060914 non syndicate analyst presentation v24...

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Analyst presentation

15 September 2006

2

Disclaimer

This presentation has been prepared and issued by Experian Group Limited (the “Company”) solely for your information and for use at the presentation to research analysts to be made on or about 15 September 2006 in connection with the proposed admission of the Company’s ordinary shares to the Official List of the Financial Services Authority and to trading on the London Stock Exchange plc's market for listed securities (together, the “Admission”) and the proposed issue and sale of the Company’s ordinary shares (the “Offer”). By attending the meeting where this presentation is made and/or by accepting this document, you agree to be bound by the following limitations.This presentation is an advertisement and not a prospectus and potential investors should not subscribe for or purchase any shares referred to in this presentation except on the basis of information in the prospectus to be published by the Company in due course in connection with the Admission and Offer. Copies of the prospectus are available from the Company’s registered office.This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any ordinary shares in the Company or any other securities, nor shall it or any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto. This presentation does not constitute a recommendation regarding the securities of the Company.This document and its contents are confidential and may not be further copied, distributed or passed on, directly or indirectly, to any other person or published or reproduced directly or indirectly, in whole or in part, by any medium or in any form for any purpose. The information contained in this document is being provided to you solely for the purpose of the preparation and publication of a research report in relation to the Offer and may not be used for any other purpose. If such research is not published or the Offer does not proceed, the information in this presentation and any draft research based upon such information must be kept confidential and not used for any other purpose.Neither this document nor any part or copy of it may be taken or transmitted into or distributed in or into, directly or indirectly, the United States, its territories or possessions , Australia, Canada or Japan. Any failure to comply with these restrictions may constitute a violation of US, Australian, Canadian or Japanese securities laws, respectively. The distribution of this document in other jurisdictions may also be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.This document is not an offer of securities for sale in the United States or elsewhere. The Company's ordinary shares have not been and will not be registered under the United States Securities Act of 1933 (the “Securities Act”) and may not be offered or sold in the United States unless they are registered under the Securities Act or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. No offer of the securities referred to herein is being made in the United States except to qualified institutional buyers (as defined in Rule 144A) in reliance on Rule 144A, to a limited number of accredited investors (as defined in Rule 501 (a) under the Securities Act, or another exemption from, or transaction not subject to the registration requirements of the Securities Act. No public offer of the securities referred to herein is being made in the United States.The Company's ordinary shares have not been and will be not registered under the applicable laws of any state or jurisdiction of Australia, Canada or Japan and, subject to certain exceptions, may not be offered or sold within Australia, Canada or Japan or to or for the benefit of any national, resident or citizen of Australia, Canada or Japan. No public offer of the Securities referred to herein is being made in Australia, Canada or Japan.This document is intended for distribution in member states of the European Economic Area to persons who are “qualified investors” within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC) (“Qualified Investors”). This document must not be acted or relied upon in any member state of the European Economic Area by persons who are not Qualified Investors. Any investment or investment activity to which this communication relates is available in any member state of the European Economic Area only to, and will be engaged in only with, Qualified Investors.This document is intended for distribution in the United Kingdom only to: (i) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); or (ii) persons falling within Article 49(2)(a) to (d) of the Order or to those persons to whom it can otherwise lawfully be distributed (all such persons together being referred to as "relevant persons"). This document must not be acted upon by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons.The information in this presentation is given in confidence and the recipients of this presentation should not base any behaviour, in relation to qualifying investments or relevant products (as defined in the Financial Services and Markets Act 2000 (“FSMA”)) and the Code of Market Conduct (made pursuant to FSMA), which would amount to either market abuse for the purposes of FSMA, or insider dealing for the purposes of the Criminal Justice Act 1993 or insider dealing for the purposes of the Company Securities (Insider Dealing) (Jersey) Law 1988 on the information in this presentation until after the information has been made generally available. Nor should the recipient use the information in this presentation in any way which would constitute “market abuse” or “insider dealing”.UBS Limited and Merrill Lynch International (together the “Joint Global Coordinators”) and their respective affiliates are each acting exclusively for the Company and for no one else in connection with the Offer and will not be responsible to any other person for providing the protections afforded to their respective clients, or for providing advice in relation to the Offer or any other transaction or arrangement referred to in this presentation.This presentation has been prepared by, and is the sole responsibility of, the Company. The information in this presentation has not been legally verified by the Company, GUS, its advisers, the Joint Global Coordinators or any other person and may be subject to updating, completion, revision and amendment and such information may change materially. It will only be finalised at the time of Admission. This presentation speaks at the date hereof. No representation or warranty, express or implied, is or will be made by or on behalf of the Company, its advisers, the Joint Global Coordinators or any of their respective directors, officers or employees, or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation and any reliance you place on them will be at your sole risk. In particular the market data has been obtained by the Company from third party sources. Whilst the Company has compiled and extracted the market data, it can provide no assurances of the accuracy and completeness of such information and take no responsibility for such data. The Company is under no obligation to update or keep current the information contained in this presentation and any opinions expressed in it are subject to change without notice. None of the Company, its advisers, the Joint Global Coordinators or any of their respective members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.Statements beliefs and opinions contained in this presentation, including those related to Admission , particularly those regarding the possible or assumed future or other performance of the Company, industry growth or other trend projections, are or may be forward looking statements, beliefs or opinions and reflect the Company’s or, as appropriate, the Company’s directors’ current expectations and projections about future events and are subject to risks and uncertainties that may cause actual results to differ materially. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. These risks and uncertainties include, among other factors, changing business or other market conditions and the prospects for growth anticipated by the management of the Company. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. As a result, there can be no assurance that projected results or developments will be attained and you are cautioned not to place undue reliance on such forward-looking statements. The Company, its advisers, the Joint Global Coordinators and each of their respective directors, officers and employees disclaim any obligation to update the Company's view of such risks and uncertainties or to publicly announce the result of any revision to the forward-looking statements made herein, except where it would be required to do so under applicable law.By attending the presentation to which this document relates and/or by accepting this document and/or by signing the invitation to the Experian Presentation to Analysts you will be taken to have represented, warranted and undertaken that: (i) you have read and agree to comply with the contents of this notice, including, without limitation, the obligation to keep this presentation and its contents confidential, (ii) you will not at any time have any discussion, correspondence or contact concerning the information in this presentation or the Offer with any of the directors or employees of the Company or its subsidiaries nor with any of its suppliers, customers or sub-contractors without the prior written consent of the Company, iii) you will be deemed to have accepted the terms of the invitation to the Experian Presentation to Analysts.

