Experian Preliminary Results

RNS Number : 0326D

Experian plc

10 May 2012

news release

Preliminary results for the year ended 31 March 2012

10 May 2012 ─ Experian, the global information services company, today issues its financial results for the year ended 31 March 2012.

Highlights

· Total revenue from continuing activities up 16%. At constant exchange rates, revenue from continuing activities up 15%. Organic revenue growth was 10% (excluding discontinued operations). Total Group revenue of US$4.5bn (2011: US$3.9bn).

· Good margin progression. EBIT margin from continuing activities up 50 basis points to 26.2%.

· Total EBIT from continuing operations of US$1,175m up 19%. At constant exchange rates, EBIT from continuing activities up 18%.

· Profit before tax from continuing operations of US$689m (2011: US$656m). Benchmark profit before tax of US$1,128m, up 23%.

· Basic EPS from continuing operations of 66.8 US cents (2011: 49.4 US cents). Benchmark EPS of 78.9 US cents, up 18%.

· Net debt of US$1,818m at 31 March 2012.

· 96% conversion of EBIT into operating cash flow.

· Second interim dividend of 21.75 US cents per ordinary share, to give full-year dividend of 32.00 US cents per ordinary share, up 14%.

In these results, the comparison shopping and lead generation businesses that are held for sale have been treated as discontinued operations and have therefore been excluded (please refer to separate divestment announcement). See Appendix 7 for a comparison of revenue and EBIT growth rates.

Sir John Peace, Chairman, commented:

"In the five years since demerger Experian has delivered significant shareholder value. The business today is strongly positioned, more diverse by geography and by industry vertical and is pursuing numerous growth initiatives. Looking ahead, I am confident Experian can build on this success for all its stakeholders."

Don Robert, Chief Executive Officer, commented:

"Experian delivered premium growth in FY12. We met or exceeded our financial objectives, our growth programme is gaining pace and, through the agreement to divest certain non-core activities, we have further sharpened our strategic focus on data and analytics. For the year ahead, we expect to continue to deliver high quality growth, consistent with our core financial objectives to deliver mid-high single-digit organic revenue growth, maintain or improve margin and deliver cash flow conversion of over 90%."

Contacts

Experian

Don Robert Chief Executive Officer +44 (0)20 3042 4215

Nadia Ridout-Jamieson Director of Investor Relations

James Russell Communications Director, UK&I and EMEA

RLM Finsbury

Rollo Head +44 (0)20 7251 3801

Don Hunter

There will be a presentation today at 9.30am (UK time) to analysts and investors at the Bank of America Merrill Lynch Financial Centre, 2 King Edward Street, London, EC1A 1HQ. The presentation can be viewed live on the Experian website at www.experianplc.com and can also be accessed live via a dial-in facility on +44 (0)20 3037 9164. The supporting slides and an indexed replay will be available on the website later in the day.

Experian will update on first quarter trading on 13 July 2012, when it will issue an Interim Management Statement.

See Appendix 2 for definition of non-GAAP measures used throughout this announcement.

Roundings

Certain financial data have 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.

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 leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2012 was US$4.5 billion. Experian employs approximately 17,000 people in 44 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

For more information, visit http://www.experianplc.com.

Chief Executive Officer's review

This was a year of significant achievement for Experian. We delivered another year of strong financial performance and we took a series of strategic steps which will sustain growth into the future. Total revenue growth from continuing activities was 15%, at constant currency, and organic revenue growth was 10% (H1 9%, H2 10%). We delivered an increase in EBIT from continuing activities of 18% at constant currency, and further enhanced our EBIT margin, up 50 basis points to 26.2%. We delivered strong growth in Benchmark EPS, up 18% to 78.9 US cents per share and have raised the full-year dividend by 14% to 32.00 US cents per share.

· We delivered good growth across all regions, with organic revenue growth of 23% in Latin America, 8% in the UK and Ireland, 7% in EMEA/Asia Pacific and 6% in North America.

· We delivered good growth across our four global business lines, with organic revenue growth of 12% in Credit Services, 9% in Marketing Services, 8% in Decision Analytics and 7% in Interactive.

· We met or exceeded each of our financial objectives, namely to deliver mid-high single digit organic revenue growth, maintain or improve margin and deliver cash flow conversion of over 90%.

· We executed well on our global growth programme, positioning us strongly for the future.

I would like to thank the people of Experian whose inspiration, creativity and dedication make these achievements possible.

Impact of agreement to divest non-core activities

Over the past four years, our strategic focus has been on extending our global lead in credit information and analytics, digital marketing services and direct-to-consumer services. We have signed an agreement to divest our comparison shopping and North America lead generation businesses, which were non-core to Experian. We expect to complete the transaction within the first half of this fiscal year, subject to successful completion of various conditions and events. For the purposes of these results, these businesses have been treated as discontinued operations. On a like-for-like basis, including these businesses, revenue was US$4.8bn, with organic revenue growth of 7% (H1 6%, H2 8%), EBIT was US$1,195m, up 14%, EBIT margin was 25.1% and Benchmark EPS was 80.0 US cents per share. See Appendix 7 for a comparison of growth rates.

Our core Consumer Direct activities are not affected by the agreed divestment. In view of this, we will change the name of the Interactive business segment to Consumer Services, to more appropriately reflect the continuing operations of the business segment. We will adopt the new segment name in our financial reporting for the year ending 31 March 2013.

Financial and strategic highlights

In North America, we saw good performances in Credit Services and Decision Analytics. There was steady recovery in lending and we started to benefit from investments made in recent years. This is driving volume increases in consumer information, as well as demand for our new sources of data, analytics and software. We are also delighted by the progress that we are making across business information, automotive and healthcare payments, all of which delivered strong growth in the year and are well-positioned for future expansion. Medical Present Value, the acquisition which extends our presence in the US healthcare payments vertical, is performing strongly. While the external environment for Marketing Services was tepid, we have continued to benefit from extending our presence in the digital marketing space. Consumer Direct grew as we successfully migrate into our new brands. More recently, we have made good progress towards expanding the white label (affinity) channel, which will benefit our prospects in the latter part of FY13 and beyond.

We made excellent progress in Latin America during the year, with the region now accounting for over 20% of Group revenue. Our business in Brazil delivered very strong organic growth, as we invested in new sources of data, broadened our product range and further penetrated new customer segments. We continue to see significant prospects for growth in Brazil as we leverage our scale and the full extent of the Experian portfolio. We also made good strategic progress in Marketing Services, with the acquisition of the leading email marketing business in the country. This provides us with an important new platform for driving growth in targeted digital marketing in Brazil.

Also in Latin America, we were delighted to complete the acquisition of Computec in November, which has extended our credit bureau footprint to Colombia, Peru and Venezuela. Computec has performed strongly since acquisition, in line with the acquisition buy plan. On an underlying basis, revenue growth was approximately 20% for the year. We are in the process of integrating back office functions and we are developing plans to launch Experian's full product range into these new markets.

We were pleased to deliver a good performance in the UK and Ireland. Credit Services returned to growth and Decision Analytics performed strongly. We have benefited from new client engagements in the financial services sector and have extended further into non-financial verticals. We also completed two bolt-on acquisitions, which extend our presence in the high growth fraud prevention sector and bolster our position in the small and medium enterprise market. Weak economic conditions had some impact on Marketing Services, where growth was fairly modest. Interactive by contrast performed very strongly, helped by a good reception for our bundled consumer product. We also took an important step to expand further into consumer identity protection with the acquisition of Garlik.

EMEA/Asia Pacific performed well despite difficult trading conditions in some European markets. A strong reception for digital marketing platforms drove exceptionally strong growth in Marketing Services, our largest revenue contributor within EMEA/Asia Pacific, with resilience in Credit Services. Decision Analytics was adversely affected by project deferrals in Continental Europe. We are in the process of realigning our regional sales structure for Decision Analytics in EMEA to improve operational efficiency and return that business to growth.

Strategy

We made further progress during the year against our five strategic goals to:

· Extend our global lead in credit information and analytics,

· Build successful businesses in new customer segments,

· Build large-scale operations in major emerging consumer economies,

· Become the global leader in digital marketing services, and

· Become the most trusted consumer brand for credit information and identity protection services.

During the year we continued to invest in our global growth programme, aimed at delivering these goals. We made good progress and, collectively, the programme contributed approximately 4% to organic revenue growth, ahead of our previous expectations.

Our growth programme has enabled us to further deliver against our strategic metrics, with 35% of Group revenue now arising from outside the US and UK (2011: 32%), 68% from non-financial verticals (2011: 66%) and, in line with last year, over 10% generated from product innovations in the past five years (2011: also greater than 10%).

Investment to support growth during FY12 included approximately 200 basis points of margin, net capital expenditure of US$453m and acquisition expenditure of US$787m. For FY13, we anticipate continued investment through the income statement, and capital expenditure in the range of US$470-490m.

Cash flow and net debt

EBIT conversion into operating cash flow was 96%, exceeding our target of 90% conversion. Net debt increased by US$317m to US$1,818m at 31 March 2012, reflecting acquisitions made in the year. At 31 March 2012, the adjusted net debt to EBITDA gearing ratio was 2.0 times, including the current value of the Serasa put option of US$1,092m. This compares to our target net debt range of 1.75 to 2.0 times.

Experian seeks to diversify its sources of funding and to spread debt maturities. We have a £334m bond which matures at the end of calendar 2013 and in order to refinance this we expect to undertake a new bond issue during calendar year 2012. Including this item and an anticipated increase in average net interest rates, we expect thenet interest expense will be in the range of US$50-60m for the year ending 31 March 2013.

Capital strategy

In setting our capital strategy, we aim for an appropriate balance between investing in the business for growth while maintaining a prudent but efficient balance sheet. For the coming year, we have taken into account current leverage, anticipated free cash flow and the current acquisition pipeline, including the value of the Serasa put option and the opening up of the exercise window. In view of these items, we have decided not to initiate a further share buyback programme this year. We do however, expect to repurchase shares in respect of employee share plans that vest, at an anticipated cost in the region of US$130m.

Dividend

For the year ended 31 March 2012, we are announcing a second interim dividend of 21.75 US cents per share. This gives a full-year dividend of 32.00 US cents per share, up 14%. The second interim dividend will be paid on 20 July 2012 to shareholders on the register at the close of business on 22 June 2012.

People

It was with great sadness that we announced the death of Paul Brooks, Chief Financial Officer, in January. Paul was a truly inspirational leader and contributed a great deal to the success of Experian over the past decade. His legacy lives on in the form of an extremely strong global finance function. Paul has been succeeded by Brian Cassin, who joined us in April from Greenhill & Co. International. I would like to welcome Brian to Experian and I am confident that he too will make an immensely positive contribution towards our future development. We have confirmed that, in order to provide continuity following Paul's death, David Tyler will remain on the Board as a non-executive director until 31 December 2012, when he will retire.

We have recently announced the appointment of two new independent non-executive directors, Deirdre Mahlan and George Rose, both of whom will join us on 1 September 2012. Deirdre is the Chief Financial Officer of Diageo plc, while George is a non-executive director, and chairs the Audit Committees of National Grid plc, Genal Energy plc and Laing O'Rourke plc, and is a member of the Industrial Development Advisory Board, which provides advice to the UK's Secretary of State for Business on applications for financial assistance. He was previously Group Finance Director of BAE Systems plc. I would like to welcome both Deirdre and George to Experian.

Group financial results

Revenue by geography

Year ended 31 March	2012 US$m	2011 US$m¹	Growth %
Year ended 31 March	2012 US$m	2011 US$m¹	Total at actual rates²	Total at constant rates³	Organic³
North America
Credit Services	791	716		10	7
Decision Analytics	129	113		14	14
Marketing Services	395	367		8	8
Interactive	777	709		10	3
Total continuing activities	2,092	1,905	10	10	6
Discontinuing activities	-	-
Total North America	2,092	1,905
Latin America
Credit Services	891	687		28	23
Decision Analytics	20	12		70	70
Marketing Services	50	23		114	8
Total continuing activities	961	722	33	31	23
Discontinuing activities	-	-
Total Latin America	961	722
UK and Ireland
Credit Services	240	225		4	1
Decision Analytics	198	175		11	10
Marketing Services	234	218		5	1
Interactive	152	113		31	30
Total continuing activities	824	731	13	10	8
Discontinuing activities⁴	1	11
Total UK and Ireland	825	742
EMEA/Asia Pacific
Credit Services	211	184		11	3
Decision Analytics	129	134		(7)	(7)
Marketing Services	268	183		40	22
Total continuing activities	608	501	21	17	7
Discontinuing activities⁴	1	15
Total EMEA/Asia Pacific	609	516
Total revenue - continuing activities	4,485	3,859	16	15	10
Total revenue - discontinuing activities³	2	26
Total revenue - continuing operations	4,487	3,885

1. 2011 restated to exclude comparison shopping and lead generation businesses in North America and UK and Ireland; these have been classified as discontinued operations.

2. Actual exchange rates.

3. Constant exchange rates.

4. Discontinuing activities include UK account processing, some UK hosted database activities, UK mortgage software activities and other smaller discontinuing activities (principally in EMEA/Asia Pacific).

