ISG Investor Presentation

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2023

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#11SG ISG Investor Presentation December 2023 ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved.#2Forward-Looking Statement This communication contains "forward-looking statements" which represent the current expectations and beliefs of management of ISG concerning future events and their potential effects. Statements contained herein including words such as "anticipate," "believe," "contemplate," "plan," "estimate," "target," "expect," "intend," "will," "continue," "should," "may," and other similar expressions, are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future results and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated. Those risks relate to inherent business, economic and competitive uncertainties and contingencies relating to the businesses of ISG and its subsidiaries including without limitation: (1) failure to secure new engagements or loss of important clients; (2) ability to hire and retain enough qualified employees to support operations; (3) ability to maintain or increase billing and utilization rates; (4) management of growth; (5) success of expansion internationally; (6) competition; (7) ability to move the product mix into higher margin businesses; (8) general political and social conditions such as war, political unrest and terrorism; (9) healthcare and benefit cost management; (10) ability to protect ISG and its subsidiaries' intellectual property or data and the intellectual property or data of others; (11) currency fluctuations and exchange rate adjustments; (12) ability to successfully consummate or integrate strategic acquisitions; (13) outbreaks of diseases, including coronavirus, or similar public health threats or fear of such an event; and (14) engagements may be terminated, delayed or reduced in scope by clients. Certain of these and other applicable risks, cautionary statements and factors that could cause actual results to differ from ISG's forward-looking statements are included in ISG's filings with the U.S. Securities and Exchange Commission. ISG undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances. * isGⓇ ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. 2#3Experts Operational Improvement and Performance A leading global technology research and advisory firm (Nasdaq: III) founded as a start-up in 2006. Cash $18.7M 89% Re-occurring Revenue** * isGⓇ Go-To-Firm Revenue* Digital Transformation $299M Digital Sourcing 20 Countries 1,600 Employees ISG: Who We Are 55% Digital Revenue *LTM September 30, 2023 **Share of total firm revenue from repeat clients ***Q3 2023 900+ Blue Chip Clients 43% Recurring Revenue*** Adj. EBITDA* $43M 75+ Top 100 Enterprises Choose ISG Buyers C-Suite Technology Services ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. Research Benchmarking Consulting Governance Automation Subscription, Custom, Events Largest Source of Validated IT Metrics Strategy, Digital, Operations, Change Contract and Ecosystem Management Pure-play IA business 3#4ISG Digital * isGⓇ HD Leading Research and Advisory Firm Digital Strategy and Solutions #1 Sourcing Advisor in the world: $18B TCV per year 50%+ Share of Advised Market Research Technology Provider market analysis, benchmarking and deal pursuit advisory Enterprise Client Satisfaction and IT Benchmarking ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. SaaS Platforms ISG proprietary SaaS platforms: isg GovernX İSG ProBenchmark İSG Inform™ 4#5App Modernization * iSGⓇ Customer Experience ISG - Digital Cloud Workplace of the Future ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. Cyber Security E Artificial Intelligence AIT 5#6* iSGⓇ AI Advisory Strategy Operating Model Al infrastructure AI Focus Areas AI Sourcing Identify & Select Provider Ecosystem ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. AI for ISG SaaS Platforms Smart Contracting 6#7* isGⓇ IBM accenture *Growing faster than GDP $1T ISG Addressable Market workday. Services Industry* More than 600 Service and Technology Providers including: USA-Based Europe-Based India-Based ORACLE Global $100+B Atos Capgemini SAP Sourcing Industry BT TATA Infosys ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. HCL wipro 7#8Client Example: From Services to Solutions $370K 1. Services Requested Office 365 Strategy IT Benchmarking IT Business Issues Revealed * iSGⓇ 2. ISG Capabilities Digital Strategy and Sourcing Network/5G ● Transformation Governance and Risk 4. Three-Year Results Software Research Enterprise Change Agile Tech Model Revamped Provider Ecosystem Client Savings of over 3 years 3. ISG Solutions ● Tech Strategy and Roadmap ● Execution/Implementation ● Multi-Phased Digital Transformation Solution using full array of ISG capabilities $13.6M $100M ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. 00#9Banking & Financial Services Managing Disruption in the Banking Industry 12 of the top 15 Global Banking & Financial Services Firms BANK OF AMERICA iSGⓇ BNP PARIBAS Serving Global Leaders Across 20 Industries Consumer Services Digital is Creating Greater Expectations for CPG 9 of the top 15 Global CPG & Consumer Services Companies, Retailers Nestlē P&G Health Sciences Digitizing an Expanding Industry X 14 of the top 15 Global Pharma and Health Services Companies Cigna. Insurance Accelerated Digitization of the Value Chain S 11 of the top 15 Global Insurance Companies Pfizer Allianz Munich RE € Manufacturing Technology Modernization ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. 