Gb Group Plc · LSE:GBG
Gb — GBG — Investor Day (January 2023)
57 slides from Gb's investor day presentation, Jan 19, 2023
Slide 1: Uniquely positioned to capture growth
19 January 2023 Uniquely positioned to capture growth
Slide 2: Agenda
Agenda Capital markets event Introduction Chris Clark Purpose of today Identity: The fabric of trusted commerce To focus on the mid-term External industry analyst: Julie Conroy, Aite Novarica growth opportunities and how Our capabilities to lead GBG is uniquely positioned to Gus Tomlinson, Kartik Ve
Slide 3: Meet today's GBG presenters
Hosts Meet today’s GBG presenters Chris Clark Gus Tomlinson Kartik Venkatesh Jose Caldera Chief Executive Chief Product Officer, Chief Technology Officer, Chief Product Officer, Officer EMEA Location Global Products Mark Mamone Chris Luttrell Dev Dhiman David Ward Chief Information CEO, Managing Dir
Slide 4: Introduction
Introduction Chris Clark Chief Executive Officer Capital markets event – 19 January 2023 4
Slide 5: Our purpose and vision
Our purpose To build trust in a digital world Our vision To create a world where everyone can transact online with confidence Capital markets event – 19 January 2023 5
Slide 6: A leader in the identity and location intelligence markets
Our business today A leader in the identity and location intelligence markets • 30+ years of experience in location intelligence, identity • Increasing convergence over time to meet the end-to-end verification and fraud & compliance management digital need to help good consumers and stop bad actors
Slide 7: A clear and consistent strategy to drive growth
Our strategy Creating a differentiated market-leading capability and global reach that we will continue to develop A clear and consistent Pursue M&A strategy to options drive growth Accelerating our development Focus on strategic growth across sectors E.g. Public sector, Healthcare & US Gaming Furth
Slide 8: Growth through a geographic and sector focus
Our strategy Creating a global footprint Growth through a Expansion into geographic Grow Americas Europe Expansion into and sector South-East Asia focus Exploring LATAM Grow ANZ Expanding the sectors that we operate in Financial Public services Technology Retail / Gaming Professional Travel & servic
Slide 9: Building trust through a combination of relevant capabilities
Our strategy Data Building trust The best, most relevant and through a compliant datasets combination of relevant Technology capabilities The richest document and leading biometrics capability and ability to handle billions of transactions globally People The strongest team, market experts with trus
Slide 10: Identity: The fabric of trusted commerce
Identity: The fabric of trusted commerce Julie Conroy | Capital markets event – 19 January 2023 10
Slide 11: Agenda
Identity: The fabric of trusted commerce • Key trends driving investment • Identity: Critically important Agenda and difficult to master • Future view Proprietary and confidential to Aite-Novarica Group Capital markets event – 19 January 2023 11
Slide 12: Key trends driving buyers' identity and financial crime investments
Identity: The fabric of trusted commerce Key trends driving buyers’ identity and financial crime investments Industrialisation Competitive Digital of fraud and impetus of Regulation acceleration financial crime reduced friction Proprietary and confidential to Aite-Novarica Group Capital markets even
Slide 13: Market sizing: Bite-sized chunks are required for accuracy
Identity: The fabric of trusted commerce Market sizing: Bite-sized chunks are required for accuracy Proprietary and confidential to Aite-Novarica Group Capital markets event – 19 January 2023 13
Slide 14: Identity is at the heart of trusted transactions
Identity: The fabric of trusted commerce Identity is at the heart of trusted transactions • The identity fabric is complex and essential to the risk assessment of new and ongoing relationships and transactions for consumers and businesses. • Identity verification technologies include verification of
Slide 15: PII and credentials are readily available on the dark web
Identity: The fabric of trusted commerce PII and credentials are readily available on the dark web Proprietary and confidential to Aite-Novarica Group Capital markets event – 19 January 2023 15
Slide 16: Consumers make it all too easy for the bad guys
Identity: The fabric of trusted commerce Consumers make it all too easy for the bad guys Q. How many unique passwords do you use for your online accounts Q. Do you use a unique password (that you don’t use anywhere else) for your online banking account? (banking, shopping, social media, etc.)? (Amon
