Explaining Experian. Contents. May 2008

Transcription

1 Expaining Experian Contents May 2008

2 Contents Introduction 1.00 Overview of the business 1.01 Group strategy 1.02 Saes by activity 1.03 Major databases 1.04 Market and cient profie 1.05 Financia anaysis 1.07 Key detais 2.00 What we do Credit Services 2.03 Consumer credit 2.05 Business information 2.07 Automotive services 2.09 Insurance services 2.10 FARES (First American Rea Estate Soutions) 3.00 Detaied financia anaysis 3.01 Saes and profit by geography 3.03 Saes and profit by principa activity 3.04 Saes by geography and principa activity 3.05 Cost anaysis 3.06 Cash fow 4.00 Main products and services 4.00 Credit Services 4.01 Decision Anaytics 4.02 Marketing Services 4.04 Interactive 4.05 Major databases Decision Anaytics 2.13 Credit anaytics and decision support software 2.21 Fraud soutions Marketing Services 2.25 Data and data management 2.31 Research services 2.33 Digita services 2.35 Business strategies Interactive 2.41 Consumer Direct 2.43 Lead generation

3 Expaining Experian Introduction Experian is the goba eader in providing the information and decision anaytics needed to expand consumer and commercia credit in major economies around the word. We hep organisations to find new customers and to deveop and manage existing reationships by providing data, decision-making soutions and processing services. We aso hep consumers to understand, manage and protect their persona information and to make more informed purchasing decisions. Experian s vision is for its peope, data and technoogy to become a necessary part of every major consumer economy around the word. The information in this document has been prepared soey in order to assist sharehoders, customers, suppiers and the pubic to understand the Experian business and does not purport to be a compete anaysis of the Experian business or set out a the risks and benefits that are associated with it. This document is not intended to form the basis of any investment decision and those intending to invest in Experian shares shoud make their own independent assessment of the business prior to making any investment and shoud not rey on Expaining Experian in making their judgement on whether to invest. No representation or warranty, express or impied, is given and, so far as is permitted by aw, no responsibiity or iabiity is accepted by any person, with respect to the accuracy or competeness of Expaining Experian or its contents. In particuar, but without imitation, no representation or warranty is given as to the achievement or reasonabeness of, and no reiance shoud be paced on, any projections, targets, estimates or forecasts contained in this document. Experian undertakes no obigation to provide any additiona information or to update this document or any additiona information or to correct any inaccuracies which may become apparent.

4 Expaining Experian 1.00 Overview of the business 1.00 Overview of the business Our business is managed on a geographic basis across North America, Latin America, the UK and Ireand and EMEA/Asia Pacific. We aso categorise our business into four principa activities. Credit Services provides the information needed to extend credit to consumers and businesses. We maintain arge, comprehensive databases containing the credit appication and repayment histories of consumers and businesses. Decision Anaytics unocks the vaue of the Credit Services data and heps cients by appying anaytica toos and software to convert data into business decisions. Marketing Services heps cients target, acquire and retain customers. Our arge and comprehensive databases contain geographic, demographic and ifestye information on consumers. Interactive is an internet marketing business with two types of activity: directto-consumer, which provides credit information directy to consumers, and ead generation, which connects consumers with businesses on the internet.

5 1.01 Expaining Experian Group strategy Experian s vision is for our peope, data and technoogy to become a necessary part of every major consumer economy. Through our data resources and anaytica capabiities, Experian provides one of the buiding bocks for growth in consumer economies around the word. Our Credit Services and Decision Anaytics businesses hep consumers and organisations obtain access to affordabe credit, whie bringing increased safety and soundness to banking systems. Our Marketing and Interactive businesses hep organisations to reach new markets and to find and keep profitabe customers. In order to capitaise on the market opportunities avaiabe to us and to drive ong-term sharehoder vaue, we have centred our strategy around three eements: Focus on data & anaytics Drive profitabe growth Optimise capita efficiency Focus on data and anaytics Our core expertise ies in the ownership and operation of comprehensive databases about consumers and businesses. From these we are abe to extract significant, extra vaue by appying our own proprietary anaytics and software. The combination of data and anaytics is a key differentiator. Drive profitabe growth Experian s growth is supported by favourabe ong-term dynamics in our two end-markets of credit and marketing. We have exceent positions in these markets and our aim is to drive organic revenue growth by everaging our scae and focusing on best-in-cass performance. Our strategic framework for driving profitabe growth has the foowing components: Expand our goba reach: by expanding our goba network and extending our existing capabiities into new geographic and vertica markets. Innovate to stay ahead: by promoting a cuture of innovation and investing in new data sources and enhanced anaytics that deiver significant vaue to our cients. Drive operationa exceence: by everaging our goba scae and common patforms to aow us to depoy goba products quicky into new markets. Optimise capita efficiency We aim to use our strong cash fow efficienty by continuing to reinvest to retain competitive advantage and to make targeted acquisitions that fit our strategy and meet our financia hurdes. We aim to strike the right baance between investment for growth and returning cash to sharehoders via dividends or share buy backs. Experian s businesses are characterised by their market-eading positions, high barriers to entry, goba reach and potentia for ong-term growth, as we as their attractive financia characteristics. We are therefore focusing our investment on deveoping these core capabiities in order to buid market-eading positions in credit risk management and high ROI marketing. Credit-reated activities: Growth is underpinned by rapidy expanding demand for sophisticated anaytics and software that hep organisations to predict and manage risk in both deveoped and emerging markets. Experian s appications are proven to drive growth in the markets we serve. Marketing-reated activities: Growth is underpinned by the emergence of new, information-rich channes and by the increasing importance of high ROI customer acquisition and retention. These channes are stimuating demand for more targeted, faster, more effective and more measurabe marketing campaigns. Experian s core data and anaytics expertise provide the science for cients to execute better marketing campaigns. We are aso taking advantage of extensive synergies across our credit and marketing activities, where we are abe to everage a significant amount of our data management processes to serve cients in both areas.

6 Expaining Experian 1.02 Saes by activity Principa activities Credit Services Decision Anaytics Marketing Services Interactive Consumer credit Business information Automotive services Credit anaytics and decision support software Fraud soutions Data and data management Research services Digita services Consumer direct services Lead generation Insurance services Business strategies Saes by activity Credit Services Decision Anaytics Marketing Services Interactive Saes (US$m) 1 1, Percentage of saes 47% 12% 20% 21% 12 months to 31 March 2008 underying growth 2 1% 7% 1% 9% 1 Saes are for the 12 months to 31 March 2008 and excude discontinuing activities 2 Growth excuding discontinuing activities and corporate acquisitions at constant exchange rates

7 1.03 Expaining Experian Major databases US Consumer credit database: 215 miion consumers. Nationa business credit database: more than 19 miion businesses. Nationa vehice database: more than 500 miion vehices. INSOURCE database: consumer marketing information on 215 miion consumers in 110 miion househods. BehaviorBank: sef-reported consumer marketing information submitted by 40 miion individuas and 35 miion househods. Z-24 cataogue database: over 2.8 biion cataogue orders across 109 miion househods. UK Consumer credit database: 45 miion consumers. Nationa business database: records on 4 miion imited and non-imited active UK businesses, with over 5 miion contact names. Limited companies database: over 5.2 miion companies of which 2.4 miion are current and 2.8 miion dissoved. Over 15 miion directorship records. Car Data Check: 31 miion vehices and over 90 miion DVLA registration records. Marketing databases: ifestye data on 8.4 miion househods and 14 miion individuas. Motor insurance database: 25 miion motor insurance poicies and 30 miion vehices, with 1.8 miion onine enquiries received each month.

8 Expaining Experian 1.04 Market and cient profie Market profie Goba Pubishing/media 2% Teecom/utiity/ insurance 7% Government 2% Automotive 6% Other 4% Retai/home shopping 10% Financia services 52% Direct-to-consumer 17% Approximate percentage of saes by vertica market Saes are for the 12 months to 31 March 2008 and excude discontinuing activities Cient profie Goba 47% of saes A other eements 36% of saes Top 50 cients 17% of saes Top 10 cients Saes are for the 12 months to 31 March 2008 and excude discontinuing activities and Consumer Direct Of the top 50 cients, at east 85% have been doing business with Experian for five years or more

9 1.05 Expaining Experian Financia anaysis Geographic spit 2008 Saes (US$m) EBIT (US$m) Empoyees (FTEs) % 3,777 24% 2,061 51% 324 8% % % 75 7% 87 9% % 5,817 37% 4,106 26% 1,975 13% n North America n UK and Ireand n EMEA/Asia Pacific n Latin America n North America n UK and Ireand n EMEA/Asia Pacific n Latin America n North America n UK and Ireand n EMEA/Asia Pacific n Latin America A anaysis excudes discontinuing activities Cost profie Goba percentage of saes EBIT 22% Labour 43% IT Data Customer acquisition/marketing 5% 5% 11% Other Corporate costs 13% 1% Costs are for the 12 months to 31 March Direct business ony, excuding FARES and discontinuing activities Other incudes other depreciation, occupancy, royaties and voice teecommunications

10 Expaining Experian 1.06 Saes mix North America Credit Services Decision Anaytics Marketing Services Interactive Saes (US$m) Percentage of saes 39% 4% 19% 38% 12 months to 31 March 2008 underying growth 2 0% 7% 2% 5% 1 Saes are for the 12 months to 31 March 2008 and excude discontinuing activities 2 Growth excuding discontinuing activities and corporate acquisitions Latin America Credit Services Decision Anaytics Marketing Services Saes (US$m) Percentage of saes 95% 2% 3% 12 months to 31 March 2008 underying growth 2 n/a 43% n/a 1 Saes are for the 12 months to 31 March 2008 and excude discontinuing activities 2 Growth excuding discontinuing activities and acquisitions at constant exchange rates UK and Ireand Credit Services Decision Anaytics Marketing Services Interactive Saes (US$m) Percentage of saes 30% 26% 37% 7% 12 months to 31 March 2008 underying growth 2 1% 0% (3)% 95% 1 Saes are for the 12 months to 31 March 2008 and excude discontinuing activities 2 Growth excuding discontinuing activities and acquisitions at constant exchange rates EMEA/Asia Pacific Credit Services Decision Anaytics Marketing Services Saes (US$m) Percentage of saes 70% 18% 12% 12 months to 31 March 2008 underying growth 2 3% 20% 11% 1 Saes are for the 12 months to 31 March Growth excuding acquisitions at constant exchange rates

11 1.07 Expaining Experian Key detais Some major cients American Express Bank of America Barcays BMW Financia Services BNP Paribas Boots Capita One CarMax Citicard Commerzbank Coors Brewers UK Crate and Barre Crédit Agricoe Crédit Lyonnais Debenhams De Discover ebay Egg First American Ford France Teecom HBOS Hiton Internationa Househod HSBC IBM ICICI JCB Koh s Kookmin Bank Lego Loyds TSB Marks & Spencer Morgan Staney Nationa Austraia Bank Next Orange Procter & Gambe Roya Mai Siebe Société Générae Somerfied Stapes Tesco Toyota UNICEF Washington Mutua Westpac Yahoo! Experian operates in 38 countries and ses to cients in over 65 countries around the word Countries where we have offices: Argentina Austraia Austria Begium Brazi Bugaria Canada Chie China Czech Repubic Denmark Estonia Finand France Germany Greece Hong Kong India Ireand Itay Japan Maaysia Mexico Monaco Netherands New Zeaand Norway Poand Romania Russia Singapore South Africa South Korea Spain Sweden Turkey United Kingdom United States

12 Expaining Experian 1.08 Key markets and soutions Austraia/NZ Brazi Bugaria/Romania/Russia Canada China France/Begium/ North Africa Germany/Austria/ Switzerand Itay Japan Latin America Midde East/Pakistan Netherands Norway/Sweden/ Denmark/Finand/Estonia Repubic of Ireand South Africa Other Asia Pacific Spain/Portuga Turkey UK US Credit Services Consumer bureaux t t Business information Automotive databases Insurance services Decision Anaytics Decision support Appication processing Fraud soutions Marketing Services Data and data management Research services Digita services Business strategies: Micromarketing t Economic forecasting Interactive Consumer Direct services Lead generation Service offered t Service offered via third party Key goba competitors Acxiom Credit Services Decision Anaytics Marketing Services Interactive Information D&B Equifax Fair Isaac Harte-Hanks infousa Inc Interactive Corp TransUnion Consumer Direct Lead generation

13 Expaining Experian 2.00 What we do 2.00 What we do Data At the core of Experian are comprehensive databases of credit and marketing information on consumers and businesses. These databases are derived from both pubic and private sources and contain extensive, high quaity information with considerabe historica depth. Our comprehensive portfoio of data is maintained and owned by Experian and offers a greater breadth of information than any singe competitor, making us a partner of choice to many cients. Decisions Buiding on this foundation of data, Experian uses proprietary anaytica toos to hep cients turn raw data into critica decisions in a timey and consistent manner. Our toos aso hep consumers to make faster and more informed financia and purchasing decisions. Distribution Experian ses to cients in more than 65 countries around the word and has offices in 38 countries. We aso serve cients in many different markets, incuding the financia services, retai, teecommunications, automotive and pubic sectors. This broad distribution patform is unmatched within the goba information soutions industry.

