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DST SYSTEMS, INC.
September 2016
2
Certain material presented in this presentation include forward-looking statements intended to qualify for the
safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-
looking statements include, but are not limited to, (i) all statements, other than statements of historical fact,
included in this presentation that address activities, events or developments that we expect or anticipate will or
may occur in the future or that depend on future events, or (ii) statements about our future business plans and
strategy and other statements that describe the Company’s outlook, objectives, plans, intentions or goals, and
any discussion of future operating or financial performance. Whenever used, words such as “may,” “will,”
“would,” “should,” “potential,” “strategy,” “anticipates,” “estimates,” “expects,” “project,” “predict,” “intends,”
“plans,” “believes,” “targets” and other terms of similar meaning are intended to identify such forward-looking
statements. Forward-looking statements are uncertain and to some extent unpredictable, and involve known and
unknown risks, uncertainties and other important factors that could cause actual results to differ materially from
those expressed or implied in, or reasonably inferred from, such forward-looking statements. Factors that could
cause results to differ materially from those anticipated include, but are not limited to, the risk factors and
cautionary statements included in the Company’s periodic and current reports (Forms 10-K, 10-Q and 8-K) filed
from time to time with the Securities and Exchange Commission. All such factors should be considered in
evaluating any forward-looking statements. The Company undertakes no obligation to update any forward-
looking statements in this presentation to reflect new information, future events or otherwise.
COPYRIGHT © 2016 BY DST SYSTEMS, INC. ALL RIGHTS RESERVED. OUR TRADEMARKS AND SERVICE MARKS AND THOSE
OF THIRD PARTIES USED IN THIS PRESENTATION ARE THE PROPERTY OF THEIR RESPECTIVE OWNERS.
FORWARD LOOKING STATEMENTS
3
COMPANY PROFILE
73%
27%
Financial Services
Healthcare Services
2015 Operating Revenue from continuing operations = $1,405.0 million
(Excludes out-of-pocket reimbursements)
• Leading provider of:
• Technology
• Strategic advisory
• Business processing solutions
• Complete focus on two growth industries:
• Financial
• Healthcare
• NYSE: DST
• Headquartered in Kansas City, MO
• Operates with ~11,000 employees
4
LONG HISTORY OF VALUE CREATION
1973:
Formed BFDS,
joint venture
with State
Street Bank
1989:
Acquired 50%
interest in
Argus Health
Systems
1992:
Formed IFDS,
UK, a joint
venture with
State Street
Bank
1995:
Began trading
on the New
York Stock
Exchange
2005:
Acquired DST
Health
Solutions
2008:
Acquired Blue
Door
Technologies
Formed DST
Retirement
Solutions
2009:
Acquired
remaining
stake of Argus
Health
Systems
2011:
Acquired
ALPS
Holdings
2012:
Steve Hooley
appointed CEO
Defined
contribution
participants
exceeded 5
million
2013:
Subaccounts
processed
exceeds 25
million
2015:
Acquired kasina, Red Rocks Capital
LLC and Wealth Management
Systems Inc
Completed the sale and leaseback of
Customer Communications’ North
America production facilities
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2016:
Acquired Kaufman
Rossin Fund Services LLC.
