1

Full year results for the 12 months ended 31 May 2014 July 2014

Agenda • Highlights

• Growth track record

• Group financial performance

• Escrow & Assurance

• Domain Services

• Current trading & outlook

• Appendix

2

3

Group revenue up 12% to £110.7m

Escrow revenue up 7% to £30.5m

7%

Assurance organic revenue growth 11%

11%

Adjusted diluted EPS up 11% to 9.3p

11%

Assurance revenue up 13% to £80.2m

13%

Total dividend up 13% to 3.50p

13%

Assurance operating profits up 17% to £14.0m

17%

Adjusted Group operating profit 9%

9%

Escrow operating profits up 8% to £18.1m

8%

Highlights

12%

Group Escrow revenue up 7% to £30.5m

7%

Launched

.trust

0

20

40

60

80

100

120

05 06 07 08 09 10 11 12 13 140

5

10

15

20

25

30

05 06 07 08 09 10 11 12 13 14

Revenue (£m) - CAGR 27% Adjusted operating profit (£m) - CAGR 18%

0.00

2.00

4.00

6.00

8.00

10.00

05 06 07 08 09 10 11 12 13 14

Fully diluted adjusted EPS (p) - CAGR 18%

0.000.501.001.502.002.503.003.504.00

05 06 07 08 09 10 11 12 13 14

Dividend (p) - CAGR 27%

Full year

Interim

15 years of continuous growth

4

2014 (£m)

2013 (£m)

Growth (%)

Revenue

Escrow UK 22.5 20.9 8%

Escrow Europe 3.3 3.2 3%

Escrow US 4.7 4.4 5%

Escrow 30.5 28.5 7%

Cyber Security Consulting 71.0 61.9 15%

Web Performance 9.2 8.8 5%

Assurance 80.2 70.7 13%

Total revenue 110.7 99.2 12%

Revenues

5

Operating profitability Margin

(%) 2014 (£m)

2013 (£m)

Growth (%)

Contribution

Escrow 59% 18.1 16.7 8%

Assurance 18% 14.0 12.0 17%

Operating contribution 29% 32.1 28.7 12%

Domain Services - (2.1) (1.2) 75%

Corporate - (4.0) (3.6) 11%

Adjusted operating profit 24% 26.0 23.9 9%

Adjusted pre tax profits 25.3 23.0 10%

Adjusted operating profit margin - 24% 24% -

Adjusted fully diluted EPS - 9.3p 8.4p 11%

Dividend per share - 3.5p 3.1p 13%

6

Reconciliation of adjustments

7

Exceptional Acquisition

Related Income

Exceptional Costs

Amortisation of acquired intangibles

Share Based

Payments

Adjusted Operating

Profit

Reported Operating

Profit

1.9

(0.6)

(2.1)

(1.1)

26.0

24.1

£m

29

28

27

26

25

24

23

22

Interest Unwind of the

Discount

Pre-Tax Profits

(0.7) (0.1) 23.2

Cash, capital & banking • Continued strong cash conversion at 120% of operating profits (116% in 2013) • Capital expenditure £10.5m (2012 in £4.9m)

• Domain Services development costs - £3.5m • Tangible assets including office refurbishments - £3.1m • New group wide IT system - £1.6m • Operational systems infrastructure & product upgrades – £2.3m

• Net debt £23.6m (£25.3m at May 2013) • £40m RCF plus £5m overdraft RCF to July 2016 • Maximum deferred consideration due is £3.9m

• Matasano - £2.2m to be paid in full December 2014 • FortConsult - £1.7m payable in two instalments - June 2015 & June 2016

8

Cash flow

2014 (£m)

2013 (£m)

Cash generated from operations 28.9 23.0 Net interest paid (0.8) (0.8) Income taxes paid (4.5) (3.0) Acquisition of capital assets (10.8) (4.9) Acquisition of businesses (4.3) (10.5) Cash inflow before financing activities 8.5 3.8 Receipt of bank loans 6.8 1.2 Proceeds from issue of shares 0.6 0.3 Purchase of own shares (2.1) 0.0 Dividends paid (6.8) (5.8) Increase/ (decrease) in cash in the year 7.0 (0.5)

9

10

International mix of business

11

Revenue : £4.7m Headcount : 28 FTE

US

Revenue : £3.3m Headcount : 13 FTE

Europe

Revenue : £22.5m Headcount : 102 FTE

UK

Escrow

Escrow Revenue £30.5m Contribution £18.1m Headcount 143 FTE

Escrow & UK

Escrow • Escrow revenues increased by 7% • Escrow profits increased by 8% • SaaS & ICANN are delivering good opportunities • Renewals up 1% to £17.9m (2013: £17.7m) Escrow UK • Prices increased in 2013 – small increase planned for 2014 • Verification performance growth continues • Terminations unchanged at less than 12%

2014 (£m)

2013 (£m)

Growth (%)

Escrow revenue 30.5 28.5 7%

Escrow UK revenue 22.5 20.9 8%

Escrow contribution 18.1 16.7 8%

12

Escrow - Europe & US

Overseas • Single global Escrow brand – NCC Group • Solid performance from USA team - more co-ordinated • Excellent performance from Europe - new GM recruited • Revitalised sales teams delivering strong results • Overall global account management stronger & performing well