14 Expaining Experian 2.02 What we do : Credit Services Credit Services acquires, processes and manages comprehensive databases containing the credit appications and repayment histories of consumers and businesses. Using proprietary search and match systems and appication software, we deiver a wide variety of credit reports and reporting services on consumers and businesses to our cients. This heps them to end profitaby to their customers, and to maximise revenue and minimise risk. Other activities incude Experian s rea estate information joint venture caed FARES and our automotive and insurance databases.

15 2.03 Expaining Experian What we do : Credit Services : Consumer credit Experian s goa as a consumer credit reporting agency is to hep enders make better informed ending decisions and to make it quicker and easier for consumers and sma businesses to obtain finance. When a consumer appies for credit, enders usuay contact a credit reporting agency for a consumer credit reference check to confirm the person s identity and creditworthiness. Lenders use this information to manage the risks associated with ending money, such as determining whether to offer oans, setting credit imits or assessing accounts that are in defaut. Over the past four decades, Experian has deveoped core expertise in acquiring, processing, managing and operating very arge and comprehensive databases. These are the foundation of our consumer credit business. Experian operates 15 consumer credit bureaux across the word, maintaining information on over 400 miion consumers. In the US, our consumer credit bureau maintains very detaied historica information on how over 215 miion adut consumers have fufied their past and current credit obigations. The US consumer credit database is ranked by industry anaysts as one of the argest databases in the word and incudes over 10 biion ines of data. In addition to the US, Experian maintains consumer credit histories on over 260 miion consumers in the UK, Brazi, Spain, Itay, Norway, Denmark, Netherands, Ireand, South Africa, Bugaria, Russia, Romania, Estonia and Canada. Experian aso icenses proprietary credit bureau software to organisations in Turkey, Kuwait, Saudi Arabia, Nigeria, Kenya and Pakistan for the deveopment and operation of independenty owned credit bureaux. A credit reporting agency is an independent broker of information, provided either by enders or sourced from third parties. This data varies by country, but typicay may incude credit account information, which is provided by enders to aow them to access each other s credit history information. Typica exampes of credit account information are mortgages, persona oans, credit and charge cards, mobie phone accounts and renta information; court judgments or their equivaent for the country of operation; bankruptcy information; information on repossessions; information provided by the financia services industry on suspected frauduent appications; previous and forwarding addresses; association and aias information; coections data; eectora ro records. To check a consumer s credit history and store information with a credit reference agency, a company must have a egitimate need or permissibe purpose for accessing the data and must notify the appicant of their intention to contact a credit reference agency. In the UK, a company must hod a consumer credit icence (typicay hed by banks, buiding societies, finance houses, major retaiers and teephone companies). In the US, permissibe purposes for accessing a consumer credit report are defined by federa aw. The aws of each country wi vary in respect of the hosting of such data and access to it. Experian does not make ending decisions or offer any comment or advice on particuar appications, but simpy provides factua information. Lenders then use that information, often in conjunction with other information, such as that incuded in an appication form or in any previous agreements with the appicant, to hep decide whether or not to end. As we as credit reports, cients can aso use Experian s suite of notification services to drive their marketing, risk and retention programmes. The suite incudes: Risk triggers, which provide daiy notification of changes in a customer s credit behaviour, incuding new deinquent account information, new pubic record fiings or other negative credit information. It enabes cients to take quick action on potentia high credit risk accounts. Marketing triggers, which provide daiy notices of creditactive consumers who are most ikey to respond to specific pre-approved credit offers. Retention triggers, which identify customers within a cient s customer base who have started new credit account reationships or made new inquiries. It heps cients understand the ongoing credit activities of their most profitabe customers. VantageScore SM has been deveoped jointy by the three nationa credit reporting companies, with the aim of deivering consistent, objective credit scores on consumers from across their respective databases. VantageScore was deveoped as a direct resut of cient demand for a more consistent and objective approach to credit scoring.

16 Expaining Experian 2.04 Serasa is the fourth argest credit bureau in the word and maintains the argest database in Brazi comprised of information on 161 miion individua taxpayers (consumers). Credit information is currenty negative data ony and incudes pubic record data such as bankruptcies and coection suites, bounced cheques and defauts. Core consumer credit products incude: Credit Bureau: The most comprehensive Braziian report on consumers. It is a soution to hep companies to mitigate risk, increase profitabiity and improve their credit and business decisions with consumers. Concentre Consumer: Information on individuas creditor composition, bankruptcies, coection suites, bounced cheques and defauts. PEFIN/REFIN: Information on consumers with past due debts with financia institutions and other companies. ACHEI-Recheque: Largest database in Brazi on consumers who issue bounced, suspended, stoen, ost or canceed cheques. Scorings: Customer scoring risk to indicate defaut probabiity in a certain timeframe. Benefits of consumer credit reporting: Underpins economic growth by providing the information and toos necessary for extending credit to consumers and businesses. Heps consumers obtain credit, where appropriate, quicky and convenienty. Heps enders estabish an appicant s credit worthiness and grant credit prompty, where appropriate. Keeps interest costs ower than they woud otherwise be, as enders can make aowances for bad debt risks. Heps combat fraud. Enabes consumers to obtain a copy of their consumer credit fie at any time to understand what information the credit reference agency hods. Case study Major US retaier seects Experian for its consumer credit data The cient Koh s Department Stores operates famiy-oriented stores that feature quaity excusive and nationa brand merchandise priced to provide vaue to customers. Their stores se cothes, footwear, accessories and home products targeted to midde-income customers shopping for their famiies and homes. Koh s offers a convenient shopping experience through easiy accessibe ocations, we aid-out stores, centra checkouts and a good in-stock position which aows the customer to get in and out quicky. The issues/chaenges Koh s was searching for a business partner to provide consumer credit data for a aspects of their retai private abe credit card business. The company wanted to utiise a custom soution that focused on its business needs and objectives. In addition, it required quaity, accurate and timey consumer credit data to manage its credit decisioning process, approva rates and deinquencies whie maintaining a superior customer satisfaction rating. The soution Koh s seected Experian as its primary source for a consumer credit data. With Experian s custom soutions, it was abe to utiise Experian s credit data for account acquisition, account management and coections processes. In addition, Koh s used Experian s account review and notification services for account management purposes. By seecting Experian for its consumer credit data needs, Koh s has achieved its desired business resuts for its private abe retai credit card by meeting its targets for approva rates, deinquency rates and coections. Koh s has recenty decided to continue its partnership with Experian for another two year period.

17 2.05 Expaining Experian What we do : Credit Services : Business information Experian owns nine business credit bureaux across the word, maintaining information on about 30 miion businesses, typicay sma to medium-sized enterprises. We hep cients by providing them with industry-eading data to assist them in making credit and marketing decisions. Experian owns and operates business credit bureaux in the US, UK, Brazi, China, Itay, Denmark, Norway, Estonia and Ireand. A business information report contains pubicy avaiabe information from oca or nationay avaiabe sources such as Companies House in the UK or pubic record fiings in the US, together with other avaiabe sources of information. Experian s business information is avaiabe in various eves of detai, with deivery by a number of mechanisms, incuding the internet. As part of a typica report, the user wi receive some or a of the foowing: US company registration and incorporation detais, company number and registered address; ownership detais and principa activity of the company; trading addresses and phone numbers; names, home addresses, nationaity of company directors and company secretary (outside of US); payment behaviour (up to a 12-month history of how quicky the business is paying its bis); Commercia Dephi (Internationa) or Commercia Inteiscore (US) a company credit risk score and rating; Sma Business Inteiscore (US), which combines commercia and persona information on a business and its owner; any negative information such as county court judgments, winding-up petitions, tax iens and Uniform Commercia Code fiings or bankruptcies in the US; turnover, profit and oss and baance sheet information (UK up to ten years history where avaiabe). Nationa Business Credit Database: more than 19 miion business records with over 200 summarised credit attributes avaiabe. Pubic Record Extract: approximatey 30 miion credit records from state and federa pubic records. This provides users with access to corporate records, fictitious business names, bankruptcies, tax iens, judgments and Uniform Commercia Code fiings for direct marketing purposes. UK Limited Companies Database: a dynamic version of pubic record information on over 5.2 miion UK imited iabiity companies, incuding detais of payment behaviour, credit information and risk assessments. The resut is a comprehensive up-to-date anaysis of the financia and trading performance of UK companies. Directors Database: persona detais on a UK Company Directors and Secretaries; current/previous/dissoved directorships, secretaryships and partnerships; convictions; disquaifications; pus fu consumer detais. Nationa Business Database (NBD): is a comprehensive database of business information compied specificay for B2B marketing purposes. The NBD can hep businesses get the most out of their marketing budget. Database soutions incude targeted prospects and integrated direct marketing campaigns, database management and customer insight. Non-Limited Company Database: a vauabe decisionmaking too for evauating the track record of sma businesses and making informed risk management decisions. By providing insight into the financia background and payment history of a sma business, aong with reevant persona information on its proprietors, the depth of Experian s non-imited information is extensive, with information on over 2.9 miion UK sma businesses, partnerships and soe traders. Brazi Serasa maintains the argest and most comprehensive database in Brazi with information about how businesses of a sizes manage their credit obigations. Serasa maintains information on virtuay a businesses in Brazi, about 9 miion corporate taxpayers, and data incudes information such as pubic record information incuding bankruptcies, coection suites, bounced cheques, and credit obigations and payment behaviour. Core business credit products incude: Reato: Fu report on business behaviour incuding information on payment habits and fraud aerts. Credit Rating: fu report on company s credit record, economic, financia and behavioura information and credit risk rating. Concentre Business: Information on businesses incuding creditor composition, bankruptcies, coection suites, and financia pending matters. PEFIN/REFIN: Information on past due debts with financia institutions and other companies. Serasa Soution SMEs: consistent reiabe information about sma businesses for credit granting and doing business with the segment.

18 Expaining Experian 2.06 Ireand registration detais on registered Irish companies; financia information on over 100,000 registered Irish companies; detais of registered judgments against businesses since 1991; Itay detais of directors of companies in Ireand; registration detais of business names in Ireand. integrated database of pubic positive and negative information (from Courts, Chambers of Commerce and Land Registry offices), with more than 19 miion records registered; Itaian Chamber of Commerce data on companies (reports, baance sheets, company structure, judgments, administrators fies); rea estate data more than 1.5 miion reports on Itaian properties. Denmark registration detais on 550,000 Danish companies; registration detais on directors and board members of Danish companies; financia data on 170,000 registered Danish companies. Norway registration detais on 750,000 Norwegian companies; unique registration detais on managing directors and board members of Norwegian companies; financia data on a imited companies that have been in business for more than 12 months. Estonia registration detais on 150,000 Estonian companies; registration detais on directors and board members of Estonian companies; financia data on 64,000 registered Estonian imited companies; register for bad payers. Case study Taking the risk out of commercia easing The cient The cient is part of a arge commercia finance company, a goba eader in deveoping and providing financia soutions and services to equipment manufacturers, distributors, deaers and their end users. The issue/chaenges The cient wanted to shorten its turnaround time when screening appications for ease funding whie at the same time improving the quaity of the decisions that were made. The soution Experian s Commercia Lease Decision Score was chosen because of two key attributes. Firsty, Experian deveoped an industry-specific easing risk mode that was an idea fit for the cient. Secondy, Commercia Lease Decision Score was avaiabe via mainframe deivery, which meant that it coud be instaed within the cient s automated credit appication process. The cient s automated decisioning system retrieves an Experian Commercia Lease Decision Score and integrates the risk score into the cient s decision matrix that generates either an approva for a specific monetary amount or a referra to a credit anayst for individua attention. The Commercia Lease Decision Score enabes faster, accurate and consistent decisions, saving the cient time and improving credit quaity.

