Corporate Overview · 23.11.2016 · Amount of cash on hand as at Sep 30, 2016 $10.5 M Amount of...

Corporate Overview

November 18, 2016

company.isc.ca TSX:ISV

ISC | Forward-Looking Statement

This presentation contains forward-looking information within the meaning of applicable Canadian securities legislation, including

management’s expectations and certain assumptions with respect to the registry services and products, its competitive landscape,

economic conditions in Canada and in particular, Saskatchewan, Ontario and Quebec, real estate market in Saskatchewan, market and

industry trends, economic impact of energy and resource sectors, transaction volumes, statements regarding the future financial position

or results of ISC, customer growth and diversification, dividend expectations, creation of shareholder value, growth opportunities, capital

and operating expectations, real gross domestic product, changes in high-value property registrations, changes in motor vehicle sales

volume, steady growth of active business entities, consolidated EBITDA margin, income taxes, our ability to attract and retain skilled staff,

the compensation and benefits that will be paid or provided to employees and our level of customer service, as well as goodwill and

intangibles are material factors in preparing forward-looking statements. In addition, the words ‘‘may’’, ‘‘will’’, ‘‘would’’, ‘‘should’’, ‘‘could’’,

‘‘expect’’, ‘‘plan’’, ‘‘intend’’, ‘‘trend’’, ‘‘indicate’’, ‘‘anticipate’’, ‘‘believe’’, ‘‘estimate’’, ‘‘predict’’, ‘‘project’’, ‘‘targets’’, ‘‘strive’’, ‘‘strategy’’,

‘‘continue’’, ‘‘likely’’ or ‘‘potential’’ or the negative or other variations of these words or other comparable words or phrases are intended

to identify forward-looking statements. Forward-looking information involves known and unknown risks, uncertainties and other factors

that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. Although

ISC believes the forward-looking information contained in this release is based upon reasonable assumptions, readers are cautioned not to

place undue reliance on forward-looking information as it is inherently uncertain and no assurance can be given that the expectations

reflected in such information will prove to be correct. Many factors and risks could cause our actual results to differ materially from those

expressed or implied by forward-looking information including those detailed in ISC’s Annual Information Form, dated March 15, 2016,

ISC’s Consolidated Financial Statements and Notes and Management’s Discussion and Analysis for the quarter ended September 30, 2016,

as well as other documents filed by ISC with Canadian securities regulators through SEDAR at www.sedar.com from time to time. Investors

and others should carefully consider the above-noted factors and risks and other uncertainties and potential events. 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 Statement

2 company.isc.ca TSX:ISV

ISC | Our Business at a Glance

Our Business at a Glance



We operate in two reportable segments defined

by their primary type of service offering.

Operating Segments

Registries: - Saskatchewan Land Registry (includes Land Titles Registry, Land Surveys Directory and

Geomatics) - Saskatchewan Personal Property Registry - Saskatchewan Corporate Registry (includes Common Business Identifier and Business

Registration Saskatchewan Program) - Saskatchewan Asbestos Registry

Services: - ESC – Search and Registration Services - ESC – “Know-Your-Customer” Services - ESC – Corporate Supplies and Accessories



Registries

End-use customers: Individuals or businesses who directly benefit from ISC registries:

- Individuals - Non-profit organizations - Business owners - Municipalities - Home builders - Financial institutions - Insurance companies - Car and equipment dealers

Channel customers: Intermediaries who manage relationships with end users but are typically not the beneficiary of our registry services:

- Law firms - Engineers - Surveyors - Agents (representing end-user customers)



Services

Search & Registration: - Law firms - Financing companies

Know-Your-Customer: - Financial institutions

Corporate Supplies & Accessories: - Legal professionals



Revenue Models

Registries TRANSACTION

Searches Registrations Maintenance and related services

SERVICE

Online or in person / Customized

Online or in person Online or in person / Customized

REVENUE TYPE*

Flat fees (standard searches,

e.g. $11 per land title search) Value-based fees (0.3% of the

value of the land title)

Flat fees (other registries) Flat or negotiated fees

* For a full list of our fees, go to www.isc.ca

Services TRANSACTION

Search & Registration Know-Your-Customer Corporate Supplies & Accessories

SERVICE

Online or in person / Customized In person Online or in person / Customized

REVENUE TYPE*

Flat fees Flat fees Per unit fees

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


ISC | Financial Position

Financial Position



Financial Position

• Balance sheet remains strong with ability to fund growth opportunities.

• Continues to support dividend.

$38.3 M Amount of cash on hand as at Sep 30, 2016

$10.5 M Amount of 2016 dividends paid to shareholders as at Sep 30, 2016

$5-6 M CapEx expected in 2016

$23.4 M Total debt as at Sep 30, 2016


30.6 30.2 28.4 34.0 31.6 30.4

2013 2014 2015

EBITDA Adjusted EBITDA


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

1EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin and free cash flow are not recognized as measures under IFRS and do not have a

standardized meaning prescribed by IFRS and therefore, are not comparable to similar measures by other corporations. See section name “Non-IFRS Measures” in the Management’s Discussion & Analysis for the period ended December 31, 2015.


