news release
Another year of strong
growth: new medium-term outlook
7am, 15 May 2024 ─ Experian
plc, the global data and technology company, today issues its
financial report for the year ended 31 March
2024.
Brian Cassin, Chief Executive Officer,
commented:
"FY24 growth was at the top end of
our expectations. Total revenue growth from ongoing activities was
8% at actual exchange rates and 7% at constant exchange rates.
Organic revenue growth was 6%, we raised margins and delivered
US$1.9bn of operating cashflow.
"For FY25, we expect further
strategic progress and expect to deliver organic revenue growth in
the range of 6-8%. We also expect good margin expansion, in the
range of 30-50 basis points, at constant currency.
"Looking further ahead, we expect
the combination of economic recovery, continued new product and
vertical market expansion as well as productivity gains from
technology cloud transition to elevate our financial performance.
We anticipate strong organic revenue growth, good margin accretion
and reduced levels of capital expenditure."
Benchmark and Statutory
financial highlights
|
|
2024
US$m
|
2023
US$m
|
Actual rates growth
%
|
Constant rates growth
%
|
Organic growth
%2
|
Benchmark¹
|
|
|
|
|
|
Revenue - ongoing
activities3
|
7,056
|
6,548
|
8
|
7
|
6
|
Benchmark EBIT - ongoing
activities3,4
|
1,944
|
1,798
|
8
|
7
|
n/a
|
Total Benchmark EBIT
|
1,928
|
1,794
|
7
|
7
|
n/a
|
Benchmark EPS
|
USc145.5
|
USc135.1
|
8
|
7
|
n/a
|
Statutory
|
|
|
|
|
|
Revenue
|
7,097
|
6,619
|
7
|
n/a
|
n/a
|
Operating profit
|
1,694
|
1,265
|
34
|
n/a
|
n/a
|
Profit before tax
|
1,551
|
1,174
|
32
|
n/a
|
n/a
|
Basic EPS
|
USc131.3
|
USc84.2
|
56
|
n/a
|
n/a
|
Total dividend
|
USc58.50
|
USc54.75
|
7
|
n/a
|
n/a
|
1. See
Appendix 1 (page 15) and note 5 to the financial statements for
definitions of non-GAAP measures.
2. Organic revenue
growth is at constant currency.
3. Revenue and
Benchmark EBIT for the year ended 31 March 2023 have been
re-presented for the reclassification to exited business activities
of certain Business-to-Business (B2B) businesses, detail is
provided in notes 6(a) and 7 to the financial
statements.
4. See page 16 for
reconciliation of Benchmark EBIT from ongoing activities to Profit
before tax.
Highlights
· Strong FY24 performance, with growth improving as the year
progressed. Q4 organic growth was 8%, resulting in 6% for the full
year. Total FY24 revenue growth from ongoing activities was 7% at
constant exchange rates, and 8% at actual rates.
·
Consumer Services organic revenue grew 7%. We now
serve over 180 million free members as we continue to expand our
products and services to help our members navigate their financial
lives.
·
B2B organic revenue grew 5%. Our broad portfolio
of data, analytics and software offerings, and high-growth
verticals drove performance.
·
All regions and segments delivered organic
revenue growth for the year. Latin America achieved double-digit
growth, with a solid performance in North America. UK and Ireland
growth was resilient and EMEA and Asia Pacific growth
accelerated.
·
Benchmark EBIT from ongoing activities rose 8% to
US$1,944m, with a Benchmark EBIT margin of 27.6%, up 10 basis points at actual
rates and constant currency.
·
Strong flow-through to EPS. Benchmark EPS growth
of 8%, and 7% at constant exchange rates. Basic EPS up
56%.
·
Benchmark operating cash flow was US$1.9bn, a
conversion of 97%.
·
Strong financial returns and position, driven by
capital discipline and strategic execution. ROCE of 17% and Net
debt to EBITDA of 1.7x.
·
Statutory profit before tax of
US$1,551m,
up 32% (FY23:
US$1,174m), due
to revenue growth and reduced non-benchmark costs compared to the
prior year.
·
Full-year dividend
up 7% to
USc 58.5 per
ordinary share.
Experian
Nadia
Ridout-Jamieson
Investor
queries
+44 (0)20 3042 4220
Nick
Jones
Media queries
Teneo
Graeme Wilson, Louise Male and
Jessica
Reid
+44 (0)20 7353 4200
There will be a presentation today
at 9.30am (UK time) to analysts and investors via webcast. To view
the slides and listen in online please go to
experianplc.com
for the link.
Experian will update on first
quarter trading for FY25 on 16 July 2024.
Roundings
Certain financial data has been
rounded within this announcement. As a result of this rounding, the
totals of data presented may vary slightly from the actual
arithmetic totals of such data.
Forward-looking statements
Certain statements made in this
announcement are forward-looking statements. Such statements are
based on current expectations and are subject to a number of risks
and uncertainties that could cause actual events or results to
differ materially from any expected future events or results
referred to in these forward-looking statements. See note 28 to the
financial statements for further information on risks and
uncertainties facing Experian.
Company website
Neither the content of the Company's
website, nor the content of any website accessible from hyperlinks
on the Company's website (or any other website), is incorporated
into, or forms part of, this announcement.
About Experian
Experian is a global data and
technology company, powering opportunities
for people and businesses around the world. We help
to redefine lending practices, uncover and
prevent fraud, simplify healthcare,
deliver digital marketing solutions, and gain deeper
insights into the automotive market, all using
our unique combination of data, analytics
and software. We also assist millions of people to
realise their financial goals and help them to
save time and money.
We operate across a range of
markets, from financial services to healthcare, automotive, agrifinance, insurance, and many
more industry segments.
We invest in talented people and
new advanced technologies to unlock the power of data and innovate.
As a FTSE 100 Index company listed on the London Stock Exchange
(EXPN), we have a team of 22,500 people across 32 countries. Our
corporate headquarters are in Dublin, Ireland. Learn more at
experianplc.com.
Part 1 - Chief Executive Officer's review
FY24 was another strong year for
Experian. We saw good momentum across our business and made
considerable strategic progress. Total revenue growth from ongoing
activities of 8% at actual rates and organic revenue growth of 6%
were at the top end of our guidance range. We were successful too
in the conversion of revenue into Benchmark EBIT, Benchmark EPS and
cash. We have continued to see good contributions from new products
during the year as well as competitive success in the market. This
year we introduced Experian Smart Money and we also saw great early
success from our consumer insurance marketplace in North America,
whilst we continue to enhance our product capabilities in Brazil.
In B2B, we expanded our product suite across our verticals,
launched important extensions to our Ascend Platform globally, made
very good progress in expanding our fraud prevention capabilities,
and our income verification business continues to grow, with
progress in North America and the UK and emerging capabilities in
Latin America.
We are excited about the progress
we have made in FY24, which builds on work done over many years to
create new paths for growth in large and growing addressable
markets. We have made substantial progress, expanding our Consumer
Services businesses, driving higher adoption of our integrated
platforms, broadening and deepening client relationships across
several industry verticals, diversifying our business in Brazil,
and transforming our EMEA and Asia Pacific operations. We have also
deployed our capital inorganically where targets meet our strict
criteria for strategic fit and financial discipline and in FY24, we
bolstered our position in Health, expanded our services in Brazil
and added to our data quality operations in the UK & Ireland
(UK&I). After the period end, we announced an agreement to
acquire illion, which will transform our market position in
Australia and New Zealand (A/NZ), another step in the evolution of
our operations in EMEA and Asia Pacific.
While we have continued to invest
in these initiatives and others, we have delivered resiliently
throughout a period of significant challenge in global markets with
high single-digit compound growth across all of our key financial
metrics including five-year compound growth in revenue of 8%,
Benchmark EBIT of 8%, operating cashflow of 8% and Benchmark EPS of
8%. We believe that the business is well positioned to drive
top-line growth, and as lending market softness recedes, as we
expect it will, this will further underpin our ambitions. Our
strategic focus remains firmly on driving long term organic growth,
however, the progress made to date in building scale in our
businesses and transforming our technology estate provide us with
the potential to achieve that whilst benefitting from greater
operating leverage going forward.
This year also saw us make great
progress in important foundational areas which are critical
strategic enablers to help support our next phase of growth. We are
proud of Experian's reputation as a great place to work, helping us
to attract and retain the best talent in our industries. This year
we have been certified as a Great Place to Work in 24 countries,
with employee engagement scores which are best-in-class and
for the fifth year in a row, our global
client Net Promoter Scores have increased.
No progress would be possible
without the dedication and support of our 22,500 talented people.
We are proud of our culture, having created an environment which is
collaborative, inclusive and which encourages idea generation. Our
colleagues around the world put our customers at the heart of
everything we do, and this helps to unlock many opportunities. I
would like to thank all my Experian colleagues for their
outstanding commitment and support over this year.
FY25 guidance and
medium-term financial outlook
For FY25, we expect credit
conditions to remain reasonably subdued and our growth to be driven
by strong performance across our portfolio with continued expansion
and contributions from newer products. Organic revenue growth is
expected to be in the range of 6-8%. We expect good margin
expansion, in the range of 30-50 basis points, at constant
currency.
As highlighted above, in recent
years, we have driven resilient performance against a soft consumer
credit environment whist investing for growth and transforming many
aspects of our business. This has put us in a position to drive
strong top-line growth, expand on investments made in recent years
while gradually benefitting from a normalising credit
environment.
Collectively, we are confident in
our financial prospects in FY25 and beyond. We will drive revenue growth through delivery of our
strategic commitments.
These are to:
· grow
B2B globally through new data, product introductions and adoption
of integrated platforms;
· broaden and deepen client relationships to grow wallet share
and extend in higher growth verticals and segments;
· elevate Consumer Services growth, led by increased member
engagement, marketplace scaling and new contributions from
payments, while helping hundreds of millions of consumers thrive on
their financial journey;
· increase the contribution from Brazil and Spanish Latin
America, the UK&I, and EMEA and Asia Pacific.
We have made considerable progress
on the delivery of our cloud-native technology infrastructure, as
well as on productivity opportunities through the greater use of
GenAI, automation and offshoring. Over the coming two years, we
will materially complete our cloud technology transition in North
America and Brazil, at which point 85-90% of our non-health
processing capacity will be in the cloud in these two regions. In
the UK&I and EMEA and Asia Pacific, we are earlier in our
journey, but still expect to progress to between 45-50% in the
cloud over the same period. Investment in technology cloud
transformation will peak in our largest regions and will largely be
completed over the next two years. With the majority of the
migration investment completing in our largest regions, this will
step-up our pace of innovation, support software delivery at scale,
improve customer experiences and enhance productivity. It will also
reduce investments in technology transition and dual running costs.
The programme will reduce our capital expenditure as a percentage
of revenue, which we expect to trend from c. 9% to c. 7% over the medium
term.
Looking ahead, the combination of
economic recovery, continued growth from vertical market expansion
and new product contributions alongside productivity benefits from
completing the technology cloud transition will sustain high
single-digit rates of organic revenue growth, good levels of annual
margin accretion and deliver reduced levels of capital
expenditure.
FY24 financial highlights
· Revenue growth was at the top end of our expected performance
range. Total revenue growth from ongoing activities was 8% at
actual exchange rates, 7% at constant currency. Organic revenue
growth was 6%.
· All
four of our regions contributed positively to our performance.
Organic revenue growth was 5% in North America, 13% in Latin
America, 2% in the UK&I and 7% in EMEA
and Asia Pacific.
· We
closed the year strongly. By quarter, organic revenue growth was 5%
in Q1, 5% in Q2, 6% in Q3 and 8% in Q4.
· Consumer Services organic revenue growth was 7%. We grew to
over 180 million free members. Our expanded portfolio of offerings
drove revenue growth in Brazil, and premium subscriptions, our
expanding insurance marketplace and partner solutions benefitted
North America.
· B2B
organic revenue growth was 5%. Revenue growth along with our
diversified portfolio mix helped offset muted credit conditions
across more mature markets such as the USA and the UK.
· We
delivered good progress in Benchmark EBIT from ongoing activities,
up 7% at constant and up 8% at actual exchange rates. EBIT margin
increased by 10 basis points at both constant and actual exchange
rates to 27.6%.
· We
delivered strong growth in Benchmark earnings per share, which
increased by 7% at constant exchange rates driven by revenue
performance and margin expansion. Basic EPS was USc131.3 (2023:
USc84.2), up 56%.
· Cash
flow conversion was strong and we converted 97% of Benchmark EBIT
into Benchmark operating cash flow. Benchmark operating cash flow
at actual exchange rates was US$1,864m, reflecting 6%
growth.
· We
continued to invest in data, technology and new products through
capital expenditure, which represented 9% of revenue.
· We
invested US$512m in acquisitions to support our strategic
initiatives. After the year end, we announced an agreement to
acquire illion, a commercial and credit bureau in A/NZ for up to
AU$820m. We expect this transaction to complete during H2
FY25.
· We
ended the year with Net debt to Benchmark EBITDA of 1.7x, compared
to our target range of 2.0-2.5x.
· We
have completed our FY24 share repurchase programme for a net cash
consideration of US$129m, of which net cash spend during FY24 was
US$100m and US$29m during April 2024. These repurchases offset
deliveries under employee share plans. We are also announcing that
we will commence a net up to US$150m share repurchase programme in
FY25, which will again offset deliveries under employee share
plans.
· We
have announced a second interim dividend of USc40.50 per share, up
7%. This will be paid on 19 July 2024 to shareholders on the
register at the close of business on 21 June 2024.
· ROCE
was 17.0%, up 50 basis points on the prior year.
FY24 strategic highlights
Our FY24 performance reflects
continued progress towards delivery of our long-term
strategy.
In our B2B business, we lead with
our rich and unique datasets and extend further into analytics and
related software solutions to help address client needs and to
expand across new client segments. We leverage advanced
technologies and Artificial Intelligence to drive solutions across
credit, marketing, identity, and fraud prevention. Not only is our
product portfolio one of the broadest and most comprehensive, it is
also now more connected and integrated. This means we become
embedded into client workflows and open new opportunities to expand
by providing trusted insights for businesses across their
customers' lifecycle.
Within our Consumer Services
business, we strive to become the pre-eminent consumer finance
platform. We are focused on product innovation to help our members
improve outcomes and engage further with our offerings. This can
range from helping consumers build their credit through Experian
Smart Money, save on car insurance through our marketplace, or
facilitate payments through our Serasa e-wallet. Importantly, we
are increasingly focused on maximising synergies between our B2B
and Consumer Services businesses to leverage the full power of
Experian and to differentiate ourselves in the
marketplace.
Highlights of our strategic
progress in FY24 include:
In
Business-to-Business:
· Ascend continues to gain traction with clients and establish
itself as an industry leader. Global Ascend revenue of US$184m
increased 19% vs the prior year.
· Our
software solutions across analytics, decisioning, and identity and
fraud prevention have benefited from cross-sell initiatives, with
48% of software clients now purchasing two or more products.
· We
have progressed well in our strategy to expand into the
Verification Solutions and Employer Services markets. During the
year, we added 94 new clients to our Verification Solutions
business and 337 new clients in Employer Services. We now have 54
million active records in North America from a combination of our
payroll partners and Employer Services clients.
· The
introduction of positive data in Brazil continues to be a driver of
enhanced solutions and accelerated revenue growth. We have invested
in continuous expansion of our positive data product portfolio with
211 products in the market across areas such as data, scores, fraud
prevention, and analytics.
· We
have made targeted investments in Brazil beyond our core credit
offering, with a focus on increasingly digitised markets such as
agrifinance and verifications. Agrifinance continued to perform
well as we leverage our data and analytics capabilities to unlock
growth in a sector that has historically found it difficult to
access credit.
· In
North America Automotive, we continue to outpace the underlying
market as we leverage our proprietary data and solutions to
multiple areas beyond core credit. Notably, we have grown marketing
revenue by double digits, with continued expansion of our product
suite.
· In
North America Health, our product innovations continue to be
recognised in the marketplace. We earned the top KLAS ranking for
the second consecutive year in the Claims Management and
Clearinghouse and Revenue Cycle: Contract Management categories for
our ClaimSource and Contract Manager products. We remain deeply
embedded with our clients, and now sell an average of over nine
products per client.
· In
North America Targeting, we continue to leverage our Experian
marketing data alongside our unique offline and digital graphs to
give our clients a holistic view of their audiences. We are well
positioned for the continued shift of advertising dollars to the
digital space, with 65% of North America Targeting revenue now
sourced from digital channels.
· We
now include "pay-in-4" buy-now-pay-later (BNPL) loan information
from Apple Pay Later in consumer credit reports, the first major
BNPL Programme in North America to fully furnish this information
to Experian. Experian's role as the first credit bureau receiving
Apple Pay Later loan information underscores our commitment to
drive industry transparency while protecting consumers.
· In
the UK & Ireland, we extended our market position through data
superiority and product innovations that address market needs.
These have led to significant new client wins, including our
largest ever client contract in the UK&I. We have also made
investments beyond core credit, such as in the Verifications
market, where we now have contracted 82% of the UK PAYE.
· In
EMEA and Asia Pacific, our transformation is well underway as we
have repositioned the business to focus on our scale markets.
Growth drivers across our geographies centre around our software
offerings, including identity and fraud (ID&F), decisioning,
and analytics. Our geographic focus drove regional margin expansion
of 50 basis points year-on-year. After the year end, we announced
an agreement to acquire illion, one of the leading consumer and
commercial credit bureaux in Australia and New Zealand.
In Consumer Services:
· We
continue to grow our membership base as we enhance our products and
expand into new categories. Globally, free memberships grew to over
180m.
· We
launched Experian Smart Money in North America, our no-fee and no
minimums digital checking account, which helps consumers build
credit without taking on additional debt. We are pleased with
progress so far with 640,000 accounts opened, and Smart Money
consumers showing increased engagement throughout our
platform.
· We
launched Boost for Insurance, which has already added 1.2m
tradelines and along with our online education tool Insurance Hub,
has helped drive further engagement in our ecosystem. We have also
grown our position with new insurance carriers during the year to
our marketplace and have delivered an accelerated trend in policy
growth as we have onboarded these new carriers.
· 80%
of Experian members have a pre-approved offer in our North America
marketplace, supported by our partners leveraging our Ascend
capabilities in our consumer ecosystem.
· In
Brazil, Limpa Nome remains a key growth driver as more consumers
utilise our service to renegotiate their debts and re-enter the
credit markets. US$14.5bn of consumer debts were resolved with our
help in FY24. Our e-wallet also gained traction in the market as we
see increased volumes and more engagement from
consumers.
· The
growth of our consumer platforms and free member base enabled
further good margin progress, up 140 basis points in the year and
up around 400 basis points over five years.
Strengthening our
foundations
· We
have made significant progress in developing the Experian GenAI
Platform, an ecosystem of tools to power both internal and external
GenAI use cases, which leverage Experian data safely and
securely.
· We
have expanded GenAI productivity tools and products by utilising a
global One Experian strategy. We started the roll out of our code
development assistant to our large developer base and began
implementation of other end use productivity tools across the
organisation. Highlights of our product development progress
include incorporating Experian GPT into both a Digital Financial
Assistant and our Ascend Platform.
· Our
employer brand and distinctive culture positions Experian as a
technology employer of choice, both internally and externally.
Based on our ongoing efforts and our Great Place to Work survey
scores, we are now certified as a Great Place to Work in 24
countries, including achieving this accreditation in Canada, Norway
and Spain for the first time this year. Our overall employee
engagement increased by one point to 83% and we saw promising
improvements across a range of categories.
· For
the fifth year in a row, our global client Net Promoter Scores have
increased, driven by an increase in promoters.
Environmental, social and governance (ESG)
· As
our approach to improving financial health matures, we have focused
more on the positive social impact our products can deliver. We
have therefore articulated a new ambition, which is to help people
thrive on their financial journey. We have developed a new Positive
Social Impact Framework that will help us measure progress towards
this ambition. It defines positive social impact as a favourable
and measurable change that occurs in someone's financial journey as
a result of interacting with an Experian product. We are developing
a methodology to report on this in the future.
· Over
15 million consumers have now connected to Experian Boost in the
USA, helping millions improve their credit scores. Experian Go has
now helped around 210,000 'credit invisible' US consumers to
establish their financial identity. We have received a BIG
Innovation award three years running, recognising each of these
products.
· Our
social innovation products, specifically developed to deliver
societal benefits and improve financial health, have reached a
further 8 million people this year.
· Our
United for Financial Health programme to improve financial
education among disadvantaged communities has now connected with
146 million people since launch in 2020, exceeding our target of
100 million people by 2024.
· We
pride ourselves on our 'People first' culture. This year we were
listed in the Top 50 UK and Top 100 US Glassdoor Best Places to
Work 2024, and 87% of our employees agreed they can be themselves
at Experian. We have set new gender diversity targets to increase
the proportion of women in our senior leaders to 40%, in our
mid-level leaders to 41%, and in our total workforce to 48% by
2027.
· Our
Board continues to comprise 45% women and includes two ethnically
diverse Board members. This meets the recommendations of the FTSE
Women Leaders Review on gender diversity and the Parker Review on
ethnic diversity.
•
This year we have increased our renewable energy
usage from 62% to 75%, contributing to a 75% reduction in our Scope
1 and 2 emissions since 2019, ahead of our 50% reduction by 2030
target. We have also set a new Scope 3 emissions target, that
suppliers covering 78% of Experian's spend on Purchased Goods and
Services, Upstream Leased Assets, Capital Goods, and Investments
are to have science-based targets by 2029, which is being submitted
to the SBTi for validation. We were recognised as a Supplier
Engagement Leader in the 2023 CDP Supplier Engagement
Leaderboard.
Other financial developments
Benchmark profit before tax (PBT)
was US$1,789m, up 7% at actual exchange rates, after net interest
expense of US$139m (2023: US$124m). Our interest expense increased
only modestly despite the rise in market rates due to our forward
rate fixing programme. For FY25, we expect net interest expense to
be in the range of US$135-US$140m.
The benchmark tax rate was 25.7%
(2023: 26.0%) reflecting the mix of profits and prevailing tax
rates by territory, and a one-off benefit from the recognition of
historical UK tax losses. We expect our effective tax rate on
Benchmark PBT in FY25 will be around 26-27%.
Our Benchmark EPS was USc145.5, an
increase of 8% at actual exchange rates and 7% at constant exchange
rates. For FY25, we expect weighted average number of ordinary
shares (WANOS) of c.914m.
Foreign exchange translation was a
+1% benefit to Benchmark EPS for the full year. For FY25, we expect
the foreign exchange translation effect to be neutral to a 1%
headwind on revenue and Benchmark EBIT, assuming recent foreign
exchange rates prevail.
Non-benchmark items:
· Profit before tax was US$1,551m, up from US$1,174m, as a
result of growth, the charge for a goodwill impairment in the prior
year and reduced non-benchmark costs.