19 2.07 Expaining Experian What we do : Credit Services : Automotive services Experian provides vehice history information in the US, UK, Hoand and Itay to hep manufacturers, deaers, finance providers, insurers, auction houses, government agencies and consumers to understand the risk associated with any given vehice. Our vehice history information is used to estabish whether a vehice is currenty registered as stoen, has outstanding finance or has been registered as a write-off. A vehice history check can aso hep estabish the market vaue of a vehice, whether or not the vehice has changed owners or been imported and the accuracy of the odometer reading. Frauduent representation of used vehices poses a significant risk for consumers and a potentia iabiity for deaers, finance providers and insurers. In the US, around 40% of a vehices that are decared a tota oss or write-off are eventuay rebuit and put back on the road, often in different ocations, making it very difficut for the buyer or seer of a vehice to detect the fraud. Benefits of using a vehice history report: Heps consumers discover any adverse information to assist them in making an informed buying decision. Heps deaerships reduce risk, both financiay in terms of making a sound investment and egay in terms of compiance with egisation. Heps finance institutions and insurers reduce financia risk by providing specific vehice history. Heps provide auction houses with fu discosure at auction, enabing quaity standards to be maintained and increasing residua resae vaue. Heps government bodies assist aw enforcement in tracking vehices. Some of the various eements that an Experian vehice history report may feature (dependent on country ocation) are: vauation based on the age, type and mieage of the vehice (UK ony); make/mode, noted mieage, year of manufacture, coour, date of registration and engine number; number of previous vehice owners and date of ast change; mieage from odometer readings to identify possibe mieage discrepancies; detais of outstanding finance on the vehice even if the number pates have been changed; damage from major accident aong with cassification code of damage (UK ony); feet information whether a vehice is known to be rented, a taxi-cab or a company vehice (US ony); forfeiture information whether a vehice has been abandoned or repossessed (US ony); theft reported ost/stoen or recovered from theft; CO 2 emissions.

20 Expaining Experian 2.08 Case study Experian s Autocheck vehice history reports hep buid buyer confidence The cient CarMax is the argest retaier of used cars in the US and currenty operates 80 used car superstores in 38 markets. The issues/chaenges To improve the customer buying experience and increase buyer assurance, CarMax wanted to provide accurate and timey information on the history of a vehice through a soution that coud be easiy integrated into the company s onine inventory and its rigorous on-site vehice inspection process. Utiising its experience within the industry, Experian Automotive worked cosey with CarMax to hep them impement soutions that woud meet both its needs as we as those of its customers. This incuded providing access to the most up-to-date information on a vehice s history which woud aso revea any possibe undiscosed or unknown probems that coud affect an automobie s safety and resae vaue. CarMax Auto Finance aso utiised Experian s coections, fraud protection and credit soutions to evauate a customer s credit and pair them with the best financing option. The soution Experian Automotive s AutoCheck vehice history reports have been adopted as part of CarMax s comprehensive inspection process for a vehices they se in their outets. Experian Automotive s AutoCheck FreeLink service, has heped CarMax to buid buyer confidence and provide added peace of mind by offering free, customised vehice history reports on over 25,000 avaiabe vehices. In addition, CarMax Auto Finance uses Experian s Coection Report to hep reduce abour costs for critica account management practices such as ocating a debtor or debt coection. The finance house aso uses Experian Credit Reports to evauate consumer credit and assess risk for new and used vehice financing, and Experian s Fraud Shied SM to assess both credit risk and gain a fu perspective on an account s fraud or potentia first-payment defaut risk. This has heped CarMax to reduce the abour costs associated with prioritising and pursuing errant debtors.

21 2.09 Expaining Experian What we do : Credit Services : Insurance services Experian s insurance services in the UK provide dedicated saes, account management, systems and business consutancy service teams, who work with insurance organisations to deiver comprehensive information soutions for marketing, underwriting, risk assessment, caims handing and fraud prevention and detection. The range of services enabes insurers to target new customers more precisey, improve pricing accuracy, prevent fraud, reduce costs and buid more successfu customer reationships. A number of databases and services have been deveoped or taiored specificay by Experian for insurance organisations. Caims and Underwriting Exchange (CUE): UK insurance industry shared databases of househod, motor and persona injury caims. This data is used at a stages of the customer ife cyce, from quotation and poicy acceptance, through to renewa and caim. Insurers benefit from fraud prevention through the identification of non-discosure and concurrent caim activity with other insurers, improved customer service through reduced ca time and confirmation of caims history and more accurate pricing. Motor Insurance Database (UK): Experian operates the Motor Insurance Database, a UK motor insurance initiative to combat uninsured driving, on behaf of the Motor Insurers Bureau. The Motor Insurance Database hods detais on a UK insured drivers, covering 25 miion private insurance poicies, 30 miion private vehices and over 4 miion commercia vehices, with a motor insurers required to suppy information. The database is centra to the fight against uninsured driving and receives around 75,000 enquiries a day from the poice. Peris: data modes providing rating and geographica information on subsidence, theft, wind, coasta and river fooding, freeze and fire to assist insurers in the rating process and verify pricing. For caims, Peris data can hep assess potentia fraud and anayse and vaidate caims. Uncaimed Assets Register (UAR): a database of over five miion owners of uncaimed financia assets. The UAR heps financia institutions, such as insurers, pension companies, unit trusts and isted companies to address the issue of ost customers and gone-away investors by providing sophisticated eectronic tracing and a centra repository for owners of uncaimed investments. The UAR s search service heps consumers and probate professionas recover ost investments, such as ife poicies, pensions, unit trusts and share dividends. Existence Verifier: a database to assist the pension industry in determining the ikeihood of pensioners being deceased in order to identify and cease overpayments. Information from the Office of Nationa Statistics is enhanced with Experian data to provide an effective verification process for pension schemes and annuity providers. Vehice provenance/history checks: advanced vehice identity and provenance systems, containing detais of a registered vehices (marketed as Car Data Check through the AA in the UK and AutoCheck in the US and Itay). These systems are widey used in the motor insurance quotation, underwriting and caims processes. Eectronicay avaiabe vehice information instanty confirms a vehice s identity and highights any inconsistencies. Benefits to insurers incude minimising fraud and data inaccuracies and increased efficiency through reduced ca duration and better customer service. In addition to its speciaist insurance services, many products from Experian s wider portfoio provide support to the UK insurance market.

22 Expaining Experian 2.10 What we do : Credit Services : FARES (First American Rea Estate Soutions) In December 1997, Experian contributed its US property database businesses into a joint venture with First American Corporation. The joint venture, known as First American Rea Estate Services (FARES), is a subsidiary of First American Corporation (NYSE symbo FAF) and is 20% owned by Experian. Experian accounts for FARES as an associate, showing its 20% share of FARES profits but no saes. First American Corporation speciaises in offering mortgage enders a of the information required to underwrite mortgage oans in the US. This incudes tite insurance, which insures against the risk that a newy acquired piece of property has a defective tite, such as an undiscovered tax ien or a forged deed. FARES forms the major part of First American s Information Technoogy division. Products and services of the FARES joint venture FARES aim is to offer a one-stop shop for information required on property transactions (incuding re-financing). The information is normay provided to mortgage enders, rather than to those purchasing the property. Services incude: Data content The database incudes the foowing types of data: compete owner name and address; property ocation information; detaied property characteristic information, where avaiabe; saes and transfer records, arm s-ength transactions, nomina transfers, forecosures and deeds to trust; mortgage financing records; tax assessor maps. CoreLogic In February 2007, First American merged the FARES business with CoreLogic Systems to expand further its mortgage risk anaytics business. The merger is majority owned by FARES and creates a singe unified company with unique data and predictive anaytics that enders, investors and consumers need throughout the mortgage process. Mortgage credit information through FARES c.30% ownership of First Advantage Corporation (FADV). Tax monitoring: FARES advises property mortgage enders of the status of property tax payments due on rea estate securing their oans (i.e. whether they have been paid or not). Food certification: FARES has a food reporting database, giving detais of a reported insurance caims resuting from food damage, enabing it to certify where a property is not at materia risk from fooding. Property vauations: these can be either manua (based on an appraiser visiting the property) or automated (using FARES database information on the size and ocation of the property). Mortgage document preparation. Property inspections: this is the physica inspection of properties in the forecosure process. Sources of data Property data is coected from pubic sources (e.g. county/ municipa tax assessor and recorder s offices) and from commercia and private sources, which enhance the data with demographics, property characteristics and amenity information. The nationa coverage extends to 85% of the entire rea estate activity in the US, with data on 100 miion properties updated annuay and an average of two miion property and mortgage transactions each month.

23 Expaining Experian 2.12 What we do : Decision Anaytics Decision Anaytics unocks the vaue of Experian s vast Credit Services data assets and other data sources by appying anaytica toos, scoring, software and systems to convert data into vauabe business decisions. Decision Anaytics offers two key services: credit anaytics and decision support software and fraud soutions. Decision Anaytics products are used by mutinationa cients to standardise their operations around the word and are often used as the key method of entry into new geographic markets. They are a significant growth opportunity for the business because of their potentia for goba reach and their position at the forefront of product deveopment and innovation. Decision Anaytics toos can utiise a cient s data or other third party data and operate most effectivey when using Experian s own credit data.

24 2.13 Expaining Experian What we do : Decision Anaytics : Credit anaytics and decision support software Experian has deveoped a goba expertise in statistica anaysis and scorecard deveopment to enabe cients to make consistent, high quaity and efficient decisions about credit risk, customer marketing and account management. Its products fa into four main categories: Scoring Strategy Management Strategy optimisation Appication processing Scoring Statistica anaysis of data is used to define the characteristics (variabes) that are most predictive of a consumer s future behaviour. A scorecard typicay contains a ist of characteristics each of which is assigned points that refect whether it is a positive or negative indicator of future behaviour. Usuay, the characteristics that are associated with high risk resut in an appicant osing points, whie those inked to ikey good performance (number of accounts paid on time, for exampe) wi gain points. When the points for a the characteristics are added together, the resut is the fina score for each individua. This fina score is judged against a pre-set range that the ender has determined is an acceptabe risk, based on the ratios of good accounts to bad accounts. A credit cut-off score is the owest acceptabe fina score. Any appications that score beow this are rejected or are offered a product with different pricing and terms. There is not usuay one singe characteristic that woud cause an appication to be rejected the scorecard baances a eements and it is the overa picture that counts. Types of scoring modes avaiabe incude: Appication scoring modes are used by enders at the time of issuing a new credit arrangement to assess the statistica probabiity of the account faing into arrears in the future. Scoring enabes enders to identify correcty the quaity of an appicant against their own criteria before choosing whether to accept or decine the appication. Behavioura scoring is used throughout the customer ife cyce to hep enders assess a customer s suitabiity for additiona products, based on their previous account payment history and credit behaviour. Credit risk scoring uses previous payment history to predict the ikeihood of future credit risk. Credit risk scoring heps reduce the number of ow quaity, high-risk credit appicants that woud previousy have been accepted by the ender. Credit risk scores are aso used to hep set pricing and terms for new credit offers. Credit marketing response scores are used to predict the ikeihood of a consumer responding to a new offer of credit. Experian aso offers bespoke decision support software to enabe cients to process appications more efficienty and to impement, manage and optimise customer strategies. Benefits of using scorecards for organisations: unbiased anaytica assessment, not reiant on an individua judgment; decisioning is consistent whenever and wherever it is appied; provides the ender with improved contro over acceptance eves and bad debt eves; reduces bad debts typicay by 15%-30% over traditiona subjective decisioning. Benefits of using scorecards for consumers: appicants are treated equay and are not subject to the persona views of credit underwriters; offers made are reevant and targeted; creditworthy appicants are more ikey to have their appications accepted; by screening out those accounts most ikey to go bad, companies can expand the number of other appications that are accepted; by controing bad debts, companies are keeping costs down and thus interest rates, making products more affordabe.

25 Expaining Experian 2.14 Strategy Management Experian s Strategy Management soutions hep eading companies around the word to make more inteigent, faster decisions about whether to accept new (and unknown) customers, extend the credit arrangements for existing customers or target them with new products. Strategy Management is used at every point of the reationship with a customer, from first targeting and accepting the customer into the organisation, to monitoring their performance and determining when woud be the best time to offer new or additiona products. In the event that an account fas into arrears, Strategy Management can define what processes to adopt in managing the account through to coections and recovery, incuding suggesting appropriate foow-up actions at every stage of the process. One of the key features of Experian s Strategy Management soutions is that from their own PC, cients can design and test new strategies. By segmenting customers based on simiar characteristics and appying scorecards for a range of objectives, an organisation can accuratey assess an individua against their objectives and make the right decision in order to achieve their goas. Strategy Management soutions may be integrated with appication processing, marketing or customer management systems. They may aso operate independenty in an organisation to guide strategy and poicy decision-making. Typica users of Experian s Strategy Management soutions incude credit risk underwriters (making the decisions about who to end to), credit marketers (deciding which variation of a product to offer a given appicant or existing customer and on what terms) and credit risk managers (deciding on the mix of appicants for the company to baance financia risk and returns). Benefits for a credit-issuing organisation: increase the number of accepted credit appications without increasing financia risk; reduce origination costs; generate customer oyaty by providing rapid and taiored decisions for each individua; provide greater speed and contro in the deveopment and deivery of customer acquisition and customer management strategies; ensure consistency of rues and strategies depoyed throughout a branch network and over mutipe geographies. Benefits for a consumer: faster acceptance of credit appications; better customer service, with quicker acceptance and more targeted marketing offers; not reiant on subjective decisions of individuas. Strategy optimisation Experian s Strategy Optimisation heps eading companies around the word make the best decisions about each account in a portfoio in order to yied the highest profit and return on investment. Strategy Optimisation maximises profit and return on investment by identifying the most profitabe decision for each and every customer interaction. Experian s optimisation technoogy uses patented mathematica agorithms to cacuate these decisions across portfoios or on a recurring basis such as is required in appication processing. Strategy Optimisation can be used at every point of the reationship with a customer. The optimisation technoogy can be depoyed stand-aone or within Experian s Strategy Management soutions to ensure an efficient, integrated and superior decisioning soution. Benefits for a credit-issuing organisation: maximises profitabiity and return on investment for every customer interaction; fexibe, easy to use software; abiity to arbitrate across competing business goas, objectives and operationa constraints; robust simuation and decision panning.

