February / March 2012 Overview The Experian investment case Market - - PowerPoint PPT Presentation

February / March 2012

2

Overview

The Experian investment case

Focus on data & analytics | Drive profitable growth | Use cash wisely

Market leading global information company

• Unique proprietary data, coupled with value-added analytics
• Scalable business model

Strong market positions

• No. 1 or 2 position across our largest markets
• High barriers to entry

Global growth potential

• By expanding geographically, in new customer

segments and through innovation

Strong financial track record

• High quality, recurring revenues
• Highly cash generative with low capital intensity

3

Overview

Experian business segments

• Large databases
• f information,

used to manage risk

• 19 consumer

credit bureaux

• 13 business

credit bureaux

• Automotive

information

Credit Services

• Value-added

products

• Used to convert

data into valuable decisions for businesses

• Provides software,

scores and analytics

Decision Analytics

• Sophisticated

targeted marketing

• Sell across c.30

countries

• Segmented
• ver 2.3bn

consumers

• Delivery over

email, mobile, social

Marketing Services

• Direct to

consumer credit monitoring services

• Identity theft

products

• Online lead

generation

Interactive

19% 10% 43% 28%

Business segment percentages are proportion of global revenue for the year to 31 March 2011

4 4

Revenue for the year to 31 March 2011

Overview

Global revenue FY11

Diverse portfolio by geography, business line and customer segment

By customer segment

Financial services 33% Direct to consumer 20% Retail 15% Other 11% Public Sector/Education Automotive Insurance Telecoms/Utilities Media 2%

6% 4% 4% 5%

By business line

Credit Services 43% Decision Analytics 10% Marketing Services 19% Interactive 28%

By geography

North America 54% UK & Ireland 17% Latin America 17% EMEA/Asia Pacific 12%

5 5

*US only Source: Latest full year revenue, company SEC filings

Overview

Market leader with unparalleled global reach and range

More than double the size of nearest competitor, broader range

1 Year ended 31 March 2011 2 Year ended 31 December 2011 3 Year ended 31 December 2010 4 Year ended 30 September 2011

55% 67%* 33% 77%* 23% 80% 86%*

3,000 500 3,500 2,000 4,000 2,500 1,000 1,500

Global revenue US$m

Other regions North America Experian Equifax 54% 46% D&B Acxiom FICO 1,1601 6204 63%* 37% 71% 1,7592 29% 4,2141 81% 1,9602 19% 86%* 14% 9573 20% 80%* TransUnion

4,500

6 6

Financial overview

Seven year revenue performance trend

Global continuing sales and EBIT only. EBIT margin excluding FARES. Operating cash conversion adjusted to exclude FARES. FY05 to FY10 EBIT adjusted to exclude FARES (discontinued operation). FY06 and FY07 sales and EBIT adjusted to exclude MetaReward. FY07 and FY08 sales and EBIT adjusted to exclude Loyalty Solutions. FY08 and FY09 sales and EBIT adjusted to exclude French Transaction Processing business and other smaller discontinuing activities. FY10 and FY11 sales and EBIT adjusted to exclude small discontinuing activities. Sales and EBIT growth shown at constant FX rates.

1,500 2,000 2,500 3,000 3,500 4,000 4,500 300 500 700 900 1,100 1,300 FY05 FY06 FY07 FY08 FY09 FY10 FY11 3,407 3,712 3,790 3,803 4,214 747 15% 848 13% 896 8% 932 6% 1,046 11%

Total EBIT growth Revenue US$m EBIT

2,930 2,461 616 28% 490 17%

EBIT margin (direct business) Operating cash conversion Organic growth 21.9% 100% 8% 14% 22.8% 99% 4% 14% 23.6% 101% 3% 8% 24.5% 100% 2% 2% 24.8% 98% 8% 10% Revenue growth 21.0% 102% 12% 30% 20.0% 99% 9% 18% EBIT US$m

Financial

• bjectives:
• Mid–high single

digit organic revenue growth

• Maintain or

improve margin

• Convert at least

90% of EBIT into

• perating cash

7 7

Financial overview

Strong H1 performance and full-year outlook

Global continuing revenue and EBIT only. Growth at constant exchange rates and for continuing activities EBIT and EBIT margin exclude FARES. FY10 and FY11 revenue and EBIT adjusted to exclude UK account processing and

