Slide 1: Results presentation
Results presentation For the twelve months ended 31 March 2022 Chris Clark David Ward Chris Luttrell CEO CFO CEO, GBG Americas
Slide 2: 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 3: Highlights & operational review
Highlights & operational review Chris Clark - CEO
Slide 4: FY22 at a glance
FY22 at a glance Strategic & operational highlights Strong financial results • Growth with existing customers and winning • Revenue of £242.5m and adjusted operating profit new logos in emerging sectors £58.8m exceeding original market expectations • Innovative product and technology launches - Pro
Slide 5: GBG's purpose: Build trust in a digital world
GBG’s purpose: Build trust in a digital world Our vision: To create a world where everyone can transact online with confidence Delivering long-term sustainable growth built upon six key strategic priorities Build Markets Build Differentiation Build Once Grow globally, serving customers in Deliver co
Slide 6: Our purpose-led approach makes a difference
Our purpose-led approach makes a difference Making progress towards our ambitions 95% of our team Developed an Continued Became a Increased energy Board ESG “recommend innovative, progress on member of the efficiency across Committee We contribute to the GBG as a great flexible policy Data privacy a
Slide 7: Structural growth underpins a strong long-term growth opportunity
Structural growth underpins a strong long-term growth opportunity Operating in large, fast-growing Our customers’ drivers Our market drivers global digital identity markets • Accelerating digital transformation • Increasingly cashless society Identity Verification* • Frictionless experience • Rise o
Slide 8: Differentiating through world-class data, technology and trust experts
Differentiating through world-class data, technology and trust experts Our competitive strength Onboarding We can provide trust at every step of • Enhances customer experience, reducing friction the customer journey with real-time verification • Improves customer onboarding speed, verifying more Cov
Slide 9: Location
Location Validating accurate and reliable address data to ensure our customers can, with minimum friction, provide their products and services to the right people, in the right place FY22 growth of 13% • Growth reflects good demand across regions for our solutions supporting the ongoing consumer shi
Slide 10: Identity
Identity Building trusted relationships through document and data identity verification to prove an individual is who they say they are and good to do business with, which can help prevent crimes such as money laundering and identity fraud FY22 growth of 9% (17% excl. US stimulus) • Tough comparativ
Slide 11: Fraud
Fraud Offering real-time protection and regulatory compliance protection against modern-day financial crimes, identifying and helping to prevent or pursue bad actors to avert crimes such as identity, application and transaction fraud FY22 growth of 16% • Strong growth with on-premise deployment acti
Slide 12: Financial review
Financial review David Ward, CFO
Slide 13: Strong financial performance
Strong financial performance GBG achieved good growth despite a tough comparator. Our cash generative model supports ongoing investment in the business and the repayment of the debt used to fund the Acuant acquisition. Balancing growth and profitability consistently £242.5m 94% £273.8m Combined cons
Slide 14: Group income statement
Group income statement 2022 2021 • 10.6% constant currency organic growth Year to 31 March £m £m Growth Revenue 242.5 217.7 +11.4% • Change in sales mix has increased the Gross profit % Cost of sales (70.5) (65.1) • Higher OPEX due to FY21 COVID cash conservation and delaying additional investment s
Slide 15: Group revenue bridge for FY21 – FY22
Group revenue bridge for FY21 – FY22 • FY22 reported revenue growth of 11.4% • Organic constant currency growth of 10.6% Pro-forma enlarged group revenue (15.5% excluding US stimulus work) £273.8m • Underlying growth of 13.1% Underlying growth 13.1% £4.0 £4.2 £27.2 H1 FY22 FY22 - Effect Exceptional
Slide 16: Continued revenue diversification
Continued revenue diversification Sector split Geographic spread Financial Services US Retail UK Technology APAC (Inc ANZ) Gaming 4% Europe 16% Public Sector Rest of world 11% Professional Services Travel & leisure Other incl. 4% Channel partners, Utilities and Autos 41% 4% FY22 14% FY22 45% Pro for
Slide 17: A business model that delivers sustainable revenue and excellent cash generation
A business model that delivers sustainable revenue and excellent cash generation Revenue breakdown Total subscription revenue 12.8% 9.6% £58.8m Term-based Transaction / consumption 300 Transaction / Consumption-based Other Subscription Transaction Deferred £273.8m revenue /consumption revenue 9% gro
Slide 18: Group Balance Sheet
