About Experian
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About Experian

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More about Experian and what I do for a living ...

More about Experian and what I do for a living ...

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  • In this presentation we provide material on Experian’s global business, strategy and financial results for FY12.We intend this to overlay and complement regionally-focused communications. The presentation is aimed at helping our people better understand our global business and gain a greater sense of engagement with Experian globally.The material in this presentation is publicly available and can therefore be used to support external as well as internal communications, for example:Employee communicationsClient communicationsSupplier communicationsIn support of acquisitions
  • We are a leading global information services company. Our business has annual sales of around $4.5bn. In the year to March 2012, our last reported year, we delivered profits of almost $1.2bn.We have offices in 44 countries and deliver services to clients in many more countries around the world.Our headquarters are in Dublin, Ireland and our three largest operating centres are in Nottingham (UK), Costa Mesa (California - US) and Sao Paulo (Brazil).Our shares have been quoted on the London Stock Exchange since October 2006, when we demerged from GUS
  • This chart shows the Experian share price versus the FTSE-100 and the average share price of three of our main listed competitors (which are Equifax, Fair Isaac and Dun & Bradstreet).Experian is in blue, the FTSE-100 is in green and the average of our competitors is in brownOverall, since the demerger in 2006, the Experian share price has grown by 62%And since January 2009, Experian shares have steadily outperformed both the FTSE-100 and our competitors. This has been due to the strength of the Group’s financial performance and as it delivers on its growth objectives.[SPEAKER NOTE – THIS CHART IS CURRENT TO JUNE 2012. PLEASE CONTACT INVESTOR RELATIONS FOR THE LATEST UPDATE]
  • This slide shows Experian’s ranking in the FTSE-100. [TheFTSE-100 is an index of the top 100 companies (by market size) on the London Stock Exchange].Experian is ranked in the top half of the index, at number 40, with a market capitalisation of around £9bn [at c. 900p share price].[SPEAKER NOTE – THIS CHART IS CURRENT TO JUNE 2012. PLEASE CONTACT INVESTOR RELATIONS FOR THE LATEST UPDATE]
  • This chart shows our sales globally compared to our peers.We are the global leader in our field.We are more than twice the size of our next largest peer.We generate just over half of our sales outside North America, making us far more international than our competitors - a point that is important both for serving global clients and seizing new opportunities to grow.Furthermore, our market lead has grown and extended over the past three years.
  • We provide information, analytical tools and marketing services to organisations around the world.We report across four geographic regions(although we run the business across five). Our regions areNorth America – which is just under half of the business. Latin America – now 21% of our business.UK and Ireland – now 18%.Europe, Middle East & Africa and Asia Pacific, which combined now make up 14% of our business.Our business activities are grouped into Credit Services, Decision Analytics, Marketing Services and Consumer Services business lines:Credit Services makes up just under half of our business and provides software, tools and consulting to turn data into actionable decisions. Decision Analytics is 11% of our business and enables clients with large customer bases to manage and automate large volumes of day-to-day decisions. Marketing Services is 21% of our business and helps clients to target and engage customers effectively, while delivering improved return on investment. Consumer Services is also 21% of our business and enables consumers to monitor the accuracy of their credit report online, to check their credit score and protect themselves against identity theft.We also have a wide spread of clients,with revenue from our top 10 clients accounting for just under 10% of the business, and our top 50 clients accounting for just over 20% of revenues.Vertical splitWe serve many thousands of clients around the world in a range of industry sectorsJust under one third of our revenue is from clients in Financial ServicesAnd about 20% of our revenue comes from consumers, the balance comes from a diverse range of industries including retail, automotive, telecoms and utilities, insurance, public sector and media.
  • Financially our business is very strong.This chart sets out our performance trends over the last 7 years.Sales The red-line shows our total revenue in US dollars. During a period that encompasses the financial crisis and recession, we’ve averaged 7% organic sales growth per annum, and virtually doubled our profits.And recently we were very pleased to report 10% organic revenue growth for the year ended 31 March 2012, the first time we’ve reported double-digit organic growth since demerger.[Organic sales growth is the underlying growth of a company and does not include growth from acquisitions during the year in which they were acquired] ProfitThe green bars show our profit (EBIT), which have grown every year.We have also improved margins every year, and by over 5% (or 500 basis points) in total over the past seven years. CashAnd we have a very cash generative business, over the 7 year period we have converted virtually all of our profits into operating cash.
  • We have offices in 44 countries, as well as selling to clients in many countries around the world.And one of our strategic objectives is to continue to expand our global reach.
  • These are the services that we are currently providing into each country.
