TIDMEXPN
RNS Number : 4599T
Experian plc
15 November 2023
news release
Good growth in H1: strong strategic execution
7am, 15 November 2023 -- Experian plc, the global information
services company, today issues its financial report for the six
months ended 30 September 2023 .
Brian Cassin, Chief Executive Officer, commented:
"We delivered good growth in H1. We grew in every region and
across both B2B and Consumer Services. Our growth is due to the
breadth of our portfolio, contributions from new products and
ongoing new customer wins. Overall, we are successfully executing
our strategy for growth and this continues to help us to navigate
the macroeconomic environment well. Revenue growth was in line with
our expectations, up 6% at actual exchange rates from ongoing
activities and 5% at constant exchange rates, with organic revenue
growth of 5%. Benchmark EBIT margin expansion was up 20 basis
points at constant currency, and we delivered Benchmark earnings
per share up 8%.
"For FY24, we continue to expect organic revenue growth in the
range of 4% to 6% and modest margin accretion, all at constant
exchange rates and on an ongoing basis."
Benchmark and Statutory financial highlights
-------------------------------------------------------------------------------------------------
2023 2022 Actual Constant Organic
US$m US$m rates growth rates growth growth
% % %(2)
--------- --------- -------------- -------------- --------
Benchmark(1)
Revenue - ongoing activities(3) 3,414 3,224 6 5 5
Benchmark EBIT - ongoing
activities(3,4) 929 877 6 6 n/a
Total Benchmark EBIT 928 873 6 6 n/a
Benchmark EPS USc 70.4 USc 65.4 8 8 n/a
Statutory
Revenue 3,424 3,247 5 n/a n/a
Operating profit 799 513 56 n/a n/a
Profit before tax 763 517 48 n/a n/a
Basic EPS USc 62.3 USc 33.5 86 n/a n/a
First interim dividend USc 18.0 USc 17.0 6 n/a n/a
--------- --------- -------------- -------------- --------
1. See Appendix 1 (page 14) and note 6 to the condensed interim
financial statements for definitions of non-GAAP measures.
2. Organic revenue growth is at constant currency.
3. Revenue and Benchmark EBIT for the six months ended 30
September 2022 have been re-presented for the reclassification to
exited business activities of certain Business-to-Business (B2B)
businesses, detail is provided in notes 7(a) and 8 to the condensed
interim financial statements.
4. See page 15 for reconciliation of Benchmark EBIT from ongoing
activities to Profit before tax.
Highlights
-- Good H1 progress. Q1 organic revenue growth was 5%, with Q2
organic revenue growth also at 5%, taking total revenue growth from
ongoing activities to 5% at constant exchange rates and 6% at
actual rates.
-- Consumer Services organic revenue up 6%. We now serve 178
million free members, up 21 million year-on-year.
-- B2B organic revenue growth of 4%. Superior data, new product
performance and successful new business development drive
growth.
-- All regions contribute positively. Double-digit growth in
Latin America, a good performance in North America, improvement in
EMEA and Asia Pacific, and resilient growth in UK and Ireland.
-- Benchmark EBIT from ongoing activities rose 6% to US$929m,
with the Benchmark EBIT margin of 27.2%, up 20 basis points at
constant currency and stable at actual exchange rates.
-- Strong financial position. Net debt to EBITDA of 1.8x and low
average interest rates, c.3%, on our Net debt due to our forward
rate fixing programme.
-- Good progress in EPS. Benchmark EPS up 8%, at constant and
actual exchange rates. Basic EPS up 86%.
-- Benchmark operating cash flow conversion of 77% in our
seasonally weaker half of the year for cashflow.
-- Statutory profit before tax of US$763m, up 48% (FY23:
US$517m), due to revenue growth and reduced non-benchmark
costs.
-- First interim dividend up 6% to USc 18.0 per ordinary share.
Experian
Nadia Ridout-Jamieson Investor queries +44 (0)20 3042 4220
Nick Jones Media queries
Teneo
Graeme Wilson, Louise Male and Jessica Reid +44 (0)20 7353
4200
There will be a presentation today at 9.30am (UK time) to
analysts and investors via webcast. To view the slides and listen
in online please go to www.experianplc.com for the link.
Experian will update on third quarter trading for FY24 on 16
January 2024.
Roundings
Certain financial data has been rounded within this
announcement. As a result of this rounding, the totals of data
presented may vary slightly from the actual arithmetic totals of
such data.
Forward-looking statements
Certain statements made in this announcement are forward-looking
statements. Such statements are based on current expectations and
are subject to a number of risks and uncertainties that could cause
actual events or results to differ materially from any expected
future events or results referred to in these forward-looking
statements. See the risk section on page 13 and note 27 to the
condensed interim financial statements for further information on
risks and uncertainties facing Experian.
Company website
Neither the content of the Company's website, nor the content of
any website accessible from hyperlinks on the Company's website (or
any other website), is incorporated into, or forms part of, this
announcement.
About Experian
Experian is the world's leading global information services
company. During life's big moments - from buying a home or a car,
to sending a child to college, to growing a business by connecting
with new customers - we empower consumers and our clients to manage
their data with confidence. We help individuals to take financial
control and access financial services, businesses to make smarter
decisions and thrive, lenders to lend more responsibly, and
organisations to prevent identity fraud and crime.
We have 22,400 people operating across 32 countries and every
day we're investing in new technologies, talented people, and
innovation to help all our clients maximise every opportunity. With
corporate headquarters in Dublin, Ireland, we are listed on the
London Stock Exchange (EXPN) and are a constituent of the FTSE 100
Index.
Learn more at www.experianplc.com or visit our global content
hub at our global news blog for the latest news and insights from
the Group.
Strategic report
Part 1 - Chief Executive Officer's review
We have started the year positively having delivered good growth
in revenue and good progress in Benchmark earnings per share. Our
business has been very resilient. This has been driven by our
breadth and diversity and continued good progress in new business
wins. It also reflects the strategic progress we have made over
several years with new products and expansion into new verticals
and new market segments. This has positioned us to overcome the
unfavourable macroeconomic backdrop. Highlights include the
progress we have made across credit risk and fraud prevention, very
strong progress in diversifying our business in Brazil, successful
expansions into markets such as health, identity and verifications
and the exceptional progress we continue to make towards becoming
the world's largest, most inclusive financial services platform for
consumers.
H1 organic revenue growth was 5%, composed of growth of 5% in
each of Q1 and Q2. Consumer Services delivered organic revenue
growth of 6% and B2B delivered 4%. All regions contributed
positively, with double-digit progress in Latin America, a solid
performance in North America, a much-improved picture in EMEA and
Asia Pacific and modest growth in UK and Ireland (UK&I). We
delivered on our EBIT margin expectations, helped by our
productivity initiatives which has enabled us to sustain growth
investment.
First-half financial highlights
-- Revenue growth was in line with our expected performance
range. Revenue growth from ongoing activities was 6% at actual
exchange rates and 5% at constant currency. Organic revenue growth
is determined on a constant currency basis and for ongoing
activities.
-- All four of our regions contributed positively to our
performance. Organic revenue growth was 4% in North America, 11% in
Latin America, 1% in UK&I and 8% in EMEA and Asia Pacific.
-- By quarter, organic revenue growth was 5% in Q1 and 5% in Q2.
-- Consumer Services organic revenue was up 6%. We expanded free
memberships to 178m, up 21m year-on-year, delivered significant
progress in Brazil and benefitted from elevated premium
subscription revenue in the USA.
-- B2B organic revenue growth was 4%. Growth in revenue from our
key strategic initiatives as well as portfolio and client mix have
substantially offset weaker credit issuance conditions across some
client categories in the USA and the UK.
-- We delivered good progress in Benchmark EBIT, up 6% at both
constant and actual exchange rates. EBIT margin increased by 20
basis points at constant exchange rates and was stable at 27.2% at
actual exchange rates.
-- We delivered strong growth in Benchmark earnings per share,
which increased by 8% driven by revenue performance, margin
expansion and a lower tax rate. Basic EPS was USc 62.3 (2022: USc
33.5), up 86%.
-- Cash flow conversion of Benchmark EBIT into Benchmark
operating cash flow was 77%, in our seasonally weaker half of the
year for cash flow. Benchmark operating cash flow at actual
exchange rates was US$711m, compared to US$769m year-on-year.
-- We continued to invest in data, technology and new products
through capital expenditure, which represented 9% of revenue, in
line with our expectations for the full year ending 31 March
2024.
-- We invested US$206m in acquisitions to support our strategic
initiatives and spent a net US$68m of our US$150m share repurchase
programme (of which US$21m was settled after the period end).
-- We ended the period with Net debt to Benchmark EBITDA of 1.8x
on a twelve-month basis, compared to our target range of
2.0-2.5x.
-- We have announced a first interim dividend of USc 18.0 per
share, up 6%. This will be paid on 2 February 2024 to shareholders
on the register at the close of business on 5 January 2024.
First-half strategic highlights
Our strategy has been to position Experian to take advantage of
secular growth opportunities across our markets. We have invested
to broaden our capabilities, unlock synergies across our business
and expand into additional areas of clients spend. This strategy,
enabled by our investments over many years, has provided us with
new market opportunities which are driving our growth. It has
extended our competitive position in many areas and reduced our
cyclicality. As we look ahead, we are confident that the strategic
choices we made position us well to accelerate growth as market
conditions improve.
Strategic highlights this half include:
-- In Business-to-Business:
o We have added to the depth and breadth of our datasets. Recent
developments include the addition of further Experian Boost and Go
records in the USA, the addition of c.40m Buy Now Pay Later records
in the UK and, in Brazil, the inclusion of utilities positive data
and open receivables records.
o We have extended our platforms. PowerCurve delivered good
growth. Ascend continues its growth trajectory. Ascend now has 511
clients globally and Total Contract Value of US$490m.
o Verifications and Employer Services in North America is on
track to achieve revenues of over US$190m in FY24. Record count has
grown to 52 million (at 31 October 2023) and we have added new
clients for both employment services and Experian Verify. We also
have contracted access to over 80% of the UK PAYE workforce, with
approximately 50% of records now live and we are trialling concepts
with leading UK financial institutions. We are also launching
early-stage propositions in Brazil.
o In North America Automotive, we have delivered significant new
revenue growth through our Experian Marketing Engine. We have
introduced new digital audience categories and vehicle measurement
capabilities, and we have added new statistics to track electric
vehicle sales.
o In North America Targeting, we now source the majority of our
revenue from digital identity services and our audiences are now
available on leading digital advertising platforms.
o In North America Health, we have unlocked additional
opportunities with clients by leveraging our new AI Advantage
products, including our award-winning Claims module.
o In Brazil, have started to scale a series of investments which
unlock new growth opportunities and diversify our portfolio. These
include the expansion of our Small and Medium Enterprise
activities. We have added to our agribusiness capabilities and have
extended our fraud prevention capabilities.
o In the UK and Ireland, we continue to capitalise on successful
new business performance. We continue to add data assets to extend
our data superiority.
o In EMEA and Asia Pacific, our focus on scaled markets has led
to improved growth and profitability. We continue to enhance our
analytics and scores, extend our cloud solutions, add new datasets
and expand our fraud prevention capabilities.
-- In Consumer Services:
o We have added to our free membership base. Globally,
memberships grew to 178 million including 14 million members from
Spanish Latin America. On a like-for-like basis, consumer
memberships are up 13% year-on-year from 157 million.
o We have added to the North America premium experience for our
paid-for members. New features include BillFixer which has helped
our members collectively save approximately US$5m since launch.
o We launched Experian Smart Money in North America. This is a
new no-fee Experian digital checking account to help individuals
build their credit score, an important milestone in our financial
inclusion strategy.
o We see good client adoption for Experian Activate.
Approximately 30% of our card and loan offers in our North America
Consumer Services marketplace now run through this capability (as
at 31 October 2023).
o We launched Boost for Insurance. This has added 600,000
tradelines and helps us to build engagement. We also secured new
contracts, including with a direct insurance carrier in the USA.
This represents a further step in our strategy to scale our North
America Consumer Services insurance marketplace.
o In Brazil, we have broadened the range of services available
through our app.
Other financial developments
Benchmark profit before tax (PBT) was US$860m, up 6% at actual
exchange rates, after a net interest expense of US$68m (2022:
US$62m). Benchmark net finance expense increased only modestly
despite the large increase in market interest rates thanks to the
protection from our high proportion of fixed rate debt. This kept
the average interest rate on our Net debt broadly stable at around
3%. For FY24, we continue to expect net interest expense to be in
the range of US$125-130m.
The Benchmark tax rate was 25.1% (2022: 26.0%). For FY24, we
continue to expect a rate of around 26-27%, taking into account
expected profit mix for the year and an increase in the UK
corporate tax rate.
Our Benchmark EPS was USc 70.4, an increase of 8% at both
constant and actual exchange rates. For FY24, we continue to expect
weighted average number of ordinary shares (WANOS) of c.914m.
Foreign exchange translation was neutral to Benchmark EPS in the
half. For FY24, we continue to expect a foreign exchange
translation effect of c. 0% to +1% impact on revenue and Benchmark
EBIT, assuming recent foreign exchange rates prevail.
Non-benchmark items:
-- Statutory PBT was US$763m, up US$246m, 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$24m (2022: US$66m) for
increased contingent consideration due to over-performance on prior
acquisitions.
Reconciliation of statutory to Benchmark measures for the six
months ended 30 September 2023
Statutory Non-benchmark and other items Benchmark
Investment- Amortisation Non-cash Exceptional
related of acquisition financing items(2)
items(1) intangibles items
US$m US$m US$m US$m US$m US$m
----------- ---------- ------------ ---------------- ----------- ------------ ---------- ----------
3,414 - - - - 3,414 Ongoing
10 - - - - 10 Exited
----------- ---------- ------------ ---------------- ----------- ------------ ---------- ----------
Revenue 3,424 - - - - 3,424 Revenue
800 33 95 - 1 929 Ongoing
(1) - - - - (1) Exited
----------- ---------- ------------ ---------------- ----------- ------------ ---------- ----------
Operating Benchmark
profit 799 33 95 - 1 928 EBIT
Profit
before Benchmark
tax 763 32 95 (31) 1 860 PBT
Basic Benchmark
EPS USc 62.3 2.7 7.8 (2.5) 0.1 70.4 EPS USc
----------- ---------- ------------ ---------------- ----------- ------------ ---------- ----------
1. Investment-related items include the Group's share of
continuing associates' Benchmark post-tax results.
2. Exceptional items are analysed in note 9 to the condensed interim financial statements.
Environmental, Social and Governance (ESG)
-- We have continued to create innovative products that
financially empower consumers, to help improve financial health for
all. Experian Smart Money is a further step on this journey.
-- More than 14 million US consumers have now connected to
Experian Boost, helping millions to improve their credit score.
-- In the UK we launched Support Hub, which gives disabled
people and those with additional support needs an easy, one-stop
portal to tell organisations what support they need to access
essential services. It has been adopted by a growing number of
financial institutions and utility companies.
-- We further advanced our 'people first' culture. We have been
certified as a Great Place to Work in 24 countries, increasing our
scores in key areas for another year. 94% of employees who
participated agreed that people are treated fairly regardless of
their sexual orientation, race, age and gender, 93% agreed that
Experian's flexible ways of working enable people to work
productively, and 87% agreed that Experian is a great place to
work.
-- We have continued to make progress towards reducing our Scope
1 and 2 emissions. To reduce our Scope 3 emissions, we are
trialling a new initiative that requires suppliers to have Science
Based targets aligned to the 1.5 degree scenario and disclose
emissions data. This is in pilot with a small number of
suppliers.
Part 2 - Regional highlights for the six months ended 30
September 2023
Year-on-year % change in organic(1) revenue Benchmark
- for the six months ended 30 September EBIT
2023 margin(2)
% of Group Data Decisioning B2B Consumer Total Total
revenue(3) Services
------------ ------ --------------- ----- ----------- ------- -----------
North
America 67 3 6 4 4 4 33.9%
------------ ------ --------------- ----- ----------- ------- -----------
Latin
America 15 6 12 7 32 11 26.7%
------------ ------ --------------- ----- ----------- ------- -----------
UK and
Ireland 12 3 2 3 (4) 1 19.4%
------------ ------ --------------- ----- ----------- ------- -----------
EMEA
and Asia
Pacific 6 3 23 8 n/a 8 1.9%
------------ ------ --------------- ----- ----------- ------- -----------
Total
global 100 3 7 4 6 5 27.2%
------------ ------ --------------- ----- ----------- ------- -----------
1. At constant exchange rates.
2. At actual exchange rates.
3. Percentage of Group revenue from ongoing activities
calculated based on FY24 H1 revenue at actual exchange rates.
North America
North America delivered good growth with revenue of US$2,288m,
representing total and organic revenue growth of 4%.
