Capital Mortgage Servicing; and AIB (Jersey) Trust  Providing us with additional scale in existing markets; and  Access to

43. Slide 43: Lift-outs adding value

    Lift-outs adding value Investor & Banking Services Capita taking over a non-core operation and delivering value to clients Capita secures new clients, capability, skilled team Capita value: ongoing distribution Disposing party secures managed exit from non-core operation Client channel & £2m revenue

44. Slide 44: Where we are headed Investor & Banking Services

    Where we are headed Investor & Banking Services What we are focused on today  Continuing with our ‘one business’ strategy  Ongoing expansion of our distribution funnel via key intermediary relationships  Further strengthening of our international presence in selective jurisdictions  Targeted pro

45. Slide 45: Where we are headed Investor & Banking Services

    Where we are headed Investor & Banking Services Example current active opportunities  Big 4 partnering: end-to-end debt advisory & workout proposition  Lift-out opportunities: numerous “non-core” operation discussions  Maximising the value of cash & treasury management  Sovereign wealth fund: ex

46. Slide 46: Justice and Secure Services

    Justice and Secure Services Andy Parker Joint COO 8 October 2012 46

47. Slide 47: Justice and Secure Services – building capability

    Justice and Secure Services – building capability Aug 12 May 12 Dec 11 £20m* / +2,000 people Sep 11 Jul 11 £7.5m* £3.5m* / +65 £15m* / +45 people Forensic medical Dec 10 people services, custody £8m* / +30 people translation and support and secure interpreting Command, control £86m* / +950 people tr

48. Slide 48: What do we do?

    What do we do? • The leading supplier of technology-enabled business change for the UK emergency and non-blue light services • Integrated command, control and communications systems for public safety agencies • Capita’s nationwide network of field service engineers delivers full radio managed servic

49. Slide 49: Police

    Police w 1991 | We supply 100% of UK The UK market leader in its field, Police Forces with critical the Capita DSX range of solutions technology solutions has a pedigree stretching back more than 20 years NOTTINGHAMSHIRE POLICE DEORE Policing for you Human Resources was at the CONSTABULART heart of

50. Slide 50: Fire

    Fire Full technology upgrade for London Fire and Emergency Planning Authority, August 2012 50

51. Slide 51: Ambulance

    Ambulance 24 hour technical support services for London Ambulance Service – Sept 2012 51

52. Slide 52: Critical non-emergency services

    Critical non-emergency services Highways Agency – full national control room and radio managed service  9 networked Regional Controls with full services from Capita including ICCS, CAD and  Vehicle and Radio support  Mobile Data Maritime and Coastguard Agency  Managed network of 7 control rooms

53. Slide 53: Care, custody and justice services

    Care, custody and justice services Capita’s care, custody and justice services has been strengthened by the addition of Reliance Secure Task Management and Reliance Medical Services. Delivering safe and professional solutions which help reduce costs while improving efficiency and performance • Custo

54. Slide 54: Justice and Secure Services – credentials

    Justice and Secure Services – credentials • Supplying products and services to 100% of UK police forces • Managing more than 40% of the radio terminals used by the police including the radio services to support them through the Olympics • Manage a total of 150,000+ radios across the UK emergency ser

55. Slide 55: Future opportunities

    Future opportunities Continue to expand our solutions and capability portfolio in Emergency Services, Critical Services, Criminal Justice and Care based solutions  Police  Courts  Prison  Probation  UK Borders Agency  Coastguard, British Transport Police, MoD Respond to the needs of the Police

56. Slide 56: Questions?

    CAPITA Questions?

57. Slide 57: Customer Management & International

    Customer Management & International Mike Barnard Executive Director 8 October 2012 57

58. Slide 58: Customer Management is the combination of Vertex, Ventura and Capita's BPO expertise

    Customer Management is the combination of Vertex (Private Sector), Ventura and Capita’s BPO expertise (Private Sector) Acquired October 2011 £220m Acquired July 2011 Delivering voice & 39 customers Delivering outsourced web-based solutions 9,857 employees customer service, for customer retention, sa

59. Slide 59: Our core proposition: the 'Customer Lifecycle'

    Our core proposition is enabling clients to grow the value of their end-customers across the ‘Customer Lifecycle’ Acquire Service Fulfil Grow Collect  Lead-  In-bound  Case mgmt  Customer  Early-stage Running our generation support  Indexing retention  Late-stage  Order-taking  Web content

60. Slide 60: The business is differentiated versus the competition

    The business is differentiated versus the competition… Capita’s credentials Contact Management UK coverage Outsourcers  Process and sector breadth  Property footprint Risk-transfer Business Process  Guaranteed outcomes Outsourcers Service continuity  Large-scale transition / integration expertis

