Equifax Inc at JPMorgan Ultimate Services Investor Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Steinerman - JPMorgan - Analyst : Mark, we are sitting a week after the election. My question is, does a Republican sweep change your view of the trajectory of Equifax's business?

Question: Andrew Steinerman - JPMorgan - Analyst : Isn't there are some negatives? I mean, you said inflation under control. There surely is a valve for tariffs. Like is it there at least a little bit of a mixed message? Or do you think it's just positive?

Question: Andrew Steinerman - JPMorgan - Analyst : No, no, no. What do we have? What we have right now.

Question: Andrew Steinerman - JPMorgan - Analyst : Okay. Fair enough. And you think it's net positive, but one of your big businesses is mortgage. Interest rates are coming down.

Question: Andrew Steinerman - JPMorgan - Analyst : Slowly. But also what I'm saying about, if tariffs go through like they're being discussed, might interest rates come down more slowly?

Question: Andrew Steinerman - JPMorgan - Analyst : Right. So you are lined up for a strong '25 even if we don't get mortgage recovering. But if we do, it will be upside from there.

Question: Andrew Steinerman - JPMorgan - Analyst : Right. And do interest rates need to go back to kind of 2015 to 2019 average levels for you to realize that 4%? Because a lot of it has to do with interest rates. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 6:10PM, EFX.N - Equifax Inc at JPMorgan Ultimate Services Investor Conference

Question: Andrew Steinerman - JPMorgan - Analyst : So you're saying change of rates, direction of rates is more important than the exact level of rates.

Question: Andrew Steinerman - JPMorgan - Analyst : So we just sort of established it, a little hard to call the mortgage market for '25. Think about Verifier, which obviously is your best business. Do you think Verifier non-mortgage organic revenue growth is set to accelerate from here into next year? So I'm not talking about fourth quarter, I'm saying going forward. And what would be the drivers of that, again, on a non-mortgage basis?

Question: Andrew Steinerman - JPMorgan - Analyst : So clients are starting to get their EWS price increases for '25. Obviously, there's no easy way for me to aggregate up what it is, but I definitely know the numbers are getting communicated now. Do you feel like, going into '25, this might be a year of normal price increases? And if it's not, why and what area?

Question: Andrew Steinerman - JPMorgan - Analyst : EWS. Just EWS.

Question: Andrew Steinerman - JPMorgan - Analyst : When I was EWS, I really mean Verifier.

Question: Andrew Steinerman - JPMorgan - Analyst : And would talent fall into that normal range, too?

Question: Andrew Steinerman - JPMorgan - Analyst : Okay. Any worries now that First Advantage and Sterling merger has closed? Obviously, they presented this morning here. They have the ambition of being, let's call it, somewhat disruptive.

Question: Andrew Steinerman - JPMorgan - Analyst : Yes. I totally like the penetration of verification areas. The thing that bothers me is, obviously, we only really know about the two public companies, but they keep on getting weak base revenues. Their volumes are low. They have trouble finding a bottom, really. I just don't understand why that hasn't kind of clicked through on your numbers. And I know your numbers have been growing --

Question: Andrew Steinerman - JPMorgan - Analyst : Okay. That makes sense. Something that I've been super impressed with is the addition of payroll and HR software partners to contribute records to TWN. This year has just been amazing. My question is, because this year is so amazing, are there still large or let's call them sizable payroll processors, HR software companies, that don't have an income partner, and they might want to sign up with an income partner? That's sort of question one. And then question number two, do you really need to start pushing the needle on 1099 sources and pensioners because maybe it's going to be harder to add partners surely as amazingly as you did this year?

Question: Andrew Steinerman - JPMorgan - Analyst : Right. It's a Trojan Horse. I mean, the data is the most valuable part. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 6:10PM, EFX.N - Equifax Inc at JPMorgan Ultimate Services Investor Conference

Question: Andrew Steinerman - JPMorgan - Analyst : Make a margin on it.

Question: Andrew Steinerman - JPMorgan - Analyst : From that day going forward.

Question: Andrew Steinerman - JPMorgan - Analyst : It's been an amazing year.

Question: Andrew Steinerman - JPMorgan - Analyst : John, do you think when you look at '26, which really kind of gives you time to get all the cloud benefits, that Equifax's free cash flow conversion should be typical for the sector? Just FYI, typical free cash flow conversion is something under 100%, towards 100% net income, 60% of EBITDA. By '26, should we be a normal free cash-flowing info services company?

Question: Andrew Steinerman - JPMorgan - Analyst : For the whole year or by the end of the year?

Question: Andrew Steinerman - JPMorgan - Analyst : No, let's say it now. I think it's going to be the trifecta, right?

Question: Andrew Steinerman - JPMorgan - Analyst : We're going to have everything, right? We're going to have the smart acquisitions, we're going to have a share buyback, and we're going to increase the dividend in line with earnings.

Question: Andrew Steinerman - JPMorgan - Analyst : Since you mentioned Boa Vista. Where should that grow long term? Or Brazil total? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 6:10PM, EFX.N - Equifax Inc at JPMorgan Ultimate Services Investor Conference

Question: Andrew Steinerman - JPMorgan - Analyst : Do we have a quick question that we have in the audience? Ask me a quick question, not a two-part question.

Question: Andrew Steinerman - JPMorgan - Analyst : As an option.