Gb Group Plc · LSE:GBG
Gb — GBG — FY2021 Earnings Presentation
36 slides from Gb's earnings presentation, June 2021
Slide 1: Investor Presentation: Full Year Results to 31st March 2021
Investor Presentation Full Year Results to 31st March 2021 Chris Clark Dave Wilson David Ward CEO CFO & COO Incoming CFO Investor Presentation June 2021
Slide 2: GBG Vision and Purpose; FY21 Highlights
2 GBG Vision FY21 Highlights and Purpose Record team member and customer engagement scores To build trust in a digital world; ultimately to Good constant currency organic revenue create a world where everyone can transact growth of12% in a unique environment online with confidence Strengthened globa
Slide 3: FY21 Update
3 FY21 Update Location Identity Fraud • 27% of GBG, growing at 10%, • 59% of GBG, growing at 28%, • 12% of GBG, declined by 27%, license 62% transactional 95% license 74% • Good growth driven predominately • Exceptional US growth helped by US • Tough comparatives and new business by commerce in core
Slide 4: Market & Customer Drivers
4 Market & Customer Drivers Consumers expect Continuing growth in Build trust in a digital world. A world where simple and safe e-commerce, particularly everyone can transact online with confidence online experiences on mobile We help our customers grow faster by adding new customers and managing ex
Slide 5: Looking ahead
5 Looking ahead A good start to the new financial year, with some pandemic-related drivers continuing into Q1 Our strategy is to continue to invest in building innovative solutions which can scale and where we can achieve competitive differentiation We remain vigilant to the longer-term impact of th
Slide 6: How We've Performed
6 How We’ve Performed Investor Presentation June 2021
Slide 7: Group income statement
7 Group income statement Points to note 2021 2020 12% constant currency organic growth Year to 31 March 2021 £m £m Growth Change in business mix has lowered the Gross Profit % Revenue 217.7 199.1 +9% Lower opex due to COVID cash conservation measures taken Cost of sales (65.1) (54.9) and delaying ad
Slide 8: Segment performance
8 Segment performance Growth Constant currency organic growth Organic FY21 growth at Revenue Total constant Operating £m % of Total growth¹ currency margin % 2021 2021 Year ended 31 March £m £m Growth Location 59.7 27% 10% 10% 33% Group revenue 217.7 199.1 9% Identity 128.1 59% 25% 28% 37% Acquired
Slide 9: Revenue analysis per sector
9 Revenue analysis per sector “14% COVID challenged sectors” Includes sectors with small % of revenue most impacted by COVID – including sporting associations, employment agencies, and charities Sports betting has been COVID challenged in Europe, offset by good growth in US sports betting Financial
Slide 10: Revenue analysis per geography
10 Revenue analysis per geography FY21 FY20 Increase £m % of Rev £m % of Rev £m % USA 79.0 36% 52.4 26% 26.6 51% UK 77.3 36% 87.8 44% (10.5) -12% ANZ 23.6 11% 21.5 11% 2.1 10% EU 25.0 11% 20.8 10% 4.2 20% APAC 8.1 4% 11.9 6% (3.8) -32% Other 4.7 2% 4.7 3% (0.0) 0% Investor 217.7 100% 199.1 100% 18.6
Slide 11: Cash flow statement
11 Cash flow statement 120% (2020: 95%) Adjusted EBITDA cash conversion ratio 2021 2020 (excl. paid exceptional items) Year ended 31 March £m £m Variance Loan repayments of £62.5m made during FY21 – now fully Adjusted EBITDA 61.4 51.7 9.7 repaid Working capital 12.6 (2.1) 14.7 Loan facility for M&A
Slide 12: Cash flow and near-term approach to capital allocation
12 Cash flow and near-term approach to capital allocation Our current capital allocation Strong cash flow approach continues GBG took action to conserve cash in the early phases of Priority for capital remains funding the numerous organic COVID which has contributed to the higher-than normal growth