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Research guidelines

Research to be prepared, reviewed and distributed in accordance with research guidelines, copies of which have been distributed

No distribution of research into the United States, Canada, Japan or Australia at any time from now until 40 days after closing of the offering

All research reports must have appropriate legends, in accordance with the research guidelines

A copy of the research guidelines must be provided to your internal compliance department

Consult counsel for restrictions that may apply in other jurisdictions

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Agenda

1. A unique investment proposition Don Robert

2. Principal activities

Credit Services John Saunders

Decision Analytics John Saunders

Marketing Solutions Chris Callero

Interactive Chris Callero

3. Financial performance Paul Brooks

4. Conclusion Don Robert

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Section 1

A unique investment proposition

6

Expert management of complex databasesConsumer credit reportsTriggers / alertsRisk managementCutting edge fraud detectionPrecise targetingPredictive analyticsInsightful market researchMulti-channel insight and capability

I want to find new

customers

Who is my most

profitable customer?

Who’s a good creditrisk and who’s a bad

credit risk?

Is this personwho they say

they are?

I need a 360° view of all my relationships with my customers

I want to improvemy efficiency ofthe back office

Why do shoppers

pass by mystore without

buying?

How we help business clients

We help businesses find, keep and develop relationships with their customers

Problems Solutions

7

Problems Solutions

Online access to credit reports

Credit monitoring services

Access to hundreds of mortgage lenders

Access to thousands of online education programmes

Comparison shopping services

Whichschools

offer computer

courses online?

Who hasaccessedmy credit

report?

Can I completemy college degree

online?

Has newinformation

been added tomy credit

report?

What does my credit report say about me?

I need a new digitalcamera, but which one?

Where canI refinance

my mortgage?

How we help consumers

We help consumers make informed financial decisions and purchases

8

Our vision

Vision

For our people, data and technology to become a necessary part of every major consumer economy around the world

9

Experian – the global leader in information solutions

Four key pillars supporting Experian’s global market leadership

10

Unique business model

More comprehensive, high quality proprietary databases than any single competitor

Powerful and proprietary decision analytics

Global and diversified distribution

Ability to cross-sell between our core offerings

Global reach with unparalleled scale and capabilities

Uniquebusiness

model

11

Proprietary ownership of and access to vast consumer and commercial databases all over the world

Turning data into critical decisions for clients and consumers

A broad range of products and services delivered to consumers and businesses across many vertical sectors and geographies

Key to understanding our businessUnique

businessmodel

12

Data – the core of our business

300 million plus consumers globally

c. 30 million businesses globally

c. 600 million vehicles in US and UK

c. 30 million policies in the UK

c. 110 million households in the US

c. 130 million households globally

Consumercredit

Businesscredit

Vehiclehistories

Insurancedatabases

Cataloguepurchasing

habitsConsumermarketing

High quality databases derived from public and private data

Ownership of many years of historical data creates barriers to entry

A broad range of data assets providing the foundation of our business

Uniquebusiness

model

13

Decisions – turning data into critical decisions

Decisions

Proprietary software and analytics convert data into decisions

300 million plus consumers globally

c. 30 million businesses globally

c. 600 million vehicles in US and UK

c. 30 million policies in the UK

c. 110 million households in the US

c. 130 million households globally

Consumercredit

Businesscredit

Vehiclehistories

Insurancedatabases

Cataloguepurchasing

habitsConsumermarketing

Should weloan money

to this consumer?

Should weextend

credit to this business?

Should I send this consumer

an offer?

Should I buy this

new car?

Should I pay on this

claim?

Should I offer my products to this consumer?

Uniquebusiness

model

14

Distribution – the broadest presence in the industry

Ability to help many clients across many sectors and geographies

Over 100,000 B2B clients

Direct-to-consumer business now accounts for 12% of revenue globally

Well diversified customer base; top 10 customers account for 22% of revenue

Financial services remains a core market, generating 55% of revenue

Seizing significant growth opportunities in vertical markets such as public sector, telecommunications and automotive

Business andconsumer access By sector By geography By channels

Operates in 60 countries with offices in 29 countries

Able to serve domestic and multi-national clients

Includes system to system, Internet, direct mail, SMS, email marketing, interactive television, POS, kiosks

Channel of delivery based on client and consumer preference

Uniquebusiness

model

15

Significant cross-selling opportunities

Wide range of products and services in many sectors and geographies, each generating standalone revenues

Unique ability to “bundle” products to meet clients’ needs

Fourteen of top 20 US clients buy products from at least three of our four principal activities

80% of credit reports sold by Experian in the UK are delivered by Experian decision support software

Driven by global and regional strategic account management teams

Uniquebusiness

model

Providing a one-stop shop for clients

16

Distribution – unparalleled global reach

Global revenue US$ million

Experian has greater scale and international presence than its competitors

Notes:* Americas** US only

TransUnion is excluded from this analysis due to limited available information1. March 20062. December 20053. September 2005 Source: Latest full year revenue, company 10K

America International

58% 75% 90% 86% 94% 75%25%

6%14%10%25%

42%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Experian D&B Equifax Acxiom Harte-Hanks ChoicePoint Fair Isaac