Completed the sale and leaseback of
Customer Communications’ Bristol, UK
production facilities
Sold Customer Communications North
America business
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LEADERSHIP POSITIONS IN HEALTH AND WEALTH
Financial Services Healthcare Services
Distribution
Solutions
Serve
45 of 50 largest asset
management firms
Exclusive distributor
of Sector SPDR ETFs
Medical
Solutions
Covered Lives:
23.2M
Pharmacy
Solutions
Pharmacy Claims
Paid in 2015:
494.4M
Asset
Management
ALPS AUM
$15.5B
Retirement
Solutions
TRAC® 6.4M
participants
Largest SaaS
Provider
Brokerage
Solutions
Subaccounting
30.4M accounts
Infrastructure Leverage
Data Centers | Communication Networks | Business Continuity | Disaster Recovery
Business Process Management
Applied Analytics
Compliance
Business Process Outsourcing
Traditional and
Alternatives
Investment
Servicing
TA2000® 64.2M
accounts
Fast/iFast 22.4M
accounts
ALPS AUA $170.5B
6
ATTRACTIVE BUSINESS MODEL
Long-Term Contracts
Deeply Embedded in Client Work Flow
Significant Switching Costs
Recurring RevenueSAAS
Strategic
Advisory
Applied
Analytics
Customer
Experience
Risk and
Compliance
Business
Process
Management
Full
Service
31
Years
Top 5
Financial
Services
Companies
18
Years
Top 5
Healthcare
Services
Companies
Average Length of Customer Relationships:
Significant Recurring Sources of Revenue:
7
CRITICAL DEMANDS OF THE FINANCIAL AND
HEALTHCARE INDUSTRIES
Complex and Changing
Regulations &
Compliance
Heightened Privacy
Sensitivities
Demand for Top-Tier
Security
Capacity/Scale
Requirements
Data Analytics Dependent Digital Transformation Increased Outsourcing of
Processing Services
Empowered Consumers
8
GROWTH STRATEGIES
Strengthen and
Expand Existing
Customer
Relationships
Leverage
Proprietary Insights
Develop New and
Innovative Products
and Services
Selectively Pursue
Strategic Acquisitions
9
• Asset Management
• $75 million seed fund commitment
• Brokerage Solutions
• Sub-accounting platform
• Distribution Solutions
• Marketshare platform
• Advisor segmentation
• DST SalesConnect™
• Retirement Solutions
• Retirement plan participant analytics
• Rollover services
• Wealth Management Solutions
• BlueDoor
• Open Door
• Pharmacy Solutions
• Government programs administration
• Pharmacy network solutions
• Specialty pharmacy
• Formulary and rebate management
• Healthcare Administration
• Revenue management
• Provider network administration
• Health plan compliance and program integrity
• Health Outcomes Optimization
• Quality incentive management (Star5)
• Population assessment, stratification and care gaps
• Disease/care management
• Predictive/prescriptive analytics
• Behaviorally based interventions
Financial Services Healthcare Services
KEY FOCUS AREAS FOR GROWTH
10
More than 200 years of cumulative industry experience | New leadership team with deep industry expertise
EXPERIENCED, PROVEN MANAGEMENT TEAM
Steve Hooley
Chief Executive
Officer and President
Named DST’s Chief
Executive Officer in 2012
Served as President and Chief
Executive Officer of Boston Financial
Data Services, Inc., a DST joint
venture
Joined BFDS in 2004 and DST in
2009
Gregg Givens
Chief Financial
Officer
Named DST CFO
in 2014
Served as senior manager at Price
Waterhouse for 14 years
Joined DST in 1996 and has been
significantly involved with DST’s M&A
activities, financing transactions, and
joint venture operations
Beth Sweetman
Head of
Human Capital
Appointed Senior
Vice President and
Chief Human Resources Officer
in 2013
In June 2013, assumed responsibility
for leading the entire DST Human
Resources organization, both
domestically and internationally
Maria Mann
Chief Information
Officer
Appointed Chief
Information Officer in
2016
Served as CTO, Managing Director
at JPMorgan Chase for 15 years
Vercie Lark
Head of Financial
Services
Appointed Head of
Financial Services
in 2016
Joined DST in 2010 as Chief
Information Officer
Ned Burke
Head of ALPS
Joined ALPS in 1991 as
National Sales Manager
and became President
in 2000
Simon Hudson-Lund
Head of Non-US
Business
Joined DST in
Feb. 2013 as Chief
Executive Officer of
DST International Holdings
Previously led Transfer Agency
Operations for IFDS, a DST joint
venture; joined IFDS in 2003
Jonathan Boehm
Head of Healthcare
Business
President and CEO of
DST Healthcare as
well as President and CEO of Argus
Health Systems
Joined DST in 1984
11
DST FINANCIAL DISCUSSION
12
FINANCIAL HIGHLIGHTS
Significant recurring revenues
Strong cash flows
Solid balance sheet
Robust revolving debt capacity
Monetization of assets
Focus on returning capital to shareholders
13
Non-GAAP Net Income from Continuing Operations
and EPS from Continuing Operations(1)Non-GAAP Operating Revenues
HISTORICAL FINANCIAL PERFORMANCE
$1,362
$1,446 $1,405
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
2013 2014 2015
$185.9
$201.1
$179.8
$4.22
$4.97 $4.93
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
$5.50
$6.00
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
$200.0
2013 2014 2015
(
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(
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E
P
S
Note: Please refer to Non-GAAP reconciliation slides for adjustment details. (1) Non-GAAP net income from continuing operations after non-controlling interest.
