Full year results for the 12 months ended 31 May 2015 July 2015

Agenda

• Highlights

• Growth track record

• Group financial performance

• Escrow

• Assurance

• Domain Services

• Current trading & outlook

• Appendix

2

21%

Group revenue up 21% to £133.7m

5% Escrow operating profits up 5% to

£18.9m

1% Adjusted Group

operating profit after Domain Services up

1% to £26.4m

30 Offices

worldwide

21% Assurance revenue up 21% to £97.0m

3

Highlights

9.4p Adjusted fully

diluted earnings per share

5% Escrow revenue up 5% to £32.0m

1,388 Employees worldwide

21% Assurance

operating profits up 21% to £17.0m

2 Acquisitions Open

Registry & Accumuli

14% Total dividend up

14% to 3.98p

11% Adjusted Group

operating profit before Domain Services up

11% to £31.3m

Revenue (£m) - CAGR 27% Adjusted operating profit (£m) - CAGR 16%

Full year

Interim

15 consecutive years of record growth

020406080

100120140160

05 06 07 08 09 10 11 12 13 14 150

5

10

15

20

25

30

05 06 07 08 09 10 11 12 13 14 15

0.00

2.00

4.00

6.00

8.00

10.00

05 06 07 08 09 10 11 12 13 14 15

Fully diluted adjusted EPS (p) - CAGR 16%

0.00

1.00

2.00

3.00

4.00

5.00

05 06 07 08 09 10 11 12 13 14 15

Dividend (p) - CAGR 25%

4

2015 (£m)

2014 (£m)

Growth Organic

Escrow UK 23.7 22.5 5% 5%

Escrow Europe 3.2 3.3 (4%) (4%)

Escrow US 5.1 4.7 11% 11%

Escrow 32.0 30.5 5% 5% Security Consulting 72.1 57.5 25% 25%

Software Testing & Web Performance 22.6 22.7 (1%) (1%)

Accumuli 2.3 - - -

Assurance 97.0 80.2 21% 18% Domain Services 4.7 - - - Total revenue 133.7 110.7 21% 18%

Revenues

5

2015

6

International mix of revenue

UK

36% £48.1m

Rest of world

10% £13.5m

Europe

54% £72.1m

UK

31% £33.8m

Rest of world

9% £10.5m

Europe

60% £66.4m

2014

Operating profits Margin

(%) 2015 (£m)

2014 (£m)

Growth (%)

Contribution

Escrow 59% 18.9 18.1 5

Assurance 18% 17.0 14.0 21

Corporate - (4.6) (4.0) 16

Adjusted operating profit pre Domain Services

24% 31.3 28.1 11

Domain Services - (4.9) (2.1) 131

Adjusted operating profit 20% 26.4 26.0 1

7

Earnings per share & dividends Margin

2015 (£m)

2014 (£m)

Growth

Adjusted operating profit pre Domain Services

24% 31.3 28.1 11%

Adjusted operating profit 20% 26.4 26.0 1%

Adjusted pre tax profits - 25.5 25.3 1%

Adjusted fully diluted EPS - 9.4p 9.3p -

Fully Diluted Shares (m) - 214.0 211.4 1%

Dividend per share - 3.98p 3.5p 14%

8

Reconciliation to pre-tax profits

Net IT

claim

Acquisition related costs

Amortisation of acquired intangibles

Share based

payments

Adjusted operating

profit

Reported operating

profit

(2.4)

(2.2)

(1.0)

26.4

22.6

£m

32

29

26

23

20

(1.2) 21.4

31.3 – 11% year on year growth

(4.9)

Pre Domain Services

Domain Services

expenditure

Interest and unwinding of

discount

Pre-tax profit

1.8

9

Cashflow 2015 (£m)

2014 (£m)

Cash generated from operations 24.3 28.9 Net interest paid (1.1) (0.8) Income taxes paid (3.4) (4.5) Capital expenditure (13.0) (10.8) Acquisition of businesses (19.8) (4.3) Cash balances from acquisition 5.7 - Dividends paid (7.6) (6.8) Cash (outflow)/inflow before financing activities (14.9) 1.7 Receipt of bank loans 20.4 6.8 Proceeds from issue of shares 0.4 0.6 Purchase of own shares (0.4) (2.1) Increase in cash in the year 5.5 7.0

