Slide 1: Investor Presentation: Full Year Results to 31 March 2020
Investor Presentation Full Year Results to 31 March 2020 Chris Clark Dave Wilson
Slide 2: GBG strategic vision
GBG strategic vision To be the global leader in Identity Data Intelligence Focus resources to new / accelerated Our focus is 3 complementary solutions: Location, Identity and Fraud and growth opportunities joining these capabilities together over time to meet the end to end digital requirement to he
Slide 3: Business Model
Business Model Global data access Location Identity Fraud Proprietary Software/Algorithms Routes to market Self serve | Face to face | Channel Target geographies : UK, Europe, SE Asia, China, B2C customers AUS & NZ, North America 3 Investor Presentation June / July 2020
Slide 4: 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 Breadth of data globally Proven Solution with reliable local Best Global Address Data1 Depth of data in core markets language algorithms
Slide 5: FY20 Highlights
FY20 Highlights Customers People Data, Products & Strong Financial • Over 20k customers with record • Talented team of over 1,000 Technology Results advocacy scores people in 16 countries. • Expansion of key data sets • Revenue £199.1m, total • Good growth from existing • Added team capability while
Slide 6: COVID-19: our response
COVID-19: our response Priorities Process Decisions & Actions Latest Status • People: Health and safety of our • Crisis Management Team: Lead • Pay freeze • Team managing well. Offices team and their families by CEO, daily updates and weekly remain closed (except China and • All but essential hiring
Slide 7: Market & Customer Drivers
Market & Customer Consumers expect simple Continuing growth in Business accelerating their Drivers and safe online experiences. e-commerce, particularly on mobile. digital transformations. • We help businesses in a digital world. • We help B2C companies simply, safely and securely interact with COVI
Slide 8: Looking ahead
Looking ahead • Bumpy short term but confidence in long term • Can not predict the exact impact on our current and potential customers • Continue to enhance key data sets, products and technologies • Preserving cash to adapt and emerge stronger • Taking an active and prudent approach to M&A Our focu
Slide 9: How We've Performed
How We’ve Performed 9 Investor Presentation June / July 2020
Slide 10: Group Income Statement
Group Income Statement 2020 2019 Points to Note Year ended 31 March £m £m • Increase in adjusted operating profit ahead of total Revenue 199.1 143.5 +39% revenue growth due to the higher margin impact of Cost of sales (54.9) (36.1) IDology in our Identity business Gross profit 144.2 107.4 +34% • Adj
Slide 11: Business Unit Performance Growth
Business Unit Performance Growth Constant currency organic growth Organic FY20 Total growth at Operating Revenue % of Total growth constant margin % £m 2020 2019 currency Year Ended 31 March Growth £m £m Location Group revenue 199.1 143.5 39% 49.8 25% 8% 7% 29% 1 Acquired revenue in past 12 (40.8) I
Slide 12: Revenue Analysis per Sector
Revenue Analysis per Sector Financial Services 45% Gaming 9% Retail 7% Technology 6% Public Sector 6% Total analysed 88% Travel & Leisure 4% Utilities & Telco 3% “Smaller, COVID challenged sectors” includes sectors with small % of revenue most Motor, Transport & Dist'n 3% impacted by COVID – Sportin
Slide 13: Revenue Analysis per Geography
Revenue Analysis per Geography FY20 FY19 Inc £m % of Rev £m % of Rev £’000 % United Kingdom 87.8 44% 79.4 55% 8.4 11% United States of America 52.4 26% 20.5 14% 31.9 155% Australia 19.1 10% 10.2 7% 8.9 86% Other 39.8 20% 33.4 24% 6.4 19% 199.1 100% 143.5 100% 55.6 39% Countries included in “Other” w
Slide 14: Cash Flow Statement
Cash Flow Statement Adjusted EBITDA cash conversion ratio (excl. paid exceptional items) 2020 2019 Year Ended 31 March Variance £m £m Adjusted EBITDA 51.7 34.1 17.6 95% (2019: 93%) (2.1) (2.3) 0.2 • Continued strong cash generation Working capital • Loan repayments of £24.9m made during FY20 Adjuste
Slide 15: Our near term approach to capital allocation
Our near term approach to capital allocation Preserving cash to adapt and emerge Current approach to Capital Allocation stronger • Good long term structural trends • Maintaining our organisational capacity whilst reducing • Business model is strongly cash generative discretionary spend • Project spe
Slide 16: Confidence in our long term market opportunity
Confidence in our long term market opportunity. Strategy does not change but tactics do. 16 Investor Presentation June / July 2020
Slide 17: Summary Outlook
