Experian Annual Report 2024
Year ended 31 March 2024
1
From ongoing activities.
The results for the year ended 31 March 2023 have been re-presented for the reclassification to exited business activities of certain
B2B businesses.
Statutory
Growth % at
actual FX
rates
Revenue
US$
7,097
m
+7%
(2023: US$6,619m)
Operating profit
US$
1,694
m
+34%
(2023: US$1,265m)
Profit before tax
US$
1,551
m
+32%
(2023: US$1,174m)
Basic EPS
USc
131.3
+56%
(2023: USc84.2)
Benchmark
Growth % at
actual FX
rates
Growth % at
constant FX
rates
Revenue – ongoing activities
US$
7,056
m
+8%
+7%
(2023: US$6,548m)
Benchmark EBIT
1
US$
1,944
m
+8%
+7%
(2023: US$1,798m)
Benchmark profit before tax
US$
1,789
m
+7%
+6%
(2023: US$1,670m)
Benchmark EPS
USc
145.5
+8%
+7%
(2023: USc135.1)
Strategic report
03
We power opportunities
10
Experian at a glance
12
Chair’s statement
14
Chief Executive’s review
22
Our business model
26
Our strategy
46
Our investment case
48
Stakeholder engagement
52
Key performance indicators
Sustainable business
56
Environmental, social and governance
59
Improving financial health
61
Treating data with respect
65
Inspiring and supporting our people
68
Working with integrity
70
Protecting the environment
Compliance information
80
Non-financial and sustainability
information statement
82
Financial review
92
Risk management and principal risks
100 Viability and going concern
Roundings
Certain data has been rounded in this report. As a result,
the totals of data presented may vary slightly from the
actual arithmetic totals of the data.
Exchange rates
Principal exchange rates used are given in note 11 to the
Group financial statements. The average pound sterling
to US dollar rate is 1.26 (2023: 1.20).
To download this Annual Report and
our other corporate literature visit
experianplc.com
Contents
Governance
103 Chair’s introduction
106 Board of directors
109 Corporate governance report
122 Nomination and Corporate Governance
Committee report
128 Audit Committee report
136 Report on directors’ remuneration
160 Directors’ report
Financial statements
163 Financial statements contents
164 Independent auditor’s report
Group financial statements
176 Group income statement
177 Group statement of comprehensive
income
178 Group balance sheet
179 Group statement of changes in equity
180 Group cash flow statement
181 Notes to the Group financial statements
Company financial statements
240 Company financial statements
243 Notes to the Company financial
statements
256
Shareholder and corporate information
258
Glossary
Reconciliation of statutory to Benchmark measures, page 84
Financial highlights
We have created
opportunities that
are uniquely available
to Experian.
We take great pride in our accomplishments in FY24. We have
performed well financially, and we have made excellent strategic
progress, despite an unfavourable market backdrop in which higher
interest rates cooled economic and credit expansion. Once again,
it demonstrates our resilience.
What we did in prior years to build a more advantaged Experian,
established on strong foundations of our people, technology and
integration, has positioned us to address new growth markets.
We have created opportunities that are uniquely available to Experian.
There are many highlights, as this report illustrates: seizing structural
growth opportunities in Latin America, executing strategic growth
initiatives in North America, enhancing our market position in the UK
and Ireland, and improving our performance in EMEA and Asia Pacific.
As we look ahead, the economic outlook in our principal economies
has improved, although full recovery may yet take time to materialise.
We are confident in our strategy and in our ability to continue to unlock
new value. We will continue on our path to be a unique growth company
that constantly innovates to help consumers and businesses.
We have made much strategic progress and have high ambitions.
We look forward to creating even greater value for all our stakeholders.
Brian Cassin
Chief Executive Officer
3
Experian plc
Annual Report 2024
Strategic report
Experian today is more than 40%
bigger than it was just five years
ago, and well on its way to becoming
much bigger still.
Experian plc
Strategic report
4
Over that period, we had headwinds
from the COVID-19 pandemic and quite
a significant contraction in what people
traditionally think of as our biggest
revenue driver, which is credit
reporting. It tells you just how much
we have moved our business on.
This evolution has happened over
a long period of time, and it's moved us
into a much more technology-focused
data analytics and software company.
Today we are a data and technology
business which uses innovative
products to modernise industries
and provide real-time solutions to
help consumers and businesses.
We drive change
through financial
inclusion
5
Experian plc
Annual Report 2024
Strategic report
At the same time, we have become
a much more important company
from a consumer perspective.
Our relationship with consumers has
gone from being in the background to
being at the front and centre of our
brand, and of who we are, using our
capabilities to really make a difference
to over 180 million people globally.
How we help
consumers improve
their financial health
Experian plc
Strategic report
6
We think we are going to develop
even more in this direction. We are
going to be a much larger business,
doing really interesting things across
a much broader spectrum than we
are even today.
This is really exciting.
Transforming
financial services
with AI and Automation
7
Experian plc
Annual Report 2024
Strategic report
Our plans see us as being one of the
only companies in the world which
can redefine how lending is done,
how businesses detect and prevent
fraud, how marketers access
audiences digitally or even how you
can simplify US healthcare payments.
We want to be the indispensable
partner for how people manage
their finances and the financial app
they turn to first.
Transforming
healthcare with data
and technology
Experian plc
Strategic report
8
These are just some examples of
how we are powering opportunities
across industries, across the world.
Very few companies have this
opportunity. Experian has it and
it’s an exciting thing to be part
of and to be driving forward.
9
Experian plc
Annual Report 2024
Strategic report
A. Financial services
39%
B. Direct-to-consumer
16%
C. Health
8%
D. Retail
6%
E. Software and Professional services
6%
F. Automotive
4%
G. Insurance
4%
H. Media and Technology
4%
I. Government and Public sector
3%
J. Telecommunications and Utilities
3%
K. Other
7%
Experian at a glance
Leading with purpose
What we do
We are a data and analytics powerhouse. In life’s big decisions – from buying a home or a car, to sending
a child to college, to growing a business – we are there to make a difference. We help individuals take
control of their financial lives and follow their dreams. Businesses rely on our valuable data and powerful
analytics to make smarter decisions and to mitigate risk. We are changing lending, helping business detect
more fraud, simplifying healthcare, making it easier to get a car and much more. We power opportunities
in a way that is unique to Experian.
Who we serve
Our customer base is diverse. Customers range
in size from small to medium to large, and to
multinational organisations. Organisations
and businesses embed our data and decision
intelligence platforms in their own systems.
It helps them grow their businesses, mitigate
risk and engage with their customers. Millions
of individuals also rely on us to save time and
money when accessing credit and insurance
options.
Where we operate
We provide services across four geographic
operating segments. This regional structure
means we can better understand the specific
needs and constraints of each local market and
we are able to service both domestic and
international customers effectively.
Our global reach means we can offer our
customers the benefit of shared product
development and market knowledge.
Our business activities
Business-to-Business
We help businesses make faster, smarter
decisions – transforming data into information,
and information into insights.
Consumer Services
We help people to understand and take control
of their credit so they can improve their
financial lives.
B2B: Data
52%
Consumer Services
27%
B2B: Decisioning
21%
North America
66%
Latin America
16%
UK and Ireland
12%
EMEA and Asia Pacific
6%
Argentina
Australia
Austria
Brazil
Bulgaria
Canada
Chile
China
Colombia
Costa Rica
Denmark
Germany
India
Ireland
Italy
Lesotho
Malaysia
Mexico
Monaco
Netherlands
New Zealand
Norway
Panama
Peru
Poland
Singapore
South Africa
Spain
Switzerland
Türkiye
United Kingdom
United States
Global revenue
1
by business activity
FY24
Global revenue
1
by region
FY24
Global revenue
1
by client
FY24
Countries where we operate
A
B
C
D
E
F
G
H
I
J
K
1 Revenue from ongoing activities
Experian plc
Strategic report
10
How we make a difference
We embrace
limitless possibilities
• We aim to make the world a better place
through a forward-thinking approach to
harnessing the power of technology and
innovation, to serve billions of people
worldwide
• We always push the boundaries of what’s
possible, to create a better tomorrow
See Our strategy, pages 26 to 45
We emphasise
security and ethics
• We put strong emphasis on transparent
data practices
• We use data in a responsible manner
• We ensure compliance with privacy and
consumer protection laws and industry
self-regulatory standards
• We have established governance systems
that guard against the misuse of data
See Sustainable business, pages 56 to 79
We innovate for
social impact
• We create social innovation products and
establish initiatives to have a positive
impact on communities and individuals
• We empower our people and use technology
to bring societal change, ensure fairness
and help improve financial health
See Sustainable business, pages 56 to 79
We anticipate
customers’ needs
• We innovate and respond to customer needs
through a culture that puts the customer first
• We value experimentation and evolve in
a fast-paced technological landscape
See Our strategy, pages 26 to 45
We continually
expand our business
• From a credit data company to a much
broader data, analytics and platform provider
• From a business that focused only on
organisations, to one with a relationship with
millions of people
• From a company that operated in the
financial services sector mainly, to one
operating in multiple industries – healthcare,
automotive, agrifinance and many others
See Our business model, pages 22 to 25
We are data and
analytics experts
• We are leaders in data science
• We have extensive expertise in data,
analytics, computer engineering, machine
learning, and AI natural language processing
• We have a deep understanding of technology
• We generate powerful insights, make
valuable predictions, and provide accurate,
fair and quick decisions for individuals and
businesses
See Our business model, pages 22 to 25
11
Experian plc
Annual Report 2024
Strategic report
Chair’s statement
Empowering transformation: driving
opportunities for all stakeholders
We are proud of what we have achieved for
our people, our clients and the hundreds of
million consumers we support around the
world. We are in a unique position and are
excited by the huge possibilities we have
to help improve their financial lives.
Mike Rogers
Chair
Experian delivered another strong financial
year driven by good strategic execution. Against
a backdrop of macroeconomic headwinds, our
performance underscores the resilience of
our business, and in particular our ability
to successfully identify and address large,
attractive structural growth opportunities.
We are proud of what we have achieved for our
people, our clients and the hundreds of million
consumers we support around the world. We
are relentlessly focused on delivering for them.
Growth strategy
Experian today represents a broad platform
which uses data, analytics, software, new
technologies and innovations to provide ground-
breaking solutions for business clients and
consumers: it is gratifying to see just how far
Experian has evolved from its heritage in the
credit data industry.
We help thousands of organisations to optimise
their lending process, verify identity and combat
fraud. We make healthcare costs much simpler
to manage, and we play a deep and impactful
role in the automotive marketplace, helping
manufacturers, retailers, dealers and
consumers alike. We also deliver digital
marketing solutions in versatile ways that
enable businesses to connect with their
customers.
We are focused on successfully executing
a series of scale plays across a number of
markets. For example, I am very excited about
the prospects for our Ascend Platform, which
merges our analytics, software and fraud
prevention solutions with our data, and our
clients’ data. We have created the missing link
that seamlessly and securely integrates
analytics into a production environment for
credit risk, identity verification and fraud
prevention. Our clients no longer have to build
and operate separate capabilities in silos –
they can do it all from our highly secure and
automated unified platform.
At a regional level, Brazil continues to be one
of our most exciting growth markets. In a
country where consumers and businesses
face numerous fraud attacks, Serasa Experian
has successfully delivered solutions that are
unmatched by any competitor in the market.
We have steadily built our capabilities through
both organic investment and acquisitions.
The team also continues to diversify our
business portfolio, including expansion of
the Agrifinance vertical and services for
our consumers.
True to our purpose, we are helping millions
of consumers worldwide realise their financial
goals and dreams, focusing on how we can help
empower their financial health. Having built
direct relationships with more than 180 million
consumers worldwide, we continue to invest
in new solutions to help people on their
financial journey.
This year, building on the success of Experian
Boost in the USA, we introduced the Experian
Smart Money Digital Checking Account, a
credit-building product that directly embeds
Experian Boost. This is a great example of
Experian’s unique strategy which links our
business-to-business and consumer services
to bring unique solutions to market. It also links
directly to our purpose because those in need
of credit-builder products are much more likely
to be among the ‘credit invisibles’, and we help
them to enter into mainstream finance.
But Smart Money and Experian Boost are
just two of the ways consumers are aided
in their financial journey. I am proud to share
that in North America we have created an
industry-leading suite of financial tools all in
one place – a marketplace ecosystem that
helps connect millions of consumers across
Experian’s membership with access to many
financial solutions, including insurance services,
buying a car, debt management or simply
finding the best credit card for their personal
needs. We are well on our way to establishing
similar ecosystems for consumers in Brazil
and in the UK.
On the heels of our Smart Money launch,
we are delighted it was recognised among
Fast Company’s 2023 World Changing Ideas,
as having the potential to effect true system
change.
Experian plc
Strategic report
12
Furthering Artificial Intelligence (AI)
For many years we have understood the
potential of AI, and we have invested in
comprehensive strategies spanning technology,
risk management and innovation. This
investment underscores our dedication to
leveraging AI as an essential instrument for
innovation and productivity.
Several years ago, we adopted a systematic
approach to AI integration. This approach
extends from initial proof of concept to the
seamless production of applications at scale.
By prioritising this integration process, we
ensure a balanced focus on managing risks,
data privacy and security, upholding the trust
that consumers and businesses place in
our brand.
Now, Experian is bringing a much-needed,
authoritative voice to the rapidly evolving and
world-changing technology that is Generative AI
(GenAI). In the past 12 to 18 months, we have
made significant strides in GenAI integration,
notably boosting our coding and engineering
productivity among our extensive team of more
than 1,500 engineers.
Central to our approach at Experian is our
commitment to responsible stewardship of
data and leadership in AI-based product
development. This ethos, coupled with a culture
of continuous learning and adaptation, ensures
we remain at the forefront of the ever-evolving
GenAI landscape.
Sustainable strategy
We work hard to make sure our business has a
positive impact on the world. Our responsibilities
– to people, society and the environment – are
foundational to everything we do.
One quarter of the global adult population lacks
access to basic financial services, so it is crucial
for companies like Experian to ensure that we
make a difference in the communities we serve.
Our United for Financial Health programme,
which focuses on improving financial education
among underserved communities, has connected
with 146 million people since its launch in 2020,
and 33 million people this year alone.
Globally, over 180 million people use our free
credit reports and scores to access products
and services that can help them understand
and manage their credit profiles.
This year, a further eight million people have
been reached through Experian’s social
innovation products, designed to provide
societal benefits, and improve financial health.
We are committed to continuing to support new
social innovations every year, with four new
significant investments made through our
Social Innovation programme this year.
Improving financial health is fundamental to
our mission at Experian. This year, we have
refined our approach in this area to focus on
and amplify the positive social impact our
products can have through our ambition to
help people thrive on their financial journey.
As a result, we have developed a new Positive
Social Impact Framework that will help us
measure progress towards our ambition.
It defines positive impact as a favourable and
measurable change that occurs in someone’s
financial journey as a result of interacting with
an Experian product. The people we help to
thrive include consumers and small businesses.
We are excited about the difference we make,
and about quantifying that impact.
In addition, energy use, especially the power
needed to run data centres and offices, forms
part of our environmental impacts. We have
increased the use of renewable energy from
62% to 75% in the last year, reducing our
carbon footprint even further.
We are ahead of schedule in our 2030 direct
emissions carbon reduction target, having
reduced our emissions by 75% against the
2019 baseline year.
We are dedicated to creating a sustainable
future and are continuing to develop our Net
Zero Transition Plan to align with the UK's
Transition Plan Task Force framework.
Our people
Our growth this year would not be possible
without the ongoing hard work, expertise
and collaboration of our 22,500 colleagues.
We foster a high-performing, purpose-driven
and inclusive workplace culture. We were
delighted to be certified as a Great Place to
Work in 24 countries, with 89% of our
employees saying they are proud to tell people
they work at Experian and over 92% of our
people agreeing that they are treated fairly
regardless of their age, sexual orientation,
race and gender.
We are committed to having a diverse
workforce, and have further increased the
number of women in senior leadership
positions. We also have accelerated our
efforts to increase ethnic and racial minority
representation across our organisation.
Through our Employee Resource Groups, we
continue to encourage our employees to bring
their whole selves to work. For the second year
in a row, we earned a score of 100 out of 100
in the Disability Equality Index, the world’s
most comprehensive benchmarking tool that
measures disability workplace inclusion.
Governance and the Board
As a company committed to strong corporate
governance, we hold ourselves to the highest
standards set out in the UK Corporate
Governance Code 2018. With a focus on
oversight of effective strategy, culture,
operations and risk controls, our Board worked
diligently to provide the necessary support and
guidance for the senior management team and
the business.
I am proud to say that our Board meets the
recommended guidelines for both gender and
ethnic diversity, as outlined by the FTSE Women
Leaders Review and the Parker Review.
There were no Board composition changes
during the year, although Louise Pentland
became Chair of the Remuneration Committee
on 1 January 2024, in place of Alison Brittain,
our Senior Independent Director, who remains
in that position.
Looking ahead
We have gained significant momentum,
successfully scaling our largest, most strategic
initiatives and laying the foundations for our
next phase of multi-year growth. We are in a
unique position, with the opportunity to address
large, high-growth markets and to deliver on
our ambitious financial goals.
We are excited by the huge possibilities
Experian has to help consumers and business
across the globe to improve financial lives.
13
Experian plc
Annual Report 2024
Strategic report
Chief Executive’s review
Another year of strong growth: new medium-term
outlook
1
Total revenue growth at constant exchange rates.
2
Organic revenue growth is at constant currency.
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
FY24 growth was at the top end of our
expectations. We are confident in our
financial prospects in FY25 and beyond.
We will drive revenue growth through
delivery of our strategic commitments.
Brian Cassin
Chief Executive Officer
Highlights 2024
Total revenue
US$
7.1
bn
+7%
1
Benchmark operating
cash flow
US$
1.9
bn
Benchmark EBIT
margin
27.6
%
+10 bps
Organic revenue
growth
2
6
%
Experian plc
Strategic report
14
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.
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 and 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 cash flow
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.
Full-year 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.
180
m+
*
consumers engaged
in navigating their
financial lives
24
countries in which
we are certified as a
Great Place to Work
22,500
talented and dedicated
employees
*
Free memberships only.
15
Experian plc
Annual Report 2024
Strategic report
Chief Executive’s review
continued
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 whilst
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.
Learn more in Our strategy
See pages 26 to 45
Learn more in Our strategy
See pages 26 to 45
FY25 guidance and medium-term financial outlook
Highlights 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 benefitted 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.
*
As of 1 May 2024.
Experian plc
Strategic report
16
Highlights 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.
• 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 and 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.
Learn more in Our strategy
See pages 26 to 45
17
Experian plc
Annual Report 2024
Strategic report
Chief Executive’s review
continued
• 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.
To strengthen our foundations...
Full-year 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$150m share repurchase programme in
FY25, which will again offset deliveries under
employee share plans.
Learn more in Our strategy
See pages 26 to 45
Experian plc
Strategic report
18
Revenue and Benchmark EBIT by region, Benchmark EBIT margin
2024
US$m
2023¹
US$m
Total growth
%
Organic growth
%
Revenue
North America
4,659
4,432
5
5
Latin America
1,107
914
16
13
UK and Ireland
840
781
3
2
EMEA and Asia Pacific
450
421
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
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
Total operating segments
2,088
1,941
6
Central Activities – central corporate costs
(144)
(143)
n/a
Benchmark EBIT from ongoing activities
1,944
1,798
7
Exited business activities
(16)
(4)
n/a
Total Benchmark EBIT
1,928
1,794
7
Benchmark EBIT margin – ongoing activities
27.6%
27.5%
1
Results for FY23 are re-presented for the reclassification to exited business activities of certain B2B businesses. Total growth and organic
growth percentages are at constant exchange rates.
See the Financial review for analysis of revenue, See note 10(a)(i) & (ii) to the Group financial statements for the Reconciliation of revenue
from ongoing activities and Benchmark EBIT by business segment and note 7 to the Group financial statements for the definition of
non-GAAP measures including Benchmark EBIT margin.
• 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.
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.
19
Experian plc
Annual Report 2024
Strategic report
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 benefitted
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.
Organic revenue growth %
2020
2021
2022
2023
2024
11
7
13
7
5
Chief Executive’s review
continued
Year-on-year % change in organic¹ revenue –
for the twelve months ended 31 March 2024
Benchmark
EBIT
margin²
% of Group
revenue
3
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.
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.
Regional highlights for the year ended
31 March 2024
*
As of 1 May 2024.
Experian plc
Strategic report
20
Latin America
UK and Ireland
EMEA and Asia Pacific
Organic revenue growth %
Organic revenue growth %
Organic revenue growth %
2020
2021
2022
2023
2024
(2)
(6)
11
5
2
2020
2021
2022
2023
2024
13
9
17
16
13
2020
2021
2022
2023
2024
(3)
(14)
3
3
7
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.
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.
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.
Outlook
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.
21
Experian plc
Annual Report 2024
Strategic report
Our business model
Making a meaningful difference,
building value
Businesses
Scores
Traditional credit bureau
Data
Other sources
e.g. public records
Experian data
Data on businesses
Data on consumers
Primarily banks
Give me data
to help make
a lending
decision
We embarked on a strategy to layer-in advanced analytical
and software capabilities and to become an indispensable
financial partner for consumers. This has propelled our
transformation into a technology-focused global data
analytics and software company.
What we were
Experian’s roots stretch back to the days when it was
a pioneering credit bureau. As technology evolved,
we recognised the huge potential of data to power
businesses and transform access to financial services
for people and businesses.
Experian plc
Strategic report
22
over 180
m
1
consumers
Business-to-Business
Consumer Services
Lenders
FinTechs
Health providers
Retail / eCommerce
Automotive
Marketing and Advertising
Public sector
Media / Technology
Insurance
What we are now
The value we create for businesses and consumers continues to expand
The Experian Platform
Data
Actions
Insights
Software
Analytics
Other sources
e.g. public records
Experian data
Consumer-
permissioned data
Consumer-
generated data
Data on
businesses
Data on
consumers
Design and
build my loan
portfolio
Minimise my
exposure to
fraud
Build
customer
loyalty
Acquire
customers
Manage the
healthcare
payment
lifecycle
Access the
financial
system
Minimise my
exposure to
fraud
Help me
choose
financial
products
Enable me to
reach my
financial
goals
Build my
credit score
1
Free memberships only.
23
Experian plc
Annual Report 2024
Strategic report
How we organise our business and how it generates revenue
Business-to-Business
Data
52
%
of Group revenue – from ongoing activities
What we do
We provide businesses with information to establish and develop
relationships with their customers, grow their businesses over time and
to manage risks so they can make better business decisions. We build and
manage large and comprehensive databases. We collect, sort, aggregate
and transform data from tens of thousands of sources, and through
software and analytics use it to support real-time decision-making.
Key clients
Banks, automotive dealers, retailers and telecommunications companies
Key datasets
Consumer credit history records, business credit history records, US
vehicle database, consumer marketing databases, online activity
database, national fraud database
Revenue model
Primarily transactional with some contribution from licence fees
Market position
One of the leading providers of data in key segments
Competitors include
Equifax, TransUnion, Dun & Bradstreet, LiveRamp, Acxiom, CRIF, Quod,
LexisNexis, S&P Global and other specialised competitors in most
countries in which we operate
Decisioning
21
%
of Group revenue – from ongoing activities
What we do
We draw on the depth and breadth of our databases and third-party
information, including clients’ own data, to create and develop analytics,
predictive tools, sophisticated software and platforms, increasingly
through integrated platforms embedded in client workflows. These help
businesses and organisations manage and automate large volumes of
decisions and processes more effectively using the most advanced
technology. Our services help our clients improve the consistency and
quality of their business decisions in areas including credit risk, fraud
prevention, identity management, customer service and engagement,
account processing, and account management. Our industry specialists
and data scientists work with clients to help them find the best solutions
for their needs, providing advanced data analysis, research and
development.
Key clients
Financial services, retail, US healthcare, telecommunications, utilities,
insurance and FinTech companies
Key propositions
Ascend Platform (PowerCurve decisioning, CrossCore fraud prevention)
Revenue model
•
Software and system sales:
consultancy and implementation fees;
recurring licence fees; and transactional charges
•
Analytics:
a mix of consultancy and professional fees, and
transactional charges
Market position
One of the leading providers of business solutions in key segments
Competitors include
FICO, Equifax, TransUnion, IBM, SAS, Change Healthcare, Provenir and
other specialised competitors in most countries in which we operate
North America
2,231
Latin America
669
UK and Ireland
423
EMEA and Asia Pacific
312
Total
3,635
North America
889
Latin America
213
UK and Ireland
244
EMEA and Asia Pacific
138
Total
1,484
Data – Revenue
1
by region (US$m)
Decisioning – Revenue
1
by region (US$m)
Our Business model
continued
1
Revenue from ongoing activities.
Experian plc
Strategic report
24
Consumer Services
27
%
of Group revenue – from ongoing activities
What we do
We help millions of people take control of their finances. We provide credit
education, identity monitoring and fraud prevention services directly to
consumers in the USA, Brazil, the UK, South Africa, Peru, Colombia and
India. This includes free access to their Experian credit report and score,
and useful online educational tools. In the USA and the UK, we enable
people to contribute their own data to their file by adding, for example,
rental, utility, mobile and streaming service payments, to help them
improve their credit score. We help people save money though
marketplaces where they can access credit, personal loans, mortgages,
automotive insurance and other deals that are highly personalised to
them. In Brazil, we help consumers to meet their payment obligations and
manage their spending.
Key customers
Individuals, lenders and insurance providers
Key datasets
Free platform with over 180 million members
Revenue model
• Monthly subscription and one-off transaction fees
• Referral fees for credit products
• Digital agency fees for insurance products
• White-label partnerships
Market position
One of the leading providers of consumer services in key segments in the
USA, the UK and Brazil
Competitors include
Intuit, NerdWallet, LendingTree, ClearScore, Equifax, TransUnion,
MoneySuperMarket, Gen Digital and other specialised competitors in
countries in which we operate
North America
1,539
Latin America
225
UK and Ireland
173
Total
1,937
Consumer Services – Revenue
1
by region (US$m)
25
Experian plc
Annual Report 2024
Strategic report
Our strategy
Creating a better tomorrow – for society,
consumers, our clients, and Experian
We see great opportunities ahead for Experian and are confident in our long-term prospects. Deeply
rooted in solving important problems for clients and consumers (defined by our Strategic focus areas),
we continue to make lots of progress executing on our strategy. We have gained momentum as we
successfully scale our largest, most strategic initiatives and have laid the foundations for our next phase
of multi-year growth, placing us in a unique position with the opportunity to address large, new high-
growth markets and to deliver on our ambitious financial goals.
Strategic focus areas
Our innovation is inherently driven by customer trends. This helps us to identify
high-value customer problems and invest to develop product solutions.
Make credit and lending simpler, faster and
safer for consumers and businesses, help
lenders offer frictionless credit products, make
insightful lending and customer decisions and
optimally manage portfolios.
Help organisations in specialised verticals
harness data, analytics and software to make
smarter decisions around fraud, identity,
prospecting and other risk-based processes.
Empower consumers to improve their financial
lives, gain access to credit, safeguard their
identity, save money, negotiate debt and
enhance their financial knowledge.
Enable businesses to find, understand and
connect with audiences, to market products
and services to their customers, and to remain
compliant with regulations.
Help businesses verify identity and combat
fraud, streamline the authentication of
legitimate parties, and achieve regulatory
compliance.
Experian plc
Strategic report
26
Building a stronger and more advantaged Experian
Our fundamental pillars
Talent
Technology
Clients
One Experian
Risk Management
Superior
data
World-class
products
Industry-leading
innovation
Relationships with
millions of customers
Operational
excellence at scale
High-performing, inclusive
purpose-driven culture
Business-to-Business
Leader in trusted insights
for businesses across their
customer lifecycle
Our key priorities
• Broadest, deepest, most accurate
data
• Leverage advanced technologies
and AI
• Seamlessly integrate products
across Experian
• Scale products globally
• Expand in new and underpenetrated
markets
Our key priorities
• Grow and deepen consumer
relationships
• Enhance premium subscription
products
• Build a fully-scaled Marketplace
business
• Engage with consumers daily
• Help consumers use data to
improve outcomes
• Selectively expand in more
bureau markets
Our foundations
Consumer Services
Become the pre-eminent
consumer finance platform
Our strategic framework
Maximising synergies
A key competitive advantage for Experian is the interplay between the
business-to-business and direct-to-consumer elements of our business.
Our mission is to help consumers use their data to control, manage and
improve their financial lives, while our position as the trusted custodian
of consumers' data helps us to develop even better propositions for our
B2B clients.
We are very proud to have pioneered and extended this concept through Experian Boost, Experian
Lift, Experian Go, and Experian Smart Money (see case study on pages 38 to 39), and subsequently
through platforms such as Experian Activate which help our clients reach our consumer members
more efficiently with more relevant messages and offers.
As well as building an ecosystem for the mutual benefit of our clients and consumers, we are also
deepening the links between our various B2B businesses, combining their capabilities to innovate
and solve important business problems in new and unique ways. This is an important aspect of
our strategy and is where we will increasingly place greater focus. Doing so will enable Experian
to access and expand into previously underpenetrated and underserved markets.
Maximise
synergies
27
Experian plc
Annual Report 2024
Strategic report
Business-to-Business
Our ambition for our B2B business is to be the market leader for trusted
insights and decision intelligence across our clients' customer lifecycle.
We have successfully shifted our business to address new needs for data,
fraud prevention, analytics and decisioning and we plan to extend further
across our clients' customer management lifecycle, as well as deeper into
new industries.
Our heritage lies in helping our clients to acquire new customers to explore and learn, to open
and set up accounts and to help their customers to apply for services.
We will go deeper into this prospecting and originations segment. We also see more options
to extend into adjacent spaces to help clients manage customer accounts, resolve issues their
customers may have, to foster loyalty and engagement or to close accounts.
Our Business-to-Business plans
Be recognised for the
broadest, deepest,
most accurate data
across all of our
industries and geographies.
Seamlessly integrate products across
Experian
to build platforms that are the first,
best and only solutions our clients need.
Scale products globally
, increasing our
ability to serve a wider set of clients more
effectively and efficiently.
Expand in new and underpenetrated
markets
where we are most relevant.
Leverage advanced technologies,
Generative AI and AI more broadly
to
improve our product innovation and
re-engineer our processes and costs to
better position our businesses for the
future.
Our strategic progress this year
Brazil
We have 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 vertical and
Verifications.
EMEA and Asia Pacific
We have repositioned the business to focus on our
most scalable markets. Regional margin expanded by
50 basis points year-on-year.
After the year end, we agreed to acquire illion, one of
the leading consumer and commercial credit bureaux
in A/NZ.
World-class integrated platforms
Global Ascend revenue of US$184m increased 19% vs
the prior year.
48% of our software clients now purchasing two or
more products.
North America
In Automotive, we have grown marketing revenue
by double digits.
In Health, we now sell an average of over nine
products per client.
In Targeting, 65% of revenue now sourced from digital
channels.
In Verification Solutions and Employer Services, we
added 94 new clients to our Verification Solutions
business and 337 new clients in Employer Services.
We now have 54 million* active records from a
combination of our payroll partners and Employer
Services clients.
UK and Ireland
We got our largest ever client win in the UK&I.
In the Verifications market, we have contracted 82% of
the UK PAYE.
Our strategy
continued
*
As at 1 May 2024.
Experian plc
Strategic report
28
SPOTLIGHT
SPOTLIGHT
Ascend Platform:
bringing together data, analytics,
software and fraud prevention
When clients issue credit, they need to undertake a series of complex tasks
to manage the risks and assess the future profitability of a loan agreement.
They build models which include several features and attributes to drive
their decision-making and they will use our data to inform this process.
They will also need to monitor the performance of loans and ensure
adherence to internal governance and regulatory requirements.
Increasingly our clients want this to be conducted as a seamless, integrated
experience, so that they do not have to contend with many disparate
solutions provided by many different vendors and the associated cost,
risk and hassle.
We have developed the Ascend Platform to overcome these challenges.
We have created the missing link that seamlessly integrates analytics –
where our clients build their models – into a production environment –
where clients deploy their models, whether this is for credit risk, decisioning
or fraud prevention models. With this new integrated platform, we intend to
grow the number of clients who consume data from Experian and who
contract for multiple products. Our ambition is to grow our relationships
with existing clients and, because our Ascend Platform is unique, we expect
to secure new clients as well.
Learn more on pages 36 to 37
Our verticals:
establishing broader and deeper
client relationships with greater wallet share
across higher-growth verticals and segments
We have made considerable progress across our established verticals of Health,
where we use analytics and software to simplify healthcare payments, and
Automotive, where we help to power all the decisions that take place around
buying, financing and owning a vehicle.
Many new opportunities for Experian are opening up in these segments as these
industries digitise. For example, in US Health we use AI to reduce insurance
claims denials, while in Automotive we make it easier for car dealers to find
and engage customers. Often these opportunities sit at the intersections of our
businesses, for example between automotive data and digital marketing.
We have also invested in new capabilities to extend our position in the sphere of
Digital Marketing, and our Agrifinance vertical in Brazil is showing great promise.
Learn more on pages 34 to 35
29
Experian plc
Annual Report 2024
Strategic report
Consumer Services
Our ambition for Consumer Services is to be recognised as the No.1 platform
globally for people to improve their financial lives and save money. We aim to
create the world’s largest, most inclusive financial services platform which
brings financial power to all our members.
We have built on our roots in credit and are expanding our role to help remove the complexity people
face every day in their financial lives. We have brought to market smarter solutions, through
products like Experian Smart Money and platforms such as Insurance Marketplace. These initiatives
help us to grow our membership base and establish deeper connections with consumers to drive
more frequent engagement and mutual benefit. Moving forward, we will bring new ways for people
to manage their finances by relying on Experian as their financial co-pilot, and by doing so we expect
to unlock substantial new markets for Experian.
Our Consumer Services plans
Our strategic progress this year
Our strategy
continued
Grow and deepen our consumer
relationships.
Enhance our premium subscription
products.
Develop significant scale in our Credit
and Insurance Marketplaces.
Increase the frequency and depth of
our relationships with members
by
extending in adjacent areas such as
insurance, debt resolution, and financial
accounts.
Grow our position in consumer-
permissioned data.
Selectively introduce Consumer
Services in our other bureau markets,
accelerate into new spaces closely
allied to our B2B operations, and utilise
Generative AI and AI more broadly in
a controlled and selective way.
Memberships
Globally, free memberships grew to over 180m.
80% of Experian members have a pre-approved offer
in our North America Marketplace.
Insurance
We launched Boost for Insurance, which has helped
drive further engagement in our ecosystem.
We scaled new insurance carriers to our Marketplace
and have delivered an accelerated trend in policy
growth.
Serasa Experian
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.
Experian Smart Money
We launched Experian Smart Money in North America.
640,000 accounts were opened and consumers are
showing increased engagement throughout our
platform.
Experian plc
Strategic report
30
SPOTLIGHT
Consumer Services:
unlocking our potential –
our consumer services journey in FY24
Our free memberships this year have grown to over 180m across North
America, Brazil, Spanish Latin America and the UK and Ireland. In the USA,
we have secured new insurance carriers to our new Insurance Marketplace
which has started to scale. Experian Activate captures synergies between our
B2B and Consumer Services businesses by providing analytics and insights
to lending clients who provide credit offers in our Marketplace.
We have deepened consumer engagement through credit-builder products like
Experian Boost and Experian Smart Money and we have added value to our
premium services through bill negotiation services (Experian BillFixer). We
plan to utilise Generative AI and machine learning to offer a more personalised
financial education service and we will continue to unlock substantial new
potential using our unique data and with new product innovation.
In Brazil, we intend to broaden the range of financial services available in our
app. We want people to pay overdue bills, upcoming bills and utilities in a
single, easy journey. In the UK and Ireland, our ambition is to serve a broad
spectrum of consumer financial needs beyond scores and our Credit
Marketplace.
Learn more on pages 38 to 39
SPOTLIGHT
Brazil:
embracing the exciting growth market with
new data trends
Brazil is one of our most exciting growth markets, and offers favourable
structural trends as new data sources have become available. This has
also created greater demand for sophisticated analytics and platforms
to promote wider financial inclusion for people and small and medium
enterprises (SMEs).
We have the most extensive positive data assets today in Brazil, and
we continue to build on this by adding differentiated datasets through
credit card and trade receivables, and consumer-permissioned and
SME-contributed data. With improved data, we are able to greatly enhance
the quality of our scores, which helps consumers access credit more cost
effectively. We have increased innovation and brought hundreds of new
positive data products to market.
We have brought products from our other markets into Brazil, such as
Ascend Ops. We have established a fraud prevention business, which
we are integrating with our credit capabilities. We have entered into the
promising adjacency of agrifinance, an industry still in the early stages of
digitisation; and we have created the biggest platform for consumer
financial needs, and are one of Brazil’s top finance apps.
Learn more on pages 40 to 41
31
Experian plc
Annual Report 2024
Strategic report
Our fundamental pillars
Our strategy is founded on the following six pillars, which position us to
address an approximate US$150 billion total market opportunity.
Superior data
We invest constantly to enhance the breadth,
depth, and quality of our data assets wherever
we operate. We do this organically, through
partnerships, minority investments and by
acquiring new assets.
For example, our data assets in North America
have evolved, deepened and expanded over
time. In turn, this opens up new market
segments for us to address (see diagram
below).
World-class products
Layered on top of this data foundation is an
integrated portfolio of world-class products.
Combining unique analytical, decisioning and
fraud prevention capabilities, our platforms
unlock real-time insights for our clients across
a multitude of use cases. This deepens our
relationships with our clients and enables us to
address larger pools of client spend. The latest
evolution of our Ascend Platform, for example,
brings together the best of our analytics and
decisioning platforms in a powerful yet simple
way for our clients. This convergence of
capabilities is unique in our industry and
positions us to deliver much greater value,
efficiencies and higher productivity for our
Financial Services clients (see case study on
page 36 to 37) and beyond.
Industry-leading innovation
Our approach to innovation combines multiple
industry best practices to ensure the solutions
we develop solve important customer needs,
whether that is in finance, healthcare,
advertising, the automotive sector or even
agricultural lending. We empower our
employees to innovate, beginning with deep
understanding of customers’ challenges,
through to rapid idea generation and
prototyping, coupled with an evidence-based
approach to risk identification and commercial
viability. In FY24, revenue from new and scaling
products was nearly six times that of five years
ago, and we are committed to pushing the
boundaries even further in the years to come.
Relationships with millions
of customers
We put our customers first and aim to continue
growing our reputation as an innovative, trusted
company. We measure our progress through
the global Net Promoter Score (NPS) which has
improved for the fifth consecutive year.
Operational excellence at scale
Our comprehensive technology strategy
underpins our ability to deliver platforms
efficiently at scale. We have made significant
progress modernising our estate over the past
several years; transformation and cloud
adoption continue at pace.
High-performing, inclusive
purpose-driven culture
We maintain and nurture a high-performance,
inclusive culture, which enables us to attract,
retain and develop the best talent. This year,
we have been certified as a Great Place to Work
in 24 countries, with 89% of our employees
saying they are proud to tell people they work
at Experian. We continue to make progress
with our employer brand, strengthening our
Glassdoor score to 4.3 from 4.0 in FY21, and
are increasingly viewed as an innovative
technology organisation.
Expansion of breadth and depth of data coverage in North America
Our strategy
continued
1980s
Traditional
Credit Data
2001
Trended
Data
2009
Rental Data
2016
Marketing
data
Consumer-
Permissioned
Data
2011
Full-file
Public records
2020
Analytics
and Triggers
2021
Social
Security
2021
Financial
Accounting
Data
2022
Renter
Insights
2022
Screening
2017
Alternative
Financial
Services
2019
Expanded
Public Records
2023
Retail
purchasing
behaviours
The Consumer's
Bureau
Rent
Bureau
Consumer
View
Experian
Lift
Clarity
Short-Term
Lending Data
Experian
Boost
Buy Now
Pay Later
Trended
data
More to
come!
Extended
View
Background
Data
Property
Data
Banking
Insights
Expanded
Rental
eCBSV
Experian plc
Strategic report
32
SPOTLIGHT
Our foundations
Our foundations underpin our success. They ensure we have stability,
resilience, efficiency and a strong controls framework.
Talent
Our people make us great. We strive to attract,
retain, and develop the best talent with a
high-performing, inclusive and purpose-driven
culture.
This year, we were proud to achieve a score of
84% for leadership effectiveness. We are also
dedicated to maintaining a robust representation
of female leaders and skilled technology
professionals within Experian.
Technology
We drive cost effectiveness across our
operations, improve service reliability, security
and performance, and enable the organisation
to accelerate the rate of product innovation at
scale.
This year, our technology transformation and
cloud adoption continued at pace as we
leverage our estate to support rapid innovation,
reliable software delivery at scale, and
improved efficiency.
Risk Management
Managing risks helps us create long-term
shareholder value and protect our business,
people, assets, capital and reputation.
This year, we have continued to maintain
a culture that emphasises the importance
of managing risks and which encourages
transparent and timely risk reporting. For
example, to manage the growing importance
and opportunity of Generative AI (GenAI), we
have established a risk framework and set up
an internal training module, which has now
been completed by over 20,000 employees.
Clients
Client trust is at the heart of our brand. We work
hard to understand and meet our clients' needs.
This year, our global Net Promoter Score has
improved for the fifth consecutive year, driven
by an increase in loyal customers. Our
reputation as a trusted company remains the
highest-rated attribute, maintaining this
distinction for five consecutive years.
One Experian
We endeavour to extract synergy throughout
our business, with a cultural mindset that
brings together all of our capabilities and
maximises their breadth.
This year, we have remained dedicated to
building a unique ecosystem of B2B and
Consumer Services solutions that complement
and enhance each other, leveraging our
superior data and products, and fostering
strong relationships with both clients and
consumers.
Driving innovation through AI integration
Several years ago we recognised a major shift in our markets towards AI.
We have a long history of expertise in data science and exploration of the
role that AI plays. We first started to develop this technology in our
Innovation Labs.
We see many benefits to Experian over time, including sizeable productivity
savings from automating more of the coding and engineering activities that
underpin our products and applications. Another benefit, also potentially
very meaningful, is supercharging many Experian products. We have early
examples in Consumer Services, in Ascend Platform, and in our North
America contact centre. We have made much progress on this front over
the past 12 months and have drawn on the curiosity and creativity of our
talent, with teams from across Experian identifying a multitude of use
cases to add to our product innovation roadmaps and help to enhance
our engineering effectiveness. We expect much more to come in FY25
and beyond.
Learn more on pages 54 to 55
33
Experian plc
Annual Report 2024
Strategic report
Our strategy
continued
Consumer
platforms
21%
Credit data
and software
58%
Health software
and services
9%
Marketing data and
Identity resolution
7%
Employer
and
Verification
services
2%
Automotive data
and insights
3%
Progress towards our ambition to address higher growth markets
c.US$
150
bn
Total addressable market
Growth priorities
Marketplace and financial accounts
Where we are
• Scaled Experian Activate
• Incubated growth in new markets
and strengthened in existing ones
• Launched Experian Smart Money
Our ambitions
• Become the largest and most inclusive
financial platform in the world
Our progress*: 6%
Total addressable market
Consumer platforms
Growth priorities
Identity and Fraud (ID&F), analytics,
decisioning, Ascend Platform
Non-traditional, alternative,
consumer-permissioned data
Where we are
• Integrating best aspects of ID&F, analytics
and decisioning into Experian Ascend
Platform
• Leading the positive data revolution in Brazil
• Expanding consumer-permissioned and
alternative data assets
Our ambitions
• Create an integrated global platform,
automated, secure, easy to scale and
compelling to clients
• At the forefront of transformational changes
in credit risk assessment globally
• Leading the shift to digital, 'open' financial
services
Total addressable market
Our progress*: 4%
Credit data and software
Health software and services
Growth priorities
Health expansion
Where we are
• Broad client footprint, 60% of US hospitals
Our ambitions
• Strengthen position in core: Patient Access
• Broaden product portfolio to increase
cross-sell
• Expand into additional market segments
Total addressable market
Our progress*: 4%
*FY24 revenue/Total addressable market.
Experian plc
Strategic report
34
Automotive data and insights
Growth priorities
Automotive expansion
Where we are
• Number 1 or 2 in four of five product lines
• Comprehensive portfolio of unique automotive
products and data assets powered by all
North America business areas
Our ambitions
• Power every decision along the car buying,
selling, and owning lifecycle, that drives the
best outcomes for all
Total addressable market
Our progress*: 6%
Marketing data and
Identity resolution
Growth priorities
Digital data enablement
Where we are
• Focused on data distribution and activation
Our ambitions
• Become a market leader with full activation,
data onboarding and data marketplace
• Scale position in financial services,
combining data and capabilities across
businesses
Total addressable market
Our progress*: 4%
Growth priorities
Income and employment verification
Where we are
• Number 2 provider and main challenger in
North America
• 80% data coverage in the UK
Our ambitions
• Increase adoption and expand on
strategic clients
• Differentiate by providing best-in-class
services
• Grow data coverage to increase performance
Employer and
Verification services
Total addressable market
Our progress*: 5%
35
Experian plc
Annual Report 2024
Strategic report
Imagine you work for a large national bank. You have 300 million
individuals on the database, and for each single person you have two
decades of financial history and thousands of associated attributes.
What can you do with this treasure trove of data?
You could plan for targeted marketing campaigns. You could evaluate
credit risk for potential credit card applicants. You could even delve
into market insights, assessing your position and identifying new
opportunities. You are exploring a world of boundless potential.
We help thousands
of financial
institutions redefine
how lending is done
SPOTLIGHT
Ascend Platform
Our strategy in action
Experian plc
Strategic report
36
However, unlocking these opportunities is far from simple. You could, like
many banks, opt for the conventional path. You'd buy data and software
from a patchwork of vendors, wrestle with integrating them all, then spend
countless hours building your own model from scratch. Endless rounds
of testing would follow, all before you could even launch. It's a time-
consuming, resource-draining slog.
And let's not forget the ever-present worry. As scams grow more complex
and cunning, even vigilant businesses could accidently fall into the traps
of scammers – leading to millions in lost loan funds.
This is where Experian steps in, offering to alleviate this burden.
Here, we become your partner, not just a data provider. Under one roof,
we bring together all the necessary elements: data, analytics models,
and essential tools like credit and fraud prevention. We then integrate
them seamlessly into a unified platform called Ascend.
For smaller companies with limited resources, Ascend becomes more
than just a tool – it’s their one-stop shop, providing all the essential
capabilities, data, and analytics, along with hands-on guidance to ensure
successful implementation and ongoing management. Ascend delivers
24/7 support, ensuring operations run smoothly and efficiently.
For larger organisations with established expertise, Ascend acts as a
powerful accelerator. It significantly reduces the time and effort required
to create or update models, allowing companies to adapt swiftly, to
respond to market fluctuations and navigate regulatory requirements
with greater agility.
Since its launch in 2019, the Ascend Platform has continued to expand,
empowering thousands of organisations worldwide to unlock the full
potential of their data through a secure and scalable environment. It allows
financial institutions to leverage the combined power of data and software,
creating a wealth of synergies that drive better decision-making and
propel growth.
Data is a
treasure trove
of insights but,
ultimately, it’s
about making
decisions.
Keith Little
Managing Director of Analytics,
Decisioning & Platform,
Experian Software Solutions
It used to take me a few
months to build a model,
but now I can build a series
of models over the weekend.
We're completing analyses
that just weren't possible
before and we're getting
decisions to our clients faster,
without compromising risk.
Experian’s Ascend Platform
is an industry gamechanger!
Chief Risk Officer
of a leading consumer lender
in the USA
With Ascend, we become
clients' partner, not just
a data provider.
Ascend brings together
all the necessary
elements under one roof.
37
Experian plc
Annual Report 2024
Strategic report
You may have already heard about Experian’s game-changing feature,
Experian Boost, which millions of individual consumers use to instantly
improve their credit scores, without taking on more debt. With Experian
Boost, payments that don’t usually impact your credit report are factored
in to increase your score.
This year, we took things further by embedding this first-of-its-kind feature
into Experian Smart Money, a credit-building digital checking account.
We help millions
of people realise
their financial
goals and dreams
SPOTLIGHT
Experian Smart Money
Our strategy in action
continued
Experian plc
Strategic report
38
Now, you can simply add money to the Experian Smart Money account
and make payments with it, without manually typing your bank account
number every three months to grant Experian access. All of the rest will
be handled by Experian. This makes it even more convenient for
consumers to engage Experian in their daily lives.
But there is much more value to the Smart Money offer – the vision goes
far beyond a digital checking account. Smart Money aims to be a bridge,
to connect millions of consumers across Experian’s membership and
Marketplace ecosystem and help them to benefit from an industry-leading
suite of financial tools, enabling ‘do-it-for-me’ services like getting a loan,
buying a car, getting out of debt or even finding the best product off our
platform, all in one place.
For Experian, Smart Money will be an important platform to grow our
membership base and foster deeper connections with consumers.
For consumers, Experian delivers value through its one-stop financial
shop, meeting their financial needs all in one place. This is something
you could imagine only with Experian.
Jamie hears from her study partner that
Experian Go
can help her establish an
Experian credit file.
Parker saw the Travis Kelce ad on Instagram.
Parker wonders if
Experian Smart Money
could help him increase his 550 FICO® Score.
Within the Experian app, Jamie is served
information about
Experian Smart Money
.
She applies for and receives the card, then
adds a direct deposit from her new job.
Parker applies for, receives and funds the card.
He immediately starts paying monthly rent on
his new apartment through the
Smart Money
card.
Jamie logs into the Experian App to see that
she automatically received an
Experian Boost
for her six months of internet service
payments.
Parker adds his history of paying streaming
services and utilities to
Experian Boost
and
gets a nice boost to his credit score.
While in the app, Jamie finds that as a Smart
Money cardholder she receives a discount on
an
Experian Premium Membership
.
Parker receives an alert that the rent
payments added to the
Smart Money
account
six months ago qualify him for another score
boost!
Jamie uses the
BillFixer
feature
of her Premium Membership to cut her
internet bill nearly in half, saving her hundreds
of dollars annually.
Now that Parker's built some credit, he finds
a no-risk-to-apply offer for a credit card in
the
Experian Marketplace
.
Jamie is then notified that she's had a
recurring charge for a service she no longer
uses.
Subscription Cancellation
has saved
her even more money.
He finds even more money-saving
opportunities by shopping for
Auto Insurance
in the Experian Marketplace.
I am always thinking about
how we can bring smarter
ways for people to manage
their finances, while at the
same time create synergies
for our other products. Smart
Money is one such solution.
We help consumers improve
their credit score in a way
people could never imagine
before, and the deeper
connections with consumers,
in turn, unlock a substantial
new market for us, with
benefits that extend far
beyond the product itself.
Jeff Softley
Group President of Experian Consumer
Services, North America
Jamie – new to credit
Parker – building credit
Have a look at our consumers' Smart Money journey
39
Experian plc
Annual Report 2024
Strategic report
Fraud is a persistent global problem, and Brazil is no exception. Millions
of Brazilians fall victim every year, with a dramatic number of fraudulent
attempts happening every second. Nearly 40% of the population has
been targeted, and over half has suffered financial loss due to fraud*.
It’s frustrating that fraudsters are able to continuously exploit weaknesses
and innovate scams. You think you’ve found a way to fight them only to
realise that the fraudsters have found new ways to bypass your new
security measures. Financial institutions, such as banks and credit card
companies, are themselves frequently targeted in this ongoing war.
We help millions
of Brazilians fight
fraud in a way
only Experian can
SPOTLIGHT
Serasa Experian
Our strategy in action
continued
*According to research Serasa Experian conducted in November 2023 with 500 Brazilians.
Experian plc
Strategic report
40
This is where Experian steps in. We empower organisations to fight fraud
across the entire customer journey.
When a user onboards, we can quickly verify their identity. Out of every
100 users who onboard, we can accurately identify nearly 92% of them
based on distinct records in our database. We combine these data assets
with industry-leading technologies such as facial recognition, and this
enables us to proactively identify potential threats.
We can even determine whether a user is fake by analysing the device
they’re using. We accomplish this swiftly and securely to ensure a smooth
user experience.
When users progress further into their digital journey, we continue
to monitor their behaviour. During transactions, we help our clients
authenticate documents to ensure the information submitted by users
is valid. We are able to do this thanks to our unparalleled knowledge
of over 10,000 regulations and formatting standards in Brazil.
Most importantly, we complete the verification process in real time.
We are the only player in Brazil who can make the user experience
seamless throughout the customer’s digital journey. This is all because
of the large database we have and the technology we deploy to transform
data into valuable insights. Our capabilities set us apart from our peers.
We understand that there's no single solution for everyone. Therefore,
we provide solutions tailored to our clients’ specific needs. We take into
account their business model and their risk exposure, as well as
regulations, and the user’s journey. We provide our clients with a toolkit
from which they can choose the specific components they need to fight
fraud – just like building with Lego
TM
. In this way, we empower business
in Brazil to combat fraud in a way only we can.
In Brazil, businesses face
fraud challenges every day.
We empower our clients to
combat fraud seamlessly
across the entire customer
journey.
Experian is the only player
in Brazil able to offer this
capability.
Valdemir Bertolo
President of Experian Brazil
41
Experian plc
Annual Report 2024
Strategic report
Global warming and the climate crisis are urgent global challenges.
In the USA alone, the transportation sector is the largest contributor of
greenhouse gas emissions contributing 28% of total emissions, of which
80% is attributable to vehicles*. The transition to electric vehicles (EVs)
has emerged as a promising pathway to help alleviate this problem.
To support this transition, Experian Automotive has strategically aligned
its capabilities across different product lines to create solutions that cater
to customers across the entire value chain.
We help the US
Automotive industry
manage the transition
to electric vehicles
SPOTLIGHT
Experian Automotive
Our strategy in action
continued
*
US Environmental Protection Agency, 2022 data.
Experian plc
Strategic report
42
At the endpoint of the value chain, buyers and sellers of EVs share a
common need: to accurately evaluate the safety and value of these
vehicles before any transaction takes place. To address this need, the
Experian AutoCheck report provides transparency on used EVs by
including essential information such as battery details, EV-specific recalls,
and Recurrent battery health statistics, all of which play a crucial role in
determining vehicle worth.
Moving further upstream in the value chain, dealers and original
equipment manufacturers (OEMs) face the task of identifying and targeting
in-market buyers who are actively interested in purchasing EVs. They also
need to strategically determine the most effective channels for advertising
and promoting these vehicles. To support these efforts, the Experian
Marketing Engine (EME) product line creates EV-specific audience
segments, enabling dealers to pinpoint consumers who are interested
in particular makes, models, and battery types of electric vehicles.
At the uppermost point of the value chain, traditional and new OEMs must
make critical decisions regarding vehicle production, location, and parts
inventory management. To guide these decisions, Automotive Statistics
on Experian's Velocity platform provides detailed insights into vehicle
registration trends, including data on the number and type of EVs
registered, resulting in market share by brand and model. This information
can be tailored to various geographic levels, ranging from national
overviews to granular insights at the zip code level. Marketers leverage
these statistics to precisely focus their EV marketing spend, ensuring
maximum impact and return on investment.
In 2023, approximately 8% of
vehicles sold in the USA were
EVs. We’re always thinking
about how we can create
solutions that benefit the end
consumer in a way that is
frictionless, and that you could
only find from Experian.
John DeMarco
Senior Vice President, Sales and Customer
Engagement of Experian Automotive,
North America
43
Experian plc
Annual Report 2024
Strategic report
The US healthcare market is remarkably complex, with numerous and
ever-changing private and government insurance plans covering about
90% of the population. For healthcare providers, patient care comes first,
but their ability to receive reimbursement for rendered services hinges on
the accuracy of the patient information they capture and, in turn, submit to
insurance companies who cover most healthcare costs.
For more than a decade, Experian has been a market leader in helping
healthcare providers verify demographic and insurance information,
leveraging our robust data sources for patient details and strong
connections with thousands of insurance companies, across every region
of the USA.
Despite these capabilities, the verification process was limited to
one-to-one information exchanges. Most of the time, it was labour
intensive and inefficient, with significant follow-up work required as
industry complexity increased. In the USA alone, such inefficiency costs
healthcare providers over US$200bn in lost revenue annually. Meanwhile,
if the services can’t be billed correctly, patients often bear the cost, which
is a huge, sometimes undue, burden for them. Clear and accurate billing
helps ensure a smooth experience for everyone involved, reducing stress
for patients, minimising errors and delays for healthcare providers, and
promoting positive relationships between all parties.
We help healthcare
providers manage
costs in a simpler way
SPOTLIGHT
Experian Health
Our strategy in action
continued
Experian plc
Strategic report
44
Patient pays
10% for their
treatment
Bill insurance
company after
treatment
NOT VERIFIED
Collect patient's
primary
insurance
coverage
VERIFIED
US healthcare is in a constant
state of change, and it’s only
getting more complicated
every year. The combination
of Experian's data with
WaveHDC’s technology really
makes a difference in
simplifying the healthcare
system for patients, providers
and payers.
Jordan Levitt
Senior Vice President, Experian Health,
North America
Complex verification
process leads to
potential delays and
patient stress
In most cases, patients
bear the entire cost of
their treatment
Improved process
offers better patient
experiences and
significantly improves
payment efficiency
Patients now pay only
10% of their total
treatment cost
Patient pays
10% for their
treatment
Patient billed
for 100% of
their treatment
Before
After
Intake staff in a care
setting capture a
patient's information
confirming name,
date of birth and
address
Intake staff in a care
setting capture a
patient's information
confirming name,
date of birth and
address
Bill insurance
company after
treatment
NOT VERIFIED
Collect patient's
primary
insurance
coverage
VERIFIED
Mark as
self-pay
Billed wrong
insurance
company
Ask patient
to provide
alternative
insurance
details
ACCURATE
Payment
request gets
rejected
NOT ABLE TO PROVIDE
NOT ACCURATE
An alert
identifies
inaccuracies in
the insurance
plan captured
Experian automatically appends
eligible insurance, in real time,
without asking patient to provide
extra information
To simplify the process, this year Experian acquired healthcare data
automation company WaveHDC, which uses Artificial Intelligence (AI)
machine-learning capabilities to capture insurance data and significantly
simplify the patient registration process for both the patient and the
registrar. With this new capability, Experian can now empower intake
staff to achieve results traditionally associated with experienced
personnel, and to significantly reduce training time and workload.
This technology enables a new employee to be just as effective as an
industry veteran. Maybe even more so. The result is a faster, more
accurate process, with a significant reduction of back-end rework.
While the healthcare industry has come to accept the growing amount
of rework as an unavoidable hassle, Experian’s new technology is proving
that there’s a better way.
Compared to the back-and-forth enquiries between insurance companies
and healthcare providers in the past, with intake staff wedged in the
middle to try to interpret the responses, healthcare providers can now
search for patients’ personal and insurance information with a single
enquiry. Experian then automates the transactions in real time, with
minimal human intervention and maximum certainty. One click – all
the answers.
This innovative approach is reshaping the future of healthcare in a
significant step forward that sets Experian apart from our peers. For
healthcare providers, the improved process offers a better patient
experience and significantly improves payment efficiency and labour
needs. For patients, most of the treatment cost can be covered by
insurance, leading to less stress from incorrect bills.
Have a look at the simplified and patient-focused US healthcare experience
45
Experian plc
Annual Report 2024
Strategic report
Our investment case
What we offer to investors
As one of the world’s leading analytics and software companies, our goal
is to unlock the power of data to deliver long-term value for shareholders.
Healthy growth momentum
We invest in product innovation, new sources of data and
technology and our people to extend our competitive lead,
grow our position with our clients and secure new clients
and consumers. We build world-class products that are
highly scalable and which integrate our data, analytics
and software to create platforms. These platforms combine
our capabilities in a way that is unrivalled and which clients
integrate into their workflow. We identify new client and
consumer needs and expand into these areas.
Diversified business model
Our revenue profile is highly recurring as many of our
products and services are integral to our clients’ operating
processes. We have diversified our portfolio and serve
many different client needs across many industry sectors
and geographic regions. We occupy leading positions in
growing markets and have positioned ourselves to address
higher-growth market segments. This enables us to grow
while also being resilient, and we have a strong record of
navigating economic downturns, market volatility and
unforeseen challenges.
6
%
organic revenue
growth
11
+
industry sectors
US$
640
m
capital investment
US$
150
bn
of estimated
addressable market
opportunities
US$
1.5
bn
revenue from product
innovation
32
countries
127
patents
pending
180
m+
free consumer
members
Learn more in Our business model
See pages 22 to 23
Experian plc
Strategic report
46
Strong commitment to ESG
Our sustainability and growth strategies are aligned and
mutually reinforcing. Our focus on improving financial health
not only helps us achieve positive social impact, it also
supports long-term revenue growth of our business.
For instance, increasing financial inclusion grows our total
addressable markets by creating millions of potential
new consumers for us and our clients around the world.
This focus not only encourages innovation, as seen in
ground-breaking products like Experian Boost, but also
creates new revenue streams, such as our Limpa Nome debt
renegotiation service, which significantly contributes to our
Consumer Services revenue in Brazil. Being a purpose-led
business not only helps attract and retain talent but also
serves as a motivating force for our people. Ultimately,
it enhances our reputation and strengthens our relationship
with stakeholders.
Proven track record
and strong financial position
We have a demonstrated history of strategic execution.
Our cash flow is consistently strong, and we have a
solid track record of converting operating profit to cash.
This allows us to prioritise investment, both organically
and by pursuing focused acquisition opportunities, while
balancing returns to shareholders. Our balance sheet is
strong, and we aim to operate within our leverage policy
target range of Net debt to Benchmark EBITDA of 2.0–2.5x.
8
%
of average organic
revenue growth over
the past six years
97
%
cash flow conversion
Committed
to being carbon neutral
in our own operations
by 2030
83
%
employee engagement
US$
19.7
m
community investment
Resilient
dividend: 8% CAGR over
the past three years
Stable
credit rating of A-/Baa1
for the past 12 years
Contributing
to UN SDG Targets
1.4, 8.10, and 9.3
4.3
Glassdoor rating
Learn more in Sustainable business
See pages 56 to 79
47
Experian plc
Annual Report 2024
Strategic report
Stakeholder engagement
Building strong relationships with all
our stakeholders
Our stakeholders are crucial to the success of our company. We aim to treat all stakeholders fairly and
ensure we respond to their needs. We work to build strong relationships and establish mutual trust.
Consumers need
• Access to seamless services that help make
their financial lives easier, simpler and
quicker to navigate
• High-quality and accurate data, to make
more informed decisions
• A high level of data security and privacy
assurance
• Protection from fraud and identity theft
We engage with them through
• Day-to-day interactions on our free apps and
platforms. We provide financial education,
savings, payment services, debt
renegotiation tools and free Experian credit
reports online, as well as other products and
services
• Contact centres that address customer
concerns on a range of issues, from access
to credit, to help with amending data on their
credit file. We also help to support people
who are victims of identity theft
• Outreach through our consumer education
programmes, Experian Education
Ambassadors, consumer experience
programmes and consumer councils
• Marketing campaigns and media relations
activities
• Social media channels, such as Experian
Exchange global site, AskExperian blog,
#CreditChat campaign, CreditChatLive events
and Experian News, as well as working with
social influencers
• Processes to review their data, raise queries
and have corrections made if needed, to
address data accuracy on credit files
• The maintenance of the highest standards
and integrity in data security and privacy
We adopt rigorous policies, processes and
due diligence right across Experian and
consider data security to be every
employee's responsibility
How we add value
We put people in control of their financial
wellbeing. We help them access many financial
services such as obtaining credit, saving money
and paying bills. Because consumer data is at
the heart of our business, consumers need a
company they can trust with that data and who
will be their champion. Not only do we serve
consumers directly, but our clients, whether
they are businesses or other organisations,
serve consumers as their end customer. This
is why consumers are at the heart of all we do.
Our clients need
• To enhance the services they provide to their
customers – typically they seek to provide
faster, frictionless and more personalised
digital interactions
• To identify their customers and prevent
fraudulent transactions
• High-quality and accurate data, analytics
and workflow solutions that help their
decision-making and risk management
process
• To manage and reduce their costs
• To meet their own compliance and
regulatory requirements
• Data security and privacy
We engage with them through
• Day-to-day interactions with sales, product
and support teams
• Ongoing client relationship and Net Promoter
Score surveys, customer loyalty monitoring
• Responding to client requests for information
• Regular opportunities, such as webinars,
advisory boards and conferences, for clients
to explore how data and technology can help
them address market trends
• Customer-experience programmes to
monitor client expectations
• Collaboration with our data scientists at our
three Innovation Labs in Costa Mesa, London
and São Paulo to solve key challenges and
create innovative solutions
How we add value
We work hard to get to know our clients.
We want to delight them, so we monitor their
ambitions and challenges closely and help
them find solutions. We provide many different
services that can help them get faster, smarter
insights, protect against fraud or provide more
efficient, more personalised services for their
customers using our sophisticated solutions.
180
m+
free members
c.
150
k
clients globally
11
+
industry sectors
US$
14.5
bn
debt renegotiated
9,920
technologists
and product
developers at
Experian
5
th
consecutive year
of improvement in
our client global
Net Promoter Score
For information on how we add value for
our clients, please see Our business model,
pages 22 to 23
For information on how we add value for
consumers, please see Our business model,
pages 22 to 23
Consumers
Our clients
Experian plc
Strategic report
48
Our communities need
• Business success, employment and job
creation
• Access to public services
• Long-term asset creation
• Inclusion in mainstream financial services
and products
• A healthy environment to live in
We engage with them through
• Our core products such as Experian Smart
Money, Experian Boost and Experian Go and
social innovation products (e.g. Limpa Nome)
that help improve financial lives
• Working with NGO partners and our United
for Financial Health (UFH) programme
• Direct community investment, charity
partnerships and sponsorship, with a strong
focus on initiatives that support financial
education and management
• Employee volunteering and technical support
for charities, including gifts in kind and pro
bono work
• Advice and support
• Campaigns to raise awareness of topics
relevant to communities
How we add value
We help people, in many communities, to
access credit and other financial services
so they can take control of their financial
circumstances and improve their lives. Our
businesses support local economies in the
areas where we operate through employment
and paying taxes. By helping businesses
prosper, we enhance their potential as local
employers.
Our employees need
• To feel valued for their contribution
• To feel supported, trusted and fairly treated
• To feel satisfied with their work environment
• To feel they make a difference to society
• To contribute to our engaging, positive,
empowering culture
• Training and learning
• Career progression
• Job security
We engage with them through
• A ‘people first’ culture which helps us to
attract, retain and develop our highly talented
people
• Internal communications, including our
enterprise-wide communication platform,
Horizon
• Regular dialogue and performance
discussions with managers
• Regular people surveys (Pulse and Great
Place to Work (GPTW)), surveys for new
joiners and for leavers
• Meeting with Board members and senior
management, and quarterly global webinars
hosted by our CEO, CFO and COO
• Regular townhall meetings with senior
management and other engagement events
• Employee Resource Groups and other
networking opportunities
• Feedback via the online feedback.me tool
• Employee assistance helpline
• Whistleblowing hotline
How we add value
We support a positive, collaborative, diverse,
equitable and inclusive culture and do all we
can to make Experian a great place to work.
We listen to our people's views and value their
feedback. We celebrate great performance and
offer employees support in learning new skills
and progressing their careers, giving them
a sense of purpose – an integral part of our
organisational culture that has a positive
impact globally.
8
m
people reached
through social
innovation products
in FY24
22,500
employees
4.3
Glassdoor
rating
US$
19.7
m
community
investment
146
m
people connected
through UFH since
launch in FY21
83
%
employee
engagement
70,000
hours
volunteering
>US$
1.3
bn
total tax contribution across
our top three countries –
the USA, Brazil and the UK
For information on how we add value for
our communities, please see Sustainable
business, pages 56 to 79
For information on how we add value for
our people, please see Sustainable business,
pages 56 to 79
Our communities
Our people
49
Experian plc
Annual Report 2024
Strategic report
Our suppliers need
• Long-term, collaborative, trusted
relationships
• Business opportunities
• To mitigate market and financial risks
• To meet regulatory requirements and our
ESG expectations
We engage with them through
• A formal procurement process for supplier
selection
• A specific supplier-facing website to help
them understand our expectations and
ethical requirements
• Our Supplier Relationship Management
(SRM) programme for key suppliers that
helps ensure streamlined processes,
performance, segmentation and qualification
• Third-Party Supplier Risk Assessment
process, that includes due diligence in critical
areas such as data security and compliance
• Supplier assessment and training focused on
reducing the risk of Modern Slavery among
key suppliers
• The CDP (formerly The Carbon Disclosure
Project) and the trialling of an Environment
contract annex to understand their
contribution to our Scope 3 emissions
How we add value
Closer relationships with our suppliers, enabled
through partnerships and fairness, help us to
uncover and realise new value, increase
savings and reduce costs and risk of failure,
as well as ensuring we comply with our
obligations. Many of our data contributors are
also our clients. They often supply us with data
through a give-to-get model. Our ability to
combine, clean, sort and aggregate data from
thousands of contributors creates a more
complete picture of consumer or business
interactions across markets.
Governments need
• To generate prosperity
• To manage economic cycles
• To support their stakeholders’ financial
wellbeing
• To create regulations and ensure compliance
• To manage issues that affect consumers and
businesses
• To mitigate impacts of and, where possible,
reverse, climate change
We engage with them through
• Constructive relationships with
policymakers, including regular interaction
with members of senior management
• Events where we communicate the role we
play in supporting an innovative, regulated
data industry
• Responding to public consultations on issues
relevant to our business, and liaising with
various organisations to address societal
challenges
• Participating in multi-stakeholder
engagement for policy consultation; providing
policymakers with a better understanding of
our industry, data processing and innovative
data use
• Monitoring regulations, and putting in place
policies and processes to ensure compliance
How we add value
Operating in a complex and evolving regulatory
environment globally, we aim to maintain a
positive and proactive engagement strategy
with governmental institutions and policymakers
in all our regions. This is because we enable the
transparent flow of data that is essential to the
functioning of modern economies and the
financial ecosystem. High-quality data coupled
with advanced analytics reduces risk to lenders,
improves processes and helps reduce fraud.
It enables people to make informed decisions
about their finances. The economy benefits
with improved access to credit, improved
market competition, increased diversification
of financial products available and reduced
cost of credit.
21
key suppliers in
our dedicated
SRM
32
countries
2,900
suppliers in our
three largest
markets
19
consumer and
75
%
reduction in Scope
1 and 2 carbon
emissions since
2019
16
business
information
bureaux
For information on how we add value for our
suppliers, please see Sustainable business,
pages 56 to 79
For information on how we add value for
governments, please see Sustainable
business, pages 56 to 79
Our suppliers
Governments
Stakeholder engagement
continued
Experian plc
Strategic report
50
They need
• To understand Experian’s strategic direction,
financial performance, and the sustainability
of the business
• To analyse structural market trends
• To generate sustainable investment returns
through share price appreciation, dividend
payments, bond interest and share
repurchases
• To understand management and incentive
structures
• To ensure they are investing in businesses
that are committed to environmental
progress and societal benefit, and which
have strong governance
We engage with them through
• A dedicated investor relations programme
• Quarterly financial updates, Annual Report,
and associated reports on tax, social impact
and diversity, equity and inclusion – in which
we inform analysts, investors and other
interested parties about our financial and
strategic progress
• Face-to-face and virtual meetings,
roadshows, conferences and teach-in
sessions specific to our business, strategy
and ESG progress
• Answering bondholders' queries when they
arise, and organising focused update
meetings before issuing bonds
• Regular investor surveys and feedback –
provided to management and the Board to
ensure our shareholders' views are well
understood
• The Chair of the Board holds meetings with
our largest shareholders to discuss
developments in strategy, ESG and other
material issues
• Shareholders meeting and putting questions
to our Board and senior management team
during our Annual General Meeting
• A website where investors can access a wide
array of information about Experian
How we add value
We aim to create value for current and potential
owners of Experian’s shares and bonds through
organic and inorganic investments that grow
our position in our chosen markets. We balance
this investment with shareholder returns,
dividend payments and share repurchase
programmes when appropriate, all while
ensuring we meet our wider sustainability
commitments. This creates long-term,
sustainable value for our shareholders and
bondholders.
6
%
Organic revenue
growth
17.0
%
Return on capital
employed
For information on how we add value for our
shareholders and bondholders, please see
Our investment case, pages 46 to 47
USc
58.5
Full-year dividend
per share
USc
145.5
Benchmark EPS
Our shareholders and bondholders
51
Experian plc
Annual Report 2024
Strategic report
Key performance indicators
Measuring our progress
To create sustainable value for our stakeholders, we use a comprehensive set of Key Performance Indicators (KPIs)
to track our progress towards our strategic objectives and to support critical decision-making across every facet of
our business. In FY24, we made significant progress on both our financial and non-financial metrics.
Why is this important?
It is a measure of our ability to expand the reach
of our innovative products and services for clients and consumers,
and to extend these to new industries and across regions.
Aim:
To consistently achieve mid to high single-digit organic revenue
growth.
Analysis:
Organic revenue grew 6%. The main contributors to growth
were higher contributions from strategic initiatives such as Ascend and
verification services, progress in Consumer Services, Brazil, a solid
performance in the UK and Ireland B2B, strategic progress in EMEA
and Asia Pacific, and good contributions from vertical expansion.
More detail:
In the Chief Executive's review.
Why is this important?
It measures how well we turn our revenue into
profits, which allows us to reinvest for future growth and to provide
returns for shareholders.
Aim:
To operate our business efficiently and cost effectively with stable
EBIT margins.
Analysis:
We continue to invest in new data sources, product innovation,
technology and top talent. These are the foundational elements of our
business. This year we achieved Benchmark EBIT from ongoing activities
of US$1,944m, up 7% at constant exchange rates and 8% at actual
exchange rates. Benchmark EBIT margin was 27.6%, at both actual and
constant exchange rates up 10 basis points.
Why is this important?
It measures how effectively we have deployed
our resources and how efficiently we apply our capital.
Aim:
To generate good returns on the investments we make and create
long-term value for shareholders.
Analysis:
This year, ROCE was 17.0%, up 50 basis points on the prior year,
reflecting growth and our continued focus on operating efficiency.
Why is this important?
EPS measures our success at generating
surpluses and value for our shareholders.
Aim:
To achieve earnings growth for shareholders while balancing
reinvestment to secure future growth opportunities.
Analysis:
Benchmark EBIT from ongoing activities was up 7% at constant
exchange rates, helped by the strength of our organic revenue growth
performance and ongoing cost discipline. Our Benchmark net finance
costs increased to US$139m, and Benchmark tax rate was down 30 basis
points to 25.7%. With weighted average numbers of shares at 913m, this
resulted in Benchmark earnings per share of 145.5 US cents. This was up
8% on the prior year at actual exchange rates and 7% at constant
exchange rates.
6
%
17.0
%
USc
145.5
27.6
%
US$
1,944
m
See page 141 – Revenue performance is linked to directors’
remuneration
For a reconciliation of revenue from ongoing activities, including disclosure of organic and acquisition
revenue, from the year 31 March 2023 to 31 March 2024 see Note 10(a)(ii) to the Group financial
statements.
See page 141 – Adjusted ROCE is a directors’ remuneration measure
See page 141 – Benchmark EPS growth is linked to directors’
remuneration
See page 141 – Benchmark EBIT is a directors' remuneration measure
1
From ongoing activities.
2
Results for FY23 are re-presented for the reclassification to exited business activities of certain
B2B businesses.
See note 7 to the Group financial statements for definitions of these non-GAAP measures: organic revenue growth, Benchmark EBIT,
Benchmark EBIT margin, ROCE, Benchmark earnings per share, and Benchmark operating cash flow and cash flow conversion.
Organic revenue growth
Return on capital employed (ROCE)
Benchmark EBIT and Benchmark EBIT margin
1
Benchmark earnings per share (EPS)
2024
2023
2022
2021
2020
6
7
12
4
8
%
20
24
2
023
2
022
2
021
2
020
17.0
16.5
15.7
14.9
16.1
%
20
24
2
023
2
022
2
021
2
020
145.5
135.1
124.5
103.1
103.0
Usc
2024
2023
2
2022
2021
2020
27.6
27.5
26.6
25.8
26.9
%
1,944
1,798
1,653
1,379
1,386
US$m
Experian plc
Strategic report
52
Why is this important?
Benchmark operating cash flow is the cash
generated by the business. It gives us the capacity to operate and
reinvest, to finance acquisitions and to pay shareholders. The efficiency
with which we convert profits into cash flow is measured by cash flow
conversion.
Aim:
To convert at least 90% of Benchmark EBIT into Benchmark
operating cash flow.
Analysis:
Cash flow performance was again strong with Benchmark
operating cash flow of US$1,864m, up US$111m on last year. The increase
is due to improved performance and working capital movements.
Why is this important?
Our people make us great. We prioritise a 'people
first' culture where our people feel valued and able to do their best work.
Engaged and motivated people help us develop innovative products, find
new opportunities, and grow.
Aim:
To ensure Experian is a great place to work and that we can attract
and retain the best people.
Analysis
: For our third global Great Place to Work survey this year, we
achieved an engagement score of 83% (2023: 82%). 89% of our employees
said they are proud to tell people they work at Experian, a testament to our
commitment to creating an inclusive and welcoming workplace. We were
recognised as a Great Place to Work in 24 countries, including achieving
this accreditation in Canada, Norway and Spain for the first time this year.
We also continued to make progress with our employer brand, elevating
our Glassdoor score to 4.3 from 4.0 three years ago.
Year
2024
2
2023
2
2022
2
2021
2
2020
2
Carbon intensity – total emissions per US$1m revenue (tonnes CO₂e)
3
30.2
28.8
4
31.2
87.6
100.1
Scope 1 & 2 market-based emissions (000s tonnes CO₂e)
3
7.4
10.1
16.4
16.5
25.1
Total Scope 3 emissions (000s tonnes CO₂e)
3
206.8
180.6
4
179.8
453.9
493.4
Why is this important?
It measures the carbon emissions we generate,
as we have a responsibility as a business to reduce our carbon footprint
and respond to the climate change emergency.
Aim:
At present, we have a commitment to become carbon neutral by
2030
1
, while we continue working towards Net Zero
5
.
1. Reduce Scope 1 and 2 emissions 50% by 2023, against 2019 baseline.
2. 78% of suppliers by spend to have science-based targets by 2029.
Analysis:
This year, our total Scope 1 and 2 emissions have decreased by
27%. We have achieved this by increasing the use of renewable electricity,
improving our energy efficiency, embracing flexible working to reduce
building occupancy, and consolidation and reduction of office space. Since
2019, we have reduced our total Scope 1 and 2 emissions by 75%. This
means we are currently outperforming and are well on track to meet our
science-based target to reduce these emissions by 50% by 2030.
Our Scope 3 emissions have increased by 15% in 2024 versus 2023.
We are engaging with suppliers to encourage them to agree to
sustainability clauses in their contracts, and report actual emissions.
We have set a new Scope 3 target to support our journey towards
Net Zero, that requires suppliers covering 78% of Experian’s spend on
Purchased Goods and Services, Upstream Leased Assets, Capital Goods,
and Investments to have science-based targets by 2029.
Overall, we have increased our carbon intensity by 5% since last year, due
to increases in the emissions of significant suppliers, and business travel.
1
All references in this Annual Report to ‘carbon neutral in our own operations by 2030’ includes all
Scope 1 and 2 emissions, as well as Scope 3 emissions from Purchased Goods and Services,
Business Travel and Fuel- and Energy-Related Activities.
2
In 2023 we upgraded our Scope 3 methodology, from using a purely spend-based analysis to also
including actual supplier emissions data. We therefore restated our 2022 Scope 3 figures using the
same methodology, to provide comparable figures, resulting in restated figures for Purchased Goods
and Services, Upstream Leased Assets, Capital Goods, and Investments. We did not restate these
categories for 2021, 2020, and 2019, due to data limitations. For further information please refer to
our 2023 Carbon Reporting Principles and Methodologies document at experianplc.com/
responsibility/data-and-assurance/.
3
CO₂e = CO₂ equivalent.
4
2023 emissions from Business Travel have been restated from 7.5 to 10.0 thousand tonnes CO₂e,
following an issue found in the data provided by our third-party global travel provider. This changes
the 2023 total scope 3 emissions from 178.1 to 180.6 thousand tonnes CO₂e and the 2023 total
emissions per US$1m revenue from 28.4 to 28.8 tonnes CO₂e.
5
In accordance with the definition of Net Zero, as outlined by the Science Based Targets initiative's
Corporate Net-Zero Standard.
See Protecting the environment on pages 70 to 76 for further
information on how we are taking action on climate change
Carbon emissions
83
%
97
%
US$
1,864
m
See page 141 – Cumulative Benchmark operating cash flow is a
directors’ remuneration measure
See note 40(g) to Group financial statements for reconciliation of Cash generated from operations
to Benchmark operating cash flow.
See Inspiring and supporting our people on pages 65 to 67 for further
information on how we've been looking after and listening to our people
this year
Benchmark operating cash flow and cash flow conversion
Employee engagement
2024
2023
2022
83
82
78
%
2024
2023
2022
2021
2020
97
98
109
106
88
%
1,864
1,753
1,800
1,476
1,214
US$m
53
Experian plc
Annual Report 2024
Strategic report
In a world overflowing with information, simply collecting data isn’t
enough. What truly transforms lives and solves complex business
challenges are valuable insights. This is where Experian’s Innovation
Lab comes in, offering expertise in crafting such insights. We at the
Lab specialise in developing sophisticated, data-driven analytical
solutions to the most challenging business problems. Our unique
edge lies in leveraging the latest advancements in AI and big data.
This allows us to create unmatched, industry-leading solutions.
We make a
difference to the
world through
innovation
SPOTLIGHT
Experian Innovation Lab
Experian plc
Strategic report
54
Take, for instance, the analytical sandbox, a ground-breaking product from
our Lab. It revolutionised the industry by becoming the first system to
allow multiple clients to simultaneously access and analyse Experian’s
vast data. This empowers clients with on-demand access to powerful
resources, fostering continuous learning and innovation. This pioneering
concept has since become part of our Ascend Platform, one of the
industry's gamechangers today.
In the rapidly evolving world of GenAI, staying ahead of the curve is crucial.
The Innovation Lab has been a leader in this field for the past decade.
We began by utilising GenAI technology called ‘Latent Dirichlet Allocation’
and 'Neural Embedding' to predict customer preferences and identify
fraud. We then progressed by developing tools that translate spoken
words into actionable instructions and business insights, even without
any coding expertise. Today, the Lab is taking another leap forward by
collaborating with various business units across the company to create
a diverse range of GenAI solutions. One such example is the ECS Credit
Education Bot, launched in February 2024, which leverages GenAI to
simplify credit education and management for our clients.
Innovation is our lifeblood at Experian. Ground-breaking solutions like
Ascend, Smart Money, and Experian Marketplace have significantly
contributed to our overall revenue in recent years. In FY24, revenue from
new and scaling products was nearly six times that of five years ago.
many driven or inspired by the pioneering work of the Innovation Lab.
As a forward-thinking organisation, we remain committed to finding new
ways to support our clients, and relentlessly pushing the boundaries of
innovation across finance, healthcare, advertising, and automotive sectors.
If Experian were a team of
mountaineers with the CEO as
our guide up the peak, then we
at the Innovation Lab are the
advance scouts. We explore
uncharted territories and pave
the way for ground-breaking
products and opportunities that
were previously unimaginable.
Shanji Xiong
Chief Scientist of Experian Innovation Lab
Fostering a culture of
continuous innovation
55
Experian plc
Annual Report 2024
Strategic report
Sustainability
Environmental, social and governance
We are using our data, products and expertise to help people thrive on their financial journey. Our strong focus
on environmental, social and governance (ESG) opportunities and risks is critical to realising this ambition,
growing our business and fulfilling our purpose of creating a better tomorrow.
CDP Climate Change:
‘A-’ rating
(Leadership Band)
CDP Supplier Engagement Rating
(SER):
‘
A' rating (Leaderboard)
Financial Times:
Experian was identified as one
of Europe's Climate Leaders 2024 by the
Financial Times and Statista
MSCI:
‘A’ rating for ESG
investment risk
Sustainalytics:
Our score of 12.0 positions us in
Sustainalytics' Low Risk band for investors
FTSE4Good:
Experian has been a member
of the FTSE4Good ESG index since 2012
Great Place to Work:
We have been certified
as a Great Place to Work in 24 countries
(see page 65 for more employer awards)
2024 Equileap:
Experian was named in the
‘Top 100 Globally for Gender Equality’ for 2024.
We were ranked #44 Globally and #6 in the USA
Fast Company World Changing Ideas:
Experian
was recognised for the second year running,
this time for Experian Go
Business Innovation Group:
Experian Smart
Money won in the Financial Products category
Our sustainability strategy
External recognition in FY24
Our sustainability strategy is underpinned by our robust ESG governance (see page 77).
ENABLED BY
Treating data with respect
Security
Accuracy
Fairness
Transparency
Inclusion
Inspiring and supporting
our people
Working with
integrity
Protecting the
environment
CONTRIBUTING TO THE UNITED NATIONS’ SUSTAINABLE DEVELOPMENT GOALS
SUPPORTED BY
Our responsible business foundations
Driving financial
inclusion
Enabling our clients to
deliver positive outcomes
Building financial health
and confidence
OUR AMBITION
Helping people thrive on their financial journey
DELIVERED BY
OUR PURPOSE
Creating a better tomorrow
1.4
8.10
9.3
Experian plc
Strategic report
56
Defining our strategy
Our commitment to sustainable business and
strong ESG performance offers a source of
competitive advantage, helps us recruit and
retain people with the expertise and experience
we need to grow our business, and strengthens
our reputation and relationships with all our
stakeholders.
Our sustainability strategy helps us set targets
and commitments, make progress and enhance
transparency through our ESG reporting and
disclosures. It is informed by an assessment of
our most material ESG opportunities and risks,
based on consulting senior leaders who
represent different regions and functions
across the business, and with support from
external advisers.
Regular engagement with investors and other
stakeholders helps us refine our priorities. See
pages 48-51 for more on how we engage with,
and create value for, our stakeholders.
Our role in society
Experian is dedicated to empowering people to
create a better future for themselves. As a
global data and analytics powerhouse, we use
our expertise and technology to transform data
into information to help people and businesses
thrive.
We are the world’s largest credit bureau, and
our work underpins the stability and efficiency
of the consumer financial system by promoting
a responsible credit culture that discourages
excessive debt and rewards responsible
borrowing and repayment.
Our data and analytics support lenders in
making informed decisions that enable access
to fair and affordable credit to help consumers
and businesses thrive. Informed lending also
results in fewer defaults, which in turn reduces
the cost of credit and increases the availability
of consumer credit across the economy.
The World Bank underlines the important role
of credit bureaux and credit reporting in helping
people and businesses to build a credit history
and use this ‘reputational collateral’ to access
fair credit. This is particularly beneficial for new
borrowers and small businesses without
physical collateral to borrow against. We also
help lenders make non-biased lending
decisions.
We can add the most value to society by
improving financial health for all. This has been
our strategic sustainability priority since we
refreshed our sustainability strategy in 2021. As
our approach evolves and matures, we are
focusing more on the positive social impact our
products and services can have.
Our ambition
Every consumer or small business is on their
own financial journey – from establishing their
financial identity and credit profile to building
confidence, fulfilling goals and having the ability
to make positive financial decisions to be able
to thrive in the long term.
Our ambition is to help people thrive on their
financial journey.
To achieve this ambition, we are using our
products and services to drive financial
inclusion, enable our clients to deliver positive
outcomes, and build financial health and
confidence (see pages 59-60). In doing so, we
will help to tackle financial health challenges
that are preventing billions of people around the
world from accessing opportunities to improve
their lives (see page 58).
Helping people thrive on their financial journey
enables them to get fairer access to credit and
the essentials they need to transform their lives
– from having a home or building their
business, to paying for education and
healthcare. This, in turn, supports social and
economic development, and contributes to
three of the United Nations' Sustainable
Development Goals, including helping to lift
people out of poverty (as outlined on the next
page).
Driving progress towards our ambition not only
helps us achieve positive social impact, it also
aligns with our Strategic focus areas, supports
long-term revenue growth and contributes to
the success of our business (see page 59).
Our key enabler
Achieving positive impacts for society and our
business depends on our ability to access and
use data from individuals and businesses
around the world.
Treating data with respect is therefore a key
enabler underpinning our ambition. It is also
essential to maintaining trust – and failure to
keep it secure is one of our biggest business
and ESG risks. See more on treating data with
respect on pages 61-64.
Our strong foundations
One of our core beliefs is that how we work is
as important as what we do, and our strategy is
founded on a strong culture of corporate
responsibility.
We aim to inspire and support our people by
embracing and developing diverse talent, and
creating an inclusive working environment that
supports high performance (see page 65). We
work with integrity (see page 68) by upholding
high ethical standards and respecting human
rights in our business and supply chain. And we
strive to do our part to protect the environment
and tackle climate change (see page 70).
57
Experian plc
Annual Report 2024
Strategic report
Global financial health challenges
Aligning our sustainability
and growth strategies
Our sustainability and growth strategies are
aligned and mutually reinforcing.
Three of our five Strategic focus areas (see
page 26), which we use to direct our investments,
support our ambition to help people thrive on
their financial journey. These are: make credit
and lending simpler, faster and safer for
consumers and businesses; empower
consumers to improve their financial lives; and
help businesses verify identity and combat fraud.
Our sustainable business ambition to help
people thrive on their financial journey supports
our business by:
• Growing our total addressable markets, with
the potential to access millions of new
consumers, for us and our clients around the
world, by enhancing financial inclusion
through products such as Experian Go and
Experian Lift Premium (see page opposite).
• Creating additional revenue streams, through
products such as our Limpa Nome debt
renegotiation product, which significantly
contributes to our Consumer Services
revenue in Brazil.
• Driving innovation through our global
innovation framework, hackathons and
Social Innovation programme to deliver
ground-breaking products like Experian
Boost (see page opposite).
• Attracting and retaining talent, and
motivating our people, as employees
increasingly want to work for companies
with purpose – 89% of our employees are
proud to tell others that they work at
Experian (up from 88% last year).
• Enhancing our reputation and strengthening
relationships with consumers, clients,
employees, investors, regulators,
governments and other stakeholders – by
demonstrating Experian is a responsible
business committed to meeting growing
stakeholder and regulatory expectations,
making purpose-driven decisions and
having a positive impact on society.
Exclusion
• One in four (1.4 billion)
adults worldwide still lack
access to basic financial
services
• 850 million people do not
have official proof of identity
• 28 million American and
4-5 million British adults
are ‘credit invisible’
Confidence
• <42% of people in emerging
economies and <70% in
advanced economies are
financially literate
• More than 72 million people in
Brazil have defaulted on their
debts, which impacts their
credit rating
• 50% of new businesses in the
UK fail within three years of
opening
Security
• One in three Americans and
one in five Europeans has
fallen victim to identity theft
• >50% of US consumers feel
they are more of a target for
fraud than a year ago
Cost of living
• 66% of Americans are looking for
ways to trim expenses from their
monthly budget
• 77% of UK adults feel the burden
of keeping up with their domestic
bills and their credit
commitments has increased, and
nine in ten have cut back on
spending
• £478 is the average annual poverty
premium paid by those on the
lowest incomes in Great Britain
Sustainability
continued
Contributing to the
United Nations' Sustainable
Development Goals (SDGs)
The most meaningful contribution we can
make to the SDGs is by helping people thrive
on their financial journey, which supports
progress towards these specific SDGs:
Target 1.4:
By 2030, ensure that all
people, in particular the poor and
the vulnerable, have equal rights to
economic resources, as well as
access to appropriate new
technology and financial services,
including microfinance.
Target 8.10:
Strengthen the
capacity of domestic financial
institutions to encourage and expand
access to banking, insurance and
financial services for all.
Target 9.3:
Increase the access of
small-scale industrial and other
enterprises, in particular in
developing countries, to financial
services, including affordable credit.
We also contribute to several of the other
SDGs, for example through our work to
improve diversity, equity and inclusion
(see page 66), tackle modern slavery
(see page 69) and reduce climate impacts
(see page 70).
Experian plc
Strategic report
58
Consumer-focused tools enable people to take
control of their financial lives and reach their
credit and money goals, with financial inclusion
as a key driver. Our data and analytics provide
lenders with the information they need to offer
more loans at fairer interest rates, which in turn
enables consumers and businesses to improve
their financial health.