· We have incurred a charge of US$4m (2023: US$45m) for
increased contingent consideration.
Reconciliation of statutory to Benchmark measures for the
year ended 31 March 2024
|
Statutory
|
Non-benchmark and other items
|
Benchmark
|
|
|
|
Investment-
related
items1
|
Amortisation of acquisition intangibles
|
Non-cash
financing items
|
Exceptional items2
|
|
|
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
|
|
7,056
|
-
|
-
|
-
|
-
|
7,056
|
Ongoing
|
|
41
|
-
|
-
|
-
|
-
|
41
|
Exited
|
Revenue
|
7,097
|
-
|
-
|
-
|
-
|
7,097
|
Revenue
|
|
|
|
|
|
|
|
|
|
1,710
|
40
|
193
|
-
|
1
|
1,944
|
Ongoing
|
|
(16)
|
-
|
-
|
-
|
-
|
(16)
|
Exited
|
Operating profit
|
1,694
|
40
|
193
|
-
|
1
|
1,928
|
Benchmark
EBIT
|
|
|
|
|
|
|
|
|
Profit before tax
|
1,551
|
41
|
193
|
3
|
1
|
1,789
|
Benchmark
PBT
|
|
|
|
|
|
|
|
|
Basic EPS USc
|
131.3
|
4.1
|
15.2
|
0.2
|
(5.3)
|
145.5
|
Benchmark EPS
USc
|
1. Investment-related
items include the Group's share of continuing associates' Benchmark
post-tax results.
2. Exceptional items
are analysed in note 8 to the financial statements.
Part 2 - Regional highlights for the year ended 31 March
2024
|
|
Year-on-year % change in
organic¹ revenue - for the twelve months ended 31 March
2024
|
Benchmark
EBIT
margin²
|
% of
Group revenue³
|
Data
|
Decisioning
|
B2B
|
Consumer
Services
|
Total
|
Total
|
North America
|
66
|
4
|
5
|
5
|
6
|
5
|
32.9%
|
Latin America
|
16
|
8
|
14
|
9
|
26
|
13
|
32.5%
|
UK and Ireland
|
12
|
5
|
0
|
3
|
1
|
2
|
21.5%
|
EMEA and Asia Pacific
|
6
|
4
|
14
|
7
|
n/a
|
7
|
3.6%
|
Total global
|
100
|
5
|
6
|
5
|
7
|
6
|
27.6%
|
1. At constant
exchange rates.
2. At actual exchange
rates.
3. Percentage of Group
revenue from ongoing activities calculated based on FY24 revenue at
actual exchange rates.
North America
North America performance was
good. Revenue was US$4,659m, with organic revenue growth of
5%. Total constant currency
revenue growth was 5% including the contribution from a health
acquisition completed during the year.
B2B organic revenue growth was 5%,
driven by new products, new client wins, and the breadth of our
portfolio.
Consumer and Business Information
Services grew 4% organically for the year, excluding mortgage.
Growth was driven by our focus on innovative data, analytics and
software to win new business and expand deeper into existing
customer workflows. Lenders continued to maintain a cautious stance
around credit supply, which impacted credit volumes. We saw strong
growth from Clarity, our leading alternative credit bureau, which
has benefited from enhanced analytical solutions and strong client
demand. We also continue to solidify our position in Employer and
Verification Solutions, with over 400 new client logos added during
the year across the two businesses. We continue to secure records
by utilising our Employer Services capabilities and through payroll
partnerships. Coverage increased to 54 million active employment
records on US individuals. Mortgage profile revenue declined by 1%
as lower inquiry volumes were almost entirely offset by higher
pricing.
Our vertical lines of business
also performed well. Automotive revenue grew 8% as we capitalise on
our unique data and deep client relationships. Health revenue
increased by 7% reflecting growth across all major product lines.
We continue to increase penetration across our provider base and
help our clients navigate the complex and increasingly digitising
healthcare system. Targeting delivered 5% growth and benefitted
from our differentiated consumer data, paired with our leading
digital identity graph.
Consumer Services revenue grew by
6% for the full year. Our FY24 growth benefitted from the breadth
of our revenue sources, reflecting growth across premium
memberships and partner solutions.
We continue to grow our membership
base and extend the services we offer to help consumers manage
their daily financial lives. We introduced Experian Smart Money in
October, a digital checking account which helps consumers build
credit. It also helps to drive engagement, with Smart Money
consumers showing increased interaction with the rest of the
Experian platform. Our insurance ecosystem continues to take shape.
We have seen strong engagement from new offerings this year such as
Boost with Insurance, which adds eligible on-time payments to
Experian credit reports, and our Insurance Hub, which educates
prospective buyers on the purchase process. Insurance carriers are
recognising the utility of participating in our platform and four
major providers launched in scale during the year. Strong insurance
revenue momentum helped mitigate the impact of tighter credit
supply in our credit marketplace.
Within premium membership, we
launched subscription cancellations to help our members save money
on unwanted recurring payments. Premium membership revenue was
solid as consumers utilised our resources to monitor their credit
health and improve their prospects to access credit during this
period of tighter market supply. Partner Solutions performed
strongly during the year, benefitting from non-recurring data
breach service revenue.
We remain focused on leveraging
our unique position in both B2B and Consumer Services to benefit
both customer bases. Experian Activate is a prime example of this,
as we utilise our Ascend technology to help our business clients
better access our member population, and it has resulted in
improvements in both conversion rates and consumer engagement. We
also recently piloted a GenAI-powered Digital Financial Assistant
to create a highly personalised automated experience which
leverages consumer-permissioned data. We expect this
next-generation solution to further drive up the engagement with
consumers on our platform.
Benchmark EBIT rose 4% to
US$1,531m. The Benchmark EBIT margin reduced 20 basis points to
32.9%. Margins reflected the mix of growth, investments in our
verification solutions and our insurance marketplace and our
innovations across our scaling verticals.
Latin America
Latin America performance was
strong, with revenue from ongoing activities of US$1,107m
increasing by 13% organically and total constant currency revenue
growing by 16%. Contributing acquisitions included a new credit
bureau in Panama and four small acquisitions in Brazil:
Agrosatélite, MOVA, AllowMe and Flexpag.
B2B organic revenue growth was
9%.
The credit market in Brazil
continues to evolve following the introduction of positive and new
open data assets. We have leveraged this market change to expand
our capabilities and extend our competitive position, as well as to
improve access to credit in the Brazilian market. In FY24, we
enhanced the positive data solutions in our analytical portfolio,
as we continue to innovate around new scores and attributes and see
increasing demand for our products. Small and medium enterprise
revenue saw strong growth for the year driven by new client
acquisition. Our Agrifinance vertical, while still in its early
stages, is outperforming expectations. We are striving to build the
leading information bureau for decision-making and risk monitoring
in Brazilian agribusiness and facilitate access to credit for
millions of farmers over the coming years.
Spanish Latin America grew well,
reflecting growth across our core bureau geographies of Colombia,
Chile, Peru, and Panama. We are seeing strong uptake of our new
digital solutions and identity and fraud management offerings at
large customers and are extending our position with SMEs as we
focus on client acquisition and deepening initiatives.
Consumer Services organic revenue
growth was 26%. We continue to successfully grow our brand in
Brazil, with the ambition to become one of the pre-eminent
financial services providers in the region. Our debt resolution
service, Limpa Nome, was a key driver of growth as we settled
US$14.5bn of debt on the platform during the year. We continue to
invest to drive engagement in our platform, including through
recent inorganic investments which have enhanced our e-wallet
solution and brought more functionality to consumers.
Benchmark EBIT in Latin America
was US$360m, up 18% at constant exchange rates. The Benchmark EBIT
margin from ongoing activities at actual exchange rates was 32.5%,
up by 60 basis points. FY24 margin benefitted from continued
scaling of the Consumer Services business.
UK and Ireland
The UK and Ireland delivered solid
performance despite continued underlying market softness. Revenue
from ongoing activities was US$840m with total constant currency
growth at 3% and organic revenue growth of 2%.
In B2B, organic revenue increased
by 3% as we deepened market penetration despite economic headwinds
and volume challenges. Our innovative new products, are a key
growth contributor, and are supporting cross-business unit
opportunities. Data superiority is also differentiating us in the
marketplace and driving key wins this past year across FinTech,
government, and traditional players.
In Consumer Services, organic
revenue was up by 1%. The year was impacted by a weak lending
market, but a combination of product enhancements and execution
improvements have helped mitigate the impact and support growth.
Our subscription business gained momentum in paid subscribers
towards the end of the year and our marketplace exited FY24
strongly as well as we leveraged strength in our lender panel and
more personalised consumer engagements.
Benchmark EBIT from ongoing
activities was US$181m, up 3% at constant exchange rates. The
Benchmark EBIT margin from ongoing activities was 21.5% (2023:
21.6%), which reflects cost discipline, and offsets the impact of
lower credit volumes.
EMEA and Asia Pacific
In EMEA and Asia Pacific, revenue
from ongoing activities was US$450m, with organic growth of 7% and
total growth at constant exchange rates of 8%. The difference
relates to the acquisition of a small cloud-based decisioning
business. Data delivered organic revenue growth of 4% while
Decisioning delivered strong growth, up 14%.
EMEA and Asia Pacific has
continued its transformation process. Revenues are on a stronger
trajectory and profitability has improved markedly. We see further
scope to improve profitability as we focus on innovation-led
growth, including through new scores and attributes and new fraud
prevention capabilities.
Our actions have improved
Benchmark EBIT performance, which for ongoing activities was
US$16m, up 23% at actual exchange rates. The Benchmark EBIT margin
for ongoing activities improved to 3.6% from 3.1% in
FY23.
FY25 modelling considerations
Organic revenue growth
|
6-8%
|
Benchmark EBIT margin¹
|
Good
margin improvement +30-50 basis points
|
Foreign exchange
|
c. 0%
to (1%) on revenue and Benchmark EBIT
|
Net interest
|
c.
US$135-140m
|
Benchmark tax rate
|
26-27%
|
WANOS²
|
c.
914m
|
Capital expenditure
|
c. 9%
of revenue
|
OCF³ conversion
|
>90%
|
Share repurchases
|
US$150m
|
1. At constant
exchange rates.
2. Weighted average
number of shares.
3. Benchmark operating
cash flow.
Medium term outlook
Organic revenue growth
|
High-single-digits
|
Benchmark EBIT margin¹
|
Good margin improvement
+30-50
basis points per annum
|
Capital expenditure
|
Trend
to c. 7% of revenue
|
Group financial results
Business mix including % change in organic revenue
year-on-year for the year ended 31 March 2024
Segment
|
Business unit
|
% of Group
revenue¹
|
Organic revenue growth
%²
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
North America
|
66%
|
4%
|
4%
|
5%
|
7%
|
5%
|
Data
|
CI/BI bureaux
|
23%
|
1%
|
2%
|
2%
|
9%
|
3%
|
- CI/BI bureaux, excluding
mortgage
|
21%
|
2%
|
2%
|
3%
|
8%
|
4%
|
- Mortgage Profiles
|
2%
|
(8)%
|
(3)%
|
(6)%
|
11%
|
(1)%
|
Automotive
|
5%
|
8%
|
7%
|
10%
|
6%
|
8%
|
Targeting
|
4%
|
9%
|
5%
|
3%
|
6%
|
5%
|
Decisioning
|
Health
|
8%
|
9%
|
6%
|
7%
|
7%
|
7%
|
DA/Other
|
4%
|
3%
|
2%
|
(1)%
|
4%
|
2%
|
Consumer
|
Consumer Services
|
22%
|
3%
|
5%
|
9%
|
6%
|
6%
|
Latin America
|
16%
|
13%
|
10%
|
13%
|
13%
|
13%
|
Data
|
CI/BI bureaux
|
10%
|
9%
|
6%
|
10%
|
7%
|
8%
|
Other
|
0%
|
0%
|
(29)%
|
(11)%
|
96%
|
15%
|
Decisioning
|
DA/Other
|
3%
|
15%
|
9%
|
12%
|
17%
|
14%
|
Consumer
|
Consumer Services
|
3%
|
26%
|
38%
|
26%
|
19%
|
26%
|
UK and Ireland
|
12%
|
1%
|
2%
|
3%
|
5%
|
2%
|
Data
|
CI/BI bureaux
|
5%
|
1%
|
6%
|
9%
|
6%
|
5%
|
Targeting/Auto
|
1%
|
6%
|
(1)%
|
11%
|
(9)%
|
1%
|
Decisioning
|
DA/Other
|
3%
|
0%
|
3%
|
(6)%
|
3%
|
0%
|
Consumer
|
Consumer Services
|
3%
|
(2)%
|
(5)%
|
0%
|
11%
|
1%
|
EMEA and Asia Pacific
|
6%
|
8%
|
8%
|
7%
|
6%
|
7%
|
Total global
|
100%
|
5%
|
5%
|
6%
|
8%
|
6%
|
1. Percentage of Group
revenue from ongoing activities calculated based on FY24 revenue at
actual exchange rates.
2. Ongoing activities,
at constant exchange rates.
CI = Consumer Information, BI =
Business Information, DA = Decision Analytics.
Revenue by region
Year ended 31 March
|
2024
US$m
|
2023¹
US$m
|
Growth %
|
Total at actual exchange
rates
|
Total at constant exchange
rates
|
Organic at constant exchange
rates
|
North America
|
|
|
|
|
|
Data
|
2,231
|
2,142
|
|
4
|
4
|
Decisioning
|
889
|
837
|
|
6
|
5
|
Business-to-Business
|
3,120
|
2,979
|
|
5
|
5
|
Consumer Services
|
1,539
|
1,453
|
|
6
|
6
|
Total ongoing activities
|
4,659
|
4,432
|
5
|
5
|
5
|
Exited business
activities
|
-
|
-
|
|
|
|
Total North America
|
4,659
|
4,432
|
|
|
|
Latin America
|
|
|
|
|
|
Data
|
669
|
573
|
|
12
|
8
|
Decisioning
|
213
|
176
|
|
15
|
14
|
Business-to-Business
|
882
|
749
|
|
13
|
9
|
Consumer Services
|
225
|
165
|
|
30
|
26
|
Total ongoing activities
|
1,107
|
914
|
21
|
16
|
13
|
Exited business
activities
|
20
|
33
|
|
|
|
Total Latin America
|
1,127
|
947
|
|
|
|
UK
and Ireland
|
|
|
|
|
|
Data
|
423
|
388
|
|
5
|
5
|
Decisioning
|
244
|
229
|
|
2
|
0
|
Business-to-Business
|
667
|
617
|
|
4
|
3
|
Consumer Services
|
173
|
164
|
|
1
|
1
|
Total ongoing activities
|
840
|
781
|
8
|
3
|
2
|
Exited business
activities
|
4
|
3
|
|
|
|
Total UK and Ireland
|
844
|
784
|
|
|
|
EMEA and Asia Pacific
|
|
|
|
|
|
Data
|
312
|
298
|
|
4
|
4
|
Decisioning
|
138
|
123
|
|
16
|
14
|
Total ongoing activities
|
450
|
421
|
7
|
8
|
7
|
Exited business
activities
|
17
|
35
|
|
|
|
Total EMEA and Asia Pacific
|
467
|
456
|
|
|
|
Total revenue - ongoing
activities
|
7,056
|
6,548
|
8
|
7
|
6
|
Total revenue - exited business
activities
|
41
|
71
|
|
|
|
Revenue
|
7,097
|
6,619
|
7
|
6
|
|
1. The results for
the year ended 31 March 2023
have been re-presented for the reclassification
to exited business activities of certain B2B businesses, detail is
provided in notes 6(a) and 7 to the financial
statements.
See Appendix 1 (page 15) and note
5 to the financial statements for definitions of non-GAAP
measures.
See Appendix 3 (page 16) for
analyses of revenue, Benchmark EBIT and Benchmark EBIT margin from
ongoing activities by business segment.
Income statement, earnings and Benchmark EBIT margin
analysis
Year ended 31 March
|
2024
US$m
|
2023¹
US$m
|
Growth %
|
Total at actual exchange
rates
|
Total at constant exchange
rates
|
Benchmark EBIT by geography
|
|
|
|
|
North America
|
1,531
|
1,467
|
|
4
|
Latin America
|
360
|
292
|
|
18
|
UK and Ireland
|
181
|
169
|
|
3
|
EMEA and Asia Pacific
|
16
|
13
|
|
35
|
Benchmark EBIT before Central Activities
|
2,088
|
1,941
|
8
|
6
|
Central Activities - central
corporate costs
|
(144)
|
(143)
|
|
|
Benchmark EBIT from ongoing activities
|
1,944
|
1,798
|
8
|
7
|
Exited business
activities
|
(16)
|
(4)
|
|
|
Benchmark EBIT
|
1,928
|
1,794
|
7
|
7
|
Net interest
|
(139)
|
(124)
|
|
|
Benchmark PBT
|
1,789
|
1,670
|
7
|
6
|
Exceptional items
|
4
|
(66)
|
|
|
Amortisation of acquisition
intangibles
|
(193)
|
(192)
|
|
|
Impairment of goodwill
|
-
|
(179)
|
|
|
Acquisition and disposal
expenses
|
(41)
|
(46)
|
|
|
Adjustment to the fair value of
contingent consideration
|
(4)
|
(45)
|
|
|
Non-benchmark share of post-tax loss
of associates
|
(1)
|
(18)
|
|
|
Interest on uncertain tax
provisions
|
20
|
(1)
|
|
|
Financing fair value
remeasurements
|
(23)
|
51
|
|
|
Profit before tax
|
1,551
|
1,174
|
32
|
|
Tax charge
|
(348)
|
(401)
|
|
|
Profit for the financial year
|
1,203
|
773
|
56
|
|
|
|
|
|
|
Benchmark earnings
|
|
|
|
|
Benchmark PBT
|
1,789
|
1,670
|
7
|
6
|
Benchmark tax charge
|
(459)
|
(434)
|
|
|
Total Benchmark earnings
|
1,330
|
1,236
|
|
|
Owners of Experian plc
|
1,328
|
1,235
|
8
|
7
|
Non-controlling
interests
|
2
|
1
|
|
|
|
|
|
|
|
Benchmark EPS
|
USc145.5
|
USc135.1
|
8
|
7
|
Basic EPS
|
USc131.3
|
USc84.2
|
56
|
|
Weighted average number of
ordinary shares
|
913
|
914
|
|
|
|
|
|
|
|
Benchmark EBIT margin - ongoing activities
|
|
|
|
|
North America
|
32.9%
|
33.1%
|
|
|
Latin America
|
32.5%
|
31.9%
|
|
|
UK and Ireland
|
21.5%
|
21.6%
|
|
|
EMEA and Asia Pacific
|
3.6%
|
3.1%
|
|
|
Benchmark EBIT margin
|
27.6%
|
27.5%
|
|
|
1. Benchmark results for the
year ended 31 March 2023 have been re-presented for the
reclassification to exited business activities of certain B2B
businesses, detail is provided in notes 6(a) and 7 to the financial
statements.
See Appendix 1 (page 15) and note 5
to the financial statements for definitions of non-GAAP
measures.
See Appendix 3 (page 16) for
analyses of revenue, Benchmark EBIT and Benchmark EBIT margin from
ongoing activities by business segment.
Group financial review
Key statutory measures
We achieved a strong financial
performance in FY24 despite a subdued macroeconomic
environment. Growth was at the top end of our guidance, improving
as the year progressed. Revenue and Benchmark EBIT, for ongoing
activities, both grew 8% at actual exchange rates. Our strategic
expansion in new markets, coupled with continuing investment and a
focus on innovation and productivity, are enabling both revenue and
Benchmark EBIT progression despite weak lending markets.
Revenue for the year strengthened
7% to US$7,097m (2023: US$6,619m). Acquisitions contributed US$32m (2023: US$37m) to revenue
growth and US$2m (2023: US$3m) to profit before tax. Top-line
growth is reflected in an improved operating profit of US$1,694m
(2023: US$1,265m). There was no repeat of the FY23 charge for
goodwill impairment of US$179m or costs associated with the EMEA
and Asia Pacific strategic review and restructuring of
US$53m.
The movements in Benchmark EBIT at
constant currency are discussed in the Chief Executive Officer's
review and Regional highlights on pages 3 to 13.
Net finance expense increased to
US$142m (2023: US$74m), affected by movements in financing fair
value remeasurements of US$74m, higher average borrowing and an
uplift in average market interest rates, though our forward
rate-fixing programme mitigated much of the impact of increased
interest rates. Profit before tax improved to US$1,551m (2023:
US$1,174m). The tax charge for the year reduced to US$348m (2023:
US$401m). The effective rate of tax based on profit before tax was
22.4%, a decrease of 11.8 percentage points from FY23. This was
largely due to the reduction in our provisions for uncertain tax
positions driven by the agreement of open tax issues in North
America, as well as the absence of a non-deductible goodwill
impairment charge in FY24.
Cash generated from operations
increased to US$2,440m (2023: US$2,358m) due to improved
performance and working capital movements. Tax payments increased
to US$544m (2023: US$525m) and net
borrowing inflows were US$102m (2023:
US$192m). Acquisition spend increased by
US$153m, balanced by a reduction in the settlement of put options
of US$133m. Cash outflows for net share purchases were US$100m
(2023: US$175m), offsetting deliveries under
employee share plans. Undrawn committed bank borrowing facilities
totalled US$2.4bn at 31 March 2024 (2023: US$2.4bn).
Basic EPS increased 56% to 131.3
US cents (2023: 84.2 US cents) reflecting a higher profit before
tax and a reduced effective tax
rate.
Net assets at 31 March 2024
increased to US$4,669m (2023: US$3,964m). Capital employed, as
defined in note 5(q) to the financial statements, was US$8,616m
(2023: US$8,102m). Return on capital
employed improved for the third consecutive year, increasing to
17.0% (2023: 16.5%), as our growth
investment monetised.
There was an increase in equity of
US$705m from US$3,964m at 31 March 2023 with movements detailed in
the Group statement of changes in equity on page 22.
Key movements in equity during the
year included:
· Profit for the financial year of US$1,203m.
· Currency translation gains of US$40m.
· A
reduction in the fair value of investments revalued through Other
comprehensive income (OCI) of US$87m.
· Employee share awards and options cost of US$132m.
· Ordinary dividends of US$509m and a movement of US$104m in
connection with net share purchases.
Experian plc and the UK
subsidiary undertaking responsible for distributing dividends under the Group's
Income Access Share arrangements have substantial distributable
profit and loss account reserves, which at 31 March 2024 were
US$20.6bn (2023: US$19.2bn) and US$6.6bn (2023: US$8.6bn)
respectively.
Risks and uncertainties
The eight principal risks and
uncertainties faced by the Group are summarised in note 28 to the
financial statements.
