Slide 1: FactSet Overview
FactSet Overview MARCH 23, 2023 Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only
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
Slide 3: Our purpose is to drive the investment community to see more, think bigger
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 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 ) 38O F F I C E S 11K+E M P L O Y E E S 186K+U S E R S C L I E N T S 7K+ 1 Figures as of FactSet Q2 FY2023, February 28, 2023 2 LTM Organic ASV + Professional Services based on last twelve months as of February 28, 2023 3 Q2 FY
Slide 5: The market continues to respond favorably to our performance and digital strategy
The market continues to respond favorably to our performance and digital strategy Notes: Market prices for the past 5 years through to March 20, 2023 FactSet began trading on the New York Stock Exchange on June 28, 1996 FDS (+91%) S&P 500 (+45%) Market Cap: $16B$8B $9B $8B $12B $17B 5Copyright © 202
Slide 6: Five key trends inform our strategic investments to drive growth
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 6Copyright © 2023 FactSet Research Systems Inc. All rights reserved
Slide 7: We continued to deliver on our strategy
We continued to deliver on our strategy: to build the leading open content and analytics platform that delivers differentiated advantage for our clients’ success S c a l e U p O u r C o n t e n t R e f i n e r y N e x t G e n e r a t i o n W o r k f l o w S o l u t i o n s C l i e n t O b s e s s i
Slide 8: Our digital platform is critical to the success of the investment community
Centralize Content Expanded content access | Data decision support | Enabling data science Our digital platform is critical to the success of the investment community Digital Platform Operational Efficiencies Cohesive investment process | Frictionless user experience Cost Rationalization Simplificat
Slide 9: Content refinery: connected proprietary and third-party content
20% • Listings • Securities • Entities • People • Transactions • Relationships – Associations (e.g., Revenue, Frequency, History) Data Connectivity Expansive coverage, depth, and speed of FactSet’s core proprietary content portfolio • Core Content: Speed • Core Content: Depth • Unique Data: Broad co
Slide 10: Portfolio lifecycle workflow solutions
S Y M B O L O G Y C O N C O R D A N C E B E S T I N C L A S S T E C H N O L O G Y B E S T I N B R E E D D A T A 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 I N G P E R F O R M A N C E + A T T R I B U T I O N R E P O R T I N G • Generate ideas and discover opportunities with uni
Slide 11: Transforming the way our users discover, decide, and act on opportunities
Transforming the way our users discover, decide, and act on opportunities using our digital platform Hyper-Personalized Products Open Ecosystem & Self-ServiceTrusted Partner ❖ Remove friction from the client experience with solutions that are open, flexible, and easy to use ❖ Advance the Digital Tra
Slide 12: We see significant opportunity to capture more of the addressable market
We see significant opportunity to capture more of the addressable market Total Addressable Market Opportunity A S V CAGR Buy Side Banking Wealth PE/VC Corporates FactSet ASV and Opportunity Size (ASV vs. CAGR) Total Addressable Market (TAM) Serviceable Addressable Market (SAM) $32B Total Addressable
Slide 13: Historical LTM Organic ASV Growth
Historical LTM Organic ASV Growth Strong execution drives higher retention in the Americas and strategic wins within Premier accounts Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only $60 $71 $71 $79 $88 $82 $77 $72 $58 $62 $72 $78 $74 $83 $89 $112 $142 $1
Slide 14: We have accelerated top-line growth and maintained high retention
186K+ G L O B A L U S E R S 9% change since Q2/2022 7.7K+ G L O B A L C L I E N T S 8% change since Q2/2022 1 LTM Organic ASV + Professional Services Growth Rate is based on the last twelve months as of February 28, 2023 2 Includes CUSIP Global Services (CGS) * FY23 Outlook as of March 23, 2023 $M 9