We also contribute through our community
investment programmes and skills-based
employee volunteering, with a strong focus on
financial education.
Helping people thrive on their
financial journey
Improving financial health is well established
as a strategic priority for Experian. This year,
we refined our approach in this area to focus
on and amplify the positive social impact our
products and services can have by articulating
a new ambition: helping 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 impact as a favourable and measurable
change that occurs in someone’s financial
journey as a result of interacting with an
Experian product or service (either directly or
indirectly via an Experian client). The people we
help thrive include consumers and small
businesses.
This year, we completed an initial review of
our product portfolio against the framework
to identify which products contribute to our
ambition by creating change in one or more of
the framework’s three defined areas: driving
financial inclusion; enabling our clients to
deliver positive outcomes; or building financial
health and confidence.
We are now developing a methodology to
quantify the total number of people our
products and services help to thrive on their
financial journey, with a view to reporting
this in the future. A cross-functional steering
committee will oversee the implementation
of the Positive Social Impact Framework.
We aim to catalyse progress towards our
ambition by growing our existing product
portfolio and by integrating positive social
impact into our innovation processes, as a key
driver for development of new products and
services.
Our Social Innovation programme also
continues to provide seed funding for new
products and services that meet a specific
social need and we foster innovation across
Experian through our global hackathons. This
year, more than 5,800 employees were engaged
in our two hackathons, with teams from across
the business entering a wide range of ideas,
including 24 related to delivering our purpose
of creating a better tomorrow.
Driving financial inclusion
We help people establish a financial identity and
build a credit profile to enable them to gain
access to financial services.
Two game-changing Experian products
designed to unlock access to fair and affordable
credit in the USA have been recognised as
World Changing Ideas at the Fast Company
Awards – Experian Go in 2023 and Experian
Boost in 2022.
Around 28 million US consumers are not visible
to lenders because they do not have a credit
profile. In the three years since launch, Experian
Go has enabled around 210,000 of these ‘credit
invisibles’ to establish a credit profile in just
minutes.
With Experian Boost, US consumers can choose
to add positive data – such as on-time
payments from rent, streaming services, utility
bills and, from this year, insurance premiums
– to their Experian credit file to instantly
improve their FICO® Score. Over 15 million US
consumers have connected to Experian Boost
and more than 106 million points have been
added to credit scores using this solution in the
last five years. We have made Experian Boost
part of our new Experian Smart Money Digital
Checking Account and Debit Card in the USA
to identify eligible bill payments that could
potentially increase credit scores (see page 38).
This year, we have expanded the use of
non-traditional credit data to support financial
inclusion in other regions. In South Africa,
where 20% of the population remains
unbanked, we have partnered with Chenosis
to incorporate consented information about
mobile airtime and data purchases to boost
credit scores. Our new Advance XScore in Peru
has the potential to include three million more
people in the financial system by using
alternative data from telecommunications
companies.
Our Validation 2.0 solution, developed through
our Social Innovation programme and launched
this year, has already made it possible for
organisations to validate the identity of more
than 75,000 Venezuelan migrants arriving in
Colombia – by integrating data held by the
Colombian immigration authorities into our
identity verification products.
Enabling our clients to deliver
positive outcomes
As well as empowering consumers to improve
their scores directly, we partner with lenders to
improve financial inclusion and financial health.
We help clients better understand their
customers so they can offer fair and affordable
credit that enables people to get what they need
in life – from having a home or building a
business, to paying for education and
healthcare.
In the UK, Leeds Building Society is using
Experian Boost to help people increase their
chances of getting a mortgage by adding data
such as council tax and streaming service
payments to their credit profile. In the USA,
Experian Lift Premium enables lenders to score
65%-75% of credit invisibles by applying
machine learning and other advanced analytics
to additional datasets, regulated by the US Fair
Credit Reporting Act (FCRA).
We also help clients enhance the support they
offer consumers. People in the UK who have
sight, hearing, mental health or dementia needs
can use our new Support Hub to let multiple
organisations, including Experian clients such
as lenders, know about their support needs
quickly and efficiently. This enables clients to
provide appropriate accessibility support to
facilitate use of financial services.
Improving financial health
Our innovative products help people improve their financial health, either directly
through our Consumer Services business or indirectly through the services we offer
our clients.
59
Experian plc
Annual Report 2024
Strategic report
Our focus on improving financial health
includes small and medium-sized enterprises
(SMEs) as well as consumers. We provide
solutions to enhance credit visibility of SMEs
which, in turn, enables lenders to deliver
positive outcomes for more SMEs. In Malaysia,
we have launched a web data score that draws
on public data, sourced online, to enable credit
scoring of SMEs across the country. In Brazil,
our ESG and credit risk reports, scores and
remote crop monitoring were used to assess
almost 400,000 farmers and more than
475,000 properties, among which small
landowners represent 34%.
We also offer a range of solutions to help clients
prevent fraud. Our CrossCore integrated digital
identity and fraud prevention platform was
named Overall Leader, Innovation Leader,
Product Leader and Market Leader in
KuppingerCole’s 2023 Fraud Reduction
Intelligence Platform Leadership Compass
report. The new Experian Mule Score helps
banks and building societies identify and close
‘money mule’ accounts – those suspected of
being used to run scams and transfer
fraudulently obtained funds. Overall, our fraud
prevention and identity theft products are
estimated to have prevented at least US$15bn
in fraud for our clients and generated 12% of
our business and consumer revenue across the
Group in FY24.
Building financial health and confidence
We empower consumers and small businesses
by building their confidence to manage their
finances, protect their financial identities from
fraud and navigate the unexpected – from the
rising cost of living to major life events.
Worldwide, over 180 million consumers use our
free platforms – such as CreditExpert in the UK
and Serasa Free Score in Brazil – to access
products and services that can help them
understand and manage their credit profiles.
We are developing new apps to help consumers
and small businesses build their financial
confidence. The 'Up, powered by Experian' app
has launched in South Africa, offering
consumers gamified credit and financial
education, the ability to track and manage their
credit scores, and an option to build their credit
score using alternative data. The Midatacrédito
app, to be launched in FY25, offers personalised
advice and day-to-day support to help
consumers in Colombia understand and
manage their savings, personal expenses and
credit scores. And the Descomplica app
supports SMEs in Brazil with their financial
management by providing a simple dashboard
of their finances with recommendations and
guidance based on their financial transactions.
Keeping track of, and finding ways to reduce,
expenditure can make a big difference to
financial health in the current economic
climate. A recent Experian study found that two
thirds of US consumers are actively looking for
ways to trim expenses from their monthly
budget. Experian BillFixer negotiates on behalf
of Experian members to get them better rates
on bills such as cable TV, internet and phone –
and this year we added a feature that scans
connected bank or credit card accounts to
identify potential savings from eligible bill
payments and paid subscriptions.
More than 39 million people in Brazil have now
used our Limpa Nome recovery portal. In FY24
alone we facilitated the renegotiation of
US$14.5bn of unmanageable debt, and helped
to write off a total of US$11.9bn. We also
continued our community outreach to help
more people this year, with support from
Experian volunteers, through two Limpa Nome
Fairs and a mobile unit travelling around the
country.
Concerns about fraud continue to grow, with
over half of the 2,000 US consumers we
surveyed in 2023 saying they feel more of a
target than a year ago. Our Consumer Services
business helps people spot potentially
fraudulent transactions in their credit profiles,
and we enable Experian members in Brazil, the
UK and the USA to lock their profiles to reduce
the risk of identity theft and fraud. This year’s
Christmas fraud awareness campaign from our
UK and Ireland team, featuring Santa getting
scammed, clocked up over 1.5 million views.
Investing in communities
Our United for Financial Health programme to
empower communities through financial
education has connected with over 146 million
people since it launched in 2020, including 33
million in FY24.
Highlights this year included: teaming up with
NGO DIFFvelopment and influencer Daymond
John to address the racial wealth gap in the
USA through access and education; working
with the National Literacy Trust and grassroots
organisations to improve literacy and financial
capability among young people in the UK;
mentoring start-ups and small businesses in
Brazil to help them build their business, access
finance and manage debts; and partnering with
the Srujna Charitable Trust in India to deliver
financial education to women affected by
poverty.
United for Financial Health is part of our wider
community investment. We contribute funding,
products (as gifts in kind) and expertise
(through employee volunteering) to benefit the
communities where we operate. Our
community investment contributions totalled
US$19.7m this year, achieving our annual goal
of 1% of Benchmark profit before tax.
Experian employees volunteered 70,000 hours
of their time (in and outside working hours) to
help their communities. Many chose to share
their expertise to support programmes
designed to improve financial health – including
through support sessions for National Health
Service (NHS) staff and community members
near our regional operational headquarters in
Nottingham, UK.
Sustainability
continued
We mentored start-up founders in Brazil to
improve the financial health of their customers
Our partnership with Srujna has provided 35,000
women in India with financial literacy skills
Our fraud awareness campaign in the UK and
Ireland at Christmas racked up over 1.5m views
In the UK, we ran 10 Money Clinics to support NHS
and care workers with their financial wellbeing
Experian plc
Strategic report
60
Treating data with respect
Data is at the heart of our business. We are entrusted with data on 1.1 billion people
and around 150 million active businesses worldwide.
Treating data – and those it belongs to – with
care and respect is fundamental to securing the
trust Experian depends on to exist, grow and
create a better tomorrow.
We are committed to protecting the data we
hold, using it fairly and making sure it is as
accurate as possible. We are open about the
data we collect, how we use it and who we
share it with. And we use data to increase
financial inclusion and help people improve
their financial health.
Our five Global Data Principles embody these
key values (see below) and apply everywhere
we operate. They guide how we manage and
use data, develop products and conduct all
aspects of our business.
Experian Global Data
Principles
Security
Data security is critical. Securing and
protecting data against unauthorised
access, use, disclosure and loss are key
priorities for us.
Accuracy
We will make data as accurate, complete
and relevant as possible for the way we use
it, always in compliance with legal
requirements.
Fairness
We collect and use data fairly and for
legitimate purposes, balancing privacy
expectations with the social and economic
benefits derived from the responsible use of
data for individuals, businesses and clients.
Transparency
We are open about the types of data we
collect, where we get it, how it is used and
where it is shared. Where appropriate we
provide individuals with access to the data
we collect about them and the ability to
correct, restrict or delete data.
Inclusion
We seek to improve financial health and
inclusion for all through the innovative use
of relevant data to help individuals improve
their financial lives.
Security
The loss or inappropriate use of data and
systems could result in material loss of
business, substantial legal liability, regulatory
enforcement actions and significant harm to
our reputation. See pages 92-99 for more on
the principal risk of data loss/misuse and our
wider approach to risk management.
Our approach
Security comes first at Experian. Our strong
information security culture starts at the top.
Senior leaders are highly engaged and we
make clear that everyone at Experian must take
personal responsibility for security.
We continually enhance and invest in our
security infrastructure, practices and culture
across the business. The Global Security Office
(GSO) establishes and governs global security
requirements that encompass safeguarding
against threats, compliance with global
information security regulations, alignment with
relevant industry standards, and fulfilment of
contractual requirements. The GSO works with
specialist teams and security personnel in our
business units and regions to implement
risk-based procedures and controls as needed
to support security objectives.
Our security approach has three tiers: applying
tools and processes to prevent threats from
entering our environment; detecting if a threat
enters our environment; and mitigating any
threats by minimising the potential for information
to be extracted from our environment.
Threat-informed defence helps us shape,
assess, prioritise and measure the
effectiveness of our approach.
We have controls in place to mitigate the risk of
loss or inappropriate use of data and systems,
with layers of protection for our data assets.
Our Development, Security and Operations
(DevSecOps) teams work together to build
security considerations into our products
throughout their lifecycle – from concept to
coding, build, quality assurance and production.
Our Cyber Fusion Centre, with teams located
globally to provide continuous coverage,
identifies and responds to suspicious or
malicious activity. If a threat is identified,
our incident response team follows defined
response procedures with support from
our in-house forensic team and external
experts as needed. Depending on the severity of
an incident, escalation procedures may include
notifications and disclosures to meet applicable
regulatory and contractual requirements. We
also conduct simulated exercises to prepare
our cyber security teams and senior leaders on
how to respond in the event of a breach and to
identify opportunities for improvement.
We interact with law enforcement authorities
and others in our industry to gather intelligence
to help our security teams stay ahead of
evolving cyber threats. We also share our
knowledge where appropriate to help other
businesses and consumers keep their data
safe, including through participation in industry
forums that share cyber threat and attack
information, and publication of our annual Data
Breach Industry Forecast on emerging threats.
The 2024 Forecast highlights how the threat
environment is growing more complex, with
more advanced and sophisticated threat actors.
As a result, it is becoming increasingly difficult
to ensure that a security breach or incident will
not occur.
Data breaches may occur when a vulnerability
in the environment is exploited. We use a
defence-in-depth approach – the deployment of
layered countermeasures to achieve security
objectives – to protect, respond and recover
from attacks. Examples of procedures and
mitigating controls include: controls at the
perimeter of the technology environment to
identify and/or block malicious traffic
attempting to enter the network; identity and
access management procedures to authorise
and grant access under the principle of least
privilege, and to authenticate the entity
requesting access; and vulnerability
management processes, such as patching and
secure coding techniques, to prevent and
remove coding flaws and misconfigurations.
We log security actions and flag those that meet
certain criteria or patterns, indicating potential
malicious activity, for analysis and further
review if warranted. We also conduct periodic
risk assessments, and our operations are
subject to multiple external cyber security
audits annually.
61
Experian plc
Annual Report 2024
Strategic report
In the event of a reportable breach, we would
disclose information about the incident and
commit to contact any affected data subjects in
a timely way. We do not publicly disclose
vulnerabilities, lapses or other characteristics of
our technology environment that could be used
by a threat actor to do harm. To the extent that
any relevant regulator should find fault with our
data breach management or data security
practices, they will publish their findings and
any related sanctions.
Security governance
The Chief Information Security Officer has
overall responsibility for Experian’s global
security strategy and reports quarterly to the
Audit Committee. The senior management
team is responsible for determining the current
and long-term direction of the security
programme, and for managing day-to-day
operations.
Experian uses a Three Lines of Defence model
for risk management (see page 93), which
includes regular reviews by Global Internal
Audit with oversight from the Audit Committee.
All three lines work to improve our assurance
capabilities and test the effectiveness of our
security programme.
Experian has multiple committees responsible
for identifying and managing risk, including the
Security and Continuity Steering Committee
(SCSC), which is chaired by the Chief Executive
Officer, with the Chief Financial Officer serving
as the deputy chair. The SCSC monitors the
emerging threat environment and oversees
management of global information security,
physical security, and security continuity risks
consistent with Experian’s risk appetite,
strategies and objectives. Key risks and
operational performance metrics are reported
to the SCSC, with regular reviews at regional
and global level.
The SCSC meets formally at least quarterly, or
more frequently if required, to review
governance matters regarding security
strategy, policy, risks or threats. Significant
risks, events and issues are escalated to the
Executive Risk Management Committee and
reported to the Audit Committee and the Board
as appropriate. Board-level governance of data
security is reinforced by including this topic as a
standing item at Audit Committee meetings.
See page 92 for more on Experian’s risk
management governance structure and our
approach to identifying and managing risk.
We continually review, adapt and improve our
information security programme, tools,
expertise and processes to respond to evolving
threats and align with external standards. We
seek and receive third-party assurance through:
certifications of key business areas and
systems with standards, such as ISO 27001 and
Payment Card Industry Data Security Standard
(PCI-DSS); external accreditations of our
security programmes, such as annual SOC2
reviews of system and organisational controls;
and regional or country-specific certifications
and accreditations, such as Cyber Essentials
Plus in the UK.
Managing third-party risk
We recognise that external parties may
introduce risks into the environment. While
these risks cannot be eliminated entirely, we
have defined processes for managing risks
associated with acquisitions and with suppliers
or other third parties.
Experian’s governance of mergers and
acquisitions includes due diligence to identify
potential security risks and remediation actions
as part of the acquisition process. Follow-up
assessments of security risks are conducted by
second and third lines of defence as part of the
integration of the acquired company into the
Experian environment.
Our information security standards are
extended to our suppliers and partners through
the terms of our contracts. In line with
third-party security requirements, we stratify
risk for all third parties before they begin
working with us. Those identified as high risk
are subject to additional due diligence and we
follow up to ensure any necessary remediation
actions are completed before services
commence. Security requirements are tiered
based on the results of these risk assessments
and can include increased controls for
higher-risk third parties.
When it is necessary to provide third parties
with access to our data and systems, access is
provided in line with our information security
requirements. Existing third parties are
assessed periodically based on risk and we
work with them to drive improvements in their
security posture by monitoring compliance
through our third-party risk management
framework.
Our information security culture
At Experian, information security is everyone’s
responsibility. Our senior leaders set the tone
from the top, and we have policies and
processes in place to help embed a strong
security culture throughout the business.
Information security is a key element of our
Global Code of Conduct and we set out clear
requirements for employees through detailed
internal security policies. Employees, and
contractors who access our systems, must
complete mandatory information security
training when they first start working with us
and annually thereafter as part of our security
awareness training programme. We track
training completion rates annually.
We offer over 250 training courses for people
across the business to find out more about
keeping information safe across various web,
mobile and desktop platforms, applications and
software. More than 50,000 courses were
completed this year.
Promoting vigilance against phishing attacks
remains a priority. We carry out periodic
phishing awareness campaigns and conduct
advanced training for employees in roles most
likely to be targeted by phishing attacks. We
provide additional role-based training for people
working in higher-risk areas, such as product
and software development. We routinely refresh
our training in light of evolving risks and
circumstances, as well as keeping our people
up to date through awareness activities on
specific information security topics.
Accuracy
Accurate credit reports, built on accurate data,
are essential to enable lenders to give people
fair access to credit. We constantly strive to
improve the accuracy of our data to ensure we
provide clients with information that represents
consumers and businesses as accurately and
fairly as possible to help them make
appropriate decisions.
We have strict processes for data accuracy
– from sourcing accurate data in the first place
to monitoring and improving accuracy over
time, and resolving reported inaccuracies or
information queried by consumers. Our focus is
on the timeliness, accuracy and completeness
of the data we hold and the reports we provide
to our clients.
Chief Data Officers from our regions lead
efforts to embed a strong data accuracy culture
across Experian. They meet regularly to share
insights on emerging risks and opportunities,
align on data governance best practices, and
drive innovation to continuously improve data
integrity and accuracy for consumers and
businesses.
Sourcing accurate data
All our data comes from reputable sources, and
our quality control procedures help us identify
and remove inaccurate or out-of-date
information before we add it to our databases.
In our major credit markets, we offer software
and analytics tools to help data providers check
data before they submit it to us and drive
continuous improvement by regularly reviewing
and reporting back on the quality of the
information we receive. If data providers are
unwilling to implement improvements to meet
our standards, we will no longer source data
from them.
Sustainability
continued
Experian plc
Strategic report
62
SPOTLIGHT
Monitoring and improving data accuracy
We apply further quality assurance techniques,
including screening for logical inconsistencies
and applying data-matching algorithms, before
providing data to our clients. We also monitor
queries received directly from consumers to
rectify inaccuracies and identify trends relating
to data quality.
We frequently update and periodically audit the
information in our databases and we make it a
priority to rapidly resolve any conflicts or errors
that are likely to have a material impact on a
consumer’s credit score.
Empowering consumers to correct their data
We empower people to correct, restrict and
delete data, where appropriate. We provide
consumers with various methods to view their
credit information and request corrections if
needed.
Agents in our UK and US support centres are
trained to help consumers with questions,
concerns or disputes about information in their
credit file or other personal data we hold that
might be processed for other purposes, such as
the provision of marketing services to our
clients. Our websites in Brazil, the UK and the
USA – our three main consumer credit bureau
markets – make it easy for people to raise a
query about credit information and get it
corrected quickly.
Where applicable, we pass on consumer
disputes to the data provider to evaluate and
confirm the accuracy of the disputed data and
the entire account. Once a dispute is resolved,
we update data as required and notify the
consumer of the result. If the data provider fails
to respond within the allotted time, we either
delete or suppress the item until a response is
received so it does not affect the consumer’s
credit report.
Many of our products also empower consumers
and businesses to check for any inaccuracies in
their financial profiles and take steps to protect
their data. These include options to receive
alerts if new searches are made in their name,
and to easily lock or unlock their credit report to
help reduce the risk of identity theft and fraud.
In the UK and the USA, we have processes that
enable people who identify as transgender or
non-binary to update their name and suppress
their birth name (or ‘deadname’) so it does not
appear on their Experian credit report, which
can unintentionally ‘out’ the consumer or force
them to establish a new credit history.
We evaluate every product and service to
ensure we strike the right balance between
consumers’ privacy expectations and the
economic benefit to consumers and clients, as
well as considering societal benefits. Our
comprehensive data protection programme
details the steps we take to mitigate data
protection risks, and what we expect from our
employees.
We are committed to obtaining, processing,
using and retaining data responsibly and
compliantly – and to only sharing data with
authorised and trusted organisations, always in
line with strict guidelines and in compliance
with all relevant laws.
We take fair and appropriate measures when it
comes to data retention, adhering to national,
state and federal regulations in locations where
we operate. We have strict processes to
appropriately manage the lifecycle of data we
hold and to allow appropriate access to data, as
well as deletion and correction of data, when
requested by the individual data subjects in
each of our markets. We communicate details
on retention and privacy through our websites.
We also embed the concept of privacy by design
into the data lifecycle to ensure that we are
using only the minimum amount of personal
data needed for a specific purpose.
In many parts of the world, regulations on data
privacy set clear requirements on the way data
is collected and used, and how consent is
gained from consumers.
Fairness
We are committed to collecting and using data
fairly and for legitimate purposes and
complying with regulations on data lifecycle
and retention in the markets in which we
operate. We carefully balance privacy
expectations with the social and economic
benefits derived from the responsible use of
data for individuals, businesses and clients.
Our privacy policies, which vary by country or
region in line with regulatory requirements, are
underpinned by our commitment to provide
consumers with notice, choice and education
about the use of personal information. Educated
consumers are better equipped to be effective,
successful participants in a world that
increasingly relies on the exchange of
information to deliver relevant products and
services efficiently.
Lenders need access to accurate information
about people’s financial profiles from Experian
or other credit bureaux. Such information is
integral to an efficient and competitive credit
ecosystem that provides innovative products
which enable consumers to get the most out of
their data, contributes to economic growth and
supports a stable consumer banking system.
Our Marketing Services business also gathers,
analyses, combines and processes data to help
organisations better understand consumers so
they can offer them relevant products and
services, and communicate more effectively
and at the right time.
Our responsible approach to GenAI
Generative Artificial Intelligence (GenAI) refers to
Artificial Intelligence systems that can be used to
create new content or process unstructured data,
including audio, code, images, text, simulations and
videos. It offers opportunities for businesses to
drive productivity, enhance products and
personalise services.
At Experian, we support the responsible use of
GenAI to accelerate new product offerings, drive
operational productivity, increase financial
inclusion and foster an adaptive approach towards
technology.
As we explore ways to incorporate GenAI, we are
applying our Global Data Principles by adopting
appropriate controls to safeguard access to data,
maintain data privacy and fairness, and ensure
compliance with existing and emerging regulations
in this area.
63
Experian plc
Annual Report 2024
Strategic report
We regularly review our data processes to
ensure compliance with regulations, such as
the UK Data Protection Act 2018, UK and
European Union General Data Protection
Regulations (GDPR), the California Consumer
Privacy Act (CCPA) and other US state laws, and
the Brazil General Data Protection Law (LGPD).
Data offers huge potential to support jobs and
prosperity. We need a regulatory framework
that nurtures and supports use of data to
encourage growth, while protecting consumers’
privacy. We respond to government
consultations and engage with regulators and
policy-makers as privacy regulations and
guidance evolve, for example on the
implications for privacy in relation to use of
Artificial Intelligence (see page 63). Many
regional and national regulations on data
privacy share common principles, and we
advocate for interoperability to support global
commerce.
Our Group Operating Committee and senior
leaders receive regular briefings to keep them
apprised of privacy developments around the
world, and we update our policies and practices
accordingly.
In 2020, the UK's data protection authority, the
Information Commissioners Office (ICO) issued
an enforcement notice against the marketing
services business of Experian Limited. We
successfully appealed to the First Tier Tribunal
(FTT) a final enforcement notice from the 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.
Transparency
We strive to be open and transparent about the
types of data we collect from consumers and
third parties, where we get it, how it is used and
where it is shared. Where appropriate, we
provide individuals with access to the data we
collect about them and give them the ability to
correct, restrict and delete data.
Data transparency not only empowers
consumers, it also benefits our business. For
example, our marketing services are more
effective for our clients when more people
understand their ability to set their marketing
preferences, as this means fewer people
receive unwanted marketing to which they
would not be receptive.
In Brazil, our user-friendly privacy webpage
explains the consumer contract in simple,
accessible language before the user logs in.
We also provide consumers with illustrations
of what their positive data means, to help
them understand how it affects their overall
financial health.
In the UK, our website provides privacy policies
for different parts of the business. Our
Marketing Services Consumer Information
Portal explains data rights and sets out the
various ways we use personal and anonymised
data. It enables individuals to find out what data
we hold about them, where this data comes
from and how it is used, and to easily opt out of
targeted marketing if they choose. People can
also check our Mosaic classification for their
postcode to get an at-a-glance view of
attributes that contribute to their marketing
profiles, such as property, transport, lifestyle
and holidays.
In the USA, we set out our privacy policies for
specific products and services on our website.
We have adopted at national level the privacy
standards set by individual state laws to enable
US residents across the country to exercise
their privacy rights, including managing
personal data that is collected under these laws
through the Central Consumer Consent
platform (C3P). US consumers can also access
the credit information that Experian holds on
them in various ways. If they sign up to a free or
paid Experian membership, they are presented
with a report showing the data we hold on them
and how to dispute this information online if
needed. Our US credit reports also include
Credit Report Insights with infographics,
colour-coding and easy-to-interpret
explanations of the factors contributing to a
consumer's credit status or score.
In addition, we work with financial institutions
to enhance transparency with consumers. In
the UK, lenders direct consumers applying for
credit to an industry-standard Credit Reference
Agency Information Notice, which presents
consistent information explaining how credit
reference agencies use and share personal
information in a clear, accessible format. In the
USA, credit data users issue an adverse action
notice to a consumer when taking any action
related to credit, insurance or employment that
adversely affects them based on their credit
report. The notice informs the consumer of the
data used for the decision, their right to review
their credit report free of charge, and how to
contact the credit reporting agency.
Inclusion
We enhance financial inclusion by using data to
create insights that help lenders offer fairer
access to credit to more people.
Our aim is to help more people get better
access to credit by sharing relevant data with
lending organisations, including adding
alternative sources of data, such as positive
data about on-time payments of utility bills and
subscription services.
Financial inclusion is a key pillar of our Positive
Social Impact Framework, which supports our
ambition to help people thrive on their financial
journey (see page 59).
Read our Power of YOU report on driving
social impact and diversity, equity &
inclusion* for more on our inclusive
approach, products and partnerships
for our people, our clients and consumers,
and communities
*
https://ex.pn/powerofyou2024
Sustainability
continued
Experian plc
Strategic report
64
1. Creating a 'people first' culture
Our people and unique culture are key
differentiators for Experian. Our mission is to
unlock the power of data and technology to
improve our world. We want every team
member to bring their whole self to work to
help us achieve this. Our exciting future and
strong purpose to create a better tomorrow
helps us to attract people who want to work
somewhere they can make a difference.
We aim to be recognised as a leading employer.
This year, we have enhanced perceptions of
Experian as an innovative technology
organisation, outperformed competitors in
Glassdoor scores on culture and values, and
achieved recognition in a range of other
external rankings, awards and accreditations
(see below).
Engaging our people
Our listening strategy helps us to understand
our people's views, spotlight best practice and
identify opportunities to improve employee
experience. We listen to our people via the
annual global Great Place to Work (GPTW)
survey, as well as regular pulse surveys on key
strategic areas. In FY24, 83% of our employees
participated in our third annual GPTW survey,
up from 70% the previous year, showing an
increased appetite from people to share their
views. Overall engagement increased by one
point to 83% and we saw promising
improvements across a range of categories.
This year, we expanded our Leadership
Exchange platform to support people leaders in
improving their teams’ experience. That support
included suggestions for targeted action
planning based on their survey scores,
guidance on how to have an effective follow-up
conversation with team members and
examples of best practice from leaders across
the organisation.
Our employer brand and distinctive employee
value proposition underpins perceptions of
Experian as a tech employer and employer of
choice, both internally and externally. Based on
our ongoing efforts and our GPTW 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. In addition, Experian was
again included in the Fortune 100 Best
Companies to Work For.
In FY24, Experian achieved a rating of 4.3 out of
5 stars on Glassdoor, beating the average score
of 3.75 and ranking above leading technology
organisations. Experian has been recognised in
both the Top 50 UK and Top 100 US Glassdoor
Best Places to Work 2024 lists.
Inspiring and supporting our people
Our people are central to our purpose. Our aim is to be a market-leading
destination for talent, underpinned by a 'people first' culture where every team
member feels valued and able to do their best work in support of our purpose
and our ambitious plans for growth.
Over the past three years, we have been
building foundations to better align our
people agenda across the business globally,
and fulfil our ambition to be one of the best
places to work in the world. We continue to
make progress in our five focus areas
across the Group:
1. Creating a 'people first' culture
Create a 'wow' employee experience that
sets us apart.
2. Growing world-beating leaders
Grow the next generation of leaders with
strong product, technology and client and
customer orientation.
3. Focusing on tech talent
Keep in tune with current and future tech
skills, specifically focusing on attracting and
retaining product-design and product-
building capabilities.
4. Future-proofing our organisation
Play a leading role in defining the
organisation we need, so we are prepared
for global opportunities and growth.
5. Supporting colleagues with their career
development
Enable everyone in Experian to develop and
progress their careers.
Awards and accreditations
65
Experian plc
Annual Report 2024
Strategic report
Gender diversity metrics and targets
Representation of women
FY21
Actual
FY22
Actual
FY23
Actual
FY24
Actual
FY24
Goal
FY27
Goal
Senior Leaders
1
32%
33%
34%
35%
40%
40%
Mid-Level Leaders
35%
36%
36%
37%
42%
41%
Total workforce
1
44%
44%
44%
45%
47%
48%
Board
2
36%
36%
45%
45%
1
These percentages are based on a total of 22,500 employees globally, of whom 1,055 are senior leaders.
2
Percentage of 11 Board members. See page 109 for more details.
We communicate our strategy and ensure our
people are continually updated on key initiatives
which are underway. Senior leaders regularly
talk to people through a number of different
forums. This year we introduced a new and
improved version of Horizon, our market-
leading employee communications platform,
which continues to be popular, with 94% of
employees registered and 93% regularly active
since it was rolled out in August 2023. We
encourage our people to contribute their ideas
through our global hackathons (see page 59)
and to get involved in our community
investment programmes by volunteering
their time and skills (see page 60).
Work that works for our people
Our inclusive culture allows people to have
flexible work patterns that ensure commitments
outside of work can be met. We offer a range
of working options including our Hub, Hybrid,
Home and Roam options. This approach is
underpinned by our belief that balance brings
long-lasting benefits for our business as well
as our people.
In our FY24 GPTW survey, 93% of our people
said that flexible ways of working enabled them
to work productively and 91% agreed that
flexible ways of working enabled them to
collaborate effectively.
Celebrating our people
In FY24, we recognised employees with over
30,000 awards celebrating Experian Way
behaviours (see above) based on nominations
by their colleagues.
Embracing diversity, equity and inclusion
Our diversity, equity and inclusion (DEI) strategy
focuses on our people, clients and consumers,
and communities. DEI is essential to our
purpose of creating a better tomorrow, together,
by making positive changes in the world and
supporting efforts to close the financial wealth
gap of underserved communities.
The Experian Way represents our values, and the behaviour we expect
from all our employees in their daily activities.
Delight
customers
Innovate
to grow
Co
llaborat
e
to win
Sa
feguar
d
our future
Value
each other
We support and encourage expressions of
diversity, including thought, style, sexual
orientation, gender identity or expression, race,
ethnicity, disability, culture and experience.
For our people, our DEI strategy aims to evolve
and develop processes and programmes that
will increase diversity at all levels of the
workforce, create an all-inclusive workplace,
and support a culture of belonging that enables
our people to speak their truth, feel valued and
bring their whole selves to work.
The strategy is led by our Global Chief DEI and
Talent Acquisition Officer, and regional CEOs
and business unit leaders are accountable for
implementing diversity action plans and
monitoring progress at quarterly business
reviews. DEI is also part of our wider sustainability
strategy and ESG agenda, overseen by our
executive-level ESG Steering Committee.
Our Power of YOU Report sets out how we are
putting our DEI strategy into practice, including
reporting progress towards specific
commitments for FY24. DEI highlights for our
people this year include:
• Offering training to support a unified global
DEI learning experience to all our senior
executives, human resources team and
people leaders.
• Creating a new global hub, known as Iris,
to promote engagement in our employee
resource groups (ERGs) that strengthen
a sense of belonging at Experian by giving
people spaces to embrace and celebrate
their identities, affiliations and interests with
colleagues. Since the launch of Iris in June
2023, global engagement in our ERGs has
surged. More than 2,300 employees are now
members of at least one ERG, with total ERG
memberships surpassing 5,000, which is
higher than any past year.
• Continuing to champion five key areas of
diversity (gender, mental health, disability,
LGBTQ+ and ethnicity), each sponsored by a
member of our Group Operating Committee,
through a wide range of global and regional
activities and partnerships.
In FY24, representation of women continued
to increase at all levels of the business – to 35%
of our senior leaders, 37% of our mid-level
leaders and 45% of our total workforce.
However, we have fallen short of our ambitious
gender diversity targets for FY24 (see the table
below) and will continue our efforts to recruit
and develop women to support progress
towards these goals. In our US business,
representation of Black and Hispanic/Latino
employees remained steady at 17.3% in FY24
as did Asian representation at 20.4%.
Find out more:
Read our Power of YOU
Report: Driving Social Impact and Diversity,
Equity & Inclusion*
*
https://ex.pn/powerofyou2024
The Experian Way
Sustainability
continued
Find out more:
See our website for The Experian Way in full
Glassdoor score of 4.3 (out of 5)
Experian plc
Strategic report
66
2. Growing world-beating leaders
Our leaders play a critical role in ensuring
our people understand Experian’s strategy,
achieve their goals and contribute to the
success of our business. In the FY24 GPTW
survey, our leadership effectiveness score
increased by two points to 84% year-on-year,
and has improved by five points since 2021
as we continue our focus on growing the
leaders we need now and in the future to
support our business as it evolves.
The ‘Characteristics of Great Leadership’ that
we introduced last year are now integrated into
our hiring, assessment and development of
leaders. These characteristics underpin the
learning content we provide on our Leadership
Exchange, an online portal with access to
on-demand development and support.
This year, more than 74% of our leaders
have used the Leadership Exchange, which
includes resources to help them drive
engagement, deliver high performance and
translate business goals into team goals.
In FY24, we reviewed and refreshed our
leadership programmes to focus on the skills
our leaders need to deliver our business
strategy. We have launched a new AI-powered
leadership coach to give leaders support and
live coaching, whenever they need it, in multiple
languages. This covers topics such as
goalsetting, preparing feedback and
role-playing challenging conversations. GenAI
creates the opportunity to give leaders realistic,
personalised development with real-time
feedback while also allowing us to scale up
solutions and democratise development further.
Our CEO Forum has been redesigned and
relaunched this year. The programme targets
top leaders within Experian who are being
considered as future succession candidates for
a Group Operating Committee role. Through
self-awareness, collaboration and insights from
our top leaders, this programme is designed to
instil new mindsets and leadership skills to help
these leaders shape Experian’s future and
evolve our culture.
3. Focusing on tech talent
We are a leading employer in the technology
sector and this year we continued to provide
access to training resources for our tech talent
through the Pluralsight and DataCamp online
platforms. The new Experian University, part
of our Career Hub, includes specific academies
that provide learning resources on the Cloud
and GenAI.
We have also begun rolling out a careers
framework specifically for people working
in product development roles.
To support the evolving needs of our business,
we have created a global talent acquisition
team to focus on recruiting tech talent across
the Group to enable us to hire quickly, bring in
a consistently high level of talent, and enhance
the hiring experience for candidates and
managers.
A team of global talent scouts will now focus on
building talent maps and identifying suitable
engineers, sales and product leaders to support
our business.
4. Future-proofing our organisation
We have enhanced our approach to managing
succession and talent development through
regular reviews with each of our regions and
functions to understand the health of our
current succession plans, manage risks and
develop our talent pipeline.
Reviews this year demonstrated that our
succession health is strong. Attrition rates are
low among our executives and senior leaders,
and our internal fill rate is high with the
majority of executive roles filled from within
Experian in FY24. As part of our succession
planning, we have robust processes that ensure
we factor in diversity of our current and future
populations.
In addition, we continue to provide support for
employees who have recently been promoted
into leadership roles, as well as ensuring future
successors have a clear development plan that
we track regularly.
5. Supporting colleagues with their
career development
We have made great strides in improving
learning opportunities for our people, including
through our Career Hub, a digital curriculum
for our people and a one-stop shop for career
development needs.
In the FY24 GPTW survey, 80% of employees
agreed that they are developing professionally
at Experian. Among people in tech roles
specifically, where we have placed a strong
focus on training resources, satisfaction with
learning and development opportunities
increased by 12 points since the FY22 survey.
We promoted opportunities at Experian through
our Global Careers Week in February 2024,
inviting people to ‘Discover what’s possible’.
Around 5,000 employees attended sessions
during the week and on average each participant
attended three live sessions. Those attending
scored the event an average of 4.8 out of 5
and we achieved a Global Careers Week
Net Promoter Score of 83.
Our Early Careers programmes are now
established in North America, Brazil and the
UK and Ireland, as well as in our Global Delivery
Centres in India (Hyderabad) and Malaysia.
Our Leadership Exchange: an online portal
with access to on-demand development
and support.
Our Career Hub: a digital curriculum for our
people and a one-stop shop for career
development needs.
67
Experian plc
Annual Report 2024
Strategic report
The Experian Global Code of Conduct sets out
clear guidance to help everyone at Experian
understand what is expected of them to
help us live up to our high ethical standards.
We regularly review the Global Code of Conduct
to determine if updates are required, with the
latest edition approved by the Board in FY24.
The Global Code of Conduct is supported by
detailed policies at global, regional or country
level on specific topics such as anti-corruption,
conflicts of interest, data privacy, fair treatment
of vulnerable consumers, fraud management,
gifts and hospitality, product development and
marketing, security, tax, third-party risk
management and whistleblowing.
Our commitment to doing business responsibly
includes our approach to tax affairs, as detailed
in our annual Tax Report. Our Tax Report sets
out our Tax Policy, how we manage and govern
tax, how tax fits into our broader ESG agenda,
our regional corporate tax payments and the
total tax contributions we make in our largest
markets.
Anti-bribery and corruption
We take a zero-tolerance approach to bribery
and corruption, reinforced by our Global Code of
Conduct and Global Anti-Bribery and Corruption
Policy. We prohibit anyone acting on behalf of
Experian – including employees, third parties
and suppliers – from offering or accepting a
bribe, or making a facilitation payment to
officials, in connection with our business.
Our Global Gifts and Hospitality Policy sets
out strict ethical standards relating to gifts,
entertainment, hospitality, sponsorship and
donations. We also have controls to ensure
we conduct any sponsorships, charitable
contributions, lobbying or political donations
ethically and in compliance with all
relevant laws.
Working with integrity
Working with integrity is one of our core values.
Scan me
To view our policies and
statements, including our Global
Code of Conduct
Scan me
To view our 2024 Tax Report
Suppliers are contractually obliged to ensure
their employees, agents and subcontractors do
not pay or receive bribes, facilitation payments,
gratuities or kickbacks. If we identify any
suppliers as high risk for bribery or corruption,
we refer them to the Compliance team for
further due diligence, including an assessment
of corruption, regulatory and reputational risks.
We conduct periodic assessments to check for
and mitigate corruption risks as part of our
Compliance Management Programme. We also
follow rigorous due diligence procedures to
identify any risk of improper payments during
mergers and acquisitions, or when we enter
into joint ventures.
Our Finance and Global Sourcing teams have
training and controls to detect and stop
improper payments, with support from our
Global Internal Audit team. If we identify any
concerns, we promptly investigate them and
take appropriate action.
Training and compliance
We strive to create a culture of integrity that
empowers our people to make the right
choices. Our Global Code of Conduct clearly
states that everyone at Experian is accountable
for managing risk across our business to
effectively safeguard our future. The latest
edition, available in several languages, includes
interactive features to reinforce knowledge by
clearly explaining why each topic matters and
how to do what is right.
All employees (including part-time employees
and contractors) must confirm they have read
and understood our Global Code of Conduct
when they first join Experian, then they reconfirm
their commitment to it every year. We make
sure they do so through our performance
review process, as well as expecting managers
to be role models for ethical behaviour.
Speaking up when we have questions or
concerns is a central tenet of our Global Code
of Conduct, and anyone who knows about
a potential violation, and does not report it,
could face disciplinary action.
We enable people to report any suspected
policy breach or unethical activity without fear
of reprisal by talking to their manager or
reporting any concerns, anonymously if they
choose, through our externally-facilitated
24-hour Confidential Helpline. The Helpline
is open to both employees and third parties,
and provides support in local languages.
We take any allegations of ethical breaches very
seriously. All reported concerns are investigated
promptly by relevant functions, such as Human
Resources, our Global Security Office or our
Global Fraud Investigations team, to identify
root causes and take appropriate corrective
action. This year, 134 concerns were reported,
87% of which related to human resources
matters. Following investigations, 29% of cases
were found to be substantiated, with 20 cases
leading to disciplinary action and eight cases
to dismissal.
Respecting human rights
We are committed to upholding the United
Nations' Universal Declaration of Human Rights
(UDHR), the United Nations' Guiding Principles
on Business and Human Rights (UNGP), the
International Labour Organization (ILO)
Standards and the Organisation for Economic
Co-operation and Development (OECD)
Guidelines for Multinational Enterprises.
Our commitment to respecting and promoting
human rights is reflected in our Global Code
of Conduct, with further guidance detailed in
compliance policies and our public statement
on salient human rights.
We have identified, and reconfirmed through
a review in FY24, the following salient human
rights for Experian: healthy and safe working
conditions; workplace security; freedom of
association; diversity, equity and inclusion;
absence of modern slavery and forced labour;
access to grievance mechanisms; data
protection and privacy; environment and carbon
emissions. Our statement on salient human
rights sets out our approach to each of these.
We recognise that other human rights issues
may become relevant to Experian in the future
and we review our salient issues regularly,
based on best practice.
We are committed to treating all our people fairly
and with respect. Experian is an accredited
Living Wage employer in the UK, going beyond
the legal minimum wage to pay employees
the amount the Living Wage Foundation has
calculated to support a reasonable living. As set
out in our Global Code of Conduct, we respect
and support the rights of all employees to
freedom of association, and comply with all
laws and regulations regarding such rights.
Sustainability
continued
Experian plc
Strategic report
68
Scan me
To view the supplier diversity
website
DEI remains a key focus for Experian, not only
in relation to our people (see page 66), but for
our clients, consumers and communities – by
closing the financial wealth gap of underserved
communities through our focus on improving
financial health (see page 59). We are a signatory
to the United Nations' Women’s Empowerment
Principles and our commitment to DEI received
further recognition this year. The Power of YOU
report on driving social impact and diversity,
equity and inclusion provides more information
on our strategy and performance in this area.
Our Supplier Code of Conduct sets out clear
standards on human rights, in line with the
ILO Standards, and we include clauses in our
contracts that oblige suppliers to protect
workers’ rights and freedoms. We monitor
compliance through our third-party risk
management framework. We also expect
suppliers to set similar requirements for their
own suppliers and subcontractors, to extend
high standards throughout the supply chain.
Tackling modern slavery
Experian is a founding member of the
Slave-Free Alliance (SFA), which brings together
businesses working towards a slave-free world.
Three-yearly assessments by the SFA help us
identify opportunities to improve our approach
to tackling modern slavery risks in our business
and supply chain. A quarterly steering group,
headed by our Group Chief Procurement Officer,
reviews and tracks progress.
We undertake an annual assessment of
high-risk suppliers to ensure they have policies
and procedures in place to minimise the risk of
modern slavery. In FY24, we conducted on-site
visits to speak to workers – including cleaners,
kitchen staff and receptionists – from our
facilities management services providers at
12 of our sites across the globe to gauge their
understanding of modern slavery and the signs
to look out for. We found varying levels of
understanding which will be addressed in FY25.
Our Modern Slavery Statement provides further
information on our commitment, policies and
actions to tackle modern slavery risks in our
business and supply chain.
We also continue to contribute to wider efforts
to tackle modern slavery. This year, we partnered
with NGO Hope for Justice to support pathways
to wellness and financial independence for
survivors of human trafficking in North
Carolina, a US hotspot for human trafficking.
In the UK, we added new data inputs to our
modern slavery vulnerability mapping tool to
help anti-slavery organisations understand
where to target their resources, and we worked
to identify companies set up by people previously
investigated for human rights or modern
slavery abuses to help mitigate risks in their
new companies.
Working with suppliers
Our Supplier Code of Conduct sets out the
ethical, labour, human rights and environmental
standards that all our suppliers must meet and
encourages suppliers to speak up about any
concerns via their Experian contact or our
Confidential Hotline. This year we have
re-written and significantly expanded it,
highlighting our suppliers' role in supporting
our broader ESG commitments as well as
including our own commitments to suppliers.
As part of their contracts with us, all suppliers
must confirm they accept our standards or
have their own equivalent standards in place.
ESG criteria are integrated in our supplier
selection process alongside commercial
considerations, including requirements for
satisfactory governance of areas, such as
bribery, corruption and modern slavery, that
are built into our review processes. This year,
we introduced new sustainability requirements
as part of our engagement with suppliers to
support progress towards our Scope 3 target
(see page 75).
We stratify the risk of all the third parties we
work with, including suppliers and indirect
clients. Overseen by our Third Party Risk
Management team, we assess risks related to
data security and privacy, business continuity,
compliance and reputation (including bribery
and corruption). We will not work with – and
routinely reject – third parties that do not
uphold our standards on critical issues, such
as data security.
Of the thousands of third parties we work
with, most fall into the minor or moderate
risk category in our initial risk assessment.
Those we consider higher risk – based on
factors such as the type of product or service
they provide and the type of data they have
access to – are subject to more in-depth
assessments, oversight and controls.
As our first line of defence, the business
function that has the relationship with the
third party is responsible for identifying,
tracking and resolving any issues. We test our
controls regularly, logging and resolving any
issues identified through our centralised global
governance, risk and compliance system.
In addition to setting out our expectations of
suppliers, our Supplier Code of Conduct also
sets out our commitments to treat all suppliers
fairly, and promote diversity and inclusion in our
supply base. We strive to support diverse
suppliers through our strategic sourcing
process, which is designed to offer a level
playing field for all third parties, and by
encouraging suppliers to register as a diverse
supplier if appropriate. Our supplier diversity
website informs potential suppliers in North
America of our approach to supplier diversity
and invites diverse suppliers to register with us.
We also partner with organisations to help us
develop relationships with more registered
diverse and small business suppliers. In the
USA, we work with organisations such as
Disability:IN, the National Minority Supplier
Development Council, the National LGBT
Chamber of Commerce, the National
Veteran-Owned Business Association, the US
Small Business Association and the Women’s
Business Enterprise National Council.
This year, we partnered with NGO Hope for
Justice to support pathways to wellness
and financial independence for survivors
of human trafficking in North Carolina,
a US hotspot for human trafficking.
69
Experian plc
Annual Report 2024
Strategic report
As an information services business, our most
material environmental impact is the carbon
footprint of our operations and value chain.
The Task Force on Climate-Related Financial
Disclosures (TCFD) statement (on the right)
sets out our commitment to mitigating
climate-related risks and harnessing
opportunities for our products and business
to support wider climate action, in line with
the recommendations of the TCFD. We also
monitor and manage other environmental
impacts (see page 73).
TCFD statement
The climate-related financial disclosures
set out on pages 70-76 of this report are
consistent with the TCFD recommendations
and recommended disclosures related to
TCFD categories on governance, strategy,
risk management, and metrics and targets.
Governance
The Board oversees our climate strategy,
including climate-related risks and
opportunities (as presented in this TCFD
statement), and progress towards our targets.
See page 116 for more on the division of
responsibilities across the Board.
The Group Operating Committee receives
regular updates on our climate action plan,
including progress on strategic drivers to
address climate-related issues, such as our
science-based target, the development of our
Net Zero Transition Plan (see page 74) and
our TCFD reporting.
The ESG Steering Committee, chaired by the
Chief Financial Officer, has overall responsibility
for assessing and monitoring the management
and performance of all areas of ESG, including
climate-related risks and opportunities. Climate
items addressed by the ESG Steering Committee
this year included progress on our Net Zero
Transition Plan, our Scope 3 target and supplier
engagement, as well as updates on relevant
legislation and reporting frameworks.
The Chief Sustainability Officer is responsible
at management level for ensuring successful
implementation of our climate plans and our
wider ESG strategy, with support from relevant
teams. See page 77 for more on our ESG
governance.
The Executive Risk Management Committee
and the Audit Committee review any significant
climate-related risks, before they are presented
to the Board. We also enter specific climate-
related risks into our environment management
systems at Group, country and site level, and
these become part of our Aspect and Impact
Register, with plans defined to manage the
risks, monitor performance and drive
improvements.
CDP Supplier Engagement Rating:
'A' rating
(Leaderboard)
Financial Times:
Experian has been named one
of Europe’s Climate Leaders for 2024 by
the Financial Times and Statista for the third
year in a row.
CDP Climate Change:
‘A-’ rating (Leadership
Band)
Risk management
We are committed to identifying, assessing and
managing risks and opportunities presented by
climate change, both now and in the future.
We manage climate-related risks – strategic,
financial, operational or regulatory – in the
same way as our other business risks, as
part of our overall risk management process
for the business (see page 93). We apply our
established four-step framework for managing
business risks – to identify, assess, respond to,
and report and monitor climate-related risks as
well as climate-related opportunities:
Step 1: Identification
We identify potential climate-related risks and
opportunities based on: TCFD guidance and
reviews; other relevant climate change
publications and data specific to the regions
where we operate; and a review of climate-related
risks and opportunities previously identified for
Experian or disclosed by peer companies.
Step 2: Assessment
We evaluate the materiality of identified risks
and opportunities at least once a year by
undertaking scenario analyses to assess our
exposure and vulnerability to climate change
risks and potential opportunities – in the short
term (pre-2025), medium term (2025-2030)
and long term (2030+) – and quantifying the
potential financial impact of each risk or
opportunity for our business (see tables on the
following pages). These timeframes have been
chosen taking into account the models already
used by our Strategy and Risk teams, as well as
the recognition that climate change is an issue
that spans beyond 2030.
Step 3: Response
We develop controls to mitigate or adapt to
identified risks, if these are not already in place, as
well as measures to capitalise on identified
opportunities. See more on our business
management response to specific risks and
opportunities in the tables on the following pages.
Step 4: Reporting and monitoring
Our process for reporting and monitoring
climate-related risks and opportunities within
the business, up to Board level, is part of our
overall ESG governance as described on page
77. We disclose our most material climate-
related risks and opportunities in our
Annual Report and our CDP response (available
on our online ESG reporting hub).
Protecting the environment
We strive to help tackle climate change and reduce our impact on the environment.
Sustainability
continued
External recognition in FY24
Scan me
To view our ESG Performance
Data on our online
ESG reporting hub
Experian plc
Strategic report
70
Strategy
We assess and disclose our most material
climate-related risks and opportunities across
our business in the countries where we operate
(see tables on the following pages).
Material risks are defined as those that have
the potential to have a significant effect on our
operations, strategy or financial performance
if they are not suitably controlled. Material
opportunities are those that have the potential
to enhance the financial performance of the
business.
We modelled our latest analysis on two
wide-ranging climate warming scenarios
that represent two different pathways:
• High-carbon scenario (4°C):
A ‘worst-case’
scenario of climate change where
governments fail to introduce policies to
address climate change beyond those already
in place, which projects global greenhouse
gas emissions (GHG) continuing to rise (based
on Representative Carbon Pathway, RCP8.5)
with the highest concentration of GHGs by the
end of the century. In this scenario, transition
risks are limited but there are significant
physical risks associated with rising
temperatures and weather extremes.
RCP8.5 is the scenario most widely used
by companies, governments, and academia.
This means a high availability of model
projections and studies to pull from, and also
allows for comparability. RCP8.5 assumptions
include high population growth, increased coal
burning, and a continued heavy reliance on
fossil fuels.
• Low-carbon scenario (1.5°C):
An ‘aggressive
mitigation’ scenario that sees early decisive
policies and action towards a low-carbon
economy sufficient to limit global warming
to 1.5°C by the end of the century. In this
scenario, physical risks are limited and
transition risks predominate. It is based on
the International Energy Agency’s
Sustainable Development Scenario, which
explores a pathway for bringing global
energy systems to Net Zero emissions by
2070. Following this pathway would limit
global warming to 1.8°C (with a 66%
probability) and would present the best
chance of limiting warming to 1.5°C by the
end of the century. The scenario assumes
a reduction of emissions to 10 billion tonnes
of CO
2
e by 2050, mostly stemming from the
transport and power sector, and driven by
technological progress and regulatory action.
We used these scenarios as they represent two
opposing pathways: one of rapid policy and
technological change that helps to limit the
extent of the physical impacts of climate
change, and one representing ‘worst case’
from a policy perspective such that rising
greenhouse gas emissions result in significant
physical climate impacts. We also selected
these scenarios because of their wide-ranging
scope, which aligns with the broad range of
geographies we serve.
Identified risks and opportunities this year
remain largely unchanged from previous
assessments, but we have updated estimated
potential financial impacts.
1
Climate-related
matters serve as an input into the Group’s
financial planning process and are factored
in as part of cash flow forecasts, residual
values, useful lives, and depreciation methods.
At present, there is no material impact of
climate-related matters on the Group’s financial
results. See page 181 for further details on the
climate considerations made in preparing the
Group financial statements.
1
Potential financial impacts are estimated based on plausible
projections and assumed ranges of causal events to indicate an
order of magnitude of financial impacts associated with specific
climate-related risks and opportunities. We aim to apply a strict
materiality analysis in future as we further refine our approach.
*
These estimates are provided to indicate an order of magnitude of financial impact only. These are not intended to be, nor should they be perceived as, predictions.
Type
Policy and legal
Risk and opportunity factor
Climate change regulations
Experian risk category
Operational and regulatory
Time horizon
Short term
Potential risks and opportunities
Risk: Increased operational expenses
(less than 1%* of annual revenue)
New laws, new interpretations of existing laws, changes
to existing regulations or heightened regulatory scrutiny
have the potential to affect how we operate. We could be
subject to penalties for non-compliance or see an
increase in operating costs to finance our efforts to meet
regulatory obligations. Enhanced obligations for climate
reporting could increase expenses associated with
emissions tracking, reporting and verification.
Business management response
We monitor, and engage legal experts on, regulatory and
industry developments. We have created new roles and
partnerships to help us understand and prepare for new
climate compliance obligations across our regions. Our
governance and assurance processes are designed to
help avoid any misstatements in external reporting.
Type
Policy and legal
Risk and opportunity factor
Carbon taxation
Linked metric:
Percentage reduction
to Scope 1 and 2 emissions from
2019
Linked target:
Reduce absolute
Scope 1 and 2 emissions by 50% by
2030 (from 2019)
See page 74 for further information.
Experian risk category
Financial and strategic
Time horizon
Short, medium, and long term
Potential risks and opportunities
Risk: Increased operational expenses
(less than 1%* of annual revenue)
Although our operations are not emissions-intensive,
implementation of external carbon pricing (such as
additional taxes on fuel, energy and aviation) to support
the transition to a low-carbon economy has the potential
to increase our operational expenses directly or indirectly
through increased supplier costs (primarily related to
energy). The magnitude of this risk is considered low
because, currently, electricity costs are less than 1%
of operating costs.
Opportunity: Reduced operational expenses
Further reductions in energy use and increases in
self-generation could reduce energy costs.
Business management response
Making progress towards our science-based Scope 1 and
2 reduction target – including through energy efficiency
measures and self-generation – helps mitigate risk
associated with potential carbon pricing in our direct
operations and our supply chain. Our supplier
engagement programme reduces exposure to carbon
taxation on Purchased Goods and Services, which make
up most of our value chain carbon footprint. We continue
to develop our Net Zero Transition Plan (see 74), in line
with the UK’s Transition Plan Task Force Disclosure
Framework, which will enhance emissions reductions
across the value chain in the medium and long term.
Transition impacts: Risks and opportunities arising from the process of adjusting to a low-carbon economy
Transition risks have the potential to impact any business. Our analysis however, has found that these risks have no material impact on our business in the
short term and will be unlikely to do so in the medium and long term. We are committed to mitigating the potential impacts by demonstrating strong climate
stewardship through our climate action plan, progress towards our science-based targets, carbon reductions and transparent climate disclosures.
71
Experian plc
Annual Report 2024
Strategic report
Transition impacts: Risks and opportunities arising from the process of adjusting to a low-carbon economy – continued
Type
Market
Risk and opportunity factor
Product and service adaptation
Experian risk category
Strategic
Time horizon
Short, medium and long term
Potential risks and opportunities
Risk: Revenue loss
If we do not adapt and develop products to meet the
potential increase in client and consumer awareness
for climate-friendly financial products and investment,
especially in the low-carbon scenario, we could be in
a position of losing business to competitors.
Opportunity: Revenue growth
Developing products to meet potential increased
climate-related demand from clients and consumers
presents an opportunity for us, with use cases including
portfolio assessment, regulatory reporting, customer
engagement, application risk assessments and supply
chain management.
Business management response
Our products and services are flexible and adaptable
to low-carbon transitioning, and we are innovating to
capitalise on opportunities that will help our clients and
consumers adapt to and mitigate the effects of climate
change. Demand continues to increase for data and
analytics services that can support clients, such as
financial institutions, in understanding emissions in
their supply chains, analysing physical and transitional
climate-related risks in their portfolios, and assessing
applications based on the climate credentials of the
assets or organisations to be funded. Our existing
decisioning tools can help clients meet these needs by
bringing data and analytics into operational processes
and organisations. We are also developing new products
and services specifically designed to capture
climate-related opportunities for our business by
supporting others in efforts to understand and reduce
their carbon footprints (see page 75 for examples).
Type
Reputation
Risk and opportunity factor
Reputational impact
Linked target:
1. Become carbon
neutral in our own operations by 2030
2. Reduce absolute Scope 1 and 2
emissions by 50% by 2030 (from
2019)
3. Suppliers covering 78% of
Experian’s spend to have
science-based targets by 2029
1
See page 74 for further information.
Experian risk category
Operational and strategic
Time horizon
Short, medium and long term
Potential risks and opportunities
Risk: Investment loss
Failure to meet increasing stakeholder and investor
expectations on climate action and disclosures could
damage the reputation of our brand, resulting in: lower
demand for shares, leading to a reduction in share price
as investors seek to shift capital away from companies
that are not managing climate change risks (not currently
quantifiable); or removal of Experian from climate-
specific funds that are invested into on the basis of
positive climate action and revenue opportunities from
climate-related products (currently less than 1% of the
share register).
Opportunity: Access to finance
A strong response to the climate agenda and
contributions towards finding solutions could improve
our brand and reputation, and enable Experian to access
finance on favourable terms linked to climate,
sustainability or wider ESG performance.
Business management response
We are reducing our climate impact and disclosing our
climate and wider ESG performance transparently, to
help maintain our strong reputation with current and
future investors.
1
Near-term target follows SBTi principles and will be submitted for validation to the SBTi.
Sustainability
continued
Experian plc
Strategic report
72
Type
Technology
Risk and opportunity factor
Rising temperatures
Linked metric:
Percentage reduction
to Scope 1 and 2 emissions from
2019
Linked target:
Reduce absolute
Scope 1 and 2 emissions by 50% by
2030 (from 2019)
See page 74 for further information.
Experian risk category
Operational
Time horizon
Short, medium and long term
Potential risks and opportunities
Risk: Increased operational expenses
(less than 1%* of annual revenue)
Increased energy demand to run our infrastructure, including
cooling for data centres, could result in increased operational
expenses due to increases in external temperatures.
Business management response
We are mitigating the risk of rising energy
costs through planning and implementing
energy efficiency measures, and transitioning
to more energy efficient co-located or
cloud-based service providers.
Type
Physical risk (acute and chronic)
Risk and opportunity factor
Extreme weather events
Experian risk category
Operational
Time horizon
Short, medium and long term
Potential risks and opportunities
Risk: Expenses from property damage
Inspections by our global property insurer of all Experian locations
include an assessment of natural catastrophe risk. These
inspections identified seven sites (in the USA, the UK and Bulgaria)
with exposure to climate risk – two exposed to hail damage, two to
river or inland flooding, and three to storm water flooding. The
buildings exposed to risk from hail damage are leased and potential
damage is not expected to pose an impact on operations. There is
some risk of property damage, estimated to be in the range of
US$10,000 to US$550,000*, at the locations exposed to flood risk,
but no expected impact on operations.
Risk: Disruption to business operations
Extreme weather and related physical damage could cause disruption
to our operations, workforce and suppliers. Our services must be
available for our clients and consumers 24 hours a day, seven days a
week. If there was disruption to our services causing an interruption of
daily revenue as a result of physical climate effects, the estimated loss
could range from US$1.3m in EMEA and Asia Pacific to US$12.8m in
North America (based on a daily average of FY24 revenue).
Business management response
We have a range of measures in place to allow
us to mitigate acute physical risks posed by
extreme weather conditions, and make our
operations more resilient in the face of
extreme weather in the short and medium
term. As part of our commitment to reducing
operational emissions, we are investing in
on-site renewable energy generation that will
also improve resilience by providing cleaner
back-up electricity in the event of extreme
weather conditions putting a strain on the grid.
Experian has a global property insurance
programme. Our insurance providers
undertake annual climate engineering surveys
at our key operational sites to help us
understand what we can do to further
strengthen our climate resilience.
Type
Physical risk
Risk and opportunity factor
Migration of people
Experian risk category
Strategic
Time horizon
Medium and long term
Potential risks and opportunities
Risk: Revenue loss
The chronic impacts of climate change, such as increasing
temperatures, flooding, storm damage and limited access to clean
water, will lead to higher levels of migration and a global
humanitarian crisis that could disrupt markets, and prevent clients
and consumers from accessing our products and services.
Opportunity: Protecting financial health for all
Our products could help climate migrants rebuild their financial
identities and credit scores just as they help 'credit invisibles' in
other circumstances.
Business management response
Many of our established products and services
designed to enable financial inclusion for
‘credit invisibles’ could help people who have
migrated as a result of climate change to
rebuild their financial identities and credit
scores. Through our focus on improving
financial health for all (see page 59), we are
innovating to develop further solutions that
could provide support.
Physical impacts: Risks and opportunities arising from climate or weather-related events
Physical risks from climate change currently have a low impact on Experian’s operations, strategy and financial planning. Our operating model has
proven to be resilient to disruption in the past, but we will continue to monitor evolving climate risks through our regular scenario analyses. We already
consider exposure to extreme weather events in our business continuity and disaster recovery planning, in particular for the four regional data centres
that are business-critical assets.
What could constitute a critical physical risk to our business relates to the chronic effects of climate change and impacts from extreme weather events
that could lead to climate migrations, which may result in consumers becoming financially excluded if they are unable to access their data and
demonstrate their financial identities. These impacts are most significant under the high-carbon scenario we modelled.
The climate-related opportunities for our business are greater within the low-carbon scenario we modelled, as they relate to the potential of our
business to support and facilitate the transition to a low-carbon future.
*
These estimates are provided to indicate an order of magnitude of financial impact only. These are not intended to be, nor should they be perceived as, predictions.
73
Experian plc
Annual Report 2024
Strategic report
Metrics and targets
Our science-based targets commit us to cutting
our operational emissions and driving reductions
in our value chain emissions as we continue our
journey towards Net Zero1.
We set our near-term targets in line with
Science Based Targets initiative (SBTi)
guidance:
• Our established target to cut Scope 1 and 2
emissions by 50% by 2030 (from 2019) has
previously been validated by the SBTi as in
line with a 1.5°C scenario.
• Our new Scope 3 near-term target –
Suppliers covering 78% of Experian's spend
to have science-based targets by 2029 – will
be submitted to the SBTi for validation (in line
with a well-below 2°C scenario).
This year, we continued to develop our Net Zero
Transition Plan in line with the UK Transition
Plan Task Force framework’s principles of
ambition, action and accountability (see an
overview below).
1
In accordance with the definition of Net Zero, as outlined by the
Science Based Targets initiative's Corporate Net Zero Standard.
The foundations of our Net Zero Transition Plan
Accountability
Metrics and targets drive progress in each focus area, and implementation of the Net Zero Transition Plan is underpinned by our robust ESG governance
structure that ensures input and oversight from the Board, Audit Committee, Group Operating Committee. Executive Risk Management Committee and
other relevant stakeholders (see page 77).
Sustainability
continued
Action
Ambition
Reduce absolute Scope 1
and Scope 2 emissions by
50% by 2030 (from 2019)
Suppliers covering 78%
of Experian’s spend to
have science-based targets
by 2029
Assess and respond to
evolving climate risks and
opportunities
Develop products and
services to support the
wider transition to a Net
Zero economy, drive
commercial growth and
future-proof our business
Demonstrate transparency
and credible action on
climate change
Continue to implement our
decarbonisation roadmaps
across our regions to drive
reductions and commit to:
• Invest in energy efficiency
projects
• Consolidate sites and
migrate to cloud
• Purchase renewable
electricity and explore
feasibility of on-site
generation
• Transition fleet to hybrid
and electric vehicles
Drive emission reductions
through internal
procurement policies and
external engagement with
suppliers:
• Roll out contractual
requirements for
suppliers to set
science-based targets
and disclose emissions
• Improve data accuracy
with more actual data
from suppliers and
improved reporting
emissions from employee
commuting and
homeworking
• Explore business travel
efficiencies
• Review and update risk
assessments in line with
evolving climate
scenarios
• Embed climate adaptation
and resilience into our
strategic planning
processes and regional
risk management
• Enhance quantification of
climate-related financial
risks and opportunities
• Expand our offering of
products and services to
help clients respond to
climate risks and
opportunities
• Further embed
climate-related criteria
into our innovation
processes and platforms
• Further develop
governance to support
our transition plan,
including through
incentive plans
• Engage teams across the
business in our transition
plan to deepen knowledge
and build capacity
• Maintain transparent
disclosures externally
Scope 1 & 2
Scope 3
Evolution of products
and services
We will support Net Zero
targets and economy-wide
transition through
exploration of climate
products and services
Communication
and trust
Communication and trust
will underpin all aspects of
our transition plan
Decarbonising our operations
and supply chain
We are working towards Net Zero following the SBTi
definition of reducing Scope 1, 2 & 3 greenhouse gas
emissions – as a first step we have set a new Scope 3
near-term target and are due to submit it for validation
to the SBTi in the coming months
Climate adaptation
and resilience
We will continue to
assess climate risks and
opportunities and develop
our approach
Experian plc
Strategic report
74
Reducing operational emissions
This year, we reduced our Scope 1 and 2
market-based emissions by a further 27% to
7.4 thousand tonnes of CO
2
equivalent (CO
2
e),
cutting the carbon intensity of our direct
emissions by 35% to 1.0 tonnes of CO
2
e per
US$1m of revenue.
Since 2019, we have reduced our total Scope 1
and 2 emissions by 75%. This means we are
currently outperforming and well on track to
meet our science-based target to reduce these
emissions by 50% by 2030. We will continue to
seek ways to minimise the carbon footprint of
our operations as our business evolves –
through energy efficiency measures and
building consolidation, as well as by sourcing
renewable electricity to power the buildings we
own or control.
We reduced overall energy use by a further 19%
in FY24. Our new energy-efficient office building
in Schaumburg, USA, achieved a LEED
(Leadership in Energy and Environmental
Design) Gold certification and an ENERGY STAR
rating. We have continued to embrace flexible
ways of working that have enabled us to
consolidate and reduce office space – and
related energy use – at offices in the USA and
Bulgaria this year. We are also implementing
upgrades to energy-efficient LED lighting at
several of our offices.
In FY24, 75% of our total electricity came from
renewable sources globally, an increase of 13%
from the previous year. In FY23, we installed our
first on-site solar photovoltaic array in Brazil
and we are exploring opportunities to invest in
further on-site installations to generate our own
renewable power where feasible.
In addition, we are supporting the transition to
low-carbon transport by switching our owned
and controlled fleet to hybrid and electric
vehicles and installing charging infrastructure
at our sites. Worldwide, around 47% of our
vehicles are hybrid or electric – including 91%
of our vehicles in the UK and Ireland, which
account for around a third of our global fleet.
Reporting on Scope 3 emissions and
engaging with suppliers
Scope 3 greenhouse gas emissions account for
the majority (97%) of our total value chain
carbon footprint, totalling 206.8 thousand
tonnes of CO
2
e in FY24. Our methodology for
calculating Scope 3 emissions is available on
our online ESG reporting hub. Calculations for
FY24 include actual data provided directly by
suppliers representing 38% of our related
spend (up from 32% in FY23).
We report our Scope 3 emissions back to FY22
based on our current methodology, but it is not
possible to recalculate emissions back to 2019,
the baseline year for our previous Scope 3
reduction target. We have therefore developed
a new Scope 3 target as part of our Net Zero
transition work – for suppliers covering 78%
of Experian’s spend to have science-based
targets by 2029. This near-term target follows
SBTi principles and will be submitted to the
SBTi for validation.
This year, we held meetings with our top
suppliers to understand where they are in their
sustainability journey and discuss shared
climate goals. We have also integrated climate
considerations into supplier review meetings.
In FY24, the number of suppliers providing
information to us through the supplier
engagement programme on CDP increased
by 24% from the previous year.
Experian was included in the 2023 CDP
Supplier Engagement Rating Leaderboard, with
an ‘A’ rating for our engagement with suppliers.
Towards carbon neutral
Once we have achieved our science-based
target and reduced our value chain emissions
as far as possible, we will invest in high-quality
carbon offsetting projects to offset the
remaining Scope 1, 2 and 3 emissions. As an
interim step, we are committed to offsetting all
our Scope 1 and 2 emissions by 2025.
We have offset 80% of our FY24 Scope 1 and 2
emissions by investing equally in two projects:
a Verified Carbon Standard Rainforest
Conservation project in Malaysia – ‘The Kuamut
Rainforest Conservation Project’, and a Gold
Standard Certified reforestation and
sequestration project in Colombia – ‘The
Vichada Climate Reforestation Project’.
Harnessing opportunities to help
clients understand climate risks
We offer a growing range of products that
will help us capitalise on climate-related
opportunities by supporting clients in
managing their own climate-related risks
and opportunities.
Our decisioning tools can help clients meet
these needs by bringing data and analytics into
operational processes and organisations, and
we support clients with data analytics services
that can help them understand emissions in
their supply chains. For financial services
clients, we can help them analyse physical
and transitional climate-related risks in their
portfolios, and assess applications based on
the climate credentials of the assets or
organisations to be funded.
We are also innovating, including through our
Social Innovation programme and hackathons,
to develop bespoke products and services
specifically designed to help clients better
assess ESG risks, including climate-related
risks. These include solutions that help
landowners and farmers access finance and
insurance in Brazil, provide automated ESG
ratings of SMEs in the UK and several other
European countries to help them secure
finance and respond to buyer questions, and
enable consumers in Australia to track their
carbon emissions through banking apps using
Experian insights.
Managing other environmental
impacts
In addition to our focus on climate, we strive to
identify, assess and address other potential
environmental risks and impacts from our
business, including those related to issues
that are high on the global agenda, such as
biodiversity, water stress and single-use
plastics.
Our environmental management systems help
us drive continuous improvements designed to
minimise the environmental footprint of our
operations and ensure we comply with
regulations. Local environmental management
systems across the business are aligned with
the internationally recognised ISO 14001:2015
standard, and four of our sites – three in the UK
and one in Bulgaria – maintain certification to
this standard through external audits.
This year, using the Task Force on Nature-
related Financial Disclosures’ LEAP (locate,
evaluate, assess and prepare) approach as
a guiding framework, we mapped our global
operations against indicators of water stress
risk (defined as the ratio of total water
withdrawals to available renewable surface
and groundwater supplies), as well as key
biodiversity areas and protected areas.
We established that only one of our sites is
located in an area of biodiversity risk, a small
office (280 square metres) that we lease in
Umhlanga, South Africa, which is in a Key
Biodiversity Area. Our operations do not
depend on biodiversity or present any risk
to biodiversity.
Our most significant water consumption is for
cooling in our data centres. Three of our four
key data centres are located in areas of high
risk for water stress, and one is in an area of
low to medium risk. Of the three in high-risk
areas, only one – in Texas, USA – uses water
for cooling. We began collecting data on water
consumption at this site last year to help us
monitor trends and identify opportunities to
reduce waste consumption.
We have issued new guidance to support the
phasing out of avoidable single-use plastics and
we raised awareness among employees this
year through local campaigns such as ‘My mug
makes a difference’ to support the transition to
reusable cups in Brazil. In FY24, we achieved an
overall reduction of 33% in single-use plastics
across our operations.
Find out more:
See ESG Performance Data
on our online ESG reporting hub*
*
https://www.experianplc.com/responsibility/esg-reporting-hub
75
Experian plc
Annual Report 2024
Strategic report
Scan me
for our 2024 Carbon
Reporting Principles and
Methodologies
Carbon emissions
CO
2
e¹
Unit
2024
2
2023²
2022²
2021²
2020²
2019²
Scope 1
000s tonnes CO
2
e
2.6^
2.8
2.5
2.2
3.0
3.6
Scope 2 (location-based)
000s tonnes CO
2
e
15.7^
18.4
21.1
22.2
25.5
29.8
Scope 2 (market-based)
000s tonnes CO
2
e
4.8^
7.3
13.9
14.3
22.1
25.6
Total Scope 1 and Scope 2 (market-based)
000s tonnes CO
2
e
7.4
10.1
16.4
16.5
25.1
29.2
Total Scope 3
000s tonnes CO
2
e
206.8
180.6
4
179.8
453.9
493.4
495.5
Total emissions
3
000s tonnes CO
2
e
214.2
190.7
4
196.2
470.4
518.5
524.7
Total emissions
3
normalised by revenue
– per US$1m revenue
tonnes CO
2
e
30.2
28.8
4
31.2
87.6
100.1
107.9
1
CO
2
e emissions exclude any carbon offsets purchased by Experian.
2
In 2023 we upgraded our Scope 3 methodology, from using a purely spend-based analysis to including actual supplier emissions data. We therefore restated our 2022 Scope 3 figures using the same methodology,
to provide comparable figures, resulting in restated figures for Purchased Goods and Services, Upstream Leased Assets, Capital Goods, and Investments. We did not restate these categories for 2021, 2020, and
2019, due to data limitations. Please refer to our 2024 Carbon Reporting Principles and Methodologies https://ex.pn/carbonreportingmethodologies2024 for further details.
3
Including Scope 1, Scope 2 (market-based) and total Scope 3.
4
2023 emissions from Business Travel have been restated from 7.5 to 10.0 thousand tonnes CO₂e, following an issue found in the data provided by our third-party global travel provider. This changes the 2023 total
Scope 3 emissions from 178.1 to 180.6 thousand tonnes CO₂e, the 2023 total emissions from 188.2 to 190.7 thousand tonnes CO₂e, and the 2023 total emissions normalised by revenue from 28.4 to 28.8 thousand
tonnes CO₂e per US$1m revenue.
^
The 2024 data for Scope 1, Scope 2 (location-based), Scope 2 (market-based) and selected Scope 3 (Purchased Goods and Services, Fuel- and Energy-Related Activities, Upstream Leased Assets, and Capital
Goods) emissions has been subject to independent limited assurance by KPMG LLP in accordance with ISAE (UK) 3000/ISAE 3410. Please refer to our 2024 Carbon Reporting Principles and Methodologies
document and KPMG's limited assurance report on our website https://ex.pn/assurancereport2024.
Sources of Scope 3 emissions relevant to our business
Sources of Scope 3 emissions
Unit
2024
2
2023²
2022²
2021²
2020²
2019²
2024
contribution
to Scope 3 (%)
Purchased Goods and Services
1
000s tonnes CO
2
e
149.5^
130.9
125.7
350.9
378.9
357.4
72.3%
Fuel- and Energy-Related Activities
000s tonnes CO
2
e
5.3^
6.1
6.3
3.9
4.2
6.2
2.5%
Business Travel
000s tonnes CO
2
e
14.4
10.0
4
1.8
0.3
3
15.2
49.1
6.9%
Upstream Leased Assets
1
000s tonnes CO
2
e
13.4^
6.3
8.3
35.4
31.0
17.5
6.5%
Capital Goods
1
000s tonnes CO
2
e
6.8^
7.2
19.1
40.4
31.4
31.2
3.3%
Employee Commuting
000s tonnes CO
2
e
17.2
19.7
17.8
13.7
24.8
24.6
8.3%
Investments
1
000s tonnes CO
2
e
0.1
0.3
0.5
8.9
7.7
4.3
0.1%
Waste Generated in Operations
000s tonnes CO
2
e
0.1
0.1
0.3
0.4
0.2
5.2
0.1%
Total Scope 3
000s tonnes CO
2
e
206.8
180.6
4
179.8
453.9
493.4
495.5
Supplier engagement target
5
Unit
2024
Percentage of suppliers by spend with science-based targets
%
27
1
Scope 3 emissions within updated science-based targets.
2
In 2023 we upgraded our Scope 3 methodology, from using a purely spend-based analysis to including actual supplier emissions data. We therefore restated our 2022 Scope 3 figures using the same methodology,
to provide comparable figures, resulting in restated figures for Purchased Goods and Services, Upstream Leased Assets, Capital Goods, and Investments. We did not restate these categories for 2021, 2020, and
2019, due to data limitations. Please refer to our 2024 Carbon Reporting Principles and Methodologies https://ex.pn/carbonreportingmethodologies2024 for further detail.
3
The 2021 figure for Business Travel only covers emissions from air travel.
4
2023 emissions from Business Travel have been restated from 7.5 to 10.0 thousand tonnes CO₂e, following an issue found in the data provided by our third-party global travel provider. This changes the 2023 total
Scope 3 emissions from 178.1 to 180.6 thousand tonnes CO₂e.
5
78% of Experian’s suppliers by spend covering Purchased Goods and Services, Upstream Leased Assets, Capital Goods, and Investments to have science-based targets by 2029.
^
The 2024 data for Scope 1, Scope 2 (location-based), Scope 2 (market-based) and selected Scope 3 (Purchased Goods and Services, Fuel- and Energy-Related Activities, Upstream Leased Assets, and Capital
Goods) emissions has been subject to independent limited assurance by KPMG LLP in accordance with ISAE (UK) 3000/ISAE 3410. Please refer to our 2024 Carbon Reporting Principles and Methodologies
document and KPMG's limited assurance report on our website https://ex.pn/assurancereport2024.
Streamlined Energy and Carbon Reporting (SECR) Disclosure
SECR indicator
Unit
2024
2023
2022
2021
Scope 1: Global (excluding UK)
000s tonnes CO
2
e
2.1
2.3
2.0
1.9
Scope 1: UK
000s tonnes CO
2
e
0.5
0.5
0.5
0.3
Scope 2 (location-based): Global (excluding the UK)
000s tonnes CO
2
e
13.4
14.7
16.7
16.8
Scope 2 (location-based): UK
000s tonnes CO
2
e
2.3
3.7
4.4
5.4
Total Scope 1& 2 (location-based): Global (excluding the UK)
000s tonnes CO
2
e
15.5
17.0
18.7
18.7
Total Scope 1& 2 (location-based): UK
000s tonnes CO
2
e
2.8
4.2
4.9
5.7
Energy consumption used to calculate above emissions: Global (excluding the UK)
kWh
42,414,261
48,675,621
50,859,896 51,154,107
Energy consumption used to calculate above emissions: UK
kWh
13,626,528
20,626,911
24,358,946 25,401,992
Total emissions normalised by revenue – per US$1m revenue: Global (excluding the UK)
tonnes CO
2
e
2.5
2.9
3.4
4.0
Total emissions normalised by revenue – per US$1m revenue: UK
tonnes CO
2
e
3.3
5.4
5.9
7.7
Specific to SECR disclosure: Experian does not have any ‘offshore’ operations. Therefore, where the 'UK' is referenced in the indicators above we have reported 'UK' only.
Sustainability
continued
Experian plc
Strategic report
76
ESG governance
Our sustainability strategy encompasses our most material ESG topics. It is developed, reviewed, approved and implemented through a robust
governance structure with clear oversight from the Board, Audit Committee and Group Operating Committee, as detailed in the organisation chart below.
See page 116 for the division of responsibilities, including ESG, across the Board.
Board members receive a report on ESG
activities ahead of every Board meeting, as well
as an annual in-depth presentation from our
Chief Sustainability Officer that keeps them
informed about the evolving global ESG context,
our sustainability strategy and our ESG
performance.
The Chief Financial Officer is executive sponsor
of our overall ESG programme and the
Company Secretary oversees the Group’s
Sustainability function. They both sit on the
Group Operating Committee, which receives
regular updates on ESG performance, and on
the Executive Risk Management Committee that
oversees risk management with oversight from
the Audit Committee.
Experian Board
Reviews ESG targets, strategy, performance and policy updates as part of regular Board reporting, risk
management and budget-setting processes. Approves financial and non-financial disclosures.
Audit Committee
Oversees management of risks, including any ESG risks, reviews and approves our register of principal risks and
opportunities, and oversees financial and non-financial disclosures, to ensure the Board has full oversight.
Group Operating Committee
Reviews and approves ESG strategy and
targets, reviews ESG performance data
quarterly and reports to the Board on these
matters.
Risk Management Committees
(executive and regional)
Oversee management of risks, including
ESG risks, at global and regional level, with
oversight from the Executive Risk
Management Committee.
Global Sustainability function
and regional teams
Support implementation of our ESG strategy, together with a
network of specialists and steering groups across the
business that manage our Positive Social Impact
Framework, Social Innovation programme, community
investment, health and safety, and environmental
programmes and impact.
Regional business areas
Support implementation of our ESG programme and delivery
of our sustainability strategy and related targets.
ESG Steering Committee
Develops ESG strategy, metrics and targets,
oversees and prioritises investment
decisions to support implementation of our
ESG programme, reviews ESG performance
data quarterly, discusses and agrees
responses to relevant market and
regulatory developments.
Chief Sustainability Officer
Responsible for ensuring successful implementation of our ESG programme and delivery of our ESG strategy
and targets reporting into the Company Secretary.
ESG governance at Experian
Our ESG Steering Committee, comprising
executive sponsors and workstream leaders
and chaired by the Chief Financial Officer,
meets six times a year to oversee our ESG
agenda. Topics discussed this year included:
social impact initiatives, communications and
engagement, data security, climate-related
items, and ESG policies (including updates to
our Global Code of Conduct and Supplier Code
of Conduct).
Our Chief Sustainability Officer is responsible
for ensuring successful implementation of our
ESG plans across all our workstreams, with
support from a central sustainability team,
a network of regional leads and regional
business units.
The Compliance, Corporate Secretariat, Finance,
Government Affairs, Investor Relations and
Sustainability teams support monitoring of
relevant market and regulatory developments
and stakeholder needs, and their potential
implications for our business and stakeholders,
for discussion by the ESG Steering Committee.
The Finance team monitors and prepares for
forthcoming ESG regulation in collaboration
with the Sustainability team. For example, we
are currently preparing to report in line with the
disclosure requirements of the EU Corporate
Sustainability Reporting Directive (CSRD) and
the new International Sustainability Standards
Board (ISSB), according to the relevant
timelines for our business.
77
Experian plc
Annual Report 2024
Strategic report
We develop metrics and goals to support our
sustainability strategy and measure progress
(see below). The Finance team centrally collates
ESG performance data for quarterly review by
our ESG Steering Committee. Principles of data
collection are set out centrally and submitted by
each region for global reporting.
Our ESG data reporting methodologies are
published on our online ESG reporting hub,
together with detailed ESG performance data
that we disclose annually. ESG data is gathered,
shared and discussed with global and regional
leadership through our quarterly business
reviews.
Certain non-financial metrics – including
employee engagement, diversity and inclusion,
ESG considerations and risk – are factored into
the holistic assessment of the Group’s
short- and longer-term performance.
We also integrate ESG into employee pension
investments. Our defined contribution pension
plan in the UK includes an allocation to a fund
that explicitly includes ESG in its investment
strategy, and members of the plan also have
the option to select a focused ethical fund.
Sustainability goals and performance
Our goals
Target year
FY24 performance
FY24 status
Financial health
1
Help people thrive on their financial journey
New ambition – metrics in development
Diversity
2
Increase the proportion of women in our:
– Group Operating Committee (OpCo) and direct reports to 30%
2024
30% of Group OpCo and Direct Reports
Achieved
3
– senior leaders to 40%
2024
35% of senior leaders
Goal not met
3
– mid-level leaders to 42%
2024
37% of mid-level leaders
Goal not met
3
– total workforce to 47%
2024
45% of total workforce
Goal not met
3
Environment
4
– Become carbon neutral in our own operations
5
2030
On track
– Reduce absolute Scope 1 and 2 emissions by 50% (from 2019)
6
2030
75% reduction from 2019
On track
– Suppliers covering 78% of Experian’s spend to have science-based
targets by 2029
7
2029
27% of relevant suppliers have
science-based targets
New target
– Offset 100% of our remaining Scope 1 and 2 emissions
2025
80% of Scope 1 and 2 emissions offset
On track
1
See page 59 for our approach to improving financial health.
2
See our 2024 Power of YOU report: Driving Social Impact and Diversity, Equity & Inclusion for additional DEI commitments in relation to our people, clients and consumers, and communities. See page 66 for our
approach to diversity and increasing representation of women.
3
New goals have been set for FY27. Details of these goals and progress to date can be found on page 66.
4
See page 70 for our approach to climate and the environment.
5
Includes all Scope 1 and 2 emissions, as well as Scope 3 emissions from Purchased Goods and Services, Business Travel and Fuel- and Energy-Related Activities (which represent 83% of our baseline emissions
in Scope 3).
6
Target approved by SBTi as in line with a 1.5°C climate scenario.
7
Near-term target follows SBTi principles and will be submitted for validation to the SBTi. Replaces previous near-term target to reduce Scope 3 emissions from Purchased Goods and Services, Business Travel and
Fuel- and Energy-Related Activities by 15% by 2030 (from 2019).
Sustainability
continued
Experian plc
Strategic report
78
Managing ESG risks
The Board, Audit Committee and our Executive
Risk Management Committee review our
principal risks on an ongoing basis. Five of our
eight principal business risks are relevant to
ESG (see table on the right). In addition, we
continue to identify and analyse emerging risks,
including those related to ESG, such as climate
risks. See pages 71-73 for details on
climate-related risks and opportunities.
See pages 92-99 for more on our principal risks
and risk management processes, including our
Three Lines of Defence approach.
Principal risk
Relevant focus areas of our sustainability strategy*
Data loss/misuse
Legislative/regulatory
change and compliance
Resiliency
Business conduct
Talent acquisition
and retention
Treating data with respect
(data security)
Potential to affect all – we monitor climate-related
risks that could impact on our enterprise resilience
Working with integrity
Inspiring and supporting our people
Potential to affect all – and particularly treating data
with respect (data privacy)
*See Our sustainability strategy on page 56 for reference.
Key ESG policies
We publish key ESG policies on our website.
These include:
• Global Code of Conduct
• Anti-Corruption Framework
• Global Data Principles
• Supplier Code of Conduct
• Environmental Policy
• Diversity, Equity and Inclusion Key
Principles
• Global Approach to Mental Health and
Wellbeing
• Health and Safety Policy
• Modern Slavery Statement
• Statement on Salient Human Rights
• Tax Policy
Scan me
To view our policies
ESG-related business risks
Annual Report:
This section of our Annual
Report sets out our approach and
performance on our most material ESG
topics.
CDP:
We disclose detailed information on our
climate approach and performance via CDP,
and you can view our CDP disclosure on our
website.
ESG performance data:
We report detailed
year-on-year performance data on material
ESG topics.
EU Sustainable Finance Disclosure
Regulation (SFDR):
We disclose the SFDR’s
Principal Adverse Impact indicators on our
website.
Gender Pay Gap Report:
We disclose our
gender pay gap in the UK.
Modern Slavery Statement:
We set out the
steps we have taken to ensure slavery, human
trafficking and child labour are not taking
place in our supply chains or in any part of our
business.
Non-financial and sustainability information
statement:
We report in line with Section 172
of the UK Companies Act 2006 (see page 80).
Power of YOU report:
We report in more detail
on how we are driving social impact and
championing diversity, equity and inclusion for
our people, our clients and consumers, and
communities.
Sustainability Accounting Standards Board
(SASB):
We report against the SASB
framework on material issues (see page 81).
Task Force on Climate-related Financial
Disclosures (TCFD):
We report in line with
TCFD recommendations (see page 70).
Tax Report:
We explain our approach to tax
affairs and provide details of both our regional
corporate tax payments and the total tax
contributions we make in our largest markets.
ESG reporting and disclosures
Scan me
To visit our online
ESG reporting hub
79
Experian plc
Annual Report 2024
Strategic report
Non-financial and sustainability information statement
Section 172
Section 172 (s172) legislation, which became
effective in the UK during FY20, aims to
help shareholders better understand how
directors have discharged their duty to
promote the success of companies, while
having regard to the matters set out in s172(1)
(a) to (f) of the UK Companies Act 2006 (s172
matters). In addition, the UK Corporate
Governance Code 2018 recommends that
boards describe how the matters set out
in s172 have been considered in board
discussions and decision-making.
Section 172 defines the duties of company
directors and concerns the duty to promote
the success of companies. Throughout FY24,
the directors of the Company continued to
exercise these duties while having regard to
the s172 matters, and also to other relevant
factors as they reviewed and considered
proposals from senior management, and
as they governed the Company on behalf
of its shareholders through the Board and
its committees.
Experian plc is a Jersey-incorporated
company. Nevertheless the Board embraces
s172 and fully supports its aims, and we are
reporting in line with the UK requirement.
We outline below, through use of cross
reference, where we have considered the
s172 matters throughout this Annual Report.
We report in line with the Non-
Financial Reporting requirement
as detailed in Sections 414CA and
414CB of the UK Companies
Act 2006.
Our aims
Our business model is set out on pages 22-25.
We use the power of data to create opportunities,
improve lives and make a meaningful
difference in society, helping individuals
and businesses of all sizes, to achieve their
financial goals.
Non-financial risks
The Risk management and principal risks
section of the Strategic report, starting on
page 92, sets out the Group’s approach to
identifying and managing our principal risks
and uncertainties. Our Three Lines of Defence
model provides a rigorous governance
framework, and the list of principal risks
starting on page 95 gives details of the policies,
outcomes and due diligence processes that
control and mitigate those risks.
The key areas where non-financial adverse
impacts could arise are:
1. Respect for human rights
As data custodians, we have a responsibility
to safeguard consumer privacy, and our five
Global Data Principles guide how we manage
and use data, build products and conduct our
business around the world (see page 61).
Our Global Code of Conduct¹ aligns with the
United Nations' Universal Declaration of Human
Rights, and our commitment to ensuring an
ethical supply chain¹ is borne out by our
membership of the Slave-Free Alliance.
2. Employees
Employee engagement is a key performance
indicator (see page 53), and we talk on pages
65-67 and 113 about our many programmes
and initiatives that inspire our people to be their
best, to bring their whole selves to work, our
commitment to diversity, equity and inclusion,
and our recruitment, retention and succession
practices that help to mitigate the risk of our
dependence on highly skilled personnel.
3. Environmental matters and climate-
related disclosures¹
We take our environmental responsibilities
seriously, and the reduction of greenhouse gas
emissions is a key performance indicator for us
(see page 53). See also pages 70-76 for climate-
related financial disclosures made, along with
further actions and initiatives Experian is taking
to help protect the environment
1
.
