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Copyright 2005, Equifax Inc., Atlanta, Georgia.
Forward Looking StatementsForward Looking Statements
As usual, we will make statements during the presentation which are forward looking. Our 10Ks, 10Qs and other SEC documents outline the risks associated with these statements and we encourage you to review them.
We also incorporate non-GAAP financial measures in this presentation. A reconciliation of those measures to the most directly comparable GAAP measure is available on our website at www.equifax.com in the Investor Center. You can also reach the same information by clicking on the link included for those sections which discuss these non-GAAP measures.
GAAP/Non-GAAP Reconciliation
Copyright 2005, Equifax Inc., Atlanta, Georgia.
AgendaAgenda• The Equifax Franchise
• Organic Growth Drivers
• Financial Profile
Copyright 2005, Equifax Inc., Atlanta, Georgia.
The Equifax Franchise
The Equifax Franchise
EnablingTechnology
EnablingTechnology
Analytics&
Insight
Analytics&
InsightRich
InformationRich
Information
INTER-RELATED, INTEGRATED CAPABILITIESINTER-RELATED, INTEGRATED CAPABILITIES
• Vast Data Inventory• Credit• Demographic• Lifestyle• Individual &
Commercial• Customer
• Modeling•Acquisition•Growth•Risk
• Macro/Micro Portfolio Analytics
• Economic Forecasting•Economy.com
• Providing Answers• Decision Power/
InterConnect• Exchanges• Internet• Accel• APPRO Loan Center• BeNow
Copyright 2005, Equifax Inc., Atlanta, Georgia.
ConsumerConsumerDemographicDemographic
DataDataConsumerConsumerSurveysSurveys
Telephone &Telephone &UtilityUtility
ExchangesExchanges
Identification &Identification &LinkingLinking
DataData
TriTri--bureaubureauDataData
Fraud &Fraud &AuthenticationAuthentication
DataData
CreditCreditDisputeDispute
InformationInformation
MarketingMarketingResponseResponse
DataData
SecuritiesSecuritiesComplianceCompliance
DataDataTelephoneTelephone
DataDataSmall BusinessSmall Business
ExchangeExchangeAddressAddress
Hygiene DataHygiene Data
Proprietary DatabasesProprietary Databases
US Credit DatabaseEach Month:• 10,000+ data providers• 1.4 billion trades• 92 million collections• 225k bankruptcies• 500k+ judgments/liens• 60M+ inquiries
US Credit DatabaseEach Month:• 10,000+ data providers• 1.4 billion trades• 92 million collections• 225k bankruptcies• 500k+ judgments/liens• 60M+ inquiries
Copyright 2005, Equifax Inc., Atlanta, Georgia.
Business OrganizationBusiness Organization
Europe
10%
Latin America
9%
North America
55%
Personal Solutions
8%
Marketing Services
18%
DELIVER UNIQUE DELIVER UNIQUE SOLUTIONSSOLUTIONS
EnablingTechnologies
EnablingTechnologies
Analytics&
Insight
Analytics&
InsightRich
InformationRich
Information
RelationshipManagement Risk ManagementCustomer Acquisition
Copyright 2005, Equifax Inc., Atlanta, Georgia.
With Strong Global PresenceWith Strong Global Presence
#1Argentina#1Chile
#2#3
BrazilCommercial InformationConsumer Information
#2United Kingdom (consumer)#1Canada (consumer)
#1#3#2#2
United StatesConsumer InformationCommercial InformationMarketing ServicesPersonal Solutions (online)
Market Market PositionPosition
GeographyGeography
Copyright 2005, Equifax Inc., Atlanta, Georgia.
Optimizing the Customer RelationshipOptimizing the Customer Relationship
AnalyticsAnalytics
ApplicationApplication
Data Data CollectionCollection
ScoringScoring
DecisionDecision
Data Data ArchivingArchiving
ReportingReporting
TriggersTriggers
Documents & Documents & NotificationNotification
WorkflowWorkflow
Fraud &Fraud &AuthenticationAuthentication
ComplianceCompliance
Product Product RecommendationRecommendation
BookingBooking
EnablingTechnology
Real Time Answers &
Delivery
Portfolio Management
Copyright 2005, Equifax Inc., Atlanta, Georgia.
