Slide 1: Results presentation
Results presentation For the year ended 31 March 2024
Slide 2: The team
FY24 RESULTS The team Dev Dhiman David Ward CEO CFO FY24 Results presentation – June 2024 2
Slide 3: Introductory remarks
Introductory remarks Dev Dhiman, CEO Introductory remarks Financial review First impressions Q&A
Slide 4: Agenda
Agenda Introductory remarks Dev Dhiman Financial review and outlook David Ward First impressions and current focus areas Dev Dhiman Q&A Both FY24 Results presentation – June 2024 4
Slide 5: Financial review and outlook
Financial review and outlook David Ward, CFO Introductory remarks Financial review & outlook First impressions Q&A
Slide 6: Successfully executed our FY24 financial plan
Successfully executed our FY24 financial plan • Excellent progress on simplification and cost savings • As expected, growth accelerated in the final quarter Revenue Net revenue retention (NRR) Annualised cost savings Adjusted operating profit Net debt £277.3m 98.1% £10m £61.2m (£80.9)m +2.7% Constan
Slide 7: Summary income statement
Summary income statement FY24 FY23 • 2.7% constant currency revenue growth £m £m Growth with 2H24 growth of 3.5% Reported revenue 277.3 278.8 (0.5)% • Gross profit margin improved in 2H24 to Gross profit 194.5 197.8 (1.7)% 71.0% - aligned with the prior year Gross profit margin % 70.1% 71.0% • Focus
Slide 8: Exceptional and normalising items
Exceptional and normalising items FY24 FY23 £m £m Normalising items Adjusted operating profit 61.2 59.8 • Amortisation of acquired intangibles – decreased due to intangibles becoming Amortisation of acquired intangibles (39.4) (42.8) fully amortised during the year Share-based payment charges (3.5)
Slide 9: Segmental performance
Segmental performance Helping organisations reach their customers Helping organisations trust their customers Location Identity Fraud FY24 revenue FY24 revenue FY24 revenue £81.1m 29% of group £156.0m 56% of group £40.2m 15% of group Constant currency (CCY) growth of 7.3% CCY decline of 0.7% in line
Slide 10: Repeatable revenue increasing and NRR improving
Repeatable revenue increasing and NRR improving 300 £278.8m £277.3m 2.7% growth £273.8m £17.6m £14.5m £24.7m 250 £278.8m FX +4.6% £277.3m Revenue (£m) 200 £114.8m £103.8m £103.4m £270.1m NRR -3.1% 150 ~95% 98.1% New business repeatable wins revenue 100 £134.3m £157.4m £159.4m 50 FY23 FY23 FY24 0 Rep
Slide 11: Diversified across sectors and geographies
Diversified across sectors and geographies Revenue by sector Revenue by geography 40% 40% FY23 FY24 38% 38% FY23 FY24 37% 35% 35% 33% 30% 30% 30% 29% 25% 25% 21% 20% 20% 20% 19% 18% 15% 15% 12% 12% 11% 11% 10% 10% 10% 10% 8% 7% 5% 5% 4% 4% 4% 3% 3% 5% 2% 1% 0% 0% Financial Retail Gaming Tech. Prof.
Slide 12: Simplification and efficiency
Simplification and efficiency £10m reduction in annualised opex run-rate Focus areas: Adjusted operating expenses Operational efficiency In-year • Headcount: Reduced by 8% since March’23 £8.8m lower • Refined management structures / Strong management of 145 £141.2m underperformance / Scrutiny of rep
Slide 13: Strong cash generation
Strong cash generation £m £2.6m £61.2m £(4.9)m £54.8m 90.6% Cash conversion £(4.1)m Other (FY23: 67.3%) Tax payments Cash impact of exceptionals related to our cost-efficiency Interest initiatives payments £35.2m £(19.6)m 1.27x Debt leverage (FY23: 1.68x) FY24 FY23 FY22 Net cash / debt analysis £m £
Slide 14: Reiterating FY25 outlook
Reiterating FY25 outlook Revenue Profitability¹ Cash generation Mid-single-digit growth High-single-digit growth 90-95% cash conversion Note ¹Refers to adjusted operating profit FY24 Results presentation – June 2024 14
Slide 15: First impressions & current focus areas
First impressions & current focus areas Dev Dhiman, CEO Introductory remarks Financial review First impressions Q&A
Slide 16: First impressions
First impressions Strong engagement with our key stakeholders during first 4 months in role We are a high-quality Our business is supported by business strong industry dynamics We have a significant Focused on driving top line growth from Americas opportunity improved execution in our biggest market
Slide 17: What does GBG stand for?