4. Anti-corruption and anti-bribery
Our Anti-Corruption Framework¹ sets out
our zero-tolerance policy on bribery and
corruption in any form, and this message is
reinforced through mandatory annual training
for employees.
5. Social matters
Experian has many initiatives in place to deliver
our purpose of creating a better tomorrow for
consumers, businesses, our people and our
communities. The role we play benefits
everyone: businesses grow, people prosper
and communities thrive. This happens in many
ways, including through our core business, the
development of social innovation products,
employee volunteering and support for
community groups and charities.
1
Further detail is available at experianplc.com/responsibility/
esg-reporting-hub
Section 172 matters
Specific examples
Page
(a) The likely consequences of any decision in the
long term
– Our strategy and dividend policy, taken together with sections of our Financial
review, explains how we balance returns to shareholders with capital invested
organically and on acquisitions
26, 88 to 91, 191
– Our governance framework shows how the Board delegates its authority
115
(b) The interests of the company’s employees
– Stakeholder engagement – Our people
– Inspiring and supporting our people
49
65 to 67
(c) The need to foster the company’s business
relationships with suppliers, customers
and others
– Stakeholder engagement
– Our business model
48
22
(d) The impact of the company’s operations
on the community and the environment
– Our communities and Improving financial health
– Protecting the environment
49 and 59
70 to 76
(e) The desirability of the company maintaining
a reputation for high standards of business
– Treating data with respect
– Working with integrity
61
68
(f) The need to act fairly between members
of the company
– Stakeholder engagement
– Shareholder and stakeholder engagement
48
117
Experian plc
Strategic report
80
We report against the Sustainability Accounting Standards Board (SASB) standards. The Index below shows our
response to each of the SASB metrics for the Professional and Commercial Services sector.
Sustainability disclosure topics and accounting metrics
Activity metrics
Topic
Accounting metric
Code
Our response
Data security
Description of approach to identifying
and addressing data security risks
SV-PS-230a.1
See the Data security section of our Annual Report (page 61).
Description of policies and practices
relating to collection, usage, and
retention of customer information
SV-PS-230a.2
See the Treating data with respect section of our Annual Report
(pages 61-64), which includes our Global Data Principles. This section
details the processes we follow to ensure accuracy of data, the
regulations we comply with and the consumer websites where we
detail our approach to data privacy.
Number of data breaches, percentage
involving customers’ confidential
business information, are personal data
breaches, and number of customers or
individuals affected
SV-PS-230a.3
In the event of a serious breach, we would disclose information about
the incident and commit to contact any affected data subjects in a
timely way. We do not publicly disclose vulnerabilities or lapses due
to client sensitivities. To the extent that any relevant regulator should
find fault with our data breach management or data security
practices, they will publish their findings and any related sanctions.
There were no new findings or sanctions in FY24.
Workforce diversity and
engagement
% of gender and racial/ethnic group
representation for executive
management and all other employees
SV-PS-330a.1
We report gender and racial/ethnic diversity in the data tables
1
, with
our US racial/ethnic diversity shown in accordance with the EEO-1
categories. See the Inspiring and supporting our people section of our
Annual Report (pages 65-67) and in our Power of YOU Report: Driving
Social Impact and Diversity, Equity and Inclusion
2
.
Voluntary and involuntary turnover
rate for employees
SV-PS-330a.2
We report both voluntary and involuntary turnover rates in the ESG
performance data tables
1
.
Employee engagement (%)
SV-PS-330a.3
We report employee engagement as one of our key performance
indicators for the business. See the Inspiring and supporting our
people section of our Annual Report (pages 65-67) and the ESG
performance data tables
1
. Our employee engagement score in our
FY24 Great Place To Work survey was 83%, up one point from the
previous year.
Professional integrity
Description of approach to ensuring
professional integrity
SV-PS-510a.1
See our Global Data Principles (page 61) and the Working with
integrity section of our Annual Report (pages 68-69). This latter
section outlines the importance of our Global Code of Conduct
3
,
designed to give everyone a clear understanding of our approach to
professional and ethical standards and ensure employees all know
exactly what is expected of them individually, and the role they play
in helping Experian live up to those standards. This code has been
approved by the Experian plc Board and we are fully committed to
implementing it across our business.
Total amount of monetary losses as a
result of legal proceedings associated
with professional integrity
SV-PS-510a.2
Any material monetary losses associated with legal proceedings,
sanctions or fines that are a matter of public record would be
disclosed in our Financial statements (page 176 onwards). In the case
of pending and threatened litigation claims, management applies
judgment as to the likelihood of ultimate liability and recognises
the liability where the likelihood of potential loss arising is possible
rather than probable and having a potentially material impact.
Activity metric
Code
Our response
Number of employees: full-time and part-time, temporary and
contract
SV-PS-000.A
We report this data in the ESG performance data tables
1
.
Employee hours worked and % billable
SV-PS-000.B
Not applicable to our business.
Scan me
to see our ESG
performance data tables
1
https://ex.pn/esgperformancedata2024
2
https://ex.pn/powerofyou2024
3
https://www.experianplc.com/content/dam/marketing/global/plc/en/assets/documents/corporate-responsibility/code-of-conduct.pdf
81
Experian plc
Annual Report 2024
Strategic report
We delivered another strong financial
performance in FY24, with revenue,
Benchmark EBIT and Benchmark EPS
all growing 8% for ongoing activities.
Lloyd Pitchford
Chief Financial Officer
Financial review
Delivering strong financial results
Summary
We achieved a strong financial performance
in FY24 despite a subdued macroeconomic
environment. Revenue 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.
Our strong capital discipline is creating greater
returns, fuelling our growth and bringing
further value to our shareholders, with basic
and Benchmark EPS growing 56% and 8%
respectively, at actual exchange rates. Our
growth continues to deliver at high returns on
capital, with ROCE improving for the third
consecutive year, increasing to 17.0% as our
growth investment monetised.
Benchmark operating cash flow was again
strong, with 97% cash flow conversion. We
ended the year in a very healthy financial
position with a Net debt/Benchmark EBITDA
ratio of 1.7 times and with undrawn committed
bank borrowing facilities of US$2.4bn which
extend to March 2029.
The Group's strong performance and financial
position is reflected in the full-year dividend
announced of 58.5 US cents per share, up 7%.
*Alternative Performance (non-GAAP) Measures
Highlights 2024
Revenue
US$
7.1
bn
Benchmark EBIT*
US$
1.9
bn
Benchmark operating
cash flow*
US$
1.9
bn
Basic EPS
USc
131.3
Benchmark EPS*
USc
145.5
Organic revenue
growth*
6
%
(at constant FX)
Benchmark EBIT
margin*
– ongoing activities
27.6
%
Total revenue growth*
– ongoing activities
8
%
(at actual FX)
Profit before tax
US$
1.6
bn
Experian plc
Strategic report
82
2024
US$m
2023
US$m
Growth
%
Revenue
7,097
6,619
7
Operating profit
1,694
1,265
34
Profit before tax
1,551
1,174
32
Profit for the financial year
1,203
773
56
Net cash inflow from operating
activities
1,747
1,717
2
Full-year dividend per share
USc58.50
USc54.75
7
Basic EPS
USc131.3
USc84.2
56
2024
US$m
2023
2
US$m
Growth at constant FX
%
Revenue
3
7,056
6,548
7
Benchmark EBIT
1,928
1,794
7
Benchmark PBT
1,789
1,670
6
Benchmark operating
cash flow
1,864
1,753
6
Undrawn committed bank
facilities
2,366
2,415
n/a
Benchmark EPS
USc145.5
USc135.1
7
1
See note 7 to the Group financial statements for definitions of non-GAAP measures.
2
Results for FY23 are re-presented for the reclassification to exited business activities of certain
B2B businesses.
3
From ongoing activities.
Statutory financial highlights
Benchmark financial highlights
1
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
The year-on-year change in the performance of Experian's activities at actual exchange rates.
Organic revenue growth
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.
Non-GAAP measures
Statutory financial results
Revenue for the year strengthened 7% to
US$7,097m (2023: US$6,619m) notwithstanding
a challenging global economy. 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.
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. 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.
Basic EPS increased to 131.3 US cents (2023:
84.2 US cents), reflecting a higher profit before
tax and a reduced effective tax rate.
Cash generated from operations increased
to US$2,440m (2023: US$2,358m) due to
improved performance and working capital
movements.
We have identified and defined certain non-GAAP measures. These are the key measures management uses to assess the underlying performance
of our ongoing businesses. A fuller explanation of the measures is provided in note 7 of the Group financial statements.
83
Experian plc
Annual Report 2024
Strategic report
Financial review
continued
Year ended 31 March
2024
US$m
2023¹
US$m
Total growth²
%
Organic growth²
%
Revenue
Data
3,635
3,401
6
5
Decisioning
1,484
1,365
8
6
Business-to-Business
5,119
4,766
6
5
Consumer Services
1,937
1,782
8
7
Ongoing activities
7,056
6,548
7
6
Exited business activities
41
71
n/a
Total
7,097
6,619
6
Benchmark EBIT
Business-to-Business
1,609
1,525
4
Consumer Services
479
416
15
Business segments
2,088
1,941
6
Central Activities – central corporate costs
(144)
(143)
n/a
Ongoing activities
1,944
1,798
7
Exited business activities
(16)
(4)
n/a
Total Benchmark EBIT
1,928
1,794
7
Net interest expense
(139)
(124)
n/a
Benchmark PBT
1,789
1,670
6
Exceptional items
4
(66)
Other adjustments made to derive
Benchmark PBT (note 15(a))
(242)
(430)
Profit before tax
1,551
1,174
Benchmark EBIT margin – ongoing activities
Business-to-Business
31.4%
32.0%
Consumer Services
24.7%
23.3%
Benchmark EBIT margin
3
27.6%
27.5%
1
Revenue, Benchmark EBIT and Benchmark EBIT margin for FY23 are re-presented for the reclassification to exited business activities
of certain B2B businesses. See note 10 to the Group financial statements.
2
At constant exchange rates.
3
Benchmark EBIT margin for ongoing activities is calculated by dividing Benchmark EBIT for ongoing activities by revenue from ongoing
activities.
Revenue, Profit before tax and Benchmark EBIT margin by business segment
Reconciliation of statutory to Benchmark measures
Performance summary
Commentary on revenue and Benchmark EBIT
performance by region is provided earlier in
the Strategic report, within the Chief
Executive’s review on pages 14 to 21. The table
opposite summarises our performance by
business segment.
1
From ongoing activities.
2
Benchmark EBIT margin for FY23 is re-presented for the
reclassification to exited business activities of certain B2B
businesses.
2020
2021
2022
2023
2024
5,179
5,372
6,288
6,619
7,097
9%
6%
16%
8%
6%
Revenue (US$m) and growth
at constant FX rates (%)
Total Benchmark EBIT (US$m) and
Benchmark EBIT margin (%)
1
2020
2021
2022
2023
2
2024
1,387
1,386
1,645
1,794
1,928
26.9%
25.8%
26.6%
27.5%
27.6%
Benchmark EPS (USc) and
growth at constant FX rates (%)
2020
2021
2022
2023
2024
103.0
103.1
124.5
135.1
145.5
8%
4%
21%
9%
7%
2020
2021
2022
2023
2024
47.00
47.00
51.75
54.75
58.50
1%
0%
10%
6%
7%
Dividend per share (USc) and growth (%)
Year ended
31 March 2024
Statutory
Non-benchmark items
Benchmark
Investment-
related items
Amortisation of
acquisition
intangibles
Non-cash
financing
items
Exceptional
items
7,056
–
–
–
–
7,056
Ongoing
41
–
–
–
–
41
Exited
Revenue
US$m
7,097
–
–
–
–
7,097
Revenue
US$m
1,710
40
193
–
1
1,944
Ongoing
(16)
–
–
–
–
(16)
Exited
Operating
profit US$m
1,694
40
193
–
1
1,928
Benchmark
EBIT US$m
Profit before
tax US$m
1,551
41
193
3
1
1,789
Benchmark
PBT US$m
Basic
EPS USc
131.3
4.1
15.2
0.2
(5.3)
145.5
Benchmark
EPS USc
See note 7 to the Group financial statements for definitions of non-GAAP measures.
Experian plc
Strategic report
84
FY19
c.250
FY24
c.1,500
544
939
254
18 years of uninterrupted organic
revenue growth
1
Our history of organic revenue growth
continued despite the headwinds in the
macroeconomic environment. We have
delivered 18 years of uninterrupted organic
revenue growth, growing in every year since
we became a public company. This track
record reflects the strength of our strategic
execution, a relentless pursuit of excellence,
competitive differentiation and the diversity
and quality of our portfolio. We collaborate
across our operations to deploy advanced
technologies and Artificial Intelligence-
powered solutions, and to tap into our rich
and insightful data.
We continue to broaden our business,
identifying new growth opportunities as we
expand our product offerings and enter new
markets. The latest evolution of our Ascend
Platform – which integrates Ascend analytics,
PowerCurve decisioning and fraud prevention
products to improve client service and
productivity – is just one example of this.
1
See note 7 to the Group financial statements for definition
of organic revenue growth.
Business-to-Business revenue growth was 6%
at constant exchange rates, reflecting product
strength, client wins and progress in new
verticals. Revenue grew across all regions,
notwithstanding weaker lending volumes.
Our ambition for Consumer Services is to build
a relationship with every consumer for whom
we have a financial record, and to help them
thrive on their financial journey. We now have
a very substantial member base, with over
180 million free memberships globally, and are
continually finding more ways to help those
consumers in their financial lives. Consumer
Services revenue increased 8% in the year
at constant exchange rates. We are adding
new features to our offerings, such as the
introduction of the Experian Smart Money
Digital Checking Account and Debit Card in
October 2023 – a 2024 BIG Innovation award
winner – and the expansion of our Auto
Insurance business.
Outlook
Our business has proven its resilience in the
face of global events such as the COVID-19
pandemic and a worldwide economic
downturn. The fact that we have grown in a
challenging marketplace, with weaker credit
volumes and macroeconomic uncertainty,
gives us confidence in the diversity and
strength of our business. We are optimistic
for the future and anticipate another year of
strong growth in FY25, with projected organic
revenue growth in the range of 6-8%, with
good margin improvement.
Productivity and cost management
Achieving our objective of continued organic
growth requires a strong focus on both
sustained revenue progression and
productivity improvement.
Our technology transformation is pivotal to
our productivity ambitions. We have made
significant progress in our cloud migration
strategy, which we expect to bring further
efficiencies. Migration of our mainframe
capabilities, data and servers to the cloud
will not only generate technology and
infrastructure savings, but will also advance
the speed of product innovation and further
enable Software as a Service (SaaS)-based
solutions for our clients.
Migrating legacy products to SaaS solutions
is a strategic focus. In addition to significant
addressable markets, cloud-based software
capabilities allow for a quicker reaction to
market changes and faster deployment of
products. This provides earlier access to
revenue at a lower incremental cost, as cloud
solutions are less manually intensive than
traditional Experian-hosted or on-premise
solutions.
Recently introduced products
• New products launched since FY21
Scaling products
• Software
(e.g. Ascend, PowerCurve)
• ID&F
• Consumer Services
(e.g. North America and UK and
Ireland Marketplaces)
Historic organic revenue growth performance
2
(at constant FX)
FY07
8%
FY08
4%
FY09
3%
FY10
2%
FY11
8%
FY12
10%
FY13
8%
FY14
5%
FY15
1%
FY16
5%
FY17
5%
FY18
5%
FY19
9%
FY20
8%
FY21
4%
FY22
12%
FY24
6%
FY23
7%
Global Financial Crisis
COVID-19
pandemic
2
Ongoing activities.
Revenue from new and scaling products (US$m)
85
Experian plc
Annual Report 2024
Strategic report
Financial review
continued
A
B
C
D
E
F
A. Labour
53%
B. Data
17%
C. Marketing
10%
D. IT
8%
E. Central Activities
3%
F. Other
9%
A
B
C
D
E
F
G
H
I
J
K
1
Revenue from ongoing activities.
A. Financial services
39%
B. Direct-to-consumer
16%
C. Health
8%
D. Retail
6%
E. Software and Professional services 6%
F. Automotive
4%
G. Insurance
4%
H. Media and Technology
4%
I. Government and Public sector
3%
J. Telecommunications and Utilities
3%
K. Other
7%
At the heart of our productivity strategy lies
a commitment to training, coaching, and
our Lean Six Sigma programme, EmPower,
fostering a fundamental culture of continuous
improvement. We are maximising the
utilisation of the EmPower community,
deploying Lean Six Sigma Green- and
Black- belt-trained employees to execute
high-impact productivity projects.
Our continuous improvement and use of
modern technologies improves job satisfaction,
enabling us to both attract and retain skilled
personnel. The cost of talent is a significant
component of our expenditure, and the
deployment of AI tooling offers the potential
for significant productivity savings across our
cost base.
In parallel, we intend to continue expanding our
Global Delivery Centres (GDCs) and talent hubs:
these are in cost-effective locations,
maximising efficiencies through optimised
organisational structures and centres of
excellence, such as our Global Innovation
Centre in Hyderabad, India.
Our productivity initiatives are helping us to
achieve improved margins against a backdrop
of cost inflation, and to reinvest savings in our
people and technology, fuelling future growth.
Reporting currency
We report our financial results in US dollars.
The strengthening of our other trading
currencies during the year, primarily the
Brazilian real and pound sterling, against the
US dollar, increased total revenue by US$81m
and Benchmark EBIT by US$15m. A ± 1%
change in the Brazilian real or pound sterling
exchange rate would impact total revenue by
± US$10m or ± US$8m respectively.
Benchmark EBIT from ongoing activities
improved to US$1,944m (2023: US$1,798m),
growing 7% at constant currency, and 8%
at actual exchange rates. Benchmark EBIT
margin from ongoing activities was 27.6%
(2023: 27.5%) at both actual and constant
exchange rates.
We provide details of the principal exchange
rates used and currency exposures in note 11
to the Group financial statements on page 199.
A focus on technology spend is allowing
us to more effectively manage costs and
productivity, concentrating future investment
on strategic higher margin products. We are
rationalising our product suite to allow
simplification of support and provide
scalability, thus accelerating the pace of
transition to the cloud.
Security will also continue to be at the centre
of our design and migration decisions, tightly
integrating security throughout our cloud
platforms and delivery lifecycles to further
improve our security posture.
Other productivity efforts focus on agile
development, use of AI, machine learning,
automation programmes and employee
initiatives. We create value from data, and AI is
accelerating the pace at which we can do this.
We have trained our global workforce on the
use of Generative AI (GenAI) and our Career
Hub includes both a Cloud and GenAI Academy,
providing tailored learning pathways to
enhance our skills and deepen our knowledge
of GenAI tools, leveraging the potential of this
new technology to transform the way we work.
FY24 Global revenue
1
by client
FY24 Global cost profile
Cloud migration
Continuous
integration and
delivery
Greater
accessibility and
collaboration
Simplified IT
management
Improved
scalability and
agility
Improved security
Faster speeds
Automated tasks
and processes
Enhanced
availability and
disaster recovery
Operational
benefits
Client
benefits
Experian plc
Strategic report
86
Exceptional items and other
adjustments made to derive
Benchmark PBT
We make certain adjustments to derive
Benchmark PBT. These are summarised in the
table opposite. Note 7 to the Group financial
statements explains the reasons for the
exclusion from our definition of Benchmark
PBT of Exceptional items and the other
adjustments made. Further information is
provided in note 15 to the Group financial
statements on pages 201 and 202.
Interest
Benchmark net finance expense increased by
US$15m. This reflected an uplift in market
interest rates and higher average debt, though
our forward rate-fixing programme mitigated
much of the impact of increased interest rates.
Our effective interest rate for FY24 on loan
and bond debt, including derivatives, was
3.1% (2023: 2.9%). Our policy is to maintain
50%-100% of our Net funding at rates fixed
for more than six months. At 31 March 2024
interest on 87% (2023: 90%) of our Net funding
was fixed. Our careful financial management
will lessen future interest charges, as indicated
by the fair value of interest rate swaps which
has increased to US$103m (2023: US$88m).
The year-on-year movement in the present
value of put options of US$57m, and other fair
value remeasurements, contributed to the
increase in statutory net finance expense of
US$68m.
Taxation
Our effective tax rate on Benchmark PBT
was 25.7% (2023: 26.0%), reflecting the mix
of profits and prevailing tax rates by territory,
and a one-off benefit from the recognition of
historical UK tax losses this year. We expect
our effective tax rate on Benchmark PBT in
FY25 will be around 26-27%.
Tax paid as a percentage of Benchmark PBT
of 30.4% (2023: 31.4%) is above our Benchmark
tax rate and we provide a reconciliation in the
table opposite. In FY24, ‘other’ included the
phasing of tax payments. In FY23, 'other'
included tax on fair value gains on the
remeasurement of derivatives as well as the
phasing of tax payments. We expect that tax
paid as a percentage of Benchmark PBT will
move closer to our Benchmark tax rate over
the medium term, as timing differences
relating to US innovation and development
expenditure unwind.
We are subject to tax in numerous jurisdictions
and have a number of open tax returns with
various tax authorities. It can take many years
to agree an outcome with a tax authority, as
there are transactions in the ordinary course
of business for which the ultimate tax
determination is uncertain.
Year ended 31 March
2024
US$m
2023
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
Year ended 31 March
2024
%
2023
%
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
Other
3.1
4.9
Tax paid as a percentage of Benchmark PBT
30.4
31.4
Exceptional items and other adjustments made to derive Benchmark PBT
Cash tax reconciliation
Our key tax uncertainties relate to the
deductibility of purchased goodwill,
inter-company trading and financing. US$61m
(2023: US$102m) is included in current tax
liabilities in relation to these judgmental areas.
In addition, the Group is subject to challenge
by the Brazilian and Colombian tax authorities
on the deduction for tax purposes of goodwill
amortisation. The possibility of the claims
resulting in a liability to the Group is considered
to be remote. Further information on the
contingency is provided in note 45 to the
Group financial statements.
Deciding whether to recognise deferred tax
assets is a financial judgement. Assets are
recognised only when we consider it probable
that they can be recovered, based on forecasts
of future profits against which those assets
may be utilised.
Earnings per share (EPS)
Benchmark EPS grew strongly to 145.5 US
cents (2023: 135.1 US cents) up 8% at actual
and 7% at constant exchange rates, reflecting
a higher Benchmark PBT and a reduced
Benchmark tax rate. A ± 10% change in the
Brazilian real or pound sterling exchange rate
would impact Benchmark EPS by ± 2 US cents
or by less than ± 1 US cent respectively.
We provide further information in note 18 to
the Group financial statements on pages 205
and 206.
Critical estimates and judgments
The Group is subject to a number of risks
and uncertainties that require us to make
estimates and judgments. Areas involving
significant uncertainty are detailed in note 6
to the Group financial statements.
Percentage of Net funding
at fixed interest rates
2020
2021
2022
2023
2024
67%
91%
98%
90%
87%
Percentage of debt
at fixed interest rates
>2
years
>4
years
>6
years
>8
years
73%
63%
42%
13%
87
Experian plc
Annual Report 2024
Strategic report
Financial review
continued
Year ended 31 March
2024
US$m
2023
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
(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 flow
2
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
Acquisitions
3
(512)
(480)
Purchase of investments
(11)
(15)
Disposal of operations and investments
4
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 180.
2
A reconciliation of Cash generated from operations to Benchmark operating cash flow is provided in note 40(g) to the Group financial
statements.
3
See note 40(d) to the Group financial statements.
4
Includes the disposal of operations classified as held-for-sale.
Cash flow and Net debt summary
1
Bond nominal value before derivatives.
Cash and liquidity management
The Group remains highly cash generative,
converting 97% (2023: 98%) of Benchmark
EBIT to Benchmark operating cash flow, with
Benchmark free cash flow of US$1,170m (2023:
US$1,109m). The continued strength of our
Benchmark operating cash flow performance
reflects the nature of our low capital intensity
business and financial efficiency, and our focus
on working capital management.
Financial risk management
The key financial risks specific to our business
are set out in the Risk management and
principal risks section on pages 92 to 99.
We have identified macroeconomic factors
as a principal risk and detailed narrative
disclosures are contained in note 8 to the
Group financial statements on pages 190 and
191, with further numeric disclosures for
foreign exchange, interest rate and credit risk
in notes 11, 16, 24 and 30 respectively.
Funding
We apply a diligent methodology to treasury
management, and have access to substantial
funding and ample liquidity. Our undrawn
committed bank borrowing facilities at
31 March 2024 totalled US$2.4bn
(2023: US$2.4bn), and included our core
US$1.8bn club facility committed until March
2029. We continually monitor Net debt, forecast
cash flows and our borrowing facilities, to
ensure the Group has sufficient funds available
for operations and planned growth.
The covenant on our banking facilities requires
that Benchmark EBIT should cover net interest
expense, excluding the effects of IFRS 16
‘Leases’, before financing fair value
remeasurements by three times. At 31 March
2024, this ratio was 15 times (2023: 15 times).
We have no undue concentration of repayment
obligations in respect of borrowings and did
not breach any covenants given on borrowings
during the year under review or the prior year.
Our bonds represented 89% (2023: 92%) of
borrowings at 31 March 2024, totalled
US$3.8bn (2023: US$3.8bn), and had an
average remaining tenor of four years (2023:
five years). We seek to minimise refinancing
risk in any given year, with the next tranche
of bond refinancing due in September 2024.
At 31 March 2024, 42% (2023: 56%) of
borrowings fell due in over five years.
We keep our debt levels stable at a low multiple
of our profits, commensurate with maintaining
strong investment-grade credit ratings (BBB+/
Baa1 or above). Our balance sheet strength
allows us to maintain access to cost-effective
sources of borrowing. Net debt at 31 March
2024 was US$4,053m (2023: US$4,030m), 1.7
times Benchmark EBITDA (2023: 1.8 times),
compared to our target range of 2.0 to 2.5 times.
Bond maturity profile US$m
FY25
505
FY26
505
FY27
539
FY28
FY29
500
FY30
750
FY31
FY32
539
FY33
505
Experian plc
Strategic report
88
Year ended 31 March
2024
US$m
2023
US$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
Reconciliation of net investment
Disciplined capital management
We maintain a disciplined approach to capital
allocation, balancing organic and strategic
investments with shareholder returns through
dividends and share repurchases – while
targeting our level of Net debt. The mix between
these categories varies over time, and we
assess acquisition opportunities against a range
of metrics, including economic valuations and
the earnings enhancement we expect them to
bring relative to share repurchases.
Our Benchmark free cash flow has consistently
been strong, underpinning our disciplined
allocation framework. Further information on
capital risk management is provided in note 8(b)
to the Group financial statements on page 191.
We executed net share repurchases for a
cash consideration of US$100m, which offset
deliveries under employee share plans, and
expect to execute net share repurchases of
up to US$150m in the coming year.
Net investment of US$1,150m (2023: US$1,119m)
comprised cash flows for net capital
expenditure, acquisitions and net investments.
Capital expenditure and useful life
World-class technology is critical to our
success and we plan to maintain our financial
framework of investment to sustain innovation
and revenue growth. We will, however, deliver
technology more cost effectively, and while our
overall spend will increase as we continue to
invest, capital expenditure as a percentage of
revenue will trend to c. 7% over the medium
term.
Our capital expenditure in FY24 was US$640m
(2023: US$627m), 9% (2023: 9%) of revenue.
Depreciation and amortisation charged to
Benchmark EBIT was 7% (2023: 7%) of revenue.
Our business is subject to technological change
and competition. We currently amortise
non-acquisition intangibles over a period from
three to ten years, with the average life being
six years. If the useful life of our databases and
internal use or internally generated software
either increased or decreased by one year,
the impact on the annual amortisation charge
would be a decrease of US$73m or an increase
of US$116m respectively.
We anticipate that organic capital investment
in FY25 will be approximately 9% of revenue,
as we progress our cloud migration strategy.
*
Funds from operations is defined as Benchmark free cash flow plus organic
capital investment (capital expenditure).
Capital summary US$m
2
,000
0
400
1,200
1,600
Funds from
operations*
Dividends
Share repurchase
programme
Organic capital
investment
Acquisitions
and minority
investments
Other
Increase in
Net debt
800
Cash
generated
Uses of cash
89
Experian plc
Annual Report 2024
Strategic report
Financial review
continued
Acquisitions focus on strategic growth areas,
new markets or supplement our existing
competences. We completed seven
acquisitions in the year including that of
WaveHDC for US$216m, strengthening our
Patient Access Suite in the USA. Acquisition
related cash outflows were US$512m
(2023: US$480m). Acquisitions were across
both business segments and contributed
US$32m to revenue and US$2m to profit
before tax in the year, with annualised
pro-forma revenue of US$87m.
Put and call options are associated with
our purchase of a majority stake in MOVA
Sociedade de Empréstimo entre Pessoas
S.A. (MOVA) and we recognised put option
and contingent consideration liabilities
of US$71m and US$32m respectively,
at acquisition.
In April 2024, we agreed to acquire Credit
Data Solutions Pty Ltd (illion), a leading
consumer and commercial credit bureau in
Australia and New Zealand for a consideration
of up to A$820m (c.US$532m), and TEx
Soluções em Tecnologia Ltda., an InsurTech
company in Brazil that offers innovative
solutions for the insurance market, for
R$90m (c.US$17m).
Both acquisitions are subject to regulatory
approval.
Acquisitions
WaveHDC
A healthcare technology leader in the USA,
enabling real-time, single-enquiry insurance
discovery/verification at the point of patient
registration.
Flexpag
A Brazilian FinTech specialising in digital
payment solutions for utility companies.
Agrosatélite
A Brazilian AgTech that develops data solutions
for crop monitoring through satellite images,
supplementing our agribusinesses.
Noitso
A Nordic SaaS provider in Denmark bringing
expertise in data sources, data science and
data ingestion.
MOVA
A leading FinTech in Brazil that provides
lenders with the expertise and the technology
to offer credit solutions to their customers.
IntoZetta
Combining this UK company's capabilities into
Experian's Aperture Data Studio
allows us to
deliver tailored data quality and data
governance solutions.
AllowMe
Provides device risk management capabilities,
supplementing our identity and anti-fraud
services in Brazil.
Experian plc
Strategic report
90
Equity
The fair values of investments revalued
through Other comprehensive income (OCI),
and net post-employment benefit assets are
affected by macroeconomic factors, and we
recognised remeasurement losses in the year
of US$85m (2023: US$81m) in OCI, offset by
exchange gains of US$40m (2023: losses of
US$203m).
Other movements in equity include the charge
for employee share awards and options of
US$132m (2023: US$129m).
Our spend on net share repurchases was
US$100m (at an average price of 2,712p).
The number of shares in circulation increased
by 0.7m during the year, due to share issues
and the movement of shares purchased by
employee trusts or held as treasury shares.
Dividends and distributable reserves
Our dividend policy aligns shareholder returns
with our underlying profitability, by aiming to
pay dividends over time, broadly in line with
Benchmark EPS growth. Our record of
profitability and strong cash flow conversion
has enabled us to pay increasing dividends
since listing in 2006, and in the last five years
we have paid ordinary dividends of US$2.3bn.
The Board has announced a second interim
dividend of 40.50 (2023: 37.75) US cents per
ordinary share, giving a total dividend for the
year of 58.50 (2023: 54.75) US cents per share,
which is covered 2.5 times by Benchmark EPS
(2023: 2.5 times). Ordinary dividends paid in the
year totalled US$509m (2023: US$482m).
Experian plc and the UK entity 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 and US$6.6bn respectively.
See note L to the Company financial
statements for further detail.
Net assets and ROCE
ROCE measures the return generated on
the capital we have invested in the business,
whether through internal organic investment
or through acquisitions, and reflects our ability
to add shareholder value over the long term.
ROCE improved for the third consecutive year,
increasing to 17.0%, up 0.5 percentage points
on the prior year as our growth investment
monetised. ROCE is a post-tax measure and
we use our Benchmark tax rate for ease of
calculation.
The increase in operating segment net assets
of US$583m was largely acquisition related.
Further information on net assets by region
is given in note 10 to the Group financial
statements on page 196.
At 31 March
2024
US$m
2023
US$m
2022
US$m
Goodwill
5,962
5,575
5,737
Other segment assets
4,618
4,265
4,193
Total segment assets
10,580
9,840
9,930
Segment liabilities
(2,430)
(2,273)
(2,297)
Operating segments – net assets
8,150
7,567
7,633
Central Activities – net assets
487
556
527
Lease obligations in operating segments
146
143
177
Interest on lease obligations in operating segments
(1)
(1)
(1)
Less: right-of-use assets
(131)
(128)
(153)
Less: non-controlling interests
(35)
(35)
(38)
Capital employed attributable to owners
8,616
8,102
8,145
Net debt
(4,053)
(4,030)
(3,950)
Tax
(60)
(271)
(379)
Add: right-of-use assets
131
128
153
Add: non-controlling interests
35
35
38
Net assets
4,669
3,964
4,007
Average capital employed
8,406
8,060
7,774
ROCE
1
17.0%
16.5%
15.7%
1
For definition of ROCE see ‘Non-GAAP measures’ on page 190. For FY24 the return used in the calculation of ROCE
is based on Benchmark EBIT of US$1,928m and a Benchmark tax rate of 25.7%.
Net assets and ROCE summary
Second interim dividend
First interim dividend
Full-year ordinary dividend US$m
550
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
FY24
0
150
450
250
500
50
100
350
400
200
300
91
Experian plc
Annual Report 2024
Strategic report
Risk management and principal risks
Identifying and managing risk
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.
Our risk management governance structure
Security and
Continuity Steering
Committee (SCSC)
is a sub-committee of
the ERMC. Its primary
responsibility is to
oversee management
of global information
security, physical
security, and security
continuity risks.
Tax and Treasury
Committee
oversees management of
financial risks, including
tax, credit, liquidity,
funding, market and
currency risks.
Global and Regional
Strategic Project
Committees
ensure that we
appropriately resource
our strategic projects,
that they are risk
assessed, and
commercially and
technically appraised.
The committees'
conclusions are then
considered by the Board
or relevant Group
Principal Operating
Subsidiary.
Regional Risk
Management
Committees (RRMCs)
oversee management of
regional risks and feed
up to the ERMC.
Environmental, Social
and Governance (ESG)
Steering Committee
ensures the definition,
approval and integrated
delivery of the Group's
ESG strategy, and is
chaired by the Chief
Financial Officer.
Sets our overarching risk appetite and ensures that we manage risks appropriately across the
Group. The Board delegates oversight of risk management activities to the Audit Committee.
Regularly monitors the principal risks and uncertainties identified by our risk assessment
processes, with the strategies we have developed and the actions we have taken to mitigate them.
The Committee also continually reviews the effectiveness of our risk management and internal
control systems, which support our risk identification, assessment and reporting.
Comprises senior Group executives, including the executive directors and the Company Secretary.
It oversees how we manage global risks. This committee and the risk committees mentioned
below each meet multiple times a year.
The Group Operating Committee comprises our most senior executives. Its remit includes
identifying, debating and achieving consensus on issues involving strategy, risk, growth, people
and culture, and operational efficiency. Its meetings generally focus on the key issues facing
our Group.
Our executive management takes day-to-day responsibility for implementing the Board’s policies
on risk management and internal control. It designates who is responsible and accountable
through the design and implementation of all necessary internal control systems, including
policies, standards and guidance.
Board
Audit Committee
Executive Risk Management Committee (ERMC)
Group Operating Committee (OpCo)
Executive management
Risk Management and Governance Committees
Experian plc
Strategic report
92
• Lines of business (regional and global)
• Experian IT Services (EITS)
• Corporate functions
• Group Risk Management
• Global Security Office
• Legal
• Compliance
• Business Continuity
• Physical Security
• Group Finance
• Global Internal Audit
Our risk management process
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 (see diagram below) 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 apply both bottom-up and top-down
approaches to the management of risk.
Bottom-up risk management processes,
operating at a business unit or country level,
provide visibility of risks and issues across the
business. These risks and issues are assessed
and reported to relevant risk management
committees at a regional and global level.
Our top-down approach involves senior
management at a global level and identifies
the principal and emerging risks that threaten
achieving our strategy. This ensures that our
risk response is appropriate.
We follow the Three Lines of Defence approach
to risk management (see diagram below).
Risks are owned and managed within the
business (first line of defence) and reviewed
by our businesses at least half yearly. Global
governance teams (from the second line of
defence) provide oversight and challenge
of the management of risks and controls,
including those relating to information security,
compliance and business continuity. Global
Internal Audit, as the third line of defence,
assesses our risks and controls independently
and objectively. The results of this oversight
and review process feed into our reporting
cycle through the risk management
governance structure.
Risk categories
We adopt a risk category approach to reporting
risk within the Group. The risk categories
reflect the overall purpose, strategy and
business model for the Group, and recognise
both the external context and our internal
operating environment. Risk categories
provide the foundation for the reporting of all
risks within the Group.
Strategic risk
–
Country/political/economic
–
Acquisitions
–
Competitor
–
Business strategy
–
Publicity
Financial risk
–
Accounting
–
Credit
–
Liquidity
–
Market
Regulatory/compliance risk
–
Regulated activities
–
Data privacy
–
Financial crime
–
Conduct
–
Regulatory change
–
Licences and permissions
Operational risk
–
Technology
–
Information security
–
Physical security
–
Business continuity
–
Data quality
–
Third party
–
People
–
Process
Three Lines of Defence
Audit Committee
Executive management / Risk Management Committees
First Line of Defence
Second Line of Defence
Third Line of Defence
All employees have First Line
responsibilities
Governance teams have Second Line
responsibilities
Global Internal Audit has Third Line
responsibilities
• Identify key business objectives
• Identify principal and emerging
risks
• Identify key controls
• Assess risk drivers and controls
• Estimate likelihood and impact
considering financial, consumer,
people, reputational, legal and
regulatory impacts
• Quantify the risk
• Accept or remediate current risk
and control environment
• Determine corrective action if
needed
• Business unit and regional level
• RRMCs and ERMC
• Audit Committee
Step 1: Risk identification
Step 2: Risk assessment
Step 3: Risk response
Step 4: Risk reporting
and monitoring
93
Experian plc
Annual Report 2024
Strategic report
Risk appetite
The Board sets our overarching risk appetite
for the principal risks we face in the normal
course of business. We assess the level of
our risk exposure against our risk appetite,
to ensure we focus our efforts appropriately.
We use a variety of information sources to
show whether we are working within our
tolerance for these risks, and whether or
not any of them require additional executive
attention. Where risks are deemed to be
outside of our appetite we prioritise them
for mitigation.
Our risk culture
The Board is committed to maintaining a
culture that emphasises the importance of
managing risk, and encourages transparent
and timely risk reporting. We work to align
employees’ behaviour, attitudes and incentives
with our risk appetite and with our risk
management and other governance policies.
Our risk governance process reinforces
and facilitates appropriate ownership,
accountability, escalation and management
of our principal and emerging risks. This
process includes: well-defined roles and
responsibilities across our Three Lines of
Defence model; assigning accountability for
taking risks when making key business
decisions; documenting clear boundaries
and behavioural expectations in policies and
standards, such as within our Global Code
of Conduct; and creating an environment that
reinforces adherence and accountability.
Our governance structure is designed to be
agile in both managing existing risks and
reacting to any newly identified risks. Principal
and emerging risks are discussed in one or
more of our governance forums, and we hold
ad hoc meetings when needed, to quickly
assess and determine appropriate risk
responses.
Current areas of focus
Following an external review completed in
FY22, we defined a new strategic plan for our
approach to risk management. This plan sets
out a clear vision to establish a sustainable and
embedded risk management framework
throughout Experian globally. Substantial
progress has been made in implementing the
core themes of the plan to actively reduce a
range of risks in key areas of our business; and
to establish sustainable and mature risk and
control processes to advance our capabilities
to an assured maturity level across Risk,
Information Security and Compliance. In
particular, we have advanced the use of global
Key Risk Indicators and the global risk review
cycle has been embedded and is operating
well. We have also made good progress on
embedding our action-driven risk response
into the regional and functional risk
management processes.
We expect to continue to make further
progress on delivering our strategic plan and
further maturing our overall risk management
approach during FY25.
For more information, see the Audit Committee
report, pages 128-135.
Emerging risks
We continue to evolve our emerging risk
processes to identify and assess risks that
may, in time, pose a threat to our business
model or strategy. This knowledge-sharing
and horizon-scanning programme seeks to
identify potential risks and emerging trends,
looking through various risk lenses and over a
future time horizon, in some cases extending
up to five years and beyond. This approach
enables the consideration of the most relevant
emerging risks and opportunities for Experian
and provides the opportunity to review and
develop appropriate risk response strategies
to address them. Some of the emerging risks
we are currently monitoring include:
•
Advanced and emerging technologies:
Experian has been utilising Artificial
Intelligence (AI) for a number of years in its
business model, ensuring that its use remains
fair, transparent, and compliant with
regulatory requirements. The acceleration in
the capability of Generative AI (natural
language models and content generation)
provides increased opportunities for Experian
to benefit from this technology. We have
developed our global emerging risk response
by establishing access approval controls for
the tools, publishing an acceptable use
statement and rolling out mandatory
Group-wide training that supports colleagues
in engaging safely with these tools. As the
adoption of Generative AI increases,
monitoring of the associated risks will remain
a priority through inclusion in the principal risk
assessments (pages 94-99). As we consider
risks associated with other advanced and
emerging technologies, we will undertake
formal monitoring over topics such as
quantum computing and extended reality.
•
Geopolitical instability:
With operations in 32
countries, the increasing complexity of
international relations and economics
necessitates that Experian regularly reviews
and updates its strategy to mitigate potential
impact and uncertainty from geopolitical
developments. The effects of: global conflicts;
shifting political ideologies in our key
markets, possibly leading to changes in
legislation and regulation; hardening of
technology blocs as a result of trade and
investment controls; and relations between
China and the West are all monitored through
Experian’s emerging risk process and are
considered during principal risk assessments
to drive any co-ordinated responses that may
be required.
Climate-related risks
We recognise climate change as one of the
most critical issues facing global society. The
main climate-related risks affecting the Group
relate to: how physical risks such as flooding,
damage from storms, and freeze damage,
could cause disruption to our business
operations; and the risks posed by the
transition to a low-carbon economy, such as
climate change regulation and any failure to
adapt our products and services in markets
most affected by this change. Climate risk has
implications relating to several of our existing
risk categories (and related principal risks),
and we recognise we need a range of risk
responses.
We continue to monitor, assess and manage
these risks using our established four-step risk
management process. These risks, and our
response to them, are overseen by our ESG
Steering Committee. For example, this year, we
have been understanding our approach to
forthcoming climate reporting regulations, to
ensure smooth implementation of the
requirements across our business. We
continue to make progress towards our
science-based emission reduction target, as
well as developing our Net Zero Transition
Plan. This helps mitigate risk associated with
potential future carbon pricing and increased
energy costs.
Our approach to Scope 3 reporting and
supplier engagement reduces exposure to
carbon taxation on Purchased Goods and
Services, which make up most of our value
chain carbon footprint. The ESG Steering
Committee has developed a strategy to
manage the ongoing climate-related and other
ESG risks as they present themselves and we
continue to embed these within our existing
risk management approach. Further detail on
how we have incorporated climate-related
risks into our risk management process is
available in the Sustainable business section
(pages 70-76).
Principal risks
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. Accordingly, the following
pages summarise our principal risks and
uncertainties, with mitigating actions for each,
and related trends in the risk environment,
as identified by the Board for the year ended
31 March 2024.
Risk management and principal risks
continued
Experian plc
Strategic report
94
The Board continues to review the nature and
definitions of these risks as our strategy and
business model continues to develop, and has
concluded that no changes were required for
FY24 when compared with the previous year.
These risks may, however, change during the
next financial year as the risk landscape
evolves and new risks emerge.
To assess our Group’s viability, the directors
focused on severe, but plausible, downside
scenarios relating to four of our principal risks:
Data loss/misuse; Resiliency; Macroeconomic;
and Legislative/regulatory change and
compliance. The scenarios are discussed in
more detail in the viability assessment section
following the description of our principal risks
(page 100).
Data loss/misuse
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.
This risk is considered in the viability
assessment.
Risk category
Risk movement
Operational
Stable
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.
Responsibility
Our Global Security Office sets policies and
standards related to the information security
programme. Every employee is responsible
for following security policies and protocols,
supported by a strong emphasis on training
and awareness.
Changes this year
External cyber security threats to businesses
continue to increase in complexity and evolve
in their nature and scope. Our threat-informed
defence programme concurrently monitors
and targets the most active threats to mitigate
and reduce risks. As our business continues to
change through both acquisitions and
technological developments, we remain
focused on the continuing need to survey the
internal and external threat landscape and
develop responses that support our strategy to
manage the risk.
Our security programme continues to improve
its maturity relative to industry frameworks
(e.g. US National Institute of Standards and
Technology), and we have further enhanced
our protection, detection and response
capabilities by strengthening security policies,
practices and training. We continue to invest in
the tools, people, resources and initiatives
necessary to maintain and improve our global
information security programme.
More information on our approach to treating
data with respect is available in our
Sustainable business section (pages 61-64).
Macroeconomic
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.
This risk is considered in the viability
assessment.
Risk category
Risk movement
Financial
Stable
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.
Responsibility
Our corporate and business unit finance
functions monitor our external landscape,
and work with business units to develop and
implement appropriate responses.
Changes this year
During 2023, the global economy saw stable
performance, when compared to 2022, with
the global Gross Domestic Product (GDP)
growing 2.6% (at March 2024). GDP is forecast
to soften in 2024 with modest growth in our
core markets (USA, Brazil and the UK) and the
risk of a recession scenario becoming less
likely.
Inflationary pressures continue to
progressively ease and are expected to
moderate further during 2024. We monitor
cost pressure points to mitigate inflation and
maintain a focus on cost management and
efficiency. As inflationary pressures ease,
central banks in the USA, Brazil and the UK are
expected to cut interest rates during 2024.
Despite economic consensus shifting to one of
cautious optimism, there remains uncertainty
around the outlook. We continue to perform
well competitively and access higher growth
opportunities, with a substantial quantum of
addressable opportunity. Businesses continue
to need to generate productivity gains while
delivering better digital experiences for their
customers; and our rich datasets, that are
delivered through technologically advanced
solutions, enable them to do this.
95
Experian plc
Annual Report 2024
Strategic report
We continue to analyse the impact of changes
in economic conditions on Group revenues and
have considered different economic scenarios
in our viability assessment. We will continue to
refine and assure the readiness of our
strategic options as external macroeconomic
factors develop.
We continue to monitor new and evolving
legislation relating to tax. With forthcoming
elections in 2024 in the USA and the UK, there
is an increased risk that new administrations
may consider tax reform proposals. These
could result in a change to our effective tax
rate and cash tax payments.
Legislative/regulatory change
and compliance
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.
This risk is considered in the viability
assessment.
Risk category
Risk movement
Strategic
Regulatory
Operational
Increasing
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.
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.
Responsibility
Our Legal, Government Affairs and Compliance
functions work with our business units to
understand the impact of relevant laws and
regulations, including any new or changed
regulatory interpretations and associated
implications. Our business units put in place
appropriate procedures and controls designed
to ensure compliance.
Changes this year
We continue to see regulatory and legislative
agendas impacting key areas of our business
in a number of regions, with potential impacts
on some of our business practices. Regulators
in some regions have become increasingly
aggressive, including taking new or novel
interpretations of existing regulations which in
some cases deviate significantly from
well-established practices and their historical
interpretations and actions. These actions
have, or in some cases could, result in
enforcement actions from some of our
principal regulators, some of which may have
to be challenged and resolved in court. We
highlight some significant updates below:
• In the USA, the Consumer Financial
Protection Bureau (CFPB) has increased its
supervisory and enforcement activities
generally in the financial services industry,
with a focus on accuracy, fairness, financial
inclusion and anti-discrimination. The CFPB
referred the results of its 2021 supervisory
examinations of our credit profile dispute
resolution process and Experian Boost
product to their Enforcement Division for
further investigation. We have responded to
their information requests related to the
Experian Boost service and are awaiting
whether any issues will be identified or
further action will be taken. With respect to
our credit profile dispute resolution process,
the CFPB is considering whether to pursue
formal enforcement on a number of issues,
including matters based on new and novel
interpretations of existing law with which we
disagree. The CFPB has also announced that
it will create new rules that will potentially
reinterpret various long-standing
requirements under the Fair Credit Reporting
Act (FCRA). At this point, we do not know the
full scope of the new rules that the CFPB may
be considering or when they will be
proposed.
• The US Federal Trade Commission (FTC) has
also generally increased its regulatory
activities. During the year, the FTC
commenced an investigation relating to our
marketing services business, which appears
to be focused on certain data and the
marketing of financial services. The FTC has
also issued an Advanced Notice of Proposed
Rulemaking covering a wide range of data
broker activities, including relating to
targeted advertising. At this point, we are not
aware whether their investigation will result
in further action, nor of the scope of any
privacy rules that the FTC may be
considering or when such rules, if any, will be
proposed.
• Some US state privacy laws have come into
effect that give consumers increased
transparency and rights to control the use of
data in certain areas. A number of other
states have similar privacy laws under
consideration. The continued proliferation
and application of these state laws may have
an impact on products and services, as well
as on compliance regimes, in particular
related to our marketing services business.
• Over the past year, the number of US class
action lawsuits has remained steady,
however individual consumer cases continue
to trend up year-on-year. While we are
managing the effects associated with these
investigations and lawsuits, the costs of
responding to the increased regulatory
scrutiny and defending litigation are rising
and consequently the risk of potential liability
and impact on some parts of our business
remains significant.
• In Brazil, the general data protection law
(LGPD) has been effective since September
2020, and created the Brazilian National Data
Protection Authority (ANPD), which has
powers over enforcement, investigation, and
regulation, including the determination of
rules and interpretation of data protection
law. While we have implemented our rigorous
compliance programme based on the
principles outlined in the law, we have
already seen some different regulatory
interpretations of these principles and how
they relate to our business, notably our
marketing services business. The ANPD has
increased its activities in issuing
interpretations of the law and, in specific
cases, bringing administrative proceedings,
including against governmental entities.
Risk management and principal risks
continued
Experian plc
Strategic report
96
• The Central Bank of Brazil (BCB) conducts
regular and ongoing supervisory
examinations of various aspects of our
payments and credit (loans) businesses.
The BCB has supervisory and enforcement
roles related to capital requirements,
anti-money laundering, products, cyber
security and risk management, among
others. The BCB has conducted supervisory
requests and audits relating to our regulated
payments and loan businesses, though no
enforcement actions have been initiated.
• The number of individual consumer cases in
Brazil has increased over the last year, many
of which relate to our Limpa Nome and credit
reference businesses.
• The UK Financial Conduct Authority (FCA) has
continued its regulatory oversight with the
issuance of its report on its Credit
Information Market Study (CIMS) and
Consumer Duty rules, both of which will have
some impacts on how we operate our
business in the UK. The CIMS report
proposes changes to how lenders share
information with credit bureaux and how
good outcomes are achieved for consumers
in the use of credit data. The FCA’s Consumer
Duty rules require firms to deliver good
outcomes, including fair value for consumers.
We have continued to see supervision by the
FCA around compliance with their rules and
principles, including our status under the
Consumer Duty rules, operational and
financial resilience, cyber and operational
risk.
• 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.
• In the EU, regulators and the European Court
of Justice remain active on regulations which
have the potential to impact our business,
including regulations over Artificial
Intelligence (AI) and cyber security, rulings
which could impact credit scores, and GDPR
interpretations which have the potential to
impact our credit reference business in
limited markets. For example, the Dutch Data
Protection Authority (the AP) has claimed 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, which is contrary to
established regulatory positions in our other
EU markets.
• In Australia, there are likely to be new privacy
regulations which could include additional
requirements for consent and expanding the
definition of ‘personal information’, which is
likely to impact our marketing services
business.
Resiliency
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.
This risk is considered in the viability
assessment.
Risk category
Risk movement
Operational
Increasing
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.
Responsibility
Our corporate and business technology teams,
assisted by the Business Continuity function,
are responsible for maintaining appropriate
primary and back-up infrastructure to
minimise disruption.
Changes this year
In common with many organisations, Experian
faces an increasing threat from ransomware
and other cyber attacks, including cyber
resilience threats to third parties critical to our
operations where we cannot switch them out
easily or quickly in the event of encountering a
cyber risk event. We continue to assess the
potential impact of these threats, as the nature
and sophistication of these attacks continually
evolves. Given this heightened external cyber
threat landscape, we consider this risk to be
increasing. Our global ransomware
preparedness and associated response
includes a number of key initiatives aimed at
continually improving our existing capability in
this area.
Throughout the year we experienced isolated
events that tested our plans and processes.
We continue to closely monitor our
infrastructure and processes to manage our
commitments to clients, consumers and
regulators.
We continue to progress the development and
standardisation of our major incident
management process across all regions to
further improve root cause analysis and trend
analysis so as to better understand the risk.
Migrating to the cloud presents an opportunity
to simplify the scale and complexity of our
product portfolio and technical estate as
reduced complexity drives down cost and
increases reliability. We are adopting a
strategic 'cloud first' model with consolidated,
cloud-adjacent co-located data centres. This
creates strategically configured services,
organised across regions and availability
zones, ensuring greater resilience.
A global initiative continues progress to
maximise business value and maintain
leadership through accelerated technology
transformation, delivering standardised
enterprise services and automating
'Everything as Code' to sustain delivery at
scale. The benefits of this are to create
increasingly sophisticated automation and
monitoring leading to a reduction in the time
taken to detect and resolve issues.
97
Experian plc
Annual Report 2024
Strategic report
Business conduct
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.
Risk category
Risk movement
Operational
Stable
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.
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.
Responsibility
Our Group Risk and Compliance functions set
policies and standards, including the Global
Code of Conduct. All employees are
accountable for understanding and following
our policies and conduct standards.
Changes this year
Regulators have continued to put public trust
and consumer and investor protection at the
centre of their mission statements and have
promoted prudent conduct risk management.
Our periodic employee surveys provide a clear
understanding of our approach to professional
and ethical standards as well as ensuring that
all employees know exactly what’s expected of
them individually. We continue to see strong
scores in our conduct questions in these
surveys and our people continue to attest to
our Global Code of Conduct. We monitor the
completion of Code of Conduct training and
have enhanced delivery processes to ensure
alignment across the Group.
We regularly evaluate our policies and related
procedures to ensure that we stay up to speed
with external and internal expectations.
Talent acquisition and retention
Our success depends on our ability to attract,
motivate and retain key talent while also
building future leadership.
Risk category
Risk movement
Operational
Stable
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 the 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.
Responsibility
Our business units work with the Human
Resources function to set and implement
talent management strategies.
Changes this year
We continue with our people strategy of
maximising our ability to attract, develop,
retain and grow talent.
We achieved Great Place to Work
(re)certification in 24 countries in June 2023,
with our highest ever participation rate, and
achieving better scores than in prior years. In
addition to high response rates, our latest
surveys continue to show strong engagement,
enablement and leadership scores.
Risks around labour market pressures remain
prevalent in the majority of our markets, with
the combination of demand for skills
(particularly technology disciplines) and wage
inflation being notable. We are, however,
experiencing reduced attrition rates across the
Group.
We recently introduced two internal schemes
to ensure effective development responses for
both leadership and talent, including access to
training and learning content for our
technology communities. We have also
invested in our Talent Acquisition team,
building out a new team in Hyderabad (India) to
increase capacity, particularly focused on
recruiting for technology-related roles.
Our employer brand continues to gain
momentum, underpinned by our compelling
purpose and a culture of diversity, inclusion
and belonging, which is well recognised and
attracts accolades in many of our markets.
Further information on our people agenda is
available in our Sustainable business section
on pages 65-67.
Competition
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.
Risk category
Risk movement
Strategic
Stable
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.
Examples of control mitigation
• We continue to research and invest in new
data sources, analytics, technology,
capabilities and talent to support our
strategic plan.
Risk management and principal risks
continued
Experian plc
Strategic report
98
• 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.
Responsibility
Our Corporate Development and Experian
Ventures teams, as well as all of our business
units, monitor the competitive landscape, to
develop and implement appropriate actions.
Changes this year
We are proactive in our efforts to evaluate
competitors and markets, and pursue
investments and enhancements to our data,
analytics, technology and capabilities where
appropriate, available and feasible.
Traditional competitors continue to pursue
differentiated data assets, adjacent vertical
expansion, and new geographic markets. In the
Consumer Services space, other firms have
become bigger competitors in recent years as
we have expanded in areas such as digital
marketplaces and identity protection. We feel
confident in Experian’s relative position and
competitive advantages, albeit the broader
landscape continues to evolve.
New and rapidly evolving technologies, such as
Artificial Intelligence, could also create new
paradigms in the application and management
of commercial data assets. Experian continues
to explore these opportunities to maintain our
competitive position.
Certain governments and central banks in
countries where we have credit bureaux are
collecting loan data from banks, principally for
systemic risk analysis, though some may
share individual loan data with lenders, which
has the potential to compete with some of our
credit reference data services. Both the timing
and whether any government agencies choose
to go down this route are uncertain.
There is a long-term competitive risk to
consider related to newer entrants building
information networks based on consumer
data, typically by leveraging 'open data'
frameworks and practices. While most of them
may not be trying to build a credit bureau or
fraud prevention business as such, this is not
many degrees away from our core business,
and is being closely monitored.
Investment outcomes
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.
Risk category
Risk movement
Strategic
Operational
Stable
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.
Responsibility
Our Corporate Development and Experian
Ventures teams, as well as our business
units, monitor and are responsible for the
investments we make to ensure outcomes
are in line with expectations.
Changes this year
We continue to analyse opportunities and
threats to our business model and work to
address such opportunities and threats
through acquisitions, investments, strategic
partnerships and new technologies where
appropriate.
As we continue to invest significantly in
acquisitions, the successful delivery of these
initiatives remains critical for achieving our
growth ambitions and expected returns. While
public company valuations have generally
declined in the year, price discipline remains
important in assessing privately owned
businesses. The changing market environment
continues to inform our investment strategy
and we remain focused on allocating capital
to the most important strategic priorities. For
example, as we strive towards our ambition for
Consumer Services to be recognised as the
No.1 platform globally for people to improve
their financial lives and save money, we have
brought smarter solutions to market through
products such as Experian Smart Money.
We continue to optimise our core diligence and
integration processes to bring greater risk
focus and prioritise key areas for management
attention. This includes enhancements to
integration processes such as a new HR
programme on change management and
revisited technology and information security
processes. In addition, we have developed our
integration capabilities globally so that we can
supplement any acquisitions with resources
with relevant experience, and leverage
knowledge across the regional teams to
manage integration risk effectively.
99
Experian plc
Annual Report 2024
Strategic report
Viability
The Group has continued to demonstrate its
resilient business model and diverse strategy,
both of which are described earlier in the
Strategic report. They exemplify our
underlying purpose of creating a better
tomorrow, how we create value for our
stakeholders and communities, and how our
data and analytics are helping address the
changing needs of consumers and businesses.
Our strategy has enabled our business to grow
and achieve consistently good financial results
over the past decade, despite changes in the
economic cycle.
Our viability assessment focuses on the
expected future solvency of the Group in
the face of the more severe, but plausible,
unexpected events. We use the liquidity
modelling from the going concern assessment
as a base, and layer on the effects of downside
scenarios to assess the magnitude and
practicality of measures we could take to
continue trading in the face of such events.
We are not expecting the current economic
environment, under any plausible
circumstances, to develop into a scenario
that could threaten our viability.
We consider current-year business
performance and our future prospects by
conducting a regular cycle of strategic
planning, budgeting and forecasting. These
processes appraise revenue, Benchmark
EBIT, cash flows, dividend cover, signed and
potential acquisitions, committed and forecast
funding, liquidity positions and other key
financial ratios, including those relevant
to maintaining our investment-grade
credit ratings.
Solvency
The Group had:
• at 31 March 2024, undrawn committed bank
borrowing facilities of US$2.4bn, which have
an average remaining tenor of four years
(2023: three years),
• only one borrowing facility covenant,
requiring Benchmark EBIT to exceed three
times net interest expense before financing
fair value remeasurements (as at 31 March
2024, our cover is 15 times), and
• Benchmark operating cash inflows of
US$1.9bn and Benchmark interest expense
of US$0.1bn for FY24.
Assessment period
There are a wide variety of time horizons
relevant to managing our business and some
of these are highlighted in the chart below.
In conducting our viability assessment, we
have focused on a three-year timeline because
we believe our three-year financial planning
process provides the strongest basis for
reviewing the outlook for our business
beyond the current financial year.
The assessment process
While we assess our prospects throughout
our planning cycle, we specifically review our
three-year growth expectations and the
external environment as part of the annual
strategic planning process. The Board
participates in this review, using the January
strategy meeting as a focal point.
Assessment of viability
The Group continues to be subject to its
principal risks, which we submit to a rigorous
process of continuous reassessment (see the
principal risks section on pages 94 to 99 in the
Strategic report). We have considered which
principal risks could have the most significant
and direct impact on the viability of the Group
during the three-year period of assessment,
and they are shown opposite, with the
scenarios used to model those risks.
Climate-related risks and financial impacts
have also been assessed but are not
considered material over the period of
viability assessment (see the TCFD statement
on page 70).
Our modelling shows that:
• under our harshest ‘severe but plausible’
scenario (which could cost us around
US$1.6bn over three years), we would
comfortably maintain sufficient drawn and
undrawn borrowing capacity and satisfy all
borrowing facility covenants,
• further significant headroom could be made
available by scaling back capital investment
or operating expenditure, reducing returns
to shareholders, or increasing our target
leverage range, and
• in all scenarios, our debt covenant would be
comfortably satisfied.
The results of the scenario testing show that,
due to our diversified nature – which includes
significant counter-cyclical protection, the
resilience of the core business, its substantial
free cash flows and its strong investment-
grade credit ratings – we would withstand the
considered scenarios were these to occur
during the forecast period.
The directors also reviewed and considered
the outcome of the reverse stress test. This
demonstrated that only a catastrophic fall in
cash flows, well beyond that which could
plausibly occur, would exhaust all headroom
in the viability model.
In the event of such a significant scenario
occurring, management would have a number
of more severe mitigating cost reduction or
financing actions, over and above those
modelled in our base scenario, which could be
taken to safeguard the viability of the Group
and provide further additional headroom.
Viability and going concern
1 year
2 years
3 years
5 years
10 years +
Typical service life of data assets
Investment appraisal – acquisitions and organic
Share incentive plans
IT systems development
Financial plan including
cash flow forecasts
Long-term
financing –
bonds
Medium-term
financing –
revolving credit
Management
succession
planning
Detailed budgets
Pensions
Climate change
Time horizons affecting prospects
Experian plc
Strategic report
100
Key assumptions
The directors have made the following key
assumptions:
• The Group continues to achieve strong
cash flow conversion and maintains its
investment-grade credit ratings such that
funding in the form of capital markets debt,
committed bank borrowing facilities or
alternatives is available in all plausible
market conditions to renew debt as it
matures and to raise new debt, maintaining a
Net debt/Benchmark EBITDA leverage range
of 2.0–2.5x, in line with our target range.
• Effective tax rates remain broadly stable
(before the impact of any changes of
legislation) over the medium term.
• In assessing viability, it is assumed that the
detailed risk management process as
outlined on page 93 captures all plausible
risks, and that the mitigating actions are
implemented on a timely basis and have
the intended impact.
Viability statement
Based on their assessment of prospects and
viability, and the Board’s rigorous assessment
of the emerging and principal risks, the
directors confirm that they have a reasonable
expectation that the Group will be able to
continue in operation and meet its liabilities as
they fall due over the three-year period ending
31 March 2027. Looking further forward, the
directors have considered whether they are
aware of any specific relevant factors beyond
the three-year horizon that would threaten
the long-term financial stability of the Group
and have confirmed that, other than the
uncertainty surrounding the geopolitical and
macroeconomic environment, they are not
aware of any.
Going concern statement
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 to continue to meet their liabilities
as they fall due 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.
Strategic report
This Strategic report was approved by a duly
authorised committee of the Board of directors
on 14 May 2024 and signed on its behalf by:
Charles Brown
Company Secretary
14 May 2024
Principal risk and scenario
Impact modelling
Modelling details
Data loss/misuse and Resiliency
Leading to serious reputational and brand
damage, legal/regulatory penalties and
class-action litigation.
• We assessed the maximum credible extent of
a ransomware incident and modelled the
likely financial impacts through loss of
revenue, dispute and regulatory actions,
and the costs of remediation.
• We considered a ransomware scenario
involving sensitive consumer financial or
health-related data. We modelled the effects
of reputational damage – significant
reduction in key strategic client revenue,
as well as effects across the board in the
affected business, and indirect effects in
other businesses and regions. We modelled
the costs of contacting consumers affected
and offering free credit repair services, the
impact of likely legal and regulatory actions,
less insurance recoveries anticipated. We
also benchmarked our modelling to market
data available for costs disclosed by others in
similar circumstances.
Macroeconomic
The uncertainty surrounding the geopolitical
and macroeconomic environment, in particular
increased inflation and the raising of interest
rates.
• We assessed one or more of our major
countries of operation, modelling significant
economic deterioration, currency weakness
or restriction.
• We modelled the impact of growth stagnating
over the three-year assessment period, using
statistical analysis of historical Group results
in previous economic downturns.
Legislative/regulatory change
and compliance
Changing how we operate our business.
• We assessed the maximum credible extent of
simultaneous legal actions in two of our core
markets.
• We modelled the likely financial impacts,
after potential insurance recoveries, using
our history and professional advice on the
levels of fines and penalties in the industry
and what is permitted by regulatory
enforcement.
Principal risks and viability scenarios
101
Experian plc
Annual Report 2024
Strategic report
Governance
In this section
103 Chair’s introduction
106 Board of directors
109 Corporate governance report
122
Nomination and Corporate Governance
Committee report
128 Audit Committee report
136 Report on directors’ remuneration
160 Directors’ report
Experian plc
Governance
102
103
Experian plc
Annual Report 2024
Governance
information on this later in this report,
including Esther’s reflections on the induction
process. During the year, Louise Pentland
became Chair of the Remuneration Committee
(on 1 January 2024) in place of Alison Brittain,
our Senior Independent Director, who remains
in that role. As always, these events and
changes had been well planned and
considered by the Nomination and Corporate
Governance Committee.
I am pleased to report that the Experian Board
exceeds the FTSE Women Leaders Review
targets, with 45% female Board representation
and, as noted above, Alison Brittain is Experian’s
Senior Independent Director. We also exceed
the Parker Review targets for director ethnicity.
While this is all positive, the Board will continue
to oversee the development of an inclusive
environment, and ensure a diverse pipeline,
among its many other activities.
The Nomination and Corporate Governance
Committee also spent time during the year
reviewing executive succession health and
the talent development pipeline. Within the
business, we review and update succession
plans quarterly to assess the strength of the
pipeline, mitigate risk and to inform our talent
development strategy. As well as this review,
there was an update to the Committee on the
broader talent development strategy, which
included details of leadership development
opportunities within the wider leadership pool,
and a focus on early careers (and building a
pipeline of diverse talent), including potential
development opportunities for colleagues
through the Experian University.
Chair’s introduction
updates on performance and plans. Board
members appreciate being able to spend time
with the business and with colleagues, and
enjoy these visits and meetings which allow
them to get a greater sense of progress,
developments and culture, and hear the views
and perspectives of colleagues.
We also recognise that our success and
growth, as well as depending on the significant
contributions from colleagues, also relies on
the Board taking decisions for the benefit of
our shareholders and having regard to all
stakeholders. Throughout the year, the Board
draws on the engagement of the business with
stakeholders, and updates are frequently
provided to the Board (including consumer
credit metrics, client and consumer operational
highlights, and details of supplier engagement
and outlay). I am available to meet shareholders
and engage on various topics, including Group
strategy, and Board composition. Committee
chairs are available to meet shareholders
throughout the year, and the Board receives
updates on shareholder sentiment at every
Board meeting. Our Remuneration Committee
Chair, Louise Pentland, met the UK and Ireland
People Forum in March 2024, and provided
feedback to the Board on the matters raised
and discussed.
Colleagues
There were no changes to Board composition
during the year, and more recently appointed
Board members continued to be onboarded.
Esther Lee, who is very well placed, qualified
and experienced to support Experian with
her extensive knowledge of consumers and
insight into their needs, was appointed as a
non-executive director immediately prior to
the year under review. Esther’s induction took
place during FY24, and we provide more
Chair’s introduction
I am pleased to present, on behalf of the Board,
the Corporate governance report of the
Company for the year ended 31 March 2024,
and I am grateful to Board members, the
senior management team, and especially
Experian colleagues, for the support,
determination and ambition they have shown
throughout the year. Despite continued market
challenges, we have functioned well and our
commitment to strong and robust corporate
governance continues. This supports Experian
in promoting long-term sustainable success
for our shareholders and allows us to continue
to help Experian contribute to wider society.
This report provides details about the Board
and its committees, an explanation of the
various roles and responsibilities, and provides
an insight into their activities over the year.
We work to ensure that strong corporate
governance standards and processes remain
embedded throughout the Group, which allows
us to make sure there is: continued good
oversight of strategy, operations, risk and
control; appropriate challenge; a robust
decision-making process; and the necessary
support and guidance for the senior
management team and the business.
Engagement
During the year, the Board visited our North
America operational headquarters in Costa
Mesa, California, USA and spent time there
reviewing the Group strategy, holding Board
and committee meetings, and meeting
colleagues. The Board also spent time during
the year with our EMEA and Asia Pacific, and
the UK and Ireland, businesses, reviewing the
strategy in both regions, spending time with
senior leaders and colleagues, and receiving
We take our commitment to
strong and appropriate corporate
governance seriously.
Mike Rogers
Chair
Experian plc
Governance
104
Board performance review
As part of our agreed performance review
cycle, we conducted an internal Board
performance review during the year. The basis
of the review was an appraisal by the Board of
the outcomes and associated actions from the
external review performed by Manchester
Square Partners (MSP) in the prior year. As well
as reviewing the progress on the published and
other MSP recommendations, the Board and
each principal Board committee also discussed
their performance for FY24 and, having
concluded among other things that the Board
and committees were operating effectively, the
Board agreed new focus areas for FY25. You
can read more about these, and the review
process, on pages 126 and 127.
Strategy
Overseeing and implementing strategy are key
responsibilities of the Board and were reflected
during the year through several activities.
The Board spent a number of days together
reviewing the Group’s FY25 strategy, reviewed
the Group’s environmental, social and
governance (ESG) strategy, and received
a mid-year update on strategic progress,
as well as regular updates from the Chief
Executive Officer, Chief Financial Officer and
Chief Operating Officer. The Audit Committee
reviewed the strategies of the key second
line of defence Risk, Information Security and
Global Compliance functions, and received
regular updates from them, as well as dealing
with the Committee's regular business.
Conclusion
I hope you find this Corporate governance
report helpful in understanding the governance
processes we have at Experian, and what we
have done in applying the principles and
provisions of the UK Financial Reporting
Council's (FRC) UK Corporate Governance Code
2018 (the Code). The Board is well placed to
provide the strategic oversight and stewardship
required to ensure Experian continues to
achieve long-term sustainable success. I can
also confirm that the Audit Committee and
Nomination and Corporate Governance
Committee started to receive updates in
anticipation of the new Code (published by the
FRC in January 2024), which included details
of work already underway in the business.
While the new Code (with the exception of one
provision) will apply to financial years beginning
on or after 1 January 2025, the Board considers
it appropriate to ensure in the coming period
that plans are being developed or are already
in place to ensure continued Code compliance.
The 2024 Annual General Meeting will be held
on Wednesday 17 July 2024. Further details will
be published in the Notice of Annual General
Meeting, which has been sent or made available
to shareholders, and is also available on the
Company’s website,
experianplc.com
.
Statement of compliance
For the year ended 31 March 2024, the
Company complied with all the provisions of
the Code (as published in July 2018), the UK
Financial Conduct Authority’s (FCA) Disclosure
Guidance and Transparency Rules sourcebook
sections 7.1 and 7.2 (which set out certain
mandatory disclosure requirements), the FCA’s
Listing Rules 9.8.6R, 9.8.7R and 9.8.7AR which
include the ‘comply or explain’ requirement and,
on a voluntary basis, Directors’ Remuneration
Reporting Regulations and Narrative Reporting
Regulations. These documents are publicly
available as follows:
• The Code can be found at
frc.org.uk
.
• The FCA’s Disclosure Guidance and
Transparency Rules sourcebook as
well as Listing Rules can be found at
handbook.fca.org.uk
.
• The Directors’ Remuneration Reporting
Regulations and Narrative Reporting
Regulations can be found at
gov.uk,
and/or
legislation.gov.uk
.
In addition, the FRC Guidance on Risk
Management, Internal Control and Related
Financial and Business Reporting can be found
at
frc.org.uk
.
Chair’s introduction
continued
105
Experian plc
Annual Report 2024
Governance
Application of the UK Corporate Governance Code 2018
The FRC promotes high-quality corporate
governance and reporting through the UK
Corporate Governance Code (the Code),
which all companies with a Premium Listing
on the London Stock Exchange are required
to either comply with in full, or explain why,
and to what extent, they do not fully comply
(‘comply or explain’). This Governance
section of the Annual Report explains how
we have applied each of the Code principles,
as set out below.
Section 1: Board Leadership and
Company Purpose
Principle A:
A successful company is led
by an effective and entrepreneurial board,
whose role is to promote the long-term
sustainable success of the company,
generating value for shareholders and
contributing to wider society. See pages 106
and 107.
Principle B:
The board should establish the
company’s purpose, values and strategy, and
satisfy itself that these and its culture are
aligned. All directors must act with integrity,
lead by example and promote the desired
culture. See pages 113 and 114.
Principle C:
The board should ensure that
the necessary resources are in place for the
company to meet its objectives and measure
performance against them. The board
should also establish a framework of
prudent and effective controls, which
enable risk to be assessed and managed.
See page 115.
Principle D:
In order for the company to
meet its responsibilities to shareholders and
stakeholders, the board should ensure
effective engagement with, and encourage
participation from, these parties. See pages
117 to 121.
Principle E:
The board should ensure that
workforce policies and practices are
consistent with the company’s values and
support its long-term sustainable success.
The workforce should be able to raise any
matters of concern. See page 121.
Section 2: Division of Responsibilities
Principle F:
The chair leads the board and
is responsible for its overall effectiveness
in directing the company. They should
demonstrate objective judgment throughout
their tenure and promote a culture of
openness and debate. In addition, the chair
facilitates constructive board relations and
the effective contribution of all non-executive
directors, and ensures that directors receive
accurate, timely and clear information.
See page 116.
Principle G:
The board should include
an appropriate combination of executive
and non-executive (and, in particular,
independent non-executive) directors,
such that no one individual or small group
of individuals dominates the board’s
decision-making. There should be a clear
division of responsibilities between the
leadership of the board and the executive
leadership of the company’s business.
See page 116.
Principle H:
Non-executive directors should
have sufficient time to meet their board
responsibilities. They should provide
constructive challenge, strategic guidance,
offer specialist advice and hold management
to account. See page 121.
Principle I:
The board, supported by the
company secretary, should ensure that it
has the policies, processes, information,
time and resources it needs in order
to function effectively and efficiently.
See pages 116 to 121.
Section 3: Composition, Succession
and Evaluation
Principle J:
Appointments to the board
should be subject to a formal, rigorous and
transparent procedure, and an effective
succession plan should be maintained for
board and senior management. Both
appointments and succession plans should
be based on merit and objective criteria and,
within this context, should promote diversity
of gender, social and ethnic backgrounds,
cognitive and personal strengths. See pages
123 to 125.
Principle K:
The board and its committees
should have a combination of skills,
experience and knowledge. Consideration
should be given to the length of service of
the board as a whole and membership
regularly refreshed. See page 109.
Principle L:
Annual evaluation of the board
should consider its composition, diversity
and how effectively members work together
to achieve objectives. Individual evaluation
should demonstrate whether each director
continues to contribute effectively.
See pages 126 and 127.
Section 4: Audit, Risk and Internal
Control
Principle M:
The board should establish
formal and transparent policies and
procedures to ensure the independence and
effectiveness of internal and external audit
functions and satisfy itself on the integrity
of financial and narrative statements.
See pages 133 to 135.
Principle N:
The board should present a fair,
balanced and understandable assessment
of the company’s position and prospects.
See page 132.
Principle O:
The board should establish
procedures to manage risk, oversee the
internal control framework, and determine
the nature and extent of the principal risks
the company is willing to take in order to
achieve its long-term strategic objectives.
See page 135 and the Risk section of the
Strategic report.
Section 5: Remuneration
Principle P:
Remuneration policies and
practices should be designed to support
strategy and promote long-term sustainable
success. Executive remuneration should be
aligned to company purpose and values, and
be clearly linked to the successful delivery
of the company’s long-term strategy.
See pages 156 to 158.
Principle Q:
A formal and transparent
procedure for developing policy on executive
remuneration and determining director and
senior management remuneration should be
established. No director should be involved
in deciding their own remuneration outcome.
See pages 136 to 138 and page 142.
Principle R:
Directors should exercise
independent judgment and discretion
when authorising remuneration outcomes,
taking account of company and individual
performance, and wider circumstances.
See pages 137 to 140.
Experian plc
Governance
106
Board of directors
Mike Rogers
Chair
Appointed to the Board on 1 July 2017, and as
Chair (and Chair of the Nomination and Corporate
Governance Committee) on 24 July 2019.
Other current roles:
Mike is the non-executive
Chair of Admiral Group PLC.
Skills and contribution:
Mike brings over
30 years of banking and financial services
experience, with a reputation for strategic
insight and focused execution. His current and
previous board-level experience, both executive
and non-executive, is of huge value to the
Experian Board.
Experience:
Mike was Group Chief Executive
Officer of LV= Group from 2006 until 2016, during
which time he grew the organisation into a
significant player in the life and general insurance
market. Before that, Mike was with Barclays plc
for more than 20 years, holding a number of
senior roles, most recently as Managing Director,
UK Retail Banking. He was previously a
non-executive director of the Association
of British Insurers and NatWest Group plc
and Chair of Aegon UK.
Caroline Donahue
Non-executive director
Appointed to the Board on 1 January 2017.
Other current roles:
Caroline is on the Board of
GoDaddy Inc., Versapay and Art on the Ave NYC.
Skills and contribution:
Caroline brings
extensive experience of international markets
and technology as well as knowledge of
consumer sales and marketing, innovation and
consumer-centricity. The Board also benefits
from her insight and extensive experience in
mass-market, digital, multi-channel and B2C
distribution, marketing, and brand and sales
management.
Experience:
Caroline previously held roles at
Intuit where she was Executive Vice President,
Chief Marketing and Sales Officer; Senior Vice
President, Sales and Channel Marketing; and
Vice President and Director of Sales. She also
held sales and channel management roles at
Knowledge Adventure, NeXT Computer and
Apple, Inc. Caroline was previously on the
Executive Committee of Northwestern C100,
the Board of the Computer History Museum,
the Board of Emerge America and a mentor
for She-Can.
Brian Cassin
Chief Executive Officer
Appointed to the Board as Chief Financial
Officer on 30 April 2012, and as Chief Executive
Officer on 16 July 2014.
Other current roles:
Brian is a non-executive
director (and the Senior Independent Director)
of J Sainsbury plc. He also sits on its Audit and
Nomination Committees.
Skills and contribution:
Brian brings strong
leadership, a clear view of strategic objectives
and decisive management skills to this role.
He has strong financial and commercial
acumen and a broad range of operational
competencies. His non-executive role
augments his strong board-level experience.
Experience:
Brian was previously the Chief
Financial Officer of Experian and, before that,
Managing Director at Greenhill & Co. He has
also held various senior roles at Baring
Brothers International and the London
Stock Exchange.
Luiz Fleury
Non-executive director
Appointed to the Board on 8 September 2015.
Other current roles:
Luiz is a Board member
of DOTZ S.A.
Skills and contribution:
Luiz has spent most
of his career in financial services and has
extensive insight and deep local knowledge of
the Brazilian financial market. His considerable
boardroom experience adds to the strength,
depth and effectiveness of our Board.
Experience:
Luiz has held Chief Executive roles
at Cetip S.A., Banco Ibi and Redecard, together
with senior finance and investment positions at
Banco Citibank S.A., Banco Marka S.A. and C&A
Brenninkmeyer Brasil. Luiz was President and
a member of the Executive Board at Cetip S.A.,
and a Board member of Grupo Sequóia de
Logística, Eneva S.A., Discount Malls do Brasil,
Banco Ibi, FHV Holdings Ltda., Magnopus, Inc.
and Carrefour Brazil (the trading name of
Atacadão S.A.).
Lloyd Pitchford
Chief Financial Officer
Appointed to the Board on 1 October 2014.
Other current roles:
Lloyd is a non-executive
director (and chairs the Audit Committee) of
Bunzl plc. He also sits on its Remuneration,
Nomination and Sustainability Committees.
Skills and contribution:
Lloyd is a qualified
accountant and holds an MBA. He has deep
financial, operational and strategic skills,
built through a career working in a diverse
range of globally complex growth-oriented
organisations. He brings additional perspectives
to Experian from his non-executive role with
Bunzl plc. Lloyd sponsors Experian’s
environmental, social and governance (ESG)
and employee mental health programmes.
Experience:
Lloyd has over two decades of
experience in financial and commercial
leadership positions across a range of dynamic
industries, including 14 years as Group Chief
Financial Officer. Before joining Experian, Lloyd
held a wide portfolio of finance, technology and
operational responsibilities: as Chief Financial
Officer of Intertek Group plc; in senior finance
roles (including Group Financial Controller) at
BG Group plc; and in financial and commercial
roles at Mobil Oil.
Au
Au
Nm
Nm
Re
Re
Jonathan Howell
Non-executive director
Appointed to the Board on 1 May 2021, and as
Chair of the Audit Committee on 1 July 2022.
Other current roles:
Jonathan is the Chief
Financial Officer of The Sage Group plc.
Skills and contribution:
Jonathan has a wealth
of financial, strategic, technology and regulatory
expertise, encompassing both B2B and B2C,
which is of huge benefit to Experian. He is a
highly regarded FTSE 100 Chief Financial Officer,
and also brings considerable executive and
non-executive UK-listed boardroom experience.
Jonathan's financial expertise and experience
ensure effective leadership of our Audit
Committee.
Experience:
Jonathan was previously an
independent non-executive director and Chair
of the Audit and Risk Committee of The Sage
Group plc., for five years while serving as Group
Chief Financial Officer of Close Brothers Group plc
for ten years until November 2018. Before that
he was Group Chief Financial Officer at London
Stock Exchange Group plc for nine years and has
also been a non-executive director of EMAP plc
and Chair of FTSE International. The early part
of Jonathan's career was at Price Waterhouse
where he qualified as a chartered accountant.
Nm
Re
Au
Nm
Re
Code principle
Board Leadership
107
Experian plc
Annual Report 2024
Governance
Kathleen DeRose
Non-executive director
Appointed to the Board on 1 November 2022.
Other current roles:
Kathleen is a Professor at
the New York University (NYU) Stern School of
Business, the Director of the NYU Stern Fubon
Center for Technology, Business, and Innovation
and the Director of its FinTech Initiative. She is
a non-executive director of London Stock
Exchange Group plc, Voya Financial, Inc. and
Enfusion, Inc.
Skills and contribution:
As well as bringing
significant FinTech experience to the Experian
Board, Kathleen brings financial services
expertise with a focus on investment
management. She also has considerable
non-executive listed boardroom experience.
Experience:
Prior to her current roles, Kathleen
had an extensive career in global financial
services, including at Credit Suisse, Hagin
Investment Management, Bessemer Trust,
Deutsche Asset Management, and Chase
Manhattan Bank.
Au
Au
Au
Nm
Nm
Nm
Re
Re
Re
Louise Pentland
Non-executive director
Appointed to the Board on 1 November 2022,
and as Chair of the Remuneration Committee
on 1 January 2024.
Other current roles:
Louise is Chief Counsel for
the Disney Parks Experiences and Products
segment of The Walt Disney Company, and a
non-executive director of Hitachi Ltd and Pacific
Mutual Holdings Company.
Skills and contribution:
Louise brings
significant legal and regulatory experience
from FinTech, technology and digital industries,
and also has listed non-executive boardroom
experience. Having spent many years as a
senior executive at leading global technology
companies, Louise has a deep understanding
of business, law, human resources (including
remuneration committee management),
leadership, innovation and culture. Louise also
has extensive experience in intellectual property,
corporate governance and data privacy.
Experience:
Louise was most recently
Executive Vice President and Senior Adviser to
the CEO at PayPal Holdings, Inc. Responsibilities
included leading its legal and regulatory
requirements across all markets working with
international regulators, overseeing PayPal's
Environmental, Social and Governance strategy
and impact, running the Human Resources
function and leading intellectual property and
innovation activities. Prior to PayPal, she held a
wide range of senior roles at Nokia Corporation,
and had also spent time at Avon Cosmetics
following qualification as a solicitor.
Craig Boundy
Chief Operating Officer
Appointed to the Board on 21 July 2022.
Skills and contribution:
Craig has excellent
commercial and operational expertise, and
will continue to progress Experian’s journey
of innovation-led growth. He has a strong
commitment to fostering diversity, equity and
inclusion within Experian, and is the global lead
for race and ethnicity.
Experience:
Craig’s roles at Experian have
included Chief Executive Officer (CEO) of
Experian North America, and Managing Director
of Experian UK and Ireland. Previously, he was
CEO of Global Operations at Logica UK, Chief
Operating Officer (COO) at Cable & Wireless’
businesses in Europe, US and Asia, and Sales
Director and COO at Energis. His early career
was with BT.
Esther Lee
Non-executive director
Appointed to the Board on 31 March 2023.
Other current roles:
Esther is a non-executive
director (and Chair of the Nomination and
Governance Committee) of The Clorox Company
and a non-executive director of Pearson plc.
Skills and contribution:
Esther’s extensive
marketing expertise brings a strong consumer
perspective to the Experian Board. The Board
benefits from her experience and knowledge in
developing consumer and customer strategies
to enable growth, driving consumer-centric
innovation and business transformation, and
developing brands and engaging consumers.
In addition, her significant executive leadership
experience brings to the Board perspectives
on corporate strategy, operating model, talent
and culture.
Experience:
Esther previously held several
corporate executive roles. At MetLife, she was
Executive Vice President and Global Chief
Marketing Officer. She has also held senior
leadership roles at AT&T and The Coca Cola
Company. Prior to her corporate career, Esther
spent several years in leadership roles in the
advertising industry at global agency networks
such as WPP and Havas.
Alison Brittain
Senior Independent Director
Appointed to the Board on 1 September 2020, and
as Senior Independent Director on 21 July 2022.
Other current roles:
Alison is Chair of English
football's Premier League and Dunelm Group plc
(where she chairs the Nominations Committee),
a non-executive director of British Airways plc,
and Chair of the King's Trust Group of charities
(formerly the Prince's Trust Group).
Skills and contribution:
Alison is a highly
versatile business leader and general manager,
who holds an MBA and brings considerable
experience of operating in consumer-facing
service environments. She has over 25 years’
senior management experience in major
financial institutions and consumer businesses.
The Board benefits from her significant
board-level experience.
Experience:
Alison was previously CEO of
Whitbread PLC, group director with Lloyds
Banking Group and a board director of
Santander UK PLC. She held senior roles at
Barclays Bank, and was a non-executive director
of Marks & Spencer Group PLC. She has been
a member of the UK Prime Minister's Advisory
Councils, under several administrations, and
was awarded a CBE in the 2019 UK New Year
Honours list.
Au
Member of the Audit Committee
Member of the Nomination and
Corporate Governance Committee
Committee Chair
Nm
Au
Nm
Re
Company Secretary:
Charles Brown FCG
Independent Auditor:
KPMG LLP, Chartered
Accountants and Recognized Auditor
Code principle
Board Leadership
Member of the Remuneration Committee
Re
Experian plc
Governance
108
Board and Group Operating Committee diversity
Board
Valdemir Bertolo
President of Experian Brazil
Rick Gallagher
Chief Investment Officer
Joe Manna
Group President Global Technology
Jennifer Schulz
CEO Experian North America
Craig Boundy
Chief Operating Officer
Darryl Gibson
Group General Counsel
Lloyd Pitchford
Chief Financial Officer
Jacky Simmonds
Chief People Officer
Charles Brown
Group Company Secretary
Malin Holmberg
CEO Experian EMEA and Asia
Pacific
Nadia Ridout-Jamieson
Chief Communications Officer
Brian Cassin
Chief Executive Officer
Alex Lintner
CEO Experian Software Solutions
José Luiz Rossi
Managing Director UK and Ireland
Board members
Number of
Board senior
positions
1
Executive management
2
Number
%
Number
%
Men
6
55
3
10
71
Women
5
45
1
4
29
Other
–
–
–
–
–
Not specified/prefer
not to say
–
–
–
–
–
Board members
Number of
Board senior
positions
1
Executive management
2
Number
%
Number
%
White British or other
White (including
minority-white
groups)
9
82
4
11
78
Mixed/Multiple
Ethnic Groups
—
—
—
—
—
Asian/Asian British
1
9
—
—
—
Black/African/
Caribbean/
Black British
—
—
—
—
—
Other ethnic group,
including Arab
1
9
—
3
22
Not specified/prefer
not to say
—
—
—
—
—
1
As defined by the FCA, senior positions on the Board comprise the Chair, Chief Executive Officer, Chief Financial Officer and Senior Independent non-executive Director.
2
Executive management comprises the members of the Group Operating Committee, including the Chief Executive Officer, the Chief Financial Officer and the Chief Operating Officer.
All information on the Board and Executive management gender identity and ethnic background was manually gathered.
Gender identity
Ethnic background
Group Operating Committee
Board
Executive management
Board
Executive management
Full biographies of the Group Operating Committee
members can be found at
experianplc.com/
about-us/board-and-senior-management
Code principle
Board Leadership and Company Purpose
109
Experian plc
Annual Report 2024
Governance
Board composition
Board meetings
Chair
Executive
Independent
non-executive
Men
70
%
Women
30
%
40 – 49
50 – 59
60 – 69
American
Brazilian
British
Irish
Meeting
attendance
100
%
Financial
services
FinTech
Consumer
Technology/
Information
Financial
qualification
Legal/
Regulation
Serving
listed
executive
Mike Rogers
Alison Brittain
Kathleen DeRose
Caroline Donahue
Luiz Fleury
Jonathan Howell
Esther Lee
Louise Pentland
Composition
The Board currently comprises the Chair, Mike
Rogers, three executive directors and seven
independent non-executive directors, including
the Senior Independent Director, Alison
Brittain. On 1 January 2024, Louise Pentland
was appointed as Chair of the Remuneration
Committee, succeeding Alison. There were no
other Board or committee changes during the
year under review. The directors’ biographies,
along with each of their individual dates of
appointment, are set out on pages 106 and 107.
The composition of the Board is subject to
ongoing review, with considerations that
include diversity and maintaining the
appropriate balance of skills, experience,
knowledge, independence and tenure.
Diversity remains a key consideration during
any recruitment. The Nomination and
Corporate Governance Committee ensures a
formal, rigorous and transparent procedure
when considering candidates for appointment
to the Board, to ensure Board composition
remains appropriate and diverse. The Board
recognises the benefits that diversity brings
and the importance of having a range of views,
insights, perspectives and opinions, and how
this range enhances Board decision-making
and effectiveness. The Board is satisfied that
its current composition exhibits an appropriate
mix of skills, professional and industry
backgrounds, geographical experience and
expertise, gender, age, tenure and ethnicity.
Board and senior management diversity
Diversity and inclusion are embedded within
our culture. The Board remains fully
committed to diversity and strongly believes
in having an inclusive culture that recognises
the importance of gender, social and ethnic
diversity, and the benefits gained from different
perspectives are integral to business success
and our strategy.
The UK Financial Conduct Authority (FCA), in its
capacity as the UK Listing Authority, requires
listed companies to publish information on
gender and ethnic representation on the Board
and in executive management (for Experian,
this means our Group Operating Committee,
which comprises the most senior Group
executives). The key diversity and inclusion
metrics for Board members and executive
management are set out on page 108.
The figures are stated as at 31 March 2024.
Details of the tenure, age, skills and experience
of the Board are included on this page.
Non-executive directors’ key skills and
experience
The Board recognises the relationship
between achieving the Company strategy and
objectives and the skills needed on the Board
now and in the future. The mix of key skills,
experience and knowledge of the non-
executive directors set out in the matrix below
provides insight for the Board and the
Nomination and Corporate Governance
Committee to ensure the Board and its
committees are optimally composed to
maximise their effectiveness.