,3 079 ¹

1,444 ² 1,443 ²1,333 ¹ 1,135 ²

799 ³1,058 ²

97%

3%

* ** ** ** ** ***

Uniquebusiness

model

17

Distribution – global and diversified

Not overly dependent on any one geography, sector or client

Consumers12%

Businesses88%

By

cust

omer FY06 revenue

By

geog

raph

y FY06 revenue

Americas58%

UK & Ireland25%

EMEA / Asia-Pacific17%

FY06 revenue

By

clie

nt

Top 1022%

Next 4021%

Remainder57%

Uniquebusiness

model

By

sect

or FY06 revenue

Financial services55%

Direct-to-consumer12%

Retail/home

shopping11%

Other6%Publishing/media

3%Telecom/utility/

insurance7%

Automotive3%

Government3%

18

Our principal activities

Balanced growth portfolio

Experian averageorganic growth

2004-06

Uniquebusiness

model

Help clients lend profitably to businesses and consumers, maximising revenue and minimising risk

Help clients with specialist software and analytics to make business critical decisions in credit area

Help clients to acquire new customers and develop and manage relationships with existing customers

Help consumers connect with companies over the Internet to sell products from our clients or from ExperianInteractive

MarketingSolutions

DecisionAnalytics

CreditServices

7%

12%

6%

31%

19

Our principal activities

Notes:1 Continuing activities only. 2 Divisional split calculated excluding central costs and FARES

Business portfolio provides a balanced growth profile

FY06 EBIT US$726m1

FY06 revenue US$3,079m1

Credit Services

49%

Decision Analytics11%

Interactive20%

MarketingSolutions

20%

Credit Services

59%Decision Analytics15%

Interactive18%Marketing

Solutions8%

Uniquebusiness

model

2

2

2

2

20

Operating in growth markets

Global growth in consumer credit

Increase in Internet use by consumers and businesses

Increase in multi-channel marketing

Increase in demand from new vertical markets

Increase in demand from new and emerging high growth geographies

Positionedfor growth

21

Market fundamentals are strong – consumer credit growth

Source: www.federalreserve.gov, October 2002 and April 2006

Growth in consumer credit driving demand for our productsacross the credit cycle

US consumer credit outstanding

0

500

1,000

1,500

2,000

2,500

1997 1998 1999 2000 2001 2002 2003 2004 2005

US$

bill

ion

Revolving Non-revolving

1997–2005 CAGR 7%


Source: Bank of England, June 2006

UK consumer credit outstanding

1997–2005 CAGR 11%

Of which credit cards Consumer credit outstanding

0

50

100

150

200

1997 1998 1999 2000 2001 2002 2003 2004 2005

£bi

llion

22

More transactions moving to the Internet

US e-commerce spending European e-commerce spending

Market fundamentals are strong – Internet growth

Source: IDC, July 2005Source: IDC, July 2005Note: e-commerce defined as the process by which order is placed

or accepted via the Internet

2004–2009 CAGR 25%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2004 2005 2006E 2007E 2008E 2009E

US

$ b

illio

n

2004–2009 CAGR 30%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2004 2005 2006E 2007E 2008E 2009E

US

$ b

illio

n


23

Market fundamentals are strong – multi-channel marketing

Diversification in how companies communicate with customers is creating opportunities for Experian


Source: Zenith Optimedia Advertising expenditure forecasts Mar 2006Note:1 Advertising spend at current prices

Global growth of advertising spend by channel2005 marketsize (US$bn)

17.8 1.7 21.6 146.2 53.0 119.0 33.9

1

21

8 75 4 4 3

0

5

10

15

20

25

Internet Cinema Outdoor TV Magazines Newspaper Radio

Adv

ertis

ing

spen

d gr

owth

2004

-09

CA

GR

(%)

24

Increase in demand from new verticals

Public sector

Reducing fraudulent benefit claims

Enabling instant confirmation of valid vehicle insurance

Managing and operating French students’metro passes

Forecasting economic and demographic trends for local and national governments

Providing small business information to the IRS


Using core skills in innovative ways

25

Increase in demand from new and emerging geographies Positionedfor growth

Asia-Pacific

Well-positioned to benefit from growth in emerging markets

EMEA

26

Executing on our growth plans

Deeper client relationships

Geographic expansion

Product innovation

Vertical expansion

Growth accelerated via complementary acquisitions

Driving organic growth

Successfulexecution

27

Deeper client relationships

Leading global financial institution and strategic Experian client

Expanding and increasingly diverse relationship

Partnership on a global scale

FY02 FY03 FY04 FY05 FY06 FY07

Core Credit Services –(online reports,account monitoring)

Growth of CRM solutions(Truvue, data hygiene),Fraud Solutions, email marketingand Business Information “Size of wallet” project

involving Experian creditdata and Scorex consultancy

Start of relationship with Consumer Direct

Cross-selling a key growth driver

Successfulexecution

28

Geographic expansion – key opportunities

Strong focus on high growth economies

Asia PacificBuilding on established Decision Analytics operationsCountry management and business line structure developing, including presence in China

Eastern EuropeContinue to use Decision Analytics to penetrate new marketsEstablishing credit bureaux where appropriate

Latin AmericaStrong Decision Analytics teams in Brazil and ArgentinaStrong pipeline for Decision Analytics

Successfulexecution

29

Disciplined acquisition strategy

Revenue growth1

Organic growth

Contribution from acquisitions

8% 9% 10%

6%9%

17%

0%

5%

10%

15%

20%

25%

30%

FY04 FY05 FY06

14%

18%

27%

Notes:Supplementary financial information in the Appendix1 Growth rates at constant currency and for continuing activities only

