Experian - contents Overview Growth drivers in the UK - PDF document

Experian – a portfolio of opportunities September 2005 Richard Fiddis Managing Director, UK, Ireland and Northern Europe Experian - contents • Overview • Growth drivers in the UK – Cross-selling – Fraud – Public sector – Business information and solutions • International opportunities • Experian Interactive • Appendix 2

Experian Experian is a global leader in providing information solutions to organisations and consumers We help organisations find, develop and manage profitable customer relationships; with information, decision-making solutions and processing services We empower consumers to understand, manage and protect their personal information and assets 3 Experian – helping organisations Enables m ajor banks to reduce bad debt losses Helps retailers to grow custom er loyalty and cross-sell new products Prevents fraud for online retailers 4

Experian – helping consumers Enabled 4 4 m illion US consum ers to refinance their m ortgage Helps a m obile phone com pany to offer the right services to its 1 3 m users Told over 8 m consum ers by text and e-m ail about changes to their credit report 5 Experian - what we do I nform ation is the foundation of our business Catalogue Consumer Business Vehicle Insurance Consumer purchasing credit credit histories databases marketing habits 300m plus c. 25m c. 500m c. 30m c. 105m US c. 120m consumers businesses vehicles policies households households I NFORMATI ON Credit Marketing 6

Experian - what we do Solutions add value to the inform ation SOLUTI ONS Application Classifying Econom ic Scoring Customer Fraud and consumers analysis and data prevention account and and decisions integration processing businesses forecasting Transact Strategy Hunter Business / Autoscore Truvue Mosaic Manager / Detect Strategies / GEMS I NFORMATI ON Credit Marketing 7 Experian – balanced portfolio Sales Year to March 2 0 0 5 I nteractive I nteractive 1 2 % 1 2 % Outsourcing Outsourcing 1 0 % 1 0 % I nform ation Credit 4 6 % Marketing 5 3 % Solutions 2 5 % 3 2 % I nternational North 4 6 % Am erica 5 4 % 8

Experian – how we are paid I nform ation Volume-based contracts Solutions Value-based long-term contacts Outsourcing Cost-plus long-term contracts I nteractive Subscriptions; pay-per-lead 9 Experian – broad offering • Over 50,000 clients in more than % of sales by 60 countries vertical m arket • Top 10 clients account for about Other 6% Publishing/ media 2% 25% of sales Financial Government 3% services Automotive 3% 53% Telecom/ utilities/ • At least 85% of top 50 clients insurance dealt with Experian for over five 8% years Direct-to- consumer 12% Clients include: • AOL Time Warner • MBNA Retail/ • BNP Paribas • McDonald’s home shopping • Barclays • Microsoft 13% • Citigroup • Morgan Stanley • Ford • Orange Year to March 2 0 0 5 • HBOS • Société Générale 10

Experian – competitive strength No single com petitor offers as m any products and solutions in as m any countries Global sales revenue $ 2 .5 bn $ m North America I nternational 1 8 x 1 8 x 2 8 x 1 9 x 2 2 x Experian D&B Equifax Acxiom Harte-Hanks Fair, Isaac Mar 05 Dec 04 Dec 04 Mar 05 Dec 04 Sep 04 All figures are for last full year of actuals Source: Company accounts Number on top of bar represents prospective PE rating Reuters Estimates Exchange rate £1: $1.85 11 Experian – investment highlights • Market leading positions selling to businesses and consumers • Scale gives us high barriers to entry • Global leader in long term growth markets • Unequalled product offer • Delivering – Double-digit growth in sales and profit – Strong cash flow 12

Experian – building shareholder value Sales* Operating profit* £ m £ m 3 1 8 9 4 9 1 ,0 1 8 1 ,1 1 5 1 ,2 0 1 1 ,2 8 6 1 ,3 6 2 2 0 1 2 1 7 2 2 4 2 5 6 2 8 2 + 1 6 % + 1 8 % + 2 0 % + 1 4 % + 2 0 % + 1 2 % + 5 % + 3 % + 2 % + 3 % 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 Year to March Year to March Q1 2006 sales growth: 27% (13% organic, 14% from acquisitions) 13 * Growth rates at constant currency and in 2004 to 2006 for continuing activities only Experian – strong cash flow 300 100% 250 75% 200 £m 150 50% 100 25% 50 0 0% 2001 2002 2003 2004 2005 Year to March Operating cash flow (LHS) Operating cash flow as % of EBIT (RHS) Operating cash flow is defined as operating profit plus depreciation and amortisation, less capex, plus change in working capital and associates 14