• ther small discontinuing activities

EBIT margin

EBIT US$m, growth % and margin % Revenue US$m and

• rganic revenue growth %

483 442 560

24.2% 24.5%

FY10 H1 FY11 H1 FY12 H1 FY10 H1 FY11 H1 FY12 H1

1,830 1,985 2,287

1% 7% 6% 24.3%

Q3 organic revenue growth of 7% Outlook:

• H2 organic

revenue at least as strong as Q3 For full year:

• modest margin

improvement

• strong cash

conversion

7% 8% 12%

8 8

Financial overview

Organic revenue growth contribution

H1 FY12

Credit Services excl. Latin America 4% Interactive excl. NA Lead Gen. 6% Global Decision Analytics 8% Global Marketing Services 10% Latin America Credit Services 19% NA Lead Gen. (30%) NA Lead Gen. 49% Credit Services excl. Latin America (1%) Global Decision Analytics (1%) Interactive excl. NA Lead Gen. 1% Global Marketing Services 10% Latin America Credit Services 22%

H1 FY11

9 9

Strategic overview

Structural growth drivers underpinning growth

10 10

Strategic overview

Global growth programme: key initiatives

• North America

business information products

• Next-generation

bureau

• New Decision

Analytics platform

• New Marketing

Services platforms

• Consumer protection

products

• Credit bureaux:
• Colombia
• India
• Australia
• Positive data
• Marketing Services

product roll-out

• Consumer Direct roll-
• ut
• SME
• Healthcare payments
• Insurance
• Public sector
• Telecommunications
• Utilities

Product innovation Expanding geographically New customer segments

11 11

Become the most trusted consumer brand for credit information and identity protection services Extend our global lead in credit information and analytics Build successful businesses in new customer segments Become global leader in digital marketing services Strategic overview

Strategic objectives: H1 progress

Build large-scale operations in major emerging consumer economies

1 2 3 4 5

1 2 3 4 5

12 12

Bureau data: recently acquired

Data Lab

Extend global lead in credit information and analytics

Data investment

UK Cheque account

• New sources of data in strong demand
• R&D Data Lab drives value
• Integrating client data and Experian data
• US and UK Credit Services benefit from investments

UK Utility data UK Pay day loans US Utility trades US Rental data US Income Insight Mortgage data Transaction data Card data Deposit data 1 2 3 4 5

13 13

Extend global lead in credit information and analytics

Data expansion

Brazil property data Spain positive data Netherlands positive data Denmark positive data India consumer credit Australia consumer credit

• New negative data partnership in Brazil
• Progress towards adding positive data in Brazil
• Competition approval for Australia JV bureau
• Developing plans to add positive data in other markets

Australia business credit Brazil positive data Brazil retail negative data

Bureau data: expansion areas

1 2 3 4 5

14 14

2

Build successful businesses in new customer segments

Progress in H1

About two thirds of revenue is outside Financial Services

SME Public sector Healthcare payments

• Leading in UK SME sector with the acquisition of LM

Group

• Healthy pipeline for fraud and authentication
• Significant recent wins
• MPV brings new addressable market in physician

sector

1 3 4 5

15 15

3

Build large-scale operations in major consumer economies

Update on Computec acquisition

• Acquired 98% stake for

US$380m

• Expect to move to 100%
• wnership in early 2012
• Year ended 31 Dec 2010
• Revenue US$83m
• EBIT1 US$22m
• Underlying revenue

growth c.20%

1 2 4 5

El buró de crédito que administra la base de datos más completa del país

“ ”

16 16

Become global leader in digital marketing services

Structured for growth

Strategy:

• Focus on 10 major

markets

• Build multi-channel

capability

• Email in 10 major

markets, signing global client deals

• 8 countries have four
• r more services

Data Email Mobile Social

US UK France Germany Spain Australia China India Japan Brazil

1 2 3 4 5

17 17

Strategy:

• Multi-brand

approach

• Grow in protection

space

• Build loyalty
• Evaluate

geographic expansion

Identity Credit reference Other

Trusted consumer brand for credit information and identity protection

H1 progress

1 2 3 4 5

18 18 0.75 1.00 1.25 1.50 1.75 2.00 2.25 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 FY09 FY10 FY11 H1 FY12