14
Non-GAAP Net Income from Continuing Operations
and EPS from Continuing Operations(1)Non-GAAP Operating Revenues
QUARTERLY HISTORICAL FINANCIAL PERFORMANCE
$340 $349
$354 $362 $361
$374
$50
$100
$150
$200
$250
$300
$350
$400
$450
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
$40.7
$42.2
$48.0 $48.9
$38.7
$47.6
$1.08
$1.14
$1.33
$1.40
$1.13
$1.42
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
(
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(
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E
P
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Note: Please refer to Non-GAAP reconciliation slides for adjustment details. (1) Non-GAAP net income from continuing operations after non-controlling interest.
15
(On a non-GAAP basis)
• Consolidated operating revenues increased
$45.9 million or 6.7% compared to 2015.
Foreign currency negatively impacted operating
revenue by $4.0 million
• Consolidated operating income increased $13.6
million or 11.9% vs. 2015
• Diluted EPS increased $0.33 or 14.9% from
2015
• Weighted average diluted shares outstanding
for 2016 decreased by 3.4 million shares or
9.2% from June 2015 to 33.6 million
Note: Please refer to Non-GAAP reconciliation slides for adjustment details.
FINANCIAL HIGHLIGHTS - YTD
Consolidated Non‐GAAP
Financial Results ‐
Continuing Operations 2016 2015 Change
Operating Revenues 735.2$ 689.3$ 6.7%
Operating Income 128.3$ 114.7$ 11.9%
Diluted EPS 2.55$ 2.22$ 14.9%
Segment Details ‐
Continuing Operations
Financial Services
Operating Revenues 547.3$ 523.5$ 4.5%
Operating Margin 17.0% 17.7%
Healthcare Services
Operating Revenues 208.2$ 184.0$ 13.2%
Operating Margin 17.8% 12.1%
Six months ended June 30,
16
(in millions) June 30,
2016 2015 2014 2013
Current Assets ‐ operating 365.9$ 344.1$ 378.8$ 298.5$
Client funds 350.6 533.4 399.6 366.5
Investments ‐ Available‐for‐sale securities 129.4 219.5 475.5 654.0
Investments ‐ Cost method and other investments 126.2 133.2 156.0 183.0
Unconsolidated affiliates (BFDS, IFDS, Real Estate) 323.9 312.2 297.8 287.3
Properties, net 239.5 256.7 240.7 276.6
Asset held for sale 272.8 297.5 401.7 396.6
Other non‐current assets 794.5 716.6 592.8 628.0
Total assets 2,602.8$ 2,813.2$ 2,942.9$ 3,090.5$
Debt 712.2$ 562.1$ 546.8$ 675.7$
Current liabilities ‐ operating 243.6 294.3 320.3 301.9
Client funds obligations 350.6 533.4 399.6 366.5
Liabilities held for sale 140.9 159.9 147.3 134.5
Other non‐current liabilities 187.9 202.4 292.5 428.1
Total equity 967.6 1,061.1 1,236.4 1,183.8
Total liabilities and equity 2,602.8$ 2,813.2$ 2,942.9$ 3,090.5$
Common shares outstanding 33.2 34.3 37.6 41.8
December 31,
CONDENSED BALANCE SHEET
17
MONETIZATION OF ASSETS
(1) All values shown represent pre-tax proceeds.
