Corporate Overview · 2019-08-07 · Corporate Registry. Focus on growth. Corporate services and corporate accessories . company.isc.ca TSX:ISV . 4 Registry technology solutions Offering

company.isc.ca TSX:ISV

Corporate OverviewAugust 7, 2019

ISC® | Forward-Looking Information

This presentation contains forward-looking information within the meaning of applicable Canadian securities legislation including, withoutlimitation, those contained in the “Results and Guidance” section hereof, and management’s expectations, intentions and beliefsconcerning the industries in which we operate, business strategy and strategic direction, growth opportunities, integration, contingentconsideration, development and completion of projects, the competitive landscape, seasonality, our future financial position and resultsincluding expected revenue, EBITDA, and capital expenditures, and market trends. Forward-looking information involves known andunknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or impliedby such forward-looking information. Important factors that could cause actual results to differ materially from the Company's plans orexpectations include operational, economic, market, financial, competitive, regulatory, technological and other risks detailed from time totime in the filings made by the Company including those detailed in ISC’s Annual Information Form for the year ended December 31, 2018and ISC’s unaudited condensed consolidated interim Financial Statements and Notes and Management’s Discussion and Analysis for thethree and six months ended June 30, 2019, copies of which are filed on SEDAR at www.sedar.com.

The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities legislation,ISC® assumes no obligation to update or revise such information to reflect new events or circumstances.

Forward-Looking Information

2company.isc.ca TSX:ISV

Our Business at a Glance


Overview

Leading provider of registry and information management services for public data and records.

Saskatchewan’s exclusive provider of the Land Titles Registry, Land Surveys Directory, Personal Property Registry and Corporate Registry.

Focus on growth.

Corporate services and corporate accessories

company.isc.ca TSX:ISV 4

Registry technology solutions

Offering solutions to manage, secure and administer information through our Registry Operations, Services and Technology Solutions segments.

2018 Financial highlightsRevenue $119.1MEBITDA $35.9MEBITDA margin 30.1%FCF $25.2MBasic EPS $1.07

ISC® | Our Business at a Glance

TSX: ISVMarket cap $280.00 M52 week high $18.2952 week low $14.36Dividend per share $0.80Dividend yield 4.95%

As at August 6, 2019



Our Business


Description Characteristics Revenue Categories Brands

Registry Operations

Delivery of registry services on behalf of governments.

• Trusted full-service registry operator.

• Strong customer service focus.• Recurring revenue through long-

term service agreements.

• SK Land Registry• SK Personal Property Registry• SK Corporate Registry

Services

Delivery of products and services that utilize public records and data to provide value to customers in the legal and financial sectors.

• Delivery of industry-leading solutions uniting public record data, customer authentication and collateral management.

• Our solutions provide corporate legal services and support optimal lending practices to clients with business across Canada.

• Financial Support Services• Legal Support Services

Technology Solutions

Development, delivery and support of registry (and related) technology solutions.

• RegSys is the complete registry platform capable of serving a wide range of registry needs.

• Software implementation and long-term service contracts to ensure maintenance of stable registry systems.

• Hosting, support and maintenance

• Solution definition and implementation


Revenue Model


* For a full list of our fees, go to www.isc.ca**For a full list of our fees, go to www.eservicecorp.ca/index.php/pricing-turnaround-times

Service Revenue type

Registry Operations

• Searches• Registrations • Maintenance and related services

Per transaction*: • Flat fees • Value-based fees

Services• Searches and registrations • Filings• Corporate supplies• Credit due diligence, protection and

default services

• Flat fees per transaction**• Per unit fees

Technology Solutions

• Hosting, support and maintenance • Solution definition and implementation

• Consulting fees• Fee-for-service • Annual maintenance contracts

Financial Position


ISC® | Financial Position

Financial Position

Strong balance sheet • Ability to fund growth opportunities.

• Continues to support dividend.

$19.2 MAmount of cash on hand as at June 30, 2019

$14.0 MAmount of 2018 dividends paid to shareholders as at December 31, 2018

$8.6 MFree cash flow for the three months ended June 30, 2019

$19.0 MTotal debt as at June 30, 2019


Revenue


Consolidated revenue for the year ended December 31(CAD$ millions)


0

20

40

60

80

100

120

140

160

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Registry Operations Services Technology Solutions

EBITDA


Consolidated EBITDA for the year ended December 31(CAD$ millions)


32.6

22.1 22.224.2

28.830.6 30.2

28.4 29.5 30.0

35.9

0

5

10

15

20

25

30

35

40

45

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

1 EBITDA, EBITDA margin, adjusted EBITDA and adjusted EBITDA margin are not recognized as measures under IFRS and do not have a standardized meaning prescribed by IFRS and, therefore, they may not be comparable to similar measures by other corporations. Refer to section 22 “Non-IFRS Financial Measures”. Percentages expressed represent the EBITDA and adjusted EBITDA margin percentages, respectively.

Revenue / EBITDA


Consolidated revenue and EBITDA1 for the year ended December 31(CAD$ millions)


1 EBITDA, EBITDA margin, adjusted EBITDA and adjusted EBITDA margin are not recognized as measures under IFRS and do not have a standardized meaning prescribed by IFRS and, therefore, they may not be comparable to similar measures by other corporations. Refer to section 22 “Non-IFRS Financial Measures” of the MD&A. Percentages expressed represent the EBITDA and adjusted EBITDA margin percentages, respectively.

