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Alternative Business Models Presented by Kim Coppola Director, Business Development Information Services Corporation (ISC) IACA Conference, May 2014 Evolution of the Business Office

Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

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Page 1: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

Alternative Business Models

Presented by Kim Coppola Director, Business Development Information Services Corporation (ISC) IACA Conference, May 2014

Evolution of the Business Office

Page 2: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

Forward-Looking Statements

TSX : ISV

This presentation contains forward-looking information within the meaning of applicable Canadian securities legislation, including certain assumptions with respect to the Saskatchewan economy, consumer confidence, interest rates, level of unemployment, inflation, real estate market in Saskatchewan, claim liabilities, income taxes, our ability to attract and retain skilled staff, employee future benefits, goodwill and intangibles are material factors in preparing forward-looking statements and management’s expectations. 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 presentation 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 Interim consolidated Information Form, dated March 19, 2014, ISC’s unaudited condensed Consolidated Financial Statements and Notes and Management’s Discussion and Analysis for the quarter ended March 31, 2014 as well as other documents filed by ISC with Canadian securities regulators through SEDAR (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 presentation 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.

Page 3: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

Information Services Corporation

TSX : ISV

• Established January 1, 2000 as a Saskatchewan Provincial Crown corporation under:

• The Crown Corporations Act, 1993, and • The Land Information Services

Facilitation Act.

• Legislation amended The Land Titles Act and The Land Surveys Act to allow a Crown corporation to administer the Land Titles and Land Survey registries.

• Established to transform and operate Land Titles Registry, Land Surveys Directory, Personal Property Registry and Geomatics Services in Saskatchewan.

Page 4: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

Information Services Corporation

TSX : ISV

• Formation as a commercial Crown corporation that could more readily raise capital to invest in transformation.

• Changes in organizational structure including governance, finance, HR, legal, etc. were required with the addition of these functions.

• When performed by government these functions are dispersed throughout government ministries.

Page 5: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

Personal Property Registry Added from Ministry of Justice

Land Titles Registry Online submissions launched

Corporate Registry Added from Ministry of Justice

Enhanced Mineral Cadastral Formed base to transform how government develops mineral leases and production agreements

Vital Statistics Registry Completed process improvement, paper conversion to digital and new system enabling online applications

Mineral Administration Registry Developed and implemented 24/7 online system for issuing mineral claims

Land Titles Registry Converted paper titles into digital titles for surface and mineral parcels

Land Survey Directory Web-based portal enables access to maps and geographic information

Vital Statistics Registry Added from Ministry of Health

Business Registrations Saskatchewan Web-based portal integrated with Corporate Registry, CRA business number hub, Workers Compensation Board and Saskatchewan Finance PST

ISC Established as Crown corporation

2000 2001 2003 2005 2010 2011 2012 2008 2013

ISC Transformation IPO following privatization, 20 year Master Service Agreement with Saskatchewan Government

Vital Statistics Registry Transferred to eHealth Saskatchewan

Corporate Registry Led integration for New West Partnership Initiating process and system modernization

2006

Personal Property Registry Online system with B2B interface launched

Created Expertise in Adding, Integrating and Modernizing Registries

Page 6: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

Land Registry

and

Land Surveys Directory

6

Page 7: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

Land Registry and Land Surveys Directory

TSX : ISV

• LAND Project initiated to modernize 100-plus year old land and survey registries.

• Complete redesign, re-engineering and re-development of land and survey registries.

• Legislative rewrite (e.g. new electronic title is the official title record).

• 8 registration districts are now:

• one provincial district,

• one distributed work queue.

Page 8: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

Land Registry and Land Surveys Directory

TSX : ISV

• Official records are electronic.

• Title workers perform all functions electronically.

• Land Registry processing times averaged around 3 weeks, with some districts as high as 6 weeks prior to conversion to new system.

• Conversion of paper documents to electronic records took over 3 years.

• Bulk conversion and on-demand conversion queue.

• All active documents available online 24/7 through the web.

Page 9: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

LAND Project

TSX : ISV

• Change management implications significant for customers and ISC.

• Completely different business process to prepare and submit transactions.

• Roles of workers changed requiring different skillsets (e.g. keyboarding, writing, customer service).

• Front-end included downloadable PDF forms requiring data entry for title workers.

• Some impact of modernization on workforce.

• Workers deployed to other business functions such as title correction, customer service or other business lines.

Page 10: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

Online Submission

TSX : ISV

• In 2005, ISC launched a new web-enabled front-end entry system to submit Land Registry transactions online.

• Information is validated against Land Registry production database information prior to submission.

• As of December 31, 2013:

• 74.65% of Land Registry transactions are submitted online.

• In 2007, Saskatchewan experienced an economic boom that resulted in record volumes of Land Registry transactions and ISC was able to maintain its average turnaround time of 2 business days!

Page 11: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

Personal Property Registry

11

Page 12: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

Personal Property Registry

TSX : ISV

• In 2006, ISC launched a new online system including B2B interfaces.

• Identity management, billing and output functions were transferred to “common” services of Land Registry.

• Prior to modernization the Personal Property Registry was largely manual entry.

• Reduced staff by approximately 77% to maintain operations including support and testing for new B2B customers and system changes.

• Approximately 99% of registrations are now online.

• Approximately 41% B2B, 58% online and under 1% staff-assisted.

• Approximately 99% of searches online (under 1% staff assisted).

Page 13: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

Vital Statistics Registry

Page 14: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

Vital Statistics (private registry)

TSX : ISV

• Largely a consumer-based registry.

• ISC invested and improved user experience.

• Required revamp of regional offices due to volume of traffic (privacy concerns).

• Large impact on regional offices.

• Balancing customer service with back office processing.

Page 15: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

ISC Goes Public

Page 16: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

ISC Goes Public

TSX : ISV

• November 2012, the Government of Saskatchewan announces its intention to privatize ISC.

• May 2013, ISC becomes a private business corporation.

• 100% wholly-owned by Government of Saskatchewan.

• June 2013, Vital Statistics is transferred back to Government of Saskatchewan.

• Private registry.

• July 2013, Government of Saskatchewan sells 79% of shares in ISC through an Initial Public Offering (IPO) on Toronto Stock Exchange (TSX).

• ISC trades under symbol ISV on TSX.

Page 17: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

ISC Goes Public

TSX : ISV

• Considerable undertaking to transition to business corporation and publicly-traded company.

• 20 Year Master Service Agreement (MSA) with Government of Saskatchewan.

• ISC is granted the exclusive right to manage and operate public registries .

• Office of the Public Registry Administration (OPRA) established in Ministry of Justice & Attorney General.

• For ISC staff, operating the public registries is just “business as usual.”

Page 18: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

About ISC

TSX : ISV

• Saskatchewan’s Exclusive Provider of Registry Information Services.

• 20 Year Master Services Agreement with Government of Saskatchewan.

• Listed on the TSX on July 9, 2013.

• IPO: $14.00

• Closing Price as of May 2, 2014: $19.70

• Stock Symbol: ISV

• Head Office: Regina, Saskatchewan Canada.

• www.isc.ca

Page 19: Evolution of the Business Office - IACA · Evolution of the Business Office . Forward-Looking Statements TSX : ISV This presentation contains forward -looking information within the

Questions?

Kim Coppola Director, Business Development Information Services Corporation (ISC) [email protected]