Q1 2016
Q2 2013
2014
$32.7 million
$431.5 million
$202.5 million
($190.3 million from the
sale of shares of State
Street Corporation)
$196.2 million
$145.9 million
(including $11.0 million
received from joint ventures
and $129.0 million from sale
leaseback)
$415.2 million
$210.5 million
($176.1 million from the
sale of shares of State
Street Corporation)
$58.8 million
2015
$59.8 million
$10.7 million
$70.5 million
Q2 2016
$10.2 million
$31.8 million
$21.1 million
(including $5.1 million
received from sale of non-
operating assets and $16.0
million from sale leaseback)
$102.3 million
$60.3 million
$20.9 million
YTD 2016
$21.1 million
(including $5.1 million
received from sale of non-
operating assets and $16.0
million from sale leaseback)
$0.5 millionSales
of marketable securities
Distributions from private
equity fund and sales of
other investments
Sale of real estate assets
Monetizations
18
OUTSTANDING DEBT
Balance sheet supports strategic initiatives
• As of June 30, 2016, the Company’s outstanding debt is
comprised of $332 million of fixed rate debt and $380
million of variable rate debt
• The Company’s debt leverage ratio was 1.76 as of June 30,
2016
• Revolver capacity up to $850 million sufficient to pursue
potential M&A initiatives, $640 million available as of June
30, 2016
• Current balance sheet affords the Company significant
flexibility to meet its goals of making strategic investments
in its business and returning capital to shareholders
PRUDENTLY MANAGING DEBT LEVELS
$676
$547 $562
$712
$0
$200
$400
$600
$800
2013 2014 2015 Q2 2016
(Millions)
19
Since 2010, DST has returned $1.8 billion of capital to shareholders
RETURN OF CAPITAL TO SHAREHOLDERS
Total: $447.6
million
DST spent $200
million to repurchase
2.2 million shares of
Common Stock
DST paid $47.6
million in dividends
($1.20 per share)
DST spent $200
million to repurchase
2.4 million shares
directly from the
Argyros group
2014
Total: $443.1
million
DST paid $43.1
million in dividends
($1.20 per share)
DST spent $400.0
million to repurchase
3.6 million shares of
Common Stock
2015
DST spent $75.0
million to repurchase
0.7 million shares of
Common Stock
Total: $86.1 million
DST paid $11.1
million in dividends
($0.33 per share)
Q1 2016
DST spent $75.0
million to repurchase
0.7 million shares of
Common Stock
Total: $86.0 million
DST paid $11.0
million in dividends
($0.33 per share)
Q2 2016
Total: $172.1
million
DST paid $22.1
million in dividends
($0.66 per share)
DST spent $150
million to repurchase
1.4 million shares of
Common Stock
YTD 2016
20
KEY TAKEAWAYS
Leadership position in industries served
Deep, longstanding customer relationships
Robust, scalable technology platform and infrastructure
Deep regulatory compliance expertise
Attractive business model with significant recurring and diversified revenues
Experienced management team with proven track record
21
APPENDIX – USE OF NON-GAAP
FINANCIAL INFORMATION
In addition to reporting operating revenue, operating income, pretax income, net income, net income attributable to DST Systems, Inc. (“DST
Earnings”) and earnings per share on a GAAP basis, DST has also made certain non-GAAP adjustments which are reconciled to the corresponding
GAAP measures below. In making these non-GAAP adjustments, the Company takes into account the impact of items that are not necessarily
ongoing in nature, that do not have a high level of predictability associated with them or that are non-operational in nature. Generally, these items
include net gains on dispositions of business units, net gains (losses) associated with securities and other investments, restructuring and impairment
costs and other similar items. Beginning in first quarter 2016, we have also included acquired intangible amortization. Management believes the
exclusion of these items provides a useful basis for evaluating underlying business unit performance, but should not be considered in isolation and is
not in accordance with, or a substitute for, evaluating business unit performance utilizing GAAP financial information. Management uses non-GAAP
measures in its budgeting and forecasting processes and to further analyze its financial trends and “operational run-rate,” as well as making financial
comparisons to prior periods presented on a similar basis. The Company believes that providing such adjusted results allows investors and other
users of DST's financial statements to better understand DST's comparative operating performance for the periods presented.
DST's management uses each of these non-GAAP financial measures in its own evaluation of the Company's performance, particularly when
comparing performance to past periods. DST's non-GAAP measures may differ from similar measures by other companies, even if similar terms are
used to identify such measures. Although DST's management believes non-GAAP measures are useful in evaluating the performance of its
business, DST acknowledges that items excluded from such measures may have a material impact on the Company's operating revenue, operating
income, pretax income, net income, DST earnings and earnings per share calculated in accordance with GAAP. Therefore, management typically
uses Non-GAAP measures in conjunction with GAAP results. These factors should be considered when evaluating DST's results.
The tables on the following pages reconcile the GAAP financial results to the corresponding non-GAAP financial results. Additional descriptions of
the non-GAAP adjustments can be found in DST’s Form 10-K filings.
22
APPENDIX:
QUARTERLY HISTORICAL NON-GAAP OPERATING INCOME
$10.5
$11.8
$14.8
$17.4 $17.6
$19.5
$5.0
$7.0
$9.0
$11.0
$13.0
$15.0
$17.0
$19.0
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
(
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Note: Please refer to Non-GAAP reconciliation slides for adjustment details.