Slide 13: Managing the CFO transition
13 Managing the CFO transition David Ward was appointed as GBG’s incoming CFO in May 2021 having previously spent 10 years at AVEVA as CFO and more recently Finance Director & Company Secretary Extensive operational and M&A experience in global, growth- focused software companies David qualified as
Slide 14: Summary
14 Summary Record team member and customers engagement scores Strong growth in unique environment Strengthened global team Continue to enhance our strategic focus with acquisitions and divestments Innovative product and technology launches Our business is diversified in terms of customer concentrati
Slide 15: Outlook
15 Outlook Q1 has started well whilst the effect of COVID on the business continues to unfold For businesses, the changes in the last year have sustained consequences, with accelerated digitalisation driving more transactions online We are seeing different levels of impact depending on the customer
Slide 16: Q&A
16 Q&A Investor Presentation June 2021
Slide 17: Appendices
17 Appendices Investor Presentation June 2021
Slide 18: Disclaimer
18 Disclaimer Restricted distribution Forward-looking statements This presentation is not for release, publication or distribution, in This document contains certain forward-looking statements, whole or in part, directly or indirectly, in, into or from any including statements regarding GBG’s jurisd
Slide 19: ESG
19 ESG Establishing trust between businesses and their customers; working and acting responsibly; empowering, prioritising and protecting our people; creating broader societal value and protecting the environment Governance and ethics Data privacy and IT security Equality and diversity Employee enga
Slide 20: Board of directors
20 Board of directors David A Rasche Liz Catchpole Chairman Non-Executive Director Appointed to Board in September 2010 Appointed to the Board in September 2017 Co-founder of SSP – one of the largest Non-Executive Director and Chair of the Audit Committee at Investec specialist insurance software ho
Slide 21: Board of directors continued
21 Board of directors continued Nick Brown David Wilson Group Managing Director CFO & COO (to June 21) Appointed to the Board in April 2017, Nick Joined in March 2009 as Finance Director has been a member of GBG’s Executive Over 35 years international and operational Team since joining the business
Slide 22: Business Model
22 Business Model Global data access Location Identity Fraud Proprietary Software/Algorithms Routes to market Self serve | Face to face | Channel Target geographies : UK, Europe, SE Asia, China, B2C customers AUS & NZ, North America Investor Presentation June 2021
Slide 23: Summary Segments
23 Summary Segments New Segment Name Location Identity Fraud %FY21 revenues 27% 59% 12% Instinct, Predator, Orchestration, Platforms Capture + ID3global, IDology, GreenID GBG Investigate • Application fraud • ID Verification • ID fraud • Address validation • Credit risk management • Goods Lost in Tr
Slide 24: Competitive differentiators & barriers to entry
24 Competitive differentiators & barriers to entry Our differentiated capabilities and strong market position have created a barrier to entry Location Identity Fraud Breadth of data globally Proven Solution with reliable local Best Global Address Data Product Depth of data in core markets language a
Slide 25: Acquisitions and Investments
25 Acquisitions and Investments 13 acquisitions and one investment in the last 10 years Proven shareholder value creation model - each acquisition’s strategy and integration is treated differently Financing via cash, debt and equity Equity raised for IDology, PCA Predict, IDscan, DecTech and Capscan