Role of the directors
The Company is led by an effective and
committed Board, which is collectively
responsible for the long-term success of
the Company. The Board’s role is to provide
entrepreneurial leadership, and it sets the
Company’s purpose, strategy and values,
ensuring these are aligned with our culture.
It is responsible for monitoring progress
towards Experian’s strategic objectives,
approving proposed actions and ensuring
the necessary resources are available for
long-term sustainable success, to generate
value for shareholders and contribute to
wider society. The Board is supported by its
committees, the executive directors, principal
subsidiaries and the Group Operating
Committee, while retaining exclusive control
and oversight over the decisions set out in the
Schedule of Matters Reserved to the Board.
Board independence
Board tenure
Chair and non-executive directors' key skills and experience
Gender diversity of Group Operating
Committee and direct reports
Age
Nationality
Scheduled
meetings
6
Governance at a glance
The Chair was independent on appointment
This includes indicated primary nationality
in respect of dual-nationals
The length of time each of the directors has served on the Board, as at 31 March 2024.
Brian
Cassin
Lloyd
Pitchford
Luiz
Fleury
Caroline
Donahue
Mike
Rogers
Alison
Brittain
Jonathan
Howell
Craig
Boundy
Kathleen
DeRose
Louise
Pentland
Esther
Lee
11y 11m
9y 6m
8y 7m
7y 3m
6y 9m
3y 7m
2y 11m
1y 8m
1y 5m
1y 5m
1y 0m
Code principle
Board Leadership and Company Purpose
Corporate governance report
Experian plc
Governance
110
Code principle
Board Leadership and Company Purpose
Corporate governance report
continued
Strategic and budget planning process
The Board sets the Group strategy, and there
is a process in place to support this (the key
steps of which are summarised in the
diagram below). The Board also reviews and
sets the Group’s budget for the forthcoming
financial year, and the diagram also outlines
the key steps in that process.
The Group’s strategy remains consistent,
and we continue to aim to deepen Experian’s
position in our markets and open up new
value pools. We have received notable
recognition for our people, our culture,
our products, and the positive impact we
make on the societies where we operate,
and we remain very confident in Experian’s
long-term prospects. The strategic actions
we have taken in prior years to build a
stronger and more advantaged business
have set us up well to navigate good and
challenging times alike. We have made strong
progress in all our businesses and regions,
and we continue to be uniquely placed to
improve financial inclusion in our markets,
bring financial power to all, and create
a better tomorrow for consumers, for
businesses, for our people and for our
communities.
During the financial year
• The
Chief Executive Officer (CEO)
updates
the Board at every scheduled meeting on
operational, financial, business, and any
relevant strategic and budget matters
• The
Board
is provided with details of Group
and regional performance, and
accompanying underlying narrative
• The
Board
continually monitors
management and financial performance on
the Group’s objectives. Before scheduled
meetings, the Board receives updates on
operational and financial matters, as well as
any strategic or major initiatives underway
• Relevant senior management attend
Board
meetings when required to give in-depth
updates either on regional or Group
operational or functional matters, including
strategic and budgetary matters
• The
Board
receives relevant between-
meeting updates, to allow for appropriate
oversight and monitoring, and the Board
also conducts post-investment reviews on
an agreed timeline (for example in relation
to any acquisitions it has previously
approved)
• During the year, there is detailed review of
strategic and budgetary plans, and financial
planning and prioritisation continues
June to December
• A strategy summit considers priorities and
commences development of the Group’s
strategy. A
Group Operating Committee
off-site meeting is held to focus on key
strategic issues
• Mid-year
Board
review of strategic
progress, including an update on the
strategy summit and off-site key themes
•
Group Operating Committee
and leadership
meetings to review strategy, and internal
refinement and costing of plans and
prioritisation of opportunities continues
• The
Board
received and discussed a
detailed Government and Regulatory Affairs
update in Dublin, Ireland in July 2023. The
Director of Government and Public Affairs,
UK and Ireland, Senior Vice President,
Government Affairs, North America, and the
Group General Counsel provided the update,
and it included details of the team structure,
regulatory and legislative risks, thoughts
regarding Generative Artificial Intelligence
(GenAI), and updates on the global political
outlook as it relates to Experian
• In September 2023, the
Board
travelled to
the UK and visited our London office. The
Board reviewed the EMEA and Asia Pacific
regional strategy with management, and
met colleagues
January
• Two-day
Board
strategy sessions are held
with the
Group Operating Committee
and
senior leaders. In January 2024, the
sessions were held over two days at our
North America operational headquarters in
Costa Mesa, California, USA
• The
Board
sessions include extensive
strategy discussions with regional and Group
operational and functional leaders and their
teams, which help the Board support and
monitor ongoing strategy roll-out
• Sessions in January 2024 included Experian
Software Solutions, North America and
Brazil regional updates, including Consumer
Services, and North America Financial
Services and Employer and Verification
Services. The
Board
also reviewed the
technology strategy and received a
strategic update on the Group’s activities
concerning Artificial Intelligence (AI)
• The strategic framework considered by the
Board
also includes the foundations that
allow us to achieve our growth aspirations,
for example, embedding a high-performance
culture, and ensuring sustainability through
strong client relationships and continued
investment in product innovation
• The
Board
approves the Experian strategy
in January
March
• As part of the budget process, the
Board
reviews the Group budget, to support
having the correct resources in place to
execute the agreed Group strategy.
Discussions include detailed focus on both
regional and global business budgets
• The
Board
continually monitors
management and financial performance
against the Group’s objectives
• The
Board
approves the budget for the
forthcoming financial year in March
• In March 2024, the
Board
travelled to the UK
and visited our London office. The Board
reviewed the UK and Ireland regional
strategy with management, and met
colleagues
• The
Board
also received and discussed
an environmental, social and governance
(ESG) strategic update with the Chief
Sustainability Officer in March 2024
(including details of how we operationalise
our ESG strategy, continue to make
progress across the breadth of ESG, and
ensure we have strong execution plans
to achieve our existing commitments)
March
Board budget review
Ensuring the correct resources are in
place to deliver the Group strategy
October
Group Operating Committee strategic review
Including detailed strategic plans
June
Group Operating Committee review meeting
Off-site strategy session to focus on
key strategic issues
October to November
Financial planning and prioritisation
Refinement and costing of plans and prioritisation
of opportunities
January
Board strategy review
Two-day strategy presentations
from senior leaders within the Group
September
Board strategy review
Mid-year review of progress
Board activities
Management activities
111
Experian plc
Annual Report 2024
Governance
May 2023
Board and
committee meetings
July 2023
Board and committee
meetings (and the
Government and Regulatory
Affairs update) and Annual
General Meeting
September 2023
Board and committee
meetings, and strategy
presentations from EMEA
and Asia Pacific regional
management
November 2023
Board and
committee meetings
January 2024
Board and
committee meetings in the
USA, including two days
of strategy presentations
from global and regional
management
March 2024
Board and committee
meetings, ESG strategy
update, and strategy
presentations from UK
and Ireland regional
management
Code principle
Board Leadership and Company Purpose
Board
Nomination and Corporate
Governance Committee
Remuneration
Committee
Audit
Committee
Mike Rogers
6/6 – 100%
4/4 – 100%
5/5 – 100%
n/a
Brian Cassin
6/6 – 100%
n/a
n/a
n/a
Lloyd Pitchford
6/6 – 100%
n/a
n/a
n/a
Craig Boundy
6/6 – 100%
n/a
n/a
n/a
Alison Brittain
6/6 – 100%
4/4 – 100%
5/5 – 100%
4/4 – 100%
Kathleen DeRose
6/6 – 100%
4/4 – 100%
5/5 – 100%
4/4 – 100%
Caroline Donahue
6/6 – 100%
4/4 – 100%
5/5 – 100%
4/4 – 100%
Luiz Fleury
6/6 – 100%
4/4 – 100%
5/5 – 100%
4/4 – 100%
Jonathan Howell
6/6 – 100%
4/4 – 100%
5/5 – 100%
4/4 – 100%
Esther Lee
6/6 – 100%
4/4 – 100%
5/5 – 100%
4/4 – 100%
Louise Pentland
6/6 – 100%
4/4 – 100%
5/5 – 100%
4/4 – 100%
Attendance at Board and principal committee meetings
Board delegation to management
The Board delegates management of the
Group’s day-to-day activities but is accountable
to shareholders for financial performance
and creating long-term shareholder value.
To achieve this, the Board has put in place a
framework of controls, including clear and
robust procedures and delegated authorities,
which enables the Group to appraise and
manage risk effectively. This is illustrated in
the Governance framework diagram on
page 115.
You can read about the Board’s procedures
for managing risk (including emerging risks),
overseeing the internal control framework,
and determining the nature and extent of the
principal risks the Company is willing to take
to achieve its strategic objectives, in the Risk
management and internal control systems
section on page 135.
Board meetings
The Board meets sufficiently regularly to
discharge its duties, and holds additional
meetings when required, for example to
review a specific transaction. Each scheduled
meeting is normally held over two or three
days, with Board committee meetings also
taking place during this time. Spending this
time together further enhances the
effectiveness of the Board and its committees
and contributes to the cohesive and collegiate
Board culture. The Board met overseas during
the year, which allowed management and
colleagues to present to it and to meet the
directors informally. The Board spent three
days at our North America operational
headquarters in Costa Mesa, California, USA,
in January 2024. In September 2023 and
March 2024, the Board also travelled to the
UK and visited our London office, where it
reviewed the Experian EMEA and Asia Pacific,
and UK and Ireland, regional strategies and
the Group’s ESG strategy respectively with
management, and also held Board and
committee meetings in Dublin, Ireland.
Experian plc
Governance
112
Code principle
Board Leadership and Company Purpose
What did the Board do this year
Corporate governance report
continued
A. Strategy and management
Approval and oversight of Experian’s
long-term objectives and commercial (and
ESG) strategy, approval of annual operating
and capital expenditure budgets, and
oversight and monitoring of operations.
• Evaluated and debated presentations from
management during the two-day strategy
presentations, approved the Group’s
strategy, and reviewed and supported the
Group’s ESG strategy.
• Received and considered key initiatives and
strategy updates as part of the ongoing
strategic planning cycle, and detailed
competitor and venture updates.
• Reviewed operational and financial updates
from the Chief Executive Officer (CEO), the
Chief Financial Officer (CFO) and the Chief
Operating Officer (COO) at each scheduled
Board meeting – these included operational,
financial and consumer credit metrics,
trading, people and ESG updates, as well
as details of key global initiatives, new
business and competitors.
• Reviewed monthly Board reports, including
details of performance against budget and
the Group’s financial position, and
stakeholder updates.
• Reviewed an update on the launch of
Experian Smart Money in North America.
B. Structure and capital/Financial
reporting and controls/Risk
management
Changes in the Group capital or corporate
structure. Approval of the Group’s results,
dividends, dividend policy, significant
changes in accounting policy, tax policy and
treasury policy.
• Approved the Group’s Annual Report and
full-year and half-year financial results and
carefully considered dividend payments
and a share repurchase programme.
• Approved the refinancing of existing
borrowing facilities.
• Discussed and approved the Group’s budget
presentation for FY25 and received updates
on Group insurance and pension
arrangements.
• Considered and approved the going concern
and viability statements for inclusion in the
Annual Report.
• Reviewed risk reports, the appropriateness
of preparing the financial statements on the
going concern basis and the Audit
Committee’s advice on making a ‘fair,
balanced and understandable’ (FBU)
statement in the Annual Report.
• Reviewed and discussed regulatory and
compliance matters with the Group General
Counsel, the Head of Global Compliance,
and the Chief Global Privacy, Ethics and
Regulatory Compliance Officer at Board and
Audit Committee meetings, including
updates on ongoing engagement, current
issues, potential impacts and plans as well
as an update on Government Affairs and
Public Policy.
• The Audit Committee received, considered
and approved strategic updates from
Experian’s key second line of defence
functions – Group Risk, Information
Security, and Global Compliance.
• Reviewed and approved Risk Appetite
Statements for the Group.
C. Contracts
Approval of major or strategic capital
projects, and of major acquisitions, disposals
and investments.
• Reviewed and discussed the corporate
development pipeline at each Board
meeting, including an update at the July
2023 Board meeting on our minority
investment programme, which provides
unique insight and knowledge into emerging
trends in technology and business models.
• Approved the acquisition of 100% of the
equity share capital of WaveHDC, a US
company offering patient data solutions to
the healthcare market.
• Conducted formal post-investment reviews
on acquisitions that were completed in FY21
and FY22, including Gabi, BrScan,
PagueVeloz, Axesor, Experian Employer
Services (Emptech, Corporate Cost Control
and Tax Credit Control), and the acquisition
of majority stakes in Brain and Sinacofi.
D. Board membership/Delegation
of authority/Corporate governance/
Policies
Approval of changes to Board composition,
ensuring adequate succession planning,
reviewing reports from Board committees,
reviewing governance arrangements, and
approval of various policies.
• Considered the Group’s annual health,
safety and environment updates and
approved associated policy statements,
Anti-Corruption and Bribery Policy, Gift and
Hospitality Policy, and the Global Code
of Conduct.
• Reviewed Board performance review
findings, authorised Board members’
potential situational conflicts of interest and
approved the annual election and re-election
of Board members.
• Considered and approved the Notice of
Annual General Meeting (AGM) for issue to
shareholders, and the arrangements for the
2023 AGM.
• Received details of Board members’
external appointments and share dealings,
and updates regarding a shareholder
reunification programme.
• Reviewed and approved the Group’s tax and
treasury policies.
• Considered and approved a change of the
Remuneration Committee Chair, as well as
compositional changes to the boards of
certain Group companies.
• Received regular updates on the work
undertaken by each of the Board committees.
• Received updates through both the Audit
Committee, and the Nomination and
Corporate Governance Committee, on the
proposed changes to the UK Financial
Reporting Council’s (FRC) UK Corporate
Governance Code 2018 (the Code) and how
these may impact Experian.
E. Communication
Approval of key stakeholder documents,
circulars, prospectuses, and reviewing
investor sentiment.
• Reviewed investor relations, external
communications and media updates at each
scheduled Board meeting, and reviewed
and discussed a market and investor
update from corporate brokers.
• Reviewed and discussed draft full-year and
half-year financial results presentations for
analysts and institutional shareholders.
• The Remuneration Committee Chair met
the Experian UK and Ireland People Forum
in March 2024, and reported on the meeting
to the Board.
• More detail is contained in the Shareholder
and stakeholder engagement section,
including details of shareholder meetings,
on page 117.
The Board’s key activities during the year are outlined below. The Board has reserved certain key decisions to itself, and these types
of decisions are detailed below.
A. Strategy and management
B. Structure and capital/Financial reporting
and controls/Risk management
C. Contracts
D. Board membership/Delegation of
authority/Corporate governance/Policies
E. Communication
F. Other
A
B
C
D
E
F
113
Experian plc
Annual Report 2024
Governance
The Experian Way shapes our culture and the
kind of organisation we are. This global way of
working represents our cultural values and
sets out the behaviours we expect everyone at
Experian to adopt in their daily activities. It is
included in Experian’s Global Code of Conduct,
which has been approved by the Board.
See page 66 for more information about
The Experian Way.
The FRC’s UK Corporate Governance Code
2018 (the Code) emphasises the importance
of the role of the Board regarding culture.
It recommends that the Board assesses
and monitors culture (including a new
recommendation to assess and monitor how
the desired culture has been embedded), and
that the Board ensures workforce policies,
practices and behaviours are aligned with the
Company’s purpose, values and strategy.
We are confident that Experian and the Board
meet the recommendations of the Code
through our structures and processes, the
information the Board and its committees
review, and the activities that Board members
engage in.
With support from the Board, we promote
a positive and supportive culture throughout
Experian, including by:
Developing talent
With top talent increasingly looking for career development
opportunities within their organisations, we have an opportunity
to set ourselves apart by being somewhere people come to grow.
We promoted opportunities at Experian through our Global Careers
Week in February 2024, inviting people to ‘Discover what’s possible’.
Around 5,000 employees attended sessions during the week and
on average each participant attended three live sessions. Those
attending scored the event an average of 4.8 out of 5 and we
achieved a Global Careers Week Net Promoter Score of 83.
Engaging our people
In FY24, 83% of our people participated in our annual global Great
Place to Work (GPTW) survey (up from 70% in FY23) and overall
engagement increased by one point to 83%. See our 2024 Power of
YOU Report: Driving Social Impact and Diversity, Equity & Inclusion
for more on how we utilise our people surveys to measure our
commitment to fostering an inclusive workplace culture.
Supporting mental wellbeing
We strive to create an open and supportive culture around mental
health through our Global Approach to Mental Health and Wellbeing,
launched last year.
We have a community of over 400 certified Mental Health First
Aiders (MHFAs) who play a key role in helping us implement our
approach and supporting our people to access the right help at the
right time. We have a target of maintaining 1% of our employees as
trained MHFAs. In FY24, we expanded the programme in Latin
America to include Spanish and Portuguese speaking colleagues,
helping us to continue to exceed this target, with around 2% of our
employees being trained in Mental Health First Aid.
In FY24, the MHFAs led a campaign emphasising that support is one
click away on our global wellbeing hub; and supported our annual
Your Mind Matters Week, which reached over 17,000 of our people
this year, providing support and educational resources on a range
of topics – from psychological safety to the importance of bringing
their whole self to work.
Fostering belonging
Our employee-led affinity-based employee resource groups (ERGs)
channel support for diverse communities inside and outside
Experian, and help our people feel a sense of belonging. Examples
this year include our Women in Experian ERG running training
events that reached over 1,000 employees and our Black at
Experian ERG hosting credit education workshops for university
students.
This year, we introduced a new global hub to promote engagement
in our network of 16 global ERGs – from Women in Experian to
Pride for LGBTQ+.
For more examples on how we’re bringing our
'people first' culture to life see pages 65 to 67
Culture
Code principle
Board Leadership and Company Purpose
Culture underpins everything we do at Experian. With support from the Board, we prioritise and promote a ‘people
first’ culture where our people feel valued and able to do their best work. We thrive in a diverse and inclusive culture
built on a spirit of collaboration and freedom to do the right thing. We work together to innovate and provide solutions
for clients and consumers, quickly, accurately and in a thoughtful way.
Experian plc
Governance
114
Code principle
Board Leadership and Company Purpose
Who
What
The Board
• The Chief Executive Officer’s report, circulated before every scheduled
Board meeting, contains detailed updates on People topics, including
culture, as part of our wider ESG agenda.
• The Board considers the sentiments of our people through regular reviews
of colleague feedback, including our Great Place to Work annual survey and
pulse surveys.
• The Board and committee meetings in January 2024 in Costa Mesa,
California, USA, allowed the Board to engage with colleagues and senior
regional management in North America. The Board also spent time with
colleagues in our EMEA and Asia Pacific, and the UK and Ireland,
businesses in September 2023 and March 2024 respectively.
Board members
• Visiting the Group business locations enables the Board to spend time with
colleagues of varying seniority and assess culture in a local context. All
Board meetings during the year were held in person, enabling the Board to
engage directly with people in the business.
• Esther Lee, our newest non-executive director, spent time at the Experian
Innovation Lab in California, USA, as part of her induction programme, in
January 2024.
Audit Committee
• Oversight of interactions with government and regulators by the Audit
Committee, and the perspective provided by our Global Internal Audit
function, provide opportunities for the Board to get an indication of the
Company’s culture and provide feedback. The Committee and the Board
receive relevant updates at every meeting, and management is transparent
and responsive to challenge.
• Twice a year, the Committee reviews calls made to our Confidential Helpline
(see page 132). The Confidential Helpline, which is facilitated by an external
provider, is available for colleagues who wish to raise any concerns.
Remuneration
Committee
• The Remuneration Committee reviews an overview of employee pay
structures and related policies, including their alignment with our purpose,
values and strategy. This allows the Committee to ensure that relevant
policies and practices align with Experian’s values.
• The Committee reviews the design of all share incentive plans, on behalf of
the Board and, where required, shareholders.
• The Chair of the Committee met with the UK and Ireland Experian People
Forum in March 2024, and provided an update to the Board. The key points
of the update included colleague feedback on how the Company had
addressed reward issues and broader reflections on culture in Experian as
well as the open, two-way nature of the dialogue.
• The Committee reviews gender pay gap information every year.
Nomination
and Corporate
Governance
Committee
• In January 2024, the Nomination and Corporate Governance Committee
considered our annual People Strategy. Our Chief People Officer, Chief
Talent Officer, and Chief Diversity and Talent Acquisition Officer provided
the Committee with an update on talent and culture. The update included
details of progress on: our global people strategy; skills, talent and
leadership; productivity and efficiency; evolution of our Human Resources
operating model; our culture and employee value proposition; and the
priorities set out for FY25. The Chief People Officer and Chief Diversity and
Talent Acquisition Officer also updated the Committee on diversity, equity
and inclusion (DEI), including diversity in senior leader hires and progress
towards our three-year DEI strategy.
Ways the Board monitors and assesses culture
82
%
of people agree that they feel
connected to Experian’s culture
(+3 points since FY23)
87
%
of people agree that, taking
everything into account,
Experian is a great place to work
(+2 points since FY23)
86
%
of people agree that Experian’s
culture is purpose driven
(new insight as of 2024)
89
%
of people are proud to tell others
they work at Experian
(+1 point since FY23)
The Board uses a variety of information sources and mechanisms to monitor and assess cultural strength and understand how culture manifests
through colleague sentiment, observed behaviours and trends. These include reports, metrics, and formal and informal listening channels.
As part of our ongoing commitment to fostering a positive working environment where our people can thrive, we have strengthened our
communication channels between the Board and our workforce, which encourages engagement on topics such as culture, wellbeing, and business
growth. These activities are integral to how the Board monitors and assesses culture and are included below.
Corporate governance report
continued
115
Experian plc
Annual Report 2024
Governance
Global Delegated Authorities Matrix
This key Group governance document
comprises the Schedule of Matters Reserved
to the Board, the Board committees’ terms of
reference and the authority levels for the
Group’s principal subsidiaries, directors and
senior executives. For matters not reserved to
the Board, the matrix prescribes the cascade
of authorities delegated throughout the Group
by respective Group companies, together with
their monetary limits. The Board monitors the
exercise of delegations to the Group’s principal
subsidiaries, which are reported to it at each
Board meeting. Regional matrices are also
in place.
Executive committees/functions
Board
committees
Board
Executive
management team
Operating
businesses
Principal subsidiaries
These are Group companies to which the Board has delegated
certain decision-making powers, for example: implementing
decisions agreed in principle by the Board; executive management
of the operations of the Group within the strategy and budget
approved by the Board; acquisitions and disposals with a value up
to US$50m; and capital expenditure projects.
Nomination and
Corporate Governance
Committee
Audit Committee
Remuneration
Committee
Group Operating Committee (OpCo)
The OpCo comprises the most senior executives from the Group. Its remit includes identifying, debating
and achieving consensus on issues involving strategy, growth, people and culture, and operational efficiency.
It also focuses on ensuring strong communication and co-operative working relationships among the top team.
Its meetings tend to be issues oriented and focus on selected Group issues worthy of debate. For example, in May
2023, the OpCo discussed the need to further develop and articulate the Group’s advantage from GenAI and
confirmed a focus on AI as part of the strategic planning process. The importance of the provision of training in
advancing the understanding, development and responsible application of GenAI technologies at Experian was
agreed.
Risk management committees (executive and regional)
The
Executive Risk Management Committee (EMRC)
comprises senior Group executives, including the executive
directors and the Company Secretary. Its primary responsibility is to oversee the management of global risks.
The regional risk management committees oversee the management of regional risks, consistent with Experian’s
risk appetite, strategies and objectives, and are comprised of senior regional leaders.
The
Security and Continuity Steering Committee (SCSC)
is a sub-committee of the ERMC. The SCSC’s primary
responsibility is to oversee management of global information security, physical security, and security continuity
risks, consistent with Experian’s risk appetite, strategies and objectives.
Tax and Treasury Committee (TTC)
This committee comprises senior executives with financial and tax expertise, and includes the Chief Financial Officer.
The TTC oversees the management of financial risk, including tax, liquidity, funding, market and currency risks.
Environmental, Social and Governance (ESG) Steering Committee
The ESG committee comprises senior executives from a wide range of areas throughout the Group, and is chaired by
the Chief Financial Officer. The purpose and primary duty of the ESG Steering Committee is to support the definition,
approval and integrated delivery of the Group’s ESG strategy.
Strategic project committees (global and regional)
These committees comprise the most senior global and regional executives. Their remit is to oversee a process
to ensure that all strategic projects are appropriately resourced, risk assessed and commercially, financially
and technically appraised. A similar body, the Investment Committee, performs the same function for proposals
regarding minority investments. Depending on the outcome of the discussions, the committees’ conclusions are
then considered by the board of the relevant Group company for approval.
Global Internal Audit (GIA)
GIA conducts a range of independent audit reviews throughout the Group during the year and is represented at each
Audit Committee meeting. GIA’s plans, results and key findings are presented to, and discussed with, the Audit
Committee. The internal audit programme and methodology are aligned to the risk categories and risk assessment
parameters established by Group Risk Management. GIA also makes use of risk assessment information at a
business level, in planning and conducting its audits.
Governance framework
Delegated authority flow
Code principle
Board Leadership and Company Purpose
See Board
of directors
on pages 106
and 107
See report on
page 122
See report on
page 128
See report on
page 136
Experian plc
Governance
116
Code principle
Division of Responsibilities
Division of responsibilities
The Code principles regarding the role of the Chair, the desired characteristics of the Chair and his or her duty regarding Board relations and
contributions are outlined in the Chair’s letter of appointment. A summary appears in the table below. The table also summarises how there is a clear
division of responsibilities between the leadership of the Board and the executive leadership of the business.
Chair
Mike Rogers
• Runs the Board effectively and ensures the Board plays a full and constructive part in developing and determining the
Group’s strategy (including ESG strategy) and overall commercial objectives
• Promotes the highest standards of integrity, probity and corporate governance throughout the Group and particularly at
Board level
• Ensures the Board receives accurate, timely and clear information on the Group’s performance and its issues, challenges
and opportunities
• Ensures effective communication with the Company’s shareholders by the CEO, the CFO and other executive
management; and ensures the Board develops an understanding of the views of the Company’s major shareholders
• Facilitates the non-executive directors’ effective contribution to the Board, and ensures constructive relationships
between the executive and non-executive directors
• Primarily responsible for the Board’s leadership and governance, and ensures its effectiveness
Chief Executive Officer (CEO)
Brian Cassin
• Responsible for the Group’s day-to-day business, in line with the strategy, risk profile, objectives and policies set by the
Board and its committees
• Accountable to the Board for the Group’s development and its operations
• Runs the Group’s business and develops the Group’s strategy (including ESG strategy) and overall commercial objectives
• Implements, with the executive team, the decisions of the Board, its committees and the principal subsidiaries
• Maintains a dialogue with the Chair on the important and strategic issues facing the Group, and alerts the Chair to
forthcoming complex, contentious or sensitive issues
• Leads the communication programme with shareholders
• Chairs the Group Operating Committee
Chief Financial Officer (CFO)
Lloyd Pitchford
• Responsible for managing the financial affairs of the Group, including tax, corporate finance and treasury
• Works closely with the CEO and COO to manage the Group’s operations, and oversees information security and enterprise
risk management
• Acts as executive sponsor of the Group’s overall ESG programme and chairs the Group’s ESG Steering Committee
• Member of the Group Operating Committee
Chief Operating Officer (COO)
Craig Boundy
• Oversees the Company’s business operations
• Ensures the Group has effective operational procedures and controls
• Responsible for the evolution of the Group’s technology and innovation strategy
• Member of the Group Operating Committee
Senior Independent Director
Alison Brittain
• Provides support and guidance, acts as a sounding board for the Chair, and serves as an intermediary for other directors
• Acts as a contact point for shareholders if they have concerns that are not resolved through discussion with the Chair,
CEO or CFO
• Evaluates the performance of the Chair
Non-executive directors
Alison Brittain, Kathleen
DeRose, Caroline Donahue,
Luiz Fleury, Jonathan
Howell, Esther Lee, Louise
Pentland
• Constructively challenge and help develop Group strategy
• Scrutinise management performance to agreed goals and objectives
• Uphold the highest standards of integrity and probity and support the Chair in instilling the appropriate culture, values
and behaviours in the Group
• Ensure the integrity of financial information and that there are robust financial controls and systems of risk
management; determine executive remuneration and succession planning
Group Company Secretary
Charles Brown
• Secretary to the Board and its committees
• Provides support and guidance to the Board and the Chair, and acts as an intermediary for non-executive directors
• Responsible for: corporate governance; listing rules, prospectus rules, and disclosure guidance and transparency rules
compliance; statutory compliance and reporting; shareholder services; and sustainability
• Member (and secretary) of the Group Operating Committee
Group General Counsel
Darryl Gibson
• Responsible for overseeing Experian’s global legal, regulatory compliance and government affairs functions
• Provides the Board and Audit Committee with legal advice, leads legal and regulatory reporting, and active in public
policy advocacy
• Member of the Group Operating Committee
Corporate governance report
continued
117
Experian plc
Annual Report 2024
Governance
Timeline of shareholder engagement
Shareholder and stakeholder
engagement
The Code encourages boards to have a clear
understanding of the views of shareholders.
Companies are also encouraged to seek
regular engagement with major shareholders
to understand their views.
In addition, the Code states that the Board
should understand the views of the Company’s
other key stakeholders and describe how their
interests have been considered in discussions
and decision-making. Details regarding key
stakeholders are on pages 118 and 119.
Shareholders
We are committed to open and regular
communication and engagement with
shareholders at all times, and our
communications with shareholders (and
proxy advisory bodies) will always offer
invitations to meet the Chair or any of the
Board committee chairs.
Board
– Investor relations, and external
communications and media, reports are
circulated before every Board meeting.
The investor relations report contains a
commentary on key events in Experian’s
main markets, share price performance,
market movements, investor feedback from
management and analyst meetings, broker
and analyst forecasts and recommendations,
investor relations activities (including ESG),
and shareholder analysis. The external
communications and media update provides
details of the focus of external communication
activities, which has included innovation,
technology (including AI), financial health, data
security and integrity, and people. The Chief
Communications Officer provides regular
updates at Board meetings.
Engagement with investors
– The Chair of the
Remuneration Committee wrote to our major
shareholders and the main UK and US proxy
advisory bodies in September 2023. She
thanked them for their support on both the
Report on directors’ remuneration and
Directors’ remuneration policy at the 2023
AGM, and invited feedback on a proposed
change to certain remuneration arrangements,
following an expansion of role. The Board Chair
also makes himself available to meet
shareholders.
Investors and analysts
– The executive team
runs an ongoing programme of dialogue with
institutional investors and analysts, through
which they discuss a wide range of issues
including strategy, performance, management
and governance. Experian also engages with
investors through industry conferences and
by hosting events with members of the senior
management team. The announcements
of the full-year and half-year results and
trading updates provide opportunities for us
to answer questions from analysts, covering
a wide range of topics. This year, executive
management attended conferences and
investor meetings virtually and in person
(in the UK, USA and Canada).
Annual General Meeting
– The AGM provides
a valuable opportunity for the Board to
communicate with shareholders and for
shareholders to hear directly from the Board
on the Company’s performance and strategic
direction. All the directors attended the 2023
AGM, including the Audit, Remuneration, and
Nomination and Corporate Governance
Committee chairs. The 2024 AGM will take place
on Wednesday 17 July 2024 in Dublin, Ireland.
Shareholders are encouraged to use proxy voting
on the resolutions put forward, all of which
(except for procedural resolutions) are taken by
a poll. In 2023, voting levels at the AGM were
78.62% of the Company’s issued share capital.
Private shareholders
– The Company
Secretary, Charles Brown, oversees
communication with private shareholders, and
ensures direct responses as appropriate for any
matters raised by shareholders. The Company
issues a Shareholder Questions card each year,
together with the AGM documentation. The
Company responded to shareholders directly,
as appropriate, following the 2023 AGM and,
during the year, the Company undertook a
shareholder reunification programme with
the intention of applying to good causes any
resulting funds that could not be reunified
with shareholders.
Investor relations app
– This contains
information about our financial performance,
together with reports, presentations and news
of upcoming events.
Website
– Our website is an important channel
for communicating with all stakeholders,
including shareholders. All material information
reported to the regulatory news services is
published at
experianplc.com/investors/
investor-news-alerts/regulatory-news
,
together with copies of full-year and half-year
results announcements and trading updates.
Code principle
Division of Responsibilities
Roadshows in UK and USA following
the FY23 results announcement
April 2023
May
June
July
August
September
October
November
December
January
February
March 2024
ESG engagement
Wealth roadshow
Investor virtual conferences and meetings
Investor and media relations reports provided to the Board
AGM
Remuneration engagement
Annual Report
Q1
FY24
Q3
FY24
FY23
FY23 results
FY23
Q1 FY24 results
Q1
FY24
Q3 FY24 results
Q3
FY24
HY24 results
HY24
HY24
Experian plc
Governance
118
Other stakeholders
Code principle
Division of Responsibilities
Corporate governance report
continued
Information on Group-wide engagement with key stakeholders is on pages 48 to 51 in the Strategic report. Board activities regarding key
stakeholders, including engagement, are summarised in the table below. Shareholder engagement has been considered earlier.
Stakeholder
Responsibility
Relevant activities during FY24
Summary of stakeholder views/actions
Our clients and
consumers
Board
• The Board report in March includes
an update on clients and consumers,
including (for clients) Net Promoter
Score (NPS) metrics, top-performing
NPS attributes and areas that require
improvement.
• For consumers, the reporting
includes brand awareness, trust in
the Experian brand and the level of
complaints.
• A review of Experian Smart Money in
North America.
• A large number of our clients strongly agree that we are an innovative
company.
• Our brand and reputation as a Trusted Company ranked as the most
important brand driver for the eighth year in a row.
• Our account management achieved the highest ratings across the client
journey.
• Over 640,000 Experian Smart Money accounts have been opened since it
launched in North America.
Our
communities
Board
• The Chief Executive Officer reports on
ESG and our actions to support our
communities at each scheduled
Board meeting.
• The Chief Sustainability Officer
presented an ESG strategic update to
the Board in March 2024.
• The ESG Steering Committee is chaired by the Chief Financial Officer,
Lloyd Pitchford, and brings together the work undertaken across the
Group into one, co-ordinated programme.
• Scope 1 and 2 carbon emissions have reduced by 75% since 2019.
• Our suppliers’ emissions within Scope 3 are being calculated using a
new hybrid methodology that introduces actual supplier emissions data
for the first time, resulting in a significant reduction from the previously
reported Scope 3 emissions before the change in methodology.
• Our United for Financial Health programme to empower diverse
communities through financial education has connected with over
146 million people since it launched in 2020, including 33 million in FY24.
• United for Financial Health is part of our wider community investment.
We contribute funding, products (as gifts in kind) and expertise (through
employee volunteering) to benefit the communities where we operate.
Our community investment contributions totalled US$19.7m this year,
achieving our annual goal of 1% of Benchmark profit before tax.
• Experian undertook a shareholder reunification programme with the
intention of applying to good causes any resulting funds that could not be
reunified with shareholders.
• Community Investment highlights this year have included: teaming up
with NGO DIFFvelopment and influencer Daymond John to address the
racial wealth gap in the USA through access and education; working with
the National Literacy Trust and grassroots organisations to improve
literacy and financial capability among young people in the UK;
mentoring start-ups and small businesses in Brazil to help them build
their business, access finance and manage debts; and partnering with
the Srujna Charitable Trust in India to deliver financial education to
women affected by poverty.
• Experian employees volunteered 70,000 hours of their time (in and
outside working hours) to help their communities. Many chose to share
their expertise to support programmes designed to improve financial
health – including through support sessions for National Health Service
staff and community members near our regional operational
headquarters in Nottingham, UK.
119
Experian plc
Annual Report 2024
Governance
Code principle
Division of Responsibilities
Stakeholder
Responsibility
Relevant activities during FY24
Summary of stakeholder views/actions
Our people
Board,
Nomination and
Corporate
Governance
Committee,
Audit Committee
Remuneration
Committee
• People and sentiment survey and
pulse survey updates to the Board.
• Board reporting at every scheduled
Board meeting (People section of
Board report).
• People Strategy, Talent and Culture
update to the Nomination and
Corporate Governance Committee.
• Direct feedback to the Board from
Louise Pentland, Remuneration
Committee Chair, who met with the
UK and Ireland Experian People
Forum in March 2024.
• Confidential Helpline updates to the
Audit Committee.
• Taking part in the Great Place to Work (GPTW) survey globally for a third
year in a row, the Group has further improved its GPTW scores. Insights
from the survey enabled a focus on ensuring everyone has opportunities
to develop via our enhanced Careers Hub and new Leadership Exchange
portal; continuing to support health and wellbeing, including improved
benefits offerings across our regions; and the launch of our global
wellbeing hub.
• We run regular pulse and lifecycle surveys that capture feedback from
our people at key points in the employee journey so we can keep finding
ways to enhance their experience at Experian.
• A confidential helpline, facilitated by an external provider, is available for
employees who wish to raise any concerns. Calls to the Confidential
Helpline, and any actions required, are reviewed by the Audit Committee,
in conjunction with HR or Global Compliance, as appropriate, at least
every six months.
Our suppliers
Board
• Annual update to the Board on
suppliers, which includes details of
digitalisation, engagement, the
Group’s Supplier Relationship
Management (SRM) programme and
the Global Procurement Hub.
• Annual Board review of the Group’s
Modern Slavery Statement.
• We continue to refine our reporting capabilities, creating interactive
dashboards to help identify opportunities, better understand spending
and enable us to see trends. FY25 will see an increase in the pace of
automation of our administrative processes.
• Our SRM programme has been refined and continues to develop. We
focused on 21 key suppliers with regular, collaborative meetings
(sponsored by senior executives). The meetings focused on performance
and opportunities for deeper collaboration.
• We take supplier surveys that help us understand our colleagues’ views
of strategic suppliers and our suppliers’ views of us. Results are
reviewed in Quarterly Business Reviews and plans put in place to
improve supplier relationships.
• During the year we undertook training with 98 suppliers to share best
practice approaches to modern slavery and human rights issues in the
supply chain. We also held interviews with contractors’ employees who
work at our sites to understand their awareness of the subject.
Government
Board, Audit
Committee
• Board members receive regular
Board and Audit Committee updates
from the Group General Counsel
regarding regulatory engagement,
and any ongoing regulatory matters.
• Board members also received an
update on Government Affairs and
Public Policy.
• There is ongoing privacy, ethics and
compliance reporting to the Audit
Committee, including compliance
training.
• Audit Committee risk management
reporting includes legislative and
regulatory matters. Any relevant
government affairs matters are also
considered by the Audit Committee
and the Board.
• There were ongoing regulatory inquiries into certain matters during the
year, and the Board and Audit Committee receive regular updates on the
matters being considered by regulators. Our response to these inquiries
takes into consideration the regulatory position on the relevant inquiry.
• Updates were provided to the Board and Audit Committee on a number
of matters, as well as engagement with regulators, including the UK
Financial Conduct Authority, and the US Consumer Financial Protection
Bureau.
Experian plc
Governance
120
Timeline of workforce engagement
Workforce engagement
The Code requires companies to select one or
a combination of prescribed methods for the
Board to engage with the workforce. If a
particular method is not appropriate for a
company, it may explain the alternative
arrangements in place and why these are
considered effective. The Board has always
felt well informed about workforce views and
matters, including in relation to pay and related
policy arrangements for the broader employee
population. As a result, no single approach
recommended in the Code was considered
appropriate for our business. The Board
instead adopted a combination of methods
to comply with the Code’s requirements.
These are summarised below, and include:
• There are regular people and sentiment
survey updates to the Board, and reporting
at every scheduled Board meeting on people
matters. People, talent and culture updates
are also provided to the Nomination and
Corporate Governance Committee, offering
a valuable insight into workforce matters.
• Any relevant business cases reviewed by
the Board include an evaluation of potential
impacts of the transaction on the Group’s
stakeholders, including employees.
• The Remuneration Committee annually
considers an extensive paper setting out
details of all-employee pay and workforce
policies across Experian. The discussions on
this topic provide helpful insights for framing
pay considerations.
• The Remuneration Committee Chair annually
attends a meeting of the UK and Ireland
Experian People Forum (see Our people,
in the table on page 119), providing the
opportunity to gain first-hand feedback in
two-way discussions with the workforce,
which is invaluable. The employee insights
and views gathered are shared with the full
Board, allowing the Board to hear directly
from the wider workforce.
• The Board meets employees in person
outside the Boardroom environment during
the year. In September 2023 and March 2024,
the Board travelled to the UK and visited our
London office where they reviewed the
Experian EMEA and Asia Pacific, and the UK
and Ireland, regional strategies respectively
with management including executives,
business, product and strategy leaders from
across the organisation, representing 15
countries. This offered the Board and senior
leaders the opportunity to connect and build
good working relationships. The Board also
held a two-day strategy session, at our North
America operational headquarters in Costa
Mesa, California, USA, where extensive
strategy discussions were held with regional
and Group function leaders and presenters.
The Board takes the opportunity to meet
and engage with employees in all locations
where it holds Board meetings, to better
understand the culture, and to hear the
views of employees and gain insight on
matters of importance to them.
• The Board and Committees receive regular
training throughout the year. During the year,
the Board was invited to participate in the
Group’s AI training workshops delivered
by members of the GenAI Team.
• Newly appointed directors meet a wide range
of employees as part of their comprehensive
induction programme. In January 2024,
Esther Lee visited the North America
Innovation Lab where she received
demonstrations and presentations from
senior management and met informally
with employees and management of the
Innovation Lab. This provided her with the
opportunity to gain a deeper understanding
of our culture and engage with our people
within the business.
In coming to this approach, the Board is
satisfied it is appropriate for Experian and that
the Board keeps workforce considerations to
the fore in its deliberations.
Considering our stakeholders
in our decision-making
The Code also recommends that the Board
should describe how stakeholder interests
have been considered in Board discussions
and decision-making. We have processes in
place to record and consider stakeholders’
views (including the matters contained in
Section 172 of the UK Companies Act 2006,
on a voluntary basis) and feed them into Board
decision-making.
All material business cases considered in the
Group (for example, mergers, acquisitions and
major capital investments) include an analysis
of the stakeholder considerations, anticipated
impact and mitigations. This process helps the
Board perform the duties outlined in Section
172 of the UK Companies Act 2006 and
provides assurance to the Board that potential
impacts on stakeholders have been considered
in the development of the proposal. The impact
on stakeholders, their views and their feedback
are collectively at the heart of Board
People, talent and culture Board update; people and
sentiment survey update and people matters reporting
All-employee pay and workforce policies review
UK and Ireland Experian People Forum
(face-to-face meeting)
Board site visit
Code principle
Division of Responsibilities
Corporate governance report
continued
Director visit to the
Innovation Lab
GenAI small group
workshops
April 2023
May
June
July
August
September
October
November
December
January
February
March 2024
121
Experian plc
Annual Report 2024
Governance
discussions and actions. The Board will
continue to enhance ways to ensure
stakeholders are considered as part of the
Board’s decision-making.
An example of how this process works in
practice is outlined below, where Board
consideration of a strategic acquisition
included a review of the standing stakeholder
impact analysis.
Acquisition of 100% of the equity share
capital of WaveHDC
In November 2023, the Board reviewed,
considered, and approved the acquisition of
100% of the equity share capital of WaveHDC,
a North American business that offers patient
data solutions to the healthcare market using
AI and machine learning. WaveHDC is a
market-leading patient data company that
enables providers to obtain a comprehensive
view of a patient’s insurance coverage in real
time at the point of registration, thus reducing
claims denials and improving collections. This
acquisition will strengthen our Revenue Cycle
Management (RCM) business, provide new
solutions to existing clients, and extend the
business to laboratory clients. It will also
enhance our current patient access solutions
(eligibility, insurance discovery, and patient
estimates) and can be quickly distributed
across the large client base in Experian Health.
A briefing paper was circulated to the Board
ahead of its November 2023 meeting, outlining
the strategic rationale for the transaction,
as well as the financial evaluation and deal
structure. The Chief Executive Officer, North
America, attended the Board meeting and
presented, with the President, Experian Health,
the business case to the Board. In considering
the acquisition, the Board reviewed the
stakeholder impact analysis that had been
prepared (and which is prepared for all
acquisition business cases). The analysis
identified the following stakeholder impacts
and actions or mitigations:
• Customers and suppliers were expected to
react positively, having access to the breadth
of Experian’s global products and data
services.
• There was no material community or
environmental impact anticipated.
• The full acquisition was expected to have
a meaningfully positive long-term impact
on the stakeholders.
• There were plans that employees would
continue to be treated fairly and in
accordance with the relevant laws and
conditions applicable.
• Customers and suppliers were expected to
react positively to a well-capitalised, listed
company being their trusted partner.
Workforce policies and practices
The Board is expected to ensure that:
workforce policies and practices are
consistent with the Company’s values; that
they support its long-term sustainable
success; and that the workforce can raise
any matters of concern. An example of the
alignment of policies and practices is how
the Group manages anti-bribery and
anti-corruption.
A strong compliance culture at the heart of our
strategy helps ensure we comply both with the
laws that apply to our business and with our
Global Code of Conduct. The Board sets the
tone and leads by example and is one of the
most important influences on the Company’s
commitment to preventing bribery and
corruption.
Our Anti-Corruption Framework sets out our
zero-tolerance policy on bribery and corruption
in any form, and this message is reinforced
through mandatory annual training for
employees. We also extend this framework
to our third-party network and business
partners, which helps instil our values in
every aspect of our business.
In terms of the ability to raise matters of
concern, Experian aims to achieve the highest
possible standards of quality, honesty,
openness and accountability, and there is an
expectation that employees maintain high
standards in accordance with the Global Code
of Conduct. There is also a culture of openness
and accountability, and all employees are
encouraged to raise any concerns about the
way the business is run at an early stage, so
any concerns can be dealt with effectively.
A confidential helpline, facilitated by an
external provider, is available for employees
who wish to raise any concerns. Calls to the
Confidential Helpline, and any actions required,
are reviewed by the Audit Committee at least
every six months.
Non-executive director appointment
Non-executive directors are initially appointed
for three years. This may, subject to
satisfactory performance and election or
re-election by the shareholders, be extended
by mutual agreement. They normally serve for
a maximum of nine years, through three
terms, each of three years’ duration.
Time commitment
In advance of any new Board appointment,
each potential non-executive director is
provided with information on the expected
time commitment for the role. The potential
non-executive director is also requested to
provide an overview of all other directorships
and other significant commitments, together
with a broad indication of the associated time
commitment. The proposed appointee must
also confirm they have sufficient time to
dedicate to the role as a non-executive director
of Experian.
Meetings of non-executive directors
In addition to attending Board and committee
meetings, the non-executive directors
normally meet the Chair at the end of each
scheduled Board meeting. The non-executive
directors also meet the Senior Independent
Director privately at least once a year, without
the Chair present, and did so once during the
year to discuss matters including the Chair’s
performance.
Board information
All directors receive financial and operational
information each month to help them
discharge their duties. Board papers are
circulated digitally at least one week before
each Board meeting, to ensure directors have
time to review them. Directors have access
to independent professional advice at the
Company’s expense, if they consider it
appropriate. No director obtained any such
advice during the year ended 31 March 2024.
Independence
As required by the Code, the Board considers
each of the non-executive directors to be
independent in character and judgment and
believes there are no relationships or
circumstances likely to affect (or could appear
to affect) each director’s judgment.
Conflicts of interest, and external
appointments
The Company’s articles of association allow
the Board to authorise actual or potential
conflicts of interest. The authorisation
procedure involves Group Corporate
Secretariat issuing guidance and a
questionnaire each August, asking directors
to identify any conflicts or potential conflicts,
which the Board then considers at its
September meeting. In addition, directors are
expected to advise the Company Secretary of
any actual or potential conflicts as soon as they
arise, so the Board can consider them at the
next available opportunity. In the Board’s view,
this procedure operated effectively during the
year under review. The Board also has a
process whereby directors’ proposed external
or additional appointments are reviewed and
considered for approval by the Board. Before
approving the additional appointment, the
Board considers the time commitment
required for the role.
Code principle
Division of Responsibilities
Nomination and Corporate Governance Committee report
The Committee maintained its focus
on Board succession, the executive
talent pipeline and also further
enhanced its understanding of
succession planning undertaken
below the level of the Group
Operating Committee.
Mike Rogers
Chair of the Nomination and Corporate
Governance Committee
Mike Rogers (Chair)
Alison Brittain
Kathleen DeRose
Caroline Donahue
Luiz Fleury
Jonathan Howell
Esther Lee
Louise Pentland
On behalf of the Nomination and Corporate
Governance Committee, I am pleased to
present the report of the Committee for
the year ended 31 March 2024. This report
outlines how the Committee discharged the
responsibilities delegated to it by the Board,
and the key matters it considered during
the year.
During the year, the Committee maintained
its focus on the executive talent pipeline
and senior management succession plans,
reflecting the Board’s responsibility to ensure
appropriate plans are in place. A succession
planning update was provided at Committee
meetings, and included reviews of executive
management succession coverage as well
as an overview of the succession planning
undertaken at, and below, the level of the
Group Operating Committee, including
areas identified for further development.
The Committee valued receiving and having
time to consider these important analyses
of the Experian talent development structure,
and how it influences Experian’s culture.
A key responsibility of the Committee is to
continue to ensure that the structure and
composition of the Board and its committees
are regularly reviewed, and that there is a
balance of skills and experience, independence
and knowledge on the Board as well as broad
diversity (including gender and ethnicity),
inclusion and equal opportunity. This regular
review allows for the timely commencement
of director search processes. During the year,
as part of the Board’s succession planning,
we reviewed the overall skill sets of the Board
and how the Board works together as a team.
We also considered our longer-term succession
planning and the skills we would need to
'future-proof' the leadership of the business.
Following review, on the recommendation of
the Committee, Louise Pentland was appointed
as Chair of the Remuneration Committee on
1 January 2024, succeeding Alison Brittain.
The Committee also regularly reviews Board
tenure, the specific dates on which Board
members’ scheduled terms of appointment
may end, and how the required skills,
experience, independence and knowledge
are reflected as required in any future
Board appointments.
A core philosophy at Experian is that diversity,
equity and inclusion (DEI) are essential to our
purpose and to progress in creating a better
tomorrow. We must ensure our global DEI
strategy continues to connect with, and
support, the needs of the regions where we
do business. This deep commitment to DEI is
entrenched throughout Experian. In January
2024, the Committee received and discussed
a detailed Global People strategic update that
included an update on DEI progress and plans,
and the key areas of focus for FY25 from our
Chief People Officer, Chief Talent Officer and
our Chief Diversity and Talent Acquisition
Officer. In FY25 and beyond, we will continue
with our product-centred DEI approach across
the regions while working to increase diverse
representation and providing education on
why increased diversity supports commercial
benefit.
The Committee also considered the proposed
election or re-election of directors at the
Annual General Meeting (AGM), recommended
Alison Brittain’s and Jonathan Howell’s
re-appointment as independent non-executive
directors for further three-year terms,
reviewed the draft corporate governance
section of the Annual Report, reviewed various
company law and governance updates, and
reviewed its performance during the year and
its terms of reference.
The Committee was in place throughout the
year ended 31 March 2024.
Committee’s key roles
and responsibilities
Good governance and strong, responsible,
balanced leadership are critical to business
success and to creating both long-term
shareholder value and a strong, sustainable
culture. As a Committee, our responsibilities
include:
• Ensuring we have appropriate procedures for
nominating, selecting, training and evaluating
directors, and that adequate succession
plans are in place.
• Reviewing the Board’s structure, size,
composition and succession needs; and
considering the balance of membership and
the Board’s required balance of skills,
experience, independence, knowledge and
diversity.
• Identifying and nominating, for the Board’s
approval, suitable candidates to fill vacancies
for non-executive directors and, with the
Chief Executive Officer’s assistance,
executive directors. Board appointments are
made on merit and against objective criteria,
to ensure the Board maintains its balance of
skills, experience, independence, knowledge
and diversity.
• Reviewing legislative, regulatory and
corporate governance developments and
making recommendations to the Board; and
ensuring the Company applies the principles
of the Code.
Composition and experience
• Mike Rogers has chaired the Committee
since July 2019.
• The Board considers the Committee
members to be independent
non-executive directors, in line with the
UK Financial Reporting Council's (FRC)
UK Corporate Governance Code 2018
(the Code).
• The Committee met four times during
the year ended 31 March 2024.
• The Chief People Officer, the Chief Talent
Officer, the Chief Diversity and Talent
Acquisition Officer and the Chief
Communications Officer were invited
to attend certain meetings.
• The Chief Executive Officer was also
invited to attend all meetings and
provided valuable input to the
discussions.
Link to the Committee
terms of reference
experianplc.com/about-us/
corporate-governance/
board-committees/
Members
Experian plc
Governance
122
Code principle
Composition, Succession and Evaluation
Committee activities in FY24
• Discussed a detailed AGM
briefing from the Company
Secretary and the Chief
Communications Officer,
including proxy voting results,
shareholder feedback and
engagement that had taken
place in the lead-up to the AGM.
• Discussed and considered the
proposed structure of the FY24
Board performance review.
• Received an update on the
consultation regarding proposed
changes to the Code.
• Recommended to the Board the
re-appointment of Alison
Brittain as an independent
non-executive director for a
further three-year term.
• Discussed in detail the structure,
size and composition of the
Board and its committees (and
the relevant paper is provided as
a reference document ahead of
all Committee meetings, to allow
for continued review).
• Reviewed the Committee’s
performance during the year
against its terms of reference
and concluded it was operating
effectively.
• Reviewed the Committee’s
terms of reference and
recommended changes to the
Board.
• Reviewed and discussed
executive succession, including
succession planning for senior
leaders and their direct reports,
and the talent pipeline.
• Recommended to the Board the
appointment of Louise Pentland
as Remuneration Committee
Chair.
• Reviewed and discussed a
Global People, Talent and Culture
update, and considered a
detailed Global People Strategy
update related to the depth of
the overall Experian talent
strategy (including consideration
of skill, talent, leadership
building and culture).
• As part of that, received a
detailed update on diversity,
equity and inclusion, outlining
the Experian philosophy,
approach and plans.
• Recommended to the Board the
directors to be considered for
re-election at the 2024 AGM.
• Considered the annual company
law and governance update and
reviewed the proposed changes
to the Code (and how they would
impact Experian).
• Recommended to the Board the
re-appointment of Jonathan
Howell as an independent
non-executive director for a
further three-year term.
July 2023
November 2023
January 2024
March 2024
Board composition
The Board comprises the independent Chair,
Mike Rogers, three executive directors and
seven independent non-executive directors,
including the Senior Independent Director,
Alison Brittain. Louise Pentland is the Chair of
the Remuneration Committee, Jonathan
Howell is the Chair of the Audit Committee and
Mike Rogers is the Chair of the Nomination and
Corporate Governance Committee. The
Nomination and Corporate Governance
Committee regularly evaluates Board
composition from several perspectives,
including diversity and orderly succession.
The Committee’s discussions during the year
concluded that there should be a continued
focus on diversity, and that there was a
preference, where possible, for recruiting
non-executive directors who are serving
executives at other organisations, while also
considering the need for further recent and
relevant financial experience. Remuneration
Committee chair succession has also been a
recent focus of the Committee, and the Board,
on the recommendation of the Committee,
appointed Louise Pentland to succeed Alison
Brittain as Chair of the Remuneration
Committee with effect from 1 January 2024.
This facilitated a smooth handover of
responsibilities to Louise from Alison. Louise
has the requisite experience for the role, and a
deep understanding of business, law, human
resources (including remuneration committee
management), leadership, innovation and
culture. As with all Board appointments,
the Committee recognises the continued
importance of culture, fit and international
experience when assessing potential
candidates for the Board, including a focus
on geographic representation from Experian’s
markets.
Process for Board appointments
Step 1
The Committee
reviews and approves
an outline brief and
role specification and
appoints a search agent
for the assignment.
We disclose the name
of the search agent
and any connection
with Experian in the
Annual Report
Step 2
The specification
and the search are
discussed with the
search agent,
who prepares an
initial longlist of
candidates
Step 3
The Committee then
agrees a shortlist and
we hold interviews
Step 4
The Committee makes
a recommendation
to the Board for
its consideration
Step 5
Following Board
approval, the
appointment is
announced in line
with the requirements
of the UK Financial
Conduct Authority's
(FCA) Listing Rules, and
in due course a tailored
induction programme
is provided to the
appointee
123
Experian plc
Annual Report 2024
Governance
Code principle
Composition, Succession and Evaluation
The detailed induction programme for Esther is set out below.
Key corporate/governance topics covered
Presenters
Corporate Governance
Company Secretary and external legal counsel
Talent, People and Reward
Chief People Officer
Sustainability
Company Secretary and Chief Sustainability Officer
Financial Overview, Budget & Capital Strategy
Chief Financial Officer
External Audit
KPMG
Global Internal Audit
Head of Global Internal Audit
Global Technology
Group President Global Technology
Legal, Government Affairs and Compliance
Group General Counsel and Chief Global Privacy, Ethics & Regulatory Compliance Officer
Strategic Planning, Competition, and Corporate Development
Chief Investment Officer and Chief Strategy Officer
Investor Relations, Communications and Brand
Chief Communications Officer
Group Risk
Group Chief Risk Officer and Head of Group Risk Management
Cyber Security Overview
Global Chief Information Security Officer
Key business/operation topics covered
Presenters
Overview of the Experian Software Solutions business
Chief Operating Officer and CEO Experian Software Solutions
Overview of the Brazil business
President of Experian Brazil
Overview of the UK and Ireland business
Managing Director UK and Ireland
Overview of the Consumer Services business
Group President Consumer Services and President Direct-to-Consumer and Credit Match
Overview of the North America business
CEO Experian North America
Overview of Consumer Information Services (CIS)
CEO Experian Software Solutions (during his transition from Group President, CIS)
Visit to an Experian Innovation Lab
From the Innovation Lab, the Senior Vice President Chief Scientist; Senior Product
Manager; Vice President Data Science; Director Data Science; Senior Director Applied
Research; Vice President Analytics
Q&A with Esther Lee, non-executive director, who joined the Board in March 2023
Q: What were your views on the
induction programme and process?
A: Following my appointment to the Board in
March 2023, a number of meetings and
briefings were organised to provide me with
a detailed overview of the Group and
different businesses within Experian. This
detailed induction enabled me to hit the
ground running at my first Board meeting
and gave me the insight and knowledge
required to make as full and effective a
contribution as possible to the Board. Being
able to meet leaders across the Group soon
after appointment was extremely valuable.
These meetings helped me to understand
their priorities, challenges and
opportunities, and I look forward to
continuing to further develop my knowledge
in 2024 and beyond.
Q: As a new director what were your
first impressions of Experian and its
culture?
A: I was interested to learn about the culture
in Experian and see this in action through
interactions at Board and committee
meetings, the Board’s discussions and
decision-making, site visits during the year
and regular reporting on people and culture.
I was pleased to see the Board’s commitment
to demonstrating a strong ‘tone from the top’
on culture through its leadership and
oversight. It is also essential that our Board
discussions take the Group’s stakeholders
into consideration and that our clients and
consumers are truly at the heart of our
decision-making. The Board’s engagement
is open, direct, and respectful of different
viewpoints.
Nomination and Corporate Governance Committee report
continued
Experian plc
Governance
124
Code principle
Composition, Succession and Evaluation
Induction and training
The Company has procedures to ensure newly
appointed directors receive full, formal and
tailored induction. We develop a
comprehensive and tailored induction
programme for each newly appointed director,
based on their experience, background and the
requirements of the role. The Company
Secretary assists and supports throughout the
induction process, which is usually completed
within the first six months of a director’s
appointment and consists of meetings with
senior executives and functional leaders. It is
designed to equip the new director with the
knowledge and materials necessary to
understand the business and their
responsibilities, and to help them make a
valuable contribution to the Board. On 31
March 2023, Esther Lee joined the Board as an
independent non-executive director. Her
induction sessions commenced soon after
appointment, and all sessions were held with
the relevant business or regional leader for
business and operational sessions, and the
relevant functional leader for the corporate
and governance sessions. Pre-reading and
viewing material was made available to Esther,
including the most recent Group strategy and
budget presentations. The induction
programme is reviewed regularly to take
account of directors’ feedback.
In January 2024, the Board held its meeting in
our North America operational headquarters
in Costa Mesa, California, USA. As an extension
to her induction programme, Esther travelled
to San Diego, California, USA ahead of the
meetings and visited the Experian Innovation
Lab, where she received presentations and
demonstrations from senior management on
the Experian Ascend Technology Platform, and
the One Experian Identity Platform. Esther also
met and had a working lunch with colleagues
and management of the Innovation Lab. This
provided Esther with an opportunity to gain a
deeper understanding of our culture and to
engage with our people in the business.
As well as visits to the business, the Board and
committees also receive requisite and
appropriate updates and training throughout
the year. The Board’s training programme is
designed to ensure the relevant subject matter
is provided at a time when it would be of most
benefit or relevance to the Board. Training
sessions during the year were delivered by a
mix of internal and external subject matter
experts and sessions included:
• Board members were invited to participate in
the Group’s Artificial Intelligence training.
• A detailed training session was provided to,
and discussed by, the Audit Committee on
current regulatory compliance matters. An
update was provided on developments in US
State Privacy Regulation, and the evolution of
privacy regulation, the current privacy
landscape and Experian’s plans.
• An update and training session was also
provided to the Audit Committee on progress
with audit and corporate reform (including
the updates to the Code), potential impacts on
Experian and actions being taken by Experian
to ensure readiness.
• An external update was reviewed and
considered by the Remuneration Committee
on trends in remuneration and corporate
governance.
• An update was provided to the Audit
Committee on the non-financial reporting
landscape including developments in
environmental, social and governance (ESG)
reporting.
• Board members were invited to attend the
Experian Vision Conference, a client and
industry event in North America that
connects business leaders to ideas and
solutions and allows for networking
opportunities and insights from thought
leaders.
Diversity
We believe diversity, equity and inclusion are
essential to our purpose of creating a better
tomorrow, together, by making positive change
in the world, and supporting efforts to close
the financial wealth gap for underserved
communities. We support the potential of all
expressions of diversity, including but not
limited to thought, style, sexual orientation,
gender identity or expression, race, ethnicity,
disability, culture and experience. We welcome
people of all backgrounds to bring their whole
selves to Experian.
The Board’s diversity policy is unchanged. We
strongly believe that diversity throughout the
Group and at Board level is a driver of business
success. We respect, value and welcome all
forms of diversity, and seek to reflect the
diversity of our clients, investors and
colleagues on our Board. We recruit talented
Board members, who have the appropriate
mix of skills, capabilities and market
knowledge to ensure the Board is effective.
When recruiting, we look across all sectors
and non-traditional talent pools, and we
require diversity on our candidate shortlists.
In line with the requirements of the FCA Listing
Rules, companies must report information and
disclose against targets regarding the
representation of women and ethnic minorities
on their Boards and in executive management
(for Experian, this is our Group Operating
Committee). The current female representation
on our Board is 45%, which exceeds the
requirement of the rules. We also monitor the
FTSE Women Leaders Review in relation to the
position of our Group Operating Committee
(and direct reports of Group Operating
Committee members). The proportion of
women in this population at 31 March 2024 is
30%. As part of our commitment to continue to
improve our gender diversity, last year we put
in place a three-year goal of 30% for this
group. This, alongside the goals set for senior
and mid-level leaders within Experian, will
ensure a strong pipeline of women for our
most senior positions over time. In addition, the
March 2024 Parker Review Committee report
regarding ethnic diversity confirmed that we
exceeded their Board ethnic diversity
recommendations.
We continue to recognise the significant
benefits of a diverse Board and, when
recruiting, will continue to seek to address any
diversity gaps on our Board, including gender
and ethnicity. Alison Brittain is our Senior
Independent Director and was formerly Chair
of the Remuneration Committee. In January
2024, Louise Pentland succeeded Alison as
Chair of the Remuneration Committee. Both
positions are regarded as senior Board roles
within Experian, and the Senior Independent
Director role is considered as a senior Board
position under the FCA rules. Throughout the
year, the Board included two independent
non-executive directors from ethnic minority
backgrounds.
At Experian, we embrace diversity and
appreciate the different perspectives and
unique value each colleague brings.
Fundamentally, we do not discriminate against
anyone based on race, colour, religion, gender,
sexual orientation, gender identity or
expression, national origin, disability, age,
covered veteran status, or any other
characteristic protected by law. We provide a
safe, healthy and productive work environment
for all colleagues. We are committed to
respecting and promoting human rights and
we do not tolerate any infringement of these
rights in our business or our supply chain. The
Group’s Global Code of Conduct applies to
everyone at Experian, including contractors,
suppliers and others who do business with us.
Contractors and suppliers performing work on
behalf of Experian are expected to comply with
the law and the portions of the Group’s Global
Code of Conduct that apply to them.
As well as the Board policy outlined above, the
Group’s Global Code of Conduct further
outlines our approach and how we think about
diversity. We understand the fundamental
value that diversity, equity and inclusion brings
to our business, and there are many ongoing
initiatives to support a work environment
where everyone is treated with fairness and
respect, has equal access to opportunities and
resources, and can contribute fully to our
success. To find out more please see our 2024
Power of YOU Report: Driving Social Impact
and Diversity, Equity & Inclusion.
125
Experian plc
Annual Report 2024
Governance
Code principle
Composition, Succession and Evaluation
Board, committee and director performance review
The Code specifies that the Board should
undertake a formal and rigorous annual
evaluation of its own performance and that
of its committees and individual directors,
and that the Board should also have an
externally facilitated review at least once
every three years.
FY24 was year two of our Board’s three-year
review cycle. Last year (FY23), an independent
external review was conducted by Manchester
Square Partners (who have no other
connection with the Group or Board
members), to provide the Board with greater
insights into its performance and to identify
opportunities to further increase and improve
its overall effectiveness. Overall, the
conclusion of that review was that Board
performance is strong and considered among
best in class but that there was also no
complacency. All directors were ambitious
for the business and keen to realise its full
potential. They recognised the challenges
that will be faced by Experian strategically,
operationally and financially through the next
stage of its development. There was broad
alignment on what the Board needed to do,
and continue to do, to be even more effective.
Following that external review, the Board
agreed areas of focus for FY24, and an
update is provided on page 127.
Board
• Group Corporate Secretariat reviewed progress against the agreed FY24 areas of focus,
and an update was presented at the Board meeting in March 2024.
• That update, and the Board review and discussion of its actions, and the actions of
management against the FY24 areas of focus, formed the basis of this year's review from
a Board perspective, and new FY25 areas of focus were agreed.
Committees
• A performance review discussion was included on the agendas of the Board committee
meetings, supported by an analysis of how each committee was performing against the
key areas in its terms of reference.
• A performance review discussion took place at the Audit Committee's meeting in September
2023 and at the meetings of the Nomination and Corporate Governance Committee and
Remuneration Committee held in November 2023. The reviews confirmed that all
committees continue to operate effectively and efficiently.
Individual directors
• Meetings were held between each director and the Chair in March 2024 in relation to each
director’s performance.
• The Senior Independent Director evaluated the Chair, taking account of input from other
directors.
Year 3 – FY25
Questionnaire-based internal
evaluation
Year 1 – FY23
Evaluation by external facilitator
Year 2 – FY24
Internal review against detailed
Year 1 review
This year, the second year of our review
cycle, the Board performed an internal
review and an evaluation of progress against
the FY24 areas of focus and the resulting
actions, as well as agreeing new areas of
focus for the coming year, FY25. The third
year of the cycle, to be undertaken in FY25, is
expected to include the use of a
questionnaire-based internal evaluation,
based on the agreed three-year performance
review cycle.
This year's internal evaluation was
structured as follows:
Nomination and Corporate Governance Committee report
continued
Experian plc
Governance
126
Code principle
Composition, Succession and Evaluation
Area
Focus
Progress
Ongoing education of
non-executive directors
(NEDs)
The Board recognises the high quality
and the varied level of experience of the
Board, and has kept under review the
best approach to ongoing education,
with a view to prioritising topics around
the risks and opportunities from
emerging regulatory themes and how
the Board could influence these. It is
intended to build on the current NED
education and opportunities for further
exposure to the business, through
increased exposure to subject-matter
experts and invitations to client
conferences and other role-specific
meetings.
• During FY24, the non-executive directors were invited to attend the Experian Vision
Conference, a client and industry event in North America that connects business
leaders to ideas and solutions and allows for networking opportunities and insights
from thought leaders.
• As part of the Board’s annual Compliance training programme, at its September
2023 meeting the Audit Committee received a detailed update on developments in
US State Privacy Regulation, which included the evolution of regulation, the current
privacy landscape and Experian’s plans.
• As part of the regular Audit Committee information security reports, NEDs
continued to receive threat-based and thematic cyber updates, including in relation
to encryption and vulnerability management. The external auditor, KPMG, provided
professional knowledge updates and informational briefings to the Audit Committee
in November 2023 on audit and corporate governance reform, and on ESG and the
evolution of non-financial reporting.
• There is strong engagement between relevant subject-matter experts and the Audit
Committee. During the year, the Audit Committee Chair had regular meetings with
the Head of Global Internal Audit, the Global Chief Information Security Officer and
the Group Chief Risk Officer, including in advance of Audit Committee meetings.
• The Audit Committee Chair also met the North America Internal Audit team (and the
Global Head of Audit, and North America Vice President of Internal Audit) in January
2024, to gain feedback on the FY25 internal audit plan, discuss FY24 audit results,
the internal audit people strategy and other related matters.
Talent mapping
The Nomination and Corporate
Governance Committee will increase its
understanding and oversight of the
succession planning that is undertaken
below the level of the Group Operating
Committee. This will include
identification of strengths, development
needs and future potential of identified
successors through the development of
a talent map that will be presented to
the Committee.
• At its November 2023 meeting, the Nomination and Corporate Governance
Committee considered (with the Chief People Officer) a detailed update on executive
succession, succession health and talent development.
• The update covered succession plans for the Group Operating Committee members
and their direct reports, and provided profiles of individual leaders within the
succession pipeline that identified their strengths, development needs and potential.
• In addition, at its January 2024 meeting, the Committee reviewed the Global People
Strategy, which included a detailed update on the plans to build the skills, talent and
leadership needed for growth, diversity, equity and inclusion, and the Experian
culture.
• The update explained how the Group had refocused and strengthened its
succession practices, and highlighted the development paths for successors,
including membership of the redesigned CEO Forum, which is a programme
designed to enable leaders who have been identified as potential successors for
enterprise-leading roles to deliver breakthrough performance in their business
while at the same time driving enterprise value creation at scale.
Progress against the focus areas highlighted in the FY23 review
FY25 focus areas agreed following the FY24 review
Area
Focus
Talent management/
succession planning
Ongoing engagement (including with senior leaders) and consideration of succession is a consistent focus and activity of the
Nomination and Corporate Governance Committee. Over the coming period, the Committee will continue this focus and its deep
engagement with the process, in the context of the long-term operational and functional succession plans for the business.
The Committee recognises the constant diligence that is required in this area, and the balance required.
Scalable business growth
The Board recognises the high-quality annual strategy review meetings and regular global and regional business reviews, and the
Board’s close involvement in these important processes. Over the forthcoming strategic plan period, the business will need to
continue to execute on the scalable growth opportunities that would be expected to drive the most long-term sustainable value,
and the Board will maintain its strategic oversight and focus on those opportunities, prioritising investment accordingly.
127
Experian plc
Annual Report 2024
Governance
Code principle
Composition, Succession and Evaluation
Audit Committee report
Jonathan Howell (Chair)
Alison Brittain
Kathleen DeRose
Caroline Donahue
Luiz Fleury
Esther Lee
Louise Pentland
Composition and experience
• All members of the Committee are
independent non-executive directors and
have been appointed to the Committee
based on their individual financial or
commercial experience. Committee
members have the skills, competence,
and financial and commercial experience
across a variety of industries and sectors,
to enable them to discharge the
Committee’s roles and responsibilities
effectively.
• Jonathan Howell has chaired the
Committee since 1 July 2022, and is a
qualified accountant with recent and
relevant financial experience through his
role as Chief Financial Officer of The Sage
Group plc. He has previously held other
senior finance roles, including as an
independent non-executive director and
Chair of the Audit and Risk Committee of
The Sage Group plc., Group Chief Financial
Officer of Close Brothers Group plc and
Group Chief Financial Officer at London
Stock Exchange Group plc.
• The Financial Reporting Council’s (FRC)
UK Corporate Governance Code 2018 (the
Code) requires that at least one member
of the Committee has recent and relevant
financial experience, and the UK
Disclosure Guidance and Transparency
Rules (DTRs) require that at least one
member has competence in accounting
and/or auditing. The Board is satisfied
that it meets these requirements through
Jonathan Howell’s membership of the
Committee.
• The Board receives the minutes of each
Committee meeting, in addition to the
Committee.
• The Committee is authorised to seek outside
legal or other independent professional
advice as it sees fit.
• The Committee was in place throughout the
year ended 31 March 2024.
Committee's key role
and responsibilities
The responsibilities of the Committee are
defined in the Committee’s terms of reference,
which were most recently reviewed and
approved by the Committee in September
2023. The Committee operates in accordance
with the Code and the FRC’s Guidance on Audit
Committees.
The Board believes the Committee to be a
central pillar for effective corporate governance
by providing independent and impartial
oversight of the Company’s relevant functions.
The Committee's responsibilities include:
• Monitoring the integrity of the financial
statements and reviewing significant financial
reporting judgments contained in them.
• Reviewing internal financial controls and
the Group’s internal control and risk
management systems.
• Reviewing the effectiveness and quality
of the audit process and the independence
and objectivity of the external auditor.
• Monitoring and reviewing the effectiveness
of the internal audit function.
• Developing and implementing policy on
engaging the external auditor to supply
non-audit services, taking account of
relevant guidance.
• Approving the external auditor’s
remuneration and terms of engagement
and making recommendations about its
re-appointment.
• Monitoring and reviewing risk management,
information and cyber security risks, and
compliance matters.
• Providing oversight of the assurance,
monitoring, and review (as appropriate) of
relevant published environmental, social and
governance (ESG) and other non-financial
metrics or reporting.
I am pleased to present the report of the
Committee for the year ended 31 March 2024.
This report outlines how the Committee
discharged the responsibilities delegated to it
by the Board, and the key matters it considered
during the year. It was a busy year for the
Committee, which remains an essential part
of Experian’s overall governance framework.
The Board has delegated to the Committee
the responsibility to oversee and assess the
integrity of the Group’s financial reporting,
non-financial reporting, risk management
and internal control procedures, review of
information security matters (including
strategy), review of compliance matters and
the work of both the internal audit function
and the external auditor, KPMG LLP.
Included in this report are: specific areas of
focus for the Committee during the year (which
included oversight and consideration of the key
elements of proposed UK audit and corporate
governance reforms, including the FRC’s new
Corporate Governance Code 2024, particularly
as it relates to internal controls); and strategic
updates on the second line of defence functions
(Group Risk Management, Information Security
and Global Compliance). The report also
provides details of the Committee’s plans
regarding the upcoming tender of the external
audit, consideration of non-financial reporting,
the significant accounting and reporting
matters the Committee considered in relation
to the financial statements and how these
were addressed, and how the Committee
concluded and recommended to the Board that
the 2024 Annual Report was fair, balanced and
understandable.
Committee meetings
• The Committee met four times during the
year, with each scheduled meeting timed
to coincide with key dates in the Group’s
financial reporting and audit cycle.
• Regular attendees at meetings during
the year included the Chair, the executive
directors, the Group General Counsel, the
Head of Global Internal Audit, the Global
Financial Controller, the Global Chief
Information Security Officer, the Group
Chief Risk Officer and representatives
from KPMG LLP. Other invitees included
the Head of Global Compliance.
• After all meetings, the Committee meets the
external auditor and, separately, the Head of
Global Internal Audit, without management
present. In advance of the formal Committee
meetings, the Chair of the Committee meets
with the Committee's regular attendees,
as well as the external auditor.
• Outside of regular meetings, the Chair met
with the external auditor's regional teams,
and various key internal stakeholders
including the North America Internal
Audit team.
Link to the Committee
terms of reference
experianplc.com/about-us/
corporate-governance/
board-committees/
During the year, the Audit Committee
(the Committee) maintained its focus
on matters relevant to the Group's
financial reporting, oversight of
internal controls and the continued
strengthening of risk management.
Jonathan Howell
Chair of the Audit Committee
Members
Experian plc
Governance
128
Code principle
Audit, Risk and Internal Control
Committee activities – specific meetings
September 2023
November 2023
March 2024
May 2024
• Reviewed and discussed pre-half-
year-end accounting matters.
• Reviewed and approved second
line of defence strategic updates
(see next page) and terms of
reference.
• Reviewed the FY24 external audit
plan with the external auditor,
including the engagement letter
and independence
considerations.
• Reviewed and discussed the
evaluation of the external auditor
(see page 133 External audit).
• Evaluated the performance of
Global Internal Audit (see page
133 Internal audit).
• Reviewed a Confidential Helpline
and Whistleblowing update.
• Reviewed an update on fraud
identification and management.
• Reviewed and approved the
Group’s Treasury Policy.
• Approved the terms of reference
for Internal Audit.
• Reviewed the Committee’s terms
of reference, and recommended
changes to the Board.
• Received Compliance training
from the Chief Global Privacy,
Ethics and Regulatory
Compliance Officer, including
updates on US State Privacy
Regulation.
• Approved the Committee’s annual
meeting schedule and reviewed
the Committee’s performance
against its terms of reference.
• Reviewed the half-yearly financial
report announcement, and
papers in relation to:
– half-year accounting matters
– the preparation of the
half-yearly report on the going
concern basis
– a fair, balanced and
understandable assessment
– the making of management
representations.
• Reviewed the external auditor’s
half-year report.
• Received professional knowledge
updates, and informational
briefings, on audit and corporate
reform and non-financial
(including ESG) reporting from
the external auditor.
• Received an update on
non-financial reporting (including
changes to ESG regulatory
reporting).
• Reviewed non-audit fees.
• Reviewed the principal
accounting policies, pre-year-end
accounting matters and updates
on the year-end financial
statements and financial review.
• Reviewed the external auditor’s
pre-year-end report, including
scope, status and controls
findings.
• Reviewed the Global Internal
Audit strategy and annual plan.
• Reviewed the Group’s non-audit
fee policy.
• Reviewed the Group audit fee.
• Reviewed the Group’s Tax Policy.
• Reviewed a Confidential Helpline
and Whistleblowing update.
• Reviewed an update on fraud
identification and management.
• Considered the re-appointment
of the external auditor.
• Reviewed risk, information
security and compliance strategic
updates.
• Reviewed the Group Risk Appetite
Statements.
• Received an update on audit and
corporate reform (including the
FRC’s new Corporate Governance
Code 2024 and Audit Committees
and the External Audit: Minimum
Standards).
• Reviewed the preliminary results
announcement and the Annual
Report, and papers in relation to:
– year-end accounting matters
– the preparation of the financial
statements on the going
concern basis (see also note 2
to the Group financial
statements)
– the making of a viability
statement recommendation
to the Board
– the fair, balanced and
understandable assessment
– the making of management
representations.
• Reviewed the 2024 Annual Report
to ensure it was fair, balanced and
understandable and provided
information enabling an
assessment of Experian’s position
and performance, business
model and strategy.
• Reviewed the Risk Management
framework and Summary of
Assurance.
• Approved the required Statement
on Internal Controls and Risk
Management.
• Received an update on the
Group’s plans regarding an
external audit tender.
• Reviewed the external auditor’s
year-end report, including
independence considerations.
• Reviewed non-audit fees.
Committee activities – all meetings
• Reviewed significant accounting and
reporting matters updates from the Chief
Financial Officer and Global Financial
Controller at each meeting.
• Reviewed an Information Security update
from the Global Chief Information Security
Officer at each meeting. This is a standing
item on the Committee agenda, given its
importance to the Group.
• Reviewed full or summary risk management
updates at each meeting, including the status
of risk and litigation management.
• Reviewed papers from the external auditor
detailing the status of their work against plan,
and findings and conclusions in respect of
their opinion covering the reporting period.
• An Internal Audit update was presented by
the Head of Global Internal Audit at each
meeting and discussed by the Committee.
This included the status of the audit plan,
audit findings and themes in the reporting
period, and progress on any overdue audit
actions.
Activities during the year
The Committee has an extensive agenda and carries out a range of significant activities during the year. Some standing items are covered at every
meeting, such as updates on internal audit, information security and risk management, while other key items are covered at specific meetings
depending on the cadence of activities during the year. This includes review of the half-year and preliminary results announcements, review of the
Annual Report and assessment of internal and external audit.
The tables below set out these activities, and the associated timings, in more detail.
129
Experian plc
Annual Report 2024
Governance
Code principle
Audit, Risk and Internal Control
September 2023 – second line of defence strategic updates
• At its September 2023 meeting, the
Committee received and discussed important
second line of defence strategic updates from
the senior management leaders of Group
Risk Management (GRM), the Global Security
Office (GSO) which is responsible for
Information Security, and Global Compliance.
• A wide range of measures has been
implemented in recent years to strengthen
Experian’s approach to the relevant Group
principal risks, the next phase of which is to
continue to harmonise the overall approach
including management of the Group’s most
material risks.
• GRM introduced a revised risk quantification
approach, and have established the Group's
first set of Global Key Risk Indicators.
• The GSO has established enterprise risk
reduction programmes (ERRPs) to provide
a programmatic structure to the most
important global security actions.
• The GSO and Global Compliance have used
the risk management infrastructure to
support them in delivering their operational
mandates, maturity actions and assessing
and mitigating specific existing and emerging
risks.
• Global Compliance completed the first
external maturity assessment and intends to
further develop action plans in response to
the recommendations. With the previous
external assessments of GRM (FY22) and
Information Security (FY23), there is now a
complete set of externally assured maturity
baselines to measure progress against.
There is now a consistent approach, strategic
goal, taxonomy, and cadence of reporting
across the Group’s risk management
programme. The Committee will continue
to regularly assess progress on maturity
both internally and externally.
• The Committee also considered and
approved updated terms of reference for
each second line of defence function.
Significant accounting and reporting matters
At each meeting, the Committee received a formal financial update from the Chief Financial Officer and/or the Global Financial Controller informing
the Committee of developments in the Group’s reporting and accounting environment, and compliance with relevant reporting standards. During the
year, the Committee assessed the overall quality of financial reporting through review and discussion of the significant accounting matters and the
half-year and annual financial statements.
The Committee’s review included assessing the appropriateness of the Group’s accounting policies and practices, confirming compliance with
financial reporting standards and relevant statutory requirements, and reviewing the adequacy of disclosures in the financial statements. In
performing its review of the Group’s financial reporting, the Committee considered and challenged the work, judgments, and conclusions of
management. The external auditor also provided the Committee with reports setting out its findings and conclusions on the accounting treatments
included in the financial statements, which the external auditor can discuss privately, without management present, with the Committee.
The table below summarises the significant accounting and reporting matters considered by the Committee in relation to the Group’s financial
statements and the way they were challenged by the Committee and concluded. These matters, together with any other significant considerations
of the Committee, are reported to the Board.
Significant matter
Response
Challenge and outcome
Cross reference
Acquisitions
The Group has completed seven
acquisitions during the year,
including the acquisition of WaveHDC
for consideration of US$216m, and
MOVA Sociedade de Empréstimo
entre Pessoas S.A. (MOVA) in Brazil
for consideration of US$111m.
The size of the consideration paid for
the WaveHDC acquisition means that
the identification and valuation of
acquired intangible assets is a
matter of focus for the Committee.
The consideration for MOVA includes
a put option liability and contingent
consideration, both recorded at their
respective fair values of US$71m and
US$32m. Both liabilities are linked to
the future financial performance of
MOVA, with the range of potential
outcomes significant. Their
estimation is therefore an area
of focus for the Committee.
The Committee received updates on
management’s proposed acquisition
accounting for WaveHDC and MOVA.
Management presented the
assumptions and key inputs used
in the valuation of both the acquired
intangibles for WaveHDC, and
acquisition liabilities for MOVA.
Third-party valuation specialists
were engaged to assist with the
valuation of these balances, and
the results were fed back to the
Committee.
KPMG presented its conclusion on
this matter to the Committee,
including its assessment of the
reasonableness of both valuations.
The Committee considered the reasonableness of the key
judgments and assumptions made in the valuation of these
balances. This included challenging management on whether
the estimates made in the valuations were appropriate and
reviewing the results of the third-party valuation specialists.
The Committee concluded that the identification and
valuation of acquired intangibles for WaveHDC were
appropriate, and that the valuation of the earnout and put
option liabilities for MOVA was reasonable.
The Committee concurred with management's proposed
acquisition accounting for both WaveHDC and MOVA.
See note 41
to the Group
financial
statements.
Audit Committee report
continued
Experian plc
Governance
130
Code principle
Audit, Risk and Internal Control
Significant accounting and reporting matters
Significant matter
Response
Challenge and outcome
Cross reference
Impairment review – goodwill and
other intangible assets
Given the size of the Group’s goodwill
and other intangible assets, the
recoverability of these assets is a
significant area of focus for the
Committee.
A summary of the annual
impairment analysis, alongside the
underlying assumptions and inputs
was provided to the Committee.
The external auditor, KPMG, provided
an update to the Committee on the
procedures performed over the
Group’s impairment analysis,
alongside its findings and conclusions
on the reasonableness of the key
inputs into the analysis. These were
discussed with KPMG at the relevant
Committee meeting.
The Committee considered the level at which goodwill is
tested and concurred with management that EMEA and Asia
Pacific now represents the lowest level at which goodwill is
allocated and monitored, and should be tested for
impairment on this combined basis.
The Committee scrutinised the methodology, inputs, and
assumptions applied by management, in particular ensuring
that changes in the macroeconomic environment were
appropriately captured. This included acknowledging the use
of external sources to support and corroborate
management’s inputs.
The Committee further enquired as to whether any other
reasonable changes in assumptions would result in an
impairment charge in EMEA and Asia Pacific.
The Committee considered the impairment reviews to be
reasonable and agreed with management’s proposed
sensitivity disclosures for EMEA and Asia Pacific.
See note 20
to the Group
financial
statements.
Litigation and contingent liabilities
The operating activities of the Group
are subject to regulation across a
high number of geographical
markets.
The volume and size of outstanding
claims the Group is subject to mean
that the judgments applied when
assessing the likelihood of a liability
crystallising can have a significant
impact.
The Committee received an update
and analysis of open litigation and
regulatory matters affecting the
Group, including the enforcement
notice from the UK Information
Commissioner’s Office.
The Committee met with the Group’s
legal counsel, received regular
litigation updates, and considered
external advice in order to facilitate
their review, alongside the feedback
provided by KPMG on the conclusion
of its relevant audit procedures.
The Committee challenged management on the key
judgments and assumptions made in assessing whether
a provision or contingent liability disclosure was required.
The Committee concluded that these matters had been
appropriately provided for at 31 March 2024.
The Committee considered and concurred with the proposed
contingent liability disclosures included in the notes to the
Group financial statements.
See note 45
to the Group
financial
statements.
Tax
The Group is subject to tax in
numerous jurisdictions. The Group
has a number of open tax returns
with various tax authorities with
whom it is in active dialogue.
The key uncertainties in the year
related to the deductibility of
purchased goodwill, inter-company
trading and financing. US$61m
(2023: US$102m) is included in
current tax liabilities in relation to
these judgmental areas.
The Committee received a regular
update from management on the
adequacy of provisions in respect
of significant open tax matters.
This included details of ongoing
correspondence with tax authorities
in the USA and Brazil and the
principal areas of tax challenge.
KPMG briefed the Committee on the
output of its audit procedures over
uncertain tax liabilities, and its
conclusion on the provisions made
by management.
The Committee considered the evidence available to
management in respect of these open matters and
challenged the judgments adopted by management.
The Committee challenged management as to whether
the value of the provisions held was sufficient compared
to the level of open tax matters.
The Committee concurred with management’s assessment
of open tax matters, noting the significant decline in
uncertainty during the year following the agreement of some
historical tax positions.
See note 17
to the Group
financial
statements.
Going concern and viability
assessments
Given the level of management
judgment required in forming
conclusions with regard to the going
concern and viability assessments,
these are key areas of focus for the
Committee.
A summary of the Group’s going
concern and viability assessments
was presented to the Committee.
The Committee reviewed the results
of management’s scenario-specific
stress testing for both going concern
and viability, as well as reverse stress
testing, which demonstrated the
resilience of the Group.
As part of its review, the Committee
took into consideration updates
provided by KPMG on its procedures
and conclusions on the viability of the
Group.
The Committee challenged and reviewed management’s
process for assessing going concern and the Group’s
longer-term viability. The appropriateness of the stress-test
scenarios identified, and the reasonableness of key
assumptions used by management in calculating the financial
impact of a viability scenario arising over the forecast period
were reviewed and challenged.
The Committee considered and concurred with management’s
assessment and recommended to the Board the preparation
of the financial statements on the going concern basis.
See page 101
for the Group’s
going concern
and viability
statements.
131
Experian plc
Annual Report 2024
Governance
Code principle
Audit, Risk and Internal Control
Fair, balanced and understandable – what do we do?
Each year, in line with the Code and the Committee’s terms of reference, the Committee is asked by the Board to consider, and recommend, whether
or not the Annual Report is fair, balanced and understandable (FBU) and whether or not it provides the information necessary for shareholders to
assess the Group’s position and performance, business model and strategy. There is an established process to support the Committee in making this
assessment, and broadly the same process is followed for the Group’s half-yearly financial report.
• Following its review this year, the Committee
concluded that it was appropriate to confirm
to the Board that the 2024 Annual Report was
fair, balanced and understandable, and
provided the information necessary for
shareholders to assess the Group’s position
and performance, business model and
strategy. The FBU statement appears in the
Directors’ report.
The 'key areas to focus on'
included ensuring that:
• The overall message of the narrative
reporting is consistent with the primary
financial statements.
• The overall message of the narrative
reporting is appropriate, in the context of the
industry and the wider economic
environment.
The main elements of the process are:
• A list of ‘key areas to focus on’ was previously
provided to the Annual Report team. The
team is reminded of the requirement
annually and asked to reflect this in the
drafting.
• An internal FBU committee considered the
Annual Report in May 2024, ahead of the May
2024 Committee meeting. A wide range of
functions is represented on this committee,
including executives from finance,
communications, investor relations, legal and
corporate secretariat. The external auditor
also attends this committee meeting and
challenges the assessment.
• In advance of its May 2024 meeting, the
Committee received a near-final draft of the
Annual Report, together with a reminder of
the areas to focus on. The FBU committee’s
observations and conclusions were also
relayed to the Committee.
• The Annual Report is consistent with
messages already communicated to
investors, analysts and other stakeholders.
• The Annual Report, taken as a whole, is fair,
balanced and understandable.
• The Chair and Chief Executive Officer’s
statements include a balanced view of the
Group’s performance and prospects, and of
the industry and market as a whole.
• Any summaries or highlights capture the big
picture of the Group appropriately.
• Case studies or examples are of strategic
importance and do not over-emphasise
immaterial matters.
Specific areas of focus
The Committee spent time on the following
specific areas during the year to consider and
challenge relevant, current and important
issues:
• At each Committee meeting, consideration
was given to the Group’s operations, risks
and controls. Specifically, this included
consideration of the impact of the
macroeconomic environment upon the
Group’s wider Enterprise Risk Management
Framework, emerging risks, business
continuity planning strategy and significant
reporting and accounting matters.
• In September 2023, the Committee received
an update on non-financial reporting (NFR),
and significant upcoming changes to ESG
regulatory reporting including future
reporting under the new EU Corporate
Sustainability Reporting Directive (CSRD) in
FY26. The Committee reviewed the Group’s
control and assurance approach for
managing NFR, as well as the plans and
timelines to address the reporting
requirements under CSRD. The Committee’s
terms of reference were also updated to
cover the Committee’s responsibility for
oversight of assurance of published NFR
or ESG metrics.
