Gb Group Plc · LSE:GBG
Gb — H1 FY2020 Earnings Presentation
35 slides from Gb's earnings presentation, Nov 25, 2019
Slide 1: Investor Presentation: Half Year Results to 30 September 2019
Investor Presentation Half Year Results to 30 September 2019 Chris Clark Dave Wilson
Slide 2: Operational Highlights: Growth balanced and diversified
OPERATIONAL HIGHLIGHTS Growth balanced and diversified Customers People Products Technology • Good growth from existing • 91% of employees recommend • Expansion of key data sets: • Reusable (Micro-services) customers & new customer GBG as a great place to work platform based architecture wins global
Slide 3: Performance Highlights
PERFORMANCE HIGHLIGHTS Over 50% of revenue from international customers for the first time Revenue from Active customers Revenue Adjusted International operating profits1 customers 57% >19k £94.3m £21.5m 2018: 35% 2018: >18k 2018: £58.3m 62%▲ 2018: £9.8m 119%▲ Employees who Operating margin Basic ad
Slide 4: Strategic acquisitions strengthen global capability; integrations going well
M&A Strategic acquisitions strengthen global capability; integrations going well GBG acquired IDology for IDology is a US domestic GBG acquired VIX VIX Verify is an $300m (£236m) in Feb 19 provider of Verification, Verify Global for Australian provider of Authentication & Fraud A$38.3m (£20.6m) in I
Slide 5: How we've performed
How we’ve performed
Slide 6: Growth: Underlying organic growth
Growth Underlying organic growth Six Months Ended 30 Sep 2019 2018 Growth Underlying1 constant currency organic growth £m £m Group revenue 94.3 58.3 62% 13% (2018: 14%) Acquired revenue in past 6 months (25.9) Organic revenue 68.4 58.3 17% Accelerated large multi-year deals in Fraud division Constan
Slide 7: Group Income Statement
Group Income Statement Points to Note • Adjusted operating margin has increased to 23% 6 months to 30 September 2019 2018 • IDology Mix lowered GM% but increased Operating Margin % £m £m Revenue 94.3 58.3 +62% • Adoption of new accounting standard for leases improved EBITDA by £1.1m, and adjusted op
Slide 8: Cash Flow Statement
Cash Flow Statement 6 months to 30 September 2019 2018 Variance Adjusted EBITDA cash conversion ratio £m £m (excl. paid exceptional items) Adjusted EBITDA 23.4 10.8 12.6 104% Working capital 1.0 0.5 0.5 2018: 105% Adjusted Operating Cash Flow 24.4 11.3 13.1 Exceptional costs paid (0.5) (1.0) 0.5 Ope
Slide 9: Group Balance Sheet
Group Balance Sheet Strong balance sheet and financing ability As at 30 September 2019 2018 Variance £m £m Net (Debt)/Cash 2018 2019 Tangible assets 10.2 4.4 5.8 Analysis £m £m Variance Intangible assets 425.9 158.0 267.9 Cash 23.3 27.5 (4.2) Deferred tax assets 6.5 4.2 2.3 Debt1 (77.1) (8.9) (68.2)
Slide 10: Capital Allocation
Capital Allocation Organic business Operating cash flow application • Structurally growing end markets M&A • True global coverage and significant addressable market Reducing • Technology Progressive Reinvesting • Dual approach - expanding product portfolio and entering debt • Geography dividend into
Slide 11: Acquisitions; Adding capability and international scale
Acquisitions; Adding capability and international scale 2011 2019 Location Identity Fraud • 12 acquisitions in the last 8 years Technology • Standardised minus 100 day plans and plus 200 day plans: Priorities differ per acquisition New Geography • Financing via cash, debt, equity New Customers • Equ
Slide 12: Market opportunity and growth strategy
