July / August 2010 July / August 2010 Overview Experian investment - PDF document

July / August 2010 July / August 2010

Overview Experian investment highlights Experian investment highlights � Unique combination of data & analytics � Global leader with high barriers to entry Global leader with high barriers to entry � Significant growth opportunities through: through: - new products - new verticals - new geographies - new geographies � Strong financials; highly cash generative generative 2

Overview Financial highlights g g Global continuing sales and EBIT only Global continuing sales and EBIT only Growth at constant exchange rates and for continuing activities EBIT margin excluding FARES FY06 and FY07 sales and EBIT adjusted to exclude MetaReward. FY06, FY07, FY08, FY09 and FY10 sales and EBIT adjusted to exclude UK account processing, FY07 and FY08 sales and EBIT adjusted to exclude Loyalty Solutions, FY08 and FY09 sales and EBIT adjusted to exclude French transaction processing activities and other smaller discontinuing activities, FY10 sales and EBIT exclude small discontinuing activities 3

Overview Highly cash generative g y g Operating cash flow as a 1,200 percentage percentage of EBIT 98% 1,000 99% 98% 97% on 800 800 US$millio Operating cash flow 600 Free cash flow* U 400 200 0 FY07 FY08 FY09 FY10 US$2.8bn free cash flow generated in past 4 years * Free cash flow is defined as operating cash flow less net interest, tax paid and dividends 4 paid to minority shareholders.

Overview Delivering organic revenue growth g g g Lehman collapse collapse 8% 8% Credit 7% crunch 6% 5% Organic revenue 4% growth growth 3% 2% 1% 0% FY09 FY09 FY10 FY10 FY08 FY08 FY08 FY08 FY09 FY09 FY09 FY10 FY10 FY10 FY11 Q2 Q1 Q1 Q2 Q4 Q1 Q3 Q4 Q2 Q3 Q4 Q1 Q3 5 Note: Growth shown is for continuing activities

Overview Business split p Revenue by Revenue by business line geography EMEA /AP /AP 12% Interactive 27% UK and Credit Ireland North Services 20% America 43% 53% Marketing g Latin Services America 19% Decision 15% Analytics 11% Cost Revenue Central activities Other profile by vertical 2% 10% Public Sector/education Other Retail 5% 9% 14% 14% Telecoms/utilities Telecoms/utilities 5% Marketing Direct to Automotive 5% 16% Consumer Labour 3% 19% Insurance 52% 3% Data Media Financial 14% 14% services 36% IT 7% 6 Global continuing revenue to 31 March 2010

Overview Global market leadership 4,000 4 000 3,859 1 1 Other regions 3,500 North America 3 000 3,000 2,500 47% $m evenue US$ 1 825 2 2,000 2 000 1,825 1,687 2 19% 1,500 23% 22% 1,099 1 14% 1,000 , 14% 14% 860 2 860 Global re 9% 9% 631 3 10% 500 33% 32% 53% 81% 78% 90% * 86% * 68% * 77% * 91% * 55% 80% 86% * 67% * 0 Harte- FICO Experian Equifax D&B Acxiom Hanks 1 Year ended 31 March 2010 Source: Latest full year revenue, company 10K 7 2 Year ended 31 December 2009 * US only 3 Year ended 30 September 2009

Overview Credit Services – 43% of Group revenue p Snapshot Key points Overview Credit application and payment Vital statistics history data on consumers and � 16 consumer credit bureaux businesses: businesses: globally l b ll � on c. 500m consumers � 12 business credit bureaux globally � on c. 40m businesses � Automotive information in US, UK, Holland and Italy Holland and Italy Clients Financial services, telecoms, utilities, insurance, government, automotive dealers and others Business model Business model Products Credit reports to target new � Transactional customers, underwrite new loans, manage account � Volume-tiered pricing portfolios and collect on � Habitually recurring revenue � Habitually recurring revenue overdue loans overdue loans Vehicle history information and accident data 8

