Slide 1: 3Q24 Earnings Review
3Q24 Earnings Review October 17, 2024
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation contains certain forward-looking information, including fourth quarter and full year 2024 guidance, to help you understand Equifax and its business environment. All statements that address operating performance and events or developments that we expect or
Slide 3: Non-GAAP Disclosure Statement
Non-GAAP Disclosure Statement This presentation contains certain non-GAAP financial measures, including adjusted EPS and adjusted EBITDA, which reflect adjustments for certain items that affect the comparability of our underlying operational performance. Adjusted EPS is defined as net income adjusted fo
Slide 4: Strategic Priorities: Strong 3Q Performance
Strong 3Q Performance … top line, margins, Cloud completion, NPIs, TWN Records Revenue $1.442B up 9% / 10% Organic C$ and Adj EPS $1.85 up 5%… EBITDA margins of 33%… Non-mortgage C$ revenue up 10% STRATEGIC PRIORITIES EWS Verifier non-mortgage up 19%, Non-mortgage up 9%, Total EWS up 7%, Government u
Slide 5: Strong 19% EWS Non-mortgage Verifier revenue growth
Strong 19% EWS Non-mortgage Verifier revenue growth... Government up very strong 29%... Talent Solutions up 9% EWS Revenue EWS revenue up 7%+ $2,316M $577M $560M $603M $613M $620M Verifier revenue +14% total Flat +3% +10% +1% +5% +7% ✓ Non-mortgage +19% total ● Government +29% ● Talent +9% ● Consumer
Slide 6: Strong 29% EWS Government revenue growth, $500M+ SSA contract extension
Strong 29% EWS Government revenue growth … $500M+ SSA contract extension Gov’t Benefits Enrollment¹ EWS Government Revenue TANF Housing 1M Key Growth Areas 5M SSA 12M ✓ SSA redetermination contract $5B extension signed 3Q SNAP 23M TAM ✓ CMS contract ($1.2B) CAGR 50%+ ✓ SNAP expansion CMS / ACA 38M ✓
Slide 7: Signed new strategic partnerships including Workday
Signed 6 new strategic partnerships including Workday Total US Records Companies on TWN ✓ TWN active records up 12% to 182M… up 14M YTD ~225M Unique Individuals (1) ✓ Total records up 11% to over CAGR 40% 700M supporting trended income / employment needs for Mortgage and Talent 3.8M Solutions custom
Slide 8: Completed customer migrations to new USIS Consumer Cloud
Completed customer migrations to new USIS Consumer Cloud USIS revenue up 12% USIS Revenue ✓ Mortgage +36%, inquiries +1% $1,658M $1,720M $428M $465M $478M $477M -7% +4% +5% +10% +7% +12% ✓ Consumer Solutions +17% ✓ Non-mortgage +5% ✓ B2B Non-mortgage +2% Non-mtg +5% ✓ Online B2B non-mortgage down -1
Slide 9: Strong 18% INTL growth led by Latam and Europe
Strong 18% INTL growth led by Latam and Europe Constant Currency Revenue Growth Key Growth Areas ✓ Significant Cloud transformation progress… Canada Consumer & 18% Commercial migrations to Data BVS(1) Fabric complete ✓ Brazil integration progressing well ✓ Strong double digit NPI 11% ✓ EFX Cloud-enab
Slide 10: Strong 13% NPI Vitality Index in 3Q
Strong 13% NPI Vitality Index in 3Q… 30 NPIs in Third Quarter Key Areas New Product Vitality Index1 % New Models Built Using AI / ML ✓ Strong 13% VI… broad based across all regions 80% ✓ EWS VI 16%... USIS VI LT 10% Goal accelerates to 9%… Intl LT VI 11% Goal ✓ Raising FY24 VI guidance to 11% ✓ Expe
Slide 11: Slight increase in USIS Mortgage inquiries in late September
Slight increase in USIS Mortgage inquiries in late September Mortgage Market Credit Inquiries (Hard Pulls) EFX 2024 Guidance Assumption YoY Growth 2015-2019 Average Level of Inquiries Number of Inquiries 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Full year 15% 12% (-6%) (-8%) 6.5% 47% (-7.5%)
Slide 12: 4Q24 Guidance
4Q24 Guidance 4Q 2024 $ vs 4Q 2023 % vs 4Q 2023 Revenue1 $1,438M - $1,458M $111M - $131M 8.4% - 9.9%1 Adjusted EPS1 $2.08 - $2.18 / share $0.27 - $0.37 / share 15.0% - 20.5% Revenue Adj. EBITDA Business Units Growth Rate Margins Guidance Specifics Workforce Solutions ~10% ~52% Depreciation and amorti