See Appendix 1 for analysis of revenue and EBIT by business segment.

Income statement, earnings and margin analysis

Year ended 31 March	2012 US$m	2011 US$m¹	Total growth % constant²	Total growth % actual³
EBIT by geography
North America	658	556	18
Latin America	320	235	34
UK and Ireland	227	214	4
EMEA/Asia Pacific	44	52	(16)
EBIT before Central Activities	1,249	1,057	17
Central Activities⁴	(74)	(66)
EBIT - continuing activities	1,175	991	18
UK and Ireland discontinuing activities⁵	-	(1)
EMEA/Asia Pacific discontinuing activities⁵	-	1
Total discontinuing activities	-	-
Total EBIT from continuing operations	1,175	991	18	19
Net interest	(47)	(71)
Benchmark PBT	1,128	920		23
Exceptional items	12	(2)
Amortisation of acquisition intangibles	(122)	(99)
Acquisition expenses	(9)	(8)
Adjustment to the fair value of contingent consideration	3	-
Charges for demerger-related equity incentive plans	(5)	(13)
Financing fair value remeasurements	(318)	(142)
Profit before tax	689	656
Group tax credit/(charge)	35	(118)
Profit after tax from continuing operations	724	538

Benchmark earnings (non-controlling interests)	(74)	(52)
Benchmark earnings	780	670		16
Benchmark EPS (US cents)	78.9	66.9		18
Basic EPS for continuing operations (US cents)	66.8	49.4
Weighted average number of ordinary shares (million)	989	1,002

EBIT margin⁶
North America	31.5%	29.2%
Latin America	33.3%	32.5%
UK and Ireland	27.5%	29.3%
EMEA/Asia Pacific	7.2%	10.4%
Total EBIT margin	26.2%	25.7%

1. 2011 restated to exclude comparison shopping and lead generation businesses in North America and UK and Ireland; these have been classified as discontinued operations.

2. EBIT growth at constant exchange rates.

3. Growth below EBIT is at actual exchange rates.

4. Central Activities comprise costs of central corporate functions.

5. Discontinuing activities include UK account processing, some UK hosted database activities, UK mortgage software activities and other smaller discontinuing activities (principally in EMEA/Asia Pacific).

6. EBIT margin is for continuing activities only.

See Appendix 1 for analysis of revenue and EBIT by business segment.

See Appendix 2 for definitions of non-GAAP measures.

Business review

North America

Total revenue from continuing activities in North America was US$2,092m, up 10%, with organic revenue growth of 6%. The difference relates primarily to the acquisitions of Mighty Net (acquired September 2010) and Medical Present Value (acquired June 2011).

Credit Services

Total revenue growth was 10% and organic revenue growth was 7%, our strongest performance in four years. In consumer information, we benefited from steady recovery in lending activity and from the introduction of new sources of data and products to monitor credit risk. Combined, this drove volume growth in prospecting, origination and customer management activities. Business information performed strongly, with further adoption of our recent product and technology introductions, which have been well-received in the marketplace. We further extended our position in new customer segments, with good growth in the automotive vertical, and we saw good progress in healthcare payments, as our clients adopt new analytical tools such as scoring and we secured major new wins amongst hospitals and physician practices.

Decision Analytics

We delivered strong growth in Decision Analytics as the buying cycle for new software and analytical tools continues to unfold in response to new regulatory requirements for lenders. Total and organic revenue growth was 14%, revenue benefited as we launched our next-generation software modules, and as we further expanded our fraud prevention range.

Marketing Services

Total and organic revenue growth was 8%. There was good growth across Experian's digital platforms during the year as marketers continue to shift spend to targeted digital marketing tools. Growth in the year primarily reflected higher email volumes and new business wins for the supply of contact data. There was also further development of our digital advertising services, which delivered very strong growth from a low base.

Interactive

Total revenue growth was 10%, with organic revenue growth of 3%. This reflected growth across our core credit reference and identity protection brands, improvement in retention rates and growth across the white-label (affinity) channel. Together, these helped to offset a decline in subscribers for the legacy brand, freecreditreport.com.

For continuing activities, North America EBIT was US$658m, up 18%. EBIT margin was 31.5%, an increase of 230 basis points year-on-year, reflecting positive operating leverage across all areas of activity.

Latin America

Performance in Latin America goes from strength to strength. Total revenue from continuing activities was US$961m, up 31% at constant exchange rates, with organic revenue growth of 23%. The difference relates to the acquisitions of Virid Interatividade Digital (Virid) (acquired July 2011) and Computec (completed November 2011).

Credit Services

Total revenue growth was 28%, at constant exchange rates, while organic revenue growth was 23%. Both consumer information and business information activities in Brazil performed strongly, benefiting from new data supply agreements, take-up of new premium products, further penetration of the small and medium enterprise sector and good progress across new customer segments such as telecommunications. Authentication revenue grew exceptionally strongly in the year, as the Brazilian government extended its programme for businesses to use digital certificates to identify themselves in business-to-government interactions.

Decision Analytics

We delivered good progress at Decision Analytics with total and organic revenue growth of 70%. Our business is benefiting as we leverage our credit bureau footprint in Brazil, with new contract wins from major Brazilian banks during the year. We also saw good progress in other Latin American markets, including Argentina and Mexico.

Marketing Services

At Marketing Services, total revenue more than doubled, including first-time contributions from the acquisition of the Virid email marketing business and Computec's marketing-related activities. Organic revenue growth was 8%.

For Latin America, EBIT grew 34% at constant exchange rates to US$320m. Margins increased by 80 basis points to 33.3%. Margins benefited from strong positive operating leverage in Credit Services in Brazil, offset by organic growth investments in other areas and adverse mix due to the first time contribution of Computec.

UK and Ireland

In the UK and Ireland, revenue from continuing activities was US$824m, up 10% at constant exchange rates. Organic revenue growth was 8%. The acquisition contribution relates to LM Group (acquired July 2011), 192business (completed February 2012), and Garlik (acquired December 2011).

Credit Services

Total revenue growth was 4% at constant exchange rates, while organic revenue growth was 1%. We were pleased to return to growth during the year, as we benefited from some stabilisation in lending activity, new client wins in the financial services sector and growth across non-financial verticals such as telecommunications and utilities.

Decision Analytics

Decision Analytics performed well, with total revenue growth at constant exchange rates of 11% and organic revenue growth of 10%. We benefited from the adoption of customer management tools by telecommunications and utilities clients, and further penetration of our authentication and fraud prevention tools within the public sector.

Marketing Services

Total revenue growth at constant exchange rates was 5%, while organic revenue growth was 1%. While there was good progress across digital marketing platforms such as email marketing, market conditions were fairly soft and demand for data services was relatively weak.

Interactive

We were delighted by growth at Interactive, where total revenue growth was 31% at constant exchange rates, with organic revenue growth of 30%. We benefited from a strong performance at CreditExpert, following strong market acceptance of our bundled product, which combines reports and scores. We also benefited from improved lifetime value, as we continue to focus on delivering more to the customer.

For the UK and Ireland, EBIT from continuing activities was US$227m, up 4% at constant exchange rates. The EBIT margin was 27.5% (2011 29.3%), affected by the low revenue growth environment for Credit Services and Marketing Services and adverse acquisition mix.

EMEA/Asia Pacific

Total revenue from continuing activities in EMEA/Asia Pacific was US$608m, up 17% at constant exchange rates, with organic revenue growth of 7%. The difference in part relates to the move to a majority holding in DP Information in Singapore (April 2011).

Credit Services

Total revenue growth was 11%, at constant exchange rates, with organic revenue growth of 3%. There was a robust performance across our credit bureaux, despite difficult market conditions in the region. There were also strong contributions from our business information bureaux in China and Singapore.

Decision Analytics

Total and organic revenue, at constant exchange rates, was down 7% amid weak conditions across the Eurozone which led to some project deferrals. Growth across Asia Pacific and emerging European countries helped to offset challenging conditions elsewhere in Europe.

Marketing Services

We delivered strong growth in Marketing Services, with total revenue growth at constant exchange rates of 40%, and organic revenue growth of 22%. The strength of our performance reflected new client wins for targeted digital marketing products, and exceptionally strong growth in email marketing volumes during the year.

For EMEA/Asia Pacific, EBIT from continuing activities was US$44m, down 16% at constant exchange rates. EBIT margin was 7.2% (2011: 10.4%). The decline in EBIT was due to increased investment in the Australian bureau development, negative operating leverage in Decision Analytics and a one-off charge in relation to investment in a new sales structure in EMEA.

Group financial review

Balance sheet

At 31 March 2012, net assets and total equity amounted to US$2,931m (2011: US$2,707m), equivalent to US$2.96 per share (2011: US$2.74). The increase in total equity of US$224m includes actuarial gains of US$7m in respect of defined benefit pension plans and is after currency translation losses of US$64m, mainly as a result of the weakening of the Brazilian real against the US dollar. These items are shown net of related tax in the Group statement of comprehensive income.

Cash flow, funding and net debt

Experian generated good cash flow in the year with operating cash flow of US$1,124m (2011: US$975m) and a cash flow conversion of 96% (2011: 98%). Cash flow conversion is defined as operating cash flow expressed as a percentage of EBIT from continuing operations and a reconciliation of cash generated from operations, as reported in the Group cash flow statement on page 22, to operating cash flow as reported in the cash flow summary table (Appendix 4) is given in note 17 to the financial statements.

As indicated in the cash flow summary table, free cash flow in the year ended 31 March 2012 was US$889m (2011: US$742m). The net cash outflow in the year of US$182m (2011: inflow of US$458m) is after acquisition spend of US$787m (2011: US$301m) and equity dividends of US$290m (2011: US$251m).

During the course of the year, new bilateral borrowing facilities of US$617m were arranged, with a spread of maturity dates.

At 31 March 2012, net debt was US$1,818m (2011: US$1,501m) and undrawn committed borrowing facilities totalled US$2,147m (2011: US$1,700m). At 31 March 2012, the adjusted net debt/EBITDA ratio, including the value of the Serasa put option at that date of US$1,092m, was 2.0 times.

Exceptional items - continuing operations

Year ended 31 March	2012	2011
	US$m	US$m
Gain/(loss) on disposal of businesses	8	(21)
Interest income on legacy tax balances	4	-
Gain in respect of defined benefit pension plan	-	29
Restructuring costs	-	(10)
Total exceptional items	12	(2)

The gain on disposal of businesses in the year related to a number of small disposals of businesses, principally the disposal of an investment classified as available for sale at 31 March 2011.

Net interest expense

In the year ended 31 March 2012, the net interest expense was US$47m (2011: US$71m), after crediting US$11m (2011: US$6m) in respect of the difference between the expected return on pension assets and interest recognised on pension liabilities. We have continued to benefit from the environment of low global interest rates and our strong cash flow performance.

Tax

The effective rate of tax for the year based on Benchmark PBT was 24.3% (2011: 21.5%). This rate is defined as the total tax charge reported in the Group income statement, adjusted for the tax impact of non-Benchmark items, divided by Benchmark PBT. The increase reflects a larger portion of Benchmark PBT from higher tax rate jurisdictions. In the year ended 31 March 2012, a one-off tax credit of US$268m has been recognised on the determination of certain liabilities in respect of historic positions and the further utilisation of tax losses. In the year ended 31 March 2011, a one-off tax credit of US$37m was recognised in respect of the utilisation of tax losses. These amounts have been excluded from the calculation of the effective rate of tax based on Benchmark PBT in view of their size and nature.

Earnings per share

Basic earnings per share were 66.2 US cents (2011: 57.9 US cents). Basic earnings for the year included a loss per share of 0.6 US cents (2011: earnings of 8.5 US cents) in respect of discontinued operations. Benchmark earnings per share increased to 78.9 US cents from 66.9 US cents last year.

At 31 March 2012, Experian had some 1,029m shares in issue of which some 40m were held by employee trusts and in treasury. Accordingly the number of shares to be used for the purposes of calculating basic earnings per share from 31 March 2012 is 989m. Any issues and purchases of shares after 31 March 2012 will result in an amendment to that figure.

Foreign exchange

The principal exchange rates used to translate revenue and EBIT in the year are.

	2012	2011	Strengthened against the US dollar
Sterling : US dollar	1.60	1.55	3.2%
US dollar : Brazilian real	1.70	1.73	1.7%
Euro : US dollar	1.38	1.32	4.5%

The effect of these exchange rate changes on the results for the year is to increase reported revenue by US$60m and EBIT by US$9m.

The principal exchange rates used to translate assets and liabilities at the year end are:

	2012	2011
Sterling : US dollar	1.60	1.60
US dollar : Brazilian real	1.82	1.63
Euro : US dollar	1.33	1.42

Comparative financial information

As a consequence of the agreement to dispose of the Group's comparison shopping and lead generation businesses, these activities are now classified as discontinued in accordance with the definition of discontinued operations set out in IFRS 5 and the comparative information given within this report has been re-presented as appropriate.

