- Business review
- Chief Executive's
review - Key performance
indicators - North America
- Latin America
- UK and Ireland
- EMEA/Asia Pacific
- Financial review
- Risks and uncertainties
- Corporate
responsibility
Key performance indicators
Experian’s strategy is centred on three elements: to focus on data
and analytics, drive profitable growth and optimise capital efficiency.
Experian’s financial objectives are to drive organic growth, to maintain
or grow margins and to convert at least 85% of EBIT into operating
cash flow. The following indicators are the key metrics used by
the board and management team to assess Experian’s success in
achieving its objectives.
Total revenue growth
In the year ended 31 March 2009, Experian increased its revenue from continuing activities by 8% at constant exchange rates. Acquisitions accounted for 5% of the revenue growth, largely reflecting the contributions from Serasa and other smaller acquisitions.
Total growth is defined as year-on-year continuing revenue growth at constant exchange rates
Organic revenue growth
Organic growth increased by 3% in the year ended 31 March 2009. Organic revenue growth was achieved against a challenging economic backdrop, demonstrating the resilience of the business model.
Organic growth is defined as year-on-year continuing revenue growth at constant exchange rates, excluding acquisitions except affiliates, until the date of their anniversary
EBIT (US$m) and margin
In the year ended 31 March 2009, Experian increased its total EBIT by 3% to US$939m. Continuing EBIT increased by 8% at constant exchange rates. EBIT margin from continuing activities expanded by 50 basis points to 23.3%. Experian delivered this margin while continuing to fund investment for future growth.
EBIT includes discontinuing activities
EBIT margin is for continuing direct business only, excluding FARES
FY08 restated to exclude French transaction processing activities
Cash flow (US$m) and cash flow conversion
Experian aims to convert at least 85% of its EBIT into operating cash flow each year. In the year ended 31 March 2009, Experian converted 99% of EBIT to operating cash flow, significantly in excess of its target.
Operating cash flow is defined as EBIT less changes in working capital, add depreciation/amortisation, less capital expenditure, less profit retained in associates
Cash flow conversion is operating cash flow as a percentage of EBIT including discontinuing activities
FY08 restated to exclude French transaction processing activities
Employee engagement
Experian’s people are at the heart of the Group’s success and are a key resource. Experian has taken a number of steps to improve employees’ satisfaction and involvement with the Company and regularly surveys its whole working population to measure their engagement.
Percentage score calculated by the degree of positive response to a specified range of questions
Score for 2007 is an amalgamation of regional surveys conducted over a two-year period
No comparative data is available for Latin America for previous years
Carbon footprint (000’s tonnes)
Experian’s environmental impact is largely the result of energy use in buildings, especially its data centres, and employee travel. The Group is taking steps to reduce its energy consumption and overall energy costs, and to extend its purchase of energy from renewable sources.
Where emissions factors have changed, we have applied the most recent factors retrospectively
Data in respect of air travel was included for the first time in 2007
2009 data reflects improved measurement and estimation processes which it has not been possible to apply to previous years’ data, consequently 2009 is not directly comparable to previous years. See the full CR report for details and calculation methods at www.experiancrreport.com
Countries with offices
Experian supports local and multinational clients in over 65 countries throughout a network of offices. Additional offices were opened during the year in Costa Rica and Morocco to support Experian’s growth in those countries. This brought the total number of countries where Experian has offices to 40.
Number of consumer credit bureaux
Experian’s consumer credit bureaux provide the foundation for its consumer credit-related activities. Experian owns consumer credit bureaux in 13 countries and has an interest in a further two, bringing the total number of countries in which Experian has an interest in a consumer credit bureau to 15.
Number of business credit bureaux
Experian’s business credit bureaux provide the foundation for its business credit-related activities. Experian owns business credit bureaux in 10 countries and has an interest in a further two, bringing the total number of countries in which Experian has an interest in a business credit bureau to 12.
Changes to key performance indicators
Experian no longer reports ‘revenue per employee’ as a KPI as our increasing mix of businesses has resulted in this no longer being an appropriate global performance indicator.Experian’s strategy is to drive profitable growth, for example, through increased global reach. The ownership of both consumer and business bureaux around the world supports this strategy.
The number of business credit bureaux which Experian owns, or in which it has an interest, has increased to the extent that it is now appropriate to disclose it separately as a KPI. The comparative numbers of business bureaux remain only those bureaux historically owned by Experian, but reflect minority ownership from 2009.