61. Slide 61: Reflected in the 2012 wins to date

    ….reflected in the 2012 wins to date: 4 examples  5 year deal  3 year deal  Multi-channel Service and  Servicing consumers & dealers Analytics across multiple brands  New logo, won on guaranteed  Re-sign facilitated through Capita outcomes & trust in Capita L&D relationship Leading retailer 

62. Slide 62: Customer Management positioned for organic growth in 2013-14

    Customer Management is well positioned for organic growth across existing and new customers in 2013-14 Client dynamics Our opportunity Economic uncertainty demands Grow existing client relationships cost reduction and revenue  Grow share of ‘seat’ estate protection  Cross-sell end-customer  More

63. Slide 63: Capability enhancement to underpin growth: debt management

    Capability enhancement to underpin growth: an example – debt management A significant market opportunity… …for an end-to-end BPO solution Private sector companies see debt Credit Risk management challenge increasing Segmentation  74% agree that their processes Debt Purchase Billing are not optimise

64. Slide 64: Our International business supports our Customer Management proposition

    Our International business supports our Customer Management proposition UK ‘hub’ Near-shore, multilingual  14 sites  1 site  9,500 FTEs  150 FTEs  Full customer management  Proximity and flexibility capability across broad UK means client ‘control’ footprint UK  Low-cost (20-40% arbitrage), P

65. Slide 65: International also supports Capita's core back-office processing

    But International also supports Capita’s core back-office processing capability  F&A transactional processing Finance & 350 FTE  Client and policy accounting Accounting  High-end financial accounting & NAV pricing  Specialist policy valuation Specialist  High-end assessment e.g. vets for pet in

66. Slide 66: Going forward: key focus areas for Customer Management & International

    Going forward: 4 key focus areas for Customer Management & International 1 Cross-sell the end-customer lifecycle 3 Increase scale in growth sectors  Secure new clients across Telecoms &  More clients taking >3 service lines and Media, Retail, Utilities, Travel & Leisure transformational propositio

67. Slide 67: Acquisitions

    Acquisitions Ian West Acquisitions Director 8 October 2012 67

68. Slide 68: Agenda

    Agenda  Why Capita makes acquisitions  What we are looking for in an ideal acquisition  Key value drivers: price and integration  ‘Shining a light’ on Capita’s acquisition process  Summary 68

69. Slide 69: Why Capita makes acquisitions

    Why Capita makes acquisitions  We continue to acquire small to medium sized companies that: Build Strengthen Generate economies of existing market sustainable, scale positions quality revenues Create new Add Access a new market complementary customer base opportunities capabilities 69

70. Slide 70: Creating value – diversifying through acquisition

    Creating value – diversifying through acquisition Market Market entry via acquisition Year % revenue by market H1 2012 Central government - - 11 Local government Original management buy-out and formation of Capita 1987 18 Education SIMS 1994 8 Insurance Eastgate 2000 5 Other private IRG plc 2000 25

71. Slide 71: What we are looking for in an ideal acquisition

    What we are looking for in an ideal acquisition  Highly resilient revenues  Adds capabilities to a Capita business’s proposition  Adds capabilities to Capita’s BPO proposition  Good competitive positioning  Significant growth potential  Can be integrated; not stand alone  Good synergy opportu

72. Slide 72: Key value drivers: pricing and integration

    Key value drivers: pricing and integration  Average post tax return Acquisitions Acquisitions Acquisition on acquisition completed completed s completed consideration, by 2008-2010 2011 2008 – 2011 vintage: 13.2% 17.4% 14.7%  Average post tax return Acquisitions Number of Average on acquisition £m

73. Slide 73: 'Shining a light' on Capita's acquisition process

    ‘Shining a light’ on Capita’s acquisition process  Organising for acquisitions External  Central M&A team intermediaries  ‘Virtual’ DD teams Direct  Panels of external providers Divisions approach (Financial DD, Legal)  Sourcing deals Central  Capita businesses Acquisition Team  Buy-side inte

74. Slide 74: 'Shining a light' on Capita's acquisition process

    ‘Shining a light’ on Capita’s acquisition process  Process and disciplines  Making offers Completion  Avoiding auctions  Project managing deals Group Board sign off  Integration (core Capita capabilities) Detailed due diligence - rationale, pricing, integration/synergies  Relationships with in

75. Slide 75: Summary

    Summary  Acquisitions strengthen our BPO offering and underpin organic growth  We are looking for small to medium sized businesses that have sustainable, quality revenue streams and good competitive positioning in enduring, growing markets  Relentless focus on generating value by applying pricing

76. Slide 76: Questions?

    CAPITA Wp Questions?

77. Slide 77: Paul Pindar - Summary

    Paul Pindar - Summary  High level of market activity  Continue to lead the UK BPO market by building capability and scale  Committed to financial discipline and delivering solid results  Next trading update: Interim Management Statement on 13 November 2012 Thanks from the Capita team 77

Capita — Investor Day (October 2012) on 6ix