Slide 17: Failure to adequately risk-assess identity is costly for firms
Identity: The fabric of trusted commerce Failure to adequately risk-assess identity is costly for firms Rising fraud losses: Reputational Customer Application fraud, risk and fines retention account takeover, scams Proprietary and confidential to Aite-Novarica Group Capital markets event – 19 Januar
Slide 18: Managing fraud: How this impacts the market
• Identity: Identity: The fabric of trusted commerceThe Fabric of Trusted Commerce Managing fraud: How this impacts the market Exposes gaps in security control frameworks Innovation and expansion of digital sales 2 1 and service platforms Stimulates new schemes, increases Damages client experience,
Slide 19: Market: Alignment with the kill chain
Identity: The fabric of trusted commerce Market: Alignment with the kill chain “Up-stream” identity verification controls: prophylactic, mitigate Identity authentication controls: less Transaction controls: Remediation controls: exception application fraud, synthetics, mules, and first party fraud p
Slide 20: Consumers have a strong preference for choosing their method of authentication
Identity: The fabric of trusted commerce I strongly prefer to choose my authentication mechanisms myself Consumers have a strong preference for choosing their I prefer to choose my authentication mechanisms myself method of authentication I have no preference To what extent would you prefer to choos
Slide 21: The orchestration hub has emerged as a key area of focus
Identity: The fabric of trusted commerce Vendor A Vendor B Vendor C Vendor D Vendor E Vendor F Vendor G Communication layer The orchestration hub has emerged as Scoring engine a key area of focus Communication layer Issuer or merchant Proprietary and confidential to Aite-Novarica Group Capital marke
Slide 22: A holistic understanding of identity is the path forward
• Identity: Identity: The fabric of trusted commerceThe Fabric of Trusted Commerce A holistic understanding of identity using deterministic and probabilistic methods is the path forward Proprietary and confidential to Aite-Novarica Group Capital markets event – 19 January 2023 22
Slide 23: Market analyst view: About Aite-Novarica Group
Market analyst view About Aite-Novarica Group An advisory firm providing mission-critical insights on technology, regulations, markets, and operations to hundreds of banks, insurers, payments providers, and investment firms - as well as the technology and service providers that support them. Compris
Slide 24: Our capabilities to lead
Gus Tomlinson Kartik Venkatesh Our capabilities Chief Product Officer, EMEA Chief Technology Officer, Location to lead Mark Mamone Jose Caldera Chief Information Officer Chief Product Officer, Global Products Capital markets event – 19 January 2023 24
Slide 25: Our solutions today
Our capabilities Product Data Technology Customer choice Our solutions today Identity Location Fraud Capital markets event – 19 January 2023 25
Slide 26: Our core solutions are business critical to our customers
Our capabilities Product Data Technology Customer choice Our core Our location, identity and fraud solutions combine to create solutions are differentiated experiences, enabling our customers to: business critical to our customers Onboard more good Stop fraud as early as Comply with regulations cust
Slide 27: Delivered through world-class data, technology and trust experts
Our capabilities Product Data Technology Customer choice Delivered Global reach, local approach Standalone and layered capabilities through world- class data, Example: Local knowledge of identity delivered globally through our solution enables a Example: Built on IDology’s expertise to combine alter
Slide 28: GBG provides differentiation through our understanding of data
Our capabilities Product Data Technology Customer choice GBG provides differentiation through our understanding of data Focused investment on developing relevant capabilities with: • Global coverage • Data granularity • Configurability • Speed, flexibility and ease of use Driving the most accurate a
Slide 29: Creating the competitive advantage to drive long-term growth
Our capabilities Product Data Technology Customer choice Creating the We can build on the data insights we provide today... competitive advantage to Increasing breadth Increasing breadth and Volume of and depth of our depth of our data transactions we drive long-term customer base partnerships handl