Appendices

1. Revenue and EBIT by business segment

Year ended 31 March	2012 US$m	2011¹ US$m	Total growth²	Organic growth²
Year ended 31 March	2012 US$m	2011¹ US$m	%	%

Revenue
Credit Services	2,133	1,812	16	12
Decision Analytics	476	434	8	8
Marketing Services	947	791	17	9
Interactive	929	822	13	7
Total - continuing activities	4,485	3,859	15	10
Discontinuing activities³	2	26	n/a
Total	4,487	3,885	14

EBIT
Credit Services	728	609	18
Decision Analytics	107	116	(10)
Marketing Services	146	126	15
Interactive	268	206	31
Total business segments	1,249	1,057	17
Central Activities	(74)	(66)	n/a
Total - continuing activities	1,175	991	18
Discontinuing activities³	-	-	n/a
Total	1,175	991	18

EBIT margin⁴
Credit Services	34.1%	33.6%
Decision Analytics	22.5%	26.7%
Marketing Services	15.4%	15.9%
Interactive	28.8%	25.1%
Total EBIT margin⁴	26.2%	25.7%

1. 2011 restated to exclude comparison shopping and lead generation businesses in Interactive; these have been classified as discontinued operations.

2. Growth at constant exchange rates.

3. Discontinuing activities include UK account processing, some UK hosted database activities, UK mortgage software activities and other smaller discontinuing activities (principally in EMEA/Asia Pacific).

4. EBIT margin is for continuing activities only.

2. Use of non-GAAP financial information

Experian has identified certain measures that it believes will assist understanding of the performance of the Group. As these measures are not defined under IFRS, they may not be directly comparable with other companies' adjusted measures. The non-GAAP measures are not intended to be a substitute for, or superior to, any IFRS measures of performance but management has included them as these are considered to be important comparables and key measures used within the business for assessing performance. Such non-GAAP measures that are included within the Group's statutory financial statements are detailed in note 4 to the financial statements. Further non-GAAP measures and reconciliations of those measures are set out below.

Earnings before interest, tax, depreciation and amortisation ('EBITDA'): EBITDA is defined as profit before amortisation of acquisition intangibles, acquisition expenses, goodwill impairments, adjustments to contingent consideration, charges in respect of the demerger-related equity incentive plans, exceptional items, net finance costs, tax, discontinued operations, depreciation and other amortisation. It includes the Group's share of continuing associates' pre-tax results.

Discontinuing activities: Experian defines discontinuing activities as businesses sold, closed or identified for closure during a financial year. These are treated as discontinuing activities for both revenue and EBIT purposes. Prior periods, where shown, are restated to disclose separately the results of discontinuing activities. This financial measure differs from the definition of discontinued operations set out in IFRS 5, which defines a discontinued operation as a component of an entity that has either been disposed of, or is classified as held for sale, and is: (i) a separate major line of business or geographical area of operations; (ii) part of a single plan to dispose of a major line of business or geographical area of operations; or (iii) a subsidiary acquired exclusively with a view to resale.

Continuing activities: Businesses trading at 31 March 2012 that have not been disclosed as discontinuing activities are treated as continuing activities.

Total growth: This is the year-on-year change in the performance of Experian's activities. Total growth at constant exchange rates removes the translational foreign exchange effects arising on the consolidation of Experian's activities.

Organic growth: This is the year-on-year change in the revenue of continuing activities, at constant transactional and translation exchange rates, excluding acquisitions (other than affiliate credit bureaux) until the first anniversary date of consolidation.

Constant exchange rates: In order to illustrate its organic performance, Experian discusses its results in terms of constant exchange rate growth, unless otherwise stated. This represents growth calculated as if the exchange rates used to determine the results had remained unchanged from those used in the previous year.

Free cash flow: Free cash flow is derived from operating cash flow by excluding net interest and tax paid together with dividends paid to non-controlling interests. Operating cash flow is defined in note 4 to the financial statements.

3. Income statement analysis - continuing operations
Year ended 31 March	2012			2011
	Benchmark	Non-benchmark¹	Total	Benchmark	Non-benchmark¹	Total
	US$m	US$m	US$m	US$m	US$m	US$m
Revenue	4,487	-	4,487	3,885	-	3,885
Labour costs	(1,694)	(5)	(1,699)	(1,486)	10	(1,476)
Data and information technology costs	(400)	-	(400)	(308)	(1)	(309)
Depreciation and amortisation	(312)	(122)	(434)	(283)	(102)	(385)
Marketing and customer acquisition costs	(405)	-	(405)	(369)	-	(369)
Other operating charges	(499)	2	(497)	(446)	(29)	(475)
Total operating expenses	(3,310)	(125)	(3,435)	(2,892)	(122)	(3,014)
Operating profit/(loss)	1,177	(125)	1,052	993	(122)	871
Share of losses of associates	(2)	-	(2)	(2)	-	(2)
EBIT from continuing operations	1,175			991
Non-benchmark items		(125)			(122)
Profit/(loss) before net finance costs and tax	1,175	(125)	1,050	991	(122)	869
Net finance costs	(47)	(314)	(361)	(71)	(142)	(213)
Profit/(loss) before tax	1,128	(439)	689	920	(264)	656
Tax credit/(charge)	(274)	309	35	(198)	80	(118)
Profit/(loss) after tax from continuing operations	854	(130)	724	722	(184)	538

Attributable to:
Owners of Experian plc	780	(119)	661	670	(174)	496
Non-controlling interests	74	(11)	63	52	(10)	42
Profit/(loss) after tax from continuing operations	854	(130)	724	722	(184)	538

	US cents	US cents	US cents	US cents	US cents	US cents
Earnings/(loss) per share - basic	78.9	(12.1)	66.8	66.9	(17.5)	49.4

	%	%	%	%	%	%
Effective rate of tax	24.3	70.4	(5.1)	21.5	30.3	18.0

1. These include a credit for exceptional items of US$12m (2011: charge US$2m) and charges of US$451m (2011: US$262m) for total adjustments made to derive Benchmark PBT, full details of which are included in note 8 to the Group financial statements.

4. Cash flow summary
	2012	2011
Year ended 31 March	US$m	US$m
EBIT from continuing operations	1,175	991
Depreciation and amortisation	312	283
Loss on sale of fixed assets	4	5
Capital expenditure	(453)	(369)
Sale of property, plant and equipment	3	7
Decrease in working capital	20	4
Loss retained in associate	3	3
Charge in respect of equity incentive plans within Benchmark PBT	60	51
Operating cash flow	1,124	975
Net interest paid	(57)	(92)
Tax paid	(107)	(85)
Dividends paid to non-controlling interests	(71)	(56)
Free cash flow	889	742
Net cash outflow from exceptional items	(5)	(20)
Acquisitions	(787)	(301)
Purchase of investments	(1)	(3)
Disposal of investment in FARES - discontinued operations	-	279
Disposal of available for sale financial assets	12	-
Disposal of businesses - continuing operations	-	12
Equity dividends paid	(290)	(251)
Net cash (outflow)/inflow	(182)	458
Net share purchases	(167)	(349)
New borrowings and other financing related cash flows	187	72
Net (decrease)/increase in cash and cash equivalents - continuing operations	(162)	181
Net (decrease)/increase in cash and cash equivalents - discontinued operations	(1)	52
Net (decrease)/increase in cash and cash equivalents	(163)	233
Cash and cash equivalents at 1 April	408	163
Foreign exchange movements on cash and cash equivalents	9	12
Cash and cash equivalents at 31 March	254	408

5. Reconciliation of net debt
	2012	2011
Year ended 31 March	US$m	US$m
At 1 April	1,501	1,627
Net cash outflow/(inflow) - as reported in the cash flow summary	182	(458)
Net share purchases	167	349
Foreign exchange and other	(32)	(17)
At 31 March	1,818	1,501

6. Reconciliation of depreciation and amortisation
	2012	2011
Year ended 31 March	US$m	US$m
As reported in the Group income statement	434	385
Less: amortisation of acquisition intangibles	(122)	(99)
Less: exceptional asset write-off	-	(3)
As reported in the cash flow summary	312	283

7. Growth rates before and after comparison shopping and lead generation exclusion
Year ended 31 March 2012	As reported, growth %			Pre exclusion, growth %
Year ended 31 March 2012	Total at actual rates	Total at constant rates	Organic growth	Total at actual rates	Total at constant rates	Organic growth
Revenue
North America Interactive		10	3		-	(4)
UK Interactive		31	30		26	25
Global Interactive		13	7		3	(1)
North America continuing activities	10	10	6	5	5	2
UK & Ireland continuing activities	13	10	8	12	9	7

Global continuing activities	16	15	10	13	12	7

EBIT
Global Interactive		31			11
North America continuing activities		18			11
UK & Ireland continuing activities		4			5

Global continuing activities		18			14

Benchmark PBT	23			18
Benchmark EPS	18			14

Group income statement

for the year ended 31 March 2012

	Notes		2012		2011
					(Re-presented)
					(Note 2)
			US$m		US$m
Revenue	5		4,487		3,885
Labour costs			(1,699)		(1,476)
Data and information technology costs			(400)		(309)
Depreciation and amortisation			(434)		(385)
Marketing and customer acquisition costs			(405)		(369)
Other operating charges			(497)		(475)
Total operating expenses			(3,435)		(3,014)
Operating profit			1,052		871

Interest income				79	69
Finance expense				(440)	(282)

Net finance costs	9(a)		(361)		(213)

Share of post-tax losses of associates			(2)		(2)
Profit before tax	5		689		656
Group tax credit/(charge)	10		35		(118)
Profit after tax for the financial year from continuing operations			724		538

(Loss)/profit for the financial year from discontinued operations	11(a)		(6)		85
Profit for the financial year			718		623

Attributable to:
Owners of Experian plc			655		581
Non-controlling interests			63		42
Profit for the financial year			718		623


			US cents		US cents
Earnings per share
Basic	12		66.2		57.9
Diluted	12		65.1		56.7

Earnings per share from continuing operations
Basic	12		66.8		49.4
Diluted	12		65.7		48.4


Full year dividend per share		13	32.0		28.0

Group statement of comprehensive income

for the year ended 31 March 2012

	2012	2011
	US$m	US$m
Profit for the financial year	718	623
Other comprehensive income:
Actuarial gains - defined benefit pension plans	7	77
Fair value gains - available for sale financial assets	-	5
Currency translation differences	(64)	142
Total other comprehensive income for the financial year, net of tax (note 10)	(57)	224
Total comprehensive income for the financial year, net of tax	661	847

Attributable to:
Owners of Experian plc	614	787
Non-controlling interests	47	60
Total comprehensive income for the financial year, net of tax	661	847

Non-GAAP measures
Reconciliation of profit before tax to Benchmark PBT
for the year ended 31 March 2012

	Notes	2012	2011
			(Re-presented)
			(Note 2)
		US$m	US$m
Profit before tax	5	689	656
Exceptional items - within operating profit	8(a)	(8)	2
Exceptional items - within net finance costs	8(a)	(4)	-
Amortisation of acquisition intangibles	8(b)	122	99
Acquisition expenses	8(b)	9	8
Adjustment to the fair value of contingent consideration	8(b)	(3)	-
Charges in respect of the demerger-related equity incentive plans	8(b)	5	13
Financing fair value remeasurements	8(b)	318	142
Benchmark PBT - continuing operations	5	1,128	920


		US cents	US cents
Benchmark earnings per share from continuing operations
Basic	12	78.9	66.9
Diluted	12	77.5	65.5

Group balance sheet

at 31 March 2012

	Notes	2012	2011
		US$m	US$m
Non-current assets
Goodwill		4,163	3,761
Other intangible assets	14	1,582	1,374
Property, plant and equipment	14	463	450
Investments in associates		13	27
Deferred tax assets		320	159
Retirement benefit assets	15(a)	130	106
Trade and other receivables		13	17
Available for sale financial assets		37	42
Other financial assets		123	45
		6,844	5,981
Current assets
Inventories		11	14
Trade and other receivables		910	901
Current tax assets		10	8
Other financial assets		7	20
Cash and cash equivalents	18	254	408
		1,192	1,351
Assets classified as held for sale	23	118	-
		1,310	1,351
Current liabilities
Trade and other payables		(1,210)	(1,180)
Loans and borrowings	18	(13)	(6)
Current tax liabilities		(56)	(132)
Provisions		(38)	(47)
Other financial liabilities	20	(1,098)	(13)
		(2,415)	(1,378)
Liabilities classified as held for sale	23	(80)	-
		(2,495)	(1,378)
Net current liabilities		(1,185)	(27)
Total assets less current liabilities		5,659	5,954
Non-current liabilities
Trade and other payables		(43)	(21)
Loans and borrowings	18	(2,179)	(1,921)
Deferred tax liabilities		(379)	(280)
Retirement benefit obligations	15(a)	(53)	(51)
Provisions		(10)	(19)
Other financial liabilities	20	(64)	(955)
		(2,728)	(3,247)
Net assets		2,931	2,707