• A significant area of focus during the year
was the UK Government’s consultation
(through the UK Department for Business
and Trade (DBT), formerly part of the UK
Department for Business, Energy and
Industrial Strategy (BEIS)) on proposed audit
and corporate governance reform as well as
the FRC’s consultation on changes proposed
to the Code. More details are now known of
the changes that will impact Experian, and
the Committee continues to review and
monitor the Group’s plans and preparations
for adopting the financial governance and
corporate reporting changes, and is satisfied
the key areas of focus are being progressed
and addressed.
Whistleblowing arrangements,
Confidential Helpline and fraud
management
At its September 2023 and March 2024
meetings, the Committee received Confidential
Helpline updates, and updates relating to fraud.
The Committee reviewed the Group’s
arrangements for colleagues to raise concerns
in confidence regarding the way the business is
run. This includes concerns about activities that
are not in the best interests of consumers or
clients, serious breaches of Experian policies
and regulations, information security threats,
harassment or bullying, criminal activity,
modern slavery and fraud. At the meetings, the
Committee received reports from Internal Audit
on all relevant issues, raised either through the
Group’s externally facilitated and independent
Confidential Helpline or by alternative means.
These reports and updates also analysed any
issues raised by location, category of concern
and the investigation process. The Confidential
Helpline supports all languages spoken by
colleagues and is accessible either by phone (24
hours a day, seven days a week) or through a
web portal. Underpinning these arrangements
is the Group's Whistleblowing Policy as well as
the Group's Global Code of Conduct, together
with other key policies such as the Anti-Bribery
and Corruption and Gifts and Hospitality
Policies. These policies, together with regular
communications on the Confidential Helpline
across the Group’s business, ensure knowledge
and awareness of the Group’s arrangements.
Information security
At each meeting during the year, the
Committee reviewed an information security
update, and discussed it in detail. This report
provides a summary of the key information
security threats and risks the Group faces, the
key programmes to reduce risk and improve
maturity as part of Experian’s information
security strategy, updates on information
security capabilities and engagement, as well
as a scorecard measuring information security
operating performance.
Audit Committee report
continued
Experian plc
Governance
132
Code principle
Audit, Risk and Internal Control
The Group’s information security strategy
and capability is measured on a globally
recognised standard – the US National Institute
of Standards and Technology (NIST) framework.
This provides an understanding of information
security risks and the development of
customised measures to assess and manage
those risks. At its September 2023 meeting,
the Committee received an update on the
Group’s information security strategic plan.
The strategic plan delineates actions and
deliverables to enhance and build the security
capabilities necessary to mitigate current and
emerging risks, using a threat-informed and
risk-based approach.
Global compliance
At its September 2023 meeting, the Committee
reviewed and discussed the Global Compliance
strategic update. This provided the Committee
with an update on key factors influencing the
Group's regulatory environment, and the
Global Compliance function and operations.
Progress in the structure of the Global
Compliance organisation was noted and
discussed by the Committee, as well as the
further strengthening of the function as
Experian moves into more highly regulated
activities such as payments.
During the year, external adviser EY was
engaged to conduct an independent
assessment of Experian’s compliance maturity
posture and Compliance Management
Programme (CMP), including a comparison of
regional maturity within the business and with
peer groups. The comparison used a financial
services benchmark and included financial
data providers, financial service companies,
and FinTech businesses of similar size and
footprint to Experian. The overall conclusion
was that components of the current CMP are
fit for purpose, and a number of
recommendations for enhancement were
made that would support Experian’s ambitions
to continue to increase regional maturity,
particularly in the more highly regulated
sectors Experian operates in. The business
intends to adopt EY’s recommendations for
more consistent global practices, while
continuing to operate a regionalised and
risk-based model, with the level of compliance
maturity across and within regions reflecting
the needs, risks, and regulated activities of the
relevant businesses.
Internal audit
The role of Internal Audit is to provide
independent, objective assurance and
consulting activity to the Committee and
management. Internal Audit brings a
systematic, disciplined approach to evaluating
and improving the effectiveness of risk
management, controls, and governance
processes. The audit team is independent from
the business and reports to the Head of Global
Internal Audit who, in turn, reports functionally
to the Committee and administratively to the
Chief Financial Officer. The Committee or
Committee Chair approves the appointment,
remuneration, and removal of the Head of
Global Internal Audit. The Head of Global
Internal Audit has the right of direct access to
the Committee and the Chair of the Board, and
the audit team has no direct operational
responsibility for or authority over any of the
activities it reviews.
At each meeting, the Head of Global Internal
Audit presents an update to the Committee.
This includes the progress against the audit
plan, and a report on the audit findings and
themes. In addition, at the meeting in March
2024, the Committee reviewed and approved
the Global Internal Audit strategy and plan for
the year.
Each September, Internal Audit updates the
Committee on key elements of the advisory
support provided to the business over the
previous 12 months, in addition to its regular
audit reporting work. These can range from
full advisory audits, to participation in project
meetings, to support for key initiatives, and
below is a sample of these. Internal Audit:
• continued to work with the other governance
functions in developing the Group’s risk
framework model
• provided thematic analysis and support to
the sub-groups involved in the mergers and
acquisitions project to improve due diligence
and integration processes globally and
provided additional advisory feedback on
potential policy and process changes related
to strengthening integration plans and future
modifications to merger and acquisition
processes
• provided advisory feedback during the
annual policy refresh process on the
information security policy
• was engaged and involved in a Global Cloud
Technology strategy forum to provide risk
monitoring and advisory feedback.
The specific objectives, authority, scope, and
responsibilities of the Internal Audit team are
set out in more detail in the Experian Internal
Audit terms of reference, which are reviewed
annually by the Committee. The Committee
also considers and evaluates the level of
Internal Audit resources and its quality,
experience and expertise, supplemented as
appropriate by third-party support and subject
matter expertise, to ensure it is appropriate to
provide the required level of assurance.
In line with the Chartered Institute of Internal
Auditors’ (IIA) Code of Practice, and the Code,
the effectiveness of Internal Audit is reviewed
by the Committee every year and is also
subject to an external quality assessment
(EQA). There is a four-year evaluation cycle for
Experian’s Internal Audit function, the structure
of which is a full EQA every four years, and
follow-up interim external quality
assessments and internal reviews in the
intervening period.
An external EQA took place in FY23,
undertaken by PwC. This year the review of
Internal Audit was undertaken internally, and in
September 2023 the Committee reviewed the
conclusions of the review in detail. The report
highlighted that Internal Audit is considered
effective and professional, and a small number
of opportunities and improvements were
noted. The review comprised: internal quality
assurance results; post-audit stakeholder
feedback; key internal metrics; self-
assessment against the International
Standards for the Professional Practice of
Internal Auditing and the Code of Ethics by the
Head of Global Internal Audit; and a survey of
principal stakeholders for areas requiring
improvement. All audits that had been
assessed using Internal Audit’s quality
assurance process were rated positively, with
strong adherence to standards and processes.
The assessment against key internal metrics
indicated an improvement in the time taken
to issue reports. There was conformance with
the International Standards for the Professional
Practice of Internal Auditing, and stakeholder
feedback on the function was strong with the
team viewed as highly effective, professional
and independent.
External audit
Tenure and tendering
The Company operates, and has throughout
the year under review operated, in line with
the requirements of The UK Statutory Audit
Services for Large Companies Market
Investigation (Mandatory Use of Competitive
Tender Processes and Audit Committee
Responsibilities) Order 2014. In accordance
with the terms of this order following KPMG’s
initial appointment as external auditor in 2016,
Experian intends to conduct a comprehensive
and competitive tender process during the
year for the external audit for the financial year
ending 31 March 2027. This timing was chosen
to provide sufficient time to allow for the
selection process, an orderly transition and full
independence of the incoming firm, in the
event of a change in auditor. The audit tender
process will be led by the Chair of the
Committee, on behalf of the Committee,
supported by a steering group.
Each year, the Committee makes a
recommendation to the Board as to whether
the existing external auditor should be
re-appointed. Before making that
recommendation, the Committee considers
the auditor’s effectiveness, including its
independence, objectivity and scepticism.
133
Experian plc
Annual Report 2024
Governance
Code principle
Audit, Risk and Internal Control
Effectiveness, audit quality,
independence and appointment
At its September 2023 meeting, the Committee
reviewed and discussed KPMG’s audit strategy
for the year ended 31 March 2024. In March
2024, the Committee received detailed updates
on the audit’s progress, which included details
of the external auditor’s actions, such as the
audit procedures undertaken, the audit’s
coverage, and the status of any significant
findings, as well as details of key matters
arising from the audit and assessments of
management’s judgments on them. At the end
of each scheduled meeting during the year
under review, KPMG met the Committee to
discuss any relevant matters without
management present. The Committee
reviewed the content of the independence
letter and the management representation
letters, as well as engagement terms.
The terms of reference of the Committee
include a requirement to annually assess the
effectiveness of the external auditor. Internal
Audit supported the Committee by gathering
information to complete this review and issued
questionnaires to the Board members and
certain senior management, as well as a more
detailed set of questions to senior finance
leadership.
The review focused on the four key areas used
in the FRC’s December 2019 ‘Practice aid for
audit committees’: mindset and culture; skills,
character and knowledge; quality control; and
judgment. The Committee also reflected on
the assurance on financial statements, the
audit teams and communication, as well as
considering external regulatory updates on
the external auditor received during the year.
The overall results of the review were
favourable, with the audit being considered
effective and of high quality. In general, KPMG
was felt to be effective and collaborative
throughout the audit process. It provided
robust challenge, demonstrated strong
judgment and communications were clear.
Overall, KPMG had provided an effective and
robust audit. Suggestions for improvement
were discussed with KPMG. These related
to minor communication challenges around
timelines for subsidiary audits. Further,
suggestions were made to improve
communication between KPMG offices
to improve the overall audit process.
The Committee also evaluates the quality of
the audit (along with the effectiveness review
described above) in the following ways:
Meeting attendance by the external auditor
– KPMG attended all scheduled Committee
meetings during the year, and reported to the
Committee on the components of the audit
plan, additional or forthcoming requirements
or regulatory changes, audit findings and
half-year review findings. KPMG also provided
professional knowledge updates, and
informational briefings, to the Committee
on audit and corporate reform and on
non-financial (including ESG) reporting.
Audit Quality Review (AQR)
– In July 2023, the
FRC published its report on the findings of its
annual AQR for KPMG, which set out the FRC’s
findings on key matters relevant to audit
quality and was primarily based on a sample
of individual audits (mainly public interest
entities, or PIEs), and the FRC's assessment
of elements of the firm’s systems of quality
control. The inspection results noted a slight
reduction in the FRC’s assessment of audit
quality for audits requiring limited
improvements. However, the FRC remained
positive that the investments in audit quality
made by KPMG in the past will continue to
deliver expected improvements. Some findings
were identified for KPMG in relation to its
banking audit improvement plan. The report
also noted good practice including risk
assessment and audit planning.
Auditor independence
To ensure auditor objectivity and independence,
the Committee reviews potential threats to
independence and the associated safeguards
during the year. The safeguards KPMG had in
place during the year under review to maintain
independence included annual confirmation
by KPMG staff of compliance with ethics
and independence policies and procedures.
KPMG also had in place underlying safeguards
to maintain independence by: instilling
professional values; communications;
international accountability; and independent
reviews. There was also appropriate
pre-approval for non-audit services, which
are provided only if permissible under
relevant ethical standards. Details of this
policy are laid out below and on page 135.
Following the year-end audit, neither Experian
nor any of its subsidiary companies will
employ any audit partner or audit team
member in a position that could have a
significant influence on the Group’s accounting
policies or the content of its financial
statements until a cooling-off period has
elapsed. The cooling-off period is two years
for an audit partner, and one year for a director,
where they have worked on the audit of
Experian plc or its subsidiaries.
The Committee will receive an update if any
audit team members are recruited to senior
positions by Experian, followed thereafter by
annual reporting on numbers of former auditor
senior employees, should any remain.
The Committee also considered the
independence of the external auditor’s
partners and staff involved in the audit
process. KPMG has confirmed that all its
partners and staff complied with its ethics and
independence policies and procedures that are
consistent with the FRC’s ethical standards,
including that none of its employees working
on the Experian audit holds publicly listed
securities issued by Experian. In addition,
the Committee acknowledges management’s
internal assessment that no employee in a key
financial reporting oversight role has a close
relationship with any KPMG employee that
may impact KPMG's independence.
The Committee concluded that the external
auditor had maintained its objectivity and
independence throughout the year.
Provision of non-audit services
KPMG provides certain other services to
Experian. To ensure auditor objectivity and
independence, Experian has a policy relating
to providing such services. The policy includes
financial limits above which any proposed
non-audit services must be pre-approved,
depending on the expenditure proposed.
An analysis of fees paid to the external auditor
for the year ended 31 March 2024 is set out in
note 14 to the Group financial statements.
The Committee annually reviews the policy
on the provision of non-audit services and
recruitment of former auditor employees,
and the latest review took place in March 2024.
The Committee considered the application
of the policy, and confirmed it was properly
and consistently applied during the year.
The policy, a summary of which is set out
below, recognises the importance of the
external auditor’s independence and
objectivity.
Non-audit services policy
The external auditor is prohibited from
providing any services other than those
directly associated with the audit or required
by legislation and/or permitted by FRC ethical
guidance. These limited services are detailed
in the non-audit services policy, which is
reviewed and approved by the Committee
each year.
The appointment of the external auditor for any
non-audit work up to US$50,000 must be
approved by the Global Financial Controller.
The appointment of the external auditor for any
non-audit work where the expected fees are
over US$50,000 and up to US$100,000 requires
the approval, in advance, of the Group Chief
Financial Officer. Where the expected fees are
over US$100,000, the approval of the Chair of
the Audit Committee is required in advance.
Where cumulative annual non-audit fees
exceed the 30% annual limit, all expenditure
must be approved by the Audit Committee.
All expenditure is subject to a tender process,
unless express permission is provided by
the Chair of the Audit Committee, the Chief
Financial Officer or the Global Financial
Audit Committee report
continued
Experian plc
Governance
134
Code principle
Audit, Risk and Internal Control
Controller based on the above approval limits.
Any expenditure below US$100,000 not subject
to a tender will be notified to the Chair of the
Audit Committee annually.
Commercial agreements where Experian
provides services to the auditor must be
approved by the Global Financial Controller and
not exceed the lower of 5% of the local Experian
entity’s total revenue and US$250,000, and all
transactions should be undertaken on an arm’s
length basis. Transactions in excess of this limit
require approval of the Chair of the Audit
Committee in advance.
The Committee received half-yearly reports
providing details of non-audit assignments and
related fees carried out by the external auditor
in addition to the normal work.
Auditor re-appointment
Having considered the effectiveness,
independence and objectivity of KPMG
as summarised above, the Committee
recommended to the Board that a resolution
to re-appoint KPMG be proposed at the 2024
AGM, which the Board reviewed and approved.
Risk management and internal control
The Board is responsible for maintaining and
reviewing the effectiveness of the Group's 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 business objectives or
to successfully deliver Experian's business
strategy.
Experian’s risk management programme
is regularly reviewed by the Committee and
in FY22 the Committee engaged an external
firm to assess the current state and identify
opportunities for further enhancement.
Following this review, the Group defined
a new strategic plan for the approach to risk
management, which sets a clear vision to
continue the maturing of a sustainable and
embedded risk management framework
within Experian.
During the year, and as outlined earlier, the
Committee received second line of defence
strategic updates at its September 2023
meeting from Group Risk Management, the
Global Security Office and Global Compliance.
As well as these strategic updates, the
Committee was briefed on tactical measures
already underway, on a threat-informed basis,
to manage and mitigate near-term reductions
in areas of risk critical to the defence of the
Experian business. These measures focus
on complex areas where a need to rapidly
evolve the process, controls and operational
assurance of implementation has been
identified. The Group's risk management
processes are designed to identify, assess,
respond to, report on and monitor the risks that
threaten the ability to achieve the business
strategy and objectives, within the Group's
risk appetite.
There is an ongoing process for identifying,
evaluating, and managing the principal and
emerging risks Experian faces. This process
was in place for the financial year and up to the
date of approval of this Annual Report. Full
details of our risk management and internal
control systems and processes can be found
in the Risk management and principal risks
section of the Strategic report on page 92.
The Committee considers emerging risks with
management as part of the standing risk
management update it receives.
Effectiveness of the risk management
and internal control systems
In line with the Code, the Committee (on behalf
of the Board) monitors the internal control and
risk management systems, robustly assesses
the emerging and principal risks identified by
our risk assessment processes (including
those that would threaten Experian's business
model, future performance, solvency or
liquidity and reputation), and monitors actions
taken to mitigate them. For certain joint
arrangements, the Committee relies on the
systems of internal control operating within
Experian partners’ infrastructure and the
obligations of partners’ boards, relating to
the effectiveness of their own systems.
The Code requires companies to review the
effectiveness of their risk management and
internal control systems, at least annually.
The monitoring and review should cover
all material controls, including financial,
operational, and compliance controls.
The Committee performs this review under
delegated authority from the Board.
Through a combination of ongoing and annual
reviews, the Committee is able to review the
effectiveness of the Group’s risk management
and internal control system.
The annual review of effectiveness considered
that:
• there was a process in place to determine the
nature and extent of the principal risks the
Company was willing to take in order to
achieve its long-term strategic objectives
• there was an ongoing process for identifying,
evaluating, and managing the emerging and
principal risks faced by the Group that was
regularly reviewed by the Committee
• processes were in place throughout the year
ended 31 March 2024, and which would
remain in place up to the date of approval
of the Annual Report
• the effectiveness of such processes was
reviewed by the Board
• the information the Board received was
sufficient to enable it to review the
effectiveness of the Group’s risk
management and internal control systems.
Following this year’s review, the Committee,
on behalf of the Board, considers that the
information it received enabled it to review the
effectiveness of the Group’s system of internal
control and risk management in accordance
with the FRC’s Guidance on Risk Management,
Internal Control and Related Financial and
Business Reporting and that there were, and
the system has, no significant failings or
weaknesses.
For more on our approach to risk management
see pages 92 to 99.
Committee performance review
A review of the operation, performance and
effectiveness of the Committee was
undertaken during the year, supported by a
detailed ‘traffic light’ analysis and discussion of
how the Committee was performing against its
terms of reference. The performance review
discussion took place at the Committee’s
September 2023 meeting, and confirmed that
the Committee continued to operate effectively
and efficiently.
135
Experian plc
Annual Report 2024
Governance
Code principle
Audit, Risk and Internal Control
Policy, regardless of the external environment,
has been positively received by our shareholders.
This is evidenced by the consistently strong
support received over recent years for the
Annual report on directors' remuneration.
With this backdrop, no changes were proposed
to the Policy in 2023.
We were pleased with the resounding support
we received from our shareholders at the AGM
on 19 July 2023, securing 94.3% support for the
Policy and 95.3% support for the Annual report
on directors’ remuneration. We are grateful for
the nature of the continued, constructive
two-way engagement that we experience when
we consult with our investors on executive pay.
FY24 Performance
The levels of performance achieved in FY24 add
to our track record of meeting the ambitious
milestones that we set for ourselves. The effort
required to deliver upper single-digit top- and
bottom-line growth is considerable. At the heart
of our continually growing business is a
workforce who successfully meet and often
exceed their strategically aligned goals.
We set stretching targets that would require us
to deliver sustainable upper single-digit growth
in FY24 and the Group achieved this ambition,
with revenue performance growth of 7%,
Benchmark EBIT growth of 7% and Benchmark
EPS growth of 7%, all at constant exchange
rates. These upper single-digit performance
levels were also reflected in our share price,
which increased by 29.5% over the three-year
performance period
3
.
While achieving financial results is undoubtedly
very important, the Committee has always
taken a holistic approach to assessing the
Group’s performance by reviewing a broad
range of metrics.
These broad non-financial measures include,
but are not limited to, employee engagement,
diversity and inclusion, impact on the
environment, and customer satisfaction.
In this way, we ensure that the financial
outputs are a fair and true reflection of the
Group’s overall performance over both the
short and longer term.
We are transparent about our targets and
progress towards them in many areas, such
as diversity and impact on the environment.
We do not, however, include these and other
non-financial metrics in our incentive plans.
That in no way dilutes their importance to the
Group. They are regularly reviewed by the
Board and they remain key considerations
to ensure that the Committee’s review of
performance is truly holistic.
Report on directors’ remuneration
Introduction
I would like to start by thanking Alison
Brittain for the considerable contribution
she made to the Remuneration Committee
during her time as Chair.
I am pleased to report that FY24 was another
strong year for our business. The delivery of
upper single-digit revenue and Benchmark
EBIT growth, despite a difficult economic
environment, is a notable achievement and
demonstrates the resilience of our business
and our ability to execute the agreed
strategy. This level of performance has been
driven by the breadth and diversity of our
portfolio and is a reflection of the quality
of our leadership team together with the
dedication and passion of our people.
Similar to other international organisations,
in recent years there have been many
operational challenges for Experian,
including the COVID-19 pandemic and the
subsequent economic constraints and cost
of living challenges experienced in many of
our key markets. However, despite these
challenges, it is pleasing that we have
continued to deliver sustained top- and
bottom-line growth and, importantly,
continued to deliver growth in all our
markets. We continue to benefit from a
number of strategic decisions, including our
key investments over many years. By
intentionally broadening our capabilities and
unlocking synergies across our business we
have been able to expand our client offering.
The benefits of these investments can be
seen in the new market opportunities which
are driving our continued growth and
reducing our cyclicality.
The strength of the FY24 performance
across all areas of our business puts us
in a great position to deliver on our growth
ambitions for FY25 and beyond.
Experian’s executive
remuneration policy
For a number of years, we have engaged
proactively with our shareholders on
executive remuneration and have benefitted
from open and constructive shareholder
engagement. Based on feedback from our
shareholders, we made a number of
significant changes to our Remuneration
Policy at the 2020 AGM and since then we
have also adopted some governance-led,
best-practice elements that are aligned to
our shareholders’ expectations.
We continue to believe that our Remuneration
Policy (the Policy) is the most appropriate for
our business and have consistently applied
our Policy without making any implementation
changes, including during the unprecedented
challenges presented by the COVID-19
pandemic. This consistent application of the
Quick link
experianplc.com/about-us/
corporate-governance/
board-committees/
Louise Pentland (Chair)
Alison Brittain
Kathleen DeRose
Caroline Donahue
Luiz Fleury
Jonathan Howell
Esther Lee
Mike Rogers
I am pleased to present, on behalf
of the Remuneration Committee (the
Committee), the Report on directors’
remuneration, following a year of
strong performance for the Group.
Louise Pentland
Chair of the Remuneration Committee
Members
Experian plc
Governance
136
Code principle
Remuneration
The strong financial performance in both FY24
and FY23 follows a very good performance in
FY22. We continue to believe that a healthy,
well-run and sustainable business will create
wealth for its shareholders, and over the last
three years Experian has achieved:
• 12.5% average increase per annum in
adjusted Benchmark EPS
• US$5.6bn three-year cumulative Benchmark
operating cash flow
• 17.0% adjusted Return on capital employed
• 29.5% share price growth
• £10.2bn of value creation through market
capitalisation growth and dividends.
This high performance level underpins the
overall outcomes under the PSP, which vested
at 85.4%, and of the CIP, which vested at 100%.
While the financial performance delivered in
the first year of the performance period was
particularly strong, the Committee had
factored this anticipated ‘bounce-back’ into the
stretching targets set for 2021 LTI awards and
therefore no adjustments were considered
necessary in the assessment of the
performance outturns for the 2021 LTI plans.
As with the annual bonus plan, the Committee
reviewed the LTI vesting levels in the context
of both the current economic environment
and the Group’s holistic performance over
the three-year period. It was decided that the
formulaic vesting levels appropriately reflect
the robust business outcomes achieved over
the three-year performance period.
In line with our remuneration principles, a
substantial portion of the CEO’s single figure
value is determined by long-term performance.
For FY24, 53% of the CEO’s single figure value
is due to the vesting levels of the LTI plans,
with a further 15% directly attributable to share
price growth and dividends. All shareholders,
including employee shareholders, will also have
benefitted from this same share price growth
and dividend return over the same three-year
period.
FY24
Fixed
Annual bonus
LTI vesting
LTI – share price
and dividends
12%
20%
53%
15%
Breakdown of FY24 CEO single figure
0%
20%
40%
60%
80%
100%
As a result of the combined revenue growth
and Benchmark EBIT growth performance, the
overall bonus for FY24 will be paid out at 97.5%
of maximum for each of the executive
directors.
Threshold
25%
Target
50%
Actual
97.5%
Maximum
100%
Following a review of the Group’s financial
performance and consideration of all our
business priorities, including those that are
non-financial in nature, the Committee was
satisfied that the level of annual bonus payout
aligned fairly and accurately to the year’s
achievements. Therefore, no discretion
(upwards or downwards) was deemed
necessary. Full details of the annual bonus
outcomes are set out in the Annual report on
directors’ remuneration.
Long-term incentives (LTI):
The Performance
Share Plan (PSP) and Co-investment Plan (CIP)
awards granted in 2021 will vest on 10 June
2024. The 2021 LTI targets were set in May
2021, when considerable uncertainty regarding
the ongoing COVID-19 pandemic remained.
In setting the 2021 LTI targets, the Committee
sought to reflect our growth ambitions of
achieving sustainable annual high single-digit
growth while also taking into consideration the
anticipated initial ‘post-COVID’ positive outlook
for the first year of the performance period.
Therefore, for the 2021 LTI targets, the
performance required to deliver target and
maximum outturns, was increased from our
previous usual range.
Annual performance
• 7% Benchmark EBIT growth*
• 7% revenue performance growth¹*
• 16% share price growth
• Increased headcount to 22,500²
Three-year performance
• 12.5% average increase per annum in
adjusted Benchmark EPS
• 29.5% share price growth³
• US$5.6bn cumulative Benchmark operating
cash flow over three years
*
At constant exchange rates.
1
From ongoing activities.
2
Headcount as at 31 March 2024 22,500 (31 March 2023:
22,000).
3
Three-month average to 31 March 2024 of £33.11
compared to the three-month average to 31 March 2021
of £25.58.
How is our performance reflected in
executive pay?
Salary:
At the beginning of the year, the
Committee approved salary increases of 2.5%
for each of the executive directors. As in
previous years, and aligned with our Policy,
these increases were below the increases
awarded to the general employee population
across the Group.
Following the significant expansion of his role,
to include global responsibility for both
Information Security and Enterprise Risk,
two areas critical to our long-term business
success, the Committee engaged extensively
with shareholders to seek feedback on a
proposed base pay increase for Lloyd Pitchford.
In order to reflect his expanded role, it was
proposed to realign his base salary with the
lower quartile of the external market. Our major
shareholders expressed their strong support
and the Committee approved a base pay of
£750,000 with effect from 1 November 2023.
Lloyd Pitchford voluntarily elected to donate his
net increase to the Experian Cares Fund for the
remainder of FY24 and he will not be eligible for
a base pay increase in FY25. Further
information on the shareholder engagement
undertaken and the feedback received can be
found in the Q&A section of this statement,
on page 139.
Annual bonus:
The Committee always seeks
to set stretching annual bonus performance
targets that reflect our commitment to our
pay-for-performance philosophy. For FY24,
the Committee set targets that reflected our
unchanged ambition of delivering consistently
strong levels of growth, while balancing this
with the need to maintain the attainable and
hence motivational aspect of targets that
reflected the prevailing economic headwinds.
Despite the challenging external environment,
the performance range was set with a true
stretch that required strong top- and
bottom-line growth to achieve target and
maximum results.
In FY24, all regions delivered single-digit
Benchmark EBIT and organic revenue growth.
This robust performance across all regions
resulted in the Group delivering upper
single-digit growth for both annual bonus
performance metrics. FY24 revenue
performance growth was 7%, and this level of
revenue performance, combined with strong
returns on strategic investments, flowed
through to Benchmark EBIT growth of 7% for
FY24.
FY24 at a glance
137
Experian plc
Annual Report 2024
Governance
Code principle
Remuneration
Putting our people first
We have an overarching 'people first'
philosophy and protecting our employees has
always been, and continues to be, a key focus
for us. In recent years, following the COVID-19
pandemic and based on engagement and
feedback from employees, we successfully
introduced a hybrid and remote working
model, which is now established business
practice. The feedback from employees is that
these working practices have enabled them to
thrive and we believe that this has been a key
contributing factor to the strength of the
Group's results. Employee wellbeing –
physical, mental and financial – is critical to
ensuring our people are best supported as we
continue to grow our business. Given the
ongoing macroeconomic challenges present in
many of our major markets in FY24, we
focused on leveraging many of our financial
wellbeing policies with continued focus on the
overall wellbeing offering.
Our Sharesave Plan, which is available to more
than 95% of our global workforce, is a
well-established and valuable financial benefit
that allows employees to invest in, and benefit
from, the growth of our business, with minimal
financial risk for the employee. For the June
2023 Sharesave grant, the Committee
approved a £100 (or local equivalent) increase
to the monthly savings limit. The Committee
was pleased that 54% of eligible participating
employees, the majority of whom are more
junior-level employees who are not eligible to
participate in our long-term incentive plans,
took the opportunity to increase their
Sharesave contributions in 2023. This increase
in savings encouragingly demonstrates our
employees’ strong commitment to, and belief
in, the growth potential of our business.
The Committee is currently considering to
further increase the savings limits for the 2025
Sharesave Plan. This potential increase would
bring our offering in line with the maximum
benefit available to employees under the plan,
many of whom are also set to benefit from the
matching share element of the Thank You
Share Plan in 2024. See further details in the
Q&A section opposite.
This development of our financial wellbeing
offering supplements other enhancements
such as financial planning, mortgage advice,
loan and debt management, helpful wellbeing
guides, tax planning and financial protection as
well as awareness initiatives to highlight our
employee benefits.
Stakeholder experience in FY24
Employees
• Global employment increased by 500 to
22,500
• 3% overall global pay increase budget for
FY24 and FY25
• Normal bonus entitlement
• Increased monthly savings limit for the UK
and International Sharesave plans
• Flexible working practices
• Additional investment in wellbeing support
Investors
• Dividends of USc37.75 and USc18.0 per share
paid in July 2023 and February 2024
respectively
• Proactive shareholder consultation
• No shareholder capital raising
• Total shareholder return (TSR) increase of
17.7% over 12 months
Executive directors
• FY24 pay increase percentages for Brian
Cassin and Craig Boundy lower than average
pay increase percentage for the wider
workforce
• Incremental FY24 in-year pay increase for
Lloyd Pitchford donated to the Experian
Cares Fund
• No adjustments to in-flight Long-Term
Incentive (LTI) awards
• Pension provision alignment with the wider
workforce
Experian Group
• Strategic investments and acquisitions to
support future growth
• Upper single-digit Benchmark EBIT and
revenue growth
As our business results have evidenced, our
approach to supporting our employees with
specific issues or broader developments, such
as more flexible working, results in a more
engaged and motivated workforce. According
to employee feedback, this is enabling us to
attract and retain talent, which is critical to our
growth ambitions.
Pay in the wider workforce
Employee engagement
The Remuneration Committee has always felt
very well informed about the pay and related
policy arrangements for the wider workforce.
The discussions on this topic form part of
many of the meetings throughout the year but
a deeper dive on the subject is part of the
Committee’s standing agenda. We are provided
with a comprehensive paper setting out details
of all-employee pay benefits across the Group.
This enables us to stay alert to any current
high-profile topics and also have a good
understanding of any trends and themes over
a longer timeframe.
The level of knowledge and understanding on
wider workforce pay proactively shapes the
way that we frame any executive pay
considerations. The insights provided to us are
incredibly valuable and the annual updates on
gender pay positioning in our major markets
and the broader diversity, equity and inclusion
(DEI) initiatives ensure that we can monitor the
progress being made. This year we were
provided with more details around employee
wellbeing which has been – and continues to
be – a focus for Experian.
Prior to the introduction of the UK Corporate
Governance Code 2018 (the Code) requirements,
we had existing practices and processes in
place that represent a combination of the
suggested methods to comply with the Code’s
requirements on employee pay and benefits
arrangements. In addition to the work done as
a Committee outlined above, I have continued
the practice of attending our UK and Ireland
Experian People Forum in person. As others
have commented before me, it is the best way
to supplement the Committee’s understanding
of our pay and benefits arrangements across
the wider workforce.
I was very impressed with the level of
engagement from all the attendees. The
two-way discussions were open and very
honest and the employees raised a number
of topics including Sharesave savings limits,
Thank You shares to be awarded later this
year and the flexible ways of working that
operate today. It was apparent that employees
appreciate the nature and spirit of the
engagement. Based upon the feedback, the
year-after-year investments that have been
made in employee mental health and financial
wellbeing are hugely valued. The appreciation
for the enhanced flexibility to work in a hybrid
way, from home or remotely, was voiced
strongly.
Report on directors’ remuneration
continued
Experian plc
Governance
138
Code principle
Remuneration
A:
The Committee believes that, in order to
achieve the best strategic results as a
business, all our senior leaders should be
motivated and rewarded in the same way.
To date, our Remuneration Policy has been
critical in enabling us to attract and retain
the best talent globally, and particularly in
the USA, as the leverage of the combined
incentive plans has been key to our ability to
compete for high-calibre business leaders, at
and below Board-level, in a competitive and
dynamic external market.
While our Policy has supported us in attracting
and retaining key talent to date, we are acutely
aware that the landscape for pay in the USA
has changed considerably in recent years,
and particularly among companies in sectors
similar to Experian’s. For example, in the last
18 months, almost half of the companies
in our sector peer group have awarded
exceptional one-off share-based awards to
their CEOs. The scale and prevalence of these
one-off awards has changed the competitive
landscape.
We will continue to monitor the impact of any
developments in the UK and US external
landscape with interest. As we have done
previously, we will continue to review the
Executive directors’ and senior leaders’ pay
against the UK and US markets to ensure that
our arrangements do not become misaligned
or uncompetitive.
Q: There is a lot of discussion in the
market regarding the competitiveness of
pay for UK versus US executives. Given
the significant proportion of Experian’s
business that is US-based does the
Group anticipate (i) any challenges in
retaining US talent, or (ii) making any
changes to the current executive pay
arrangements?
Q: Can you provide some insight on any
factors that shaped the Committee’s
thinking in approving the mid-year base
salary increase for Lloyd Pitchford?
Q: Experian has a strong track record of
taking steps to help the wider workforce
as they face macroeconomic
challenges. What steps, if any, does
Experian anticipate taking to support
employees in FY25?
A:
Our focus, even before the onset of the
COVID-19 pandemic, has been – and continues
to be – on protecting our employees, our
shareholders, and the societies in which
we operate.
As shareholders will recall, in 2021 we made
a special one-off recognition award to all
our employees below senior management,
approximately 16,000 employees, as a way
of thanking them for helping Experian thrive
during the pandemic. The intention behind the
award was to provide, not simply a one-off
award, but a lasting 'thank you' for the global
wider workforce. Employees were given the
choice to take the recognition award as cash
or in shares. Any employee who chose to take
the initial award as shares was granted 19
Experian shares in August 2021, with a further
matching share award on a 2:1 basis in August
2024 for any employee who retained their
initial share award for three years.
It was pleasing to see that the vast majority
(around 90%) of employees initially elected to
take the award as shares, demonstrating our
employees’ belief in the growth potential of our
business. Encouragingly, employees have
continued to demonstrate this confidence in
our business trajectory, with around 9,000
employees (now also employee shareholders
as a result of the award) retaining their initial
share award at 31 March 2024 – more than
two and a half years after the shares were
granted. The Committee is pleased that such a
high proportion of the global wider workforce
will benefit from the matching share award of
38 additional shares, valued at £1,313
1
per
employee, in August 2024. This means that the
total value of the 'thank you' is £1,969
1
for each
of those eligible employees.
1
Share price as at 31 March 2024.
A:
Lloyd Pitchford was appointed Chief
Financial Officer in October 2014. In the nine
years following his appointment, and in
keeping with our Policy, he received base pay
increases either in line with, or more typically
below, those provided to the wider workforce.
Following the significant expansion of Lloyd’s
role to include global responsibility for both
Information Security and Enterprise Risk,
two areas critical to our long-term business
success, and consistent with the approach
taken for all our employees when taking on
significantly expanded responsibilities, the
Committee considered it appropriate to
review Lloyd’s remuneration package.
Experian’s total remuneration framework
has a significant emphasis on ‘at risk variable
pay’, and so the Committee – having
considered the significant expansion of his
role and the external market landscape –
believed it appropriate to reflect the
increased scope of Lloyd’s role in his base
pay. The Committee aims to make changes in
a responsible and proportionate manner and
so proposed positioning Lloyd’s base pay at
the lower end of our FTSE 30 comparator set.
In keeping with the spirit of our open and
transparent engagement with shareholders,
the Committee Chair wrote to our top 25
investors and the proxy advisory agencies
in September 2023, outlining the proposed
change to Lloyd Pitchford’s pay and with
an open invitation to provide feedback or
have a follow-up discussion. Following the
overwhelmingly positive feedback received,
including during any requested meetings, the
Committee approved an increase in Lloyd
Pitchford’s base pay to £750,000, effective
1 November 2023.
For the avoidance of doubt, Lloyd Pitchford is
not eligible for any further base pay
increases as part of the normal 2024 annual
pay review and he will next be eligible for an
annual pay review in June 2025. As
mentioned previously, Lloyd Pitchford elected
to donate the approved net increase in his
base pay to the Experian Cares Fund for the
remainder of FY24.
Q&A
139
Experian plc
Annual Report 2024
Governance
Code principle
Remuneration
Looking forward
A year of strong financial performance is the
ideal springboard for the next financial year
and so we look forward with positivity and
renewed ambition to meeting and exceeding
the expectations of a wide variety of
stakeholders. The external environment
will continue to bring challenges for us to
overcome but I believe that we are well
positioned to continue to deliver both top- and
bottom-line growth in FY25. Our plans are
rightly ambitious but they are underpinned
by a coherent strategy, astute investments
and a proven ability to execute our business
plans; and it is that combination that fuels my
confidence in the short- and longer-term
future of Experian.
I hope that I have provided some additional
background and deeper context on Experian’s
FY24 performance that enables shareholders
to support our Annual report on directors’
remuneration at the 2024 AGM.
We decided to invest in making our work
locations more attractive places to work and
collaborate with colleagues whose preference
is to work from an office environment. This
investment into a flexible working environment
is coupled with supporting policies being
incorporated into our broader employee
reward offering and I was pleased to hear
that we are well positioned to continue to
attract and retain key talent.
People and culture
Our culture is encompassed in the Experian
Way, which is our unique and consistent way
of working globally and informs how our
people act and behave. A working environment
is heavily influenced by culture and ours is
designed to enable employees to thrive and
be successful. Maintaining a culture that is
inclusive, agile, innovative and high-
performance at its core is a key enabler for
Experian and has contributed to the track
record of strong financial performance.
We are encouraged to see that the new
working world of hybrid and remote working
has not detracted from the strength or
connectivity of our culture. Experian is a
very networked organisation that generates
a collegiate approach to work that all our
employees recognise and value.
It is understandably easy to get immersed
in a company’s culture but it is also key to
maintain an external and, importantly,
independent perspective, so we started to
participate in the Great Place to Work (GPTW)
global survey three years ago. Thus far, the
results from the GPTW survey suggest that
our employee-focused initiatives have been
well received and it was very pleasing to
see another high employee engagement
score this year of 83%.
The Committee considers a range of
quantitative culture-related data to be able
to inform our views. The quantitative data
may also provide useful information for
our shareholders and other stakeholders.
Further insights on these important metrics
can be found in the Sustainable Business
Performance Data on pages 74-76. Details on
DEI can be found on page 66.
Report on directors’ remuneration
continued
Experian plc
Governance
140
Code principle
Remuneration
Performance snapshot
Performance measure
Incentive plan
Outturn
Achievement
(% of max)
Benchmark EBIT growth*
Annual bonus
7%
100%
Revenue performance growth*
Annual bonus
7%
88%
Three-year adjusted Annual Benchmark EPS growth*
CIP/PSP
12.5%
100%
Three-year cumulative Benchmark operating cash flow*
CIP
US$5.6bn
100%
Three-year adjusted Return on capital employed
PSP
17.0%
100%
Three-year TSR outperformance of FTSE 100 Index
PSP
5.5%
41.7%
*
At constant exchange rates.
**
Positive employee engagement as measured in the 2023 Great Place to Work survey.
As a result of the performance shown above:
7
%
Benchmark EBIT growth*
Executive director remuneration arrangements for FY25
The CIP is designed
to incentivise cash
discipline while the PSP
is designed to incentivise
shareholder returns.
Revenue growth is a key
metric for us and will
provide a quality of
earnings balance to the
important profit focus of
Benchmark EBIT.
However, growth is the
single most important
aspect of our business
strategy and therefore
adjusted Benchmark EPS
runs across both plans.
Our executive pay framework
Annual
bonus
CIP
PSP
Share ownership
As at 31 March 2024 and calculated as outlined on page 152.
Brian Cassin
Actual holding 28 x salary
25
3
Lloyd Pitchford
Actual holding 22 x salary
20
2
Craig Boundy
Actual holding 3 x salary
1
2
Annual report on directors’ remuneration
7
%
Revenue performance*
USc
145.5
Benchmark EPS
17.0
%
Adjusted Return on
capital employed
83
%
Employee engagement**
Executive director single figure of pay
Brian Cassin
£9.94m
Lloyd Pitchford
£6.27m
Fixed elements of pay:
Base salary
Pension and benefits
Variable elements of pay:
Annual bonus
Share-based incentives: value at grant
Share-based incentives: value attributable to share
price growth and dividend equivalent payments
’000
Craig Boundy
US$3.05m
0
2,000
4,000
6,000
10,000
8,000
Incentive awards timelines
Grant
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Annual bonus
CIP
PSP
Performance period
Holding period
Guideline
Additional holding
•
Salary increases
of 2.4% awarded to Brian Cassin and Craig
Boundy effective 1 June 2024. Lloyd Pitchford’s salary will remain
unchanged in FY25.
•
Pension
contributions for executive directors are aligned with the
rate provided to the majority of the workforce in the UK and the USA.
•
Annual bonus
based on Benchmark EBIT (80%) and revenue
performance (20%). The opportunity is 200% of base salary. Half of
any payout must be deferred into the CIP for three years.
•
CIP awards
will be based on cumulative Benchmark operating
cash flow (50%) and adjusted Benchmark EPS (50%). The maximum
award remains a 2:1 match.
•
PSP awards
will be based on TSR (25%), adjusted ROCE (25%) and
adjusted Benchmark EPS (50%). The opportunity of 200% of base
salary is unchanged.
•
Two-year post-vest holding period
applies to both CIP and PSP
awards.
•
Malus and clawback
provisions apply to all incentive awards.
•
Existing in-employment shareholding guidelines
will apply for
two years post-employment.
80%
Benchmark
EBIT
20%
Revenue
50%
Adjusted
Benchmark
EPS
50%
Cumulative
Benchmark
operating
cash flow
50%
Adjusted
Benchmark
EPS
25%
ROCE
25%
TSR
Our executive remuneration at a glance
141
Experian plc
Annual Report 2024
Governance
Code principle
Remuneration
This Annual report on directors’ remuneration will be put to shareholders for an advisory vote at the AGM on 17 July 2024. The Remuneration
Committee has prepared it on behalf of the Board, in line with the UK Companies Act 2006, Schedule 8 to the UK Large and Medium-sized Companies
and Groups (Accounts and Reports) Regulations 2008 (as amended) (the Regulations) and the Listing Rules of the UK Financial Conduct Authority.
All of the sections that have been audited by the Company’s external auditor, KPMG, have been noted.
What did we pay our executive directors in the year? (audited)
The table below shows the single total figure of remuneration for the executive directors, for the years ended 31 March 2023 and 31 March 2024.
Further explanatory information is set out below the table.
Brian Cassin
Lloyd Pitchford
Craig Boundy
5
2024
£’000
2023
£’000
2024
£’000
2023
£’000
2024
US$’000
2023
£’000
Fixed pay
Gross salary
1
1,041
1,016
687
628
1,025
695
Total fixed pay
1,041
1,016
687
628
1,025
695
Benefits
24
27
16
21
30
55
Pension
104
178
69
110
–
–
Total fixed remuneration
1,169
1,221
772
759
1,055
750
Performance-related pay
Annual bonus
2,030
1,199
1,339
740
1,991
820
Share-based incentives
Value delivered through performance
2
5,252
4,557
3,243
2,812
n/a
n/a
Value delivered through share price growth and dividends
3
1,488
492
918
303
n/a
n/a
Total variable remuneration
8,770
6,248
5,500
3,855
1,991
820
Total single figure of remuneration
4
9,939
7,469
6,272
4,614
3,046
1,570
1
For Craig Boundy, the 2023 salary reflects the timing of US payroll payments and time served during the financial year as an executive director.
2
Value delivered through performance is calculated as the number of shares vesting under the CIP and PSP multiplied by the share price on the date of grant. None of the executive directors exercised
share options in the year ended 31 March 2024. For Craig Boundy’s 2023 disclosure, this reflects time served during the financial year as an executive director.
3
For the year ended 31 March 2024, the value delivered through share price growth and dividends is calculated as (i) the difference between the average share price in the last three months of the
financial year and the share price on the date of grant multiplied by the number of vested performance shares, plus (ii) dividend equivalent payments for the number of vested performance shares.
4
For the year ended 31 March 2024, the total single figure of remuneration for Brian Cassin and Lloyd Pitchford in US$, applying the average exchange rate over the year of £1:US$1.2568.
(2023: £1:US$1.2046), is US$12.5m (2023: US$9m) and US$7.9m (2023: US$5.6m) respectively.
5
The share-based incentives for Craig Boundy were granted before his appointment as an Executive Director and therefore the award values are not included.
How has the single figure been calculated? (audited)
Salary
Salary increases typically take effect from 1 June. The Committee approved increases for executive directors of 2.5% with effect from this date in
2023:
1 June 2023
‘000
1 June 2022
‘000
Percentage
increase
Brian Cassin
£1,045
£1,020
2.5%
Lloyd Pitchford
£646
£630
2.5%
Craig Boundy
US$1,025
US$1,000
2.5%
In awarding these increases, we considered a number of factors, including the approach to employee remuneration throughout the Group, the
prevailing economic conditions and positioning against the market as well as individual performance. The salary review budget for FY24 was 3% for
our employees in both the USA and the UK.
In September 2023, following a significant expansion to Lloyd Pitchford’s role to include global responsibility for both Information Security and
Enterprise Risk, the Committee considered it was appropriate to increase Lloyd’s salary to reflect the considerably expanded scope of the role and
align his base salary with the lower quartile of the market. Following extensive consultation with shareholders in September and October 2023, and
reflecting the support expressed by shareholders during this engagement, Lloyd Pitchford received a subsequent salary increase of 16%, effective
1 November 2023, increasing his annual salary to £750,000.
Annual report on directors’ remuneration
continued
Experian plc
Governance
142
Code principle
Remuneration
Benefits and pension
Taxable benefits include life insurance, private healthcare, a company car or car allowance and, where relevant, the value of any gain realised on
exercising Sharesave options. While not taxable, Lloyd Pitchford was also provided with an executive medical assessment during the year ended
31 March 2024 and, for transparency, the value of that assessment has also been included in the benefit calculations.
Brian Cassin and Lloyd Pitchford are eligible to participate in a defined contribution pension plan but elected not to do so during the year ended
31 March 2024. In 2024, Brian Cassin received a cash supplement of £104,083 (2023: £177,677), and Lloyd Pitchford received a cash supplement
of £68,667 (2023: £109,750), in lieu of their pension contributions.
Craig Boundy does not participate in the Experian defined contribution plan (401k) and as such did not receive any company contributions in 2024
or 2023.
No executive director has a prospective right to a defined benefit pension.
Annual bonus
Overview
All Experian employees participate in a variable pay plan. We have one annual bonus plan in operation across Experian and the majority (c.16,500) of
our workforce participate in this plan. The remainder of employees participate in a sales commission plan. How the annual bonus plan works varies
slightly depending on region and grade. For the vast majority of employees, annual bonus awards are based on the performance of their particular
business or region.
Executive directors are required to defer half of any annual bonus earned for three years through the CIP, although they may choose to defer more.
This year, all three executive directors in office at 31 March 2024 chose to voluntarily defer their full bonus payments into the CIP.
Our executive annual bonus plan is based upon two performance metrics, which are Benchmark EBIT growth (80% weighting) and revenue
performance (20% weighting). Benchmark EBIT is an important earnings metric and focuses on items directly within management’s control.
To balance the profit focus of Benchmark EBIT, revenue performance provides an important quality of earnings element to the annual performance.
How do we set the bonus targets?
Performance-related pay is a key component of our reward structure for all employees and, as such, setting stretching targets is a critical focus area
for the Committee. Every year we undertake a rigorous exercise to ensure our targets are sufficiently stretching, taking into consideration the external
marketplace and our own performance aspirations. The Committee considers targets at two separate Remuneration Committee meetings during the
year:
The Committee is able to take a holistic approach to setting targets, as all our non-executive directors sit on the Remuneration Committee, as well as
on all of our other principal Board Committees. This ensures Committee members are fully apprised of the wider business context and the Group’s
business prospects over the coming years, particularly as the Board meeting to discuss the budget and business plan usually takes place prior to the
Remuneration Committee meeting.
Annual bonus outcome
Revenue performance is calculated as the Group total revenue growth after the removal of intra-Group sales, and Benchmark EBIT is based on
ongoing activities. Performance is measured on a constant currency basis to strip out the effects of exchange rate fluctuations, which are outside of
management’s control. The Committee also excludes the impact of any material acquisitions or disposals made in the year, to ensure both metrics are
measured consistently, which is in line with our approach to long-term incentive plan measures.
The FY24 annual bonus performance range was set to be stretching, while reflecting the challenging economic environment, particularly in our major
markets. The annual bonus performance targets, for both metrics, required upper single-digit growth to achieve maximum payout. Building on the
strong performance of recent years, these targets were designed to signal our continued growth ambitions.
Step 1
In January, the Committee considers the
wider market context, and is presented with
an early indication of how performance is
tracking in the current year.
The Committee’s independent remuneration
advisers are invited to provide the
Committee with a wider assessment of the
pay and governance environments in the
relevant locations for our business.
Step 2
In March, budgets for the forthcoming year
are discussed and agreed by the Board.
At its March meeting, the Committee has
a first look at possible targets for the
forthcoming year, taking into account a
number of factors including:
• the strategic plan
• brokers’ earnings estimates
• wider economic expectations
• our key competitors’ earnings estimates,
including a number of different peer
groups.
Step 3
By the time the Committee meets again
in May, budgets for the forthcoming year
have been agreed and the performance
outcomes for the current year have been
reviewed by our auditor.
The Committee takes these into account
during its determination of prior year
outcomes and its final review of the targets
for the current year, before signing them off.
143
Experian plc
Annual Report 2024
Governance
Code principle
Remuneration
The table below shows our growth in Benchmark EBIT and revenue performance for bonus purposes relative to the FY24 agreed targets.
Metric
Weighting
% growth
required for
threshold payout
% growth
required for
target payout
% growth
required for
maximum payout
FY24 actual
growth
Annual bonus
achievement
Benchmark EBIT growth
80%
3%
5%
7%
7.2%
200%
Revenue performance growth
20%
3%
5%
7%
6.5%
176%
Total annual bonus achievement as % of target
195%
Before approving the annual bonus outcomes, the Committee discussed whether or not the proposed payout was appropriate in the context of both
the current external environment and the Group’s wider business performance during the year. The Committee also considers other factors reviewed
by the Board, such as our Net Promoter Score, employee experience, employee engagement results, direct employee feedback to the Committee
Chair at the People Forum, and the broader stakeholder experience over the financial year.
As set out earlier in the Report, the Group’s performance was strong particularly in the context of the challenging economic backdrop. As such, the
Committee agreed that the Company’s financial performance was aligned with its holistic assessment of performance and was also satisfied that it
did not need to exercise any discretion, and that the level of bonus payout was appropriate.
As such, the resulting annual bonus outcomes for each executive director (up to a maximum of 200% of salary), for the year ended 31 March 2024, are
set out in the table below.
FY24
Bonus payout
‘000
Bonus payout
% salary
% bonus
deferred
under the CIP
Brian Cassin
£2,030
195%
100%
Lloyd Pitchford
1
£1,339
195%
100%
Craig Boundy
US$1,991
195%
100%
1
Bonus amount for Lloyd Pitchford reflects the timing of his salary increase during the financial year.
Each of the eligible executive directors has elected to defer their full bonus into Experian shares under the CIP for a three-year period. Deferred bonus
shares are not subject to any further conditions but may be matched, subject to the conditions set out in the CIP awards section below.
Share-based incentives
The share-based incentive amount included in the single total figure of remuneration is the combined value of the CIP and PSP awards vesting in
respect of the relevant financial year. For FY24, these relate to the awards granted on 8 June 2021 and for FY23 they relate to the awards granted
on 11 June 2020. Vesting in 2024 for both the CIP and PSP awards is determined based on performance over the three years ended 31 March 2024,
as well as continued service.
The 2021 LTI targets were set to reflect our growth ambitions of achieving sustainable annual high single-digit growth and the Committee has not
exercised any discretion, nor made any adjustments, in determining the vesting outcomes for the 2021 LTI awards. Our strong financial performance
in each year of the performance period resulted in the formulaic vesting results outlined in the table below. The Committee reviewed the financial
performance, but also considered the experience of our investors, employees and other stakeholders over the three-year performance period.
Through this broadest lens, the Committee judged the formulaic results to be fair and balanced and, as such, did not make any adjustments to the
vesting results. The tables below show the performance achieved on the targets for the CIP and PSP awards granted in June 2021:
CIP awards
Performance measure
Weighting
Vesting
1
Actual
Percentage
vesting
2
No match
1:2 match
1:1 match
2:1 match
Benchmark Earnings per share
(average annual growth)
50%
Below 5%
5%
7%
10%
12.5%
50%
Cumulative Benchmark operating cash flow
3
50% Below US$4.0bn
US$4.0bn
US$4.2bn
US$4.4bn
US$5.6bn
50%
Total
100%
PSP awards
Performance measure
Weighting
Vesting
1
Actual
Percentage
vesting
0%
25%
50%
100%
Benchmark Earnings per share
(average annual growth)
50%
Below 5%
5%
7%
10%
12.5%
50%
Adjusted Return on capital employed
25%
Below 14.5%
14.5%
15.4%
16.0%
17.0%
25%
TSR of Experian vs TSR of FTSE 100 Index
25%
Below Index
Equal to Index
8.3% above Index
25% above Index
5.5% above Index
10.4%
Total
85.4%
1
Straight-line vesting between the points shown.
2
The maximum opportunity, which requires 100% vesting, results in a two-for-one match on the bonus deferred.
3
In line with the approach taken in previous years, the cumulative Benchmark operating cash flow targets shown above have been adjusted compared to those originally set to take into account the impact
of acquisitions and disposals made over the performance period. The actual cumulative Benchmark operating cash flow over the performance period, of US$5.6bn, is determined on a constant currency
basis. This is in line with our approach for all performance metrics, to ensure that awards are measured on a consistent basis.
No discretion was applied in determining the share-based payments that vested in either FY24 or FY23.
Annual report on directors’ remuneration
continued
Experian plc
Governance
144
Code principle
Remuneration
The June 2021 awards had not vested at the date this report was finalised, and so the reported value of the awards has been based on the average
share price in the last three months of the financial year, which was £33.11. The value of the awards included in the single total figure of remuneration
is as follows:
CIP
PSP
Value of
shares
vesting
‘000
Value of
dividend
equivalent
payments
‘000
Total value
of shares
vesting and
dividend
payments
‘000
Shares
awarded
Shares
vesting
Shares
awarded
Shares
vesting
Brian Cassin
132,368
132,368
74,830
63,923
£6,500
£241
£6,741
Lloyd Pitchford
81,666
81,666
46,252
39,510
£4,012
£149
£4,161
Craig Boundy
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Shares awarded in 2021 to Craig Boundy were made prior to his appointment as an executive director and are therefore excluded from the above table.
Dividend equivalents of 157 US cents (122.72 pence) per share will be paid on vested shares. These represent the value of the dividends that would
have been paid to the owner of one share between the date of grant and the date of vesting.
The chart below shows the make-up of the CEO’s FY24 single figure value, including £6.7m relating to the LTI.
Of the £6.7m LTI value disclosed for the CEO, 78% is the value at grant, 4% is the value of dividend equivalent payments and 18% is a result of share
price growth between the grant date and the average price over the last three months of the financial year – which grew by 23.9%.
Update to 2023 disclosure
We originally calculated the value of the share awards realised by our executive directors in 2023 using the average share price from 1 January 2023
to 31 March 2023, in line with the prescribed single figure methodology. This has now been revised to reflect the actual share price and exchange rate
on vesting, as follows:
Three-month
average share
price to
31 March 2023
Estimated value
of long-term
incentive awards
‘000
Share price
on vesting
Actual value
of long-term
incentive awards
‘000
Brian Cassin
£4,952
£5,049
Lloyd Pitchford
£28.54
£3,055
£29.13
£3,115
Kerry Williams1
US$5,007
US$5,291
1
The value for Kerry Williams has also been revised in accordance with reporting requirements, even though he was no longer an executive director at the time that the awards vested.
£80
£90
£100
£110
£120
£130
£140
£150
31 March
2021
31 March
2022
31 March
2023
31 Marc
h
2024
Experian
FTSE 100 Inde
x
Experian 3-year TSR relative to FTSE 100 Index
FY24
Fixed
Annual bonus
LTI vesting
LTI – share price
and dividends
12%
20%
53%
15%
0%
20%
40%
60%
80%
10
0%
Breakdown of FY24 CEO single figure
145
Experian plc
Annual Report 2024
Governance
Code principle
Remuneration
What share-based incentive awards did we make in the year? (audited)
On 6 June 2023, awards were granted to the executive directors under the CIP and PSP. The face value of awards made to Brian Cassin and Lloyd
Pitchford is shown in pounds sterling; the face value of awards made to Craig Boundy is shown in US dollars. The number of shares awarded to Craig
Boundy was calculated using the average exchange rate for the three days prior to grant of £1:US$1.25. All awards have been calculated using a
three-day average share price.
In line with the CIP rules, invested shares for Brian Cassin and Lloyd Pitchford were purchased with their bonuses net of tax. In line with the rules
of The Experian North America Co-investment Plan, invested shares for Craig Boundy were calculated with reference to his gross bonus. Matching
awards are based on the gross value of the bonus deferred.
Details of these awards are set out in the following table:
Type of interest in shares
Basis of award
Face value
‘000
Number
of shares
Vesting at threshold
performance
Vesting date
Brian Cassin
CIP invested shares
Deferred shares
100% of net bonus
£635
21,574
n/a
6 June 2026
CIP matching shares
1
Conditional shares
200% of value of gross bonus deferral
£2,397
81,414
25%
6 June 2026
PSP
2
Conditional shares
200% of salary
£2,090
72,351
25%
6 June 2026
Lloyd Pitchford
CIP invested shares
Deferred shares
100% of net bonus
£392
13,327
n/a
6 June 2026
CIP matching shares
1
Conditional shares
200% of value of gross bonus deferral
£1,481
50,291
25%
6 June 2026
PSP
2
Conditional shares
200% of salary
£1,292
44,726
25%
6 June 2026
Craig Boundy
CIP invested shares
Deferred shares
100% of gross bonus
US$1,180
32,107
n/a
6 June 2026
CIP matching shares
1
Conditional shares
200% of value of gross bonus deferral
US$2,360
64,214
25%
6 June 2026
PSP
2
Conditional shares
200% of salary
US$2,050
56,860
25%
6 June 2026
1
The number of shares awarded to executive directors under the CIP was based on the share price at which invested shares were purchased in the market and the face value shown above is based on this.
This price was £29.45.
2
The number of shares awarded to executive directors under the PSP was based on the average share price for the three days prior to grant, which was £28.89, and the face value shown above is based
on this.
PSP awards and CIP matching shares granted in June 2023 will vest subject to the achievement of the following performance conditions:
Performance measure
Weighting
Vesting
1
0%
25%
50%
100%
CIP matching shares
Benchmark Earnings per share (average annual growth)2
50%
Below 5%
5%
7%
9%
Cumulative Benchmark operating cash flow
50%
Below US$5.5bn
US$5.5bn
US$5.75bn
US$6.0bn
PSP awards
Benchmark Earnings per share (average annual growth)2
50%
Below 5%
5%
7%
9%
TSR of Experian vs TSR of FTSE 100 Index
25%
Below Index
Equal to Index
8.3% above Index
25% above Index
Adjusted Return on capital employed (average over three years)
25%
Below 14.5%
14.5%
15.4%
16.0%
1
Straight-line vesting between the points shown.
2
Measured on an ongoing activities and constant currency basis.
The Committee retains the right to vary the level of vesting if it believes the level of vesting determined by measuring performance is inconsistent with
the Group’s underlying financial and operational performance over the performance period. These awards will also only vest if the Committee is
satisfied the vesting is not based on materially misstated financial results.
Annual report on directors’ remuneration
continued
Experian plc
Governance
146
Code principle
Remuneration
How is the CEO’s pay linked to Experian’s performance?
The chart below shows Experian’s annual TSR performance compared to the FTSE 100 Index over the last ten years. The FTSE 100 Index is the most
appropriate index as it is widely used and understood, and Experian is a constituent of the index.
£0
£50
£100
£150
£200
£250
£300
£350
£400
31 March
2014
31 March
2015
31 March
2016
31 March
2017
31 March
2018
31 March
2019
31 March
2020
31 March
2021
31 March
2022
31 March
2024
31 March
2023
Experian
FTSE 100 Index
Value of £100 invested in Experian and the FTSE 100 on 31 March 2014
The table below sets out our CEO’s pay for the last ten financial years:
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
CEO total single figure of remuneration
(‘000)
1
Don Robert
US$620
—
—
—
—
—
—
—
—
—
Brian Cassin
£1,976
£3,678
£3,647
£6,387
£11,882
£10,836
£7,821
£8,579
£7,469
£ 9,939
Annual bonus paid against maximum
opportunity (%)
Don Robert
—
—
—
—
—
—
—
—
—
—
Brian Cassin
38%
100%
89%
58%
85%
80%
91%
100%
59%
98%
LTIP vesting against maximum
opportunity (%)
2
Don Robert
69%
—
—
—
—
—
—
—
—
—
Brian Cassin
40%
33%
32%
95%
90%
90%
84%
100%
88%
93%
1
Prior year numbers have been updated to reflect actual long-term incentive plan outcomes.
2
The maximum LTIP opportunity varies as the CIP opportunity is based upon the actual bonus earned.
147
Experian plc
Annual Report 2024
Governance
Code principle
Remuneration
CEO pay ratio
Experian follows good corporate governance and transparency in reporting remuneration for our executive directors and employees. We have
presented below the CEO pay ratio for the year ended 31 March 2024, in line with the UK regulatory requirements. The pay ratios have been calculated
using Option A of the three methodologies provided under the Regulations, which we believe is the most statistically accurate approach.
Year
Method
25th percentile
pay ratio
Median
pay ratio
75th percentile
pay ratio
Option A
267:1
178:1
112:1
FY20
Total pay and benefits
£38,630
£57,803
£91,736
Salary
£33,362
£47,869
£77,000
Option A
185:1
124:1
81:1
FY21
Total pay and benefits
£40,969
£61,115
£93,574
Salary
£32,569
£49,983
£75,000
Option A
226:1
155:1
101:1
FY22
Total pay and benefits
£43,957
£64,062
£98,754
Salary
£35,467
£50,333
£66,458
Option A
142:1
97:1
65:1
FY23
Total pay and benefits
£51,978
£75,887
£112,982
Salary
£46,778
£62,667
£85,846
Option A
198:1
138:1
91:1
FY24
Total pay and benefits
£50,091
£72,026
£109,161
Salary
£36,492
£54,250
£74,104
The CEO value used is the actual earnings for the year of £9.939m, as outlined on page 142. For UK employees, total pay and benefits are based on
actual earnings for the year to 31 March 2024. Annual incentive payments for employees have been calculated using the Experian Group financial
performance outcome for FY24, as disclosed on page 144, rather than any regional or market business performance results, to ensure a like-for-like
comparison across remuneration structures. Selected employee grades below senior leader level are also eligible for annual awards of restricted
stock, rather than the performance share awards provided to senior leaders. Where applicable, the LTI value for employees has been calculated by
applying the average share price for the three months prior to 31 March 2024 to the number of restricted stock awards granted to the employee in
June 2021. We adopted this approach to provide a like-for-like comparison and ensure the share price growth over the previous three years is
reflected equally in both the CEO and employee LTI values. Employees on inbound and outbound international assignments to and from the UK have
been excluded from the analysis as their remuneration structures understandably deviate from the standard approach for UK employees. In line with
the guidance, only individuals employed for the full year have been included in the analysis.
Observations on change in CEO pay ratio
As important context for the CEO pay ratio table above, the Committee believes it is appropriate that a significant proportion of CEO total remuneration
is variable and based entirely on Group performance. In line with our remuneration philosophy, the proportion of total compensation that is
performance related increases with employee seniority. We operate one annual bonus plan across Experian and the majority (c.16,500) of our
employees participate in this plan, providing them with the opportunity to benefit from the financial performance that their efforts contribute to.
More of the CEO’s total target remuneration (73%) is ‘at risk’ compared to the average UK-based employee. As shown in the table above, the CEO pay
ratio is likely to vary over time, potentially significantly, based upon the short- and long-term incentive outcomes. While the outcome of the 'at risk'
component of the remuneration package is likely to have the biggest impact on the CEO pay ratio, there have inevitably been other influencing factors
such as the COVID-19 pandemic.
In FY21, the CEO voluntarily waived 25% of his net salary for six months, the value of which was invested in the Experian Cares Fund resulting in a
salary significantly lower than the level which would typically be considered normal. In FY23, the CEO’s single figure remuneration decreased by 13%
compared to FY22 as a result of the lower LTI value. This was in contrast to the total pay and benefits provided to UK employees which increased. In
FY24, the stronger financial performance compared to the still very resilient performance of FY22, resulted in an increase in the CEO’s single figure,
primarily driven by the value of the LTI.
It is also worth noting that the Committee has not exercised any discretion or made any adjustments in determining the outcomes of short- or
long-term incentives during the five-year period covered above.
Annual report on directors’ remuneration
continued
Experian plc
Governance
148
Code principle
Remuneration
Observations on FY24 pay ratio
The median pay ratio for FY24 of 138:1 reflects not only the performance achieved in FY24, but also the resilient performance achieved in the
preceding two financial years, which are reflected in the CEO’s LTI vesting values. As LTI values can be highly variable, in part due to fluctuations in
share price, a supplemental pay ratio has been provided below, where the value of LTIs has been excluded. The CEO single figure value excluding
LTI compensation was £3.2m for FY24.
Year
Method
25th percentile
pay ratio
Median
pay ratio
75th percentile
pay ratio
FY20
Option A excluding long-term incentives
71:1
47:1
30:1
FY21
Option A excluding long-term incentives
69:1
47:1
30:1
FY22
Option A excluding long-term incentives
73:1
50:1
32:1
FY23
Option A excluding long-term incentives
47:1
32:1
21:1
FY24
Option A excluding long-term incentives
64:1
44:1
29:1
Some important additional context regarding our FY24 CEO pay ratio includes the following:
• We have a rigorous approach to salary management that is underpinned by regular market benchmarking to ensure we offer competitive rates of
pay across the business. We undertake regular reviews to maintain appropriate positioning with external market-linked salary ranges.
• Experian has been a Living Wage employer in the UK since 2015, and the median salary for our UK employees (as shown in the table on the previous
page) is more than 50% above the UK average.
• The Committee always has the context of the all-employee pay review budget when determining salary increases for the CEO, and ensures any
percentage increase for the CEO does not exceed that provided to employees. In FY23, the average increase for the UK employee base pay was 4%
and a 2.5% increase was provided to the CEO. For FY24, the UK salary review budget is 3%, while the CEO’s salary will increase by 2.4%.
• An ‘individual performance modifier’ is also applied in calculating the annual bonus payments for employees, to ensure the outstanding contribution
of high-performing individuals is reflected through higher bonus payments. Individual performance modifiers do not apply to senior management,
including the CEO. As such, to ensure a like-for-like comparison with the CEO single figure, the employee calculations, as outlined on the previous
page, do not reflect the impact of individual performance modifiers, which would have increased the annual bonus payments for employees and
reduced the CEO pay ratio accordingly.
• We have not included the value of our Sharesave Plan in the all-employee values on the previous page. We firmly believe in the value of employee
share ownership and encourage employees to participate in our Sharesave offering, which is a tax-efficient plan in the UK and allows employees to
share in Experian’s growth and success. Around 75% of UK employees participate in Sharesave and the average profit received by UK employees at
maturity in FY24 was about £2,000, but this value has not been included in the all-employee values on page 150.
149
Experian plc
Annual Report 2024
Governance
Code principle
Remuneration
How has our Board of directors' pay changed compared to the wider workforce?
The table below sets out the percentage change in the Board of directors' salaries/fees, benefits and annual bonus for the years between FY21 and
FY24, and how this compares to the average percentage change for our UK employees. While the Regulations require the employee comparison
against employees of Experian plc, the proportion of our workforce employed by Experian plc is comparatively very small. We have therefore elected,
as in previous years, to provide the comparison with our UK employees, which we believe provides an appropriately representative analysis. We have
selected this group of employees because Experian operates in 32 countries and, as such, has widely varying approaches to pay across different
regions. This approach also avoids the complexities involved in collating and comparing remuneration data across different regional populations,
including the impact of foreign exchange rate movements. The figures for UK employees are consistent with the information used to prepare the CEO
pay ratio analysis, but reflect average salaries and average employee numbers each year, rather than percentile data. For the CEO, the annual bonus
is based on Group performance.
Year-on-year change in pay for directors compared to the average UK employee
Average
employee
Executive directors
Independent
Chair
Non-executive directors
Brian
Cassin
Lloyd
Pitchford
1
Craig
Boundy
1
Mike
Rogers
Alison
Brittain
Kathleen
DeRose
2
Caroline
Donahue
Luiz
Fleury
Jonathan
Howell
Esther
Lee
Louise
Pentland
2
Base salary/fee
change
FY24
4.1%
2.5%
9.4%
47.6%
2.5%
13.5%
n/a
9.4%
11.3%
6.5%
n/a
n/a
FY23
7.6%
2.5%
2.4%
n/a
2.7%
47%
n/a
17%
16%
39%
n/a
n/a
FY22
6.1%
16%
17%
n/a
2%
9%
n/a
5%
13%
n/a
n/a
n/a
FY21
2.6%
(12)%
(12)%
n/a
21%
n/a
n/a
(14)%
(11)%
n/a
n/a
n/a
Taxable benefits
FY24
11.8%
(12.1)%
(21.4)%
(45.8)%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
FY23
27.2%
5.7%
(64)%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
FY22
8.7%
6%
155%
1
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
FY21
7.1%
1%
3%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Annual bonus
FY24
35.4%
69.3%
80.8%
142.8%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
FY23
(21.9)%
(40)%
(40)%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
FY22
32.2%
12%
12%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
FY21
27.5%
15%
15%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
1
The increase in base salary for Lloyd Pitchford is a result of his June 2023 adjustment together with the subsequent increase effective 1 November 2023, to reflect the increased scope of his role. Craig
Boundy’s FY23 base salary and bonus were pro-rated to reflect the period he was an Executive Director and his full salary earned in FY24 is therefore higher when compared to his pro-rated FY23 salary.
2
Kathleen DeRose and Louise Pentland were both appointed to the Board on 1 November 2022. Esther Lee was appointed to the Board on 31 March 2023. Their respective fees earned for FY24 are therefore
higher compared to FY23. Louise Pentland was appointed Remuneration Committee Chair with effect from 1 January 2024, and her FY24 fees reflect this additional responsibility.
How do we intend to implement the remuneration policy next year?
Salary
The table below outlines the salary increases that will take effect from 1 June 2024 for each executive director. The employee salary review budget for
FY25 is 3% for our employees both in the UK and the USA.
1 June 2024
‘000
1 June 2023
‘000
Percentage
increase
Brian Cassin
£1,070
£1,045
2.4%
Lloyd Pitchford
£7501
£646
1
16.1%
Craig Boundy
US$1,050
US$1,025
2.4%
1
Following shareholder consultation Lloyd Pitchford's base salary was increased to £750,000 with effect from 1 November 2023 and is only eligible for review in June 2025.
Annual bonus
For the year ending 31 March 2025, the annual bonus opportunity and the performance measures the executive directors are assessed on will remain
unchanged from FY24.
In line with our policy, we will disclose the targets for the annual bonus in next year’s Annual report on directors’ remuneration. While the FY25 annual
bonus targets cannot be disclosed due to their commercial sensitivity, they reflect our resilience in the face of the challenging outlook for the year
ahead. Annual bonus will be subject to clawback provisions, allowing the Group to recover all or part of any payment for a period of three years from
payment. In addition, the Committee can vary the level of payout if it considers that the formulaic payout determined by measuring performance is
inconsistent with the Group’s actual underlying financial and operational performance.
Performance is measured on a constant currency basis to neutralise the effects of exchange rate fluctuations, which are outside of management’s
control. The Committee also excludes the impact of any material acquisitions or disposals made in the year to ensure both metrics are measured
consistently, which is in line with our approach to long-term incentive plan measures.
Annual report on directors’ remuneration
continued
Experian plc
Governance
150
Code principle
Remuneration
Share-based incentives
While deferral of 50% is compulsory, the executive directors have each elected to defer the full 100% of their FY24 bonuses into the CIP. We expect to
grant matching shares in the first quarter of the year ending 31 March 2025, on a two-for-one basis. We also expect to grant PSP awards equivalent to
200% of salary at the same time. The CIP and PSP awards will vest subject to meeting the following targets, which will be measured over three years,
with a further two-year holding period applying:
Performance measure
Weighting
Vesting
1
0%
25%
50%
100%
CIP awards
Benchmark Earnings per share (average annual growth)
2
50%
Below 5%
5%
7%
9%
Cumulative Benchmark operating cash flow
50%
Below US$5.9bn
US$5.9bn
US$6.15bn
US$6.4bn
PSP awards
Benchmark Earnings per share (average annual growth)
2
50%
Below 5%
5%
7%
9%
Adjusted Return on capital employed
25%
Below 14.5%
14.5%
15.4%
16.0%
TSR of Experian vs TSR of FTSE 100 Index
25%
Below Index
Equal to Index
8.3% above Index
25% above Index
1
Straight-line vesting between the points shown.
2
Measured on an ongoing activities and constant currency basis.
The Committee selected adjusted Benchmark EPS, cumulative Benchmark operating cash flow and adjusted ROCE as performance metrics for our
long-term incentive plans, as they reflect three of our key performance indicators. As such, using these measures directly links Experian’s long-term
incentive arrangements to our strategic ambitions and business objectives. In addition, using relative TSR recognises the importance of creating value
for shareholders. We believe these targets to be the most appropriate measures of the Group’s success and, together with our annual bonus metrics,
they ensure that executive directors are incentivised to achieve a wide range of business and financial measures over both the short and long term.
The structure differentiates the role of each of our long-term incentive plans: the PSP incentivises returns and the CIP incentivises cash discipline.
However, given that growth is so fundamental to our business strategy, growth in Benchmark EPS runs across both of the long-term incentive plans.
Vesting of CIP and PSP awards will be subject to the Committee being satisfied that the vesting is not based on materially misstated financial results.
The Committee also retains the discretion to vary the level of vesting if it considers the level of vesting determined by measuring performance is
inconsistent with the Group’s underlying financial and operational performance. These awards will all be subject to clawback provisions, allowing the
Company to recover all or part of any vested award during the holding period.
TSR performance
We measure our TSR performance relative to the FTSE 100 Index, rather than to a bespoke comparator group. Our usual comparator companies are
Bread Financial, CoreLogic, Dun & Bradstreet, Equifax, FICO, LiveRamp, Moody’s, RELX, Thomson Reuters and TransUnion. However, we believe it
would be difficult to compare our TSR performance with them on a consistent basis, since many of them are listed in different markets and, as such,
may be subject to different market forces. Nevertheless, the Committee uses them as a reference point when reviewing other aspects of executive
director pay.
Additional disclosures
Directors’ shareholdings and share interests (audited)
We believe it is important that executive directors build up a significant holding in Experian shares, to align their interests with those of shareholders.
Under our guidelines, the CEO should hold the equivalent of at least three times his or her base salary in Experian shares and other executive directors
should hold the equivalent of at least two times their base salary. These guidelines include invested or deferred shares held under the CIP, but not
unvested matching shares. Shares that have vested but are subject to the two-year holding period will also count towards the guideline. Until the
shareholding guideline is met, we expect executive directors to retain at least 50% of any shares vesting (net of tax) under a share award. Unvested shares
do not count towards the guideline.
We also have guidelines for non-executive directors to build up a holding in Experian shares at least equal to their annual fee. Each financial year, the net
fee for the first quarter is used to purchase Experian shares until the non-executive director reaches this level of holding.
As set out in the table below, our executive directors already significantly exceed their personal shareholding guidelines, demonstrating their alignment to
shareholder interests as well as their commitment to Experian. To further strengthen this alignment post-employment, a two-year post-employment
shareholding guideline also applies to executive directors.
151
Experian plc
Annual Report 2024
Governance
Code principle
Remuneration
All executive directors who served during the year hold shares in excess of the relevant shareholding guidelines. The interests of the directors
(at 31 March 2024) and their connected persons in the Company’s ordinary shares (as at 31 March 2024) are shown below;
Shares held in
Experian plc at
31 March 2024
Shareholding guidelines
Share awards subject to
performance conditions
Share options
4
Guideline
1
(% of salary/fee)
Shareholding
(% of salary/fee)
2
Guideline met?
CIP matching
awards
3
PSP awards
Brian Cassin
5
835,717
300%
2762%
Yes
368,245
226,169
—
Lloyd Pitchford
5
471,500
200%
2171%
Yes
227,401
139,764
885
Craig Boundy
5
77,146
200%
328%
Yes
236,290
156,662
—
Mike Rogers
16,787
100%
135%
Yes
—
—
—
Alison Brittain
12,500
100%
180%
Yes
—
—
—
Kathleen DeRose
2,300
100%
53%
No
—
—
—
Caroline Donahue
10,000
100%
231%
Yes
—
—
—
Luiz Fleury
9,650
100%
223%
Yes
—
—
—
Jonathan Howell
13,000
100%
231%
Yes
—
—
—
Esther Lee
836
100%
19%
No
—
—
—
Louise Pentland6
2,800
100%
50%
No
—
—
—
1
Executive director shareholding guideline will apply for two years post-employment.
2
Shareholding guidelines have been calculated using the closing share price on 31 March 2024, which was £34.54 and exchange rates at 31 March 2024 of £1:US$1.2636 and £1:€1.1711.
3
Matching shares granted to Brian Cassin, Lloyd Pitchford and Craig Boundy are in the form of conditional shares, which are unvested at 31 March 2024.
4
Share options granted under the 2022 and 2023 all-employee Sharesave plan.
5
The number of Experian shares held by Brian Cassin, Lloyd Pitchford and Craig Boundy includes 96,619, 59,664 and 77,146 invested shares in the CIP respectively.
6
Louise Pentland acquired an additional 4,000 shares on 2 April 2024, which gives her a current holding of 121% which meets the guideline.
Payments made to former directors (audited)
Three former directors of Experian Finance plc (formerly GUS plc) received unfunded pensions from the Group. One of the former directors is now
paid under the Secured Unfunded Retirement Benefit Scheme, which provides security for the unfunded pensions of executives affected by the His
Majesty’s Revenue and Customs (HMRC) earnings cap. The total unfunded pensions paid to the former directors amounted to £934,364 in the year
ended 31 March 2024.
Payments for loss of office (audited)
No payments for loss of office were made in the year (2023: US$nil).
Relative importance of spend on pay
The table below illustrates the relative importance of spend on pay for all employees, compared to the financial distributions to shareholders, through
dividends and net share repurchases:
2024
US$m
2023
US$m
Percentage
change
Employee remuneration costs
2,493
2,381
4.7%
Dividends paid on ordinary shares
509
482
5.6%
Net share repurchases
1
0
51
(100)%
1
We executed net share repurchases for a cash consideration of US$100m, all of which offset deliveries during the year under employee share plans.
Annual report on directors’ remuneration
continued
Experian plc
Governance
152
Code principle
Remuneration
The Remuneration Committee
All our non-executive directors are members of the Committee, which met five times during the year ended 31 March 2024. Each member is
considered to be independent in accordance with the UK Corporate Governance Code 2018.
You can find the Committee’s terms of reference via the QR code on page 136.
The Committee’s role and responsibilities
The Committee is responsible for:
Committee activities
During the year, the Committee:
• Reviewed and approved the 2023 Report on directors’ remuneration and reviewed a draft of the 2024 Report on directors’ remuneration.
• Reviewed the Remuneration Policy, in advance of the 2023 Policy Renewal. As part of this review, the Chair of the Committee met with a number of
shareholders and investor representative bodies to discuss Experian’s executive director remuneration arrangements, including our approach to the
inclusion of ESG metrics in executive incentive arrangements, and listen to feedback from investors before finalising the Policy.
• Discussed at length the key themes emerging from the meetings with shareholders, and considered potential changes to the executive
Remuneration Policy.
• Considered and approved the final executive remuneration structure and Remuneration Policy, following rigorous debate and discussion.
• Reviewed salaries of certain Group Operating Committee members and approved annual pay adjustments for FY24.
• Agreed the 2023 incentive plan outcomes, the FY24 bonus targets, and targets for long-term incentive awards made in the year as well as approving
the long-term incentive plan participants.
• Received updates on the Group’s outstanding long-term incentive plans.
• Discussed at length executive pay in the context of the wider workforce and the broader impact on society, the Group, and our shareholders.
• Discussed the expansion of Lloyd Pitchford’s role to include global responsibility for both Information Security and Enterprise Risk. The Committee
considered, at length, an appropriate salary adjustment for Lloyd Pitchford, to reflect the expanded scope of his role and align his base salary with
the lower quartile of the market. The Chair of the Remuneration Committee wrote to our top 25 shareholders and proxy advisory agencies, to seek
feedback on a potential mid-year increase to Lloyd Pitchford’s base pay. The feedback from these discussions was provided to the Committee
thereafter and a mid-year pay adjustment for Lloyd Pitchford was subsequently approved.
• Received an update on current trends in the executive remuneration environment, focusing on our major regions.
• Received an update on the Group’s FY24 UK gender pay gap disclosure requirement. The Committee discussed the results and was provided with
additional detailed analysis on Experian’s gender pay position.
• Received an update on all-employee pay and workforce policies across Experian, including detailed insights on all-employee pay, workforce policies
and gender pay gap analyses in North America and Brazil, two of our key markets.
• Discussed the Sharesave Plan and relevant monthly savings limits and approved a 40% increase to the monthly savings limit of £100, bringing the
total limit to £350 for the 2023 grant and providing employees with further opportunities to share in Experian’s future growth.
• Initiated the invitation to employees to participate in the 2023 Sharesave Plan and was updated on take-up rates and outcomes of previous grants.
• Reviewed the Committee’s performance during the year against its terms of reference.
• Considered remuneration matters in respect of senior departures during the year.
In addition, the Committee Chair attended the UK and Ireland Experian People Forum in March 2024, to engage with employees, discuss how
Experian’s executive remuneration aligns with the wider Group pay policy, and understand employees’ views on culture, ways of working and
pay-related issues. This feedback was provided to the Board and discussed in detail thereafter.
1
Recommending
to the Board
senior executive
remuneration
policy and the
Chair’s
remuneration.
2
Determining
individual
remuneration
packages for
executive directors
and certain senior
executives.
3
Communicating
with shareholders
on remuneration
policy.
4
Making
recommendations
to the Board on the
design of the
Group’s short- and
long-term incentive
plans.
5
Overseeing the
Group’s executive
pension
arrangements.
6
Overseeing
broader employee
workforce policies.
153
Experian plc
Annual Report 2024
Governance
Code principle
Remuneration
Advice provided to the Committee
In making its decisions, the Committee consults the Chair, the Chief Executive Officer and the Chief People Officer where required.
We also invite members of the Global Reward team to attend Committee meetings as appropriate. We normally consult the Chief Financial Officer
about performance conditions applying to short- and long-term incentive arrangements, to ensure they are appropriately financially stretching.
However, we do not consider it appropriate that executives are present when their own remuneration arrangements are being discussed.
The Committee has access to independent consultants to ensure it receives objective advice. Willis Towers Watson remained our external advisers
throughout the year ended 31 March 2024. Willis Towers Watson provides other services to Experian globally, including advice on benefits and
provision of market data.
Additionally, Ellason provided incentive plan award valuations and remuneration data, as well as supporting data for the target calibration process.
Ellason does not provide any other services to the Group.
Willis Towers Watson and Ellason are members of the Remuneration Consultants Group and voluntarily operate under the Code of Conduct in relation
to executive remuneration consulting in the UK. As such, the Committee was satisfied that their advice was objective and independent.
The fees paid to these advisers for services to the Committee in the year ended 31 March 2024, based on hours spent, were as follows:
Adviser
Fees paid in the year
Willis Towers Watson
£35,350
Ellason
£7,225
What did we pay our non-executive directors during the year? (audited)
The table below shows a single total figure of remuneration for the Chair and non-executive directors for the years ended 31 March 2024 and
31 March 2023:
Fees ‘000
Benefits ‘000
Share-based incentives ‘000
Total ‘000
6
2024
2023
2024
2023
2024
2023
2024
2023
Mike Rogers
1
€500
€488
—
—
—
—
€500
€488
Alison Brittain
2
€287
€253
—
—
—
—
€287
€253
Kathleen DeRose
€223
€81
—
—
—
—
€223
€81
Caroline Donahue
€213
€194
—
—
—
—
€213
€194
Luiz Fleury
3
€307
€276
—
—
—
—
€307
€276
Jonathan Howell
4
€235
€220
—
—
—
—
€235
€220
Esther Lee (appointed 31 March 2023)
€213
—
—
—
—
—
€213
—
Louise Pentland5
€226
€81
—
—
—
—
€226
€81
1
Mike Rogers was appointed Chair of the Board on 24 July 2019. His fee was increased by 2.5% to €502,250 on 1 June 2023.
2
Alison Brittain was appointed as Senior Independent Director and Remuneration Committee Chair on 21 July 2022. Alison did not receive an additional fee for her role as Remuneration Committee Chair.
On 1 January 2024, Alison stepped down as Chair of the Remuneration Committee, but remains Senior Independent Director.
3
Luiz Fleury acted as an independent adviser to Serasa S.A., our Brazilian business. His remuneration includes a fee for this role, paid in Brazilian reais, along with the annual non-executive director’s fee.
4
Jonathan Howell was appointed Audit Committee Chair on 1 July 2022.
5
Louise Pentland was appointed Remuneration Committee Chair on 1 January 2024.
6
For FY24, the cumulative total single figure of remuneration for the Chair and non-executive directors in US$, applying the average exchange rate over the year of €1:US$1.0847 (2023: €1:US$1.0411)
is US$2.4m (2023: US$2.0m).
Non-executive director fees are reviewed annually and were last reviewed in 2023. The current fee levels are as follows:
Annual fee from
1 October 2023
Annual fee prior to
1 October 2023
Base fee
€174,750
€170,500
Audit Committee Chair fee
€52,750
€51,500
Remuneration Committee Chair fee
€52,750
€42,000
Deputy Chair/Senior Independent Director fee
€105,500
€103,000
Non-executive directors required to undertake intercontinental travel to attend Board meetings receive a supplementary payment of €10,000 per trip,
in addition to any travel expenses.
From 1 April 2023 to 31 December 2023, Alison Brittain held the role of Chair of the Remuneration Committee, in addition to her role as Senior
Independent Director. She did not receive an additional fee for her role as Chair of the Remuneration Committee.
Annual report on directors’ remuneration
continued
Experian plc
Governance
154
Code principle
Remuneration
Statement of voting at the 2023 AGM
The voting to approve the Annual report on directors' remuneration and the Directors’ remuneration policy approved at the AGM held on 19 July 2023
is set out in the following table:
Votes for
(including
discretionary
votes)
%
Number
Votes against
%
Number
Total number
of votes cast
Number of
votes withheld
Annual report on directors’ remuneration
95.3%
4.7%
682,052,249
33,495,886
715,548,135
7,741,833
Directors’ remuneration policy
94.3%
5.7%
668,721,118
40,356,107
709,077,225
14,212,743
Service contracts
Non-executive directors have letters of appointment that set out their duties and time commitment expected. They are appointed for an initial
three-year term, subject to election and annual re-election by shareholders at the AGM. Appointments are renewed by mutual agreement. Details of
non-executive director arrangements as at 31 March 2024 are set out below:
Name
Date of appointment
Length of service at 31 March 2024
Years
Months
Mike Rogers (appointed Chair on 24 July 2019)
1 July 2017
6
9
Alison Brittain
1 September 2020
3
7
Kathleen DeRose
1 November 2022
1
5
Caroline Donahue
1 January 2017
7
3
Luiz Fleury
8 September 2015
8
7
Jonathan Howell
1 May 2021
2
11
Esther Lee
31 March 2023
1
0
Louise Pentland
1 November 2022
1
5
Executive directors’ service contracts contain a 12-month Company notice period, and a 6-month notice period from the director as set out in the
Directors’ remuneration policy. Brian Cassin was appointed to the Board on 30 April 2012 as Chief Financial Officer, and 16 July 2014 as Chief Executive
Officer. The date of appointment to the Board for Lloyd Pitchford was 1 October 2014, and for Craig Boundy 21 July 2022.
155
Experian plc
Annual Report 2024
Governance
Code principle
Remuneration
The Directors’ remuneration policy was last approved by shareholders at the AGM on 19 July 2023.
The full and original version of the Policy, as approved by shareholders, is available on the Experian corporate website via
experianplc.com/
investors/reports
. We have included below the Policy table and the Which clawback provisions apply? section, which we consider to be the most
helpful sections of the Policy for investors.
Element and link to strategy
Operation
Maximum potential value
and payment at target
Performance metrics
and weightings
Base salary
To help with attracting and
retaining executive
directors of the right
calibre.
Provides a base level of pay
and reflects the
competitive market salary
for the role.
Base salary level takes
account of personal
contribution and
performance against
Group strategy.
Base salary is paid in equal instalments during the
year.
Salaries are reviewed annually, with any increases
generally taking effect from 1 June.
Salary levels and increases take into account a number
of factors, including the approach to employee
remuneration throughout the Group, prevailing
economic conditions, best practice and positioning
against the market.
Annual executive director salary
increases will, in normal
circumstances, be limited to the
increases awarded across the Group
as a whole.
Higher increases may be made in
exceptional circumstances including,
but not limited to, a change in role or
responsibility, and will take account of
market practice in relation to the new
role.
When the Committee considers
salary increases, it takes into
account individual performance
over the preceding financial
year.
Benefits
Provides part of a
competitive and
cost-effective overall
remuneration package.
Certain benefits may also
be provided to support
expatriates, where they
have relocated.
The Group provides a range of market-competitive
benefits that include, but are not limited to, healthcare,
financial and tax advice, death-in-service provision and
company car or allowance.
Executive directors can also participate in any of the
Group’s all-employee share plans, for example the
Sharesave plan, on the same basis as other eligible
employees.
In the USA, eligible executive directors may participate
in a deferred compensation plan, which is standard
market practice in the USA.
For expatriate assignments, we retain the flexibility to
tailor benefits to the circumstances of the assignment.
Additional benefits may include relocation expenses at
the beginning and end of each assignment, housing
allowance and school fees.
The cost of providing such benefits
may vary from year to year, reflecting
the cost to the Group.
The Committee sets benefits at a level
it considers appropriate against
relevant market practice, the role and
particular circumstances (for
example, in the case of expatriate
benefits, where the individual is
required to relocate).
None.
Pension
Provides a market-aligned
retirement provision.
Pension arrangements are in line with local market
practice.
In the UK, the Group operates a defined contribution
plan, with company contributions set as a percentage
of base salary. If impacted by His Majesty’s Revenue
and Customs (HMRC) pension limits, an individual
may elect to receive a cash allowance instead.
In the USA, executive directors are eligible to join
a defined contribution plan.
In the UK, the cash payment or
pension contribution for executive
directors is normally equal to 10% of
annual gross base salary, which
aligns to the wider UK employee
workforce.
In the USA, the contribution rate is up
to 4% of earnings, up to an annual
compensation limit set by the US
Internal Revenue Service (IRS).
