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Lender Services Data Services Dealer Services Employer Services Multifamily Services Investigative Services BUSINESS SOLUTIONS
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Forward Looking Statement Certain statements made in this presentation, including those related to First Advantage’s product expansion in its business segments, organic growth, expansion of distribution channels, consolidation of operations and geographic are forward looking. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include: interest rate fluctuations; changes in the performance of the real estate markets; limitations on access to public records and other data; general volatility in the capital markets; changes in applicable government regulations; consolidation among both companies’ significant customers and competitors; the companies’ continued abilities to identify and complete acquisitions and successfully integrate acquired businesses; the market price of First Advantage’s Class A common stock; First Advantage’s ability to successfully raise capital; increases in First Advantage’s expenses; unanticipated technological changes and requirements; First Advantage’s ability to identify suppliers of quality and cost-effective data, and other factors described in both companies’ Annual Reports on Form 10-K for the year ended December 31, 2004, as filed with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made. First Advantage does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. 2
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Company Fundamentals First Advantage Is Ranked Among Top Three In All Major Business Lines Nasdaq: FADV Publicly Listed Since June 2003 Merged with US Search.com Headquartered in St. Petersburg, Florida Offices in the U.S. and throughout Asia-Pacific Over 3,700 Employees Worldwide Global Risk Mitigation and Business Solutions Provider Majority Shareholder – First American Corporation 76% of Total Outstanding Shares 3
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Business Segments Lender Services Dealer Services Multifamily Services Data Services Employer Services Investigative Services 4
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Lender Services Quarterly Restated Segment Results #1 Mortgage Credit Re-Sell Provider 45%+ Market Share #1 Provider to Fannie Mae & Freddie Mac 18 Out of Top 20 Lenders as Customers Industry Leading Services Best in Class IT Infrastructure Exclusive Distribution through First American Corporation Service Revenue Operating Income Operating Margin % Overview: 5
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Lender Services Products Product Expansion Credit Reports Account Monitoring Fraud & Identity Theft Prevention Strategic Marketing Solutions Decisioning Credit Reports - Tri-merged credit reports Line item verification Non-traditional home-buyers assistance Account Monitoring – Creditor contact information Credit score updates Fraud & Identity Theft Prevention – DetectionTax Return Verification OFAC AlertsSocial Security Screening Strategic Marketing Solutions – Event Alert Triggers Credit Trend Data Decisioning – Credit automation software and services, credit application analysis and decisioning ● Product diversification into underserved markets: Bankruptcy Emerging Mortgage Markets Subprime ● Leverage First American market and distribution resources through a partnership with the strategic sales team ● International credit opportunities 6
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Quarterly Restated Segment Results Service Revenue Operating Income Operating Margin % Fundamentals: #1 Provider of Resident Screening Information Services Approximately 35%+ Marketshare The industry’s largest, proprietary database of ~ 34+ million landlord-tenant records The industry’s largest, proprietary criminal database The industry’s only statistical scoring model – which enables delivery of superior screening results and provides business metrics & reports to property owners and managers Multifamily Services 7
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Products Product Expansion Multifamily Services Resident Screening: Resident Screening: Industry’s only statistical scoring model ● Nation’s most advanced and comprehensive resident screening tool ● Industry’s only results-based statistical scoring model Renters Insurance: Renters Insurance: Resident liability insurance program ● Underwritten by First American ● Paperless program ● Tenant’s are prequalified Property Management Software: Property Management Software: Web-based software for all apartment management functions ● Streamlines workflow & integrates operations ● Enforces policies across portfolio ● Control / track resident interactions & transactions ● Introduction of advanced scoring model ● Target smaller landlords and apartment associations ● Integration of capabilities across product offerings (SafeRent form use at PMS) ● Integration with renter’s insurance ● Continue to cross-sell with other FADV multifamily product offerings 8
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Quarterly Restated Segment Results Service Revenue Operating Income Operating Margin % Overview: Dealer Services #1 Automotive Credit Information Reseller Leader in specialized credit reporting to the Automotive, Recreational Vehicle, Marine industry, and Manufactured Housing industry Leading loan origination system processor of credit applications on DealerTrack network 9