10

Cash, capital & banking • Continued strong cash conversion at 107% of operating profits (120% in 2014) • Net debt £50.6m (£23.6m at May 2014) • Facility increased to £78m RCF plus £2m overdraft to July 2016 • Capital expenditure £13.0m (2014 in £10.8m)

• Domain Services development costs - £3.1m • Tangible assets including office expansion - £4.8m • Group wide IT & operational systems, infrastructure & product upgrades - £5.1m

• Future maximum deferred consideration due £7.4m - all profit based earnouts • FortConsult - £1.6m - June 2016 • Open Registry - £5.8m - 2 payments of £2.9m - 2017/2018

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12

Escrow Escrow Revenue £32.0m Contribution £18.9m Margin 59% Headcount 145 FTE

Revenue : £23.7m Headcount : 99 FTE

UK

Revenue : £5.1m Headcount : 32 FTE

US

Revenue : £3.2m Headcount : 14 FTE

Europe

13

Escrow UK

Escrow • Continued solid performance • ICANN performance strong – over 40% of new gTLDs • Renewals up 3% to £18.5m (2014: £18.0m) Escrow UK

• Prices increased in 2014 – small increase planned for 2015 • Verification performance growth continues • Terminations unchanged at less than 11%

2015 (£m)

2014 (£m)

Growth

Escrow revenue 32.0 30.5 5%

Escrow UK revenue 23.7 22.5 5%

Escrow contribution 18.9 18.1 5%

14

Escrow - Europe & US

Overseas • Single global Escrow brand – NCC Group • Solid performance from US team • Excellent performance from Europe – constant currency 5% growth • Global account management stronger & performing well

2015 (£m)

2014 (£m)

Growth

Escrow US revenue 5.1 4.7 11%

Escrow Europe revenue 3.2 3.3 (4%)

15

Assurance

Headcount : 188 FTE

US

Headcount : 31 FTE

Europe

Headcount : 10 FTE

Australia

Headcount : 700 FTE

UK

Assurance Revenue £97.0m Contribution £17.0m Margin 18% Headcount 929 FTE

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Assurance

• Revenue growth of 21% • Excellent organic growth of 18% • Margin 18% including Accumuli (2014: 18%) - target still 20% • Global offering - compelling, competitive proposition • Continued staff development, recruitment & retention remains primary focus • Globally recognised reputation for responsible, credible research

2015 (£m)

2014 (£m)

Growth

Assurance revenue 97.0 80.2 21%

Assurance contribution 17.0 14.0 21%

17

Assurance

Security Consulting • Revenues grew by 25% • US & UK are working effectively for international clients • Stable management teams Software Testing & Web Performance • Web Performance renewal rates 91% • Renewals £6.8m (2014: £6.8m) Accumuli • First month has shown encouraging signs

2015 (£m)

2014 (£m)

Growth

Security Consulting 72.1 57.5 25%

Software Testing & Web Performance 22.6 22.7 (1%)

Accumuli 2.3 - -

1.2 BILLION web pages

monitored last year

TECHNICAL CONSULTING DAYS SOLD

110k 75k

Total Assurance

In the UK

929 FTE

6 MILLION IPs scanned

last year

900k LIVE

IPs scanned last year

Assurance – international scale

18

19

Arms race – unstoppable pace

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Domain Services – transformational year

• Own TLD .trust launched – gated community • Resolved contention over former domain application • Built Domain Assured – ICANN anti abuse product • Grown Escrow service now over 40% market share • Open Registry - world class back end operator, registrar & CHIP - acquired • Moved NCC Group onto .trust (350+ assets) • Build of Continual Monitoring Service (CMS) almost complete • Active discussions with FTSE 350 & Fortune 500 client base

2015 (£m)

2014 (£m)

Domain Services revenue 4.7 -

Domain Services operating loss (4.9) (2.1)

Something has to change

Source: Trust in the New Internet Survey 2015, NCC Group plc

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What ingredients are needed?

