Slide 1: Half-yearly results for six months ended 30 September 2019
Half-yearly results for six months ended 30 September 2019 12 November 2019
Slide 2: Strategic and operational review
Strategic and operational review Brian Cassin, Chief Executive Officer
Slide 3: First-half results highlights
First-half results highlights • First-half total revenue +8%, organic revenue +7%; Q1 +6%, Q2 +7% • Business-to-Business +6% • New product innovations scaling Financial and • Strength in Data across all regions strategic progress • Consumer Services +11% • 2m Experian Boost unique connections • 70m
Slide 4: Our strategic focus areas
Our strategic focus areas Remove complexity Enable businesses to Make credit and Empower consumers Help consumers and increase find, understand and lending simpler and to improve their control their data and transparency in connect with faster financial lives verify identity underserved verticals au
Slide 5: Technology investment benefits are materialising
Technology investment benefits are materialising Building blocks Benefits Execution • Re-usable platform-based • Deployment flexibility • Brazil – new positive data architecture platform • Faster innovation • Hybrid cloud design • Colombia bureau re-platform • Increased speed-to-market • Automation
Slide 6: North America: +10% organic revenue growth
North America: +10% organic revenue growth B2B +8% Consumer Services +13% • Broad-based growth includes: • 24m free members • Strength in data, including consumer information and Clarity • Experian Boost unique connections Services synergies of 2m • Successful new product deployment, e.g. Ascend • P
Slide 7: CreditMatch update
CreditMatch update Quarterly CreditMatch approvals Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Google search demand FY15 FY16 FY17 FY18 FY19 FY20 7 © Experian Public
Slide 8: Update on Ascend platform rollout
Update on Ascend platform rollout Ascend Ascend Ascend Ascend Ascend Future modules to come In market: sandbox PX Account Marketing Data Sandbox SX and PXE Review Services (mid market) Ascend is live in US, UK, Brazil and Italy; Total Contract Value US$270m1 launching in five additional countries in
Slide 9: Vertical expansion - automotive
Vertical expansion - automotive • Automotive expansion driven by greater penetration of ecosystem • First automotive client win for US$192m Ascend sandbox US$97m • Auto ID acquisition extends fraud mitigation capabilities for auto lenders FY12 FY19 Revenue 9 © Experian Public
Slide 10: Latin America: +10% organic revenue growth
Latin America: +10% organic revenue growth Brazil Spanish Latin America • Strength in B2B as economy • Good client wins in Colombia recovers • Benefits to accrue from bureau • Ascend secures first clients modernisation • Automotive vertical expansion • Start-up Consumer Services underway business in
Slide 11: Brazil: preparing for positive data
Brazil: preparing for positive data FY19 FY20 Today FY21 FY22 Regulation President Law Brazil Central Bank approval enactment accreditation to (opt-out) operate Migration to Adjustments to Consumers with negative data: 63m infrastructure new platform new law Consumers with positive data: >150m Data
Slide 12: UK and Ireland: flat organic revenue
UK and Ireland: flat organic revenue B2B (1%) Consumer Services +3% • Strength in consumer credit • Free memberships grow to 6.6m bureau as innovation portfolio rolls out • Strong acquisition into CreditMatcher • Market uncertainty affecting timing of client decisions • Significant programme of new
Slide 13: EMEA/Asia Pacific: total revenue growth +5%; organic revenue -3%
EMEA/Asia Pacific: total revenue growth +5%; organic revenue -3% EMEA Asia Pacific • Solid progress as we deploy • Lapping prior Marketplace wins global Experian capabilities, including Ascend and open data • Bureaux performing well – India, platforms Australia and extending footprint to Malaysia •
Slide 14: Financial review
Financial review Lloyd Pitchford, Chief Financial Officer
Slide 15: Financial overview
Financial overview • Good first-half performance and momentum • Robust B2B growth and Brazil recovery • Strong Consumer Services momentum • Raised FY20 organic revenue guidance. EBIT margin guidance unchanged 15 © Experian 15 ©Public Experian Public
Slide 16: Highlights – first half FY20
Highlights – first half FY20 Constant Actual exchange rates exchange rates Revenue Total revenue growth 8% 6% growth Organic revenue growth 7% Benchmark EBIT growth 6% EBIT EBIT Margin 26.9% Earnings Benchmark earnings per share growth 3% 1% Operating cash flow Benchmark operating cash conversion 51
Slide 17: Organic revenue trends
Organic revenue trends Global growth Consistently strong B2B growth 11% 10% 10% 9% 9% 9% 8% 8% 8% 8% 8% 7% 7% 7% 7% 7% 7% 7% 6% 6% 6% 6% 6% 6% 6% 6% 6% 5% 5% 5% 5% 4% 4% 4% 4% 4% 3% 3% 3% 3% 0% 0% 0% 1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 18: Consumer Services trends
Consumer Services trends Consumer Services growth momentum Consumer Services breakdown One-off data breach North America UK and Ireland contracts 14% FY20 H1: $460m +13% FY20 H1: $80m +3% 10% 10% 8% 15% 20% 6% 5% 5% 5% 50% 0% 0% 35% (2%) 80% (4%) (7%) (7%) (7%) (8%) Traditional subscription Traditio
Slide 19: North America