Good balance of organic and acquisition growth

Successfulexecution

30

Our acquisition strategy

Complementary / strategic acquisitions act as a catalyst to growth

Acquisitions are a key part of the growth strategy

Often small; always complementary; bringing

New data, technology, products, clients

Vertical expansion

Geographic expansion

Entry into adjacent growth markets

Must generate at least 10% post-tax returns over time

Examples of acquired companies

Interactive

MarketingSolutions

DecisionAnalytics

CreditServices

Successfulexecution

31

Acquisitions – accelerating growth

Combining research data with Experian marketing data to increase revenue

Using Decision Analytics to increase revenue

Benefiting from Experian’s scale and existing client relationships

Successfulexecution

32

Proven financial performance

Strong revenue growth

Strong profit growth

Highly cash generative

Provenfinancial

performance

33

Strong revenue and profit growth

Notes:FY05 onwards under IFRSGlobal continuing revenue and EBIT onlyGrowth rates at constant currency and for continuing activities only

Revenue US$m

2,014 2,461 3,079

+18% +27%Total growth

Organic growth

FY04 FY05 FY06

EBIT US$m and margin

468 565 726

+17%

+30%

21.3%

19.6%20.0%

FY04 FY05 FY06

+9% +10%+18%+7%

5m FY07

Provenfinancial

performance

34

Highly cash generative

* Operating cash flow = EBIT less trading working capital, add depreciation/amortisation, less capital expenditure and less retained in associate

Provenfinancial

performance

108%94%

99%Operating cash flow as a percentage of EBIT

US$m

0

250

500

750

1,000

FY04 FY05 FY06

Operating cash flow* EBIT

35

Experian – four key investment highlights

The global leader in information solutions

36

Section 2

Principal activities

37

Section 2.A

Principal activitiesCredit Services

38

Credit Services – providing high quality data to clients

FY06 revenue: US$1,499m, FY06 EBIT: US$476m1

Transaction processing

Automotive and insurance services

FARES joint venture

Helps companies make more informed decisions on businesses

Public and proprietary data on companies of all sizes, focusing on small and medium sized enterprises (SMEs)

Value-added products in business sector

Credit Services

Notes:1 Continuing activities, including direct and associate income

BusinessInformation

Services

Other

CreditServices

Helps lenders make more informed decisions

Public and proprietary databases on consumers’financial activity

ConsumerCredit Services

39

Consumer Credit Services – overviewCredit

Services

Businessoverview


Operating bureaux in 12 countries

Public and proprietary databases on about 300 million consumers’ financial activity

Huge technology infrastructure

Heavy regulatory environment

Key clients

HSBC, Citigroup, American Express, HBOS, Ford, Barclaycard, Capital One

Data sell

Volume-driven scale

Medium-term pricing contracts

Revenuemodel

40

Consumer Credit Services – building our databases

Our consumer credit bureaux contain a vast amount of data from multiple sources

Compiling comprehensive databases

Employment data Fraud dataTrade data

Balance histories

Public records

Identificationinformation

Address histories

Inquiry data

Information on how over

300 million consumers

handle their credit

obligations

Client suppliedPublic dataExperian generated

Credit Services

Accumulatedpayment histories

41

Riskmanagement

Customeracquisition

Applicationprocessing

Accountmanagement

Cross-sell /up-sell

Credit ServicesConsumer Credit Services – used throughout the credit cycle

Revenue not just related to new credit transactions

Credit products used to

- acquire new customers

- process credit applications

- manage existing accounts

- cross-sell new products

- respond to churn between card issuers

42

Consumer Credit Services – key opportunitiesCredit

Services

Newgeographies

Newverticals

Cross-selling

Deepening relationships with clients by selling services more throughout the credit cycle

Expanding sales outside financial services into vertical markets including governments, telecommunications and utilities

Establishing credit bureaux in emerging high growth markets such as Russia

43



Transaction processing

Automotive and insurance services

FARES joint venture

Credit Services


Other

CreditServices




Helps companies make more informed decisions on businessesPublic and proprietary data on companies of all sizes, focusing on small and medium sized enterprises (SMEs)Value-added products in business sector

BusinessInformation

Services

44

Business Information Services – overviewCredit

Services

Businessoverview

Helps clients make more informed decisions about businessesOperating bureaux in six countriesPublic and proprietary databases in 30 million companies of all sizes, focusing on SME’sValue-added products in business sector

Key clients

Euler Hermes, Royal Mail, AIG, Federal Express, Dell and Bank of America

Data sellVolume-driven scaleMedium-term pricing contractsUp-sell of added valued products is key differentiator

Revenuemodel

45

Business Information Services – building our databases

Collection accounts Trade addresses Banking information

Trade payment data

Inquiry data

Financial reports

Ownership details

Registration andincorporation details

Public records

Information on financial

performance of about

30 million businesses

Credit Services

Client suppliedPublic dataExperian generated

Compiling comprehensive databases

Our business bureaux contain a vast amount of data from multiple sources

46

Transferringskills

Gainmarketshare

Marketgrowth

Apply skills and tools developed in consumer credit to business credit

Business Information Services – key opportunitiesCredit

Services

Benefit from growth of SME sector

Gain share from market leader as able to combine, where permissible, information on consumers and businesses

47



Credit Services


CreditServices




Helps companies make more informed decisions on businesses

Public and proprietary data on companies of all sizes, focusing on small and medium sized enterprises (SMEs)

Value-added products in business sector

BusinessInformation

Services

Transaction processingAutomotive and insurance servicesFARES joint venture

Other

48

Other services – overviewCredit

Services

TransactionProcessing

A leading position in France in cheque and banking back office processing (merchant transaction acquisition, fraud control, clearing and settlement) and debit processing (payment and card processing, remittance processing for the telecoms and utilities sectors)

Marketing Solutions capabilities linked to loyalty scheme customers

Holds information on over 600 million motor vehicles in US and UK

Contains information including provenance, outstanding finance, market value and mileage readings

AutomotiveServices

Holds insurance information on over 30 million policies in the UK

Helps insurance companies make better decisions in areas such as claims handling and underwriting