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Products Product Expansion Dealer Services Automotive Credit Reporting Automotive Credit Reporting – Industry leading automotive credit reporting service: Single and triple merge credit reports Identity verification Fraud detection Credit report analysis FICO and Bankruptcy risk scores Specialty Credit Specialty Credit – Credit reporting services provided to the Recreational Vehicle, Marine and Manufactured Housing markets operating in similar fashion to Automotive ● Bankruptcy Lead ● Cross-sell Bar None lead generation services to existing dealerships 10
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Products Product Expansion Dealer Services Credit Automation Software Credit Automation Software – Manages flow of credit information in and out of lending institutions Scorecards to approve / decline loans Loan Documents Action Letters Management Reports Highly Configurable: Decision Criteria Tolerance Rules ● Continue to develop third party distribution relationships Bar None Bar None Brand name credit-based lead generation and application processing for auto dealers 11
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Overview: Data Services Transportation Credit Reporting Leading provider of business credit information to the $500 billion trucking industry Motor Vehicle Record Reporting Comprehensive point of sale software Subprime Credit Reporting Proprietary database of subprime consumers Criminal Records Reselling Approximately 165+ million records Consumer Services US Search–Leader in public information since 1994 Membership Services Membership & credit customer service Lead Generation Full service on-line lead generation Service Revenue Operating Income Operating Margin % Quarterly Restated Segment Results 12
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Products Product Expansion Data Services Transportation Credit Reporting: Transportation Credit Reporting: Truckload carrier business credit reporting ● Proprietary database of truckload carrier receivables business practices ● 80% of leading truckload carriers as clients ● 34,000 carriers contribute regularly to database Driving records from all 50 states, Canada, and Puerto Rico ● Private network of direct-to-DMV interfaces ● Expand commercial fleet product offerings through cross-sell opportunities: Employment Screening Drug Testing Employment History ● Added promotional activity in key segments ● Increase client product awareness ● Cross-sell Fleet Management Services: Fuel Tax Reporting Permitting ● Expand vehicle based products ● Target fleet and driver management services ● Improve margins with regional and niche market products Motor Vehicle Record Reporting: Motor Vehicle Record Reporting: Second largest MVR information provider to insurance, transportation and employment screening industries in U.S., Canada and P.R. ● Industry-leading software ● Multiple delivery channels 13
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Products Product Expansion Data Services Subprime Credit Reporting: Subprime Credit Reporting: Nation’s leading source of subprime consumer information with 155+ million records ● Proprietary database of subprime consumer records ● Unique data and decisioning solutions for: Payday Advance Companies Subprime Auto Lenders Subprime Credit Card Issuers Subprime Consumer Finance Companies ● ID verification tool ● Improved database elements: Multiple Scoring Models Positive Payment History Information ● Improve system architecture for more efficient future product integration ● International expansion – Canada, Europe Criminal Records Reselling: Criminal Records Reselling: Proprietary database of 165+ million felony and misdemeanor records ● NationScan ● Utilizes multiple criminal record sources ● Continue to develop new features / services with business partners: Access to FADV SafeRent database ● Access tailored to volunteer agencies ● Access tailored to dating organizations 14
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Products Product Expansion Data Services Consumer Services (US Search.com): Consumer Services (US Search.com): Market leading internet public record location and background data services ● 1.2 Million customer database ● 42 Million unique consumer visitors per year ● Expand customer base through the addition of subscription based membership offerings: Example: Home Value Membership ● Pursue new advertising channels ● Integration into core products with added cross-sell opportunities Membership Services: Membership Services: Consumer credit reporting, credit monitoring, identity theft, and membership-based services ● Third Party Administrator ● Private Label ● Retail ● Expand and focus on membership retention and customer service 15
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Products Product Expansion Data Services Lead Generation: Lead Generation: On-line lead generation marketing tool targeting the automotive, mortgage and micro-loan vertical markets ● Sales lead generation ● List management ● Affiliate network marketing ● Poised to capitalize on increasing recognition of Internet marketing advertising influx ● Increase growth into Mortgage and Real Estate lead generation market coverage ● Continue to pursue relationships with publishers and advertisers 16
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Overview: Insurance Fraud Surveillance National leader specializing in the detection and exposure of worker’s compensation, disability and liability insurance fraud Computer Forensics Largest commercial computer forensics lab on the east coast Continuously trained staff Data Recovery Data Recovery Industry leading R&D capabilities 16 Terabytes of data recovered monthly Electronic Discovery First to market in Asia and foreign languages 300 Years combined experience Due Diligence Reporting Finest due diligence reports in the industry Better priced reports, more complete, and more consistent Service Revenue Operating Income Operating Margin % Quarterly Restated Segment Results Investigative & Litigation Services 17
