Transunion · NYSE:TRU
Transunion — Deutsche Bank Leveraged Finance Conference 2014
30 slides from Transunion's conference presentation, Sep 30, 2014
Slide 1: Deutsche Bank Leveraged Finance Conference
Exhibit 99.1 September 30, 2014 Deutsche Bank Leveraged Finance Conference Al Hamood Chief Financial Officer
Slide 2: Important Information
Important Information This presentation is confidential and includes forward-looking statements. Certain information and statements included in this presentation are necessarily based upon estimates and assumptions that, while prepared in good faith and considered reasonable by management, are inher
Slide 3: Agenda
Agenda I. Company Overview II. Segment Overview III. Key Credit Strengths IV. Financial Overview V. Q&A 3 ©2014 TransUnion Corp All Rights Reserved
Slide 4: I. Company Overview
TransUnion. I. Company Overview
Slide 5: Overview of TransUnion
Overview of TransUnion 5 • Global leader in information and risk management • For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering high quality data, and integrating advanced analytics and decision-making capabilities • For consumers, Tran
Slide 6: TransUnion Business Overview
6 TransUnion Business Overview ©2014 TransUnion Corp All Rights Reserved
Slide 7: Strategic Plan to Drive Long Term Growth
Strategic Plan to Drive Long Term Growth Mission Objective To help organizations optimize their risk-based decisions and enable consumers to understand and manage their personal information Become a superior global risk information solutions provider that delivers sustained, market-leading organic g
Slide 8: Growth Initiatives
• Growth Initiatives: Investments to diversify and differentiate our data and analytic capabilities and to expand our suite of offerings to serve existing and new customers and markets - Financial Services: Acquire new and alternative data assets to expand our offerings and in attractive adjacencies
Slide 9: Strategic Investments to Support Long-Term Growth
• IT Platform: Upgrades to our IT platform will enable advanced technology capabilities, promote innovation, drive operational efficiencies and enhance customer satisfaction • Call-Center Consolidation: Establish a “super call-center” to help ensure consistent and high-quality customer service to co
Slide 10: Impact of Strategic Investments
Impact of Strategic Investments 10 ©2014 TransUnion Corp All Rights Reserved Description/Major Focus Investment Completion Investment Type OpEx CapEx Value Impact Top Line Bottom Line Acquisitions (M&A Integration) X X X X X X X X X X X X • TLO • CIBIL • eScan • Zipcode/Crivo 2016 2015 2014 2014 X X
Slide 11: II. Segment Overview
TransUnion. II. Segment Overview
Slide 12: Segment Overview: USIS
12 Segment Overview: USIS Core Competencies & Assets USIS Drivers Reported Revenue Service Lines Online Data Services Credit Marketing Services Decision Services • Real-time credit reports & scores delivered to businesses primarily for underwriting new accounts • Products that help businesses acquir
Slide 13: Segment Overview: International
Segment Overview: International 13 • One of the two significant credit reporting agencies • Only global agency with consumer credit reporting agency ($ in millions) Notes: (1) International Monetary Fund, World Economic Outlook Database, October 2013 GDP Growth (y/y, constant price)(1) D e v e lo p
Slide 14: Segment Overview: Interactive
Segment Overview: Interactive 14 Direct Indirect • Primarily through subscription based services through our website • Primarily through wholesale strategic partners who combine our services with their own offerings Consumer Spending(1) Notes: (1) Market size estimates based on Javelin 2013 market s
Slide 15: III. Key Credit Strengths
TransUnion. III. Key Credit Strengths
Slide 16: Key Credit Highlights
Key Credit Highlights 16 Global Leader with Sustainable Competitive Advantage • One of three global players – similar and stable market share in core business in the U.S. • Significant impediments to replicating database, analytics, and technology lead to a sustainable competitive advantage • Unique
Slide 17: Global Leader with Sustainable Competitive Advantage
• One of only three global credit reporting agencies • No material market share shift over time and approximately same U.S. market presence – The 3 largest credit reporting agencies have similar market share in the U.S. • The largest U.S. financial services customers typically use the services of al
Slide 18: Well-Diversified Customer Base with High Switching Costs
18 Well-Diversified Customer Base with High Switching Costs Long-Standing Customer Relationships Low Customer Concentration • Deep integration with customer core operating systems – high risks of switching • Have >10 years with each of top 10 global financial services customers • Top 10 customers ac
Slide 19: Scale, Stability, Visibility and Cash Flow
Scale • One of the three global credit reporting agencies; with databases that host data on 500 million consumers and businesses; processes ~2 billion updates a month in the U.S. • TTM June 2014 Adjusted Revenue of $1,261 million(1) • TTM June 2014 Further Adjusted EBITDA of $426 million(1) 19 • Lon
Slide 20: Recent Acquisitions – eScan
20 Area Recent Acquisitions – eScan (Q3 2013) • Market leader in the automated, post-service eligibility market • Identifies insurance coverage which a patient has, but was missed in the service process • Automated platform provides a compelling ROI to hospitals traditional manual processes • Nation
Slide 21: Recent Acquisitions – TLO
21 Area Recent Acquisitions – TLO (Q4 2013) ©2014 TransUnion Corp All Rights Reserved • Leading company in the risk information and analytics industry • Proprietary technology platform used to build and deliver alternative data solutions • TLOxp® is powerful technology for locating, researching and
Slide 22: Recent Acquisitions – CIBIL
22 Area Recent Acquisitions – CIBIL (Q2 2014) ©2014 TransUnion Corp All Rights Reserved • India’s leading credit information company, located in Mumbai, India • TransUnion has been active in the Indian marketplace since 2001 • TransUnion worked with CIBIL to develop the market’s first generic scorin
Slide 23: IV. Financial Overview
TransUnion. IV. Financial Overview
Slide 24: Strong historical performance while investing for growth
Notes: See Appendix for schedule on “as reported” to “as adjusted” financial statement reconciling items. (1) Further Adjusted EBITDA is adjusted for acquisitions and certain items. (2) Further Adjusted EBITDA margin is based on Adjusted Revenue and Further Adjusted EBITDA. See Appendix for more det
Slide 25: Capital Expenditures and Unlevered Free Cash Flow
Capital Expenditures and Unlevered Free Cash Flow are highly stable when normalized for key strategic investments 25 ©2014 TransUnion Corp All Rights Reserved ($ in millions) Capital Expenditures Unlevered Free Cash Flow Normalized CapEx % of Adj Rev 6% 5% 7% • 2014 remains a year of heavy CapEx inv
Slide 26: Conclusion
26 Conclusion • TransUnion is a global leader in credit information and risk management solutions with an attractive, sustainable business model • TransUnion owns/has access to critical data and analytical capabilities demanded by a relatively stable and diverse customer base • Strong presence in me
Slide 27: TransUnion
TransUnion.
Slide 28: Appendix
TransUnion. Appendix
Slide 29: Historical Financial Summary
Historical Financial Summary 29 ($ in millions) Notes: Please consult the following page for schedule on “as reported” to “as adjusted” financial statement reconciling items. (1) Unlevered Free Cash Flow Conversion Rate defined as Further Adjusted EBITDA less capital expenditures as a percentage of
Slide 30: Summary of Further Adjustments
Summary of Further Adjustments 30 ($ in millions) Notes: For purposes of this presentation Adjusted Revenue is only used to calculate Further Adjusted EBITDA Margin (1) Other items related to: M&A integration expense, consulting costs, executive restructuring, IT and data center investments, minorit
TransUnion Holding Company — Deutsche Bank Leveraged Finance Conference 2014 on 6ix