Slide 15: ASV Split by Client, Geography and Business
83% 63% 48% 17% 26% 36% 10% 17%APAC EMEA Americas Content Technology Solutions Analytics & Trading Research & Advisory Sell-Side Buy-Side ASV Split by Client, Geography and Business 1 Percentage of Organic ASV + Professional Services as of February 28, 2023 2 Professional Services of $23M not alloca
Slide 16: Our strategy has driven growth by region
Our strategy building the leading open content and analytics platform has driven growth Americas $1,189M 1 EMEA $494M 1 AsiaPac $196M 1 • Deep sector and private market investments drive banking growth • Asset Managers growing due to our Portfolio Lifecycle strategy • Large Wealth deals contributing
Slide 17: Our client-centric solutions drive value in established and growing markets
E s ta b lis h e d G ro w th Our client-centric solutions drive value in established and growing markets % ASV by Solution Client Need FactSet Value Insights, ESG, Consolidation Performance, Risk, Truvalue Alternative Investments, ESG Cabot, Signals, Private Market Banker Efficiency, Deal Velocity P
Slide 18: Recent acquisitions
Headquarters San Francisco, CA Boston, MA Lakewood, CO Boston, MA New York, NY Founded 2013 2004 2014 2011 1968 Sponsoring SBU CTS Analytics & Trading Research & Advisory Research & Advisory CTS Strategic Alignment ESG Portfolio Lifecycle Deep Sector Private Markets Data Management Solutions Deal Ra
Slide 19: CUSIP Global Services first year of ownership
Maintaining CGS’s positive trajectory while minimizing business disruption during migration off TSA Annual Subscription Value (ASV) Annual Revenues % Operating Margin Mid-to-High Single Digit Growth Mid-to-High Single Digit Growth > Mid-50% ✓ Prior Guidance Achievement of Goal ✓ ✓ % Subscription > 8
Slide 20: Our people and culture power our growth agenda
Our people and culture power our growth agenda • Our client focus drives the creation of industry-leading products and services • Our culture of innovation and collaboration makes FactSet an attractive firm for top talent, including technologists • Our focused investment in learning and development
Slide 21: 2022 Sustainability Report – Key Highlights
2022 Sustainability Report – Key Highlights Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only. Scan QR code to read FactSet’s 2022 Sustainability Report
Slide 22: Our Awards
Our Awards B E S T D A T A A N A L Y T I C S P R O V I D E R Inside Market Data & Inside Reference Data Award Buy-Side Technology Award Fund Technology & WSL Awards B E S T R E P O R T I N G S Y S T E M P R O V I D E R Waters Ranking Awards Wealth Briefing European Award B E S T O V E R A L L T E C
Slide 23: Financial Review | Q2 Fiscal 2023
Financial Review | Q2 Fiscal 2023
Slide 24: Key Highlights
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 Discip
Slide 25: Attractive financial model with strong free cash flow conversion
352 368 428 494 487 23683.1% 73.7% 83.8% 91.7% 77.5% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 110.0% - 100 200 300 400 500 600 FY18 FY19 FY20 FY21 FY22 FY23 YTD Free Cash Flow % FCF Conversion Attractive financial model with demonstrated strong free cash flow conversion Revenues Adjusted EBITDA an
Slide 26: Returning capital to shareholders
31% 33% 28% 30% 30% 32% FY17 FY18 FY19 FY20 FY21 FY22 81 89 100 110 118 126 FY17 FY18 FY19 FY20 FY21 FY22 $261 $304 $220 $200 $265 $19 FY17 FY18 FY19 FY20 FY21 FY22 Returning capital to shareholders $0.6B over the last six years $1.27B over the last six years $M $M 284 352 368 428 494 487 FY17 FY18
Slide 27: Strategic investments have accelerated top-line growth