B2B delivered organic revenue growth of 4%. Our expanded product
offers have enabled us to secure competitive wins and deepen
existing client relationships. We have achieved this through the
introduction of new datasets and integrated solutions. These new
revenue streams have helped us to offset the effects of tighter
lending standards and lower lending origination volumes in some
client categories. We benefitted in the half from expanded client
relationships and new implementations for our unmatched Ascend
platform. This platform enables clients to access a wide range of
data, and build, test and seamlessly deploy models for credit risk,
marketing, decisioning and fraud prevention. We benefitted from
growth across Tier One financial institution clients who have
expanded their positions with Experian. We saw strong growth in
low-income credit data where we have introduced new analytics and
model building solutions. We have also continued to expand our
position in income and employment verification services where we
have added to our record count, which now stands at 52 million US
records. We have also secured new clients for verification services
and Experian Verify.
Our Automotive, Targeting and Health verticals also performed
well. In Automotive, new vehicle production and new vehicle sales
have continued to rise over pandemic lows. Inventory increases have
stimulated industry marketing activity and driven demand for our
solutions, such as Experian Audience Engine. In Targeting, we have
benefitted from growth across digital channels, and this has offset
some moderation in activity across retail channels linked to the
macroeconomic environment. Health delivered another half of good
progress. Our healthcare clients seek to address administrative
complexity, improve revenue capture and enhance patient
experiences, and they continue to leverage Experian's products in
order to do so.
Consumer Services delivered organic revenue growth of 4%. Our
goal is to deepen and grow our member relationships by helping
consumers to manage their financial health. We have made good
progress towards this ambition. Free memberships have been an
important contributor to our growth and have risen to 67 million,
up 10 million year-on-year. We have also benefitted from the
diversity of our revenue sources. Strength in paid acquisition and
partner solutions have offset contraction in card and loan
marketplace revenue. We continue to invest in new propositions to
bring new value to our members throughout the Experian ecosystem.
Early indications for our recently introduced digital checking
account, Experian Smart Money, have been encouraging. The launch of
Experian Activate last year has led to competitive outperformance
in the current environment. It enables lenders to target their
offers more precisely and to secure higher conversion rates, and
this has helped us to capture a larger share of eligible credit
offers. Our nascent insurance vertical also delivered a positive
contribution. We have secured new contracts, including one with a
major insurance carrier which we are now in the process of
onboarding. We also introduced Experian Boost for insurance to
continue to drive member engagement in this category.
Benchmark EBIT rose 4% to US$775m. The Benchmark EBIT margin
improved by 10 basis points to 33.9%.
Latin America
Latin America performed strongly. We delivered revenue of
US$514m, with organic revenue growth of 11% and total revenue
growth at constant currency of 13%. Acquisitions included the new
bureau in Panama and three small acquisitions in Brazil,
Agrosatélite, MOVA and Flexpag.
B2B organic revenue growth was 7%.
In Brazil, we continue to see many opportunities to expand
access to affordable credit for consumers and small and medium
enterprises (SMEs). Demand for positive data scores, attributes and
models was strong, and we introduced more predictive analytics and
sophisticated software platforms. We have benefitted from greater
integration of credit and fraud solutions. This has led to expanded
positions with existing clients and new client wins. We also
continue to expand our position in the SME market, including an
early-stage investment in a receivables marketplace which will help
SMEs to use trade receivables as collateral to access credit.
Spanish Latin America performed well. We have expanded the
extent of our footprint in the region which now includes bureau
operations in Colombia, Peru, Chile and Panama. We have extended
our data assets and have introduced Ascend into the region. We have
benefitted from the combination of our superior data sources with
our advanced analytical capabilities, and cloud-based decisioning
and analytical platforms. We continue to invest to expand our
position with SMEs and to further extend our position with larger
clients through integrated solutions.
Consumer Services delivered organic revenue growth of 32%. We
continue to build our brand in Brazil, where we have become one of
the most recognised financial services brands. Our app now ranks at
number two of Brazil's top financial services apps (per data.ai).
We added eight million consumer memberships year-on-year, to take
our total free membership base in Brazil to 84 million. We continue
to enhance our ecosystem of offers to drive engagement and add
further value for our members. We also continue to develop services
for consumers more widely across Latin America and our free
membership count for Spanish Latin America has reached 14
million.
Benchmark EBIT in Latin America was US$137m, up 13% at constant
exchange rates. The Benchmark EBIT margin from ongoing activities
at actual exchange rates was 26.7%, up 20 basis points.
UK and Ireland
The UK and Ireland delivered modest growth. Revenue was US$397m,
with both total and organic revenue growth at constant exchange
rates of 1%. Organic revenue improved sequentially during the half,
from 1% in Q1 to 2% in Q2.
B2B was resilient in H1. It delivered organic revenue growth of
3%, helped by strength in our core consumer bureau in Q2, which
reflected good progress in new business performance. There was good
demand for a wide range of propositions, including for
affordability, originations and portfolio management. These factors
outweighed the effects of weaker UK credit conditions. Fraud and
identity management also performed well, with a positive trajectory
in win rates and new business bookings. We continue to invest to
extend and deepen our data assets, including in income
verification. We have also invested further in our data quality
suite, including an extension to the Experian Aperture Data
Studio.
Organic revenue in Consumer Services was down (4)%. Premium
subscription memberships declined modestly in the half, and tight
credit conditions continued to affect volumes in the credit
marketplace. We have enhanced the product offering to ensure we are
well positioned for when credit conditions improve. We are
encouraged by the performance of CreditLock, a new feature
introduction, and will roll-out further enhancements to the user
experience in the months to come. Free memberships were 13
million.
Benchmark EBIT from ongoing activities was US$77m, stable at
constant exchange rates. The Benchmark EBIT margin from ongoing
activities was 19.4%, stable at constant exchange rates and down by
20 basis points at actual exchange rates.
EMEA and Asia Pacific
In EMEA and Asia Pacific, revenue from ongoing activities was
US$215m, with organic growth of 8% and total growth at constant
exchange rates of 9%. The difference relates to the acquisition of
a small cloud-based decisioning business. Data delivered organic
revenue growth of 3% while Decisioning delivered strong growth, up
23%.
The transformation of our EMEA and Asia Pacific operations
continues to progress well. Having largely executed our
transformation plans, we have turned our attention to scaling our
activities with innovation-led growth. We have begun to roll-out
new scores and attributes and, new fraud prevention capabilities,
and we plan new Ascend introductions across key markets. By
geography:
-- Australia and New Zealand - delivered very positive progress,
attributable to strength in cloud-based decisioning capabilities
and data quality.
-- DACH (Germany, Austria and Switzerland) - continued to
experience weakness due to economic headwinds and lower
volumes.
-- India - delivered strong growth, driven by credit volume
expansion and fraud prevention expansion.
-- Italy - delivered strong growth driven by bureau volumes,
decisioning and fraud prevention expansion.
-- South Africa - delivered good bureau growth.
-- Spain - delivered modest growth helped by new client wins.
Our actions have improved Benchmark EBIT performance, which for
ongoing activities was US$4m, up year-on-year from US$(3)m. The
Benchmark EBIT margin for ongoing activities improved to 1.9% from
(1.5)% in FY23.
FY24 modelling considerations
Organic revenue growth 4-6%
Benchmark EBIT margin(1) Modest margin improvement
-------------------------------------
Foreign exchange c. 0 to +1% on revenue and Benchmark
EBIT
-------------------------------------
Net interest c. US$125-130m
-------------------------------------
Benchmark tax rate 26-27%
-------------------------------------
WANOS(2) c.914m
-------------------------------------
Capital expenditure c.9% of revenue
-------------------------------------
OCF(3) conversion >90%
-------------------------------------
Share repurchases US$150m
-------------------------------------
1. At constant exchange rates.
2. Weighted average number of shares.
3. Benchmark operating cash flow.
Group financial results
Business mix including % change in organic revenue year-on-year
for the six months ended 30 September 2023
Segment Business unit % of Group Organic revenue growth
revenue(1) %(2)
Q1 Q2 H1
------- -------- --------
North America 67% 4% 4% 4%
------------ ------- -------- --------
Data CI / BI bureaux 23% 1% 2% 1%
- CI / BI bureaux, excluding
mortgage 21% 2% 2% 2%
- Mortgage 2% (8)% (3)% (6)%
Automotive 5% 8% 7% 8%
Targeting 4% 9% 5% 7%
--------------------------------------------- ------------ ------- -------- --------
Decisioning Health 8% 9% 6% 8%
DA / Other 5% 3% 2% 3%
--------------------------------------------- ------------ ------- -------- --------
Consumer Consumer Services 22% 3% 5% 4%
------------------------------ ------------ ------- -------- --------
Latin America 15% 13% 10% 11%
------------ ------- -------- --------
Data CI / BI bureaux 9% 9% 6% 7%
Other 0% 0% (29)% (17)%
--------------------------------------------- ------------ ------- -------- --------
Decisioning DA / Other 3% 15% 9% 12%
------------------------------ ------------ ------- -------- --------
Consumer Consumer Services 3% 26% 38% 32%
------------------------------ ------------ ------- -------- --------
UK and Ireland 12% 1% 2% 1%
------------ ------- -------- --------
Data CI / BI bureaux 5% 1% 6% 4%
Targeting / Auto 1% 6% (1)% 2%
--------------------------------------------- ------------ ------- -------- --------
Decisioning DA / Other 3% 0% 3% 2%
------------------------------ ------------ ------- -------- --------
Consumer Consumer Services 3% (2)% (5)% (4)%
------------------------------ ------------ ------- -------- --------
EMEA and Asia Pacific 6% 8% 8% 8%
------------ ------- -------- --------
Total global 100% 5% 5% 5%
------------ ------- -------- --------
1. Percentage of Group revenue from ongoing activities
calculated based on FY24 H1 revenue at actual exchange rates.
2. Ongoing activities, at constant exchange rates.
CI = Consumer Information, BI = Business Information, DA =
Decision Analytics.
Revenue by region
Six months ended 30 September Growth %
------
Total Total Organic
2022 at actual at constant at constant
2023 (1) exchange exchange exchange
US$m US$m rates rates rates
------ ----------- ------------- -------------
North America
Data 1,101 1,071 3 3
Decisioning 427 403 6 6
------ ------ ----------- ------------- -------------
Business-to-Business 1,528 1,474 4 4
Consumer Services 760 730 4 4
------ ------ ----------- ------------- -------------
Total ongoing activities 2,288 2,204 4 4 4
Exited business activities - -
------ ------ ----------- ------------- -------------
Total North America 2,288 2,204
------ ------ ----------- ------------- -------------
Latin America
Data 320 288 9 6
Decisioning 97 83 13 12
------ ------ ----------- ------------- -------------
Business-to-Business 417 371 9 7
Consumer Services 97 70 34 32
Total ongoing activities 514 441 17 13 11
Exited business activities 2 8
------ ------ ----------- ------------- -------------
Total Latin America 516 449
------ ------ ----------- ------------- -------------
UK and Ireland
Data 201 186 4 3
Decisioning 110 105 2 2
------ ------ ----------- ------------- -------------
Business-to-Business 311 291 3 3
Consumer Services 86 87 (4) (4)
------ ------ ----------- ------------- -------------
Total ongoing activities 397 378 5 1 1
Exited business activities - -
------ ------ ----------- ------------- -------------
Total UK and Ireland 397 378
------ ------ ----------- ------------- -------------
EMEA and Asia Pacific
Data 152 148 3 3
Decisioning 63 53 25 23
Total ongoing activities 215 201 7 9 8
Exited business activities 8 15
------ ------ ----------- ------------- -------------
Total EMEA and Asia Pacific 223 216
------ ------ ----------- ------------- -------------
Total revenue - ongoing
activities 3,414 3,224 6 5 5
Total revenue - exited
business activities 10 23
------ ------ ----------- ------------- -------------
Revenue 3,424 3,247 5 5
------ ------ ----------- ------------- -------------
1. The results for the six months ended 30 September 2022 have
been re-presented for the reclassification to exited business
activities of certain B2B businesses, detail is provided in notes
7(a) and 8 to the condensed interim financial statements.
See Appendix 1 (page 14) and note 6 to the condensed interim
financial statements for definitions of non-GAAP measures.
See Appendix 3 (page 15) for analyses of revenue, Benchmark EBIT
and Benchmark EBIT margin from ongoing activities by business
segment.
Income statement, earnings and Benchmark EBIT margin
analysis
Six months ended 30 September Growth %
--------
Total Total
2022 at actual at constant
2023 (1) exchange exchange
US$m US$m rates rates
-------- ----------- -------------
Benchmark EBIT by geography
North America 775 745 4
Latin America 137 117 13
UK and Ireland 77 74 0
EMEA and Asia Pacific 4 (3) 231
-------- -------- ----------- -------------
Benchmark EBIT before Central Activities 993 933 6 6
Central Activities - central corporate
costs (64) (56)
-------- -------- ----------- -------------
Benchmark EBIT from ongoing activities 929 877 6 6
Exited business activities (1) (4)
-------- -------- ----------- -------------
Benchmark EBIT 928 873 6 6
Net interest (68) (62)
-------- -------- ----------- -------------
Benchmark PBT 860 811 6 6
Exceptional items 4 (27)
Amortisation of acquisition intangibles (95) (93)
Impairment of goodwill - (152)
Acquisition and disposal expenses (13) (21)
Adjustment to the fair value of contingent
consideration (24) (66)
Interest on uncertain tax provisions - 6
Financing fair value remeasurements 31 59
Profit before tax 763 517 48
Tax charge (191) (210)
Profit after tax 572 307 86
-------- -------- -----------
Benchmark earnings
Benchmark PBT 860 811 6 6
Benchmark tax charge (216) (211)
-------- -------- ----------- -------------
Total Benchmark earnings 644 600
-------- -------- ----------- -------------
Owners of Experian plc 643 598 8 8
Non-controlling interests 1 2
-------- -------- ----------- -------------
Benchmark EPS USc70.4 USc65.4 8 8
Basic EPS USc62.3 USc33.5 86
Weighted average number of ordinary
shares 914 914
-------- -------- ----------- -------------
Benchmark EBIT margin - ongoing activities
North America 33.9% 33.8%
Latin America 26.7% 26.5%
UK and Ireland 19.4% 19.6%
EMEA and Asia Pacific 1.9% (1.5)%
-------- -------- ----------- -------------
Benchmark EBIT margin 27.2% 27.2%
-------- -------- ----------- -------------
1. Benchmark results for the six months ended 30 September 2022
have been re-presented for the reclassification to exited business
activities of certain B2B businesses, detail is provided in notes
7(a) and 8 to the condensed interim financial statements.
See Appendix 1 (page 14) and note 6 to the condensed interim
financial statements for definitions of non-GAAP measures.
See Appendix 3 (page 15) for analyses of revenue, Benchmark EBIT
and Benchmark EBIT margin from ongoing activities by business
segment.
Group financial review
Key statutory measures
Statutory revenue
We delivered a good performance in the period, notwithstanding a
challenging global economy and tougher trading conditions. Growth
was in line with guidance and revenue increased by 5% to US$3,424m
(2022: US$3,247m).
Statutory operating profit and profit before tax
Operating profit for the six months ended 30 September 2023
improved by 56% to US$799m (2022: US$513m), there was no repeat of
the FY23 goodwill impairment charge of US$152m, and a reduced
expense for adjustments to contingent consideration on prior
acquisitions of US$24m (2022: US$66m). The movements in Benchmark
EBIT at constant currency are discussed in the Chief Executive
Officer's review and Regional highlights on pages three to eight. N
et finance expense increased to US$37m (2022: net finance income
US$3m), impacted by movements in financing fair value
remeasurements of US$28m and an uplift in average market interest
rates. Profit before tax improved to US$763m (2022: US$517m).
Statutory Basic EPS
Basic EPS increased to 62.3 US cents (2022: 33.5 US cents),
reflecting a higher profit before tax and a reduced effective tax
rate.
Statutory cash flow
Cash generated from operations declined to US$973m (2022:
US$1,024m) due primarily to working capital movements. Net
borrowing inflows were US$263m (2022: US$361m). Cash outflows for
net share purchases were US$47m (2022: US$113m), offsetting
deliveries under employee share plans. Undrawn committed bank
borrowing facilities at 30 September 2023 totalled US$2.3bn (2022:
US$2.4bn).
Tax
The effective rate of tax based on profit before tax was 25.0%,
a decrease of 15.6 percentage points from the comparative period,
largely attributable to the absence of a non-deductible goodwill
impairment charge and a reduction in other non-deductible
expenses.
Net assets
Net assets at 30 September 2023 increased to US$4,173m (2022:
US$3,605m). Capital employed, as defined in note 6(p) to the
condensed interim financial statements, was US$8,501m (2022:
US$7,932m).
Equity
There was an increase in equity of US$209m from US$3,964m at 31
March 2023, with movements detailed in the Group statement of
changes in equity on page 20.
Key movements in equity during the half include:
-- Profit for the period of US$572m.
-- Remeasurement losses of US$22m in respect of defined benefit pension plans.