Slide 13: FY24 Guidance
FY24 Guidance 2024 $ vs 2023 % vs 2023 Revenue1 $5,700M - $5,720M $435M - $455M 8.3% - 8.6%1 Adjusted EPS1 $7.25 - $7.35 / share $0.54 -$0.64 / share 8.1% - 9.5% Revenue Adj. EBITDA Business Units Growth Rate Margins Guidance Specifics Workforce Solutions ~6% ~52% Depreciation and amortization ~$410M
Slide 14: $1B+ Revenue Upside in 2025+ from Mortgage Market Return to Normal
$1B+ Revenue Upside in 2025+ from Mortgage Market Return to Normal EFX Mortgage Credit Inquiries Down ~(-50%) EFX Mortgage Revenue ~$2.2B ~$1.1B 2025+ Opportunity ~$1.1B ~50% 2015 - 2019 Inquiry Level ~$1.1B mortgage revenue upside as market returns to 2015-19 levels Note: $1.1B mortgage revenue opp
Slide 15: Accelerating FCF Driving Better Cash Conversion, Leverage Reduction
Accelerating FCF Driving Better Cash Conversion, Leverage Reduction in LT Framework Cash Conversion 1 Cash Conversion Accelerating 95%+ ✓ Free Cash Flow accelerating ~80% ✓ Capex declining in LT framework to 6-7% of rev 62% ✓ 8-12% LT rev growth ✓ ~$1.1B Mortgage market 3.0M recovery… ~$700M EBITDA
Slide 16: The NewEFX LT Financial Framework
The NewEFX… LT Financial Framework LTFF Rev Growth Long Term Financial ✓ 8-12% LT revenue growth… New EFX 10% Vitality Index Framework ✓ Capital allocation… 1-2 pts EWS Organic revenue growth 7-10% from Bolt-on M&A focused 13-15% on EWS, ID&F and new data M&A contribution 1-2% sources… Capex 6 -7% o
Slide 17: Strong 3Q results summary
Strong 3Q results … top line, margins, Cloud completion, NPI, TWN Records … Completed US Consumer Cloud migrations 3Q Revenue and Adj EPS at top end of range… Non-mortgage C$ up 10%... Adj EBITDA margins 33% in line with guidance… capex declined in 3Q… leverage declined in 3Q approaching 2.6X by YE
Slide 18: PROPRIETARY | 18
PROPRIETARY | 18
Slide 19: Trevor Burns, Investor Relations
Trevor Burns • Investor Relations • trevor.burns@equifax.com Copyright © 2024, Equifax Inc. All Rights Reserved. Equifax is a registered trademark of Equifax Inc.
Slide 20: Investor Relations October 2024
Investor Relations October 2024
Slide 21: Index
Index Pages The New EFX 22-34 Workforce Solutions Overview 35-39 Supplemental Financial Information 40-51 PROPRIETARY | 21
Slide 22: The New EFX
The New EFX PROPRIETARY | 22
Slide 23: The New Equifax: we are just getting started
The New Equifax… we are just getting started EFX Revenue Growth The New EFX Yesterday Today Technology Legacy Cloud-native Data Siloed Single Data Fabric New EFX Innovation Process-driven AI / ML NPI Sales-centric Product-centric EWS #2 BU Largest business M&A Opportunistic Accelerated Security Comp
Slide 24: The EFX Cloud
The EFX Cloud PROPRIETARY | 24
Slide 25: EFX accelerating AI capabilities, industry leading proprietary data, EFX Cloud
EFX accelerating AI capabilities… industry leading proprietary data, EFX Cloud… driving innovation Proven Results US Proprietary Data Assets % of New Models Built Using AI / ML 182M Active Records, ✓ EFX Cloud w/ Single Data ~700M Total Records Fabric… Google Vertex, Ignite ✓ Leader in explainable A
Slide 26: A Robust Foundation for Comprehensive Solutions
A Robust Foundation for Comprehensive Solutions Insights are Created Through Connected and Differentiated Data Consumer Telco, Cable Employment Consumer Education & Credit & Utility & Income Consented Credentials Traditional Unique Direct from Information Degree, & Specialty National Data Employers O
Slide 27: Broadening Our Global Presence in Important Growth Markets
Broadening Our Global Presence in Important Growth Markets CANADA UNITED KINGDOM UNITED STATES IBERIA INDIA Key Revenue Drivers Consumer Credit Brazil Commercial Credit LATAM Employment & Income AUSTRALIA NEW ZEALAND Identity & Fraud Analytics Collections PROPRIETARY | 27