12 of the top 15 Global Auto and Other Manufacturers ♡ SIEMENS Media & Technology Migration to High-speed Networks, Increasing LOU 15 of the top 15 Global Media, Telecom, Tech Companies Tverizon#10Adjust our Go To Market to Current Macroeconomic Climate Minimal Impact Profitability, Demand and Inventory Levels * isGⓇ 2 Retail (excl FMCG) Travel Tourism Hospitality 1 Challenging The macroeconomic climate per section drives the messaging Seize Unique Growth Opportunities Choose Your Battles Automotive Legacy Hi-Tech Media Mining Airlines Construction Survive and Stabilize Financial Services Specialty Retail & D2C Logistics Post Unicorn Hi-Tech Chemicals Utilities Manufacturing Oil & Gas Groceries/FMCG Banking Med Device Healthcare Payers Tech Startups Healthcare Providers Short-term liquidity/Debt Levels Invest Wisely Insurance 3 Pharma Telecom 4 Minimal Impact ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. 1 Cost Transformation 2 despite restored supply chains 3 Oscillating demand 4 Investments have no large headwinds Continuously improve EBITDA and offerings 10#11ISG: The Authoritative Industry Voice ISG Recognition Prized by Industry Leaders probecx NEXT GENERATION DRIVEN foundever™ Named Leader in ISG Provider Lens™ 2023 Global Quadrant Report * iSGⓇ Customer Experience Services Intelligent CX (Al & Analytics) Recognized as a 'Leader' in ISG Provider Lens™M 2023 MICROLAND Network - Software Defined Solutions and Services T Systems T-Systems awarded "Leader" status by ISG for Google Cloud Capabilities As well as "Rising Star" status for implementation and integration services 2023 ISG Provider Lens™ Quadrant Report [A4] Probe CX awarded leader position in all three categories. A31 L&T Technology Services Recognized as a 'Leader' in Digital Engineering Services 2023 Design & Development (Products, Services, and Experiences by ISG. Infosys Recognized as an ISG Provider Lens Leader Life and Retirement Insurance Platform Solutions ÏSG Index™ The authoritative industry voice for global outsourcing market Held Each Quarter: 84 Consecutive Briefings Attended by Enterprise, Provider, Finance, Academia Core Data Based on ISG Contracts Database Branded as the Guiding Industry Benchmark ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. 11#12Ventana Research Acquisition Adds to ISG Software Coverage İSG Provider Lens™ Showcases Provider Leadership Positions Enables Providers to be recognized for their expertise 50 Studies 300 Quadrants * 1SGⓇ İSG Software Insights iSG Provider Services ISG ProBenchmark Leveraging the Advisor Channel Price to Win for Provider Sales Teams Technology Expertise & Insights Providing insights and knowledge of technology vendors and products 25 Buyers Guides 1000 Vendors Dv VENTANA RESEARCH IS NOW ISG PART OF Engage, educate, build relationships with advisors 21,000 Delivery Units Ensure price aligns with the market so you don't under or over price 7 Service Lines ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. isg Events™ Thought Leadership Brings together enterprises, advisors, our research, and Providers 18 Events 12#13We Simplified ISG, Leading to ISG NEXT Our expert ISG Digital and ISG Enterprise teams develop solutions that help clients "go digital" and realize value from their digital investments. * 1SGⓇ ISG Digital Two Global Client Solution Areas ISG Enterprise Technology Modernization (XaaS) 380 Center of the dimo Cognitive & Analytics Contact Future Global Business Operations Mch Enterprise Change ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. Cyber Security Enterprise Agility & Innovation Employee Collaboration & Experience Technology Adoption Cost Optimization 萬 Digital Platform & Offerings 13#14* iSGⓇ Technology Modernization (XaaS) Global Business Operations ISG iFlex™ Global Delivery Model Our ISG iFlexTM integrated delivery model allows us to rapidly deploy our global resources to solve any client challenge, regardless of geography or time zone. Result: Increased Productivity, Speed and Profitability 88 Enterprise Agility & Innovation a Cyber Security dö Cognitive & Analytics Technology Adoption ➡ ↑ Contact Center of the Future Employee Collaboration & Experience Digital Platform & Offerings Enterprise Change Cost Optimization ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. Digitally Transformed Enterprise In the end, we help our clients achieve operational excellence and faster growth. 14#15* iSGⓇ Targets by End of 2025 Adjusted EBITDA Margin 17% +200 bps from YE 22 Recurring Revenues $150M Up from $100M at YE 22 ISG NEXT – Phase II 1SG NEXT How We Will Get There • Scale up our SaaS-based platform business Expand our subscription Research business Grow our suite of digital solutions (cybersecurity, digital engineering, enterprise cloud) • Grow enterprise services (change management and TaaS, HCM, cost optimization) ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. 15#16* iSGⓇ The ISG Competitive Advantage Independence and Objectivity Proprietary Data Assets and Market Intelligence Delivery of 20X ROI to cost Global Reach Deep, Trusted Relationships With our Clients ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. 16#17* iSGⓇ ISG Competitive Landscape No one competitor has the breadth of ISG offerings. #1 Competitor Benchmarking Internal Procurement & Research Gartner Departments ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. Consulting Audit Firms, Small Independents, Country-specific 17#18$249 2020 * 1SGⓇ Revenues* +20% ISG Financials - Driving Double Digit Earnings +24%CC *Note: values are in millions of dollars $299 2023 ** Adjusted EBITDA* $28 2020 ** LTM September 30, 2023 50%49+ +54% $43 2023** ISG Confidential. © 2023 Information Services Group, Inc. All Rights Reserved. $0.28 2020 Adjusted EPS %89+ $0.47 ** 2023* 18

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