Donnelley Financial : DFIN Investor Presentation







11/16/2020 | 02:51pm EST

Investor Presentation

NOVEMBER 2020

This presentation is the intellectual property of DFIN. The ideas expressed in it may not be adopted or reproduced without prior permission from and compensation to DFIN.

FORWARD LOOKING STATEMENTS AND USE OF NON-GAAP FINANCIAL MEASURES

This presentation includes certain “forward-looking statements” within the meaning of, and subject to the safe harbor created by, Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the business, strategy and plans of Donnelley Financial and its expectations relating to future financial condition and performance. Statements that are not historical facts, including statements about Donnelley Financial management’s beliefs and expectations, are forward-looking statements. Words such as “believes,” “anticipates,” “estimates,” “expects,” “intends,” “aims,” “potential,” “will,” “would,” “could,” “considered,” “likely,” “estimate” and variations of these words and similar future or conditional expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. While Donnelley Financial believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Donnelley Financial’s control. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon future circumstances that may or may not occur. Actual results may differ materially from Donnelley Financial’s current expectations depending upon a number of factors affecting the business and risks associated with the performance of the business. These factors include such risks and uncertainties detailed in Donnelley Financial’s periodic public filings with the SEC, including but not limited to those discussed under “Risk Factors” in Donnelley Financial’s Form 10-K for the fiscal year ended December 31, 2019, those discussed under “Cautionary Statement” in Donnelley Financial’s quarterly Form 10-Q filings, and in other investor communications of Donnelley Financial’s from time to time. Donnelley Financial does not undertake to and specifically declines any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect future events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

Forward looking statements in this presentation are provided on a non-GAAP basis only, without providing a reconciliation to a GAAP basis. Information is presented in this manner, consistent with SEC rules, because the preparation of such a reconciliation could not be accomplished without “unreasonable efforts.” The Company does not have access to certain information that would be necessary to provide such a reconciliation, including non-recurring items that are not indicative of the Company’s ongoing operations. Such items include, but are not limited to, restructuring charges, impairment charges, spinoff-related transaction expenses, acquisition-related expenses, gains or losses on investments and business disposals and other similar gains or losses not reflective of the Company’s ongoing operations. The Company does not believe that this information is likely to be significant to an assessment of the Company’s ongoing operations, given that it is not an indicator of business performance.

This presentation includes certain “forward-looking statements” within the meaning of, and subject to the safe harbor created by, Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the business, strategy and plans of Donnelley Financial and its expectations relating to future financial condition and performance. Statements that are not historical facts, including statements about Donnelley Financial management’s beliefs and expectations, are forward-looking statements. Words such as “believes,” “anticipates,” “estimates,” “expects,” “intends,” “aims,” “potential,” “will,” “would,” “could,” “considered,” “likely,” “estimate” and variations of these words and similar future or conditional expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. While Donnelley Financial believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Donnelley Financial’s control. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon future circumstances that may or may not occur. Actual results may differ materially from Donnelley Financial’s current expectations depending upon a number of factors affecting the business and risks associated with the performance of the business. These factors include such risks and uncertainties detailed in Donnelley Financial’s periodic public filings with the SEC, including but not limited to those discussed under “Risk Factors” in Donnelley Financial’s Form 10-K for the fiscal year ended December 31, 2019, those discussed under “Cautionary Statement” in Donnelley Financial’s quarterly Form 10-Q filings, and in other investor communications of Donnelley Financial’s from time to time. Donnelley Financial does not undertake to and specifically declines any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect future events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

Forward looking statements in this presentation are provided on a non-GAAP basis only, without providing a reconciliation to a GAAP basis. Information is presented in this manner, consistent with SEC rules, because the preparation of such a reconciliation could not be accomplished without “unreasonable efforts.” The Company does not have access to certain information that would be necessary to provide such a reconciliation, including non-recurring items that are not indicative of the Company’s ongoing operations. Such items include, but are not limited to, restructuring charges, impairment charges, spinoff-related transaction expenses, acquisition-related expenses, gains or losses on investments and business disposals and other similar gains or losses not reflective of the Company’s ongoing operations. The Company does not believe that this information is likely to be significant to an assessment of the Company’s ongoing operations, given that it is not an indicator of business performance.