26 2.15 Expaining Experian Case study Experian Strategy Management to hep HSBC make biions of ending decisions each year The cient HSBC is one of the word s argest banking and financia services organisations, with over 125 miion customers in 82 countries. Everyday, HSBC makes miions of decisions in the management of its customers accounts and appications. It may be to authorise a payment to faciitate an internet or in-store purchase, to consider an appication for a new or increased credit imit, to determine the most appropriate product to offer, or to decide whether a customer can access money from a cash machine. The issues/chaenges The abiity to make those decisions quicky and accuratey is critica to the success of HSBC s different deivery channes and operations around the word. Just as important is that each decision is made in a timey, consistent and fair manner, wherever they are made and whatever the circumstances. The soution Faced with increasingy compex requirements and customer demands, HSBC chose Experian s Strategy Management software to assist in the deivery of mission-critica soutions. Strategy Management is a sophisticated business too, used by over 600 organisations wordwide, that enabes organisations to automate or simpify arge voumes of decisions. It does this by assessing reevant information and customer requests against a wide array of reguatory, business and commercia requirements and objectives. Experian s Strategy Management soution wi become an integra part of our goba business, expains Chris Hawkes, Head of Group Retai Credit & Risk at HSBC. It is enabing us to achieve consistency in decision-making across HSBC s diverse operations, whist improving the speed and quaity of our decisions. For our customers, it means that we can provide quicker decisions, offer a wider range of products and provide options that are more reevant to their particuar needs and circumstances. In short, it is an essentia component to deivering high quaity customer service. Once we have roed it out fuy across our business, Strategy Management wi be heping us make the biions of decisions we need to make each year. Experian and HSBC have a ongstanding reationship spanning 21 years and six continents. Like HSBC, Experian operates gobay, but with a strong oca focus on the markets in which it operates in order to provide oca soutions says Chris Hawkes. In Experian we have a trusted goba partner with the experience and technoogy to support our business going forward.

27 Expaining Experian 2.16 Appication processing Experian offers a range of scaeabe appication processing soutions around the word to manage a stages of the credit appication process, from capturing and verifying appicant information, to anaysing and scoring the information and impementing a ender s acquisition poicy. Our appication processing systems hep enders to reduce the cost and time taken to prepare data, whist improving the speed with which an appication can be processed. Data is captured from a ender s competed credit appication form, over the teephone or onine, and can be combined with additiona information derived from existing databases, either within the cient organisation or from other third party sources (incuding inks to over 70 credit bureaux around the gobe). Experian s appication processing systems, incorporating Strategy Management, are designed to ensure that appropriate data can be input into a ender s systems simpy and efficienty, providing inteigent hep features, short form address capture (eiminating the need to type out standard address eements in fu) and appicant address targeting. A these features hep enders to reduce the cost and time taken to prepare data and train staff to use the system. For the consumer, they improve the speed with which an appication can be processed. Key products and systems incude: Transact SM (software); Connect+ (hosted soution); Autoscore; CEMS (customer event management system); Baker Hi. Benefits: Streamines business processes by providing fu automation of the customer acquisition process. Enhances customer service and product take-up with decisions deivered in seconds at the point of customer contact. Minimise fraud and associated reputationa osses by incorporating appication and identity fraud checks. Improves customer decisions by incorporating shared data from many other ending organisations into the process. Assesses data using sophisticated anaytics and a ruesbased decision engine. Improves management information and understanding of customer trends by using comprehensive reporting faciities. Typica users of appication processing systems incude: banks; credit card issuers; organisations that grant persona or trade credit; mortgage enders; insurers; retai finance companies; mobie communications providers; home shopping companies; onine ead generation companies.

28 2.17 Expaining Experian Case study Major finance company impements automated decisioning across Europe The cient The cient is a eading commercia and consumer finance company, providing customers with financing and easing products. The issues/chaenges They needed a soution that woud automate credit decisioning, decreasing processing time and increasing the voume of appications from customers. They wanted to consistenty impement and centray contro ending poicies, risk management and credit decisioning by integrating the soution with their operations across Europe, but sti aow for bespoke credit decisions in each country. The soution For efficiency and speed of process, it was important that the cient had a singe consistent system that provided instant rea-time decisioning. They chose the goba appication soution, Transact SM from Experian. The cient s Transact SM soution receives, vaidates and processes appications from mutipe channes. It is a centraised muti-country, muti-anguage and muti-currency soution, which aows the cient to input data from externa credit bureau sources and provide bespoke automated credit soutions to each of its vendors in each country. Transact SM gives the cient a singe web-based soution across a countries to enabe the centraised management contro and reporting that was key to their requirements. Foowing impementation, the cient saw automated decisioning rates up 75% within three months of operation through a streamined, efficient operation with 80% of automated decisions made in ess than 20 seconds. Risk management has been enhanced through consistent decisioning, appication costs are controed and the cient can grow through the rapid depoyment of the soution into new operations and territories. The cient s Head of Risk, said, This project has been a great success as we have been abe to depoy Transact SM easiy with the support of Experian s business consutancy in mutipe country ocations. This, couped with its technoogy, makes Experian an idea partner to hep us depoy and grow our business in new markets.

29 Expaining Experian 2.18 Case study Customer service eves improved and bad debts reduced by fifty per cent The cient The cient is the UK s eading office suppies provider with thousands of sma business customers making arge numbers of generay sma purchases. The cient is renowned not just for the quaity and breadth of its offering and pricing but aso for its customer service, especiay the fast turnaround of orders. The cient aready uses commercia credit scoring to ensure a the necessary credit vetting is undertaken prior to processing orders in a fast and efficient manner. The issues/chaenges Due to data quaity, the cient s existing credit scorecard system did not provide consistent credit ratings and was unabe to provide decisions. The cient decided to undertake a rigorous data tria to check the data quaity of its existing system against an Experian automated decisioning system. In 85 90% of cases, the Experian system returned a fu report and credit score, even on the smaest of companies. This compared very favouraby with the cient s existing suppier, which ony returned a fu report in 17% of cases. The soution The cient switched to Experian as a resut of the tria and was provided with access to the onine commercia credit appication processing system, incorporating onine business and consumer information as we as Commercia Dephi, a highy predictive scoring soution. This onine approach has enabed the cient to improve the speed and quaity of its credit decisions and has made a huge difference to debt reduction. By the end of the first year of use, it had reduced bad debt by fifty per cent directy infuenced by the new credit scoring system, which is used to check new and renewed business. Existing customers are now checked on a roing tweve months basis. The Credit Controer for the company commented: The fact that Experian is abe to access ots more information, incuding the track records of directors, County Court Judgment history and payment performance data, has been hugey vauabe and made a considerabe difference to our business. We are abe to make more profitabe decisions more effectivey and have consideraby reduced our exposure to risk and unpaid debt. Customer service eves have aso improved thanks to the speed and quaity of our credit decisions.

30 2.19 Expaining Experian Business ending soutions Baker Hi has been focused on the banking industry for more than two decades. It deivers soutions that address the needs of banks, when ending to sma and medium-sized enterprises, and works as a trusted advisor to its banking cients. Baker Hi understands banking processes, knows how to impement technoogy to enabe those processes and has a ong history of cient success. More than 1,100 financia institutions in a segments have chosen Baker Hi s reationship management, credit origination and portfoio risk management soutions as their enabing technoogies. Baker Hi offers integrated technoogy soutions and genera consuting and training for the financia services industry. It was an eary industry eader in providing cient reationship management systems, offering web-based origination soutions that address a bank customer s entire reationship cyce. The soutions combine cient management systems with process-fow soutions and can be easiy integrated with an organisation s existing technoogies to improve customer service. Reationship management soutions incude One Point and Baker Hi Advisor. These enabe an organisation to integrate a commercia ending processes and to create a singe credit fie, together with a cross-departmenta cient fie for each cient reationship, ensuring everyone in the organisation is working from the same base of information. Baker Hi s credit customer acquisition soutions automate the origination and underwriting process to free reationship managers of manua processing tasks. With four soutions sharing one common technoogy patform, there is ess risk of redundant data entry and a reduced error rate. The soutions cover the entire oan process from appication to underwriting and acceptance, document preparation and booking. Soutions from Baker Hi cover bank reationships with sma and arge businesses and consumers. The sma business capabiity strengthens Experian s offering in the US. Increasingy, Baker Hi s competencies and soutions are being combined with Experian s and have resuted in the aunch of new products. These incude Portfoio Risk Advisor, which combines risk management soutions with the power of Experian s scores and data to give financia organisations a greater understanding of the strengths and weaknesses in their credit portfoio.

31 Expaining Experian 2.20 Case study Loan processing reduced from two day turnaround to four hours The cient Frost Bank is the banking subsidiary of Cuen/Frost Bankers Inc, a financia hoding company in the US with assets of $11.6 biion. The Bank provides a fu range of business and consumer banking products, investment and brokerage services, insurance products and investment banking services. It operates more than 100 financia centres from its headquarters in Texas. The issues/chaenges Frost Bank processes sma-business oans under $250,000. With its size and rate of growth, Frost had two chaenges. The first was to standardise and streamine its oan origination processes, and the second was to simpify the management of its growing oan portfoio. The bank previousy used a variety of systems. To compete the oan process the same information had to be manuay entered into these different company systems. The bank aso wanted to save vauabe resources and improve efficiency by using automated oan portfoio monitoring, which woud hep re-direct its staff s focus to accounts requiring more detaied anaysis and aso hep increase the rate of renewa for high-performing accounts. The soution Frost Bank s choice was to use Bank2Business and Portfoio Risk Advisor from Baker Hi. Bank2Business is a hosted service that uses browserbased technoogies to automate the sma-business oan process to manage the compete appication process from inception through document preparation to boarding and oan servicing. It aso offers faster appication processing, easier oan appication tracking, high soution up-time, a scaabe processing system, and quick soution set-up. Portfoio Risk Advisor everages Baker Hi s riskmanagement expertise and the power of Experian s data and anaytics to hep cients to mitigate risk and streamine their portfoio management process. By integrating interna origination and performance data across the bank with externa scoring data, Portfoio Risk Advisor deivers an accurate, point-in-time view of the bank s entire portfoio. Bank2Business has improved the efficiency of oan processing at Frost Bank. Since the soution went ive, the bank has reduced the appication turnaround time for smabusiness oans from an average of two days to four hours and increased the number of oans processed from 100 per month to 350 per month without having to hire additiona underwriting staff. Portfoio Risk Advisor has streamined Frost Bank s smabusiness oan review and renewa processes. In addition, the soution has heped to identify deteriorating accounts before they became a probem.

32 2.21 Expaining Experian What we do : Decision Anaytics : Fraud soutions Experian offers a range of fraud prevention toos which are used by hundreds of the word s eading financia institutions. By sharing vauabe and timey information about known frauduent appications and transactions with other business sectors nationwide, greater fraud prevention success can be achieved. Authentication services provide the information needed to instanty verify customer identity and prevent fraud, whie conducting secure transactions onine and at ca centres. Credit card verification checks whether a customer is using a vaid, authorised credit card. It authenticates the user s ink to the card in rea-time to avoid transaction processing deays and potentia fraud. Charge-backs and frauduent transactions can be reduced significanty by verifying that consumers are using authorised credit cards. Detect provides significant savings to credit grantors by highighting fraud instanty at the point of appication, before the oan or persona finance faciity is granted. Detect finds fraud by comparing appication detais with a range of data sources to identify anomaies that highight potentia frauduent appications. A powerfu fraud checking system and predictive fraud scorecard are used to interpret unusua matches in the data, which can indicate that the appication may be frauduent. E-identitycheck combats identity fraud by providing a quaitative assessment of the degree of confidence a cient can have in a customer s identity. It accesses severa hundred miion consumer information records in Experian s databases and then appies powerfu Detect processing, which highights identity fraud. The resuts of the processing are dispayed in the form of an identity index vaue with the data that was used to cacuate it. Fraud Shied offers protection from even the most sophisticated appication fraud by aunching a comprehensive series of checks, searches and counters to screen every appication against information in the credit report. Fraud Shied Score is a unique soution that combines the most predictive fraud and high-risk indicators into one score for US cients. It heps identify which appications are most ikey to be frauduent or in need of further review. Hunter identifies frauduent new accounts or caim appications throughout the financia services, teecommunications, retai and insurance sectors. It does this by automaticay checking new appications and caims against themseves, any previous appications or caims, suspect information and known frauduent data. The atest version, Hunter II, provides onine functionaity, enhances workfow to increase productivity amongst fraud prevention teams and uses artificia inteigence techniques to rank and prioritise matches according to their potentia for being frauduent. Knowedge IQ chaenges response processes using persona, confidentia questions from credit and other databases to which ony the consumer knows the answer. Nationa Fraud Database is the first shared database of known cases of fraud in the US. Experian has joined forces with a consortium of businesses from severa industries to provide a singe point of access to consumer fraud records. The Nationa Fraud Database is a powerfu resource used to highight fraud patterns and define and identify fraud attributes. Subscription to the Nationa Fraud Database is open to any business entity that needs information on known fraud records and represents data from a variety of sectors, incuding banks, credit card issuers, teecommunications providers, automotive companies, retaiers, insurers and mortgage enders. Precise ID vaidates and verifies appication data through mutipe credit and non-credit databases and returns highy predictive fraud and identity risk scores.