If required, pension arrangements in
other jurisdictions would be in line
with local market practice.
None.
Directors’ remuneration policy
Experian plc
Governance
156
Code principle
Remuneration
Element and link to strategy
Operation
Maximum potential value
and payment at target
Performance metrics
and weightings
Annual bonus
Motivates and rewards the
achievement of specific
annual objectives, linked
to Experian’s business
strategy.
The Committee sets appropriate performance targets
at the start of each financial year.
At the end of the financial year, the Committee
determines the extent to which these have been
satisfied, based on audited results, and agrees the
level of bonus to be paid.
Half of any bonus must be deferred for a period of
three years. However, the executive director may
elect to defer up to 100% of their bonus into the CIP.
Where they elect not to do so, payment is made as
soon as practicable after the financial year end.
Malus and clawback provisions apply, under which
annual bonus payments may be reduced or recovered
in certain circumstances. Further details about our
malus and clawback policy are set out in the Which
clawback provisions apply? section of the report.
Threshold performance results in
a bonus payout equivalent to 25%
of the maximum. No bonus is payable
for below-threshold performance.
Achieving target performance results
in a bonus payout equivalent to 50%
of the maximum.
Achieving maximum performance
results in a full bonus payout of 200%
of salary.
The annual bonus may be based
entirely on financial
performance or on a
combination of financial,
strategic and/or operational
objectives.
However, the financial element
will comprise at least 70% of the
bonus.
The Committee retains the ability
to exercise its judgment to vary
the level of payout if it considers
that the formulaic payout
determined by measuring
performance is inconsistent with
the Group’s actual underlying
financial and operational
performance.
Co-investment Plans
Aligns with shareholder
interests through voluntary
investment of personal
capital, delivery of Experian
shares and the long-term
time horizons.
Use of stretch financial
metrics incentivises
performance.
Encourages participants’
long-term commitment to
the Group through personal
investment.
Participants are invited to invest between 50% and
100% of their annual bonus into Experian shares.
A conditional award of matching shares or nil-cost
options is granted on a two-for-one basis on the gross
bonus deferred, and vests after three years subject to
achieving performance targets over the three-year
period. Any vested awards are subject to a further
two-year holding period.
Dividend equivalents accrue on all awards of shares.
Malus and clawback provisions apply, under which
CIP awards may be reduced or recovered in certain
circumstances. Further details about our malus and
clawback policy are set out in the Which clawback
provisions apply? section of the report.
Maximum award levels depend
on the bonus deferred, which will
be matched, up to a two-for-one basis.
There is no vesting for below-
threshold performance.
Achieving threshold performance
results in 25% vesting of the
matching shares.
Achieving target performance
results in 50% vesting of the
matching shares.
Achieving maximum performance
results in full vesting of the
matching shares.
Awards vest based on financial
performance and subject to the
Committee being satisfied that
the vesting is not based on
materially misstated financial
results.
The Committee retains the
discretion to exercise its
judgment to vary the level of
vesting if it considers the
formulaic vesting level
determined by measuring
performance to be inconsistent
with the Group’s actual
underlying financial and
operational performance.
Performance Share Plan
Use of stretch financial
metrics incentivises
performance.
Aligns with shareholder
interests through delivery
of shares and the
long-term time horizons.
Participants receive an annual award of conditional
shares or nil-cost options, which vest after three
years, subject to achieving performance targets
over the three-year period. Any vested awards
are subject to a further two-year holding period.
Dividend equivalents accrue on all awards of shares.
Malus and clawback provisions apply, under which
PSP awards may be reduced or recovered in certain
circumstances. Further details about our malus and
clawback policy are set out in the Which clawback
provisions apply? section of the report.
Normal maximum award levels are
200% of salary.
Awards of up to 400% of salary
may be made in exceptional
circumstances such as recruitment.
There is no vesting for below-
threshold performance.
Achieving threshold performance
results in 25% of the shares vesting.
Achieving maximum performance
results in full vesting of the shares.
Vesting of up to 25% of the
awards is based on a
share-based metric, with the
balance based on financial
performance.
The Committee retains the ability
to vary the level of vesting if it
considers the formulaic vesting
level determined by measuring
performance to be inconsistent
with the Group’s actual
underlying financial and
operational performance.
157
Experian plc
Annual Report 2024
Governance
Code principle
Remuneration
Element and link to strategy
Operation
Maximum potential value
and payment at target
Performance metrics
and weightings
Shareholding guideline
To preserve and enhance
the long-term alignment of
the interests of executive
directors with shareholders
and promote a long-term
approach to performance
and risk management.
During employment:
Executive directors are required to establish and
maintain a minimum personal shareholding equal in
value to 3x base salary for the CEO and 2x base salary
for other executive directors.
Executive directors are required to retain at least 50%
of any shares vesting under the CIP and PSP (net of tax)
until their during-employment shareholding guideline
has been met.
Shares held beneficially, shares subject to a
post-vesting holding period and invested or deferred
CIP shares will count when assessing the guideline.
Share awards that are still subject to performance
conditions and matching shares under the CIP are not
included.
Post-employment:
For two years following cessation, (former) executive
directors are required to retain the lower of:
• their actual shareholding immediately prior to
cessation, or
• their shareholding guideline immediately prior to
cessation.
In determining the actual shareholding at cessation,
shares acquired from own purchases will not be
counted.
N/A
N/A
Independent Chair and non-executive director (NED) fees
To attract individuals with a
broad range of experience
and skills, to oversee the
implementation of our
strategy.
The Chair is paid an annual fee in equal instalments.
The Group may provide the Chair with a limited range
of benefits such as healthcare, tax advice or use of
a car.
The NEDs are paid a basic fee plus additional fees for
chairing a Board Committee and for the role of Senior
Independent Director. NED fees are paid in equal
quarterly instalments during the year. The net fee for
the first quarter of the financial year is used to
purchase Experian shares for NEDs and/or the Chair
(as applicable), until the individual has met their
shareholding guideline of 1x their estimated annual
fee (excluding travel fees).
NEDs receive an additional fee where attendance at
Board meetings involves intercontinental travel from
their home location. The Company may settle any tax
due on travel expenses incurred by the Chair and NEDs.
The Committee sets the Chair’s fees,
while NED fees are set by the Board.
Both are set based on a number
of factors, including the time
commitment required and
positioning against the market.
Fees are normally reviewed every
two years.
No performance-related
arrangements are in place
for the Chair or the NEDs.
Share Option Plan (SOP)
Provides focus on
increasing Experian’s
share price over the
medium to longer term.
Options are granted with an exercise price equivalent
to the market value of an Experian share at the date
of grant. These vest subject to achieving performance
targets that are tested over a three-year period and
are exercisable for seven years thereafter.
No option grants have been made since 2009 and the
Committee has agreed that no further awards will be
made, unless warranted by exceptional circumstances
such as recruitment.
Malus and clawback provisions apply, under which
SOP awards may be reduced or recovered in certain
circumstances. Further details about our malus
and clawback policy are set out in the Which clawback
provisions apply? section of the report.
Normal maximum award levels are
200% of salary.
Grants of up to 400% of salary may be
made in exceptional circumstances
such as on recruitment.
There is no vesting for below-
threshold performance.
Achieving threshold performance
results in 25% of the options vesting.
Achieving maximum performance
results in full vesting of the options.
The vesting of options is based
on financial performance
targets.
Directors’ remuneration policy
continued
Experian plc
Governance
158
Code principle
Remuneration
Which clawback provisions apply?
Malus or clawback applies to the Group’s incentive plans for five years from grant.
Under these provisions, the Committee may apply malus or clawback in circumstances that have:
• resulted in a level of vesting or payment that is higher than would otherwise have been, because of a material misstatement of the Group’s financial
results; or
• led to a material financial or reputational loss for the Group, due to serious individual misconduct.
Under our malus and clawback policy, should a trigger event be identified, a Clawback Committee would be appointed by the Remuneration
Committee to investigate the issue. The Clawback Committee would report back with recommendations on whether malus or clawback should be
applied, which individuals this should affect, which remuneration should be subject to malus or clawback and the value that should be affected.
The Remuneration Committee would then have final sign-off on any decision to operate malus or clawback.
Legacy arrangements
The Committee reserves the right to make any remuneration payments and payments for loss of office (including exercising any discretions available
to it in connection with such payments), notwithstanding that they are not in line with the policy set out in this report where the entitlement to the
payment arose: (i) before the 2023 AGM; (ii) at a time when the relevant individual was not a director of the Company and, in the opinion of the
Committee, the payment was not in consideration for the individual becoming a director of the Company; or (iii) under a remuneration policy previously
approved by the Company’s shareholders. For these purposes, entitlements arising under the Company’s previous remuneration policy (as approved
by shareholders at the 2020 AGM) will be incorporated into this policy and ‘payments’ includes the Committee satisfying awards of variable
remuneration, and an entitlement under an award over shares arises at the time the award is granted.
On behalf of the Remuneration Committee
Charles Brown
Company Secretary
14 May 2024
159
Experian plc
Annual Report 2024
Governance
Code principle
Remuneration
Directors’ report
The directors present their report and the
audited financial statements for the year
ended 31 March 2024. The report has been
prepared in line with the UK Companies Act
2006, and the Corporate governance report
and the Shareholder and corporate
information section form part of this Directors’
report. The Strategic report contains certain
information equivalent to that required in a
report of the directors.
Financial and operational information
Results and dividend
The Group income statement shows a profit
for the year ended 31 March 2024 of
US$1,203m (2023: US$773m). The directors
have announced the payment of a second
interim dividend, in lieu of a final dividend, of
40.50 US cents (2023: 37.75 US cents) per
ordinary share to be paid on 19 July 2024 to
shareholders on the register of members
on 21 June 2024. A first interim dividend of
18.0 US cents per ordinary share was paid on
2 February 2024, giving a total dividend for the
year of 58.50 US cents per ordinary share
(2023: 54.75 US cents).
Innovation
Innovation, supported by our talented people,
and by research and development, plays a
key role in supporting Experian’s business
performance. Details of such activities are
given in the Strategic report.
Acquisitions and disposals
Information on acquisitions and disposals
made during the year is contained in note 41
and note 42 respectively to the Group financial
statements.
Registered branch
The Company has a branch registered in
Ireland under branch number 905565.
Post-balance sheet events
Details of events occurring after the end of the
reporting period are contained in note 47 to the
Group financial statements.
Share capital
Details of the Company’s share capital and
changes during the year ended 31 March 2024
are set out in note Q to the Company financial
statements.
Financial risk management, objectives
and policies
Descriptions of the use of financial instruments
and Experian’s treasury and risk management
objectives and policies are set out in the
Financial review, within the Strategic report,
and also in note 8 to the Group financial
statements.
Political donations
Experian did not make any political donations
during the year ended 31 March 2024.
Going concern
Details of the adoption of the going concern
basis in preparing the Group financial
statements are set out in note 2 to the Group
financial statements, and are incorporated into
this report by reference. For details of the
adoption of the going concern basis in
preparing the Company financial statements,
see note B.
Directors
Information on directors holding office
in the year
The directors’ names, biographical details, and
skills and experience are shown in the Board
of directors section. There were no Board or
committee composition changes during the
year under review.
Particulars of directors’ remuneration, service
contracts and interests in the Company’s
ordinary shares are shown in the Report on
directors’ remuneration. On 2 April 2024,
Louise Pentland purchased 4,000 American
Depositary Receipts in the Company (each
American Depositary Receipt is equivalent to
one ordinary share in the Company). There
were no other changes in the directors’
interests in the ordinary shares between the
end of the financial year and 14 May 2024.
In line with the UK Corporate Governance Code,
as at the date of this report, all directors, being
eligible, will offer themselves for re-election at
the 2024 AGM. An evaluation of the
performance of the Board, its committees and
individual directors was carried out during the
financial year. The Board is satisfied that
all directors seeking re-election contribute
effectively and demonstrate commitment to
their roles. The Corporate governance report
contains further details of the evaluation
process and outcomes.
Insurance and third-party
indemnification
During the year and up to the date of
approval of this Annual Report, the Company
maintained liability insurance and third-party
indemnification provisions for its directors
and officers.
Appointment and removal of directors
Both the Company, by ordinary resolution, and
the directors, may elect any person to be a
director. The number of directors shall not
exceed the maximum number fixed by the
Company’s articles of association. Any person
appointed by the directors shall hold office only
until the next AGM and shall then be eligible for
election. The office of a director shall be
vacated on the occurrence of any of the events
listed in article 96 of the Company’s articles of
association. The Company may, in accordance
with its articles of association, remove any
director from office and elect another person
in their place.
Annual General Meeting
The Company’s 2024 AGM will be held at The
Merrion Hotel, Upper Merrion Street, Dublin 2,
D02 KF79, Ireland, at 9.30am on Wednesday
17 July 2024. Shareholders who are unable to
attend may submit questions beforehand via
email to
agmquestions@experianplc.com
or on the pre-paid card sent with the notice of
the meeting. The questions will be addressed
at the meeting, via the Company’s website
at
experianplc.com
or individually as
appropriate. The notice of meeting has been
circulated to shareholders and can also be
viewed on the Company’s website.
Share capital information
Rights and obligations
The rights and obligations attaching to the
ordinary and deferred shares are set out in
note Q to the Company financial statements
and in the Company’s articles of association,
a copy of which can be obtained from the
Experian website,
experianplc.com
.
The Company’s articles of association may
be amended by passing a special resolution.
Experian plc
Governance
160
ADR programme
The Company has a Level 1 American
Depositary Receipt (ADR) programme in the
USA, for which J.P. Morgan Chase Bank, N.A.
acts as depositary. The ADRs are traded on the
highest tier of the US over-the-counter market,
OTCQX, with each ADR representing one
Experian plc ordinary share. Further details
are given in the Shareholder and corporate
information section.
Substantial shareholdings
The Company’s articles of association oblige
shareholders to comply with the notification
obligations contained in the UK Disclosure
Guidance and Transparency Rules sourcebook.
As at 14 May 2024, the Company had been
notified of the indirect interest below in its
issued ordinary share capital or voting rights
in respect of the year.
Date of notification
Shareholder
Number of ordinary shares/
voting rights
Percentage of issued share
capital/voting rights
10 July 2023
Massachusetts Financial
Services Company
46,525,953
5.05%
Restrictions on transfers of shares
and/or voting rights
The Company is not aware of any agreements
between shareholders that may result in
restrictions on the transfer of securities and/or
voting rights and, apart from the matters
described below, there are no restrictions on
the transfer of the Company’s ordinary shares
and/or voting rights:
• Certain restrictions on transfers of shares
may from time to time be imposed by, for
example, share dealing regulations. In certain
situations, directors and certain employees
must seek the Company’s approval to deal in
its shares.
• Some of Experian’s share-based employee
incentive plans include restrictions on the
transfer of shares, while the shares are
subject to the plan concerned.
• As described in the Report on directors'
remuneration, directors must hold a
proportion of their salary/fees in shares.
These shares may not normally be
transferred during their period of office.
• Where participants in a share-based
employee incentive plan operated by
Experian are the beneficial owners of the
shares but not the registered owner, the
voting rights are normally exercised by the
registered owner at the direction of the
participants.
• Shares carry no voting rights while they are
held in treasury.
• The deferred shares in the Company carry no
voting rights.
• Unless the directors determine otherwise,
members are not entitled to vote personally
or by proxy at a shareholders’ meeting, or
to exercise any other member’s right in
relation to shareholders’ meetings, in respect
of any share for which any call or other sum
payable to the Company remains unpaid.
• Unless the directors determine otherwise,
members are not entitled to vote personally
or by proxy at a shareholders’ meeting, or
to exercise any other member’s right in
relation to shareholders’ meetings, if the
member fails to provide the Company
with the required information concerning
interests in those shares, within the
prescribed period after being served with
a notice under the Company’s articles of
association.
• The Company’s articles of association state
that, except for certain limited circumstances,
if the number of shares in the Company
beneficially owned by residents of the USA
exceeds a defined permitted maximum and
the directors give notice to the holder(s) of
such shares, the shares do not give their
holder(s) the right to receive notice of, attend
or vote at the Company’s general meetings.
Details of deadlines for voting at the 2024 AGM
are contained in the notice of meeting that has
been circulated to shareholders, and which
can also be viewed on the Company’s website.
Purchase, cancellation and holdings
of own shares
The existing authority for the Company to
purchase its own shares was given at the AGM
held on 19 July 2023. It permits the Company
to purchase 91,915,447 of its own shares in the
market.
On 17 May 2023, the Company announced its
intention to repurchase shares, through a net
US$150m share repurchase programme.
During the year ended 31 March 2024, the
Company purchased 2,077,909 of its own
shares, for a cash consideration of US$64.5m
(with no shares purchased before the 2023
AGM). Since 31 March 2024, 714,000 shares
have been purchased by the Company. All
shares purchased have been retained as
treasury shares.
On the following dates, the Company
transferred ordinary shares (as outlined after
each date) from treasury to Computershare
Investor Services plc and Computershare
Trustees (Jersey) Limited, the administrator
and trustee respectively of Experian’s share
plans, for nil consideration, to be used to meet
obligations under employee share plans:
6 June 2023 (857,432); 30 June 2023 (14,319);
2 October 2023 (114,308); and 5 March 2024
(19,662).
As at the date of approval of this Annual
Report, the Company holds 54,008,546 (2023:
52,222,358) of its own shares as treasury
shares, and had an unexpired authority to
purchase up to 89,837,538 of its own shares.
Details of the new authority being requested at
the 2024 AGM are contained in the circular to
shareholders, which either accompanies this
Annual Report or is available on the Company’s
website at
experianplc.com
.
Details of the shares in the Company
purchased by and held under The Experian plc
Employee Share Trust and the Experian UK
Approved All Employee Share Plan are set out
in note R to the Company financial statements.
Significant agreements – change
of control
The Group is party to a number of agreements
that take effect, alter, terminate, or have the
potential to do so, upon a change of control of
the Company following a takeover bid. These
agreements are as follows:
• The Group’s banking facilities contain
provisions which, in the event of a change of
control, could result in their renegotiation or
withdrawal.
• The Group’s Euronotes allow holders to
require repayment of the notes, if a rating
agency re-rates the notes to below
investment grade, following a change of
control.
• All of Experian’s share-based employee
incentive plans contain provisions relating
to a change of control. Outstanding awards
and options would normally vest and become
exercisable, subject to satisfaction of any
performance conditions at that time.
• The Group is party to a limited number of
operational arrangements that can be
terminated or altered upon a change of
control of the Company, but these are not
considered to be individually significant to the
Group’s business as a whole. In certain cases,
it is considered that their disclosure would be
seriously prejudicial to the Company.
• The provisions in directors’ service contracts
relating to a change of control of the
Company are described in the Report on
directors’ remuneration.
161
Experian plc
Annual Report 2024
Governance
Employment information
Employment of people with disabilities
People with disabilities have equal
opportunities when applying for vacancies.
In addition to complying with legislative
requirements, the Group has procedures
to ensure it treats employees with disabilities
fairly and manages their training and career
development needs carefully. The policies are
considered to operate effectively. The Group
supports employees who become disabled
during the course of their employment, by
offering re-training or re-deployment, to
enable them to remain with the Group
whenever possible.
Employee involvement
Experian is committed to employee
involvement throughout the business. The
Group is intent on motivating staff, keeping
them informed on matters that concern them
in the context of their employment, and
involving them through local consultative
procedures. Where there are recognition
agreements with trade unions, the consultation
process is established through national and
local trade union representatives and through
joint consultation committees.
Employees are kept well informed on matters
of interest and the financial and economic
factors affecting the Group’s performance.
This is done through management channels,
conferences, meetings, publications and
intranet sites. More detail on employee
engagement, together with information on
corporate responsibility, diversity, succession
planning and talent development, can be found
in the Sustainable business section of the
Strategic report.
Experian supports employee share ownership
by providing, whenever possible, employee
share plan arrangements that are intended
to align employees’ interests with those of
shareholders.
Auditor information
Relevant audit information
As at 14 May 2024, so far as each director is
aware, there is no relevant information needed
by the auditor in connection with preparing the
audit report, of which the auditor is unaware,
and all directors have taken all steps they
ought to have taken as directors to make
themselves aware of any relevant audit
information and to establish that the auditor
is aware of it.
Independent auditor
The auditor, KPMG LLP, has indicated its
willingness to continue in office and a
resolution that it be re-appointed as the
Company’s auditor will be proposed at
the AGM.
Statement of directors’ responsibilities
The directors are responsible for:
• Preparing the Annual Report, the Group
and Company financial statements in
accordance with applicable law and
regulations. The directors have decided
to prepare voluntarily a directors’
remuneration report in accordance with
Schedule 8 to The Large and Medium-sized
Companies and Groups (Accounts and
Reports) Regulations 2008 made under
the UK Companies Act 2006, as if those
requirements applied to the Company.
• Preparing financial statements which give a
true and fair view of the state of affairs at the
balance sheet date, and the profit or loss for
the period then ended of (a) the Group (in
accordance with 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)), and (b) the
Company (in accordance with UK Accounting
Standards including FRS 101 ‘Reduced
Disclosure Framework’).
• Keeping adequate accounting records that
are sufficient to show and explain the Group
and the Company’s transactions and disclose,
with reasonable accuracy, at any time, the
financial position of the Group and the
Company and enable them to ensure the
Group and the Company financial statements
comply with applicable laws.
• Maintaining such internal control as they
determine is necessary to enable the
preparation of financial statements that are
free from material misstatement, whether
due to fraud or error, and have general
responsibility for taking the steps reasonably
open to them to safeguard the assets of the
Group and the Company and to prevent and
detect fraud and other irregularities.
• The maintenance and integrity of the
statutory and audited information on the
Company’s website. Jersey legislation and
UK regulations governing the preparation
and dissemination of financial statements
may differ from requirements in other
jurisdictions.
In addition, the directors consider that,
in preparing the financial statements:
• suitable accounting policies have been
selected and applied consistently
• judgments and estimates made have been
reasonable, relevant and reliable
• the Group financial statements comply with
UK-IFRS, EU-IFRS and IASB-IFRS
• the Company financial statements comply
with UK Accounting Standards including FRS
101 ‘Reduced Disclosure Framework’, subject
to any material departures disclosed and
explained in the financial statements
• the Group’s and Company’s ability to continue
as a going concern has been assessed and,
as applicable, matters related to going
concern have been disclosed
• it is appropriate that the Group and Company
financial statements have been prepared on
the going concern basis, as it is intended the
Group and the Company will continue in
business.
The directors also 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 for the period of the Group
and the Company; and the Strategic report
contains a fair review of the development and
performance of the business and the position
of the Group and the Company, together with
a description of the principal risks and
uncertainties they face.
In addition, each of the directors considers that
the Annual Report and financial statements,
taken as a whole, is fair, balanced and
understandable, and provides the information
necessary for shareholders to assess the
Group’s position and performance, business
model and strategy.
By order of the Board
Charles Brown
Company Secretary
14 May 2024
Corporate headquarters:
2 Cumberland Place
Fenian Steet
Dublin 2
D02 HY05
Ireland
Registered office:
22 Grenville Street
St Helier
Jersey
JE4 8PX
Channel Islands
Directors’ report
continued
Experian plc
Governance
162
Financial statements
In this section
164 Independent auditor’s report
Group financial statements
176 Group income statement
177
Group statement of
comprehensive income
178 Group balance sheet
179
Group statement of changes
in equity
180 Group cash flow statement
Notes to the Group financial
statements
181 1.
Corporate information
181 2.
Basis of preparation
181 3. Climate-related matters
181 4.
Recent accounting developments
182 5.
Material accounting policies
188 6.
Critical accounting estimates,
assumptions and judgments
189 7.
Use of non-GAAP measures in the
Group financial statements
190 8.
Financial risk management
192 9. Revenue
194 10. Segment information
199 11. Foreign currency
199 12.
Labour costs and employee
numbers
200 13.
Amortisation and depreciation
charges
200 14.
Fees payable to the
Company’s auditor
201 15.
Exceptional items and
other adjustments made
to derive Benchmark PBT
202 16.
Net finance expense/(income)
204 17.
Tax charge
205 18. Earnings per share disclosures
206 19. Dividends on ordinary shares
207 20. Goodwill
209 21. Other intangible assets
210 22. Property, plant and equipment
211 23. Investments in associates
211 24. Trade and other receivables
212 25.
Cash and cash equivalents
– excluding bank overdrafts
213 26. Trade and other payables
213 27. Borrowings
214 28. Net debt (non-GAAP measure)
216 29. Leases
217 30. Financial assets and liabilities
222 31. Fair value methodology
223 32.
Contractual undiscounted future
cash flows for financial liabilities
224 33. Share incentive plans
226 34.
Post-employment benefit plans
and related risks
227 35.
Post-employment benefits –
IAS 19 information
230 36. Deferred and current tax
232 37. Provisions
232 38.
Called-up share capital and
share premium account
232 39.
Retained earnings and
other reserves
234 40.
Notes to the Group cash flow
statement
236 41. Acquisitions
237 42. Disposals
238 43.
Assets and liabilities classified as
held-for-sale
238 44. Capital commitments
238 45. Contingencies
239 46. Related party transactions
239 47.
Events occurring after the end
of the reporting period
Company financial statements
240 Company profit and loss account
240
Company statement of
comprehensive income
241 Company balance sheet
242
Company statement of changes
in equity
243
Notes to the Company
financial statements
163
Experian plc
Annual Report 2024
Financial statements
1. Our opinion is unmodified
In our opinion:
• the Group financial statements give a true and fair view, in accordance with IFRS Accounting Standards adopted pursuant to Regulation (EC)
No. 1606/2002 as it applies in the European Union (“EU-IFRS”) of the Group’s affairs as at 31 March 2024 and of its profit for the year then ended;
• the Parent Company financial statements give a true and fair view, in accordance with UK accounting standards, including FRS 101 Reduced Disclosure
Framework, of the Parent Company’s affairs as at 31 March 2024 and of its profit for the year then ended; and
• the Group and Parent Company financial statements have been prepared in accordance with the requirements of the Companies (Jersey) Law 1991.
Additional opinions in relation to UK-adopted international accounting standards (“UK-IFRS”) and IFRS Accounting Standards
as adopted by the International Accounting Standards Board (“IASB”)
As explained in note 2 to the Group financial statements, the Group, in addition to applying EU-IFRS, has also applied UK-adopted international
accounting standards and IFRS Accounting Standards as issued by the IASB. In our opinion, the Group financial statements have been properly prepared
in accordance with UK-adopted international accounting standards and IFRS Accounting Standards as issued by the IASB.
What our opinion covers
We have audited the Group and Parent Company financial statements of Experian plc (“the Company”) for the year ended 31 March 2024 (FY24) included
in the Annual Report and Accounts, which comprise:
Group
Parent Company (Experian plc)
Group income statement, Group statement of comprehensive income, Group
balance sheet, Group statement of changes in equity and Group cash flow
statement.
Notes 1 to 47 to the Group financial statements, including the accounting
policies in note 5.
Company profit and loss account, Company statement of comprehensive
income, Company balance sheet and Company statement of changes in equity.
Notes A to T to the Parent Company financial statements, including the
accounting policies in note D.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described
below. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Our audit opinion and matters included
in this report are consistent with those discussed and included in our reporting to the Audit Committee.
We have fulfilled our ethical responsibilities under, and we remain independent of the Group in accordance with, UK ethical requirements including the
Financial Reporting Council (“FRC”) Ethical Standard as applied to listed public interest entities.
2. Overview of our Audit
Factors driving our view of risks
Following our FY23 audit, and considering developments affecting the Experian plc Group since then, our
assessment of risks and our view of how these impact the audit of the financial statements has been
updated. Overall, the Key Audit Matters have remained consistent with FY23.
The risk associated with the EMEA and Asia Pacific (“APAC”) goodwill remains significant due to continued
estimation uncertainty arising from ongoing challenging macro-economic conditions impacting trading
performance.
The industry that the Group operates in is subject to increasingly complex legislation and regulators
worldwide are continuing at their high levels of scrutiny. We therefore consider that the risk associated
with litigation and contingent liabilities as a whole continues to be heightened, consistent with FY23.
Our assessment is that the risk of recoverability of the Parent Company’s investments in subsidiaries
remains consistent with FY23.
Key Audit Matters
Vs FY23
Item
Recoverability of goodwill
in respect of the EMEA and
APAC cash generating unit
4.1
Litigation and contingent
liabilities
4.2
Recoverability of the Parent
Company’s investment in
subsidiaries
4.3
Audit Committee interaction
During the year, the Audit Committee met four times. KPMG are invited to attend all Audit Committee meetings and are provided with an opportunity to meet with
the Audit Committee in private sessions without the executive directors being present. For each key audit matter, we have set out communications with the Audit
Committee in section 4, including matters that required particular judgement for each.
The matters included in the Audit Committee Chair’s report on page 128 are materially consistent with our observations of those meetings.
Independent auditor’s report
To the members of Experian plc
Experian plc
Financial statements
164
Our independence
We have fulfilled our ethical responsibilities and we remain independent of the Group in accordance with
UK ethical requirements including the FRC Ethical Standard as applied to listed public interest entities.
We have not performed any non-audit services during FY24 or subsequently which are prohibited by the
FRC Ethical Standard.
We were first appointed as auditor by the shareholders for the year ended 31 March 2017. The period of
total uninterrupted engagement is for the eight financial years ended 31 March 2024.
The Group engagement partner is required to rotate every five years. As these are the second set of the
Group’s financial statements signed by Zulfikar Walji, he will be required to rotate off after the FY27 audit.
The average tenure of partners responsible for component audits as set out in section 7 below is two
years, with the shortest being one and the longest being five.
Total audit fee
US$7.2m
Audit related fees (including
interim review)
US$0.7m
Other services
US$0.4m
Non-audit fee as a % of total audit
and audit related fee %
15%
Date first appointed
20 July 2016
Uninterrupted audit tenure
8 years
Next financial period which
requires a tender
31 March 2027
Tenure of Group engagement
partner
2 years
Average tenure of component
signing partners
2 years
Materiality
(Item 6 below)
The scope of our work is influenced by our view of materiality and our assessed risk of material
misstatement.
We have determined overall materiality for the Group financial statements as a whole at US$70m
(FY23: US$70m) and for the Parent Company financial statements as a whole at US$25m (FY23: US$25m).
Consistent with FY23, we determined that profit before tax from continuing operations (“PBTCO”)
remains the appropriate benchmark for the Group considering the sector in which the Group operates,
its ownership and financing structure, and the focus of users of the financial statements. As such, we
based our Group materiality on profit before tax from continuing operations, of which it represents 4.5%
(FY23: 5.0%*).
Materiality for the Parent Company financial statements was determined with reference to a benchmark
of Parent Company total assets of which it represents 0.1% (FY23: 0.1%).
*FY23 materiality was based on a normalised profit before tax measure (see section 6 below).
Group
Group
Group Materiality
GPM
Group Performance Materiality
HCM
Highest Component Materiality
PLC
Parent Company Materiality
LCM
Lowest Component Materiality
AMPT
Audit Misstatement Posting Threshold
GPM
HCM
PLC
LCM
AMPT
Materiality levels used in our audit
53
53
52
52
21
21
25
25
3.5
3.5
70
70
FY24 US$m
FY23 US$m
2. Overview of our Audit continued
165
Experian plc
Annual Report 2024
Financial statements
Independent auditor’s report
continued
Group scope
(Item 7 below)
We have performed risk assessment and planning procedures to determine which of the Group’s
components are likely to include risks of material misstatement to the Group financial statements, the
type of procedures to be performed at these components and the extent of involvement required from
our component auditors around the world.
We identified three (FY23: three) components as individually financially significant components and full
scope audits were performed on these components by component auditors (KPMG member firms).
The work on the Parent Company was performed by the Group team.
We have also considered the extent to which the Group has established shared service centres in the UK,
Brazil, Malaysia, Costa Rica and Bulgaria. The outputs of these centres are included in the financial
information of the reporting components and therefore they are not considered to be separate reporting
components.
We have performed certain audit procedures centrally across the Group, details of which are included in
Section 7. In addition, we have performed Group level analysis on the remaining components to determine
whether further risks of material misstatement exist in those components.
The components within the scope of our work accounted for the percentages illustrated opposite.
We consider the scope of our audit, as communicated to the Audit Committee, to be an appropriate basis
for our audit opinion.
Profit before tax*
84% (FY23: 85%)
Coverage of Group financial statements
84
16
Total assets
92% (FY23: 90%)
92
8
Revenue
91% (FY23: 91%)
91
9
Full scope audits
*Total profits or losses that make up Group profit
before tax (continuing operations)
Residual components
The impact of climate change on our audit
We have considered the potential impacts of climate change on the financial statements as part of planning our audit.
As the Group has set out on pages 73-75, climate change has the potential to give rise to a number of transition risks, physical risks and opportunities. The Group
has stated its commitment to become carbon neutral across its own operations by 2030.
The areas of the financial statements that are most likely to be potentially affected by climate related changes and initiatives are balances subject to forward
looking assessments such as impairment tests for indefinite and other long lived non-current assets. The Group considered the impact of climate change and
the Group’s targets in the preparation of the financial statements, as described in Note 3 in relation to impairment, and this did not have a material effect on the
consolidated financial statements.
We performed a risk assessment, taking into account climate change risks and the commitments made by the Group. This included enquiries of management,
consideration of the Group’s processes for assessing the potential impact of climate change risk on the Group’s financial statements, assessing the Task Force
on Climate Related Financial Disclosures (“TCFD”) scenario analysis performed by the Group and reading the Group’s CDP (formerly known as Carbon Disclosure
Project) submission.
Based on our risk assessment we determined that, taking into account the limited extent of the impact of climate change on financial forecasts used to determine
the recoverability of goodwill, there are no significant risks of material misstatement in relation to climate change. Therefore, we assessed that the impact on our
audit is not significant for this financial year.
There was no significant impact of climate change on our key audit matters included in section 4.
We have read the Group’s disclosure of climate related information in the front half of the Annual Report and Accounts as set out on pages 56 to 79 and
considered consistency with the financial statements and our audit knowledge.
2. Overview of our Audit continued
Experian plc
Financial statements
166
3. Going concern, viability and principal risks and uncertainties
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Group or the Parent Company or
to cease their operations, and as they have concluded that the Group’s and the Parent Company’s financial position means that this is realistic. They have
also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least
a year from the date of approval of the financial statements (the “going concern period”).
Going concern
We used our knowledge of the Group, its industry, and the general economic environment to identify the
inherent risks to its business model and analysed how those risks might affect the Group’s and Parent
Company’s financial resources or ability to continue operations over the going concern period. The risk
that we considered most likely to adversely affect the Group’s and Parent Company’s available financial
resources and metrics relevant to debt covenants over this period is the loss or misuse of data resulting
from a ransomware incident, leading to serious reputational and brand damage, legal penalties, and class
action litigation.
We considered whether these risks could plausibly affect the liquidity or covenant compliance in the going
concern period by assessing the degree of downside assumption that, individually and collectively, could
result in a liquidity issue, taking into account the Group’s current and projected cash and facilities (a
reverse stress test). We also assessed the completeness of the going concern disclosure.
Accordingly, based on those procedures, we found the directors’ use of the going concern basis of
accounting without any material uncertainty for the Group and Parent Company to be acceptable.
However, as we cannot predict all future events or conditions and as subsequent events may result in
outcomes that are inconsistent with judgements that were reasonable at the time they were made, the
above conclusions are not a guarantee that the Group or the Parent Company will continue in operation.
Our conclusions
• We consider that the directors’ use of the going
concern basis of accounting in the preparation of
the financial statements is appropriate;
• We have not identified, and concur with the
directors’ assessment that there is not, a
material uncertainty related to events or
conditions that, individually or collectively, may
cast significant doubt on the Group’s or Parent
Company's ability to continue as a going concern
for the going concern period; and
• We have nothing material to add or draw
attention to in relation to the directors’ statement
in note 2 to the financial statements on the use of
the going concern basis of accounting with no
material uncertainties that may cast significant
doubt over the Group and Parent Company’s use
of that basis for the going concern period, and we
found the going concern disclosure in note 2 to
be acceptable.
Disclosures of emerging and principal risks and longer-term viability
Our responsibility
We are required to perform procedures to identify whether there is a material inconsistency between the
directors’ disclosures in respect of emerging and principal risks and the viability statement, and the
financial statements and our audit knowledge.
Based on those procedures, we have nothing material to add or draw attention to in relation to:
• the directors’ confirmation within the viability statement on page 101 that they have carried out a robust
assessment of the emerging and principal risks facing the Group, including those that would threaten its
business model, future performance, solvency and liquidity;
• the Emerging and Principal Risks disclosures describing these risks and how emerging risks are
identified and explaining how they are being managed and mitigated; and
• the directors’ explanation in the viability statement of how they have assessed the prospects of the
Group, over what period they have done so and why they considered that period to be appropriate, and
their statement as to whether they have a reasonable expectation that the Group will be able to continue
in operation and meet its liabilities as they fall due over the period of their assessment, including any
related disclosures drawing attention to any necessary qualifications or assumptions.
Our work is limited to assessing these matters in the context of only the knowledge acquired during our
financial statements audit. As we cannot predict all future events or conditions and as subsequent events
may result in outcomes that are inconsistent with judgements that were reasonable at the time they were
made, the absence of anything to report on these statements is not a guarantee as to the Group’s and
Parent Company’s longer-term viability.
Our reporting
We have nothing material to add or draw attention
to in relation to these disclosures.
We have concluded that these disclosures are
materially consistent with the financial statements
and our audit knowledge.
4. Key audit matters (KAMs)
What we mean
Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the financial statements and include the most
significant assessed risks of material misstatement (whether or not due to fraud) identified by us, including those which had the greatest effect on:
• the overall audit strategy;
• the allocation of resources in the audit; and
• directing the efforts of the engagement team.
167
Experian plc
Annual Report 2024
Financial statements
Independent auditor’s report
continued
We summarise below the key audit matters in decreasing order of audit significance, in arriving at our audit opinion above, together with our key audit
procedures to address those matters and our results from those procedures in order that the Company’s members, as a body, may better understand
the process by which we arrived at our audit opinion. These matters were addressed, and our results are based on procedures undertaken, in the context
of, and solely for the purpose of our audit of the financial statements as a whole, and in forming our opinion thereon, and consequently are incidental to
that opinion, and we do not provide a separate opinion on these matters.
4.1 Recoverability of goodwill in respect of the EMEA and APAC CGU (Group)
Financial Statement Elements
Our assessment of risk vs FY23
Our results
FY24
FY23
The risk associated with the EMEA and Asia Pacific (“APAC”)
goodwill remains significant due to the continued estimation
uncertainty arising from ongoing challenging trading and
macro-economic conditions.
The impact of the Group’s restructuring activity in EMEA and
APAC has resulted in the two previously separate regions
being combined, therefore goodwill is now allocated and
monitored at the combined EMEA and APAC region level.
The impairment test for goodwill for FY24 has therefore
been performed for this combined group of cash generating
units (‘CGUs’).
FY24: Acceptable
FY23: Acceptable
EMEA and APAC CGU Goodwill
US$478m
–
EMEA CGU Goodwill
–
US$409m
APAC CGU Goodwill
–
US$80m
Impairment charge
US$nil
US$179m
Description of the Key Audit Matter
Our response to the risk
Forecast based assessment:
The EMEA and APAC CGUs' estimated recoverable amount provides
relatively low headroom compared to the Group’s other CGUs where
there is significant headroom between the value-in-use and carrying
value of CGU assets.
The carrying value is sensitive to changes in key assumptions,
principally relating to short and long-term revenue growth, profit
margins and discount rates, which could have a material impact on
the carrying value of the associated goodwill.
The effect of these matters is that, as part of our risk assessment,
we determined that the recoverability of the EMEA and APAC
goodwill has a high degree of estimation uncertainty, with a potential
range of reasonable outcomes greater than our materiality for the
financial statements as a whole. The financial statements (note 20)
disclose the sensitivity estimated by the Group.
We performed the tests below rather than seeking to rely on any of the Group's controls
because the nature of the balance is such that we would expect to obtain audit evidence
primarily through the detailed procedures described.
Our procedures to address the risk included:
Assessing methodology:
We assessed whether the principles and integrity of the cash
flow model used to estimate their recoverable amounts is in accordance with the
relevant accounting standards;
Assessing impact of restructuring
: We assessed the impact of the restructuring in the
regions on the level at which the goodwill is allocated, monitored and the impairment
assessment performed;
Challenging growth assumptions:
We challenged the Group’s assumptions on revenue,
profit margins and long term growth rates by corroborating these where possible to
other sources of information, such as board-approved strategy plans, and external
sources;
Our valuation experience:
We critically assessed the appropriateness of the discount
rates applied through the use of our valuations specialists;
Sensitivity analysis
: We performed both breakeven and reasonably possible downside
sensitivity analysis on the key assumptions noted to identify sensitivity to potential
impairments;
Historical comparisons:
We evaluated the track record of historical assumptions used
against actual results achieved; and
Assessing transparency:
We assessed whether the Group’s disclosures about the
sensitivity of the outcome of the impairment assessment to a reasonably possible
change in key assumptions reflected the risks inherent in the valuation of goodwill.
Communications with Experian plc’s Audit Committee
Our discussions with and reporting to the Audit Committee included:
• Our audit approach as set out above, including not placing any reliance on controls and the involvement of our valuation specialists;
• Our conclusions from the procedures performed; and
• Our views on the disclosures included with respect to the sensitivity of the impairment conclusions to reasonably possible changes in assumptions.
Areas of particular auditor judgement
We identified the following as the areas of particular auditor judgement:
• The estimate is particularly sensitive to key assumptions in the impairment model including revenue growth rates, profit margins, long term growth rates and
discount rates and auditor judgement is required to assess whether the directors’ overall estimate falls within an acceptable range.
Our results
We found the Group’s conclusion that there is no impairment of goodwill for the EMEA and APAC group of CGUs to be acceptable (FY23 result: we found the
Group’s conclusion that there is no impairment of goodwill for the APAC CGU, and the goodwill balance and the related impairment charge recognised for the
EMEA CGU to be acceptable).
Further information in the Annual Report and Accounts: See the Audit Committee Report on page 131 for details on how the Audit Committee considered
impairment of goodwill as an area of significant attention, notes 5 and 6 for the accounting policy on goodwill, and note 20 for the financial disclosures.
Experian plc
Financial statements
168
4.2 Litigation and contingent liabilities (Group)
Financial Statement Elements
Our assessment of risk vs FY23
Our results
FY24
FY23
The industry that the Group operates in is subject to
increasingly complex legislation and regulators worldwide
are continuing to exercise high levels of scrutiny. We
therefore consider that the risk associated with litigation and
contingent liabilities as a whole continues to be heightened,
consistent with FY23.
FY24: Acceptable
FY23: Acceptable
Contingent liability disclosures
Note 45 disclosures
Description of the Key Audit Matter
Our response to the risk
Dispute outcome:
The Group operates in an industry with continuously high levels of
regulation and is subject to a number of pending and threatened
claims and regulatory actions. Those with significant judgement
involved include investigations by the US Consumer Financial
Protection Bureau (“CFPB”), the US Federal Trade Commission
(“FTC”), the UK Information Commissioner’s Office (“ICO”), the Dutch
Data Protection Authority (“AP”), the Brazilian tax authorities and
class action litigation matters in the USA alleging wilful misconduct
under the US Fair Credit Reporting Act.
We do not assess there to be a significant risk in relation to
estimation uncertainty for these matters as for all matters with
significant judgement an outflow is either not considered probable
at this stage, or if probable, cannot be reliably estimated.
However, there remains significant judgement around assessing
whether any outflow is probable and could be reliably estimated,
and if not the associated disclosures of contingent liabilities.
We performed the tests below rather than seeking to rely on any of the Group’s controls
because the nature of the area is such that we would expect to obtain audit evidence
primarily through the detailed procedures described.
Our procedures to address the risk included:
Enquiry of lawyers:
On all significant cases, where appropriate, we assessed
correspondence and enquired with the Group’s external lawyers to corroborate our
understanding of these matters, accompanied by discussions with the Group’s internal
counsel;
Challenging judgement:
We obtained detailed updates from the Group around
significant existing and potential claims and challenged the key judgements and
assumptions made in assessing whether a provision is required and/or whether a
contingent liability disclosure is required based on our knowledge of the Group and
experience of the industry in which it operates using our own legal and tax specialists
where applicable;
Historical comparisons:
We compared the outcomes of historical cases to current cases
with similar fact patterns; and
Assessing transparency:
We assessed whether the Group’s disclosures detailing
significant proceedings adequately disclose the potential liabilities of the Group.
Communications with Experian plc’s Audit Committee
Our discussions with and reporting to the Audit Committee included:
• Our audit approach as set out above, including not placing any reliance on controls and the involvement of our tax and legal specialists;
• Our conclusions from the procedures performed; and
• Our views on the contingent liability disclosures included with respect to the current cases.
Areas of particular auditor judgement
We identified the following as the areas of particular auditor judgement:
• The appropriateness of the contingent liability disclosures with respect to the current significant claims and regulatory actions referenced above and the
conclusion that no provision is required in respect of these matters.
Our results
We consider the contingent liability disclosures made to be acceptable (FY23 result: acceptable).
Further information in the Annual Report and Accounts: See the Audit Committee Report on page 131 for details on how the Audit Committee considered
litigation, tax and other regulatory matters as an area of significant attention, note 5 and 6 for the accounting policy on provisions and contingencies, and
Note 45 for the financial disclosures.
169
Experian plc
Annual Report 2024
Financial statements
Independent auditor’s report
continued
4.3 Recoverability of investments in subsidiaries (Parent Company)
Financial Statement Elements
Our assessment of risk vs FY23
Our results
FY24
FY23
Our assessment is that the risk of recoverability of the Parent
Company’s investments in subsidiaries remains consistent
with FY23.
FY24: Acceptable
FY23: Acceptable
Investments in subsidiaries
US$21,941.9m
US$20,609.6m
Impairment charge
US$nil
US$79.0m
Description of the Key Audit Matter
Our response to the risk
Low risk, high value:
The carrying amount of the Parent Company’s investments in
subsidiaries represents 99% (FY23: 99%) of the Parent Company’s
total assets.
Their recoverability is not at a high risk of significant misstatement
or subject to significant judgement. However, due to their materiality
in the context of the Parent Company financial statements, this is
considered to be the area that had the greatest effect on our overall
Parent Company audit.
We performed the tests below rather than seeking to rely on any of the Group's controls
because the nature of the balance is such that we would expect to obtain audit evidence
primarily through the detailed procedures described.
Our procedures to address the risk included:
Tests of detail:
We compared the carrying amount of 100% of investments in
subsidiaries with the relevant subsidiaries’ draft balance sheets to identify whether their
net assets, being an approximation of the minimum recoverable amount of the related
investments and amounts owed by subsidiary undertakings, were in excess of their
carrying amount, and assessing whether those subsidiaries have historically been
profit making.
Communications with Experian plc’s Audit Committee
Our discussions with and reporting to the Audit Committee included:
• Our audit approach as set out above, including not placing any reliance on controls; and
• Our conclusions from the procedures performed.
Areas of particular auditor judgement
We did not identify any areas of particular auditor judgement.
Our results
We found the balance of the Parent Company’s investments in subsidiaries to be acceptable (FY23 result: acceptable).
Further information in the Annual Report and Accounts: See note D for the accounting policy on investments in Group undertakings and note N for the
financial disclosures.
5. Our ability to detect irregularities, and our response
Fraud – identifying and responding to risks of material
misstatement due to fraud
Fraud risk assessment
To identify risks of material misstatement due to fraud (“fraud risks”) we
assessed events or conditions that could indicate an incentive or pressure to
commit fraud or provide an opportunity to commit fraud.
Our risk assessment procedures included:
• Enquiring of directors, the Audit Committee, Internal Audit and inspection of
policy documentation as to the Group’s high-level policies and procedures to
prevent and detect fraud, including the internal audit function, and the
Group’s channel for “whistleblowing”, as well as whether they have
knowledge of any actual, suspected or alleged fraud;
• Reading Board, Audit Committee, Remuneration Committee, Nomination and
Corporate Governance Committee minutes;
• Considering remuneration incentive schemes and performance targets for
management and directors including the targets for management
remuneration linked to the Co-investment Plans and Performance Share
Plan share incentive plans;
• Using analytical procedures to identify any unusual or unexpected
relationships; and
• Discussions among the engagement team regarding how and where fraud
might occur in the financial statements and any potential indicators of fraud.
The discussions also involved our forensic specialists to assist us in
identifying fraud risks based on discussions of the circumstances of the
Group and Company, including consideration of fraudulent schemes that had
arisen in similar sectors and industries. The forensic specialists participated
in the initial fraud risk assessment discussions.
Risk communications
We communicated identified fraud risks throughout the audit team and remained
alert to any indications of fraud throughout the audit. This included communication
from the Group audit team to full scope component audit teams of relevant fraud
risks identified at the Group level and a request to full scope component audit
teams to report to the Group audit team any instances of fraud that could give rise
to a material misstatement in the Group financial statements.
Fraud risks
As required by auditing standards, we perform procedures to address the risk
of management override of controls and the risk of fraudulent revenue
recognition, in particular inappropriate recognition of revenue within the
licences and professional services revenue stream and the risk that Group and
component management may make inappropriate accounting entries.
We did not identify any additional fraud risks.
Procedures to address fraud risks
We performed substantive audit procedures including:
• Identifying journal entries to test for all full scope components and central
entities based on risk criteria and comparing the identified entries to
supporting documentation. These included those posted to unusual account
pairings, journal entries without description, unexpected postings between
benchmark and non-benchmark that increase benchmark Earnings Before
Interest and Tax (“EBIT”) and journals posted by unexpected users.
• Assessing a sample of contracts within the licences and professional services
revenue stream, where the revenue recognised within these streams was
significant for full scope components (being North America and the UK).
• Assessing whether the judgements made in making accounting estimates
are indicative of a potential bias.
Work on the fraud risks was performed by a combination of component
auditors and the Group audit team.
Experian plc
Financial statements
170
Laws and regulations – identifying and responding to risks
of material misstatement relating to compliance with laws
and regulations
Laws and regulations risk assessment
We identified areas of laws and regulations that could reasonably be expected
to have a material effect on the financial statements from:
• Our general commercial and sector experience;
• Enquiries with the directors and other management (as required by auditing
standards);
• Inspection of the Group’s key regulatory and legal correspondence;
• Discussions with the directors and inspection of the policies and procedures
regarding compliance with laws and regulations; and
• Relevant discussions with the Group’s internal and external legal counsel.
Our risk assessment also considered instances of non-compliance with laws
and regulations and enforcement actions against the Group during the year
and specifically those that could reasonably be expected to have a material
effect on the financial statements.
As the Group is regulated, our assessment of risks involved gaining an
understanding of the control environment including the entity’s procedures for
complying with regulatory requirements.
Risk communications
We communicated identified laws and regulations throughout our team and
remained alert to any indications of non-compliance throughout the audit. This
included communication from the Group audit team to full scope component
audit teams of relevant laws and regulations identified at the Group level and
a request for full scope component auditors to report to the Group audit team
any instances of non-compliance with laws and regulations that could give
rise to a material misstatement in the Group financial statements.
Direct laws context and link to audit
The potential effect of these laws and regulations on the financial statements
varies considerably.
First, the Group is subject to laws and regulations that directly affect the
financial statements including:
• Financial reporting legislation (including related companies legislation);
• Distributable profits legislation;
• Taxation legislation; and
• Pension legislation
We assessed the extent of compliance with these laws and regulations as part
of our procedures on the related financial statement items.
Most significant indirect law/regulation areas
Secondly, the Group is subject to many other laws and regulations where the
consequences of non-compliance could have a material effect on amounts or
disclosures in the financial statements, for instance through the imposition of
fines or litigation.
We identified the following areas as those most likely to have such an effect:
• Data protection legislation;
• Health and safety legislation;
• Anti-bribery and corruption laws;
• Employment law; and
• Certain aspects of company legislation recognising the financial and
regulated nature of the Group’s activities.
Auditing standards limit the required audit procedures to identify non-
compliance with these laws and regulations to enquiry of the directors and other
management and inspection of regulatory and legal correspondence, if any.
Therefore, if a breach of operational regulations is not disclosed to us or evident
from relevant correspondence, an audit will not detect that breach.
Link to KAMs
Further detail in respect of litigations and contingent liabilities is set out in the
key audit matter disclosures in section 4.2 of this report.
Known actual or suspected matters
For the contingent liabilities disclosed in note 45 we assessed disclosures
against our understanding from legal correspondence and procedures
performed in response to the key audit matter set out in section 4.2.
Actual or suspected breaches discussed with the Audit Committee
We discussed with the Audit Committee other matters related to actual or
suspected breaches of laws or regulations, for which disclosure is not
necessary, and considered any implications for our audit.
Context
Context of the ability of the audit to detect fraud or breaches of law or
regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that
we may not have detected some material misstatements in the financial
statements, even though we have properly planned and performed our audit
in accordance with auditing standards. For example, the further removed
non-compliance with laws and regulations is from the events and transactions
reflected in the financial statements, the less likely the inherently limited
procedures required by auditing standards would identify it. In addition, as
with any audit, there remained a higher risk of non-detection of fraud, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal controls. Our audit procedures are designed to detect
material misstatement. We are not responsible for preventing non-compliance
or fraud and cannot be expected to detect non-compliance with all laws and
regulations.
171
Experian plc
Annual Report 2024
Financial statements
Independent auditor’s report
continued
6. Our determination of materiality
The scope of our audit was influenced by our application of materiality. We
set quantitative thresholds and overlay qualitative considerations to help
us determine the scope of our audit and the nature, timing and extent of
our procedures, and in evaluating the effect of misstatements, both
individually and in the aggregate, on the financial statements as a whole.
US$70m
(FY23: US$70m)
Materiality for the Group financial statements as a whole
What we mean
A quantitative reference for the purpose of planning and performing our audit.
Basis for determining materiality and judgements applied
Materiality for the Group financial statements as a whole was set at US$70m
(FY23: US$70m). This was determined with reference to a benchmark of
PBTCO.
Consistent with FY23, we determined that PBTCO remains the appropriate
benchmark for the Group considering the sector in which the Group operates,
its ownership and financing structure, and the focus of users of the financial
statements. No adjustments have been made in FY24 to this benchmark. In
FY23 we normalised this by adding back adjustments that do not represent
the normal, continuing operations. The items we adjusted for were the
significant impairment charge of goodwill (US$179m) and restructuring
charges associated with the significant programme (US$53m) as disclosed
in note 15. As such, we based our Group materiality on Group PBTCO of
US$1,551m (FY23: Normalised PBTCO of US$1,406m).
Our Group materiality of US$70m was determined by applying a percentage
to PBTCO. When using a benchmark of PBTCO to determine overall materiality,
KPMG’s approach for listed entities considers a guideline range of 3% – 5% of
the measure. In setting overall Group materiality, we applied a percentage of
4.5% (FY23: 5.0%) to the benchmark.
Materiality for the Parent Company financial statements as a whole was set
at US$25m (FY23: US$25m), determined with reference to a benchmark of
Parent Company total assets, of which it represents 0.1% (FY23: 0.1%).
In addition to representing 4.5% of PBTCO (FY23: 5.0% of normalised PBTCO), the overall materiality for the Group financial statements of US$70m (FY23:
US$70m) compares as follows to the main financial statement caption amounts:
Total Revenue
Total Assets
Net Assets
FY24
FY23
FY24
FY23
FY24
FY23
Financial statement caption
US$7,097m
US$6,619m
US$11,712m
US$10,864m
US$4,669m
US$3,964m
Group Materiality as % of caption
1.0%
1.1%
0.6%
0.6%
1.5%
1.8%
US$53m
(FY23: US$53m)
Performance materiality
What we mean
Our procedures on individual account balances and disclosures were
performed to a lower threshold, performance materiality, so as to reduce to
an acceptable level the risk that individually immaterial misstatements in
individual account balances add up to a material amount across the financial
statements as a whole.
Basis for determining performance materiality and judgments applied
We have considered performance materiality at a level of 75% (FY23: 75%)
of materiality for Experian plc’s Group financial statements as a whole to be
appropriate.
The Parent Company performance materiality was set at US$19m (FY23:
US$19m), which equates to 75% (FY23: 75%) of materiality for the Parent
Company financial statements as a whole.
We applied this percentage in our determination of performance materiality
because we did not identify any factors indicating an elevated level of risk.
US$3.5m
(FY23: US$3.5m)
Audit misstatement posting threshold
What we mean
This is the amount below which identified misstatements are considered to be
clearly trivial from a quantitative point of view. We may become aware of
misstatements below this threshold which could alter the nature, timing and
scope of our audit procedures, for example if we identify smaller
misstatements which are indicators of fraud.
This is also the amount above which all uncorrected misstatements identified
are communicated to Experian plc’s Audit Committee.
Basis for determining the audit misstatement posting threshold and
judgments applied
We set our audit misstatement posting threshold at 5% (FY23: 5%) of our
materiality for the Group financial statements. We also report to the Audit
Committee any other identified misstatements that warrant reporting on
qualitative grounds.
Experian plc
Financial statements
172
7. The scope of our audit
Group scope
What we mean
How the Group audit team determined the procedures to be performed across
the Group.
The Group has 204 (FY23: 198) reporting components. In order to determine
the work performed at the reporting component level, we identified those
components which we considered to be of individual financial significance,
those which were significant due to risk and those remaining components on
which we required procedures to be performed to provide us with the
evidence we required in order to conclude on the Group financial statements
as a whole.
We determined individually financially significant components as those
contributing at least 10% (FY23: 10%) of Group revenue or Group total assets.
We selected Group revenue and Group total assets because these are the
most representative of the relative size of the components. We identified three
(FY23: three) components as individually financially significant components
and full scope audits were performed on these components by component
auditors (KPMG member firms). The work on the Parent Company was
performed by the Group team.
The remaining 9% (FY23: 9%) of total Group revenue, 16% (FY23: 15%) of total
profits and losses that made up Group profit before tax and 8% (FY23: 10%) of
total Group assets is represented by 201 (FY23: 195) reporting components,
none of which individually represented more than 5% (FY23: 2%) of any of total
Group revenue, total profits and losses that made up Group profit before tax or
total Group assets. In addition, we have performed Group level analysis on the
remaining components to determine whether further risks of material
misstatement exist in those components.
The components within the scope of our work accounted for the percentages
included in Section 2 – Group scope. The materiality levels applied to the audit
of these components of Experian plc are set out below:
Scope
Number of components
Range of materiality
applied
Full scope audit
3 (FY23: 3)
US$21m – US$52m
(FY23: US$21m – US$52m)
The Group operates five shared service centres in the UK, Brazil, Malaysia,
Costa Rica and Bulgaria, the outputs of which are included in the financial
information of the reporting components they service and therefore they are
not separate reporting components. Each of the service centres is subject to
specified risk-focused audit procedures, predominantly the testing of
transaction processing and review controls.
The Group audit team also performed testing of general controls over IT
systems and automated process controls on behalf of the components
because of the use of one Group wide IT system in use at all in-scope
components. The Group team communicated the results of these procedures
to the component teams. The Group team also performed procedures on
treasury related balances because these operations are managed centrally.
The Group team instructed component auditors as to the significant areas to
be covered, including the relevant risks detailed above and the information to
be reported back. The Group team approved the component materiality levels,
as detailed in the table above, having regard to the mix of size and risk profile
of the Group across the components.
We were able to rely upon the Group's internal control over financial reporting
in several areas of our audit, where our controls testing supported this
approach, which enabled us to reduce the scope of our substantive audit work;
in the other areas the scope of the audit work performed was fully substantive.
Group audit team oversight
What we mean
The extent of the Group audit team’s involvement in component audits.
In working with component auditors, we:
• Held planning calls and visited all components in person to discuss the
significant areas of the audit relevant to the components, including the key
audit matters in respect of litigation and contingent liabilities.
• Issued Group audit instructions to component auditors on the scope of their
work, including specifying the minimum procedures to perform in their audit
of significant risk areas, including litigation and contingent liabilities,
management override of controls and revenue recognition.
• Held risk assessment update discussions with all component audit teams
before the commencement of the final phases of the audit led by the Group
engagement partner.
• Organised regular video conferences with the component teams as the audit
progressed to understand and challenge the audit approach. At these
meetings, the findings reported to the Group team were discussed in more
detail, and any further work required by the Group team was then performed
by the component audit teams.
• Inspected the component audit teams’ key work papers (using remote
technology capabilities) to evaluate the quality of execution of the audits of
the components, with a particular focus on work related to key audit matters
and significant risks.
173
Experian plc
Annual Report 2024
Financial statements
8. Other information in the Annual Report and Accounts
The directors are responsible for the other information presented in the Annual Report together with the financial statements. Our opinion on the
financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any
form of assurance conclusion thereon.
All other information
Our responsibility
Our responsibility is to read the other information and, in doing so, consider whether, based on our
financial statements audit work, the information therein is materially misstated or inconsistent with the
financial statements or our audit knowledge.
Our reporting
Based solely on that work we have not identified
material misstatements or inconsistencies in the
other information.
Report on Directors’ remuneration
Our responsibility
In addition to our audit of the financial statements, the directors have engaged us to audit the information in
the Report on Directors’ Remuneration that is described as having been audited, which the directors have
decided to prepare as if the Company were required to comply with the requirements of Schedule 8 to The
Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (S.I. 2008 No.
410) made under the UK Companies Act 2006.
Our reporting
In our opinion the part of the Report on Directors’
Remuneration to be audited has been properly
prepared in accordance with the UK Companies Act
2006, as if those requirements applied to the
Company.
Corporate governance disclosures
Our responsibility
We are required to perform procedures to identify whether there is a material inconsistency between the financial
statements and our audit knowledge, and:
• the directors’ statement that they consider that the annual report and financial statements taken as a
whole is fair, balanced and understandable, and provides the information necessary for shareholders to
assess the Group’s position and performance, business model and strategy;
• the section of the annual report describing the work of the Audit Committee, including the significant
issues that the Audit Committee considered in relation to the financial statements, and how these issues
were addressed; and
• the section of the annual report that describes the review of the effectiveness of the Group’s risk
management and internal control systems.
Our reporting
Based on those procedures, we have concluded
that each of these disclosures is materially
consistent with the financial statements and
our audit knowledge.
We are also required to review the part of the Corporate Governance Report relating to the Group’s
compliance with the provisions of the UK Corporate Governance Code specified by the Listing Rules for our
review.
We have nothing to report in this respect.
Other matters on which we are required to report by exception
Our responsibility
Under the Companies (Jersey) Law 1991, we are required to report to you if, in our opinion:
• proper accounting records have not been kept by the Parent Company, or proper returns adequate for
our audit have not been received from branches not visited by us; or
• the Parent Company financial statements are not in agreement with the accounting records and returns;
or
• we have not received all the information and explanations we require for our audit.
Our reporting
We have nothing to report in these respects.
Independent auditor’s report
continued
Experian plc
Financial statements
174
9. Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page 162 the
directors are responsible for: the preparation of the financial statements
including being satisfied that they give a true and fair view; such internal
control as they determine is necessary to enable the preparation of
financial statements that are free from material misstatement, whether
due to fraud or error; assessing the Group and Parent Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to
going concern; and using the going concern basis of accounting unless
they either intend to liquidate the Group or the Parent Company or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue our opinion in an auditor’s
report. Reasonable assurance is a high level of assurance, but does not
guarantee that an audit conducted in accordance with ISAs (UK) will
always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in
aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website
at
frc.org.uk/auditorsresponsibilities
.
The Company will be including these financial statements in an annual
financial report prepared under Disclosure Guidance and Transparency
Rules (“DTR”) 4.1.17R and 4.1.18R. This auditor’s report provides no
assurance over whether the annual financial report has been prepared in
accordance with that format.
10. The purpose of our audit work and to whom we owe
our responsibilities
This report is made solely to the Company’s members, as a body, in
accordance with Article 113A of the Companies (Jersey) Law 1991 and
the terms of engagement by the Company. Our audit work has been
undertaken so that we might state to the Company’s members those
matters we are required to state to them in an auditor’s report, and the
further matters we are required to state to them in accordance with the
terms agreed with the Company, and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company’s members, as a body,
for our audit work, for this report, or for the opinions we have formed.
Zulfikar Walji (Senior Statutory Auditor)
for and on behalf of KPMG LLP
Chartered Accountants and Recognized Auditor
15 Canada Square
London
E14 5GL
United Kingdom
14 May 2024
175
Experian plc
Annual Report 2024
Financial statements
Notes
2024
2023
Benchmark
1
US$m
Non-
benchmark
2
US$m
Total
US$m
Benchmark
1
US$m
Non-
benchmark
2
US$m
Total
US$m
Revenue
9, 10
Labour costs
12(a)
(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
13
(521 )
(193 )
(714 )
(482 )
(192 )
(674 )
Marketing and customer acquisition costs
(539 )
(539 )
(570 )
(570 )
Other operating charges
15(a)
(441 )
(27 )
(468 )
(363 )
(296 )
(659 )
Total operating expenses
(5,169 )
(234 )
(5,403 )
(4,826 )
(528 )
(5,354 )
Operating profit/(loss)
(234 )
(528 )
Finance income
Finance expense
(157 )
(3 )
(160 )
(137 )
(137 )
Net finance (expense)/income
16
(139 )
(3 )
(142 )
(124 )
(74 )
Share of post-tax (loss)/profit of associates
(1 )
(1 )
(18 )
(17 )
Profit/(loss) before tax
10
(238 )
(496 )
Tax (charge)/credit
17
(459 )
(348 )
(434 )
(401 )
Profit/(loss) for the financial year
(127 )
(463 )
Attributable to:
Owners of Experian plc
(129 )
(465 )
Non-controlling interests
Profit/(loss) for the financial year
(127 )
(463 )
Total Benchmark EBIT
1
10(a)(i)
Notes
US cents
US cents
US cents
US cents
Earnings per share
Basic
18(a)
Diluted
18(a)
Full-year dividend per share
1
19
1
Total Benchmark EBIT and Full-year dividend per share are non-GAAP measures, defined in note 7.
2
The loss before tax for non-benchmark items of US$238 m (2023: US$496 m) comprises a net credit for Exceptional items of US$4 m (2023: charge of US$66 m) and net charges for other adjustments made to
derive Benchmark PBT of US$242 m (2023: US$430 m). Further information is given in note 15.
Group income statement
for the year ended 31 March 2024
Experian plc
Financial statements
176
2024
US$m
2023
US$m
Profit for the financial year
Other comprehensive income/(expense)
Items that will not be reclassified to profit or loss:
Remeasurement of post-employment benefit assets and obligations (note 35(b))
(23 )
Changes in the fair value of investments revalued through OCI
(87 )
(58 )
Deferred tax credit
Items that will not be reclassified to profit or loss
(78 )
(76 )
Items that are or may be reclassified subsequently to profit or loss:
Currency translation gains/(losses)
(203 )
Fair value gain/(loss) on cash flow hedge
(38 )
Hedging (gain)/loss reclassified to profit or loss
(10 )
Items that are or may be reclassified subsequently to profit or loss
(211 )
Other comprehensive expense for the financial year
1
(34 )
(287 )
Total comprehensive income for the financial year
Attributable to:
Owners of Experian plc
Non-controlling interests
(3 )
Total comprehensive income for the financial year
1
There is no associated tax on amounts reported within Other comprehensive income (OCI), except as reported for post-employment benefit assets and obligations and changes in the fair value of investments
revalued through OCI. Currency translation items, not reclassified to profit or loss, are recognised in the hedging or translation reserve within other reserves and in non-controlling interests. Other items within OCI
are recognised in retained earnings.
Group statement of comprehensive income
for the year ended 31 March 2024
177
Experian plc
Annual Report 2024
Financial statements
Notes
2024
US$m
2023
US$m
Non-current assets
Goodwill
20
Other intangible assets
21
Property, plant and equipment
22
Investments in associates
23
Deferred tax assets
36(a)
Post-employment benefit assets
35(a)
Trade and other receivables
24(a)
Financial assets revalued through OCI
30(a)
Other financial assets
30(b)
Current assets
Trade and other receivables
24(a)
Current tax assets
36(b)
Other financial assets
30(b)
Cash and cash equivalents – excluding bank overdrafts
25(a)
Assets classified as held-for-sale
43
Current liabilities
Trade and other payables
26(a)
(2,036 )
(1,955 )
Borrowings
27(a)
(772 )
(156 )
Current tax liabilities
36(b)
(83 )
(135 )
Provisions
37
(28 )
(56 )
Other financial liabilities
30(b)
(44 )
(6 )
(2,963 )
(2,308 )
Liabilities classified as held-for-sale
43
(3 )
(2,963 )
(2,311 )
Net current liabilities
(885 )
(517 )
Total assets less current liabilities
Non-current liabilities
Trade and other payables
26(a)
(190 )
(186 )
Borrowings
27(a)
(3,494 )
(3,943 )
Deferred tax liabilities
36(a)
(129 )
(223 )
Post-employment benefit obligations
35(a)
(39 )
(39 )
Provisions
37
(3 )
(3 )
Financial liabilities revalued through OCI
30(a)
(10 )
(24 )
Other financial liabilities
30(b)
(215 )
(171 )
(4,080 )
(4,589 )
Net assets
Equity
Called-up share capital
38
Share premium account
38
Retained earnings
39(a)
Other reserves
39(b)
(18,437 )
(18,413 )
Attributable to owners of Experian plc
Non-controlling interests
Total equity
Craig Boundy
Group balance sheet
at 31 March 2024
Experian plc
Financial statements
178
Called-up
share
capital
(Note 38)
US$m
Share
premium
account
(Note 38)
US$m
Retained
earnings
(Note 39)
US$m
Other
reserves
(Note 39)
US$m
Attributable
to owners of
Experian plc
US$m
Non-
controlling
interests
US$m
Total
equity
US$m
At 1 April 2022
(18,064 )
Comprehensive income:
Profit for the financial year
Other comprehensive expense for the financial year
(76 )
(205 )
(281 )
(6 )
(287 )
Total comprehensive income/(expense)
(205 )
(3 )
Transactions with owners:
Employee share incentive plans:
– value of employee services
– shares issued on vesting
– purchase of shares by employee trusts
(45 )
(45 )
(45 )
– other vesting of awards and exercises of share options
(36 )
– 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 )
Dividends paid
(482 )
(482 )
(1 )
(483 )
Transactions with owners
(404 )
(144 )
(529 )
(529 )
At 31 March 2023
(18,413 )
Group statement of changes in equity
for the year ended 31 March 2024
Called-up
share
capital
(Note 38)
US$m
Share
premium
account
(Note 38)
US$m
Retained
earnings
(Note 39)
US$m
Other
reserves
(Note 39)
US$m
Attributable
to owners of
Experian plc
US$m
Non-
controlling
interests
US$m
Total
equity
US$m
At 1 April 2023
(18,413 )
Comprehensive income:
Profit for the financial year
Other comprehensive (expense)/income for the financial year
(78 )
(32 )
(2 )
(34 )
Total comprehensive income
Transactions with owners:
Employee share incentive plans:
– value of employee services
– shares issued on vesting
– purchase of shares by employee trusts
(56 )
(56 )
(56 )
– other vesting of awards and exercises of share options
(43 )
– related tax credit
– other payments
(4 )
(4 )
(4 )
Purchase of shares held as treasury shares
(69 )
(69 )
(69 )
Transactions with non-controlling interests
(1 )
Dividends paid
(509 )
(509 )
(1 )
(510 )
Transactions with owners
(413 )
(70 )
(462 )
(2 )
(464 )
At 31 March 2024
(18,437 )
179
Experian plc
Annual Report 2024
Financial statements
Notes
2024
US$m
2023
US$m
Cash flows from operating activities
Cash generated from operations
40(a)
Interest paid
(160 )
(126 )
Interest received
Dividends received from associates
Tax paid
(544 )
(525 )
Net cash inflow from operating activities
Cash flows from investing activities
Purchase of other intangible assets
40(c)
(600 )
(563 )
Purchase of property, plant and equipment
(40 )
(64 )
Disposal of property, plant and equipment
Disposal of assets classified as held-for-sale
Purchase of other financial assets
(11 )
(15 )
Disposal of other financial assets
Acquisition of subsidiaries, net of cash acquired
40(d)
(462 )
(309 )
Disposal of operations
42
(1 )
Disposal of investment in associate
15(c)
Net cash flows used in investing activities
(1,099 )
(948 )
Cash flows from financing activities
Cash inflow in respect of shares issued
40(e)
Cash outflow in respect of share purchases
40(e)
(120 )
(194 )
Other payments on vesting of share awards
(4 )
(5 )
Settlement of put options held over shares in subsidiaries
40(d)
(133 )
New borrowings
1
Repayment of borrowings
(7 )
(1 )
Movements in short-term commercial paper
1
Principal lease payments
(48 )
(57 )
Net receipts/(payments) for derivative contracts
(61 )
Dividends paid
(510 )
(483 )
Net cash flows used in financing activities
(551 )
(722 )
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 April
Exchange movements on cash and cash equivalents
(25 )
Cash and cash equivalents at 31 March
40(f)
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.
Group cash flow statement
for the year ended 31 March 2024
Experian plc
Financial statements
180
Experian plc
Annual Report 2024
181
Notes to the Group financial statements
for the year ended 31 March 2024
Financial statements
Experian group of companies (Experian or the Group). Experian is the
The Company is incorporated and registered in Jersey as a public
registered office is at 22 Grenville Street, St Helier, Jersey
London Stock Exchange’s Regulated Market and have a Premium Listing.
The Group financial statements are:
• 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
• 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
• prepared using the principal exchange rates set out in note 11
• designed to voluntarily include disclosures in line with those parts of the
UK Companies Act 2006 applicable to companies reporting under that
law.
There has been no change in the basis of preparation of the Group
financial statements since the Annual Report for the year ended
The use of critical accounting estimates and management judgment is
required in applying the accounting policies. Areas involving a higher
degree of judgment or complexity, or where assumptions and estimates
In adopting the going concern basis for preparing these financial
statements, the directors have considered the business activities, the
principal risks and uncertainties and the other matters discussed in
connection with the Viability statement.
At 31 March 2024, the Group had undrawn committed bank borrowing
facilities of US$2.4bn (2023: US$2.4.bn) which have an average remaining
tenor of four years (2023: three years).
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
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 following climate change considerations have been made in
preparing the Group financial statements:
• The impact in the going concern period or on the viability of the Group
over the next three years, as referenced in the Strategic report.
• The impact on factors such as residual values, useful lives and
depreciation methods that determine the carrying value of non-current
assets (notes 20 to 22).
• The impact on forecasts of cash flows used in impairment assessments
for the value-in-use of non-current assets including goodwill (notes 20 to
22).
• The impact on forecasts of cash flows used in the fair value
measurement of assets and liabilities (note 31).
• The impact on post-employment benefit assets (note 35).
At present, there is no material impact of climate-related matters on the
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.
Experian plc
Financial statements
182
Notes to the Group financial statements
continued
4. Recent accounting developments continued
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
The material accounting policies applied are summarised below. They
have been applied consistently to both years presented. The explanations
of these policies focus on areas where judgment is applied or which are
particularly important in the financial statements. For ease of reference,
the content within this note is arranged as follows:
• sections (a) to (d) – content that applies generally to the preparation of
these financial statements
• sections (e) to (p) – balance sheet policies, to be read in conjunction with
specific notes as indicated
• sections (q) to (w) – income statement policies, to be read in conjunction
with specific notes as indicated
• section (x) – the policy and presentation principles adopted for disclosing
segment information, in accordance with IFRS 8 ‘Operating Segments’.
The Group financial statements incorporate the financial statements
of the Company and its subsidiary undertakings.
Subsidiaries are fully consolidated from the date on which control is
transferred to the Group and cease to be consolidated from the date that
the Group no longer has control. All business combinations are accounted
for using the acquisition method.
Intra-Group transactions, balances and unrealised gains on transactions
between Group companies are eliminated on consolidation. Unrealised
losses are also eliminated unless the transaction provides evidence
of an impairment of the asset transferred.
Accounting policies of subsidiaries and segments are consistent with
the policies adopted by the Group for the purposes of the Group’s
consolidation. The Group financial statements incorporate the financial
statements of the Company and its subsidiary undertakings for the year
ended 31 March 2024. A full list of subsidiary undertakings is given in
Interests in associates are accounted for using the equity method.
They are initially recognised at cost, which includes transaction costs.
Subsequent to initial recognition, the Group financial statements include
the Group’s share of the profit or loss and other comprehensive income of
equity-accounted investees, until the date on which significant influence
ceases. Gains or losses on disposal are recognised within operating profit.
Investments in associates are assessed for possible impairment when
triggers are identified that could have an impact on future cash flows
received from the associate. Any resulting adjustments to the carrying
The non-controlling interests in the Group balance sheet represent the
share of net assets of subsidiary undertakings held outside the Group.
The movement in the year comprises the profit attributable to such
interests together with any dividends paid, movements in respect of
corporate transactions and related exchange differences.
The Group treats transactions with non-controlling interests that do not
result in a loss of control as transactions with equity owners of the Group.
For purchases from non-controlling interests, the difference between any
consideration paid and the relevant share acquired of the carrying value
of the net assets of the subsidiary is recorded in equity. Gains or losses
on disposals to non-controlling interests are also recorded in equity.
Where put option agreements are in place in respect of shares held by
non-controlling shareholders, the liability is stated at the present value
of the expected future payments. Such liabilities are shown as financial
liabilities in the Group balance sheet. The change in the value of such
options in the year is recognised in the Group income statement within net
finance costs, while any change in that value attributable to exchange rate
movements is recognised directly in Other comprehensive income (OCI).
Where put option agreements are in place the Group adopts the
‘anticipated acquisition’ approach, recording the other side of the put
liability against goodwill, with no subsequent profits attributed to
Transactions and balances
Transactions in foreign currencies are recorded in the functional currency
of the relevant Group undertaking at the exchange rate prevailing on the
date of the transaction. At each balance sheet date, monetary assets and
liabilities denominated in foreign currencies are retranslated at the
exchange rate prevailing at the balance sheet date. Translation differences
on monetary items are taken to the Group income statement except when
recognised in OCI, as qualifying net investment hedges or cash flow
hedges. Translation differences on non-monetary financial assets
revalued through OCI are reported as part of the fair value gains or
losses in OCI.
Group undertakings
The results and financial position of Group undertakings whose functional
currencies are not the US dollar are translated into US dollars as follows:
• Income and expenses are generally translated at the average exchange
rate for the year. Where this average is not a reasonable approximation
of the cumulative effect of the rates prevailing on the transaction dates,
income and expenses are translated at the rates on the dates of the
transactions.
• Assets and liabilities are translated at the closing exchange rate
on the balance sheet date.
• All resulting exchange differences are recognised in OCI and as
a separate component of equity.
On consolidation, exchange differences arising from the translation of the
net investment in Group undertakings whose functional currencies are
not the US dollar, and of borrowings and other currency instruments
designated as hedges of such investments, are recognised in OCI to the
extent that such hedges are effective. Tax attributable to those exchange
differences is taken directly to OCI. When such undertakings are sold,
these exchange differences are recognised in the Group income
statement as part of the gain or loss on sale. Goodwill and fair value
adjustments arising on the acquisition of such undertakings are treated
as assets and liabilities of the entities and are translated into US dollars
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
Experian plc
Annual Report 2024
183
5. Material accounting policies continued
Financial statements
Assets that are not subject to amortisation or depreciation are tested
annually for impairment. Assets that are subject to amortisation or
depreciation are reviewed for impairment when there is an indication
that the carrying amount may not be recoverable. Climate-related matters
are considered to identify whether any are an indicator of impairment.
An impairment charge is recognised for the amount by which an asset’s
carrying amount exceeds its recoverable amount, which is the higher
of an asset’s fair value less costs of disposal and value-in-use. For the
purposes of assessing impairment, assets are grouped into cash
generating units (CGUs), determined by the lowest levels for which
Goodwill is stated at cost less any accumulated impairment, where cost is
the excess of the fair value of the consideration payable for an acquisition
over the fair value at the date of acquisition of the Group’s share of
identifiable net assets of a subsidiary or associate acquired. Fair values
are attributed to the identifiable assets, liabilities and contingent liabilities
that existed at the date of acquisition, reflecting their condition at that
date. Adjustments are made where necessary to align the accounting
policies of acquired businesses with those of the Group. Goodwill is not
amortised but is tested annually for impairment, or more frequently if
there is an indication that it may be impaired. An impairment charge is
recognised in the Group income statement for any amount by which the
Goodwill is allocated to CGUs and monitored for internal management
purposes by operating segment. The allocation is made to those CGUs or
groups of CGUs that are expected to benefit from the business
combination in which the goodwill arose.
Gains and losses on the disposal of an undertaking take account of the
carrying amount of goodwill relating to the undertaking sold, allocated
where necessary on the basis of relative fair value, unless another
Intangible assets acquired as part of a business combination are
capitalised on acquisition at fair value and separately from goodwill,
if those assets are identifiable (separable or arising from legal rights).
Such assets are referred to as acquisition intangibles in these financial
statements. Amortisation is charged on a straight-line basis as follows:
• Customer and other relationships – over three to 20 years, based on
management’s estimates of the average lives of such relationships,
and reflecting their long-term nature.
• Acquired software development – over three to ten years, based on
the asset’s expected life.
• Marketing-related assets (trademarks and licences) – over their
contractual lives, up to a maximum of 20 years.
• Marketing-related assets (trade names) – over one to 15 years, based on
Other intangibles
Other intangibles are capitalised at cost. Certain costs incurred in the
developmental phase of an internal project are capitalised provided that
a number of criteria are satisfied. These include the technical feasibility of
completing the asset so that it is available for use or sale, the availability
of adequate resources to complete the development and to use or sell the
asset, and how the asset will generate probable future economic benefit.
The cost of such assets with finite useful economic or contractual lives is
amortised on a straight-line basis over those lives. The carrying values
are reviewed for impairment when events or changes in circumstances
indicate that the carrying values may not be recoverable. If impaired, the
carrying values are written down to the higher of fair value less costs
of disposal and value-in-use, which is determined by reference to
projected future income streams using assumptions in respect of
profitability and growth.
Further details on the capitalisation and amortisation policy for the key
asset classifications within other intangibles are:
• Databases – capitalised databases, which comprise the data purchase
and capture costs of internally developed databases, are amortised over
three to seven years.
• Computer software (internal use) – computer software licences
purchased for internal use are capitalised on the basis of the costs
incurred to purchase and bring into use the specific software. These
costs are amortised over three to ten years.
• Computer software (internally generated) – costs directly associated
with producing identifiable and unique software products controlled by
the Group, and that will generate economic benefits beyond one year, are
recognised as intangible assets. These costs are amortised over three to
ten years.
maintaining computer software programs or databases, and configuration
and customisation costs incurred in Software as a Service (SaaS)
Purchased items of property, plant and equipment are held at cost less
accumulated depreciation and any impairment in value. Cost includes the
original purchase price of the asset and amounts attributable to bringing
the asset to its working condition for its intended use.
• Freehold properties – over 50 years.
• Leasehold improvements to short leasehold properties – over the
remaining period of the lease.
• Plant and equipment – over three to ten years, according to the asset’s
estimated useful life. Technology-based assets are typically depreciated
over three to five years, motor vehicles over four to five years, with other
The Group has reviewed the useful lives of its data centres and main plant
and equipment assets to determine if any are affected by climate-related
matters or the commitment to become carbon neutral in our own
Trade receivables and contract assets are initially recognised at fair value
and subsequently measured at this value less loss allowances. Where the
time value of money is material, receivables are then carried at amortised
cost using the effective interest method, less loss allowances.
credit loss approach. Expected credit losses are determined using a
combination of historical experience and forward-looking information.
Impairment losses or credits in respect of trade receivables and contract
assets are recognised in the Group income statement, within other
Experian plc
Financial statements
184
Notes to the Group financial statements
continued
5. Material accounting policies continued
Cash and cash equivalents include cash in hand, term and call deposits
held with banks and other short-term, highly liquid investments with
original maturities of three months or less. Bank overdrafts are shown
within borrowings in current liabilities in the Group balance sheet. For the
purposes of the Group cash flow statement, cash and cash equivalents
We classify our financial assets into the following measurement
categories, with the classification determined on initial recognition
and dependent on the purpose for which such assets are acquired:
• those subsequently measured at fair value (either through OCI or
through profit or loss), and
• those measured at amortised cost.
carried at ‘fair value through profit or loss’ (FVPL) and added to the fair
entirety when determining whether their cash flows are solely a payment
Debt instruments
Measurement of debt instruments depends on the Group’s business
model for managing the asset and the cash flow characteristics of the
asset. There are three measurement categories into which the Group
classifies debt instruments:
• Amortised cost: Assets that are held for collection of contractual cash
flows, where those cash flows are solely repayments of principal and
interest, are measured at amortised cost. Interest income from these
financial assets is recognised using the effective interest method. Any
impairment or gain or loss on derecognition is recognised directly in the
Group income statement.
held both for the collection of contractual cash flows and for their sale,
where the asset’s cash flows solely represent payments of principal and
interest, are measured at FVOCI. Movements in the carrying amount are
taken through OCI, however recognition of impairment gains or losses,
interest income and foreign exchange gains or losses are recognised in
the Group income statement.
are measured at FVPL. A gain or loss on a debt instrument that is
subsequently measured at FVPL is recognised in the Group income
statement and presented net within other gains or losses in the period in
Equity instruments
We measure all equity instruments at fair value. Where we have elected to
present fair value gains or losses on equity investments in OCI, there is no
subsequent reclassification of fair value gains or losses to the Group
income statement following the derecognition of the investment.
Dividends from such investments are normally recognised as other
income when the Group’s right to receive payments is established.
and reversals of impairment losses, on equity investments measured at
Impairment
The loss allowances for financial assets are based on assumptions about
significant increases in credit risk and subsequent risk of default. We use
judgment in making these assumptions and selecting the inputs to the
impairment calculation, based on the Group’s history, existing market
conditions and forward-looking estimates at the end of each reporting
the effective interest method or at FVPL. Financial liabilities are classified
at FVPL when the financial liability is held for trading, it is a derivative or it
is designated at FVPL on initial recognition. Financial liabilities at FVPL are
measured at fair value, with any net gains or losses arising on changes in
fair value, including any interest expense, recognised in the Group income
Other financial liabilities are subsequently measured at amortised cost
using the effective interest method. Interest expense, foreign exchange
gains and losses and any gain or loss on derecognition are recognised in
the Group income statement.
The effective interest method is a method of calculating the amortised
cost of a financial liability and of allocating interest expense over the
relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments, including all fees that form an
integral part of the effective interest rate, transaction costs and other
The Group uses derivative financial instruments to manage its exposures
to fluctuations in foreign exchange rates, interest rates and certain
obligations relating to share incentive plans, including social security
obligations. Instruments used include interest rate swaps, cross-currency
swaps, foreign exchange contracts and equity swaps. These are
recognised as assets or liabilities as appropriate and are classified as
non-current, unless they mature within one year of the balance sheet
date.
Derivatives are initially recognised at their fair value on the date the
contract is entered into, and are subsequently remeasured at their fair
value. The method of recognising the resulting gain or loss depends on
whether the derivative is designated as a hedging instrument and, if so,
the nature of the hedge relationship.
The Group designates certain derivatives as either fair value hedges or
cash flow hedges. Fair value hedges are hedges of the fair value of a
recognised asset or liability. Cash flow hedges are hedges of highly
probable future foreign currency cash flows. The Group does not currently
enter into net investment hedges.
We document the relationship between hedging instruments and hedged
items, and our risk management objective and strategy for undertaking
hedge transactions, at the hedge inception. We also document our
assessment of whether the derivatives used in hedging meet the hedge
effectiveness criteria set out in IFRS 9. This assessment is performed at
every reporting date throughout the life of the hedge to confirm that the
hedge continues to meet the hedge effectiveness criteria. Hedge
accounting is discontinued when the hedging instrument expires, is sold,
terminated or exercised, or no longer qualifies for hedge accounting.
Amounts payable or receivable in respect of interest rate swaps, together
with the interest differentials reflected in foreign exchange contracts, are
recognised in net finance costs over the period of the contract.
Changes in the fair value of derivatives that are designated and qualify as
fair value hedging instruments are recognised in the Group income
statement, together with any changes in the fair value of the hedged asset
or liability that are attributable to the hedged risk. The ineffective portion
Experian plc
Annual Report 2024
185
5. Material accounting policies continued
Financial statements
of a fair value hedge is recognised in net finance costs in the Group
income statement.
The effective portion of changes in the fair value of derivatives that are
designated and qualify as cash flow hedging instruments is recognised in
OCI, while any ineffective part is recognised in the Group income
statement. Amounts recorded in OCI are recycled to the Group income
statement in the same period in which the underlying foreign currency
Changes in the fair value of derivative instruments which are used to
manage exposures, but are not part of a documented hedge relationship
under IFRS 9, are recognised immediately in the Group income statement.
Cost and income amounts in respect of derivatives entered into in
connection with social security obligations on employee share incentive
plans, other than amounts of a financing nature, are charged or credited
within labour costs. Other costs and changes in the fair value of such
derivatives are charged or credited within financing fair value
Trade payables and contract liabilities are recognised initially at fair value.
Where the time value of money is material, payables and contract
liabilities are then carried at amortised cost using the effective interest
Borrowings are recognised initially at fair value, net of any transaction
costs incurred. Borrowings are subsequently stated at amortised cost,
except where they are hedged by an effective fair value hedge, in which
case the carrying value is adjusted to reflect the fair value movements
associated with the hedged risk.
Borrowings are classified as non-current to the extent that the Group has
an unconditional right to defer settlement of the liability for at least one
The Group undertakes an assessment of whether a contract is or contains
a lease at its inception. The assessment establishes whether the Group
obtains substantially all the economic benefits from the use of an asset
and whether we have the right to direct its use.
Low-value lease payments are recognised as an expense, on a
straight-line basis over the lease term. For other leases we recognise both
a right-of-use asset and a lease liability at the commencement date of a
lease contract.
The right-of-use asset is initially measured at cost, comprising the initial
amount of the lease liability adjusted for payments made at or before the
commencement date, plus initial direct costs and an estimate of the cost
of any obligation to refurbish the asset or site, less lease incentives.
Subsequently, right-of-use assets are measured at cost less accumulated
depreciation and impairment losses and are adjusted for any
remeasurement of the lease liability. Depreciation is calculated on a
straight-line basis over the shorter of the lease period or the estimated
useful life of the right-of-use asset, which is determined on a basis
The lease term comprises the non-cancellable period of a lease, plus
periods covered by an extension option, if it is reasonably certain to be
exercised, and periods covered by a termination option if it is reasonably
certain not to be exercised.
The lease liability is initially measured at the present value of lease
payments that are outstanding at the commencement date, discounted
at the interest rate implicit in the lease or, if that rate cannot be easily
determined, the Group’s incremental borrowing rate.
Lease payments comprise payments of fixed principal, less any lease
incentives, variable elements linked to an index, guaranteed residuals or
buyout options that are reasonably certain to be exercised. They include
payments in respect of optional renewal periods where these are
reasonably certain to be exercised or early termination payments where
the lease term reflects such an option.
The lease liability is remeasured when there is a change in future lease
payments arising from a change in an index or rate, if there is a change in
the Group’s estimate of the amount expected to be payable under a
residual value guarantee, or if the Group changes its assessment of
whether it will exercise a purchase, extension or termination option.
When a lease liability is remeasured, a corresponding adjustment is made
to the carrying amount of the right-of-use asset or is recognised in the
Group income statement if the asset is fully depreciated.
The Group presents right-of-use assets within property, plant and
equipment and lease obligations within borrowings in the Group balance
Defined benefit pension arrangements – funded plans
The post-employment benefit assets and obligations recognised in the
Group balance sheet in respect of funded plans comprise the fair value of
plan assets of funded plans less the present value of the related defined
benefit obligation at that date. The defined benefit obligation is calculated
annually by independent qualified actuaries, using the projected unit
credit method.
The present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows, using market yields on
high-quality corporate pound sterling bonds with maturity terms
consistent with the estimated average term of the related pension liability.
Actuarial gains and losses arising from experience adjustments, and
changes in actuarial assumptions, are recognised immediately in the
Group statement of comprehensive income.
The pension cost recognised in the Group income statement comprises
the cost of benefits accrued plus interest on the opening net defined
benefit asset or obligation. Service costs and financing income and
expenses are recognised separately in the Group income statement.
Plan expenses are deducted from the expected return on the plan assets
over the year.