Equity
Called up share capital	21	102	102
Share premium account	21	1,471	1,460
Retained earnings		17,350	17,029
Other reserves		(16,151)	(16,045)
Attributable to owners of Experian plc		2,772	2,546
Non-controlling interests		159	161
Total equity		2,931	2,707

Group statement of changes in total equity

for the year ended 31 March 2012

	Called up share capital (Note 21)	Share premium account (Note 21)	Retained earnings	Other reserves	Attributable to owners of Experian plc	Non-controlling interests	Total equity
	US$m	US$m	US$m	US$m	US$m	US$m	US$m
At 1 April 2011	102	1,460	17,029	(16,045)	2,546	161	2,707
Comprehensive income:
Profit for the financial year	-	-	655	-	655	63	718
Total other comprehensive income	-	-	7	(48)	(41)	(16)	(57)
Total comprehensive income	-	-	662	(48)	614	47	661
Transactions with owners:
Employee share incentive plans:
- value of employee services	-	-	65	-	65	-	65
- proceeds from shares issued on vesting	-	11	-	-	11	-	11
- exercise of share options and awards	-	-	(110)	166	56	-	56
- tax credit relating to employee share incentive plans	-	-	20	-	20	-	20
Purchase of own shares by employee trusts - for employee share incentive plans	-	-	-	(224)	(224)	-	(224)
Other payments for employee share incentive plans	-	-	(7)	-	(7)	-	(7)
Liability for put option over non-controlling interests	-	-	(9)	-	(9)	-	(9)
Non-controlling interests arising on corporate transactions	-	-	-	-	-	23	23
Transactions with non-controlling interests	-	-	(10)	-	(10)	(1)	(11)
Dividends paid during the financial year	-	-	(290)	-	(290)	(71)	(361)
Transactions with owners	-	11	(341)	(58)	(388)	(49)	(437)
At 31 March 2012	102	1,471	17,350	(16,151)	2,772	159	2,931

for the year ended 31 March 2011

	Called up share capital (Note 21)	Share premium account (Note 21)	Retained earnings	Other reserves	Attributable to owners of Experian plc	Non-controlling interests	Total equity
	US$m	US$m	US$m	US$m	US$m	US$m	US$m
At 1 April 2010	102	1,453	16,591	(15,860)	2,286	151	2,437
Comprehensive income:
Profit for the financial year	-	-	581	-	581	42	623
Total other comprehensive income	-	-	82	124	206	18	224
Total comprehensive income	-	-	663	124	787	60	847
Transactions with owners:
Employee share incentive plans:
- value of employee services	-	-	64	-	64	-	64
- proceeds from shares issued on vesting	-	7	-	-	7	-	7
- exercise of share options and awards	-	-	(37)	86	49	-	49
- tax credit relating to employee share incentive plans	-	-	20	-	20	-	20
Purchase of own shares held as treasury shares	-	-	-	(334)	(334)	-	(334)
Purchase of own shares by employee trusts - for employee share incentive plans	-	-	-	(61)	(61)	-	(61)
Liability for put option over non-controlling interests	-	-	(21)	-	(21)	-	(21)
Non-controlling interests arising on business combinations	-	-	-	-	-	6	6
Dividends paid during the financial year	-	-	(251)	-	(251)	(56)	(307)
Transactions with owners	-	7	(225)	(309)	(527)	(50)	(577)
At 31 March 2011	102	1,460	17,029	(16,045)	2,546	161	2,707

Group cash flow statement

for the year ended 31 March 2012

	Notes	2012	2011
			(Re-presented)
			(Note 2)
		US$m	US$m
Cash flows from operating activities
Cash generated from operations	16(a)	1,539	1,311
Interest paid		(79)	(106)
Interest received		22	14
Dividends received from associates		1	1
Tax paid	16(d)	(107)	(85)
Net cash inflow from operating activities - continuing operations		1,376	1,135
Net cash inflow from operating activities - discontinued operations	11(b)	2	57
Net cash inflow from operating activities		1,378	1,192

Cash flows from investing activities
Purchase of property, plant and equipment		(84)	(69)
Purchase of other intangible assets	16(e)	(369)	(300)
Sale of property, plant and equipment		3	7
Purchase of available for sale financial assets		(1)	(3)
Disposal of investments in associates - discontinued operations	11(b)	-	279
Disposal of available for sale financial assets	8(a)	12	-
Acquisition of subsidiaries, net of cash acquired		(746)	(296)
Disposal of subsidiaries - continuing operations	8(a)	-	12
Net cash flows used in investing activities - continuing operations		(1,185)	(370)
Net cash flows used in investing activities - discontinued operations	11(b)	(3)	(5)
Net cash flows used in investing activities		(1,188)	(375)

Cash flows from financing activities
Issue of ordinary shares	16(g)	11	7
Receipt of share option proceeds	16(g)	54	50
Purchase of own shares held as treasury shares	16(g)	-	(336)
Purchase of own shares by employee trusts - for employee share incentive plans	16(g)	(232)	(70)
Other payments for employee share incentive plans		(7)	-
Payments to acquire non-controlling interests		(12)	-
New borrowings		179	643
Repayment of borrowings		-	(593)
Capital element of finance lease rental payments		(4)	(5)
Net payments on derivative financial instruments held to manage currency profile		-	(15)
Net receipts from equity swaps		5	13
Receipt from bank deposit		14	29
Dividends paid		(361)	(307)
Net cash flows used in financing activities		(353)	(584)

Net (decrease)/increase in cash and cash equivalents - continuing operations		(163)	233

Cash and cash equivalents at 1 April		408	163

Exchange and other movements on cash and cash equivalents		9	12

Cash and cash equivalents at 31 March		254	408

Notes to the financial statements

for the year ended 31 March 2012

1. Corporate information and basis of preparation

Experian plc (the 'Company'), which is the ultimate parent company of the Experian group of companies ('Experian' or the 'Group'), is incorporated and registered in Jersey as a public company limited by shares and is resident in Ireland. The Company's ordinary shares are traded on the London Stock Exchange's Regulated Market (Premium Listing).

The financial information set out in this preliminary announcement does not constitute the Group's statutory financial statements, which comprise the annual report and audited financial statements, for the years ended 31 March 2012 or 31 March 2011 but is derived from the statutory financial statements for the year ended 31 March 2012. The Group's statutory financial statements for the year ended 31 March 2012 will be made available to shareholders in June 2012 and delivered to the Jersey Registrar of Companies in due course. The auditors have reported on those financial statements and have given an unqualified report which does not contain a statement under Article 111(2) or Article 111(5) of the Companies (Jersey) Law 1991. The Group's statutory financial statements for the year ended 31 March 2011 have been delivered to the Jersey Registrar of Companies. The auditors reported on those financial statements and gave an unqualified report which did not contain a statement under Article 111(2) or Article 111(5) of the Companies (Jersey) Law 1991.

The Group's statutory financial statements for the year ended 31 March 2012 have been:

· prepared on a basis consistent with the statutory financial statements for the year ended 31 March 2011 and in accordance with International Financial Reporting Standards ('IFRS' or 'IFRSs') and International Financial Reporting Interpretations Committee ('IFRIC') interpretations;

· prepared under the historical cost convention, as modified for the revaluation of available for sale financial assets and certain other financial assets and financial liabilities including derivatives' and

· presented in US dollars, the most representative currency of the Group's operations, and rounded to the nearest million.

The principal exchange rates used in preparing the Group's statutory financial statements are set out in note 7. Other than those disclosed in this preliminary announcement, no significant events impacting the Group have occurred between 31 March 2012 and 9 May 2012 when this preliminary announcement was approved for issue.

This preliminary announcement has been prepared in accordance with the Listing Rules of the UK Financial Services Authority, using the accounting policies applied in the preparation of the Group's statutory financial statements for the year ended 31 March 2012. Those policies were published in full in the Group's statutory financial statements for the year ended 31 March 2011 and are available on a corporate website, at www.experianplc.com/annualreport.

2. Comparative information

Experian has agreed to divest the Group's comparison shopping and lead generation businesses and it is anticipated that this transaction will be completed in the first half of the financial year ending 31 March 2013. In accordance with the requirements of IFRS 5, the assets and liabilities of these businesses at 31 March 2012 are classified as held for sale and the results and cash flows of the businesses for the year ended 31 March 2011 have been reclassified as discontinued. The results of the North America and the UK and Ireland operating segments (shown within note 5(a)) and the Interactive business segment (shown within note 6) have been re-presented accordingly.

Except as indicated above, the Group's statutory financial statements have been prepared on a basis consistent with that reported for the year ended 31 March 2011.

Notes to the financial statements (continued)

for the year ended 31 March 2012

3. Recent accounting developments

The following accounting standards, amendments and interpretations issued by the International Accounting Standards Board and the IFRIC are effective for the Group's accounting periods beginning on or after 1 April 2011:

· Improvements to IFRSs (April 2010)

· Amendment to IAS 24 (revised) 'Related party disclosures'

· Amendment to IFRIC 14 'Prepayment of a minimum funding requirement'

· IFRIC 19 'Extinguishing financial liabilities with equity instruments'

These accounting standards, amendments and interpretations have had no material effect on the results or financial position of the Group disclosed within these financial statements.

Other new or revised accounting standards and interpretations issued by 31 March 2012 but not yet effective include those listed below. Their impact will be fully considered in due course. In the case of IAS 19 there will be a restriction on the expected return recognised on pension plan assets within interest income.

· Improvements to IFRSs (April 2011)

· Amendments to IFRS 7 'Financial instruments : disclosures'

· IFRS 9 'Financial instruments : classification and measurement'

· IFRS 10 'Consolidated financial statements'

· IFRS 11 'Joint arrangements'

· IFRS 12 'Disclosure of interests in other entities'

· IFRS 13 'Fair value remeasurements'

· Amendment to IAS 1 'Financial statements presentation'

· Amendment to IAS 12 'Income taxes'

· Amendment to IAS 19 (revised) 'Employee benefits'

· IAS 27 (revised) 'Separate financial statements'

· IAS 28 (revised) 'Associate and joint ventures'

· Amendment to IAS 32 'Financial instruments: presentation', on offsetting financial assets and financial liabilities

Notes to the financial statements (continued)

for the year ended 31 March 2012

4. Use of non-GAAP measures in the Group's statutory financial statements

The Group has identified certain measures that it believes will assist understanding of the performance of the business. The measures are not defined under IFRS and they may not be directly comparable with other companies' adjusted measures. The non-GAAP measures are not intended to be a substitute for, or superior to, any IFRS measures of performance but management has included them as they consider them to be important comparables and key measures used within the business for assessing performance.

The following are the key non-GAAP measures identified by the Group and used in the Group's statutory financial statements:

Benchmark profit before tax ('Benchmark PBT')

Benchmark PBT is defined as profit before amortisation of acquisition intangibles, acquisition expenses, goodwill impairments, adjustments to contingent consideration, charges in respect of the demerger-related equity incentive plans, exceptional items, financing fair value remeasurements, tax and discontinued operations. It includes the Group's share of continuing associates' pre-tax results.

Earnings before interest and tax ('EBIT')

EBIT is defined as profit before amortisation of acquisition intangibles, acquisition expenses, goodwill impairments, adjustments to contingent consideration, charges in respect of the demerger-related equity incentive plans, exceptional items, net finance costs, tax and discontinued operations. It includes the Group's share of continuing associates' pre-tax results.

Benchmark earnings

Benchmark earnings represents Benchmark PBT less attributable tax and non-controlling interests. Benchmark earnings attributable to non-controlling interests represents that portion of Benchmark earnings that relate to non-controlling interests. Benchmark PBT less attributable tax is designated as overall benchmark earnings. The attributable tax for the purposes of determining benchmark earnings excludes significant tax credits and charges arising in the year which, in view of their size or nature, are not comparable with previous periods together with tax arising on exceptional items and on total adjustments made to derive Benchmark PBT.

Benchmark earnings per share ('Benchmark EPS')

Benchmark EPS represents Benchmark earnings divided by a weighted average number of shares, and is disclosed to indicate the underlying profitability of the Group.

Exceptional items

The separate reporting of non-recurring exceptional items gives an indication of the Group's underlying performance. Exceptional items are those arising from the profit or loss on disposal of businesses, closure costs of major business units or costs of significant restructuring programmes. All other restructuring costs are charged against EBIT in the segments in which they are incurred.

Operating cash flow

Operating cash flow is calculated as cash generated from operations adjusted for outflows in respect of acquisition expenses, the purchase and disposal of property, plant and equipment and other intangible assets, and adding dividends from continuing associates but excluding any cash inflows and outflows in respect of exceptional items. It is reconciled to cash generated from operations in note 17.

Operating cash flow is defined as EBIT from continuing operations, plus depreciation, amortisation and charges in respect of equity incentive plans within Benchmark PBT, less capital expenditure net of disposal proceeds and further adjusted for changes in working capital and profit or loss retained in continuing associates.

Net debt

Net debt is calculated as total debt less cash and cash equivalents and other highly liquid bank deposits with original maturities greater than three months. Total debt includes loans and borrowings (and the fair value of derivatives hedging loans and borrowings), overdrafts and obligations under finance leases. Accrued interest is excluded from net debt.

