Transunion · NYSE:TRU
Transunion — Q4 2019 Earnings Presentation
19 slides from Transunion's earnings presentation, February 2020
Slide 1: TransUnion Fourth Quarter 2019 Earnings
v v v TransUnion Fourth Quarter 2019 Earnings Chris Cartwright, President and CEO Todd Cello, CFO
Slide 2: Forward-Looking Statement
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: Key themes: performance, outlook, long-term path, market position
1 Strong Q4 and FY 2019 performance Robust outlook supported by substantial 2 investments and good market conditions Clear path to achieve superior long-term 3 performance Attractive market position and proven 4 approach to growth © 2020 Trans Union LLC All Rights Reserved | 3
Slide 4: Delivered strong financial performance in Q4 and FY 2019
Delivered strong financial performance in Q4 and FY 2019 • U.S. Markets: outstanding performance in Financial Services, Insurance and Public Sector • International: broad-based growth, particularly in India, U.K. and Canada • Consumer Interactive: balanced channel growth Created global Solutions and
Slide 5: 2020 outlook based on strong end market conditions
2020 outlook based on strong end market conditions Expecting markets to support our growth plans • U.S. Financial Services ─ Healthy consumer ─ Expect growth in Consumer Lending; flat to modest growth in Card and Auto; uncertainty in Mortgage due to macro factors • U.S. Emerging Verticals: healthy m
Slide 6: Positioned to deliver industry-leading performance over the long-term
Positioned to deliver industry-leading performance over the long-term We’ve built an effective platform for innovation and growth • Launch value-added solutions • Expand in fast-growing vertical and international markets • Extend leading technology position At times, we intend to invest at elevated
Slide 7: TransUnion's unique market position and approach
TransUnion’s unique market position and approach Innovator / attacker positions across our markets Replicable enterprise growth playbook Powerful data assets Culture of customer focus, accountability, performance Sound financial management Industry-leading technology stack © 2020 Trans Union LLC All
Slide 8: Continuous, high-impact investments evolve our technology stack
Continuous, high-impact investments position us to further evolve our technology stack 2013 2016 2020+ Project Spark Additional Benefits Investments • Developed modern, flexible, • Enhanced functionality Mainframe big data platform Modern, Platform • Increased system reliability Migration • Streamli
Slide 9: Platform architecture and cloud infrastructure investments generate benefits
Platform architecture and cloud infrastructure investments generate significant operational and financial benefits • Streamline our application ecosystem • Implement infrastructure to create economies of scale around computing and distribution • Utilize innovative tools that accelerate product devel
Slide 10: Consolidated Q4 2019 highlights
Year-over-Year Change Adjusted Revenue 10% Constant Currency Adjusted Revenue 10% Consolidated Organic Adjusted Revenue 10% Q4 2019 Organic Constant Currency Adjusted Revenue 10% highlights Organic CC Adjusted Revenue ex. Monitoring Impact 11% Adjusted EBITDA 11% Constant Currency Adjusted EBITDA 11
Slide 11: Track record of deploying capital while quickly de-levering
TransUnion has a proven track record of effectively deploying capital while quickly de-levering ($ in millions) $1,059 $1,032 $996 $1,000 $953 $917 6x • Successfully refinanced in Q4 $900 $864 2019, lowering interest expense $814 $800 $779 5x and meaningfully extending 4.9x maturities 4.5x $700 4.2x
Slide 12: U.S. Markets Q4 2019 year-over-year financial highlights
Inorganic Organic Constant Reported FX Impact Impact Currency U.S. Markets Adjusted 12% — (1)% 11% Q4 2019 Revenue Financial year-over-year Services 16% — — 16% financial Emerging 7% — (1)% 6% Verticals highlights Adjusted 17% — — 17% EBITDA Note: Rows may not foot due to rounding. © 2020 Trans Unio
Slide 13: International Q4 2019 year-over-year financial highlights
Inorganic Organic Constant Reported FX Impact Impact Currency Adjusted 10% +1% — 11% International Revenue Canada 12% — — 12% Q4 2019 year-over-year Latin America (2)% +6% — 4% financial U.K. 12% — — 12% highlights Africa 1% +3% — 5% India 27% (2)% — 25% Asia Pacific 9% (1)% — 8% Adjusted 13% +1% —
Slide 14: Consumer Interactive Q4 2019 financial highlights
Consumer Inorganic Organic Constant Reported FX Impact Interactive Impact Currency Q4 2019 Adjusted Revenue 2% — — 2% year-over-year Adjusted financial 0% — — 0% EBITDA highlights © 2020 Trans Union LLC All Rights Reserved | 14
Slide 15: Full Year 2020 Guidance
Adjusted Revenue $2.857 to $2.872 billion, up 7 to 8% • Organic CC growth of 7 to 7.5% Full Year • Assumption: 0.5 point of FX tailwind 2020 Guidance Adjusted EBITDA $1.141 to $1.151 billion, up 8 to 9% • Adjusted EBITDA margin up 10 to 30 bps • Assumption: 0.5 point of FX tailwind Adjusted EPS of $
Slide 16: Full Year 2020 Guidance – Other Items
3-year technology investment of $150 to $175 million • Investment will ramp over three years • Annual savings of $20 to $30 million beginning in 2023 Full Year 2020 Guidance Adjusted Tax Rate of 25.5% – Other Items Total Depreciation and Amortization of ~$375 million • D&A ex step-up and subsequent
Slide 17: First Quarter 2020 Guidance
Adjusted Revenue $681 to $685 million, up 9 to 10% • Organic CC growth of 9 to 9.5% First Quarter 2020 Guidance Adjusted EBITDA $261 to $264 million, up 9 to 10% Adjusted EPS $0.69 or $0.70, up 15 to 17% © 2020 Trans Union LLC All Rights Reserved | 17
Slide 18: © 2020 Trans Union LLC All Rights Reserved | 18
© 2020 Trans Union LLC All Rights Reserved | 18
Slide 19: Q&A
Q&A © 2020 Trans Union LLC All Rights Reserved | 19