Third Quarter 2018 Earnings Call Jim Peck, President and CEO Chris Cartwright, President, USIS Tdd Cell, Chief Financial Officer OCTOBER 23, 2018
Frward Lking Statement This presentatin cntains frward-lking statements within the meaning f the Private Securities Litigatin Refrm Act f 1995. These statements are based n the current beliefs and expectatins f TransUnin s management and are subject t significant risks and uncertainties. Actual results may differ materially frm thse described in the frward-lking statements. Factrs that culd cause TransUnin s actual results t differ materially frm thse described in the frward-lking statements can be fund in TransUnin s Annual Reprt n Frm 10-K fr the year ended December 31, 2017, as mdified in any subsequent Quarterly Reprt n Frm 10-Q r Current Reprt n Frm 8-K, which are filed with the Securities and Exchange Cmmissin and are available n TransUnin's website (www.transunin.cm/tru) and n the Securities and Exchange Cmmissin's website (www.sec.gv). TransUnin undertakes n bligatin t update the frward-lking statements t reflect the impact f events r circumstances that may arise after the date f the frward-lking statements. 2018 TransUnin LLC All Rights Reserved 2
Third Quarter 2018 Highlights TransUnin delivered a strng third quarter Duble-digit increases in Adjusted Revenue, Adjusted EBITDA and Adjusted Diluted EPS Outperfrming underlying markets as a result f innvatin, new vertical markets and fast-grwing emerging markets Diversified prtfli reduces reliance n any ne prduct r market while enabling cnsistent strng perfrmance 2018 TransUnin LLC All Rights Reserved 3
Driving Grwth Thrugh Innvatin Cmbined CreditVisin and CreditVisin Link grew 28% in the U.S. in third quarter 2018 and up 40% year-t-date Substantial runway left fr grwth New enhanced versins f CreditVisin Link using FactrTrust data Opprtunities in credit card, aut and large financial institutins Aut insurance underwriting fr credit-based scring mdels that use trended data CreditVisin grew 44% utside f the U.S. in third quarter 2018 and 50% year-t-date Launched in Canada, Hng Kng, India, S. Africa, Clmbia, and a number f ther LATAM cuntries Wrking tward launch in the U.K. in early 2019 2018 TransUnin LLC All Rights Reserved 4
Our Custmers Are Facing New Challenges User experience suffers as cnsumers mve nline and data cmprmise is rising Device is the primary channel fr cnsumers Breaches are driving fraud in digital channels Cnsumer expectatins are always increasing In 2018, mbile will surpass desktp as the tp digital channel fr banks¹ Data breaches up 45%; identity theft victims up 1.3 millin 2 83% f Millennials say they wuld switch banks fr better digital experience 3 Surce: ¹ Identity Theft Resurce Center 2017 Annual Data Breach Year End Review ² 2018 Identity Fraud Study, Javelin Strategy & Research ³ 2017 SalesCycle Reprt 2018 TransUnin LLC All Rights Reserved 5
Answer Critical Questins In Real Time Cmprehensive views f a cnsumer s identity acrss the custmer lifecycle Demgraphics Name, Address, SSN, Phne Licenses and Accunts Drivers, Business, Persnal, Financial Device and Lcatin Device ID, Owners, IP, Prxy, Netwrk Email and Mbile Lngevity, Velcity, Dmain, Carrier, Passcdes, SDKs PERSONAL IDENTITY REPUTATION DIGITAL IDENTITY TRANSACTIONS Shared Fraud Enterprise, Cnsumer Watch Lists and Cmprmised Psitive/Negative Lists, Data breach, Expsure Inquiries and Scring Histry Transactin Histries, Past Scres, Decisins Behavirs Behavir Patterns, Brwsing 2018 TransUnin LLC All Rights Reserved 6
Unifying Persnal And Digital Data Acrss The Glbe Fr an unmatched view f cnsumers t build a defined identity strategy 1 billin wrldwide cnsumer recrds 500 millin cnsumer credit histry recrds 4.8 billin mnthly data updates 50+ petabytes f data 30+ cuntries 5 billin devices seen by netwrk 35 billin ttal transactins prtected 23 millin transactins prtected per day 55 millin fraud reprts placed by netwrk 35,000 websites and apps prtected 2018 TransUnin LLC All Rights Reserved 7
Our Glbal Netwrk Enhances Fraud And Risk Insights A netwrk effect f intercnnected cmmunities, practitiners and real-time signals Devices Analytics Cmmunities Behavirs Risk Identity 2018 TransUnin LLC All Rights Reserved 8