Slide 28: A Strong Portfolio of Businesses
A Strong Portfolio of Businesses 2023 Business Mix 2023 Vertical Mix Other 3% 2023 Revenue Growth 2023 Adjusted Resellers 3% ID&F (Constant $) EBITDA Margin 6% Healthcare 2% International +12% 26.5% Financial 19% Corporate US Telco 2% (Employers) Information +4% 34.5% 15% Commercial 5% Solutions Con
Slide 29: Workforce Solutions (WS)
Workforce Solutions (WS) Accelerating growth through The Work Number expansion, advanced analytical solutions, and vertical expertise across direct and indirect channels 2023 Revenue Mix - $2,316M Focus Areas Data HUB Innovation Acquisitions Other 1% • Grow active TWN • Grow adoption and • Augment E
Slide 30: EWS Long Term Growth Framework
EWS Long Term Growth Framework Organic Revenue Growth % LTFF Growth Drivers Employer ● The Work Number® record growth thru Verifier New EFX Services direct clients, strong partnerships and 2% 13-15% alternative data 4% ● Growth in new verticals: Talent, 9-11% Government 3% 4% ● Robust set of growth l
Slide 31: US Information Solutions (USIS)
US Information Solutions (USIS) Strengthen our foundation of assets and capabilities while investing in solutions and adjacencies that accelerate sustainable growth in existing and new markets Focus Areas 2023 Revenue Mix - $1,720M Identity & Fraud Core Markets Other 5% • Fuel growth from Kount & •
Slide 32: USIS Long Term Growth Framework
USIS Long Term Growth Framework Organic Revenue Growth % LTFF Growth Drivers New EFX ● Enable the digital client experience: ● “Say Yes More” and frictionless, 2-3% 6-8% personalized experiences 5-7% ● Be the leader in Identity solutions ~2% ● New product innovation enabled by ~1% differentiated data
Slide 33: International (INTL)
International (INTL) Address customer needs through unique data assets to drive insights delivered via strategic technology platforms complemented by M&A for geographic and domain expansion 2023 Revenue Mix - $1,229M Focus Areas Data & Insights Consumer Focus AreasB2B Commercial B2B Other 6% ● Drivi
Slide 34: INTL Long Term Growth Framework
INTL Long Term Growth Framework Organic1 Revenue Growth % LTFF Growth Drivers New EFX ● EFX Cloud-enabled innovation 8-10% 7-9% ● Differentiated data and insights 1.0-1.5% 1.5-2.0% ● NPI acceleration across INTL platforms 2.5-3.0% Regions ● Global platforms in local markets range between ● Bolt-on M&
Slide 35: Workforce Solutions Overview
Workforce Solutions Overview PROPRIETARY | 35
Slide 36: Unique Dual-sided Business Model Driving Growth
Unique Dual-sided Business Model Driving Growth Supply Networks Dual-sided Business Model Demand Networks 716M TWN Employer Verification 500M+ records services Insights services TWN and 3.8M inquiries Record analytics contributors Alliance partners Employment System-to-System 43% Records via direct c
Slide 37: Multiple Drivers for EWS Revenue Growth
Multiple Drivers for EWS Revenue Growth Number of Contributors (Thousands) 2024 Growth Drivers +0.9M increase 3Q24 vs. 3Q23 ● TWN Record Growth ● Penetration, more pulls ● New Products / Use cases Number of Records +19M increase (Millions) 3Q24 vs. 3Q23 ● Data Hub Expansion 134M Unique SSNs ● M&A In
Slide 38: ~$13B EWS Growth Opportunity
~$13B EWS Growth Opportunity TAM ($B) Market Share % EWS Revenue Opportunity EFX Other Players / Manual / Lack of Adoption $15B Talent Sol $5B 10% 90% ~$2B Empl. Svcs 16% 84% Government $5B 15% 85% ~$13B 20% 80% ~$11B Verification Employer $2B Housing1 $1.5B 40% 60% $2.3B Cons. Fin.2 $1.5B 15% 85% To
Slide 39: EWS Non-Mortgage Products and Trends
EWS Non-Mortgage Products and Trends 3Q24: $184M; +29% 3Q24: $128M; +9% 3Q24: $95M; -19% Government Talent Solutions Employer Services Increase CMS penetration, expand Drive utilization and leverage new Grow adoption of I-9 & Federal and State contracts products based on industry needs Onboarding pr
