Information Services Group, Inc. · NASDAQ:III
Information Services — Investor Presentation (January 2022)
24 slides from Information Services's investor presentation, Jan 19, 2022
Slide 1: ISG Investor Presentation
ISG Investor Presentation JANUARY 19, 2022 ISG Confidential. © 2022 Information Services Group, Inc. All Rights Reserved. Proprietary and Confidential. No part of this document may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval devices
Slide 2: Forward-Looking Statement
Forward-Looking Statement This communication contains “forward-looking statements” which represent the current expectations and beliefs of management of ISG concerning future events and their potential effects. Statements contained herein including words such as “anticipate,” “believe,” “contemplate
Slide 3: ISG: Who We Are
ISG: Who We Are A leading global technology research and advisory firm (Nasdaq: III) founded as a start-up in 2006 Experts Go-To-Firm Revenue* Adj. EBITDA* Operational Improvement & Performance Technology Research Digital Transformation Digital Sourcing $275M $38M Research Subscription, Custom, Even
Slide 4: We Are In the Middle of a Journey
We Are In the Middle of a Journey 2017-2020 2021-2022 2023+ Go Digital Scale Digital Breakout Create scale, breadth, Scale Platforms Transform ISG build Recurring Digital and Technology to premier digital and Platforms Investments partner and scale ISG Confidential. © 2022 Information Services Group
Slide 5: Leading Research and Advisory Firm
Leading Research and Advisory Firm ISG SaaS Research Digital Platforms Digital Strategy & Solutions Technology Provider market ISG proprietary SaaS platforms analysis, benchmarking and #1 Sourcing Advisor in the deal pursuit advisory world with $18B TCV per year Enterprise Client Satisfaction 50%+ S
Slide 6: Over the Next 3 Years
Over the Next 3 Years High 1.5x Revenues Single-Digit Earnings Revenue Growth Growth Dividend/ Recurring Revenues $100M+ Capital Allocation Stock/ Debt/ M&A ISG Confidential. © 2022 Information Services Group, Inc. All Rights Reserved. 6
Slide 7: ISG Addressable Market
ISG Addressable Market $1Billion $100+ $100+ Trillion Billion Global Sourcing Services Industry* Industry More than 600 Service and Technology Providers including: USA-Based Europe-Based India-Based *Growing faster than GDP ISG Confidential. © 2022 Information Services Group, Inc. All Rights Reserve
Slide 8: Client Example: From Services to Solutions
Client Example: From Services to Solutions $370K 1. Services Requested 2. Technology Challenge 3. ISG Differentiators Office 365 Strategy ● Vertical industry expertise IT Benchmarking ● Excessive Costs ● Database, Transformation ● Lack of Flexibility, Agility Experience, All Things Digital ● Lack of
Slide 9: Serving Global Leaders Across 20 Industries
Serving Global Leaders Across 20 Industries Consumer Pharma/ Media & Energy Insurance Manufacturing Services Health Sciences Technology & Utilities Accelerated Digitization Digital is Creating Greater Technology Digitizing an Migration to High-speed Optimizing of the Value Chain Expectations for CPG
Slide 10: ISG: The Authoritative Industry Voice
ISG: The Authoritative Industry Voice ISG Recognition Prized by Industry Leaders The authoritative industry voice for global outsourcing market Held Each Quarter Done For 75 Consecutive Briefings Attended by Enterprise, Provider, Finance, Academia Core Data Based on ISG Contracts Database Branded as
Slide 11: We Simplified ISG, Leading to ISG NEXT
We Simplified ISG, Leading to ISG NEXT Technology Enterprise Modernization Agility & (XaaS) Innovation Our expert ISG Digital Contact Digital Center of the Cyber Platform & ISG Digital Future Security Offerings and ISG Enterprise teams develop solutions that Employee Cognitive & Collaboration & Anal
