Gb Group Plc · LSE:GBG
Gb — H1 FY21 Earnings Presentation
34 slides from Gb's earnings presentation, December 2020
Slide 1: Investor Presentation: Half Year Results to 30 September 2020
Investor Presentation Half Year Results to 30 September 2020 Chris Clark Dave Wilson
Slide 2: GBG strategic vision and 1H FY21 highlights
GBG strategic vision To be the global leader in Identity Data Intelligence 1H FY21 Highlights Our focus is on 3 complementary solutions: Location, Identity and Fraud and joining these capabilities together over time to meet the end to end GBG performed well through 1H digital requirement to help goo
Slide 3: 1H FY21 Update
1H FY21 Update Location Identity Fraud • Growth across all Territories • Exceptional US growth helped by one-off project • Tough comparatives, slowed decision making and • Continued integrations into technology channel partners • Europe affected by sector exposure on-site nature of implementations •
Slide 4: Market & Customer Drivers
Market & Customer Consumers expect simple Continuing growth in Business accelerating their Drivers and safe online experiences. e-commerce, particularly on mobile. digital transformations. • We help businesses in a digital world. • We help B2C companies simply, safely and securely interact with cons
Slide 5: Looking ahead
Looking ahead • We expect full year revenue for the Group to be marginally ahead of FY20, on an underlying basis • Confident that GBG's diverse customer base will continue to be a buffer against any ongoing uncertainty caused by COVID-19 • We have started increasing investments in areas previously d
Slide 6: How We've Performed
How We’ve Performed 6 Investor Presentation December 2020
Slide 7: Group Income Statement and Points to Note
Group Income Statement Points to Note Restated* 6 months to 30 September 2020 2019 £m £m • Revenue growth of 10% - helped by one-off project. Revenue 103.5 94.3 +10% • Change in business mix has lowered the GP% Cost of sales (30.9) (26.0) • Lower opex due to cost savings as a result of COVID e.g. Gr
Slide 8: Segment Performance
Segment Performance Growth Constant currency organic growth Organic 1H21 Total growth at Operating % of Total Revenue £m growth¹ constant margin % 6 months ended 30 2020 2019 currency Growth September £m £m Location 25.2 24% 8% 9% 31% Group revenue 103.5 94.3 10% Acquired revenue in past - - Identit
Slide 9: Revenue Analysis per Sector
Revenue Analysis per Sector “Smaller, COVID challenged sectors” includes sectors with 49% small % of revenue most impacted by COVID – including Sporting 43% associations, Employment 14% Total directly agencies, and Charities challenged sectors Financial services includes the one-off project 17% 11%
Slide 10: Revenue Analysis per Geography
Revenue Analysis per Geography 1H21 1H20 Inc £m % of Rev £m % of Rev £m % USA 42.9 41% 24.9 27% 18.0 73% UK 34.5 33% 40.8 43% (6.3) -16% ANZ 10.8 11% 10.6 11% 0.2 2% EU 10.3 10% 10.2 11% 0.1 1% APAC 2.8 3% 5.6 6% (2.8) -49% Other 2.2 2% 2.2 2% 0 0% 103.5 100% 94.3 100% 9.2 10% 10 Investor Presentati
Slide 11: Cash Flow Statement
155% (2019: 103%) Adjusted EBITDA cash conversion ratio (excl. paid Cash Flow Statement exceptional items) 2020 2019 6 months ended 30 September Variance £m £m Adjusted EBITDA 28.6 23.4 5.2 132% (2019: 103%) Underlying cash conversion Working capital 15.9 0.8 15.1 (excluding £4.9m of VAT payments de
Slide 12: Our near-term approach to capital allocation
Our near-term approach to capital allocation Strong cash flow Our current Capital Allocation approach continues • Maintaining our organisational capacity whilst reducing discretionary spend • Good long term structural trends • Started opex spend in new investment areas • Business model is strongly c
Slide 13: Confidence in our long-term market opportunity
Confidence in our long-term market opportunity 13 Investor Presentation December 2020
Slide 14: Summary Outlook
Summary Outlook • The strong financial performance means GBG continues to • Clear Vision, Objectives and Strategies with the team to have the capability and resources to make important deliver investments across the Group to support further growth • The effect of COVID on the business continues to c
Slide 15: Questions & Answers
Questions & Answers 15 Investor Presentation December 2020
Slide 16: Appendices
Appendices 16 Investor Presentation December 2020
Slide 17: 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 18: 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 specialist Over 35 years international and operational board level insurance software houses in the world experience in t
Slide 19: Business Model
Business Model Global data access Location Identity Fraud Proprietary Software/Algorithms Routes to market Self serve | Face to face | Channel Target geographies : UK, Europe, SE Asia, China, B2C customers AUS & NZ, North America 19 Investor Presentation December 2020
Slide 20: Competitive differentiators & barriers to entry