Strategic investments have accelerated top-line growth FY19 FY20 FY21 FY22 Base growth Acceleration from Investments 1 Cumulative three-year investments (FY20 - FY22) based on internal attribution estimates 2 Organic LTM growth reported for respective FY Digital Platform Private Markets Other Deep S
Slide 28: Capital Allocation Framework
Digital Platform Private Markets Other Deep Sector 28Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Investments (R&D / CapEx) Share Repurchas Dividends Acquisitions Capital Allocation Framework Medium Term Goals Target annual organic investment net ~100
Slide 29: Optimizing capital structure to ensure flexibility
29Copyright © 2023 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 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 p
Slide 30: In fiscal 2023 we expect higher ASV growth and expanded margin
$1.4 $1.4 $1.5 $1.6 $1.8 $2.080-$2.100 FY18 FY19 FY20 FY21 FY22 FY23* $79 $72 $78 $112 $163 $145-$175 FY18 FY19 FY20 FY21 FY22 FY23* $8.53 $10.00 $10.87 $11.20 $13.43 $14.50-$14.90 FY18 FY19 FY20 FY21 FY22 FY23* In fiscal year 2023, we expect to deliver 7%-9% higher ASV1 growth and expanded margin …
Slide 31: Disciplined expense management drives our margin expansion plan
Disciplined expense management drives our margin expansion plan • Actively manage key expense drivers: people, real estate, technology and third-party data • Reduce real estate footprint to mitigate costs • Focus on sustainable margin expansion to fund investment, coupled with careful expense manage
Slide 32: Fiscal 2023 guidance is in line with our medium-term outlook
Fiscal 2023 guidance is in line with our medium-term outlook shared on Investor Day FactSet Organic ASV Growth 2, 3, 5 FactSet Adjusted Operating Margin 4, 5 FactSet Adjusted Diluted EPS Growth 3, 5 8 - 9% 35 - 36% 11 - 13% Medium Term Outlook1 Research + Advisory Analytics + Trading Content + Techn
Slide 33: Appendix
APPENDIX
Slide 34: Committed to Sustainable Growth in the Communities in Which We Live and Work
Committed to Sustainable Growth in the Communities in Which We Live and Work As of 2/28, Board consists of eight directors: 7/8 independent, 3/8 women, 3/8 less than 5 years on Board, 6/8 less than 10 years on Board Independent Board Chair separate from CEO Board in process of becoming declassified
Slide 35: Updated FY23 guidance
Updated FY23 guidance includes CUSIP Global Services (+$10mm) and slightly reduced core ASV (-$15mm). GAAP Operating Margin guidance is moderately lower. FISCAL 2023 OUTLOOK As of March 23, 2023 FISCAL 2023 OUTLOOK As of September 22, 2022 Organic ASV + Professional Services Growth1 $145 - $175 mill
Slide 36: FactSet EBITDA and Adjusted EBITDA reconciliation
FactSet EBITDA and Adjusted EBITDA reconciliation FY2018 1 FY2019 1 FY2020 1 FY2021 1 FY2022 1 LTM Q2FY2023 2 YTD Q2 FY2023 3 Net Income $267.1 $352.8 $372.9 $399.6 $396.9 $447.7 $268.4 Interest Expense 4 16.3 20.1 13.1 8.2 35.7 65 33.3 Income Taxes 84.8 69.2 54.2 68.0 46.7 68.6 46.3 Depreciation an
Slide 37: FactSet free cash flow reconciliation
($ in thousands) Note: Columns may not foot due to rounding 1 Fiscal year ending August 31 2 Three months ending February 28, 2023 3 Includes property, equipment, leasehold improvements and capitalized internal-use software ($ millions) FY2018 1 FY2019 1 FY2020 1 FY2021 1 FY20221 YTD Q2 FY20232 Net
Slide 38: Non-GAAP Reconciliations Business Outlook
Non-GAAP Reconciliations Business Outlook Operating Margin, Net Income Fiscal 2023 (Forward Looking) Low End of Range High End of Range Revenues $2,080 $2,100 Operating Income $614 $641 Operating Margin 29.5% 30.5% Intangible Asset Amortization 71 71 Real estate charges 15 16 Business Acquisition /
Slide 39: Non-GAAP Reconciliations Adjusted Diluted EPS
($ in thousands)(In Millions Excet Per Share Data) Low-end of range High-end of range Diluted earnings per common share $12.45 $12.85 Intangible asset amortization 1.58 1.56 Real estate charges 0.33 0.37 Business acquisition / integration costs 0.14 0.14 Discrete tax items (0.01) (0.03) Adjusted dil