Final Investor Presentation - Master - new...

February 27, 2006

EmpowersEmpowersEmpowers

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


AgendaAgenda• The Equifax Franchise

• Organic Growth Drivers

• Financial Profile


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


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


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


Customer Franchise ... Customer Franchise ...


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


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


Organic Growth DriversOrganic Growth Drivers• Commercial Business

• Personal Solutions

• Enabling Technology

• Latin America

• Growth Playbook


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


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


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


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


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


Enabling Technology AssetsEnabling Technology Assets• Decisioning

– Decision Power– InterConnect

• Customer Acquisition– Apply– Appro

• Fraud– ID Verification

• Database Management– Accel– Exchange– BeNow

• Delivery– ePort


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


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%


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


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


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


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


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


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

Financial ProfileFinancial ProfileFinancial Profile


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



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)


February 27, 2006

EmpowersEmpowersEmpowers

AppendixAppendix


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


0.0

100.0

200.0

300.0

400.0

500.0

600.0

92 93 94 95 96 97 98 99 00 01 02 03 04 05

(# m

illions)

U.S. Reporting VolumeU.S. Reporting Volume

CAGR CAGR 13%13%

*Excludes intercompany volume

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