Slide 1: TransUnion Fourth Quarter 2020 Earnings
v v v TransUnion Fourth Quarter 2020 Earnings Chris Cartwright, President and CEO Todd Cello, CFO
Slide 2: Forward-Looking Statement; Non-GAAP Financial Information
Forward-Looking Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TransUnion’s management and are subject to significant risks and uncertain
Slide 3: Thank you to TransUnion associates
• Thank you to TransUnion associates for working diligently in challenging times • Racial Equity Taskforce to promote diversity and inclusion – Amplify consumer advocacy and outreach through local partnerships – Examine our data and products to promote greater financial inclusion – Formulate clear d
Slide 4: Growth investments and organizational changes
Growth investments and 1 organizational changes 2 Fourth quarter 2020 business trends 3 Fourth quarter 2020 financial results First quarter and full year 4 2021 guidance © 2021 Trans Union LLC All Rights Reserved | 4
Slide 5: Path for What is Possible at TransUnion Globally
Path for What is Possible at TransUnion Globally Technology Operations Solutions Accelerate Expand core Develop innovative technology migration capabilities to solutions based on through Project Rise enhance customer customer insight to a more scalable, experience and and share globally secure, effi
Slide 6: Project Rise is Our Accelerated Initiative
Project Rise is Our Accelerated Initiative to Make TransUnion’s Technology More Scalable, Secure, Efficient and Effective • Streamline our application ecosystem • Implement hybrid cloud infrastructure to increase scale in computing and distribution • Utilize innovative tools to accelerate product de
Slide 7: Global Operations Allows Us to Expand Our Core Capabilities
Global Operations Allows Us to Expand Our Core Capabilities, Enhancing the Customer Experience and Driving Greater Efficiencies Global Procurement: expanding procurement processes and implementing procure-to-pay system Global Capability Centers (GCC): opened centers in Chennai and Pune, India an
Slide 8: Global Solutions Will Improve Our Ability to Develop and Diffuse Innovation
Global Solutions Will Improve Our Ability to Aggressively and Strategically Develop and Diffuse Innovation Globally Conducted extensive Fraud review • Rebranding to TruValidateSM • Repositioning into unified, comprehensive offering • Reorienting market focus Developed Digital Onboarding solution • B
Slide 9: Global Solutions: Recent Partnerships
Global Solutions Recent Partnerships Consumer-Permissioned Data Income & Employment Verification Partnered with MX, who aggregates financial Partnered with the largest U.S. payroll provider information through consumer-permissioned and immediately introduced a differentiated connectivity on >45M con
Slide 10: Global Solutions: Recent Acquisitions
Global Solutions Recent Acquisitions Media Cloud-based platform used to Allows us to help Deepens our understanding of build and distribute precisely clients structure and activate connected consumers via a defined audience segments their own audience intelligence household identity graph Enables au
Slide 11: U.S. Markets – Financial Services Trend
U.S. Markets – Financial Services Trend Online Credit Report Unit Volumes Total U.S. Markets Financial Services Volume Additional trend data since Q3 2020 Earnings Release +15% (1) Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. 2019 2020 2021 © 2021 Trans Union LLC All Rights R
Slide 12: U.S. Markets – Financial Services End-Market Trends
U.S. Markets – Financial Services End-Market Trends Online Credit Report Unit Volumes Consumer Lending Auto Additional trend data since Additional trend data since Q3 2020 Earnings Release Q3 2020 Earnings Release +14% +4% Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb.(1) Jan.