33 Expaining Experian 2.22 Case study Experian s Authentication Soution improves cient s abiity to prevent fraud over the internet The cient CheckFree is a eader in providing financia eectronic commerce services and products, from powering eectronic biing and payment and automating financia transactions, to streamining reguatory reporting tasks. The issues/chaenges Fraud and identity theft are a growing concern today on the internet with financia impications for both the consumers and the internet companies invoved. CheckFree s concerns were that they needed to obtain a better performing consumer ID verification soution for authenticating new members during their onine enroment process. CheckFree interviewed a number of data providers using the foowing seection criteria: ease of impementation, quaity of data, pass rate and cost per acceptance. Their stated goas were to improve their existing pass rates whie aso achieving greater operating efficiencies. The soution CheckFree seected Experian s Authentication Soution for ID verification to meet their goas. Authentication Soutions is a powerfu tiered appication empoying proprietary Experian technoogy to verify and authenticate a consumer s identity. CheckFree sent Experian an initia test fie for processing which yieded resuts that surpassed CheckFree s expectations. Experian was awarded a piot test for its product and participated in a champion chaenger test. The piot test ran for three months before the contract was awarded. Foowing a rigorous anaysis process, decision makers at CheckFree viewed Experian s soution as the best choice because of the quaity of Experian s data, improved pass rates, ease of impementation and reduced costs achieved through automated processes. The soution is presenty operating in a ive environment and thus far has heped CheckFree improve operating efficiencies and historica pass rates by 5 per cent.

34 2.23 Expaining Experian Case study Experian s Hunter II saves miions in fraud prevention for RBS The cient The Roya Bank of Scotand Group (RBS) is one of the word s eading financia services providers. RBS activities cover account management, savings, oans and credit cards for both professionas and private individuas. It aso ses ife and genera insurance and investment products through its subsidiary Direct Line. The issues/chaenges Fraud is growing rapidy with fraudsters becoming more sophisticated and operating on a goba stage. Protecting customers in different markets over a wide range of products is a significant, ongoing chaenge for arge organisations, said David Bowerman, Director of Group Security & Fraud. The first and best strategy is prevention, identifying and stopping fraudsters at the point of initia contact, such as when they appy for an account or, for insurance, when a poicyhoder makes a frauduent caim. The soution RBS chose to upgrade to Experian s HUNTER II soution which wi become the Bank s primary appication fraud detection patform heping prevent fraud for a areas of the retai banking and genera insurance divisions. The soution combines fexibe corporate data sharing, a group-wide search capabiity, detaied management information, toos and reports, fexibe and configurabe referra management and access to vaue added data sources, whist fufiing both onine and batch processing requirements. In seecting Hunter II, RBS wi take a corporate approach to fraud prevention, providing a singe patform that faciitates effective data sharing at a group eve. HUNTER II wi be used across 27 brands, 21 product types and tens of miions of customers, supporting RBS s current and future business pans. Experian s consutants have worked with RBS to design and impement a soution that covers many varied requirements, optimising both best practice and fufiing user training needs. RBS is currenty using Hunter II to screen in excess of 20,000 customer appications per day. The initia Hunter impementation has achieved muti-miion pound fraud prevention benefits, with additiona financia and efficiency savings predicted as the soution is fuy impemented across RBS.

35 Expaining Experian 2.24 What we do : Marketing Services Marketing Services heps cients to acquire new customers and to manage their reationships with existing customers across mutipe channes. It acquires, processes and manages arge and comprehensive databases containing geographic, demographic, ifestye and attitudina information on consumers. Experian then appies its proprietary scores and software to hep cients precisey target specific offers to consumers and businesses through mutipe channes. By appending hundreds of characteristics (e.g. type of residence, number of peope in the househod, estimated income and consumer interests such as eisure, sports and shopping preferences) to the data hed in the databases, Marketing Services provides cients with information and toos designed to assist them in matching the reevant offer or product to the right customer. Marketing Services aso assists cients in panning and executing communication campaigns through a variety of media channes, ranging from direct media such as mai, emai, SMS, Internet and teephone to mass media such as newspaper and teevision advertising.

36 2.25 Expaining Experian What we do : Marketing Services : Data and data management Experian enabes cients to communicate effectivey with their customers through mutipe channes. We hep cients target consumers and businesses for customer acquisition, deveopment and retention campaigns, managing and executing those campaigns and, finay, measuring and refining marketing strategies. Our marketing databases are the foundation for these skis. Databases Experian has a coection of databases that provide geographic, demographic, financia and ifestye information on miions of consumers around the word and on businesses in the US and UK. This information aows Experian to offer highy targeted ists of potentia customers to our cients and to enhance the information hed by them about their existing customers. Cients seeking consumer information can make seections based on the profies of their most profitabe customers or seect from speciaist ists, such as new parents, new homeowners or investors. The Canvasse and BehaviorBank ifestye databases in the UK and US use arge-scae surveys that provide insight into the buying habits and interests of consumers. This sef-reported information ranges from the age, income and occupation of consumers to their hobbies and individua brand preferences. Experian has aso deveoped information sharing among data providers, such as Z-24 in the US and Cub Canvasse in the UK, which brings together shared customer transactiona data from cataogue retaiers. Searching and seecting ists of names is carried out by Experian on behaf of cients or by cients themseves at their desktop using Internet-based technoogy. Data is deivered via abes, tape, CD ROM, fie transfer protoco or secure emai. Experian is one of the word s argest information providers and provides cients with the abiity to identify customers (ists), understand customers better (ist enhancement) and predict response and purchase behaviour (anaytics). Experian s breadth, depth and quaity of data provide a cear competitive advantage. US databases BehaviorBank: consumer-suppied ifestye data with coverage of more than 35 miion househods. Business Owner Link: over 6 miion demographic records on both the business and the owner, heping cients modify their marketing efforts to appea to specific audiences. CircBase: cooperative database of direct mai respondents for pubishers, covering 161 pubications and 63 miion subscribers. Cottage Industry Fie: over 3 miion home-based businesses identified on the Nationa Business Database. This segment is unmatched in the industry by any major competitor. Hotine Fie: new and recenty reocated businesses, with more than 250,000 businesses added each month. INSOURCE Nationa Consumer Database: one of the argest marketing databases in the US, with information on 215 miion consumers in 110 miion iving units incuding new parents, new homeowners and new movers. Nationa Business Database: the argest and most extensive B2B marketing database in the industry, hoding information on more than 19 miion businesses, with a unique combination of geographic, demographic, ega, financia and credit data. Z-24: coects and shares information from over 700 cataogue retaiers. UK databases Canvasse: sef-reported data on over 14 miion individuas seectabe by over 6,000 variabes. Cub Canvasse: shared customer transactiona data from approximatey 225 mai-order organisations. Nationa Business Database (incorporating Ye data): marketing data on over 4 miion businesses and 5 miion contacts in the UK, from singe-person businesses operating from home to muti-subsidiary corporations. Data is captured from a combination of pubic and unique sources incuding Companies House, Thomson and Ye, in addition to our own in-house Directors Database, corporate tree information and credit and risk fie. Nationa Canvasse: Eectora Ro repacement, comprising compiant information suppied by consumers in the past 12 months; provides comprehensive coverage of the UK adut popuation.

37 Expaining Experian 2.26 Case study Experian s Z-24 co-operative database strengthen s customer reationships The cient Crate and Barre is recognised across the US as a eading muti-channe retaier of househod goods and furniture. The company was founded in 1962 as a famiy business and today has more than 150 stores and over 7,000 associates nationwide. During this time, it has aso become a major cataogue and Internet retaier. The issues/chaenges Direct marketing has been a key ingredient in Crate and Barre s success and, for more than 15 years, the company has ooked to Experian to hep drive its cataogue and retai campaigns in many ways. The soution Underpinning these campaigns is the confidence that Crate and Barre s customer database is operating effectivey and that it is successfuy reaching the right customers. Experian provides a range of ist processing services to ensure that the company s maiing ists are accurate and up-to-date, as we as being compiant with posta reguations and propery formatted for quick and easy processing through the mai. Prospecting for new customers is a key priority. Crate and Barre needs access to potentia customers with simiar behaviours and ifestyes as its own, as we as a good understanding of these customers so that it can market to them in the most effective way. By participating in Experian s Z-24 co-operative database, Crate and Barre has access to miions of avid cataogue shoppers, enabing the company to continue growing its customer base. Its prospecting efforts have aso been supported by expert anaysis from Experian of the responses to campaigns. This heps Crate and Barre to identify those consumers that wi be most responsive to its direct marketing and to determine the most appropriate messages and offers. With the adoption of new onine saes channes, Crate and Barre has aso needed an emai service deivery soution that can hep drive the same success in the digita word that it has experienced with direct mai. The company has therefore adopted Experian s CheetahMai services to deiver a of its emai marketing offers. The partnership with Experian has been a ong and successfu one, said Gordon Sega, Director of Direct Marketing at Crate and Barre. Experian has heped Crate and Barre maintain a strong reationship with ifeong customers, whie ensuring that we continue to grow our customer base.

38 2.27 Expaining Experian Database marketing Experian heps cients to buid and manage their own databases, combining both Experian and cient data. For cients that aready have in-house databases, Experian is abe to provide toos and information to ensure that these databases operate more effectivey. Experian s database marketing soutions aow cients to have a compete view of their customer reationships and to determine both current and potentia vaue of these reationships. Experian designs, buids and manages marketing databases for arge companies with miions of customers, aowing them to undertake mutipe transactions on a daiy basis and through different channes. It works for financia services providers, entertainment companies, mobie phone operators and Internet service providers. Cients incude Barcaycard, BSkyB, Morgan Staney, O2 and Orange. Customer data integration Experian aunched Truvue in the US and Europe to enabe businesses to integrate mutipe data sources to get a singe, accurate view of each customer. Truvue uses Experian s core experience in name and address matching, but adds an extra dimension by using the argest, most comprehensive reference database to provide a more accurate match, even if the consumer has moved address. Truvue initiay ceanses and integrates customer data, assigning a persistent identifier to each unique consumer record, giving it the abiity to track customers over time. Once the Truvue ID is assigned, Experian can identify changes in consumer data and push updates to cients. The Truvue process eiminates unnecessary data handing and impements a more efficient database update process. When deveoping marketing databases for its cients, Experian uses its own unique technoogy patform and anaytics to integrate data and software that best meet its cients needs. In particuar, inking companies existing information on customers with externa data sources to create a compete picture of customer behaviour. The key competitive advantage of Experian s database marketing soution is that the technoogy patform is very fast and fexibe, speeding up decision-making and reducing the ead time for deivering marketing campaigns as we as being embeded at the heart of cients marketing strategies.