Experian - key growth drivers • Growth in direct-to-consumer market • Growth in fraud prevention • Growth in demand for information in new sectors, e.g. automotive, insurance, business-to-business, government • Growth in emerging markets • Increase in credit and card usage • Move to multi-channel marketing 15

Growth drivers in the UK Experian International – growth record CAGR of 2 0 % sales and 2 3 % profit £m £m 900 140 800 120 700 100 600 80 500 400 60 300 40 200 20 100 0 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year to March Sales (LHS) Operating profit (RHS) 18

Experian International • Founded in 1980 • Strong organic growth • Supported by complementary acquisitions Rest of W orld* UK 4 1 % 5 9 % • Wide product range • Wide geographic reach Sales Year to March 2 0 0 5 * Continental Europe, Eastern Europe, South Africa, Latin America, Asia Pacific 19 Experian in UK - total solutions provider • Clear market leader in Information and Solutions • Grown to offer widest range of services in any one country • Principal credit information supplier to nine of the top ten UK banks • Future growth driven by – Deeper client relationships, e.g. HBOS – Product innovation, e.g. authentication; fraud detection – New sectors, e.g. government; business-to business; direct-to-consumer 20

UK consumer credit growth slowing Gross lending grow th slow ed, but som e offset as client spend shifts from acquiring custom ers to m anaging existing accounts 25 20 15 annual % change Net lending 10 5 Gross lending 0 2006F 2007F 2008F 2009F 2010F 1996 2001 1995 1997 1998 1999 2000 2002 2003 2004 2005 -5 Source: Bank of England; Experian Business Strategies forecasts 21 Experian in UK - HBOS contract • Over £40m five-year contract • Experian offers a unique combination of services – Credit I nformation • Consumer and business lending – Credit Solutions • Application processing/ scoring solutions • Fraud prevention capabilities • Consumer and business authentication – Marketing Information • Analysis and consultancy support – Marketing Solutions • Database hosting • Outsourced data processing • Experian selling new products, such as fraud prevention • Experian supporting HBOS across its product groups, e.g. mortgage, credit cards 22

Fraud Fraud is a grow ing global issue • Total fraud losses in US are $150bn - $115bn in healthcare and insurance, $13bn in financial services and $13bn borne by merchants (Experian) • Total UK fraud losses of £20bn in 2003 (Fraud Advisory Panel) • Global credit card fraud estimated at $4bn (Juniper Bank) • Online fraud will cost US merchants $2.6bn or 2% of sales in 2004 (CyberSource) • Between $600bn and $1.5 trillion is money-laundered globally each year (UN Office of Drug Control and Crime Prevention) Experian offers global solutions 23 Fraud prevention – saving clients money • Hunter: identifies at the application stage fraudulent new accounts or claims • Global solution: standalone or web- based • Immediate benefits – £3m per month for a major bank – £1.5m per month for a large building society – £1m plus per month for a medium-sized mortgage lender – £1m per month for a major motor finance organisation – £0.5m per month for an Internet bank 24

Experian in UK - public sector • Apply skills developed in financial services to public sector – Complying with anti-money laundering regulations – Reducing fraudulent benefit claims – Supporting collection of local and national taxes – Improving accuracy of data held on individuals – Enabling instant confirmation of valid vehicle insurance – Helping the police allocate resources by postcode risk index – Forecasting economic and demographic trends for local and national government 25 QAS – accelerating growth in public sector • Leading supplier of address management software • Continued growth in public sector – New business sales – Excellent customer retention • Strong performances in – Healthcare (NHS) – Established government agencies • Making markets in – Criminal justice – Local government • Cross-selling opportunities – Experian Intact – Authentication 26