InsuranceServices

49

Section 2.B

Principal activitiesDecision Analytics

50

FY06 revenue: US$325m, FY06 EBIT: US$102m

Decision Analytics

Fraud Solutions

Detection of fraud in the customer acquisition processMonitoring of account behaviour to detect fraudulent activityAnti-money laundering solutions

DecisionAnalyticsDecision Analytics –

providing strategic input to our clients’ business

Credit Analytics and

Decision Support Software

Analytics to predict customer behaviour informing clients’strategic decisionsBespoke and customised software and hosted solutions to enable clients to implement customer strategies

51

DecisionAnalyticsDecision Analytics – overview

Businessoverview

Strategic contribution to client’s businessHelping to predict customer behaviour and implement customer strategiesDetecting fraud at application stage and monitoring account usage for fraudSells to clients in over 60 countries

Key clients

HSBC, ABN AMRO, Bank of America, Orange, Vodafone, Barclaycard, Kookmin, JCB, GE, Dell, Lloyds, TSB, Citibank and Banco Santander

Solution sellValue-added pricingMedium to long-term contracts

Revenuemodel

Customisation feesAnnual license feesTransaction fees for hosted solutions

52

Decision Analytics – our products

Strategic consulting

Validate lending process

Strategic road map

Best practices assessment

Scorecard review and validation

Helping clients to make better customer decisions

Modelling services

Credit risk

Profitability

Attrition

Propensities

Fraud prevention

Fraud models

Authentication

Anti-money laundering tools

Decision support software

Implementing models

Application processing

Customer management

Strategy management

Optimisation

Products are designed for global markets:

Strategy Management: used by more than 600 clients in over 60 countries

Origination: Transact SM used by 200 clients in 43 countries

Customer Management: Probe SM used by 150 clients in 30 countries

53

New geographies

Growth inmarketshare

Innovation

Decision Analytics – key opportunitiesDecision

Analytics

Investing in product innovation to help clients in areas such as fraud prevention

Building scale in North America

Using Decision Analytics as the key entry point in new and emerging high growth geographies

54



55

Section 2.C

Principal activitiesMarketing Solutions

56

Marketing Solutions – helping our clients

Helping clients to make better marketing decisions

MarketingSolutions

Understanding the market

Research servicesBusiness strategies

Identifying customers

Data and analyticsList processing

Delivering the marketing message

Digital services and web analytics

Managing data

Database management

57

Marketing Solutions – overviewMarketingSolutions

FY06 revenue: US$627m, FY06 EBIT: US$57m

Businessoverview

Full range of marketing servicesOver 10,000 clients across multiple verticalsConsumer marketing information on 130 million households globallyEleven billion emails delivered in FY06

Key clients

WPP, Marks & Spencer, Lexus GB, Honda UK, American Express, Barclays, AOL, BSkyB, KLM, Hilton Hotels and Adidas

Varies from highly customised to more commoditisedMost are transaction-basedLicense fees for software solutionsDatabase services are contract-based

Revenuemodel

58

Marketing Solutions – evolving the portfolio

Traditionalclient needs

High volume direct mail

Names and addressesDirect mailIndividual campaignsLimited understanding of marketing ROIMany suppliers

Emergingclient needs

Greater understanding of target marketsComplete customer viewMulti-channel communicationsLifetime customer managementMeasurable results

One supplier, broader offering

Organisations are shifting from mass marketing through established media such as post and telephone…

To greater emphasis on more targeted marketing With increased spend on new channels including Internet, direct response television and mobile phone messaging

Experian is evolving its portfolio in response to these trends

MarketingSolutions

59

MarketingSolutionsScenario: Marketing Solutions

Leveraging our existing Credit Servicesrelationships to cross-sell additional products

Website

Branch

Customercall centre

Customercontact points

Direct mail

Email –CheetahMail

Branch customerservice desk

Data Data

ClarityBluecampaign management tools

Segment andselect customers for offer

Truvue

QAS name /address hygieneData

captureMessage delivery

Marketing channels

Consulting Analytics

Clientdatabase

Bank cross-selling to mortgage customers

60

Newgeographies

Evolving channels

One-to-one marketing

Marketing Solutions – key opportunitiesMarketing Solutions

Helping clients to target offers more effectively – one-to-one marketing

Helping clients to deliver their message through most responsive channel of communications

International expansion outside US and UK, especially in recentlyacquired businesses

61

Section 2.D

Principal activitiesInteractive

62

Interactive

Research products and shop onlineApply for mortgages

Interactive – connecting consumers to companies over the Internet

Check my creditEnrol in online

education programmes

22 million unique monthly visitors

A top US online advertiser

Relationships with leading portals and search engines

B2C B2B lead generation

A leading position as a trusted information source for consumers about key financial and purchasing decisions to lower the cost of daily living

62

63

Interactive business model – our competitive advantage

Connecting consumers with businesses, maximising client returns on marketing spend

63

Interactive

Experian data assets

Experian modelling

and analytics

Customer acquisition channels

BroadcastOrganictraffic

Search listings Partners Affiliates

Consumers

Businesses

Experian products

Customer monetisation

Lead generation

64

Interactive – Consumer Direct

Example: Triple Advantage US report

Leveraging core credit data to help consumers manage and monitor their credit profile

64

Interactive

Offers online access to credit reports, scores and monitoring services

Consumer pays either on transaction or subscription basis

Transaction model

$34.95 for three credit bureaux report and score in US

$5.00 for a credit score in US

£4.99 for a credit score in UK

Subscription model

Active credit monitoring members pay US$9.95–US$12.95 per month in US and £5.99 per month in UK

65

Interactive – financial services

Connecting financial services providers with consumers65

One-stop Internet destination to help consumers get better deals on their recurring monthly expenses, mainly mortgages