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Products Product Expansion Investigative & Litigation Services Electronic Discovery: Electronic Discovery: ● Consulting ● Data collection and preservation ● Data conversion, delivery, review & production ● Office and employee expansion to provide a full array of service offerings Unique foreign language conversion Computer Forensics: Computer Forensics: Over 30+ staff experts consisting of engineers and licensed forensic examiners ● Litigation support ● Proving or disproving fraudulent activity ● Intellectual property theft ● Continue to cross-sell with other FADV investigative product offerings 18
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Products Product Expansion Investigative & Litigation Services Data Recovery: Data Recovery: Information recovery from all types of media ● Disasters and accidental data loss ● Restore data to tapes and hard drives ● Broadened product reach through formal reseller program – computer stores and re- sellers are able to sell our service ● Established automotive intake system to accept client media at various FADV locations for transfer to clean rooms Due Diligence Reporting: Due Diligence Reporting: Standardized due diligence process on the following: ● Hedge fund managers ● Investment banking backed business people ● Managers receiving private equity from funds ● Expand the breadth of service offerings through added staff and management 19
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Products Product Expansion Investigative & Litigation Services Insurance Fraud Surveillance: Insurance Fraud Surveillance: Specializing in detection and exposure of worker’s compensation, disability and liability fraud ● Surveillance ● Fraud Investigations ● Background and database investigations ● Cross-sell fraud surveillance services to other First Advantage customers, i.e. large self-insured organizations ● Further diversify and expand into additional markets 20
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Overview: Employer Services Background Screening Services Third largest verification provider in the U.S. Occupational Health Services Second largest drug screening marketplace provider Hiring Management Services Hiring Management Services Employer applicant tracking system Tax Consulting Services Hiring & Location, Transportation, and Sales & Use Tax Consulting Biometrics Fingerprinting applications Service Revenue Operating Income Operating Margin % Quarterly Restated Segment Results 21
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Employer Services Lifecycle 22
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Products Product Expansion Employer Services Background Screening Services: Background Screening Services: Products and services that assist in screening applicants for jobs, and monitoring ongoing employment qualifications ● Over 80 various background searches ● Largest provider of pre-employment screening in Asia-Pacific ● Cross-sell new product acquisitions: Biometrics Hiring Management Solutions ● New specialty product offerings: Vendor Check Occupational Health Services: Occupational Health Services: ● Substance abuse testing ● Compliance management ● Physical exam management ● Employee assistance programs ● FADV branded specialty testing products ● Introduction of compliance monitoring tool for industries requiring professional credentialing 23
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Products Product Expansion Employer Services Tax Consulting Service: Tax Consulting Service: ● Hiring and location-based tax incentives consulting Work Opportunity Tax Credit/ Welfare to Work State Hiring Credit Enterprise Zone Credits Investment Credit Training Grants ● Transportation consulting services - Fleet management ensures trucking fleets are in compliance with state and federal regulations ● Sales and use tax consulting ● Expand tax credit target market Manufacturing Processing Distribution Technology ● Continue to increase service offerings through acquisitions and organic growth 24
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Products Product Expansion Employer Services Hiring Management Services: Hiring Management Services: ● Web-based employer applicant tracking system Open-position management capability: Create job requisitions Post position openings Accepting applications Schedule interviews Evaluation of applicants Coordinate background checks ● System available in 12 languages ● Bundle service opportunities with other FADV human resource services ● Language translation capability for cross-sell opportunity with First Advantage Quest employee screening unit Biometrics: Biometrics: Capture, store and transmit fingerprints to federal and local authorities for background screening purposes ● Cross-sell with related background screening services 25
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Maximize Shareholder Value Product Expansion Operations Consolidation Geographic Expansion Distribution Channels Organic Growth Shareholder Value Platform for Continued Growth Continued Systems Integration and Functionality Distribution Channel Expansion Capitalize on Segment Synergies Capitalize on Single Source Concept Foreign Language Translation Capability Increase Marketshare through Acquisitions Target International Markets Bundled Service Offerings Increased Expense Control Efficiencies Continuing Development of Sales & Product Teams Capitalize on Client Relationships & Customer Service Partnership Opportunities Product Diversification 26