Capital structure

Net debt/EBITDA

Net debt Serasa put option Net debt to EBITDA

US$bn Net debt to EBITDA

Target net debt to EBITDA range

• Serasa put
• ption value

US$865m1

• With Computec,

pro-forma net debt to EBITDA at top end of target range

19 19

New customer segments

Summary

Driving premium growth

Creating value now and into the future

Digital experts Big in growing economies The data edge Great consumer brands

Appendix

21

Appendix

Revenue and EBIT by geography

All figures above on continuing basis Growth at constant exchange rates

7% 6%

Six months ended 30 September US$million Total growth 2011 2010

Revenue North America UK and Ireland EMEA/Asia Pacific Total revenue 1,144 399 284 2,287 7% 8% 18% 11% 2% 6% 1,067 349 219 1,985 EBIT – continuing activities 560 12% 483 EBIT margin 24.5% 24.3% Latin America 460 20% 20% 350 Central activities (28) (25) EBIT before central activities 588 12% 508 7% 7% 2% 7% 27%

Organic growth

H1 FY12 Q3 FY12

22

Appendix

Group benchmark earnings

Growth at actual exchange rates.

charges in respect of the demerger-related equity incentive plans, exceptional items, financing fair value remeasurements and

• tax. It includes the Group’s share of associates’ pre-tax profit.

2011 2010 Growth

(25) (38) Benchmark non-controlling interest (98) (122) Benchmark taxation 352 417 Benchmark PAT 20% 450 539 Benchmark PBT1 16% 327 379 Benchmark earnings 16% 484 560 Total EBIT (34) (21) Net Interest Dividend per share, US cents Benchmark EPS, US cents 10.25 38.3 32.4 9.00 18% 14%

Six months ended 30 September US$million

989 1,008 Weighted average number of shares 986 1,002 Closing number of shares 21.8% 22.6% Benchmark taxation rate

23

Appendix

FY12 modelling considerations

Net interest

• Net interest in the region of US$50m to US$55m, after a net

pension credit of US$11m, at current rates

Capital expenditure

• Capital expenditure expected to be approximately

US$450m, reflecting investment in acquisitions and the impact of foreign exchange movements

Tax

• Benchmark tax rate of c.24%
• Cash tax rate in the range of 12% to 15%

Acquisition contribution

• c.4% revenue contribution from acquisitions in H2 FY12

Foreign exchange

• Modest FX impact in H2 if current rates prevail

24

Appendix

Cash flow performance

Six months ended 30 September 2011 US$million

560 (201) 155 (81) 436 326 (24)

EBIT Retained in associate Operating cash flow Working capital Capital expenditure Sale of fixed assets Depreciation and amortisation Dividends to NCIs Free cash flow Net interest

78% conversion

• f EBIT into
• perating cash

flow 86% conversion

• f benchmark

earnings into free cash flow

Tax

1 2 (50) (36)

25 25

Appendix

EBIT margin by geography

24.3% 0.3% 0.3% 0.2% (0.3%) 0.1% 24.9% (0.4%) 24.5% H1 FY11 H1 FY12 Acquisitions Mix EMEA/AP UK & Ireland Latin America North America H1 FY12 before acquisitions

26

Appendix

Credit Services: our business and market influences

Market influences Our business

• We build and manage large databases of credit

application and payment histories of consumers and businesses

• We help clients manage the risks associated with

lending money so they can:

• decide who to lend to
• set appropriate lending limits
• take action on overdue accounts
• Competition between lenders for new customers
• Need to monitor risk in lending portfolios
• Growth in demand in new customer segments
• Growth in credit active population in emerging markets

27

Appendix

Credit Services

All figures above on continuing basis Growth at constant exchange rates

377 116 107 1,037 5%

• 3%

10% 348 33.6% 437 8% 2% 11% 12% 12% 19% 19% 349 108 88 880 297 33.8% 335

Six months ended 30 September US$million Total growth 2011 2010

Revenue North America UK and Ireland EMEA/Asia Pacific Total revenue Latin America EBIT EBIT margin 7% 2% 6% 15% 28%

Organic growth

H1 FY12 Q3 FY12

28

Appendix

Decision Analytics: our business and market influences

Market influences Our business

• Need for sophisticated prospecting and risk

management tools

• Standardisation by our clients to create single customer

experience

• Growth in demand for fraud prevention and

authentication tools

• Client willingness to invest in large software platforms
• We provide software, scores and analytics to financial

services clients

• We help clients at all stages of the lending cycle to:
• identify new customers
• segment existing customers
• manage portfolios and optimise collections
• We provide detection and fraud prevention services

29

Six months ended 30 September US$million

Total growth 2011 2010

Revenue North America UK and Ireland EMEA/Asia Pacific Total revenue Latin America

Appendix

Decision Analytics

(4%) 8% 10% 52 (4%) 8% 14% 82 55 194 10% 14% 5 61% 61% (9%) 49 25.3% 96 59 223 59 9 47 21.1% EBIT EBIT margin