2014 (£m)

2013 (£m)

Growth (%)

Escrow US revenue 4.7 4.4 5%

Escrow Europe revenue 3.3 3.2 3%

13

14

Headcount : 25 FTE

Seattle

Headcount : 44 FTE

New York

Assurance

Assurance Revenue £80.2m Contribution £14.0m Headcount 712 FTE

Headcount : 493 FTE

UK & Europe

Headcount : 11 FTE

Austin

Headcount : 106 FTE

Headcount : 13 FTE

Australia

San Francisco

Headcount : 20 FTE

Chicago

Assurance

• Revenue growth of 13% • Solid organic growth of 13% • Margin currently at 18% (2013: 17%) - target still 20% • Integration of US businesses completed • New Danish opportunity very promising – European route to market • Global join up of service offering is a compelling, competitive advantage • Continued staff development, recruitment & retention remains primary focus • Globally recognised reputation for responsible, credible research

15

2014 (£m)

2013 (£m)

Growth (%)

Assurance revenue 80.2 70.7 13%

Assurance contribution 14.0 12.0 17%

Assurance

Cyber Security Consulting • Largest part of the Group • Revenues grew by 15% • US & UK are working effectively for international clients • Stable management teams Web Performance • Strong new business & renewal rates - 91% • Renewals growing to £6.7m (2013: £6.3m) • New products in development continue to enhance service

16

2014 (£m)

2013 (£m)

Growth (%)

Cyber Security Consulting 71.0 61.9 15%

Web Performance 9.2 8.8 5%

Global cost of cybercrime

Source: Cost of Cybercrime Report, Norton 2013 17

Arms race – unstoppable pace

• Cyber extortion • DDoS • Encryption of customer data • Malware (e.g. GoZeus, Cryptolocker)

• Cyber fraud • VOIP toll fraud • Phishing • Vishing • Fake customer invoices

• Hacking/hacktivism • Web applications • Cloud backups • Social media accounts • Waterholing • Supply chain attacks

• Mobile malware

18

Ultimate brand destruction – Target

• 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

19 December

2013 May 2014

Opportunity knocks with new gTLDs

66% users will use companies that provide reassurance about data protection & security (Deloitte Jan 13)

53% more likely to share personal info with a brand they trust (Deloitte Jan 13)

Only 38% think their data is secure (Deloitte Jan 13)

Only 9% are unconcerned about the safety of their personal information online (Deloitte Jan 13)

20

Domain Services – addressing a new landscape

21

Locations

Segments

Brands

Registrations to date

• New gTLD registrations have broken the million mark • Cost per annum to register all naming possibilities

would be prohibitive • 140 extensions for one bank would cost $52,000 pa • 315 gTLDs launched so far • 1.3m gTLDs registered • .xyz most popular with 88,000 registrations & counting

• Registrar giving them away for free & automatically • Number of strings registered by individuals with no

apparent link to the company in question • Some are registered by the brand owners

Extension Number Percentage

.xyz 88,711 8.72%

.club 67,892 6.67%

.guru 61,261 6.02%

.berlin 48,662 4.78%

.photography 37,802 3.72%

Top Five World Trademark Review

May 2014

22

Making the Internet safer - .trust

More than a new domain • .trust is about making the Internet a safer

place for businesses & consumers • .trust gives a clear signal that a site is a

safe place • .trust will protect an organisation’s

• Brand • Reputation • Customer data

• .trust communicates an organisation’s commitment to protecting its customers

23

The .trust gated community

24

• 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

Domain Services – expected financial implications

25

2014/15 2015/16 2016/17 No. of new customers 21 50 50

Total no. of customers 21 70 116

Total live sub-domains 42 196 342

(£m) (£m) (£m) Net revenue 1.0 5.5 8.9

Operating costs (5.3) (5.4) (6.6)

Contribution (4.3) 0.2 2.2

Margin - 3% 25%

Capital expenditure (5.1) (1.6) (0.5)

• Revenue deferred over 12 month period with 95% expected to renew • First customer live in October 2014 – subject to ICANN processes • Expect customers to move to .trust slowly

Current trading & outlook

• Continued strong growth across Escrow division • Assurance

• Security threat landscape is worsening • Scale & international reach is unique in security market

• Domain Services • .trust launched & first sites expected live this year

• Group orders & renewals of £53.0m • Group Escrow orders & recurring income of £20.9m (2013 at £20.2m)

• Renewals £18.0m • Verification order book £2.9m

• Assurance orders & recurring revenues £32.1m (2013 at £30.7m) • Assurance delivery order book £25.3m • Monitoring renewals £6.8m

• Confident about delivering another year of strong & consistent growth

26

Appendix

27

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

28

Our services

29

Internet history & development

30

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

31

32

Sector revenue concentrations

33

Escrow revenue concentrations

34

Assurance revenue concentrations

Europe Manchester - Head Office

Cheltenham

Edinburgh

Leatherhead

London

Milton Keynes

Amsterdam

Copenhagen

Munich

Zurich

North America Atlanta

Austin

Chicago

Mountain View

New York

San Francisco

Seattle

Australia Sydney