Dye & Durham Ltd. · TSX:DND
Dye & Durham — Q2 FY2022 Earnings Presentation
23 slides from Dye & Durham's earnings presentation, Feb 1, 2022
Slide 1: Quarterly Results Presentation Second Quarter 2022
QUARTERLY RESULTS PRESENTATION SECOND QUARTER 2022 February 1, 2022 When being certain is everything dyedurham.com
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared for informational purposes only. By accepting delivery of this presentation and/or attending the meeting where this presentation is made, you agree: (1) to keep strictly confidential the contents of this presentation and such other information and not t
Slide 3: Dye & Durham At-A-Glance
DYE & DURHAM AT-A-GLANCE 50,000+ customers Application B $376M LTM Revenue $212M million of LTM Adjusted EBITDA1 Application A Application C 50%+ Adjusted EBIDTA margin consistently1 124% Q2 Adjusted EBITDA CAGR Q2 since Q2 FY 20191 1. Adjusted EBITDA and Adjusted EBITDA margin are non-IFR
Slide 4: Mission Critical Software for the Legal and Business Community
MISSION CRITICAL SOFTWARE FOR THE LEGAL AND BUSINESS COMMUNITY We created the global leader Legal Specific Regulatory Information Workflow Software and Data When being certain is everything
Slide 5: Executing on Strategy
EXECUTING ON STRATEGY • Significantly expanded UK and Australia business with C$3.2B announced acquisition of Link Group expanding • The acquisition positions Dye & Durham as a global leader in the B2B software and information service solutions • Transaction will broaden our product suite, dramatica
Slide 6: A Repeatable Playbook: Acquire, Integrate and Drive Adj. EBITDA
A REPEATABLE PLAYBOOK: ACQUIRE, INTEGRATE AND DRIVE ADJ. EBITDA The Company has a repeatable process established to monitor, assess, execute When being certain isand integrate acquisitions and bring them down to 5x Adjusted EBITDA post synergies everything 6 6
Slide 7: Dye & Durham's "Build to a Billion" Objective
DYE & DURHAM’S “BUILD TO A BILLION” OBJECTIVE Adjusted EBITDA Profile (C$ millions) Transaction quickly accelerates Dye & Durham’s progress towards its “Build to a Billion” goal 278 1,000 Link adds new business verticals with significant synergy 364 potential that is expected to drive further EBITDA
Slide 8: Link Group Review
LINK GROUP REVIEW When being certain is everything 8
Slide 9: Key Highlights
KEY HIGHLIGHTS Further expands Dye & Durham’s global footprint and positions the Company as a clear leader in B2B software and information service solutions Establishes significant financial and operational scale across core geographies in Canada, Australia and the U.K. Broadens product suite for ex
Slide 10: Go-Forward Business
GO-FORWARD BUSINESS Real Estate and Legal Solutions Retirement and Superannuation Solutions Corporate Markets Other Interests C$376 mm1 C$212 mm1 C$466 mm C$131 mm C$336 mm C$82 mm Q2 FY22 LTM Q2 FY22 LTM FY’21 FY’21 FY’21 FY’21 Link has a 43% Revenue Adj. EBITDA Revenue Operating EBITDA Revenue Ope
Slide 11: Combined Business Will Broaden Its Product Reach Across Its Large Customer Base
COMBINED BUSINESS WILL BROADEN ITS PRODUCT REACH ACROSS ITS LARGE CUSTOMER BASE Practice Management Customer and Product Overlap Legal: Corporate: law firms, all sectors of Link + Dye & Durham in-house counsel the economy Customer Segments Workflow Information Software Services Tools Financial Servi
Slide 12: Pro Forma Business Profile