Organic Growth DriversOrganic Growth Drivers• Commercial Business
• Personal Solutions
• Enabling Technology
• Latin America
• Growth Playbook
Copyright 2005, Equifax Inc., Atlanta, Georgia.
Why Commercial …Why Commercial …• Growth Opportunity for Our Customers
– Small business owners are more profitable
– Growing over 30%. – Use wider variety of products
• It’s in Our Sweet Spot …– Proprietary data must be
safeguarded– Leverages pioneering Exchange
technology– Customers want fully integrated
solutions
Copyright 2005, Equifax Inc., Atlanta, Georgia.
0 %
2 0 %
4 0 %
6 0 %
8 0 %
1 0 0 %
0 % 2 0 % 4 0 % 6 0 % 8 0 % 1 0 0 %
Superior PredictabilitySuperior Predictability
Equifax Custom Model
Third Party
Pooled Model
% of Customer Base
% o
f Hig
h Ri
sk A
ccou
nts
Iden
tifie
d
1:1= No Value Add
Copyright 2005, Equifax Inc., Atlanta, Georgia.
Sustainable Growth for CommercialSustainable Growth for Commercial
Revenue Mix
0%10%20%30%40%50%60%70%80%90%
100%
2003 2004 2005 Q4 2005
Project Revenue Transaction Revenue
Copyright 2005, Equifax Inc., Atlanta, Georgia.
Enhance Equifax as a trusted brand that offers information, products and
services that help individuals make the smartest decisions possible when
achieving important life goals
Personal Solutions VisionPersonal Solutions Vision
Copyright 2005, Equifax Inc., Atlanta, Georgia.
Personal Solutions is High GrowthPersonal Solutions is High Growth•Business model evolving
– Branding traction – radio, movie– Shift to subscription based revenues– Attractive renewal rates
•Driving future growth– Broader addressable
audience– Driving more up-sell
& cross-sell – Entering new markets
Copyright 2005, Equifax Inc., Atlanta, Georgia.
Enabling Technology AssetsEnabling Technology Assets• Decisioning
– Decision Power– InterConnect
• Customer Acquisition– Apply– Appro
• Fraud– ID Verification
• Database Management– Accel– Exchange– BeNow
• Delivery– ePort
Copyright 2005, Equifax Inc., Atlanta, Georgia.
Leadership in Critical IndustriesLeadership in Critical Industries
Financial Institutions: 30 of the top 50 banks as ranked by American Banker use Equifax enabling technologies
Private Label Retail Cards: Equifax services portfolios for 5 of the top 8 card issuers
Telecommunications: Equifax provides application processing and decisioning solutions for 40% of the telecommunications companies.
• Customers across a range of industries
• Deep domain expertise
Copyright 2005, Equifax Inc., Atlanta, Georgia.
Total U.S. Online UnitsTotal U.S. Online Units
0
40
80
120
160
200
240
280
320
360
400
2000Q1
2000Q2
2000Q3
2000Q4
2001Q1
2001Q2
2001Q3
2001Q4
2002Q1
2002Q2
2002Q3
2002Q4
2003Q1
2003Q2
2003Q3
2003Q4
2004Q1
2004Q2
2004Q3
2004Q4
2005Q1
2005Q2
2005Q3
2005Q4
(Millions)
InformationInformation
AnalyticsAnalytics
Enabling TechnologiesEnabling Technologies
CAGR12%
MIX56%
MIX44%
Copyright 2005, Equifax Inc., Atlanta, Georgia.