Free to consumer

Creates high quality leads for lenders

Experian paid on a pay-for-performance basis (per lead)

Interactive

Example: LowerMyBills.com website

66

Example: ClassesUSA website

Interactive – education

Connecting educational institutions with potential students66

Interactive

Enables professionals to find an online degree best suited to advancing their professional goals

Free to consumers

Creates high quality leads for online colleges and universities

Experian paid on a pay-for-performance basis (per lead)

67

Merchant Ratings

Bottom LinePrice

Product Details

User & ExpertReviews

Interactive – comparison shopping services

Helps consumers research products and shop on the Internet

Free to consumers

Emphasis on consumer experience, which drives higher rate of organic traffic

Serves merchants of all sizes

High return to advertisers from marketing to qualified and informed shoppers

Extensive marketing analysis tools and management reporting capabilities

Experian paid on a pay-for-performance basis (per click-through to client’s website)

67

Interactive

Example: PriceGrabber.com website

Connecting retailers with ready-to-buy shoppers

68

Interactive – a natural fit with Experian

68

Interactive

Builds on Experian’s decisionsLowerMyBills now enhances leads using Experian credit scores

Builds on Experian’s distributionLowerMyBills sells to financial servicesPriceGrabber sells to retail clients (retail vertical 11% of global revenue)

Builds on Experian’s dataInternational expansion of Consumer Direct

Other synergiesCombined buying power in online and broadcast advertisingSharing of Interactive marketing expertise and traffic

6969© 2006 Experian Information Solutions, Inc. All rights reserved.Confidential and proprietary.

Harvesting synergies from acquired businesses

Cross- sells on LowerMyBills.com Uses CheetahMail for email distributionUses Experian data, scores and authentication technologySells credit monitoring on Experian FACTA site

Sells enhanced leads using Experian scoresUses FARES automated valuation modelsCross-sells mortgages on Experian Consumer Direct Cross-sells retail leads for PriceGrabber

Uses Experian Marketing Solutions data to enhance leadsCross-sells Experian Consumer Direct credit products Provides direct access to online schools for Affiliate Fuel

ClassesUSA®

LowerMyBills.com®

ExperianConsumer Direct

PriceGrabber®

Provides Experian retail clients with reports on most searched products / modelsProvides ClassesUSA with school-related offers to feature at end of registration process

Interactive

70

Newgeographiesand markets

Synergies

Internetusage

Growth in Internet usage byconsumers and clients

Deliver significant synergieswithin Interactive and Experian

Highly portable business modelby vertical market and geography

Interactive – key opportunities

US$bn2004–2009E CAGR 23%

Source: eMarketer

0

20

40

60

80

2004 2005 2006E 2007E 2008E 2009E

Source: IDC

2004–2009E CAGR 19%

US online advertising spend

US broadband householdsmillions

0

5

10

15

20

25

2004 2005 2006E 2007E 2008E 2009E

71

Section 3

Financial performance

72

Financial performance

FY04 – FY06

Drive organic revenueand profit growth

Manage costs to maintainor improve margins

Maximise EBITconversion to cash

Supplement growth with targeted, value-enhancing acquisitions

19.6% margin 21.3% margin

Average revenue growth of 23% (10% organic)Average EBIT growth of 24%

94% - 99% (FY05 – FY06)

US$2.2bn spent giving above plan returns

73

Reporting in US $FY04/5/6, refers to financial years ending 31 March 2004/5/6 respectivelyFY04 prepared under UK GAAPFY05 and FY06 prepared under IFRS

All growth rate percentages calculated with constant FX rates, shown for the continuing business only

Organic growth excludes acquisitions except affiliates, until the date of their anniversary

EBIT is profit before amortisation of acquisition intangiblesgoodwill impairments charges in respect of demerger-related equity incentive plans exceptional items (i.e. gains and losses on disposal of businesses or closure costs of material business units) net interest income / (expense) financing fair value measurementstaxation

Benchmark PBT is EBIT less net interest income / (expense)

Assumptions used in financial sections

73

Reporting basis

Growth measures

Profit measures

74

Financial highlights

Note: Margin above excludes FARES.

Track record of double-digit revenue and EBIT growth

Strong organic revenue growth complemented by value-enhancing acquisitions

Steady margin improvement whilst investment profile maintained

5m FY07 revenue growth of 18% (7% organic) at constant exchange ratesFY05

20.0% margin

2,014

3,07927% (10%)

2,46118% (9%)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

FY0419.6% margin

FY0621.3% margin

Revenue US$m

0

200

400

600

800

1,000

EBIT US$m

726+30%

565+17%468

Global continuing revenue US$mContinuing (organic) revenue growth

Global continuing EBIT US$m

75Note: Margin above excludes FARES.

Americas – financial highlights

Average revenue growth of 28% (12% organic)

Strong revenue growth boosted by FACTA surcharge and acquisition activity

Excellent year for Credit Services in FY06 assisted by buoyant market conditions

Interactive a significant growth driver, partially offset by more modest Marketing Solutions growth

LowerMyBills is the main driver of non-organic growth in FY06

Improving EBIT margin reflecting mix and operating leverage

Unrecovered FACTA related costs impacted FY05

FARES performance in FY06 reflects the weakening mortgage market

356+13%

478+34%

316

244 281+16%

409+45%

7275

+3%

69-8%1,113

1,80137% (13%)

1,31918% (10%)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

FY0421.9% margin

FY0521.3% margin

FY0622.7% margin

Revenue US$m

0

100

200

300

400

500

600

700

EBIT US$m

Americas continuing revenue US$mContinuing (organic) revenue growth

Americas – direct business continuing EBIT US$m FARES – EBIT US$m

76

Joint venture between First American Corp (80%) and Experian (20%)“One stop shop” for property transaction informationStrong partnership with FARES managementSales not consolidated; contributed 9.5% of Experian’s Group EBIT in FY06Experian gains exposure to the US mortgage market without directly managing the impact of cyclicalityPerformance linked to mortgage cycle, mitigated by

