2020 Annual Meeting of Shareholders May 7 th , 2020
Forward-Looking Statements This presentation contains certain forward-looking information to help you understand Equifax and its business environment. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future, including statements relating to future operating results, improvements in our IT and data security infrastructure, our strategy, our ability to mitigate or manage disruptions posed by COVID-19, the impact of COVID-19 and changes in worldwide and U.S. economic conditions, and similar statements about our business plans are forward-looking statements. We believe these forward-looking statements are reasonable as and when made. However, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in our 2019 Form 10-K, our Form 10-Q for the quarter ended March 31, 2020, and future SEC filings. As a result of such risks and uncertainties, we urge you not to place undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 2 PROPRIETARY |
Non-GAAP Disclosure Statement • This presentation contains certain non-GAAP financial measures, including adjusted EPS attributable to Equifax, adjusted EBITDA, adjusted EBITDA margin and adjusted revenue, which reflect adjustments for certain items that affect the comparability of our underlying operational performance. • These are important financial measures for Equifax but are not financial measures as defined by GAAP. These non-GAAP financial measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as an alternative measure of net income , EPS or revenue as determined in accordance with GAAP. • Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found under "Investor Relations/Financial Information/Non-GAAP Financial Measures" on our website at www.equifax.com. 3 PROPRIETARY |
Mark Begor CEO
2019 by the Numbers +5.6% 33.4% $3.53B CONSTANT DOLLAR ADJUSTED ADJUSTED REVENUE ADJUSTED REVENUE EBITDA MARGIN GROWTH $ 292M $ 5.62 $1.18B TRANSFORMATION ADJUSTED EPS INVESTMENT ADJUSTED EBITDA (CONTINUING OPS) 5 PROPRIETARY |
The New EFX New EFX Definition Definition A global data, analytics, and technology company A global data, analytics, and technology company What we are Purpose Purpose Helping people live their financial best Helping people live their financial best Why we exist Tagline Tagline Powering the World with Knowledge Powering the World with Knowledge The memorable slogan that sums up what we’re all about At Equifax, we believe knowledge drives progress. We blend unique data, analytics and technology At Equifax, we believe knowledge drives progress. We blend unique data, analytics and technology Position Position with a passion for serving customers globally, to create insights that power the decisions that with a passion for serving customers globally, to create insights that power the decisions that What we do move people forward. move people forward. Vision Vision To be the trusted global leader in data, advanced analytics, and technology that creates innovative To be the trusted global leader in data, advanced analytics, and technology that creates innovative solutions and insights that help customers drive growth and move people forward. solutions and insights that help customers drive growth and move people forward. What we want to achieve Imperatives Imperatives What we needto accomplish to meet CULTURE OF CULTURE OF INDUSTRY INDUSTRY our vision and live our purpose CLOUD CLOUD-NATIVE NATIVE MARKET MARKET- CONSUMER- CONSUMER EQUIFAX EQUIFAX GROWTH GROWTH CUSTOMER CUSTOMER LEADER IN LEADER IN TECHNOLOGY TECHNOLOGY LEADING D&A LEADING D&A FRIENDLY CRA FRIENDLY CRA TEAM TEAM CENTRICITY CENTRICITY SECURITY SECURITY Values Values Who we are 6 PROPRIETARY |
Broad Based Execution in 2019 USIS WS INTL GCS C$ 1 Revenue: +3% Adj. Revenue: +4% Revenue: +15% Revenue: -3% + Acquired PayNet (commercial credit + Grew TWN records to over 100M + Over 100 customer instances of Ignite + Launched myEquifax.com consumer data) across multiple regions portal + Significantly expanded TWN record + Executed new partnerships to expand contributors + Expanded positive data in AUS + Returned to growth in 2H19 unique data sets into consumer + Building foundation for International + Launched over 60 new products consented utility, bank transaction & Work Number rental data + Leveraged co-innovation partnerships with FICO and others to create new products Security Technology D&A + Strengthened cloud protection and + Continued our strategic move to the + Ignite available on AWS and GCP, 35+ detection controls cloud to enhance performance and Ignite Direct and 100+ Ignite 2019 returns Marketplace Customers + Expanded coverage of data protection and access management controls + Launched Ignite in the cloud for US, + Integrated Ignite, IC, AME, and AE for UK, LatAm, and Australia accelerated A2P + Obtained key security industry re- certifications + Deployed Data Fabric and migrated + Extending NDT – In use in 30+ significant assets customer models + Announced early adoption of NIST Privacy Framework + Began customer migrations to Cloud + Launched FICO Ignite Connected infrastructure Platform 7 PROPRIETARY | 1. Constant currency
A Strong, Diversified Portfolio of Businesses 2019 Business Mix 2019 Vertical Mix Resellers 2019 2019 Adjusted Adjusted EBITDA 6% Other Revenue Growth Margin (Constant $) 8% Healthcare 100% 1% (3%) 24.6% Global Consumer Solutions Financial 90% 24% 80% 3% 30.4% International Corporate 70% (Employers) 9% 60% Telco 15% 48.6% Government 50% 4% Workforce Solutions 7% 40% Commercial 3% Consumer 30% 6% Insurance Auto 20% 4% 44.6% USIS 2% 7% 10% Mortgage 0% 20% Retail 3% 8 PROPRIETARY |
Equifax Differentiated Data Assets Consumer Telco, Cable Employment Credit & Utility & Income Reliable, Fast, Accounts Verified, High-Quality Exclusive, Direct from Superior Employers Coverage Asset & Property & Consumer Single-Source Wealth Valuation Demographic Verifications Direct Multiple Descriptive Housing Measured Valuation Consumer Insurance, Deposits & Methodologies Segmentation IRS Transcripts, Investments and Identity Commercial Commercial Auto Credit Marketing MVR and Comprehensive, Comprehensive, Owner/Buyer High Quality & High Quality Propensity Timely Insights SMB Profiles 9 PROPRIETARY |
$1.25B Cloud Transformation Will Accelerate Revenue Growth and Reduce Costs and Capex Growth enablers Growth enablers Technology Cloud Cloud Product Product NPI NPI Focus on Focus on Delivery & Delivery & Global revenue Global revenue financial financial Transformation Innovation Innovation Velocity Velocity customers customers market reach market reach synergies synergies benefits benefits benefits Always -on Always on • Broader customer • Easier Security Security Revenue Revenue base interaction growth growth • Easier • More data • More Speed & Speed & from share, from share, consumption assets effective co- Latency Latency stability, stability, • Multi-data • Global data development new new Product Product views insights • Always-on • Test & learn • Global products products velocity velocity • New products • Faster platforms, • Data Single Data Single Data response to capabilities governance Fabric Fabric customers • Complete build-in • Blue / green prod catalog Product Product Tech costs Tech costs deploy globally portability portability -(10 (10-15)%, 15)%, Capex Capex Operating Operating -(25 (25-35%) 35%) scale scale 10 PROPRIETARY |
Strong Focus on Security Leadership Security Transformation New 24x7 Global Fusion Center Pillars – 4 C’s Pillars 4 C’s CULTURE CULTURE CONTROLS CONTROLS COMPLIANCE COMPLIANCE CUSTOMERS CUSTOMERS Capacity for ~120 employees: current mix of ~80% Security and ~20% Tech Co-Located Teams from cybersecurity, fraud, privacy, crisis management, network ops Total Security spend more more Part of a global team that staffs our 24x7 than 3 times higher than 3 times higher vs. pre- incident response capabilities. cybersecurity incident level Building renovation cost ~$7.3M, completed in July 2019 11 PROPRIETARY |
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