Market opportunity and growth strategy
Slide 13: Market & Customer Drivers
Market & Customer Sustained growth in digital commerce Drivers Our customers need innovative digital solutions to help grow, Increased focus on frictionless onboarding reduce online fraud and meet increasingly stringent compliance regulations Ever-increasing fraud and data breaches Increase in regul
Slide 14: To be the global leader in Identity Data Intelligence
GBG STRATEGIC VISION: To be the global leader in Identity Data Intelligence Our strategic priorities to drive financial growth and deliver our vision Expand into new geographies and sectors Maximise growth Optimise growth in our internationally from specialist UK businesses Focus on the end to e
Slide 15: Strategic Progress
Strategic Progress Our overall strategy: Our functional strategies: • Prioritisation: Focusing on 3 core capabilities has • Customer: We are building stronger relationships worked well • Product: Positive impact from new hires & Our core strategies: upskilling. New functions like UX established • Lo
Slide 16: Competitive Differentiators & Barriers to Entry
COMPETITIVE DIFFERENTIATORS & BARRIERS TO ENTRY Our differentiated capabilities and strong market position have created a barrier to entry Location Identity Fraud Best Global Address Data Breadth of data globally Proven Solution with reliable “Golden Record in 60 Depth of data in core mark
Slide 17: Business Model
Business Model External Datasets Proprietary Routes to B2C customers Partners 275 Datasets 524 Software/Algorithms market Location (£22.2m | 24%) Self serve Identity (£51.2m | 54%) Face to face Fraud (£16.8m | 18%) Channel Other (£4.1m | 4%) £94.3m | 100% 17 | Investor Presentation November 2019
Slide 18: Summary Outlook
Summary Outlook Significant market opportunity supported by Strong trading performance: international structural growth drivers revenue now 57% of business Clear Vision, Objectives and Strategies with Continued product enhancement and breadth the team to deliver of data offering Continued
Slide 19: Questions & Answers
Questions & Answers
Slide 20: Appendices
Appendices
Slide 21: Disclaimer
Disclaimer Restricted distribution This presentation is not for release, publication or distribution, in whole or in part, directly or indirectly, in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction (the ‘Restricted J
Slide 22: Key Management
Key Management David A Rasche David Wilson Chairman CFO & COO Appointed to Board in September 2010 Joined in March 2009 as Finance Director Co-founder of SSP – one of the largest specialist Over 35 years international and operational board level insurance software houses in the world experience in t
Slide 23: Our Corporate Vision, Objective, Strategy
Our Corporate Vision, Objective, Unique Value Strategy (VOS): Proposition Get, Keep, Grow Clearly defined and in Level 3 place across the business Micro-services APIs Info Sec Best & Most Engaged Awareness How we bring our strategies together 23 | Investor Presentation November 2019
Slide 24: Annual performance to March 2019
GROWTH TRACK RECORD Annual performance to March 2019 Revenue (£m) 7 year CAGR = 24.0% Adjusted operating profit (£m)1 7 year CAGR = 36.3% 150 40 143.5 30 100 119.7 32.0 20 26.3 87.5 50 73.4 17.0 57.3 10 13.4 41.8 10.8 36.3 7.2 0 0 5.5 YE Mar 13† YE Mar 14 YE Mar 15 YE Mar 16 YE Mar 17 YE Mar 18 YE M
Slide 25: Revenue Sector Analysis – Half Year