Appendices
1. Non-GAAP financial
information
We have identified and defined
certain measures that we believe assist the understanding of our
performance. These measures are not defined under IFRS and they may
not be directly comparable with other companies' adjusted
performance measures. These non-GAAP measures are not intended to
be a substitute for any IFRS measures of performance, but we
consider them to be key measures used for assessing the underlying
performance of our business.
The table below
summarises our
non-GAAP measures and
there is a fuller explanation, and references to where the measures
are used and reconciled, in
note 5 to the financial statements.
Benchmark PBT
|
Profit before amortisation and
impairment charges, acquisition expenses, Exceptional items,
financing fair value remeasurements, tax (and interest thereon) and
discontinued operations. It includes the Group's share of
continuing associates' Benchmark post-tax results.
|
Benchmark EBIT
|
Benchmark PBT before net interest
expense.
|
Benchmark EBITDA
|
Benchmark EBIT before depreciation
and amortisation.
|
Exited business activities
|
The results of businesses sold,
closed or identified for closure during a financial
year.
|
Ongoing activities
|
The results of businesses that are
not disclosed as exited business activities.
|
Constant exchange rates
|
Results and growth calculated
after translating both years' performance at the prior year's
average exchange rates.
|
Total growth
|
This is the year-on-year change in
the performance of Experian's activities at actual exchange
rates.
|
Organic revenue growth
|
This is the year-on-year change in
the revenue of ongoing activities, translated at constant exchange
rates, excluding acquisitions until the first anniversary of their
consolidation.
|
Benchmark earnings
|
Benchmark PBT less attributable
tax and non-controlling interests.
|
Total Benchmark earnings
|
Benchmark PBT less attributable
tax.
|
Benchmark EPS
|
Benchmark earnings divided by the
weighted average number of ordinary shares.
|
Exceptional items
|
Exceptional items include those
arising from the profit or loss on disposal of businesses, closure
costs of significant operations (including associated onerous
global support costs), costs of significant restructuring
programmes, and other financially significant one-off
items.
|
Benchmark operating cash flow
|
Benchmark EBIT plus amortisation,
depreciation and charges for share-based incentive plans, less net
capital expenditure and adjusted for changes in working capital,
principal lease payments and the Group's share of the Benchmark
profit or loss retained in continuing associates.
|
Cash flow conversion
|
Benchmark operating cash flow
expressed as a percentage of Benchmark EBIT.
|
Net debt and Net funding
|
Net debt is borrowings (and the
fair value of derivatives hedging borrowings) excluding accrued
interest, less cash and cash equivalents. Net funding is borrowings
(and the fair value of the effective portion of derivatives hedging
borrowings) excluding accrued interest, less cash held in Group
Treasury.
|
Return on capital employed (ROCE)
|
Benchmark EBIT less tax at the
Benchmark rate divided by average capital employed, in continuing
operations, over the year. Capital employed is net assets less
non-controlling interests and right-of-use assets, plus or minus
the net tax liability or asset and plus Net debt.
|
2. Foreign currency
Foreign exchange - average
rates
The principal exchange rates used
to translate revenue and Benchmark EBIT into the US dollar are
shown in the table below.
|
2024
|
2023
|
|
Movement
against the US dollar
|
US dollar : Brazilian
real
|
4.94
|
5.16
|
|
4%
|
Pound sterling : US
dollar
|
1.26
|
1.20
|
|
5%
|
Euro : US dollar
|
1.08
|
1.04
|
|
4%
|
US dollar : Colombian
peso
|
4,113
|
4,469
|
|
8%
|
US dollar : South African
rand
|
18.73
|
17.00
|
|
(10)%
|
The impact of foreign currency
movements on revenue from ongoing activities is set out in note
6(e) to the financial
statements.
Appendices (continued)
2.
Foreign currency (continued)
Foreign exchange - closing
rates
The principal exchange rates used
to translate assets and liabilities into the US dollar at the
year-end dates are shown in the table below.
|
|
|
|
2024
|
|
2023
|
|
US dollar : Brazilian
real
|
|
|
|
5.01
|
|
5.08
|
|
Pound sterling : US
dollar
|
|
|
|
1.26
|
|
1.24
|
|
Euro : US dollar
|
|
|
|
1.08
|
|
1.09
|
|
US dollar : Colombian
peso
|
|
|
|
3,852
|
|
4,623
|
|
US dollar : South African
rand
|
|
|
|
18.90
|
|
17.71
|
|
3. Revenue, Benchmark EBIT and Benchmark EBIT margin by
business segment
Year ended 31 March
|
|
|
Growth %
|
|
2024
US$m
|
20231
US$m
|
Total at constant exchange
rates
|
Organic at constant exchange
rates
|
|
Revenue
|
|
|
|
|
|
Data
|
3,635
|
3,401
|
6
|
5
|
|
Decisioning
|
1,484
|
1,365
|
8
|
6
|
|
Business-to-Business
|
5,119
|
4,766
|
6
|
5
|
|
Consumer Services
|
1,937
|
1,782
|
8
|
7
|
|
Ongoing activities
|
7,056
|
6,548
|
7
|
6
|
|
Exited business
activities
|
41
|
71
|
n/a
|
|
|
Total
|
7,097
|
6,619
|
6
|
|
|
|
|
|
|
|
|
Benchmark EBIT
|
|
|
|
|
|
Business-to-Business
|
1,609
|
1,525
|
4
|
|
|
Consumer Services
|
479
|
416
|
15
|
|
|
Business segments
|
2,088
|
1,941
|
6
|
|
|
Central Activities - central
corporate costs
|
(144)
|
(143)
|
n/a
|
|
|
Ongoing activities
|
1,944
|
1,798
|
7
|
|
|
Exited business
activities
|
(16)
|
(4)
|
n/a
|
|
|
Total Benchmark EBIT
|
1,928
|
1,794
|
7
|
|
|
Net interest expense
|
(139)
|
(124)
|
n/a
|
|
|
Benchmark PBT
|
1,789
|
1,670
|
6
|
|
|
Exceptional items (Appendix
4)
|
4
|
(66)
|
|
|
|
Other adjustments made to derive
Benchmark PBT2
|
(242)
|
(430)
|
|
|
|
Profit before tax
|
1,551
|
1,174
|
|
|
|
|
|
|
|
|
|
Benchmark EBIT margin - ongoing activities
|
|
|
|
|
|
Business-to-Business
|
31.4%
|
32.0%
|
|
|
|
Consumer Services
|
24.7%
|
23.3%
|
|
|
|
Benchmark EBIT margin3
|
27.6%
|
27.5%
|
|
|
|
1. Revenue of US$39m
and Benchmark EBIT of US$4m for the year ended 31 March 2023 have
been re-presented for the reclassification to exited business
activities of certain B2B businesses. See notes 6(a) and 7 to the
financial statements.
2. See note 8 to the
financial statements.
3. Benchmark EBIT margin for ongoing activities is calculated by
dividing Benchmark EBIT for ongoing
activities by revenue from ongoing activities.
Appendices (continued)
4. Exceptional items and other adjustments made to derive
Benchmark PBT
|
2024
|
|
2023
|
|
Year ended 31 March
|
US$m
|
|
US$m
|
|
(Credit)/charge for Exceptional items
|
(4)
|
|
66
|
|
|
|
|
|
|
Other adjustments made to derive
Benchmark PBT:
|
|
|
|
|
Amortisation of acquisition
intangibles
|
193
|
|
192
|
|
Impairment of goodwill
|
-
|
|
179
|
|
Other adjustments
|
49
|
|
59
|
|
Charge for other adjustments made to derive Benchmark
PBT
|
242
|
|
430
|
|
Net charge for Exceptional items and other adjustments made
to derive Benchmark PBT
|
238
|
|
496
|
|
An explanation for the exclusion
of such items from our definition of Benchmark PBT is given in note
5(a) to the financial statements.
5. Reconciliation of net investment
|
2024
|
|
2023
|
|
Year ended 31 March
|
US$m
|
|
US$m
|
|
Capital expenditure as reported in
the Group cash flow statement
|
640
|
|
627
|
|
Disposal of property, plant and
equipment
|
(1)
|
|
-
|
|
Disposal of assets classified as
held-for-sale
|
(2)
|
|
-
|
|
Profit on disposal of property,
plant and equipment
|
1
|
|
-
|
|
Net
capital expenditure
|
638
|
|
627
|
|
Acquisitions
|
512
|
|
480
|
|
Purchase of investments
|
11
|
|
15
|
|
Disposal of operations and
investments
|
(11)
|
|
(3)
|
|
Net
investment
|
1,150
|
|
1,119
|
|
6. Cash tax reconciliation
|
2024
|
|
2023
|
|
Year ended 31 March
|
%
|
|
%
|
|
Tax charge on Benchmark
PBT
|
25.7
|
|
26.0
|
|
Tax relief on goodwill
amortisation
|
(0.7)
|
|
(2.0)
|
|
Timing differences on US innovation
and development expenditure
|
2.3
|
|
2.5
|
|
Other1
|
3.1
|
|
4.9
|
|
Tax
paid as a percentage of Benchmark PBT
|
30.4
|
|
31.4
|
|
1. In FY24 'other'
included the phasing of tax payments. In FY23,
'other' included tax on fair value gains on the remeasurement of
derivatives as well as the phasing of tax payments.
Appendices (continued)
7. Cash flow and Net debt
summary1
|
2024
|
|
2023
|
|
Year ended 31 March
|
US$m
|
|
US$m
|
|
Benchmark EBIT
|
1,928
|
|
1,794
|
|
Amortisation and depreciation
charged to Benchmark EBIT
|
521
|
|
482
|
|
Benchmark EBITDA
|
2,449
|
|
2,276
|
|
Impairment of non-current and
held-for-sale assets charged to
Benchmark EBIT
|
1
|
|
1
|
|
Net capital expenditure (Appendix
5)
|
(638)
|
|
(627)
|
|
(Increase)/decrease in working
capital
|
(32)
|
|
30
|
|
Principal lease payments
|
(48)
|
|
(57)
|
|
Benchmark loss retained in
associates
|
-
|
|
1
|
|
Charge for share incentive
plans
|
132
|
|
129
|
|
Benchmark operating cash flow2
|
1,864
|
|
1,753
|
|
Net interest paid
|
(149)
|
|
(118)
|
|
Tax paid
|
(544)
|
|
(525)
|
|
Dividends paid to non-controlling
interests
|
(1)
|
|
(1)
|
|
Benchmark free cash flow
|
1,170
|
|
1,109
|
|
Acquisitions3
|
(512)
|
|
(480)
|
|
Purchase of investments
|
(11)
|
|
(15)
|
|
Disposal of operations and
investments4
|
11
|
|
3
|
|
Movement in Exceptional and other
non-benchmark items
|
(59)
|
|
(39)
|
|
Ordinary dividends paid
|
(509)
|
|
(482)
|
|
Net
cash inflow
|
90
|
|
96
|
|
Net debt at 1 April
|
(4,030)
|
|
(3,950)
|
|
Net share purchases
|
(100)
|
|
(175)
|
|
Non-cash lease obligation additions
and disposals
|
(50)
|
|
(29)
|
|
Principal lease payments
|
48
|
|
57
|
|
Additions through business
combinations
|
(7)
|
|
-
|
|
Foreign exchange and other
movements
|
(4)
|
|
(29)
|
|
Net
debt at 31 March
|
(4,053)
|
|
(4,030)
|
|
1. For Group cash flow
statement see page 23.
2. A reconciliation of
Cash generated from operations to Benchmark operating cash flow is
provided in note 16(g) to the financial statements.
3. See note 16(d) to
the financial statements.
4. Includes the
disposal of operations classified as held-for-sale.
Group income statement
for the year ended 31 March
2024
|
2024
|
|
|
2023
|
|
|
Benchmark1
|
Non-benchmark2
|
Total
|
|
|
Benchmark1
|
Non-benchmark2
|
Total
|
|
|
US$m
|
US$m
|
US$m
|
|
|
US$m
|
US$m
|
US$m
|
|
Revenue (note
6(a))
|
7,097
|
-
|
7,097
|
|
|
6,619
|
-
|
6,619
|
|
Labour costs
|
(2,479)
|
(14)
|
(2,493)
|
|
|
(2,341)
|
(40)
|
(2,381)
|
|
Data and information technology
costs
|
(1,189)
|
-
|
(1,189)
|
|
|
(1,070)
|
-
|
(1,070)
|
|
Amortisation and depreciation
charges
|
(521)
|
(193)
|
(714)
|
|
|
(482)
|
(192)
|
(674)
|
|
Marketing and customer acquisition
costs
|
(539)
|
-
|
(539)
|
|
|
(570)
|
-
|
(570)
|
|
Other operating charges
|
(441)
|
(27)
|
(468)
|
|
|
(363)
|
(296)
|
(659)
|
|
Total operating expenses
|
(5,169)
|
(234)
|
(5,403)
|
|
|
(4,826)
|
(528)
|
(5,354)
|
|
Operating profit/(loss)
|
1,928
|
(234)
|
1,694
|
|
|
1,793
|
(528)
|
1,265
|
|
Finance income
|
18
|
-
|
18
|
|
|
13
|
50
|
63
|
|
Finance expense
|
(157)
|
(3)
|
(160)
|
|
|
(137)
|
-
|
(137)
|
|
Net finance (expense)/income (note
9(a))
|
(139)
|
(3)
|
(142)
|
|
|
(124)
|
50
|
(74)
|
|
Share of post-tax (loss)/profit of
associates
|
-
|
(1)
|
(1)
|
|
|
1
|
(18)
|
(17)
|
|
Profit/(loss) before tax (note 6(a))
|
1,789
|
(238)
|
1,551
|
|
|
1,670
|
(496)
|
1,174
|
|
Tax (charge)/credit (note
10(a))
|
(459)
|
111
|
(348)
|
|
|
(434)
|
33
|
(401)
|
|
Profit/(loss) for the financial
year
|
1,330
|
(127)
|
1,203
|
|
|
1,236
|
(463)
|
773
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
Owners of Experian plc
|
1,328
|
(129)
|
1,199
|
|
|
1,235
|
(465)
|
770
|
|
Non-controlling interests
|
2
|
2
|
4
|
|
|
1
|
2
|
3
|
|
Profit/(loss) for the financial
year
|
1,330
|
(127)
|
1,203
|
|
|
1,236
|
(463)
|
773
|
|
|
|
|
|
|
|
|
|
|
|
Total Benchmark EBIT1
|
1,928
|
|
|
|
|
1,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
cents
|
|
US cents
|
|
|
US
cents
|
|
US cents
|
|
Earnings per share (note
11(a))
|
|
|
|
|
|
|
|
|
|
Basic
|
145.5
|
|
131.3
|
|
|
135.1
|
|
84.2
|
|
Diluted
|
144.2
|
|
130.2
|
|
|
134.1
|
|
83.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-year dividend per share (note12(a))1
|
|
|
58.50
|
|
|
|
|
54.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Total Benchmark EBIT
and Full-year dividend per share are non-GAAP measures, defined in
note 5 to the financial statements.
2.
The loss before tax for non-benchmark items of US$238m (2023:
US$496m) comprises a net credit for Exceptional items of US$4m
(2023: charge of US$66m) and net charges for other adjustments made
to derive Benchmark PBT of US$242m (2023: US$430m). Further
information is given in note 8 to the financial
statements.
Group statement of comprehensive
income
for the year ended 31 March
2024
|
|
2024
|
|
2023
|
|
|
US$m
|
|
US$m
|
Profit for the financial year
|
|
1,203
|
|
773
|
Other comprehensive
income/(expense)
|
|
|
|
|
Items that will not be reclassified to profit
or loss:
|
|
|
|
|
Remeasurement of post-employment benefit
assets and obligations (note 15(b))
|
|
2
|
|
(23)
|
Changes in the fair value of investments
revalued through OCI
|
|
(87)
|
|
(58)
|
Deferred tax credit
|
|
7
|
|
5
|
Items that will not be reclassified to profit
or loss
|
|
(78)
|
|
(76)
|
Items that are or may be reclassified
subsequently to profit or loss:
|
|
|
|
|
Currency translation
gains/(losses)
|
|
40
|
|
(203)
|
Fair value gain/(loss) on cash flow
hedge
|
|
14
|
|
(38)
|
Hedging (gain)/loss reclassified to profit or
loss
|
|
(10)
|
|
30
|
Items that are or may be reclassified
subsequently to profit or loss
|
|
44
|
|
(211)
|
|
|
|
|
|
Other comprehensive expense for the financial
year1
|
|
(34)
|
|
(287)
|
Total comprehensive income for the financial
year
|
|
1,169
|
|
486
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Owners of Experian plc
|
|
1,167
|
|
489
|
Non-controlling interests
|
|
2
|
|
(3)
|
Total comprehensive income for the financial
year
|
|
1,169
|
|
486
|
1. There is no
associated tax on amounts reported within Other comprehensive
income (OCI), except as reported for post-employment benefit assets
and obligations and changes in the fair value of investments
revalued through OCI. Currency translation items, not reclassified
to profit or loss, are recognised in the hedging or translation
reserve within other reserves and in non-controlling interests.
Other items within OCI are recognised in retained
earnings.
Group balance sheet
at 31 March 2024
|
|
|
2024
|
|
2023
|
|
Notes
|
|
US$m
|
|
US$m
|
Non-current assets
|
|
|
|
|
|
Goodwill
|
13
|
|
5,962
|
|
5,575
|
Other intangible assets
|
14
|
|
2,437
|
|
2,289
|
Property, plant and equipment
|
14
|
|
379
|
|
382
|
Investments in associates
|
|
|
11
|
|
12
|
Deferred tax assets
|
|
|
55
|
|
37
|
Post-employment benefit assets
|
15(a)
|
|
186
|
|
174
|
Trade and other receivables
|
|
|
196
|
|
140
|
Financial assets revalued through
OCI
|
23(b)
|
|
234
|
|
313
|
Other financial assets
|
|
|
174
|
|
148
|
|
|
|
9,634
|
|
9,070
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Trade and other receivables
|
|
|
1,660
|
|
1,519
|
Current tax assets
|
|
|
97
|
|
50
|
Other financial assets
|
|
|
9
|
|
7
|
Cash and cash equivalents - excluding bank
overdrafts
|
16(f)
|
|
312
|
|
202
|
|
|
|
2,078
|
|
1,778
|
Assets classified as
held-for-sale
|
|
|
-
|
|
16
|
|
|
|
2,078
|
|
1,794
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Trade and other payables
|
|
|
(2,036)
|
|
(1,955)
|
Borrowings
|
17(b)
|
|
(772)
|
|
(156)
|
Current tax liabilities
|
|
|
(83)
|
|
(135)
|
Provisions
|
|
|
(28)
|
|
(56)
|
Other financial liabilities
|
|
|
(44)
|
|
(6)
|
|
|
|
(2,963)
|
|
(2,308)
|
Liabilities classified as
held-for-sale
|
|
|
-
|
|
(3)
|
|
|
|
(2,963)
|
|
(2,311)
|
Net current liabilities
|
|
|
(885)
|
|
(517)
|
Total assets less current
liabilities
|
|
|
8,749
|
|
8,553
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
Trade and other payables
|
|
|
(190)
|
|
(186)
|
Borrowings
|
17(b)
|
|
(3,494)
|
|
(3,943)
|
Deferred tax liabilities
|
|
|
(129)
|
|
(223)
|
Post-employment benefit
obligations
|
15(a)
|
|
(39)
|
|
(39)
|
Provisions
|
|
|
(3)
|
|
(3)
|
Financial liabilities revalued through
OCI
|
|
|
(10)
|
|
(24)
|
Other financial liabilities
|
|
|
(215)
|
|
(171)
|
|
|
|
(4,080)
|
|
(4,589)
|
Net assets
|
|
|
4,669
|
|
3,964
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Called-up share capital
|
19
|
|
97
|
|
96
|
Share premium account
|
19
|
|
1,819
|
|
1,799
|
Retained earnings
|
|
|
21,155
|
|
20,447
|
Other reserves
|
|
|
(18,437)
|
|
(18,413)
|
Attributable to owners of Experian
plc
|
|
|
4,634
|
|
3,929
|
Non-controlling interests
|
|
|
35
|
|
35
|
Total equity
|
|
|
4,669
|
|
3,964
|
Group statement of changes in equity
for the year ended 31 March
2024
|
Called-up share capital
(Note
19)
|
Share
premium account
(Note
19)
|
Retained
earnings
|
Other
reserves
|
Attributable to owners of
Experian plc
|
Non-controlling interests
|
Total
equity
|
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
At 1 April 2023
|
96
|
1,799
|
20,447
|
(18,413)
|
3,929
|
35
|
3,964
|
Comprehensive income:
|
|
|
|
|
|
|
|
Profit for the financial
year
|
-
|
-
|
1,199
|
-
|
1,199
|
4
|
1,203
|
Other comprehensive (expense)/income
for the
financial year
|
-
|
-
|
(78)
|
46
|
(32)
|
(2)
|
(34)
|
Total comprehensive income
|
-
|
-
|
1,121
|
46
|
1,167
|
2
|
1,169
|
Transactions with owners:
|
|
|
|
|
|
|
|
Employee share incentive
plans:
|
|
|
|
|
|
|
|
- value of employee
services
|
-
|
-
|
132
|
-
|
132
|
-
|
132
|
- shares issued on
vesting
|
1
|
20
|
-
|
-
|
21
|
-
|
21
|
- purchase of shares by employee
trusts
|
-
|
-
|
-
|
(56)
|
(56)
|
-
|
(56)
|
- other vesting of awards and
exercises of share options
|
-
|
-
|
(43)
|
55
|
12
|
-
|
12
|
- related tax credit
|
-
|
-
|
10
|
-
|
10
|
-
|
10
|
- other payments
|
-
|
-
|
(4)
|
-
|
(4)
|
-
|
(4)
|
Purchase of shares held as treasury
shares
|
-
|
-
|
-
|
(69)
|
(69)
|
-
|
(69)
|
Transactions with non-controlling
interests
|
-
|
-
|
1
|
-
|
1
|
(1)
|
-
|
Dividends paid
|
-
|
-
|
(509)
|
-
|
(509)
|
(1)
|
(510)
|
Transactions with owners
|
1
|
20
|
(413)
|
(70)
|
(462)
|
(2)
|
(464)
|
At
31 March 2024
|
97
|
1,819
|
21,155
|
(18,437)
|
4,634
|
35
|
4,669
|
|
|
|
|
|
|
|
|
|
Called-up share capital
(Note
19)
|
Share
premium account
(Note
19)
|
Retained
earnings
|
Other
reserves
|
Attributable to owners of
Experian plc
|
Non-controlling interests
|
Total
equity
|
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
At 1 April 2022
|
96
|
1,780
|
20,157
|
(18,064)
|
3,969
|
38
|
4,007
|
Comprehensive income:
|
|
|
|
|
|
|
|
Profit for the financial
year
|
-
|
-
|
770
|
-
|
770
|
3
|
773
|
Other comprehensive expense for the
financial year
|
-
|
-
|
(76)
|
(205)
|
(281)
|
(6)
|
(287)
|
Total comprehensive income/(expense)
|
-
|
-
|
694
|
(205)
|
489
|
(3)
|
486
|
Transactions with owners:
|
|
|
|
|
|
|
|
Employee share incentive
plans:
|
|
|
|
|
|
|
|
- value of employee
services
|
-
|
-
|
129
|
-
|
129
|
-
|
129
|
- shares issued on
vesting
|
-
|
19
|
-
|
-
|
19
|
-
|
19
|
- purchase of shares by employee
trusts
|
-
|
-
|
-
|
(45)
|
(45)
|
-
|
(45)
|
- other vesting of awards and
exercises of share options
|
-
|
-
|
(36)
|
50
|
14
|
-
|
14
|
- related tax charge
|
-
|
-
|
(9)
|
-
|
(9)
|
-
|
(9)
|
- other payments
|
-
|
-
|
(5)
|
-
|
(5)
|
-
|
(5)
|
Purchase of shares held as treasury
shares
|
-
|
-
|
-
|
(149)
|
(149)
|
-
|
(149)
|
Transactions with non-controlling
interests
|
-
|
-
|
(1)
|
-
|
(1)
|
1
|
-
|
Dividends paid
|
-
|
-
|
(482)
|
-
|
(482)
|
(1)
|
(483)
|
Transactions with owners
|
-
|
19
|
(404)
|
(144)
|
(529)
|
-
|
(529)
|
At
31 March 2023
|
96
|
1,799
|
20,447
|
(18,413)
|
3,929
|
35
|
3,964
|
Group cash flow statement
for the year ended 31 March
2024
|
|
|
2024
|
|
2023
|
|
Notes
|
|
US$m
|
|
US$m
|
Cash flows from operating
activities
|
|
|
|
|
|
Cash generated from operations
|
16(a)
|
|
2,440
|
|
2,358
|
Interest paid
|
|
|
(160)
|
|
(126)
|
Interest received
|
|
|
11
|
|
8
|
Dividends received from
associates
|
|
|
-
|
|
2
|
Tax paid
|
|
|
(544)
|
|
(525)
|
Net cash inflow from operating
activities
|
|
|
1,747
|
|
1,717
|
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
|
Purchase of other intangible
assets
|
16(c)
|
|
(600)
|
|
(563)
|
Purchase of property, plant and
equipment
|
|
|
(40)
|
|
(64)
|
Disposal of property, plant and
equipment
|
|
|
1
|
|
-
|
Disposal of assets classified as
held-for-sale
|
|
|
2
|
|
-
|
Purchase of other financial
assets
|
|
|
(11)
|
|
(15)
|
Disposal of other financial
assets
|
|
|
5
|
|
3
|
Acquisition of subsidiaries, net of cash
acquired
|
16(d)
|
|
(462)
|
|
(309)
|
Disposal of operations
|
|
|
6
|
|
(1)
|
Disposal of investment in
associate
|
8(c)
|
|
-
|
|
1
|
Net cash flows used in investing
activities
|
|
|
(1,099)
|
|
(948)
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
Cash inflow in respect of shares
issued
|
16(e)
|
|
20
|
|
19
|
Cash outflow in respect of share
purchases
|
16(e)
|
|
(120)
|
|
(194)
|
Other payments on vesting of share
awards
|
|
|
(4)
|
|
(5)
|
Settlement of put options held over shares in
subsidiaries
|
16(d)
|
|
-
|
|
(133)
|
New borrowings1
|
|
|
-
|
|
84
|
Repayment of borrowings
|
|
|
(7)
|
|
(1)
|
Movements in short-term commercial
paper1
|
|
|
109
|
|
109
|
Principal lease payments
|
|
|
(48)
|
|
(57)
|
Net receipts/(payments) for derivative
contracts
|
|
|
9
|
|
(61)
|
Dividends paid
|
|
|
(510)
|
|
(483)
|
Net cash flows used in financing
activities
|
|
|
(551)
|
|
(722)
|
|
|
|
|
|
|
Net increase in cash and cash
equivalents
|
|
|
97
|
|
47
|
Cash and cash equivalents at 1
April
|
|
|
198
|
|
176
|
Exchange movements on cash and cash
equivalents
|
|
|
5
|
|
(25)
|
Cash and cash equivalents at 31
March
|
16(f)
|
|
300
|
|
198
|
1. Movements in
commercial paper have been analysed separately on the face of the
cash flow statement to reflect their short-term maturity. The total
of new borrowings for the year ended 31 March 2023 has been
re-presented accordingly.