  • Looking at our four business lines in closer detail: Credit Services Makes up almost half of our revenue This is where we help organisations to manage the risks associated with extending credit and preventing fraud.Globally we operate 19 consumer credit and 14 business credit bureaux.These bureaux between them hold credit payment data on more than 740 million consumers and 70 million businesses globally. We also have historical data on 650 million vehicles.
  • So if Credit Services is the data, then Decision Analytics is the intelligence that sits on top of it, and is 11% of our business.We provide software and analytical tools such as scores, as well as consulting, helping clients to take action and make intelligent lending decisions right through the customer lifecycle. And we provide fraud prevention and authentication services.
  • Marketing Services is 21% of our business.This is where we help clients to understand their customers better and to communicate with them effectively deliver targeted marketing messages.We provide data andpredictive models to our clients to help themprofile and segment the market by consumers circumstances and preferencesWe help our clients to deliver their targeted marketing messages via direct mail, or increasingly via email, mobile, television, social, internet display and mobile devicesExperian now has a Marketing Services presence in some of the largest economies around the world, including Australia, Brazil, China, France, Germany, Japan, the UK, and the US, allowing us to service large regional and multi-national businesses.Globally we hold demographic data on 500 million individuals in 250 million householdsAnd we have classified more than 2.2 billion consumers in 28 countriesTo put this into context:
  • And finally, Consumer Services, whichis also 21% of our business.This is where we provide credit monitoring and identity protection services directly to millions of consumers in the US and the UK. Our key brands are: [for UK presentation mention] :CreditExpert.co.uk,ProtectMyID.co.uk[for US presentation mention]: FreeCreditScore.com, CreditReport.com, ProtectMyID.comThisallows consumers to access their complete credit history for a monthly subscription fee – effectively allowing them to see the same information that is available to lenders.Typically a consumer will subscribe to Experian when: they have a major life event, such as when obtaining a loan, and they want to feel more confident when applying. or when there is a life change, such as getting married or moving city and they need to take a more in-depth look at their financial situation.
  • We have five strategic goals that encapsulate what we aim to achieve as a business: We’re the global leaders in credit information and analytics and we aim to extend that lead through a whole range of measures –from data enhancements through introduction of new technology We want to drive greater growth from new customer segments – solving problems that are universal to a whole range of industries, like fraud avoidance We want to build scale and profitability in major emerging consumer economies like Turkey, South Africa, India and China We see big opportunities in digital marketing and we’re very well positioned in that space And we want to further strengthen our position as the brand consumers turn to for credit information and identity protection servicesWe’re pursuing growth through both organic investment in the business and highly selective acquisitions.
  • To achieve our global strategic objectives we are investing in a range of areas through our global growth programme. This slide shows the key initiatives that we are investing in through our growth programme, which, combined, contributed 4% to our organic revenue growth in the last financial year (FY12).
  • This slide shows the progress we have made over the past three years - we are extending our global lead through geographic expansion, product innovation and further building out and penetrating into new customer segments.We are growing strongly in the high-growth regions of Latin America, Asia Pacific and emerging Europe broadening our spread beyond the US & UK.Financial services, remains one of the most important vertical sectors of our revenue base. But as we’ve successfully diversified the business, we’ve become less dependent on this sector for growth. With above-average growth in new customer segments, this trend is set to continue.Continuous investment in new product innovation sets us apart from our competitor group, and that rate of investment continues, both through the P&L* and through capital expenditure. This portfolio breadth creates new opportunities for growth, reduces our exposure to any single market or client and is a big, big benefit of being global.*[P&L = profit & loss statement]
  • To summarise:FY12 was a year of significant progress for us.Our global growth programme is coming of age now as it moves into its third year with future benefits yet to come from a lot of the investments that we have made and will continue to make.We are seeing tangible results in new customer segments, which are growing in scale and materiality.Geographically, we are focused on replicating our Experian model in places like Brazil and Colombia, and this is a great base from which to grow.Combined, we see these factors driving further premiumgrowth in FY13 and beyond.

About Experian About Experian Presentation Transcript

  • Learn more about Experianand what I do for a living…June 2012©2012 Experian Limited. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Limited. Other products and company names mentioned may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without prior written permission of Experian Limited. Experian Public.
  • Our businessAn overview of Experian’s globalbusiness©2012 Experian Limited. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Limited. Other products and company names mentioned may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without prior written permission of Experian Limited. Experian Public.