Financial Services Healthcare Services
$48.0
$44.6
$51.3
$53.8
$42.3
$50.5
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
$55.0
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
23
APPENDIX:
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS - YTD Q2 2016
(in millions, except per share amounts) Operating Operating Pretax Net DST Diluted
Revenue Income Income (a) Income (b) Earnings (c) EPS
Reported GAAP results 735.2$ 97.6$ 115.2$ 73.0$ 73.9$ 2.18$
Adjusted to remove:
Restructuring charges ‐ 13.4 13.4 8.4 8.4 0.25
Amortization of intangible assets ‐ 11.3 11.3 7.1 7.1 0.21
Software impairment ‐ 6.0 6.0 3.7 3.7 0.11
Net gain on securities and other investments ‐ ‐ (11.5) (7.2) (8.1) (0.24)
Income tax items ‐ ‐ ‐ 1.3 1.3 0.04
Adjusted Non‐GAAP results 735.2$ 128.3$ 134.4$ 86.3$ 86.3$ 2.55$
(a) Pretax Income has been defined as "Income from continuing operations before income taxes and non‐controlling interest."
(b) Net Income has been defined as "Income from continuing operations before non‐controlling interest."
(c) DST Earnings has been defined as "Income from continuing operations attributable to DST Systems, Inc."
For the Six Months Ended June 30, 2016
24
APPENDIX:
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS - YTD Q2 2015
(in millions, except per share amounts) Operating Operating Pretax Net DST Diluted
Revenue Income Income (a) Income (b) Earnings (c) EPS
Reported GAAP results 689.3$ 108.9$ 299.9$ 188.6$ 188.6$ 5.06$
Adjusted to remove:
Amortization of intangible assets ‐ 8.8 8.8 5.6 5.6 0.15
Net gain on sale of real estate ‐ (3.0) (3.0) (1.8) (1.8) (0.05)
Net gain on securities and other investments ‐ ‐ (171.8) (107.2) (107.2) (2.88)
Net gain from unconsolidated affiliates ‐ ‐ (3.6) (2.3) (2.3) (0.06)
Adjusted Non‐GAAP results 689.3$ 114.7$ 130.3$ 82.9$ 82.9$ 2.22$
(a) Pretax Income has been defined as "Income from continuing operations before income taxes and non‐controlling interest."
(b) Net Income has been defined as "Income from continuing operations before non‐controlling interest."
(c) DST Earnings has been defined as "Income from continuing operations attributable to DST Systems, Inc."
For the Six Months Ended June 30, 2015
25
APPENDIX:
RECONCILIATION OF GAAP OPERATING INCOME TO NON-GAAP OPERATING
INCOME
(in millions) Financial Healthcare Investments / Consolidated
Services Services Other Total
Reported GAAP Operating Income 66.8$ 32.4$ (1.6)$ 97.6$
Adjusted to remove:
Restructuring charges 11.8 1.6 ‐ 13.4
Amortization of intangible assets 8.2 3.1 ‐ 11.3
Software impairment 6.0 ‐ ‐ 6.0
Adjusted Non‐GAAP Operating Income 92.8$ 37.1$ (1.6)$ 128.3$
Financial Healthcare Investments / Consolidated
Services Services Other Total
Reported GAAP Operating Income 87.0$ 19.1$ 2.8$ 108.9$
Adjusted to remove:
Amortization of intangible assets 5.6 3.2 ‐ 8.8
Software impairment ‐ ‐ (3.0) (3.0)
Adjusted Non‐GAAP Operating Income 92.6$ 22.3$ (0.2)$ 114.7$
For the Six Months Ended June 30, 2016
For the Six Months Ended June 30, 2015
26
APPENDIX:
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS-Q2 2016
(in millions, except per share amounts) Operating Operating Pretax Net DST Diluted
Revenue Income Income (a) Income (b) Earnings (c) EPS
Reported GAAP results 373.9$ 45.9$ 56.6$ 34.5$ 34.3$ 1.03$
Adjusted to remove:
Restructuring charges ‐ 11.1 11.1 6.9 6.9 0.20
Amortization of intangible assets ‐ 5.9 5.9 3.7 3.7 0.11
Software impairment ‐ 6.0 6.0 3.7 3.7 0.11
Net gain on securities and other investments ‐ ‐ (6.2) (3.9) (3.7) (0.11)
Income tax items ‐ ‐ ‐ 2.7 2.7 0.08
Adjusted Non‐GAAP results 373.9$ 68.9$ 73.4$ 47.6$ 47.6$ 1.42$
(a) Pretax Income has been defined as "Income from continuing operations before income taxes and non‐controlling interest."