Notes to the financial statements
for the year ended 31 March
2024
1. Corporate
information
Experian plc (the Company) is the
ultimate parent company of the Experian group of companies
(Experian or the Group). Experian is the leading global information
services group. The Company is incorporated and registered in
Jersey as a public company limited by shares and is resident in
Ireland. The Company's registered office is at 22 Grenville Street,
St Helier, Jersey, JE4 8PX, Channel Islands. The Company's ordinary
shares are traded on the London Stock Exchange's Regulated Market
and have a Premium Listing.
There has been no change in this
information since the Annual Report for the year ended 31 March
2023.
2. Basis of
preparation
The financial information set out
in this preliminary announcement does not constitute the Group's
statutory financial statements, which comprise the Annual Report
and audited financial statements for the years ended 31 March 2024
and 31 March 2023, but is derived from the statutory financial
statements for the year ended 31 March 2024. The Group's statutory
financial statements for the year ended 31 March 2024 will be made
available to shareholders in June 2024 and delivered to the Jersey
Registrar of Companies in due course. The auditor has reported on
those financial statements and has given an unqualified report
which does not contain a statement under Article 113B(3) or Article
113B(6) of the Companies (Jersey) Law 1991. The Group's statutory
financial statements for the year ended 31 March 2023 have been
delivered to the Jersey Registrar of Companies. The auditor
reported on those financial statements and gave an unqualified
report which did not contain a statement under Article 113B(3) or
Article 113B(6) of the Companies (Jersey) Law 1991.
The Group's statutory financial
statements for the year ended 31 March 2024 have been:
· prepared in accordance with the Companies (Jersey) Law 1991
and IFRS Accounting Standards as adopted pursuant to Regulation
(EC) No. 1606/2002 as it applies in the European Union (EU-IFRS),
UK-adopted international accounting standards (UK-IFRS) and IFRS as
issued by the International Accounting Standards Board (IASB-IFRS).
EU-IFRS, UK-IFRS, and IASB-IFRS all differ in certain respects from
each other, however the differences have no material impact for the
periods presented
· prepared on the going concern basis and under the historical
cost convention, as modified for the revaluation of certain
financial assets and financial liabilities
· presented in US dollars, the most representative currency of
the Group's operations, and generally rounded to the nearest
million
· prepared using the principal exchange rates set out on pages
15 and 16
· designed to voluntarily include disclosures in line with
those parts of the UK Companies Act 2006 applicable to companies
reporting under that law.
Other than those disclosed in this
preliminary announcement, no significant events impacting the Group
have occurred between 31 March 2024 and 14 May 2024 when this
preliminary announcement was approved for issue.
This preliminary announcement has
been prepared in accordance with the Listing Rules of the UK
Financial Conduct Authority, using the accounting policies applied
in the preparation of the Group's statutory financial statements
for the year ended 31 March 2024. Those policies were published in
full in the Group's statutory financial statements for the year
ended 31 March 2023 and are available on the corporate website,
at experianplc.com.
Going concern
Our going concern assessment
focuses on immediately available sources of liquidity to fund our
anticipated trading pattern, plus anticipated acquisition spend,
returns to shareholders and capital investment, ensuring we always
maintain a comfortable margin of headroom in case of the
unexpected. We also perform a review of indicators typical of
emerging going concern issues, and have identified none.
The directors believe that the
Group and the Company are well placed to manage their financing and
other business risks satisfactorily, and have a reasonable
expectation that the Group and the Company will have adequate
resources to continue their operational existence for at least 12
months from the date of signing these financial statements. The
directors therefore consider it appropriate to adopt the going
concern basis of accounting in preparing the financial statements.
In reaching this conclusion, the directors noted the Group's strong
cash performance in the year, and its
resilience in the face of a viability reverse stress-test
scenario.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
3. Climate-related
matters
As an information services
business, our main environmental impact is the carbon footprint
generated from our operations and value chain. The majority of our
footprint is made up of greenhouse gas emissions from Purchased
Goods and Services and Upstream Leased Assets, including
third-party data centres, with emissions from our direct operations
making up approximately 3% of total emissions.
We are committed to reducing our
carbon emissions and to becoming carbon neutral in our own
operations by 2030. We continue to develop our plans to decarbonise
our business further and reduce energy consumption at our data
centres and across the Group. We have reduced our Scope 1 and 2
emissions by 75% since 2019.
We recognise the importance of
identifying and effectively managing the physical and transitional
risks that climate change poses to our operations and consider the
impact of climate-related matters, including legislation, on our
business. The climate change scenario analyses undertaken this year
in line with Task Force on Climate-related Financial Disclosures
(TCFD) recommendations did not identify any material impact on the
Group's financial results or on going concern or
viability.
4. Recent accounting
developments
There have been no accounting
standards, amendments or interpretations effective for the first
time in these financial statements which have had a material impact
on the Group's consolidated results or financial
position.
In February 2021, the IASB issued
amendments to IAS 1 'Presentation of Financial Statements' which
were applicable for Experian from 1 April 2023. The amendments
require disclosure of material accounting policies rather than
significant accounting policies. During the year the Group reviewed
its accounting policy disclosures to align with the amended
requirements.
On 23 May 2023, the IASB published
final amendments to IAS 12 'Income Taxes' to provide a temporary
mandatory relief from deferred tax accounting arising from the
jurisdictional implementation of the Organisation for Economic
Co-operation and Development's (OECD's) Pillar Two model rules. The
Group applied the exception with immediate effect.
On 9 April 2024 the IASB
issued IFRS 18 'Presentation and
Disclosure in Financial Statements', which
is expected to be effective for Experian
for the year ending 31 March 2028, subject
to UK and EU endorsement. IFRS 18 sets out requirements for the
presentation and disclosure of information in general purpose
financial statements and replaces IAS 1 'Presentation of Financial
Statements'.
Our assessment of the impact of
IFRS 18 on the Group financial statements has commenced; areas of
potential change have been noted and are undergoing further
review.
There are no other new standards,
amendments to existing standards, or interpretations that are not
yet effective, that are expected to have a material impact on the
Group's financial results. Accounting developments are routinely
reviewed by the Group and its financial reporting systems are
adapted as appropriate.
5. Use of non-GAAP measures in
the financial statements
As detailed below, the Group has
identified and defined certain measures that it uses to understand
and manage its performance. The measures are not defined under IFRS
and they may not be directly comparable with other companies'
adjusted performance measures. These non-GAAP measures are not
intended to be a substitute for any IFRS measures of performance
but management considers them to be key measures used for assessing
the underlying performance of our business.
(a) Benchmark profit before tax
(Benchmark PBT) (note 6(a))
Benchmark PBT is disclosed to
indicate the Group's underlying profitability. It is defined as
profit before amortisation and impairment of acquisition
intangibles, impairment of goodwill, acquisition expenses,
adjustments to contingent consideration, Exceptional items,
financing fair value remeasurements, tax (and interest
thereon) and discontinued operations. It
includes the Group's share of continuing associates' Benchmark
post-tax results.
An explanation of the basis on
which we report Exceptional items is provided in note 5(l). Other
adjustments, in addition to Exceptional items, made to derive
Benchmark PBT are explained as follows:
· Charges for the amortisation and impairment of acquisition
intangibles are excluded from the calculation of Benchmark PBT
because these charges are based on judgments about their value and
economic life and bear no relation to the Group's underlying
ongoing performance. Impairment of goodwill is similarly excluded
from the calculation of Benchmark PBT.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
5. Use of non-GAAP measures in
the financial statements (continued)
(a) Benchmark profit before tax
(Benchmark PBT) (note 6(a)) (continued)
· Acquisition and disposal expenses (representing the
incidental costs of acquisitions and disposals, one-time
integration costs and other corporate transaction expenses)
relating to successful, active or aborted acquisitions and
disposals are excluded from the definition of Benchmark PBT as they
bear no relation to the Group's underlying ongoing performance or
to the performance of any acquired businesses. Adjustments to
contingent consideration are similarly excluded from the definition
of Benchmark PBT.
· Charges and credits for financing fair value remeasurements
within finance expense in the Group income statement are excluded
from the definition of Benchmark PBT. These include retranslation
of intra-Group funding, and that element of the Group's derivatives
that is ineligible for hedge accounting, together with gains and
losses on put options in respect of acquisitions. Amounts
recognised generally arise from market movements and accordingly
bear no direct relation to the Group's underlying
performance.
(b) Benchmark earnings before
interest and tax (Benchmark EBIT) and margin (Benchmark EBIT
margin)
(note 6(a))
Benchmark EBIT is defined as
Benchmark PBT before the net interest expense charged
therein and accordingly excludes
Exceptional items as defined below. Benchmark EBIT margin is Benchmark EBIT from ongoing
activities expressed as a percentage of revenue from ongoing
activities.
(c) Benchmark earnings before
interest, tax, depreciation and amortisation (Benchmark
EBITDA)
Benchmark EBITDA is defined as
Benchmark EBIT before the depreciation and amortisation charged
therein.
(d) Exited business
activities
Exited business activities are
businesses sold, closed or identified for closure during a
financial year. These are treated as exited business activities for
both revenue and Benchmark EBIT purposes. The results of exited
business activities are disclosed separately with the results of
the prior period re-presented in the segmental analyses as
appropriate. This measure differs from the definition of
discontinued operations in IFRS 5 'Non-current Assets Held for Sale
and Discontinued Operations'.
(e) Ongoing
activities
The results of businesses trading
at 31 March 2024, that are not disclosed as exited business
activities, are reported as ongoing activities.
(f) Constant exchange
rates
To highlight our organic
performance, we discuss our results in terms of growth at constant
exchange rates, unless otherwise stated. This represents growth
calculated after translating both years' performance at the prior
year's average exchange rates.
(g) Total growth (note
6(e))
This is the year-on-year change in
the performance of our activities at
actual exchange rates. Total growth at constant exchange rates
removes the translational foreign exchange effects arising on the
consolidation of our activities and
comprises one of our measures of performance at constant exchange
rates.
(h) Organic revenue growth (note
6(e))
This is the year-on-year change in
the revenue of ongoing activities, translated at constant exchange
rates, excluding acquisitions until the first anniversary of their
consolidation.
(i) Benchmark earnings and Total
Benchmark earnings (note 11)
Benchmark earnings comprises
Benchmark PBT less attributable tax and non-controlling interests.
The attributable tax for this purpose excludes significant tax
credits and charges arising in the year which, in view of their
size or nature, are not comparable with previous years, together
with tax arising on Exceptional items and on other adjustments made
to derive Benchmark PBT. Benchmark PBT less attributable tax is
designated as Total Benchmark earnings.
(j) Benchmark earnings per share
(Benchmark EPS) (note 11(a))
Benchmark EPS comprises Benchmark
earnings divided by the weighted average number of issued ordinary
shares, as adjusted for own shares held.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
5. Use of non-GAAP measures in
the financial statements (continued)
(k) Benchmark tax charge and rate
(note 10(b))
The Benchmark tax charge is the
tax charge applicable to Benchmark PBT. It differs from the tax
charge by tax attributable to Exceptional items and other
adjustments made to derive Benchmark PBT, and exceptional tax
charges. A reconciliation is provided in note 10(b) to these
financial statements. The Benchmark effective rate of tax is
calculated by dividing the Benchmark tax charge by Benchmark
PBT.
(l) Exceptional items (note
8(a))
The separate reporting of
Exceptional items gives an indication of the Group's underlying
performance. Exceptional items include those arising from the
profit or loss on disposal of businesses, closure costs of
significant operations (including onerous global support costs
associated with those operations), costs of significant
restructuring programmes and other financially significant one-off
items. All other restructuring costs are charged against Benchmark
EBIT, in the segments in which they are incurred.
(m) Full-year dividend per share
(note 12(a))
Full-year dividend per share
comprises the total of dividends per share announced in respect of
the financial year.
(n) Benchmark operating and
Benchmark free cash flow
Benchmark operating cash flow is
Benchmark EBIT plus amortisation, depreciation and charges in
respect of share-based incentive plans, less capital expenditure
net of disposal proceeds and adjusted for changes in working
capital, principal lease payments and the Group's share of the
Benchmark profit or loss retained in continuing associates.
Benchmark free cash flow is derived from Benchmark operating cash
flow by excluding net interest, tax paid in respect of continuing
operations and dividends paid to non-controlling
interests.
(o) Cash flow
conversion
Cash flow conversion is Benchmark
operating cash flow expressed as a percentage of Benchmark
EBIT.
(p) Net debt and Net funding
(note 17)
Net debt is borrowings (and the
fair value of derivatives hedging borrowings) excluding accrued
interest, less cash and cash equivalents and other highly liquid
bank deposits with original maturities greater than three
months. Net funding is borrowings (and the
fair value of the effective portion of derivatives hedging
borrowings) excluding accrued interest,
less cash held in Group Treasury.
(q) Return on capital employed
(ROCE)
ROCE is defined as Benchmark EBIT
less tax at the Benchmark rate divided by a three-point average of
capital employed, in continuing
operations, over the year. Capital employed is net assets less
non-controlling interests and right-of-use assets, further adjusted
to add or deduct the net tax liability or asset and to add Net
debt.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
6. Segment information
(a) Income statement
|
North
America
|
Latin
America
|
UK and
Ireland
|
EMEA and
Asia
Pacific1
|
Total operating
segments
|
Central
Activities
|
Total
Group
|
|
Year ended 31 March 2024
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers
|
|
|
|
|
|
|
|
|
Ongoing activities
|
4,659
|
1,107
|
840
|
450
|
7,056
|
-
|
7,056
|
|
Exited business
activities
|
-
|
20
|
4
|
17
|
41
|
-
|
41
|
|
Total
|
4,659
|
1,127
|
844
|
467
|
7,097
|
-
|
7,097
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Benchmark EBIT to profit/(loss) before
tax
|
|
|
|
|
|
|
|
|
Benchmark EBIT
|
|
|
|
|
|
|
|
|
Ongoing activities before transfer
pricing and other adjustments
|
1,551
|
360
|
173
|
3
|
2,087
|
(143)
|
1,944
|
|
Transfer pricing and other
allocation adjustments
|
(20)
|
-
|
8
|
13
|
1
|
(1)
|
-
|
|
Ongoing activities
|
1,531
|
360
|
181
|
16
|
2,088
|
(144)
|
1,944
|
|
Exited business
activities
|
-
|
(6)
|
1
|
(11)
|
(16)
|
-
|
(16)
|
|
Total
|
1,531
|
354
|
182
|
5
|
2,072
|
(144)
|
1,928
|
|
Net interest expense included in
Benchmark PBT
(note 9(b))
|
(3)
|
(2)
|
(2)
|
(1)
|
(8)
|
(131)
|
(139)
|
|
Benchmark PBT
|
1,528
|
352
|
180
|
4
|
2,064
|
(275)
|
1,789
|
|
Exceptional items (note
8(a))
|
(1)
|
-
|
-
|
5
|
4
|
-
|
4
|
|
Amortisation of acquisition
intangibles
|
(112)
|
(21)
|
(7)
|
(53)
|
(193)
|
-
|
(193)
|
|
Acquisition and disposal
expenses
|
(1)
|
(17)
|
(7)
|
(16)
|
(41)
|
-
|
(41)
|
|
Adjustment to the fair value of
contingent consideration
|
10
|
(15)
|
-
|
-
|
(5)
|
1
|
(4)
|
|
Non-benchmark share of post-tax loss
of associates
|
-
|
-
|
(1)
|
-
|
(1)
|
-
|
(1)
|
|
Interest on uncertain tax
provisions
|
-
|
-
|
-
|
-
|
-
|
20
|
20
|
|
Financing fair value
remeasurements
|
-
|
-
|
-
|
-
|
-
|
(23)
|
(23)
|
|
Profit/(loss) before tax
|
1,424
|
299
|
165
|
(60)
|
1,828
|
(277)
|
1,551
|
|
|
|
|
|
|
|
|
|
|
North
America
|
Latin
America
|
UK and
Ireland
|
EMEA and
Asia
Pacific1
|
Total operating
segments
|
Central
Activities
|
Total
Group
|
|
Year ended 31 March 20232
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers
|
|
|
|
|
|
|
|
|
Ongoing activities
|
4,432
|
914
|
781
|
421
|
6,548
|
-
|
6,548
|
|
Exited business
activities
|
-
|
33
|
3
|
35
|
71
|
-
|
71
|
|
Total
|
4,432
|
947
|
784
|
456
|
6,619
|
-
|
6,619
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Benchmark EBIT to profit/(loss) before
tax
|
|
|
|
|
|
|
|
|
Benchmark EBIT
|
|
|
|
|
|
|
|
|
Ongoing activities before transfer
pricing and other adjustments
|
1,497
|
292
|
157
|
(7)
|
1,939
|
(141)
|
1,798
|
|
Transfer pricing and other
allocation adjustments
|
(30)
|
-
|
12
|
20
|
2
|
(2)
|
-
|
|
Ongoing activities
|
1,467
|
292
|
169
|
13
|
1,941
|
(143)
|
1,798
|
|
Exited business
activities
|
-
|
2
|
1
|
(7)
|
(4)
|
-
|
(4)
|
|
Total
|
1,467
|
294
|
170
|
6
|
1,937
|
(143)
|
1,794
|
|
Net interest expense included in
Benchmark PBT
(note 9(b))
|
(4)
|
(1)
|
(1)
|
(1)
|
(7)
|
(117)
|
(124)
|
|
Benchmark PBT
|
1,463
|
293
|
169
|
5
|
1,930
|
(260)
|
1,670
|
|
Exceptional items (note
8(a))
|
4
|
-
|
-
|
(70)
|
(66)
|
-
|
(66)
|
|
Impairment of goodwill (note
13)
|
-
|
-
|
-
|
(179)
|
(179)
|
-
|
(179)
|
|
Amortisation of acquisition
intangibles
|
(124)
|
(21)
|
(8)
|
(39)
|
(192)
|
-
|
(192)
|
|
Acquisition and disposal
expenses
|
(18)
|
(4)
|
(7)
|
(17)
|
(46)
|
-
|
(46)
|
|
Adjustment to the fair value of
contingent consideration
|
(48)
|
(5)
|
8
|
-
|
(45)
|
-
|
(45)
|
|
Non-benchmark share of post-tax loss
of associates
|
-
|
-
|
(18)
|
-
|
(18)
|
-
|
(18)
|
|
Interest on uncertain tax
provisions
|
-
|
-
|
-
|
-
|
-
|
(1)
|
(1)
|
|
Financing fair value
remeasurements
|
-
|
-
|
-
|
-
|
-
|
51
|
51
|
|
Profit/(loss) before tax
|
1,277
|
263
|
144
|
(300)
|
1,384
|
(210)
|
1,174
|
|
|
|
|
|
|
|
|
|
|
|
|
1. As a result of a
strategic review and restructuring our Europe, Middle East and
Africa (EMEA) and Asia Pacific regions were formally combined into
a single operating segment with effect from 1 April 2023. Amounts
for the year ended 31 March 2023 presented for the combined
EMEA/Asia Pacific regions have been re-captioned EMEA and Asia
Pacific, with no impact on results or balances.