  • Our business Snapshot of Experian  Revenue: US$4.5 bn  EBIT: US$1.2 bn  Market Cap*: £9.0 bn  In top 50 of FTSE-100  Employees: c. 17,000  Offices in 44 countries  Largest markets: US, Brazil, UK  Corporate headquarters: Dublin Leading global information services company, providing data and analytical tools to clients around the world For the year ending 31 March 2012©2012 Experian Limited. All rights reserved. * At 10 May 2012 3 Experian Public.
  • Share price performance Experian vs. FTSE 100 and competitors 1,100 1,000 Share Price - pence (rebased to Experian) 900 +62% 800 700 600 +9% 500 -11% 400 300 200 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Experian FTSE-100 Average competitors¹Source: BloombergFrom demerger to 31 May 20121 Average of Equifax, FICO and Dun & Bradstreet share prices rebased to Experian©2012 Experian Limited. All rights reserved. Experian Public. 4
  • Ranking by market capitalisation Where do we rank in the FTSE 100? Ranking Company 35 Antofagasta 36 WPP 37 Associated British Foods 38 Fresnillo 39 Pearson 40 Experian 41 BAE systems 42 CRH 43 Aviva 44 ARM Holdings 45 Old Mutual Source: BAML, 30 May 2012©2012 Experian Limited. All rights reserved. Experian Public. 5
  • Our business Market leader with unparalleled global reach and range 4,500 4,4851 53% 4,000 3,500 Other regions Global revenue US$m North America 3,000 2,500 2,000 1,9602 1,7592 19% 1,500 29% 23% 1,1301 1,024 2 1,000 14% 21% 6203 500 33% 37% 47% 55% 81% 80% 71% 77%* 86%* 86%* 79%* 63%* 67%* 0 Experian Equifax D&B Acxiom TransUnion FICO More than double the size of nearest competitor, broader range1 Year ended 31 March 2012 3 Year ended 30 September 2011 *US only.2 Year ended 31 December 2011 Source: Latest full year revenue, company SEC filings©2012 Experian Limited. All rights reserved. Experian Public. 6
  • Our business How our global revenue splits By region By business line EMEA/Asia Pacific 14% Consumer Services 21% UK & Ireland North America Credit Services 18% 47% 47% Marketing Services 21% Latin America 21% Decision Analytics 11% By customer segment Financial services 32% Direct to Diverse portfolio by consumer 21% Other geography, business 14% Retail 14% line and customer 3% segment Media 2% 4% 5% 5%Public Sector Insurance/Education Telecoms Automotive /Utilities ©2012 Experian Limited. All rights reserved. Experian Public. 7
  • Our business Seven year performance trend 4,485 Revenue US$m Financial 3,859 EBIT US$m 3,790 3,803 objectives: 3,712 3,407 • Mid-high single digit organic 2,930 revenue growth • Maintain or improve margin 616 747 848 896 932 991 1,175 • Convert at least 90% of EBIT into FY06 FY07 FY08 FY09 FY10 FY11 FY12 operating cash Organic 12% 8% 4% 3% 2% 8% 10% revenue growth EBIT margin 21.0% (direct business) 21.9% 22.8% 23.6% 24.5% 25.7% 26.2% Operating cash conversion 102% 100% 99% 101% 100% 98% 96%Global continuing revenue and EBIT only. EBIT margin excluding FARES. Operating cash conversion adjusted to exclude FARES.FY06 to FY10 EBIT adjusted to exclude FARES (discontinued operation). FY06 and FY07 revenue and EBIT adjusted to exclude MetaReward. FY07 andFY08 revenue and EBIT adjusted to exclude Loyalty Solutions. FY08 and FY09 revenue and EBIT adjusted to exclude French Transaction Processingbusiness and other smaller discontinuing activities. FY10 and FY11 revenue and EBIT adjusted to exclude small discontinuing activities. FY11 and FY12revenue, EBIT and operating cash conversion adjusted to exclude the comparison shopping and lead generation businesses that are held for sale.Revenue and EBIT growth shown at constant FX rates. Benchmark PBT growth shown at actual FX rates.* At constant exchange rates.©2012 Experian Limited. All rights reserved. Experian Public. 8
  • Our business Global reach Experian operates in over 40 countries and sells to clients in many countries around the world  Argentina  Colombia  Ireland  Norway  Sweden  Australia  Costa Rica  Italy  Peru  Taiwan  Austria  Czech Republic  Japan  Poland  Thailand  Belgium  Denmark  Malaysia  Portugal  Turkey  Brazil  Estonia  Mexico  Russia  United Arab  Bulgaria  France  Monaco  Singapore Emirates  Canada  Germany  Morocco  South Africa  United Kingdom  Chile  Greece  Netherlands  South Korea  United States  China  India  New Zealand  Spain  Venezuela©2012 Experian Limited. All rights reserved. Experian Public. 9
  • Our business Services by country©2012 Experian Limited. All rights reserved. Experian Public. 10
  • Our business Credit Services Provides information to organisations to help them lend profitably to their customers Our expertise We build and manage large databases of credit applications and payment histories of consumers and businesses We help clients manage risk associated with lending money, e.g., who What do we do? to lend to, set appropriate lending limits and take action on overdue accounts Credit reports can include identity information, past and present credit What’s in the data? obligations, court judgments, suspected fraudulent applications and previous addresses Who are our clients? Typically, banks, mortgage providers, credit card providers, automotive, telecommunications, utilities, insurance and utilities Other activities We also operate specialist databases for the automotive sector Main competitors Consumer: Equifax, TransUnion, local credit bureaus Business: Dun & Bradstreet©2012 Experian Limited. All rights reserved. Experian Public. 11
