Equifax, Inc. · NYSE:EFX
Equifax — Merger or Acquisition (February 2007)
17 slides from Equifax's merger presentation, February 2007
Slide 1: smartGROWTH Equifax
sSmartGROWTH EQUIFAX
Slide 2: Forward-Looking Statements Relating to Equifax
Forward-Looking Statements Relating to Equifax Statements in this press release that relate to Equifax’s or TALX’s future plans, objectives, expectations, performance, events and the like may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act o
Slide 3: Additional Information and Where to Find It
Additional Information and Where to Find It In connection with the proposed transaction, a registration statement of Equifax will be filed with the SEC. Equifax and TALX shareholders are encouraged to read the registration statement and any other relevant documents filed with the SEC, including the
Slide 4: Transaction Highlights
Transaction Highlights • Equifax to acquire TALX Corporation for combination of cash and stock representing total consideration of approximately $1.4 billion, including assumption of debt • Strongly aligns with Equifax growth strategy and vision • TALX expected to continue to provide double digit gr
Slide 5: Transaction Overview
Transaction Overview • Combination of cash and stock – Equifax will acquire TALX Corporation in a combination of cash and stock – 25% of TALX shares to be acquired for $35.50 in cash – 75% of TALX shares to be acquired via fixed exchange ratio of 0.861 Equifax shares per TALX share – TALX shareholde
Slide 6: TALX Overview
TALX Overview • TALX is a leading provider of automated income and employment verification solutions. The Company holds a leadership position in HR and payroll-related transactions, outsourced services and unemployment tax management. • Provides over 9,000 clients, including three fourths of Fortune
Slide 7: TALX Business Segments
TALX Business Segments TALX Corporation Target The Work Tax Management Talent Management Number Services Services Services Unique database used for Helps companies process Pre-employment screening and employment and income unemployment claims and manage talent assessment services Description Descrip
Slide 8: The Work Number Verification Process
The Work Number Verification Process Employers Database Web Site Verifiers Send payroll data Stores and Provides access Use the data to approve mortgages (usually every pay period) secures the data to the data loans and benefit applications Mortgage Bankers & Brokers IVR 1-800-367-5690 Pre-Employmen
Slide 9: Consistently Strong Financial Performance
Consistently Strong Financial Performance TALX Financial Performance 300 0.4 $257 250 0.35 $207 0.3 200 $158 0.25 27% 27% 150 $124 0.2 21% 100 17% 27% Revenue CAGR 0.15 50 0.1 0 0.05 FYE 3/04 FYE 3/05 * FYE 3/06 LTM 12/06 Revenue ($MM) Operating Income Margin * Operating Income Margin adjusted to ex
Slide 10: Summary Financial Performance
Summary Financial Performance Equifax TALX 12 Months Ended December 31 12 Months Ended December 31 ($ millions) 2006A 2006A Revenue $1,546.3 $256.8 % growth 7.1% 32.8% Operating Income $451.5* $68.3 % margin 29.2% 26.6% Net Income $260.5* $33.2 EPS $2.01* $0.99 *Income from continuing operations, ex
Slide 11: Equifax Vision
Equifax Vision To be the trusted provider of information solutions that empower our customers to make critical decisions with greater confidence. 11
Slide 12: Aligned with Equifax Growth Priorities
Aligned with Equifax Growth Priorities “Win in the “Expand into new data “Expand globally” commercial market” sources and markets” New Markets with New Data and Capabilities Existing data/ Expanded capabilities to new data/capabilities markets to existing markets (e.g., healthcare, (e.g., fraud, col
Slide 13: Compelling Strategic Rationale
Compelling Strategic Rationale • Complementary fit with Equifax’s strategic competencies of: – Unique, proprietary data management – Leveraging analytics and technology to provide customer solutions – Transaction-based business model • TALX solutions broaden Equifax’s core offerings: – Overlapping c
Slide 14: Complementary Business Models
Complementary Business Models Both companies are trusted providers of information solutions that empower our customers to make critical decisions with greater confidence. Equifax TALX Unique product solutions Strong franchise and excellent reputation Highly recurring, transaction based revenues Supe
Slide 15: TALX Would Become Fifth Business Unit
TALX Would Become Fifth Business Unit Rick Smith CEO $1,803MM US North International North TALX TALX Consumer America America Information Commercial Personal Systems Solutions Solutions $968MM $49MM $403MM $126MM $257MM $257MM Values represent calendar 2006 revenue 15
Slide 16: Accretive to Equifax Long-Term Growth and Earnings
Accretive to Equifax Long-Term Growth and Earnings Revenue Growth 7-10% 8-11% Cash EPS Growth 9-11% 10-13% Cash EPS Impact Accretive by $0.04 - $0.07 per share in first full year (2008) and accelerating beyond 16
Slide 17: Forward-Looking Statements Relating to TALX
Forward-Looking Statements Relating to TALX Statements in this presentation expressing or indicating the beliefs and expectations of TALX regarding future performance are forward-looking statements including, without limitation, favorable operating trends, anticipated growth in revenue and operating