Ncc Group Plc · LSE:NCC
Ncc — Investor Day (December 2009)
18 slides from Ncc's investor day presentation, Dec 1, 2009
Slide 1: NCC Group plc Investor & Analyst Day
NCC Group plc Investor & Analyst Day - 1st December 2009 Rob Cotton & Roger Rawlinson NCC Group Plc, Manchester Technology Centre, Oxford Road, Manchester M1 7EF www.nccgroup.com
Slide 2: Agenda
Agenda NCC Group plc - Customers & sector concentrations Group Escrow - Growth drivers - Competition Assurance Division - Sector concentrations - Growth drivers - News headlines - Competition Questions & answers Lunch Technical demonstration
Slide 3: NCC Group plc
NCC Group plc The world’s leading g independent p IT Assurance provider: p - Largest provider of Escrow - Largest team of Ethical Security Testers - 15,000 customers includingg 94 out of the FTSE 100 The Group has two complementary divisions - Groupp Escrow - Assurance 10 offices in the UK UK,
Slide 4: NCC Group – Customers & Sector Concentrations
NCC Group – Customers & Sector Concentrations Multinational customer base Sell to everybody – PLC, SME, Local Govt, Central Govt & MOD No reliance on any sector Customers sold to many times over Strategic Accounts & Key Accounts actively cross sell – 250 Accounts 2% 2% November 2009 4% 4%
Slide 5: Group Escrow
Group Escrow NCC Group remains the world’s largest provider No reliance on a single sector Actively sell in UK UK, Holland Holland, Switzerland Switzerland, Germany & North America Dominance in Europe although not in North America 4% 2% November 2009 6% B k & IInsurance Banks 3% Softw are &
Slide 6: Group Escrow - Growth Drivers
Group Escrow - Growth Drivers Escrow is a slow sale - No single point of contact - It is a legal contract - Multi person decision making - At least two companies involved - Protection levels are different to users perceptions Growth pattern is driven by sales effort - 85% of demand is generated
Slide 7: Group Escrow - Growth Drivers
Group Escrow - Growth Drivers Drivers Attitude to governance & risk - Corporate governance - Regulation & compliance Business continuity & disaster recovery p Awareness is improving g Corporate failures – no let up but no big names Complexity of services Reputation – 30 years & invented
Slide 8: Group Escrow – Competition
Group Escrow – Competition United Kingdom Gartner research 2004 still valid – NCC Group has 99% of spending market Market potential thought to be c.£80m Five i providers id operating ti in i the th UK Iron Mountain are not p proactively y selling g in the UK or Europe p - Call Centre does no
Slide 9: Group Escrow - Competition
Group Escrow - Competition Software Escrow Solutions - Established in 2002 by former employee - Employs between 6 6-10 10 max - Lost £17,000 in 2008, P&L reserves £425 - Successfully sued by NCC Group for breach of Copyright - USP – cheap h alternative lt ti Total Escrow Solutions - Established
Slide 10: Group Escrow - Competition
Group Escrow - Competition LE&AS - Legal firm providing services to owners predominately - No facilities or testers - Comino, Agresso & Coda as clients - Target public sector & health - One sales person - USP – cheap alternative Intellect - Software owners association – membership model - Overal
Slide 11: Group Escrow - Competition
Group Escrow - Competition Europe Gartner research estimates available Dutch & German markets worth €45m & €240m in 2005 Three h smallll German G competitors tit – total t t l turnover t c.€500k € 00k Three small Dutch competitors – total turnover less than €250k - Largest thought to be SoftCr
Slide 12: Assurance Division
Assurance Division Assurance Division trades under the following brands - 365 Secure – Fully accredited secure & monitored service - Secure S Test – Ethical hi l testing i & managed d services i - NGS – Premium brand ethical testing, research & forensics - NCC Group – PCI compliance & auditing - S
Slide 13: Assurance Division – Sector Concentrations
Assurance Division – Sector Concentrations Information security, security prevention of data theft, theft fraud & risk issues are a global pandemic Risk mitigation & fraud prevention is the largest area of IT expenditure Evolution in the market is also driven by mandatory payment card industry
Slide 14: Assurance Division - Growth Drivers
Assurance Division - Growth Drivers Internal Drivers Successfully target & acquire complementary businesses - Three to date for £25m Revenues have a high recurrence rate – over 80% Renewing customers customers’ increase expenditure – typically 25% increase Growth of forensics offering – skil
Slide 15: Assurance Division - Growth Drivers
Assurance Division - Growth Drivers External Drivers Increased need for systems, network & data security – Arms Race Media headlines highlight embarrassing, avoidable examples of poor security - BBC, ITN, Sky - news features - Watchdog type programmes Security Testing/Information security is a
Slide 16: Assurance Division - News Headlines
Assurance Division - News Headlines RBS World W ld P Pay - Eight men from an international crime ring charged with hacking into Atlanta-based bank card processor - RBS WorldPay & stealing more than $9m in 12 hours - From Russia Russia, Moldova & Estonia they gained access to the RBS computer netwo
Slide 17: Assurance Division - Competition
Assurance Division - Competition C Competitors tit off Secure S Test T t & NGS - Portcullis - Turnover £8-£9m - employs 25-30 testers - QinetiQ Group plc - Turnover £800m – unknown number of testers - predominately MOD & defence - BAE Systems - Turnover £18.5bn – employs 30-35 testers - Acquired D
Slide 18: Questions & Answers
Questons & Answers BS ncecgroup assure -secure- advise