PRO FORMA BUSINESS PROFILE Employees by Geography – Post Divestment 1 Global Operational Footprint Australia 359 3,101 3,460 UK & I 708 1,268 1,976 India 1,703 1,703 Canada UK & I Canada 482 482 ~8,000 Total Employees Other 154 - 154 DND Link India Revenue by Geography 2 In C$ millions Canada Austra
Slide 13: Pro Forma Company Will Have Majority of Revenue as Recurring
PRO FORMA COMPANY WILL HAVE MAJORITY OF REVENUE AS RECURRING Recurring Revenue 1 of 50% + Key Highlights C$ millions • Link Group has a strong recurring revenue base accounting for over 85% of revenue • Dye & Durham has strong transactional revenue that is highly likely to re-occur Recurring Revenue
Slide 14: Adjusted EBITDA Profile
ADJUSTED EBITDA PROFILE ASSUMES TRANSACTION CLOSING ON JULY 1, 2022 FY2019-2024F Adjusted EBITDA(1) In C$ millions $794 $698 $278 $116 $26 $37 FY19A FY20A FY21A FY22F FY23F FY24F Source: Estimates based on equity research consensus Note: Link converted to CAD at a CADAUD exchange rate of 0.92. Assum
Slide 15: Pro Forma Scale vs. TSX Listed Technology Companies
PRO FORMA SCALE VS. TSX LISTED TECHNOLOGY COMPANIES FY2023 EBITDA vs. TSX Technology Peers1,2 In C$ millions $3,430 $2,652 + $1,713 $1,525 $698 $695 $324 $305 $187 $153 $139 $102 $61 $54 Financial Metrics FY2023 Revenue $8,728 $9,103 $4,417 $10,297 $1,467 $1,561 $1,766 $688 $538 $773 $1,402 $469 $29
Slide 16: Dye & Durham Growth and Margin Performance
DYE & DURHAM GROWTH AND MARGIN PERFORMANCE Benchmarking Growth and Margins Benchmarking Current Valuation ( EV / CY’22 EBITDA) Highest Margins Topicus.com 36.1x Peer Median: 35% PEXA 30.7x 65% Descartes 28.5x 55% Altus Group 22.4x Revenue Growth (CY'22 vs. CY'21) 45% Thomson Reuters 21.1x Highest Re
Slide 17: Financial Review
FINANCIAL REVIEW • Avjit Kamboj, Chief Financial Officer When being certain is everything 17
Slide 18: Summary Financial Results
SUMMARY FINANCIAL RESULTS • Dye & Durham has its strongest quarter yet, with meaningfully higher YOY and QoQ revenue and Adjusted EBITDA • The Company continues to exhibit world class and industry leading Adjusted EBITDA Margin Q2 FY2022 Results In Millions CAD Actuals LTM2 Revenue $109.6 $375.6 Adj
Slide 19: Key Financial Metrics
KEY FINANCIAL METRICS Q2 FY2022 Results vs. Comparative Periods In Millions C$ Q2 FY2022 Q2 FY2021 YOY Change ($) YTD FY2022 YTD Change ($) Revenue $109.6 $33.7 +75.9 $222.3 +166.7 Direct Costs $13.5 $4.1 +9.4 $29.1 +22.7 Expenses1 $33.5 $12.5 +21.0 $68.2 +48.6 Adjusted EBITDA $62.6 $17.1 +45.5 $125
Slide 20: A Track Record of Strong and Resilient Growth
A TRACK RECORD OF STRONG AND RESILIENT GROWTH Quarterly Adjusted EBITDA Growth Annual Adjusted EBITDA Growth (C$ millions) (C$ millions) 62.4 62.6 211.7 49.1 37.6 116.4 17.1 12.5 36.7 26.4 Q1 FY2021 Q2 FY2021 Q3 FY2021 Q4 FY2021 Q1 FY2022 Q2 FY2022 FY2019A FY2020A FY2021A LTM Q2 FY2022 When being ce
Slide 21: Net Debt to Pro Forma EBITDA
NET DEBT TO PRO FORMA EBITDA Net Debt to Pro Forma Adjusted EBITDA(1)(2) In C$ millions Source: Estimates based on equity research consensus, adjusted for acquisition and financing package 1. Link Converted to CAD at a CADAUD exchange rate of 0.92. Banking and Credit Management and Fund Solutions Bu
Slide 22: When being certain is everything
When being certain is everything 22
Slide 23: When being certain is everything
When being certain is everything 23