-- Employee share awards and options cost of US$57m.
-- Ordinary dividends of US$345m and a movement of US$68m in
connection with net share purchases.
Seasonality
We anticipate Benchmark EBIT to be somewhat weighted towards the
second half of the year reflecting revenue seasonality and
historical performance.
Risks
Identifying and managing risk is key to our purpose and the
delivery of our strategy and objectives. Our risk management
process is designed to identify, assess, respond to, report on and
monitor the risks that threaten our ability to do this.
The principal risks and uncertainties we face in the remaining
six months of the year remain consistent with those explained in
detail on pages 78 to 85 of our Annual Report for the year ended 31
March 2023:
-- Data loss/misuse;
-- Legislative/regulatory change and compliance;
-- Macroeconomic;
-- Resiliency;
-- Business conduct;
-- Talent acquisition and retention;
-- Competition; and
-- Investment outcomes.
There are no changes to our assessments of our principal risks
in the first half of the financial year, when compared with those
reported in our Annual Report for the year ended 31 March 2023.
Overall risks remain stable, and we continue to develop our
responses to these and other risks on an ongoing basis. The below
matters are noted as part of our ongoing assessment.
Data Loss/misuse - 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.
Legislative/regulatory change and compliance - Risks associated
with new laws, new interpretations of existing laws, changes to
existing regulations and regulatory scrutiny continue at a
heightened level. The global focus remains on privacy and a general
trend towards more consumer access and control over data, as well
as developments which relate to our credit reference and consumer
services businesses in our larger markets. Recent examples include:
continued scrutiny and rulemaking by the US Consumer Financial
Protection Bureau and US Federal Trade Commission; a growing number
of states have enacted or are considering privacy laws and US
Congress is exploring changes to financial data privacy standards;
the ongoing interpretation of data protection laws in several
jurisdictions in which we operate, including the UK's revised Data
Protection and Digital Information Bill; and the UK Financial
Conduct Authority's Consumer Duty, which came into force on 31 July
2023.
We continue to vigorously defend a number of consumer litigation
cases, particularly in the USA and Brazil. Additionally, the
hearing date for the UK Information Commissioner's Office appeal
against the First Tier Tribunal's decision on matters of law has
now been fixed for February 2024.
Macroeconomic - Moving into FY24, macroeconomic risk continues
to remain uncertain in our three core economies, with 2024 GDP
forecasts now less positive. Inflation appears more entrenched,
which has seen further monetary interventions in the USA and UK
throughout the first half of the year. Given this picture, we
continue to monitor the macroeconomic trends to respond quickly to
any deterioration in the current position.
Further information on financial risk management is given in
note 25 to the condensed interim financial statements.
The Chief Executive Officer's, Business and Group financial
reviews on pages 3 to 12 include consideration of key uncertainties
affecting us for the remainder of the current financial year. There
may however be additional risks unknown to us and other risks,
currently believed to be immaterial, which could turn out to be
material. These risks, whether they materialise individually or
simultaneously, could significantly affect our business and
financial results.
Going concern
The principal risks and uncertainties we face and our assessment
of viability, remain largely unchanged from those explained in
detail on pages 78 to 87 of our Annual Report for the year ended 31
March 2023.
The Group has a robust balance sheet with access to considerable
funding and continues to adopt the going concern basis in preparing
these condensed interim financial statements. Cash flow in the
period was solid with cash flow conversion of 77% (2022: 88%). Our
undrawn committed bank borrowing facilities at 30 September 2023
were US$2.3bn (2022: US$2.4bn) and have an average remaining tenor
of two years (2022: three years).
The directors believe that the Group is well placed to manage
its financing and other business risks satisfactorily, and have a
reasonable expectation that the Group will have adequate resources
to continue in operational existence for at least 12 months from
the date of signing these condensed interim financial statements.
See note 2 to the condensed interim financial statements for
further detail.
Appendices
1. Non-GAAP financial information
We have identified and defined certain measures that we believe
assist understanding of our performance. These measures are not
defined under IFRS and they may not be directly comparable with
other companies ' adjusted performance measures. These non-GAAP
measures are not intended to be a substitute for any IFRS measures
of performance but we consider them to be key measures used for
assessing the underlying performance of our business.
The table below summarises our non-GAAP measures. There is a
fuller explanation, and references to where the measures are used
and reconciled, in note 6 to the condensed interim financial
statements.
Benchmark PBT Profit before amortisation and impairment charges,
acquisition expenses, Exceptional items, financing
fair value remeasurements, tax (and interest thereon)
and discontinued operations. It includes the Group's
share of continuing associates' Benchmark post-tax
results.
Benchmark EBIT Benchmark PBT before net interest expense.
Benchmark EBITDA Benchmark EBIT before depreciation and amortisation.
Exited business The results of businesses sold, closed or identified
activities for closure during a financial year.
Ongoing activities The results of businesses that are not disclosed as
exited business activities.
Constant exchange Results and growth calculated after translating both
rates years' performance at the prior year's average exchange
rates.
Total growth This is the year-on-year change in the performance
of Experian's activities at actual exchange rates.
Organic revenue This is the year-on-year change in the revenue of
growth 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 Benchmark PBT less attributable tax.
earnings
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 Benchmark EBIT plus amortisation, depreciation and
cash flow 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 debt is borrowings (and the fair value of derivatives
Net funding 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 Benchmark EBIT less tax at the Benchmark rate divided
employed (ROCE) by average capital employed, in continuing operations,
over the year. Capital employed is net assets less
non-controlling interests and right-of-use assets,
plus or minus the net tax liability or asset and plus
Net debt.
--------------------- -------------------------------------------------------------
2. Foreign currency
Foreign exchange - average rates
The principal exchange rates used to translate revenue and
Benchmark EBIT into the US dollar are shown in the table below.
Six months Six months Year ended
ended ended 31 March 2023
30 September 30 September
2023 2022
US dollar : Brazilian real 4.92 5.08 5.16
Pound sterling : US dollar 1.26 1.21 1.20
Euro : US dollar 1.09 1.04 1.04
US dollar : Colombian peso 4,233 4,151 4,469
US dollar : South African
rand 18.65 16.31 17.00
-------------- -------------- ---------------
The impact of foreign currency movements on revenue from ongoing
activities is set out in note 7(c) to the condensed interim
financial statements.
Appendices (continued)
2. Foreign currency (continued)
Foreign exchange - closing rates
The principal exchange rates used to translate assets and
liabilities into the US dollar at the period end dates are shown in
the table below.
30 September 30 September 31 March 2023
2023 2022
US dollar : Brazilian real 5.02 5.41 5.08
Pound sterling : US dollar 1.22 1.11 1.24
Euro : US dollar 1.06 0.98 1.09
US dollar : Colombian peso 4,043 4,574 4,623
US dollar : South African
rand 18.88 17.99 17.71
------------- ------------- ---------------
3. Revenue, Profit before tax and Benchmark EBIT margin by
business segment
Six months ended 30 September Growth %
Total Organic
at constant at constant
2023 2022(1) exchange exchange
US$m US$m rates rates
------- ---------- ------------- -------------
Revenue
Data 1,774 1,693 4 3
Decisioning 697 644 8 7
------- ---------- ------------- -------------
Business-to-Business 2,471 2,337 5 4
Consumer Services 943 887 6 6
------- ---------- ------------- -------------
Ongoing activities 3,414 3,224 5 5
Exited business activities 10 23 n/a
------- ---------- ------------- -------------
Total 3,424 3,247 5
------- ---------- ------------- -------------
Benchmark EBIT
Business-to-Business 754 736 2
Consumer Services 239 197 21
------- ---------- ------------- -------------
Business segments 993 933 6
Central Activities - central corporate
costs (64) (56) n/a
------- ---------- ------------- -------------
Ongoing activities 929 877 6
Exited business activities (1) (4) n/a
------- ---------- ------------- -------------
Total Benchmark EBIT 928 873 6
Net interest expense (68) (62) n/a
------- ---------- ------------- -------------
Benchmark PBT 860 811 6
Exceptional items(2) 4 (27)
O ther adjustments made to derive
Benchmark PBT(2) (101) (267)
------- ---------- ------------- -------------
Profit before tax 763 517
------- ---------- ------------- -------------
Benchmark EBIT margin - ongoing
activities
Business-to-Business 30.5% 31.5%
Consumer Services 25.3% 22.2%
------- ---------- ------------- -------------
Benchmark EBIT margin(3) 27.2% 27.2%
------- ---------- ------------- -------------
1. Revenue and Benchmark EBIT for the six months ended 30
September 2022 have been re-presented for the reclassification to
exited business activities of certain B2B businesses. See notes
7(a) and 8 to the condensed interim financial statements .
2. See note 9 to the condensed interim financial statements .
3. Benchmark EBIT margin for ongoing activities is calculated by
dividing Benchmark EBIT for ongoing activities by revenue from
ongoing activities.
Appendices (continued)
4. Cash flow and Net debt summary
Six months ended 30 September 2023 2022
US$m US$m
-------- --------
Benchmark EBIT 928 873
Amortisation and depreciation charged to Benchmark
EBIT 252 240
---------------------------------------------------- -------- --------
Benchmark EBITDA 1,180 1,113
Net capital expenditure (Appendix 5) (307) (280)
Increase in working capital (194) (97)
Principal lease payments (24) (30)
Benchmark profit retained in associates (1) -
Charge for share incentive plans 57 63
---------------------------------------------------- -------- --------
Benchmark operating cash flow(1) 711 769
Net interest paid (84) (68)
Tax paid (251) (227)
Benchmark free cash flow 376 474
Acquisitions(2) (206) (287)
Disposal of operations(3) 5 (3)
Purchase of investments (5) (7)
Disposal of investments - 1
Movement in Exceptional and other non-benchmark
items (57) (34)
Ordinary dividends paid (345) (327)
---------------------------------------------------- -------- --------
Net cash outflow (232) (183)
Net debt at 1 April (4,030) (3,950)
Net share purchases (47) (113)
Non-cash lease obligation additions and disposals (35) (11)
Principal lease payments 24 30
Additions through business combinations (7) -
Foreign exchange and other movements 27 79
Net debt at 30 September (4,300) (4,148)
-------- --------
1. A reconciliation of Cash generated from operations to
Benchmark operating cashflow is provided in note 17(g) to the
condensed interim financial statements.
2. See note 17(d) to the condensed interim financial
statements.
3. Includes the disposal of operations classified as
held-for-sale.
5. Reconciliation of net investment
Six months ended 30 September 2023 2022
US$m US$m
----- -----
Capital expenditure as reported in the Group cash
flow statement 310 281
Disposal of property, plant and equipment (1) (1)
Disposal of assets classified as held-for-sale (2) -
--------------------------------------------------- ----- -----
Net capital expenditure 307 280
Acquisitions 206 287
Purchase of investments 5 7
Disposal of operations and investments (5) 2
--------------------------------------------------- ----- -----
Net investment 513 576
--------------------------------------------------- ----- -----
Condensed interim financial statements
Group income statement
for the six months ended 30 September 2023
Six months ended 30 September Six months ended 30 September
2023 2022
Benchmark(1) Non-benchmark(2) Total Benchmark(1) Non-benchmark(2) Total
US$m US$m US$m US$m US$m US$m
Revenue (note 7(a)) 3,424 - 3,424 3,247 - 3,247
Total operating expenses (2,497) (128) (2,625) (2,375) (359) (2,734)
Operating profit/(loss) 927 (128) 799 872 (359) 513
Finance income 9 - 9 5 - 5
Finance expense (77) 31 (46) (67) 65 (2)
------------ ---------------- -------- ------------ ---------------- --------
Net finance
(expense)/income
(note 10(a)) (68) 31 (37) (62) 65 3
Share of post-tax profit
of associates 1 - 1 1 - 1
-------------------------- ------------ ---------------- -------- ------------ ---------------- --------
Profit/(loss) before
tax (note 7(a)) 860 (97) 763 811 (294) 517
Tax (charge)/credit
(note 11(a)) (216) 25 (191) (211) 1 (210)
-------------------------- ------------ ---------------- -------- ------------ ---------------- --------
Profit/(loss) for the
period 644 (72) 572 600 (293) 307
-------------------------- ------------ ---------------- -------- ------------ ---------------- --------
Attributable to:
Owners of Experian plc 643 (74) 569 598 (292) 306
Non-controlling interests 1 2 3 2 (1) 1
-------------------------- ------------ ---------------- -------- ------------ ---------------- --------
Profit/(loss) for the
period 644 (72) 572 600 (293) 307
-------------------------- ------------ ---------------- -------- ------------ ---------------- --------
Total Benchmark EBIT(1)
(note 7(a)) 928 873
-------------------------- ------------ ---------------- -------- ------------ ---------------- --------
US cents US cents US cents US cents US cents US cents
-------------------------- ------------ ---------------- -------- ------------ ---------------- --------
Earnings/(loss) per
share (note 12(a))
Basic 70.4 (8.1) 62.3 65.4 (31.9) 33.5
Diluted 70.0 (8.1) 61.9 65.1 (31.8) 33.3
-------------------------- ------------ ---------------- -------- ------------ ---------------- --------
1. Total Benchmark EBIT and other Benchmark items are non-GAAP
measures, defined in note 6 to the condensed interim financial
statements.
2. The loss before tax for non-benchmark items of US$97m (2022:
US$294m) is analysed in note 9(a) to the condensed interim
financial statements.
Condensed interim financial statements
Group statement of comprehensive income
for the six months ended 30 September 2023
Six months ended
30 September
---------------------
2023 2022
US$m US$m
---------------------------------------------------- --------- ----------
Profit for the period 572 307
----------------------------------------------------- --------- ----------
Other comprehensive income
Items that will not be reclassified to
profit or loss:
Remeasurement of post-employment benefit
assets and obligations (note 16(b)) (22) (35)
Changes in the fair value of investments
revalued through OCI (12) (42)
Deferred tax credit 6 8
Items that will not be reclassified to
profit or loss (28) (69)
----------------------------------------------------- --------- ----------
Items that are or may be reclassified subsequently
to profit or loss:
Currency translation gains/(losses) 10 (260)
Fair value loss on cash flow hedge (6) (93)
Hedging loss reclassified to profit or
loss (note 10(c)) 8 81
----------------------------------------------------- --------- ----------
Items that are or may be reclassified subsequently
to profit or loss 12 (272)
----------------------------------------------------- --------- ----------
Other comprehensive expense for the period(1) (16) (341)
Total comprehensive income /(expense) for
the period 556 (34)
Attributable to:
Owners of Experian plc 555 (28)
Non-controlling interests 1 (6)
----------------------------------------------------- --------- ----------
Total comprehensive income /(expense) for
the period 556 (34)
----------------------------------------------------- --------- ----------
1. Amounts reported within OCI are in respect of continuing
operations and, except as reported for post-employment benefit
assets and obligations, there is no associated tax. 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.