Defined contribution pension arrangements
The assets of defined contribution plans are held separately in
independently administered funds. The pension cost recognised in the
Group income statement represents the contributions payable by the
A contingent liability is disclosed where the likelihood of a loss arising is
possible rather than probable. A provision is recognised when it is probable
that an outflow of resources will be required to settle an obligation, and a
reliable estimate can be made of the amount.
The provision is measured at the best estimate of the expenditure required
to settle the obligation at the reporting date, discounted at a pre-tax rate
reflecting current market assessments of the time value of money and
risks specific to the liability. The unwinding of the discount is recognised as
a finance expense in the Group income statement. In making its estimates,
Experian plc
Financial statements
186
Notes to the Group financial statements
continued
5. Material accounting policies continued
The Group has a number of equity-settled, share-based employee
incentive plans. In connection with these, shares in the Company are held
by The Experian plc Employee Share Trust and the Experian UK Approved
All-Employee Share Plan. The assets of these entities mainly comprise
Experian plc shares, which are shown as a deduction from equity at cost.
Shares in the Company purchased and held as treasury shares, in
connection with the above plans and any share purchase programme, are
also shown as a deduction from equity at cost. The par value of shares in
the Company that are purchased and cancelled, in connection with any
share purchase programme, is accounted for as a reduction in called-up
share capital with any cost in excess of that amount being deducted from
Revenue is stated net of any sales taxes, rebates and discounts and
reflects the amount of consideration we expect to receive in exchange for
the transfer of promised goods and services.
Total consideration from contracts with customers is allocated to the
performance obligations identified based on their standalone selling price,
and is recognised when those performance obligations are satisfied and
the control of goods or services is transferred to the customer, either over
time or at a point in time.
Total consideration only includes variable consideration if it is highly
probable a significant reversal will not occur. Estimates of variable
consideration are not typically included within recognised revenue, as the
uncertainty surrounding variable consideration is normally resolved once
the performance obligation is satisfied or begins to be satisfied.
Inflationary increases based on external indices are treated as variable
consideration and only recognised when they become certain.
• The provision and processing of transactional data is distinguished
between contracts that:
–provide a service on a per unit basis, where the transfer to the
customer of each completed unit is considered satisfaction of a single
performance obligation. Revenue is recognised on the transfer of each
unit
– provide a service to the customer over the contractual term, normally
between one and five years, where revenue is recognised on the
transfer of this service to customers. For the majority of contracts this
means revenue is spread evenly over the contract term, as customers
simultaneously receive and consume the benefits of the service
–require an enhanced service at the start, where revenue is recognised
to reflect the upfront benefit the customer receives and consumes.
Revenue for such contracts is recognised proportionally in line with the
costs of providing the service.
• Revenue from referral fees for credit products and white-label
partnerships is recognised as transactional revenue.
• Revenue from transactional batch data arrangements that include an
ongoing update service is apportioned across each delivery to the
customer and is recognised when the delivery is complete, and control
of the batch data passes to the customer. Performance obligations are
determined based on the frequency of data refresh: one-off, quarterly,
monthly, or real-time.
• Subscription and membership fees for continuous access to a service
are recognised over the period to which they relate, usually 1, 12 or 24
months. Customers simultaneously receive and consume the benefits of
the service; therefore, revenue is recognised evenly over the
subscription or membership term.
• Revenue for one-off credit reports is recognised when the report is
delivered to the consumer.
• Software licence and implementation services are primarily accounted
for as a single performance obligation, with revenue recognised when
the combined offering is delivered to the customer. Contract terms
normally vary between one and five years. These services are
distinguished between:
– Experian-hosted or SaaS solutions, where the customer has the right
to access a software solution over a specified time period. Customers
simultaneously receive and consume the benefits of the service and
revenue is spread evenly over the period that the service is available.
–On-premise software licence arrangements, where the software
solution is installed in an environment controlled by the customer. The
arrangement represents a right to use licence and so the performance
obligation is considered to be fulfilled on delivery completion, when
control of the configured solution is passed to the customer. Revenue
is recognised at that point in time.
• The delivery of support and maintenance agreements is generally
considered to be a separate performance obligation to provide a
technical support service including minor updates. Contract terms are
often aligned with licence terms. Customers simultaneously receive and
consume the benefits of the service, therefore revenue is spread evenly
over the term of the maintenance period.
• The provision of distinct standalone consultancy and professional
services is distinguished between:
– Professional consultancy services where the performance obligation is
the provision of personnel. Customers simultaneously receive and
consume the benefits of the service, and revenue is recognised over
time, in line with hours provided.
– The provision of analytical models and analyses, where the
performance obligation is a deliverable, or a series of deliverables, and
revenue is recognised on delivery when control is passed to the
customer.
Sales are typically invoiced in the geographic area in which the customer
is located. As a result, the geographic location of the invoicing undertaking
is used to attribute revenue to individual countries.
Accrued income balances, which represent the right to consideration in
exchange for goods or services that we have transferred to a customer,
are assessed as to whether they meet the definition of a contract asset:
• When the right to consideration is conditional on something other than
the passage of time, a balance is classified as a contract asset. This
arises where there are further performance obligations to be satisfied
as part of the contract with the customer and typically includes balances
relating to software licencing contracts.
• When the right to consideration is conditional only on the passage of
time, the balance does not meet the definition of a contract asset and
is classified as an unbilled receivable. This typically arises where the
timing of the related billing cycle occurs in a period after the
performance obligation is satisfied.
Costs incurred prior to the satisfaction or partial satisfaction of a
performance obligation are first assessed to see if they are within the
scope of other standards. Where they are not, certain costs are recognised
as an asset providing they relate directly to a contract (or an anticipated
contract), generate or enhance resources that will be used in satisfying
(or to continue to satisfy) performance obligations in the future and are
expected to be recovered from the customer. Costs which meet these
criteria are deferred as contract costs and these are amortised on a
systematic basis consistent with the pattern of transfer of the related
goods or services.
Experian plc
Annual Report 2024
187
5. Material accounting policies continued
Financial statements
• Costs to obtain a contract predominantly comprise sales commissions.
• Costs to fulfil a contract predominantly comprise labour costs directly
relating to the implementation services provided.
If evidence emerges that a contract is loss making, no further costs are
capitalised and any related contract assets are reviewed for impairment.
A provision for future losses is established when the unavoidable costs
of the contract exceed the economic benefits expected to be received.
Contract liabilities arise when we have an obligation to transfer future
goods or services to a customer for which we have received
consideration, or the amount is due from the customer and includes both
Operating charges are reported by nature in the Group income statement,
reflecting the Group’s cost-management control structure.
Details of the types of charges within labour costs in respect of share
incentive plans are set out in note 5(u). Those for post-employment
benefits are set out in note 5(n).
Details of the Group’s amortisation and depreciation policy are given in
notes 5(f), 5(g) and 5(m). The principles upon which impairment charges
of tangible and intangible assets are recognised are set out in notes 5(d),
of debt are capitalised and amortised over the expected life of the
borrowing, using the effective interest method. All other borrowing costs
are charged in the Group income statement in the year in which they are
Amounts payable or receivable in respect of interest rate swaps are taken
to net finance costs over the periods of the contracts, together with the
interest differentials reflected in foreign exchange contracts.
Details of the nature of movements in the fair value of derivatives which
are reported as financial fair value remeasurements are included in note
5(j). The change in the year in the present value of put option agreements,
in respect of shares held by non-controlling shareholders, is recognised
The tax charge or credit for the year is recognised in the Group income
statement, except for tax on items recognised in OCI or directly in equity.
Current tax is calculated on the basis of the tax laws substantively enacted
at the balance sheet date in the countries where the Group operates.
Current tax assets and liabilities are offset where there is a legally
enforceable right of offset.
Uncertain tax positions are considered on an individual basis. Where
management considers it probable that an additional outflow will result
from any given position, a provision is made. Such provisions are
measured using management’s best estimate of the most likely outcome.
the tax bases of assets and liabilities and their carrying amounts in the
Group financial statements. Deferred tax is not recognised on taxable
temporary differences arising on the initial recognition of goodwill.
Deferred tax is not accounted for when it arises from the initial recognition
of an asset or liability in a transaction, other than a business combination,
that at the time of the transaction affects neither accounting nor taxable
profit or loss. Deferred tax assets and liabilities are calculated at the tax
rates that are expected to apply when the asset is realised or the liability
settled, based on the tax rates and laws that have been enacted or
substantively enacted by the balance sheet date in the countries where
the Group operates.
Deferred tax assets are recognised in respect of tax losses carried
forward and other temporary differences, to the extent that it is probable
that the related tax benefit will be realised through future taxable profits.
Deferred tax is provided on temporary differences arising on investments
in subsidiaries and associates, except where the Group controls the timing
of the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future. Deferred
tax assets and liabilities are offset where there is a legally enforceable
right to offset current tax assets and liabilities and where they relate to
The fair value of share incentives granted in connection with the Group’s
equity-settled, share-based employee incentive plans is recognised as
an expense on a straight-line basis over the vesting period. Fair value
is measured using whichever of the Black-Scholes model, Monte Carlo
model or closing market price is most appropriate. The Group takes
into account the best estimate of the number of awards and options
expected to vest and revises such estimates at each balance sheet
date. Non-market performance conditions are included in the vesting
estimates. Market-based performance conditions are included in the
The initially recorded cost of any acquisition includes a reasonable
estimate of the fair value of any contingent amounts expected to be
payable in the future. Any cost or benefit arising when such estimates
are revised is recognised in the Group income statement (note 15).
Where part or all of the amount of disposal consideration is contingent
on future events, the disposal proceeds initially recorded include a
reasonable estimate of the value of the contingent amounts expected
to be receivable and payable in the future. The proceeds and profit or
loss on disposal are adjusted when revised estimates are made, with
corresponding adjustments made to receivables and payables as
appropriate, until the ultimate outcome is known and the related
Earnings per share are reported in accordance with IAS 33 ‘Earnings
(note 10)
We are organised into, and managed on, a worldwide basis through
operating segments, which are based on geographic areas and supported
by central functions. 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. Our reportable operating segments from that date are:
• North America
• Latin America
• UK and Ireland
• EMEA and Asia Pacific.
The chief operating decision maker makes operating decisions, allocates
resources and assesses the performance of these operating segments on
the basis of Benchmark EBIT, as defined in note 7.
Experian plc
Financial statements
188
Notes to the Group financial statements
continued
5. Material accounting policies continued
We previously reported the ‘All other segments’ category as EMEA/Asia
Pacific in the Group financial statements. This reporting combined
information in respect of the EMEA and Asia Pacific segments, as neither
of those operating segments was individually reportable under IFRS 8
‘Operating Segments’, on the basis of their percentage share of the
Group’s revenue, reported profit or loss, or assets. 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.
We separately present information equivalent to segment disclosures in
respect of the costs of our central functions, under the caption ‘Central
Activities’, as management believes that this information is helpful to
users of the financial statements. Costs reported for Central Activities
include those arising from finance, treasury and other global functions.
Inter-segment transactions are entered into under the normal
commercial terms and conditions that would be available to third parties.
Such transactions do not have a material impact on the Group’s results.
Segment assets consist primarily of property, plant and equipment,
intangible assets including goodwill, derivatives designated as hedges of
future commercial transactions, contract assets and receivables. They
exclude tax assets, cash and cash equivalents, and derivatives designated
as hedges of borrowings. Segment liabilities comprise operating and
contract liabilities, including derivatives designated as hedges of future
commercial transactions and lease obligations. They exclude tax liabilities,
borrowings, other than lease obligations, and related hedging derivatives.
Net assets reported for Central Activities comprise corporate head office
assets and liabilities, including certain post-employment benefit assets
and obligations, tax assets and liabilities, and derivative assets and
liabilities. Capital expenditure comprises additions to property, plant and
equipment and intangible assets, other than additions through business
combinations or to right-of-use assets.
Information required to be presented also includes analysis of the Group’s
revenues by groups of service lines. This is supplemented by voluntary
disclosure of the profitability of those groups of service lines. For ease of
reference, we use the term ‘business segments’ when discussing the
results of groups of service lines. Our two business segments, details of
which are given in the Strategic report section of this Annual Report, are:
• Business-to-Business
• Consumer Services.
The North America, Latin America and the UK and Ireland operating
segments derive revenues from both of the Group’s business segments.
The EMEA and Asia Pacific segment does not currently derive revenue
from the Consumer Services business segment.
Reportable segment information for the full year provided to the chief
(a) Critical accounting estimates and assumptions
In preparing these financial statements, management is required to make
estimates and assumptions that affect the reported amount of revenues,
expenses, assets and liabilities and the disclosure of contingent liabilities.
The resulting accounting estimates, which are based on management’s
best judgment at the date of these financial statements, will seldom equal
the subsequent actual amounts. The estimates and assumptions that
have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are
summarised below, with further information provided within the
Financial review in the Strategic report. Revenue recognition is excluded
from this summary on the grounds that the policy adopted in this area is
sufficiently objective.
Goodwill (note 20)
The Group tests goodwill for impairment annually, or more frequently if
there is an indication that it may be impaired. The recoverable amount of
each group of CGUs is generally determined on the basis of value-in-use
calculations, which require the use of cash flow projections based on
financial forecasts looking forward five years. Three-year growth
expectations are reviewed as part of the annual strategic planning
process and forecasts for years beyond this are extrapolated based on
management’s best estimates. Corporate balances are allocated to the
groups of CGUs on the basis of expected consumption by each group.
Management determines budgeted profit margin based on past
performance and its expectations for the market’s development. Cash
flows after the five-year forecast period are extrapolated using estimated
growth rates that do not exceed the long-term average growth rate for the
CGU’s markets. The discount rates used reflect the Group’s pre-tax
weighted average cost of capital (WACC), as adjusted for region-specific
risks and other factors.
Intangible assets (note 21)
On acquisition, specific intangible assets are identified and recognised
separately from goodwill and then amortised over their estimated useful
lives. These include items such as brand names and customer lists, to
which value is first attributed at the time of acquisition. The capitalisation
of these assets and the related amortisation charges are based on
estimates of the value and economic life of such items.
The economic lives of intangible assets are estimated at between three
and ten years for internal projects and between one and 20 years for
acquisition intangibles. Amortisation methods, useful lives and residual
values are reviewed at each reporting date and adjusted if appropriate.
Post-employment benefits (note 35)
Accounting for the Group’s post-employment benefit obligations requires
management to exercise judgment and make a number of assumptions
about uncertain events. The key sources of estimation uncertainty are the
discount rate applied to future cash flows, the expected rate of future
inflationary increases and the life expectancy of the schemes’ members.
The estimates in respect of these critical assumptions are made after
seeking advice from independent qualified actuaries. The discount rate,
inflation rate and mortality assumptions may have a material effect in
determining the defined benefit pension obligations and the amounts
reported in the Group financial statements.
Information regarding actuarial assumptions and sensitivities to changes
in the critical accounting estimates are provided in note 35.
Contingent consideration and put option liabilities (note 30 (h))
The calculation of the fair value of the Group’s acquisition-related
contingent consideration and put option liabilities requires management
to estimate the outcome of uncertain future events. These liabilities are
typically linked to the future financial performance of the acquired
business, with the key area of estimation uncertainty being the estimation
of the relevant financial metrics. We engage with third-party experts to
assist with the valuation process for all significant or complex
acquisition-related contingent consideration and put option liabilities.
Further detail is provided in note 41 regarding the liabilities recognised on
(b) Critical judgments
In applying the Group’s accounting policies, management has made
judgments that have a significant effect on the amounts recognised in the
Group financial statements and the reported amounts of assets, liabilities,
Experian plc
Annual Report 2024
189
6. Critical accounting estimates, assumptions and judgments
continued
Financial statements
income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to estimates are recognised prospectively.
The most significant of these judgments are in respect of intangible
assets and contingencies:
Intangible assets (note 21)
Certain costs incurred in the developmental phase of an internal project,
which include the development of databases, internal use software and
internally generated software, are capitalised as intangible assets if a
number of criteria are met. Management has made judgments and
assumptions when assessing whether a project meets these criteria, and
on measuring the costs and the economic life attributed to such projects.
Further details of the amounts of, and movements in, such assets are
given in note 21.
Contingencies (note 45)
In the case of pending and threatened litigation claims, management has
formed a judgment as to the likelihood of ultimate liability. No liability has
been recognised where the likelihood of any loss arising is possible rather
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 10(a)(i))
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 7(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.
• 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 10(a)(i))
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 (note 13).
(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 10(a)(ii))
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 10(a)(ii))
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 18)
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.
Experian plc
Financial statements
190
Notes to the Group financial statements
continued
7. Use of non-GAAP measures in the Group financial
statements continued
(j) Benchmark earnings per share (Benchmark EPS)
(note 18)
Benchmark EPS comprises Benchmark earnings divided by the weighted
average number of issued ordinary shares, as adjusted for own shares
held.
(k) Benchmark tax charge and rate (note 17(b)(ii))
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 17(b)(ii) to these financial
statements. The Benchmark effective rate of tax is calculated by dividing
the Benchmark tax charge by Benchmark PBT.
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
(m) Full-year dividend per share (note 19)
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 28)
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) (note 10 (a)(iii))
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
(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. These risks are unchanged from those reported in
the 2023 Annual Report. The numeric disclosures in respect of financial
risks are included within later notes to the financial statements, to provide
a more transparent link between financial risks and results.
Financial risks represent part of the Group’s risks in relation to its strategy
and business objectives. There is a full discussion of the most significant
risks in the Risk management section of this Annual Report. The Group’s
financial risk management focuses on the unpredictability of financial
markets and seeks to minimise potentially adverse effects on the Group’s
financial performance. The Group seeks to reduce its exposure to financial
risks and uses derivative financial instruments to hedge certain risk
exposures. Such derivative financial instruments are also used to manage
the Group’s borrowings so that amounts are held in currencies broadly in
the same proportion as the Group’s main earnings. However, the Group
does not, nor does it currently intend to, borrow in the Brazilian real or the
Colombian peso.
The Group also ensures surplus funds are prudently managed and
controlled.
The Group is exposed to foreign exchange risk from future commercial
transactions, recognised assets and liabilities, and investments in, and
loans between, Group undertakings with different functional currencies.
The Group manages such risk, primarily within undertakings whose
functional currencies are the US dollar, by:
• entering into forward foreign exchange contracts in the relevant
currencies in respect of investments in entities with functional
currencies other than the US dollar, whose net assets are exposed to
foreign exchange translation risk
• swapping the proceeds of certain bonds issued in pounds sterling and
euros into US dollars
• managing the liquidity of Group undertakings in the functional currency
of those undertakings by using an in-house banking structure and
hedging any remaining foreign currency exposures with forward foreign
exchange contracts
• denominating internal loans in relevant currencies, to match the
currencies of assets and liabilities in entities with different functional
currencies
• using forward foreign exchange contracts to hedge certain future
commercial transactions.
The principal transaction exposures are to the pound sterling, the euro
and the Brazilian real. An indication of the sensitivity to foreign exchange
risk is given in note 11.
Interest rate risk
The Group’s interest rate risk arises principally from components of its
Net debt that are at variable rates.
The Group has a policy of normally maintaining between 50% and 100%
of Net funding at rates that are fixed for more than six months. The Group
manages its interest rate exposure by:
• using fixed and floating rate borrowings, interest rate swaps and
cross-currency interest rate swaps to adjust the balance between the
two
• mixing the duration of borrowings and interest rate swaps to smooth the
impact of interest rate fluctuations.
Experian plc
Annual Report 2024
191
8. Financial risk management continued
Financial statements
Further information in respect of the Group’s net finance costs for the
year and an indication of the sensitivity to interest rate risk is given in
In the case of derivative financial instruments, deposits, contract assets
and trade receivables, the Group is exposed to credit risk from the
non-performance of contractual agreements by the contracted party.
Credit risk is managed by:
• only entering into contracts for derivative financial instruments and
deposits with banks and financial institutions with strong credit ratings,
within limits set for each organisation
• closely controlling dealing activity and regularly monitoring counterparty
positions.
The credit risk on derivative financial instruments and deposits held by
the Group is therefore not considered to be significant. The Group does not
anticipate that any losses will arise from non-performance by its chosen
counterparties. Further information on the Group’s derivative financial
instruments at the balance sheet dates is given in note 30 and that in
respect of amounts recognised in the Group income statement is given in
note 16. Further information on the Group’s cash and cash equivalents at
the balance sheet dates is given in note 25.
To minimise credit risk for trade receivables, the Group has implemented
policies that require appropriate credit checks on potential clients before
granting credit. The maximum credit risk in respect of such financial
assets is their carrying value. Further information in respect of the
Group’s trade receivables is given in note 24.
Debt investments
All of the Group’s debt investments at amortised cost and FVOCI are
considered to have low credit risk; the loss allowance is therefore limited
to 12 months’ expected losses. Management considers ‘low credit risk’ for
listed bonds to be an investment-grade credit rating with at least one
major rating agency. Other instruments are considered to be low credit
risk when they have a low risk of default and the issuer has a high
capacity to meet its contractual cash flow obligations in the near term.
Financial assets at FVPL
The Group is also exposed to credit risk in relation to debt investments
that are measured at FVPL. The maximum exposure at the balance sheet
The Group manages liquidity risk by:
• issuing long-maturity bonds and notes
• entering into long-term committed bank borrowing facilities, to ensure
the Group has sufficient funds available for operations and planned
growth
• spreading the maturity dates of its debt
• monitoring rolling cash flow forecasts, to ensure the Group has
adequate, unutilised committed bank borrowing facilities.
Details of such facilities are given in note 27. A maturity analysis of
contractual undiscounted future cash flows for financial liabilities is
The Group’s definition and management of capital focuses on capital
employed:
• The Group’s capital employed is reported in the net assets summary
table set out in the Financial review and analysed by segment in note
10(a)(iii).
• As part of its internal reporting processes, the Group monitors capital
employed by operating segment.
The Group’s objectives in managing capital are to:
• safeguard its ability to continue as a going concern, in order to provide
returns for shareholders and benefits for other stakeholders
• maintain an optimal capital structure and cost of capital.
The Group’s policy is to have:
• a prudent but efficient balance sheet
• a target leverage ratio of 2.0 to 2.5 times Benchmark EBITDA, consistent
with the intention to retain strong investment-grade credit ratings.
To maintain or adjust its capital structure, the Group may:
• adjust the amount of dividends paid to shareholders
• return capital to shareholders
• issue or purchase our own shares
The Group has a progressive dividend policy which aims to increase
the dividend over time broadly in line with the underlying growth in
Benchmark EPS. This aligns shareholder returns with the underlying
profitability of the Group. In determining the level of dividend in any one
year, in accordance with the policy, the Board also considers a number
of other factors, including the outlook for the Group, the opportunities for
organic investment, the opportunities to make acquisitions and disposals,
the cash flow generated by the Group, and the level of dividend cover.
Further detail on the distributable reserves of the Company can be found
Experian plc
Financial statements
192
Notes to the Group financial statements
continued
Total | |||||
North | Latin | UK and | EMEA and | operating | |
America | America | Ireland | Asia Pacific | 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 |
Total | |||||
North | Latin | UK and | EMEA and | operating | |
America | America | Ireland | Asia Pacific | segments | |
Year ended 31 March 2023 1 | 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.
The timing of recognition of these revenue streams is discussed in note 5(q).
Experian plc
Annual Report 2024
193
9. Revenue continued
Financial statements
(b) Significant changes in contract balances
Contract assets predominantly relate to software licence services, where revenue recognition for on-premise arrangements occurs as the solution is
transferred to the customer, whereas the invoicing pattern is often annually over the contract period. Contract assets recognised during the year totalled
US$86m (2023: US$87m). The contract asset balance for work completed but not invoiced on satisfaction of a performance obligation unwinds over the
contract term. Contract assets are transferred to receivables when the right to consideration becomes unconditional, or conditional only on the passage
of time. Contract assets of US$78m (2023: US$60m) were reclassified to receivables during the year. An impairment charge of US$1m (2023: US$10m)
The majority of software licences are invoiced annually in advance. Where these licences relate to Experian-hosted solutions, revenue is recognised over
the period that the service is available to the customer, creating a contract liability. Delivery services are generally invoiced during the delivery period,
creating a contract liability for the consideration received in advance, until the delivery is complete. Where the delivery relates to Experian-hosted
solutions, revenue is recognised over the period that the service is available to the customer, reducing the contract liability over time. Where the delivery
relates to an on-premise solution, the contract liability is released on delivery completion. Support and maintenance agreements are often invoiced
annually in advance, creating a contract liability, which is released over the term of the maintenance period as revenue is recognised.
Revenue recognised in the year of US$396m (2023: US$401m) was included in the opening contract liability. Cash received in advance not recognised as
revenue in the year was US$368m (2023: US$376m). The decrease in contract liabilities resulting from disposals during the year was US$1m (2023:
US$nil). The increase in contract liabilities from acquisitions during the year was US$2m (2023: US$3m).
Foreign exchange accounts for a US$1m decrease and a US$1m increase (2023: US$4m decrease and a US$16m decrease) in contract asset and
(c) Contract costs
The carrying amount of assets recognised from costs to obtain, and costs to fulfil, contracts with customers at 31 March 2024 was US$24m and
US$70m (2023: US$27m and US$66m) respectively.
Amortisation of contract costs in the year was US$75m (2023: US$46m); there were no recognised impairment losses in the current or prior year.
Contract costs are amortised on a systematic basis consistent with the pattern of transfer of the related goods or services. A portfolio approach has been
applied to calculate contract costs for contracts with similar characteristics, where the Group reasonably expects that the effects of applying a portfolio
approach does not differ materially from calculating the amounts at an individual contract level.
The aggregate amount of the transaction price from non-cancellable contracts with customers with expected durations of 12 months or more, allocated
to the performance obligations that are unsatisfied, or partially satisfied, at 31 March 2024 was US$5.1bn (2023: US$4.9bn). We expect to recognise
approximately 47% (2023: 49%) of this value within one year, 31% (2023: 30%) within one to two years, 13% (2023: 14%) within two to three years and 9%
(2023: 7%) thereafter.
The aggregate amount of the transaction price allocated to unsatisfied, or partially satisfied, performance obligations which are transactional in nature
includes estimates of variable consideration. These estimates are based on forecast transactional volumes and do not take into account all external
market factors which may have an impact on the future revenue recognised from such contracts.
A portfolio approach has been applied to calculate the aggregate amount of the transaction price allocated to the unsatisfied, or partially satisfied,
performance obligations for contracts with similar characteristics, where the Group reasonably expects that the effects of applying a portfolio approach
does not differ materially from calculating the amounts at an individual contract level.
We apply the practical expedient in paragraph 121(a) of IFRS 15 ‘Revenue from Contracts with Customers’ and do not disclose information about
remaining performance obligations that have original expected durations of one year or less. This excludes contracts across a number of business units
which have revenue due to be recognised in the financial year ending 31 March 2025; it also excludes the majority of our direct-to-consumer
Experian plc
Financial statements
194
Notes to the Group financial statements
continued
(a) IFRS 8 disclosures
(i) Income statement
Total | |||||||
North | Latin | UK and | EMEA and | operating | Central | Total | |
America | America | Ireland | Asia Pacific | segments | Activities | Group | |
Year ended 31 March 2024 | US$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 16(b)) | (3) | (2) | (2) | (1) | (8) | (131) | (139) |
Benchmark PBT | 1,528 | 352 | 180 | 4 | 2,064 | (275) | 1,789 |
Exceptional items (note 15(a)) | (1) | — | — | 5 | 4 | — | 4 |
Amortisation of acquisition intangibles (note 21) | (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 (note 16(c)) | — | — | — | — | — | (23) | (23) |
Profit/(loss) before tax | 1,424 | 299 | 165 | (60) | 1,828 | (277) | 1,551 |
Experian plc
Annual Report 2024
195
10. Segment information continued
(i) Income statement continued
Financial statements
Total | |||||||
North | Latin | UK and | EMEA and | operating | Central | Total | |
America | America | Ireland | Asia Pacific | segments | Activities | Group | |
Year ended 31 March 2023 1 | 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 16(b)) | (4) | (1) | (1) | (1) | (7) | (117) | (124) |
Benchmark PBT | 1,463 | 293 | 169 | 5 | 1,930 | (260) | 1,670 |
Exceptional items (note 15(a)) | 4 | — | — | (70) | (66) | — | (66) |
Impairment of goodwill (note 20) | — | — | — | (179) | (179) | — | (179) |
Amortisation of acquisition intangibles (note 21) | (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 (note 16(c)) | — | — | — | — | — | 51 | 51 |
Profit/(loss) before tax | 1,277 | 263 | 144 | (300) | 1,384 | (210) | 1,174 |
1
Revenue of US$39m and Benchmark EBIT of US$4m for the year ended 31 March 2023 have been re-presented for the reclassification to exited business activities of certain B2B businesses.
Additional information by operating segment, including that on total and organic growth at constant exchange rates, is provided in the Strategic report.
(ii) Reconciliation of revenue from ongoing activities
Total | |||||
North | Latin | UK and | EMEA and | ongoing | |
America | America | Ireland | Asia Pacific | activities | |
US$m | US$m | US$m | US$m | US$m | |
Revenue for the year ended 31 March 2023 1 | 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$39m for the year ended 31 March 2023 has been re-presented for the reclassification to exited business activities of certain B2B businesses.
The table above demonstrates the application of the methodology set out in note 7 in determining organic and total revenue growth at constant exchange
rates. Revenue at constant exchange rates is reported for both years using the average exchange rates applicable for the year ended 31 March 2023.
Experian plc
Financial statements
196
Notes to the Group financial statements
continued
10. Segment information continued
(iii) Balance sheet
Net assets/(liabilities)
Total | Central | ||||||
North | Latin | UK and | EMEA and | operating | Activities | Total | |
America | America | Ireland | Asia Pacific | segments | and other | Group | |
At 31 March 2024 | US$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 |
Total | Central | ||||||
North | Latin | UK and | EMEA and | operating | Activities | Total | |
America | America | Ireland | Asia Pacific | segments | and other | Group | |
At 31 March 2023 | US$m | US$m | US$m | US$m | US$m | US$m | US$m |
Goodwill | 3,662 | 724 | 700 | 489 | 5,575 | — | 5,575 |
Investments in associates | 3 | — | 9 | — | 12 | — | 12 |
Right-of-use assets | 72 | 16 | 14 | 20 | 122 | 6 | 128 |
Assets classified as held-for-sale | — | — | — | 4 | 4 | 12 | 16 |
Other assets | 2,406 | 686 | 530 | 505 | 4,127 | 1,006 | 5,133 |
Total assets | 6,143 | 1,426 | 1,253 | 1,018 | 9,840 | 1,024 | 10,864 |
Lease obligations | (89) | (19) | (14) | (21) | (143) | (5) | (148) |
Liabilities classified as held-for-sale | — | — | — | (3) | (3) | — | (3) |
Other liabilities | (1,307) | (327) | (304) | (189) | (2,127) | (4,622) | (6,749) |
Total liabilities | (1,396) | (346) | (318) | (213) | (2,273) | (4,627) | (6,900) |
Net assets/(liabilities) | 4,747 | 1,080 | 935 | 805 | 7,567 | (3,603) | 3,964 |
Central Activities and other comprises:
| 2024 | 2023 | |||||
Net assets/ | Net assets/ | |||||
Assets | Liabilities | (liabilities) | Assets | Liabilities | (liabilities) | |
US$m | US$m | US$m | US$m | US$m | US$m | |
Central Activities | 666 | (179) | 487 | 731 | (175) | 556 |
Net debt 1 | 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$142m).
Capital employed
2024 | 2023 | |
US$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$8,060m), used in our calculation of ROCE, is determined by calculating the
arithmetic average of capital employed at 31 March 2024, 30 September 2023 and 31 March 2023.
Experian plc
Annual Report 2024
197
10. Segment information continued
Financial statements
(iv) Capital expenditure, amortisation and depreciation
Right-of-use | ||||||||
Capital expenditure | asset additions | Amortisation | Depreciation | |||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | |
North America | 340 | 324 | 13 | 15 | 193 | 170 | 52 | 57 |
Latin America | 140 | 134 | 5 | 9 | 100 | 81 | 17 | 17 |
UK and Ireland | 70 | 74 | 33 | 3 | 44 | 41 | 21 | 21 |
EMEA and Asia Pacific | 37 | 44 | 8 | 8 | 31 | 29 | 14 | 17 |
Total operating segments | 587 | 576 | 59 | 35 | 368 | 321 | 104 | 112 |
Central Activities | 53 | 51 | 1 | 4 | 47 | 47 | 2 | 2 |
Total Group | 640 | 627 | 60 | 39 | 415 | 368 | 106 | 114 |
Amortisation and depreciation above only include amounts charged to Benchmark PBT.
(v) Revenue by country
2024 | 2023 | |
US$m | US$m | |
USA | 4,658 | 4,429 |
Brazil | 991 | 839 |
UK | 839 | 780 |
Other | 609 | 571 |
7,097 | 6,619 |
Revenue is primarily attributable to countries other than Ireland. No single client accounted for 10% or more of revenue in the current or prior year.
Revenue from the USA, Brazil and the UK in aggregate comprises 91% (2023: 91%) of Group revenue. Other comprises a number of other countries, none
of which has revenue that is individually material.
(vi) Non-current assets by country
2024 | 2023 | |
US$m | US$m | |
USA | 5,481 | 5,237 |
UK | 1,129 | 1,022 |
Brazil | 1,199 | 897 |
Germany | 412 | 422 |
South Africa | 191 | 218 |
Colombia | 149 | 122 |
Other | 401 | 434 |
Segment non-current assets by country | 8,962 | 8,352 |
Central Activities | 617 | 681 |
Deferred tax | 55 | 37 |
9,634 | 9,070 |
To add clarity to the presentation of this information, non-current assets for Central Activities and deferred tax have been excluded from the analysis by
country. The Group has no significant non-current assets located in Ireland.
Experian plc
Financial statements
198
Notes to the Group financial statements
continued
10. Segment information continued
(b) Information on business segments (including non-GAAP disclosures)
Total | |||||
Business-to- | Consumer | business | Central | Total | |
Business | Services | segments | Activities | Group | |
Year ended 31 March 2024 | US$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 16(b)) | (6) | (2) | (8) | (131) | (139) |
Benchmark PBT | 1,587 | 477 | 2,064 | (275) | 1,789 |
Exceptional items (note 15(a)) | 4 | — | 4 | — | 4 |
Amortisation of acquisition intangibles (note 21) | (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 (note 16(c)) | — | — | — | (23) | (23) |
Profit/(loss) before tax | 1,399 | 429 | 1,828 | (277) | 1,551 |
Total | |||||
Business-to- | Consumer | business | Central | Total | |
Business | Services | segments | Activities | Group | |
Year ended 31 March 2023 1 | 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 16(b)) | (5) | (2) | (7) | (117) | (124) |
Benchmark PBT | 1,516 | 414 | 1,930 | (260) | 1,670 |
Exceptional items (note 15(a)) | (66) | — | (66) | — | (66) |
Impairment of goodwill (note 20) | (179) | — | (179) | — | (179) |
Amortisation of acquisition intangibles (note 21) | (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 (note 16(c)) | — | — | — | 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.
Experian plc
Annual Report 2024
199
Financial statements
(a) Principal exchange rates used
Average | Closing | ||||
2024 | 2023 | 2024 | 2023 | 2022 | |
US dollar : Brazilian real | 4.94 | 5.16 | 5.01 | 5.08 | 4.78 |
Pound sterling : US dollar | 1.26 | 1.20 | 1.26 | 1.24 | 1.31 |
Euro : US dollar | 1.08 | 1.04 | 1.08 | 1.09 | 1.11 |
US dollar : Colombian peso | 4,113 | 4,469 | 3,852 | 4,623 | 3,757 |
US dollar : South African rand | 18.73 | 17.00 | 18.90 | 17.71 | 14.56 |
(b) Foreign exchange risk
(i) Brazilian real intra-Group funding
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.
Although the Brazilian real strengthened by 1% against the US dollar in the year, a charge of US$1m has been recognised within financing fair value
remeasurements due to the Brazilian real weakening subsequent to an internal re-financing (2023: US$16m due to 6% weakening) (note 16(c)).
The Group is similarly exposed to the impact of the Brazilian real strengthening or weakening against the US dollar in the future. A movement of 5%
would result in a US$21m impact on profit before tax. There is no effect on total equity as a result of this exposure, since it arises on intra-Group funding
and there would be a related equal but opposite foreign exchange movement recognised in the translation reserve within equity.
(ii) Other exposures
On the basis of the profile of foreign exchange exposures, and an assessment of reasonably possible changes in such exposures, there are no other
material sensitivities to foreign exchange risk at the balance sheet dates. In making these assessments, actual data on movements in the principal
currencies over the most recent three-year period has been considered together with exposures at the balance sheet dates. This methodology has been
2024 | 2023 | ||
Notes | US$m | US$m | |
Wages and salaries | 1,675 | 1,591 | |
Social security costs | 312 | 295 | |
Share incentive plans | 33(a) | 139 | 142 |
Pension costs – defined benefit plans | 35(a) | 3 | 2 |
Pension costs – defined contribution plans | 79 | 65 | |
Other employee benefit costs | 35 | 30 | |
Employee benefit costs | 2,243 | 2,125 | |
Other labour costs | 250 | 256 | |
2,493 | 2,381 |
In the year ended 31 March 2023 labour costs included exceptional restructuring-related redundancy costs of US$21m (note 15(d)). Other labour costs
include those in respect of external contractors, outsourcing and the recruitment, development and training of employees. The definition of key
(b) Average monthly number of employees (including executive directors)
| 2024 | 2023 | |||||
Full-time- | Full-time- | |||||
Full-time | Part-time | equivalent | Full-time | Part-time | equivalent | |
North America | 9,057 | 53 | 9,084 | 8,789 | 59 | 8,819 |
Latin America | 5,706 | 168 | 5,790 | 5,194 | 172 | 5,280 |
UK and Ireland | 3,646 | 207 | 3,749 | 3,507 | 215 | 3,615 |
EMEA and Asia Pacific | 3,600 | 112 | 3,656 | 3,588 | 127 | 3,651 |
Total operating segments | 22,009 | 540 | 22,279 | 21,078 | 573 | 21,365 |
Central Activities | 252 | 12 | 258 | 235 | 13 | 242 |
22,261 | 552 | 22,537 | 21,313 | 586 | 21,607 | |
Experian plc
Financial statements
200
Notes to the Group financial statements
continued
2024 | 2023 | |
US$m | US$m | |
Benchmark: | ||
Amortisation of other intangible assets | 415 | 368 |
Depreciation of property, plant and equipment | 106 | 114 |
521 | 482 | |
Non-benchmark: | ||
Amortisation of acquisition intangibles | 193 | 192 |
714 | 674 |
An analysis by segment of amounts charged within Benchmark PBT is given in note 10(a)(iv). Analyses by asset type are given in notes 21 and 22.
2024 | 2023 | |
US$m | US$m | |
Audit of the Company and Group financial statements | 1.2 | 1.2 |
Audit of the financial statements of the Company's subsidiaries | 6.0 | 5.6 |
Audit-related assurance services | 0.7 | 0.6 |
Other assurance services | 0.4 | 0.2 |
Total fees payable to the Company's auditor and its associates | 8.3 | 7.6 |
Summary of fees by nature: | ||
Fees for audit services | 7.2 | 6.8 |
Fees for audit-related assurance services | 0.7 | 0.6 |
Fees for other assurance services | 0.4 | 0.2 |
8.3 | 7.6 |
The guidelines covering the use of the Company’s auditor for non-audit services are set out in the Audit Committee report. Fees for other assurance
services were capped at 30% (2023: 30%) of the fees for audit services. In the year ended 31 March 2024, fees payable for non-audit services, were 15%
(2023: 12%) of fees payable for audit services. Such fees are reported within Other operating charges.
The fees for audit-related assurance services relate to the Group’s half-yearly financial report. Fees charged for other assurance services include those
Experian plc
Annual Report 2024
201
Financial statements
(a) Net charge for Exceptional items and other adjustments made to derive Benchmark PBT
2024 | 2023 | ||
Notes | US$m | US$m | |
Exceptional items: | |||
Net (profit)/loss on disposal of operations 1 | 15(b), 42 | (5) | 1 |
Profit on disposal of associate 1 | 15(c), 23 | — | (1) |
Restructuring costs | 15(d) | — | 53 |
Onerous global support costs 1 | 15(e) | — | 16 |
Legal provisions movements 1 | 15(f) | 1 | (3) |
Net (credit)/charge for Exceptional items | (4) | 66 | |
Other adjustments made to derive Benchmark PBT: | |||
Amortisation of acquisition intangibles | 13, 21 | 193 | 192 |
Impairment of goodwill 1 | 20 | — | 179 |
Acquisition and disposal expenses 2 | 41 | 46 | |
Adjustment to the fair value of contingent consideration 1 | 30(h) | 4 | 45 |
Non-benchmark share of post-tax loss of associates | 23 | 1 | 18 |
Interest on uncertain tax provisions | 16(c) | (20) | 1 |
Financing fair value remeasurements | 16(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 | 16(a) | 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.
(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.
Experian plc
Financial statements
202
Notes to the Group financial statements
continued
15. Exceptional items and other adjustments made to derive Benchmark PBT continued
(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$26m),
2024 | 2023 | |
US$m | US$m | |
Interest income: | ||
Bank deposits, short-term investments and loan notes | (11) | (9) |
Interest on pension plan assets | (7) | (4) |
Interest income | (18) | (13) |
Net non-benchmark finance income (note 16(c)) | — | (50) |
Finance income | (18) | (63) |
Finance expense: | ||
Eurobonds and notes | 93 | 91 |
Bank loans, commercial paper, overdrafts and other | 32 | 14 |
Commitment and facility fees | 5 | 6 |
Interest on leases | 8 | 7 |
Interest differentials on derivatives | 19 | 19 |
Interest expense | 157 | 137 |
Net non-benchmark finance expense (note 16(c)) | 3 | — |
Finance expense | 160 | 137 |
Net finance expense included in profit before tax | 142 | 74 |
2024 | 2023 | |
US$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$m | |
Fair value losses/(gains) on borrowings – attributable to interest rate risk | 26 | (59) |
Fair value losses/(gains) on borrowings – attributable to currency risk | 12 | (65) |
Losses on interest rate swaps – fair value hedges | 6 | 17 |
(Gains)/losses on cross-currency swaps – fair value hedges | (24) | 72 |
Foreign currency (gains)/losses on cross-currency swaps designated as a cash flow hedge – transfer from OCI | (10) | 30 |
Losses/(gains) on items in hedging relationships – hedge ineffectiveness | 10 | (5) |
Fair value gains on non-hedging derivatives | (20) | (62) |
Foreign exchange losses on Brazilian real intra-Group funding | 1 | 16 |
Other foreign exchange losses on financing activities | 5 | 21 |
Monetary loss on hyperinflation | 1 | 3 |
Increase/(decrease) in present value of put options | 31 | (26) |
Movement in Other financial assets at FVPL | — | 2 |
Movement in connection with commitments to purchase own shares | (5) | — |
Net charge/(credit) for financing fair value remeasurements | 23 | (51) |
Interest on uncertain tax provisions | (20) | 1 |
3 | (50) |
Experian plc
Annual Report 2024
203
16. Net finance expense/(income) continued
Financial statements
(d) Interest rate risk
The following table shows the sensitivity to interest rate risk, on the basis of the profile of Net debt at the balance sheet dates and an assessment of
reasonably possible changes in the principal interest rates, with all other variables held constant. In making this assessment, actual movements in
relevant interest rates over the most recent three-year period have been considered and a consistent methodology applied. An indication of the primary
cause of the reported sensitivity is included.
2024 | 2023 | |
Gain/(loss) | US$m | US$m |
Impact on profit for the financial year: | ||
Effect of an increase of 1.7% (2023: 1.6%) on US dollar-denominated Net debt: | ||
Due to the revaluation of borrowings and related derivatives, higher interest expense on borrowings and higher interest | ||
income on cash and cash equivalents | 72 | 67 |
Effect of an increase of 1.6% (2023: 1.0%) on pound sterling-denominated Net debt: | ||
Due to the revaluation of borrowings and related derivatives, higher interest expense on borrowings and higher interest | ||
income on cash and cash equivalents | (4) | 2 |
Effect of an increase of 4.2% (2023: 4.7%) on Brazilian real-denominated Net debt: | ||
Due to higher interest income on cash and cash equivalents | 4 | 3 |
Effect of an increase of 1.4% (2023: 0.5%) on euro-denominated Net debt: | ||
Due to the revaluation of borrowings and related derivatives, higher interest expense on borrowings and higher interest | ||
income on cash and cash equivalents | — | — |
Impact on other components of equity: | ||
Effect of an increase of 1.7% (2023: 1.6%): | ||
On the fair value of the US dollar leg of cross-currency swaps treated as a cash flow hedge | 9 | 15 |
Effect of an increase of 1.6% (2023: 1.0%): | ||
On the fair value of the pound sterling leg of cross-currency swaps treated as a cash flow hedge | (9) | (9) |
Experian plc
Financial statements
204
Notes to the Group financial statements
continued
2024 | 2023 | |
US$m | US$m | |
Current tax: | ||
Tax on income for the year | 513 | 515 |
Adjustments in respect of earlier years | (72) | 6 |
Total current tax charge | 441 | 521 |
Deferred tax: | ||
Origination and reversal of temporary differences | (101) | (146) |
Adjustments in respect of earlier years | 8 | 26 |
Total deferred tax credit | (93) | (120) |
Tax charge | 348 | 401 |
The tax charge comprises: | ||
UK tax | 22 | 57 |
Non-UK tax | 326 | 344 |
348 | 401 |
(b) Tax reconciliations
(i) Reconciliation of the tax charge
As the Group is subject to the tax rates of more than one country, it has chosen to present its reconciliation of the tax charge using the main rate of
corporation tax in the UK. The effective rate of tax based on profit before tax is lower (2023: higher) than the main rate of corporation tax in the UK, with
the differences explained in note 17(c).
2024 | 2023 | |
US$m | US$m | |
Profit before tax | 1,551 | 1,174 |
Profit before tax multiplied by the main rate of UK corporation tax of 25% (2023: 19%) | 388 | 223 |
Effects of: | ||
Adjustments in respect of earlier years 1 | (64) | 32 |
Tax on Exceptional items | — | 3 |
Income not taxable | (14) | (30) |
Losses not recognised | 10 | 11 |
Goodwill impairment | — | 54 |
Expenses not deductible | 59 | 64 |
Different effective tax rates in non-UK businesses 2 | (59) | 22 |
Local taxes 3 | 61 | 53 |
Current year movement in uncertain tax positions | 14 | 9 |
Recognition/utilisation of previously unrecognised tax losses | (11) | (14) |
Research and development incentive claims | (36) | (26) |
Tax charge | 348 | 401 |
Effective rate of tax based on profit before tax | 22.4% | 34.2% |
1
Refer to note 17(c).
2
The movement in the different effective tax rates in non-UK businesses is driven by the increase in the UK tax rate to 25%.
3
Local taxes primarily comprise US state taxes.
(ii) Reconciliation of the tax charge to the Benchmark tax charge
2024 | 2023 | |
US$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% |
Experian plc
Annual Report 2024
205
17. Tax charge continued
Financial statements
(c) Factors that affect the tax charge
The Group’s tax rate reflects its internal financing arrangements in place to fund non-UK businesses.
Expenses not deductible include acquisition and disposal expenses and financing fair value remeasurements which are not allowable for tax purposes.
Adjustments in respect of earlier periods reflect the net movement on uncertain tax positions as well as adjustments for matters that have been
substantively agreed with local tax authorities.
At 31 March 2024, the Group held current and deferred tax liabilities of US$61m (2023: US$102m) in respect of uncertain tax positions. During the
current and prior year, Experian was in discussions with the US Internal Revenue Service and His Majesty’s Revenue and Customs in the UK to seek
clarity on transfer pricing and financing related issues. The net decrease in provisions recognised during the year was driven by the agreement of open
tax issues in North America. In the year ended 31 March 2023, the net decrease in provisions was driven by the agreement of open tax issues in the UK.
Liabilities relating to these open and judgmental matters are based on an assessment as to whether additional taxes will be due, after taking into
account external advice where appropriate. While the timing of developments in resolving these matters is inherently uncertain, the Group does not
expect to materially increase its uncertain tax provisions in the next 12 months.
(d) Other factors that affect the future tax charge
Continued focus on tax reform is expected throughout 2024 and the following years. This is mainly driven by the OECD’s project to address the tax
challenges arising from the digitalisation of the economy including the enactment of global minimum tax legislation in Ireland. The OECD’s global
minimum tax legislation will apply to the Group from the financial year ending 31 March 2025. An assessment of this legislation has been completed and
it will not materially impact the Group’s effective tax rate in future periods.
(a) Earnings per share
Basic | Diluted | |||
2024 | 2023 | 2024 | 2023 | |
US cents | US cents | US cents | US cents | |
EPS | 131.3 | 84.2 | 130.2 | 83.6 |
Add: Exceptional items and other adjustments made to derive Benchmark PBT, net of | ||||
related tax | 14.2 | 50.9 | 14.0 | 50.5 |
Benchmark EPS (non-GAAP measure) | 145.5 | 135.1 | 144.2 | 134.1 |
(b) Analysis of earnings
(i) Attributable to owners of Experian plc
2024 | 2023 | |
US$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$m | |
Profit for the financial year attributable to non-controlling interests | 4 | 3 |
Deduct: Exceptional items and other adjustments made to derive Benchmark PBT, net of related tax | (2) | (2) |
Benchmark earnings attributable to non-controlling interests (non-GAAP measure) | 2 | 1 |
Experian plc
Financial statements
206
Notes to the Group financial statements
continued
18. Earnings per share disclosures continued
(c) Reconciliation of Total Benchmark earnings to profit for the financial year
2024 | 2023 | |
US$m | US$m | |
Total Benchmark earnings (non-GAAP measure) | 1,330 | 1,236 |
Exceptional items and other adjustments made to derive Benchmark PBT, net of related tax: | ||
– attributable to owners of Experian plc | (129) | (465) |
– attributable to non-controlling interests | 2 | 2 |
Profit for the financial year | 1,203 | 773 |
(d) Weighted average number of ordinary shares
2024 | 2023 | |
million | million | |
Weighted average number of ordinary shares | 913 | 914 |
Add: dilutive effect of share incentive awards, options and share purchases | 8 | 7 |
Diluted weighted average number of ordinary shares | 921 | 921 |
2024
2023
US cents
US cents
per share
US$m
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
509
482
Full-year dividend for the financial year
1
534
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. 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.
Further administrative information on dividends is given in the Shareholder and corporate information section. 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$4m). There is no entitlement
Experian plc
Annual Report 2024
207
Financial statements
(a) Movements in goodwill
2024 | 2023 | |
US$m | US$m | |
Cost | ||
At 1 April | 5,821 | 5,790 |
Differences on exchange | 19 | (149) |
Additions through business combinations (note 41(a)) | 368 | 180 |
At 31 March | 6,208 | 5,821 |
Accumulated impairment | ||
At 1 April | 246 | 53 |
Differences on exchange | — | 14 |
Impairment charge | — | 179 |
At 31 March | 246 | 246 |
Net book amount at 1 April | 5,575 | 5,737 |
Net book amount at 31 March | 5,962 | 5,575 |
(b) Goodwill by group of CGUs
2024 | 2023 | |
US$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.
Experian plc
Financial statements
208
Notes to the Group financial statements
continued
20. Goodwill continued
(c) Key assumptions for value-in-use calculations by group of CGUs
2024 | 2023 | |||
Long-term | Long-term | |||
Discount rate | growth rate | Discount rate | 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), 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.
• 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).
(d) Results of annual impairment review for the year ended 31 March 2024
assumptions discussed in note 20(c) that would trigger a further review to be required at 31 March 2024. The recoverable amount of the EMEA and Asia
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 the table in note 20(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$179m, as a result of increased discount rate assumptions used in the value-in-use calculation, driven by increased underlying risk-free
interest rates and challenging market conditions. This charge was recognised within total operating expenses in the Group income statement.
The impairment review considered the potential impact of climate change by considering the results of the scenario analysis performed consistent
Experian plc
Annual Report 2024
209
Financial statements
Acquisition intangibles | |||||||
Customer | Acquired | Marketing- | Internally | ||||
and other | software | related | Internal use | generated | |||
relationships | development | assets | Databases | software | software | Total | |
US$m | US$m | US$m | US$m | US$m | US$m | US$m | |
Cost | |||||||
At 1 April 2023 | 1,643 | 489 | 101 | 1,504 | 355 | 1,433 | 5,525 |
Differences on exchange | 3 | (3) | 2 | 7 | (4) | 22 | 27 |
Additions through business combinations (note 41) | 68 | 76 | 3 | 3 | 3 | 6 | 159 |
Other additions | — | — | — | 201 | 50 | 349 | 600 |
Disposal of businesses | (6) | — | — | — | — | — | (6) |
Other disposals | (63) | (18) | (8) | (60) | (9) | (37) | (195) |
At 31 March 2024 | 1,645 | 544 | 98 | 1,655 | 395 | 1,773 | 6,110 |
Accumulated amortisation and impairment | |||||||
At 1 April 2023 | 834 | 318 | 88 | 1,036 | 272 | 688 | 3,236 |
Differences on exchange | 8 | 2 | — | 7 | 3 | 10 | 30 |
Charge for the year | 134 | 55 | 4 | 176 | 30 | 209 | 608 |
Disposal of businesses | (6) | — | — | — | — | — | (6) |
Other disposals | (63) | (18) | (8) | (60) | (9) | (37) | (195) |
At 31 March 2024 | 907 | 357 | 84 | 1,159 | 296 | 870 | 3,673 |
Net book amount at 31 March 2024 | 738 | 187 | 14 | 496 | 99 | 903 | 2,437 |
Acquisition intangibles | |||||||
Customer | Acquired | Marketing- | Internally | ||||
and other | software | related | Internal use | generated | |||
relationships | development | assets | Databases | software | software | Total | |
US$m | US$m | US$m | US$m | US$m | US$m | US$m | |
Cost | |||||||
At 1 April 2022 | 1,634 | 497 | 108 | 1,515 | 347 | 1,190 | 5,291 |
Differences on exchange | (38) | (12) | (4) | (62) | (12) | (18) | (146) |
Additions through business combinations | 70 | 55 | 1 | — | — | 4 | 130 |
Other additions | — | — | — | 190 | 38 | 335 | 563 |
Disposals | (23) | (51) | (4) | (139) | (18) | (78) | (313) |
At 31 March 2023 | 1,643 | 489 | 101 | 1,504 | 355 | 1,433 | 5,525 |
Accumulated amortisation and impairment | |||||||
At 1 April 2022 | 759 | 312 | 89 | 1,055 | 269 | 593 | 3,077 |
Differences on exchange | (26) | (7) | (1) | (46) | (7) | (17) | (104) |
Charge for the year | 124 | 64 | 4 | 166 | 28 | 174 | 560 |
Impairment charge | — | — | — | — | — | 9 | 9 |
Disposals | (23) | (51) | (4) | (139) | (18) | (71) | (306) |
At 31 March 2023 | 834 | 318 | 88 | 1,036 | 272 | 688 | 3,236 |
Net book amount at 1 April 2022 | 875 | 185 | 19 | 460 | 78 | 597 | 2,214 |
Net book amount at 31 March 2023 | 809 | 171 | 13 | 468 | 83 | 745 | 2,289 |
Within the above are the following individually material assets at 31 March 2024:
• North America Healthcare customer relationships have a net book value of US$104m (2023: US$132m) and a remaining amortisation period of four
(2023: five) years.
• North America Tapad, Inc. customer relationships with a net book value of US$124m (2023: US$133m) and a remaining amortisation period of 14
(2023: 15) years.
• Experian DACH customer relationships with a net book value of US$54m (2023: US$84m) and a remaining amortisation period of two (2023: ten) years.
The useful economic life of such assets was reduced during the year following a review of customer attrition assumptions.
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 15(d)).
The impairment charge in that year included US$5m in relation to restructuring activity, and US$3m for the write-down of the fair value of acquired
intangibles.
Experian plc
Financial statements
210
Notes to the Group financial statements
continued
Right-of-use assets | |||||||
Freehold | Leasehold | Plant and | Land and | Motor | Plant and | ||
properties | improvements | equipment | buildings | vehicles | equipment | Total | |
US$m | US$m | US$m | US$m | US$m | US$m | US$m | |
Cost | |||||||
At 1 April 2023 | 73 | 150 | 644 | 201 | 26 | 36 | 1,130 |
Differences on exchange | 2 | 1 | 4 | 1 | — | — | 8 |
Additions through business combinations | — | — | 1 | — | — | — | 1 |
Other additions | — | 3 | 37 | 40 | 11 | 9 | 100 |
Transfer from assets held-for-sale | 9 | — | — | — | — | — | 9 |
Disposal of business | — | — | (1) | — | — | — | (1) |
Other disposals | — | — | (33) | (32) | (6) | (12) | (83) |
At 31 March 2024 | 84 | 154 | 652 | 210 | 31 | 33 | 1,164 |
Accumulated depreciation and impairment | |||||||
At 1 April 2023 | 20 | 81 | 512 | 99 | 12 | 24 | 748 |
Differences on exchange | — | 1 | 4 | — | — | — | 5 |
Charge for the year | 2 | 5 | 50 | 32 | 8 | 9 | 106 |
Disposal of business | — | — | (1) | — | — | — | (1) |
Other disposals | — | — | (32) | (26) | (5) | (10) | (73) |
At 31 March 2024 | 22 | 87 | 533 | 105 | 15 | 23 | 785 |
Net book amount at 31 March 2024 | 62 | 67 | 119 | 105 | 16 | 10 | 379 |
Right-of-use assets | |||||||
Freehold | Leasehold | Plant and | Land and | Motor | Plant and | ||
properties | improvements | equipment | buildings | vehicles | equipment | Total | |
US$m | US$m | US$m | US$m | US$m | US$m | US$m | |
Cost | |||||||
At 1 April 2022 | 78 | 156 | 653 | 205 | 23 | 40 | 1,155 |
Differences on exchange | (5) | (1) | (20) | (4) | (1) | (2) | (33) |
Additions through business combinations | — | — | 1 | — | — | — | 1 |
Other additions | — | 2 | 62 | 29 | 9 | 1 | 103 |
Disposals | — | (7) | (52) | (29) | (5) | (3) | (96) |
At 31 March 2023 | 73 | 150 | 644 | 201 | 26 | 36 | 1,130 |
Accumulated depreciation and impairment | |||||||
At 1 April 2022 | 20 | 83 | 522 | 86 | 10 | 19 | 740 |
Differences on exchange | (1) | — | (15) | (2) | — | (2) | (20) |
Charge for the year | 1 | 5 | 56 | 37 | 6 | 9 | 114 |
Disposals | — | (7) | (51) | (22) | (4) | (2) | (86) |
At 31 March 2023 | 20 | 81 | 512 | 99 | 12 | 24 | 748 |
Net book amount at 1 April 2022 | 58 | 73 | 131 | 119 | 13 | 21 | 415 |
Net book amount at 31 March 2023 | 53 | 69 | 132 | 102 | 14 | 12 | 382 |
There were no indicators of material impairment as a result of climate-related matters in the current or prior year. The disposal of right-of-use assets for
Experian plc
Annual Report 2024
211
Financial statements
2024 | 2023 | |
US$m | US$m | |
At 1 April | 12 | 4 |
Differences on exchange | — | 1 |
Share of profit after tax | — | 1 |
Dividends received | — | (2) |
Impairment charge | (1) | (18) |
Transfer from assets classified as held-for-sale | — | 26 |
At 31 March | 11 | 12 |
In the year ended 31 March 2023 we reclassified a UK held-for-sale investment as an associate, as the sale was no longer anticipated. The carrying
amount of the investment was written down by US$18m upon its reclassification.
2024 | 2023 | |
US$m | US$m | |
Trade and unbilled receivables | 1,419 | 1,237 |
Credit note provision | (51) | (34) |
Trade receivables – after credit note provision | 1,368 | 1,203 |
Contract assets | 146 | 141 |
Trade receivables and contract assets | 1,514 | 1,344 |
Loss allowance | (27) | (26) |
Net trade receivables and contract assets | 1,487 | 1,318 |
VAT and equivalent taxes recoverable | 8 | 4 |
Prepayments | 267 | 244 |
Contract costs | 94 | 93 |
1,856 | 1,659 | |
As reported in the Group balance sheet: | ||
Current trade and other receivables | 1,660 | 1,519 |
Non-current trade and other receivables | 196 | 140 |
1,856 | 1,659 |
There is no material difference between the fair value and the book value stated above. Non-current trade and other receivables comprise prepayments,
contract assets, unbilled receivables and contract costs.
At 31 March 2022, the value of trade and unbilled receivables was US$1,083m and contract assets was US$130m.
Experian plc
Financial statements
212
Notes to the Group financial statements
continued
24. Trade and other receivables continued
2024 | 2023 | |||
Gross carrying | Gross carrying | |||
Loss allowance | amount | Loss allowance | amount | |
US$m | US$m | US$m | US$m | |
Not past-due | (6) | 1,116 | (7) | 1,027 |
Up to three months past-due | (1) | 262 | (2) | 215 |
Three to six months past-due | (1) | 44 | (2) | 43 |
Over six months past-due | (19) | 92 | (15) | 59 |
Trade receivables and contract assets | (27) | 1,514 | (26) | 1,344 |
Loss allowance (note 24(c)) | (27) | (26) | ||
Net trade receivables and contract assets | 1,487 | 1,318 |
(c) Movements in the loss allowance
2024 | 2023 | |
US$m | US$m | |
At 1 April | 26 | 22 |
Increase in the loss allowance recognised in the Group income statement | 9 | 10 |
Receivables written off in the year as uncollectable | (9) | (5) |
Differences on exchange | 1 | (1) |
At 31 March | 27 | 26 |
(d) Analysis by currency denomination
Contract assets | Trade receivables | |||
2024 | 2023 | 2024 | 2023 | |
US$m | US$m | US$m | US$m | |
US dollar | 80 | 69 | 762 | 695 |
Brazilian real | 4 | 5 | 283 | 207 |
Pound sterling | 26 | 16 | 169 | 160 |
Euro | 17 | 27 | 54 | 50 |
Colombian peso | 3 | 1 | 14 | 12 |
South African rand | 6 | 10 | 11 | 8 |
Other | 10 | 13 | 48 | 45 |
146 | 141 | 1,341 | 1,177 |
(a) Analysis by nature
2024 | 2023 | |
US$m | US$m | |
Cash at bank and in hand | 171 | 102 |
Short-term investments | 141 | 100 |
312 | 202 |
The effective interest rate for cash and cash equivalents held at 31 March 2024 was 5.2% (2023: 5.7%). There is no material difference between the fair
value and the book value stated above.
(b) Analysis by external credit rating
2024 | 2023 | |
US$m | US$m | |
Counterparty holding of more than US$2m: | ||
A rated | 219 | 139 |
B rated | 81 | 44 |
Counterparty holding of more than US$2m | 300 | 183 |
Counterparty holding of less than US$2m | 12 | 19 |
312 | 202 |
Experian plc
Annual Report 2024
213
Financial statements
2024 | 2023 | |||
Current | Non-current | Current | Non-current | |
US$m | US$m | US$m | US$m | |
Trade payables | 341 | — | 263 | — |
VAT and other equivalent taxes payable | 37 | — | 28 | — |
Social security costs | 147 | — | 131 | — |
Accruals | 845 | 7 | 770 | 8 |
Contract liabilities | 437 | 83 | 414 | 132 |
Other payables | 229 | 100 | 349 | 46 |
2,036 | 190 | 1,955 | 186 |
There is no material difference between the fair value and the book value stated above. Other payables include interest payable of US$19m (2023: US$69m),
employee benefits of US$124m (2023: US$121m) and deferred and contingent consideration of US$92m (2023: US$143m).
At 31 March 2022, the value of contract liabilities was US$585m.
2024 | 2023 | |
US$m | US$m | |
Financial instruments | 869 | 847 |
VAT and other equivalent taxes payable | 37 | 28 |
Social security costs | 147 | 131 |
Amounts within accruals and contract liabilities | 1,173 | 1,135 |
Items other than financial instruments | 1,357 | 1,294 |
2,226 | 2,141 |
(a) Analysis by carrying amounts and fair value
Carrying amount | Fair value | |||
2024 | 2023 | 2024 | 2023 | |
US$m | US$m | US$m | US$m | |
Current: | ||||
Bonds: | ||||
£400m 2.125% Euronotes 2024 | 505 | — | 498 | — |
Commercial paper | 218 | 109 | 218 | 109 |
Bank overdrafts | 12 | 4 | 12 | 4 |
Lease obligations (note 29) | 37 | 43 | 37 | 43 |
772 | 156 | 765 | 156 | |
Non-current: | ||||
Bonds: | ||||
£400m 2.125% Euronotes 2024 | — | 482 | — | 476 |
£400m 0.739% Euronotes 2025 | 506 | 496 | 473 | 449 |
€500m 1.375% Euronotes 2026 | 520 | 511 | 515 | 510 |
US$500m 4.25% Notes 2029 | 501 | 501 | 484 | 486 |
US$750m 2.75% Notes 2030 | 708 | 705 | 656 | 655 |
€500m 1.56% Euronotes 2031 | 544 | 551 | 480 | 463 |
£400m 3.25% Euronotes 2032 | 517 | 507 | 463 | 441 |
Bank loans | 84 | 85 | 84 | 85 |
Lease obligations (note 29) | 114 | 105 | 114 | 105 |
3,494 | 3,943 | 3,269 | 3,670 | |
Total borrowings | 4,266 | 4,099 | 4,034 | 3,826 |
The effective interest rates for bonds approximate to the coupon rates indicated above. Other than lease obligations, borrowings are unsecured.
Further information on the methodology used in determining fair values is given in note 31.
Experian plc
Financial statements
214
Notes to the Group financial statements
continued
27. Borrowings continued
(b) Analysis by maturity
2024 | 2023 | |
US$m | US$m | |
Less than one year | 772 | 156 |
One to two years | 540 | 600 |
Two to three years | 628 | 521 |
Three to four years | 19 | 527 |
Four to five years | 511 | 12 |
Over five years | 1,796 | 2,283 |
4,266 | 4,099 |
(c) Analysis by currency
2024 | 2023 | |
US$m | US$m | |
US dollar | 3,305 | 2,973 |
Pound sterling | 362 | 417 |
Euro | 575 | 671 |
Other | 24 | 38 |
4,266 | 4,099 |
The above analysis takes account of the effect of cross-currency swaps and forward foreign exchange contracts and reflects the way in which the Group
manages its exposures.
(d) Undrawn committed bank borrowing facilities
2024 | 2023 | |
US$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$1.95bn
syndicated Revolving Credit Facility that was due to mature in 2025.
These facilities are at variable interest rates and are in place for general corporate purposes, including the financing of acquisitions and the refinancing
of other borrowings.
(e) Covenants and leverage ratio
There is one financial covenant in connection with the borrowing facilities. Benchmark EBIT must exceed three times net interest expense before
financing fair value remeasurements. The calculation of the financial covenant excludes the effects of IFRS 16. The Group monitors this, and the Net debt
to Benchmark EBITDA leverage ratio, and has complied with this covenant throughout the year.
(a) Analysis by nature
2024 | 2023 | |
US$m | US$m | |
Cash and cash equivalents (net of overdrafts) | 300 | 198 |
Debt due within one year – bonds and notes | (499) | — |
Debt due within one year – commercial paper | (218) | (109) |
Debt due within one year – lease obligations | (36) | (42) |
Debt due after more than one year – bonds and notes | (3,279) | (3,733) |
Debt due after more than one year – bank loans | (84) | (85) |
Debt due after more than one year – lease obligations | (114) | (105) |
Derivatives hedging loans and borrowings | (123) | (154) |
Net debt | (4,053) | (4,030) |
Experian plc
Annual Report 2024
215
28. Net debt (non-GAAP measure) continued
Financial statements
(b) Analysis by balance sheet caption
2024 | 2023 | |
US$m | US$m | |
Cash and cash equivalents | 312 | 202 |
Current borrowings | (772) | (156) |
Non-current borrowings | (3,494) | (3,943) |
Borrowings | (4,266) | (4,099) |
Total of Group balance sheet line items | (3,954) | (3,897) |
Accrued interest reported within borrowings excluded from Net debt | 24 | 21 |
Derivatives reported within Other financial assets | 2 | 4 |
Derivatives reported within Other financial liabilities | (125) | (158) |
Net debt | (4,053) | (4,030) |
(c) Analysis of movements in Net debt (non-GAAP measure)
Derivatives | Liabilities | ||||||
hedging | from | Cash | |||||
loans and | Current | Non-current | financing | Accrued | and cash | ||
borrowings | borrowings | borrowings | activities | interest | equivalents | Net debt | |
US$m | US$m | US$m | US$m | US$m | US$m | US$m | |
At 1 April 2023 | (154) | (156) | (3,943) | (4,253) | 21 | 202 | (4,030) |
Cash flow | (10) | 48 | — | 38 | — | 303 | 341 |
Borrowings cash flow | — | (102) | — | (102) | — | — | (102) |
Reclassification of borrowings | — | (537) | 537 | — | — | — | — |
Net interest paid | — | — | — | — | — | (149) | (149) |
Movement on accrued interest | — | (6) | 3 | (3) | 3 | — | — |
Net cash flow | (10) | (597) | 540 | (67) | 3 | 154 | 90 |
Non-cash lease obligation additions and disposals 1 | — | (5) | (45) | (50) | — | — | (50) |
Principal lease payments | — | — | — | — | — | 48 | 48 |
Net share purchases | — | — | — | — | — | (100) | (100) |
Additions through business combinations | — | (7) | — | (7) | — | — | (7) |
Fair value (losses)/gains | 14 | — | (17) | (3) | — | — | (3) |
Exchange and other movements | 27 | (7) | (29) | (9) | — | 8 | (1) |
At 31 March 2024 | (123) | (772) | (3,494) | (4,389) | 24 | 312 | (4,053) |
Derivatives | Liabilities | ||||||
hedging | from | Cash | |||||
loans and | Current | Non-current | financing | Accrued | and cash | ||
borrowings | borrowings | borrowings | activities | interest | equivalents | Net debt | |
US$m | US$m | US$m | US$m | US$m | US$m | US$m | |
At 1 April 2022 | (42) | (57) | (4,039) | (4,138) | 9 | 179 | (3,950) |
Cash flow | 61 | 57 | — | 118 | — | 288 | 406 |
Borrowings cash flow | — | (109) | (83) | (192) | — | — | (192) |
Reclassification of borrowings | — | (46) | 46 | — | — | — | — |
Net interest paid | — | — | — | — | — | (118) | (118) |
Movement on accrued interest | — | — | (12) | (12) | 12 | — | — |
Net cash flow | 61 | (98) | (49) | (86) | 12 | 170 | 96 |
Non-cash lease obligation additions and disposals 1 | — | (2) | (27) | (29) | — | — | (29) |
Principal lease payments | — | — | — | — | — | 57 | 57 |
Net share purchases | — | — | — | — | — | (175) | (175) |
Fair value (losses)/gains | (76) | — | 29 | (47) | — | — | (47) |
Exchange and other movements | (97) | 1 | 143 | 47 | — | (29) | 18 |
At 31 March 2023 | (154) | (156) | (3,943) | (4,253) | 21 | 202 | (4,030) |
1
Experian plc
Financial statements
216
Notes to the Group financial statements
continued
The Group’s lease portfolio consists of 38 (2023: 43) significant property leases across the countries in which we operate. In addition, we lease approximately
67 (2023: 72) smaller properties, 889 (2023: 759) motor vehicles, and a small number of hardware assets. The average remaining lease term is 3.7 years
(2023: 3.6 years) for significant property leases, 1.0 years (2023: 1.3 years) for other minor property leases and 1.8 years (2023: 1.9 years) for motor vehicles
and plant and equipment. Extension and termination options are included within a number of property and equipment leases across the Group. These are
used to maximise operational flexibility in terms of managing assets and lease exposures. The majority of extension and termination options are exercisable
only by the Group and not by the respective lessor.
(a) Amounts recognised in the Group balance sheet
2024 | 2023 | ||
Notes | US$m | US$m | |
Right-of-use assets: | |||
Land and buildings | 22 | 105 | 102 |
Motor vehicles | 22 | 16 | 14 |
Plant and equipment | 22 | 10 | 12 |
At 31 March | 131 | 128 | |
Lease obligations: | |||
Current | 27 | 37 | 43 |
Non-current | 27 | 114 | 105 |
At 31 March | 151 | 148 |
Sublease receivables at 31 March 2024 were US$7m (2023: US$9m), of which US$6m (2023: US$7m) falls due after more than one year.
Lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the
Group, the incremental borrowing rate is used. The incremental borrowing rate is unique to each country and class of assets therein and is based on the Group’s
cost of debt, adjusted for factors specific to individual lessees and their borrowing capacity.
The Group is exposed to potential future increases in variable lease payments based on an index or a rate, which are not included in the lease obligation until they
take effect.
(b) Maturity of lease obligations – contractual undiscounted cash flows
2024 | 2023 | |
US$m | US$m | |
Less than one year | 44 | 48 |
One to two years | 38 | 37 |
Two to three years | 27 | 27 |
Three to four years | 21 | 18 |
Four to five years | 12 | 13 |
Over five years | 32 | 22 |
Total undiscounted lease obligations at 31 March | 174 | 165 |
(c) Amounts recognised in the Group income statement
2024 | 2023 | ||
Notes | US$m | US$m | |
Depreciation charge for right-of-use assets: | |||
Land and buildings | 22 | 32 | 37 |
Motor vehicles | 22 | 8 | 6 |
Plant and equipment | 22 | 9 | 9 |
Total depreciation charge for right-of-use assets | 49 | 52 | |
Interest expense | 16 | 8 | 7 |
Expense relating to the lease of low-value assets | 4 | 5 | |
Total | 61 | 64 |
We had no material sublease income in the current or prior year.
(d) Amounts recognised in the Group cash flow statement
During the year lease payments of US$56m (2023: US$64m) comprised US$48m (2023: US$57m) for repayments of principal and US$8m (2023:
US$7m) for payments of interest.
The Group’s had no commitments at 31 March 2024 (2023: US$3m) for lease agreements where the term had not yet commenced; such amounts are
Experian plc
Annual Report 2024
217
Financial statements
(a) Financial assets and liabilities revalued through OCI
2024 | 2023 | |||||
Current | Non-current | Total | Current | Non-current | Total | |
Assets | US$m | US$m | US$m | US$m | US$m | US$m |
Listed investments 1 | — | 67 | 67 | — | 61 | 61 |
Trade investments | — | 167 | 167 | — | 252 | 252 |
— | 234 | 234 | — | 313 | 313 |
2024 | 2023 | |||||
Current | Non-current | Total | Current | Non-current | Total | |
Liabilities | US$m | US$m | US$m | US$m | US$m | US$m |
Cash flow hedge of borrowings (cross-currency swaps) 2 | — | 10 | 10 | — | 24 | 24 |
1
Listed investments includes investments held in the UK to secure certain unfunded pension arrangements (note 34(b)).
2
Derivatives designated as a cash flow hedge are in a documented hedge accounting relationship and consequently are revalued through OCI.
(i) Summary
2024 | 2023 | |||||
Current | Non-current | Total | Current | Non-current | Total | |
Assets | US$m | US$m | US$m | US$m | US$m | US$m |
Non-hedging derivatives (equity swaps) | 4 | 2 | 6 | — | — | — |
Non-hedging derivatives (foreign exchange contracts) | 2 | — | 2 | 4 | — | 4 |
Non-hedging derivatives (interest rate swaps) | 3 | 158 | 161 | 3 | 132 | 135 |
Other financial assets at fair value through profit or loss | — | 14 | 14 | — | 16 | 16 |
Other financial assets 1 | 9 | 174 | 183 | 7 | 148 | 155 |
Other financial assets comprise: | ||||||
Derivative financial instruments | 9 | 160 | 169 | 7 | 132 | 139 |
Convertible loan notes | — | 14 | 14 | — | 16 | 16 |
9 | 174 | 183 | 7 | 148 | 155 |
2024 | 2023 | |||||
Current | Non-current | Total | Current | Non-current | Total | |
Liabilities | US$m | US$m | US$m | US$m | US$m | US$m |
Derivative financial instruments: | ||||||
Fair value hedge of borrowings (cross-currency swaps) | 20 | 45 | 65 | — | 89 | 89 |
Fair value hedge of borrowings (interest rate swaps) | — | 40 | 40 | — | 35 | 35 |
Derivatives used for hedging 2 | 20 | 85 | 105 | — | 124 | 124 |
Non-hedging derivatives (equity swaps) | — | — | — | 3 | 2 | 5 |
Non-hedging derivatives (foreign exchange contracts) | 3 | — | 3 | 3 | — | 3 |
Non-hedging derivatives (interest rate swaps) | — | 18 | 18 | — | 12 | 12 |
Derivative financial instruments 1 | 23 | 103 | 126 | 6 | 138 | 144 |
Put options | 21 | 112 | 133 | — | 33 | 33 |
Other financial liabilities | 44 | 215 | 259 | 6 | 171 | 177 |
1
Other financial assets and derivative financial liabilities are valued at fair value through profit or loss (FVPL).
2
Derivatives used for hedging are in documented hedge accounting relationships.
Amounts recognised in the Group income statement in connection with the Group’s hedging instruments are disclosed in note 16. There is no material
difference between the fair values and the book values stated above.
Financial assets held at amortised cost principally comprise amounts due following the disposal of businesses and include accrued interest. Other
financial assets at fair value through profit or loss comprise convertible loan notes purchased when acquiring interests in associates or minority
investments.
Experian plc
Financial statements
218
Notes to the Group financial statements
continued
30. Financial assets and liabilities continued
2024 | 2023 | |||||||
Assets | Liabilities | Assets | Liabilities | |||||
Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | |
US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | |
Cross-currency swaps | — | — | 75 | 1,414 | — | — | 113 | 1,414 |
Interest rate swaps | 161 | 1,550 | 58 | 550 | 135 | 1,750 | 47 | 550 |
Equity swaps | 6 | 30 | — | — | — | — | 5 | 32 |
Foreign exchange contracts | 2 | 256 | 3 | 461 | 4 | 408 | 3 | 176 |
169 | 1,836 | 136 | 2,425 | 139 | 2,158 | 168 | 2,172 |
Notional principal amounts are the amount of principal underlying the contracts at the reporting dates.
Assets | Liabilities | |||
2024 | 2023 | 2024 | 2023 | |
US$m | US$m | US$m | US$m | |
Reported in the Group balance sheet | 169 | 139 | 136 | 168 |
Related amounts not offset in the Group balance sheet | (90) | (86) | (90) | (86) |
Net amount | 79 | 53 | 46 | 82 |
(c) Hedge accounting
(i) Fair value and cash flow hedges
We use interest rate swaps to hedge the interest rate risk arising on fixed rate borrowings, and cross-currency swaps to hedge the currency and interest
rate risk arising on foreign currency fixed rate borrowings. Our risk management strategy for interest rate risk and currency risk is outlined in note 8.
We determine the existence of an economic relationship between the hedging instruments and hedged items by comparing the currency, reference
interest rates, duration, repricing and maturity dates and the notional amounts of the hedging instruments to those of the hedged items.
We have established a hedge ratio of 1:1 for the hedging relationships, as the underlying risk of interest rate swaps and cross-currency swaps is
identical to the hedged risk components.
The main sources of ineffectiveness in the hedge accounting relationships are:
• The application of different interest rate curves to discount the cash flows of the hedged item and those of the hedging instrument, due to currency
basis spread.
• Differences in timing of cash flows of the hedged item and hedging instrument.
• The different impact of the counterparty’s credit risk on the fair value movements of the hedging instrument compared to the hedged item.
Experian plc
Annual Report 2024
219
30. Financial assets and liabilities continued
Financial statements
(ii) Analysis of hedging instruments
The Group held the following instruments to hedge exposures to changes in foreign currency and interest rates.
Maturity | ||||||
Less than | One to | Two to | Three to | Four to | Over | |
At 31 March 2024 | one year | two years | three years | four years | five years | five years |
Fair value hedges | ||||||
Interest rate risk | ||||||
Interest rate swaps: | ||||||
Notional amount (US$m) | — | — | — | — | — | 300 |
Weighted average fixed interest rate | — | — | — | — | — | 1.66% |
Cross-currency swaps: | ||||||
Notional amount (US$m) | 395 | — | 504 | — | — | — |
Weighted average fixed interest rate | 2.13% | — | 1.38% | — | — | — |
Foreign currency risk | ||||||
Cross-currency swaps: | ||||||
Notional amount (US$m) | 395 | — | 504 | — | — | — |
EUR:USD forward contract rate | — | — | 1.12 | — | — | — |
GBP:USD forward contract rate | 1.32 | — | — | — | — | — |
Cash flow hedge | ||||||
Foreign currency risk | ||||||
Cross-currency swaps: | ||||||
Notional amount (US$m) | — | 515 | — | — | — | — |
GBP:USD forward contract rate | — | 1.29 | — | — | — | — |
Maturity | ||||||
Less than | One to | Two to | Three to | Four to | Over | |
At 31 March 2023 | one year | two years | three years | four years | five years | five years |
Fair value hedges | ||||||
Interest rate risk | ||||||
Interest rate swaps: | ||||||
Notional amount (US$m) | — | — | — | — | — | 300 |
Weighted average fixed interest rate | — | — | — | — | — | 1.66% |
Cross-currency swaps: | ||||||
Notional amount (US$m) | — | 395 | — | 504 | — | — |
Weighted average fixed interest rate | — | 2.13% | — | 1.38% | — | — |
Foreign currency risk | ||||||
Cross-currency swaps: | ||||||
Notional amount (US$m) | — | 395 | — | 504 | — | — |
EUR:USD forward contract rate | — | — | — | 1.12 | — | — |
GBP:USD forward contract rate | — | 1.32 | — | — | — | — |
Cash flow hedge | ||||||
Foreign currency risk | ||||||
Cross-currency swaps: | ||||||
Notional amount (US$m) | — | — | 515 | — | — | — |
GBP:USD forward contract rate | — | — | 1.29 | — | — | — |
Experian plc
Financial statements
220
Notes to the Group financial statements
continued
30. Financial assets and liabilities continued
(d) Impact of hedging instruments
2024 | ||||
Changes in fair value used | ||||
Notional amount of | Carrying amount of hedging instrument | for calculating hedge | ||
hedging instrument | Assets | Liabilities | ineffectiveness (Note 16(c)) | |
US$m | US$m | US$m | US$m | |
Fair value hedges | ||||
Interest rate risk | ||||
Interest rate swaps | 300 | — | (40) | 6 |
Cross-currency swaps | 899 | — | (65) | (22) |
Foreign exchange risk | ||||
Cross-currency swaps | 899 | — | (65) | (2) |
Cash flow hedge | ||||
Foreign exchange risk | ||||
Cross-currency swaps | 515 | — | (10) | (14) |
2023 | ||||
Changes in fair value used | ||||
Notional amount of | Carrying amount of hedging instrument | for calculating hedge | ||
hedging instrument | Assets | Liabilities | ineffectiveness (Note 16(c)) | |
US$m | US$m | US$m | US$m | |
Fair value hedges | ||||
Interest rate risk | ||||
Interest rate swaps | 300 | — | (35) | 17 |
Cross-currency swaps | 899 | — | (89) | 41 |
Foreign exchange risk | ||||
Cross-currency swaps | 899 | — | (89) | 31 |
Cash flow hedge | ||||
Foreign exchange risk | ||||
Cross-currency swaps | 515 | — | (24) | 38 |
Except for the cash flow hedge, interest rate and cross-currency swaps are reported within Other financial assets and Other financial liabilities in the
Group balance sheet. Cross-currency swaps in respect of the cash flow hedge are reported within Financial assets revalued through OCI or Financial
liabilities revalued through OCI, in the Group balance sheet.
(e) Impact of hedged items
| 2024 | 2023 | |||||
Accumulated | Accumulated | |||||
amount of fair | amount of fair | |||||
value hedge | value hedge | |||||
adjustments | adjustments | |||||
included in | Changes in fair | included in | Changes in fair | |||
| the carrying | value used for | the carrying | value used for | |||
| Carrying amount | amount of the | calculating hedge | Carrying amount | amount of the | calculating hedge | |
| of hedged item | hedged item | ineffectiveness | of hedged item | hedged item | ineffectiveness | |
Liabilities | (Note 16(c)) | Liabilities | (Note 16(c)) | |||
US$m | US$m | US$m | US$m | US$m | US$m | |
Fair value hedges | ||||||
Interest rate risk | ||||||
Borrowings | (1,103) | (67) | 26 | (1,073) | (93) | (59) |
Foreign exchange risk | ||||||
Borrowings | (842) | (34) | 2 | (814) | (37) | (35) |
Cash flow hedge | ||||||
Foreign exchange risk | ||||||
Borrowings | (506) | n/a | 14 | (496) | n/a | (38) |
The hedging reserve at 31 March 2024 included a debit of US$nil (2023: US$4m) in respect of the cash flow hedge. Borrowings are reported within
Borrowings in the Group balance sheet.
Experian plc
Annual Report 2024
221
30. Financial assets and liabilities continued
Financial statements
(f) Impact of hedge ineffectiveness
2024 | 2023 | |
Fair value hedges (Note 16(c)) | US$m | US$m |
Interest rate risk | 10 | (1) |
Foreign exchange risk | — | (4) |
Losses/(gains) on items in hedging relationships – hedge ineffectiveness | 10 | (5) |
Hedge ineffectiveness is reported within Net finance expense in the Group income statement.
2024 | 2023 | |||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |
US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | |
Financial assets: | ||||||||
Non-hedging derivatives | — | 169 | — | 169 | — | 139 | — | 139 |
Other financial assets at fair value through profit or loss | — | — | 14 | 14 | — | — | 16 | 16 |
Financial assets at fair value through profit or loss (note 30(b)) | — | 169 | 14 | 183 | — | 139 | 16 | 155 |
Listed and trade investments 1 (note 30(a)) | 67 | — | 167 | 234 | 61 | — | 252 | 313 |
67 | 169 | 181 | 417 | 61 | 139 | 268 | 468 | |
Financial liabilities: | ||||||||
Derivatives used for hedging – fair value hedges | — | (105) | — | (105) | — | (124) | — | (124) |
Non-hedging derivatives | — | (21) | — | (21) | — | (20) | — | (20) |
Other liabilities at fair value through profit or loss | — | — | (92) | (92) | — | — | (139) | (139) |
Financial liabilities at fair value through profit or loss (note 30(b)) | — | (126) | (92) | (218) | — | (144) | (139) | (283) |
Derivatives used for hedging – cash flow hedge 1 | — | (10) | — | (10) | — | (24) | — | (24) |
Put options | — | — | (133) | (133) | — | — | (33) | (33) |
— | (136) | (225) | (361) | — | (168) | (172) | (340) | |
Net financial assets/(liabilities) | 67 | 33 | (44) | 56 | 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.
The analysis by level 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 41(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.
Experian plc
Financial statements
222
Notes to the Group financial statements
continued
30. Financial assets and liabilities continued
(h) Analysis of movements in Level 3 financial assets/(liabilities)
Year ended 31 March 2024 | Year ended 31 March 2023 | |||||||||
Financial | Financial | |||||||||
assets | Other | assets | Other | |||||||
revalued | financial | revalued | financial | |||||||
through | assets | Contingent | Put | through | assets | Contingent | Put | |||
OCI | at FVPL | consideration | options | Total | OCI | at FVPL | consideration | options | Total | |
US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | |
At 1 April | 252 | 16 | (139) | (33) | 96 | 295 | 18 | (107) | (190) | 16 |
Additions 1,2 | 9 | 2 | (56) | (71) | (116) | 14 | 1 | (35) | (11) | (31) |
Disposals 3 | (1) | — | — | — | (1) | (6) | — | — | — | (6) |
Conversion of convertible debt to equity | ||||||||||
investments 4 | 5 | (5) | — | — | — | — | — | — | — | — |
Settlement of contingent consideration | ||||||||||
(note 41(b)(ii)) | — | — | 112 | — | 112 | — | — | 40 | — | 40 |
Cash payment on exercise of put options 5 | — | — | — | — | — | — | — | — | 133 | 133 |
Adjustment to the fair value of contingent | ||||||||||
consideration 2 | — | — | (4) | — | (4) | — | — | (45) | — | (45) |
Valuation (losses)/gains recognised in the | ||||||||||
Group income statement 6 | — | — | — | (31) | (31) | — | (2) | — | 26 | 24 |
Valuation losses recognised in OCI 7 | (98) | — | — | — | (98) | (52) | — | — | — | (52) |
Currency translation (losses)/gains | ||||||||||
recognised directly in OCI | — | — | (2) | 2 | — | — | — | 4 | 9 | 13 |
Other | — | 1 | (3) | — | (2) | 1 | (1) | 4 | — | 4 |
At 31 March | 167 | 14 | (92) | (133) | (44) | 252 | 16 | (139) | (33) | 96 |
1
Additions to put options in the year comprised US$71m in respect of the acquisition of MOVA Sociedade de Empréstimo entre Pessoas S.A. (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 (note 41). 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 15(a)).
3
During the year ended 31 March 2023, we disposed of a trade investment valued at US$6m; US$3m of the consideration was deferred.
4
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.
5
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.
6
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.
7
31. Fair value methodology
Information in respect of the carrying amounts and the fair value of borrowings is included in note 27(a). 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
Experian plc
Annual Report 2024
223
Financial statements
Less than | One to | Two to | Three to | Four to | Over | ||
one year | two years | three years | four years | five years | five years | Total | |
At 31 March 2024 | US$m | US$m | US$m | US$m | US$m | US$m | US$m |
Borrowings | 868 | 621 | 725 | 88 | 579 | 1,939 | 4,820 |
Net settled derivative financial instruments – interest rate swaps | 20 | 19 | 19 | 20 | 20 | 12 | 110 |
Gross settled derivative financial instruments: | |||||||
Outflows for derivative contracts | 911 | 555 | 512 | — | — | — | 1,978 |
Inflows for derivative contracts | (856) | (516) | (492) | — | — | — | (1,864) |
Gross settled derivative financial instruments | 55 | 39 | 20 | — | — | — | 114 |
Options in respect of non-controlling interests | — | 22 | 27 | — | — | 156 | 205 |
Trade and other payables | 762 | 104 | 5 | 7 | — | — | 878 |
Cash outflows | 1,705 | 805 | 796 | 115 | 599 | 2,107 | 6,127 |
Less than | One to | Two to | Three to | Four to | Over | ||
one year | two years | three years | four years | five years | five years | Total | |
At 31 March 2023 | US$m | US$m | US$m | US$m | US$m | US$m | US$m |
Borrowings | 252 | 706 | 601 | 636 | 80 | 2,542 | 4,817 |
Net settled derivative financial instruments – interest rate swaps | 19 | 18 | 16 | 16 | 16 | 26 | 111 |
Gross settled derivative financial instruments: | |||||||
Outflows for derivative contracts | 229 | 436 | 546 | 510 | — | — | 1,721 |
Inflows for derivative contracts | (194) | (390) | (506) | (497) | — | — | (1,587) |
Gross settled derivative financial instruments | 35 | 46 | 40 | 13 | — | — | 134 |
Options in respect of non-controlling interests | — | — | 9 | 11 | — | 13 | 33 |
Trade and other payables | 793 | 32 | 17 | 2 | 3 | — | 847 |
Cash outflows | 1,099 | 802 | 683 | 678 | 99 | 2,581 | 5,942 |
The table above analyses financial liabilities into maturity groupings, based on the period from the balance sheet date to the contractual maturity date.
As the amounts disclosed are the contractual undiscounted cash flows, they differ from the carrying values and fair values. Contractual undiscounted
Experian plc
Financial statements
224
Notes to the Group financial statements
continued
(a) Cost of share-based compensation
2024 | 2023 | |
US$m | US$m | |
Share awards | 122 | 121 |
Share options | 10 | 8 |
Expense recognised (all equity-settled) | 132 | 129 |
Charge for associated social security obligations | 7 | 13 |
Total expense recognised in the Group income statement | 139 | 142 |
The Group has a number of equity-settled, share-based employee incentive plans. Further information on share award arrangements is given in note
33(b). As the numbers of share options granted or outstanding and the related charge to the Group income statement are not significant, no further
disclosures are included in these financial statements.