North America Six months ended 30 September US$m Total Organic 2019 2018 growth growth Data 791 726 9% 9% Decisioning 322 301 7% 6% Business-to-Business 1,113 1,027 8% 8% Consumer Services 460 403 14% 13% Total revenue 1,573 1,430 10% 10% Benchmark EBIT – ongoing activities 544 492 11% Benchmark EBI
Slide 20: Latin America
Latin America Six months ended 30 September US$m Total Organic 2019 2018 growth growth Data 300 287 10% 10% Decisioning 52 52 7% 7% Total revenue 352 339 10% 10% Benchmark EBIT – ongoing activities 97 98 6% Benchmark EBIT margin 27.6% 28.9% All results are Benchmark figures and are on an ongoing act
Slide 21: UK and Ireland
UK and Ireland Six months ended 30 September US$m Total Organic 2019 2018 growth growth Data 182 184 4% 4% Decisioning 109 126 (8)% (8)% Business-to-Business 291 310 (1)% (1)% Consumer Services 80 83 3% 3% Total revenue 371 393 0% 0% Benchmark EBIT – ongoing activities 75 101 (20)% Benchmark EBIT ma
Slide 22: EMEA/Asia Pacific
EMEA/Asia Pacific Six months ended 30 September US$m Total Organic 2019 2018 growth growth Data 104 86 26% 7% Decisioning 95 113 (11)% (12)% Total revenue 199 199 5% (3)% Benchmark EBIT – ongoing activities (5) (9) 46% Benchmark EBIT margin (2.5)% (4.5)% All results are Benchmark figures and are on
Slide 23: Benchmark EBIT margin
Benchmark EBIT margin1 +10BPS 0.5% (0.4)% 27.7% (0.8)% 27.5% (0.1)% 0.2% 27.6% Depreciation One-off Business Experian Disposal IFRS 162 performance Boost launch costs 26.9% Reported Restated Reported Reported FY19 H1 FY19 H1 FY20 H1 excluding one- FY20 H1 off Boost investment 1 EBIT margins calculat
Slide 24: Benchmark earnings per share (EPS)
Benchmark earnings per share (EPS) +5% +3% +1% Constant EPS constant EPS actual currency growth currency growth currency growth Interest including IFRS 16 Tax & minority Share charge interest repurchases Foreign FY20 H1 exchange US49.1c US48.7c Benchmark EBIT growth from continuing operations FY19 H
Slide 25: Reconciliation of Benchmark to Statutory PBT
Reconciliation of Benchmark to Statutory PBT Six months ended 30 September Growth Growth US$m 2019 2018 (actual rates) (constant rates) Benchmark profit before tax 604 593 2% 4% Amortisation of acquisition intangibles (59) (56) Acquisition related items (15) (9) Exceptional items 1 - Non-cash financ
Slide 26: Benchmark operating cash flow
Benchmark operating cash flow Six months ended 30 September US$m Operating cash flow $m Operating cash flow % 670 (223) 180 -11% (287) Employee Net capital Amortisation incentives -7% expenditure and 74% depreciation (ex IFRS16) Capital -5% Working expenditure capital and 340 phasing other Working C
Slide 27: Net debt reconciliation
Net debt reconciliation US$m (7) 215 FX and other 4,060 137 294 Interest and tax paid Equity dividends paid 3,503 Net share (340) 499 repurchases 3,262 Benchmark Acquisitions operating cash and minority flow investments Net debt at Net debt at Net debt at 30 September 2018 1 April 2019 30 September
Slide 28: Investment in technology and innovation
Investment in technology and innovation Capex spend US$226m • Investing behind our innovation and US$183m technology transformation program Product development • FY20 spend more evenly weighted between Infrastructure halves • Increased investment focused in the areas Data of global platform scaling,
Slide 29: Acquisitions and investments in first half FY20
Acquisitions and investments in first half FY20 Compuscan Leading South Africa bureau and information services business Look Who’s Charging Categorisation and open banking technology in Australia Castlight Open banking technology in the UK MyHealthDirect Digital health coordination solutions Experia
Slide 30: Modelling considerations for FY20
Modelling considerations for FY20 Organic revenue growth1 Raised to 7 – 8% Acquisitions1 Raised to 1-2% to revenue growth Benchmark EBIT Margin1 Modest margin expansion Net interest Reduced to US$130m Benchmark tax rate c.26% Minority interest c. US$4m WANOS2 c.900m Capital expenditure c.9-10% of re
Slide 31: Summary and outlook
Summary and outlook • Good first-half momentum • Strong B2B performance • Strong Consumer Services momentum • Outlook for FY20; at constant currency • Upgrade to full-year revenue guidance • EBIT growth at or above rate of revenue growth • Strong progress in Benchmark EPS 31 © Experian Public
Slide 32: Summary
Summary Brian Cassin, Chief Executive Officer
Slide 33: Summary
Summary • Investment in innovation; starting to scale • Significant audience generation in Consumer Services converting into new revenue streams • Positive data in Brazil imminent • Expect to sustain good momentum in H2 FY20 33 © Experian Public
Slide 34: Appendix
Appendix ee ; “experian.
Slide 35: Contacts
Appendix Contacts Experian Tel: +44 (0)203 042 4200 Website: www.experianplc.com Email: investors@experian.com Nadia Ridout-Jamieson Evelyne Bull Chief Communications Officer VP Director Investor Relations Email: nadia.rjamieson@experian.com Email: evelyne.bull@experian.com Sarah Schibli Adam Rachli
Slide 36: Event calendar
Appendix Event calendar 17 January 2020 Third quarter trading update, FY20 20 May 2020 Preliminary results announcement, FY20 16 July 2020 First quarter trading update, FY21 22 July 2020 Annual General Meeting 36 © Experian Public
Slide 37: Disclaimer
Appendix Disclaimer • This presentation is being made only to, and is only directed at, persons to whom this presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. • Information in th