Slide 1: Third Quarter 2024 Earnings
Third Quarter 2024 Earnings Chris Cartwright, President and CEO Todd Cello, CFO October 23, 2024
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements Non-GAAP Financial Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of This investor presentation includes certain non-GAAP 1995. These statements are based on the current beliefs and expec
Slide 3: Agenda
1 Third quarter 2024 highlights 2 Transformation program progress 3 Third quarter 2024 financial results Fourth quarter and full-year 2024 4 guidance @ Copyright 2024 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 3
Slide 4: Third quarter 2024 highlights
Third quarter 2024 highlights Exceeded Organic constant U.S. Markets International Prepaid $25M in guidance on currency revenue revenue +12% led revenue grew debt for a year-to- Revenue, Adjusted +12%, by mortgage, double digits* for date total of EBITDA and +8% excluding insurance and 14th straight
Slide 5: Strong execution against our transformation program
Strong execution against our transformation program Reduce costs and accelerate Optimize operating model Modernize technology innovation and growth • Expand Global Capability • Consolidate onto state-of-the • Achieve ~$200M annualized Center network art solutions enablement free cash flow savings pl
Slide 6: Completed role relocations to Global Capability Centers, driving material cost savings in 2024
Optimize Operating Model Completed role relocations to Global Capability Centers (GCCs), driving material cost savings in 2024 Global Capability Centers Headcount Milestones ~5,600 • Local workforce reductions substantially ~4,700 Costa Rica complete in early 2024 Africa • New positions filled in th
Slide 7: Delivered modernized capabilities and product innovations powered by OneTru
Modernize Technology Delivered modernized capabilities and product innovations powered by OneTru FactorTrust Went live with new capabilities including triggers, Innovation Labs, new Short-term lending bureau attributes and enhanced pre-screens TruValidate Launched for general availability and signed
Slide 8: Focus on customer migrations and product innovation over course of 2025
Modernize Technology Focus on customer migrations and product innovation over course of 2025; add new markets for migration to OneTru Launch end-to-end capabilities on OneTru and migrate customers over U.S. Credit course of 2025 Migrate all data and analytics work onto OneTru; launch TruIQ Analytics
Slide 9: Transformation program accelerating innovation and delivering savings faster than expected
Transformation program accelerating innovation and delivering savings faster than expected Investments Expected Benefits • $355-375M of one-time expenses to • ~ $200M free cash flow benefit by 2026 capture benefits - $120-140M of operating expense savings - $78M of one-time expenses in 2023 - Capex
Slide 10: Consolidated third quarter 2024 highlights
Q3 2024 Results Consolidated third quarter 2024 highlights Reported Y/Y ($M) Change • Organic constant currency revenue growth of +12%, Revenue $1,085 12% or +8% excluding mortgage • Strong underlying margin Organic Constant Currency Revenue 12% expansion excluding impact of lower margin breach Adju
Slide 11: U.S. Markets third quarter 2024 highlights
Q3 2024 Results U.S. Markets third quarter 2024 highlights Organic • U.S. Financial Services Reported Reported ($M) Y/Y FX Impact Constant +17%, or +4% excluding Currency mortgage − Card & Banking +5% Revenue $848 12% – 12% − Consumer Lending +2% − Auto +1% Financial Services 367 17% – 17% − Mortgag
Slide 12: International third quarter 2024 highlights
Q3 2024 Results International third quarter 2024 highlights Organic • India (+23%) driven by Reported Reported ($M) Y/Y FX Impact Constant consumer, commercial, fraud Currency marketing and direct-to- Revenue $242 11% (1)% 12% consumer Canada 39 7% (2)% 9% • U.K. (+4%) gradual volume Latin America 3
Slide 13: Excess cash targeted for debt prepayment
Balance Sheet Excess cash targeted for debt prepayment Leverage Ratio1 4.3x • Roughly $5.2 billion of debt 4.1x and $643 million cash at 3.9x 3.8x 3.6x 3.4x 3.5x 3.5x quarter-end 3.1x 3.1x 3.1x ~3x <3.0x • $25 million debt prepayment in Q3; $105 million year-to- date • Average effective cost of debt