39 Expaining Experian 2.28 Data quaity services Research shows that 73% of organisations wordwide beieve that inaccurate data costs them money and 75% admitted that potentia revenue is ost through missed business opportunities from not being abe to use good quaity data to find or profie customers and prospects. Experian s data quaity services aim to make maiings more economica and efficient. This incudes standardisation of addresses, ensuring competeness (against nationay avaiabe verification sources such as nationa change of address fies and nationay accepted address correction processes) through to eiminating dupicates and optimising posta expenditure. The purpose of ist enhancement is to ensure that the investment a company makes in its direct mai campaigns is maximised and that the desired marketing message reaches ony the right customers, at the right addresses, with minima deivery faiure rates and with the fastest times possibe. Experian s comprehensive data and advanced technoogy resources ensure that the resuts deivered are consistent and to a high standard. In the UK, Experian Intact is a market eading data ceansing, suppression and enhancement service, processing in excess of 500 miion records a year. In the US, Experian has pioneered many of today s address standardisation and targeting processes (such as inkjet personaisation and internationa address standardisation). QAS QAS is a eading suppier of address management soutions. With offices across Europe, North America and Asia Pacific, QAS services more than 10,000 customers across a market sectors. With its QuickAddress range of software, QAS offers the most comprehensive range of data quaity services in the marketpace. QuickAddress heps organisations capture accurate address data and conserve data integrity over time. This heps to enhance the experience of the customer deaing with that organisation and reduces the costs associated with poor data, increasing its abiity to grow revenue through improved targeting and aiding compiance with data reguations. Organisations who take advantage of the software cover a wide spectrum of industries, incuding banks, universities, teecommunication companies, the poice, retai stores, hospitas, onine gaming websites, charities and major footba cubs. The fexibiity of QuickAddress means it can be taiored to suit any industry-specific requirements and business processes. In addition, QAS IDentifier range of software is designed to enabe organisations to verify, find and track peope. Fast and efficient eectronic authentication of contacts minimises the risk of potentia fraud and provides end users with security against ID theft. IDentifier uses unique combinations of marketeading proprietary and third party data sources to ensure reiabe and effective identity management. Key characteristics of the software are: capturing, verifying and entering address data quicky and accuratey into any database or appication, from as itte as just the ZIP or posta code and house or buiding number; ceaning and maintaining address data reguary to keep address records up to date and quaifying for buk maiing and postage discounts from nationa posta authorities; integrating QuickAddress functionaity across the entire organisation via the desktop, CRM or ERP systems, intranet appications or on wordwide websites; suppressing database records using market eading suppression fies, through Experian s Intact service or QAS desktop suppression software; enhancing the true potentia of customer data with the addition of information from over 60 datasets; authenticating customer identities by comparing their detais against persona information hed on authoritative databases.

40 2.29 Expaining Experian Case study Experian heps WaterAid ceanse data and fight poverty The cient WaterAid is an internationa charity dedicated to heping peope escape poverty and disease. Estabished in 1981 as a eading non-governmenta organisation (NGO), it strives to enabe some of the word s poorest peope to gain access to safe domestic water, sanitation and hygiene education. The charity operates in 17 countries, with 132 empoyees in the UK, and many overseas partner organisations. The issues/chaenges With over 450,000 names and addresses on its database, maintaining correct contact detais is crucia to ensure that WaterAid maximises fundraising and heps improve the ives of those who suffer because they ack poor water sanitation. The charity recognised that not a its maiings were reaching their intended destination as its database contained both inaccurate and incompete records, which resuted in over 5,000 returned maiings each year. As a resut, the charity was not reaching a the peope it needed to. QuickAddress Batch is used up to ten times a week, prior to every import of data from different channes. This enabes WaterAid to cean and maintain its customer database on an ongoing basis. Dan Lockeretz said: Trying to keep our data accurate over time is a constant chaenge. As the detais of both individuas and organisations change, the smooth and hasse free impementation of QuickAddress Batch means that we can prevent data decay and ensure there is no dupication. The impementation of QuickAddress Batch has increased the speed of data import by 30 per cent. This has heped free up approximatey 20 days abour a year, resuting in significant time and cost savings. We estimate that WaterAid raises an additiona 12,000 appea income each year because of more accurate data on our contacts and 1,000 is saved each year from a reduction in the amount of returned mai. Dan Lockeretz, Database Manager, WaterAid. The soution WaterAid impemented QuickAddress Batch from QAS to hep cean and maintain data. QuickAddress Batch is a data ceansing and suppression soution that ceans inaccuracies in existing databases and puts the information into a consistent format. It is particuary usefu for the charity s direct marketing campaigns as it ceans and verifies addresses against QAS enhanced version of Roya Mai s Postcode Address Fie (PAF).

41 2.31 Expaining Experian What we do : Marketing Services : Research services Experian offers a range of market research products to hep its cients better understand their customers needs and behaviour both offine and onine. Simmons Research Simmons Research has been a eading chronicer of the US consumer for over 50 years. The Simmons network of media experts, survey professionas, modeing statisticians and research anaysts provide companies and advertising agencies with the critica marketing information needed to target their products, brands and media to today s consuming pubic. Its database, buit from syndicated and customised surveys, contains the most detaied usage information avaiabe on over 8,000 brands, 400 product categories and every media genre accessibe in the US. Vente Vente is a eader in onine consumer research and permissionbased marketing. Vente gathers information from consumers through its proprietary onine survey patforms. Its database is made up of sef-reported data by consumers (not third party sources or confidentia consumer information). The miions of consumers in its database have given Vente permission to send them information and offers in which they have an interest. Sefreported data incudes demographic and financia information, as we as hobbies, interests, aiments and purchase intentions. Whether they are entrepreneuria start-ups or brand eading mutinationas, Vente s services aow companies to get the most from their marketing budgets by heping to: Simmons carries out research on everything from the products consumers buy and the brands they prefer, to ifestye and media preferences. It is used by virtuay every major marketing firm and advertising agency in the US. Simmons research data is the standard for panning, product deveopment, brand buiding and consumer profiing for differentiating programmes and products from the competition. Simmons suite of soution-based products hep cients in three growing areas: extend the reach and frequency of advertising and promotiona messages; receive targeted eads in rea-time, daiy, weeky or monthy as required; drive saes traffic to offine channe partners or websites; execute cost-effective customer acquisition and retention programmes; increase customer ifetime vaue; create brand advocates. Simmons Nationa Consumer Studies: Each year, Simmons interviews over 27,000 peope nationwide in order to produce its we-known Simmons Nationa Consumer Survey (NCS) on the marketpace behaviour of US aduts. In addition, it coects comprehensive, insightfu information on teens, kids and Hispanic consumers. Through partnerships with eading marketing companies, Simmons data is at the heart of eading segmentation systems. Simmons Integrated Marketing Soutions: By marrying behavioura data from NCS and transactiona data from other companies such as MasterCard, AOL, AT&T and Niesen Media, Simmons has created a series of powerfu new segmentation systems. For exampe, its BehaviorGraphics mode shows advertisers how to identify their best customers based on what they buy in stores and what they watch on TV at home. Simmons Goba Information Services: Affiiated with the Word Wide Target Group Index (TGI), Simmons aso provides consumer behaviour research data simiar to the US data from peope in over 50 countries wordwide. Vente s key differentiating factors incude its emphasis on data hygiene and security, as we as its abiity to provide compete end-to-end emai soutions and anaytics to ensure increased return on investment for customer acquisition campaigns. Hitwise Hitwise is a eading Internet marketing inteigence company, which heps cients monitor the performance of their websites and target their onine advertising spend more effectivey. Hitwise coects and aggregates information from Internet Service Providers (ISPs) on how over 25 miion consumers use and search the Internet in the US, UK, Austraia and other countries in Asia Pacific. Using proprietary technoogy, Hitwise reports on neary a miion websites each day and ses this information to companies who market their services onine. The data aows companies to benchmark their websites against competitors in terms of visitor market share, visitor profies and time spent on sites. It aso heps companies to determine which are the best websites on which to advertise, which search engines drive traffic to their sites and which key words are most effective. To safeguard consumer privacy, the data excudes personay identifiabe information and is aggregated into sociodemographic marketing segments. Hitwise owns this data once it has been processed.

42 Expaining Experian 2.32 Hitwise has over 1,200 cients across numerous sectors incuding financia services, media, trave and retai. Hitwise s cients incude HSBC, AXA, Googe, ebay, CBS News, ask.com, IKEA, MTV and Qantas. Case study Motorcyce manufacturer increases market share with Hitwise The cient Honda Motor Co Inc was founded in 1959 and currenty produces automobies, motorcyces, a-terrain vehices, persona watercraft, awn mowers and engines from ten major manufacturing pants in the US. The issues/chaenges Honda Motorcyces, part of Honda Powersports, wanted to boost the eve of visitors to its primary website and to quantify the suspected probem areas across its mutipe micro sites in order to improve its market share. The soution Honda turned to Hitwise for its competitive inteigence data, using cickstream data to monitor traffic to and from its website, Manufacturers Category Ranking to view Honda s pacement against their competitors and Hitwise Charting to measure their campaign performance against their key competitors. Cickstream data heped it determine the origin of Honda s and its competitors onine traffic and to see where the traffic went after visiting the Honda website. This information enabed Honda to pace greater marketing emphasis on other sites that ed traffic to the Honda Motorcyce site and away from competitor websites. Honda s Jason Nichoas commented: We then used the Manufacturers Category Ranking, to view our pacement versus competitors, against a range of metrics such as user visits, page views, and average visit duration. According to Nichoas: Hitwise rankings data set a baseine for future marketing activities, which enabed Honda to benchmark the effects of new website content and micro sites, emai campaigns and other traffic driving initiatives. Hitwise Charting highighted how it performed against key competitors and the industry as a whoe. This enabed the marketing team to match tangibe marketing activities to onine resuts, and assisted them in reporting back to senior management. Hitwise competitive inteigence data heped Honda focus its traffic generation strategies, report on the return of onine marketing investment and keep track of competitive movements, which utimatey ed to more efficient marketing and an increase in visitors to their website. Hitwise is vauabe because it aows us to keep track of our success and to keep an eye on what our competitors might be doing differenty, says Nichoas.

43 2.33 Expaining Experian What we do : Marketing Services : Digita services One of the most effective and economica ways to communicate with customers is through permissionbased emai marketing. Consumers open and respond to emai marketing messages much more often than they respond to direct mai. As a resut, there is a significant shift in spending occurring as cients attempt to communicate with consumers through their channe of preference, which is often the internet. Emai marketing is used to promote new products, re-activate customer reationships, and respond to inquiries and send customer service messages ranging from confirmation of orders, to notification of new products in stock. Emai marketing is highy measurabe and as a resut, cients can cacuate a meaningfu return on investment in Marketing and test and modify marketing campaigns in short order. Gobay, CheetahMai deivers emais to 60 countries in over 30 anguages. As an exampe, KLM Roya Dutch Airines utiises the CheetahMai system to send emais in over 15 anguages from KLM offices wordwide. For the year ended 31 March 2007, CheetahMai sent over 20 biion emai messages, an increase of over 70% from the previous year. CheetahMai provides cients with the abiity to manage, anayse and automate web and emai marketing campaigns to buid data-driven, reevant reationships with their customers. In addition, CheetahMai offers a broad range of cient services incuding consuting, creative design, programme management, strategic anaytics and technica consuting. CheetahMai s campaign and data management and one-to-one messaging capabiities are compemented by its professiona services which provide: campaign strategy, anaysis and optimisation to hep cients grow, evove and maximise their emai marketing programmes; anaytic services, which combine in-depth campaign response anaysis insights with strategic recommendations to improve the effectiveness of programmes; data services, which focus on evauating the suitabiity and appicabiity of a cient s existing data to be used for the depoyment of more highy targeted and personaised emai campaigns; creative services, which identify and remedy potentia design faws such as navigation or content errors; enhanced services, which ensure the successfu deivery of each message; SiteCarity, CheetahMai s next-generation web anaytics soution, which everages the most robust toos for website data capture and muti-dimensiona anaysis. In 2007, Experian acquired emaiingsoution, a eading provider of permission-based emai marketing in French. The acquisition extends the geographic reach of Digita Services into one of the fastest growing emai markets in Europe. Its cients are category eaders in industry verticas such as retai, financia services, media and trave. Servicing over 350 word cass organisations, CheetahMai s cients incude Audi, CompUSA, Discovery Communications, J.Ji, Safeway.com, Sears and Wyndham Hotes, Hiton Internationa, Adidas, HMV and Norwich Union.

44 Expaining Experian 2.34 Case study Major retaier increases targeted emai campaign conversion rates by 250 per cent The cient The cient is a cothing retaier, founded in 1818 and we renowned across the US where it has 250 stores, with one in most major cities. The retaier has a further 80 stores across Hong Kong, Taiwan, Japan and Itay. The issues/chaenges The cient was focused on ways to increase saes in its women s cothing ine. Athough it coected emai addresses through opt-in processes, many subscribers had not identified their gender, eaving the cothing retaier unabe to determine accuratey which of its subscribers were men and which were women. The cient did not want to aienate its customers for men s appare by sending them a woman focused emai, so it decided to identify gender-based segments from its database utiising emai response data. With imited sef-identified information given by subscribers, creating behaviour or demographic specific segments for more targeted campaigns became increasingy difficut. The soution Using CheetahMai s Advanced Anaytics Too, the cient was abe to conduct a rea-time query of a subscribers who had cicked on any women s product from its ast three months of campaigns. The query produced a segment that was neary twice as arge as the number of subscribers who had sefidentified themseves as femae. The cient beieved that a targeted women s ine campaign sent to subscribers who had previousy expressed interest in women s products woud increase response and so executed the maiing. Conversion rates from the campaign were 250 per cent higher for the targeted women s ine campaign than for the cient s genera maiing. The cient had identified a segment that was most ikey to purchase women s cothing and coud track emai responses over time through CheetahMai s system in order to gauge subscribers interest eves in women s products versus a products. This is a rea testament to the importance of segmenting your database by subscriber behaviour rather than just sef-identified data, said the cient s ecommerce Marketing Manager. CheetahMai s Advanced Anaytics toos enabed us to identify segments that were not originay evident from information provided by subscribers.

