INVESTOR PRESENTATION - sonet-wpengine.netdna … · • HRIS integration ... • System integrators • HCM companies Customers 10. MORGAN STANLEY AND UBS PARTNERSHIPS 11 Q4 2017

INVESTOR

PRESENTATIONMAY 2018

FORWARD LOOKING STATEMENTS

This document may contain forward-looking statements and/or assumptions that involve known and/or unknown risks. Such statements and

assumptions may include: the size and/or economics of the market, plans and intentions to increase market share, expand geographically,

and/or further develop product capabilities; the results of strategic initiatives; and the impact of competition. These forward-looking

statements and assumptions are based on the expectations of Solium and involve known and unknown risks, uncertainties and other

factors that may cause or influence the actual results, market performance, or achievements to differ from any future expected results,

performance or achievements expressed or implied by such forward-looking statements. Solium is not making any representation,

expressed or implied, as to the accuracy or completeness of the statements or assumption of future performance and operational results

made in this document. Important factors that could cause or influence such differences include, but are not limited to: inaccurate

assumptions on the size and/or economic parameters of the market; changes in economic or business conditions in general; changes in the

competition; changes in services provided by Solium’s suppliers, alliance partners, and channel partners; changes in customer needs and

expectations; and any governmental or regulatory actions. In making an investment decision, prospective investors must make their own

determinations as to the reliability of these projections, assumptions and forward-looking statements. Solium undertakes no obligation to

update any forward-looking statement, assumptions, or the other information herein in order to reflect events or circumstances that may

arise after the date of this document. The information in this document is not to be copied, printed or distributed without the prior written

approval of Solium.

2

A 500-EMPLOYEE

COMPANY CAN GENERATE

12,500 SHARE-BASED

TRANSACTIONS EACH YEAR

3

4

LAYER ON MULTIPLE

JURISDICTIONS,

REPORTING CURRENCIES

AND TAX REGIMES

BUILDING THE WORLD’S

LEADING EQUITY

MANAGEMENT PLATFORM

5

SINGLE SAAS PLATFORM

Transacting on 13 global

exchanges

6

Single, real-time,

cloud-enabled platform

Transacting on 15 global

exchanges

First and only

global platform

REMOVING COMPLEXITY AND ENSURING COMPLIANCE

REPORTING

• Streamlined report

generation in real time

• Matrix security

• Report sharing functionality

• Enhanced international tax

COMPLIANCE

• Automated processes

improve data integrity

• Accurate audit trail

• Global regulatory and

compliance database

ADMINISTRATION

• HRIS integration

• Grant allocation in multiple

currencies

• Fund distribution in multiple

currencies

SERVICE

• Participant transactions in

real time

• Enhanced user support for

administrators

• Participant support

7

Multi-jurisdiction

operationsNumerous

award types

Stringent

compliance

environment

International

tax & financial

reporting

Global & mobile

employee base

Multiple data

entry points

Manual

calculationsLimited

access points

Incompatible

platforms

OUR GLOBAL ADVANTAGE

8

Participant logins in a

24-hour period

Participants in over 100 Countries

Unified Service Model

Global money movement

(US$8.5B 2017)

4 global operating centers

(Calgary, Tempe, London, Sydney)

24/7 Call Center

Scalable enterprise offering with

global capabilities

Global Shared Services

DIVERSIFIED CUSTOMER BASE

9

Canada United States EMEA Australia

HOW WE SELL

Direct sales force

White label partners

Third party partners

• Law firms

• Wealth managers

• System integrators

• HCM companies

Customers

10

MORGAN STANLEY AND UBS PARTNERSHIPS

11

Q4 2017FIRST CLIENT

MIGRATIONS LIVE -

COMPLETE ALL BY H2

2019

33NEW DEALS CLOSED

JOINTLY WITH

MORGAN STANLEY

> 400MORGAN STANLEY

AND UBS

CORPORATE CLIENTS

$18MANNUAL RECURRING

REVENUE FOR

MORGAN STANLEY

R&DDEVELOPMENT ON TRACK

AND ACHIEVING TARGET

MILESTONES

$10M -15MINCREMENTAL R&D

INVESTMENT FOR

MORGAN STANLEY

PRIVATE MARKET FOCUS

Pre-Seed Seed Series A Series B & Beyond Pre-IPO Public

409A valuations

Early Stage Platform (Fast 409A) Later Stage/Pre-IPO (customized) valuations

Law Firms VCsAdvisors &

Consultants

Accounting

Firms

Outsourced

CFOs

12

HR compensation data and planning tools

FINANCIAL AND

OPERATING METRICS

TTM KEY FINANCIALS (THROUGH Q1 2018)