What does GBG stand for? FY24 Results presentation – June 2024 17
Slide 18: Our relevance in an increasingly digital world
Our relevance in an increasingly digital world Digital Regulation & Industrialisation of Customer transformation increasing fraud & financial experience compliance crime A fast-growing market opportunity, accelerated by developments such as AI FY24 Results presentation – June 2024 18
Slide 19: Our competitive differentiators
Our competitive differentiators Why we win Insights A growth Breadth of Global Secure & enabling partner solutions reach Trusted decisions A solid platform that enables differentiation Global data Agile technology Expertise The most relevant, compliant The scale to handle billions of Market experts
Slide 20: How we support 20,000+ organisations
How we support 20,000+ organisations REACH • Refine customer journeys & improve conversion rates • Help retailers optimise speed & accuracy of delivery TRUST • Support global businesses expand their operations into • Help gaming operators take new territories advantage of liberalisation in the Ameri
Slide 21: Current focus areas
Current focus areas Removing Being Driving high Differentiating through complexity globally aligned performance innovation FY24 Results presentation – June 2024 21
Slide 22: Removing complexity
Removing complexity Continuing to drive efficiency Adjusted operating expenses Focus areas: and productivity Operational efficiency In-year • Headcount: Reduced by 8% since March’23 £8.8m lower 145 • Refined management structures / Strong management of underperformance / Scrutiny of Being easier for
Slide 23: Being globally aligned
Being globally aligned Better leverage our size and scale Implementing a global operating model Differentiate from regional providers Maximise our 20,000+ customer relationships FY24 Results presentation – June 2024 23
Slide 24: Driving high performance
Driving high performance Focus on improving Americas execution Build a high-performance culture, focused on winning Increased focus on competitive differentiation Recognising & rewarding top performers FY24 Results presentation – June 2024 24
Slide 25: Differentiating through innovation
Differentiating through innovation Targeted investment in market- leading solutions Extend our data leadership including proprietary assets Improved speed to market through single integration Amplify the impact GBG has within our markets FY24 Results presentation – June 2024 25
Slide 26: GBG Trust – our global identity network
GBG Trust – our global identity network A proprietary data asset leveraging our global fraud platform & expertise to enable customers to immediately recognise great, good & bad customer prospects at the first point of contact Creating expert insight… ..that extends our competitive differentiation •
Slide 27: GBG Trust – our global identity network
GBG Trust – our global identity network Scaling at pace Attracting customers Future roadmap • Integrating into GBG 50M+ GO customer journeys Scaled to millions of ‘Through the level of • Access for customers identity records fraud detected, GBG utilising our documents Trust paid for itself and biome
Slide 28: Delivering sustainable value
Delivering sustainable value Strong business, Good execution in Clear on our attractive markets many areas focus areas FY24 Results presentation – June 2024 28
Slide 29: Q&A
Q&A Introductory remarks Financial review First impressions Q&A
Slide 30: Appendices
Appendices
Slide 31: Statutory income statement
APPENDIX Statutory income statement FY24 FY23 £m £m Growth Reported revenue 277.3 278.8 (0.5)% Cost of sales (82.8) (81.0) Gross profit 194.5 197.8 (1.7)% Gross profit % 70.1% 71.0% Adjusted operating expenses (132.4) (141.2) (6.3)% (Increase)/decrease in ECL (0.8) 0.2 Adjusted operating profit excl
Slide 32: Cash flow statement
APPENDIX Cash flow statement FY24 FY23 Variance £m £m Adjusted EBITDA 63.8 63.1 0.7 Working capital (4.9) (20.8) 15.9 Adjusted operating cash flow 58.9 42.3 16.6 Exceptional costs paid (4.1) (3.9) (0.2) Operating cash flow 54.8 38.4 16.4 Tax paid (10.1) (4.3) (5.8) Interest and borrowing costs (8.4)
Slide 33: Group balance sheet
APPENDIX Group balance sheet FY24 FY23 £m £m Variance Tangible assets 3.2 5.2 (2.0) Goodwill, intangible assets and investments 744.1 854.3 (110.1) Deferred tax assets 0.9 0.8 0.1 Non-current receivables 6.2 4.3 1.9 Non-current assets 754.5 864.6 (110.1) Inventory 1.3 2.6 (1.3) Current receivables 7
Slide 34: FY25 modelling considerations
APPENDIX FY25 modelling considerations Foreign exchange Currency (vs. GBP) % of group revenue FY24 average rate Impact modelling 1 cent move in the average exchange rate impact: US Dollar ~35% 1.26 • Revenue by c.0.3% • Adjusted operating profit of c.0.4% 1 cent move in the average exchange rate imp
Slide 35: Historic performance by segment
APPENDIX Historic performance by segment Reported revenue £m FY20 FY21 FY22 FY23 FY24 Location 51.5 59.7 66.3 76.9 81.1 Identity 105.4 128.1 142.8 162.7 156.0 Fraud 35.5 26.5 33.3 39.2 40.2 Other 6.7 3.4 0.1 - - Group revenue 199.1 217.7 242.5 278.8 277.3 Adjusted operating profit £m FY20 FY21 FY22
Slide 36: Historic Group performance
APPENDIX Historic Group performance Reported revenue (£m) Adjusted operating profit (£m)1 300 70.0 250 278.8 277.3 242.5 60.0 200 61.2 217.7 58.8 59.8 199.1 57.9 150 50.0 100 47.9 40.0 50 0 30.0 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Adjusted operating margin1 Diluted adjusted EPS (p)2 30
Slide 37: Disclaimer
Disclaimer Restricted distribution Forward-looking statements This presentation is not for release, publication or distribution, in whole or in part, This document contains certain forward-looking statements, including statements directly or indirectly, in, into or from any jurisdiction where to do
Slide 38: Contact
Contact David Ward CFO david.ward@gbgplc.com Richard Foster Head of Investor Relations richard.foster@gbgplc.com