2. Revenue of US$39m
and Benchmark EBIT of US$4m for the year ended 31 March 2023 have
been re-presented for the reclassification to exited business
activities of certain B2B businesses.
Additional information by
operating segment, including that on total and organic growth at
constant exchange rates, is provided within pages 3 to
13.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
6. Segment information (continued)
(b) Revenue by
country
|
2024
|
|
2023
|
|
US$m
|
|
US$m
|
USA
|
4,658
|
|
4,429
|
Brazil
|
991
|
|
839
|
UK
|
839
|
|
780
|
Other
|
609
|
|
571
|
|
7,097
|
|
6,619
|
Revenue is primarily attributable
to countries other than Ireland. No single client accounted for 10%
or more of revenue in the current or prior year. Revenue from the
USA, Brazil and the UK in aggregate comprises 91% (2023: 91%) of
Group revenue. Other comprises a number of other countries, none of
which has revenue that is individually material.
(c) Disaggregation of revenue from
contracts with customers
|
North
America
|
Latin
America
|
UK and Ireland
|
EMEA
and
Asia Pacific
|
Total operating
segments
|
Year ended 31 March 2024
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
Revenue from
external customers
|
|
|
|
|
|
Data
|
2,231
|
669
|
423
|
312
|
3,635
|
Decisioning
|
889
|
213
|
244
|
138
|
1,484
|
Business-to-Business
|
3,120
|
882
|
667
|
450
|
5,119
|
Consumer Services
|
1,539
|
225
|
173
|
-
|
1,937
|
Ongoing activities
|
4,659
|
1,107
|
840
|
450
|
7,056
|
Exited business activities
|
-
|
20
|
4
|
17
|
41
|
Total
|
4,659
|
1,127
|
844
|
467
|
7,097
|
|
|
|
|
|
|
|
North
America
|
Latin
America
|
UK and Ireland
|
EMEA
and
Asia Pacific
|
Total operating
segments
|
Year ended 31 March
20231
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
Revenue from
external customers
|
|
|
|
|
|
Data
|
2,142
|
573
|
388
|
298
|
3,401
|
Decisioning
|
837
|
176
|
229
|
123
|
1,365
|
Business-to-Business
|
2,979
|
749
|
617
|
421
|
4,766
|
Consumer Services
|
1,453
|
165
|
164
|
-
|
1,782
|
Ongoing activities
|
4,432
|
914
|
781
|
421
|
6,548
|
Exited business activities
|
-
|
33
|
3
|
35
|
71
|
Total
|
4,432
|
947
|
784
|
456
|
6,619
|
1. Revenue for the
year ended 31 March 2023 of US$39m has been re-presented for the
reclassification to exited business activities of certain B2B
businesses.
Revenue in respect of exited
business activities comprised Latin America Data revenue of US$20m
(2023: US$33m), UK and Ireland Data revenue of US$4m (2023: US$3m),
and EMEA and Asia Pacific Data and Decisioning revenue of US$1m
(2023: US$10m) and US$16m (2023: US$25m) respectively.
Data is predominantly
transactional revenue with a portion from licence fees.
Decisioning revenue is derived
from:
· software and system sales, and includes recurring licence
fees, consultancy and implementation fees, and transactional
charges
· credit score fees which are primarily
transactional
· analytics income comprising a mix of consultancy and
professional fees as well as transactional revenue.
Consumer Services revenue
primarily comprises monthly subscription and one-off fees, and
referral fees for financial products and white-label
partnerships.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
6. Segment information (continued)
(d) Revenue by business
segment
The additional analysis of revenue
from external customers provided to the chief operating
decision-maker and accordingly reportable under IFRS 8 'Operating
Segments' is given within note 7. This is supplemented by voluntary
disclosure of the profitability of groups of service lines. For
ease of reference, we continue to use the term 'business segments'
when discussing the results of groups of service lines.
(e) Reconciliation of revenue
from ongoing activities
|
North
America
|
Latin
America
|
UK and
Ireland
|
EMEA
and
Asia
Pacific
|
Total ongoing
activities
|
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
Revenue for the year ended 31 March
20231
|
4,432
|
914
|
781
|
421
|
6,548
|
Adjustment to constant exchange
rates
|
-
|
(1)
|
1
|
1
|
1
|
Revenue at constant exchange rates for the year ended 31
March 2023
|
4,432
|
913
|
782
|
422
|
6,549
|
Organic revenue growth
|
221
|
116
|
19
|
31
|
387
|
Revenue from
acquisitions
|
6
|
28
|
4
|
2
|
40
|
Revenue at constant exchange rates for the year ended 31
March 2024
|
4,659
|
1,057
|
805
|
455
|
6,976
|
Adjustment to actual exchange
rates
|
-
|
50
|
35
|
(5)
|
80
|
Revenue for the year ended 31 March 2024
|
4,659
|
1,107
|
840
|
450
|
7,056
|
|
|
|
|
|
|
Organic revenue growth at constant
exchange rates
|
5%
|
13%
|
2%
|
7%
|
6%
|
Revenue growth at constant
exchange rates
|
5%
|
16%
|
3%
|
8%
|
7%
|
1. Revenue of US$39m
for the year ended 31 March 2023 has been re-presented for the
reclassification to exited business activities of certain B2B
businesses.
The table above demonstrates the
application of the methodology set out in note 5 in determining
organic and total revenue growth at constant exchange rates.
Revenue at constant exchange rates is
reported for both years using the average exchange rates applicable
for the year ended 31 March 2023.
(f) Balance sheet
(i) Net
assets/(liabilities)
|
North
America
|
Latin
America
|
UK and Ireland
|
EMEA
and
Asia
Pacific
|
Total operating
segments
|
Central
Activities and other
|
Total
Group
|
At 31 March 2024
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
Goodwill
|
3,841
|
901
|
742
|
478
|
5,962
|
-
|
5,962
|
Investments in associates
|
4
|
-
|
7
|
-
|
11
|
-
|
11
|
Right-of-use assets
|
56
|
14
|
37
|
18
|
125
|
6
|
131
|
Other assets
|
2,578
|
898
|
565
|
441
|
4,482
|
1,126
|
5,608
|
Total assets
|
6,479
|
1,813
|
1,351
|
937
|
10,580
|
1,132
|
11,712
|
Lease obligations
|
(71)
|
(17)
|
(39)
|
(19)
|
(146)
|
(5)
|
(151)
|
Other liabilities
|
(1,301)
|
(478)
|
(298)
|
(207)
|
(2,284)
|
(4,608)
|
(6,892)
|
Total liabilities
|
(1,372)
|
(495)
|
(337)
|
(226)
|
(2,430)
|
(4,613)
|
(7,043)
|
Net assets/(liabilities)
|
5,107
|
1,318
|
1,014
|
711
|
8,150
|
(3,481)
|
4,669
|
|
North
America
|
Latin
America
|
UK and Ireland
|
EMEA
and
Asia Pacific
|
Total operating
segments
|
Central
Activities and other
|
Total
Group
|
At 31 March 2023
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
Goodwill
|
3,662
|
724
|
700
|
489
|
5,575
|
-
|
5,575
|
Investments in
associates
|
3
|
-
|
9
|
-
|
12
|
-
|
12
|
Right-of-use assets
|
72
|
16
|
14
|
20
|
122
|
6
|
128
|
Assets classified as
held-for-sale
|
-
|
-
|
-
|
4
|
4
|
12
|
16
|
Other assets
|
2,406
|
686
|
530
|
505
|
4,127
|
1,006
|
5,133
|
Total assets
|
6,143
|
1,426
|
1,253
|
1,018
|
9,840
|
1,024
|
10,864
|
Lease obligations
|
(89)
|
(19)
|
(14)
|
(21)
|
(143)
|
(5)
|
(148)
|
Liabilities classified as
held-for-sale
|
-
|
-
|
-
|
(3)
|
(3)
|
-
|
(3)
|
Other liabilities
|
(1,307)
|
(327)
|
(304)
|
(189)
|
(2,127)
|
(4,622)
|
(6,749)
|
Total liabilities
|
(1,396)
|
(346)
|
(318)
|
(213)
|
(2,273)
|
(4,627)
|
(6,900)
|
Net
assets/(liabilities)
|
4,747
|
1,080
|
935
|
805
|
7,567
|
(3,603)
|
3,964
|
Notes to the financial statements
(continued)
for the year ended 31 March
2024
6. Segment information (continued)
(f) Balance sheet (continued)
(ii)
Central Activities and other comprises:
|
2024
|
|
2023
|
|
Assets
|
Liabilities
|
Net
assets/
(liabilities)
|
|
Assets
|
Liabilities
|
Net
assets/
(liabilities)
|
|
US$m
|
US$m
|
US$m
|
|
US$m
|
US$m
|
US$m
|
Central Activities
|
666
|
(179)
|
487
|
|
731
|
(175)
|
556
|
Net debt1
|
314
|
(4,222)
|
(3,908)
|
|
206
|
(4,094)
|
(3,888)
|
Tax
|
152
|
(212)
|
(60)
|
|
87
|
(358)
|
(271)
|
|
1,132
|
(4,613)
|
(3,481)
|
|
1,024
|
(4,627)
|
(3,603)
|
1. Net debt comprises
amounts reported within Central Activities plus lease obligations
in operating segments, net of interest of US$145m (2023:
US$142m).
(iii) Capital employed
|
|
|
|
|
|
|
|
|
|
2024
|
2023
|
|
|
US$m
|
US$m
|
|
North America
|
5,107
|
4,747
|
|
Latin America
|
1,318
|
1,080
|
|
UK and Ireland
|
1,014
|
935
|
|
EMEA and Asia Pacific
|
711
|
805
|
|
Total operating segments
|
8,150
|
7,567
|
|
Central Activities
|
487
|
556
|
|
Add: lease obligations in operating
segments
|
146
|
143
|
|
Less: accrued interest on lease
obligations in operating segments
|
(1)
|
(1)
|
|
Less: right-of-use assets
|
(131)
|
(128)
|
|
Less: non-controlling
interests
|
(35)
|
(35)
|
|
Capital employed attributable to
owners
|
8,616
|
8,102
|
|
|
|
|
|
|
|
|
|
|
The three-point average capital
employed figure of US$8,406m (2023: US$8,060m), used in our
calculation of ROCE, is determined by calculating the arithmetic
average of capital employed at 31 March 2024, 30 September 2023 and
31 March 2023.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
7. Information on business segments (including non-GAAP
disclosures)
|
Business-to-Business
|
Consumer
Services
|
Total business
segments
|
Central
Activities
|
Total
Group
|
Year ended 31 March 2024
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
|
|
|
|
|
|
Revenue from external customers
|
|
|
|
|
|
Ongoing activities
|
5,119
|
1,937
|
7,056
|
-
|
7,056
|
Exited business
activities
|
41
|
-
|
41
|
-
|
41
|
Total
|
5,160
|
1,937
|
7,097
|
-
|
7,097
|
|
|
|
|
|
|
Reconciliation from Benchmark EBIT to profit/(loss) before
tax
|
|
|
|
|
|
Benchmark EBIT
|
|
|
|
|
|
Ongoing activities before transfer
pricing and other adjustments
|
1,601
|
486
|
2,087
|
(143)
|
1,944
|
Transfer pricing and other
allocation adjustments
|
8
|
(7)
|
1
|
(1)
|
-
|
Ongoing activities
|
1,609
|
479
|
2,088
|
(144)
|
1,944
|
Exited business
activities
|
(16)
|
-
|
(16)
|
-
|
(16)
|
Total
|
1,593
|
479
|
2,072
|
(144)
|
1,928
|
Net interest expense included in
Benchmark PBT (note 9(b))
|
(6)
|
(2)
|
(8)
|
(131)
|
(139)
|
Benchmark PBT
|
1,587
|
477
|
2,064
|
(275)
|
1,789
|
Exceptional items (note
8(a))
|
4
|
-
|
4
|
-
|
4
|
Amortisation of acquisition
intangibles
|
(163)
|
(30)
|
(193)
|
-
|
(193)
|
Acquisition and disposal
expenses
|
(29)
|
(12)
|
(41)
|
-
|
(41)
|
Adjustment to the fair value of
contingent consideration
|
-
|
(5)
|
(5)
|
1
|
(4)
|
Non-benchmark share of post-tax loss
of associates
|
-
|
(1)
|
(1)
|
-
|
(1)
|
Interest on uncertain tax
provisions
|
-
|
-
|
-
|
20
|
20
|
Financing fair value
remeasurements
|
-
|
-
|
-
|
(23)
|
(23)
|
Profit/(loss) before tax
|
1,399
|
429
|
1,828
|
(277)
|
1,551
|
|
|
|
|
|
|
|
Business-to-Business
|
Consumer
Services
|
Total business
segments
|
Central
Activities
|
Total
Group
|
Year ended 31 March 20231
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
|
|
|
|
|
|
Revenue from external customers
|
|
|
|
|
|
Ongoing activities
|
4,766
|
1,782
|
6,548
|
-
|
6,548
|
Exited business
activities
|
71
|
-
|
71
|
-
|
71
|
Total
|
4,837
|
1,782
|
6,619
|
-
|
6,619
|
|
|
|
|
|
|
Reconciliation from Benchmark EBIT to profit/(loss) before
tax
|
|
|
|
|
|
Benchmark EBIT
|
|
|
|
|
|
Ongoing activities before transfer
pricing and other adjustments
|
1,513
|
426
|
1,939
|
(141)
|
1,798
|
Transfer pricing and other
allocation adjustments
|
12
|
(10)
|
2
|
(2)
|
-
|
Ongoing activities
|
1,525
|
416
|
1,941
|
(143)
|
1,798
|
Exited business
activities
|
(4)
|
-
|
(4)
|
-
|
(4)
|
Total
|
1,521
|
416
|
1,937
|
(143)
|
1,794
|
Net interest expense included in
Benchmark PBT (note 9(b))
|
(5)
|
(2)
|
(7)
|
(117)
|
(124)
|
Benchmark PBT
|
1,516
|
414
|
1,930
|
(260)
|
1,670
|
Exceptional items (note
8(a))
|
(66)
|
-
|
(66)
|
-
|
(66)
|
Impairment of goodwill (note
13)
|
(179)
|
-
|
(179)
|
-
|
(179)
|
Amortisation of acquisition
intangibles
|
(159)
|
(33)
|
(192)
|
-
|
(192)
|
Acquisition and disposal
expenses
|
(23)
|
(23)
|
(46)
|
-
|
(46)
|
Adjustment to the fair value of
contingent consideration
|
(45)
|
-
|
(45)
|
-
|
(45)
|
Non-benchmark share of post-tax loss
of associates
|
-
|
(18)
|
(18)
|
-
|
(18)
|
Interest on uncertain tax
provisions
|
-
|
-
|
-
|
(1)
|
(1)
|
Financing fair value
remeasurements
|
-
|
-
|
-
|
51
|
51
|
Profit/(loss) before tax
|
1,044
|
340
|
1,384
|
(210)
|
1,174
|
|
|
|
|
|
|
|
|
|
|
1. Revenue of US$39m
and Benchmark EBIT of US$4m for the year ended 31 March 2023 have
been re-presented for the reclassification to exited business
activities of certain B2B businesses.
Additional information by business
segment, including that on total and organic growth at constant
exchange rates, is provided within pages 3 to 13 and within
Appendix 3 on page 16.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
8. Exceptional items and other adjustments made to derive
Benchmark PBT
(a) Net charge for Exceptional
items and other adjustments made to derive Benchmark
PBT
|
|
2024
|
2023
|
|
Notes
|
US$m
|
US$m
|
Exceptional items:
|
|
|
|
Net (profit)/loss on disposal of
operations1
|
8(b),
22
|
(5)
|
1
|
Profit on disposal of
associate1
|
8(c)
|
-
|
(1)
|
Restructuring costs
|
8(d)
|
-
|
53
|
Onerous global support
costs1
|
8(e)
|
-
|
16
|
Legal provisions
movements1
|
8(f)
|
1
|
(3)
|
Net (credit)/charge for Exceptional items
|
|
(4)
|
66
|
|
|
|
|
Other adjustments made to derive
Benchmark PBT:
|
|
|
|
Amortisation of acquisition
intangibles
|
|
193
|
192
|
Impairment of
goodwill1
|
13
|
-
|
179
|
Acquisition and disposal
expenses2
|
|
41
|
46
|
Adjustment to the fair value of
contingent consideration1
|
23(c)
|
4
|
45
|
Non-benchmark share of post-tax
loss of associates
|
|
1
|
18
|
Interest on uncertain tax
provisions
|
9(c)
|
(20)
|
1
|
Financing fair value
remeasurements
|
9(c)
|
23
|
(51)
|
Net charge for other adjustments made to derive Benchmark
PBT
|
|
242
|
430
|
Net charge for Exceptional items and other adjustments made
to derive Benchmark PBT
|
|
238
|
496
|
|
|
|
|
By income statement
caption:
|
|
|
|
Labour costs
|
|
14
|
40
|
Amortisation and depreciation
charges
|
|
193
|
192
|
Other operating charges
|
|
27
|
296
|
Within operating profit
|
|
234
|
528
|
Within share of post-tax loss of
associates
|
|
1
|
18
|
Within finance income
|
|
3
|
(50)
|
Net charge for Exceptional items and other adjustments made
to derive Benchmark PBT
|
|
238
|
496
|
1. Included in other
operating charges.
2. Acquisition and
disposal expenses represent professional fees and expenses
associated with completed, ongoing and terminated acquisition and
disposal processes, as well as the integration and separation costs
associated with completed deals. Of the total, US$14m (2023: US$7m)
is recorded within labour costs in the Group income statement, and
US$27m (2023: US$39m) is included within other operating
charges.
(b) Net (profit)/loss on disposal of
operations
The net (profit)/loss on disposal
of operations includes a gain on the disposal of interests in a
number of small subsidiary undertakings in EMEA and Asia Pacific of
US$5m (2023: loss of US$1m).
(c) Profit on disposal of associate
On 18 November 2020, the Group
disposed of its 18.6% interest in Finicity Corporation. During the
year ended 31 March 2023 further consideration of US$1m was
received in respect of earnout arrangements, the payout of which
was not anticipated at 31 March 2021.
(d) Restructuring costs
Costs of US$53m were recognised in
the year ended 31 March 2023 associated with a strategic review and
restructuring, primarily in the EMEA and Asia Pacific regions. The
charge included a loss on disposal and asset write-downs and
impairments of US$23m, and US$21m was labour related. The
associated cash outflow was US$20m in that year.
As we execute on the final stages of
our technology transformation and cloud migration, we will realign
our staff resources to our new technology architecture and
accelerate the shift to our global development centres to drive
productivity. We expect to incur an exceptional charge of
c.US$30m-US$50m in relation to this programme in FY25,
predominantly in one-off staff exit costs.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
8. Exceptional items and other adjustments made to derive
Benchmark PBT (continued)
(e) Onerous global support costs
The charge incurred in the year
ended 31 March 2023 comprised costs that were directly attributable
to exited businesses or incurred solely to support sub-scale,
multi-country markets.
(f) Legal provisions movements
Movements have occurred in
provisions held for a number of historical legal claims, and
reflect legal costs in North America of US$1m (2023: US$26m),
offset by insurance recoveries of US$nil (2023: US$29m).
9. Net finance expense/(income)
(a) Net finance expense included
in profit before tax
|
|
|
|
|
2024
|
2023
|
|
|
|
US$m
|
US$m
|
|
|
Interest income:
|
|
|
|
|
Bank deposits, short-term
investments and loan notes
|
(11)
|
(9)
|
|
|
Interest on pension plan
assets
|
(7)
|
(4)
|
|
|
Interest income
|
(18)
|
(13)
|
|
|
Net non-benchmark finance income
(note 9(c))
|
-
|
(50)
|
|
|
Finance income
|
(18)
|
(63)
|
|
|
|
|
|
|
|
Finance expense:
|
|
|
|
|
Interest expense
|
157
|
137
|
|
|
Net non-benchmark finance expense (note
9(c))
|
3
|
-
|
|
|
Finance
expense
|
160
|
137
|
|
|
|
|
|
|
|
Net finance expense included
in profit before tax
|
142
|
74
|
|
|
|
|
|
|
|
|
(b) Net interest expense
included in Benchmark PBT
|
|
|
|
|
|
2024
|
2023
|
|
|
US$m
|
US$m
|
|
Interest income
|
(18)
|
(13)
|
|
Interest
expense
|
157
|
137
|
|
Net interest expense
included in Benchmark PBT
|
139
|
124
|
|
|
|
|
|
|
|
(c) Analysis of net
non-benchmark finance expense/(income)
|
|
|
|
2024
|
2023
|
|
|
US$m
|
US$m
|
|
Foreign exchange losses on
Brazilian real intra-Group funding1
|
1
|
16
|
|
Foreign currency (gains)/losses on
cross-currency swaps designated as a
cash flow hedge - transfer from
OCI
|
(10)
|
30
|
|
Other financing fair value
losses/(gains)2
|
32
|
(97)
|
|
Interest on uncertain tax
provisions
|
(20)
|
1
|
|
|
3
|
(50)
|
|
|
|
|
|
1.
A Group company whose functional currency is not
the Brazilian real provides Brazilian real intra-Group funding to
Serasa S.A. Foreign exchange gains or losses on this funding are
recognised in the Group income statement.
2. Other
financing fair value gains primarily relate to our portfolio of
interest rate swaps used for managing the proportion of fixed rate
debt, as well as fair value losses of US$10m (2023: gains of
US$30m) on borrowings which are in a cash flow hedge
relationship.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
10. Tax
(a) Tax charge and effective rate of tax
|
2024
|
2023
|
|
US$m
|
US$m
|
Tax charge1
|
348
|
401
|
Profit before tax
|
1,551
|
1,174
|
Effective rate of tax based
on profit before tax
|
22.4%
|
34.2%
|
1.