Verification – users need to be sure who they are interacting with online Security – users want to know that the highest standards are being applied Assurance – users want the comfort that vigilance is high

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• Changes are coming from Europe • Globally consumers becoming increasingly wary of the Internet • Punitive fines will impact organisations – Target • Open generic domains already riddled with bad actors – many will fail • New domains do not protect consumers or business – confusion • Branded closed generics will provide the new world of safe homesteads • Only 18 of FTSE 350 & 26 of Fortune 500 applied for .brand TLDs • Next application process starts in 24 months

Domain Services – market backdrop

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Domain Services – capabilities

FY 2015/2016

Evolving service

• .trust

• Brand Estate Review • Domain Registration Monitoring • Domain Portfolio Monitoring • Brand TLD Management • Trademark Clearinghouse • Domain Assured • Managed Service Scanning • Continual Monitoring Service • .trust

Opportunity • Group set to lead this area with unique end to end solution • In discussions with a number of brands to define domain strategy • New services that the market needs • Branded TLDs are the future of the Internet

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25

Current trading & outlook • Continued strong, solid growth across Escrow • Assurance

• Security Consulting is now a global force • Service offerings further expanded by Accumuli • Strong organic growth set to continue

• Domain Services • Full unique end to end solution established • Positioned well for significant market upheaval

• Group orders & renewals £62.7m • Group Escrow orders & recurring income of £20.9m (2014 at £20.9m) • Assurance orders & recurring revenues £41.8m (2014 at £32.1m)

• Confident about delivering another year of strong & consistent growth

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Appendix

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About NCC Group A global information assurance specialist with an unrivalled breadth & depth of services, providing organisations worldwide with freedom from doubt that: • Business critical material is protected – through escrow & verification • Information is secure & operations are compliant – through security testing,

audit & compliance • Websites deliver optimum performance, maximising revenues & protecting

reputation – through website performance • Infrastructure & software works as it should, maximising efficiency & return on

investment – through software testing • Brand, reputation & sensitive customer information is protected with the

highest level of security & reliability – through domain services

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Our services

29

Group sector revenue analysis

30

Escrow sector revenue analysis

31

Assurance sector revenue analysis

32

Escrow agreements explained • Escrow is a legal contract

between three parties • licensor (or owner) • licensee • an independent trusted

third party

• Holds software source code or business critical material

• Provides protection from key supplier failure or failure of maintenance

• Demonstrates supplier’s commitment to client care

• Key part of disaster recovery & business continuity planning

Licensor

Sale of business critical

software

Licensee

Annual recurring fee

Deposit of source code

33

Domain Services – Open Registry businesses • Open Registry acquisition

• Registry, registrar & trademark validation services

• Independent group of domain service companies

• Highly respected ICANN & industry player

• Complementary to .trust suite of services

• Open Registry S.A. – backend registry operator • Full suite of registry services - application consultancy, technical operations

& post-launch management

• CHIP – service provision - trademarks • Provides software, billing and support for Trademark Clearinghouse (TMCH)

• Contracts directly with brand owners that submit trademark data to TMCH

• TMCH provides a centralised database of over 33,000 verified trademarks - connected to every new TLD

• Nexperteam – B2B Registrar

• Managing over 8,000 domain names for large base of customers

• Domain registrar services - domain name registration, name serving to email and web hosting

34

Domain Services Internet history & development

35

Domain Services - .trust gated community • A safe gated community - all .trust domains will:

• Be physically verified as rightful owners • Operate on secure registrar & DNS infrastructure • Commit & actively work to comply with a high-bar of security set

within the .trust policies

36

Domain Services - .trust Technical Policy

37

Domain Services - Continual Monitoring Service

• Assessment is performed using a full suite of automated security & custom tools combined with penetration testing

• Network, web application, malware tools are used to detect easily identifiable vulnerabilities

• Penetration testing & custom tools are used when automated tools are inaccurate, non-existent or could harm production systems

• Full Security Operations Centre support

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Why change? • Security breaches have far reaching consequences impacting reputation,

customer confidence, data protection & the future of the organisation • The Target breach in November 2013 is having repercussions to this day • $20m Mastercard fine

December 2013

May 2015

Locations

Europe Manchester - Head Office Amsterdam Antwerp Basingstoke Brussels Cambridge Copenhagen Cheltenham Edinburgh Glasgow Leatherhead Leeds London Luxembourg Madrid Malmö Milton Keynes Munich Vilnius Wetherby Zurich

Australia Sydney

North America Atlanta Austin Chicago New York San Francisco Seattle Sunnyvale

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