Transunion · NYSE:TRU
Transunion — Q4 2021 Earnings Presentation
24 slides from Transunion's earnings presentation, Feb 22, 2022
Slide 1: TransUnion Fourth Quarter 2021 Earnings
v v v TransUnion Fourth Quarter 2021 Earnings Chris Cartwright, President and CEO Todd Cello, CFO February 22, 2022
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TransUnion’s management and are subject to significant risks and uncertai
Slide 3: Fourth quarter 2021 highlights and 2022 commentary
Fourth quarter 2021 highlights and 1 2022 commentary 2 Business transformation 3 Fourth quarter 2021 financial results First quarter and full year 4 2022 guidance © 2022 Trans Union LLC All Rights Reserved | 3
Slide 4: Sustainability Update
Sustainability Update • Earned perfect score from Human Rights Campaign Foundation’s 2022 Corporate Equality Index • Announced pledge to achieve net- zero Scope 1 and 2 GHG emissions by 2025 • Expanding disclosure in Diversity and Sustainability Reports © 2022 Trans Union LLC All Rights Reserved | 4
Slide 5: Fourth Quarter 2021 Highlights
Fourth Quarter 2021 Highlights • Delivered another strong quarter of broad, innovation-led growth • Benefited from a healthy market backdrop and execution of our Growth Playbook • Standouts verticals included Financial Services, Insurance, and Media; International strength led by India and Latin Ame
Slide 6: 2022 is setting up to be another strong year
2022 is setting up to be another strong year • Guidance for 5.5% to 7.5% organic growth in 2022. Excluding mortgage, organic constant currency growth is expected to be 9% to 11% • In the U.S., consumer balance sheets have never been stronger • Internationally, trends are similarly healthy with pent-
Slide 7: Verisk Financial Services adds a proprietary data asset to our portfolio
Verisk Financial Services adds a proprietary data asset to our portfolio Argus provides authoritative and Argus differentiated insights for credit/debit card accounts and demand/deposit accounts (DDAs) spending behavior ~65% Other ~35% • Data sourced from consortia of banks and card issuers Verisk F
Slide 8: Acquiring Argus will enhance value to consortia members
Acquiring Argus will enhance value to consortia members • Better utilize the full wallet view of the consumer to deliver actionable insights • Modernize delivery of Argus products using Prama Platform • Expand Argus’ data coverage and addressable market • Leverage Argus’ insights to improve fraud mi
Slide 9: We see a clear path to driving significant financial value from Verisk Financial Services
Transaction Details • $515 million purchase price will be funded with cash; target close in Q2 2022 We see a clear • Represents 12.5x 2021 Adjusted EBITDA* multiple path to driving significant financial value Verisk Financial Services Financials from Verisk • $143 million of 2021 revenue Financial –
Slide 10: Sontiq delivered strong performance in 2021
Sontiq • Provides solutions to help consumers and delivered businesses protect against identity theft and strong cybercrime, including identity monitoring, restoration, performance in and breach response 2021 and is • 2021: $87M of revenue (~18% YoY organic growth) positioned for at ~35% Adjusted EB
Slide 11: Neustar had a good year in 2021
• Provides real-time identity resolution through its OneID platform, powering a broad array of solutions Neustar had a good year in • 2021: $585M of revenue or ~8% YoY organic growth 2021 and – Marketing up low-double-digits performance – ~21% Adjusted EBITDA margins should • 2022E: High-single-digi
Slide 12: Expanding our technology transformation to drive superior performance
Expanding our technology transformation to drive superior performance • Realizing early successes – built cloud-native credit reporting platform, which will be deployed for new Brazilian bureau • Leveraging OneID to accelerate innovation of non-credit products • Resulting in more scalable, secure an