(b) Net Income has been defined as "Income from continuing operations before non‐controlling interest."
(c) DST Earnings has been defined as "Income from continuing operations attributable to DST Systems, Inc."
For the Three Months Ended June 30, 2016
Financial Healthcare Investments / Consolidated
Services Services Other Total
Reported GAAP Operating Income 29.7$ 17.3$ (1.1)$ 45.9$
Adjusted to remove:
Restructuring charges 10.4 0.7 ‐ 11.1
Amortization of intangible assets 4.4 1.5 ‐ 5.9
Software impairment 6.0 ‐ ‐ 6.0
Adjusted Non‐GAAP Operating Income 50.5$ 19.5$ (1.1)$ 68.9$
For the Three Months Ended June 30, 2016
27
APPENDIX:
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS-Q1 2016
(in millions, except per share amounts) Operating Operating Pretax Net DST Diluted
Revenue Income Income (a) Income (b) Earnings (c) EPS
Reported GAAP results 361.3$ 51.7$ 58.6$ 38.5$ 39.6$ 1.16$
Adjusted to remove:
Restructuring charges ‐ 2.3 2.3 1.5 1.5 0.04
Amortization of intangible assets ‐ 5.4 5.4 3.4 3.4 0.10
Net gain on securities and other investments ‐ ‐ (5.3) (3.3) (4.4) (0.13)
Income tax items ‐ ‐ ‐ (1.4) (1.4) (0.04)
Adjusted Non‐GAAP results 361.3$ 59.4$ 61.0$ 38.7$ 38.7$ 1.13$
(a) Pretax Income has been defined as "Income from continuing operations before income taxes and non‐controlling interest."
(b) Net Income has been defined as "Income from continuing operations before non‐controlling interest."
(c) DST Earnings has been defined as "Income from continuing operations attributable to DST Systems, Inc."
For the Three Months Ended March 31, 2016
Financial Healthcare Investments / Consolidated
Services Services Other Total
Reported GAAP Operating Income 37.1$ 15.1$ (0.5)$ 51.7$
Adjusted to remove:
Restructuring charges 1.4 0.9 ‐ 2.3
Amortization of intangible assets 3.8 1.6 ‐ 5.4
Adjusted Non‐GAAP Operating Income 42.3$ 17.6$ (0.5)$ 59.4$
For the Three Months Ended March 31, 2016
28
APPENDIX:
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS-Q4 2015
(in millions, except per share amounts) Operating Operating Pretax Net DST Diluted
Revenue Income Income (a) Income (b) Earnings (c) EPS
Reported GAAP results 362.3$ 62.2$ 76.9$ 54.9$ 55.0$ 1.57$
Adjusted to remove:
Restructuring charges ‐ 3.4 3.4 2.1 2.1 0.06
Advisory and other transaction costs ‐ 1.2 1.2 0.7 0.7 0.02
Amortization of intangible assets ‐ 5.2 5.2 3.3 3.3 0.10
Net gain on sale of real estate ‐ (0.7) (0.7) (0.5) (0.5) (0.01)
Net gain on securities and other investments ‐ ‐ (12.6) (7.7) (7.8) (0.23)
Income tax items ‐ ‐ ‐ (3.9) (3.9) (0.11)
Adjusted Non‐GAAP results 362.3$ 71.3$ 73.4$ 48.9$ 48.9$ 1.40$
(a) Pretax Income has been defined as "Income from continuing operations before income taxes and non‐controlling interest."
(b) Net Income has been defined as "Income from continuing operations before non‐controlling interest."
(c) DST Earnings has been defined as "Income from continuing operations attributable to DST Systems, Inc."
