Barclays European Business Services and U.S. Credit Bureau .../media/Files/T/... · Barclays European Business Services and U.S. Credit Bureau Forum September 4, 2019 Steve Chaouki

© 2019 Trans Union LLC All Rights Reserved

Barclays European

Business Services and

U.S. Credit Bureau Forum

September 4, 2019

Steve Chaouki – President, U.S. Markets

Aaron Hoffman – Vice President, Investor Relations


Forward-Looking Statement

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 uncertainties. Actual results may differ materially from those described in the forward-

looking statements. Factors that could cause TransUnion’s actual results to differ materially

from those described in the forward-looking statements can be found in TransUnion’s

Annual Report on Form 10-K for the year ended December 31, 2018, as modified in any

subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are filed

with the Securities and Exchange Commission and are available on TransUnion's website

(www.transunion.com/tru) and on the Securities and Exchange Commission's website

(www.sec.gov). TransUnion undertakes no obligation to update the forward-looking

statements to reflect the impact of events or circumstances that may arise after the date of

the forward-looking statements.

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TransUnion Overview


TransUnion is a great long-term investment

We participate in very attractive vertical and geographic markets

We have a highly evolved business model and culture

We’re well-positioned to continue to deliver top-tier revenue growth at an

attractive, growing margin

We have unique, powerful assets and know how to utilize them to deliver

customer-centric innovation

We have substantial opportunities to deliver strong performance in the future


TransUnion has a unique position in a highly

attractive industry

Credit bureaus

play a vital role for

businesses and

consumers

Unique ability

to leverage

highly valuable

data across a

wide array of

end markets

Rapidly growing

demand for data,

analytics and

insights


• Marriages

• Birth

• Death

• Education

• Addresses

• Email

• Devices

• Biometrics

• Bank accounts

• Insurance

• Property

• Autos

• Income

• Licenses

• Judgments

• Criminal

histories

• Violations

• Payday lending

• Rent-to-own

• Utility bills

• Rental payments

• Driving

• Social media

• Purchases

• Debts

• Payment

histories

• Collections

Events Identifiers

CreditPublic

records

Behaviors

Financial:

cash flow

Financial:

assets &

capacity

TransUnion

utilizes

industry-leading

data assets to

deliver

unsurpassed

consumer

insights


Leading positions in

the U.S. and Canada

Attractive position and

assets in Africa

Leading position in

fast-growing

Indian market has

significant long-

term potential

Strong positions

across Latin America

We’ve built a global footprint that’s well-positioned

to deliver long-term growth

Outstanding

long-term

growth

potential in

large U.K.

market Well positioned for

growth and potential

expansion in Asia Pacific


Strong financial performance

$1,507

$1,705

$1,934

$2,345

$2,633

2015 2016 2017 2018 2019E

$527

$637

$748

$917

$1,040

2015 2016 2017 2018 2019E

$ in millions $ in millions

Adjusted Revenue Adjusted EBITDA

1 1

1Reflects midpoint of 2019 guidance.2CAGR calculated for 2015 actuals – midpoint of 2019 guidance, provided on July 23, 2019.

+19% CAGR2+15% CAGR2

Adj.

EBITDA

Margin %

35.0%

(+10bps)

37.3%

(+240bps)

38.7%

(+130bps)

39.1%

(+40ps)

39.5%

(+40bps)


Over the next three years, we expect to deliver balanced,

relative outperformance across key financial metrics

~7%Organic, constant

currency revenue

growth on average

through economic

cycles

~50bpsAdjusted EBITDA margin

expansion on average,

allowing significant

reinvestment to drive

top-line growth

10%+Adjusted EPS growth

with upside driven by

capital deployment and

lower tax rate

15-17%Free cash flow margins

allow us to deploy excess

cash toward accretive

capital allocation

initiatives


All three of our business segments are significant

contributors to revenue growth

2016–2018 Organic

Constant Currency

Adjusted Revenue CAGR

What to Expect Going Forward

U.S. Markets 14%High-single-digit growth driven by industry-leading

innovation and strong positions in attractive vertical markets

International 12%Low-double-digit growth driven by strong underlying market

conditions in key markets and execution of TransUnion’s

international playbook

Consumer

Interactive8%

Mid-single-digit growth driven by continued growth with

indirect partners and stable direct channel


Focused, effective strategies to deliver

above-market growth

Drive Growth Through Innovation

Deliver compelling, innovative and differentiated

solutions to our customers across global

businesses

Expand in Attractive Markets

Invest in high-growth, adjacent markets,

geographies and channels to drive growth and

further diversify our portfolio

Enable the Empowered Consumer

Extend consumer reach through strategic

partnerships in the indirect channel and with

expanded free offerings in the direct channel

Leverage Our Global Operating Model

Leverage our data assets and capabilities across

all markets and verticals to enable rapid diffusion

of IP, accelerated growth and margin expansion

Drive client engagement through sales and

marketing best practices

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U.S. Markets Overview


Diversified portfolio

of growth

businesses that

deliver innovative

risk information

solutions

Financial

Services

(53%)

