Transunion · NYSE:TRU

Transunion — Deutsche Bank Leveraged Finance Conference 2013

27 slides from Transunion's conference presentation, Oct 1, 2013

  1. Slide 1: Deutsche Bank Leveraged Finance Conference

    Exhibit 99.1 October 1, 2013 Deutsche Bank Leveraged Finance Conference S. Allen Hamood Chief Financial Officer

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements This presentation contains forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. Any statements made in this presentation that are not statements of historical fact, including statements about our beliefs and expectations, are f

  3. Slide 3: Agenda

    Agenda Enterprise Overview Strategic Overview Segment Performance Strategic Advantages Investment Merits 3 ©2013 TransUnion Corp All Rights Reserved

  4. Slide 4: Enterprise Overview

    Enterprise Overview • TransUnion enables its customers to make TTM (1) Reported Revenue: $1,167mm timely and informed risk and credit decisions by delivering comprehensive data ($ millions) and analytical tools – Diverse data assets – credit, contact, Interactive criminal, insurance, healthcare and

  5. Slide 5: Business Process Flow

    Enterprise Overview Business Process Flow Data Sources Data Sources Strategic Public Thousands of data sources Customers Government Partners Records Majority of data provided at little or no cost TransUnion Proprietary Technology Proprietary Technology 2 billion updates processed in the US monthly M

  6. Slide 6: Solid Historical Performance over the Previous Four Years

    Enterprise Overview Solid Historical Performance over the Previous Four Years ($ in millions) Pro Forma Revenue (1) Adjusted EBITDA (1) 1,143 386 +7% +9% 1,048 353 327 971 941 300 33.8% 33.7% 33.7% 31.9% 2009 2010 2011 2012 2009 2010 2011 2012 Margin Unlevered Free Cash Flow (2) Net Debt / Adjusted

  7. Slide 7: Agenda

    Agenda Enterprise Overview Strategic Overview Segment Performance Strategic Advantages Investment Merits 7 ©2013 TransUnion Corp All Rights Reserved

  8. Slide 8: New Strategic Plan Will Drive Long Term Growth

    Strategic Overview New Strategic Plan Will Drive Long Term Growth To help organizations optimize their risk-based decisions and enable consumers Mission to understand and manage their personal information Become a superior global risk information solutions provider that delivers Objective sustained,

  9. Slide 9: Investments will Reduce Near-Term Earnings and Fuel Long-Term Growth

    Strategic Overview Investments will Reduce Near-Term Earnings and Fuel Long- Term Growth Key Initiatives • Invest in new product development and innovation across existing business segments and new markets – USIS: Diversifying and differentiating our data and analytics capabilities Financial Service

  10. Slide 10: Investments will Reduce Near-Term Earnings and Fuel Long-Term Growth

    Strategic Overview Investments will Reduce Near-Term Earnings and Fuel Long- Term Growth Key Initiatives • Upgrade technology platform Increased investment in technology platform that will enable growth, promote innovation and provide a competitive advantage • Realign executive team – New executives

  11. Slide 11: Agenda

    Agenda Enterprise Overview Strategic Overview Segment Performance Strategic Advantages Investment Merits 11 ©2013 TransUnion Corp All Rights Reserved

  12. Slide 12: Solid 1H Top-line Offset by Investment in LT Growth Initiatives

    Segment Performance Solid 1H Top-line Offset by Investment in LT Growth Initiatives ($ in millions) Reported Revenue +3% 361 372 FX impact (6.4)% +3% +16% 114 117 103 89 USIS International Interactive Adjusted Operating Income excluding D&A -4% -14% +23% (1) USIS International Interactive 1H 2012 1H

  13. Slide 13: U.S. Information Services

    Segment Performance U.S. Information Services Service Lines Reported Revenue ($ in millions) • Real-time credit reports & scores Online Data delivered to businesses primarily Services for underwriting new accounts 736 +5% 726 Credit • Products that help businesses Marketing acquire new customers, cr

  14. Slide 14: International

    Segment Performance International Competitive Strengths Reported Revenue ($ in millions) • Facilitates the development and implementation of credit infrastructures around the globe +10% 234 237 • Extremely well-positioned in developed and 216 emerging markets 196 • Leverages the Company’s key compet

