INVESTOR RELATIONS August 2017 Confidential and Proprietary
Forward Looking Statements As usual, we will make statements during the presentation which are forward looking. Our 10Ks, 10Qs and other SEC documents outline the risks associated with these statements and we encourage you to review them. We also incorporate non-GAAP financial measures in this presentation. A reconciliation of those measures to the most directly comparable GAAP measure is available on our website at www.equifax.com in the Investor Center. You can also reach the same information by clicking on the link included for those sections which discuss these non-GAAP measures. Confidential and Proprietary 2 August, 2017
Enduring Business Fundamentals Support Long Term Growth Demand for information solutions Supply of information solutions is growing as decision-making is expanding as technology becomes more knowledge facilitates access to more types intensive AND the benefits of more and larger volumes of data for real accurate decisions deliver above time decisions at an increasingly average ROI for the customer lower cost Competition for customers is more intense Different ways to apply or combine existing data Consumers are more selective in era of New sources of data become available greater transparency (transaction data, social data, Markets evolving toward one-to-one demographic data, etc.) interaction across multiple channels Information solutions – positioning Equifax as an insights company – represent a long term, sustainable growth opportunity End market growth through greater share of wallet New data sources broaden applications and increase value of installed solutions Becoming more embedded in clients’ operations Penetrating new customer segments: auto, employers Confidential and Proprietary 3 August, 2017
Our Vision Addresses the New Environment To be the global leader in information solutions that creates unparalleled insights to solve customer challenges. Confidential and Proprietary 4 August, 2017
Dramatically Stronger Insights Through a Vast Array of Direct, Verified Data 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 Confidential and Proprietary 5 August, 2017
Real Time Integration of Data from Multiple Sources & State-of-the-Art Analytics Drives Unique Insights Big Data Varied new data constantly gathered from Wide range of data, analytics and insights diverse sources and at large volumes VARIABLES & METHODS Population-based analysis Strong delivery platform to suit customer needs SOLUTION DELIVERY Strongest models `` `` with a 360° view of a consumer ANALYTIC DIMENSIONS SEGMENT Dynamic analytics* ZIP+4 INDIVIDUAL Customer/consumer data Unique customer data integrated into models * Data, attributes, models and algorithms updated continuously Confidential and Proprietary 6 August, 2017
Our Business Model is Robust and Resilient Data Analytics Technology Customer Solutions + + = Customized High Value Decisioning Broad-based and Value-added Software Integrating Solutions Unique Data Assets Analytical Insights Data and Insights Credit Scores & Models Optimization Banks Income Bankruptcy Waterfalling Fin. Institutions Employment Delinquency Segmentation Mortgage Cos. Wealth Prepayment Workflow Telcos Management Property Event Risk Auto Flexible Rules- Telco/Utility Fraud Risk Healthcare based Engines Commercial Fused Scores Insurance Debt Mgmt. SaaS Government We have developed critical competencies that will continue to have great leverage and opportunity. Confidential and Proprietary 7 August, 2017
Broadening Our Global Presence in Important Growth Markets UNITED KINGDOM CANADA Consumer #2 Consumer #1 RUSSIA Commercial #3 Commercial #2 (50% interest) Debt Mgmt. #1 Consumer #1 UNITED STATES Consumer #1 Commercial #3 MEXICO IBERIA Spain Consumer #1 Debt Mgmt. SaaS #1 Portugal Consumer #1 INDIA Other LATAM (49% interest) Peru #1 Active Start-up BRAZIL Uruguay #1 (15% interest) El Salvador #1 Commercial #2 Honduras #1 Consumer #2 Ecuador #1 Costa Rica #1 AUSTRALIA #1 ARGENTINA #1 Paraguay #1 NEW ZEALAND #1 CHILE #1 Confidential and Proprietary 8 August, 2017