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THE DFIN STORY

Leader in SEC compliance & shareholder communications

Comprehensive suite of growing software solutions

Large base of recurring revenue with high customer retention

Market leading capital markets transactional business (IPOs, M&A)

Capital light business model, improving revenue mix, strong cash flow

75K

2019 SEC

Filings

$196M

Q320 TTM

Software Sales

$531M

Q320 TTM sales from recurring sources

#1

SEC Filing Agent

1.5x

Q320 net leverage

#1

SEC Filing

Agent – Total

Filings

23%

Software % of

total Q320 TTM sales

61%

2019 sales %

recurring sources

$255M

Q320 TTM

Capital Markets transactional filing sales

$25M

Repurchase authorization

DFIN AT A GLANCE

What we do

  • DFIN assists private/public companies and investment firms with the creation, submission and distribution of regulatory filings
  • In its transactional business, DFIN is a leader in assisting companies doing IPO’s, M&A transactions and debt offerings with prospectus creation, filing and printing needs
  • DFIN has a strong portfolio of software solutions
    • Venue: Virtual Data Room for M&A, equity and debt transactions
    • FundSuiteArc: Investment company cloud-based content management platform
    • ActiveDisclosure: Document tagging, collaboration and filing

Capitalization

$ in millions, except per share amounts

Share price (11.4.20)

$14.00

Shares outstanding

34

Market Capitalization

$476

Net debt (Q320)

251

Enterprise Value

$727

Q320 TTM

Revenue

$869

EBITDA

165

Adj. FCF

71

Low Valuation

EV / Q320 TTM EBITDA of ~4.4x and well below FinTech peers

Segment overview

  • Capital Markets services corporate clients by providing digital document creation and online content management tools to support regulatory reporting for transactions (i.e. IPOs, M&A, and debt offerings) and re-occurring filings (i.e. 10K’s, 10Q’s, and proxies)
    • CM Software Solutions: Venue, ActiveDisclosure, eBrevia
  • Investment Companies services mutual funds, insurance companies and hedge funds – provides cloud-based tools for creating and filing high quality regulatory documents (i.e. Forms NMFP, N-PORT,N-CEN)
    • IC Software Solutions: FundSuiteArc

Revenue breakdown (Q320 TTM)

Revenue by type

Revenue by segment

Other

1%

Software

CM-SS

15%

Solutions

Transactional

IC-CCM

23%

32%

Filings

30%

CM-CCM

Compliance &

45%

Communications

IC-SS

CM-SS: Capital Markets Software Solutions

CM-CCM: Capital Markets Compliance & Communications Management 4

IC-SS: Investment Companies Software Solutions

IC-CCM: Investment Companies Compliance & Communications Management

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Donnelley Financial Solutions Inc. published this content on 04 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 November 2020 19:50:05 UTC

All news about DONNELLEY FINANCIAL SOLUTIONS, INC.

Sales 2020 864 M

Net income 2020 12,4 M

Net Debt 2020 224 M

P/E ratio 2020 41,0x
Yield 2020
Capitalization 496 M
496 M
EV / Sales 2020 0,83x
Capi. / Sales 2021 0,67x
Nbr of Employees 2 900
Free-Float 93,2%

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Donnelley Financial Solutions, Inc. Technical Analysis Chart | MarketScreener

Technical analysis trends DONNELLEY FINANCIAL SOLUTIONS, INC.

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Income Statement Evolution

Consensus



Sell

Buy

Mean consensus BUY
Number of Analysts 5
Average target price
16,90 $
Last Close Price
14,85 $
Spread / Highest target 48,1%
Spread / Average Target 13,8%
Spread / Lowest Target -22,6%


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