Competitive differentiators & barriers to entry Our differentiated capabilities and strong market position have created a barrier to entry Location Identity Fraud Breadth of data globally Proven Solution with reliable local Best Global Address Data Depth of data in core markets language algorithms “
Slide 21: Summary Segments
Summary Segments New Segment Name Location Identity Fraud Other %1H21 revenues 24% 62% 12% 2% Instinct, Predator, Orchestration. Platforms Capture + ID3global, KYP, IDology, GreenID Connexus Marketing Services, SCV • Application fraud • ID Verification • ID fraud • Address validation • Credit risk m
Slide 22: Acquisitions and Investments
Acquisitions and Investments Timeline * Location Identity ** Fraud • 13 acquisitions and one investment in the last 8 years Technology • Each acquisition’s strategy and integration is treated differently New Geography • Proven shareholder value creation model Financing via cash, debt, equity New Cus
Slide 23: Our Corporate Vision, Objective, Strategy (VOS)
Our Corporate Vision, Objective, Strategy (VOS): Unique Value Get, Keep, Grow Clearly defined and in Proposition place across the Level 3 business Micro-services APIs Info Sec Best & Most Engaged Awareness How we bring our strategies together 23 Investor Presentation December 2020
Slide 24: Largest Shareholders as at 1 November 2020
Ae go n As O se 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% ct tM op us gt Ab In UK er ve 6.8% de st m en C en St ap ts an i ta 6.4% da lG rd ro 24 Investor Presentation December 2020 In up ve 5.5% st m en N ts in 5.1% et y O ne B la 4.8% AX A Sw ck Fr Ka e db Ro am ck l in bo an 3.8% ut k gt on er
Slide 25: Corporate Responsibility and Sustainability
Corporate Responsibility and Sustainability Establishing trust between businesses and their customers; working and acting responsibly; empowering, prioritising and protecting our people; creating broader societal value and protecting the environment. GOVERNANCE & ETHICS DATA PRIVACY & IT SECURITY EQ
Slide 26: Growth track record
Growth track record Revenue (£m) 8 year CAGR = 25.8% Adjusted operating profit (£m)1 8 year CAGR = 37.7% 200 50 199.1 45 47.9 40 150 35 143.5 30 100 119.7 25 32.0 20 26.3 87.5 73.4 15 50 57.3 10 17.0 36.3 41.8 5 13.4 7.2 10.8 5.5 0 0 YE Mar 13† YE Mar 14 YE Mar 15 YE Mar 16 YE Mar 17 YE Mar 18 YE Ma
Slide 27: Historic Revenue by Segment
Historic Revenue by Segment Full Year Revenue £m FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Location 14.4 15.3 17.6 22.5 25.2 41.9 47.9 51.5 105.44 Identity 12.4 15.1 19.2 24.8 33.5 43.91 58.22 Fraud 6.2 7.2 14.5 17.5 21.3 25.9 29.1 35.5 Other 3.3 4.2 6.0 8.6 7.5 8.0 8.3 6.7 Total 36.3 41.8 57.3 73.4 8
Slide 28: Historic Revenue Growth by Segment
Historic Revenue Growth by Segment Full Year Revenue FY14 FY15 FY16 FY17 FY18 FY19 FY20 Growth Location 6% 15% 27% 12% 66% 14% 7% Identity 22% 27% 29% 35% 31% 33% 81% Fraud 17% 100% 21% 21% 21% 13% 22% Other 23% 42% 44% (12%) 8% 2% (18%) Total 15% 37% 28% 19% 37% 20% 39% Half Year Revenue 1H21 Org 1
Slide 29: Historic Operating Profit by Segment
Historic Operating Profit by Segment Full Year Operating Profit £m FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Location 4.4 4.6 5.9 6.1 7.7 13.8 16.6 14.6 Identity 1.3 1.6 2.8 4.5 5.6 9.4 15.2 33.6 Fraud 1.4 1.8 3.8 5.9 7.3 6.6 9.0 13.4 Other (1.6) (0.8) (1.7) (3.1) (3.6) (3.5) (8.8) 1 (13.7) Total Oper
Slide 30: Historic % of Total Revenue by Segment
Historic % of Total Revenue by Segment Full Year Revenue Split FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Location 40% 37% 31% 31% 29% 35% 33% 26% Identity 34% 36% 34% 34% 38% 37% 41% 53% Fraud 17% 17% 25% 24% 24% 22% 20% 18% Other 9% 10% 10% 11% 9% 6% 6% 3% Total 100% 100% 100% 100% 100% 100% 100% 100
Slide 31: Group Balance Sheet
Group Balance Sheet 2020 20191 As at 30 September Variance Strong balance sheet and financing ability £m £m Tangible assets 8.2 9.8 (1.6) Net (Debt)/Cash 2020 2019 Variance Analysis £m £m Intangible assets 402.9 431.3 (28.4) Deferred tax assets 7.2 6.6 0.6 Cash 32.3 23.3 10.0 Non-current assets 418.
Slide 32: Modelling considerations for FY21 – Foreign Exchange
Modelling considerations for FY21 – Foreign Exchange Currency % of group FY21 rate FY20 average rate FY21 range of rates (vs. GBP) revenue FY20 Internal US Dollar 24% 1.27 1.25 ~ 1.33 1.29 Australian Dollar 20% 1.87 1.73 ~ 1.91 1.87 32 Investor Presentation December 2020
Slide 33: Modelling Considerations for FY21 - Tax Rate
Modelling Considerations for FY21 - Tax Rate UK USA Australia Other2 Group % of Profit Before Tax1 34% 28% 34% 4% 100% Statutory Tax Rate 19% 21% 30% 24 - 28% 24% State Taxes - 5% - - 1% Patent Box Relief (3%) - - - (1%) Forecast FY21 Effective Tax Rate 16% 26% 30% 24 - 28% 24% FY20 Effective Tax Ra
Slide 34: Contact
Contact Want to know more about our business? Sometimes there’s no substitute for a conversation. Get in touch. I’ll be glad to help. Dave Wilson CFO & COO +44 (0) 7712555864 dave.wilson@gbgplc.com 34 Investor Presentation December 2020