66.4

57.1 60.3

70.8 73.379.1 80.5 78.3

88.493.6

119.1

32.6

22.1 22.2 24.228.8 30.6 30.2 28.4 29.5 30.0

35.9

0

20

40

60

80

100

120

140

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenue EBITDA


Diversified Revenue


Technology Solutions is net of Corporate and other revenue. The Technology Solutions segment was established in 2018; therefore, the 2017 chart has been restated for comparative .

80%

16%

4%

2017

59%

36%

5%

2018

Registry Operations Services Technology Solutions

Revenue

EBITDA Margin

EBITDA

2018 2017

$119.1M $93.6M

30.1% 32.1%

$35.9M $30.0M

ISC® | Outlook

Results and Guidance

Continued focus on sustaining our core business while pursuing new growth opportunities.


Revenue

EBITDA Margin

EBITDA

2018 results 2019 guidance

$119.1Mcompared to $93.6M in 2017

Targeting between

$129.0M and $135.0M

30.1%compared to 32.1% in 2017

Targeting between

24.0% and 27.0%*

$35.9Mcompared to $30.0 M in 2017

Targeting between

$31.0M and $35.0M

*Note that the acquisition of AVS in December 2017, with a high revenue, lower margin profile, changes ISC’s consolidated revenue and EBITDA margin profilecompared to previous years.


Growth

ISC® | Growth

Market Trends

Outsourcing Business Processes & ServicesGovernments, legal firms and financial institutions are looking to find cost savings and focus on their core business without compromising service quality.

Increased Regulatory & Compliance RequirementsImproved workflows and automated processes help meet requirements and reduce potential business risk for clients.

Emphasis on Reliability & Security of InformationISC has the know-how, processes, technology and proven experience to manage data authentication and security.

Emerging Global Registry MarketISC continues to believe the global registry market is an emerging sector.


ISC® | Growth

Recent Growth


Acquisitions Business development

• ERS - 2017

• AVS Systems Inc. – 2017

• Alliance Online – 2017

• Securefact - 2019

• Nova Scotia Registry of Joint Stock Companies

• Yukon Land Title Registry

• Ohio Secretary of State’s Office

• Companies Registration Office (Ireland)

• Missouri Secretary of State’s Office

Supported by

Increased emphasis on technology solutions An expanded leadership team

• To complement existing Registry Operations and Services business.

• Appointment of Executive Vice President, Technology Solutions.

• Now have a team of 50+ technical resources with deep registry expertise.

• To advance the business and future growth of the Company.

• Includes new leadership in marketing and business development.

Investment Proposition

company.isc.ca TSX:ISV 24

ISC® | Investment Proposition

Investment Proposition

Strong core businessLong-term service agreements for registry operations on behalf of governments.

Proven growth strategyDiversifying our business by continuing to execute on our growth strategy focused on organic growth and acquisitions.

Disciplined capital allocationInvesting in growth opportunities while ensuring stable dividend program.

Robust shareholder returnsReturning $14.0 million annually to shareholders since IPO in 2013.

Strong balance sheetMaintaining a solid balance sheet and strong operating cash flow.


20

Appendices


ISC® | Appendices

TSX: ISVShares Outstanding

Listing

Market Cap

52-Week High

52-Week Low

Dividend History

Contact

17.5 million Class A Limited Voting Shares

TSX: ISV

$280.00 million

$18.29

$14.36

$0.80 per share annually (paid quarterly) since 2013

[email protected] or call toll free 1-855-341-8363



ISC® | Appendices

Appendix A: Ownership

Top 5 Institutional Holders% O/S

Analyst Coverage

37%

33%

31%

22



Institutional Shareholder % O/S

CI Investments, Inc. 14.89%

QV Investors Inc. 9.24%

Burgundy Asset Management 4.60%

NCM Asset Management 0.41%

Hillsdale Investment Management, Inc. 0.38%

Institution Analyst Coverage initiated on

CIBC Stephanie Price July 15, 2014

Note: The Government of Saskatchewan owns 31% of ISC’s Class ALimited Shares.

23

Appendix B: ISC Leadership


Ken W. BudzakExecutive Vice-President, Registry Operations

Kathy E. Hillman-Weir, Q.C.Executive Vice-President, Chief Corporate Officer, General Counsel and Corporate Secretary

Shawn B. PetersExecutive Vice-President and Chief Financial Officer

Loren CisykExecutive Vice-President, Technology Solutions

Laurel GarvenVice-President, Business Strategy

Catherine McLeanVice-President, People and Culture

Dennis WhiteVice-President, Marketing and Business Development

Clare ColledgePresident, ESC Corporate Services

Jeff StusekPresident and Chief Executive Officer

ISC® | Appendices

24

Appendix C: Board of Directors


Doug EmsleyBoard Vice-Chair & Compensation Committee Chair

Tom ChristiansenCompensation Committee Member

Karyn BrooksAudit Committee Member

Anthony GuglielminAudit Committee Chair

Joel TealBoard Chair

ISC® | Appendices

Heather RossGovernance & Nominating Committee Member

Laurie PowersCompensation Committee Member

Iraj PourianGovernance & Nominating Committee Member

Dion TchorzewskiGovernance & Nominating Committee Chair

Scott MusgraveAudit Committee Member

Corporate Overview · 2019-08-07 · Corporate Registry. Focus on growth. Corporate services and corporate accessories . company.isc.ca TSX:ISV . 4 Registry technology solutions Offering

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