All figures above on continuing basis Growth at constant exchange rates

(9%) 3% 4% 9% 60%

Organic growth

H1 FY12 Q3 FY12

30

Appendix

Marketing Services: our business and market influences

Market influences Our business

• Spending by retailers on marketing in US & UK
• Strong growth in emerging markets
• Secular shift from traditional to digital advertising
• Growing demand for intelligent solutions
• Growth in demand for global services
• We own unique data on consumer attributes
• We use sophisticated marketing strategies to help
• rganisations identify, understand, target and engage

their best customers through:

• unrivalled data on consumers
• systems, analytics & platforms that puts data to work
• ability to help clients understand and measure

effectiveness of campaigns

31

EBIT EBIT margin

Six months ended 30 September US$million Total growth 2011 2010

Revenue North America UK and Ireland EMEA/Asia Pacific Total revenue Latin America

Appendix

Marketing Services

175 191 115 118 438 9% 6% 41% 16% 9% 1% 21% 10% 102 76 363 60 13.7% 11% 53 14.6% 14 35% 18% 10

All figures above on continuing basis Growth at constant exchange rates

7% 2% 17% 7% (15%)

Organic growth

H1 FY12 Q3 FY12

32

Appendix

Interactive: our business and market influences

Market influences Our business

• Rising awareness of uses of credit information

and benefits of credit monitoring

• Growth in personal identity theft
• We provide online services directly to consumers via

subscription, including:

• access to their detailed credit history
• access to their credit scores
• credit monitoring for identity protection purposes
• Our online lead generation services help businesses

target offers to consumers e.g. loans or insurance

• We provide online comparison shopping services

33

EBIT EBIT margin

Six months ended 30 September US$million Total growth 2011 2010

Revenue North America UK and Ireland Total revenue

Appendix

Interactive

All figures above on continuing basis Growth at constant exchange rates

517 72 5% 19% 7% (5%) 19% 491 57 548 133 22.6% 21% 109 19.9% 589 (2%) (4%) 29% (1%)

Organic growth

H1 FY12 Q3 FY12

34

Appendix

Experian American Depositary Receipt (ADR) program

Experian ADR shares trade on the OTCQX under the following information:

Symbol EXPGY CUSIP 30215C101 Ratio 1 ADR : 1 ORD Country United Kingdom Effective Date October 11, 2006 Underlying SEDOL B19NLV4 Underlying ISIN GB00B19NLV48 U.S. ISIN US30215C1018 Depositary BNY Mellon

For ADR shareholder enquiries, please contact:

Shareholder Relations Bank of New York Mellon PO Box 358516 Pittsburgh PA 15252 - 8516 United States T: + 1 201 680 6825 (From the US: 1-888-BNY-ADRS, toll free) E: shrrelations@bnymellon.com W: www.adrbnymellon.com

35

Experian Cardinal Place 80 Victoria Street London SW1E 5JL Tel: +44 (0)203 042 4200 Website: www.experianplc.com Nadia Ridout-Jamieson Peg Smith Director of Investor Relations Executive Vice-President Email: nadia.rjamieson@experian.com Email: peg.smith@experian.com Sarah Schibli Investor Relations Analyst Email: sarah.schibli@experian.com

Appendix

Contacts

36

10 May 2012 Preliminary results announcement 13 July 2012 Interim management statement, first quarter 18 July 2012 Annual general meeting 8 November 2012 Interim results announcement

Appendix

Event calendar

37

• This presentation is being made only to, and is only directed at, persons to whom this

presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents.

• Information in this presentation relating to the price at which relevant investments have been

bought or sold in the past or the yield on such investments cannot be relied upon as a guide to the future performance of such investments.

• This presentation does not constitute or form part of, and should not be construed as, an
• ffering of securities or otherwise constitute an invitation, inducement or recommendation to any

person to underwrite, subscribe for or otherwise acquire securities in any company within the Experian group (the “Group”).

• Certain statements made in this presentation are forward looking statements. Such statements

are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results expressed or implied in these forward-looking statements. Forward-looking statements speak only as of the date of this presentation.

• This presentation contains certain non-GAAP financial information. The Group’s management

believes that these measures provide valuable additional information in understanding the performance of the Group or the Group’s businesses because they provide measures used by the Group to assess performance. Although these measures are important in the management of the business, they should not be viewed as replacements for, but rather as complementary to, the GAAP measures.

Appendix

Disclaimer