Slide 13: U.S. Markets – Mortgage Trends and 2021 Outlook
U.S. Markets – Mortgage Trends and 2021 Outlook Online Credit Report Unit Volumes Mortgage Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. ‘19 ‘19 ‘19 ‘19 ‘19 ‘19 ‘19 ‘19 ‘19 ‘19 ‘19 ‘19 ‘20 ‘20 ‘20 ‘20 ‘20 ‘20 ‘20 ‘20 ‘
Slide 14: Emerging Markets Vertical Trends
Emerging Markets Vertical Trends Vertical Q4 2020 Performance Vertical Q4 2020 Performance Improved performance in front-end offset Tenant Solid performance as Healthcare by lower back-end volumes leasing companies remain active Screening Continued success with innovation Employment Continued softne
Slide 15: Consumer Interactive Trends
Consumer Interactive Trends Consumers recognize value of credit and identity protection, credit monitoring and financial education tools • Direct channel delivered double-digit revenue growth behind continued successful marketing • Indirect channel remained soft as Indirect partners have continued c
Slide 16: International Quarterly Trends
International Quarterly Trends Year-over-Year Constant Currency Adj. Revenue Growth / (Decline) 16% 14% 10% 2% Canada 6% 3% 4% 2% India 0% (2%) 2% (5%) U.K. ex. Disposition (6%) (1%) Latin America (12%) (8%) Asia Pacific (8%) (8%) (13%) (10%) (13%) Africa (21%) (22%) (23%) Q1 2020 Q2 2020 Q3 2020 Q4
Slide 17: International Highlights
International Highlights Country or Q4 2020 Performance Region U.K. Improving end markets, strength in our fraud and gaming businesses, and new business wins Continued growth driven by portfolio diversification: Insurance and Public Sector verticals, Canada direct-to-consumer offerings and FinTech I
Slide 18: Consolidated Q4 2020 Highlights
Year-over-Year Change Revenue 2% Constant Currency Revenue 2% Consolidated Organic Revenue 1% Q4 2020 Organic Constant Currency Revenue 1% Highlights Adjusted EBITDA (2)% Constant Currency Adjusted EBITDA (2)% Organic Constant Currency Adjusted EBITDA (1)% Adjusted Diluted EPS 7% Note: For additiona
Slide 19: U.S. Markets Q4 2020 Year-over-Year Financial Highlights
Inorganic Organic Constant Reported FX Impact Impact Currency U.S. Markets Revenue 4% — (1)% 3% Q4 2020 Financial Year-over-Year Services 7% — — 7% Financial Emerging (0)% — (3)% (3)% Verticals Highlights Adjusted (2)% — 1% (1)% EBITDA Note: Rows may not foot due to rounding. For additional informat
Slide 20: Consumer Interactive Q4 2020 Financial Highlights
Consumer Inorganic Organic Constant Reported FX Impact Interactive Impact Currency Q4 2020 Revenue 3% — — 3% Year-over-Year Adjusted Financial (2)% — — (2)% EBITDA Highlights Note: For additional information, refer to the “Non-GAAP Financial Information” section on slide 2. © 2021 Trans Union LLC Al
Slide 21: International Q4 2020 Year-over-Year Financial Highlights
Organic Organic CC Inorganic Reported FX Impact Constant ex. Recipero Impact Currency Disposition Revenue (4)% +2% — (2)% (1)% International Q4 2020 Canada 4% (1)% — 2% — Latin Year-over-Year America (12)% +10% — (1)% — Financial U.K. 1% (3)% — (1)% 2% Highlights Africa (19)% +6% — (13)% — India (2)
Slide 22: TransUnion Has a Strong Balance Sheet and the Ability to Rapidly Build Cash
TransUnion Has a Strong Balance Sheet and the Ability to Rapidly Build Cash ($ in millions) $1,059 $1,083 $1,062 $1,051 $1,045 $1,032 $996 $1,000 $953 $917 6x $864 $814 $800 $779 5x • Ended Q4 with $493M of cash and $600 4.9x full $300M revolver capacity • Pre-paid $150M of debt 4x 4.5x $400 4.2x •
Slide 23: Q1 2021 Guidance
Reported Revenue: $698M to $707M +2% to +3% Assumed M&A contribution: Slightly < 1pt. benefit Assumed FX contribution: Slightly < 1pt. benefit Organic Constant Currency Revenue: Flat to +1% Q1 2021 Adjusted EBITDA: $268M to $275M +2% to +4% Guidance Assumed FX contribution: ~0.5pt. benefit Adjusted
Slide 24: FY 2021 Revenue Guidance
FY 2021 Revenue Guidance Reported Revenue: $2.817B to $2.877B +4% to +6% Assumed M&A contribution: ~0.5pt. benefit Assumed FX contribution: ~1.0pt. benefit Organic Constant Currency Revenue: +2% to +4% Assumed Mortgage impact: ~2pt. headwind Organic CC Revenue ex. Mortgage: +4% to +6% • U.S. Markets
Slide 25: FY 2021 Adjusted EBITDA, Adjusted Diluted EPS and Other Guidance
Adjusted EBITDA: $1.083B to $1.121B +4% to +7% Assumed FX contribution: ~1.0pt. benefit FY 2021 Adjusted EBITDA Margin: +0bps to +50bps Adjusted EBITDA, Adjusted Diluted EPS Adjusted Diluted EPS: $3.16 to $3.31 +5% to +10% and Other Guidance Adjusted Tax Rate: ~23% Total D&A: ~$375M D&A ex. step-up
Slide 26: Making progress on Project Rise, Global Operations and Global Solutions
• Making progress on Project Rise, Global Operations and Global Solutions • Delivering good business performance despite challenging conditions © 2021 Trans Union LLC All Rights Reserved | 26
Slide 27: Q&A
Q&A © 2021 Trans Union LLC All Rights Reserved | 27