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

February / March 2012

Overview The Experian investment case 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 Focus on data & analytics | Drive profitable growth | Use cash wisely 2

Overview Experian business segments Credit Decision Marketing Interactive Services Analytics Services  Large databases  Value-added  Sophisticated  Direct to of information, products targeted consumer used to manage marketing credit  Used to convert risk monitoring  Sell across c.30 data into valuable services  19 consumer countries decisions for  Identity theft credit bureaux businesses  Segmented products  13 business  Provides software, over 2.3bn  Online lead credit bureaux scores and consumers analytics generation  Automotive  Delivery over information email, mobile, social 28% 43% 10% 19% 3 Business segment percentages are proportion of global revenue for the year to 31 March 2011

Overview Global revenue FY11 By business line By geography North America Interactive 28% 54% Credit Services 43% UK & EMEA/Asia Marketing Ireland Pacific 12% Latin Decision 17% Services 19% America Analytics 17% 10% By customer segment Financial services Diverse portfolio by Direct to 33% consumer 20% geography, business Other 11% line and customer Retail 15% segment Media 2% 4% 4% 6% 5% Telecoms/Utilities Insurance Public Sector/Education Automotive Revenue for the year to 31 March 2011 4 4

Overview Market leader with unparalleled global reach and range 4,500 4,214 1 4,000 3,500 Other regions Global revenue US$m 46% North America 3,000 2,500 1,960 2 2,000 1,759 2 19% 1,500 29% 23% 1,160 1 957 3 1,000 14% 20% 620 4 500 33% 37% 54% 81% 71% 80%* 77% * 86%* 63%* 55% 80% 86% * 67% * 0 FICO Experian Equifax D&B Acxiom TransUnion More than double the size of nearest competitor, broader range 1 Year ended 31 March 2011 *US only 2 Year ended 31 December 2011 Source: Latest full year revenue, company SEC filings 5 5 3 Year ended 31 December 2010 4 Year ended 30 September 2011

Financial overview Seven year revenue performance trend 1,300 4,500 4,214 Revenue US$m Financial 3,803 objectives: EBIT US$m 4,000 3,790 1,100 3,712 3,407  Mid – high single 3,500 digit organic 900 2,930 revenue growth 3,000 2,461 700  Maintain or 2,500 improve margin 500 490 616 747 848 896 932 1,046 EBIT 2,000  Convert at least Total 17% 28% 15% 13% 8% 6% 11% EBIT growth 90% of EBIT into 300 1,500 operating cash FY05 FY06 FY07 FY08 FY09 FY10 FY11 Revenue growth 18% 30% 14% 14% 8% 2% 10% 9% 12% 8% 4% 3% 2% 8% Organic growth EBIT margin 20.0% 21.0% 21.9% 22.8% 23.6% 24.5% 24.8% (direct business) Operating cash 99% 101% 102% 100% 99% 100% 98% conversion 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 6 6 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.

Financial overview Strong H1 performance and full-year outlook Q3 organic revenue EBIT US$m, growth % Revenue US$m and organic revenue growth % and margin % growth of 7% 6% 12% Outlook: 2,287 560 7% 1% 8% • H2 organic 1,985 1,830 483 revenue at least as 7% strong as Q3 442 For full year: • modest margin 24.5% 24.3% 24.2% improvement • strong cash conversion FY11 FY12 FY10 FY11 FY12 FY10 H1 H1 H1 H1 H1 H1 EBIT margin 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 7 7 other small discontinuing activities

Financial overview Organic revenue growth contribution H1 FY12 Latin America Interactive excl. NA Credit Services Credit Services excl. Lead Gen. 6% 19% Latin America 4% Global Marketing Services 10% Global NA Decision Lead Gen. Analytics 8% (30%) H1 FY11 NA Lead Latin America Gen. Credit Services 49% 22% Global Interactive excl. NA Global Marketing Credit Services excl. Decision Lead Gen. 1% Services 10% Latin America (1%) Analytics (1%) 8 8

Strategic overview Structural growth drivers underpinning growth 9 9

Strategic overview Global growth programme: key initiatives Expanding geographically Product innovation New customer segments • North America • SME • Credit bureaux: business information • Colombia products • Healthcare payments • Next-generation • India • Insurance bureau • Australia • New Decision • Public sector • Positive data Analytics platform • Telecommunications • Marketing Services • New Marketing product roll-out Services platforms • Utilities • Consumer Direct roll- • Consumer protection out products 10 10

Strategic overview 1 2 3 4 5 Strategic objectives: H1 progress 1 Extend our global lead in credit information and analytics 2 Build successful businesses in new customer segments 3 Build large-scale operations in major emerging consumer economies 4 Become global leader in digital marketing services Become the most trusted consumer brand for credit 5 information and identity protection services 11 11

Extend global lead in credit information and analytics 1 2 3 4 5 Data investment Bureau data: recently acquired UK UK Cheque UK US US US account Utility data Pay day loans Utility trades Rental data Income Insight Data Transaction Lab Mortgage data Deposit data Card data data • 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 12 12

Extend global lead in credit information and analytics 1 2 3 4 5 Data expansion Bureau data: expansion areas Australia Denmark Spain Netherlands Australia consumer positive data positive data positive data business credit credit India Brazil Brazil retail Brazil consumer negative data positive data property data 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 13 13

Build successful businesses in new customer segments 1 2 3 4 5 Progress in H1 SME • Leading in UK SME sector with the acquisition of LM Group Public sector • Healthy pipeline for fraud and authentication • Significant recent wins Healthcare payments • MPV brings new addressable market in physician sector About two thirds of revenue is outside Financial Services 14 14

Build large-scale operations in major consumer economies 1 2 3 4 5 Update on Computec acquisition • Acquired 98% stake for US$380m “ • Expect to move to 100% El buró de ownership in early 2012 crédito que • Year ended 31 Dec 2010 administra la base de • Revenue US$83m datos más completa ” • EBIT 1 US$22m del país • Underlying revenue growth c.20% 1 Consolidated operating income before interest, foreign exchange gains, profit on disposal of business and tax. 15 15

Become global leader in digital marketing services 1 2 3 4 5 Structured for growth Data Email Mobile Social Strategy: US • Focus on 10 major markets UK France • Build multi-channel capability Germany • Email in 10 major Spain markets, signing global client deals Australia • 8 countries have four China or more services India Japan Brazil 16 16

Trusted consumer brand for credit information and identity protection 1 2 3 4 5 H1 progress Credit reference Strategy: • Multi-brand approach • Grow in protection space • Build loyalty Identity • Evaluate geographic expansion Other 17 17

Capital structure Net debt/EBITDA US$bn Net debt to EBITDA • Serasa put 4.0 2.25 option value US$865m 1 3.5 2.00 • With Computec, 3.0 pro-forma net 1.75 debt to EBITDA 2.5 at top end of target range 2.0 1.50 1.5 1.25 1.0 1.00 0.5 0.0 0.75 FY09 FY10 FY11 H1 FY12 Target net debt to Net debt Serasa put option Net debt to EBITDA EBITDA range 18 18 1 Valuation at 30 September 2011

Summary Driving premium growth The data New customer Big in growing Digital Great consumer edge segments economies experts brands Creating value now and into the future 19 19

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