For the Three Months Ended December 31, 2015
Financial Healthcare Investments / Consolidated
Services Services Other Total
Reported GAAP Operating Income 49.0$ 12.4$ 0.8$ 62.2$
Adjusted to remove:
Restructuring charges ‐ 3.4 ‐ 3.4
Advisory and other transaction costs 1.2 ‐ ‐ 1.2
Amortization of intangible assets 3.6 1.6 ‐ 5.2
Net gain on sale of real estate ‐ ‐ (0.7) (0.7)
Adjusted Non‐GAAP Operating Income 53.8$ 17.4$ 0.1$ 71.3$
For the Three Months Ended December 31, 2015
29
APPENDIX:
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS-Q3 2015
(in millions, except per share amounts) Operating Operating Pretax Net DST Diluted
Revenue Income Income (a) Income (b) Earnings (c) EPS
Reported GAAP results 353.4$ 61.6$ 82.0$ 66.1$ 66.1$ 1.83$
Adjusted to remove:
Amortization of intangible assets ‐ 4.8 4.8 3.1 3.1 0.09
Net gain on securities and other investments ‐ ‐ (14.9) (9.3) (9.3) (0.26)
Income tax items ‐ ‐ ‐ (11.9) (11.9) (0.33)
Adjusted Non‐GAAP results 353.4$ 66.4$ 71.9$ 48.0$ 48.0$ 1.33$
(a) Pretax Income has been defined as "Income from continuing operations before income taxes and non‐controlling interest."
(b) Net Income has been defined as "Income from continuing operations before non‐controlling interest."
(c) DST Earnings has been defined as "Income from continuing operations attributable to DST Systems, Inc."
For the Three Months Ended September 30, 2015
Financial Healthcare Investments / Consolidated
Services Services Other Total
Reported GAAP Operating Income 48.1$ 13.2$ 0.3$ 61.6$
Adjusted to remove:
Amortization of intangible assets 3.2 1.6 ‐ 4.8
Adjusted Non‐GAAP Operating Income 51.3$ 14.8$ 0.3$ 66.4$
For the Three Months Ended September 30, 2015
30
APPENDIX:
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS-Q2 2015
(in millions, except per share amounts) Operating Operating Pretax Net DST Diluted
Revenue Income Income (a) Income (b) Earnings (c) EPS
Reported GAAP results 349.3$ 52.1$ 151.2$ 95.5$ 95.5$ 2.58$
Adjusted to remove:
Amortization of intangible assets ‐ 4.4 4.4 2.8 2.8 0.08
Net gain on securities and other investments ‐ ‐ (89.9) (56.1) (56.1) (1.52)
Adjusted Non‐GAAP results 349.3$ 56.5$ 65.7$ 42.2$ 42.2$ 1.14$
(a) Pretax Income has been defined as "Income from continuing operations before income taxes and non‐controlling interest."
(b) Net Income has been defined as "Income from continuing operations before non‐controlling interest."
(c) DST Earnings has been defined as "Income from continuing operations attributable to DST Systems, Inc."
For the Three Months Ended June 30, 2015
Financial Healthcare Investments / Consolidated
Services Services Other Total
Reported GAAP Operating Income 41.8$ 10.2$ 0.1$ 52.1$
Adjusted to remove:
Amortization of intangible assets 2.8 1.6 ‐ 4.4
Adjusted Non‐GAAP Operating Income 44.6$ 11.8$ 0.1$ 56.5$
For the Three Months Ended June 30, 2015
31
APPENDIX:
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS-Q1 2015
(in millions, except per share amounts) Operating Operating Pretax Net DST Diluted
Revenue Income Income (a) Income (b) Earnings (c) EPS
Reported GAAP results 340.0$ 56.8$ 148.7$ 93.1$ 93.1$ 2.48$
Adjusted to remove:
Amortization of intangible assets ‐ 4.4 4.4 2.8 2.8 0.07
Net gain on sale of real estate ‐ (3.0) (3.0) (1.8) (1.8) (0.05)
Net gain on securities and other investments ‐ ‐ (81.9) (51.1) (51.1) (1.36)
Net gain from unconsolidated affiliates ‐ ‐ (3.6) (2.3) (2.3) (0.06)
Adjusted Non‐GAAP results 340.0$ 58.2$ 64.6$ 40.7$ 40.7$ 1.08$
(a) Pretax Income has been defined as "Income from continuing operations before income taxes and non‐controlling interest."
(b) Net Income has been defined as "Income from continuing operations before non‐controlling interest."
(c) DST Earnings has been defined as "Income from continuing operations attributable to DST Systems, Inc."