Condensed interim financial statements
Group balance sheet
at 30 September 2023
30 September 31 March
----------------------
2023 2022 2023
Notes US$m US$m US$m
------------------------------------- ----------- ----------- --------- --------------
Non-current assets
Goodwill 14 5,727 5,448 5,575
Other intangible assets 2,352 2,195 2,289
Property, plant and equipment 380 370 382
Investments in associates 13 4 12
Deferred tax assets 49 26 37
Post-employment benefit assets 16(a) 151 144 174
Trade and other receivables 151 125 140
Financial assets revalued
through OCI 311 326 313
Other financial assets 204 181 148
------------------------------------- ----------- ----------- --------- --------------
9,338 8,819 9,070
------------------------------------- ----------- ----------- --------- --------------
Current assets
Trade and other receivables 1,584 1,373 1,519
Current tax assets 41 41 50
Other financial assets 6 7 7
Cash and cash equivalents
- excluding bank overdrafts 18(b) 195 146 202
------------------------------------- ----------- ----------- --------- --------------
1,826 1,567 1,778
Assets classified as held-for-sale 24 10 35 16
------------------------------------- ----------- ----------- --------- --------------
1,836 1,602 1,794
------------------------------------- ----------- ----------- --------- --------------
Current liabilities
Trade and other payables (1,785) (1,626) (1,955)
Borrowings 18(b) (816) (237) (156)
Current tax liabilities (141) (135) (135)
Provisions (29) (55) (56)
Other financial liabilities (57) (20) (6)
------------------------------------- ----------- ----------- --------- --------------
(2,828) (2,073) (2,308)
Liabilities classified as
held-for-sale 24 - (1) (3)
------------------------------------- ----------- ----------- --------- --------------
(2,828) (2,074) (2,311)
Net current liabilities (992) (472) (517)
------------------------------------- ----------- ----------- --------- --------------
Total assets less current
liabilities 8,346 8,347 8,553
------------------------------------- ----------- ----------- --------- --------------
Non-current liabilities
Trade and other payables (226) (216) (186)
Borrowings 18(b) (3,479) (3,731) (3,943)
Deferred tax liabilities (150) (273) (223)
Post-employment benefit obligations 16(a) (35) (37) (39)
Provisions (4) (4) (3)
Financial liabilities revalued
through OCI (28) (78) (24)
Other financial liabilities (251) (403) (171)
------------------------------------- ----------- ----------- --------- --------------
(4,173) (4,742) (4,589)
------------------------------------- ----------- ----------- --------- --------------
Net assets 4,173 3,605 3,964
------------------------------------- ----------- ----------- --------- --------------
Equity
Called-up share capital 20 97 96 96
Share premium account 20 1,815 1,796 1,799
Retained earnings 20,661 20,087 20,447
Other reserves (18,435) (18,406) (18,413)
------------------------------------- ----------- ----------- --------- --------------
Attributable to owners of
Experian plc 4,138 3,573 3,929
Non-controlling interests 35 32 35
------------------------------------- ----------- ----------- --------- --------------
Total equity 4,173 3,605 3,964
------------------------------------- ----------- ----------- --------- --------------
Condensed interim financial statements
Group statement of changes in equity
for the six months ended 30 September 2023
Called-up Share Retained Other Attributable Non-controlling Total
share premium earnings reserves to owners interests equity
capital account of Experian
plc
(Note (Note
20) 20)
US$m US$m US$m US$m US$m US$m US$m
---------------------------- ---------- --------- ---------- ---------- ------------- ---------------- --------
At 1 April 2023 96 1,799 20,447 (18,413) 3,929 35 3,964
Comprehensive income:
Profit for the period - - 569 - 569 3 572
Other comprehensive
income/(expense) - - (28) 14 (14) (2) (16)
---------------------------- ---------- --------- ---------- ---------- ------------- ---------------- --------
Total comprehensive income - - 541 14 555 1 556
---------------------------- ---------- --------- ---------- ---------- ------------- ---------------- --------
Transactions with owners:
Employee share incentive
plans:
- value of employee
services - - 57 - 57 - 57
- shares issued on vesting 1 16 - - 17 - 17
- purchase of shares by
employee
trusts - - - (56) (56) - (56)
- other vesting of awards
and exercises of share
options - - (36) 49 13 - 13
- other payments - - (4) - (4) - (4)
Purchase of shares held as
treasury shares - - - (29) (29) - (29)
Transactions with
non-controlling
interests - - 1 - 1 (1) -
Dividends paid - - (345) - (345) - (345)
---------------------------- ---------- --------- ---------- ---------- ------------- ---------------- --------
Transactions with owners 1 16 (327) (36) (346) (1) (347)
---------------------------- ---------- --------- ---------- ---------- ------------- ---------------- --------
At 30 September 2023 97 1,815 20,661 (18,435) 4,138 35 4,173
---------------------------- ---------- --------- ---------- ---------- ------------- ---------------- --------
Group statement of changes in equity
for the six months ended 30 September 2022
Called-up Share Retained Other Attributable Non-controlling Total
share premium earnings reserves to owners interests equity
capital account of Experian
plc
(Note (Note
20) 20)
US$m US$m US$m US$m US$m US$m US$m
---------------------------- ---------- --------- ---------- ---------- ------------- ---------------- --------
At 1 April 2022 96 1,780 20,157 (18,064) 3,969 38 4,007
Comprehensive income:
Profit for the period - - 306 - 306 1 307
Other comprehensive expense - - (69) (265) (334) (7) (341)
---------------------------- ---------- --------- ---------- ---------- ------------- ---------------- --------
Total comprehensive
income/(expense) - - 237 (265) (28) (6) (34)
---------------------------- ---------- --------- ---------- ---------- ------------- ---------------- --------
Transactions with owners:
Employee share incentive
plans:
- value of employee
services - - 63 - 63 - 63
- shares issued on vesting - 16 - - 16 - 16
- purchase of shares by
employee
trusts - - - (45) (45) - (45)
- other vesting of awards
and exercises of share
options - - (32) 46 14 - 14
- related tax charge - - (6) - (6) - (6)
- other payments - - (5) - (5) - (5)
Purchase of shares held as
treasury shares - - - (78) (78) - (78)
Dividends paid - - (327) - (327) - (327)
---------------------------- ---------- --------- ---------- ---------- ------------- ---------------- --------
Transactions with owners - 16 (307) (77) (368) - (368)
---------------------------- ---------- --------- ---------- ---------- ------------- ---------------- --------
At 30 September 2022 96 1,796 20,087 (18,406) 3,573 32 3,605
---------------------------- ---------- --------- ---------- ---------- ------------- ---------------- --------
Condensed interim financial statements
Group cash flow statement
for the six months ended 30 September 2023
Six months ended 30
September
----------------------
2023 2022
Notes US$m US$m
------------------------------------------------ ------ ---------- ----------
Cash flows from operating activities
Cash generated from operations 17(a) 973 1,024
Interest paid (90) (71)
Interest received 6 3
Dividends received from associates - 1
Tax paid (251) (227)
------------------------------------------------ ------ ---------- ----------
Net cash inflow from operating activities 638 730
------------------------------------------------ ------ ---------- ----------
Cash flows from investing activities
Purchase of other intangible assets 17(c) (292) (251)
Purchase of property, plant and equipment (18) (30)
Disposal of property, plant and equipment 1 1
Disposal of assets classified as held-for-sale 2 -
Purchase of other financial assets (5) (7)
Acquisition of subsidiaries, net of
cash acquired 17(d) (194) (267)
Disposal of operations 9(b) 5 (3)
Disposal of investment in associate 9(c) - 1
Net cash flows used in investing activities (501) (556)
------------------------------------------------ ------ ---------- ----------
Cash flows from financing activities
Cash inflow in respect of shares issued 17(e) 17 16
Cash outflow in respect of share purchases 17(e) (64) (129)
Other payments on vesting of share
awards (4) (5)
New borrowings 270 362
Repayment of borrowings (7) (1)
Principal lease payments (24) (30)
Net receipts/(payments) for cross-currency
swaps and foreign exchange contracts 12 (65)
Equity swap settlement (1) -
Dividends paid (345) (327)
------------------------------------------------ ------ ---------- ----------
Net cash flows used in financing activities (146) (179)
------------------------------------------------ ------ ---------- ----------
Net decrease in cash and cash equivalents (9) (5)
Cash and cash equivalents at 1 April 198 176
Exchange movements on cash and cash
equivalents 4 (25)
------
Cash and cash equivalents at 30 September 17(f) 193 146
------------------------------------------------ ------ ---------- ----------
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
1. Corporate information
Experian plc (the Company) is the ultimate parent company of the
Experian group of companies (Experian or the Group). Experian is
the leading global information services group.
The Company is incorporated and registered in Jersey as a public
company limited by shares and is resident in Ireland. The Company's
registered office is at 22 Grenville Street, St Helier, Jersey JE4
8PX, Channel Islands.
The Company's ordinary shares are traded on the London Stock
Exchange's Regulated Market and have a Premium Listing.
There has been no change in this information since the Annual
Report for the year ended 31 March 2023.
2. Basis of preparation
The condensed consolidated interim financial statements (the
condensed interim financial statements) are prepared on the going
concern basis and in accordance with International Accounting
Standard (IAS) 34 'Interim Financial Reporting' (IAS 34) as issued
by the International Accounting Standards Board (IASB) and as
adopted for use in the UK and the European Union (EU).
The condensed interim financial statements:
-- comprise the consolidated results of the Group for the six
months ended 30 September 2023 and 30 September 2022;
-- were approved for issue on 14 November 2023;
-- have not been audited but have been reviewed by the Company's
auditor with their report set out on pages 54 and 55; and
-- do not constitute the Group's statutory financial statements
but should be read in conjunction with the Group's statutory
financial statements for the year ended 31 March 2023.
The Group's statutory financial statements comprise the Annual
Report and audited financial statements which are prepared in
accordance with the Companies (Jersey) Law 1991 and both UK-adopted
International Accounting Standards (UK-IFRS) and International
Financial Reporting Standards (IFRS or IFRSs) as adopted for use in
the EU and IFRS Interpretations Committee interpretations (together
EU-IFRS). The financial statements also comply with IFRS as issued
by the IASB. UK-IFRS, EU-IFRS and IFRS as issued by the IASB all
differ in certain respects from each other, however, the
differences have no material impact for the periods presented.
The most recent such statutory financial statements, for the
year ended 31 March 2023, were approved by the directors on 16 May
2023 and subsequently delivered to the Jersey Registrar of
Companies. The auditor's report was unqualified and did not contain
a statement under Article 113B(3) or Article 113B(6) of the
Companies (Jersey) Law 1991. Copies of these financial statements
are available on the Company's website, at www.experianplc.com, and
from the Company Secretary at 2 Cumberland Place, Fenian Street,
Dublin 2, D02 HY05, Ireland.
The financial information for the year ended 31 March 2023
included in the condensed interim financial statements is not the
Company's statutory accounts for that financial year, but has been
extracted from the Group's statutory financial statements.
As required by the UK Financial Conduct Authority Disclosure
Guidance and Transparency Rules Sourcebook, these condensed interim
financial statements have been prepared applying the accounting
policies and presentation that were applied in the preparation of
the Group's statutory financial statements for the year ended 31
March 2023.
No significant events impacting the Group, other than those
disclosed in this document, have occurred between 1 October and 14
November 2023.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
2. Basis of preparation (continued)
Going concern
Our going concern assessment focuses on immediately available
sources of liquidity to fund our anticipated trading pattern, plus
anticipated acquisition spend, returns to shareholders and capital
investment, ensuring we always maintain a comfortable margin of
headroom in case of the unexpected. We also perform a review of
indicators typical of emerging going concern issues, and have
identified none.
The directors believe that the Group is well placed to manage
its financing and other business risks satisfactorily, and have a
reasonable expectation that the Group will have adequate resources
to continue in operational existence for at least 12 months from
the date of signing these condensed interim financial statements.
The directors therefore consider it appropriate to adopt the going
concern basis of accounting in preparing the condensed interim
financial statements. In reaching this conclusion, the directors
noted the Group's solid cash performance in the period and the
substantial undrawn committed bank borrowing facilities of US$2.3bn
(2022: US$2.4bn), which have an average remaining tenor of two
years (2022: three years).
3. Climate-related matters
As an information services business, our main environmental
impact is the carbon footprint generated from our operations and
value chain. The majority of our footprint is made up of greenhouse
gas emissions from purchased goods and services, upstream leased
assets including third-party data centres and capital goods, with
emissions from our direct operations making up approximately
5%.
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 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 current
climate change scenario analyses undertaken in line with Task Force
on Climate-related Financial Disclosures (TCFD) recommendations did
not identify any material impact on the Group's financial results
or on going concern or viability.
The following climate change considerations were made in
preparing these condensed interim financial statements:
-- The impact in the going concern period or on the viability of
the Group over the next three years.
-- The impact on factors such as residual values, useful lives
and depreciation methods that determine the carrying value of
non-current assets.
-- The impact on forecasts of cash flows used in impairment
assessments for the value-in-use of non-current assets including
goodwill (note 14).
-- The impact on forecasts of cash flows used in the fair value
measurement of assets and liabilities (note 25(d)).
-- The impact on post-employment benefit assets (note 16).
At present, there is no material impact of climate-related
matters on the Group's financial results or on going concern or
viability.
4. Accounting and other developments
There have been no accounting standards, amendments or
interpretations effective for the first time in these condensed
interim financial statements which have had a material impact on
the Group's consolidated results or financial position.
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) Pillar Two model rules. The Group has applied
the exception with immediate effect.
There are no other new standards, amendments to existing
standards or interpretations that are not yet effective that are
expected to have a material impact on the Group's financial
results. Accounting developments are routinely reviewed by the
Group and its financial reporting systems are adapted as
appropriate.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
5. Accounting policies, estimates and judgments
(a) Introduction
The preparation of the condensed interim financial statements
requires management to make estimates and assumptions that affect
the reported amount of revenues, expenses, assets and liabilities,
and the disclosure of contingent liabilities. If in the future such
estimates and assumptions, which are based on management's best
judgment at the date of these condensed interim financial
statements, deviate from actual circumstances, the original
estimates and assumptions will be modified as appropriate in the
period in which the circumstances change. There have been no
significant changes in the bases upon which estimates have been
determined, compared to those applied at 31 March 2023, and no
change in an estimate has had a material effect in the current
period.
Except, as described in note 4, the accounting policies applied
in these condensed interim financial statements are the same as
those applied in the Annual Report and Group financial statements
for the year ended 31 March 2023.
(b) Goodwill (note 14)
Goodwill held in the Group's balance sheet is tested annually
for impairment, or more frequently if there is an indication that
it may be impaired and details of the methodology used are set out
in the Group's statutory financial statements for the year ended 31
March 2023.
During the six months ended 30 September 2023 the annual tests
were performed with no impairment identified.
(c) Post-employment benefits (note 16)
We have updated the accounting valuation of our principal
defined benefit pension plan in light of changes in the key
actuarial assumptions, and this is recognised in the condensed
interim financial statements. The actuarial assumption with the
most significant impact at 30 September 2023 is the discount rate
of 5.7% (2022: 5.3%). The discount rate used in the year ended 31
March 2023 was 4.9%.
(d) Provisions and contingencies
A provision is recognised when the Group has a present
obligation as a result of a past event, it is probable that an
outflow of resources will be required to settle the obligation, and
a reliable estimate can be made of the amount of the
obligation.
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,
management takes into account the advice of legal counsel.
Restructuring provisions are recognised only when the Group has
approved a detailed formal plan that identifies the business or
part of the business concerned, and the restructuring has commenced
or its main features have been announced to those affected by it.
Future operating losses are not provided for.
In the case of pending and threatened litigation claims,
management forms a judgment as to the likelihood of ultimate
liability. No liability is recognised where the likelihood of any
loss arising is possible rather than probable.
(e) Revenue recognition ( note 7)
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.
-- 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;
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
5. Accounting policies, estimates and judgments (continued)
(e) Revenue recognition ( note 7) (continued)
- 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 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; and
- 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; and
- 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.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
5. Accounting policies, estimates and judgments (continued)
(e) Revenue recognition ( note 7) (continued)
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.
-- 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 include both deferred income balances and specific
reserves.
(f) Tax (note 11)
The tax charge recognised in the period is derived from the
estimated tax rate for the full year, taking account of one-off tax
charges and credits arising in the period and expected to arise in
the full year, and the tax effect of Exceptional items and other
adjustments made to derive Benchmark PBT.
(g) Contingent consideration (note 25 (c))
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 9(a)).
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 consideration received.
(h) Segment information policy and presentation principles
(notes 7 and 8)
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
We previously reported the 'All other segments' category as
EMEA/Asia Pacific in the condensed interim financial statements.
This 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 six months ended 30 September 2022
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 costs arising from finance,
treasury and other global functions.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
5. Accounting policies, estimates and judgments (continued)
(h) Segment information policy and presentation principles
(notes 7 and 8) (continued)
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, 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, 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 provided to the chief operating
decision maker is set out in note 7.
6. Use of non-GAAP measures in the condensed interim financial
statements
As detailed below, the Group has identified and defined certain
measures that it uses to understand and manage its performance. The
measures are not defined under IFRS and they may not be directly
comparable with other companies' adjusted performance measures.
These non-GAAP measures are not intended to be a substitute for any
IFRS measures of performance but management has included them as
they consider them to be key measures used for assessing the
underlying performance of our business.
(a) Benchmark profit before tax (Benchmark PBT) (note 7(a) and
note 8)
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 below. 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.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
6. Use of non-GAAP measures in the condensed interim financial
statements (continued)
(b) Benchmark earnings before interest and tax (Benchmark EBIT)
and margin (Benchmark EBIT margin) (note 7(a) and note 8 )
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) (Appendix 4)
Benchmark EBITDA is defined as Benchmark EBIT before the
depreciation and amortisation charged therein.
(d) Exited business activities (note 7(a) and note 8 )
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.
(e) Ongoing activities (note 7(a) and note 8 )
The results of businesses trading at 30 September 2023, 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 7(c))
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 7(c))
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
12)
Benchmark earnings comprises Benchmark PBT less attributable tax
and non-controlling interests. The attributable tax for this
purpose excludes significant tax credits and charges arising in the
year which, in view of their size or nature, are not comparable
with previous years, together with tax arising on Exceptional items
and on other adjustments made to derive Benchmark PBT. Benchmark
PBT less attributable tax is designated as Total Benchmark
earnings.
(j) Benchmark earnings per share (Benchmark EPS) (note
12(a))
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 11(b))
The Benchmark tax charge is the tax charge applicable to
Benchmark PBT. It differs from the tax charge by tax attributable
to Exceptional items and other adjustments made to derive Benchmark
PBT, and exceptional tax charges. A reconciliation is provided in
note 11(b) to these condensed interim financial statements. The
Benchmark effective rate of tax is calculated by dividing the
Benchmark tax charge by Benchmark PBT.