ISC | Financial Strength

Multiple Lines of Revenue

79.1 80.5 78.3

2013 2014 2015

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

Land Titles Registry Personal Property Registry Corporate Registry Geomatics Land Surveys Directory Services

11


Multiple Lines of Revenue

Revenue – 3rd Quarter 2016

32.1% EBITDA margin

$0.22 EPS (basic share)

$22.9 M Total revenue


Land Titles Registry Personal Property Registry Corporate Registry Geomatics Land Surveys Directory Services

62%

14%

12%

8%

2% 2%

Total revenue for the nine months ended September 30 (CAD$ millions)

60.7 55.7 67.2

2014 2015 2016


2016 Q3 Financial Highlights Thousands of CAD dollars; except earnings per share and where noted

Three Months Ended Sep 30, 2016

Three Months Ended Sep 30, 2015

Nine Months Ended Sep 30, 2016

Nine Months Ended Sep 30, 2015

Revenue $ 22,894 $ 19,675 $ 67,174 $ 55,740

Net income and total comprehensive income $ 3,810 $ 4,656 $ 12,584 $ 11,350

EBITDA1 $ 7,338 $ 8,165 $ 22,697 $ 20,176

Adjusted EBITDA1 $ 9,512 $ 9,570 $ 26,117 $ 21,762

EBITDA margin1 (% of revenue) 32.1% 41.5% 33.8% 36.2%

Adjusted EBITDA margin1 41.5% 48.6% 38.9% 39.0%

Free cash flow1 $ 5,641 $ 5,606 $ 15,254 $ 14,800

Dividend declared per share $ 0.20 $ 0.20 $ 0.60 $ 0.60

Earnings per share2 (basic) $ 0.22 $ 0.27 $ 0.72 $ 0.65

Earnings per share, (diluted)2 $ 0.22 $ 0.27 $ 0.71 $ 0.65

1. EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin and free cash flow are not recognized as a measure under IFRS and do not have a standardized meaning prescribed by IFRS. See section name “Non-IFRS Measures” in Management’s Discussion & Analysis for the three and nine months ended Sep 30, 2016.

2. The calculation of earnings per share is based on net income after tax and the weighted average number of shares outstanding during the period.



Outlook 2016

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

Expected consolidated annual EBITDA margin between 32% and 34%.

Current economic conditions expected to impact revenue in 2016.


ISC | Growth

Growth


ISC | Industry Overview

Market Trends

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

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

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


ISC | Growth

Growth Focus

Become More Efficient Internally Grow bottom line by:

- Cost management

- Increased productivity

Explore New Paths Externally - Extend current services to other jurisdictions and private industries

- Add new services or features to expand business from existing clients

- Acquire companies with competencies or operations in our industry space


ISC | Investment Proposition

Investment Proposition


ISC | Investment Proposition

Investment Proposition

Strong Core Business - 20-year exclusive Master Service Agreement with Government of Saskatchewan,

including data license

- Understanding of Alternative Service Delivery model and needs of governments

Emerging Diversification - Investment in Dye & Durham Corp.

- Acquisition of ESC Corporate Services Ltd.

Financial Position - Strong cash flow

- Strong balance sheet


ISC | Appendices

Appendices


ISC | Appendices

TSX: ISV

Shares Outstanding Listing Market Cap 52-Week High 52-Week Low Dividend History Contact

17.5 million Class A Limited Voting Shares TSX: ISV $295.6 million $18.87 $13.23 $0.80 per share annually (paid quarterly) since 2013 [email protected] or call toll free 1-855-341-8363

As at Nov 18, 2016


RBC Steve Arthur, CFA August 7, 2013

GMP Securities Michael Urlocker, CFA February 3, 2014

CIBC Stephanie Price July 15, 2014

Sentry Investments, Inc. 14.90%

QV Investors Inc. 9.47%

Burgundy Asset Management 3.93%

Mawer Investment Management Ltd. 2.36%

Mackenzie Financial Corp. 1.43%

ISC | Appendices

Appendix A: Ownership

Top 5 Institutional Holders

Institutional Shareholder % O/S

Analyst Coverage

Institution Cover initiated on: Analyst

Ownership Distribution

35%

34%

31% Retail Investors

Institutional Investors

Government of Saskatchewan

22

As at November 18, 2016


Jeff Stusek President & Chief Executive Officer

ISC | Appendices

Appendix B: Management

Kenneth W. Budzak VP Operations & Customer Experience

Kathy Hillman-Weir, Q.C. VP Corporate Affairs & General Counsel, Chief Privacy Officer

Shawn B. Peters VP Finance & Technology and Chief Financial Officer


From left: Doug Emsley, Iraj Pourian,

Scott Musgrave, Karyn Brooks, Tom

Christiansen, Joel Teal, Tony Guglielmin,

Michelle Ouellette, Q.C., John Dowd, Dion

Tchorzewski

ISC | Appendices

Appendix C: Board of Directors


ISC | Appendices

Appendix D: 2016 Q3 Consolidated Revenue

Thousands of CAD dollars Three Months Ended

Sep 30, 2016 Three Months Ended

Sep 30, 2015 Nine Months Ended

Sep 30, 2016 Nine Months Ended

Sep 30, 2015

Land Registry (Land Titles Registry, Land Surveys, and Geomatics)

$ 15,015 $ 15,053 $ 41,882 $ 42,055

Personal Property Registry 2,670 2,769 7,675 7,574

Corporate Registry 1,860 1,846 6,828 6,095

Registries $ 19,545 $ 19,668 $ 56,385 $ 55,724

Services 3,316 - 10,211 -

Other 33 7 578 16

Total Revenue $ 22,894 $ 19,675 $ 67,174 $ 55,740


ISC | Appendices

Appendix E: Saskatchewan Economy

Agriculture, Forestry, Fishing & Hunting – 8.0%

Mining, Quarrying and Oil & Gas Extraction – 20.4%

Utilities – 2.6%

Construction – 7.7%

Manufacturing – 6.6%

Real Estate, Renting & Leasing – 9.9%

Other – 44.9%

Saskatchewan Industry Diversification based on GDP $ (2015)

8.0%

20.4%

2.6%

7.7%

6.6%

9.9%

44.9%


Corporate Overview · 23.11.2016 · Amount of cash on hand as at Sep 30, 2016 $10.5 M Amount of...

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