Group Balance Sheet As at 31 March 2022 £m 2021 £m Variance Strong cash generation Tangible assets 7.3 6.9 (0.4) Debt leverage & borrowing: Intangible assets 971.9 380.0 591.9 Deferred tax assets 21.9 7.7 14.2 Net cash / debt 31 Mar 22 31 Mar 21 31 Mar 20 Non-current assets 1,001.1 394.6 606.5 analy
Slide 19: Creating a global leader in digital identity and fraud prevention
19 Creating a global leader in digital identity and fraud prevention Chris Clark, CEO Chris Luttrell, CEO of GBG Americas David Ward, CFO
Slide 20: Creating a global leader in the digital identity and fraud prevention markets
Creating a global leader in the digital identity and fraud prevention markets Our acquisition of Acuant brings together two of the leaders in the fast-growing global digital identity market with FY22 pro forma combined revenue of c. £273.8 million Enhances our US market presence Attractive financial
Slide 21: Enhances our US market presence and creates a strong platform for global expansion
Enhances our US market presence and creates a strong platform for accelerated global expansion • Acuant enhances our fraud and compliance solution Now the largest pure- Our teams are entrenched and knowledgeable about local markets in the Americas play identity verification • Our capabilities enable
Slide 22: Accelerated product, data & platform strategy
Organised by “global” and “regional” focus with close collaboration to optimise our resources and sustain our competitive advantage • In the short term, combining our technology to pursue customer proposals and offer a differentiated solution Accelerated product, • Delivering medium-term portfolio e
Slide 23: Attractive financial profile, to deliver accelerated revenue growth
We have been successfully executing our detailed 100 and 200-day integration plans • Key worksteams into execution phase and business as usual Attractive financial profile, On track to deliver at least £5 million of synergy benefits during FY23 to deliver accelerated Of which, £3 million of cost syn
Slide 24: Summary & outlook
24 Summary & outlook Chris Clark, CEO
Slide 25: Summary and Outlook
Summary • Delivered strong financial results and significant strategic progress – Organic investment and important acquisitions • Moving at pace with the Acuant integration to deliver the synergies, expanding our capabilities and capturing the growth opportunities Outlook • Excited by the long runwa
Slide 26: Why GBG
Why GBG We are one of the largest pure-play identity software solution providers with FY22 pro forma revenue of c.£274m We are at the forefront of Our data infrastructure and GBG has a compelling Our people and culture Attractive financial model the fast-growing and global technology are best in str
Slide 27: Appendices
Appendices GBG
Slide 28: Revenue breakdown
Revenue breakdown A business model that delivers excellent cash generation Pro forma enlarged Organic constant FY22 FY21 Total Growth Group FY22 currency growth % £m % of Rev £m % of Rev £m % of Rev £m % Subscriptions: - Transactions / consumption-based 41.7 15% 35.8 15% 32.8 15% 3.0 9.1% 12.7% - Te
Slide 29: Our growth track record
Our growth track record Revenue (£m) 5-year CAGR = 22.6% Adjusted operating profit (£m)1 5-year CAGR = 28.2% 250 60.0 242.5 50.0 57.9 58.8 200 217.7 199.1 47.9 40.0 150 143.5 30.0 32.0 100 119.7 26.3 20.0 50 10.0 0 - YE Mar 18 YE Mar 19 YE Mar 20 YE Mar 21 YE Mar 22 YE Mar 18 YE Mar 19 YE Mar 20 YE
Slide 30: Historic revenue and growth by segment
Historic revenue and growth by segment Full year FY16 FY17 FY18 FY19 FY20 FY21 FY22 revenue £m Location 22.5 25.2 41.9 47.9 51.5 59.7 66.3 Identity 24.8 33.5 43.9 58.2 105.4 128.1 142.8 Fraud 17.5 21.3 25.9 29.1 35.5 26.5 33.3 Other 8.6 7.5 8.0 8.3 6.7 3.4 0.1 Total 73.4 87.5 119.7 143.5 199.1 217.7
Slide 31: Historic operating profit by segment
Historic operating profit by segment Full year operating profit £m FY16 FY17 FY18 FY19 FY20 FY21 FY22 Location 6.1 7.7 13.8 16.6 14.6 19.5 24.6 Identity 4.5 5.6 9.4 15.2 33.6 47.7 57.0 Fraud 5.9 7.3 6.6 9.0 13.4 5.3 8.0 Other (3.1) (3.6) (3.5) (8.8)1 (13.7) (14.6) (30.8)2 Total operating profit 13.4
Slide 32: Cash flow statement
Cash flow statement 2022 2021 Strong cash generation: Year ended 31 March £m £m Variance • 95.7% (2021: 119.5%) Adjusted EBITDA cash conversion ratio Adjusted EBITDA 62.2 61.4 0.8 Working capital (3.3) 12.6 (15.9) • Decrease due to multi-year deal cash receipts in Q1 FY21 and FY21 cost/cash COVID co
Slide 33: Acquisitions and investments
Acquisitions and investments • 15 acquisitions and one investment in the last 10 years to accelerate our organic growth strategy • Proven shareholder value creation model - each acquisition’s strategy and integration is treated differently • Financing via a mix of a mix of cash, debt and equity • Eq
Slide 34: Contact
Contact David Ward CFO david.ward@gbgplc.com Richard Foster Investor Relations – Senior Manager richard.foster@gbgplc.com | Investor Presentation – June 2022