Healthcare

(12%)

Insurance

(11%)

Other

Emerging

Verticals

(24%)

(Includes Diversified Markets,

Collections, Rental Screening,

Public Sector and Media)

U.S. Markets FY 2018 Adjusted Revenue: $1,447 million


U.S. Markets

performance has

been driven by a

diverse set of

growth driversAttractive Markets

Base Business

Momentum

Industry-leading

Innovation

Strategic Acquisitions

(data and capabilities)

New Market Entry


TransUnion Financial Services is a large,

diversified vertical

Who we serve

• Virtually every U.S. bank, credit union, finance

company, auto lender, mortgage lender, FinTech

and other consumer lender

• Most major resellers, secondary market players

and sales agents

Issues we address

Both marketing and risk-based analytical decision-

making and execution for lenders, including:

• Prospecting and segmenting customers

• Underwriting

• Identity authentication

• Portfolio management

• Collections/Recoveries

• Competitive benchmarking and market analysis

35%

25%

20%

20%

2018 Adjusted

Revenue of

$765

million

Mortgage

Consumer

Lending

Auto

Credit Cards

and Payments

FinTech, credit

unions, small

banks and short-

term lenders

Lending has evolved into what we refer

to as the Consumer First Era, creating

a fertile environment for growth

• The balance of power has shifted to the consumer

- Consumers expect more holistic solutions

- The wallet has fractured; consumer loyalty dynamics have changed

- Seamless, consistent experience is expected across all channels

• Analytics are the norm

• Nimble, well-funded startups become established

• Competition crossing previously established boundaries (e.g., size, age,

geography, etc.)

• Insourcing is still popular, but partnerships becoming increasingly

common



We’ve transformed TransUnion to position our

Financials Services business for long-term growth

Historical Mindset

Underwriting strategy aims to control risk

Lenders compete with other lenders for wallet share

Fraud controls are tailored to individual channels

Cross-sell as many products as possible to every customer

Bottom line success is driven by profitability

Consumer First Perspective

Strategy is to provide consumers greater access to credit (while controlling and pricing for risk)

Lenders compete with a variety of institutions in terms of the customer experience; consumers expect the best always

Customers expect a consistent, frictionless experience across channels; seamless transitions between engagements

Lenders must understand what products customers need, when they need them, how they complement existing wallet

Long-term success is measured by profitabilityand customer satisfaction


Our Insurance

solution suite is

well-positioned to

succeed as

insurers leverage

third-party data to

deliver accurate

and fast service

Who we serve:

• 18 of the top 20 U.S. personal property and casualty insurers

• 8 of the top 10 U.S. life insurers and partnerships with MIB and RGA

• 5 of the top 20 commercial property and casualty insurers

• 400+ U.S. insurance businesses

Capabilities we offer:

• Tailor marketing campaigns to align with desired risk profiles

• Improve pricing sophistication

• Broaden and diversify underwriting and rating variables and techniques

• More affordably and fully manage books of business

• Improve fraud prevention and mitigation efforts

• Improve claims investigation and payment process


Diversified Markets

is a collection of

high-quality

businesses that

leverage TU’s core

data and

capabilities

Technology,

Retail and

E-Commerce

Communications

and Energy

Services

Screening

• Sharing economy

• Hospitality

• Transportation and logistics

• Gaming

• Telco

• Cable and satellite

• Energy and utilities

• Solar

• Home automation

• Professional Services, including business

risk/fraud/security, consulting, law firms, etc.

• Locating Services, including private investigators,

bail bonds, repo/towing, etc.

• Information Services

• Background screening

• Employment screening


Our other U.S. Markets verticals leverage an array

of TransUnion data and capabilities

Improve third party collectors’ bottom line and help provide quality customer experience

by delivering actionable consumer insights and servicesCollections

Help landlords and property managers understand and make informed rental decisionsRental

Screening

Provide information services solutions to federal, state and local government agencies

and higher education institutions

Public

Sector

Create products and solutions that enable customers to reach consumers

with more relevant and valuable offersMedia


TransUnion is a great long-term investment

We participate in very attractive vertical and geographic markets

We have a highly evolved business model and culture

We’re well-positioned to continue to deliver top-tier revenue growth at an

attractive, growing margin

We have unique, powerful assets and know how to utilize them to deliver

customer-centric innovation

We have substantial opportunities to deliver strong performance in the future


Documents

Barclays European Business Services and U.S. Credit Bureau .../media/Files/T/... · Barclays European Business Services and U.S. Credit Bureau Forum September 4, 2019 Steve Chaouki