(l) Exceptional items (note 9(a))
The separate reporting of Exceptional items gives an indication
of the Group's underlying performance. Exceptional items include
those arising from the profit or loss on disposal of businesses,
closure costs of significant operations (including onerous global
support costs associated with these operations), costs of
significant restructuring programmes and other financially
significant one-off items. All other restructuring costs are
charged against Benchmark EBIT, in the segments in which they are
incurred.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
6. Use of non-GAAP measures in the condensed interim financial
statements (continued)
(m) Benchmark operating and Benchmark free cash flow (note 17(g)
and Appendix 4 )
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.
(n) Cash flow conversion (note 17(g))
Cash flow conversion is Benchmark operating cash flow expressed
as a percentage of Benchmark EBIT.
(o) Net debt and Net funding (note 18)
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.
(p) Return on capital employed (ROCE) (note 7(e)(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
to add or deduct the net tax liability or asset and to add Net
debt.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
7. Segment information
(a) Income statement
North Latin UK and EMEA Total Central Total
America America Ireland and Asia operating Activities Group
Pacific segments
Six months ended 30 September US$m US$m US$m US$m US$m US$m US$m
2023
--------------------------------- --------- --------- --------- ---------- ----------- ------------ ---------
Revenue from external customers
Ongoing activities 2,288 514 397 215 3,414 - 3,414
Exited business activities - 2 - 8 10 - 10
--------------------------------- --------- --------- --------- ---------- ----------- ------------ ---------
Total 2,288 516 397 223 3,424 - 3,424
--------------------------------- --------- --------- --------- ---------- ----------- ------------ ---------
Reconciliation from Benchmark
EBIT to
profit/(loss) before tax
Benchmark EBIT
Ongoing activities before
transfer pricing and other
adjustments 791 136 71 (4) 994 (65) 929
Transfer pricing and other
adjustments (16) 1 6 8 (1) 1 -
--------------------------------- --------- --------- --------- ---------- ----------- ------------ ---------
Ongoing activities 775 137 77 4 993 (64) 929
Exited business activities - 1 1 (3) (1) - (1)
--------------------------------- --------- --------- --------- ---------- ----------- ------------ ---------
Total 775 138 78 1 992 (64) 928
Net interest (expense)/income
included in Benchmark PBT
(note 10(b)) (2) (1) 1 - (2) (66) (68)
--------------------------------- --------- --------- --------- ---------- ----------- ------------ ---------
Benchmark PBT 773 137 79 1 990 (130) 860
Exceptional items (note 9(a)) (1) - - 5 4 - 4
Amortisation of acquisition
intangibles (55) (10) (3) (27) (95) - (95)
Acquisition and disposal
expenses 4 (8) (5) (4) (13) - (13)
Adjustment to the fair value
of contingent consideration (21) (3) - - (24) - (24)
Financing fair value
remeasurements
(note 10(c)) - - - - - 31 31
--------------------------------- --------- --------- --------- ---------- ----------- ------------ ---------
Profit/(loss) before tax 700 116 71 (25) 862 (99) 763
--------------------------------- --------- --------- --------- ---------- ----------- ------------ ---------
North Latin UK and EMEA Total Central Total
America America Ireland and Asia operating Activities Group
Pacific segments
Six months ended 30 September US$m US$m US$m US$m US$m US$m US$m
2022(1)
--------------------------------- --------- --------- --------- ---------- ----------- ------------ ---------
Revenue from external customers
Ongoing activities 2,204 441 378 201 3,224 - 3,224
Exited business activities - 8 - 15 23 - 23
--------------------------------- --------- --------- --------- ---------- ----------- ------------ ---------
Total 2,204 449 378 216 3,247 - 3,247
Reconciliation from Benchmark
EBIT to profit/(loss) before
tax
Benchmark EBIT
Ongoing activities before
transfer pricing and other
adjustments 761 116 68 (11) 934 (57) 877
Transfer pricing and other
adjustments (16) 1 6 8 (1) 1 -
--------------------------------- --------- --------- --------- ---------- ----------- ------------ ---------
Ongoing activities 745 117 74 (3) 933 (56) 877
Exited business activities - 5 - (9) (4) - (4)
--------------------------------- --------- --------- --------- ---------- ----------- ------------ ---------
Total 745 122 74 (12) 929 (56) 873
Net interest (expense)/income
included in Benchmark PBT
(note 10(b)) (2) (1) 1 (1) (3) (59) (62)
--------------------------------- --------- --------- --------- ---------- ----------- ------------ ---------
Benchmark PBT 743 121 75 (13) 926 (115) 811
Exceptional items (note 9(a)) 4 - - (31) (27) - (27)
Impairment of goodwill (note14) - - - (152) (152) - (152)
Amortisation of acquisition
intangibles (62) (12) (4) (15) (93) - (93)
Acquisition and disposal
expenses (10) (3) (3) (5) (21) - (21)
Adjustment to the fair value
of contingent consideration (56) (10) - - (66) - (66)
Interest on uncertain tax
provisions (note 10(a)) - - - - - 6 6
Financing fair value
remeasurements
(note 10(c)) - - - - - 59 59
--------------------------------- --------- --------- --------- ---------- ----------- ------------ ---------
Profit/(loss) before tax 619 96 68 (216) 567 (50) 517
--------------------------------- --------- --------- --------- ---------- ----------- ------------ ---------
1. Revenue of US$9m and Benchmark EBIT of US$4m for the six
months ended 30 September 2022 have been re-presented for the
reclassification to exited business activities of certain B2B
businesses.
Additional information by operating segment, including that on
total and organic growth at constant exchange rates is provided
within pages 3 to 11.
(b) Revenue by business segment
The additional analysis of revenue from external customers
provided to the chief operating decision-maker and accordingly
reportable under IFRS 8 is given within note 8. This is
supplemented by voluntary disclosure of the profitability of groups
of service lines. For ease of reference, we continue to use the
term 'business segments' when discussing the results of groups of
service lines.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
7. Segment information (continued)
(c) Reconciliation of revenue from ongoing activities
North Latin UK and EMEA Total
America America Ireland and Asia ongoing
Pacific activities
US$m US$m US$m US$m US$m
--------------------------------------------- --------- --------- --------- ---------- ------------
Revenue for the six months ended 30
September 2022(1) 2,204 441 378 201 3,224
Adjustment to constant exchange rates - (9) (3) (2) (14)
--------------------------------------------- --------- --------- --------- ---------- ------------
Revenue at constant rates for the six
months ended 30 September 2022 2,204 432 375 199 3,210
Organic revenue growth 84 49 4 16 153
Revenue from acquisitions - 9 1 1 11
Revenue at constant rates for the six
months ended 30 September 2023 2,288 490 380 216 3,374
Adjustment to actual exchange rates - 24 17 (1) 40
Revenue for the six months ended 30
September 2023 2,288 514 397 215 3,414
--------------------------------------------- --------- --------- --------- ---------- ------------
Organic revenue growth at constant exchange
rates 4% 11% 1% 8% 5%
Revenue growth at constant exchange
rates 4% 13% 1% 9% 5%
--------------------------------------------- --------- --------- --------- ---------- ------------
1. Revenue for the six months ended 30 September 2022 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 6 in determining organic and total revenue growth
at constant exchange rates.
(d) Disaggregation of revenue from contracts with customers
North Latin UK and EMEA Total
America America Ireland and Asia operating
Pacific segments
Six months ended 30 September 2023 US$m US$m US$m US$m US$m
--------------------------------------- --------- --------- --------- ---------- -----------
Revenue from external customers
Data 1,101 320 201 152 1,774
Decisioning 427 97 110 63 697
--------------------------------------- --------- --------- --------- ---------- -----------
Business-to-Business 1,528 417 311 215 2,471
Consumer Services 760 97 86 - 943
Total ongoing activities 2,288 514 397 215 3,414
--------------------------------------- --------- --------- --------- ---------- -----------
North Latin UK and EMEA Total
America America Ireland and Asia operating
Pacific segments
Six months ended 30 September 2022(1) US$m US$m US$m US$m US$m
--------------------------------------- --------- --------- --------- ---------- -----------
Revenue from external customers
Data 1,071 288 186 148 1,693
Decisioning 403 83 105 53 644
--------------------------------------- --------- --------- --------- ---------- -----------
Business-to-Business 1,474 371 291 201 2,337
Consumer Services 730 70 87 - 887
Total ongoing activities 2,204 441 378 201 3,224
--------------------------------------- --------- --------- --------- ---------- -----------
1. Revenue for the six months ended 30 September 2022 has been
re-presented for the reclassification to exited business activities
of certain B2B businesses, and includes Latin America and EMEA and
Asia Pacific Data revenue of US$8m and US$1m respectively.
Total revenue comprises revenue from ongoing activities as well
as revenue from exited business activities. Revenue in respect of
exited business activities of US$10m (2022: US$23m) comprises Latin
America Data revenue of US$2m (2022: US$8m) and EMEA and Asia
Pacific Data and Decisioning revenue of US$1m (2022: US$5m) and
US$7m (2022: US$10m) respectively.
Data revenue is predominantly transactional with a portion from
licence fees.
Decisioning revenue is derived from:
-- software and system sales, and includes recurring licence
fees, consultancy and implementation fees, and transactional
charges;
-- credit score fees which are primarily transactional; and
-- analytics income comprising a mix of consultancy and
professional fees as well as transactional revenue.
Consumer Services revenue primarily comprises monthly
subscription and one-off fees, and referral fees for credit
products and white-label partnerships.
The timing of revenue recognition in relation to these revenue
streams is discussed in note 5(e).
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
7. Segment information (continued)
(e) Balance sheet
(i) Net assets/(liabilities) North Latin UK and EMEA Total Central Total
America America Ireland and Asia operating Activities Group
Pacific segments and other
At 30 September 2023 US$m US$m US$m US$m US$m US$m US$m
------------------------------------ --------- --------- --------- ---------- ----------- ------------ --------
Goodwill 3,662 874 718 473 5,727 - 5,727
Investments in associates 4 - 9 - 13 - 13
Right-of-use assets 63 15 36 19 133 5 138
Assets classified as held-for-sale - - - - - 10 10
Other assets 2,467 812 533 469 4,281 1,005 5,286
------------------------------------ --------- --------- --------- ---------- ----------- ------------ --------
Total assets 6,196 1,701 1,296 961 10,154 1,020 11,174
------------------------------------ --------- --------- --------- ---------- ----------- ------------ --------
Lease obligations (79) (18) (36) (20) (153) (4) (157)
Other liabilities (1,218) (401) (256) (168) (2,043) (4,801) (6,844)
------------------------------------ --------- --------- --------- ---------- ----------- ------------ --------
Total liabilities (1,297) (419) (292) (188) (2,196) (4,805) (7,001)
------------------------------------ --------- --------- --------- ---------- ----------- ------------ --------
Net assets/(liabilities) 4,899 1,282 1,004 773 7,958 (3,785) 4,173
------------------------------------ --------- --------- --------- ---------- ----------- ------------ --------
North Latin UK and EMEA Total Central Total
America America Ireland and Asia operating Activities Group
Pacific segments and other
At 30 September 2022 US$m US$m US$m US$m US$m US$m US$m
------------------------------------ --------- --------- --------- ---------- ----------- ------------ --------
Goodwill 3,660 667 638 483 5,448 - 5,448
Investments in associates 4 - - - 4 - 4
Right-of-use assets 74 14 16 21 125 5 130
Assets classified as held-for-sale - - 24 1 25 10 35
Other assets 2,332 592 422 480 3,826 978 4,804
------------------------------------ --------- --------- --------- ---------- ----------- ------------ --------
Total assets 6,070 1,273 1,100 985 9,428 993 10,421
------------------------------------ --------- --------- --------- ---------- ----------- ------------ --------
Lease obligations (93) (16) (16) (23) (148) (3) (151)
Liabilities classified
as held-for-sale - - - (1) (1) - (1)
Other liabilities (1,193) (292) (235) (281) (2,001) (4,663) (6,664)
------------------------------------ --------- --------- --------- ---------- ----------- ------------ --------
Total liabilities (1,286) (308) (251) (305) (2,150) (4,666) (6,816)
------------------------------------ --------- --------- --------- ---------- ----------- ------------ --------
Net assets/(liabilities) 4,784 965 849 680 7,278 (3,673) 3,605
------------------------------------ --------- --------- --------- ---------- ----------- ------------ --------
(ii) Central Activities and other
30 September
-------------------------------------------------------------------------------------
2023 2022
---------------------------------------- -----------------------------------------
Assets Liabilities Net assets/ Assets Liabilities Net assets/
(liabilities) (liabilities)
US$m US$m US$m US$m US$m US$m
Central Activities 733 (170) 563 776 (108) 668
Net debt(1) 197 (4,344) (4,147) 150 (4,150) (4,000)
Tax (current and deferred) 90 (291) (201) 67 (408) (341)
---------------------------- -------- ------------ ---------------- -------- ------------- ----------------
1,020 (4,805) (3,785) 993 (4,666) (3,673)
---------------------------- -------- ------------ ---------------- -------- ------------- ----------------
1. Total Net debt comprises Net debt included within Central
Activities plus lease obligations included in operating segments of
US$153m (2022: US$148m).
(iii) Capital employed
30 September
--------------------
2023 2022
US$m US$m
------------------------------------------------ --------- -----------
North America 4,899 4,784
Latin America 1,282 965
UK and Ireland 1,004 849
EMEA and Asia Pacific 773 680
------------------------------------------------ --------- -----------
Total operating segments 7,958 7,278
Central Activities 563 668
Add: Lease obligations in operating segments 153 148
Less: Right-of-use assets (138) (130)
Less: Non-controlling interests (35) (32)
------------------------------------------------ --------- -----------
Capital employed attributable to owners 8,501 7,932
------------------------------------------------ --------- -----------
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
8. Information on business segments (including non-GAAP
disclosures)
Business-to- Consumer Total Central Total
Business Services business Activities Group
segments
Six months ended 30 September US$m US$m US$m US$m US$m
2023
---------------------------------------- ------------- ---------- ---------- ------------ -------
Revenue from external customers
Ongoing activities 2,471 943 3,414 - 3,414
Exited business activities 10 - 10 - 10
---------------------------------------- ------------- ---------- ---------- ------------ -------
Total 2,481 943 3,424 - 3,424
---------------------------------------- ------------- ---------- ---------- ------------ -------
Reconciliation from Benchmark
EBIT to
profit/(loss) before tax
Benchmark EBIT
Ongoing activities before transfer
pricing and other adjustments 750 244 994 (65) 929
Transfer pricing and other adjustments 4 (5) (1) 1 -
---------------------------------------- ------------- ---------- ---------- ------------ -------
Ongoing activities 754 239 993 (64) 929
Exited business activities (2) 1 (1) - (1)
---------------------------------------- ------------- ---------- ---------- ------------ -------
Total 752 240 992 (64) 928
Net interest expense included
in Benchmark PBT (note 10(b)) (1) (1) (2) (66) (68)
---------------------------------------- ------------- ---------- ---------- ------------ -------
Benchmark PBT 751 239 990 (130) 860
Exceptional items (note 9(a)) 4 - 4 - 4
Amortisation of acquisition
intangibles (79) (16) (95) - (95)
Acquisition and disposal expenses (8) (5) (13) - (13)
Adjustment to the fair value
of contingent consideration (24) - (24) - (24)
Financing fair value remeasurements
(note 10(c)) - - - 31 31
Profit/(loss) before tax 644 218 862 (99) 763
---------------------------------------- ------------- ---------- ---------- ------------ -------
Consumer Total Central Total
Business-to- Services business Activities Group
Business segments
Six months ended 30 September US$m US$m US$m US$m US$m
2022(1)
---------------------------------------- ------------- ---------- ---------- ------------ -------
Revenue from external customers
Ongoing activities 2,337 887 3,224 - 3,224
Exited business activities 23 - 23 - 23
---------------------------------------- ------------- ---------- ---------- ------------ -------
Total 2,360 887 3,247 - 3,247
---------------------------------------- -------------
Reconciliation from Benchmark
EBIT to
profit/(loss) before tax
Benchmark EBIT
Ongoing activities before transfer
pricing and other adjustments 732 202 934 (57) 877
Transfer pricing and other adjustments 4 (5) (1) 1 -
---------------------------------------- ------------- ---------- ---------- ------------ -------
Ongoing activities 736 197 933 (56) 877
Exited business activities (4) - (4) - (4)
---------------------------------------- ------------- ---------- ---------- ------------ -------
Total 732 197 929 (56) 873
Net interest expense included
in Benchmark PBT (note 10(b)) (2) (1) (3) (59) (62)
---------------------------------------- ------------- ---------- ---------- ------------ -------
Benchmark PBT 730 196 926 (115) 811
Exceptional items (note 9(a)) (27) - (27) - (27)
Impairment of goodwill (note
14) (152) - (152) - (152)
Amortisation of acquisition
intangibles (78) (15) (93) - (93)
Acquisition and disposal expenses (10) (11) (21) - (21)
Adjustment to the fair value
of contingent consideration (66) - (66) - (66)
Interest on uncertain tax provisions
(note 10(a)) - - - 6 6
Financing fair value remeasurements
(note 10(c)) - - - 59 59
Profit/(loss) before tax 397 170 567 (50) 517
---------------------------------------- ------------- ---------- ---------- ------------ -------
1. Revenue of US$9m and Benchmark EBIT of US$4m for the six
months ended 30 September 2022 have been re-presented for the
reclassification to exited business activities of certain B2B
businesses.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
9. Exceptional items and other adjustments made to derive
Benchmark PBT
(a) Net charge for Exceptional items and other adjustments made
to derive Benchmark PBT
Six months ended 30
September
----------------------
2023 2022
US$m US$m
------------------------------------------------- ---------- ----------
Exceptional items:
(Profit)/loss on disposal of operations (note
9(b)) (5) 3
Profit on disposal of associate (note 9(c)) - (1)
Restructuring costs (note 9(d)) - 20
Onerous global support costs (note 9(e)) - 8
Legal provisions movements (note 9(f)) 1 (3)
-------------------------------------------------- ---------- ----------
Net (credit)/charge for Exceptional items (4) 27
-------------------------------------------------- ---------- ----------
Other adjustments made to derive Benchmark
PBT:
Amortisation of acquisition intangibles 95 93
Impairment of goodwill (note 14) - 152
Acquisition and disposal expenses 13 21
Adjustment to the fair value of contingent
consideration (note 25(c)) 24 66
Interest on uncertain tax provisions (note
10(a)) - (6)
Financing fair value remeasurements (note
10(c)) (31) (59)
-------------------------------------------------- ---------- ----------
Net charge for other adjustments made to derive
Benchmark PBT 101 267
-------------------------------------------------- ---------- ----------
Net charge for Exceptional items and other
adjustments made to derive Benchmark PBT 97 294
-------------------------------------------------- ---------- ----------
By income statement caption:
Within total operating expenses 128 359
Within operating profit 128 359
Within finance expense (31) (65)
-------------------------------------------------- ---------- ----------
Net charge for Exceptional items and other
adjustments made to derive Benchmark PBT 97 294
-------------------------------------------------- ---------- ----------
(b) (Profit)/loss on disposal of operations
The profit in the period of US$5m on the disposal of operations
comprises a gain on the sale of interests in a number of small
subsidiary undertakings in EMEA and Asia Pacific, two of which were
classified as held-for-sale. Costs of US$3m were incurred in the
six months ended 30 September 2022 following the cessation of our
activities in Russia.