Notes to the financial statements (continued)

for the year ended 31 March 2012

5. Segment information

(a) Income statement

	Continuing operations²
	North America		Latin America	UK & Ireland		EMEA/ Asia Pacific³			Total operating segments		Central Activities		Total continuing operations
Year ended 31 March 2012	US$m		US$m	US$m		US$m			US$m		US$m		US$m
Revenue from external customers¹	2,092		961	825		609			4,487		-		4,487

Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	658		320	227		44			1,249		(74)		1,175
Net interest (note 9(b))	-		-	-		-			-		(47)		(47)
Benchmark PBT	658		320	227		44			1,249		(121)		1,128
Exceptional items (note 8(a))	-		-	6		2			8		4		12
Amortisation of acquisition intangibles	(32)		(52)	(18)		(20)			(122)		-		(122)
Acquisition expenses	(1)		(3)	(2)		(3)			(9)		-		(9)
Adjustment to the fair value of contingent consideration	-		3	-		-			3		-		3
Charges in respect of the demerger-related equity incentive plans	(2)		-	(2)		-			(4)		(1)		(5)
Financing fair value remeasurements	-		-	-		-			-		(318)		(318)
Profit/(loss) before tax	623		268	211		23			1,125		(436)		689


	Continuing operations²
	North America	Latin America			UK & Ireland		EMEA/ Asia Pacific³	Total operating segments		Central Activities		Total continuing operations
Year ended 31 March 2011	US$m	US$m			US$m		US$m	US$m		US$m		US$m
Revenue from external customers¹	1,905	722			742		516	3,885		-		3,885

Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	556	235			213		53	1,057		(66)		991
Net interest (note 9(b))	-	-			-		-	-		(71)		(71)
Benchmark PBT	556	235			213		53	1,057		(137)		920
Exceptional items (note 8(a))	(5)	-			4		(6)	(7)		5		(2)
Amortisation of acquisition intangibles	(22)	(43)			(18)		(16)	(99)		-		(99)
Acquisition expenses	(2)	(4)			(1)		(1)	(8)		-		(8)
Charges in respect of the demerger-related equity incentive plans	(5)	-			(4)		(1)	(10)		(3)		(13)
Financing fair value remeasurements	-	-			-		-	-		(142)		(142)
Profit/(loss) before tax	522	188			194		29	933		(277)		656
1 Revenue from external customers arose principally from the provision of services. There is no material inter-segment revenue. The analysis by business segment of revenue from external customers is given in note 6. 2 A loss before tax of US$9m (2011: profit of US$142m) arose in respect of discontinued operations. Further information on such operations which comprise the Group's comparison shopping and lead generation businesses in the current year and the Group's comparison shopping and lead generation businesses and FARES in the prior year is given in note 11. The results for the year ended 31 March 2011 have been re-presented in respect of the Group's comparison shopping and lead generation businesses, the results of which were previously reported in the North America and UK & Ireland operating segments. 3 EMEA/Asia Pacific represents all other operating segments.

	2012	2011
		(Re-presented)
		(Note 2)
(b) Revenue by country - continuing operations	US$m	US$m
USA	2,089	1,900
Brazil	900	715
UK	815	733
Other	683	537
	4,487	3,885
1 No single customer accounted for 10% or more of the Group's revenue from external customers in the current or prior year. 2 The Company is resident in Ireland. Revenue with Irish external customers represents less than 1% of the Group's revenue from external customers and accordingly the Group's revenue is primarily attributable to foreign countries.

Notes to the financial statements (continued)

for the year ended 31 March 2012

5. Segment information (continued)

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 6. This is supplemented by voluntary disclosure of the profitability of groups of service lines. For ease of reference, Experian continues to use the term 'business segments' when discussing the results of groups of service lines.

6. Information on business segments (including non-GAAP disclosures)


	Continuing operations³
	Credit Services	Decision Analytics	Marketing Services	Interactive	Total business segments	Central Activities		Total continuing operations
Year ended 31 March 2012	US$m	US$m	US$m	US$m	US$m	US$m		US$m
Revenue from external customers¹	2,133	476	949	929	4,487	-		4,487

Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	728	107	146	268	1,249	(74)		1,175
Net interest (note 9(b))	-	-	-	-	-	(47)		(47)
Benchmark PBT	728	107	146	268	1,249	(121)		1,128
Exceptional items (note 8(a))	-	2	6	-	8	4		12
Amortisation of acquisition intangibles	(72)	(4)	(31)	(15)	(122)	-		(122)
Acquisition expenses	(4)	(1)	(3)	(1)	(9)	-		(9)
Adjustment to the fair value of contingent consideration	-	-	3	-	3	-		3
Charges in respect of the demerger-related equity incentive plans²	-	-	-	-	-	(5)		(5)
Financing fair value remeasurements	-	-	-	-	-	(318)		(318)
Profit/(loss) before tax	652	104	121	252	1,129	(440)		689


	Continuing operations³
	Credit Services	Decision Analytics	Marketing Services	Interactive	Total business segments		Central Activities		Total continuing operations
Year ended 31 March 2011	US$m	US$m	US$m	US$m	US$m		US$m		US$m
Revenue from external customers¹	1,812	436	815	822	3,885		-		3,885

Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	609	119	123	206	1,057		(66)		991
Net interest (note 9(b))	-	-	-	-	-		(71)		(71)
Benchmark PBT	609	119	123	206	1,057		(137)		920
Exceptional items (note 8(a))	(6)	-	(23)	(2)	(31)		29		(2)
Amortisation of acquisition intangibles	(60)	(5)	(27)	(7)	(99)		-		(99)
Acquisition expenses	(5)	-	(2)	(1)	(8)		-		(8)
Charges in respect of the demerger-related equity incentive plans²	-	-	-	-	-		(13)		(13)
Financing fair value remeasurements	-	-	-	-	-		(142)		(142)
Profit/(loss) before tax	538	114	71	196	919		(263)		656
1. Revenue from external customers arose principally from the provision of services. 2. No allocation by business segment is made for charges in respect of the demerger-related equity incentive plans as the underlying data is maintained only to provide an allocation by operating segment. 3. A loss before tax of US$9m (2011: profit of US$142m) arose in respect of discontinued operations. Further information on such operations which comprise the Group's comparison shopping and lead generation businesses in the current year and the Group's comparison shopping and lead generation businesses and FARES in the prior year is given in note 11. The results for the year ended 31 March 2011 have been re-presented in respect of the Group's comparison shopping and lead generation businesses, the results of which were previously reported in the Interactive business segment.

Notes to the financial statements (continued)

for the year ended 31 March 2012

7. Foreign currency

The principal exchange rates used in these financial statements are as follows:

	Average		Closing
	2012	2011	2012	2011	2010

Sterling : US dollar	1.60	1.55	1.60	1.60	1.52
US dollar : Brazilian real	1.70	1.73	1.82	1.63	1.79
Euro : US dollar	1.38	1.32	1.33	1.42	1.35

The results and financial position of Group undertakings whose functional currencies are not US dollars are translated into US dollars as follows:

· Income and expenses are translated at the average exchange rate for the year (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rates on the dates of the transactions);

· Assets and liabilities are translated at the closing exchange rate on the balance sheet date; and

· All resulting exchange differences are recognised in other comprehensive income.

8. Exceptional items and total adjustments made to derive Benchmark PBT - continuing operations

(a) Exceptional items

	2012	2011
	US$m	US$m
(Gain)/loss on disposal of businesses	(8)	21
Interest income arising on legacy tax balances	(4)	-
Gain in respect of defined benefit pension plan	-	(29)
Restructuring costs	-	10
Total exceptional items	(12)	2

Exceptional items by income statement caption:
Labour costs	-	(23)
Data and information technology costs	-	1
Depreciation and amortisation	-	3
Other operating charges	(8)	21
Within operating profit	(8)	2
Within net finance costs	(4)	-
Total exceptional items	(12)	2

The gain on disposal of businesses in the year ended 31 March 2012 related to a number of small disposals of businesses, principally the disposal of an investment classified as available for sale at 31 March 2011. The loss on disposal of businesses in the year ended 31 March 2011 principally related to the completion of a number of small disposals of businesses whose assets and liabilities were classified as held for sale at 31 March 2010. There were related cash inflows of US$12m (2011: US$12m).

Interest income of US$4m arose on the determination of certain legacy tax balances in the year ended 31 March 2012.

The gain of US$29m in respect of the defined benefit pension plan in the year ended 31 March 2011 arose as a consequence of a change by the UK Government to the index required to be used in determining pension increases for benefits accrued in respect of past service (see note 15(e)).

Expenditure of US$10m arose in the year ended 31 March 2011 in connection with the conclusion of the Group's strategic programme of cost efficiency measures.

A reconciliation of total exceptional items to the cash outflow in respect of exceptional items is given in note 16(c).

Notes to the financial statements (continued)

for the year ended 31 March 2012

8. Exceptional items and total adjustments made to derive Benchmark PBT - continuing operations (continued)

(b) Total adjustments made to derive Benchmark PBT

	2012	2011
		(Re-presented)
		(Note 2)
	US$m	US$m
Amortisation of acquisition intangibles	122	99
Acquisition expenses	9	8
Adjustment to the fair value of contingent consideration	(3)	-
Charges in respect of the demerger-related equity incentive plans	5	13
Financing fair value remeasurements (note 9(c))	318	142
Total adjustments made to derive Benchmark PBT	451	262

Adjustments by income statement caption:
Labour costs	5	13
Depreciation and amortisation	122	99
Other operating charges	6	8
Finance expense	318	142
Total adjustments made to derive Benchmark PBT	451	262

On acquisition, specific intangible assets are identified and recognised separately from goodwill and then amortised over their useful economic lives. These include items such as brand names and customer lists, to which value is first attributed at the time of acquisition. The Group has excluded amortisation of these acquisition intangibles from its definition of Benchmark PBT because such a charge is based on judgments about their value and economic life.

IFRS 3 requires that acquisition expenses are charged to the Group income statement. The Group has excluded such costs from its definition of Benchmark PBT as, by their very nature, they bear no relation to the underlying performance of the Group or to the performance of the acquired businesses. These costs are recognised within other operating charges and related cash flows are reported within the net cash inflow from operating activities. Adjustments to contingent consideration are similarly excluded from the definition of Benchmark PBT.

Charges in respect of demerger-related equity incentive plans relate to one-off grants made to senior management and at all staff levels at the time of the demerger, under a number of equity incentive plans. The cost of these one-off grants has been charged to the Group income statement over the five years from demerger in October 2006, but excluded from the definition of Benchmark PBT. The cost of all other grants is being charged to the Group income statement and included in the definition of Benchmark PBT.

An element of the Group's derivatives is ineligible for hedge accounting under IFRS. Gains or losses on these derivatives arising from market movements, together with gains and losses on put options in respect of acquisitions, are credited or charged to financing fair value remeasurements within finance expense in the Group income statement.

Notes to the financial statements (continued)

for the year ended 31 March 2012

9. Net finance costs

	2012	2011
	US$m	US$m
(a) Net finance costs included in Profit before tax
Interest income:
Expected return on pension plan assets	(57)	(56)
Bank deposits and short-term investments	(18)	(13)
Interest income before interest on legacy tax balances	(75)	(69)
Interest income on legacy tax balances	(4)	-
Interest income	(79)	(69)

Finance expense:
Interest expense on pension plan obligations	46	50
Other interest expense	76	90
Interest expense	122	140
Charge in respect of financing fair value remeasurements	318	142
Finance expense	440	282

Net finance costs included in Profit before tax	361	213

(b) Net interest expense included in Benchmark PBT
Interest income before interest on legacy tax balances	(75)	(69)
Interest expense	122	140

Net interest expense included in Benchmark PBT	47	71

(c) Analysis of financing fair value remeasurements
Increase in fair value of put options - principally Serasa	314	139
Financing fair value losses	4	3

Charge in respect of financing fair value remeasurements	318	142

Notes to the financial statements (continued)

for the year ended 31 March 2012

10. Group tax (credit)/charge

(a) Group tax (credit)/charge in the Group income statement

	2012	2011
		(Re-presented)
		(Note 2)
	US$m	US$m
UK tax	(241)	(23)
Non-UK tax	206	141
Group tax (credit)/charge	(35)	118

Profit before tax	689	656
Effective rate of tax based on Profit before tax	(5.1%)	18.0%

(b) Reconciliation of the tax (credit)/charge in the Group income statement to the Benchmark tax charge

	2012	2011
		(Re-presented)
		(Note 2)
	US$m	US$m
Group tax (credit)/charge	(35)	118
One-off tax credit	268	37
Tax attributable to exceptional items	(1)	4
Tax relief on total adjustments made to derive Benchmark PBT	42	39
Tax charge on Benchmark PBT	274	198

Benchmark PBT	1,128	920
Effective rate of tax based on Benchmark PBT	24.3%	21.5%

In the year ended 31 March 2012, a one-off tax credit of US$268m has been recognised on the determination of certain liabilities in respect of historic positions and the further utilisation of tax losses. In the year ended 31 March 2011, a one-off tax credit of US$37m was recognised in respect of the utilisation of tax losses. These amounts have been excluded from the calculation of the effective rate of tax based on Benchmark PBT in view of their size and nature.

