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Solium Investor OverviewSeptember 30, 2009
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SOLIUM CAPITAL – Investor Overview 2
Forward Looking Information 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.
No representation can be, or is being, made by Solium that future performance and operational results will conform to any estimates and projections contained or implied in this document. Important factors that could cause or influence such differences include, but are not limited to: general business and economic conditions, the overall stock market performance, actions from competitors, the corporate governance environment and regulatory reporting requirements for Solium’s clients, product capability and acceptance, the Company’s ability to generate sufficient cash flow from operations to meet its current and future obligations, and the Company’s ability to access external sources of financing if required.
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.
SOLIUM CAPITAL – Investor Overview 3
Solium Capital - Corporate Data Snapshot
Founded: November 1999
IPO: May 2001
Stock Symbol: SUM (TSX)
2008 Revenue: $17.0 million
5-year CAGR to Dec 31, 2008: 54%
Employees: 127
Share Capital:Basic: 31.1 million*Diluted: 33.7 million*Management & Directors: 15.7 million*
Operations: Calgary, Toronto, Montreal and Southfield (near Detroit)
* As at September 30, 2009
SOLIUM CAPITAL – Investor Overview 4
Solium is a financial services solutions company, differentiated through industry-leading technology and an unrelenting commitment to domain expertise. Solium is focused on profitably leveraging its core strengths in record keeping and administration of equity to become the global leader in our chosen market segments and selectively extend our business model to areas exhibiting complementary attributes.
Who is Solium?
Execution Strategy
Leverage technology to accelerate our position as a global technology innovator
Nurture a culture of exemplary and industry leading client service
Develop our people to be the industry’s knowledge experts and internal leaders
Take a measured approach to global expansion and seek opportunities to acquire key assets that offer strategic leverage
SOLIUM CAPITAL – Investor Overview 5
Solium Capital Inc.
Solium Canada(Full Service Plans
Administration)(1999)
Solium USA(Full Service Plans
Administration)(2005)
StockVantage(Software Only Plans
Administration)(2007)
Solium EquityConsulting Services
(Advisory Services)(2008)
Solium FinancialServices
(US Broker/Dealer)(2008)
Organizational Structure
SOLIUM CAPITAL – Investor Overview 6
Management
Rudi BesterExecutive Vice President,Sales & Marketing
June DavenportExecutive Vice President,Business Integration
Stephanie CegliaVice President,Strategic Integration, US
Kobe DavisVice President, Technology
Jeff EnglishPresident & CEO
Chris GrootVice President & General ManagerUS Operations
Jeannie KezamaExecutive Vice President,Service Operations
Lynn LeongExecutive Vice President,Finance & Administration
Marcos LopezExecutive Vice President,Corporate Strategy & Business Development
Solium Capital Inc. Solium Capital LLC
StockVantage Inc.
Solium EquityConsulting Services Inc.Jim McBrideManaging Principal
Vince AlessiVice President
Don DrybroughVice President, Corporate Solutions
Chris GrootVice President, Sales
Board of Directors
Mike Broadfoot (1)
Board member since 2002
Brian CraigBoard member since 2001
Jeff EnglishBoard member since 2007
Justin FerraraBoard member since 2002
Russ WaterhouseBoard member since 2004
Tony WebbBoard member since 2004
(1) Chairman of the Board
SOLIUM CAPITAL – Investor Overview 7
Share Profile12 month trailing
52 week high: $1.40 52 week low: $0.65
Shares Outstanding: 31, 162,279 (as at September 30, 2009)Stock Options: 2,246,800 (7.2% of Outstanding)Restricted Share Units: 490,644 (1.6% of Outstanding)Insider Ownership: 50.5%
SOLIUM CAPITAL – Investor Overview 8
Core Product OfferingsProvide web-based administration solutions to assist publicly traded companies with managing their corporate employee equity programs
Specifically focused on:
Grant based incentives – Stock OptionsShare Unit plans (Performance, Restricted and
Deferred)Restricted Stock AwardsShare Appreciation Rights (SARS)Tandem Share Appreciation RightsStock Settled Share Appreciation Rights
Share Savings Plans - Registered Share Purchase Plans (RRSP) Non-Registered Share Purchase Plans423 Plans
In addition to management tools for our corporate administrators, Solium provides brokerage execution services for plan participants through a network of brokerage relationships
SOLIUM CAPITAL – Investor Overview 9
Product Capabilities
Solium Shareworks™ Base platform
Interfaces with other systems Scalable to handle the largest of clientsOnline access 24/7Real time execution & settlement – handles market orders, limit orders, etcUnique login provides access to all equity compensation plans System generated messages and alerts for blackouts, new grants, etc