Intrducing IDVisin with ivatin A hlistic fraud slutin enabling businesses and cnsumers t safely and seamlessly transact in a digital wrld Establish identity Detect fraud Establish identity Identity Verificatin FraudFrce Device-based Reputatin IDVisin Alerts Verified Prefill Authenticate cnsumers Authenticate cnsumers Knwledge-based Authenticatin One-time Passcde ClearKey Device-based Authenticatin LaunchKey Multifactr Authenticatin Prevent Fraud FraudFrce Device-based Reputatin Fraud Mdels and Scres Synthetic Fraud Mdel; Custm Fraud Analytics; SureScre Trust Indicatr Fraud Preventin Exchange Investigatins (TLOxp) 2018 TransUnin LLC All Rights Reserved 9
Expanding In Attractive Vertical Markets Shrt-term slwdwn as a result f sme custmer issues n the frntend f Health Care vertical Nt related t ur business r the underlying market Cntinue t see a healthy, attractive Health Care revenue cycle management market lng-term as we help ur custmers better manage increased margin pressures and rising uncmpensated care csts Right suite f prducts t bth drive increased revenue recvery and t win mre business ver time, particularly n the back-end f the revenue cycle management wrkflw Augmented this strength with acquisitins f HPS and Rubixis 2018 TransUnin LLC All Rights Reserved 10
Expanding In Attractive Gegraphic Markets Integratin f Callcredit prceeding n-plan CreditView platfrm expected t be in market in the first quarter f 2019 CreditVisin will launch in 2019 On-track fr $15 millin f csts savings by end f 2019 2018 TransUnin LLC All Rights Reserved 11
Internatinal Grwth in Cnsumer Interactive CANADA HONG KONG 2018 TransUnin LLC All Rights Reserved 12
INNOVATION Balancing Demands T Achieve Operatinal Excellence Need t innvate t maintain current psitin and drive future grwth Evlving and cnstant threats with majr financial and reputatinal cnsequences Table stakes requirement fr systems t be 99.99% peratinal 2018 TransUnin LLC All Rights Reserved 13
Cnslidated Third Quarter 2018 Financial Highlights YOY change Adjusted Revenue +25% Cnstant Currency Adjusted Revenue +26% Organic Adjusted Revenue +10% Organic Cnstant Currency Adjusted Revenue +11% Adjusted EBITDA +26% Cnstant Currency Adjusted EBITDA +28% Adjusted Diluted EPS +33% Other items Cst f Services +23% SG&A +34% Adjusted Operating Incme +26% 2018 TransUnin LLC All Rights Reserved 14
TransUnin s Underlying Business Cntinues T Deliver Margin Expansin 1Q17 2Q17 3Q17 YTD17 4Q17 FY17 1Q18 2Q18 3Q18 YTD18 Adjusted EBITDA margin* 37.7% 39.2% 39.0% 38.7% 38.8% 38.7% 37.7% 39.2% 39.4% 38.8% Impact f acquisitin integratin csts 5bps 20bps 20bps 25bps 20bps Impact f lwer margins frm acquisitins Underlying Adjusted EBITDA margin 15bps 5bps 30bps 10bps 60bps 65bps 125bps 80bps 37.7% 39.2% 39.1% 38.7% 39.2% 38.8% 38.5% 40.0% 40.9% 39.8% Year-ver-year change NA NA NA NA NA NA +80bps +80bps +190bps +115 bps *Fr a recnciliatin f Adjusted EBITDA and Adjusted EBITDA margin see press release dated Octber 23, 2018 r Frm 10-Q fr the third quarter 2018. Adjusted EBITDA and Adjusted EBITDA margin excludes the integratin csts assciated with the acquisitin f Callcredit. 2018 TransUnin LLC All Rights Reserved 15
Segment Third Quarter 2018 Financial Highlights USIS YOY change (Reprted) Less: Inrganic grwth frm M&A Less: FX Impact YY Change (Organic Cnstant Currency) Adj. Revenue 20% (9%) 11% Online Data Services 17% (6%) 11% Marketing Services 23% 23% Decisin Services 28% (25%) 3% Adj. Operating Incme 19% (5%) 15% Internatinal Adj. Revenue 53% (47%) +6% 12% Emerging Markets 6% +8% 14% Develped Markets 138% (133%) +3% 9% Adj. Operating Incme 54% (44%) +8% 18% Cnsumer Interactive Adj. Revenue 11% 11% Adj. Operating Incme 21% 21% Nte: Rws may nt ft due t runding. 2018 TransUnin LLC All Rights Reserved 16
Full Year 2018 Guidance Adjusted Revenue: $2.342 t $2.347 billin, +21% Includes 10 pints f M&A, 50 bps f ne-time incremental mnitring, and 50 bps f headwind frm FX Adjusted EBITDA: $912 t $915 millin, +22% Includes 70 bps f headwind frm FX Adjusted EBITDA margin: up 20-30 bps cmpared t 2017; up mre than 100 bps excluding impact f acquisitins Adjusted Diluted EPS: $2.46 t $2.47/share, +31-32%; excluding estimated benefit f tax refrm +15% Includes ~$(0.03) headwind: ~$(0.02) frm strnger dllar and ~$(0.01) frm higher interest due t increase in LIBOR n the debt prir t incremental financing in June Estimated adjusted tax rate expected t be 27.5%, dwn frm 28% 2018 TransUnin LLC All Rights Reserved 17
Furth Quarter 2018 Guidance Adjusted Revenue: $620 t $625 millin, +23-24% Includes 15 pints f M&A and 1 pint f headwind frm FX Adjusted EBITDA: $243 t $246 millin, +24-26% Includes 2 pints f headwind frm FX Adjusted Diluted EPS: $0.62 r $0.63/share, +24-26%; excluding estimated benefit f tax refrm +8-10% 2018 TransUnin LLC All Rights Reserved 18
v v Final Cmments
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