Default and tax services which are less exposed to the mortgage cycleStrict cost controlBolt-on acquisitions and consolidation of similar competitors

FARES joint venture

76

Purchase originations Refinance originations

US mortgage originations

Source: Mortgage Bankers Association – August 2006

Experian EBIT from FARES

FARES – EBIT US$m

1990 1992 1994 1996 1998 2000 2002 2004 20062008E0

5001,0001,5002,0002,5003,0003,5004,0004,500US$bn

20

40

60

8075+3%72 69

(8%)

0

FY04 FY05 FY06

US$m

77

UK and Ireland – financial highlights


Robust organic growth in the face of a challenging UK consumer lending market reflecting

Credit Services penetration of new consumer credit sectors and share gains in Business Information Services

Decision Analytics growth from value-added products

Emerging Interactive business

Acquisition of QAS in October 2004 the driver of circa two-thirds of non-organic growth

Significant improvement in EBIT margin in period, although run-down of account processing activity will adversely affect reported margin in FY07

139180

+22%

215+24%

521

75618% (6%)

65916% (7%)

0

100

200

300

400

500

600

700

800

FY0426.5% margin

FY0527.3% margin

FY0628.4% margin

Revenue US$m

0

100

200

300

EBIT US$m

UK & Irelandcontinuing revenue US$mContinuing (organic) revenue growth

UK & Irelandcontinuing EBIT US$m

78

EMEA / Asia-Pacific – financial highlights


Good growth in established European markets, boosted by strong performance in emerging markets

EBIT margin broadly stable after significant investment in emerging markets of Eastern Europe and Asia-Pacific

4659

+18%64

+9%

380

52211% (8%)483

18% (8%)

0

100

200

300

400

500

600

FY0412.1% margin

FY0512.5% margin

FY0612.2% margin

Revenue US$m

0

25

50

75

100

EBIT US$m

EMEA/Asia-Pacific continuing revenue US$mContinuing (organic) revenue growth

EMEA/Asia-Pacific continuing EBIT US$m

79

Credit Services – financial highlights


Organic revenue performance driven by

Consumer and business credit demand in US and UK

FACTA cost recovery charges

New products

Increased penetration of less mature markets

Improving EBIT margin trend reflects operating leverage and affiliate acquisition programme

Note: * Growth and margins relate to continuing business excluding FARES

FY0425.8% margin*

FY0524.0% margin*

FY0627.2% margin*

1,217

387

1,3759% (5%)*

1,49911% (8%)*

405+2%*

476+25%*

0

300

600

900

1,200

1,500

US$m

Direct businesscontinuing EBIT US$mFARES EBIT US$m

Americas UK & Ireland EMEA / A-PContinuing revenue US$mContinuing (organic)revenue growth

80

Decision Analytics – financial highlights


Growth in both established and emerging markets reflecting a strong product portfolio which can be globally applied

Improving EBIT margin trend moderated by investment in infrastructure and emerging markets

FY0429.4% margin

FY0532.5% margin

FY0631.5% margin

US$m

237

29015% (11%)

32515% (13%)

69

0

50

100

150

200

250

300

350

94+28%

102+12%

Continuing EBIT US$mAmericas UK & Ireland EMEA / A-PContinuing revenue US$mContinuing (organic)revenue growth

81

Marketing Solutions – financial highlights


Traditional data and list processing activities remain challenging

Organic growth from email marketing, database solutions and business strategies

Significant acquisition activity including CheetahMail, Simmons, QAS and ClarityBlue, helps reposition the business

EBIT margin impacted by restructuring activity in Americas in FY04

US$m

380

50128% (6%)

62727% (6%)

11

FY042.7% margin

FY058.9% margin

FY069.1% margin

0

50

100

150

200

250

300

350

400

450

500

550

600

650

44+300%

57+31%

Continuing EBIT US$mAmericas UK & Ireland EMEA / A-PContinuing revenue US$mContinuing (organic)revenue growth

82

Interactive – financial highlights


US Consumer Direct is market leader in a market driven by heightened consumer awareness of credit issues and identity theft

Interactive business strengthened by the LowerMyBills.com, Affiliate Fuel, ClassesUSA and PriceGrabber.com acquisitions in FY06

UK Consumer Direct business developing scale and is now profitable

US$m

34

29563% (36%)

628113% (25%)

52+51%

122+131%

FY0418.9% margin

FY0517.7% margin

FY0619.2% margin

180

0

50

100

150

200

250

300

350

400

450

500

550

600

650

Continuing EBIT US$mAmericas UK & IrelandContinuing revenue US$mContinuing (organic)revenue growth

83

FY06 cost analysis

Globally, labour represents more than half of all costs

Higher % of customer acquisition spend in Americas due to Interactive

Greater mix of labour costs in EMEA/Asia-Pacific due to Transaction Processing

Year on year cost growth includes the impact of acquisitions and investment in products, geographies and infrastructure

Americas UK & IrelandEMEA/

Asia-Pacific

Global

1%

7%5%12%

11%

21%43%

EBIT

Labour

IT

Data

Customer acquisition/marketingOther

Central activities

58%

12%

16%

1%4%

9%

49%

28%

8%2%

4% 9%6%

6%19%

11%

23% 35%

Percentage of FY06 revenue

84

Strong conversion of EBIT to operating cash flow

Exceptional three year track record with operating cash flow as a percentage of EBIT typically between 90% to 100%. (US $44m GUS-related item in FY04 inflated conversion by 10%)

Capital expenditure typically modestly higher than depreciation

Debtors would normally grow in line with revenue growth with some offset from creditors/accruals

Note: * Operating cash flow = Total EBIT less trading working capital add depreciation/amortisation less capital expenditure and less retained profit in associate