45 2.35 Expaining Experian What we do : Marketing Services : Business strategies Business Strategies incudes Experian s consumer behaviour monitoring activities such as FootFa, consumer cassification systems such as Mosaic and its economic forecasting unit. The target market for these services is broad but centres on the retai, property and pubic sectors, predominanty based in Europe. The service is based on three key principes: Micromarketing To deveop ong term profitabe reationships with customers, organisations need to be abe to identify, understand and quantify differences between customers and potentia customers. This is what is meant by micromarketing, the direct opposite of mass marketing techniques. Experian understands where peope ive, their demographics, ifestyes, behaviour and aspirations. This draws upon sources such as our Mosaic cassification of consumers and consuting services such as the Future Foundation that monitor consumer trends and predict the future behaviour of consumers. Experian understands what and when peope buy, through its abiity to monitor and predict performance of nationa, regiona and oca economies and associated patterns of consumer expenditure. Experian understands where peope shop using its databases of oca market information, market research and retai ocations data. What is Mosaic? Mosaic is a range of cassification systems that enabes the segmentation of consumers and businesses into ceary identifiabe groups and types. Exampes incude: Mosaic UK, Mosaic Pubic Sector, Mosaic Goba and Mosaic Commercia. Mosaic is aso avaiabe in 25 country-specific versions. How is it created? A Mosaic type is assigned to each househod, business or geographic zone, based upon a arge number of statistica measures, originating from different sources and reating either to a business, an individua person, househod, postcode or higher eve geographic unit. How does Experian hep cients? Understanding consumers: providing insight into the demographic, socio-economic, behavioura and attitudina characteristics of consumers. Managing customer reations: using customer insight to identify and deveop profitabe customer reations and target communications more effectivey. Identifying profitabe ocations for stores: advising retaiers on the optimum ocations for new outets. Assessing the impact of a store opening: assessing the impact of a new store on the saes of an existing store. Measuring and predicting store performance: evauating the performance of stores and forecasting saes. Managing branch networks: deveoping appropriate strategies for store networks in reation to pricing, merchandising, stock contro, saes forecasting, space optimisation and marketing. Strategic forecasting: identifying key economic, demographic, behavioura, socia and cutura trends to hep retaiers future-proof their business. What is it specificay used for? Mosaic is used for everything from customer research, identifying who a cient s customers are, the products they buy and where they buy them, to customer recruitment and taioring customer communications to improve retention. It is aso used extensivey in branch and network panning and retai investment. FootFa FootFa is a eading provider of retai data, anaysis and consutancy, and a market eader in customer counting technoogy. FootFa has estabished customer counting as a key performance indicator, enabing retai property professionas to achieve maximum operationa efficiency and assess performance on a continuous basis. The FootFa Index is regarded as the industry standard benchmark for shopper visits and is endorsed by the British Counci of Shopping Centres (BCSC).

46 Expaining Experian 2.36 Case study Major food retaier expands its customer reach with the hep of Mosaic The cient The cient is one of the UK s top five food retaiers. The issues/chaenges The retaier wanted to expand its offer and customer base with a non-food format in a new-stye store that had been triaed in a handfu of retai parks, and approached Experian for advice on the best ocations for these new stores. The characteristics of the new stores, the ocations and customer base were different to the rest of the retaiers estate. The cost of experimenting with new store formats is prohibitive so it was important to minimise the risk by understanding as much as possibe about the cient s existing out of town stores. This knowedge coud then be appied to a UK retai parks and other potentia ocations. Insight was needed as to whether the new store format coud provide sufficient draw through some of the secondary retai parks, or if the stores coud operate as stand-aone destinations. Data from those aready trading incuding catchment, demographic and footfa data was combined with more genera market research to gain insight about how the stores were being used. The soution Experian designed and commissioned customer exit interviews at the existing tria stores to understand shoppers visits, where ese customers were shopping and how their behaviour at the retaier s existing supermarkets had changed. Responses were amagamated with Mosaic and drive time codes to uncover differences in customer perceptions and distance traveed to the store. Research indicated that the concept had the potentia to extend to stand-aone units and coud aso be appied to a imited number of town centres where there was adequate demand but existing eves of competition were ow. It aso indicated that the impact on existing food stores with a nonfood range was imited. Variabes were derived from Experian datasets incuding its Where Britain Shops catchment areas, grocery market size database, Mosaic and drive times to competitors. These insights were used to score each ocation according to the mix of retaiers aready present, the proximity of competing venues and the demographic mix. This project aowed the cient to widen its target ist of potentia ocations by severa hundred by identifying secondary retai parks that were previousy deemed to have insufficient demand, but aso by demonstrating the opportunities for adjusting the format for towns with either no appropriate or affordabe retai park offer.

47 2.37 Expaining Experian Case study FootFa heps eading retaier to increase customer conversion rates and average spend The cient Marks & Spencer has over 450 stores ocated throughout the UK, 150 stores wordwide and operates in 30 countries. The issues/chaenges Marks & Spencer aunched a new ook for its stores and wanted to measure the true impact that this had on its business. The company had triaed other customer counting systems in the past with varied success. So Marks & Spencer was keen to work with FootFa to deiver a cost effective soution with an accurate data management service, aong with a user-friendy reporting too. The soution FootFa aunched a tria with Marks & Spencer to hep it understand how we it was drawing customers into stores, how many peope were buying and most importanty, how many peope were not buying to give a measure of missed opportunity. The key drivers of conversion in-store were identified as product, behaviour, conversion rates and staff and customer service. FootFa deveoped an innovative in-store soution that inked FootFa customer counts (from therma perimeter counting devices) with POS (point of sae) data and a of Marks & Spencer s current in-store data. By combining a this data at Marks & Spencer s IT centre, FootFa was abe to produce meaningfu reports, showing conversion rates not just for the whoe store but for each department. Figures coud then be matched up to store visitor numbers providing the capabiity to measure departmenta transaction and conversion rates. Reports were produced on a daiy basis and ong-term footfa and transaction patterns produced, incuding store comparisons. The new system radicay improved Marks & Spencer s use of its in-store data. Foowing instaation, stores were abe to see how customer fow and saes were inked and use this knowedge to improve conversion rates. Stores are abe to create innovative staffing around customer fow and reinforce Our Service Stye behaviours. By setting targets for conversion rates by department, the FootFa data can be used proactivey to manage, motivate and pan teams. By making sma, simpe, sustainabe changes in staffing, product avaiabiity and service, Marks & Spencer has been abe to drive measurabe improvements in conversion, units per transaction and basket size, which wi resut in significant and sustainabe increases in saes.

48 Expaining Experian 2.38 Economic forecasting The Economic Forecasting unit offers insight and consutancy expertise in the foowing areas: Economic forecasting and mode buiding: deveops and maintains highy sophisticated economic modes of the UK and other major economies. Output from these modes can provide businesses with detaied insights into the effects of economic change on their prospects. The unit can aso buid modes that aow poicy makers to assess the ikey economic and socia impact of various decisions. Property anaysis: speciaising in retai and commercia property marketpaces, the unit can hep property professionas and regeneration experts to understand and make informed decisions on investments in, and marketing of, property assets. This is made possibe by combining the extensive knowedge of city centres, using the industrystandard Goad pans, and sophisticated anaysis of catchment areas and oca economies. Pubic sector consutancy: provides strategic anaysis to centra, regiona and oca government, incuding poicy advice, oca economic assessments, regeneration anaysis and impact studies. Speciaisms incude oca economic modeing, market research, skis and abour market anaysis, and the socio-demographic determinants of educationa, heath and housing patterns. Strategic consutancy and research: heps regiona and oca government agencies to deveop strategies and formuate action pans. Techniques incude scenario and futures anaysis, socio-economic audits, market research on emerging trends, consutations and workshop eadership. A work takes pace within an ISO quaity framework and is based on a thorough knowedge of the regions concerned, poicy frameworks and research evidence on the effectiveness of poicies. Beow are some exampes of the type of reports and services avaiabe. UK Property Market Forecasting Service: This provides forecasts of rents, capita vaues, tota returns and the underying economic factors that have driven property markets for neary a decade. European Property Forecasts: This provides comprehensive and consistent forecasts of rents, capita vaues and tota returns for the principa European centres as covered by IPD (Investment Property Database). Skis Futures: This provides in-depth knowedge and bespoke research on industry sectors, occupations and regiona and oca abour markets. The team works with both pubic and private sector cients to hep them understand issues reated to skis and the abour market. Goba Futures: This is a quartery report containing extensive forecasts, anaysis and information to hep cients understand the impact of the economic, financia and business cimate on investments in over 40 countries. European Regiona Service: This provides a weath of historica data and ten-year forecasts for approximatey 2,000 regions in 30 European countries. The service covers a key centres in the EU, incuding the new member states. Loca area data is aso avaiabe for a number of countries. Regiona Panning Service: This provides businesses and poicy makers with anaysis of UK industria and regiona performance. It provides comprehensive data and quartery forecasts for the next ten years at UK and Government Office Region (GOR) eves. Loca Markets Database: This is an onine service that provides instant access to high quaity economic data and oca area economic forecasts in a ready to use Internetbased format.

49 2.39 Expaining Experian Case study nvision provides insight into consumer trends across Europe The cient The cient is one the word s argest manufacturers of mobie devices and a eader in providing equipment, services and soutions for network operators. It has over 58,000 empoyees from 128 different nationaities. The issues/chaenges The cient wanted to deepen its understanding of socia and consumer trends across a diverse range of goba cutures and markets in order to inform its marketing, strategy and hep its new product deveopment teams. The cient decided to appoint an agency to assist it in deveoping this understanding in the European market and in the project woud hep its business units decide which key consumer needs it shoud be focusing on for the future. The soution The nvision Europe service provided by the Future Foundation from Experian, offered a arge amount of the initia content and insight for this project. This data was then augmented by origina research from consumers and a pane of key experts and opinion formers from across Europe. Future Foundation s onine methodoogy for the quantitative surveys was deemed the most cost-effective soution, based on the timescae avaiabe and the specific requirements of the cient. Further interpretation and anaysis was then carried by the Future Foundation. This heped to make the content more cient-specific and more taiored to the cient s issues and hypotheses than the standard nvision product. The study was then used to formuate business impications for cient stakehoders which was communicated via a new website using a tempate that had been designed in coaboration with the cient.

50 Expaining Experian 2.40 What we do : Interactive Interactive is estabishing a eading position as a reiabe information source for consumers for key financia transactions and purchasing decisions to ower the cost of daiy iving. It has two core business activities: Consumer Direct and ead generation. In the UK and US, Experian Consumer Direct offers consumers the abiity to check their credit report and score onine and to monitor the report for any changes. By enroing in a credit monitoring programme, consumers are notified of any new or changed data reported on their persona credit fie, which is a possibe indication of identity theft. This product enabes them to monitor the accuracy and competeness of their credit report, manage credit obigations more effectivey and contro unauthorised access. Experian Consumer Direct charges consumers a monthy membership fee for its various monitoring products and a transaction fee for one-off purchases of credit reports or scores. Through its ead generation businesses, Experian is a trusted intermediary on the Internet and connects consumers to businesses, enabing consumers to identify financia services products through LowerMyBis.com, research products and shop onine through PriceGrabber.com and enro in onine education programmes through CassesUSA. These businesses provide vauabe free services to consumers to hep them make more informed decisions. In turn, Experian is paid on a pay-for-performance basis by cients for each ead generated through this marketing service. Interactive has reationships with eading portas incuding Yahoo, AOL and MSN. It attracts over 24 miion unique visitors to its various owned websites each month and is one of the argest onine financia services advertiser in the US.