14

$90.9MTOTAL

REVENUE

REVENUE BY GEOGRAPHY

Canada

33%

U.S.

50%

*International

17%

$11.0MADJUSTED

EBITDA *Primarily comprised of UK & Australia

14

All $ figures in USD

REVENUE MODEL

66%FIXED-RECURRING

SUBSCRIPTION REVENUE

30%PARTICIPANT & PLAN BASED -

REOCCURRING ACTIVITY

4%ONE-TIME

• Brokerage, transaction & fund movement fees

• Foreign exchange spread

96%

• Implementation fees

• Special projects & consulting

+ +

Based on 5-year average

15

AVERAGE ANNUALIZED TRADES PER PARTICIPANT

16

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18

12-month moving average

5-year moving average

0

10

20

30

40

50

60

70

80

90

100

2012 2013 2014 2015 2016 2017 TTM

GROWING ANNUAL REVENUE

17

(USD, in millions)

5 YEAR CAGR*

11%

* CAGR calculated 2012-2017

0

5

10

15

20

25

TTM Q1 2017 TTM Q2 2017 TTM Q3 2017 TTM Q4 2017 TTM Q1 2018

TTM ADJUSTED EBITDA

18

(USD, in millions)

21%20%

17%

TTM Adjusted EBITDA Margin

14%12%

KEY FINANCIAL METRICS

(USD, in millions) Q1 – 18 Q4 – 17 TTM

Cash(USD, in millions)

87.0 100.2 N/A

Free Cash Flow(USD, in millions)

(4.1) 7.0 3.4

Enterprise Value(CAD, in millions)

512 484 N/A

19

No Debt and Strong Cash Balance to Fuel Acquisitions and Support New Client Wins

GROWTH

STRATEGY

INTERNATIONAL GROWTH OPPORTUNITIES

21

• Leverage lead market share

• Win a share of IPOs choosing Shareworks

• Significant white-label and partnership potential

with large Wealth Management firms

United States

• Market-leading presence in equity

administration

• Expansion into ESPP market

• Success in signing Macquarie Group and

BHP Billiton

• Continuing to build brand awareness and

strong pipeline with focus on ASX 100

companies

Australia

• Distribution strength through channel and direct sales

• Expansion into Germany via landmark German

account

• Barcelona service centre in place to support

mainland Europe

UK/EuropeCanada

GROWTH THROUGH A GLOBAL PLATFORM

1ORGANIC GROWTH

2ACQUISITIONS

3 GEOGRAPHIC EXPANSION

• Direct salesforce

• Increase share of wallet within

customer base

• Wide range of products for

addressing multiple markets

• Strong distribution capabilities

in all major operating markets

• Acquire “books of business”

• Continue to lead the

consolidation

• Leverage diminishing marginal

cost model of business

• Continued investment in key

global markets & capacity

• Building global scale – enabling

access to larger global

opportunities

22

White-Label Partnership Opportunities

LONG-TERM OPPORTUNITY

23

Asia / Pacific

United States

EMEA

Canada

Global tax

& mobility

US$91MTTM REVENUE

>$1B

23

TOTAL

ADDRESSABLE

MARKET

Complementary

products & services

Total rewards

reporting

INVESTMENT HIGHLIGHTS

Robust Technology Solution1

2

3

4

5

Multiple Distribution Channels

Strong and Predictable Subscription-Based Revenue Model

Consistent Revenue Growth with 5-year CAGR of 11%

Sizable Total Market Opportunity

24

THE GLOBAL SOLUTION

FOR EQUITY COMPENSATION

ADMINISTRATION