Slide 1: Investor Presentation: Full Year Results to 31 March 2019
Investor Presentation Full Year Results to 31 March 2019 Chris Clark Dave Wilson CEO CFO & COO
Slide 2: GBG at a Glance
GBG at a Glance In a world where we GBG helps organisations Organisations use GBG to To do this GBG accesses increasingly transact with quickly validate and verify offer a better user data from a broad range people we never meet, GBG the identity and location of experience, protect of global partner
Slide 3: Operational Highlights
Operational Highlights Growth is balanced and diversified Customers People Products Brand • Good new business and • 90% of employees • Broadened our data portfolio • Launch of Loqate international expansion recommend GBG as a great place to work • Exciting product innovation • Identity Capital Marke
Slide 4: Performance Highlights
Performance Highlights Strong international growth and trading performance. Revenue from Active Customers Revenue Adjusted International operating profits1 customers 45% >19k £143.5m £32.0m 2018: 34% 2018: >17k 2018: £119.7m 19.9% ▲ 2018: £26.3m 21.7% ▲ Employees who Operating margin Basic adjusted
Slide 5: GBG acquired IDology for $300m (£236m) in Feb 19
GBG acquired IDology for $300m (£236m) in Feb 19 IDology is a US domestic provider of Verification, Authentication & Fraud Prevention solutions • IDology has over 500 customers and derives over 70% of its revenue from financial services related businesses. • 70 people joined the GBG team from a sing
Slide 6: GBG acquired VIX Verify Global for £20.6m in Oct 18
GBG acquired VIX Verify Global for £20.6m in Oct 18 VVG is an Australian provider of IDV and Location Intelligence software. • Over 400 customers across multiple sectors, including Australia Post, SportsBet, Western Union, Optus, Vodafone, CBA. • Over 70 people joined the GBG team, with core IDV Loc
Slide 7: How We've Performed
How We’ve Performed 7 Investor Presentation June 2019
Slide 8: Growth Track Record
Growth Track Record Revenue (£m) Adjusted operating profit (£m)1 150 7 year CAGR = 24.0% 40 7 year CAGR = 36.3% 143.5 30 100 119.7 32.0 20 26.3 87.5 50 73.4 17.0 57.3 10 13.4 41.8 10.8 36.3 7.2 0 0 5.5 YE Mar 13† YE Mar 14 YE Mar 15 YE Mar 16 YE Mar 17 YE Mar 18 YE Mar 19 YE Mar 13 YE Mar 14 YE Mar
Slide 9: Group Income Statement
Group Income Statement 2019 2018 Year ended 31 March £m £m Margins Revenue 143.5 119.7 +19.9% • Adjusted operating margin is stable at 22.3% Cost of sales (36.1) (27.1) • Adjusting 2018 for the large perpetual licence Gross profit 107.4 92.6 +16.0% • Underlying revenue last year would have been £117
Slide 10: Growth
Growth Underlying organic growth and weighting of revenue Underlying constant currency organic growth Year ended 31 March 2019 2018 Growth 11.5% (2018: 13.6%) • £m £m £m £m Group revenue 143.5 119.7 19.9% Acquired revenue in past 12 months (13.4) Organic revenue 130.1 119.7 8.7% Underlying1 organic
Slide 11: Cash Flow Statement
Cash Flow Statement 12 months ending Adjusted EBITDA cash conversion ratio 2019 2018 31 March £m £m Variance (excl. paid exceptional items) Adjusted EBITDA 34.1 28.7 5.4 92.7% Working capital (2.5) 4.4 (6.9) 2018: 114.6% Adjusted Operating Cash Flow 31.6 32.9 (1.5) Exceptional costs paid (3.8) (1.3)
Slide 12: Group Balance Sheet
Group Balance Sheet Strong balance sheet and financing ability 2019 2018 As at 31 March £m £m Variance Net (Debt)/Cash 2019 2018 Tangible assets Analysis £m £m Variance 4.8 4.7 0.1 Intangible assets 420.5 161.4 259.1 Cash 21.2 22.8 (1.6) Deferred tax assets 8.2 4.2 4.0 Debt1 (87.5) (9.3) (78.2) Non-