The tax charge comprises a current tax charge of US$441m (2023:
US$521m) and a deferred tax credit of US$93m (2023:
US$120m).
The Group's tax rate reflects its
internal financing arrangements in place to fund non-UK
businesses.
At 31 March 2024, the Group held
current and deferred tax liabilities of US$61m (2023: US$102m) in
respect of uncertain tax positions. During the current and prior
year, Experian was in discussions with the US Internal Revenue
Service and His Majesty's Revenue and Customs in the UK to seek
clarity on transfer pricing and financing related issues. The net
decrease in provisions recognised during the year was driven by the
agreement of open tax issues in North America. In the year ended 31
March 2023, the net decrease in provisions was driven by the
agreement of open tax issues in the UK.
Liabilities relating to these open
and judgmental matters are based on an assessment as to whether
additional taxes will be due, after taking into account external
advice where appropriate. While the timing of developments in
resolving these matters is inherently uncertain, the Group does not
expect to materially increase its uncertain tax provisions in the
next 12 months.
(b) Reconciliation of the tax charge to the Benchmark tax
charge
|
2024
|
2023
|
|
US$m
|
US$m
|
Tax charge
|
348
|
401
|
Tax relief on Exceptional items and
other adjustments made to derive Benchmark PBT
|
111
|
33
|
Benchmark tax charge
|
459
|
434
|
|
|
|
Benchmark PBT
|
1,789
|
1,670
|
Benchmark tax rate
|
25.7%
|
26.0%
|
(c) Tax recognised in Other comprehensive income and directly
in equity
Other comprehensive expense of
US$34m (2023: US$287m) is stated after a deferred tax credit of
US$7m (2023: US$5m), relating to remeasurement gains on
post-employment benefit assets and obligations, and changes in the
fair value of investments revalued through OCI.
A tax credit relating to employee
share incentive plans of US$10m (2023: charge of US$9m) is
recognised in equity and reported as appropriate within
transactions with owners. This amount comprised a current tax
credit of US$1m (2023: charge of US$5m) and a deferred tax credit
of US$9m (2023: charge of US$4m).
Notes to the financial statements
(continued)
for the year ended 31 March
2024
11. Earnings per share disclosures
|
(a) Earnings per share (EPS)
|
|
|
|
Basic
|
|
Diluted
|
|
|
2024
|
2023
|
|
2024
|
2023
|
|
|
US cents
|
US
cents
|
|
US cents
|
US
cents
|
EPS
|
|
131.3
|
84.2
|
|
130.2
|
83.6
|
Add: Exceptional items and other
adjustments made to derive Benchmark PBT, net of related
tax
|
|
14.2
|
50.9
|
|
14.0
|
50.5
|
Benchmark EPS (non-GAAP measure)
|
|
145.5
|
135.1
|
|
144.2
|
134.1
|
|
|
|
|
|
|
|
|
(b) Analysis of earnings
(i) Attributable to owners of Experian
plc
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
2023
|
|
|
|
|
|
US$m
|
US$m
|
Profit for the financial year attributable to owners of
Experian plc
|
|
|
|
|
1,199
|
770
|
Add: Exceptional items and other
adjustments made to derive Benchmark PBT, net of related
tax
|
|
|
|
|
129
|
465
|
Benchmark earnings attributable to owners of Experian plc
(non-GAAP measure)
|
|
1,328
|
1,235
|
(ii) Attributable to
non-controlling interests
|
|
|
|
|
|
|
|
|
|
2024
|
2023
|
|
|
|
|
US$m
|
US$m
|
Profit for the financial year attributable to non-controlling
interests
|
|
4
|
3
|
Deduct: Exceptional items and other
adjustments made to derive Benchmark PBT,
net of related tax
|
(2)
|
(2)
|
Benchmark earnings attributable to non-controlling interests
(non-GAAP measure)
|
2
|
1
|
|
|
|
|
|
|
|
|
(c)
Reconciliation of Total Benchmark earnings to profit for the
financial year
|
|
|
|
|
2024
|
2023
|
|
US$m
|
US$m
|
Total Benchmark earnings (non-GAAP
measure)
|
1,330
|
1,236
|
Exceptional items and other
adjustments made to derive Benchmark PBT, net of related
tax:
|
|
|
- attributable to owners of Experian
plc
|
(129)
|
(465)
|
- attributable to non-controlling
interests
|
2
|
2
|
Profit for the financial year
|
1,203
|
773
|
|
|
|
|
(d)
Weighted average number of ordinary shares
|
|
|
|
|
2024
|
2023
|
|
|
million
|
million
|
|
Weighted average number of
ordinary shares
|
913
|
914
|
|
Add: dilutive effect of share
incentive awards, options and share purchases
|
8
|
7
|
|
Diluted weighted average number of ordinary
shares
|
921
|
921
|
|
|
|
|
|
|
Notes to the financial statements
(continued)
for the year ended 31 March
2024
12. Dividends on ordinary shares
(a)
Dividend information
|
2024
|
|
2023
|
|
US cents
per share
|
US$m
|
|
US
cents
per
share
|
US$m
|
Amounts recognised and paid during
the financial year:
|
|
|
|
|
|
First interim - paid in February
2024 (2023: February 2023)
|
18.00
|
164
|
|
17.00
|
155
|
Second interim - paid in July 2023
(2023: July 2022)
|
37.75
|
345
|
|
35.75
|
327
|
Dividends paid on ordinary shares
|
55.75
|
509
|
|
52.75
|
482
|
|
|
|
|
|
|
Full-year dividend for the financial
year1
|
58.50
|
534
|
|
54.75
|
499
|
1.
The cost of the second interim dividend for the
year ended 31 March 2023, paid in July 2023, increased by US$1m due
to foreign exchange rate movements.
A second interim dividend in
respect of the year ended 31 March 2024 of 40.50 US cents per
ordinary share will be paid on 19 July 2024, to shareholders on the
register at the close of business on 21 June 2024. Unless
shareholders elect by 21 June 2024 to receive US dollars, their
dividends will be paid in pounds sterling at a rate per share
calculated on the basis of the exchange rate from US dollars to
pounds sterling on 28 June 2024.
This dividend is not included as a
liability in these financial statements. This second interim
dividend and the first interim dividend paid in February 2024
comprise the full-year dividend for the financial year of 58.50 US
cents per ordinary share. Dividend amounts are quoted
gross.
In the year ended 31 March 2024,
the employee trusts waived their entitlements to dividends of US$3m
(2023: US$4m). There is no entitlement to dividends in respect of
own shares held as treasury shares.
(b) Income Access Share (IAS) arrangements
As its ordinary shares are listed
on the London Stock Exchange, the Company has a large number of UK
resident shareholders. In order that shareholders may receive
Experian dividends from a UK source, should they wish, the IAS
arrangements have been put in place. The purpose of the IAS
arrangements is to preserve the tax treatment of dividends paid to
Experian shareholders in the UK, in respect of dividends paid by
the Company. Shareholders who elect, or are deemed to elect, to
receive their dividends via the IAS arrangements will receive their
dividends from a UK source (rather than directly from the Company)
for UK tax purposes.
Shareholders who hold 50,000 or
fewer Experian plc shares on the first dividend record date after
they become shareholders, unless they elect otherwise, will be
deemed to have elected to receive their dividends under the IAS
arrangements.
Shareholders who hold more than
50,000 shares and who wish to receive their dividends from a UK
source must make an election to receive dividends via the IAS
arrangements. All elections remain in force indefinitely unless
revoked.
Unless shareholders have made an
election to receive dividends via the IAS arrangements, or are deemed to have made such an election,
dividends will be received from an Irish source and will be taxed
accordingly. The final date for submission of elections to receive
UK sourced dividends via the IAS arrangements is 21 June 2024. The
Company offers a Dividend Reinvestment Plan (DRIP) to shareholders
who receive their dividends under the IAS arrangements, and the
final date for submission of DRIP elections is also 21 June
2024. Shareholders should contact the
registrars for further details.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
13. Goodwill
(a) Movements in goodwill
|
2024
|
2023
|
|
US$m
|
US$m
|
Cost
|
|
|
At 1 April
|
5,821
|
5,790
|
Differences on exchange
|
19
|
(149)
|
Additions through business
combinations (note 21)
|
368
|
180
|
At 31 March
|
6,208
|
5,821
|
Accumulated impairment
|
|
|
At 1 April
|
246
|
53
|
Differences on exchange
|
-
|
14
|
Impairment charge
|
-
|
179
|
At 31 March
|
246
|
246
|
Net book amount at 1
April
|
5,575
|
5,737
|
Net book amount at 31 March
|
5,962
|
5,575
|
(b)
Goodwill by group of cash-generating units (CGUs)
|
|
|
|
2024
|
2023
|
|
US$m
|
US$m
|
North America
|
3,841
|
3,662
|
Latin America
|
901
|
724
|
UK and Ireland
|
742
|
700
|
EMEA and Asia Pacific
|
478
|
-
|
EMEA
|
-
|
409
|
Asia Pacific
|
-
|
80
|
At 31 March
|
5,962
|
5,575
|
As a result of the restructuring
activities undertaken across the EMEA and Asia Pacific regions
during FY23, and the integration and alignment of the two regions
under a single management team, the combined EMEA and Asia Pacific
group of CGUs now represents the lowest level at which goodwill is
allocated and monitored for internal management
purposes.
There was no change in the
goodwill allocated to the identified groups of CGUs as a result of
this change, other than to combine the carrying value of goodwill
previously allocated to the separate EMEA group of CGUs and Asia
Pacific group of CGUs into the opening carrying value of the EMEA
and Asia Pacific group of CGUs, as it was determined this approach
best reflects the goodwill associated with the reorganised
units.
(c) Key assumptions for value-in-use calculations by group of
CGUs
|
2024
|
|
|
2023
|
|
|
Discount
rate
|
Long-term growth
rate
|
|
|
Discount
rate
|
Long-term growth rate
|
|
% p.a.
|
% p.a.
|
|
|
%
p.a.
|
%
p.a.
|
North America
|
10.6
|
3.6
|
|
|
11.2
|
2.3
|
Latin America
|
19.1
|
5.1
|
|
|
15.8
|
4.7
|
UK and Ireland
|
11.7
|
3.1
|
|
|
10.9
|
2.3
|
EMEA and Asia Pacific
|
13.8
|
4.1
|
|
|
n/a
|
n/a
|
EMEA
|
n/a
|
n/a
|
|
|
12.6
|
3.9
|
Asia Pacific
|
n/a
|
n/a
|
|
|
11.2
|
5.3
|
|
|
|
|
|
|
|
|
|
|
As indicated in note 6(a) of the
Group's statutory financial statements for the year ended 31 March
2023, value-in-use calculations are underpinned by financial
forecasts looking forward up to five years, which continue to
reflect our current assessment of the impact of climate change and
associated commitments the Group has made. Management's key
assumptions in setting the financial budgets for the initial
five-year period were as follows:
· Forecast revenue growth rates were based on past experience,
adjusted for the strategic opportunities within each CGU; the
forecasts used average nominal growth rates of up to 14%, with
rates of up to 12% in EMEA and Asia Pacific.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
13. Goodwill (continued)
(c) Key assumptions for value-in-use calculations by group of
CGUs (continued)
· Benchmark EBIT was forecast based on historical margins and
expectations of future performance. Margins were expected to
improve modestly throughout the period in the mature CGUs and
improve annually by an absolute mid-single-digit amount in EMEA and
Asia Pacific.
· Forecast Benchmark operating cash flow conversion rates were
based on historical conversion rates achieved and performance
expectations in the respective CGUs, with long-term conversion
rates of 93% used in EMEA and Asia Pacific.
Further details of the principles
used in determining the basis of allocation by CGU and annual
impairment testing are given in note 6(a) of the Group's statutory
financial statements for the year ended 31 March 2023.
(d) Results of annual impairment review for the year ended 31
March 2024
The annual impairment reviews of
goodwill were performed as at 30 September 2023. There were no
significant changes in the key modelling assumptions discussed in
note 13(c) that would trigger a further review to be required at 31
March 2024. The recoverable amount of the EMEA and Asia Pacific CGU
exceeded its carrying value by US$137m. Any decline in the
estimated value-in-use in excess of that amount would result in the
recognition of an impairment charge. The sensitivities, which
result in the recoverable amount being equal to the carrying value,
are summarised as follows:
· an
absolute increase of 1.4 percentage points in the discount rate,
from 13.8% to 15.2%; or
· an
absolute reduction of 2.0 percentage points in the long-term growth
rate, from growth of 4.1% to growth of 2.1%; or
· a
reduction of 3.1 percentage points in the forecast FY29 Benchmark
EBIT margin, from 24.1% to 21.0%. A reduction in the annual
Benchmark EBIT margin improvement of approximately 0.6 percentage
points per year over the five-year forecast period would also
reduce the recoverable amount to the carrying value; or
· an
absolute reduction of 13% in the forecast FY29 Benchmark
EBIT.
The recoverable amount of all
other CGUs exceeded their carrying value, on the basis of the
assumptions set out in note 13(c) and any reasonably possible
changes thereof.
In the year ended 31 March 2023,
the carrying value of the EMEA CGU was reduced to its recoverable
amount through recognition of an impairment charge of US$179m, as a
result of increased discount rate assumptions used in the
value-in-use calculation, driven by increased underlying risk-free
interest rates and challenging market conditions. This charge was
recognised within total operating expenses in the Group income
statement.
The impairment review considered
the potential impact of climate change by considering the results
of the scenario analysis performed consistent with the
recommendations of the TCFD. There was no impact on the reported
amounts of goodwill as a result of this review.
14. Capital expenditure, disposals and capital
commitments
(a) Additions
|
2024
|
2023
|
|
US$m
|
US$m
|
Capital expenditure
|
640
|
627
|
Right-of-use assets
|
60
|
39
|
|
700
|
666
|
b) Disposal of other intangible assets and property, plant
and equipment
The book value of other intangible
fixed assets and property, plant and equipment disposed of in the
year was US$10m (2023: US$17m), of which
US$9m (2023: US$9m) related to the disposal of right-of-use assets.
In the year ended 31 March 2023, a loss of US$7m on the disposal of
internally generated software assets was reported within
non-benchmark items in the Group income statement, as it related to
assets developed for markets in which we no longer operate as a
result of restructuring activity (note 8(d)).
Notes to the financial statements
(continued)
for the year ended 31 March
2024
14. Capital expenditure, disposals and capital commitments
(continued)
(c) Capital commitments
|
2024
|
2023
|
|
US$m
|
US$m
|
Capital expenditure for which
contracts have been placed:
|
|
|
Other intangible assets
|
48
|
56
|
Property, plant and
equipment
|
7
|
12
|
|
55
|
68
|
Capital commitments at 31 March
2024 included US$nil (2023: US$3m) in respect of right-of-use
assets. Capital commitments at 31 March 2024 included commitments
of US$40m not expected to be incurred before 31 March 2025. Capital
commitments at 31 March 2023 included commitments of US$46m not
then expected to be incurred before 31 March 2024.
15. Post-employment benefits - IAS 19 'Employee Benefits'
information
(a) Balance sheet assets/(obligations)
|
|
|
|
|
|
2024
|
2023
|
|
|
US$m
|
US$m
|
|
Retirement benefit
assets/(obligations) - funded defined benefit plans:
|
|
|
|
Fair value of funded plans'
assets
|
871
|
866
|
|
Present value of funded plans'
obligations
|
(685)
|
(692)
|
|
Assets in the Group balance sheet
for funded defined benefit pensions
|
186
|
174
|
|
|
|
|
|
Obligations for unfunded
post-employment benefits:
|
|
|
|
Present value of defined benefit
pensions - unfunded plans
|
(37)
|
(36)
|
|
Present value of post-employment
medical benefits
|
(2)
|
(3)
|
|
Liabilities in the Group balance
sheet
|
(39)
|
(39)
|
|
Net
post-employment benefit assets
|
147
|
135
|
|
|
|
|
|
|
|
Pension assets are deemed to be
recoverable and there are no adjustments in respect of minimum
funding requirements as, under the rules of the UK Experian Pension
Scheme, future economic benefits are available to the Group in the
form of reductions in any future contribution requirements or
refunds of surplus.
The latest full actuarial
valuation of the Experian Pension Scheme was carried out as at 31
March 2022 and there was a moderate funding surplus. The next full
valuation will be carried out as at 31 March 2025.
(b) Movements in net post-employment benefit assets
recognised in the Group balance sheet
|
|
|
|
|
|
2024
|
2023
|
|
|
US$m
|
US$m
|
|
At 1 April
|
135
|
164
|
|
Differences on exchange
|
3
|
(10)
|
|
Credit to the Group income
statement
|
4
|
2
|
|
Remeasurement gains/(losses)
recognised within OCI
|
2
|
(23)
|
|
Contributions paid by the
Group
|
3
|
2
|
|
At 31 March
|
147
|
135
|
|
The Experian Pension Scheme was
closed to the future accrual of new benefits from 1 April 2022.
Contributions paid relate to unfunded post-employment
benefits.
The funded defined benefit pension
plans hold a range of assets including global equities, global
corporate bonds, secured credit, senior private debt and a
Liability Driven Investment strategy which is used to hedge the
interest rate and inflation sensitivities of the obligations.
Collateral levels within the Liability Driven Investment strategy
are closely monitored and remain robust. The primary drivers
impacting the fair value of the plans' funded assets and
obligations are changes to expectations for future pound sterling
interest rates and inflation expectations, as well as the
retranslation of assets and obligations into US dollars.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
15. Post-employment benefits - IAS 19 information
(continued)
(c) Income statement credit
|
|
|
|
|
|
2024
|
2023
|
|
|
|
US$m
|
US$m
|
|
|
By nature of expense:
|
|
|
|
|
Administration expenses
|
3
|
2
|
|
|
Charge within labour costs and
operating profit
|
3
|
2
|
|
|
Interest income
|
(7)
|
(4)
|
|
|
Total net credit to the Group
income statement
|
(4)
|
(2)
|
|
|
The income statement credit
relates to defined benefit pension plans. Of the remeasurement
recognised in the Statement of comprehensive income, a gain of
US$nil (2023: US$1m) was in respect of post-employment medical
benefits, with the balance relating to defined benefit pension
plans.
|
|
(d)
Financial actuarial assumptions
|
|
|
|
|
|
2024
|
2023
|
|
|
|
% p.a.
|
%
p.a.
|
|
|
Discount rate
|
4.9
|
4.9
|
|
|
Inflation rate - based on the UK
Retail Prices Index (the RPI)
|
3.3
|
3.3
|
|
|
Inflation rate - based on the UK
Consumer Prices Index (the CPI)
|
2.8
|
2.9
|
|
|
Increase for pensions in payment -
element based on the RPI (where cap is 5%)
|
3.1
|
3.1
|
|
|
Increase for pensions in payment -
element based on the CPI (where cap is 2.5%)
|
1.9
|
1.9
|
|
|
Increase for pensions in payment -
element based on the CPI (where cap is 3%)
|
2.2
|
2.1
|
|
|
Increase for pensions in
deferment
|
2.8
|
2.9
|
|
|
Inflation in medical
costs
|
6.3
|
6.3
|
|
|
|
|
|
|
|
|
|
|
|
|
While the methodology used to
determine the discount rate is unchanged from that used at 31 March
2023, the data source used by our external actuary to construct the
corporate bond yield curve has been expanded to make better use of
available data and to improve the stability of the discount rate
over time. In constructing the yield curve, judgment is required on
the selection of appropriate bonds to be included and the approach
then used to derive the yield curve. The change to the bond
universe has increased retirement benefit obligations at 31 March
2024 by approximately US$13m or 2%.
The other methods and assumptions
used are consistent with those used in the prior year.
Changes to these assumptions in the light of
prevailing conditions may have a significant impact on future
valuations.
The principal financial assumption
is the real discount rate, which is the excess of the discount rate
over the rate of inflation. The discount rate is based on the
market yields of high-quality corporate bonds of a currency and
term appropriate to the defined benefit obligations. The Experian
Pension Scheme obligations are in pounds sterling and have a
maturity on average of 13 years. If the real discount rate
increased/decreased by 0.25%, the defined benefit obligations at 31
March 2024 would decrease/increase by approximately US$20m and the
fair value of plan assets would decrease/increase by approximately
US$24m.
The rates of increase for pensions
in payment reflect the separate arrangements applying to different
groups of Experian's pensioners. If the inflation rate underlying
the pension increases (both in payment and in deferment)
increased/decreased by 0.1%, the defined benefit obligations at 31
March 2024 would increase/decrease by approximately
US$5m.
The accounting valuation assumes
that mortality will be in line with standard tables adjusted to
reflect the expected experience of the Experian Pension Scheme
membership, based on analysis carried out for the 2022 actuarial
valuation. A specific allowance for anticipated future improvements
in life expectancy is also incorporated.
The Group applied a 4% scaling
factor to its mortality assumptions at 31 March 2023 to allow for
changes in life expectancy anticipated in an updated version of a
standard UK model for projected improvements in life expectancy,
which was due to be issued based on evidence from 2022. This
reduced retirement benefit obligations at 31 March 2023 by
approximately US$8m. The updated model has subsequently been
published, and the mortality assumptions at 31 March 2024 have been
updated accordingly.
An increase in assumed life
expectancy of 0.1 years would increase the defined benefit
obligations at 31 March 2024 by approximately US$2m.
The Group has also considered the
potential impact of climate change and, at the present time, we do
not believe that there is sufficient evidence to require a change
in the long-term mortality assumptions. We will continue to monitor
any potential future impact on the mortality assumptions
used.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
16. Notes to the Group cash flow statement
(a) Cash generated from
operations
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
US$m
|
|
US$m
|
|
Profit before tax
|
|
1,551
|
|
1,174
|
|
Share of post-tax loss of
associates
|
|
1
|
|
17
|
|
Net finance expense
|
|
142
|
|
74
|
|
Operating profit
|
|
1,694
|
|
1,265
|
|
Profit on disposal of property,
plant and equipment
|
|
(1)
|
|
-
|
|
Net (profit)/loss on disposal of
operations
|
|
(5)
|
|
1
|
|
Profit on disposal of
associate
|
|
-
|
|
(1)
|
|
Impairment of goodwill
|
|
-
|
|
179
|
|
Impairment of other intangible
assets1
|
|
-
|
|
1
|
|
Impairment of held-for-sale
assets
|
|
1
|
|
-
|
|
Amortisation and
depreciation2
|
|
714
|
|
674
|
|
Charge in respect of share incentive
plans
|
|
132
|
|
129
|
|
(Increase)/decrease in working
capital (note 16(b))
|
|
(32)
|
|
30
|
|
Acquisition expenses - difference
between income statement charge and amounts paid
|
|
(9)
|
|
8
|
|
Adjustment to the fair value of
contingent consideration
|
|
4
|
|
45
|
|
Movement in Exceptional and other
non-benchmark items included in working capital
|
|
(58)
|
|
15
|
|
Movement in Exceptional items
included in other intangible assets
|
|
-
|
|
12
|
|
Cash generated from operations
|
|
2,440
|
|
2,358
|
|
|
|
|
|
|
|
|
|
|
|
|
1. In the
year ended 31 March 2023, US$8m of the internally generated
software asset impairment charge was recorded as exceptional as it
related to restructuring activity.