Overview Credit Services Year ended 31 March � Organic growth � Organic growth US$million of 1%; small Total Organic acquisition growth growth 2010 2009 Revenue contribution North America 693 693 730 30 (5)% (5)% (6)% (6)% � Growth in Latin Latin America 538 437 17% 17% America offsets market UK and Ireland 234 265 (6)% (6)% challenges 191 191 172 172 8% 8% 0% 0% EMEA/Asia Pacific EMEA/Asia Pacific elsewhere elsewhere Total revenue 1,656 1,604 2% 1% � Margin up 150 basis points Total EBIT Total EBIT – direct business 555 555 513 513 7% 7% di t b i 56 48 16% FARES Total EBIT 611 561 8% EBIT margin 33.5% 32.0% All fi All figures above on continuing basis b i i b i Growth at constant exchange rates 9 EBIT margin is for continuing business only, excluding FARES 2009 restated to exclude small discontinuing activity in North America

Overview Decision Analytics – 11% of Group revenue y p Snapshot Key points Overview Vital statistics Combines analytics, software, fraud prevention � Delivered into over 90 countries tools and consulting to help tools and consulting to help worldwide ld id clients better manage risk � Build over 300 scorecards p.a. � Over 1,500 systems deployed Financial services, telecoms, Clients worldwide worldwide utilities, government and utilities government and others � Clients often standardise lending operations on our software Credit risk and fraud Products Business model analytics (e g scoring) analytics (e.g. scoring) � Part transactional revenue Application processing, customer management and � Part software licence and collections software implementation fees Fraud and identity solutions � Habitually and contractually recurring revenue 10

Overview Decision Analytics y Year ended 31 March � Organic revenue � Organic revenue US$million decline due to: Total Organic growth growth 2010 2009 Revenue � lower origination volumes North America 116 119 ( )% (3)% ( )% (3)% Latin America � client capex 7 10 (26)% (26)% restraints UK and Ireland 193 226 (8)% (8)% � Revenue decline Revenue decline EMEA/Asia Pacific EMEA/Asia Pacific 125 125 131 131 (5)% (5)% (5)% (5)% is the main driver Total revenue 441 486 (7)% (7)% behind margin movement EBIT 119 140 (11)% EBIT margin 27.0% 28.8% All figures above on continuing basis Growth at constant exchange rates 11 2009 restated to exclude small discontinuing activity in UK & Ireland

Overview Interactive – 27% of Group revenue p Snapshot Key points Vital statistics Consumer Provision of online credit Direct monitoring services, credit � c.10m members in US and UK for scores and identity theft scores and identity theft credit monitoring services dit it i i prevention products to � Recent US launch of identity consumers protection services Other Online lead generation and online price comparison online price comparison services Consumers for credit Customers reference and identity Business model monitoring products monitoring products � Membership subscriptions in Businesses and retailers for consumer direct lead generation and price � Pay per lead or referral comparison 12

Overview Interactive Year ended 31 March � Organic revenue � Organic revenue US$million growth of 11% Total Organic growth growth 2010 2009 Revenue � Continued growth in g North America 922 852 8% 8% Consumer Direct UK and Ireland 109 84 38% 38% � Strong growth in Total revenue 1,031 936 11% 11% lead generation EBIT 242 212 15% � EBIT margin up 90 basis points, EBIT margin 23.5% 22.6% helped by improved p subscriber retention All figures above on continuing basis 13 Growth at constant exchange rates 2009 restated to exclude small discontinuing activity in North America

Overview Marketing Services – 19% of Group revenue g p Snapshot Key points Overview Consumer data: Vital statistics demographic, geographic, � Migration from traditional to newer purchasing and media purchasing and media media channels di h l preference data � over 50% of revenue derives from Platforms: technology new media activities platforms to enable delivery � Global deployment of marketing programmes of marketing programmes Global deployment across multiple channels Business model Analytics: predictive modelling � Part transactional revenue � Part data license and subscription Retail, financial services, fees Clients media, telecoms and other � Habitually and contractually recurring revenue recurring revenue 14

Overview Marketing Services g Year ended 31 March � North America � North America US$million decline due to Total Organic retail spending growth growth 2010 2009 Revenue contraction North America 3 9 329 358 358 (8)% (8)% (8)% (8)% � Growth in new Latin America 14 15 (13)% (13)% media; traditional UK and Ireland 243 268 (4)% (2)% stabilising 145 145 123 123 16% 16% 8% 8% EMEA/Asia Pacific EMEA/Asia Pacific � Margin increase Total revenue 731 764 (3)% (4)% due to cost actions and EBIT 86 88 0% positive mix; p ; investment in 11.8% 11.5% EBIT margin EMEA/Asia Pacific All figures above on continuing basis 15 Growth at constant exchange rates 2009 restated to exclude small discontinuing activities in UK & Ireland