(c) Profit on disposal of associate
On 18 November 2020, the Group disposed of its 18.6% interest in
Finicity Corporation. During the six months ended 30 September 2022
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$20m associated with a strategic review and
restructuring, primarily in the EMEA and Asia Pacific regions, were
recognised in the six months ended 30 September 2022. The charge
included a loss on disposal and asset write-downs and impairments
of US$7m, and US$11m was labour related. The associated cash
outflow was US$9m.
(e) Onerous global support costs
The charge incurred in the six months ended 30 September 2022
comprised costs that were directly attributable to exited
businesses or incurred solely to support sub-scale, multi-country
markets.
(f) Legal provisions movements
Movements have occurred in provisions held for a number of
historical legal claims, and reflects legal costs in North America
of US$1m (2022: US$25m) , offset by insurance recoveries of US$nil
(2022: US$28m) .
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
10. Net finance expense/(income)
(a) Net finance expense/(income) included in profit before
tax
Six months ended 30
September
----------------------
2023 2022
US$m US$m
---------------------------------------------------------- ------ --------------
Interest income:
Bank deposits, short-term investments and
loan notes (6) (3)
Interest on pension plan assets (note 16(b)) (3) (2)
----------------------------------------------------------- ------ --------------
Interest income (9) (5)
Finance expense:
Interest on borrowings and derivatives 73 63
Interest on leases 4 4
Credit in respect of financing fair value remeasurements
(note 10(c)) (31) (59)
Interest on uncertain tax provisions - (6)
Finance expense 46 2
----------------------------------------------------------- ------ --------------
Net finance expense/(income) included
in profit before tax 37 (3)
----------------------------------------------------------- ------ --------------
(b) Net interest expense included in Benchmark PBT
Six months ended 30
September
----------------------
2023 2022
US$m US$m
-------------------------------------------- ---------- ----------
Interest income (9) (5)
Interest expense 77 67
--------------------------------------------- ---------- ----------
Net interest expense included in Benchmark
PBT 68 62
--------------------------------------------- ---------- ----------
(c) Analysis of credit in respect of financing fair value
remeasurements
Six months ended 30
September
2023 2022
US$m US$m
----------------------------------------------- ---------- ----------
Foreign exchange losses on Brazilian real
intra-Group funding(1) 2 30
Foreign currency loss on cross currency-swaps
designated as a
cashflow hedge - transfer from OCI 8 81
Other financing fair value gains(2) (41) (170)
------------------------------------------------- ---------- ----------
Credit in respect of financing fair value
remeasurements (31) (59)
------------------------------------------------- ---------- ----------
1. A Group company whose functional currency is not the
Brazilian real provides Brazilian real intra-Group funding to
Serasa S.A.. Foreign exchange gains or losses on this funding are
recognised in the Group income statement.
2. Other financing fair value gains primarily relate to our
portfolio of interest rate swaps used for managing the proportion
of fixed rate debt, as well as US$8m (2022: US$81m) of fair value
gains on borrowings which are in a cashflow hedge relationship.
11. Tax
(a) Tax charge and effective rate of tax
Six months ended 30
September
----------------------
2023 2022
US$m US$m
---------------------------------------------- ---------- ----------
Tax charge(1) 191 210
Profit before tax 763 517
---------------------------------------------- ---------- ----------
Effective rate of tax based on profit before
tax 25.0% 40.6%
---------------------------------------------- ---------- ----------
1. The tax charge comprises a current tax charge of US$267m
(2022: US$253m) and a deferred tax credit of US$76m (2022:
US$43m).
Tax charged in the six months ended 30 September 2023 has been
calculated by applying the effective rate of tax which is expected
to apply to the Group for the year ending 31 March 2024 using rates
substantively enacted by 30 September 2023 as required by IAS 34
'Interim Financial Reporting'.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
11. Tax (continued)
(a) Tax charge and effective rate of tax (continued)
The decrease in the effective rate of tax from the comparative
period is largely attributable to the absence of a non-deductible
goodwill impairment charge and a reduction in other non-deductible
expenses.
The Group's tax charge will continue to be influenced by the
profile of profits earned in different countries in which the
Group's subsidiaries operate, in particular our material markets,
being North America, Brazil and the UK. Tax reform continues in
2023 and is expected in future years, driven by the OECD's project
to address the tax challenges arising from the digitalisation of
the economy including the enactment of global minimum tax
legislation in the UK, and Ireland's announcement to implement
legislation in line with the OECD timetable. We continue to analyse
the implications for the Group from these model rules. This may
result in significant changes to established tax principles and an
increase in tax authority disputes. In turn, this could adversely
affect Experian's effective tax rate or could result in higher cash
tax liabilities.
(b) Reconciliation of the tax charge to the Benchmark tax
charge
Six months ended 30
September
2023 2022
US$m US$m
---------------------------------------------------- ----------- ---------
Tax charge 191 210
Tax relief on adjustments made to derive Benchmark
PBT 25 1
Benchmark tax charge 216 211
---------------------------------------------------- ----------- ---------
Benchmark PBT 860 811
---------------------------------------------------- ----------- ---------
Benchmark tax rate 25.1% 26.0%
---------------------------------------------------- -----------
12. Earnings per share disclosures
(a) Earnings per share (EPS)
Six months ended 30 September
Basic Diluted
2023 2022 2023 2022
US cents US cents US cents US cents
EPS 62.3 33.5 61.9 33.3
Add: Exceptional items and other adjustments
made to derive Benchmark PBT, net
of related tax 8.1 31.9 8.1 31.8
Benchmark EPS (non-GAAP measure) 70.4 65.4 70.0 65.1
(b) Analysis of earnings
Six months ended
30 September
2023 2022
US$m US$m
Profit for the period attributable to owners of
Experian plc 569 306
Add: Exceptional items and other adjustments
made to derive Benchmark PBT, net of related
tax, attributable to owners of Experian plc 74 292
Benchmark earnings attributable to owners of Experian
plc (non-GAAP measure) 643 598
Benchmark earnings attributable to non-controlling
interests (non-GAAP measure) 1 2
Total Benchmark earnings (non-GAAP measure) 644 600
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
12. Earnings per share disclosures (continued)
(c) Reconciliation of Total Benchmark earnings to profit for the
period
Six months ended
30 September
2023 2022
US$m US$m
Total Benchmark earnings (non-GAAP measure) 644 600
Exceptional items and other adjustments made to
derive Benchmark PBT, net of related tax:
* attributable to owners of Experian plc (74) (292)
* attributable to non-controlling interests 2 (1)
Profit for the period 572 307
(d) Weighted average number of ordinary shares
Six months ended
30 September
2023 2022
million million
Weighted average number of ordinary shares 914 914
Add: dilutive effect of share incentive
awards, options and share purchases 5 5
--------
Diluted weighted average number of ordinary
shares 919 919
--------
13. Dividends on ordinary shares
Six months ended 30 September
2023 2022
US cents US cents
per share US$m per share US$m
Amounts recognised and paid:
Second interim - paid in July
2023 (2022: July) 37.75 345 35.75 327
--------
First interim - announced 18.00 164 17.00 155
--------
A first interim dividend of 18.0 US cents per ordinary share
will be paid on 2 February 2024 to shareholders on the register at
the close of business on 5 January 2024 and is not included as a
liability in these condensed interim financial statements. The
first interim dividend for the six months ended 30 September 2022
was 17.0 US cents per ordinary share and the total dividend per
ordinary share for the year ended 31 March 2023 was 54.75 US cents,
with a total full year cost of US$500m. Further administrative
information on dividends is given in the Shareholder information
section on pages 56 and 57. Dividend amounts are quoted gross.
14. Goodwill
(a) Movements in goodwill
Six months ended 30
September
2023 2022
US$m US$m
--------
Cost
At 1 April 5,821 5,790
Differences on exchange (20) (298)
Additions through business combinations (note
22(a)) 167 157
--------
At 30 September 5,968 5,649
--------
Accumulated impairment
At 1 April 246 53
Differences on exchange (5) (4)
Impairment charge (note 14(d)) - 152
--------
At 30 September 241 201
--------
Net book amount at 1 April 5,575 5,737
Net book amount at 30 September 5,727 5,448
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
14. Goodwill (continued)
(b) Goodwill by cash-generating unit (CGU)
30 September
2023 2022
US$m US$m
--------
North America 3,662 3,660
Latin America 874 667
UK and Ireland 718 638
EMEA and Asia Pacific 473 -
EMEA - 405
Asia Pacific - 78
--------
5,727 5,448
--------
As a result of the restructuring activities undertaken across
the EMEA and Asia Pacific regions during FY23, we have reviewed the
appropriateness of the groups of cash-generating units identified
for the purpose of goodwill impairment testing, in line with IAS 36
'Impairment of Assets'. It has been concluded that neither EMEA nor
Asia Pacific represent separately identifiable groups of CGUs, due
to the integration and alignment of the two regions under a single
management team, and that the 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 GCUs and Asia Pacific group of CGUs into the opening
carrying value of the EMEA and Asia Pacific group of CGUs, as it
was determined this approach best reflects the goodwill associated
with the reorganised units.
(c) Key assumptions for value-in-use calculations by CGU
Six months ended Year ended
30 September 2023 31 March 2023(1)
Long-term Long-term
Discount growth Discount growth
rate rate rate 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 - -
EMEA - - 12.6 3.9
Asia Pacific - - 11.2 5.3
1. The comparatives presented are for the most recent
value-in-use calculation performed for each CGU in the year ended
31 March 2023.
As indicated in note 6(a) of the Group's statutory financial
statements for the year ended 31 March 2023, value-in-use
calculations are underpinned by financial budgets, 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. These were expected to improve
modestly throughout the period in the mature CGUs and improve
annually by a mid-single-digit amount in EMEA and Asia Pacific;
and
-- forecast Benchmark operating cash flow conversion rates were
based on historical conversion rates achieved and performance
expectations in the respective CGUs, with long-term conversion
rates of 93% used in EMEA and Asia Pacific.
Further details of the principles used in determining the basis
of allocation by CGU and annual impairment testing are given in
note 6(a) of the Group's statutory financial statements for the
year ended 31 March 2023.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
14. Goodwill (continued)
(d) Results of annual impairment review as at 30 September
2023
The recoverable amount of the EMEA and Asia Pacific CGU exceeded
its carrying value by US$137m. Any decline in the estimated
value-in-use in excess of that amount would result in the
recognition of an impairment charge. The sensitivities, which
result in the recoverable amount being equal to the carrying value,
are summarised as follows:
-- an absolute increase of 1.4 percentage points in the discount rate, from 13.8% to 15.2%; or
-- an absolute reduction of 2.0 percentage points in the
long-term growth rate, from growth of 4.1% to growth of 2.1%;
or
-- a reduction of 3.1 percentage points in the forecast FY29
profit margin, from 24.1% to 21.0%. A reduction in the annual
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 profit.
The recoverable amount of all other CGUs exceeded their carrying
value, on the basis of the assumptions set out in the table in note
14(c) and any reasonably possible changes thereof.
In the six months ended 30 September 2022, the carrying value of
the EMEA CGU was reduced to its recoverable amount through
recognition of an impairment charge of US$152m, as a result of
increased discount rate assumptions used in the value-in-use
calculation, driven by increases in underlying risk-free interest
rates, combined with ongoing challenging market conditions. The
full-year FY23 goodwill impairment charge for the EMEA CGU was
US$179m. Charges were recognised within total operating expenses in
the Group income statement.
The impairment review considered the potential impact of climate
change by considering the results of the scenario analysis
performed consistent with the recommendations of the TCFD. There
was no impact on the reported amounts of goodwill as a result of
this review.
15. Capital expenditure, disposals and capital commitments
(a) Additions
Six months ended 30
September
2023 2022
US$m US$m
---------- ----------
Capital expenditure 310 281
Right-of-use-assets 39 13
---------- ----------
349 294
---------- ----------
(b) Disposal of other intangible assets and property, plant and
equipment
The book value of other intangible assets and property, plant
and equipment disposed of in the six months ended 30 September 2023
was US$5m (2022: US$10m), of which US$4m (2022: US$2m) related to
right-of-use assets. There was no profit or loss on disposal in the
period. In the six months ended 30 September 2022 the loss on
disposal of US$7m was reported within non-benchmark items in the
Group income statement, as it related to software assets developed
for markets in which we no longer operate as a result of
restructuring activity (note 9(d)).
(c) Capital commitments 30 September
2023 2022
US$m US$m
Capital expenditure for which contracts have
been placed:
Other intangible assets 50 55
Property, plant and equipment 9 10
59 65
Capital commitments at 30 September 2023 included commitments of
US$43m not expected to be incurred before 30 September 2024.
Capital commitments at 30 September 2022 included commitments of
US$46m not then expected to be incurred before 30 September 2023.
Obligations of US$5m (2022: US$nil) were committed to at 30
September 2023 in respect of leases for which the term had not yet
started.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
16. Post-employment benefit assets and obligations - defined
benefit plans
(a) Amounts recognised in the Group balance sheet
30 September
2023 2022
US$m US$m
-------
Retirement benefit assets/(obligations) - funded
defined benefit plans:
Fair value of funded plans' assets 778 753
Present value of funded plans' obligations (627) (609)
Assets in the Group balance sheet for funded
defined benefit pensions 151 144
Obligations for unfunded post-employment benefits:
Present value of defined benefit pensions - unfunded
plans (33) (34)
Present value of post-employment medical benefits (2) (3)
-------
Liabilities in the Group balance sheet (35) (37)
-------
Net post-employment benefit assets 116 107
-------
The net post-employment benefit assets of US$135m at 1 April
2023 (1 April 2022: US$164m) comprised assets of US$174m (1 April
2022: US$216m) in respect of funded plans, and obligations of
US$39m (1 April 2022: US$52m) in respect of unfunded plans. The
post-employment benefit assets and obligations are denominated
primarily in pounds sterling.
The funded defined benefit pension plans hold a range of assets
including equities, index-linked gilts, global corporate bonds,
secured credit, and a Liability Driven Investment strategy which is
used to hedge against interest fluctuations and inflation. The
primary drivers impacting the fair value of the plans' funded
assets and obligations are changes to pound sterling interest rates
and the retranslation of assets and obligations into US
dollars.