Summary Outlook • The strong financial performance in 2020 means GBG • The full effect of COVID-19 on the business is still continues to have the capability and resources to make unfolding. We are seeing different levels of impact important investments across the Group to support further depending o
Slide 18: Questions & Answers
Questions & Answers 18 Investor Presentation June / July 2020
Slide 19: Appendices
Appendices 19 Investor Presentation June / July 2020
Slide 20: 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 21: 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 22: Summary Segments
Summary Segments New Segment Name Location Identity Fraud Other %FY20 revenues 25% 53% 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 23: Acquisitions
Acquisitions Timeline Location Identity Fraud • 12 acquisitions in the last 8 years Technology • Each acquisition’s strategy and integration is treated differently New Geography • Standardised minus 100 day plans and plus 200 day plans New Customers • Financing via cash, debt, equity • Equity raised
Slide 24: Our Corporate Vision, Objective, Strategy (VOS)
Our Corporate Vision, Objective, Strategy (VOS): Unique Value Get, Keep, Grow Clearly defined and in Proposition place across the Level 3 business Micro-services APIs Info Sec Best & Most Engaged Awareness How we bring our strategies together 24 Investor Presentation June / July 2020
Slide 25: Largest Shareholders as at May 2020
Largest Shareholders as at 1 May 2020 8.0% 7.3% 7.1% 7.0% 6.0% 5.1% 4.9% 5.0% 4.6% 4.2% 4.0% 3.6% 3.4% 3.3% 3.2% 2.9% 2.8% 3.0% 2.4% 2.2% 2.1% 1.9% 1.9% 1.9% 1.8% 2.0% 1.7% 1.0% 0.0% Total analysed: 68.3% Directors Shares: 1.7m (0.87%) Options: 2.1m1 1 Vesting is subject to achieving performance cri
Slide 26: Corporate Responsibility and Sustainability
Corporate Responsibility and Sustainability Establishing trust between businesses and their customers; working and acting responsibly; empowering, prioritising and protecting our people; creating broader societal value and protecting the environment. GOVERNANCE & ETHICS DATA PRIVACY & IT SECURITY EQ
Slide 27: Growth track record
Growth track record Revenue (£m) 8 year CAGR = 25.8% Adjusted operating profit (£m)1 8 year CAGR = 37.7% 200 50 199.1 45 47.9 40 150 35 143.5 30 100 119.7 25 32.0 20 26.3 87.5 73.4 15 50 57.3 10 17.0 36.3 41.8 13.4 5 7.2 10.8 5.5 0 0 YE Mar 13† YE Mar 14 YE Mar 15 YE Mar 16 YE Mar 17 YE Mar 18 YE Ma
Slide 28: Historic Revenue by Segment
Historic Revenue by Segment Full Year Revenue £m FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Location 12.2 13.0 13.5 18.0 21.8 39.4 46.3 49.8 Identity 12.4 15.1 19.2 24.8 33.5 43.91 58.22 105.44 Fraud 6.2 7.2 14.5 17.5 21.3 25.9 29.1 35.5 Other 5.5 6.5 10.1 13.1 10.9 10.5 9.9 8.4 Total 36.3 41.8 57.3 73
Slide 29: Historic Revenue Growth by Segment
Historic Revenue Growth by Segment Full Year Revenue Growth FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY20 Org FY20 Org CC Location 7% 3% 34% 21% 81% 17% 8% 8% 7% Identity 22% 27% 29% 35% 31% 33% 81% 11% 12% Fraud 17% 100% 21% 21% 21% 14% 22% 22% 24% Other 15% 57% 29% (16%) (3%) (8%) (15%) (15%) (15%) Tota
Slide 30: Historic Operating Profit by Segment
Historic Operating Profit by Segment Full Year Operating Profit £m FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Location 3.1 3.8 3.8 4.0 6.4 12.6 16.7 14.6 Identity 1.3 1.6 2.8 4.5 5.6 9.4 15.2 33.6 Fraud 1.4 1.8 3.8 5.9 7.3 6.6 9.0 13.4 Other (0.3) (0.0) 0.4 (1.0) (2.3) (2.3) (8.9) 1 (13.7) Total Operat
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 FY20 Location 34% 31% 24% 25% 25% 33% 32% 25% Identity 34% 36% 34% 34% 38% 37% 41% 53% Fraud 17% 17% 25% 24% 25% 21% 20% 18% Other 15% 16% 17% 17% 12% 9% 7% 4% Total 100% 100% 100% 100% 100% 100% 100% 1
Slide 32: Group Balance Sheet
Group Balance Sheet 2020 20191 As at 31 March Variance Strong balance sheet and financing ability £m £m Tangible assets 9.4 4.8 4.6 Net (Debt)/Cash 2020 2019 Variance Analysis £m £m Intangible assets 414.5 425.6 (11.1) Deferred tax assets 6.3 8.2 (1.9) Cash 27.5 21.2 6.3 Non-current assets 430.2 438
Slide 33: Modelling considerations for FY21 – Foreign Exchange
Modelling considerations for FY21 – Foreign Exchange Currency % of group FY21 rate FY20 average rate FY21 range of rates1 (vs. GBP) revenue FY20 Internal US Dollar 24% 1.27 1.17 ~ 1.39 1.30 Australian Dollar 20% 1.87 1.79 ~ 2.37 2.05 1 SOURCE: rates from 81 banks 4th April 2020 . 33 Investor Present
Slide 34: Modelling Considerations for FY21 - Tax Rate
Modelling Considerations for FY21 - Tax Rate UK USA Australia Other2 Group % of Profit Before Tax1 34% 28% 34% 4% 100% Statutory Tax Rate 19% 21% 30% 24 - 28% 23% State Taxes - 7% - - 2% Patent Box Relief (3%) - - - (1%) Forecast FY21 Effective Tax Rate 16% 28% 30% 24 - 28% 24% FY20 Effective Tax Ra
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 June / July 2020