Slide 13: Capital Allocation
Capital Allocation Organic business Operating cash flow application • Structurally growing end markets • True global coverage and significant addressable M&A market Reinvesting Reducing • Technology Progressive • Dual approach - expanding product portfolio and operational debt • Geography dividend e
Slide 14: Acquisitions
Acquisitions Timeline Location Identity Fraud • 12 acquisitions in the last 8 years Technology • Each acquisition’s strategy and integration is treated differently New Geography • Standardised minus 100 day plans and plus 200 day plans New Customers • Financing via cash, debt, equity New Datasets •
Slide 15: Market opportunity and growth strategy
Market opportunity and growth strategy 15 Investor Presentation June 2019
Slide 16: Market & Customer Drivers
Market & Customer Drivers Our customers need innovative digital solutions to reduce online fraud and meet increasingly stringent compliance regulations Sustained growth in Increased focus Ever-increasing Increase in digital commerce on frictionless fraud and data regulatory and onboarding breaches c
Slide 17: GBG Strategic Vision: to be the global leader in Identity Data Intelligence
GBG Strategic Vision: to be the global leader in Identity Data Intelligence Our strategic priorities to drive financial growth and deliver the vision Maximise growth Optimise growth in Join up GBG with our Use M&A to internationally from our specialist UK customers at the enhance Location, Identity
Slide 18: Business Model
Business Model External Datasets Proprietary Software/Algorithms B2C customers Partners 274 Datasets 516 Location & Customer Intelligence Location (£46.3m | 32%) Engage (£9.6m | 7%) Fraud, Risk & Compliance Identity (£51.9m | 36%) Fraud (£16.0m | 11%) E&C (£6.3m | 5%) T&I (£13.4m | 9%) £143.5m | 100
Slide 19: Our business solution strategies
Our business solution strategies Location Identity Fraud • Join up Identity capability • Enhance UI/UX + ML across Grow our • Create & publish Global portfolio Knowledge Repository • Microservices and consistent Products • Acquire new data and • Scale capability (10x) to best API’s technology to ext
Slide 20: Our Corporate Vision, Objective, Strategy (VOS)
Our Corporate Vision, Objective, Strategy (VOS): Clearly defined and in place across the business Unique Value Get, Keep, Grow Proposition Level 3 Micro-services APIs Info Sec Best & Most Engaged Awareness How we bring our strategies together 20 Investor Presentation June 2019
Slide 21: Outlook and Summary
Outlook and Summary Good start to the year • Strong trading performance and international growth Confident outlook • Dynamic market with great potential • Clear Vision, Objectives and Strategies • Organic growth focus • Further acquisition potential 21 Investor Presentation June 2019
Slide 22: Questions & Answers
Questions & Answers 22 Investor Presentation June 2019
Slide 23: Appendices
Appendices 23 Investor Presentation June 2019
Slide 24: Disclaimer
Disclaimer Restricted distribution This presentation is not for release, publication or distribution, in whole or in part, directly or indirectly, in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction (the ‘Restricted J
Slide 25: Key Management
Key Management David A Rasche David Wilson Chairman CFO & COO Appointed to Board in September 2010 Joined in March 2009 as Finance Director Co-founder of SSP – one of the largest Over 40 years international and operational board specialist insurance software houses in the level experience in the TMT