Complete financial reporting Fair value calculations and automated stock option expensingFull support for stock options, share units, restricted stock awards, share appreciation rights and tandem SAR’sComplete history of grants and activity for employer and employeesComprehensive employee reports and tools
Tracking of employer & employee contributionsVesting capabilitiesComplete range of registered and non-registered plans in Canada, and 423 plans in the USAutomated rules plan administrationSupports plans with single stock, mutual funds and GICs
Gra
nt B
ased
Aw
ards
M
odul
eS
hare
Pur
chas
e &
H
oldi
ngs
Mod
ule
SOLIUM CAPITAL – Investor Overview 10
North America Market Opportunity Competitors
Canada (1)Public Companies:TSX & TSX Venture – 3,810Plan Participants:Grant Based - ~250,000Share Purchase - ~800,000
United StatesNumber of Plans: (2)
Stock Options - 3,000Stock Purchase – 4,000
Number of Participants:Stock Options – 9,000,000Stock Purchase – 11,000,000
SoliumCompanies – 384Participants: Grant based – 104,359Share Purchase – 91,222
SoliumCompanies – 170Participants:Grant based – 56,885Share Purchase – 13,540
Brokers
Merrill Lynch CitibankUBS E*TRADEFidelity
Transfer Agents
Computershare ASTCIBC Mellon Bank of NY
Software
SGVestia EASIOptrack
Life Insurance
Sunlife ManulifeStandard Life
(1) Canadian market numbers are based on Solium’s internal estimations(2) Source: National Center for Employee Ownership (NCEO)
SOLIUM CAPITAL – Investor Overview 11
Special Projects &Consulting Fees
Channel License Fees
Revenue Model Components
Transaction AdministrationRevenue
• Recurring monthly fees, indefinite term• Annualized based on participant levels• Flexible, modular pricing structure
• Recurring monthly fees• Annualized based on participant levels• Flexible, modular pricing structure
• One time, ad hoc• Fee for service for client driven customization and/or projects
• Solium transaction fees• Brokerage administration & access fees• Money movement fees• Foreign currency margin
• Variable fees – Activity based• Usually employee borne
• One time fees• Function of plan complexity
Implementation Fees
Access Fees
SOLIUM CAPITAL – Investor Overview 12
71%3%
23%
1%2% Recurring Access Fees
Implementation Fees
Transaction Administration Revenue
Channel Revenue
Consulting Revenue
Revenue MixSix months ended September 30, 2009
SOLIUM CAPITAL – Investor Overview 13
-
100
200
300
400
500
600
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2005 2006 2007 2008 2009
Clie
nts
StockVantage US CANADA
479 554+16%Direct Client Growth
Quarterly
SOLIUM CAPITAL – Investor Overview 14
-
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
2005 2006 2007 2008 2009
Par
ticip
ants
StockVantage US CANADA
Direct Participant GrowthQuarterly
228,178 223,237-2%
SOLIUM CAPITAL – Investor Overview 15
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2004 2005 2006 2007 2008 2009
Access Revenue GrowthQuarterly
5 Year CAGR53%
SOLIUM CAPITAL – Investor Overview 16
$498,862 $864,335
$3,033,362
$6,194,727
$8,695,785
$12,544,270
$17,039,855
-$3,000,000
$2,000,000
$7,000,000
$12,000,000
$17,000,000
$22,000,000
2002 2003 2004 2005 2006 2007 2008
Revenue
EBITDA
7 year CAGR80%
5 year CAGR54%
Annual Financial Performance
SOLIUM CAPITAL – Investor Overview 17
Consolidated EBITDAQuarterly
($200,000)
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2005 2006 2007 2008 2009
SOLIUM CAPITAL – Investor Overview 18
Capital Structure
Common Shares31.1 million issued and outstanding – full voting rights
OptionsApproved pool of 4.6 million options2.2 million options issued and outstanding as at September 30, 2009Exercisable between $0.50 and $2.975 year expiryVest 50% after two years, then 25% annually for the two years thereafter
Restricted Share Units0.5 million issued and outstanding as at September 30, 2009Vest 50% after two years, and 50% after three yearsDelivery of common shares on vesting dates
SOLIUM CAPITAL – Investor Overview 19
Owner Orientation
A team that is well aligned with ShareholdersA team that has an owner manager cultureAn executive team whose wealth creation opportunity is tied primarily to the return on their equity shareholdings, not their salary or the size of the company.
Share Ownership (%)* Basic Fully Diluted
Board 38.1% 36.4%
Management (excludes officers who are Board members) 12.4% 14.9%
Total 50.5% 51.3%
* As at September 30, 2009
SOLIUM CAPITAL – Investor Overview 20
Insider Ownership
Top Insider Shareholders* Basic (‘000) Fully Diluted (‘000)
1 Mike Broadfoot (Board) 6,045 6,115
2 Brian Craig (Board) 4,144 4,206
3 Marcos Lopez (Executive) 1,850 2,000
4 June Davenport (Executive) 674 764
5 Jeff English (Board and CEO) 527 727
6 Anthony Webb (Board) 468 513
7 Kobe Davis (Executive) 453 601
8 Russ Waterhouse (Board) 409 434
9 Jim McBride (Executive) 314 389
10 Justin Ferrara (Board) 291 345
Total 15,175 16,094
Aggregate % of ownership listed 49% 47%
For the most current data please visit the ‘Insider Summary’ page within the Investor Relations section of Solium’s website.
* As at September 30, 2009