A Strong Portfolio of Singularly Focused Businesses 2016 Business Mix 2016 Vertical Mix Resellers 2016 2016 Revenue 5% Adjusted EBITDA Growth Other Healthcare Margin (Constant $) 3% 4% 100% 90% International 62% 28.3% Financial Corporate 26% 80% (Employers) 70% Global Consumer 8% 18% 30.3% Government Solutions 60% 5% Workforce Insurance 50% 21% 48.2% Solutions 2% Telco 40% 5% Auto 30% 8% Com’l 20% USIS 7% 50.2% 3% Consumer 10% Retail 11% 3% Mortgage 0% 18% Confidential and Proprietary 9 August, 2017
Numerous Sources of Competitive Advantage Developed Over Time AUS/NZ Asia 2a MARKET LatAm EXPANSION Europe Canada US 3 rd Party 1 UNIQUE Employm’t Telco & ID & DATA Credit Wealth Property Utility & Income Fraud ASSETS 3 LINKAGE & CONFIGURABLE SCORES DELIVERY INSIGHTS ANALYTICS Mortgage, Auto, Communications, Commercial, 2b VERTICALS & Insurance, Employer, Consumer, Government USE CASES (Domains) Credit, Marketing Svcs, ID & Fraud, Debt Mgmt Value Based Talent NPI LEAN EGI Channel IT M&A Pricing 4 EXECUTION LEVERS Confidential and Proprietary 10 August, 2017
Equifax Strategy Drives Attractive, Multi-year Growth, Cash Flow & Profitability Multi-year Multi-year Organic Adjusted EBITDA Multi-year Outlook 2 Growth 2 Margin Trend USIS 5-7% Total Organic Growth 6-8% Low 50s Workforce Solutions 9-11% M&A 1-2% Low 50s Global Consumer Total Company Growth 7-10% 5-8% Mid 30s Solutions International 8-10% Mid 30s Adjusted EBITDA Margin 36% - 40% Corporate Expenses Mid single digits Adjusted EPS Growth 11% - 14% Total Organic 25% - 35% 6-8% 36% - 40% Dividends Growth of Net Income M&A 1-2% Total Return to 12% - 16% Shareholders 1 Total Company 7-10% Growth 1 Adjusted EPS growth plus dividend yield 2 Constant Currency Basis Strong execution on strategic initiatives and M&A will drive high single to low double digit revenue growth and mid-teen returns to our shareholders. Confidential and Proprietary 11 August, 2017
Corporate Imperatives Continue to Underpin the Execution of Our Strategy Invest in Deliver Develop Innovate Serve as a talent to drive consistently unparalleled for market trusted steward our strategy strong profitable analytical leadership in and advocate and foster a growth and insights key domains for our customers culture of shareholder leveraging and verticals and consumers innovation returns Equifax unique data Confidential and Proprietary 12 August, 2017
Q&A Confidential and Proprietary Confidential and Proprietary 13 August, 2017
APPENDIX Confidential and Proprietary Confidential and Proprietary 14 August, 2017
We Are a Leader in Unique Data Assets Worldwide 820M Consumers 91M Businesses 278M Employee Files 5.75B Trade Accounts 201M Public Records Unique to Equifax Confidential and Proprietary 15 August, 2017
US Information Solutions (USIS) Strengthen our foundation of assets and capabilities while investing in solutions and adjacencies that accelerate sustainable growth in existing and new markets 2016 Revenue Mix Focus Areas Healthcare, Other, 1% Gov’t , 3% 0% Insurance, STRENGTHEN & BUILD EMERGING 3% EXTEND CORE BUSINESSES Speed Time to Market Expand Anti-Money Laundering Solutions Execute Trended Data Retail, 3% Deploy Debt Mgmt Deliver CFN Financial, Auto, 14% Broaden Marketing (commercial database) 28% Services Solutions Expand & Mature Auto Streamline On-Boarding Enhance Customer Experience Leverage trended data and employment & income verification to Telco, 8% further penetrate the mortgage market Mortgage, 29% Com’l , POSITION FOR FUTURE 7% Gain Momentum in Mobile Innovation Digital Authentication Solution Consumer, 5% Confidential and Proprietary 16 August, 2017
Recommend
More recommend