(d) Tax recognised in other comprehensive income and directly in equity

In the year ended 31 March 2012, a tax charge of US$2m (2011: US$29m) has been recognised in other comprehensive income, principally relating to actuarial gains on defined benefit pension plans. This amount comprises a current tax credit of US$nil (2011: US$1m) and a deferred tax charge of US$2m (2011: US$30m).

In the year ended 31 March 2012, a tax credit relating to employee share incentive plans of US$20m (2011: US$20m) has been recognised in equity and reported as appropriate within transactions with owners. This amount comprises current tax of US$15m (2011: US$5m) and deferred tax of US$5m (2011: US$15m).

Notes to the financial statements (continued)

for the year ended 31 March 2012

11. Discontinued operations

Experian has agreed to divest the Group's comparison shopping and lead generation businesses, and the results and cash flows of these businesses are accordingly classified as discontinued with comparative figures re-presented. The results and cash flows of First American Real Estate Solutions LLC ('FARES') were reported as discontinued in the year ended 31 March 2011.

(a) Results for discontinued operations

The loss before tax in respect of discontinued operations of US$9m (2011: profit US$142m) comprises a loss of US$9m (2011: profit of US$23m) in respect of the comparison shopping and lead generation businesses and US$nil (2011: profit of US$119m) in respect of FARES. The loss for the financial year in respect of discontinued operations of US$6m (profit of US$85m) comprises US$6m (2011: profit of US$12m) in respect of the comparison shopping and lead generation businesses and US$nil (2011: profit of US$73m) in respect of FARES.

The results of the comparison shopping and lead generation businesses were:

	2012	2011
	US$m	US$m
Revenue	283	354
Labour costs	(44)	(49)
Data and information technology costs	(7)	(8)
Depreciation and amortisation	(32)	(35)
Marketing and customer acquisition costs	(201)	(225)
Other operating charges	(8)	(14)
Total operating expenses	(292)	(331)
(Loss)/profit before tax	(9)	23
Tax credit/(charge)	3	(11)
(Loss)/profit for the financial year	(6)	12

Depreciation and amortisation includes amortisation of acquisition intangibles of US$27m (2011: US$30m).

The results of FARES for the year ended 31 March 2011 were:

	2011
	US$m
Share of profits	5
Gain arising in connection with disposal of interest	123
Finance expense - financing fair value reversal arising on FAC buy-out option	(9)
Profit before tax	119
Tax charge	(46)
Profit for the financial year	73

In the period to the date of the exercise by The First American Corporation ('FAC') of its buy-out option over Experian's 20% interest in FARES on 22 April 2010, Experian used the equity method to account for its shareholding in FARES. Experian's share of FARES' post-tax profits of US$5m was recognised and reported within results for discontinued operations.

The gain arising in connection with the disposal of the interest in FARES represents the difference between the pre-tax amount of US$314m realised on the disposal of the interest in December 2010 and its book value of US$217m at the date of the exercise by FAC of its buy-out option, together with dividends of US$26m received after the exercise of the buy-out option.

In the period to 22 April 2010, the Group made net sales and recharges to FARES of US$2m. Such net sales and recharges were made under normal commercial terms and conditions that would be available to third parties.

Notes to the financial statements (continued)

for the year ended 31 March 2012

11. Discontinued operations (continued)

(b) Cash flows for discontinued operations

Cash flows for the comparison shopping and lead generation businesses comprise:

	2012	2011
	US$m	US$m
Cash inflow from operating activities	2	55
Cash flow used in investing activities	(3)	(5)
	(1)	50

The cash inflow from operating activities is stated after tax paid on the income of these businesses of US$9m (2011: US$3m).

There was a further cash inflow from operating activitiesof US$2m in respect of FARES in the year ended 31 March 2011 and this comprised dividends received from FARES to the date of the exercise by FAC of its buy-out option.

The net proceeds of US$279m arising on the disposal of the interest in FARES in the year ended 31 March 2011 were disclosed within net cash flows used in investing activities from continuing operations in the Group cash flow statement. This amount includes dividends received of US$26m received after the date of the exercise by FAC of its buy-out option and is stated after the settlement of tax arising on the disposal of US$61m.

Notes to the financial statements (continued)

for the year ended 31 March 2012

12. Basic and diluted earnings per share

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders of the Company by a weighted average number of ordinary shares (being the ordinary shares in issue during the year less own shares held as treasury shares and in employee trusts, which are treated as cancelled).

The calculation of diluted earnings per share reflects the potentially dilutive effect of employee share incentive plans. The earnings figures used in the calculations are unchanged for diluted earnings per share.

	2012	2011
		(Re-presented)
		(Note 2)
Basic earnings per share	US cents	US cents
Continuing and discontinued operations	66.2	57.9
Discontinued operations	0.6	(8.5)
Continuing operations	66.8	49.4
Exceptional items and total adjustments made to derive Benchmark PBT, net of tax	12.1	17.5
Benchmark earnings per share from continuing operations (non-GAAP measure)	78.9	66.9

	2012	2011
		(Re-presented)
		(Note 2)
Diluted earnings per share	US cents	US cents
Continuing and discontinued operations	65.1	56.7
Discontinued operations	0.6	(8.3)
Continuing operations	65.7	48.4
Exceptional items and total adjustments made to derive Benchmark PBT, net of tax	11.8	17.1
Benchmark diluted earnings per share from continuing operations (non-GAAP measure)	77.5	65.5

	2012	2011
		(Re-presented)
		(Note 2)
Earnings attributable to owners of Experian plc	US$m	US$m
Continuing and discontinued operations	655	581
Discontinued operations	6	(85)
Continuing operations	661	496
Exceptional items and total adjustments made to derive Benchmark PBT, net of tax	119	174
Benchmark earnings attributable to owners of Experian plc (non-GAAP measure)	780	670

	2012	2011
Earnings attributable to non-controlling interests	US$m	US$m
Continuing and discontinued operations	63	42
Amortisation of acquisition intangibles attributable to non-controlling interests, net of tax	11	10
Benchmark earnings attributable to non-controlling interests (non-GAAP measure)	74	52

	2012	2011
		(Re-presented)
		(Note 2)
Reconciliation of Overall benchmark earnings to profit for the financial year	US$m	US$m
Overall benchmark earnings (non-GAAP measure)	854	722
(Loss)/profit from discontinued operations	(6)	85
Loss from exceptional items and total adjustments made to derive Benchmark PBT	(130)	(184)
Profit for the financial year	718	623

	2012	2011
Weighted average number of ordinary shares	million	million
Weighted average number of ordinary shares	989	1,002
Dilutive effect of share incentive awards	17	22
Diluted weighted average number of ordinary shares	1,006	1,024

Notes to the financial statements (continued)

for the year ended 31 March 2012

13. Dividends

	2012		2011
	US cents per share	US$m	US cents per share	US$m
Amounts recognised and paid during the financial year:
First interim - paid in January 2012 (2011: January 2011)	10.25	102	9.00	90
Second interim - paid in July 2011 (2011: July 2010)	19.00	188	16.00	161
Ordinary dividends paid on equity shares	29.25	290	25.00	251

Full year dividend for the financial year	32.00	317	28.00	278

A dividend of 21.75 US cents per ordinary share will be paid on 20 July 2012 to shareholders on the register at the close of business on 22 June 2012 and is not included as a liability in these financial statements. This dividend, together with the first interim dividend of 10.25 US cents per ordinary share paid in January 2012, comprises the full year dividend for the financial year of 32.00 US cents.

Unless shareholders elect by 22 June 2012 to receive US dollars, their dividends will be paid in sterling at a rate per share calculated on the basis of the exchange rate from US dollars to sterling on 29 June 2012.

Pursuant to the Income Access Share arrangements put in place in October 2006, shareholders in the Company can elect to receive their dividends from a UK source (the 'IAS election'). Shareholders who held 50,000 or fewer Experian shares (i) on the date of admission of the Company's shares to listing on the London Stock Exchange or (ii) in the case of shareholders who did not own shares at that time, on the first dividend record date after they became shareholders in the Company, will be deemed to have elected to receive their dividends under the IAS election arrangements unless they elect otherwise. Shareholders who hold more than 50,000 shares and who wish to receive their dividends from a UK source must make an IAS election. All elections remain in force indefinitely unless revoked. Unless shareholders have made, or are deemed to have made, an IAS election, dividends will be received from an Irish source and will be taxed accordingly.

The Company offers a Dividend Reinvestment Plan ('DRIP') which enables those shareholders who receive their dividends under the IAS election arrangements to use their cash dividends to purchase Experian shares. Such shareholders who wish to participate in the DRIP for the first time, in respect of the second interim dividend for the year ended 31 March 2012 to be paid on 20 July 2012, should return a completed and signed DRIP mandate form to be received by the Company's Registrars, by no later than 22 June 2012. Shareholders should contact the registrars for further details.

In the year ended 31 March 2012 the employee trusts waived their entitlements to dividends of US$4m (2011: US$3m). There is no entitlement to dividend in respect of own shares held in treasury.

14. Capital expenditure, disposals and capital commitments

During year ended 31 March 2012 the Group incurred capital expenditure of US$453m (2011: US$369m) in continuing operations.

Excluding any amounts in connection with the disposal of businesses, the book value of other intangible fixed assets and property, plant and equipment disposed of in the year ended 31 March 2012 was US$7m (2011: US$13m) and the amount realised was US$3m (2011: US$7m).

At 31 March 2012, the Group had capital commitments in respect of property, plant and equipment and intangible assets and for which contracts had been placed of US$162m (2011: US$53m). These include commitments of US$104m (2011: US$nil) not expected to be incurred before 31 March 2013.

Notes to the financial statements (continued)

for the year ended 31 March 2012

15. Retirement benefit assets and obligations - defined benefit plans

	2012	2011
	US$m	US$m
(a) Amounts recognised in the Group balance sheet
Retirement benefit assets - funded plans:
Fair value of funded plans' assets	957	913
Present value of funded plans' liabilities	(827)	(807)
Surplus in the funded plans	130	106

Retirement benefit obligations - unfunded plans:
Present value of unfunded pension obligations	(41)	(39)
Present value of for post-retirement healthcare obligations	(12)	(12)
Retirement benefit obligations - unfunded plans	(53)	(51)

Net retirement benefit assets	77	55
The Group's retirement benefit assets and obligations are denominated primarily in sterling.

(b) Movements in net amount recognised in the Group balance sheet
At 1 April	55	(88)
Differences on exchange	-	1
Income recognised in Group income statement	2	25
Actuarial gains recognised within other comprehensive income	9	107
Contributions paid by the Group	11	10
At 31 March	77	55

(c) Income/(expense) recognised in the Group income statement
Labour costs:
Current service costs	(9)	(10)
Credit in respect of past service costs (note 15(e))	-	29
(Charge)/credit included in labour costs	(9)	19
Net finance income	11	6
Total credit to Group income statement	2	25

	2012	2011
(d) Actuarial assumptions	%	%
Discount rate	5.2	5.6
Rate of inflation - based on the Retail Prices Index	3.3	3.5
Rate of inflation - based on the Consumer Prices Index	2.3	2.8
Rate of increase for salaries	4.3	4.5
Rate of increase for pensions in payment - element based on the Retail Prices Index (where cap is 5%)	3.1	3.4
Rate of increase for pensions in payment - element based on the Consumer Prices Index (where cap is 5%)	2.3	2.8
Rate of increase for pensions in payment - element based on the Consumer Prices Index (where cap is 3%)	1.9	2.3
Rate of increase for pensions in deferment	2.3	2.8
Rate of increase in medical costs	6.8	7.5
Expected return on plan assets	5.7	6.6
The mortality assumptions used at 31 March 2012 remain broadly unchanged from those used at 31 March 2011.

(e) Gains in respect of the defined benefit pension plan - year ended 31 March 2011

Gains were recognised during the year ended 31 March 2011 in respect of the Group's principal defined benefit plan, the Experian Pension Scheme, which provides benefits for certain UK employees but is closed to new entrants.

During that year, the UK Government changed to the use of the Consumer Prices Index (the 'CPI') rather than the Retail Prices Index as the inflation measure for determining the minimum pension increases to be applied to statutory index-linked features of retirement benefits. As a result of using the lower CPI rate, there was a reduction in obligations with a credit in respect of past service costs of US$29m recognised in the Group income statement and a further reduction in obligations of US$18m included within the total actuarial gain of US$107m recognised within other comprehensive income.