(b) Movements in net post-employment benefit assets recognised
in the Group balance sheet
Six months ended 30
September
2023 2022
US$m US$m
At 1 April 135 164
Charge to the Group income statement within
total operating expenses (1) (1)
Credit to the Group income statement within
interest income 3 2
Remeasurements recognised within Other comprehensive
income (22) (35)
Differences on exchange (1) (24)
Contributions paid by the Group 2 1
At 30 September 116 107
The Experian Pension Scheme was closed to the future accrual of
new benefits from 1 April 2022, contributions paid relate to
unfunded post-employment benefits. The remeasurement recognised in
OCI relates to defined benefit pension plans.
(c) Actuarial assumptions 30 September
2023 2022
% p.a. % p.a.
Discount rate 5.7 5.3
Inflation rate - based on the UK Retail Prices
Index (RPI) 3.4 3.7
Inflation rate - based on the UK Consumer Prices
Index (CPI) 2.9 3.2
Increase for pensions in payment - element
based on the RPI (where cap is 5%) 3.1 3.4
Increase for pensions in payment - element
based on the CPI (where cap is 2.5%) 1.9 2.0
Increase for pensions in payment - element
based on the CPI (where cap is 3%) 2.2 2.3
Increase for pensions in deferment 2.9 3.2
Inflation in medical costs 6.3 6.8
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
16. Post-employment benefit assets and obligations - defined
benefit plans (continued)
(c) Actuarial assumptions (continued)
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 on
high-quality corporate bonds of a currency and term appropriate to
the defined benefit obligations, and has increased by 80 basis
points in the six month period from 31 March 2023.
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. The updated model has
subsequently been published, and the mortality assumptions at 30
September 2023 have been updated accordingly.
The Group has also considered the potential impact of climate
change and, at the present time, we do not believe 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.
The other demographic assumptions at 30 September 2023 remain
unchanged from those used at 31 March 2023 and disclosed in the
Group's statutory financial statements for the year then ended.
17. Notes to the Group cash flow statement
(a) Cash generated from operations
Six months ended 30 September
2023 2022
US$m US$m
Profit before tax 763 517
Share of post-tax profit of associates (1) (1)
Net finance expense/(income) 37 (3)
Operating profit 799 513
(Profit)/loss on disposal of operations
(note 9(b)) (5) 3
Profit on disposal of associate (note
9(c)) - (1)
Impairment of goodwill (note 14) - 152
Amortisation and depreciation(1) 347 333
Charge in respect of share incentive
plans 57 63
Increase in working capital (note
17(b)) (194) (97)
Acquisition expenses - difference between
income statement charge and amount paid 1 1
Adjustment to the fair value of contingent
consideration 24 66
Movement in Exceptional and other non-benchmark
items included in working capital (56) (9)
Cash generated from operations 973 1,024
1. Amortisation and depreciation includes amortisation of acquisition
intangibles of US$95m (2022: US$93m) which is excluded from Benchmark
PBT. Depreciation of right-of-use assets totalled US$24m (2022:
US$26m).
(b) Increase in working capital
Six months ended 30 September
2023 2022
US$m US$m
--------------
Trade and other receivables (41) (16)
Trade and other payables (153) (81)
--------------
Increase in working capital(1) (194) (97)
--------------
1. There was no material change to contract assets, contract
costs or loss allowance in the current or prior period. Contract
liabilities reduced by US$57m (2022: US$80m) from 1 April
predominantly due to the cyclical nature of invoicing and exchange
gains.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
17. Notes to the Group cash flow statement (continued)
(c) Purchase of other intangible
assets
Six months ended 30 September
2023 2022
US$m US$m
---------------
Databases 98 96
Internally generated software 171 147
Internal use software 23 8
---------------
Purchase of other intangible assets 292 251
---------------
(d) Cash flows on acquisitions (non-GAAP measure)
Six months ended 30
September
2023 2022
US$m US$m
Purchase of subsidiaries (note 22(a)) 107 237
Less: net cash acquired with subsidiaries
(note 22(a)) (16) (4)
Settlement of deferred and contingent
consideration 103 34
As reported in the Group cash flow
statement 194 267
Acquisition expenses paid 12 20
Cash outflow for acquisitions (non-GAAP
measure) (Appendix 5) 206 287
(e) Cash outflow in respect of net share purchases (non-GAAP measure)
Six months ended 30 September
2023 2022
Notes US$m US$m
Issue of ordinary shares 20 (17) (16)
Purchase of shares by employee trusts 21 56 45
Purchase of shares held as treasury
shares 21 8 78
Purchase of shares for Co-investment
plan delivery - 6
Cash outflow in respect of net share purchases
(non-GAAP measure) 47 113
As reported in the Group cash flow statement:
Cash inflow in respect of shares issued (17) (16)
Cash outflow in respect of share purchases 64 129
Cash outflow in respect of net share purchases
(non-GAAP measure) 47 113
We executed treasury share purchases of US$29m in the six months
ended 30 September 2023, of which US$21m was settled after the
period end.
(f) Analysis of cash and cash equivalents
30 September
2023 2022
US$m US$m
------ ------
Cash and cash equivalents in the Group
balance sheet 195 146
Bank overdrafts (2) -
------ ------
Cash and cash equivalents in the Group cash
flow statement 193 146
------ ------
Cash and cash equivalents at 31 March 2023 of US$198m in the
Group cash flow statement were reported net of bank overdrafts of
US$4m.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
17. Notes to the Group cash flow statement (continued)
(g) Reconciliation of Cash generated from operations to
Benchmark operating cash flow
(non-GAAP measure)
Six months ended 30
September
2023 2022
Notes US$m US$m
Cash generated from operations 17(a) 973 1,024
Purchase of other intangible assets 17(c) (292) (251)
Purchase of property, plant and equipment (18) (30)
Disposal of property, plant and equipment 1 1
Disposal of assets classified as held-for-sale 2 -
Principal lease payments (24) (30)
Acquisition expenses paid 17(d) 12 20
Dividends received from associates - 1
Cash flows in respect of Exceptional
and other non-benchmark items 57 34
Benchmark operating cash flow (non-GAAP measure)
(Appendix 4) 711 769
Cash flow conversion for the six months ended 30 September 2023
was 77% (2022: 88%). Benchmark free cash flow for the six months
ended 30 September 2023 was US$376m (2022: US$474m).
18. Net debt (non-GAAP measure)
(a) Analysis by nature
30 September
2023 2022
US$m US$m
Cash and cash equivalents (net of overdrafts) 193 146
Debt due within one year - commercial paper (303) (187)
Debt due within one year - bonds and notes (472) -
Debt due within one year - lease obligations (38) (49)
Debt due after more than one year - bonds and
notes (3,202) (3,455)
Debt due after more than one year - bank loans (158) (176)
Debt due after more than one year - lease obligations (119) (103)
Derivatives hedging loans and borrowings (201) (324)
Net debt (4,300) (4,148)
(b) Analysis by balance sheet caption
30 September
2023 2022
US$m US$m
Cash and cash equivalents 195 146
Current borrowings (816) (237)
Non-current borrowings (3,479) (3,731)
Borrowings (4,295) (3,968)
Total of Group balance sheet line items (4,100) (3,822)
Accrued interest reported within borrowings excluded
from Net debt 1 (2)
Derivatives reported within Other financial assets 2 4
Derivatives reported within Other financial liabilities (203) (328)
Net debt (4,300) (4,148)
At 30 September 2023, the fair value of borrowings was US$3,869m
(2022: US$3,563m).
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
18. Net debt (non-GAAP measure) (continued)
(c) Analysis of movements in Net debt
1 April Movements in the six months ended 30 September 30
2023 September
Non-cash Additions
Net lease Principal through Fair Exchange
cash obligation lease Net share business value and other
2023 flow movements(1) payments purchases combinations losses movements 2023
US$m US$m US$m US$m US$m US$m US$m US$m US$m
------
Derivatives
hedging
loans and
borrowings (154) (12) - - - - (3) (32) (201)
Borrowings (4,099) (219) (35) - - (7) (4) 69 (4,295)
------
Liabilities
from financing
activities (4,253) (231) (35) - - (7) (7) 37 (4,496)
Accrued interest 21 (20) - - - - - - 1
Cash and cash
equivalents 202 19 - 24 (47) - - (3) 195
Net debt (4,030) (232) (35) 24 (47) (7) (7) 34 (4,300)
---------
1. Non-cash lease obligation movements include additions of
US$39m and disposals of US$4m (note 15).
19. Undrawn committed bank borrowing facilities
30 September
2023 2022
US$m US$m
Facilities expiring in:
Less than one year - 250
One to two years 143 150
Two to three years 2,050 75
Three to four years 150 1,950
2,343 2,425
At 31 March 2023, there were undrawn committed bank borrowing
facilities of US$2,415m.
There is one financial covenant in connection with the borrowing
facilities. Benchmark EBIT must exceed three times net interest
expense before financing fair value remeasurements. The calculation
of the financial covenant excludes the effects of IFRS 16 'Leases'.
The Group monitors this, and the Net debt to EBITDA leverage ratio,
and has complied with this covenant throughout the current and
prior period.
20. Called-up share capital and share premium account
Number Called-up Share premium
of share account
shares capital
million US$m US$m
--------
At 1 April 2022 970.6 96 1,780
Shares issued under employee share incentive
plans 0.6 - 16
At 30 September 2022 971.2 96 1,796
Shares issued under employee share incentive
plans 0.2 - 3
At 31 March 2023 971.4 96 1,799
Shares issued under employee share incentive
plans 0.6 1 16
At 30 September 2023 972.0 97 1,815
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
21. Own shares held
Number of Cost of
shares shares
million US$m
At 1 April 2022 56.7 1,129
Purchase of shares held as treasury shares 2.6 78
Purchase of shares by employee trusts 1.5 45
Other vesting of awards and exercises of share
options (3.8) (46)
At 30 September 2022 57.0 1,206
Purchase of shares held as treasury shares 2.2 71
Other vesting of awards and exercises of share
options (0.2) (4)
At 31 March 2023 59.0 1,273
Purchase of shares held as treasury shares 0.9 29
Purchase of shares by employee trusts 1.5 56
Other vesting of awards and exercises of share
options (3.2) (49)
At 30 September 2023 58.2 1,309
Own shares held at 30 September 2023 included 52.2 million
(2022: 50.0 million) shares held as treasury shares and 6.0 million
(2022: 7.0 million) shares held in employee trusts. Own shares held
at 31 March 2023 included 52.3 million shares held as treasury
shares (1 April 2022: 48.5 million shares) and 6.7 million
shares
(1 April 2022: 8.2 million shares) held in employee trusts.
The total cost of own shares held at each balance sheet date is
deducted from other reserves in the Group balance sheet.
22. Acquisitions
(a) Acquisitions in the period
The Group made five acquisitions in the six months ended 30
September 2023, none of which are individually material.
Total
US$m
Intangible assets:
Customer and other relationships 24
Software development 41
Marketing-related acquisition intangibles 4
Other non-acquisition intangibles 6
Intangible assets 75
Property, plant and equipment 1
Trade and other receivables 15
Deferred tax assets 11
Cash and cash equivalents (note 17(d)) 16
Trade and other payables (30)
Borrowings (7)
Deferred tax liabilities (12)
Total identifiable net assets 69
Goodwill (note 14(a)) 167
Total 236
Satisfied by:
Cash and cash equivalents (note 17(d)) 107
Put options 71
Contingent consideration 58
Total 236
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
22. Acquisitions (continued)
(a) Acquisitions in the period (continued)
These provisional 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 six months ended 30 September 2023, the most significant inputs
to these calculations are the forecast financial performance, and
associated risk and volatility, for MOVA Sociedade de Empréstimo
entre Pessoas S.A. (MOVA) in Brazil, which the Group acquired a
majority stake in on 3 August 2023.
The contingent consideration liability 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 between 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. Following application of the anticipated acquisition
method of accounting for MOVA, we have recognised a put option
liability, 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$4m.
We engage with third-party valuation experts to assist with the
valuation process for all significant or complex acquisitions,
including for the valuation of the contingent consideration and put
option liabilities associated with the MOVA acquisition.
Provisional fair values contain amounts which will be finalised no
later than one year after the date of acquisition. Provisional
amounts, predominantly for intangible assets, associated tax
balances, contingent consideration, and put option liabilities have
been included at 30 September 2023, as a consequence of the timing
and complexity of the acquisitions.
Goodwill represents the synergies, assembled workforces and
future growth potential of the acquired businesses. The goodwill in
relation to two acquisitions is currently deductible for tax
purposes.
(b) Additional information in respect of acquisitions in the
period
Total
US$m
Increase/(decrease) in book value of net assets
from provisional fair value adjustments:
Intangible assets 72
Deferred tax assets 7
Trade and other payables (8)
Deferred tax liabilities (12)
Increase in book value of net assets from provisional
fair value adjustments 59
Gross contractual amounts receivable in respect
of trade and other receivables 15
Pro forma revenue from 1 April 2023 to date of
acquisition 9
Revenue from date of acquisition to 30 September
2023 5
Loss before tax from date of acquisition to 30
September 2023 1
At the dates of acquisition, the gross contractual amounts
receivable in respect of trade and other receivables of US$15m were
expected to be collected in full. If the transactions had occurred
on the first day of the financial year, the estimated additional
contribution to profit before tax would have been US$nil.
(c) Prior year acquisitions
Contingent consideration of US$102m (2022: US$34m) was settled
in the period in respect of acquisitions made in earlier years.
These cash flows principally relate to the acquisitions of Tax
Credit Co, LLC (TCC) US$30m (2022: US$30m) in FY22, and BrScan
Processamento de Dados e Tecnologia Ltda (BrScan) US$60m (2022:
US$nil) in FY21. Further detail on contingent consideration fair
value adjustments recognised in the period is provided in note
25(c).
The Group made five acquisitions in the six months ended 30
September 2022, including that of CIC Plus, Inc. in the USA. A cash
outflow of US$233m was reported in the Group cash flow statement
for that period, after deduction of US$4m in respect of net cash
acquired.
There have been no other material gains, losses, corrections or
other adjustments recognised in the six months ended 30 September
2023 that relate to acquisitions in earlier years.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
22. Acquisitions (continued)
(d) Post balance sheet acquisition
On 1 November 2023, the Group completed the acquisition of the
entire share capital of AllowMe Tecnologias Ltda. in Brazil for
R$210m (c. US$42m), supplementing our identity and anti-fraud
services.
The fair value of goodwill and other assets and liabilities in
respect of this acquisition will be reported in the Experian Annual
Report 2024, following completion of the initial accounting.
23. Disposals
During the period we disposed of interests in a number of small
subsidiary undertakings in EMEA and Asia Pacific, two of which were
classified as held-for-sale. The profit on disposal was US$5m.
24. Assets and liabilities classified as held-for-sale
The Group continues to market for sale part of its UK property
portfolio, with the sale of a remaining property expected within 12
months. The sale of one property completed in the period with no
profit or loss recognised on disposal. At 30 September 2022 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$2m recognised in the period. A further
subsidiary undertaking in the Asia Pacific region, was classified
as held-for-sale at 31 March 2023. The sale is now not expected to
complete, and its assets and liabilities have been reclassified
accordingly.
At 30 September 2022 a UK associate was recorded as
held-for-sale. The investment was reclassified as an associate in
the Group's statutory financial statements for the year ended 31
March 2023 as it is no longer anticipated the sale will complete
within 12 months.
30 September
2023 2022
US$m US$m
Assets classified as held-for-sale:
Investment in associate - 24
Property, plant and equipment 10 10
Trade and other receivables - 1
Assets classified as held-for-sale 10 35
Liabilities classified as held-for-sale:
Trade and other payables - (1)
Liabilities classified as held-for-sale - (1)
25. Financial risk management
(a) Financial risk factors
The Group's activities expose it to a variety of financial
risks. These are market risk, including foreign exchange risk and
interest rate risk, credit risk and liquidity risk. The nature of
these risks and the policies adopted by way of mitigation are
unchanged from those reported in the Annual Report and Group
financial statements for the year ended 31 March 2023. Full
information and disclosures were contained in that document.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
25. Financial risk management (continued)
(b) Analysis by valuation method for put options and items
measured at fair value
(i) At 30 September 2023
Level Level Level
1 2 3 Total
US$m US$m US$m US$m
Financial assets:
Non-hedging derivatives - 198 - 198
Other financial assets at fair
value through profit or loss - - 12 12
----- ------ ------ ------
Financial assets at fair value
through profit or loss - 198 12 210
Listed and trade investments(1) 65 - 246 311
----- ------ ------ ------
65 198 258 521
----------------------------------- ----- ------ ------ ------
Financial liabilities:
Derivatives used for hedging
- fair value hedges(2) - (163) - (163)
Non-hedging derivatives - (37) - (37)
Other liabilities at fair value
through profit or loss - - (124) (124)
----- ------ ------ ------
Financial liabilities at fair
value through profit or loss - (200) (124) (324)
Derivatives used for hedging
- cash flow hedge(1, 2) - (28) - (28)
Put options - - (108) (108)
----- ------ ------ ------
- (228) (232) (460)
Net financial assets/(liabilities) 65 (30) 26 61
(ii) At 30 September 2022
Level Level Level
1 2 3 Total
US$m US$m US$m US$m
Financial assets:
Non-hedging derivatives - 170 - 170
Other financial assets at fair
value through profit or loss - - 18 18
----- ------ ------ ------
Financial assets at fair value
through profit or loss - 170 18 188
Listed and trade investments(1) 51 - 275 326
----- ------ ------ ------
51 170 293 514
----------------------------------- ----- ------ ------ ------
Financial liabilities:
Derivatives used for hedging
- fair value hedges(2) - (234) - (234)
Non-hedging derivatives - (38) - (38)
Other liabilities at fair value
through profit or loss - - (166) (166)
----- ------ ------ ------
Financial liabilities at fair
value through profit or loss - (272) (166) (438)
Derivatives used for hedging
- cash flow hedge(1, 2) - (78) - (78)
Put options - - (151) (151)
----- ------ ------ ------
- (350) (317) (667)
Net financial assets/(liabilities) 51 (180) (24) (153)
1. Listed and trade investments, and derivatives designated as a
cash flow hedge, which are in a documented hedge accounting
relationship, are revalued through OCI.