  15. Slide 15: Interactive

    Segment Performance Interactive Competitive Strengths Reported Revenue ($ in millions) • Empower consumers with the tools, resources, and education to better understand and 194 manage their credit +13% 180 – Direct-to-consumer business 148 • Primarily marketed to consumers through 127 125 TransUnion

  16. Slide 16: Agenda

    Agenda Enterprise Overview Strategic Overview Segment Performance Strategic Advantages Investment Merits 16 ©2013 TransUnion Corp All Rights Reserved

  17. Slide 17: Strategic Advantages

    Strategic Advantages Global Leader with Sustainable Competitive Advantage Strong Geographic Diversification with Emerging Market Exposure Well-Diversified Customer Base with High Switching Costs Resilient Business Model with Strong and Stable Free Cash Flows 17 ©2013 TransUnion Corp All Rights Reser

  18. Slide 18: Global Leader with Sustainable Competitive Advantage

    Strategic Advantages Global Leader with Sustainable Competitive Advantage • One of only three global credit reporting agencies • High barriers to entry – Unique data assets with unmatched breadth and depth – Unique skills and capabilities – Rigorous regulatory structure • Deeply embedded software wi

  19. Slide 19: Strong Geographic Diversification & Emerging Market Exposure

    Strategic Advantages Strong Geographic Diversification & Emerging Market Exposure Strong Geographic Diversification Emerging Market Exposure • #1 position with bureau and/or collections in South Africa, Botswana, Namibia, Swaziland, Africa Zimbabwe, Mozambique, Tanzania, Kenya, Uganda, Zambia, Malaw

  20. Slide 20: Well-Diversified Customer Base with High Switching Costs

    Strategic Advantages Well-Diversified Customer Base with High Switching Costs Long-Standing • Have >10 years with each of top 10 global financial services customers Customer Relationships • Deep integration with customer core operating systems – high cost of switching Low Customer • Top 10 customers

  21. Slide 21: Resilient Business Model with Strong and Stable Free Cash Flows

    Strategic Advantages Resilient Business Model with Strong and Stable Free Cash Flows • High-margin, low capital intensity business with stable cash flows – Visible and recurring revenue – Highly leveragable assets – Proven ability to implement effective and sustainable cost cutting initiatives – Hig

  22. Slide 22: Agenda

    Agenda Enterprise Overview Strategic Overview Segment Performance Strategic Advantages Investment Merits 22 ©2013 TransUnion Corp All Rights Reserved

  23. Slide 23: Investment Merits

    Investment Merits • TransUnion is a global leader in credit information and information management services with an attractive business model • Strong global presence with highly differentiated information services and capabilities • Industry leading analytical tools and robust technology platform •

  24. Slide 24: Appendix

    TransUnion Appendix

  25. Slide 25: Historical Financial Reconciliation

    Non-GAAP Reconciliations Historical Financial Reconciliation ($ in millions) 2009 2010 2011 2012 Consolidated Revenue (as Reported) $ 925.0 $ 957.0 $ 1,024.0 $ 1,140.0 Reconciliation of Revenue to Proforma Revenue (1) Adjustments $ 16.0 $ 14.4 $ 23.7 $ 2.9 Pro Forma Revenue $ 941.0 $ 971.4 $ 1,047.7

  26. Slide 26: Historical Financial Reconciliation

    Non-GAAP Reconciliations Historical Financial Reconciliation ($ in millions) 2009 2010 2011 2012 Revenue (as Reported) $941.1 $956.5 $1,024.0 $1,140.0 Reconciliation of Operating Income to Adjusted Operating Income: Operating Income $203.6 $216.1 $252.7 $141.0 Adjustments (2) $17.5 $6.3 $90.7 Adjust

  27. Slide 27: Historical Financial Reconciliation

    Non-GAAP Reconciliations Historical Financial Reconciliation (1) Pro Forma adjustments for FHS acquisition in October 2011, DataBusiness acquisition in August 2010, Crivo acquisition in December 2011, CRB acquisition in May 2012 and Purchase Accounting adjustments to deferred revenue due to GSA tran

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