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Product Expansion Product Diversification Online talent acquisition services: Recruitment advertising Applicant tracking Expand product offerings to unique customer base Partnership Opportunities Employer Services: Business Development teams used to strengthen alliances with partnerships such as payroll companies and job boards Bundled Service Offerings Automotive Credit Reporting & Lead Generation: Bankruptcy Lead Generation Lifestyle Lead Generation 27
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Geographic Expansion Target International Markets Implemented Subprime Expansion to Canada Market Leader in Asia-Pacific region India(4) ● Beijing ● Hong Kong ● Tokyo ● Singapore ● Philippines ● Perth Potential Growth Markets Europe Latin America Increase Marketshare through Acquisitions Presence in U.K. due to acquisition of applicant tracking system Unique Foreign Language Translation Capability Only eDiscovery firm to provide complete foreign language processing and translation service 28
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Operations Consolidation Increased Expense Control Efficiencies Reduce IT maintenance costs by providing a single client interface Continued Systems Integration & Functionality Employer Services: Migrate clients to improved system platform Improve webdesign to better showcase products Multifamily Services: Complete customer migration to First Advantage SafeRent Develop new features and services: Enhanced Scoring Model Property Performance Analytics 29
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Distribution Channels Distribution Channel Expansion Data Services – Lead Generation: Drive additional lead generation through alternative channels (automotive, subprime, mortgage, payday stores) Entry into Student Lending and Education vertical markets Target leads on a state and regional level Automotive Credit Reporting: Utilize subprime Teletrack business to target bankruptcy lead generation Continuing Development of Sales and Product Teams Partnership with First American Strategic Account Sales Team 30
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Organic Growth Potential Projected Organic Growth Rate ~ 8.0% to 10.0% (2006 Consolidated) Capitalize on Synergies Between Segments Cross-sell existing products Cross-sell products from recent acquisitions Shared sales force with First American Capitalize on Client Relationships Secure domestic business of multinational overseas clients No single customer represents more than 5% of FADV service revenue Capitalize on Single Source Concept Unification of corporate identity Capitalize on Levels of Customer Service Strong customer base Broader coverage of service offerings 31
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Fourth Quarter Financial Overview Service Revenue$159,083$115,616 Operating Income 21,952 17,470 Operating Margin 13.8% 15.1% Net Income 16,712 10,237 EBITDA 30,727 24,518 Diluted EPS$ 0.30$ 0.20 ($ 000’s) 20052004 32
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Service Revenue$596,105 $472,142 Operating Income 99,669 73,493 Operating Margin 16.7% 15.6% Net Income 59,410 43,081 EBITDA 128,809 99,228 Diluted EPS$ 1.11$ 0.86 ($ 000’s) 20052004 Full Year Financial Overview 33
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Lender Services: Service Revenue$39,364$31,721 Operating Margin 27.0% 22.2% ($ 000’s) 20052004 Q4 Segment Financial Overview Data Services: Service Revenue$29,839$18,111 Operating Margin 28.5% 32.2% Dealer Services: Service Revenue$26,105$16,820 Operating Margin 11.6% 8.9% 34
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Employer Services: Service Revenue$39,388$30,797 Operating Margin 11.2% 12.4% ($ 000’s) 20052004 Q4 Segment Financial Overview Multifamily Services: Service Revenue$14,121$12,297 Operating Margin 13.9% 18.6% Investigative Services: Service Revenue$11,438$ 7,027 Operating Margin 9.4% 4.1% 35
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Lender Services: Service Revenue$168,327$135,201 Operating Margin 28.6% 28.2% ($ 000’s) 20052004 FY’05 Segment Financial Overview Data Services: Service Revenue$ 91,699$ 74,905 Operating Margin 32.1% 19.2% Dealer Services: Service Revenue$ 98,357$ 69,842 Operating Margin 13.8% 11.7% 36
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Employer Services: Service Revenue$143,839$115,461 Operating Margin 10.4% 9.2% ($ 000’s) 20052004 FY’05 Segment Financial Overview Multifamily Services: Service Revenue$ 63,254$ 54,135 Operating Margin 25.5% 22.7% Investigative Services: Service Revenue$ 34,580$ 25,714 Operating Margin 6.1% 3.5% 37
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Financial Overview Service Revenue $181,621 $239,571 $291,215 $388,776 $472,142 $596,105 ($ 000’s) 38
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Financial Overview Net Income $10,641 $16,383 $29,096 $38,337 $43,081 $59,410 ($ 000’s) 39
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Summary Maximize revenue and earnings potential through continued strategic initiatives: Acquisitions Product and Market Expansion Partnerships Continue to seek global growth opportunities Cross-sell opportunities across business lines Seasoned management with proven expertise in executing growth strategies Ranked among Top 3 in all business lines 40
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