Slide 26: Our Corporate Vision, Objective, Strategy (VOS)
26 Our Corporate Vision, Objective, Strategy (VOS) Clearly defined and in place across the business Get, Keep, Grow Innovation Micro-services APIs Info Sec Best & Most Engaged Reputation Investor Presentation June 2021
Slide 27: Largest Shareholders as at 1 June 2021
27 Investor June 2021 Presentation O ct op u Ae s In go ve Ab n s er As tme de se n en t M ts 6.4% St Ca gt an pi UK Li da ta on l G 6.0% rd tr In ro us tS v es up t m 5.5% AX us A ta Ka b e Fr ina ou nts am bl te e rM li n In gt ve gt on st In m ve en st Bl a ts m ck en R t M oc Sw an k 4.0%4.0%3.9
Slide 28: 9 Year growth track record
28 9 Year growth track record Revenue (£m) 9 year CAGR = 23.8% Adjusted operating profit (£m)1 9 year CAGR = 35.7% 250 60.0 50.0 57.9 200 217.7 199.1 40.0 47.9 150 143.5 30.0 100 119.7 32.0 20.0 26.3 87.5 50 73.4 10.0 57.3 17.0 36.3 41.8 10.8 13.4 5.5 7.2 0 - YE Mar YE Mar YE Mar YE Mar YE Mar YE Ma
Slide 29: Historic Revenue by Segment
29 Historic Revenue by Segment Full Year FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Revenue £m Location 14.4 15.3 17.6 22.5 25.2 41.9 47.9 51.5 59.7 6 Identity 12.4 15.1 19.2 24.8 33.5 43.91 58.22 105.44 128.1 Fraud 6.2 7.2 14.5 17.5 21.3 25.9 29.1 35.5 26.5 Other 3.3 4.2 6.0 8.6 7.5 8.0 8.3 6.7 3
Slide 30: Historic Revenue Growth by Segment
30 Historic Revenue Growth by Segment Full Year FY21 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Revenue Growth Org CC Location 6% 15% 27% 12% 66% 14% 7% 10% 10% Identity 22% 27% 29% 35% 31% 33% 81% 25% 28% Fraud 17% 100% 21% 21% 21% 13% 22% (25%) (27%) Other 23% 42% 44% (12%) 8% 2% (18%) (49%) (2%) Tot
Slide 31: Historic % of Total Revenue by Segment
31 Historic % of Total Revenue by Segment Full Year Revenue Split FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Location 40% 37% 31% 31% 29% 35% 33% 26% 27% Identity 34% 36% 34% 34% 38% 37% 41% 53% 59% Fraud 17% 17% 25% 24% 24% 22% 20% 18% 12% Other 9% 10% 10% 11% 9% 6% 6% 3% 2% Total 100% 100% 100%
Slide 32: Historic Operating Profit by Segment
32 Historic Operating Profit by Segment Full Year Operating Profit £m FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Location 4.4 4.6 5.9 6.1 7.7 13.8 16.6 14.6 19.5 Identity 1.3 1.6 2.8 4.5 5.6 9.4 15.2 33.6 47.7 Fraud 1.4 1.8 3.8 5.9 7.3 6.6 9.0 13.4 5.3 Other (1.6) (0.8) (1.7) (3.1) (3.6) (3.5) (8.
Slide 33: Group Balance Sheet
33 Group Balance Sheet 2021 2020 Varianc As at 31 March £m £m e Strong balance sheet and 6.9 9.4 (2.5) financing ability Tangible assets Intangible assets 380.0 414.5 (34.5) Deferred tax assets 7.7 6.3 1.4 Net Cash/Debt 2021 2020 Variance Analysis £m £m Non-current assets 394.6 430.2 (35.6) Inventor
Slide 34: Modelling considerations for FY22 – Foreign Exchange
34 Modelling considerations for FY22 – Foreign Exchange Currency % of group FY21 average FY22 rate FY22 range of rates (vs. GBP) revenue FY21 rate Internal US Dollar 36% 1.31 1.34 ~ 1.50 1.40 Australian Dollar 15% 1.82 1.71 ~ 1.91 1.80 Investor Presentation June 2021
Slide 35: Modelling Considerations for FY22 - Tax Rate
35 Modelling Considerations for FY22 - Tax Rate UK USA Australia Other 2 Group 1 After the deduction of amortisation on acquired intangibles 2 Includes Malaysia (24%), China % of Profit Before Tax1 34% 28% 34% 4% 100% (25%), New Zealand (28%) 3 Higher due to level of non-deductible Statutory Tax Rat
Slide 36: Contact
Contact Want to know more about our business? Sometimes there’s no substitute for a conversation. Please get in touch. Contact details below Dave Wilson David Ward CFO & COO Incoming CFO Until 30 June 2021 From 1 July 2021 +44 (0) 7712555864 +44 (0) 7787890960 Dave.wilson@gbgplc.com David.ward@gbgpl