Notes to the financial statements (continued)

for the year ended 31 March 2012

16. Notes to the Group cash flow statement

	2012	2011
		(Re-presented)
		(Note 2)
	US$m	US$m
(a) Cash generated from operations
Operating profit	1,052	871
Loss on disposal of fixed assets	4	5
(Gain)/loss on disposal of businesses	(8)	21
Depreciation and amortisation	434	385
Charge in respect of equity incentive plans	65	64
Decrease in working capital (note 16(b))	20	4
Acquisition expenses - difference between Group income statement charge and amount paid	(20)	3
Adjustment to the fair value of contingent consideration	(3)	-
Movement in exceptional items included in working capital	(5)	(42)
Cash generated from operations	1,539	1,311

(b) Decrease in working capital
Inventories	3	(10)
Trade and other receivables	(38)	(33)
Trade and other payables	57	47
Difference between pension current service cost and contributions paid	(2)	-
Decrease in working capital	20	4

	2012	2011
	US$m	US$m
(c) Reconciliation of cash outflow in respect of exceptional items
Total exceptional items (note 8(a))	(12)	2
Interest received on legacy tax balances	4	-
Working capital movements	5	42
Asset write-offs	-	(3)
Gain/(loss) on disposal of businesses	8	(21)
Cash outflow in respect of exceptional items	5	20

	2012	2011
		(Re-presented)
		(Note 2)
	US$m	US$m
(d) Cash outflow in respect of tax
Tax paid on income of continuing operations	107	85
Tax paid on income of discontinued operations	9	3
Tax paid on disposal of discontinued operations (note 11(b))	-	61
Cash outflow in respect of tax	116	149

	2012	2011
	US$m	US$m
(e) Purchase of other intangible assets
Databases	218	175
Internal use software	55	48
Internally generated software	96	77
Purchase of other intangible assets	369	300

(f) Cash flows on acquisition of subsidiaries (non-GAAP measure)
Purchase of subsidiaries (note 22)	785	277
Net cash acquired with subsidiaries (note 22)	(53)	(6)
Acquisition expenses - transaction expenses paid on behalf of vendors	18	-
Acquisition expenses - other amounts paid	11	5
Payments to acquire non-controlling interests	12	-
Deferred consideration settled on acquisitions	14	25
Net cash outflow for acquisition of subsidiaries	787	301

Notes to the financial statements (continued)

for the year ended 31 March 2012

16. Notes to the Group cash flow statement (continued)

	2012	2011
	US$m	US$m
(g) Cash outflow in respect of net share purchases
Issue of ordinary shares (note 21)	(11)	(7)
Receipt of share option proceeds	(54)	(50)
Purchase of own shares held as treasury shares	-	336
Purchase of own shares by employee trusts - for employee share incentive plans	232	70
Cash outflow in respect of net share purchases	167	349

During the year ended 31 March 2012, there were no purchases of own shares held as treasury shares (2011: 30 million shares) and there were purchases of 18 million (2011: 6 million) own shares by employee trusts in respect of the potential exercises of share options and share awards.

At 31 March 2012, the Group held 40 million (2011: 38 million) own shares with 24 million (2011: 30 million) shares held as treasury shares and 16 million (2011: 8 million) shares held by employee trusts. The number of own shares held is after the release of 16 million shares (2011: 9 million shares) on the exercise of share options and awards. The total cost of the shares held of US$492m (2011: US$434m) is deducted from other reserves in the Group balance sheet.

17. Reconciliation of Cash generated from operations to Operating cash flow (non-GAAP measure)

	Notes	2012	2011
			(Re-presented)
			(Note 2)
		US$m	US$m
Cash generated from operations	16(a)	1,539	1,311
Acquisition expenses paid		29	5
Purchase of property, plant and equipment		(84)	(69)
Purchase of other intangible assets	16(e)	(369)	(300)
Sale of property, plant and equipment		3	7
Dividends received from continuing associates		1	1
Cash outflow in respect of exceptional items	16(c)	5	20
Operating cash flow		1,124	975

There were cash flows of US$84m (2011: US$69m) for the purchase of property, plant and equipment after receipts of US$11m (2011: US$nil) in the form of landlord incentives.

18. Analysis of net debt (non-GAAP measure)

	2012	2011
	US$m	US$m
(a) Analysis of net debt:
Cash and cash equivalents	254	408
Bank deposits with maturity greater than three months	-	14
Derivatives hedging loans and borrowings	103	(6)
Debt due within one year	(12)	(3)
Finance lease obligations	(1)	(4)
Debt due after more than one year	(2,162)	(1,910)
Net debt	(1,818)	(1,501)

(b) Net debt by balance sheet caption:
Cash and cash equivalents	254	408
Loans and borrowings (current)	(13)	(6)
Loans and borrowings (non-current)	(2,179)	(1,921)
Net debt by balance sheet caption	(1,938)	(1,519)
Bank deposits within financial assets	-	14
Accrued interest excluded from net debt	-	10
Derivatives hedging loans and borrowings	120	(6)
Net debt	(1,818)	(1,501)

Notes to the financial statements (continued)

for the year ended 31 March 2012

19. Undrawn committed borrowing facilities

	2012	2011
	US$m	US$m
Undrawn committed borrowing facilities expire:
Between two and three years	167	-
Between three and four years	1,980	-
Between four and five years	-	1,700
	2,147	1,700

20. Other financial liabilities

At 31 March 2012, the net present value of the put option in respect of the Serasa non-controlling interest is US$1,092m and this financial liability is now reported within current liabilities, rather than non-current liabilities, as the put may be exercised from June 2012 to June 2017. The net present value at 31 March 2011 was US$870m. The change in value during the year ended 31 March 2012 comprised a financing fair value loss of US$325m reported in the Group income statement and a currency translation gain of US$103m taken directly to the statement of comprehensive income.

21. Called up share capital and share premium account

	Number of shares	Called up share capital	Share premium account
	million	US$m	US$m
At 1 April 2010	1,026.1	102	1,453
Shares issued under employee share incentive plans	1.0	-	7
At 31 March 2011	1,027.1	102	1,460
Shares issued under employee share incentive plans	1.9	-	11
At 31 March 2012	1,029.0	102	1,471

Notes to the financial statements (continued)

for the year ended 31 March 2012

22. Acquisitions

The Group made ten acquisitions during the year, in connection with which provisional goodwill of US$553m has been recognised based on the fair value of the net assets acquired of US$282m. The cash outflow of US$746m in respect of these acquisitions is stated net of cash acquired of US$53m and includes deferred consideration settled in the year of US$14m.

These transactions included:

· the acquisition of substantially the whole of the issued share capital of Computec S.A. ('Computec'), a leading Latin American credit services information provider, based in Colombia. The purchase involved a delisting tender offer and cash consideration for the equivalent of US$380m which was settled in October and November 2011. This acquisition extends Experian's global leadership in credit information.

· the acquisition of the whole of the issued share capital of Medical Present Value, Inc ('Medical Present Value') on 1 July 2011 for a consideration of US$192m. This acquisition broadens Experian's presence in the healthcare payments sector in North America.

· eight other acquisitions, none of which is individually material.

Details of the net assets acquired at provisional fair values and the consideration and goodwill arising are given below.

	Computec	Medical Present Value	Other acquisitions	Total
	US$m	US$m	US$m	US$m
Intangible assets:
Customer and advertiser relationships	118	63	55	236
Other	25	12	44	81
Intangible assets	143	75	99	317
Property, plant and equipment	14	1	1	16
Investments in associates	10	-	1	11
Deferred tax assets	2	24	-	26
Trade and other receivables	17	2	18	37
Cash and cash equivalents	22	9	22	53
Trade and other payables	(40)	(4)	(27)	(71)
Current tax liability	(2)	-	(3)	(5)
Provisions	-	-	(3)	(3)
Deferred tax liabilities	(46)	(30)	(23)	(99)
Total identifiable net assets	120	77	85	282
Goodwill	262	115	176	553
Total	382	192	261	835

Satisfied by:
Cash	380	192	213	785
Deferred consideration	-	-	19	19
Fair value of existing stake in associate	-	-	22	22
Recognition of non-controlling interest	2	-	7	9
Total	382	192	261	835

The provisional fair values above contain certain amounts which will be finalised no later than one year after the date of acquisition. Provisional amounts have been included at 31 March 2012 as a consequence of the timing and complexity of the acquisitions. Goodwill represents the synergies, assembled workforce and future growth potential of the businesses acquired. None of the goodwill arising in the year of US$553m is currently deductible for tax purposes. As indicated in note 8, acquisition expenses have been charged to the Group income statement.

Notes to the financial statements (continued)

for the year ended 31 March 2012

22. Acquisitions (continued)

Additional information in respect of these acquisitions is given below.

	Computec	Medical Present Value	Other acquisitions	Total
	US$m	US$m	US$m	US$m
Increase in book value from fair value adjustments: adjustments:
Intangible assets	140	74	96	310
Other assets and liabilities	(30)	(30)	(23)	(83)
Increase in book value from fair value adjustments	110	44	73	227
Gross contractual amounts receivable in respect of trade and other receivables¹	17	2	18	37
Revenue from 1 April 2011 to dates of acquisition	54	11	30	95
Revenue from dates of acquisition to 31 March 2012	53	27	30	110
Profit before tax from dates of acquisition to 31 March 2012²	4	-	(5)	(1)

1. At the dates of acquisition, the gross contractual amounts receivable in respect of trade and other receivables were expected to be collected in full.

2. It has been impracticable to estimate the impact on Group profit before tax had the acquired entities been owned from 1 April 2011, as their accounting policies and period end dates did not accord with those of the group prior to their acquisition.

There have been no material gains, losses, error corrections or other adjustments recognised in the year ended 31 March 2012 that relate to acquisitions in the current or previous years. The cash outflow of US$296m in 2011 was principally attributable to the acquisition of Mighty Net, Inc, and is stated net of total cash acquired in that year of US$6m, and included deferred consideration settled in that year of US$25m.

23. Assets and liabilities classified as held for sale

Experian has agreed to divest the Group's comparison shopping and lead generation businesses and it is anticipated that this transaction will be completed in the first half of the financial year ending 31 March 2013. The assets and liabilities of these businesses at 31 March 2012 shown below are classified as held for sale. Any gain on disposal will be recognised in the year ending 31 March 2013.

	Total
	US$m
Assets classified as held for sale:
Goodwill	33
Other intangible assets	35
Property, plant and equipment	8
Trade receivables - net	22
Other prepayments and accrued income	15
Current tax asset	5
Assets classified as held for sale	118

Liabilities classified as held for sale:
Deferred tax liability	38
Trade payables	15
Accruals and deferred income	24
Other payables	3
Liabilities classified as held for sale	80

Notes to the financial statements (continued)

for the year ended 31 March 2012

24. Contingencies

There are a number of pending and threatened litigation claims involving the Group in North America and Latin America which are being vigorously defended. The directors do not believe that the outcome of any such pending or threatened litigation will have a materially adverse effect on the Group's financial position. However, as is inherent in legal proceedings, there is a risk of outcomes unfavourable to the Group. In the case of unfavourable outcomes the Group would benefit from applicable insurance recoveries.

Serasa, the Group's principal subsidiary undertaking in Brazil, has been advised that the Brazilian tax authorities are challenging the deduction for tax purposes of goodwill amortisation arising from the acquisition of Serasa. Experian believes that the possibility of this resulting in a liability to the Group is remote, on the basis of the advice of external legal counsel and other factors in respect of the claim.

25. Events occurring after the end of the reporting period

Details of the second interim dividend announced since the end of the reporting period are given in note 13.

On 16 April 2012, Experian announced an agreement to form a joint venture with Cerved Group SpA to provide enhanced consumer credit information services to the Italian market. The formation of the joint venture is subject to regulatory approval on receipt of which the joint venture will be established with initial gross assets of some US$10m. Experian will own a majority stake in the company.

26. 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 auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the preliminary announcement since it was initially presented on the website. Jersey legislation and UK regulation governing the preparation and dissemination of financial information may differ from requirements in other jurisdictions.

Notes to the financial statements (continued)

for the year ended 31 March 2012

27. Risks and uncertainties

Experian has a risk management framework which provides a structured and consistent process for identifying, assessing and responding to risks in relation to our strategy and business objectives including our strategic focus on data and analytics, driving profitable growth and optimising capital efficiency.

Risk management operates at all levels throughout our organisation, across geographies, business lines, and operational support functions. The Board is ultimately responsible for risk management, which includes our risk governance structure and maintaining an appropriate internal control framework. Management's responsibility is to manage risk on behalf of the Board. By reporting regularly to the Board and to the Audit Committee, our internal audit and global risk management functions provide support to the Board in maintaining effective risk management across the Group.

Risk management framework

Effective management of risk and opportunity is essential to the delivery of our objectives, achievement of sustainable shareholder value and protection of our reputation. Experian has an established global risk management process which has operated throughout the year ended 31 March 2012.

The framework enables our risks to be identified, analysed, evaluated, controlled, monitored and reported. In doing so the main functions of the Board are supported by:

· identifying and managing risk in alignment with our strategic objectives, risk appetite, corporate responsibility strategy and the long-term value drivers in the business; and

· enabling management to demonstrate a responsible and proactive, embedded approach to risk management.