Revenue Sector Analysis – Half Year 1H20 1H19 Total 72% Total 64% Financial Services 43% 30% Gaming 9% 9% Retail & eCommerce 8% 7% Government 5% 9% Travel & Leisure 4% 5% Motor & Transport 3% 4% 25 | Investor Presentation November 2019
Slide 26: Largest Shareholders as at November 2019
Largest Shareholders as at 1 November 2019 9.0% 8.14% 8.0% 7.55% 7.0% 6.70% 5.94% 6.0% 5.0% 4.20% 4.14% 4.02% 4.0% 3.29% 2.88% 3.0% 2.41% 2.39% 2.28% 2.26% 2.09% 1.98% 1.97% 1.87% 1.86% 1.56% 2.0% 1.0% 0.0% Total analysed: 67.5% Directors Shares: 2,615,115 (1.35%) Options: 2.4m1 26 | Investor Presen
Slide 27: Summary Segments
Summary Segments New Segment Name Location Identity Fraud Other %1H20 revenues 24% 54% 18% 4% Instinct, Predator, Orchestration. Platforms Capture + ID3global, KYP, IDology, GreenID Connexus Marketing Services, SCV • Application fraud • ID Verification • ID fraud • Address validation • Credit risk m
Slide 28: Historic Revenue by Segment
Historic Revenue by Segment Full Year Revenue £m FY13 FY14 FY15 FY16 FY17 FY18 FY19 Location 12.2 13.0 13.5 18.0 21.8 39.4 46.3 Identity 12.4 15.1 19.2 24.8 33.5 43.91 58.22 Fraud 6.2 7.2 14.5 17.5 21.3 25.9 29.4 Other 5.5 6.5 10.1 13.1 10.9 10.5 9.6 Total 36.3 41.8 57.3 73.4 87.5 119.7 143.5 Half Y
Slide 29: Historic Revenue Growth by Segment
Historic Revenue Growth by Segment Full Year Revenue Growth FY14 FY15 FY16 FY17 FY18 FY19 Location 7% 3% 34% 21% 81% 17% Identity 22% 27% 29% 35% 31% 33% Fraud 17% 100% 21% 21% 21% 14% Other 15% 57% 29% (16%) (3%) (8%) Total 15% 37% 28% 19% 37% 20% 1H20 Half Year Revenue Growth 1H14 1H15 1H16 1H17 1
Slide 30: Historic Operating Profit by Segment
Historic Operating Profit by Segment Full Year Operating Profit £m FY13 FY14 FY15 FY16 FY17 FY18 FY19 Location 3.1 3.8 3.8 4.0 6.4 12.6 16.7 Identity 1.3 1.6 2.8 4.5 5.6 9.4 15.2 Fraud 1.4 1.8 3.8 5.9 7.3 6.6 9.3 Other (0.3) (0.0) 0.4 (1.0) (2.3) (2.3) (9.2)1 Total Operating Profit 5.5 7.2 10.8 13.4
Slide 31: Historic % of Total Revenue by Segment
Historic % of Total Revenue by Segment Full Year Revenue Split FY13 FY14 FY15 FY16 FY17 FY18 FY19 Location 34% 31% 24% 25% 25% 33% 32% Identity 34% 36% 34% 34% 38% 37% 41% Fraud 17% 17% 25% 24% 25% 21% 20% Other 15% 16% 17% 17% 12% 9% 7% Total 100% 100% 100% 100% 100% 100% 100% Half Year Revenue Spl
Slide 32: Working with Loqate
Working with Loqate Sephora – A global Omni-Channel retailed of personal care IBM – Embedded into the IBM data management and beauty products, featuring over 300 brands along with solutions; address batch cleansing technology from it’s own private label. Headquartered in Paris, France. Loqate enable
Slide 33: Working with Identity
Working with Identity Playtech – World’s leading gaming and financial trading Etsy - A global e-commerce trading platform business. Employs 5,000 people, across 17 global focussed on handmade or vintage items and craft locations. Leaders in next generation technology and suppliers. They help a commu
Slide 34: Working with Fraud
Working with Fraud Bank Negara Indonesia – Bank Negara Indonesia (BNI) is one of five tier-one banks in Indonesia and BNP Paribas – established in 1822, BNP operates across 73 countries and employs over 200,000 turned to GBG for anti-fraud application solution for people. They work to bring together
Slide 35: Contact
Contact Want to know more about our business? Sometimes there’s no substitute for a conversation. Get in touch. I’ll be glad to help. Dave Wilson CFO & COO +44 (0) 7712555864 dave.wilson@gbgplc.com 35 | Investor Presentation November 2019