Slide 30: Using AI and machine learning to improve our performance
Our capabilities Product Data Technology Customer choice Using artificial Current applications: intelligence (AI) and machine Threat analysis: In identity Documents: Used Location intelligence: To fraud ecosystems - extensively to detect understand user intent and learning (ML) to Recognised as an t
Slide 31: How we are helping our partners solve business problems
Video - The customer view Product Data Technology Customer choice How we are helping our partners to solve business problems for their customers Scott Brokaw Director of Product Management – Data and AI IBM Capital markets event – 19 January 2023 31
Slide 32: World-class technology enables our long-term growth
Our capabilities Product Data Technology Customer choice World-class technology Focused on delivering scalable and easy-to-use solutions enables our 500+ 85% long-term Technology professionals globally of team focused on product engineering & innovation growth 22bn (Approx.) £50m (FY23 approx.) Tota
Slide 33: Leveraging our strong technology foundations
Our capabilities Product Data Technology Customer choice Leveraging Delivered significant change and progress towards a composable GBG platform and capability-led architecture our strong technology Before foundations Product and regional capability silos Now Integrated & shared capabilities Future R
Slide 34: Delivering customer value through our capability-led approach
Our capabilities Product Data Technology Customer choice Delivering customer value through our Big data insight Capability-led Leading-edge with AI & ML product engineering document technology capability-led approach Best-in-class Faster product releases partnerships and greater innovation Autoscali
Slide 35: How the breadth of our offering provides customer choice
Video - The customer view Product Data Technology Customer choice How the breadth of our offering provides customer choice to help solve their business problems Carenza Harvey Senior Product Manager Onto Capital markets event – 19 January 2023 35
Slide 36: Our approach enables customer choice
Our capabilities Product Data Technology Customer choice Our approach enables customer choice Our offering combines flexibility around consumption, integration and performance Customer deployment models Customer integration types On-premise Managed SaaS API Low Code No Code Control Control Control S
Slide 37: Providing capabilities across the full identity lifecycle
Our capabilities Product Data Technology Customer choice Providing capabilities Our depth of offering means …building on our expertise …which will drive we can provide multiple and technology to deliver across the products to each customer through the identity lifecycle sustained global growth full
Slide 38: Executing on the market opportunity
Executing on the market opportunity Dev Dhiman Chris Luttrell Managing Director, CEO, APAC Americas Capital markets event – 19 January 2023 38
Slide 39: Set apart by global scale and a significant investment in local presence
Global reach with strong local execution How we execute • >300 sales professionals focused on tier 1 – 2 customers Set apart by • • Dedicated new business and customer success teams Skilled pre-sales capability and implementation teams global scale and a A diversified Experts for complex use cases c
Slide 40: Executing on the market opportunity
How we execute Our existing capability and strong positions in attractive markets mean we can pursue growth across all dimensions Executing on the market Different instruments at opportunity our disposal to capture Our growth tool kit the market potential Pursue M&A opportunities Geographic expansio
Slide 41: Operating in a vast market with significant growth potential
GBG APAC Our differentiators: In-market presence and market leadership positions Operating in a Product innovation vast market GBG Alerts – A market first with a highly differentiated offering in the wake of the data breaches in Australia with significant Deploying Acuant solutions – Cross-selling P
Slide 42: Helping customers onboard safely and manage risk proactively
Video - The customer view How we are helping our customers to onboard safely and manage risk proactively Michelle Reinisch Director of Business Management & Financial Crime AMP Bank Capital markets event – 19 January 2023 42
Slide 43: Strong experience and heritage in the world's largest market