Slide 12: ISG iFlex Global Delivery Model
ISG iFlex™ Global Delivery Model Our ISG iFlex™ integrated delivery model allows us to rapidly deploy our global resources to solve any client challenge, regardless of geography or time zone Result: Increased Productivity, Speed and Profitability Enterprise Contact Agility & Center of the Innovation
Slide 13: ISG NEXT: A Game Changer
ISG NEXT: A Game Changer Extends our market leadership, enhances our growth opportunities, and drives significant value for stakeholders ⬤ Expect ISG NEXT to provide “a step-change” in financial performance for ISG – Target: EBITDA margins expand by 400 basis points over 2021-2022 vs full-year 2020
Slide 14: ISG Competitive Landscape
ISG Competitive Landscape No one competitor has the breadth of ISG offerings. #1 Competitor Benchmarking Consulting Audit Firms, Internal Procurement & Research Small Independents, Departments Gartner Country-specific ISG Confidential. © 2022 Information Services Group, Inc. All Rights Reserved. 14
Slide 15: The ISG Competitive Advantage
The ISG Competitive Advantage Proprietary Independence Global Data Assets Domain and Objectivity Reach and Market Expertise Intelligence Financial Entrepreneurial Strong and Growing Spirit Deep, Trusted Strength Yielding Relationships with Demonstrable ISG Brand New and More With our Clients M&A Exp
Slide 16: ISG Financials – Driving Double Digit Earnings
ISG Financials – Driving Double Digit Earnings Revenues* Adjusted EBITDA* Adjusted EPS $275 $0.44 $38 $248 $29 $0.28 $216 $20 $0.17 2016 Q3 2020 Q3 2021 2016 Q3 2020 Q3 2021 2016 Q3 2020 Q3 2021 LTM LTM LTM LTM LTM LTM *Note: values are in millions of dollars ISG Confidential. © 2022 Information Ser
Slide 17: ISG Capital Structure
ISG Capital Structure We will continue to use our free cash flow to de-leverage our balance sheet, return capital to shareholders and make acquisitions $55 * $76 * $21 * 49.0 * Million Million Million Million Debt Net Debt Common Shares Cash 2.1X 0.9X Outstanding * as of September 30, 2021 ISG Confi
Slide 18: Cashflow from Ops & Debt Balance
Cashflow from Ops & Debt Balance Cashflow from Operations Debt Balance $46 $44 $117 $99 $87 $20 $79 $76 $19 $11 2017 2018 2019 2020 Sept 2021 Dec-2017 Dec-2018 Dec-2019 Dec-2020 Q3 2021 LTM *Note: All values are in millions of dollars ISG Confidential. © 2022 Information Services Group, Inc. All Rig
Slide 19: Cash Balance - Generating Increasing Cashflow
Cash Balance - Generating Increasing Cashflow Cash Balance $55 $38 Sept 2020 Sept 2021 *Note: All values are in millions of dollars ISG Confidential. © 2022 Information Services Group, Inc. All Rights Reserved. 19
Slide 20: ISG Shares: +132% in 2021
ISG Shares: + 132% in 2021 ISG Confidential. © 2022 Information Services Group, Inc. All Rights Reserved. 20
Slide 21: Capital Allocation
Capital Allocation ISG’s capital allocation focus’ return to shareholders via dividends, share buybacks, debt reduction and bolt on M&A to generate growth and capabilities Recently Announced – Recurring Dividend In May, ISG initiated a quarterly dividend of $0.03/share per quarter and $0.12/share pe
Slide 22: ISG Investment Thesis
ISG Investment Thesis Management Team With Strong Track Record Blue Chip Board of Directors ● McKinsey, private equity, financial services, CIO ● Experts in operating global entities, sourcing and executing M&A and integration ● Backgrounds include Nielsen, IBM, HP, Gartner Growth Driven by Recurrin
Slide 23: isg-one.com
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and se
Slide 24: isg-one.com
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and se
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