Equifax, Inc. · NYSE:EFX
Equifax — Barclays Credit Bureau Day 2023
13 slides from Equifax's conference presentation, Sep 6, 2023
Slide 1: Barclays Credit Bureau Day
Barclays Credit Bureau Day September 6, 2023
Slide 2: EFX executing against EFX2025 strategic priorities in tougher mortgage market
EFX executing against EFX2025 strategic priorities in tougher mortgage market EFX Next Gear… differentiated cloud native technology platform… faster data delivery, accelerating NPI, always on capabilities STRATEGIC PRIORITIES Deliver spending reductions… $210M in 2023 / $250M 2024… with additional sp
Slide 3: New EFX Long Term Framework
New EFX Long Term Framework Long Term Financial Framework New EFX Organic revenue growth 7-10% New LTFF Revenue Growth M&A contribution 1-2% EWS USIS INTL Total growth 8-12% 13-15% 6-8% 7-9% EBITDA% margin improvement +50 bps Cash EPS growth 12-16% Dividend yield ~1% Annual shareholder return 13-18%
Slide 4: BVS closed in August… Adding $160M run-rate revenue in $2B addressable market
BVS closed in August… Adding $160M run-rate revenue in $2B addressable market…EFX to enhance BVS products Estimated Brazilian TAM for BVS’s Product EFX will accelerate BVS’ Technology, Product, Offerings and Data Transformation ✓ EFX talent and processes ✓ Move to EFX Cloud, add ~$700M Credit Bureau
Slide 5: Expanding TAM and Broadening Revenue Base
Expanding TAM and Broadening Revenue Base EFX TAM Non-Mortgage $47B Growth Levers Brazil US – Empl. Svcs /HR US - Govt ✓ EWS expansion into Talent, US - Talent Government, I9 / Onboarding ✓ USIS Identity & Fraud, ID&F Commercial accelerating ✓ New INTL markets driving growth in ID&F Traditional ✓ Ac
Slide 6: The EFX Cloud… the next chapter
The EFX Cloud… the next chapter PROPRIETARY | 6
Slide 7: 14% Vitality Index a record and well above 10% LT Framework
14% Vitality Index a record and well above 10% LT Framework… 30+ NPIs in Quarter, 65 YTD Vitality Index1 and NPIs 2Q Product Roll-Outs ● Mortgage Insurance Attributes (USIS) - Accelerates Mortgage Insurers process of generating mortgage insurance quotes from Mortgage offline to real-time through the u
Slide 8: EFX driving leading AI capabilities leveraging EFXCloud and EFX unique proprietary data
EFX driving leading AI capabilities leveraging EFXCloud and EFX unique proprietary data US Proprietary Data Assets 161M Active Records, Investing in EFX NDT 631M Total Records EFX AI Advantages AI Capabilities ✓ Industry leading NDT AI ✓ Leveraging Google Vertex AI 32 billion digital interactions wi
Slide 9: New EFX… Accelerating free cash flow…Capex shifting from Cloud to NPIs and innovation
New EFX… Accelerating free cash flow…Capex shifting from Cloud to NPIs and innovation Capex / Revenue Free cash flow after dividends as % adj net income Significant Capacity To: ✓ Bolt-on M&A to deliver 1-2% growth ✓ Grow dividends in line with earnings ~10% 85% ✓ Re-initiate share repurchase ~7% 72% ✓
Slide 10: CONFIDENTIAL & PROPRIETARY | 10
Copyright © 2022 Equifax Inc. All Rights Reserved. Equifax is a registered trademark of Equifax Inc. CONFIDENTIAL & PROPRIETARY | 10
Slide 11: Appendix
Appendix PROPRIETARY || 11 CONFIDENTIAL & PROPRIETARY 11
Slide 12: EFX more resilient and well positioned in a slower macro environment
EFX more resilient and well positioned in a slower macro environment EFX / EWS Revenue Growth Recession Resilient $5.1B, +6% CC Recession Growth Levers 1. EWS growth… records, EFX penetration, product, Talent, Government, UC, Employer 2. Cloud benefits… cost savings and $1.8B, +5% share gains 3. NPI
Slide 13: 2Q23 Mortgage Inquiries Down 33%
2Q23 Mortgage Inquiries Down 33% Further increases in mortgage interest rates during 3Q23 Mortgage Market Credit Inquiries YoY Growth 2015-2019 Average Level of Inquiries Number of Inquiries 2015 2016 2017 2018 2019 2020 2021 2022 Full year 15% 12% -6% -8% 6.5% 47% (-7.5%) (-37%) 2023 Mortgage Mortg