GBG Americas Diversity of the US market creates an opportunity for continued growth Strong US consumers are increasingly GBG is well-positioned with experience & concerned about fraud but have relevant capabilities to capture confidence in identity processes the enduring market demand heritage in th
Slide 44: Helping customers onboard safely and manage risk proactively
Video - The customer view How we are helping our customers to onboard safely and manage risk proactively Michelle Prince-Glenn Head of Strategy and Operations Central AMS Capital markets event - January 2023 44
Slide 45: Executing on the opportunity ahead
GBG Americas Clear plans for the Americas utilising our growth tool kit Executing on Enhancing our go-to-market Focused on channel partners Geographic expansion the opportunity ahead Go-to-market investment Our partner programs enable Opportunities to expand our focused on expanding sales diversifie
Slide 46: We maintain momentum with our market-leading capability
How we execute A full suite of end-to-end capabilities for all stages of the identity lifecycle We maintain momentum Localised product innovations that with our add new data and functionality market-leading Enter new customer sectors through capability direct and channel partners Strong customer suc
Slide 47: Helping customers onboard safely and manage risk proactively
Video - The customer view How we are helping our customers to onboard safely and manage risk proactively Su Young Chun Chief Compliance Officer & Head of Customer Support Payfare Inc. Capital markets event – 19 January 2023 47
Slide 48: Delivering strong financial returns
Delivering strong financial returns David Ward Chief Financial Officer Capital markets event – 19 January 2023 48
Slide 49: Significant structural growth underpinned by strong capabilities
Finance section Significant structural growth underpinned by strong capabilities Building trust through a combination of relevant capabilities Expect structural growth through the economic cycle Competitive Digital Fraud and impetus to Regulation acceleration financial crime reduce friction Data Tec
Slide 50: Executing a strategy of profitable growth with diversification
Finance section Our track record Revenue (£m) Adjusted Operating profit (£m) Executing a 300 100 15.2% 17.5% strategy of 250 200 FY18-22 CAGR 80 FY18-22 CAGR profitable 150 60 40 growth with 100 20 50 diversification 0 0 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Driven through a combination
Slide 51: A sustainable business model with strong cash generation
Finance section A sustainable >100% >90% business model Average cash conversion over the last 5 years High levels of recurring/repeatable revenue with strong Two key commercial models cash generation Double- digit High % recurring / Subscription Transaction/ revenue repeatable consumption Other reve
Slide 52: Strong customer base drives cross-sell opportunities
Finance section Revenue % by customer group¹ Number of customers by top revenue bucket¹ Customers Customers Strong customer <£100k revenue >£1m revenue ~340 29% base drives 30% cross-sell Revenue per customer opportunities 14% ~40 ~50 Customers 27% Customers Leveraging our global >£100k - >£500k - >
Slide 53: Continuing our strong track-record for profitable growth
Finance section Committed to our mid-term financial targets Continuing our strong track- Adjusted operating Revenue growth Cash conversion record for margin profitable double-digit 12-14% 23-24% ~95% growth Our confidence is underpinned by: Compelling Strong competitive Our track record of Diversifi
Slide 54: Capital allocation that supports sustainable growth
Finance section Short-term focus on repaying debt Capital Strong balance sheet and high cash generation allocation Debt Leverage of up to ~2x EBITDA that supports sustainable Our balanced approach enables GBG to become a global leader delivering sustainable growth growth 1. Investing 2. Progressive
Slide 55: M&A: An important component to drive our strategic development
Finance section Successfully utilised M&A to expand our customer proposition, geographic reach and technology capabilities M&A: An Strong M&A execution important Focused on four attributes component to Technology New geography 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 drive our New cust
Slide 56: Confidence in continuing GBG's growth story
Summary 2026: Confidence in Revenue: ~ £400m Adjusted profit: ~ £100m continuing • A truly global business • Diverse sector exposure; 5 sectors contributing >10% GBG’s growth • Complete platform experience offering solutions across the consumer lifecycle story September 2022 (LTM basis): Pro forma r
Slide 57: Q&A
QSA GBG