Transunion · NYSE:TRU
Transunion — Q4 2017 Earnings Presentation
20 slides from Transunion's earnings presentation, Feb 13, 2018
Slide 1: Fourth Quarter 2017 Earnings Call
Fourth Quarter 2017 Earnings Call Jim Peck, President and CEO Todd Cello, Chief Financial Officer FEBRUARY 13, 2018
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TransUnion’s management and are subject to significant risks and uncertain
Slide 3: Fourth Quarter and Full Year 2017 Highlights
Fourth Quarter and Full Year 2017 Highlights • TransUnion completed another year of strong performance – Double-digit increases in Revenue, Adjusted EBITDA and Adjusted Diluted EPS for both the fourth quarter and the full year – Adjusted EBITDA margin expanded by ~135 bps in 2017 • Growth continues
Slide 4: CreditVision and CreditVision Link Have Delivered Significant Growth and Are Well Positioned for More
CreditVision and CreditVision Link Have Delivered Significant Growth and Are Well Positioned for More • Combined these two products grew ~130% in the U.S. in 2017 • Currently sold in all lending end markets with considerable growth opportunities – Almost two-thirds of combined business is outside of
Slide 5: FactorTrust Acquisition Offers Entry Point into Attractive New Market and Provides Valuable Data
FactorTrust Acquisition Offers Entry Point into Attractive New Market and Provides Valuable Data FactorTrust serves as a credit bureau for short-term lending • This industry has consolidated around larger, more sophisticated players and FactorTrust is very well positioned – Strong management team an
Slide 6: Strong International Positions Continue to Deliver Double-Digit Growth
Strong International Positions Continue to Deliver Double-Digit Growth • Developed markets are growing as we aggressively “lift and shift” new products, verticals and capabilities • Emerging markets benefit from generally strong underlying market growth coupled with our “lift and shift” strategy © 2
Slide 7: Healthcare Vertical is Growing Rapidly and is Positioned for Strong Future Performance
Healthcare Vertical is Growing Rapidly and is Positioned for Strong Future Performance • Strong position on the front-end of revenue cycle management – Offerings more accurately verify patient identity, insurance eligibility, benefits and authorization requirements and payment estimates • Larger, fa
Slide 8: TransUnion is Committed to Enabling and Empowering Consumers
TransUnion is Committed to Enabling and Empowering Consumers A free product that allows consumers to see and monitor their TransUnion credit file and to lock and unlock their TransUnion credit file A flexible, customizable platform that allows us to meet our customers’ requirements © 2018 TransUnion
Slide 9: Information Security is a Top Priority
Information Security is a Top Priority • Established, strong team with highly relevant experienced and seasoned leader – Direct access to Audit Committee and Board of Directors – Quarterly updates to senior leadership team • High degree of internal awareness where every employee is part of informati
Slide 10: 2018 Market Expectations
2018 Market Expectations U.S. lending markets should continue to be solid Personal Finance/FinTech: Should continue to be strong Auto: Expected to be strong driven by used car sales Mortgage: Better than 2017 but expected to be flat to down slightly Credit Cards: Anticipate continued modest softness
Slide 11: Financial Review and Guidance
v v Financial Review and Guidance
Slide 12: Consolidated Fourth Quarter 2017 Financial Highlights
Consolidated Fourth Quarter 2017 Financial Highlights YOY change Revenue +16% Constant Currency Revenue +16% Organic Revenue +13% Adjusted EBITDA +16% Constant Currency Adjusted EBITDA +15% Adjusted Diluted EPS +13% • Other items – Cost of Services +20% due to higher product costs related to revenue
Slide 13: Segment Fourth Quarter 2017 Financial Highlights
Segment Fourth Quarter 2017 Financial Highlights YOY Change YOY Constant Currency change YOY Organic change USIS Revenue +16% NM +12% Online Data Services +18% NM +10% Marketing Services +14% NM NM Decision Services +15% NM NM Adj. Operating Income +11% NM NM International Revenue +12% +9% NM Emergi
Slide 14: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights • Cash and Cash Equivalents on 12/31/17 of $116, down from $182 on 12/31/16 – Used cash on hand and some short-term borrowings to fund the acquisitions of eBureau and FactorTrust • Total Debt essentially flat • 2017 Cash from Operations $468 million, up $78 mil
Slide 15: Capital Allocation Strategy
Capital Allocation Strategy • Top priority continues to be fully funding all good organic and inorganic investments to drive long-term top and bottom line performance • Board of Directors has decided to implement a dividend with a 10-15% payout target over time • For 2018, we expect to pay a $0.30/s
Slide 16: Full Year 2018 Guidance
Full Year 2018 Guidance • Revenue: $2.12 to $2.14 billion, +9-10% Constant Currency; includes 2 points of M&A and 50 bps of one-time incremental monitoring • Adjusted EBITDA: $817 to $832 million, +9-11% – Adjusted EBITDA margin: ~39%, up slightly from 2017 • Adjusted Diluted EPS: $2.26 to $2.31/sha
Slide 17: Full Year 2018 Segment Expectations
Full Year 2018 Segment Expectations USIS Should deliver another strong year with high-single-digit organic revenue growth, driven by our successful innovation and the strength of our vertical market positions International Constant currency revenue is expected to also increase low-double-digits as w
Slide 18: First Quarter 2018 Guidance
First Quarter 2018 Guidance • Revenue: $503 to $508 million, +10-11% Constant Currency; includes 3 points of M&A and 1 point from one-time incremental monitoring • Adjusted EBITDA: $187 to $190 million, +9-11% • Adjusted Diluted EPS: $0.51 to $0.52/share, +22-24%; excluding estimated benefit of tax
Slide 19: Final Comments
v v Final Comments
Slide 20: Questions & Answers
Questions & Answers