Slide 26: Revenue Sector Analysis – Full Year
Revenue Sector Analysis – Full Year FY19 FY18 Total 72% Total 68% Financial Services 36% 36% Gaming 10% 8% Retail & eCommerce 10% 7% Government 8% 10% Motor & Transport 4% 4% Travel & Leisure 4% 3% 26 Investor Presentation June 2019 26
Slide 27: Largest Shareholders as at April 2019
Largest Shareholders as at 1 April 2019 10.00 8.9% 9.00 8.5% 8.00 7.6% 6.8% 7.00 6.00 % 5.00 4.2% 4.00 3.3% 3.1% 2.9% 3.00 2.5% 2.5% 2.3% 2% 1.9% 1.9% 1.8% 1.7% 1.6% 2.00 1.00 0.00 Total analysed: 63.4% Directors Shares: 2,418,714 (1.25%) Options: 2.6m1 1 Vesting is subject to achieving performance
Slide 28: Summary Segments
Summary Segments Location & Customer intelligence Fraud Risk & Compliance (39% FY19 revenues. 38% FY19 EBITA) (61% FY19 revenues 62% FY19 EBITA) New Segment Location Engage Identity Fraud Employ & Comply Trace & Investigate Name Old Segment Registering Building Managing risk Fighting fraud Employing
Slide 29: Historic Revenue by Segment
Historic Revenue by Segment Full Year Revenue £m FY13 FY14 FY15 FY16 FY17 FY18 FY19 Location 12.2 13.0 13.5 18.0 21.8 39.4 46.3 Engage 5.6 6.4 10.1 13.0 10.9 10.5 9.6 Location & Customer Intelligence 17.8 19.5 23.6 31.0 32.7 49.9 55.9 Identity 11.1 11.8 14.9 19.8 27.6 37.8 51.9 Employ & Comply 1.3 3
Slide 30: Historic Revenue Growth by Segment
Historic Revenue Growth by Segment 2 Full Year Revenue Growth FY14 FY15 FY16 FY17 FY18 FY19 FY19 Org FY19 Org CC Location 7% 3% 34% 21% 81% 17% 14% 14% Engage 15% 57% 29% (16%) (3%) (8%) (8%) (8%) Location & Customer Intelligence 10% 21% 32% 5% 53% 12% 9% 9% Identity 6% 26% 33% 39% 37% 37% 13% 13% E
Slide 31: Historic Operating Profit by Segment
Historic Operating Profit by Segment Full Year Operating Profit £m FY13 FY14 FY15 FY16 FY17 FY18 FY19 Fraud Risk & Compliance 2.8 3.4 6.6 10.3 12.9 16.0 20.4 Location & Customer Intelligence 3.3 4.4 4.8 4.0 4.8 11.5 12.6 Unallocated (PLC) (0.5) (0.6) (0.6) (0.9) (0.7) (1.2) (1.0) Total Operating Mar
Slide 32: Historic % of Total Revenue by Segment
Historic % of Total Revenue by Segment Full Year Revenue Split FY13 FY14 FY15 FY16 FY17 FY18 FY19 Location 34% 31% 24% 25% 25% 33% 32% Engage 15% 15% 18% 18% 12% 9% 7% Location & Customer Intelligence 49% 47% 41% 42% 37% 42% 39% Identity 31% 28% 26% 27% 32% 32% 36% Employ & Comply 4% 8% 8% 7% 7% 5%
Slide 33: Working with Loqate
Working with Loqate IBM – Embedded into the IBM data Sephora – A global Omni-Channel retailed of management solutions; address batch personal care and beauty products, featuring over cleansing technology from Loqate enables 300 brands along with it’s own private label. customers of IBM around the wo
Slide 34: Working with Identity
Working with Identity Playtech – World’s leading gaming and financial Etsy - A global e-commerce trading trading business. Employs 5,000 people, across platform focussed on handmade or vintage 17 global locations. Leaders in next generation items and craft suppliers. They help a technology and conte
Slide 35: Working with Fraud
Working with Fraud Bank Negara Indonesia – Bank Negara BNP Paribas – established in 1822, BNP Indonesia (BNI) is one of five tier-one banks operates across 73 countries and employs in Indonesia and turned to GBG for anti-fraud over 200,000 people. They work to bring application solution for their cr
Slide 36: Contact
Contact Dave Wilson CFO & COO Want to know more about our business? Sometimes +44 (0) 7712555864 there’s no substitute for a conversation. Get in touch. dave.wilson@gbgplc.com I’ll be glad to help. 36 Investor Presentation June 2019