US$m

Operating cash flow*Operating cash flow as a percentage of EBIT

Total EBIT

0

200

400

600

800

FY04 FY05 FY06

71799%

53594%

495108%

457

727

567

85

Acquisition investment

Acquisitions in three years to March 05 delivered double-digit post-tax returns in FY06

FY06 acquisitions performing on planAcquisition investment

Major acquisitions: QAS

Simmons

MotorfileDMS Atos (part)

CheetahMail

MetaReward

Consumerinfo.comNIG

Scorex

Affiliate FuelBaker Hill

ClarityBlueClasses USA

FootfallLowerMyBills.comPriceGrabber.com

Vente

* Acquisition spend = actual maximum spend at actual exchange rates** Number of acquisitions, including affiliates

FY03 FY04 FY05 FY060

500

1,000

1,500

2,000

Acqu

isiti

on s

pend

* US$

m

US$0.3bnUS$0.3bn

US$1.6bn

US$0.5bn27**19**

16**

20**

86

Acquisition process – critical factors

Business unit ownership of the transaction

Rigorous evaluation process

Strong internal governance review

Professional internal transaction management

Strong potential for synergies

Excellent reputation as an acquirer

87

Public company and global functions being established in new Dublin and London premises

Annual central costs estimated at c.US$50m of which US$31m was reported in Experian in FY06

Modelling considerations

Incentive costs

At the time of the demerger, Experian intends to set up a number of share incentive schemes for all staff, most of which will be on a one-off basis

The estimated cost of these schemes will be about US$135m, which will be charged to profit and loss below Benchmark PBT over the following five years

Discontinuing activities

Experian has announced its withdrawal from two markets :

Incentive marketing websites in the US through MetaReward – closure costs of US$5m in FY07 (FY06 revenue US$70m and EBIT US$5m)

Account processing in the UK – closure costs of US$27m (FY06 revenue US$79m and EBIT US$36m)

Account processing closure cost will be charged below Benchmark PBT in FY07

Both businesses will be classified as discontinuing activities in FY07 (but included in Benchmark PBT)

Central activities

88


A strong, flexible capital structure will be maintained

It is expected that c.US$1.4 billion (£800 million) will be raised through the issue of new shares

Net debt of c.US$1.8 billion is expected on receipt of new equity

The following credit ratings are anticipated:

S&P: BBB+

Moodys: Baa1

Interest costs of new banking facilities will be in line with GUS existing facilities

Debt mix will reflect the international portfolio of the business, predominantly US dollar and pound sterling

Debt maturities will be well spread with interest rates fixed for short and medium-term periods

Capital structure and credit rating

PensionsExperian will assume existing GUS pension schemes (ARG has its own)Pension assets US$895mPension and related liabilities US$909m (including $50m of unfunded obligations)UK defined benefit scheme is 104% funded

89


Experian benefits from a lower overall tax rate than the average standard tax rate in its countries of operation

Continuation of GUS tax planning approach

Reflects international nature of business

Expecting a tax rate of c.23% subject to no adverse change in tax legislation

Experian continues to benefit from tax relief on goodwill acquired in the US

NPV of these cash flows is c. US$250 million

The majority of this relief is expected to be utilised by 2011

Experian expects to operate a dividend policy with cover of no less than three times

Tax

Dividends

90

Pro forma EBIT for year ending 31 March 2006

EBIT of UK account processing (US$36m) and MetaReward (US$5m) are to be treated as discontinuing in FY07

Expected ongoing central activities of c.US$50m

Interest charge on a blended interest rate of 5%* applied to pro forma debt

US$m Per circularEBIT

MetaReward Central activities/interest

Pro formaEBIT

Principal activity - continuingCredit Services 476 (36) 440Decision Analytics 102 102Marketing Solutions 57 57Interactive 122 (5) 117Central activities (31) (19) (50)

726 (36) (5) (19) 666

Principal activity - discontinuingCredit Services 1 36 37Decision Analytics -Marketing Solutions -Interactive 5 5

-727 - - (19) 708

UK account processing

Adjustments

715 (104) 611

Interest

Benchmark PBT 36 5

(85) (12) (97)

*After the effect of interest rate swaps

91

Pro forma combined balance sheet as at 31 March 2006

Elimination of intercompany balances with other GUS group companies, plus expected transfer of cash from ARG

Proceeds of c.US$1.4bn less costs incurred of c. US$40m

Net debt of c.US$1.8bn

US$mPer circular Pro forma

Fixed assetsGoodwill 2,070 2,070Intangible and tangible fixed assets 832 832Acquisition intangibles 445 445Other long term assets 735 735

4,082 4,082

Working capital assets 689 689Working capital liabilities (881) (881)Other assets 2,716 (2,309) 407

Deferred consideration payable (115) (115)Other liabilities (2,535) 1,850 (685)

(2,650) 1,850 (800)

Net debt (3,356) 190 1,355 (1,811)

Net assets 600 (269) 1,355 1,686

Elimination of interco bals and transfer of cash

Proceeds of equity issue

Adjustments

92

Pro forma cash flow for the year ending 31 March 2006

Assumes the central activities ($19m) and the interest ($85m) adjustments convert to cash

Pro forma tax cash flow equates to the tax charge less $45m in respect of goodwill deduction

US$mPer circular Pro forma

cash flow

EBIT 727 (19) 708Depreciation 204 204Capital expenditure (212) (212)Change in working capital 18 18Retained in associates (20) (20)Operating cash flow 717 (19) 698

Interest (23) (85) (108)Corporation tax (32) (46) (78)Free cash flow 662 (150) 512

Adjustments

93

Financial objectives

Drive organic revenue and profit growth

Manage costs to maintain or improve margins

Maximise EBIT conversion to cash

Supplement organic growth with targeted, value-enhancing acquisitions

Continuing to increase shareholder value

94

Section 5

Conclusion

95



060914 non syndicate analyst presentation v24...

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