Latin America Strategic ObjectivesLatin America Strategic Objectives•Significant expansion in Brazil Consumer
Information market
•Further penetration with Decision Systems
•Continue pricing strategy
•Rapid deployment of Marketing Services
Copyright 2005, Equifax Inc., Atlanta, Georgia.
0
5
10
15
20
25
30
35
40
Share of Revenue
Local Currency
Growth Rate
5% 25% 31% 36%
MarketingServices
Predictive Sciences andEnabling Technologies
CommercialInformation
Services
ConsumerInformation
Services
3%
PersonalSolutions
Poised for GrowthPoised for Growth
Double Digit
Growth
Copyright 2005, Equifax Inc., Atlanta, Georgia.
Marketing ServicesMarketing Services
Credit Marketing
Database Services
Direct Marketing
• Fundraising• Fundraising• Mortgage• Telco• Mortgage• Telco
• FinancialServices
• Retail
• FinancialServices
• Retail• Publishing• Catalog• Entertainment• Manufacturing
• Publishing• Catalog• Entertainment• Manufacturing
Copyright 2005, Equifax Inc., Atlanta, Georgia.
Marketers NeedsMarketers Needs
5% Response Rate
~15 Years Ago Today
Insight
Enabling Technology
Data
1.5% Response
Rate
As The Cost of Acquisition Increases …
… The Need for More Effective Targeting Solutions Increases
ProspectData
Bases
ProspectData
Bases
H.F. ModelsH.F. Models
ModeledModeled
DataEnhancement
DataEnhancement
ResponseData
ResponseData
DataData
ExchangesExchanges
5-10% Response
Rate
Copyright 2005, Equifax Inc., Atlanta, Georgia.
0%
20%
40%
60%
80%
100%
Perc
ent o
f Tot
alGrowth Rate:
DirectMedia
Acxiom
Harte-Hanks
Data Management
$2.0B10%
Experian
InfoUSA
KBM
Other
Merkle
ADS/Epsilon
FulcrumPluris
Non-Regulated ConsumerData
Other
CreditData
Experian
Equifax
TransUnion
$477M4%
Other
Equifax
Experian
Abacus/Doubleclick
$1.56B
Acxiom
ALC
Direct Media
List Services
Mokrynski
Mal Dunn
ChoicePoint
PreferredNext Action
I-Behavior
I-Com
5%
InfoUSA
7%
34%
1%
Marketing Services’ OpportunityMarketing Services’ OpportunityMarketing Services’ Opportunity
Abacus/Doubleclick
Equifax/BeNowIntellidyn
Copyright 2005, Equifax Inc., Atlanta, Georgia.
The Future EquifaxThe Future Equifax•A company that is …
– Characterized by investors and analysts as an innovative growth company
– A demonstrated leader in information technology– A consistent and reliable performer– Recognized as THE trusted steward of sensitive
information– Shareholder focused and financially prudent– An attractive employment opportunity for
exceptional individuals
Copyright 2005, Equifax Inc., Atlanta, Georgia.
2005 Results - Normalized2005 Results 2005 Results -- NormalizedNormalized
$46m$60m to $70mCapex
$292m$255m to $275mFree Cash Flow
10%6% up to 9%Revenue Growth
$1.79$1.69 to $1.76EPS
2005 Results2005 Guidance
Excludes impacts from FACTA
GAAP/Non-GAAP Reconciliation
Copyright 2005, Equifax Inc., Atlanta, Georgia.
2006 Guidance2006 Guidance2006 Guidance
$60m to $65mCapex
$360m to 365mCash Provided
7% to 10%Revenue Growth
$1.90 to $1.99(Includes $0.05 for FAS 123R)
EPS
2006 Guidance(Issued 02/02/06)
GAAP/Non-GAAP Reconciliation
Copyright 2005, Equifax Inc., Atlanta, Georgia.
10%10%
82%82%
North America Europe
8%8%
Latin America
Business Segments Business Segments –– YTD 2005YTD 2005
6%6%
88%88%
6%6%
Revenue$1,082 Million
Operating Profit$383 Million