  • Our business Decision Analytics Unlocks the value of credit data so that businesses can make quick and accurate decisions Our expertise We provide software, analytical tools such as scores and expert consulting to turn credit data into actionable decisions We help customers at all stages of the lending cycle What do we do? For example: identifying and authenticating new customers; segmenting existing customers; managing loan portfolios and optimising collections Typically, financial institutions, telecommunications, utilities and public Who are our clients? sector. Many are multinational and standardise their operations around the world on our platforms Other activities We also help organisations to protect themselves through the detection and prevention of fraud Main competitors Fair Isaac (FICO), SAS, and smaller local players©2012 Experian Limited. All rights reserved. Experian Public. 12
  • Our business Marketing Services Helps organisations target & engage customers using sophisticated marketing strategies We help clients to understand their customers, communicate with Our expertise them on an individual level and measure the success of marketing initiatives What do we do? We own unique data on consumer attributes, such as demographic Data and data management information, contact data and online data, providing a rich source of marketing information for our clients We help clients to plan and execute their digital marketing What do we do? campaigns, develop their messaging, target advertising to consumers Digital Services according to their preferences, and measure our clients return on marketing spend Who are our clients? Financial services, retailers, media, automotive and the public sector Main competitors Traditional providers such as Acxiom and ADS-Epsilon, agencies such as WPP and Omnicom, and online publishers©2012 Experian Limited. All rights reserved. Experian Public. 13
  • Our business Consumer Services Helps consumers to monitor their credit reports online Our expertise We provide credit monitoring, credit scores and identity protection services to consumers via the Internet. What do we do? We provide consumers with access to their complete credit history in For consumers return for a monthly subscription fee. We also provide identity protection services What do we do? We partner with businesses to help them provide their customers with For businesses credit monitoring and identity protection Main competitors In the US - Equifax, TransUnion and Fair Isaac In the UK - Equifax and smaller niche players©2012 Experian Limited. All rights reserved. Experian Public. 14
  • Our strategyGrowth through global strength©2012 Experian Limited. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Limited. Other products and company names mentioned may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without prior written permission of Experian Limited. Experian Public.
  • Our strategy Our five global strategic objectives Extend our global lead in credit information and analytics 1 Build successful businesses in new customer segments 2 Build large-scale operations in major emerging consumer economies 3 Become global leader in digital marketing services 4 Become the most trusted consumer brand for credit information and identity protection services 5©2012 Experian Limited. All rights reserved. Experian Public. 16
  • Our strategy Global growth programme update Product innovation Expanding New customer geographically segments • North America • Credit bureaux: • SME business information products • Colombia • Healthcare payments • Next-generation bureau • India • Insurance • Australia • New Decision Analytics • Public sector platform • Positive data • Telecommunications • New Marketing • Marketing Services Services platforms product roll-out • Utilities • Consumer protection • Consumer Services products roll-out Global growth programme contributed c.4% to organic revenue growth in FY12©2012 Experian Limited. All rights reserved. Experian Public. 17
  • Our strategy Delivering against our strategic metrics Year to 31 March 2010 20111 20121 Expanding geographically 27% 32% 35% % of revenue from outside US & UK New customer segments % of revenue from outside 64% 66% 68% Financial Services Innovation >10% >10% >10% New products as % of global revenue21 Excludes comparison shopping and lead generation businesses in North America and UK and Ireland (now classified as discontinued operations)2 % of global revenue from products developed within past five years©2012 Experian Limited. All rights reserved. Experian Public. 18
  • Our strategy Summary Delivering premium growth - now and into the future©2012 Experian Limited. All rights reserved. Experian Public. 19
  • ©2012 Experian Limited. All rights reserved. Experian Public. 20