Slide 1: TransUnion Third Quarter 2020 Earnings
v v v TransUnion Third Quarter 2020 Earnings Chris Cartwright, President and CEO Todd Cello, CFO
Slide 2: Forward-Looking Statement and 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: COVID-19 response and focus on associates and communities
• Focus on the welfare of our associates, customers, consumers and communities • Continue to work from home globally • Making progress against commitment to foster greater diversity and inclusion for all associates and promote greater financial inclusion © 2020 Trans Union LLC All Rights Reserved |
Slide 4: Agenda
Review third quarter 2020 results 1 and current business trends Update on strategic long-term 2 investments Detail third quarter 2020 3 financial performance Discuss reinstated fourth quarter and 4 full year 2020 guidance © 2020 Trans Union LLC All Rights Reserved | 4
Slide 5: 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 Q2 2020 Earnings Release +8% January February March April May June July August September Oct.(1) 2019 2020 © 2020 Trans Union LLC All Rights Reserved | 5
Slide 6: U.S. Markets – Financial Services End-Market Trends
U.S. Markets – Financial Services End-Market Trends Online Credit Report Unit Volumes Mortgage Auto Additional trend data since Additional trend data since Q2 2020 Earnings Release Q2 2020 Earnings Release +59% (4%) January February March April May June July August September Oct.(1) January February
Slide 7: Emerging Markets Vertical Trends
Emerging Markets Vertical Trends Vertical Current Trends TransUnion Outlook Improved performance in front-end offset by Near-term soft volumes on front-end will impact back- Healthcare lower volumes on back-end end, but no long-term structural change to market Success with innovative products and co
Slide 8: Consumer Interactive Trends
Consumer Interactive Trends Consumers recognize value of credit and identity protection, credit monitoring and related financial education tools • Direct channel: ─ Revenue acceleration behind continued successful marketing to consumers focused on their credit health • Indirect channel: ─ Indirect p
Slide 9: International Quarterly Trends
International Quarterly Trends Year-over-Year Constant Currency Adj. Revenue Growth / (Decline) 16% 14% 10% 6% 3% Canada 4% (2%) Latin America 0% (5%) Asia Pacific (6%) India (8%) (12%) (8%) U.K. ex. Disposition (10%) (13%) Africa (21%) (22%) (23%) Q1 2020 Q2 2020 Q3 2020 Note: quarterly adjusted re
Slide 10: International Trends
International Trends Country or Portfolio Diversification Current Trends Region (Beyond Financial Services) Fraud solutions, government, Weak lending markets offset partially through U.K. gaming, affordability suite TU-specific strategies Fraud solutions, DTC offerings, Weak lending markets offset b
Slide 11: 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: renegotiated largest supplier agreements, enabling us to better focus our spend and add new features or services to facilitate growth Global Capabil
Slide 12: 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 Partnered with MX Technologies to incorporate consumer contributed data into our solutions Made minority equity investment and formed a commercial partnership agreement with FinLoc
Slide 13: We Have Built an Industry-leading Position in Media
We Have Built an Industry-leading Position in Media to Deliver Meaningful, Sustained Growth Acquisition May 2019 August 2020 October 2020 Date • Modern cloud-based platform • Products that allow us to work • Acquisition deepens our that marketers and media with clients to structure and understanding
Slide 14: Project Rise is Our Accelerated Technology Initiative
Project Rise is Our Accelerated Technology Initiative to Ensure that We Are Even More Effective, Efficient, Secure, Reliable, and Performant Project Rise enables: Global Operations: migrating our consumer call center to the cloud in Q4 Global Solutions: partnerships benefit from modern technolog
Slide 15: Consolidated Q3 2020 Highlights
Year-over-Year Change Revenue 1% Constant Currency Revenue 2% Consolidated Organic Revenue 1% Q3 2020 Organic Constant Currency Revenue 1% Highlights Adjusted EBITDA (4)% Constant Currency Adjusted EBITDA (3)% Organic Constant Currency Adjusted EBITDA (3)% Adjusted Diluted EPS 7% Note: For additiona
Slide 16: U.S. Markets Q3 2020 Year-over-Year Financial Highlights
Inorganic Organic Constant Reported FX Impact Impact Currency U.S. Markets Revenue 4% — — 4% Q3 2020 Financial Year-over-Year Services 11% — — 11% Financial Emerging (3)% — (1)% (4)% Verticals Highlights Adjusted (2)% — — (2)% EBITDA Note: Rows may not foot due to rounding. For additional informatio
Slide 17: International Q3 2020 Year-over-Year Financial Highlights
Organic Organic CC Inorganic Reported FX Impact Constant ex. Recipero Impact Currency Disposition Revenue (9)% +3% — (7)% (6)% International Q3 2020 Canada 2% +1% — 3% — Latin Year-over-Year America (18)% +13% — (5)% — Financial U.K. (7)% (4)% — (11)% (8)% Highlights Africa (22)% +12% — (10)% — Indi
Slide 18: Consumer Interactive Q3 2020 Financial Highlights
Consumer Inorganic Organic Constant Reported FX Impact Interactive Impact Currency Q3 2020 Revenue 3% — — 3% Year-over-Year Adjusted Financial 1% — — 1% EBITDA Highlights Note: For additional information, refer to the “Non-GAAP Financial Information” section on slide 2. © 2020 Trans Union LLC All Ri
Slide 19: 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 $1,032 $996 $1,000 $953 $917 6x $864 $800 $779 $814 • Ended Q3 with $554M of cash on hand and have been able to 5x 4.9x avoid drawing on our revolver $600 4.5x • Significant de-lev
Slide 20: Reinstating Q4 and FY 2020 Financial Guidance
Q4 2020 Financial Guidance Revenue $678M to $698M, down 1% to up 2% Reinstating • Organic CC down 1% to up 2% • Assumption: 1 point of M&A contribution, 1 point of Q4 and FY 2020 FX headwind Financial Adjusted EBITDA $255M to $271M, down 2 to 7% Guidance • Adjusted EBITDA margin down 140 to 260 bps
Slide 21: Reinstating Q4 and FY 2020 Financial Guidance
FY 2020 Financial Guidance Adjusted Revenue $2.696B to $2.715B, up 1 to 2% • Organic CC up 2 to 3% • Assumption: 1 point of FX headwind Adjusted EBITDA $1.031B to $1.047B, down 1 to 3% Reinstating • Adjusted EBITDA margin down 130 to 160 bps Q4 and FY 2020 • Assumption: 1 point of FX headwind Financ
Slide 22: Closing summary: managing COVID-19, investing for growth
• Continuing to effectively manage through the global stresses created by COVID-19 • Investing to position TransUnion for continued best-in-class growth • Prioritizing welfare of associates and broader communities © 2020 Trans Union LLC All Rights Reserved | 22
Slide 23: Q&A
Q&A © 2020 Trans Union LLC All Rights Reserved | 23