The key aspects of the Experian risk management framework are:

· Defined and communicated business principles and strategies

· Clear Group objectives, supported by financial and non-financial key performance indicators (KPIs)

· Standardised process to identify, evaluate and manage significant risks on an ongoing basis

· Control reviews and follow-ups performed by management, internal audit and third parties

· Budgetary controls and monthly performance reviews, including achievement of objectives and KPIs

· Regional risk management committees with local oversight of risk management processes

· Executive risk management committee with global oversight of risk management processes

· Regular reporting on risk to the Audit Committee by senior management

· Regular risk updates to the Board

Notes to the financial statements (continued)

for the year ended 31 March 2012

27. Risks and uncertainties (continued)

Risk factors

The following information sets out the risk factors which we believe could cause our future results to differ materially from expected results. However, other factors could also adversely affect our results and so the risks discussed below should not be considered to be a complete set of all potential risks and uncertainties.

Our approach to identifying, assessing, managing and reporting risks is formalised in the risk management framework described in this section. Risks that we face are critically evaluated throughout the year. Exposure to consolidation among clients and markets has been removed as a principal risk due to a stabilisation of the financial services industry and Experian's reduced exposure to financial services as a percentage of global revenue.

a) Principal risks

i) Risk area - Loss or inappropriate usage of data

Potential impact - Our business requires the appropriate and secure utilisation of consumer and other sensitive information by its business units or its third party partners. Internet-based electronic commerce requires the secure transmission of confidential information over public networks, and several of our products are accessed through the internet. Security breaches in connection with maintaining data and the delivery of our products and services could harm our reputation, business and operating results.

Mitigation strategies - We have established rigorous information security policies, standards, procedures, and recruitment and training schemes, which are embedded throughout our business operations. We also screen new third party partners carefully and conduct targeted audits on their operations. Continued investments are made in IT security infrastructure, including the significant use of data and communications encryption technology.

ii) Risk area - Dependence upon third parties to provide data and certain operational services

Potential impact - Our business model is dependent upon third parties to provide data and certain operational services, the loss of which could significantly impact the quality of and demand for our products. Similarly, if one

or more of our outsource providers, including third parties with whom we have strategic relationships, were to experience financial or operational difficulties, their services to us would suffer or they may no longer be able to provide services to us at all, significantly impacting delivery of our products or services.

Mitigation strategies - Our legal, regulatory and government affairs functions work closely with senior management to adopt strategies to help secure and maintain access to public and private information. Our global strategic sourcing function works closely with senior management to select and negotiate agreements with strategic suppliers based on criteria such as delivery assurance and reliability. A diverse network of strategic suppliers and vendors is maintained in order to minimise potential disruptions.

iii) Risk area - Exposure to legislation or regulatory reforms

Potential impact -Legislative, regulatory and judicial systems in the countries in which we operate are responding to changing societal attitudes about how commercial entities collect, use and maintain consumer data. In particular, the growing ubiquity of the internet drives public concerns about how consumer information is collected and used for marketing, risk management and fraud detection purposes. These concerns may result in new laws, regulations and enforcement practices, or pressure upon industries to adopt new self-regulation. Some proposed changes may adversely affect our ability to undertake these activities in a cost-effective manner. Separately, we are subject to changes in specific countries' tax laws. Our future effective tax rates may be adversely affected by changes in tax laws.

Mitigation strategies - Our legal, regulatory and government affairs functions work closely with senior management to adopt strategies and educate lawmakers, regulators, consumer and privacy advocates, industry trade groups and other stakeholders in the public policy debate. This includes advocating for robust, responsible sharing of commercial consumer data. It also includes negotiating with lawmakers and policymakers, directly and through trade groups and external consultants, to ensure proposed legal requirements reflect standards that are both workable for us and responsive to consumers. Finally, it includes advocating and promoting new industry self-regulatory standards, when appropriate, to address consumer concerns about privacy and information sharing. We also retain internal and external tax professionals that monitor the likelihood of future tax changes. These risks are generally outside our control.

Notes to the financial statements (continued)

for the year ended 31 March 2012

27. Risks and uncertainties (continued)

iv) Risk area - Regulatory compliance

Potential impact - Our businesses must comply with federal, regional, provincial, state and other jurisdictional regulations and best practice. These include rules that authorise and prescribe credit reporting protocols, as well as general information privacy, anti-corruption and information security requirements. Non-compliance could lead to fines/penalties, increased prudential requirements, enforced suspension of operations or, in extreme cases, withdrawal of authorisations to operate.

Mitigation strategies - To the best of Experian's knowledge, we are in compliance with data protection requirements in each jurisdiction in which we operate. Our regulatory compliance departments work closely with the businesses to identify and adopt strategies to help ensure compliance with jurisdictional regulations and identified business ethics which include active monitoring of our collection and use of personal data. Adequate procedures have been implemented to address requirements under the UK Bribery Act 2010.

v) Risk area - Product/service or technology obsolescence

Potential impact - Without the timely introduction of new or enhanced products and services our offerings will become technologically or commercially obsolete over time. In addition, without continued investment in our technology infrastructure, we may not be able to support changes in the way our businesses and customers use and purchase information. In either case, there can be no assurance that there would not be a material adverse effect on our business, results of operations and/or financial condition.

Mitigation strategies - Product innovation is a key driver of growth for Experian in all our markets and we have continued to invest strongly in new data sources and new analytical products, together with the platforms that support their worldwide delivery. Over 10% of our revenues come from products developed during just the past five years. In addition, 20% of our global costs are in information technology and data. Detailed competitive and market analysis are performed which provide the foundation of a rigorous product and services investment identification and selection process.

vi) Risk area - Interruptions in business processes or systems

Potential impact - Our ability to provide reliable services largely depends on the efficient and uninterrupted operation of our computer network systems, data and call centres, as well as maintaining sufficient staffing levels. System or network interruptions, or the significant reduction in key staff or management resulting from a pandemic outbreak, could delay and disrupt our ability to develop, deliver or maintain our products and services, causing harm to our business and reputation and resulting in loss of customers or revenue.

Mitigation strategies - We have strict standards, procedures and training schemes for physical security. Comprehensive business continuity plans and incident management programmes are maintained to minimise business and operational disruptions including pandemic incidents. We maintain full duplication of all information contained in databases and run back-up data centres. Support arrangements, strict standards, procedures and training schemes for business continuity have been established with third party vendors. We also monitor potential pandemic threats and adjust action plans.

vii) Risk area - Dependence on recruitment and retention of highly skilled personnel

Potential impact - Our ability to meet the demands of the market and compete effectively with other IT suppliers is, to a large extent, dependent on the skills, experience and performance of our personnel. Demand is high for individuals with appropriate knowledge and experience in the IT and business services market. The inability to attract, motivate or retain key talent could have a serious consequence on our ability to service client commitments and grow our business.

Mitigation strategies - Effective recruitment programmes are ongoing across all business areas, as well as personal and career development initiatives. Talent identification and development programmes have been implemented and are reviewed annually. Compensation and benefits programmes are competitive and also regularly reviewed.

Notes to the financial statements (continued)

for the year ended 31 March 2012

27. Risks and uncertainties (continued)

b) Other risks

i) Risk area - Exposure to material adverse litigation

Potential impact - We are regularly involved in a number of pending and threatened litigation claims in the United States and Latin America, including a number of class actions in the United States. As is inherent in all legal proceedings, litigation outcomes cannot be predicted with certainty and there is a risk of outcomes unfavourable to us.

Mitigation strategies - We vigorously defend all pending and threatened litigation claims. We employ internal counsel and engage external counsel to assist in the effective management and disposal of litigation proceedings. Insurance coverage is maintained against litigation risks where such coverage is feasible and appropriate.

ii) Risk area - Exposure to country and regional risk (political, financial, economic, social) particularly in the United States and United Kingdom

Potential impact - Our global footprint subjects our businesses to economic, political and other risks associated with international sales and operations. A variety of factors, including changes in a specific country's or region's political, economic, or regulatory requirements, as well as the potential for geopolitical turmoil, including terrorism and war, could result in loss of services, prevent our ability to respond to agreed service levels or fulfil other obligations. These risks are generally outside our control.

Mitigation strategies - Our portfolio is diversified by geography, by product, by sector and by client in order to protect itself against many of these fluctuations, especially those that are restricted to individual territories and market sectors. We have offices in 44 countries and derive 35% of revenue from outside the United States and the United Kingdom. Only 5% of global revenue is derived from the euro zone.

iii) Risk area - Strategic investments including acquisitions and other organic initiatives may not meet expectations

Potential impact - We continue to expand our global reach and extend our capabilities through a combination of acquisitions, strategic alliances/joint venture and organic strategic investments. The contributions of these businesses and initiatives to Experian may result in financial outcomes that are different than expected.

Mitigation strategies - We assess all acquisitions rigorously, using both in-house experts and professional advisers. In addition, we conduct extensive post-acquisition and organic investment reviews to ensure performance remains consistent with the business plan.

iv) Risk area - Exposure to the unpredictability of financial markets (foreign exchange, interest rate and other financial risks)

Potential impact - As Experian operates on an international basis, it is exposed to the risk of currency fluctuations and the unpredictability of financial markets in which it operates. The large sovereign debts and/or fiscal deficits of a number of European countries and the United States have raised concerns regarding the financial condition of financial institutions, insurers and other entities that are directly or indirectly exposed to these countries. The default, or a significant decline in the credit rating, of one or more sovereigns or financial institutions could cause severe stress in the financial system generally and could adversely affect our counterparties, customers, suppliers, vendors, or creditors, directly or indirectly, in ways which are difficult to predict. The impact of these conditions may be detrimental to Experian and may adversely affect its business, operations and profitability.

Mitigation strategies - Our financial risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on Experian's financial performance. We apply conservative currency hedging strategies to minimise the impact of currency volatility. Treasury and insurance activities are conducted only with financial and insurance institutions with strong credit ratings, within limits set for each organisation.

Notes to the financial statements (continued)

for the year ended 31 March 2012

27. Risks and uncertainties (continued)

v) Risk area - Exposure to increasing competition

Potential impact - We operate in a number of geographic, product and service markets that are highly competitive. The competitor environment continues to be dynamic with new entrants that may have scale, integration capability and partner networks. Competitors may develop products and services that are superior to ours or that achieve greater market acceptance than our products and services which could result in the loss of clients or reduction in revenue.

Mitigation strategies - We are committed to continued research and investment in new data sources, people, technology and products to support our strategic plan.

vi) Risk area - Loss or infringement of intellectual property rights

Potential impact - Our success depends, in part, upon proprietary products and/or services and related intellectual property rights. The extent to which intellectual property rights can be protected varies in different jurisdictions. Third parties may claim that Experian is infringing their intellectual property rights or our intellectual property rights could be infringed by third parties. If we do not enforce our intellectual property rights successfully, our competitive position may suffer, which could harm our operating results.

Mitigation strategies - Experian, where appropriate and feasible, relies upon a combination of patent, copyright, trademark and trade secret laws, as well as various contractual restrictions, to protect our proprietary products and services and continues to monitor this situation. We also vigorously defend all third party infringement claims.

Statement of directors' responsibilities

The directors confirm that, to the best of their knowledge, the financial statements are prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the Group taken as a whole; and the management report includes a fair review of the development and performance of the business and the position of the Company and the Group taken as a whole, and a description of the principal risks and uncertainties that they face is included in note 27.

At the date of this statement, the names and functions of the directors in office are those listed in the Experian annual report 2011 save that Paul Brooks died on 6 January 2012 and Brian Cassin was appointed on 30 April 2012.

By order of the Board

Charles Brown

Company Secretary

9 May 2012

This information is provided by RNS

The company news service from the London Stock Exchange

END

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Experian Preliminary Results

Preliminary results for the year ended 31 March 2012

Highlights

Roundings

North America

Benchmark PBT

Profit before tax

Profit after tax from continuing operations

Benchmark earnings (non-controlling interests)

Benchmark earnings

Benchmark EPS (US cents)

Credit Services

Decision Analytics

Marketing Services

Interactive

For continuing activities, North America EBIT was US$658m, up 18%. EBIT margin was 31.5%, an increase of 230 basis points year-on-year, reflecting positive operating leverage across all areas of activity.

Credit Services

Decision Analytics

Marketing Services

Decision Analytics

Interactive

Credit Services

Decision Analytics

Marketing Services

Revenue

Total - continuing activities

Total

EBIT

Total - continuing activities

Revenue

Tax credit/(charge)

Profit/(loss) after tax from continuing operations

Attributable to:

Owners of Experian plc

Non-controlling interests

Profit/(loss) after tax from continuing operations

Earnings/(loss) per share - basic

Effective rate of tax

Revenue

Data and information technology costs

Operating profit

Profit before tax

Profit after tax for the financial year from continuing operations

(Loss)/profit for the financial year from discontinued operations

Profit for the financial year

224

661

847

Benchmark PBT - continuing operations

-

-

-

-

-

(37)

86

49

-

49

-

-

(251)

-

(251)

(56)

(307)

1,135

57

1,192

(370)

(5)

(375)

2. Comparative information

(a) Net finance costs included in Profit before tax

Interest income:

Finance expense:

Revenue

Data and information technology costs

(Loss)/profit for the financial year

Basic earnings per share