For the Three Months Ended March 31, 2015
Financial Healthcare Investments / Consolidated
Services Services Other Total
Reported GAAP Operating Income 45.2$ 8.9$ 2.7$ 56.8$
Adjusted to remove:
Amortization of intangible assets 2.8 1.6 ‐ 4.4
Net gain on sale of real estate ‐ ‐ (3.0) (3.0)
Adjusted Non‐GAAP Operating Income 48.0$ 10.5$ (0.3)$ 58.2$
For the Three Months Ended March 31, 2015
32
APPENDIX:
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS-2015
(in millions, except per share amounts) Operating Operating Pretax Net DST Diluted
Revenue Income Income (a) Income (b) Earnings (c) EPS
Reported GAAP results 1,405.0$ 232.7$ 458.8$ 309.6$ 309.7$ 8.50$
Adjusted to remove:
Restructuring charges ‐ 3.4 3.4 2.1 2.1 0.06
Advisory and other transaction costs ‐ 1.2 1.2 0.7 0.7 0.02
Amortization of intangible assets ‐ 18.8 18.8 12.0 12.0 0.32
Net gain on sale of real estate ‐ (3.7) (3.7) (2.3) (2.3) (0.06)
Net gain on securities and other investments ‐ ‐ (199.3) (124.2) (124.3) (3.42)
Net gain from unconsolidated affiliates ‐ ‐ (3.6) (2.3) (2.3) (0.06)
Income tax items ‐ ‐ ‐ (15.8) (15.8) (0.43)
Adjusted Non‐GAAP results 1,405.0$ 252.4$ 275.6$ 179.8$ 179.8$ 4.93$
(a) Pretax Income has been defined as "Income from continuing operations before income taxes and non‐controlling interest."
(b) Net Income has been defined as "Income from continuing operations before non‐controlling interest."
(c) DST Earnings has been defined as "Income from continuing operations attributable to DST Systems, Inc."
For the Year Ended 2015
33
APPENDIX:
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS-2014
(in millions, except per share amounts) Operating Operating Pretax Net Diluted
Revenue Income Income (a) Income (b) EPS
Reported GAAP results 1,445.5$ 262.7$ 744.7$ 560.8$ 13.86$
Adjusted to remove:
Restructuring charges ‐ 13.0 13.0 8.2 0.20
Advisory and other transaction costs ‐ 5.6 5.6 3.5 0.09
Amortization of intangible assets ‐ 18.0 18.0 11.6 0.28
Loss accrual reversal ‐ (4.0) (4.0) (4.7) (0.12)
Charitable contribution ‐ 0.5 0.4 0.2 0.01
Gain on contract to repurchase common stock ‐ ‐ (18.1) (18.1) (0.45)
Net gain on sale of business ‐ ‐ (100.5) (107.2) (2.64)
Net gain on securities and other investments ‐ ‐ (343.5) (212.7) (5.26)
Net gain from unconsolidated affiliates ‐ ‐ (5.7) (3.6) (0.09)
Income tax items ‐ ‐ ‐ (36.9) (0.91)
Adjusted Non‐GAAP results 1,445.5$ 295.8$ 309.9$ 201.1$ 4.97$
(a) Pretax Income has been defined as "Income from continuing operations before income taxes and non‐controlling interest."
(b) Net Income has been defined as "Income from continuing operations before non‐controlling interest."
For the Year Ended 2014
34
APPENDIX:
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS-2013
(in millions, except per share amounts) Operating Operating Pretax Net Diluted
Revenue Income Income (a) Income (b) EPS
Reported GAAP results 1,368.2$ 271.8$ 503.1$ 324.7$ 7.37$
Adjusted to remove:
Employee termination expenses ‐ 3.9 3.9 2.7 0.06
Contract termination payment (6.0) (6.0) (6.0) (3.7) (0.08)
Amortization of intangible assets ‐ 18.6 18.6 11.5 0.25
Loss accrual ‐ 2.5 2.5 2.5 0.06
Net loss on real estate assets ‐ 3.2 3.2 1.9 0.04
Net gain on securities and other investments ‐ ‐ (222.8) (138.1) (3.14)
Net gain from unconsolidated affiliates ‐ ‐ (7.4) (4.6) (0.10)
Income tax items ‐ ‐ ‐ (11.0) (0.24)
Adjusted Non‐GAAP results 1,362.2$ 294.0$ 295.1$ 185.9$ 4.22$
(a) Pretax Income has been defined as "Income from continuing operations before income taxes and non‐controlling interest."
(b) Net Income has been defined as "Income from continuing operations before non‐controlling interest."
For the Year Ended 2013