Slide 14: Fourth quarter 2024 guidance
Financial Guidance Fourth quarter 2024 guidance Reported Revenue: $1,014M to $1,034M +6% to +8% • Expect stable lending trends M&A contribution: No impact and modest benefit to FX contribution: Insignificant mortgage volumes from interest rate cuts Organic Constant Currency Revenue: +6% to +8% • Q4
Slide 15: Full-year 2024 revenue guidance
Financial Guidance Full-year 2024 revenue guidance Reported Revenue: $4.161B to $4.181B ~+9% M&A contribution: No impact FX contribution: Insignificant Organic Constant Currency Revenue: ~+9% • Guidance raise driven by Q3 outperformance and ongoing Mortgage impact: ~4pt. benefit business momentum Or
Slide 16: Full-year 2024 Adjusted EBITDA, Adjusted Diluted EPS and other guidance
Financial Guidance Full-year 2024 Adjusted EBITDA, Adjusted Diluted EPS and other guidance Adjusted EBITDA: $1.488B to $1.503B +11% to +12% FX contribution: Insignificant Adjusted EBITDA margin: 35.8% to 36.0% • Anticipate using excess cash Adjusted EBITDA margin bps change: +70bps to +90bps for deb
Slide 17: Exceeded Q3 guidance and raising 2024 guidance
Exceeded Q3 Achieved key Raising 2024 guidance for revenue, milestones in guidance, now expect Adjusted EBITDA and transformation, 9% revenue growth Adjusted Diluted EPS driving material and 15% to 17% savings and Adjusted Diluted EPS accelerating growth innovation Note: For additional information,
Slide 18: Q&A
Q&A @ Copyright 2024 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 18
Slide 19: Appendices and Non-GAAP Reconciliations
Appendices and Non-GAAP Reconciliations @ Copyright 2024 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 19
Slide 20: U.S. Markets revenue composition (FY 2023)
U.S. Markets revenue composition (FY 2023) Financial Services: ~$1.2B Emerging Verticals: ~$1.2B Consumer Interactive: ~$0.6B Collections 6% Public Sector Auto 5% 20% Tenant & Employment Card & Insurance Screening Direct Banking 7% 25% 33% 35% Media 14% Mortgage Indirect 22% Tech, Retail & E- 67% Te
Slide 21: Debt profile and 2024F interest expense bridge
Debt profile and 2024F interest expense bridge Debt Profile (09/30/24) 2024F Interest Expense Bridge Notional Expiry Rate ($B) ~($12M) Term Loan Tranche Term Loan A-4 1.3 Jun’29 SOFR + 1.50% ~($9M) $267M Term Loan B-5 0.6 Nov’26 SOFR + CSA + 1.75% ~($1M) Term Loan B-7 1.9 Dec’28 SOFR + 2.00% Term Lo
Slide 22: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA and Adjusted EBITDA Margin @ Copyright 2024 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 22
Slide 23: Adjusted Net Income and Adjusted Diluted EPS
Adjusted Net Income and Adjusted Diluted EPS @ Copyright 2024 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 23
Slide 24: Adjusted Effective Tax Rate
Adjusted Effective Tax Rate @ Copyright 2024 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 24
Slide 25: Leverage Ratio
Leverage Ratio @ Copyright 2024 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 25
Slide 26: Non-GAAP Adjustment Footnotes
Non-GAAP Adjustment Footnotes As a result of displaying amounts in millions, rounding differences may exist in the tables and footnotes. 1. Consisted of amortization of intangible assets from our 2012 change-in-control transaction and amortization of intangible assets established in business acquisi
Slide 27: Non-GAAP Adjustment Footnotes
Non-GAAP Adjustment Footnotes 5. Operating model optimization consisted of the following adjustments: 6. Net other consisted of the following adjustments: 7. Consolidated Adjusted EBITDA margin is calculated by dividing Consolidated Adjusted EBITDA by total revenue. 8. Total adjustments for income t
Slide 28: Adjusted EBITDA and Adjusted EPS Guidance
Adjusted EBITDA and Adjusted EPS Guidance As a result of displaying amounts in millions, rounding differences may exist in the table. 1. These adjustments include the same adjustments we make to our Adjusted EBITDA and Adjusted Net Income as discussed in the Non-GAAP Financial Measures section of ou