2.
Amortisation and depreciation includes amortisation of acquisition
intangibles of US$193m (2023: US$192m) which is excluded from
Benchmark PBT.
(b) (Increase)/decrease in working
capital
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
US$m
|
|
US$m
|
|
Trade and other
receivables
|
|
(155)
|
|
(171)
|
|
Trade and other payables
|
|
123
|
|
201
|
|
(Increase)/decrease in working
capital
|
|
(32)
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) Purchase of other intangible
assets
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
US$m
|
|
US$m
|
|
Databases
|
|
201
|
|
190
|
|
Internally generated software
|
|
349
|
|
335
|
|
Internal use software
|
|
50
|
|
38
|
|
Purchase of other intangible
assets
|
|
600
|
|
563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) Cash flows on acquisitions (non-GAAP
measure)
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
US$m
|
|
US$m
|
Purchase of subsidiaries (note
21(a))
|
|
366
|
|
268
|
Less: net cash acquired with
subsidiaries (note 21(a))
|
|
(17)
|
|
(5)
|
Settlement of deferred and
contingent consideration
|
|
113
|
|
46
|
As reported in the Group cash flow
statement
|
|
462
|
|
309
|
Acquisition expenses paid
|
|
50
|
|
38
|
Settlement of put options held over
shares in subsidiaries
|
|
-
|
|
133
|
Cash outflow for acquisitions (non-GAAP
measure)
|
|
512
|
|
480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to the financial statements
(continued)
for the year ended 31 March
2024
16. Notes to the Group cash flow statement
(continued)
(e) Cash outflow in respect of net share
purchases (non-GAAP measure)
|
|
|
2024
|
2023
|
|
|
|
US$m
|
US$m
|
|
Issue of ordinary
shares
|
|
(20)
|
(19)
|
|
Purchase of shares by employee
trusts
|
|
56
|
45
|
|
Purchase of shares held as treasury
shares
|
|
64
|
149
|
|
Cash outflow in respect of net share purchases (non-GAAP
measure)
|
|
100
|
175
|
|
|
|
|
|
|
As reported in the Group cash flow
statement:
|
|
|
|
|
Cash inflow in respect of shares
issued
|
|
(20)
|
(19)
|
|
Cash outflow in respect of share
purchases
|
|
120
|
194
|
|
Cash outflow in respect of net share purchases (non-GAAP
measure)
|
|
100
|
175
|
Consideration of US$1m (2023:
US$nil) for shares issued was outstanding at 31 March
2024.
|
|
|
|
|
|
|
|
|
(f) Analysis of cash and cash
equivalents
|
|
|
|
|
|
|
|
2024
|
2023
|
|
|
|
|
US$m
|
US$m
|
|
|
Cash and cash equivalents in the
Group balance sheet
|
|
312
|
202
|
|
|
Bank overdrafts
|
|
(12)
|
(4)
|
|
|
Cash and cash equivalents in the Group cash flow
statement
|
|
300
|
198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(g) Reconciliation of Cash generated from operations to
Benchmark operating cash flow (non-GAAP measure)
|
|
2024
|
2023
|
|
|
US$m
|
US$m
|
Cash generated from operations
(note 16(a))
|
|
2,440
|
2,358
|
Purchase of other intangible assets
(note 16(c))
|
|
(600)
|
(563)
|
Purchase of property, plant and
equipment
|
|
(40)
|
(64)
|
Disposal of property, plant and
equipment
|
|
1
|
-
|
Disposal of assets classified as
held-for-sale
|
|
2
|
-
|
Principal lease payments
|
|
(48)
|
(57)
|
Acquisition expenses paid
|
|
50
|
38
|
Dividends received from
associates
|
|
-
|
2
|
Cash flows in respect of Exceptional
and other non-benchmark items
|
|
59
|
39
|
Benchmark operating cash flow (non-GAAP
measure)
|
|
1,864
|
1,753
|
Cash flow conversion for the year
ended 31 March 2024 was 97% (2023: 98%). Benchmark free cash flow
for the year ended 31 March 2024 was US$1,170m (2023:
US$1,109m).
Notes to the financial statements
(continued)
for the year ended 31 March
2024
17. Net debt (non-GAAP measure)
|
(a)
Analysis by nature
|
|
|
|
|
2024
|
2023
|
|
|
|
US$m
|
US$m
|
|
|
Cash and cash equivalents (net of
overdrafts)
|
300
|
198
|
|
|
Debt due within one year - bonds
and notes
|
(499)
|
-
|
|
|
Debt due within one year -
commercial paper
|
(218)
|
(109)
|
|
|
Debt due within one year - lease
obligations
|
(36)
|
(42)
|
|
|
Debt due after more than one year
- bonds and notes
|
(3,279)
|
(3,733)
|
|
|
Debt due after more than one year
- bank loans
|
(84)
|
(85)
|
|
|
Debt due after more than one year
- lease obligations
|
(114)
|
(105)
|
|
|
Derivatives hedging loans and
borrowings
|
(123)
|
(154)
|
|
|
Net debt
|
(4,053)
|
(4,030)
|
|
|
|
|
|
|
|
|
|
|
(b)
Analysis by balance sheet caption
|
|
|
|
|
|
2024
|
2023
|
|
|
|
US$m
|
US$m
|
|
|
Cash and cash
equivalents
|
312
|
202
|
|
|
Current borrowings
|
(772)
|
(156)
|
|
|
Non-current borrowings
|
(3,494)
|
(3,943)
|
|
|
Borrowings
|
(4,266)
|
(4,099)
|
|
|
Total of Group balance sheet line
items
|
(3,954)
|
(3,897)
|
|
|
Accrued interest reported within
borrowings excluded from Net debt
|
24
|
21
|
|
|
Derivatives reported within Other
financial assets
|
2
|
4
|
|
|
Derivatives reported within Other
financial liabilities
|
(125)
|
(158)
|
|
|
Net debt
|
(4,053)
|
(4,030)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 March 2024, the fair value
of borrowings was US$4,034m (2023: US$3,826m) and includes lease
obligations of US$151m (2023: US$148m) recognised in respect of
right-of-use assets.
(c) Analysis of movements in Net debt (non-GAAP
measure)
|
1
April
|
|
Movements in the year ended 31 March 2024
|
31 March
|
|
2023
|
|
Net
cash
flow
|
Non-cash
lease obligation
movements1
|
Principal lease payments
|
Net
share purchases
|
Additions
through business combinations
|
Fair
value
(losses)
/gains
|
Exchange
and
other movements
|
2024
|
|
US$m
|
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
Derivatives hedging
loans
and borrowings
|
(154)
|
|
(10)
|
-
|
-
|
-
|
-
|
14
|
27
|
(123)
|
Borrowings
|
(4,099)
|
|
(57)
|
(50)
|
-
|
-
|
(7)
|
(17)
|
(36)
|
(4,266)
|
Liabilities from
financing activities
|
(4,253)
|
|
(67)
|
(50)
|
-
|
-
|
(7)
|
(3)
|
(9)
|
(4,389)
|
Accrued interest
|
21
|
|
3
|
-
|
-
|
-
|
-
|
-
|
-
|
24
|
Cash and cash
equivalents
|
202
|
|
154
|
-
|
48
|
(100)
|
-
|
-
|
8
|
312
|
Net debt
|
(4,030)
|
|
90
|
(50)
|
48
|
(100)
|
(7)
|
(3)
|
(1)
|
(4,053)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Non-cash lease
obligation movements include additions of US$60m and disposals of
US$10m.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
18. Undrawn committed bank borrowing
facilities
|
2024
|
2023
|
|
US$m
|
US$m
|
Facilities expiring in:
|
|
|
One to two years
|
100
|
365
|
Two to three years
|
216
|
2,050
|
Three to four years
|
150
|
-
|
Four to five years
|
1,900
|
-
|
|
2,366
|
2,415
|
In March 2024 the Group signed a
new syndicated US$1.8bn Revolving Credit Facility, committed until
March 2029. This replaced the US$1.95bn syndicated Revolving Credit
Facility that was due to mature in 2025.
These facilities are at variable
interest rates and are in place for general corporate purposes,
including the financing of acquisitions and the refinancing of
other borrowings.
19. Called-up share capital and share premium
account
|
Number of
shares
|
Called-up share
capital
|
Share premium
account
|
|
million
|
US$m
|
US$m
|
At 1 April 2022
|
970.6
|
96
|
1,780
|
Shares issued under employee share incentive
plans
|
0.8
|
-
|
19
|
At 31 March 2023
|
971.4
|
96
|
1,799
|
Shares issued under employee share incentive
plans
|
0.8
|
1
|
20
|
At 31 March 2024
|
972.2
|
97
|
1,819
|
20. Own shares held
|
Number of
shares
|
|
Cost
of
shares
|
|
million
|
|
US$m
|
At 1 April 2022
|
56.7
|
|
1,129
|
Purchase of shares by employee
trusts
|
1.5
|
|
45
|
Purchase of shares held as
treasury shares
|
4.8
|
|
149
|
Other vesting of awards and
exercises of share options
|
(4.0)
|
|
(50)
|
At 31 March 2023
|
59.0
|
|
1,273
|
Purchase of shares by employee
trusts
|
1.5
|
|
56
|
Purchase of shares held as treasury
shares
|
2.1
|
|
69
|
Other vesting of awards and
exercises of share options
|
(3.5)
|
|
(55)
|
At 31 March 2024
|
59.1
|
|
1,343
|
Own shares held at 31 March 2024
included 53.4 million shares (2023: 52.3 million) held as treasury
shares and 5.7 million (2023: 6.7 million) shares held by employee
trusts.
The total cost of own shares held
at 31 March 2024 of US$1,343m (2023: US$1,273m) is deducted from
Other reserves in the Group balance sheet.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
21. Acquisitions
(a) Acquisitions in the year
The Group made seven acquisitions
during the year ended 31 March 2024, including the acquisition on
15 November 2023 of 100% of WaveHDC LLC (WaveHDC), a leading
provider of patient data solutions to the healthcare market, for a
cash consideration of US$216m. Goodwill of US$179m was recognised
based on the fair value of the net assets acquired of US$37m. This
investment supplements our healthcare business in the
USA.
Net assets acquired, goodwill and
acquisition consideration are analysed below.
|
|
WaveHDC
|
Other
|
Total
|
|
|
US$m
|
US$m
|
US$m
|
Intangible assets:
|
|
|
|
|
Customer and other
relationships
|
|
44
|
24
|
68
|
Software development
|
|
25
|
51
|
76
|
Marketing-related
assets
|
|
-
|
3
|
3
|
Other intangibles
|
|
-
|
12
|
12
|
Intangible assets
|
|
69
|
90
|
159
|
Property, plant and
equipment
|
|
-
|
1
|
1
|
Deferred tax assets
|
|
-
|
11
|
11
|
Trade and other
receivables
|
|
5
|
16
|
21
|
Cash and cash equivalents (note
16(d))
|
|
-
|
17
|
17
|
Trade and other
payables
|
|
(37)
|
(27)
|
(64)
|
Borrowings
|
|
-
|
(7)
|
(7)
|
Deferred tax
liabilities
|
|
-
|
(13)
|
(13)
|
Total identifiable net
assets
|
|
37
|
88
|
125
|
Goodwill
|
|
179
|
189
|
368
|
Total
|
|
216
|
277
|
493
|
|
|
|
|
|
Satisfied by:
|
|
|
|
|
Cash and cash equivalents (note
16(d))
|
|
216
|
150
|
366
|
Put options
|
|
-
|
71
|
71
|
Contingent
consideration
|
|
-
|
56
|
56
|
Total
|
|
216
|
277
|
493
|
These fair values are determined
by using established estimation techniques. Acquisition intangibles
are valued using discounted cash flow models. The fair value of
contingent consideration and put option liabilities are determined
using a Monte Carlo simulation model applied to the forecast
performance of the relevant metric linked to each
liability.
For the year ended 31 March 2024,
the most significant inputs to these calculations are the
proportion of earnings attributable to customer and other
relationships and software development for WaveHDC, alongside the
forecast financial performance, and associated risk and volatility,
for MOVA Sociedade de Empréstimo entre Pessoas S.A. (MOVA) in
Brazil, in which the Group acquired a 51% majority stake on 3
August 2023.
The contingent consideration
payable for MOVA is linked to the revenue and Benchmark EBIT margin
performance of the business for the 2024 calendar year. Providing
that certain minimum thresholds are satisfied, we expect the
earnout will pay out within an undiscounted range of US$6m to
US$78m. We have determined the fair value of the contingent
consideration liability at acquisition to be US$32m, which is
included in the US$56m of other contingent consideration above.
Following application of the anticipated acquisition method of
accounting for MOVA, we have recognised a put option liability in
respect of the minority 49% shareholding, with the exercise price
linked to the 2028 calendar year revenue and Benchmark EBIT margin
performance of the business. If exercised, we expect the likely
range of the undiscounted option exercise price to be between
US$66m and US$283m. We have determined the fair value of the put
option liability at acquisition to be US$71m. If the discount rate
used in this determination increased or decreased by a percentage
point, the put option liability would decrease or increase by
approximately US$4m.
We engage with third-party experts
to assist with the valuation process for all significant or complex
acquisitions, including for the valuation of the contingent
consideration and put option liabilities associated with the MOVA
acquisition. Fair values on the acquisition of MOVA have been
finalised; other amounts are provisional and will be finalised no
later than one year after the date of acquisition. Provisional
amounts, predominantly for intangible assets, associated tax
balances and contingent consideration have been included at 31
March 2024, as a consequence of the timing and complexity of the
acquisitions.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
21. Acquisitions (continued)
(a) Acquisitions in the year (continued)
Goodwill represents the synergies,
assembled workforces and future growth potential of the acquired
businesses. The goodwill in relation to WaveHDC and three other
acquisitions is currently deductible for tax purposes, and
consequently no deferred tax liability has been recognised on the
fair value adjustments associated with these
acquisitions.
(b) Additional information
(i) Current year acquisitions
|
WaveHDC
|
Other
|
Total
|
|
US$m
|
US$m
|
US$m
|
Increase/(decrease) in book value of net
assets from provisional fair value adjustments:
|
|
|
|
Intangible assets
|
69
|
81
|
150
|
Deferred tax assets
|
-
|
7
|
7
|
Trade and other payables
|
(2)
|
(2)
|
(4)
|
Deferred tax liabilities
|
-
|
(13)
|
(13)
|
Increase in book value of net assets from
provisional fair value adjustments
|
67
|
73
|
140
|
|
|
|
|
Gross contractual amounts receivable in
respect of trade and other receivables
|
5
|
16
|
21
|
Pro-forma revenue from 1 April 2023 to date
of acquisition
|
20
|
35
|
55
|
Revenue from date of acquisition to 31 March
2024
|
7
|
25
|
32
|
Profit before tax from date of acquisition to
31 March 2024
|
1
|
1
|
2
|
At the dates of acquisition, the
gross contractual amounts receivable in respect of trade and other
receivables of US$21m were expected to be collected in
full.
If the transactions had occurred
on the first day of the financial year, the estimated additional
contribution to profit before tax would have been US$5m.
(ii) Prior years' acquisitions
Contingent consideration of
US$112m (2023: US$39m) was settled in the year in respect of
acquisitions made in earlier years. These cash flows are
principally comprised of a US$40m (2023: US$30m) outflow relating
to the acquisition of Tax Credit Co, LLC (TCC) in the year ended 31
March 2022, and a US$60m (2023: US$nil) outflow relating to the
acquisition of BrScan Processamento de Dados e Tecnologia Ltda
(BrScan) in the year ended 31 March 2021. Further detail on
contingent consideration fair value adjustments recognised in the
year is provided in note 23(c)(i).
The Group made six acquisitions in
the year ended 31 March 2023, which included CIC Plus, LLC in the
USA. A cash outflow of US$263m was reported in the Group cash flow
statement for that year, after deduction of US$5m in respect of net
cash acquired.
There have been no other material
gains, losses, corrections or other adjustments recognised in the
year ended 31 March 2024 that relate to acquisitions in the current
or earlier years.
(iii) Post balance sheet acquisitions
On 4 April 2024, we agreed to
acquire Credit Data Solutions Pty Ltd (illion), a leading consumer
and commercial credit bureau in Australia and New Zealand (A/NZ)
for a consideration of up to A$820m (c.US$532m). The acquisition of
this highly complementary business will supplement our bureau
services in A/NZ and enhance the competitive dynamics in this
market.
On 25 April 2024, we agreed to
acquire TEx Soluções em Tecnologia Ltda., an InsurTech company in
Brazil that offers innovative solutions for the insurance market,
for R$90m (c.US$17m).
Completion of both acquisitions is
expected in the year ending 31 March 2025, subject to regulatory
approval.
The fair values of goodwill,
software development, customer relationships and other assets and
liabilities in respect of these acquisitions will be reported in
the 2025 Experian Annual Report & Accounts, following
completion of the initial accounting.
22. Disposals
During the year we disposed of
interests in a number of small subsidiary undertakings in EMEA and
Asia Pacific, two of which were classified as held-for-sale at 31
March 2023. The profit on disposal was US$5m.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
23. Financial risk management
(a) Financial risk factors
The Group's activities expose it
to a variety of financial risks. These are market risk, including
foreign exchange risk and interest rate risk, credit risk and
liquidity risk. The nature of these risks and the policies adopted
by way of mitigation are unchanged from those reported in the
Annual Report and Group financial statements for the year ended 31
March 2023. Full information and disclosures were contained in that
document.
(b)
Analysis by valuation method for put options and items measured at
fair value
(i) At 31 March 2024
|
Level
1
|
Level
2
|
Level
3
|
Total
|
|
US$m
|
US$m
|
US$m
|
US$m
|
Financial assets:
|
|
|
|
|
Non-hedging derivatives
|
-
|
169
|
-
|
169
|
Other financial assets at fair value
through profit or loss (FVPL)
|
-
|
-
|
14
|
14
|
Financial assets at fair value
through profit or loss
|
-
|
169
|
14
|
183
|
Listed and trade
investments1
|
67
|
-
|
167
|
234
|
|
67
|
169
|
181
|
417
|
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
Derivatives used for hedging
- fair value
hedges2
|
-
|
(105)
|
-
|
(105)
|
Non-hedging derivatives
|
-
|
(21)
|
-
|
(21)
|
Other liabilities at fair value
through profit or loss
|
-
|
-
|
(92)
|
(92)
|
Financial liabilities at fair value
through profit or loss
|
-
|
(126)
|
(92)
|
(218)
|
Derivatives used for hedging
- cash flow
hedge1,2
|
-
|
(10)
|
-
|
(10)
|
Put options
|
-
|
-
|
(133)
|
(133)
|
|
-
|
(136)
|
(225)
|
(361)
|
Net financial assets/(liabilities)
|
67
|
33
|
(44)
|
56
|
(ii) At 31 March 2023
|
Level
1
|
Level
2
|
Level
3
|
Total
|
|
US$m
|
US$m
|
US$m
|
US$m
|
Financial assets:
|
|
|
|
|
Non-hedging derivatives
|
-
|
139
|
-
|
139
|
Other financial assets at fair value
through profit or loss
|
-
|
-
|
16
|
16
|
Financial assets at fair value
through profit or loss
|
-
|
139
|
16
|
155
|
Listed and trade
investments1
|
61
|
-
|
252
|
313
|
|
61
|
139
|
268
|
468
|
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
Derivatives used for hedging
- fair value
hedges2
|
-
|
(124)
|
-
|
(124)
|
Non-hedging derivatives
|
-
|
(20)
|
-
|
(20)
|
Other liabilities at fair value
through profit or loss
|
-
|
-
|
(139)
|
(139)
|
Financial liabilities at fair value
through profit or loss
|
-
|
(144)
|
(139)
|
(283)
|
Derivatives used for hedging
- cash flow
hedge1,2
|
-
|
(24)
|
-
|
(24)
|
Put options
|
-
|
-
|
(33)
|
(33)
|
|
-
|
(168)
|
(172)
|
(340)
|
Net financial assets/(liabilities)
|
61
|
(29)
|
96
|
128
|
1. Listed and trade
investments, and derivatives designated as a cash flow hedge, which
are in a documented hedge accounting relationship, are revalued
through OCI.
2. Derivatives used
for hedging are in documented hedge accounting
relationships.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
23. Financial risk management (continued)
(b)
Analysis by valuation method for put options and items measured at
fair value (continued)
Financial assets at fair value
through profit or loss are reported within Other financial assets
in the Group balance sheet.
Contingent consideration is
reported within trade and other payables in the Group balance
sheet. Put options and other financial liabilities at fair value
through profit or loss are reported within Other financial
liabilities in the Group balance sheet. Cross-currency swaps in
respect of the cash flow hedge are reported within Financial assets
revalued through OCI or Financial liabilities revalued through OCI,
in the Group balance sheet.
The fair values of derivative
financial instruments and other financial assets and liabilities
are determined by using market data and established estimation
techniques such as discounted cash flow and option valuation
models. The fair value of foreign exchange contracts is based on a
comparison of the contractual and year-end exchange rates. The fair
values of other derivative financial instruments are estimated by
discounting the future cash flows to net present values using
appropriate market rates prevailing at the year end. There have
been no changes in valuation techniques during the year under
review.
The analysis by level in the above
tables, is a requirement of IFRS 13 'Fair Value Measurement' and
the definitions are summarised here for completeness:
· assets and liabilities whose valuations are based on
unadjusted quoted prices in active markets for identical assets and
liabilities are classified as Level 1
· assets and liabilities which are not traded in an active
market, and whose valuations are derived from available market data
that is observable for the asset or liability, are classified as
Level 2
· assets and liabilities whose valuations are derived from
inputs not based on observable market data are classified as Level
3.
Level 3 items principally comprise
minority shareholdings in unlisted businesses, trade investments,
contingent consideration and put options associated with corporate
transactions.
Unlisted equity investments,
initially measured at cost, are revalued where sufficient
indicators are identified that a change in the fair value has
occurred. The inputs to any subsequent valuations are based on a
combination of observable evidence from external transactions in
the investee's equity and estimated discounted cash flows that will
arise from the investment. Valuations of material contingent
consideration, and put options associated with corporate
transactions, are based on Monte Carlo simulations using the most
recent management expectations of relevant business performance,
reflecting the different contractual arrangements in
place.