2. Derivatives used for hedging are in documented hedge accounting relationships.
Financial assets at fair value through profit or loss (FVPL) are
reported within Other financial assets in the Group balance sheet.
Contingent consideration is reported within trade and other
payables in the Group balance sheet. Put options and other
financial liabilities at fair value through profit or loss are
reported within Other financial liabilities in the Group balance
sheet. Cross-currency swaps in respect of the cash flow hedge are
reported within Financial assets revalued through OCI or Financial
liabilities revalued through OCI, in the Group balance sheet.
The fair values of derivative financial instruments and other
financial assets and liabilities are determined by using market
data and established estimation techniques such as discounted cash
flow and option valuation models. The fair value of foreign
exchange contracts is based on a comparison of the contractual and
period-end exchange rates. The fair values of other derivative
financial instruments are estimated by discounting the future cash
flows to net present values using appropriate market rates
prevailing at the period end. There have been no changes in
valuation techniques during the period under review.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
25. Financial risk management (continued)
(b) Analysis by valuation method for put options and items
measured at fair value (continued)
The levels used in the above tables are defined in IFRS 13 'Fair
Value Measurement' and 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; and
-- 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.
There would be no material effect on the amounts stated from any
reasonably possible change in such inputs at 30 September 2023.
There have been no transfers between levels during the current or
prior period.
(c) Analysis of movements in Level 3 net financial
assets/(liabilities)
(i) Six months ended 30 September 2023
Financial Other Contingent Put Total
assets financial consideration options
revalued assets
through at FVPL
OCI
US$m US$m US$m US$m US$m
At 1 April 2023 252 16 (139) (33) 96
Additions(1,2) 5 - (58) (71) (124)
Conversion of convertible debt
to equity investments(3) 5 (5) - - -
Settlement of contingent consideration(4) - - 102 - 102
Adjustment to the fair value
of contingent consideration(5) - - (24) - (24)
Valuation losses recognised in
the
Group income statement(6) - - - (6) (6)
Valuation losses recognised in
OCI (16) - - - (16)
Currency translation gains/(losses)
recognised
directly in OCI - - (2) 2 -
Other - 1 (3) - (2)
At 30 September 2023 246 12 (124) (108) 26
1. Additions to contingent consideration comprised US$58m in
respect of acquisitions (note 22(a)).
2. Additions to put options comprised US$71m in respect of the acquisition of MOVA.
3. Two of our investments that were previously held as financial
assets at FVPL, are now held as financial assets revalued through
OCI due to the conversion of loan notes to equity shares.
4. Contingent consideration settled principally relates to the
acquisitions of TCC US$30m and BrScan US$60m.
5. Contingent consideration in relation to TCC increased by
US$22m following fair value adjustments recognised in the period,
which are determined by revenue and profit performance up to and
including FY25. There was also an increase of US$2m for other
previous acquisitions. There are limits in place for contingent
consideration payments, with the upper cap for the remaining TCC
payment being US$50m. At 30 September 2023 the liability in respect
of the TCC contingent consideration was equal to the present value
of this maximum payment. Contingent consideration liabilities are
revalued at each reporting date based on current projections of the
associated targets, with any fair value remeasurements recognised
as a non-benchmark item in the Group income statement (note
9(a)).
6. Movements in the present value of expected future payments
for put options are unrealised and are recognised in financing fair
value remeasurements in the Group income statement.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
25. Financial risk management (continued)
(c) Analysis of movements in Level 3 net financial
assets/(liabilities) (continued)
(ii) Six months ended 30 September 2022
Financial Other Contingent Put Total
assets financial consideration options
revalued assets
through at FVPL
OCI
US$m US$m US$m US$m US$m
At 1 April 2022 295 18 (107) (190) 16
Additions(1) 6 1 (35) - (28)
Settlement of contingent consideration(2) - - 34 - 34
Adjustment to the fair value
of contingent consideration(3) - - (66) - (66)
Valuation gains recognised in
the
Group income statement(4) - - - 16 16
Valuation losses recognised in
OCI (26) - - - (26)
Currency translation gains recognised
directly in OCI - - 8 23 31
Other - (1) - - (1)
At 30 September 2022 275 18 (166) (151) (24)
1. Additions to contingent consideration comprised US$35m in respect of acquisitions.
2. Contingent consideration settled principally relates to the acquisition of TCC US$30m.
3. Contingent consideration in relation to TCC increased by
US$56m following fair value adjustments recognised in the six
months ended 30 September 2022, alongside an increase of US$10m for
other previous acquisitions. 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 9(a)).
4. Movements in the present value of expected future payments
for put options are unrealised and are recognised in financing fair
value remeasurements in the Group income statement.
(d) Fair value methodology
Information in respect of the carrying amounts and the fair
value of borrowings is included in note 18(b). There are no
material differences between the carrying value of the Group's
other financial assets and liabilities not measured at fair value
and their estimated fair values. The following assumptions and
methods are used to estimate the fair values:
-- the fair values of receivables, payables and cash and cash
equivalents are considered to approximate to the carrying
amounts;
-- the fair values of short-term borrowings, other than bonds,
are considered to approximate to the carrying amounts due to the
short maturity terms of such instruments;
-- the fair value of that portion of bonds carried at amortised
cost is based on quoted market prices, employing a valuation
methodology falling within Level 1 of the IFRS 13 fair value
hierarchy;
-- the fair value of listed investments is based on quoted
market prices, employing a valuation methodology falling within
Level 1 of the IFRS 13 fair value hierarchy;
-- the fair values of long-term variable rate bank loans and
lease obligations are considered to approximate to the carrying
amount; and
-- 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.
(e) Carrying value of financial assets and liabilities
There have been no unusual changes in economic or business
circumstances that have affected the carrying value of the Group's
financial assets and liabilities at 30 September 2023.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
26. Related party transactions
The Group's related parties were disclosed in the Group's
statutory financial statements for the year ended 31 March 2023 and
there have been no material changes during the six months ended 30
September 2023.
Transactions with associates are made on normal market terms and
in the six months ended 30 September 2023 services costing US$6m
(2022: US$5m) were purchased from associates. At 30 September 2023
US$1m (2022: US$1m) was owed to associates.
During the six months ended 30 September 2023, US$25m (2022:
US$18m) was paid by the Group to related undertakings in connection
with the provision of post-employment pensions benefits. In the six
months ended 30 September 2023, US$3m (2022: US$3m) was paid by the
Group to Experian Medical Plan Limited in connection with the
provision of healthcare benefits.
27. Contingencies
(a ) Latin America tax
As previously indicated, Serasa S.A. has been advised that the
Brazilian tax authorities are challenging the deduction for tax
purposes of goodwill amortisation arising from its acquisition by
Experian in 2007. The Brazilian administrative courts have
ultimately upheld Experian's position in respect of the tax years
from 2007 to 2012 with no further right of appeal. The Brazilian
tax authorities have raised similar assessments in respect of the
2013 to 2018 tax years, in relation to the goodwill amortisation
related to both the original acquisition of a majority shareholding
in Serasa S.A. in 2007 and the acquisition of the remaining holding
in 2012, and also in relation to the acquisition of Virid
Interatividade Digital Ltda in 2011. Experian has claimed a tax
deduction for goodwill amortisation of US$224m 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, in which approximately US$3m was
claimed, and similar claims in respect of other years may be
raised. We are contesting these on the basis of external legal
advice.
(b) UK marketing services regulation
We successfully appealed to the First Tier Tribunal a final
enforcement notice from the UK Information Commissioner's Office
(ICO) with respect to our use of data for marketing purposes under
the EU General Data Protection Regulation (GDPR), which relates to
our marketing services activities in the UK. The ICO has
subsequently appealed to the Upper Tier Tribunal, during which time
all requirements will be stayed. The hearing on the ICO's appeal is
set to be heard in February 2024. At this stage we do not know what
the final outcome will be, but if the First Tier Tribunal judgment
is overturned, it may require significant changes to business
processes in our UK marketing services business. This business
represents approximately 1% of our global revenues and we do not
expect this to result in a materially adverse financial outcome for
the Group.
(c) Other litigation and claims
There continues to be an increase in regulatory activity,
including a number of pending and threatened claims and regulatory
actions involving the Group across all its major geographies which
are in various stages of investigation or enforcement, and which
are being vigorously defended, including from the Consumer
Financial Protection Bureau and Federal Trade Commission in the
USA. These include investigations and potentially enforcement
actions related to the Credit Reference, Marketing Services and
Consumer Services businesses, as well as potential rulemaking and
state level legislation which could impact our Credit Reference and
Marketing Services businesses in the USA. There continue to be
individual consumer and class action litigation matters in Brazil
and the USA related to our 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
action will have a materially adverse effect on the Group's
financial position. However, as is inherent in legal, regulatory
and administrative proceedings, there is a risk of outcomes that
may be unfavourable to the Group. In the case of unfavourable
outcomes, the Group may benefit from applicable insurance
recoveries.
Notes to the condensed interim financial statements
for the six months ended 30 September 2023
28. Events occurring after the end of the reporting period
(a) First interim dividend
Details of the first interim dividend approved by the Board on
14 November 2023 are given in note 13.
(b) Acquisition
The Group completed the acquisition of AllowMe Tecnologias Ltda.
in Brazil on 1 November 2023 . Further details are provided in note
22(d).
29. Company website
The Company has a website which contains up-to-date information
on Group activities and published financial results. The directors
are responsible for the maintenance and integrity of statutory and
audited information on this website. The work carried out by the
auditor does not involve consideration of these matters. Jersey
legislation and UK regulation governing the preparation and
dissemination of financial information may differ from requirements
in other jurisdictions.
Statement of directors' responsibilities
The directors are responsible for preparing the half-yearly
financial report for the six months ended 30 September 2023 in
accordance with applicable law, regulations and accounting
standards.
The directors confirm that these condensed interim financial
statements have been prepared in accordance with IAS 34 'Interim
Financial Reporting' as issued by the IASB and as adopted for use
in the UK and the EU, and that, to the best of their knowledge, the
interim management report herein includes a fair review of the
information required by:
(a) DTR 4.2.7R of the UK Financial Conduct Authority Disclosure
Guidance and Transparency Rules sourcebook, being an indication of
important events that have occurred during the first six months of
the financial year and the impact on these condensed interim
financial statements; and a description of the principal risks and
uncertainties for the remaining six months of the financial year;
and
(b) DTR 4.2.8R of the UK Financial Conduct Authority Disclosure
Guidance and Transparency Rules sourcebook, being related party
transactions that have taken place in the first six months of the
financial year and that have materially affected the financial
position or performance of the enterprise during that period; and
any changes in the related party transactions described in the last
annual report that could do so.
The names and biographical details of the directors of Experian
plc at 16 May 2023 were listed in the Group's statutory financial
statements for the year ended 31 March 2023. There have been no
subsequent changes of directors and a list of current directors is
maintained on the Company website at www.experianplc.com .
By order of the Board
Charles Brown
Company Secretary
14 November 2023
Independent review report to Experian plc
Conclusion
We have been engaged by the Company to review the condensed
interim financial statements in the half-yearly financial report
for the six months ended 30 September 2023 which comprises the
Group income statement, the Group statement of comprehensive
income, the Group balance sheet, the Group statement of changes in
equity, the Group cash flow statement and the related explanatory
notes.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed interim financial
statements in the half-yearly financial report for the six months
ended 30 September 2023 are not prepared, in all material respects,
in accordance with IAS 34 Interim Financial Reporting as adopted
for use in the UK and the EU, and as issued by the IASB, and the
Disclosure Guidance and Transparency Rules sourcebook (the DTR) of
the UK's Financial Conduct Authority (the UK FCA).
Basis for conclusion
We conducted our review in accordance with International
Standard on Review Engagements (UK) 2410 Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity (ISRE (UK) 2410) issued for use in the UK. A review of
interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. We
read the other information contained in the half-yearly financial
report and consider whether it contains any apparent misstatements
or material inconsistencies with the information in the condensed
interim financial statements.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis of conclusion
section of this report, nothing has come to our attention that
causes us to believe that the directors have inappropriately
adopted the going concern basis of accounting, or that the
directors have identified material uncertainties relating to going
concern that have not been appropriately disclosed.
This conclusion is based on the review procedures performed in
accordance with ISRE (UK) 2410. However, future events or
conditions may cause the Group to cease to continue as a going
concern, and the above conclusions are not a guarantee that the
Group will continue in operation.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the DTR of the UK FCA.
As disclosed in note 2, the annual financial statements of the
Group are prepared in accordance with UK-adopted international
accounting standards and International Financial Reporting
Standards as adopted for use in the EU and as issued by the
IASB.
The directors are responsible for preparing the condensed
interim financial statements included in the half-yearly financial
report in accordance with IAS 34 as adopted for use in the UK and
the EU, and as issued by the IASB.
In preparing the condensed interim financial statements, the
directors are responsible for assessing the Group'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 the directors either intend to liquidate the
Group or to cease operations, or have no realistic alternative but
to do so.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed interim financial statements in the half-yearly
financial report based on our review. Our conclusion, including our
conclusions relating to going concern, are based on procedures that
are less extensive than audit procedures, as described in the Basis
for conclusion section of this report.
Independent review report to Experian plc (continued)
The purpose of our review work and to whom we owe our
responsibilities
This report is made solely to the Company in accordance with the
terms of our engagement to assist the Company in meeting the
requirements of the DTR of the UK FCA. Our review has been
undertaken so that we might state to the Company those matters we
are required to state to it in this report 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 for our
review work, for this report, or for the conclusions we have
reached.
Zulfikar Walji
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London
E14 5GL
United Kingdom
14 November 2023
Shareholder information
Company website
A full range of investor information is available at
www.experianplc.com.
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 www.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 unless they have elected to either
(i) receive such notification via email or (ii) receive paper
copies of shareholder documents where such documents are available
in that format.
Dividend information
Dividends for the year ending 31 March 2024
A first interim dividend in respect of the year ending 31 March
2024 of 18.0 US cents per ordinary share will be paid on 2 February
2024 to shareholders on the register at the close of business on 5
January 2024. Unless shareholders elect by 5 January 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 12 January 2024.
Income Access Share (IAS) arrangements
As its ordinary shares are listed on the London Stock Exchange,
the Company has a large number of UK resident shareholders. In
order that shareholders may receive Experian dividends from a UK
source, should they wish, the IAS arrangements have been put in
place. The purpose of the IAS arrangements is to preserve the tax
treatment of dividends paid to Experian shareholders in the UK, in
respect of dividends paid by the Company. Shareholders who elect,
or are deemed to elect, to receive their dividends via the IAS
arrangements will receive their dividends from a UK source (rather
than directly from the Company) for UK tax purposes.
Shareholders who hold 50,000 or fewer Experian 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 5 January
2024.
Dividend Reinvestment Plan (DRIP)
The DRIP enables those shareholders who receive their dividends
under the IAS 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 first interim dividend
for the year ending 31 March 2024 to be paid on 2 February 2024,
should return a completed and signed DRIP application form, to be
received by the registrars by no later than 5 January 2024.
Shareholders should contact the registrars for further details.
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 www.shareowneronline.com , then select 'Contact Us'
W www.adr.com
Shareholder information (continued)
Financial calendar
First interim ex-dividend date 4 January 2024
First interim dividend record date 5 January 2024
First interim dividend exchange 12 January 2024
rate determined
Trading update, third quarter 16 January 2024
First interim dividend payment 2 February 2024
date
Preliminary announcement of full-year 15 May 2024
results
Annual General Meeting 17 July 2024
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
Shareholder helpline 0371 664 9245 (+44 800 141 2952 for calls from
outside the UK)
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 between 8.30am
and 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
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END
IR GPGQGGUPWPUC
(END) Dow Jones Newswires
November 15, 2023 02:00 ET (07:00 GMT)
Experian (LSE:EXPN)
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