(b) Share awards
(i) Summary of arrangements and performance conditions
There are three plans under which share awards are currently granted – the two Experian Co-investment Plans (the CIP) and the Experian Performance
Share Plan (the PSP). Awards typically take the form of a grant of free shares which vest over a service period of three years, with a maximum term
generally of the same length, and are settled by share distribution. The assumption at grant date for employee departures prior to vesting is 20% for
certain unconditional awards, which are only made under the PSP. Other details in respect of conditional awards are given below.
During the year ended 31 March 2021, a one-off award was made under the PSP to employees who are not eligible to participate in existing share award
schemes. These awards had no service or performance conditions attached and vested immediately. Participants who hold the shares received for three
years will be entitled to receive two matching shares for each share they originally received. The grant date assumption is that 30% of these matching
awards will not vest.
CIP
For the purposes of IFRS 2 ‘Share-based Payment’, the grant date for these plans is the start of the financial year in which performance is assessed. This
is before the number of shares to be awarded is determined but the underlying value of the award is known, subject to the outcome of the performance
condition. The value of awarded shares reflects the performance outcome assumed at the date of their issue to participants and is recognised over a
four-year period.
The range of performance conditions for awards under these plans is set out below. In order for granted awards to vest, the Profit performance condition
(Profit condition) requires adjusted Benchmark EPS growth at the stated percentages over a three-year period. The cumulative Benchmark operating
cash flow performance condition (Cash flow condition) is based on cumulative Benchmark operating cash flow over a three-year period. The period of
assessment commences at the beginning of the financial year of grant. These are not market-based performance conditions as defined by IFRS 2.
PSP
The range of Profit performance conditions for conditional awards under this plan is the same as that for the CIP described above. For granted awards
to vest, the Return on Capital Employed condition (ROCE condition) requires average ROCE over the period at the percentages stated below. Both these
conditions are not market-based performance conditions as defined by IFRS 2 and are also measured over a three-year period commencing at the
beginning of the financial year of grant.
The TSR performance condition is considered a market-based performance condition as defined by IFRS 2. In valuing the awarded shares, TSR is
evaluated using a Monte Carlo simulation, with historical volatilities and correlations for comparator companies measured over the three-year period
preceding valuation and an implied volatility for Experian plc ordinary shares.
Experian plc
Annual Report 2024
225
33. Share incentive plans continued
(i) Summary of arrangements and performance conditions continued
Financial statements
Year ended | 31 March 2024 | 31 March 2023 | 31 March 2022 | |||
CIP | PSP | CIP | PSP | CIP | PSP | |
Profit condition: | ||||||
Proportion of awards subject to | ||||||
condition | 50% | 50% | 50% | 50% | 50% | 50% |
Minimum payout requirement | 5% per annum | 5% per annum | 6% per annum | 6% per annum | 5% per annum | 5% per annum |
Target payout requirement | 7% per annum | 7% per annum | 8% per annum | 8% per annum | 7% per annum | 7% per annum |
Maximum payout requirement | 9% per annum | 9% per annum | 10% per annum | 10% per annum | 10% per annum | 10% per annum |
Assumed outcome at grant date | 50% | 50% | 75% | 75% | 67% | 67% |
Cash flow condition: | ||||||
Proportion of awards subject to | ||||||
condition | 50% | 50% | 50% | |||
Minimum payout requirement | US$5.5bn | US$5.0bn | US$4.0bn | |||
Target payout requirement | US$5.75bn | US$5.2bn | US$4.2bn | |||
Maximum payout requirement | US$6.0bn | US$5.4bn | US$4.4bn | |||
Assumed outcome at grant date | 53% | 77% | 65% | |||
ROCE condition: | ||||||
Proportion of awards subject to | ||||||
condition | 25% | 25% | 25% | |||
Minimum payout requirement | 14.5% per annum | 14.5% per annum | 14.5% per annum | |||
Target payout requirement | 15.4% per annum | 15.4% per annum | 15.4% per annum | |||
Maximum payout requirement | 16.0% per annum | 16.0% per annum | 16.0% per annum | |||
Assumed outcome at grant date | 75% | 64% | 72% | |||
TSR condition: | ||||||
Proportion of awards subject to | ||||||
condition | 25% | 25% | 25% | |||
Assumed outcome at grant date | 62% | 62% | 62% |
(ii) Information on share grant valuations
Share grants are valued by reference to the market price on the day of award, with no modification for dividend distributions or other factors, as
participants are entitled to dividend distributions on awarded shares. Market-based performance conditions are included in the fair value measurement
on the grant date and are not revised for actual performance. Awards granted in the year ended 31 March 2024 had a weighted average fair value per
share of £28.56 (2023: £24.65).
(iii) Share awards outstanding
2024 | 2023 | |
million | million | |
At 1 April | 12.2 | 11.1 |
Grants | 4.1 | 5.4 |
Forfeitures | (0.7) | (0.6) |
Lapse of awards | (0.2) | — |
Vesting | (3.0) | (3.7) |
At 31 March | 12.4 | 12.2 |
Analysis by plan: | ||
CIP | 3.7 | 3.9 |
PSP – conditional awards | 2.9 | 2.9 |
PSP – unconditional awards | 5.8 | 5.4 |
At 31 March | 12.4 | 12.2 |
Experian plc
Financial statements
226
Notes to the Group financial statements
continued
An overview of the Group’s post-employment benefit plans and the related risks is given below. The additional information required by IAS 19 ‘Employee
Benefits’, which relates only to the Group’s defined benefit pension plans and post-employment medical benefits obligations, is set out in note 35.
(a) Funded pension plans
The Group’s principal defined benefit plan is the Experian Pension Scheme in the UK. The plan was closed to new entrants in 2009 and to the future
accrual of new benefits from 1 April 2022. Active member benefits were crystallised as deferred pensions and all UK employees were offered
membership of the Group’s UK defined contribution plan from that date.
The Experian Pension Scheme has rules which specify the benefits to be paid, with the level of pension benefit payable on retirement dependent on age,
length of service and salary. At 31 March 2024 there were 1,132 (2023: 1,224) deferred and 2,391 (2023: 2,424) pensioner members of the plan.
A full actuarial funding valuation of the Experian Pension Scheme is carried out every three years, with interim reviews in the intervening years. The
latest full valuation was carried out as at 31 March 2022 by independent qualified actuaries Mercer Limited, using the projected unit credit method and
there was a moderate funding surplus. The next full valuation will be carried out as at 31 March 2025.
The Experian Pension Scheme is governed by a trust deed, which ensures that its finances and governance are independent from those of the Group.
Trustees are responsible for overseeing the investments and funding of the plans and plan administration. The UK pensions environment is regulated by
The Pensions Regulator whose statutory objectives and regulatory powers are described on its website at
thepensionsregulator.gov.uk
.
Employees in the USA, Brazil, the UK and South Africa have the option to join local defined contribution plans and under the plans employee and
employer contributions are paid into independently administered funds, which are used to provide retirement benefits for members. At 31 March 2024,
there were 5,476 (2023: 5,480) active members in the USA, 1,596 (2023: 1,273) in Brazil, 3,395 (2023: 3,484) in the UK, and 423 (2023: 426) in South
Africa. Details of amounts paid to defined contribution plans are set out in note 12(a). There are no other material funded pension arrangements.
(b) Unfunded pension arrangements
The Group’s unfunded pension arrangements are designed to ensure that certain senior managers who are affected by the earnings cap, which was
introduced by the UK government some years ago to set a ceiling on the amount of benefits that could be paid by defined benefit pension plans, were
placed in broadly the same position as those who were not. There are also unfunded arrangements for certain former directors and employees of, the
subsidiary undertakings, Experian Finance plc and Experian Limited. Certain of these unfunded arrangements in the UK have been secured by the grant
to an independent trustee of charges over an independently managed portfolio of marketable securities owned by the Group and reported as financial
assets revalued through OCI (note 30(a)). Benefit accrual under the unfunded arrangements ceased from 1 April 2022.
(c) Post-employment medical benefits
The Group operates a plan which provides post-employment medical benefits to eligible former UK employees who retired prior to 1 April 1994 and their
dependant relatives.
(d) Related risks
Through its defined benefit pension plans and post-employment medical benefits plan, the Group is exposed to a number of risks that are inherent in
such plans and arrangements, which can be summarised as follows:
• asset value volatility, with the associated impact on the assets held in connection with the funding of pension obligations and the related cash flows;
• changes in bond yields, with any reduction resulting in an increase in the present value of pension obligations, mitigated by an increase in the value of
plan assets;
• inflation, as pension obligations are generally linked to inflation and the prevailing rate of inflation experienced for medical benefits is typically higher
than other inflation measures in the UK; and
• life expectancy, as pension and medical benefits are generally provided for the life of beneficiaries and their dependants.
There are no unusual, entity-specific or plan-specific risks, and no significant concentrations of risk.
Experian plc
Annual Report 2024
227
Financial statements
35. Post-employment benefits – IAS 19 information
(a) Post-employment benefit amounts recognised in the Group financial statements
(i) Balance sheet assets/(obligations)
2024 | 2023 | |
US$m | US$m | |
Retirement benefit assets/(obligations) – funded defined benefit plans: | ||
Fair value of funded plans' assets | 871 | 866 |
Present value of funded plans' obligations | (685) | (692) |
Assets in the Group balance sheet for funded defined benefit pensions | 186 | 174 |
Obligations for unfunded post-employment benefits: | ||
Present value of defined benefit pensions – unfunded plans | (37) | (36) |
Present value of post-employment medical benefits | (2) | (3) |
Liabilities in the Group balance sheet | (39) | (39) |
Net post-employment benefit assets | 147 | 135 |
Pension assets are deemed to be recoverable and there are no adjustments in respect of minimum funding requirements as, under the rules of the UK
Experian Pension Scheme, future economic benefits are available to the Group in the form of reductions in any future contribution requirements or
refunds of surplus.
(ii) Income statement credit
2024 | 2023 | |
US$m | US$m | |
By nature of expense: | ||
Administration expenses | 3 | 2 |
Charge within labour costs and operating profit | 3 | 2 |
Interest income | (7) | (4) |
Total net credit to the Group income statement | (4) | (2) |
(iii) Remeasurement recognised in the statement of comprehensive income
2024 | 2023 | |
US$m | US$m | |
Defined benefit pensions | 2 | (24) |
Post-employment medical benefits | — | 1 |
2 | (23) |
(b) Movements in net post-employment benefit assets/(obligations) recognised in the Group balance sheet
Present value of obligations | ||||||
Defined | Defined | Post- | ||||
benefit | benefit | employment | ||||
Fair value of | pensions | pensions | medical | Movements in | ||
plan assets | – funded | – unfunded | benefits | Total | net position | |
US$m | US$m | US$m | US$m | US$m | US$m | |
At 1 April 2023 | 866 | (692) | (36) | (3) | (731) | 135 |
Income statement credit/(charge): | ||||||
Administration expenses | (3) | — | — | — | — | (3) |
Interest income/(expense) | 42 | (33) | (2) | — | (35) | 7 |
Total credit/(charge) to the Group income statement | 39 | (33) | (2) | — | (35) | 4 |
Remeasurements: | ||||||
Return on plan assets other than interest | (11) | — | — | — | — | (11) |
Gains from change in demographic assumptions | — | 12 | — | — | 12 | 12 |
Gains from change in financial assumptions | — | 4 | 1 | — | 5 | 5 |
Experience losses | — | (3) | (1) | — | (4) | (4) |
Remeasurement of post-employment benefit assets | ||||||
and obligations | (11) | 13 | — | — | 13 | 2 |
Differences on exchange | 17 | (13) | (1) | — | (14) | 3 |
Contributions paid by the Group | 3 | — | — | — | — | 3 |
Benefits paid | (43) | 40 | 2 | 1 | 43 | — |
At 31 March 2024 | 871 | (685) | (37) | (2) | (724) | 147 |
Experian plc
Financial statements
228
Notes to the Group financial statements
continued
35. Post-employment benefits – IAS 19 information continued
Present value of obligations | ||||||
Defined | Defined | Post- | ||||
benefit | benefit | employment | ||||
Fair value of | pensions | pensions | medical | Movements in | ||
plan assets | – funded | – unfunded | benefits | Total | net position | |
US$m | US$m | US$m | US$m | US$m | US$m | |
At 1 April 2022 | 1,214 | (998) | (48) | (4) | (1,050) | 164 |
Income statement credit/(charge): | ||||||
Administration expenses | (2) | — | — | — | — | (2) |
Interest income/(expense) | 31 | (25) | (2) | — | (27) | 4 |
Total credit/(charge) to the Group income statement | 29 | (25) | (2) | — | (27) | 2 |
Remeasurements: | ||||||
Return on plan assets other than interest | (259) | — | — | — | — | (259) |
Gains from change in demographic assumptions | — | 15 | 1 | — | 16 | 16 |
Gains from change in financial assumptions | — | 252 | 9 | 1 | 262 | 262 |
Experience losses | — | (41) | (1) | — | (42) | (42) |
Remeasurement of post-employment benefit assets | ||||||
and obligations | (259) | 226 | 9 | 1 | 236 | (23) |
Differences on exchange | (76) | 63 | 3 | — | 66 | (10) |
Contributions paid by the Group | 2 | — | — | — | — | 2 |
Benefits paid | (44) | 42 | 2 | — | 44 | — |
At 31 March 2023 | 866 | (692) | (36) | (3) | (731) | 135 |
(c) Actuarial assumptions and sensitivities
The accounting valuations at 31 March 2024 have been based on the most recent actuarial valuations, updated to take account of the requirements of
IAS 19. The assumptions for the real discount rate, pension increases and mortality, used to calculate the present value of the defined benefit obligations,
all have a significant effect on the accounting valuation.
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. Indications of the sensitivity of the amounts reported at 31 March 2024 to changes in the
real discount rate, pension increases, life expectancy and medical costs are included below.
The absolute sensitivity numbers are stated on a basis consistent with the methodology used in determining the accounting valuation as at 31 March
2024. The methodology evaluates the effect of a change in each assumption on the relevant obligations, while holding all other assumptions constant.
(i) 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 |
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.
Experian plc
Annual Report 2024
229
35. Post-employment benefits – IAS 19 information continued
Financial statements
(ii) Mortality assumptions – average life expectancy on retirement at age 65 in normal health
2024 | 2023 | |
years | years | |
For a male currently aged 65 | 22.2 | 22.2 |
For a female currently aged 65 | 24.2 | 24.2 |
For a male currently aged 50 | 23.1 | 23.1 |
For a female currently aged 50 | 25.3 | 25.3 |
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.
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.
An increase in assumed life expectancy of 0.1 years would increase the defined benefit obligations at 31 March 2024 by approximately US$2m.
(iii) Post-employment medical benefits
The accounting valuation in respect of post-employment medical benefits assumes a rate of increase for medical costs. If this rate increased/decreased
by 1.0% per annum, the obligations at 31 March 2024 and the finance expense would remain unchanged.
(d) Assets of the Group’s defined benefit plans at fair value
2024 | 2023 | |||
US$m | % | US$m | % | |
Equities | 105 | 12 | 86 | 9 |
Index-linked gilts/Liability Driven Investments | 262 | 30 | 284 | 33 |
Global corporate bonds | 290 | 33 | 257 | 30 |
Secured credit | 142 | 17 | 145 | 17 |
Senior private debt | 37 | 4 | 51 | 6 |
Other | 35 | 4 | 43 | 5 |
871 | 100 | 866 | 100 |
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.
The Experian Pension Scheme investment strategy aims to reduce investment risk and funding volatility. With the exception of the allocation to senior
private debt, all other assets are regarded as being marketable and regularly traded. Over time, the Scheme is expected to increase its allocation to
liability matching assets, to provide cash flows to match expected benefit payments.
Other assets listed above mainly relate to cash in transit between investment managers and cash held for benefit payments, together with a small
with-profits investment.
The Trustee believes that environmental, social and governance (ESG) factors may have a material impact on investment risk and return outcomes.
ESG factors, including climate change and stewardship, are increasingly integrated within investment processes both in appointing new investment
managers and in monitoring existing investment managers. Monitoring is undertaken and documented on a regular basis, making use of the investment
consultant’s ESG rating framework.
The Group’s defined benefit plans have no holdings of ordinary shares or debt of the Company.
(e) Virgin Media case
In June 2023, the English High Court issued a judgment involving the Virgin Media NTL Pension Plan which held that amendments to the plan’s rules in
relation to benefit changes were invalid in the absence of a confirmation from the scheme actuary under Section 37 of the Pension Schemes Act 1993. Virgin
Media has appealed the judgment which is set to be heard in June 2024. At this stage we do not know what the outcome will be. If the judgment is upheld it
is expected to create a precedent that could impact other UK ‘contracted-out’ pension plans, including potentially the Experian Pension Scheme. We are in
discussion with our Trustee and will consider the impact of this judgment pending the outcome of the appeal hearing. Any resulting increase in pension
obligations is not anticipated to be material to the Group.
(f) Future payments
Experian plc
Financial statements
230
Notes to the Group financial statements
continued
(i) Net deferred tax assets/(liabilities)
The net deferred tax liability at the end of the year is presented in the Group balance sheet as:
2024 | 2023 | |
US$m | US$m | |
Deferred tax assets | 55 | 37 |
Deferred tax liabilities | (129) | (223) |
Net deferred tax liability | (74) | (186) |
(ii) Movements in net deferred tax assets/(liabilities)
Other | |||||||||
intangible | Retirement | ||||||||
assets | Share | benefit | Accounting | ||||||
(excluding | Tax losses | incentive | Accelerated | assets/ | provisions and | Deferred | |||
goodwill) | Goodwill | and credits | plans | depreciation | (obligations) | accruals | interest | Total | |
US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | |
At 1 April 2023 | (158) | (377) | 65 | 47 | 83 | (32) | 162 | 24 | (186) |
Differences on exchange | 3 | — | 2 | — | — | — | — | — | 5 |
Credit/(charge) recognised in the Group income | |||||||||
statement | 44 | (22) | (3) | 4 | 68 | (5) | 7 | — | 93 |
Additions through business combinations | (6) | — | 4 | — | — | — | — | — | (2) |
Credit recognised within OCI | — | — | — | — | — | 5 | 2 | — | 7 |
Credit recognised directly in equity on transactions | |||||||||
with owners | — | — | — | 9 | — | — | — | — | 9 |
Transfers | 8 | 5 | 4 | — | — | — | (17) | — | — |
At 31 March 2024 | (109) | (394) | 72 | 60 | 151 | (32) | 154 | 24 | (74) |
Other | |||||||||
intangible | Retirement | ||||||||
assets | Share | benefit | Accounting | ||||||
(excluding | Tax losses | incentive | Accelerated | assets/ | provisions and | Deferred | |||
goodwill) | Goodwill | and credits | plans | depreciation | (obligations) | accruals | interest | Total | |
US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | |
At 1 April 2022 | (230) | (347) | 96 | 50 | (8) | (42) | 149 | 25 | (307) |
Differences on exchange | 5 | 5 | (3) | — | (2) | (1) | (2) | — | 2 |
Credit/(charge) recognised in the Group income | |||||||||
statement | 71 | (35) | (30) | 1 | 93 | 3 | 18 | (1) | 120 |
Additions through business combinations | (4) | — | — | — | — | — | — | — | (4) |
Credit/(charge) recognised within OCI | — | — | — | — | — | 8 | (3) | — | 5 |
(Charge) recognised directly in equity on transactions | |||||||||
with owners | — | — | — | (4) | — | — | — | — | (4) |
Transfers | — | — | 2 | — | — | — | — | — | 2 |
At 31 March 2023 | (158) | (377) | 65 | 47 | 83 | (32) | 162 | 24 | (186) |
Experian plc
Annual Report 2024
231
36. Deferred and current tax continued
Financial statements
(iii) Other information on deferred tax assets and liabilities
Judgment is required when assessing the recognition of deferred tax assets. The Group has not recognised deferred tax on losses of US$521m (2023:
US$543m) that could be utilised against future taxable income or on US$215m (2023: US$224m) of capital losses that could be utilised against future
taxable gains. While these losses are available indefinitely, they have arisen in undertakings in which it is not currently anticipated that future benefit will
be available from their use.
No deferred tax liability has been recognised on temporary differences of US$8,500m (2023: US$9,224m) relating to the unremitted earnings of overseas
subsidiaries. The Group is able to control the timing of the reversal of these temporary differences and it is probable that they will not reverse in the
foreseeable future. In addition, tax legislation and double tax treaties provide for exemptions from tax for most repatriated profits, subject to certain
exceptions.
During the year the main rate of UK corporation tax was 25% (2023: 19%). Deferred tax is recognised at the rate prevailing when temporary differences
2024 | 2023 | ||
Notes | US$m | US$m | |
At 1 April | (85) | (72) | |
Differences on exchange | 4 | (3) | |
Tax charge in the Group income statement | 17(a) | (441) | (521) |
Tax recognised directly in equity on transactions with owners | 1 | (5) | |
Other tax paid | 544 | 525 | |
Transfers | (9) | (9) | |
At 31 March | 14 | (85) | |
Presented in the Group balance sheet as: | |||
Current tax assets | 97 | 50 | |
Current tax liabilities | (83) | (135) | |
14 | (85) |
Experian plc
Financial statements
232
Notes to the Group financial statements
continued
2024 | 2023 | ||||||||
North | |||||||||
North | North | America | |||||||
America | America | security | |||||||
legal | Other | legal | incident | Other | |||||
claims Restructuring | liabilities | Total | claims | costs | Restructuring | liabilities | Total | ||
US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | |
At 1 April | 25 | 13 | 21 | 59 | 2 | 14 | — | 21 | 37 |
Differences on exchange | — | — | 1 | 1 | — | — | — | (1) | (1) |
Amounts charged in the year | 1 | — | 4 | 5 | 26 | — | 15 | 4 | 45 |
Utilised | (22) | (6) | (6) | (34) | (3) | (14) | (2) | (3) | (22) |
At 31 March | 4 | 7 | 20 | 31 | 25 | — | 13 | 21 | 59 |
Presented in the Group balance sheet as: | |||||||||
Current provisions | 4 | 7 | 17 | 28 | 25 | — | 13 | 18 | 56 |
Non-current provisions | — | — | 3 | 3 | — | — | — | 3 | 3 |
4 | 7 | 20 | 31 | 25 | — | 13 | 21 | 59 |
A charge for legal costs of US$1m (2023: US$26m) was recognised in respect of a number of historical legal claims in North America, offset by
insurance recoveries of US$nil (2023: US$29m).
In September 2015, Experian North America suffered an unauthorised intrusion to its Decision Analytics computing environment that allowed
unauthorised acquisition of certain data belonging to a client, T-Mobile USA, Inc. We notified the individuals who may have been affected and offered free
credit monitoring and identity theft resolution services. In addition, government agencies were notified as required by law. The one remaining claim in
respect of the incident was settled during the year ended 31 March 2023 for US$14m.
A charge of US$15m was incurred in the year ended 31 March 2023 in connection with restructuring, primarily in the EMEA and Asia Pacific regions
(note 15(d)).
At 31 March 2024, there were 972.2m shares in issue (2023: 971.4m). During the year ended 31 March 2024, 0.8m (2023: 0.8m) shares were issued and
none (2023: none) were cancelled. Further information on share capital is contained in note Q to the Company financial statements.
The difference between the amounts shown in the Group and Company financial statements in respect of called-up share capital and the share premium
(a) Retained earnings
Retained earnings comprise net profits retained in the Group after the payment of equity dividends. There are no significant statutory, contractual or
exchange control restrictions on distributions by Group undertakings.
(b) Other reserves
Merger | Hedging | Translation | Own shares | Total other | |
reserve | reserve | reserve | reserve | reserves | |
US$m | US$m | US$m | US$m | US$m | |
At 1 April 2023 | (15,682) | 7 | (1,465) | (1,273) | (18,413) |
Purchase of shares by employee trusts | — | — | — | (56) | (56) |
Purchase of shares held as treasury shares | — | — | — | (69) | (69) |
Other vesting of awards and exercises of share options | — | — | — | 55 | 55 |
Change in the fair value of hedging instruments recognised in OCI | — | 14 | — | — | 14 |
Amounts reclassified from OCI to the Group income statement | — | (10) | — | — | (10) |
Currency translation gains | — | — | 42 | — | 42 |
At 31 March 2024 | (15,682) | 11 | (1,423) | (1,343) | (18,437) |
Experian plc
Annual Report 2024
233
39. Retained earnings and other reserves continued
(i) Movements in reserves continued
Financial statements
Merger | Hedging | Translation | Own shares | Total other | |
reserve | reserve | reserve | reserve | reserves | |
US$m | US$m | US$m | US$m | US$m | |
At 1 April 2022 | (15,682) | 15 | (1,268) | (1,129) | (18,064) |
Purchase of shares by employee trusts | — | — | — | (45) | (45) |
Purchase of shares held as treasury shares | — | — | — | (149) | (149) |
Other vesting of awards and exercises of share options | — | — | — | 50 | 50 |
Change in the fair value of hedging instruments recognised in OCI | — | (38) | — | — | (38) |
Amounts reclassified from OCI to the Group income statement | — | 30 | — | — | 30 |
Currency translation losses | — | — | (197) | — | (197) |
At 31 March 2023 | (15,682) | 7 | (1,465) | (1,273) | (18,413) |
(ii) Nature of reserves
The merger reserve arose on the demerger from GUS plc in 2006 and is the difference between the share capital and share premium of GUS plc and the
nominal value of the share capital of the Company before a share offer at that date.
Movements on the hedging reserve and the position at the balance sheet date reflect hedging transactions, originating from the management of foreign
exchange risk, which are not charged or credited to the Group income statement, net of related tax.
Movements on the translation reserve and the position at the balance sheet date reflect foreign currency translations since 1 April 2004 which are not
charged or credited to the Group income statement, net of related tax. The movement in the year ended 31 March 2024 comprises currency translation
gains of US$42m (2023: losses of US$197m) recognised directly in Other comprehensive income.
between the amounts shown in the Group and Company financial statements in respect of this reserve arose due to translation of pound sterling
amounts into US dollars at different exchange rates on different translation dates.
(iii) Movements in own shares held and own shares reserve
Number of own shares held | Cost of own shares held | |||||
Treasury | Trusts | Total | Treasury | Trusts | Total | |
million | million | million | US$m | US$m | US$m | |
At 1 April 2023 | 52 | 7 | 59 | 1,023 | 250 | 1,273 |
Purchase of shares by employee trusts | — | 2 | 2 | — | 56 | 56 |
Purchase of shares held as treasury shares | 2 | — | 2 | 69 | — | 69 |
Other vesting of awards and exercises of share options | (1) | (3) | (4) | (16) | (39) | (55) |
At 31 March 2024 | 53 | 6 | 59 | 1,076 | 267 | 1,343 |
Number of own shares held | Cost of own shares held | |||||
Treasury | Trusts | Total | Treasury | Trusts | Total | |
million | million | million | US$m | US$m | US$m | |
At 1 April 2022 | 49 | 8 | 57 | 887 | 242 | 1,129 |
Purchase of shares by employee trusts | — | 2 | 2 | — | 45 | 45 |
Purchase of shares held as treasury shares | 4 | — | 4 | 149 | — | 149 |
Other vesting of awards and exercises of share options | (1) | (3) | (4) | (13) | (37) | (50) |
At 31 March 2023 | 52 | 7 | 59 | 1,023 | 250 | 1,273 |
Experian plc
Financial statements
234
Notes to the Group financial statements
continued
(a) Cash generated from operations
Notes
2024 |
US$m
2023
US$m
Profit before tax
Share of post-tax loss of associates
Net finance expense
Operating profit
Profit on disposal of property, plant and equipment
(1 )
Net (profit)/loss on disposal of operations
15(b)
(5 )
Profit on disposal of associate
15(c), 23
(1 )
Impairment of goodwill
20(a), 20(d)
Impairment of other intangible assets
1
21
Impairment of held-for-sale assets
Amortisation and depreciation
2
13
Charge in respect of share incentive plans
33(a)
(Increase)/decrease in working capital
40(b)
(32 )
Acquisition expenses – difference between income statement charge and amounts paid
(9 )
Adjustment to the fair value of contingent consideration
Movement in Exceptional and other non-benchmark items included in working capital
(58 )
Movement in Exceptional items included in other intangible assets
Cash generated from operations
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$192m) which is excluded from Benchmark PBT.
(b) (Increase)/decrease in working capital
2024
US$m
2023
US$m
Trade and other receivables
(155 )
(171 )
Trade and other payables
(Increase)/decrease in working capital
(32 )
(c) Purchase of other intangible assets
2024 | 2023 | |
US$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$m | |
Purchase of subsidiaries (note 41(a)) | 366 | 268 |
Less: net cash acquired with subsidiaries (note 41(a)) | (17) | (5) |
Settlement of deferred and contingent consideration | 113 | 46 |
As reported in the Group cash flow statement | 462 | 309 |
Acquisition expenses paid | 50 | 38 |
Settlement of put options held over shares in subsidiaries | — | 133 |
Cash outflow for acquisitions (non-GAAP measure) | 512 | 480 |
Experian plc
Annual Report 2024
235
40. Notes to the Group cash flow statement continued
Financial statements
(e) Cash outflow in respect of net share purchases (non-GAAP measure)
2024 | 2023 | |
US$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 | ||
Notes | US$m | US$m | |
Cash generated from operations | 40(a) | 2,440 | 2,358 |
Purchase of other intangible assets | 40(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, as set out
Experian plc
Financial statements
236
Notes to the Group financial statements
continued
(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 40(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 40(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$4m.
We engage with third-party experts to assist with the valuation process for all significant or complex acquisitions, including for the valuation of the
contingent consideration and put option liabilities associated with the MOVA acquisition. Fair values on the acquisition of MOVA have been finalised;
other amounts are provisional and will be finalised no later than one year after the date of acquisition. Provisional amounts, predominantly for intangible
assets, associated tax balances and contingent consideration have been included at 31 March 2024, as a consequence of the timing and complexity of
the acquisitions.
Goodwill represents the synergies, assembled workforces and future growth potential of the acquired businesses. The goodwill in relation to WaveHDC
and three other acquisitions is currently deductible for tax purposes, and consequently no deferred tax liability has been recognised on the fair value
adjustments associated with these acquisitions.
Experian plc
Annual Report 2024
237
41. Acquisitions continued
Financial statements
(b) Additional information
(i) Current year acquisitions
WaveHDC | Other | Total | |
US$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 30(h).
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
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
Experian plc
Financial statements
238
Notes to the Group financial statements
continued
At 31 March 2023 two small subsidiaries in the EMEA region were classified as held-for-sale. These disposals have now been finalised with a profit on
sale of US$2m recognised in the year. A further subsidiary undertaking in the Asia Pacific region, was classified as held-for-sale at 31 March 2023. This
sale is now not expected to complete, and its assets and liabilities have been reclassified accordingly.
The disposal of a UK property classified as held-for-sale at 31 March 2023 completed during the year, with no profit or loss recognised on disposal. The
sale of a further UK property recorded as held-for-sale at 31 March 2023 is no longer expected to proceed, and accordingly the asset has been
reclassified as a freehold property at 31 March 2024.
2024 | 2023 | |
US$m | US$m | |
Assets classified as held-for-sale: | ||
Property, plant and equipment | — | 12 |
Trade and other receivables | — | 4 |
Assets classified as held-for-sale | — | 16 |
Liabilities classified as held-for-sale: | ||
Trade and other payables | — | (3) |
Liabilities classified as held-for-sale | — | (3) |
2024 | 2023 | |
US$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
(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.
Experian plc
Annual Report 2024
239
45. Contingencies continued
Financial statements
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
(a) Related undertakings
A full list of the Company’s related undertakings, including subsidiary and associate undertakings, is given in note U to the Company financial statements.
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.
(c) Transactions with other related undertakings
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. These undertakings are listed in note U(v) to the Company financial statements.
• 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 plans are set out in notes 34 and 35. During the year ended 31 March 2024, US$3m (2023: US$3m) was
paid to Experian Medical Plan Limited, in connection with the provision of healthcare benefits.
2024 | 2023 | |
US$m | US$m | |
Salaries and short-term employee benefits | 12 | 9 |
Share incentive plans | 14 | 13 |
26 | 22 |
Key management personnel comprises the Company’s executive and non-executive directors and further details of their remuneration are given in the
audited parts of the Report on directors’ remuneration. There were no other material transactions with the Group in which the key management
Details of the second interim dividend announced since the end of the reporting period are given in note 19.
On 4 April 2024, we agreed to acquire Credit Data Solutions Pty Ltd (illion), a leading consumer and commercial credit bureau in Australia and New
Zealand, and on 25 April 2024, we agreed to acquire TEx Soluções em Tecnologia Ltda., an InsurTech company in Brazil that offers innovative solutions
Experian plc
Financial statements
240
for the year ended 31 March 2024
2024 | 2023 | ||
Notes | US$m | US$m | |
Other operating income | F | 108.5 | 130.9 |
Staff costs | G | (4.4) | (3.9) |
Depreciation | M | (0.7) | (0.7) |
Other operating charges | F | (142.5) | (139.8) |
Operating loss | (39.1) | (13.5) | |
Dividend income from subsidiary undertakings | H | 1,500.0 | 975.0 |
Interest receivable and similar income | I | 7.6 | — |
Impairment of investment in subsidiary undertaking | N | — | (79.0) |
Interest payable and similar expenses | J | (0.3) | (2.0) |
Profit before tax | 1,468.2 | 880.5 | |
Tax on profit | K | 3.3 | 3.1 |
Profit after tax and for the financial year | 1,471.5 | 883.6 |
Company statement of comprehensive income
for the year ended 31 March 2024
The Company has no recognised items of income and expenditure other than those included in the profit and loss account. Total comprehensive income
for the financial year is therefore equal to the profit for the financial year.
Experian plc
Annual Report 2024
241
Financial statements
Company balance sheet
at 31 March 2024
2024 | 2023 | ||
Notes | US$m | US$m | |
Fixed assets | |||
Tangible assets | M(i) | 4.7 | 5.7 |
Investments – shares in Group undertakings | N | 21,960.1 | 20,609.6 |
Deferred tax assets | K | 2.9 | 2.8 |
21,967.7 | 20,618.1 | ||
Current assets | |||
Debtors – amounts falling due within one year | O | 254.2 | 120.9 |
Cash at bank and in hand | 0.6 | 0.4 | |
Current liabilities | |||
Creditors – amounts falling due within one year | P | (19.8) | (2.6) |
Net current assets | 235.0 | 118.7 | |
Total assets less current liabilities | 22,202.7 | 20,736.8 | |
Creditors – amounts falling due after more than one year | P | (16.3) | (3.8) |
Net assets | 22,186.4 | 20,733.0 | |
Equity | |||
Called-up share capital | Q | 73.3 | 73.2 |
Share premium account | Q | 1,490.2 | 1,469.1 |
Profit and loss account reserve | R | 20,622.9 | 19,190.7 |
Total shareholders' funds | 22,186.4 | 20,733.0 |
These financial statements were approved by the Board on 14 May 2024 and were signed on its behalf by:
Craig Boundy
Director
Experian plc
Financial statements
242
Company statement of changes in equity
for the year ended 31 March 2024
Called-up | Share | |||||
share | premium | Profit and loss account reserve | ||||
capital | account | Profit and | Own shares | Total | Total | |
(Note Q) | (Note Q) | loss account | reserve | (Note R) | equity | |
US$m | US$m | US$m | US$m | US$m | US$m | |
At 1 April 2023 | 73.2 | 1,469.1 | 20,431.9 | (1,241.2) | 19,190.7 | 20,733.0 |
Profit and Total comprehensive income for the financial year | — | — | 1,471.5 | — | 1,471.5 | 1,471.5 |
Transactions with owners: | ||||||
Employee share incentive plans: | ||||||
– value of employee services | — | — | 132.3 | — | 132.3 | 132.3 |
– shares issued on vesting | 0.1 | 21.1 | — | — | — | 21.2 |
– purchase of shares by employee trusts | — | — | — | (56.0) | (56.0) | (56.0) |
– other vesting of awards and exercises of share options | — | — | (54.9) | 54.9 | — | — |
Purchase of shares held as treasury shares | — | — | — | (69.3) | (69.3) | (69.3) |
Dividends paid | — | — | (46.3) | — | (46.3) | (46.3) |
Transactions with owners | 0.1 | 21.1 | 31.1 | (70.4) | (39.3) | (18.1) |
At 31 March 2024 | 73.3 | 1,490.2 | 21,934.5 | (1,311.6) | 20,622.9 | 22,186.4 |
Called-up | Share | |||||
share | premium | Profit and loss account reserve | ||||
capital | account | Profit and | Own shares | Total | Total | |
(Note Q) | (Note Q) | loss account | reserve | (Note R) | equity | |
US$m | US$m | US$m | US$m | US$m | US$m | |
At 1 April 2022 | 73.1 | 1,449.9 | 19,522.9 | (1,097.3) | 18,425.6 | 19,948.6 |
Profit and Total comprehensive income for the financial year | — | — | 883.6 | — | 883.6 | 883.6 |
Transactions with owners: | ||||||
Employee share incentive plans: | ||||||
– value of employee services | — | — | 128.6 | — | 128.6 | 128.6 |
– shares issued on vesting | 0.1 | 19.2 | — | — | — | 19.3 |
– purchase of shares by employee trusts | — | — | — | (44.7) | (44.7) | (44.7) |
– other vesting of awards and exercises of share options | — | — | (50.2) | 50.2 | — | — |
Purchase of shares held as treasury shares | — | — | — | (149.4) | (149.4) | (149.4) |
Dividends paid | — | — | (53.0) | — | (53.0) | (53.0) |
Transactions with owners | 0.1 | 19.2 | 25.4 | (143.9) | (118.5) | (99.2) |
At 31 March 2023 | 73.2 | 1,469.1 | 20,431.9 | (1,241.2) | 19,190.7 | 20,733.0 |
Experian plc
Annual Report 2024
243
Notes to the Company financial statements
for the year ended 31 March 2024
Financial statements
A. Corporate information
Corporate information for Experian plc (the Company) is set out in note 1
to the Group financial statements, with further information given in the
Strategic report and the Corporate governance report.
B. Basis of preparation
The separate financial statements of the Company are:
• prepared on the going concern basis, under the historical cost
convention, and in accordance with UK accounting standards
• presented in US dollars, the Company’s functional currency, and
• designed to include disclosures in line with those required by those
parts of the UK Companies Act 2006 applicable to companies reporting
under UK accounting standards even though the Company is
incorporated and registered in Jersey.
The directors opted to prepare the financial statements for the year ended
31 March 2024 in accordance with FRS 101 ‘Reduced Disclosure
Framework’. The Company intends to continue to use this accounting
framework until further notice.
Going concern
The directors continue to adopt the going concern basis of accounting in
preparing the financial statements. Details of the going concern
assessment for the Group and the Company are provided in note 2 to the
Group financial statements.
C. FRS 101 exemptions
FRS 101 allows certain exemptions from the requirements of IFRS to
avoid the duplication of information provided in the Group financial
statements and to provide more concise financial reporting in entity
financial statements. The following exemptions have therefore been
applied in the preparation of these financial statements:
• Paragraphs 45(b) and 46 to 52 of IFRS 2 ‘Share-based Payment’,
exempting the Company from providing details of share options and of
how the fair value of services received was determined.
• IFRS 7 ‘Financial Instruments: Disclosures’.
• Paragraphs 91 to 99 of IFRS 13 ‘Fair Value Measurement’, exempting the
Company from disclosing valuation techniques and inputs used for the
measurement of assets and liabilities.
• Paragraph 38 of IAS 1 ‘Presentation of Financial Statements’, exempting
the Company from disclosing comparative information required by:
– paragraph 79(a)(iv) of IAS 1 – shares outstanding at the beginning and
at the end of the period
–paragraph 73(e) of IAS 16 ‘Property, Plant and Equipment’ –
reconciliations between the carrying amount at the beginning and end
of the period.
• The following paragraphs of IAS 1:
–paragraphs 10(d) and 111, exempting the Company from providing a
cash flow statement and information
–paragraph 16, exempting the Company from providing a statement of
compliance with all IFRS
–paragraph 38A, exempting the Company from the requirement for a
minimum of two of each primary statement and the related notes
–paragraphs 38B to D, exempting the Company from the requirement to
provide additional comparative information
–paragraphs 134 to 136, exempting the Company from presenting
capital management disclosures.
• IAS 7 ‘Statement of Cash Flows’.
• Paragraphs 30 and 31 of IAS 8 ‘Accounting Policies, Changes in
Accounting Estimates and Errors’, exempting the Company from
disclosing information where it has not applied a new IFRS which has
been issued but is not yet effective.
• Paragraph 17 of IAS 24 ‘Related Party Disclosures’, exempting the
Company from disclosing details of key management compensation.
• The requirements in IAS 24 to disclose related party transactions with
wholly-owned members of the Group.
The use of critical accounting estimates and management judgment is
required in applying the accounting policies. Areas involving a higher
degree of judgment or complexity, or where assumptions and estimates
are significant to the Company financial statements, are highlighted in
note E.
D. Material accounting policies
The material accounting policies applied are summarised below. They
have been consistently applied to both years presented. The explanations
of these policies focus on areas where judgment is applied or which are
particularly important in the financial statements.
There are no new standards, amendments to existing standards or
interpretations that are effective for the year ended 31 March 2024 that
have had a material impact on the Company’s financial statements.
Content from accounting standards, amendments and interpretations is
excluded where there is no policy choice under UK accounting standards.
(i) Foreign currency
Transactions in foreign currencies are recorded at the exchange rate
prevailing at the transaction date. Monetary assets and liabilities
denominated in foreign currencies are retranslated at the exchange rate
prevailing at the balance sheet date. All differences are taken to the profit
and loss account in the year in which they arise.
(ii) Investments – shares in Group undertakings
Investments in Group undertakings are stated at cost less any provisions
for impairment. The fair value of share incentives issued by the Company
to employees of Group undertakings is accounted for as a capital
contribution and recognised as an increase in the Company’s investment
in Group undertakings, with a corresponding increase in equity.
Experian plc
Financial statements
244
Notes to the Company financial statements
continued
D. Material accounting policies continued
(iii) Debtors and creditors
Debtors are initially recognised at fair value and subsequently measured
at this value. Where the time value of money is material, they are then
carried at amortised cost using the effective interest method. Creditors
are initially recognised at fair value. Where the time value of money is
material, they are then carried at amortised cost using the effective
interest method.
(iv) Accounting for derivative financial instruments
The Company uses forward foreign exchange contracts to manage its
exposures to fluctuations in foreign exchange rates. The interest
differential reflected in forward foreign exchange contracts is taken to
interest receivable and similar income or interest payable and similar
expenses. Forward foreign exchange contracts are recognised at fair
value, based on forward foreign exchange market rates at the balance
sheet date. Gains or losses on forward foreign exchange contracts are
taken to the profit and loss account in the year in which they arise.
(v) Tax
Current tax is calculated on the basis of the tax laws enacted or
substantively enacted at the balance sheet date in Ireland, where the
Company is resident.
Deferred tax is provided in respect of temporary differences that have
originated but not reversed at the balance sheet date and is determined
using the tax rates that are expected to apply when the temporary
differences reverse. Deferred tax assets are recognised only to the
extent that they are expected to be recoverable.
(vi) Own shares
The Group has a number of equity-settled, share-based employee
incentive plans. In connection with these, shares in the Company are held
by The Experian plc Employee Share Trust and the Experian UK Approved
All-Employee Share Plan. The assets, liabilities and expenses of these
separately administered trusts are included in the financial statements
as if they were the Company’s own. The trusts’ assets mainly comprise
Experian shares, which are shown as a deduction from total shareholders’
funds at cost.
Experian shares purchased and held as treasury shares, in connection
with the above plans and any share purchase programme, are also shown
as a deduction from total shareholders’ funds at cost. The par value of
shares that are purchased and cancelled, in connection with any share
purchase programme, is accounted for as a reduction in called-up share
capital with any cost in excess of that amount being deducted from the
profit and loss account. The Company is not required to recognise the par
value of cancelled shares in a capital redemption reserve.
Contractual obligations to purchase own shares are recognised at the
net present value of expected future payments. Gains and losses in
connection with such obligations are recognised in the profit and loss
account. Gains and losses which arise on financial instruments created
by advance instructions to trade in own shares are recognised directly
in equity.
(vii) Profit and loss account format
Income and expenses, which are recognised on an accruals basis,
are reported by nature in the profit and loss account, as this reflects
the composition of the Company’s income and cost base.
(viii) Financial guarantee contracts
Financial guarantees are provided by the Company to subsidiary
undertakings for certain debt instruments. The Company considers these
to be within the scope of IFRS 9 ‘Financial Instruments’ and accounts for
them as such. Where the Company receives a fee in respect of these
guarantees, income is recognised in the profit and loss account in the
period to which it relates. Where the guarantee is provided for no
consideration, the fair value of the guarantee is recognised as a capital
contribution within investments in Group undertakings, with the
associated deferred income recognised on a straight-line basis over
the life of the guarantee.
(ix) Dividend income
Dividend income is recognised in the Company profit and loss account on
the date on which the Company’s right to receive payment is established.
Liquidation dividends are treated as a return of capital to the extent they
are used to recover the carrying value of the investment in the liquidated
entity. Any amount received in excess of the investment value is treated
as income in the Company profit and loss account.
Experian plc
Annual Report 2024
245
Financial statements
E. Critical accounting estimates, assumptions and judgments
(i) Critical accounting estimates and assumptions
In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amount of income, costs
and charges, assets and liabilities and the disclosure of contingent liabilities. The resulting accounting estimates, which are based on management’s best
judgment at the date of the financial statements will, by definition, seldom equal the related actual results.
There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year.
(ii) Critical judgments
In applying the Company’s accounting policies, management may make judgments that have a significant effect on the amounts recognised in the
Company financial statements. These judgments may include the classification of transactions between the Company profit and loss account and the
Company balance sheet. There are no such judgments applicable to these financial statements.
F. Other operating income and charges
Other operating income and expenses principally comprise charges to and from other Group undertakings in respect of Group management services
and guarantees provided during the year. The decrease in other operating income and increase in operating charges in the year ended 31 March 2024
compared to the prior year is due to a change in the overall cost of providing management services together with the application of an updated
methodology for determining recharges to subsidiary undertakings. Other operating charges include a fee of US$0.1m (2023: US$0.1m) payable to the
Company’s auditor and its associates for the audit of the Company financial statements.
G. Staff costs
2024 | 2023 | |
US$m | US$m | |
Directors' fees | 2.9 | 2.4 |
Wages and salaries | 1.3 | 1.3 |
Social security costs | 0.1 | 0.1 |
Other pension costs | 0.1 | 0.1 |
4.4 | 3.9 |
Executive directors of the Company are employed by other Group undertakings and details of their remuneration, together with that of the non-executive
directors, are given in the audited part of the Report on directors’ remuneration. The Company had three employees in the current and prior year.
H. Dividend income from subsidiary undertakings
During the year subsidiary undertakings paid dividends of US$1,500.0m (2023: US$975.0m) to the Company, in connection with group restructuring.
I. Interest receivable and similar income
2024 | 2023 | |
US$m | US$m | |
Interest receivable on amounts owed by subsidiary undertakings | 2.5 | — |
Foreign exchange gains | 5.1 | — |
7.6 | — |
J. Interest payable and similar expenses
2024 | 2023 | |
US$m | US$m | |
Interest payable on lease obligation | 0.3 | 0.4 |
Interest payable on amounts owed to subsidiary undertakings | — | 1.5 |
Foreign exchange losses | — | 0.1 |
0.3 | 2.0 |
Experian plc
Financial statements
246
Notes to the Company financial statements
continued
K. Tax on profit
(i) Analysis of tax credit in the profit and loss account
2024 | 2023 | |
US$m | US$m | |
Current tax: | ||
Irish corporation tax credit on profit for the financial year | (4.4) | (2.9) |
Adjustment in respect of prior years | 1.2 | — |
Total current tax credit | (3.2) | (2.9) |
Deferred tax: | ||
Adjustment in respect of prior years | (0.1) | (0.2) |
Total deferred tax credit | (0.1) | (0.2) |
Tax credit for the year | (3.3) | (3.1) |
(ii) Factors affecting the tax credit for the financial year
The tax credit for the year is at a rate lower (2023: lower) than the main rate of Irish corporation tax of 25% (2023: 25%) with the differences explained
below.
2024 | 2023 | |
US$m | US$m | |
Profit before tax | 1,468.2 | 880.5 |
Profit before tax multiplied by the applicable rate of tax | 367.1 | 220.1 |
Effects of: | ||
Income not taxable | (376.9) | (245.7) |
Expenses not deductible | 1.0 | 20.4 |
Adjustment in respect of prior years | 1.1 | (0.2) |
Losses recognised at a lower rate of tax (12.5%) | 4.4 | 2.3 |
Tax credit for the year | (3.3) | (3.1) |
The Company’s tax charge will continue to be influenced by the nature of its income and expenditure and prevailing Irish and Jersey tax laws.
(iii) Deferred tax asset
The deferred tax asset is in respect of tax losses and the movements thereon are as follows:
2024 | 2023 | |
US$m | US$m | |
At 1 April | 2.8 | 2.6 |
Tax credit in the profit and loss account | 0.1 | 0.2 |
At 31 March | 2.9 | 2.8 |
The Company has no unrecognised deferred tax (2023: US$nil).
L. Dividends
Total gross dividends of US$509.4m (2023: US$482.4m) were paid to Experian shareholders during the year. The Company paid interim dividends of
US$46.3m (2023: US$53.0m) to those shareholders who did not elect to receive dividends under the Income Access Share arrangements. The balance of
US$463.1m (2023: US$429.4m) was paid by a subsidiary undertaking, Experian (UK) Finance Limited (EUKFL), under the Income Access Share
arrangements. The Company’s profit and loss account reserve is available for distribution by way of dividend. At 31 March 2024, the distributable
reserves of EUKFL as determined under UK company law were US$6,558.7m (2023: US$8,574.2m).
Since the balance sheet date, the directors have announced a second interim dividend of 40.50 US cents per ordinary share for the year ended 31 March
2024. No part of this dividend is included as a liability in these financial statements. Further details of payment arrangements, including the Income
Access Share arrangements, are given in the Shareholder and corporate information section of the Annual Report.
Experian plc
Annual Report 2024
247
Financial statements
M. Leases
The Company leases its offices and payments are reset periodically to reflect market rental rates.
(i) Tangible assets
Right-of-use | |||
Leasehold | assets | ||
improvements | Buildings | Total | |
US$m | US$m | US$m | |
Cost | |||
At 1 April 2023 | 2.2 | 4.0 | 6.2 |
Disposal | — | (0.3) | (0.3) |
At 31 March 2024 | 2.2 | 3.7 | 5.9 |
Accumulated depreciation | |||
At 1 April 2023 | 0.1 | 0.4 | 0.5 |
Charge for the year | 0.3 | 0.4 | 0.7 |
At 31 March 2024 | 0.4 | 0.8 | 1.2 |
Net book amount at 31 March 2023 | 2.1 | 3.6 | 5.7 |
Net book amount at 31 March 2024 | 1.8 | 2.9 | 4.7 |
Additions to right-of-use assets in the year ended 31 March 2023 were US$3.9m.
(ii) Lease obligation
2024 | 2023 | |
US$m | US$m | |
Current | 0.4 | 0.5 |
Non-current | 3.2 | 3.8 |
At 31 March | 3.6 | 4.3 |
(iii) Maturity of lease obligation – contractual undiscounted cash flows
2024 | 2023 | |
US$m | US$m | |
Less than one year | 0.5 | 0.6 |
One to two years | 0.5 | 0.6 |
Two to three years | 0.5 | 0.6 |
Three to four years | 0.5 | 0.6 |
Four to five years | 0.5 | 0.6 |
Over five years | 1.9 | 2.0 |
Total undiscounted lease obligation at 31 March | 4.4 | 5.0 |
(iv) Amounts recognised in the Company profit and loss account
2024 | 2023 | |
US$m | US$m | |
Depreciation charge for right-of-use assets | 0.4 | 0.6 |
Interest expense | 0.3 | 0.4 |
0.7 | 1.0 |
(v) Lease cash flow
Lease payments in the year were US$0.5m (2023: US$0.3m), of which US$0.2m (2023: US$0.1m) related to payments of interest and US$0.3m (2023:
US$0.2m) was for repayments of principal.
Experian plc
Financial statements
248
Notes to the Company financial statements
continued
N. Investments – shares in Group undertakings
2024 | 2023 | |
US$m | US$m | |
Cost | ||
At 1 April | 20,688.6 | 19,978.5 |
Additions – fair value of share incentives issued to Group employees | 132.3 | 128.6 |
Additions – fair value of financial guarantees to subsidiary undertakings | 18.2 | — |
Additional investment in direct subsidiary undertakings | 1,200.0 | 581.5 |
Disposal through group reorganisation | (79.0) | — |
At 31 March | 21,960.1 | 20,688.6 |
Accumulated impairment | ||
At 1 April | 79.0 | — |
Charge for the year | — | 79.0 |
Disposal through group reorganisation | (79.0) | — |
At 31 March | — | 79.0 |
Net book amount at 31 March | 21,960.1 | 20,609.6 |
During the year ended 31 March 2024, Experian plc undertook a number of transactions as a result of group restructuring, including the subscription for
additional shares in existing subsidiary undertakings of US$1,200.0m (2023: US$581.5m). The Company also disposed of its direct investment in
Experian Ireland Investments Limited, transferring its shareholding to a subsidiary undertaking at the net book amount.
Following a dividend payment by Experian Ireland Investments Limited in the year ended 31 March 2023, and the consequent reduction in that
company’s net assets, the Company performed an impairment review, and recognised an impairment charge in that year of US$79.0m in respect of the
Company’s investment in the entity.
A list of the Company’s subsidiary undertakings is given in note U(i). The Company directly holds interests in the whole of the issued share capital of the
following undertakings:
Company | Country of incorporation |
Experian Group Services Limited | Ireland |
Experian Holdings Ireland Limited | Ireland |
O. Debtors – amounts falling due within one year
2024 | 2023 | |
US$m | US$m | |
Amounts owed by Group undertakings | 248.8 | 117.4 |
Other debtors | 1.0 | 0.6 |
Corporation tax asset | 4.4 | 2.9 |
254.2 | 120.9 |
Amounts owed by Group undertakings are primarily unsecured, interest bearing and repayable on demand.
Experian plc
Annual Report 2024
249
Financial statements
P. Creditors
Due within | Due after more | Due within | Due after more | |
one year | than one year | one year | than one year | |
2024 | 2024 | 2023 | 2023 | |
US$m | US$m | US$m | US$m | |
Amounts owed to Group undertakings | 12.0 | — | — | — |
Lease obligation (note M) | 0.4 | 3.2 | 0.5 | 3.8 |
Accruals and deferred income | 7.4 | 13.1 | 2.1 | — |
19.8 | 16.3 | 2.6 | 3.8 |
Amounts owed to Group undertakings are primarily unsecured, interest free and repayable on demand.
Q. Called-up share capital and share premium account
2024 | 2023 | |
Allotted and fully paid | US$m | US$m |
972,189,047 (2023: 971,375,480) ordinary shares of 10 US cents | 73.3 | 73.2 |
20 (2023: 20) deferred shares of 10 US cents | — | — |
73.3 | 73.2 |
At 31 March 2024 and 31 March 2023, the authorised share capital of the Company was US$200m, divided into 1,999,999,980 ordinary shares and 20
deferred shares, each of 10 US cents. The ordinary shares carry the rights (i) to dividend, (ii) to attend or vote at general meetings and (iii) to participate
in the assets of the Company beyond repayment of the amounts paid up or credited as paid up on them. The deferred shares carry no such rights.
During the year ended 31 March 2024, the Company issued 813,567 (2023: 761,670) ordinary shares for a consideration of US$21.2m (2023: US$19.3m)
in connection with the Group’s share incentive arrangements, details of which are given in note 33 to the Group financial statements. The difference
between the consideration and the par value of the shares issued is recorded in the share premium account.
During the year the Company purchased 2,077,909 (2023: 4,754,551) of its own shares for a consideration of US$64.5m (2023: US$149.4m), retaining
them as treasury shares.
Experian plc
Financial statements
250
Notes to the Company financial statements
continued
R. Profit and loss account reserve
The profit and loss account reserve is stated after deducting the balance on the own shares reserve from that on the profit and loss account. The balance
on the profit and loss account comprises net profits retained in the Company after the payment of equity dividends. The balance on the own shares
reserve is the cost of ordinary shares in the Company and further details are given below.
Number of shares held | Cost of shares held | |||||
Treasury | Trusts | Total | Treasury | Trusts | Total | |
million | million | million | US$m | US$m | US$m | |
At 1 April 2023 | 52.3 | 6.7 | 59.0 | 1,020.8 | 220.4 | 1,241.2 |
Purchase of shares by employee trusts | — | 1.5 | 1.5 | — | 56.0 | 56.0 |
Purchase of shares held as treasury shares | 2.1 | — | 2.1 | 69.3 | — | 69.3 |
Other vesting of awards and exercises of share | ||||||
options | (1.0) | (2.5) | (3.5) | (15.8) | (39.1) | (54.9) |
At 31 March 2024 | 53.4 | 5.7 | 59.1 | 1,074.3 | 237.3 | 1,311.6 |
Number of shares held | Cost of shares held | |||||
Treasury | Trusts | Total | Treasury | Trusts | Total | |
million | million | million | US$m | US$m | US$m | |
At 1 April 2022 | 48.5 | 8.2 | 56.7 | 885.1 | 212.2 | 1,097.3 |
Purchase of shares by employee trusts | — | 1.5 | 1.5 | — | 44.7 | 44.7 |
Purchase of shares held as treasury shares | 4.8 | — | 4.8 | 149.4 | — | 149.4 |
Other vesting of awards and exercises of share | ||||||
options | (1.0) | (3.0) | (4.0) | (13.7) | (36.5) | (50.2) |
At 31 March 2023 | 52.3 | 6.7 | 59.0 | 1,020.8 | 220.4 | 1,241.2 |
The Company has guaranteed:
• borrowings of Group undertakings of US$3,801m (2023: US$3,753m)
• the liabilities of The Experian plc Employee Share Trust and the Experian UK Approved All-Employee Share Plan
• the retirement benefit obligations of Group undertakings that participate in the Experian Pension Scheme and of a Group undertaking that participates
T. 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 L.
Since 31 March 2024, 714,000 of its own shares have been purchased by the Company for a consideration of US$29.3m. All shares purchased have been
retained as treasury shares.
Experian plc
Annual Report 2024
251
Financial statements
(i) Subsidiary undertakings
Company | Country of incorporation |
Experian Strategic Solutions SA | Argentina |
Experian Asia Pacific Pty Ltd | Australia |
Experian Australia Credit Services Pty Ltd | Australia |
Experian Australia Fraud Services Pty Ltd | Australia |
Experian Australia Holdings Pty Ltd | Australia |
Experian Australia Pty Ltd | Australia |
Experian Austria GmbH | Austria |
Experian Österreichische Verwaltungsgesellschaft mbH* | Austria |
Experian Botswana (Pty) Ltd | Botswana |
AllowMe Tecnologias Ltda. | Brazil 1 |
Brain Soluções de Tecnologia Digital Ltda. | Brazil 2 |
Financeira Veloz Holding Financeira S.A. | Brazil 3 |
Flexpag Tecnologia E Instituição De Pagamento S.A. | Brazil 4 |
Holding Veloz Investimentos e Participações S.A. | Brazil 5 |
Mova Sociedade de Empréstimo Entre Pessoas S.A. | Brazil 6 |
Pagueveloz Instituição de Pagamento Ltda. | Brazil 7 |
Serasa S.A. | Brazil 8 |
Experian Bulgaria EAD | Bulgaria |
Experian Canada Inc. | Canada |
Experian Chile S.A. (formerly known as Servicios de | Chile 1 |
Información Avanzada Comercial Y Financiera S.A.) | |
Experian Holdings Chile SpA | Chile 2 |
Experian Services Chile S.A. | Chile 3 |
Beijing Yiboruizhi Technology Co., Ltd | China 1 |
Experian Credit Service (Beijing) Company Limited | China 2 |
Experian Hong Kong Holdings Limited | China 3 |
Experian Hong Kong Limited | China 3 |
Experian Information Technology (Beijing) Company Limited | China 4 |
Experian Colombia S.A. | Colombia |
Experian Services Costa Rica, S.A. | Costa Rica |
Experian A/S | Denmark 1 |
Noitso A/S | Denmark 2 |
Accolade Unlimited* | England and Wales |
CCN UK 2005 Limited | England and Wales |
CCN UK Unlimited | England and Wales |
Chatsworth Investments Limited | England and Wales |
EHI 2005 Limited | England and Wales |
EHI UK Unlimited | England and Wales |
EIS 2005 Limited | England and Wales |
EIS UK Unlimited | England and Wales |
Experian (UK) Finance Limited | England and Wales |
Experian (UK) Holdings 2006 Limited | England and Wales |
Experian 2001 Unlimited* | England and Wales |
Experian 2006 Unlimited* | England and Wales |
Experian Corporate Services Limited (formerly GUS | England and Wales |
Property Investments Limited) | |
Experian CIS Limited | England and Wales |
Experian Colombia Investments Limited | England and Wales |
Experian Europe and Middle East Limited | England and Wales |
Experian Europe Unlimited | England and Wales |
Experian Finance 2012 Unlimited* | England and Wales |
Experian Finance plc | England and Wales |
Experian Group Limited | England and Wales |
Experian Holdings (UK) Unlimited | England and Wales |
Experian Holdings Limited | England and Wales |
Experian International Unlimited | England and Wales |
Experian Investment Holdings Limited | England and Wales |
Experian Latam Holdings Unlimited | England and Wales |
Company | Country of incorporation |
Experian Limited | England and Wales |
Experian NA Holdings Unlimited* | England and Wales |
Experian NA Unlimited* | England and Wales |
Experian Nominees Limited | England and Wales |
Experian Specialist Information Limited* | England and Wales |
Experian SURBS Investments Limited | England and Wales |
Experian Technology Limited | England and Wales |
Experian US Holdings Unlimited | England and Wales |
Experian US Unlimited* | England and Wales |
Experian Work Report Limited* | England and Wales |
G.U.S. Property Management Limited | England and Wales |
GUS 1998 Unlimited* | England and Wales |
GUS 2000 Finance Unlimited | England and Wales |
GUS 2000 UK Unlimited* | England and Wales |
GUS 2000 Unlimited* | England and Wales |
GUS 2002 Unlimited* | England and Wales |
GUS 2004 Limited | England and Wales |
GUS 2005 Finance Unlimited* | England and Wales |
GUS Catalogues Unlimited* | England and Wales |
GUS Finance (2004) Limited | England and Wales |
GUS Finance 2006 Unlimited* | England and Wales |
GUS Finance Holdings Unlimited* | England and Wales |
GUS Financial Services Unlimited* | England and Wales |
GUS Holdings (2004) Limited | England and Wales |
GUS Holdings Unlimited | England and Wales |
GUS International* | England and Wales |
GUS International Holdings UK Societas** | England and Wales |
GUS Ireland Holdings UK Societas** | England and Wales |
GUS NA Unlimited* | England and Wales |
GUS Netherlands Unlimited* | England and Wales |
GUS Overseas Holdings UK Societas** | England and Wales |
GUS Overseas Investments UK Societas** | England and Wales |
GUS Overseas Retailing Unlimited* | England and Wales |
GUS Overseas Unlimited* | England and Wales |
GUS Unlimited* | England and Wales |
GUS US Holdings UK Societas** | England and Wales |
GUS US Holdings Unlimited* | England and Wales |
GUS US Unlimited* | England and Wales |
GUS Ventures Unlimited* | England and Wales |
Hugh Wyllie, Limited* | England and Wales |
International Communication & Data Limited | England and Wales |
Intozetta Holdings Limited | England and Wales |
Intozetta Limited | England and Wales |
Pay Dashboard Limited* | England and Wales |
QAS Limited* | England and Wales |
Runpath Group Limited* | England and Wales |
Runpath Pilot Limited* | England and Wales |
Runpath Regulated Services Limited* | England and Wales |
Serasa Finance Limited | England and Wales |
Tallyman Limited* | England and Wales |
Tapad UK Limited* | England and Wales |
The Royal Exchange Company (Leeds) Unlimited* | England and Wales |
The Witney Mattress, Divan & Quilt Co. Unlimited* | England and Wales |
Compuscan (Pty) Ltd | eSwatini |
Experian France S.A.S. | France |
3 C Deutschland GmbH | Germany 1 |
Experian GmbH (formerly Informa Solutions GmbH) | Germany 2 |
Informa HIS GmbH | Germany 3 |
Experian plc
Financial statements
252
Notes to the Company financial statements
continued
U. Related undertakings at 31 March 2024 continued
(i) Subsidiary undertakings continued
Company | Country of incorporation |
Infoscore Consumer Data GmbH | Germany 2 |
Tapad Germany GmbH | Germany 4 |
GHU Insurance Company Limited | Guernsey |
Experian Account Aggregator Private Limited | India 1 |
Experian Credit Information Company of India Private | India 2 |
Limited | |
Experian Services India (Private Limited) | India 2 |
PT. Experian Decision Analytics Indonesia* | Indonesia |
Experian Europe Designated Activity Company | Ireland |
Experian Group Services Limited | Ireland |
Experian Holdings Ireland Limited | Ireland |
Experian Ireland Investments Limited* | Ireland |
Experian Ireland Limited | Ireland |
GUS Finance Ireland Unlimited Company* | Ireland |
GUS Investments 2003 Unlimited Company | Ireland |
Experian Holding Italia S.r.l. | Italy |
Experian Italia S.p.A. | Italy |
Experian Japan Co., Ltd | Japan |
Experian Lesotho (Pty) Ltd | Lesotho |
Experian Information Services (Malaysia) Sdn. Bhd. | Malaysia |
Experian (Malaysia) Sdn. Bhd. | Malaysia |
Experian Marketing Services (Malaysia) Sdn Bhd | Malaysia |
Experian de Mexico S. de R.L. de C.V. | Mexico |
Experian Micro Analytics S.A.M. | Monaco |
Scorex S.A.M. | Monaco |
Experian Sistema de Informacao de Credito S.A | Mozambique |
Experian Micro Analytics B.V. | The Netherlands |
Experian Nederland B.V. | The Netherlands |
Experian Scorex Russia B.V. | The Netherlands |
GUS Europe Holdings B.V. | The Netherlands |
GUS Holdings B.V. | The Netherlands |
GUS Treasury Services B.V. | The Netherlands |
Experian New Zealand Limited | New Zealand |
Experian AS | Norway 1 |
Experian Gjeldsregister AS | Norway 1 |
Tapad Norway AS | Norway 2 |
APC Buró, S.A. | Panama |
Experian Perú S.A.C. | Peru |
Experian Philippines, Inc | The Philippines |
Experian Polska spółka z ograniczoną odpowiedzialnością* | Poland |
Gabi Polska Spółka Z Ograniczoną Odpowiedzialnością | Poland |
DP Management Pte Ltd | Singapore |
Experian Credit Bureau Singapore Pte. Ltd.*** | Singapore |
Experian Credit Services Singapore Pte. Ltd. | Singapore |
Experian Asia-Pacific Holdings Pte. Ltd. | Singapore |
Experian Singapore Pte. Ltd | Singapore |
Compuscan Holdings International (Pty) Ltd | South Africa 1 |
CSH Group (Pty) Ltd | South Africa 1 |
Experian South Africa (Pty) Limited | South Africa 2 |
Great Universal Stores (South Africa) (Pty) Ltd | South Africa 2 |
Axesor Business Process Outsourcing S.L.U. | Spain 1 |
Axesor Conocer Para Decidir, S.A. | Spain 1 |
Experian Bureau de Crédito, S.A. | Spain 2 |
Experian España, S.L.U. | Spain 2 |
Experian Holdings España, S.L. | Spain 2 |
Experian Latam España Inversiones, S.L. | Spain 3 |
Experian Switzerland AG | Switzerland |
Company | Country of incorporation |
Experian (Thailand) Co., Ltd* | Thailand |
Experian Bilgi Hizmetleri Limited Şirketi | Türkiye |
Auto I.D., Inc. | USA 1 |
BillFixers, LLC | USA 2 |
CIC Plus, LLC | USA 3 |
ClarityBlue Inc | USA 3 |
Clarity Services, Inc. | USA 2 |
ConsumerInfo.com, Inc | USA 4 |
CSIdentity Corporation | USA 2 |
CSIdentity Insurance Services, Inc. | USA 6 |
Employment Tax Servicing, LLC | USA 4 |
Experian Background Data, Inc. | USA 2 |
Experian Credit Advisors, Inc. | USA 2 |
Experian Data Corp | USA 2 |
Experian Employer Services, Inc. | USA 5 |
Experian Fraud Prevention Solutions, Inc. | USA 2 |
Experian Health, Inc. | USA 2 |
Experian Holdings, Inc. | USA 2 |
Experian Information Solutions, Inc. | USA 7 |
Experian Marketing Solutions, LLC | USA 2 |
Experian Reserved Response, Inc. | USA 2 |
Experian Services Corp. | USA 2 |
Frontline eSolutions, LLC | USA 8 |
Gabi Personal Insurance Agency, Inc. | USA 2 |
MyExperian, Inc. | USA 2 |
My Health Direct, Inc. | USA 2 |
RewardStock, Inc. | USA 2 |
Statschedules India, LLC | USA 2 |
String Automotive Solutions, Inc. | USA 2 |
String Enterprises, Inc. | USA 2 |
Tapad, Inc. | USA 2 |
Tayvah, LLC | USA 4 |
Tax Credit Co, LLC | USA 2 |
TCC Arizona, LLC | USA 9 |
TCC Services, LLC | USA 10 |
The 41st Parameter, Inc. | USA 2 |
WaveHDC LLC | USA 2 |
Numeric superscripts refer to registered office addresses given in note
U(ii).
* In voluntary liquidation
** GUS Ireland Holdings UK Societas and GUS Overseas Investments UK
Societas were converted to public limited companies effective 24 April
2024. GUS International Holdings UK Societas, GUS Overseas Holdings UK
Societas and GUS US Holdings UK Societas were converted to public
limited companies effective 1 May 2024
*** Experian Credit Bureau Singapore Pte. Ltd. was voluntarily struck off
on 17 April 2024
Experian plc
Annual Report 2024
253
U. Related undertakings at 31 March 2024 continued
Financial statements
(ii) Addresses of registered offices of subsidiary undertakings
Country of incorporation | Address of registered office |
Argentina | Carlos Pelligrini 887, 4th Floor, Ciudad Autonoma de |
Buenos Aires, Buenos Aires | |
Australia | Level 26, 2 Southbank Boulevard, Southbank, VIC 3006 |
Austria | Strozzigasse 10/14, 1080 Vienna |
Botswana | Plot 64518 Deloitte House, Fairgrounds, Gaborone |
Brazil 1 | Travessa do Tuyuty, No. 46, Store 001, suite 01, Recife |
District, Recife, 50030-050 | |
Brazil 2 | Avenida Presidente Vargas, 2921 – 6 Floor – Room |
611, Vila Homero, Indaiatuba/SP, 13338–705 | |
Brazil 3 | Rua Dr. Léo de Carvalho, No.74, 5th Floor, Suite 505, |
Room 2, Ibiza Building, Velha, Blumenau, Santa | |
Catarina, 89036-239 | |
Brazil 4 | Rua Barão de Souza Leão, No. 425, suíte 710, Edifício |
Pontes Corporate Center, suites 705 a 710, Recife-PE, | |
51.030-300 | |
Brazil 5 | Rua Hermann Huscher, 113, sala 01 subsala 06, |
District: Vila Formosa, Blumenau, Santa Catarina, | |
89.023-000 | |
Brazil 6 | Avenida Brigadeiro Faria Lima, No. 1306, 6th floor, Sao |
Paulo, 01451-914 | |
Brazil 7 | Rua Dr. Léo de Carvalho, No. 74, 5th Floor, Suites 505, |
506 and 507, Ibiza Building, Velha, Blumenau, Santa | |
Catarina, 89036-239 | |
Brazil 8 | Avenida das Nações Unidas, 14401 – Torre C-1 Parque |
da Cidade Complex, Suites 191, 192, 201, 202, 211, 212, | |
221, 222, 231, 232, 241 e 242, Chácara Santo Antônio, | |
Sao Paulo/SP, 04794-000 | |
Bulgaria | 86 Tsarigradsko shose boul., Mladost region, 1784 Sofia |
Canada | 199 Bay Street, Suite 4000, Toronto, Ontario M5L 1A9 |
Chile 1 | Nueva Costanera 4091, Vitacura, Santiago de Chile |
Chile 2 | Av el Golf 40 piso, 20 Santiago |
Chile 3 | Av. del Valle 515, Huechuraba, Santiago |
China 1 | Room 604 6F, One Indigo, 20 Jiuxianqiao Road, |
Chaoyang District, Beijing, 100015 | |
China 2 | Room 05D, 20th Floor, NO.77, Jianguo Road, Chaoyang |
District, Beijing | |
China 3 | 31/F., Tower Two, Times Square, 1 Matheson Street, |
Causeway Bay, Hong Kong | |
China 4 | Room 05C, 20th Floor, NO.77, Jianguo Road, Chaoyang |
District, Beijing | |
Colombia | Carrera 7, No. 76 -35 Floor 10, Bogota |
Costa Rica | Edificio Oller Abogados, Provincia de 5551007, Av. 18, |
San José Province, San José | |
Denmark 1 | Lyngbyvej 2, DK-2100, Copenhagen |
Denmark 2 | Krumstappen 4, St. 2500 VALBY |
England and Wales | The Sir John Peace Building, Experian Way, NG2 |
Business Park, Nottingham, NG80 1ZZ | |
eSwatini | c/o PricewaterhouseCoopers, Rhus Office Park, Kal |
Grant Street, Mbabane | |
France | 19 boulevard Malesherbes, 75008 Paris |
Germany 1 | Edisonstraße 19, 74076, Heilbronn |
Germany 2 | Rheinstraße 99, 76532, Baden-Baden |
Germany 3 | Kreuzberger Ring 68, 65205, Wiesbaden |
Germany 4 | Walther-von-Cronberg-Platz 13, 60594 Frankfurt a. Main |
Guernsey | PO Box 155, Mill Court, La Charroterie, St Peter Port, |
GY1 4ET | |
India 1 | 1108 Hubtown Solaris, N. S. Phadke Road, Andheri |
(East), Mumbai 400069 | |
India 2 | 5th Floor, East Wing, Tower 3, Equinox Business Park, |
LBS Marg, Kurla (West), Mumbai, 400070 |
Country of incorporation | Address of registered office |
Indonesia | World Trade Centre 3 Lantai 27, Jl. Jendral Sudirman |
Kav. 29-31, Kelurahan Karet, Kecamatan Setiabudi, | |
Kota Adm. Jakarta Selatan, DKI Jakarta | |
Ireland | 2 Cumberland Place, Fenian Street, Dublin 2, D02 HY05 |
Italy | Piazza dell’Indipendenza No 11/B, 00185, Rome |
Japan | xLINK Marunouchi Park Building, Marunouchi Park |
Building 8F, 6-1, Marunouchi 2 chome, Chiyoda-ku, | |
Tokyo 100-6908 | |
Lesotho | Plot No. 582, Ha Hoohlo Extension, Maseru |
Malaysia | Level 13, Menara 1 Sentrum, 201, Jalan Tun |
Sambanthan, Brickfields, 50470 Kuala Lumpur | |
Mexico | Calle Pedregal 24 S 300 P 3 Col. Molino del Rey, Miguel |
Hidalgo, Ciudad de México, CP 11040 | |
Monaco | Athos Palace 2, Rue de la Lujerneta 6eme etage – lots |
27 et 30, MC98000 | |
Mozambique | Edifício Millennium Park, Avenida Vladimir Lenine, 174, |
13°, Maputo | |
The Netherlands | Grote Marktstraat 49, 2511BH's-Gravenhage |
New Zealand | Level 9, 4 Williamson Avenue, Grey Lynn, Auckland, 1021 |
Norway 1 | Professor Kohts vei 9, 1366 Lysaker, Bærum |
Norway 2 | 5.etg. Edvard Storms gate, 20166, Oslo |
Panama | Panamá Pacífico, International Business Park, Edif. |
3845, 4to Piso, Ciudad de Panamá | |
Peru | Av. Canaval y Moreyra Nº 480, Piso 19, San Isidro, Lima |
The Philippines | 25th Floor Philam Life Tower, 8767 Paseo de Roxas, |
Makati City | |
Poland | Henryk Sienkiewicz street 82/84; 90-318, Łódź |
Singapore | 10 Kallang Avenue, #05-18 Aperia Tower 2, Singapore, |
339510 | |
South Africa 1 | Experian House, 3 Neutron Avenue, Techno Park, |
Stellenbosch, 7600 | |
South Africa 2 | Experian House, Ballyoakes Office Park, 35 Ballyclare |
Drive, Bryanston, Sandton, 2021 | |
Spain 1 | Calle Graham Bell, s/n, Edificio Axesor, Parque |
Empresarial San Isidro, C.P. 18100, Armilla | |
Spain 2 | C/Principe de Vergara 132, 2a Planta, 28002, Madrid |
Spain 3 | Principe de Vergara 131 1°, Madrid |
Switzerland | Thurgauerstrasse 101a, CH-8152, Opfikon |
Thailand | No. 9, G Tower Building, 33rd Floor, Rama 9 Road, Huai |
Kwang, Bangkok | |
Türkiye | River Plaza Büyükdere Cad.Bahar Sok.No:13 K:8 Levent |
34394 İstanbul | |
USA 1 | The Corporation Trust Company, 1209 Orange Street, |
Wilmington DE 19801 | |
USA 2 | C T Corporation, 300 Montvue Road, Knoxville TN |
37919-5546 | |
USA 3 | 475 Anton Boulevard, Costa Mesa, CA 92626 |
USA 4 | C T Corporation System, 818 West 7th Street, Los |
Angeles, CA 90017 | |
USA 5 | C T Corporation System, 155 Federal Street, Ste 700, |
Boston Massachusetts 02110 | |
USA 6 | 208 South LaSalle St., Ste 814 Chicago IL 60604 |
USA 7 | 4400 Easton Commons Way, Ste 125, Columbus Ohio |
43219 | |
USA 8 | 3026 Woodbridge Lane, Canton, GA 30114 |
USA 9 | 2711 Centerville Rd Ste 400, Wilmington DE 19808 |
USA 10 | 255 W Sunset Blvd. Ste, 2200 Los Angeles CA 90028 |
Numeric superscripts refer to subsidiary undertakings given in note U(i).
Experian plc
Financial statements
254
Notes to the Company financial statements
continued
U. Related undertakings at 31 March 2024 continued
(iii) Additional information on subsidiary undertakings
Summary
The results of the undertakings listed at note U(i) are included in the Group
financial statements. Except as indicated below, the Company has direct
or indirect interests in the whole of the issued equity shares of these
undertakings. Undertakings which are direct subsidiaries of the Company
are detailed in note N to these financial statements.
Since demerger from GUS plc in 2006, the Company has eliminated
dormant and inactive companies through an ongoing internal programme.
Holdings comprising less than 100%
Interests of less than 100% of the issued equity of subsidiary
undertakings are:
APC Buró, S.A. – 70.0%
Brain Soluções de Tecnologia Digital Ltda. – 55.0%
DP Management Pte Ltd – 51.0%
Experian Australia Credit Services Pty Ltd – 94.31%
Experian Chile S.A. (formerly known as Servicios de Información
Avanzada Comercial Y Financiera S.A.) – 66.7%
Experian Colombia S.A. – 99.9%
Experian Credit Information Company of India Private Limited – 66.72%
Experian Italia S.p.A. – 95.35%
Experian Information Services (Malaysia) Sdn. Bhd. – 74.0%
Experian Sistema de Informacao de Credito S.A. – 90.0%
Experian South Africa (Pty) Limited – 87.5%
Mova Sociedade de Empréstimo Entre Pessoas S.A. – 51.0%
Serasa S.A. – 99.7%
Holdings comprising other than ordinary shares, common stock or
common shares
The Company’s equity interests comprise direct or indirect holdings of
ordinary shares, common stock or common shares only, except as listed
below:
Experian Europe and Middle East Limited, Experian Soluciones de
Información, S.A. de C.V., GUS 2004 Limited and GUS Investments 2003
Unlimited Company – A ordinary and B ordinary shares
GUS International – B ordinary shares
GUS 2000 Unlimited – X ordinary and Y ordinary shares
Experian Holdings, Inc. – class A and B common stock
Experian Information Solutions Inc. – common no par value shares
Experian plc
Annual Report 2024
255
U. Related undertakings at 31 March 2024 continued
Financial statements
Company | Holding | Country of incorporation |
London & Country Mortgages Limited | 25.0% | England and Wales |
Who Owns Whom (Pty) Limited | 32.9% | South Africa |
Online Data Exchange LLC | 25.0% | USA |
Opt-Out Services, LLC | 25.0% | USA |
Central Source LLC | 33.3% | USA |
New Management Services, LLC | 33.3% | USA |
VantageScore Solutions, LLC | 33.3% | USA |
Country of incorporation | |
Undertaking | or operation |
Brigstock Finance Limited | England and Wales |
Experian Medical Plan Limited | England and Wales |
Experian Pension Scheme | England and Wales |
Experian Retirement Savings Plan | England and Wales |
Experian Retirement Savings Trustees Limited | England and Wales |
Experian Trustees Limited | England and Wales |
Experian UK Approved All-Employee Share Plan | England and Wales |
The Pension and Life Assurance Plan of Sanderson Systems Limited | England and Wales |
Versorgungsordnung der Barclays Industrie Bank GmbH vom April 1988 (incl. amendments) | Germany |
The Experian Ireland Limited Pension Plan | Ireland |
The Experian plc Employee Share Trust | Jersey |
These undertakings are not subsidiaries or associates. Brigstock Finance Limited is a finance company. The other undertakings operate in connection
Shareholder and corporate information
Analysis of share register at 31 March 2024
By size of shareholding
Number of
shareholders
%
Number of
shares
%
Over 1,000,000
125
0.7
795,490,888
81.8
100,001 to 1,000,000
383
2.0
135,313,546
13.9
10,001 to 100,000
705
3.7
24,288,469
2.5
5,001 to 10,000
471
2.5
3,251,029
0.4
2,001 to 5,000
1,712
9.1
5,171,536
0.5
1 to 2,000
15,441
82.0
8,673,579
0.9
Total
18,837
100.0
972,189,047
100.0
By nature of shareholding
Number of
shareholders
%
Number of
shares
%
Corporates
2,313
12.3
901,336,395
92.7
Individuals
16,523
87.7
17,558,106
1.8
Treasury shares
1
–
53,294,546
5.5
Total
18,837
100.0
972,189,047
100.0
Company website
A full range of investor information is available at
experianplc.com
.
Details of the 2024 AGM, to be held in Dublin, Ireland on Wednesday
17 July 2024, are given on the website and in the notice of meeting.
Information on the Company’s share price is available on the website.
Electronic shareholder communication
Shareholders may register for Share Portal, an electronic communication
service provided by Link Market Services (Jersey) Limited, via the
Company website at
experianplc.com/shares
. The service is free and it
facilitates the use of a comprehensive range of shareholder services
online.
When registering for Share Portal, shareholders can select their preferred
communication method – email or post. Shareholders will receive a
written notification of the availability on the Company’s website of
shareholder documents, such as the Annual Report, unless they have
elected to either (i) receive such notification by email or (ii) receive paper
copies of shareholder documents, where such documents are available in
that format.
Dividend information
Dividends for the year ended 31 March 2024
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 of members 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. A first interim dividend of 18.0 US cents per
ordinary share was paid on 2 February 2024.
Income Access Share 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 Income Access Share (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.
Dividend Reinvestment Plan (DRIP)
The DRIP enables those shareholders who receive their dividends under
the Income Access Share arrangements to use their cash dividends to
buy more shares in the Company. Eligible shareholders, who wish to
participate in the DRIP in respect of the second interim dividend for the
year ended 31 March 2024, to be paid on 19 July 2024, should return a
completed and signed DRIP application form, to be received by the
registrars by no later than 21 June 2024. Shareholders should contact the
registrars for further details.
Experian plc
Shareholder and corporate information
256
Shareholder security
Shareholders are advised to be wary of any unsolicited advice,
offers to buy shares at a discount or offers of free reports about the
Company. More detailed information on such matters can be found
at
moneyhelper.org.uk
. Details of any share dealing facilities that the
Company endorses will be included on the Company’s website or in
Company mailings.
American Depositary Receipts (ADR)
Experian has a sponsored Level 1 ADR programme, for which J.P. Morgan
Chase Bank, N.A. acts as Depositary. This ADR programme is not listed
on a stock exchange in the USA and trades on the highest tier of the US
over-the-counter market, OTCQX, under the symbol EXPGY. Each ADR
represents one Experian plc ordinary share. Further information can be
obtained by contacting:
Shareowner Services
J.P. Morgan Chase Bank, N.A.
PO Box 64504
St. Paul, MN 55164-0504
USA
T +1 651 453 2128 (from the USA: 1 800 990 1135)
E Visit shareowneronline.com, then select ‘Contact Us’
W adr.com
Financial calendar
Second interim ex-dividend date
20 June 2024
Second interim dividend record date
21 June 2024
Second interim ex-dividend and record date for
American Depositary Receipts (ADRs)
21 June 2024
Trading update, first quarter
16 July 2024
AGM
17 July 2024
Second interim dividend payment date
19 July 2024
Half-yearly financial report
13 November 2024
Trading update, third quarter
15 January 2025
Preliminary announcement of full-year results
May 2025
Contact information
Corporate headquarters
Experian plc
2 Cumberland Place
Fenian Street
Dublin 2
D02 HY05
Ireland
T +353 (0) 1 846 9100
Investor relations
E investors@experian.com
Registered office
Experian plc
22 Grenville Street
St Helier
Jersey
JE4 8PX
Channel Islands
Registered number – 93905
ISIN – GB00B19NLV48
Registrars
Experian Shareholder Services
Link Market Services (Jersey) Limited
12 Castle Street
St Helier
Jersey
JE2 3RT
Channel Islands
T 0371 664 9245
T (for calls from outside the UK) +44 800 141 2952
E experian@linkregistrars.com
Calls are charged at the standard geographic rate and will vary by
provider. Calls from outside the United Kingdom will be charged at the
applicable international rate. Lines are open from 8.30am to 5.30pm
(UK time) Monday to Friday excluding public holidays in England
and Wales.
Stock exchange listing information
Exchange: London Stock Exchange, Premium Main Market
Index: FTSE 100
Symbol: EXPN
257
Experian plc
Annual Report 2024
Shareholder and corporate information
Glossary
The following abbreviations are used in this Annual Report, and are taken to have the following meanings:
Abbreviation
Meaning
AFS
Arvato Financial Solutions
AGM
Annual General Meeting
AI
Artificial Intelligence
A/NZ
Australia and New Zealand
APAC
Asia Pacific
API
Application Programming Interface
B2B
Business-to-Business
B2C
Business-to-Consumer
BEIS
Business, Energy and Industrial Strategy
Benchmark EBIT
Benchmark earnings before interest and tax. See note 7 to the Group financial statements
Benchmark EBITDA
Benchmark earnings before interest, tax, depreciation and amortisation. See note 7 to the Group financial statements
Benchmark EPS
Benchmark earnings per share. See note 7 to the Group financial statements
Benchmark operating cash flow
See note 7 to the Group financial statements
Benchmark PBT
Benchmark profit before tax. See note 7 to the Group financial statements
CAGR
Compound annual growth rate
CCPA
California Consumer Privacy Act
CDP
Formerly known as Carbon Disclosure Project, a non-profit charity that runs the global environmental disclosure system
CEO
Chief Executive Officer
CFO
Chief Financial Officer
CFPB
Consumer Financial Protection Bureau
CGU
Cash-generating unit
CIP
Co-investment Plans
Code
The UK Corporate Governance Code 2018
Company
Experian plc
COO
Chief Operating Officer
CPRA
California Privacy Rights Act
DEI
Diversity, equity and inclusion
DRIP
Dividend Reinvestment Plan
ECS
Experian Consumer Services
EITS
Experian Information Technology Services
EMEA
Europe, Middle East and Africa
EPS
Earnings per share
ERMC
Executive Risk Management Committee
ESEF
European Single Electronic Format
ESG
Environmental, social and governance
FBU
Fair, balanced and understandable
FCA
The UK Financial Conduct Authority
FCRA
US Fair Credit Reporting Act
FRS
Financial Reporting Standard
FTC
US Federal Trade Commission
FTE
Full-time equivalent
FVOCI
Fair value through Other comprehensive income
FVPL
Fair value through profit or loss
FX
Foreign exchange rate(s)
FY20
Year ended 31 March 2020
FY21
Year ended 31 March 2021
FY22
Year ended 31 March 2022
FY23
Year ended 31 March 2023
FY24
Year ended 31 March 2024
FY25
Year ending 31 March 2025
FY26
Year ending 31 March 2026
GAAP
Generally Accepted Accounting Practice
GDP
Gross Domestic Product
GDPR
General Data Protection Regulation
Experian plc
Glossary
258
Abbreviation
Meaning
GHGs
Greenhouse gas emissions
H1
The first half of Experian’s financial year, being the six months ending 30 September
H2
The second half of Experian’s financial year, being the six months ending 31 March
HMRC
The UK’s ‘His Majesty’s Revenue and Customs’
IAS
International Accounting Standard
IAS arrangement
Income Access Share arrangement for the payment of dividends from a UK source
IASB
International Accounting Standards Board
ID&F
Identity and Fraud
IFRIC
International Financial Reporting Standards Interpretations Committee
IFRS or IFRSs
International Financial Reporting Standards
IP
Intellectual property
IRS
The US Internal Revenue Service
ISO
International Organization for Standardization
KPI
Key performance indicator
Last Year
Year ended 31 March 2023
LGPD
Brazil General Data Protection Law
MSCIP
Marketing Services Consumer Information Portal
NED
Non-executive director
NGO
Non-governmental organisation
NPS
Net Promoter Score
OCI
Other comprehensive income
OECD
Organisation for Economic Co-operation and Development
OpCo
Group Operating Committee
PAYE
Pay As You Earn – the HMRC system to collect Income Tax and National Insurance from employment in the UK
The Policy
Directors’ remuneration policy
PSP
Performance Share Plan
Q1
The first quarter of Experian’s financial year, being the three months ending 30 June
Q2
The second quarter of Experian’s financial year, being the three months ending 30 September
Q3
The third quarter of Experian’s financial year, being the three months ending 31 December
Q4
The fourth quarter of Experian’s financial year, being the three months ending 31 March
ROCE
Return on capital employed
SaaS
Software as a Service
SBTi
Science Based Target initiative
STEM
Science, technology, engineering, and mathematics
TCFD
Task Force on Climate-related Financial Disclosures
TD
EU's Transparency Directive
This year
Year ended 31 March 2024
TSR
Total shareholder return
UK&I
UK and Ireland
UN SDGs
United Nations’ Sustainable Development Goals
WACC
The Group’s pre-tax weighted average cost of capital
259
Experian plc
Annual Report 2024
Glossary
Notes
Experian plc
Notes
260
261
Experian plc
Annual Report 2024
Notes
Notes
Experian plc
Notes
262
Designed and produced by
Friend
www.friendstudio.com
Print: Pureprint Group
This report has been printed on Amadeus Silk
which is FSC® certified and made from 100%
Elemental Chlorine Free (ECF) pulp. The mill
and the printer are both certified to ISO 14001
environmental management. The report
was printed using vegetable based inks
by a CarbonNeutral® printer.
Annual Report 2024
www.experianplc.com/Experian-Annual-Report-2024
Experian plc website
www.experianplc.com
Corporate
headquarters
Experian plc
2 Cumberland Place
Fenian Street
Dublin 2
D02 HY05
Ireland
T +353 (0) 1 846 9100
www.experianplc.com
Operational
headquarters
Experian
475 Anton Boulevard
Costa Mesa
CA 92626
United States
T +1 714 830 7000
www.experian.com
Serasa Experian
Av. Doutor Heitor
José Reali 360
CEP 13571-385
São Carlos
Brazil
T +55 11 3004 7728
www.serasaexperian.com.br
Experian
The Sir John Peace Building
Experian Way
NG2 Business Park
Nottingham
NG80 1ZZ
United Kingdom
T +44 (0) 115 941 0888
www.experian.co.uk