The ranges of the undiscounted
contingent consideration payable and the put option exercise price
on the acquisition of MOVA are set out in note 21(a). There would
be no material effect on the other amounts stated from any
reasonably possible change in inputs at 31 March 2024. There were
no transfers between levels during the current or prior
year.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
23. Financial risk management (continued)
(c) Analysis of movements in Level 3 financial
assets/(liabilities)
(i) Year ended 31 March 2024
|
Financial assets revalued through OCI
|
Other
financial assets at FVPL
|
Contingent consideration
|
Put
options
|
Total
|
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
At 1 April 2023
|
252
|
16
|
(139)
|
(33)
|
96
|
Additions1,2
|
9
|
2
|
(56)
|
(71)
|
(116)
|
Disposals
|
(1)
|
-
|
-
|
-
|
(1)
|
Conversion of convertible debt to
equity investments3
|
5
|
(5)
|
-
|
-
|
-
|
Settlement of contingent
consideration (note 21(b)(ii))
|
-
|
-
|
112
|
-
|
112
|
Adjustment to the fair value of
contingent consideration2
|
-
|
-
|
(4)
|
-
|
(4)
|
Valuation losses recognised in
the
Group income
statement4
|
-
|
-
|
-
|
(31)
|
(31)
|
Valuation losses recognised in
OCI5
|
(98)
|
-
|
-
|
-
|
(98)
|
Currency translation (losses)/gains
recognised directly in OCI
|
-
|
-
|
(2)
|
2
|
-
|
Other
|
-
|
1
|
(3)
|
-
|
(2)
|
At
31 March 2024
|
167
|
14
|
(92)
|
(133)
|
(44)
|
(ii) Year ended 31 March 2023
|
Financial assets revalued through OCI
|
Other
financial assets at FVPL
|
Contingent consideration
|
Put
options
|
Total
|
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
At 1 April 2022
|
295
|
18
|
(107)
|
(190)
|
16
|
Additions1,2
|
14
|
1
|
(35)
|
(11)
|
(31)
|
Disposals6
|
(6)
|
-
|
-
|
-
|
(6)
|
Settlement of contingent
consideration (note 21(b)(ii))
|
-
|
-
|
40
|
-
|
40
|
Cash payment on exercise of put
options7
|
-
|
-
|
-
|
133
|
133
|
Adjustment to the fair value of
contingent consideration2
|
-
|
-
|
(45)
|
-
|
(45)
|
Valuation gains/(losses) recognised
in the
Group income
statement4
|
-
|
(2)
|
-
|
26
|
24
|
Valuation losses recognised in
OCI
|
(52)
|
-
|
-
|
-
|
(52)
|
Currency translation gains
recognised directly in OCI
|
-
|
-
|
4
|
9
|
13
|
Other
|
1
|
(1)
|
4
|
-
|
4
|
At
31 March 2023
|
252
|
16
|
(139)
|
(33)
|
96
|
1. Additions to put
options in the year comprised US$71m in respect of the acquisition
of MOVA, and in the year ended 31 March 2023 related to the
acquisition of APC Buró.
2. Additions to contingent consideration comprised US$56m (2023:
US$35m) in respect of acquisitions. Contingent consideration in
relation to the FY22 acquisition of Tax Credit Co, LLC (TCC)
decreased by US$9m (2023: increased by US$49m) following the
settlement of all remaining liabilities for US$40m during the year.
Contingent consideration liabilities are revalued at each reporting
date based on current projections of the associated targets, with
any fair value remeasurements recognised as a non-benchmark item in
the Group income statement (note 8(a)).
3. Investments
previously held as financial assets at FVPL, are now held as
financial assets revalued through OCI due to the conversion of loan
notes to equity shares.
4. Movements in the
present value of expected future payments for put options are
unrealised and are recognised in financing fair value
remeasurements in the Group income statement.
5. Of the valuation
losses recognised in OCI US$77m, related to our investment in
Vector CM Holdings (Cayman) L.P.
6. During the year
ended 31 March 2023, we disposed of a trade investment valued at
US$6m; US$3m of the consideration was deferred.
7. The cash payment on
exercise of put options in the year ended 31 March 2023 related to
the purchase of the remaining 40% stake in the Arvato Financial
Solutions Risk Management Division.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
23. Financial risk management (continued)
(d) Fair value methodology
Information in respect of the
carrying amounts and the fair value of borrowings is included in
note 17(b). There are no material differences between the carrying
value of the Group's other financial assets and liabilities not
measured at fair value and their estimated fair values. The
following assumptions and methods are used to estimate the fair
values:
· the
fair values of receivables, payables and cash and cash equivalents
are considered to approximate to the carrying amounts
· the
fair values of short-term borrowings, other than bonds, are
considered to approximate to the carrying amounts due to the short
maturity terms of such instruments
· the
fair value of that portion of bonds carried at amortised cost is
based on quoted market prices, employing a valuation methodology
falling within Level 1 of the IFRS 13 fair value
hierarchy
· the
fair value of listed investments is based on quoted market prices,
employing a valuation methodology falling within Level 1 of the
IFRS 13 fair value hierarchy
· the
fair values of long-term variable rate bank loans and lease
obligations are considered to approximate to the carrying
amount
· the
fair values of other financial assets and liabilities are
calculated based on a discounted cash flow analysis, using a
valuation methodology falling within Level 2 of the IFRS 13 fair
value hierarchy, apart from the fair values of trade investments
and contingent consideration which are determined using a valuation
methodology falling within Level 3 of the IFRS 13 fair value
hierarchy.
The Group considers the impact of
climate-related matters, including legislation, on the fair value
measurement of assets and liabilities. At present, the impact of
climate-related matters is not material to the financial
statements.
(e) Carrying value of financial assets and
liabilities
There have been no unusual changes
in business circumstances that have affected the carrying value of
the Group's financial assets and liabilities at 31 March
2024.
24. Related party transactions
The Group's related parties were
disclosed in the Group's statutory financial statements for the
year ended 31 March 2023 and there have been no material changes
during the year ended 31 March 2024.
Transactions with associates are
made on normal market terms and in the year ended 31 March 2024
comprised the receipt of services of US$10m (2023: US$7m). At 31
March 2024 US$1m (2023: US$nil) was owed to associates.
The Group transacts with a number
of related undertakings in connection with the operation of its
share incentive plans, pension arrangements, and the provision of
medical cover in the UK.
The assets, liabilities and
expenses of the Experian UK Approved All-Employee Share Plan and
The Experian plc Employee Share Trust are included in these
financial statements.
Details of the Group's
post-employment benefit assets and obligations are set out in note
15. During the year ended 31 March 2024, US$3m (2023: US$3m) was
paid to Experian Medical Plan Limited, in connection with the
provision of healthcare benefits.
There were no other material
transactions or balances with these related undertakings during the
current or prior year.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
25. Contingencies
(a) Latin America tax
As previously indicated, Serasa S.A.
has been advised that the Brazilian tax authorities are challenging
the deduction for tax purposes of goodwill amortisation arising
from its acquisition by Experian in 2007. The Brazilian
administrative courts have ultimately upheld Experian's position in
respect of the tax years from 2007 to 2012 with no further right of
appeal. The Brazilian tax authorities have raised similar
assessments in respect of the 2013 to 2018 tax years, in relation
to the goodwill amortisation related to both the original
acquisition of a majority shareholding in Serasa S.A. in 2007 and
the acquisition of the remaining holding in 2012, and also in
relation to the acquisition of Virid Interatividade Digital Ltda in
2011. Experian has claimed a tax deduction for goodwill
amortisation of US$230m across these years. Brazilian tax
authorities may raise similar claims in respect of other years. The
possibility of this resulting in a liability (which may consist of
underpaid tax, interest and penalties), to the Group is considered
to be remote, based on the advice of external legal counsel,
success in cases to date and other factors in respect of the
claims.
A similar challenge has been
raised in Colombia in respect of the 2014 and 2016 tax years which
is not material to the Group. We are contesting this on the basis
of external legal advice.
(b) UK marketing services regulation
We successfully appealed to the
First Tier Tribunal (FTT) a final enforcement notice from the UK
Information Commissioner's Office (ICO) challenging whether data
for marketing purposes could be processed on the basis of
legitimate interest and was sufficiently transparent under the EU
General Data Protection Regulation (GDPR). On 23 April 2024, the
Upper Tier Tribunal rejected in full the ICO's appeal, affirming in
all respects the FTT decision.
(c) Other litigation and claims
There continues to be an increase
in regulatory activity, including a number of pending and
threatened regulatory actions and other claims involving the Group
across all its major geographies which are in various stages of
investigation or enforcement, and which are being vigorously
defended. These include increased investigation and enforcement
activity from the Consumer Financial Protection Bureau and Federal
Trade Commission in the USA related to the Credit Reference,
Marketing Services and Consumer Services businesses, as well as
potential rulemaking and federal and state level legislation which
could impact our Credit Reference and Marketing Services businesses
in the USA.
We have also seen increased GDPR
investigation and enforcement activity in the European Union (EU),
including a claim from the Dutch Data Protection Authority (the AP)
claiming that our Credit Reference business in the Netherlands
(c.US$7m annual turnover) cannot process credit reference data
based on legitimate interest and is not sufficiently transparent
under GDPR, and asserting an associated fine which could range as
high as 4% of global turnover under GDPR. The AP's position is
contrary to established regulatory positions in our other EU
markets, which recognise that legitimate interest is a proper basis
to process credit reference data in order to maintain a fair and
efficient lending process. Based on external legal opinions,
relevant precedents, and the facts of the underlying matter, we
believe the AP's position is legally wrong, we will contest the
matter and we do not believe it will have a materially adverse
effect on the Group's financial position.
There also continue to be
individual consumer and class action litigation matters in Brazil
and the USA related to our Marketing Services, Consumer Services
and Credit Reference businesses. Some of these class action
litigation matters in the USA allege willful misconduct under the
US Fair Credit Reporting Act that, if proven, carry the potential
for liability which includes statutory damages between US$100 to
US$1,000 per consumer. The directors do not believe that the
outcome of any individual litigation matter action will have a
materially adverse effect on the Group's financial
position.
As is inherent in legal,
regulatory and administrative proceedings, there is a risk of
outcomes that may be unfavourable to the Group. In the case of
unfavourable outcomes, the Group may benefit from applicable
insurance recoveries.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
26. Events occurring after the end of the reporting
period
Details of the second interim
dividend announced since the end of the reporting period are given
in note 12(a).
On 4 April 2024, we agreed to
acquire Credit Data Solutions Pty Ltd (illion), a leading consumer
and commercial credit bureau in Australia and New Zealand, and on
25 April 2024, we agreed to acquire TEx Soluções em Tecnologia
Ltda., an InsurTech company in Brazil that offers innovative
solutions for the insurance market. Further details are provided in
note 21(b)(iii).
27. Company website
A full range of investor
information is available at experianplc.com. Details of the 2024
Annual General Meeting (AGM), to be held in Dublin, Ireland on
Wednesday, 17 July 2024, will be given on the website and in the
notice of meeting. Information on the Company's share price is
available on the website.
28. Risks and uncertainties
Identifying and managing risk is
key to our purpose and the delivery of our strategy and objectives.
All colleagues play a crucial role in managing risks, and doing so
helps us create long-term shareholder value and protect our
business, people, assets, capital and reputation.
The Board is responsible for
maintaining and reviewing the effectiveness of our risk management
activities from a strategic, financial, regulatory and operational
perspective. These activities are designed to identify and manage,
rather than eliminate, the risk of failure to achieve our business
objectives or strategy. Our four-step risk management process is
designed to identify, assess, respond to, report on and monitor the
risks that threaten our ability to do this, within our risk
appetite.
We operate in a complex, dynamic
business environment across multiple jurisdictions, providing a
range of data-driven services to clients and consumers. The
security of our data, and the resilience of our technology, are
fundamental to the successful delivery of our strategy in meeting
the needs of our various markets. We innovate through investing in
the development of our talent, products and services and through
acquisitions and partnerships to maintain and extend our
competitive position. In addition to known principal risks, which
are summarised below, we continue to identify and analyse emerging
ones, and discuss as appropriate in different forums.
(a) Risk area - Data Loss/Misuse
Description
We hold and manage sensitive
business, client and consumer information that increases our
exposure and susceptibility to cyber attacks or other unauthorised
access to data, either directly through our online systems or
indirectly through our partners or third-party
suppliers.
Potential impact
Loss or unauthorised access to
sensitive business, client or consumer data could cause problems
for consumers and clients, result in material loss of business,
substantial legal liability, regulatory enforcement or significant
harm to our reputation. The impact of this risk, if it
materialised, would typically be felt in the short term.
Examples of control mitigation
· We
deploy physical and technological security measures, combined with
monitoring and alerting for suspicious activities.
· We
maintain an information security programme with strong governance
for identifying, protecting against, detecting and responding to
cyber security risks and recovering from cyber security
incidents.
· We
impose contractual security requirements on our partners and other
third parties that store, process, transmit, or have access to our
data, complemented by periodic reviews of third-party
controls.
· We
maintain insurance coverage, where feasible and
appropriate.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
28. Risks and uncertainties (continued)
(b) Risk area - Macroeconomic
Description
We operate globally and our
results could be affected by global, regional or national changes
in fiscal or monetary policies.
A substantial change in credit
markets in the USA, Brazil or the UK could negatively impact our
financial performance and growth potential in those
countries.
A substantial or sustained rise in
US, EU or UK interest rates could impact lending and consumer
spending. It could also increase our future cost of
borrowings.
We present our Group financial
statements in US dollars but transact business in a number of
currencies. Changes in other currencies relative to the US dollar
affect our financial results.
Potential impact
The US, Brazil and UK markets are
significant contributors to our revenue and profit.
A reduction in one or more of
these markets for consumer and business credit services could
reduce our revenue and profit.
We benefit from the strengthening
of currencies relative to the US dollar and are adversely affected
by currencies weakening relative to it.
We have outstanding debt
denominated principally in US dollars, pounds sterling and euros.
As this debt matures, we may need to replace it with borrowings at
higher interest rates.
The impact of this risk, if it
materialised, would typically be felt in the short to long
term.
Examples of control mitigation
· We
have a diverse portfolio by region, product, sector and client. We
provide cyclical and counter-cyclical products and
services.
· We
convert cash balances in foreign currencies into US
dollars.
· We
fix the interest rates on a proportion of our
borrowings.
· We
review contingency plans in our key markets for specific potential
responses to evolving financial conditions.
(c) Risk area - Legislative/regulatory change and
compliance
Description
We hold and manage sensitive
consumer information and we must comply with many complex privacy
and consumer protection laws, regulations and contractual
obligations. In addition, as we enter new business areas such as
payments in our consumer business, we will be exposed to new
regulations and in some cases new regulators.
Heightened regulatory activity,
new laws and regulations, changes to and new or novel
interpretations of existing laws and regulations create a risk that
we fail to comply with new or existing laws and regulations as we
have interpreted and implemented them into our
businesses.
Potential impact
Non-compliance may result in
material litigation, including class actions, as well as regulatory
actions. These could result in significant civil or criminal
liability, fines or penalties, damage to our reputation or
significant changes to parts of our business or business practices
which could result in increased costs or reduced revenue. The
impact of this risk, if it materialised, would typically be felt in
the short to long term.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
28. Risks and uncertainties (continued)
(c) Risk area - Legislative/regulatory change and compliance
(continued)
Examples of control mitigation
· We
seek to establish and maintain relationships with our principal
regulators, where possible. Where necessary and appropriate we
engage external counsel on interpretation.
· We
maintain a compliance management framework that includes defined
policies and procedures for the interpretation and implementation
of laws and regulations, including control objectives,
accountability and assurance practices.
· Our
global Compliance team has region-specific regulatory expertise and
works with our businesses to identify and adopt balanced compliance
strategies.
· We
assess the appropriateness of using data in new and changing
products and services.
· We
operate a horizon scanning process to identify potential changes in
laws and regulation and assess their impact.
· Our
Government Affairs strategic plan and policy-influencing activity
seeks to respond to legislative proposals and influence their
outcome to mitigate impacts on Experian strategy.
· We
vigorously defend all pending and threatened claims, employing
internal and external counsel to manage and conclude such
proceedings effectively.
(d) Risk area - Resiliency
Description
Delivery of our products and
services depends on a number of key IT systems and processes that
expose our clients, consumers and businesses to serious disruption
in the event of systems or operational failures.
Potential impact
Failure to manage service
availability and enterprise resiliency, and its impact on clients
and/or consumers within established risk tolerance levels could
have a materially adverse effect on our business, financial
performance, financial condition and reputation. Availability of
our products and services is impacted by both our software
applications and technology infrastructure. A failure arising from
technology change, cloud account misconfigurations or component
breakdown could result in client and consumer disruption. The
impact of this risk, if it materialised, would typically be felt in
the short term.
Examples of control mitigation
· Our
operations are designed to avoid material and sustained disruption
to our businesses, clients and consumers.
· We
design applications to be resilient and with a balance between
longevity, sustainability and speed.
· Active monitoring of service levels and incident management
is in place globally to maintain focus on the availability of
products to meet client and consumer requirements.
· We
maintain a global integrated business continuity framework that
includes industry-appropriate policies, procedures and controls for
all our systems and related processes, as well as ongoing review,
monitoring and escalation activities.
· We
maintain back-up data centres.
(e) Risk area - Business conduct
Description
At Experian, we place the utmost
importance on operating with honesty, integrity and high ethical
standards. We are committed to maintaining the highest level of
professionalism in the conduct of our business.
Potential impact
Failure to conduct our business
operations in an appropriate manner could adversely affect our
clients, consumers or counterparties. The impact of this risk, if
it materialised, would typically be felt in the short
term.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
28. Risks and uncertainties (continued)
(e) Risk area - Business conduct (continued)
Examples of control mitigation
· We
enforce our Global Code of Conduct, Anti-Corruption Policy, and
Gifts and Hospitality Policy. If we believe employees or suppliers
are not following our conduct standards, we will investigate
thoroughly and take disciplinary/corrective action where
appropriate.
· Our
policies are reviewed and updated on a clearly defined cycle to
reflect our current risk landscape and control
environment.
· Risk
and compliance testing provides insights across our control
environment and flags where remediation action is appropriate.
Additionally, our internal reporting provides oversight of our
fraud prevention and detection activities.
· Experian operates a Confidential Helpline for anyone who
needs to raise a concern about our conduct. This is facilitated by
an external provider and managed by Global Internal
Audit.
(f) Risk area - Talent acquisition and
retention
Description
Our success depends on our ability
to attract, motivate and retain key talent while also building
future leadership.
Potential impact
Not having the right people could
materially affect our ability to innovate our products, service our
clients and grow our business. The impact of this risk, if it
materialised, would typically be felt in the medium
term.
Examples of control mitigation
· In
every region, we have ongoing programmes for recruitment, personal
and career development, and talent identification and
development.
· As
part of our strategy, we conduct periodic employee surveys and
track progress of any resulting action plans.
· We
offer competitive compensation and benefits, and review these
regularly.
· We
monitor attrition rates, with a focus on individuals designated as
high talent or in strategically important roles. Our predictive
models help us proactively mitigate potential attrition
risks.
(g) Risk area - Competition
Description
We operate in dynamic market
spaces such as consumer and business credit information,
decisioning software, fraud, marketing, and consumer services. Our
competitive landscape is still evolving, with traditional players
reinventing themselves, emerging players investing heavily and new
entrants making commitments in new technologies or approaches to
our markets. There is a risk that we will not respond adequately to
such disruptions, or that our products and services will fail to
meet changing client and consumer preferences.
Potential impact
Failure to respond and adapt to
the evolving competitive landscape and differentiate our services
to meet fast-changing consumer, investor and stakeholder
expectations may limit our ability to leverage market opportunities
and result in an inability to deliver on strategic and financial
objectives. Price reductions may reduce our margins and financial
results. Increased competition may reduce our market share, harm
our ability to obtain new clients or retain existing ones, affect
our ability to recruit talent, and influence our investment
decisions. We might also be unable to support changes in the way
our businesses and clients use and purchase information, affecting
our operating results. The impact of this risk, if it materialised,
would typically be felt in the long term.
Notes to the financial statements
(continued)
for the year ended 31 March
2024
28. Risks and uncertainties (continued)
(g) Risk area - Competition (continued)
Examples of control mitigation
· We
continue to research and invest in new data sources, analytics,
technology, capabilities and talent to support our strategic
plan.
· Innovation remains a strategic focus and we continue to
develop new products and data assets that leverage our scale and
expertise and allow us to deploy capabilities in new and existing
markets and geographies. We prioritise and develop our best
innovation ideas globally.
· We
deploy robust processes to identify, evaluate and select our
acquisition, investment and partnership opportunities, so we can
efficiently and effectively introduce new products and solutions to
the market.
· Where appropriate, and available, we make acquisitions,
minority investments and strategic alliances to acquire new
capabilities and enter into new markets.
(h) Risk area - Investment outcomes
Description
We critically evaluate, and may
invest in, equity investments and other growth opportunities,
including internal performance improvement programmes. To the
extent invested, any of these may not produce the desired financial
or operating results.
Potential impact
Failure to produce the desired
financial or operating results, due to ineffective execution of
business acquisitions, investments or partnerships may result in
material loss, substantial legal liability and significant harm to
Experian's reputation. The impact of this risk, if it materialised,
would typically be felt in the long term.
Examples of control mitigation
· Executive management processes are in place to enable
comprehensive business reviews by key stakeholders and committees,
such as our Investment/Valuation Committee and our Global Strategic
Projects Committee.
· Due
diligence and post-investment reviews are conducted on all
acquisitions and investments to ensure alignment with strategy and
mitigation of risk.
· We
prioritise our activities within integration plans to ensure we
target first the most significant gaps to Experian
policy.
· We
employ a robust capital allocation framework.
· We
design our incentive programmes to optimise shareholder value
through delivery of balanced, sustainable returns and a sound risk
profile over the long term.
Statement of directors' responsibilities
The directors confirm that, to the
best of their knowledge, the financial statements are prepared in
accordance with the applicable set of accounting standards, give a
true and fair view of the assets, liabilities, financial position
and profit of the Company and the Group taken as a whole; and the
Strategic report contains a fair review of the development and
performance of the business and the position of the Company and the
Group taken as a whole, together with a description of the
principal risks and uncertainties that they face, which is included
in note 28.
The names and functions of the
directors in office as at 16 May 2023 were listed in the Experian
Annual Report 2023. Louise Pentland was
appointed as chair of the Remuneration Committee
on 1 January 2024, replacing Alison Brittain
who stepped down from the role on that date.
There have been no other subsequent changes to
directors or their functions, and a list of current directors is
maintained on the Company website at experianplc.com.
By order of the Board
Charles Brown
Company Secretary
14 May 2024