Slide 40: Supplemental Financial Information
Supplemental Financial Information PROPRIETARY | 40
Slide 41: Expanding TAM and Broadening Revenue Base
Expanding TAM and Broadening Revenue Base EFX TAM Up 3x +$1.8B Non-Mtg Rev Since 2019 $50B ~$5.7B Brazil US – Empl. Svcs /HR $5.1B $5.3B US - Govt US - Talent ~$4.6B $3.5B $4.3B Mtg ID&F $3.9B $2.8B Non-mtg Traditional Credit Bureau Note: This slide contains forward-looking information, including 20
Slide 42: 3Q 2024 Equifax Results
3Q 2024 Equifax Results Dollars in millions (except per share amounts) 3Q24 3Q23 Reported Revenue $1,441.8 $1,319.1 Growth % 9.3% 6.0% Local Currency Revenue $1,468.5 $1,325.3 Growth % 11.3% 6.5% GAAP Net Income $141.3 $162.2 Growth % (12.9%) (2.1%) Adjusted EBITDA Margin 32.7% 33.1% Growth % -40 bp
Slide 43: 3Q 2024 Business Unit Performance
3Q 2024 Business Unit Performance Reported Local Currency Adj. EBITDA Margin Adj. EBITDA Margin Revenue Growth Revenue Growth Growth / (Decline) Workforce Solutions 7.4% 7.4% 51.6% 71 bps Verification Services 14.3% 14.3% N/A N/A Employer Services (19.3%) (19.3%) N/A N/A USIS 11.9% 11.9% 33.9% (33 bp
Slide 44: 3Q 2024 International Highlights
3Q 2024 International Highlights Geographic Region Financial Performance Commentary Revenue: $345M, +18% International Adj. EBITDA: $96M, 27.7% B2B Consumer: +4% Asia Pacific Revenue: $89M, +2% B2B Commercial: 0% European Credit Reporting Business: +7% B2B Consumer: +5% Europe Revenue: $95M, +9% D2C
Slide 45: FY 2023 Business Unit Performance
FY 2023 Business Unit Performance Reported Local Currency Adj. EBITDA Margin Adj. EBITDA Margin Revenue Growth Revenue Growth Growth / (Decline) Workforce Solutions (0.4%) (0.4%) 51.0% (35 bps) Verification Services (1.3%) (1.3%) N/A N/A Employer Services 3.3% 3.3% N/A N/A USIS 3.8% 3.8% 34.5% (230 b
Slide 46: 3Q2024 General Corporate Expense, Capital Spending, D&A, Interest
3Q2024 - General Corporate Expense, Capital Spending, D&A, Interest Expense and Other Income and Expense, excluding non-recurring costs General Corporate Expense (Including D&A)* – 3Q24 Capital Expenditures (incurred) in 3Q24 were $123M, down from $146M in $123M in 3Q24, as compared to $104M in 3Q23
Slide 47: 4Q24, FY24 & FY25 Guidance: Corporate Expense, Capex, D&A, Interest
4Q24, FY24 & FY25 Guidance - General Corporate Expense, Capital Spending, D&A, Interest Expense and Other Income and Expense, excluding non-recurring costs General Corporate Expense* – 4Q24 Capital Expenditures (incurred) in 4Q24 are expected to be ~$105M, down Expected to be ~$124M in 4Q24 compared
Slide 48: 2022-2025 Effective Income Tax Rate
2022-2025 Effective Income Tax Rate The effective tax rate used in calculating our GAAP and Adjusted EPS is as follows: GAAP EPS Adjusted EPS 1Q 2023 25.4% 26.1% 2Q 2023 27.4% 27.0% 3Q 2023 13.9% 26.0% 4Q 2023 26.4% 26.0% FY 2023 23.2% 26.2% 1Q 2024 24.3% 26.8% 2Q 2024 26.4% 26.5% 3Q 2024 26.4% 27.8%
Slide 49: Cash Flow and Other Metrics
Cash Flow and Other Metrics Dollars in millions 3Q24 3Q23 YTD 20242 YTD 20232 FY 2023 FY 2022¹ Operating Cash Flow $479.5 $381.7 $999.7 $794.7 $1,116.8 $757.1 Capital Expenditures (Cash) ($124.0) ($134.3) ($392.6) ($455.6) ($601.3) ($624.5) Free Cash Flow $355.5 $247.4 $607.1 $339.1 $517.5 $132.6 Ca
Slide 50: Strong balance sheet and liquidity
Strong balance sheet and liquidity September 30, 2024 Cash $468.2M Available Borrowing Capacity¹ $1,498.6M Total Liquidity $1,966.8M Leverage Ratio for 3Q24² 2.76x Credit Ratings BBB (S&P) / Baa2 (Moody’s) Next debt maturity: 2.60% $750M Sr Notes Due 12/1/2024 1. $1.5 billion Revolver 2. Covenant co
Slide 51: Trevor Burns, Investor Relations
Trevor Burns • Investor Relations • trevor.burns@equifax.com Copyright © 2023, Equifax Inc. All Rights Reserved. Equifax is a registered trademark of Equifax Inc.