Slide 13: Q4 2021 Revenue Bridge
Q4 2021 Revenue Bridge Q4 2020, (Remove Q4 2020, Q4 2021, Vs. Pro-Forma $ in millions, except EPS Previously Healthcare) Re-Based Excluding HC Guidance* Reported Revenue $699 $(45) $653 $790 $775 - 785 Y/Y 21% Organic Constant Currency Y/Y 12% 9% - 11% Adjusted EBITDA 269 (22) 247 282 278 - 286 Y/Y
Slide 14: FY 2021 Revenue Bridge
FY 2021 Revenue Bridge FY 2020, (Remove FY 2020, FY 2021, Vs. Pro-Forma $ in millions, except EPS Previously Healthcare) Re-Based Excluding HC Guidance* Reported Revenue $2,717 $(186) $2,531 $2,960 $2,855 - 2,955 Y/Y 17% Organic Constant Currency Y/Y 13% 12% - 12.5% Adjusted EBITDA 1,045 (91) 954 1,
Slide 15: U.S. Markets Q4 2021 Year-over-Year Financial Highlights
Organic Inorganic Reported FX Impact Constant Impact U.S. Markets Currency Q4 2021 Revenue 25% — (13)% 11% Year-over-Year Financial 12% — — 12% Services Financial Emerging 44% — (35)% 10% Highlights Verticals Adjusted 18% — (5)% 12% EBITDA Note: Rows may not foot due to rounding. For additional info
Slide 16: Consumer Interactive Q4 2021 Year-over-Year Financial Highlights
Consumer Inorganic Organic Constant Interactive Reported FX Impact Impact Currency Q4 2021 Revenue 14% — (6)% 8% Year-over-Year Adjusted Financial EBITDA 14% — (1)% 13% Highlights Note: For additional information, refer to the “Non-GAAP Financial Information” section on slide 2. © 2022 Trans Union L
Slide 17: International Q4 2021 Year-over-Year Financial Highlights
Inorganic Organic Constant Reported FX Impact Impact Currency Revenue 15% — — 15% International Q4 2021 Canada 8% (4)% — 5% Year-over-Year Latin America 13% 3% — 17% Financial U.K. 14% (2)% — 12% Highlights Africa 15% (2)% — 13% India 33% 2% — 35% Asia Pacific 5% 1% — 6% Adjusted 21% (1)% — 20% EBIT
Slide 18: Consistent Ability to De-Lever via Adjusted EBITDA Growth
TransUnion Has Shown a Consistent Ability to De- Lever via Adjusted EBITDA Growth Net Debt / Adjusted EBITDA Ratio 4.8x 4.2x 3.9x 3.9x 3.4x 3.5x 3.5x 3.1x 3.2x 3.2x 2.8x 2015 IPO 2015 2016 2017 2018 2019 2020 2021 Pro-Forma 2022E Pro-Forma 2021 2022E • $1.8B cash at quarter-end; prepaid $400M of Ter
Slide 19: Q1 2022 Guidance
Q1 2022 Guidance Reported Revenue: $906M to $914M +30% to +31% Assumed M&A contribution: ~24pt. Benefit Assumed FX contribution: Immaterial impact Organic Constant Currency Revenue: +6% to +7% Assumed Mortgage impact: ~(5)pt. headwind Organic CC Revenue ex. Mortgage: +11% to +12% Adjusted EBITDA: $3
Slide 20: FY 2022 Revenue Guidance
FY 2022 Revenue Guidance Reported Revenue: $3.752B to $3.810B +27% to +29% Assumed M&A contribution: ~22pt. benefit Assumed FX contribution: ~(0.5)pt. headwind Organic Constant Currency Revenue: +5.5% to +7.5% Assumed Mortgage impact: ~(3.5)pt. headwind Organic CC Revenue ex. Mortgage: +9% to +11% O
Slide 21: FY 2022 Adjusted EBITDA, Adjusted Diluted EPS and Other Guidance
Adjusted EBITDA: $1.386B to $1.424B +20% to +23% Assumed FX contribution: Immaterial impact FY 2022 Adjusted EBITDA Margin Adjusted EBITDA Margin bps change: 36.9% to 37.4% -210bps to -170bps Adjusted EBITDA, Adjusted Diluted EPS Adjusted Diluted EPS: $3.84 to $4.00 +12% to +16% and Other Guidance A
Slide 22: Delivered strong Q4 results supported by our Growth Playbook
• Delivered strong Q4 results supported by our Growth Playbook • Provided healthy FY 2022 guidance pointing to continued positive momentum • Completed acquisitions of Neustar and Sontiq and intend to acquire Verisk Financial Services © 2022 Trans Union LLC All Rights Reserved | 22
Slide 23: Investor Day on March 15th
Investor Day on March 15th • Updated long-term growth targets • Deep dive into refreshed strategic framework • Presentations from over a dozen executives © 2022 Trans Union LLC All Rights Reserved | 23
Slide 24: Q&A
Q&A © 2022 Trans Union LLC All Rights Reserved | 24