51 2.41 Expaining Experian What we do : Interactive : Consumer Direct Experian s direct-to-consumer operations are the cear eader in this fast growing market in both the US and UK. Consumer Direct provides consumers with instant access to both their compete credit history and to monitoring products that provide emai or text notices of any changes that have occurred to their credit report. It aso provides identity theft prevention products, fraud resoution services and information protection products. Experian continues to be the eader in the onine consumer credit membership industry, buiding one of the argest financia services-reated partner programmes and offering consumers immediate access to a fu suite of credit products through co-branded partners. Experian deivers more than 500,000 credit reports monthy in the US to consumers who subscribe to the services. Over three miion reports have been deivered in the UK in 2006/7. Products US The direct-to-consumer offering in the US is comprised of the foowing Internet-based products: Instant Singe Credit Report is a product that provides an easiy readabe credit report to an individua consumer. Reports are avaiabe for $10.00 each. PLUS Score is a consumer-friendy product that provides current credit score information aong with positive and negative factors affecting the consumer s score. The product is priced at $5.00. Three Bureau Report provides instant onine access to a report that combines Experian, Equifax and TransUnion credit information, enabing consumers to review data maintained by a three credit reporting agencies in one easy to read format. Consumers aso receive a free Experian credit score. This service is priced starting at $ CreditCheck Monitoring is a monthy subscription based product that provides unimited access to Experian credit reports and daiy monitoring for each member. Additiona financia toos and educationa information are aso incuded in the monthy subscription price of $9.95. Tripe Aert SM offers consumers daiy monitoring of a three nationa credit reporting companies credit reports and sends consumers notification via emai and/or SMS mobie text aerts when critica changes are detected on any of the consumers three credit reports. As part of their membership, consumers receive $10,000 in identity theft insurance. They aso have to-free access to fraud resoution professionas shoud they become victims of fraud or identity theft. Educationa resources such as artices on credit and financia cacuators are avaiabe to members through their persona onine credit centre. Tripe Aert is avaiabe to consumers for $4.95 per month. Tripe Advantage SM offers services in addition to Tripe AertSM. Members receive unimited Experian credit reports and credit scores and aso have the opportunity to purchase discounted reports at any time from the other two credit reporting companies. Monthy credit score trending, credit score anaysis, a credit score simuator and $50,000 in identity theft insurance are aso incuded. Tripe Advantage is avaiabe to consumers for $12.95 per month. Marketing channes Marketing in the US operates through two primary channes: Partner network websites or inks are estabished for cients with a arge number of existing subscriber bases (i.e. financia services companies, major credit card issuers, Internet portas and ISPs). These cients use a mix of traditiona and web-based direct marketing to attract customers, incuding: web inks, banner ads, statement inserts, emai and direct mai. Premier partner sites incude MSN, Yahoo! and AOL. TV and radio advertising is used extensivey by Experian s direct-to-consumer initiative to attract new members. Products UK CreditExpert is an onine credit monitoring and identity fraud protection membership service which was successfuy aunched in September Based on extensive consumer research, CreditExpert offers a premium onine service for UK consumers and was adapted for the UK market from the successfu US direct-to-consumer business mode. The service is offered on a 30-day, no obigation, free tria, when a consumer orders a monthy membership for just It is an identity fraud protection service and heps peope to understand their credit commitments and manage their finances. By subscribing to this service a consumer can have: unimited onine access to their credit report; knowedge of their credit history before appying for a financia product; emai and text aerts for eary fraud detection; freephone advice from credit reference speciaists; credit tips and toos to hep manage their money; the opportunity to buy their credit score instanty; quartery newsetters.

52 Expaining Experian 2.42 Consumers can aso purchase their Nationa Credit Score, which is avaiabe to members for CreditExpert s partner programme offers websites the opportunity to give their users access to CreditExpert and to educate users about the importance of credit monitoring and the increasing risk of identity fraud. Partners wi generate revenue from every user that signs up for a free tria of the CreditExpert service. CreditExpert partners with most of the eading onine brands in the UK and currenty has over 1,500 partners incuding MSN and Yahoo! Consumer Direct s membership services business provides white abe credit monitoring and fraud resoution services through re-seers and directy to banks and other organisations. These organisations ook to differentiate their products ines, retain customers and boost revenue by drawing on core product features from CreditExpert. Case study Major financia porta supports responsibe ending with CreditExpert The cient MSN is one of the word s argest Internet portas, giving miions of peope access to a range of speciaist sites and services. Its financia section, MSN Money, is one of the most popuar persona finance websites in the UK. The issues/chaenges To find new ways to spread the message about the importance of credit report monitoring. The soution In 2004, MSN Money became a partner for Experian s onine CreditExpert service, expanding on a successfu and estabished reationship with Experian in the US. CreditExpert gives consumers unimited onine access to their Experian credit report, enabing them to see the same information that financia organisations use when making decisions about ending money. In return for a monthy subscription fee, CreditExpert users can monitor changes in their report and check that the information it contains is up to date and accuratey refects their situation. Emai or text message aerts are sent to them if a significant change occurs that might indicate attempted identify fraud. Subscribers aso have access to hep ines staffed by experts in credit matters and identity fraud, as we as a ibrary of information about credit-reated and identity fraud issues. Credit monitoring is sti a reativey new concept for consumers in the UK, but with rising persona debt, soaring house prices and wide pubicity around the risk of ID fraud, it is set to become part of everyday ife, says Aastair Bruce, Senior Content Manager for MSN Money. CreditExpert is a ogica extension of the services we provide through MSN Money. Visitors to our site can now earn how to take contro of their credit history, which heps them to get the credit they need in future, and more importanty, guard against identity fraud. MSN is one of severa partners with whom Experian works to find new ways to spread the message about the importance of credit report monitoring. More than 2,000 websites have agreements to promote CreditExpert in the UK.

53 2.43 Expaining Experian What we do : Interactive : Lead generation Experian has buit up a significant presence in the fast growing business of connecting consumers to companies over the Internet (onine ead generation), where companies pay Experian for each ead generated. Experian Interactive Media now operates in the mortgage, comparison shopping and onine education sectors. Mortgages LowerMyBis.com is a eading onine mortgage ead generator in the US. LowerMyBis.com s vision is to provide consumers with a one-stop Internet destination to obtain better deas on a their recurring monthy expenses. It has a eading position in the US market, connecting consumers seeking home mortgages with enders best suited to provide them. The business is quicky diversifying into other high growth segments incuding credit cards and insurance. Onine education CassesUSA is a eading onine higher education porta. Each month, more than 1.5 miion aduts visit the site, which has access to more than 100 accredited coege and university partners. Since entering the onine higher education marketpace in 2001, CassesUSA has fostered partnerships with many portas and websites and has buit a reputation as one of the most trusted and recognised brands providing professiona aduts with access to onine educationa opportunities. CassesUSA aso pubishes Onine Degrees Magazine, a biannua nationa pubication designed to empower aduts considering distance earning as a too to use to advance themseves both personay and professionay. LowerMyBis.com attracts customers by advertising on a wide variety of websites incuding the major portas such as MSN, AOL and Yahoo!. Consumers who cick through on mortgage advertisements, for exampe, are taken to the LowerMyBis.com website, where they provide information reevant to the mortgage approva process. This information is then matched against the ending criteria of the cients of LowerMyBis.com and quaifying eads are passed onto up to five different enders. LowerMyBis. com s nationa network of enders incudes over 300 companies. The enders then contact the consumer, who can choose the most appropriate offer. LowerMyBis.com is paid for every ead passed on to each ender. This service is free for consumers.

54 Expaining Experian 2.44 Comparison shopping PriceGrabber.com is a eading provider of onine comparison shopping services. The website aows miions of consumers to search and compare information about products, services, merchants and seers in order to make an educated purchase decision. Through continued innovation and consistent focus on providing the best comparison shopping experience on the Internet, PriceGrabber.com has estabished itsef as one of the most effective onine destinations for discerning shoppers. By using PriceGrabber.com, shoppers can instanty find and compare miions of unique products and services from thousands of merchants and seers in 25 product channes, thereby enabing users to find the right product from the right merchant/seer at the best price. The free, unbiased comparative information covers items as diverse as computers, eectronics, cothing, furniture, jeweery & watches, movies, sporting goods, video games, and toys. At PriceGrabber.co.uk, consumers can find products and services in 19 categories and offers shoppers the abiity to view and compare over 500 merchants and seers on the site. PriceGrabber.co.uk connects its onine shoppers to merchants and seers of a sizes and scope such as Comet, Amazon, PC Word, Sainsburys, Laura Ashey and John Lewis, to smaer ocaity speciaity retaiers. Information avaiabe on the site incudes the BottomLinePrice (which incudes tax and shipping estimates) product descriptions and technica specifications, consumer reviews of products and merchants, side-by-side product comparisons and emai notification of personaized target prices (Product Tracker). Beow are some key statistics about the PriceGrabber website and the consumers who visit it: 12,880 Merchants and Seers PriceGrabber offers 100 miion monthy impressions excusivey to an audience that is in the process of making a purchase decision. In addition to Run of Site offerings, PriceGrabber offers product category targeted impressions so that advertisers can reach their media buying targets. 26 Miion Unique Shoppers 26 miion different consumers visit PriceGrabber to shop for products across 25 product channes. The primary reasons this infuentia audience visits PriceGrabber is to determine what products to buy and where to get the best dea on them. This provides for an exceent patform for advertisers to promote their brand attributes Network of Sites The PriceGrabber distribution network extends across 450+ partner websites and many of the advertising pacements extend across these web properties. A few partners incude AOL Shopping, MSN Shopping, About.com, Comcast, and PC Word. $450+ Average Sae Order This teing metric shows that PriceGrabber.com shoppers have significant purchasing power. Additionay, it demonstrates the eve of trust the segment has for PriceGrabber and its advertisers Age Range A young demographic ends itsef to many years of purchasing power to come. Investment in brand equity through PriceGrabber yieds a higher return on investment due to more years of purchasing power. 67% Coege Educated A more educated consumer poo transates into higher purchasing power. $71,000 Average Yeary Income The PriceGrabber audience is financiay capabe of reacting to an effective message presented by an advertiser. The company supports the comparison shopping functionaity for a network of eading Internet sites, incuding AOL Shopping, MSN Shopping, About.com, Comcast, PC Word and many of the advertising pacements extend across these web properties.

55 2.45 Expaining Experian Case study Using PriceGrabber.com improves brand awareness and increases saes by over 700 per cent The cient VioSoftware is an onine provider of whoesae software soutions for cients ranging from individua consumers to Fortune 500 companies. With a comprehensive range of products, VioSoftware is abe to provide consumers with eading brand software offerings at competitive prices. The issues/chaenges When estabished in 1999, VioSoftware wanted to increase pubic awareness of its strong product offerings and ow prices in order to buid a steady cient base. In 2001, VioSoftware turned to PriceGrabber.com as a means of generating additiona consumer eads, increasing software saes and estabishing a presence in the onine software market. The soution Since partnering with PriceGrabber.com, VioSoftware has enjoyed greater brand awareness and visibiity, and increased saes by more than 700 percent. PriceGrabber.com s easy-to-use site ayout and innovative technoogy, which incorporates measurabe site ratings, has heped bring quaity shoppers to the VioSoftware site, utimatey eading to a greater number of conversions and saes. PriceGrabber.com s products and strategic counci from its experienced account management team have heped VioSoftware consistenty grow its business during the past six years. Originay a text-ony isted customer on PriceGrabber.com, VioSoftware evoved to become a featured merchant, with an above-the-fod, premier isting that incuded their ogo. With this preferentia on site-pacement, VioSoftware was we-positioned to take advantage of the approximatey 24 miion consumers who visit the PriceGrabber.com site every month.

56 Expaining Experian 3.00 Detaied financia anaysis 3.00 Detaied financia anaysis This section provides further anaysis of Experian s saes, profit and major acquisitions.

57 3.01 Expaining Experian Saes and profit by geography Experian 12 months to 31 March US$m US$m Saes North America 1,985 2,061 Latin America UK and Ireand EMEA/Asia Pacific Tota continuing activities 3,407 4,059 Continuing activities growth % 1 14% 14% Underying growth % 2 8% 4% EBIT North America Latin America (4) 75 UK and Ireand EMEA/Asia Pacific Centra activities (47) (57) Tota continuing activities Continuing activities growth % 1 15% 13% EBIT margin % % 21.8% 1 Growth excuding discontinuing activities at constant exchange rates 2 Growth excuding discontinuing activities and corporate acquisitions at constant exchange rates UK and Ireand EBIT incudes an $8m Marketing Services restructuring charge 4 EBIT margin excudes FARES North America 12 months to 31 March US$m US$m Saes Continuing activities 1,985 2,061 Continuing activities growth % 1 15% 4% Underying growth % 2 8% 3% EBIT Direct business FARES Continuing activities Continuing activities growth % 1 21% 6% EBIT margin % % 26.9% 1 Growth excuding discontinuing activities 2 Growth excuding discontinuing activities and corporate acquisitions 3 EBIT margin excudes FARES

58 Expaining Experian 3.02 Latin America 12 months to 31 March US$m US$m Saes Continuing activities Continuing activities growth % 1 38% > 100% Underying growth % 2 38% 43% EBIT Continuing activities (4) 75 Continuing activities growth % 1 n/a n/a EBIT margin % n/a 23.1% 1 Growth excuding discontinuing activities 2 Growth excuding discontinuing activities and corporate acquisitions at constant exchange rates UK and Ireand 12 months to 31 March US$m US$m Saes Continuing activities Continuing activities growth % 1 17% 8% Underying growth % 2 7% 3% EBIT Continuing activities Continuing activities growth % 1 12% 0% EBIT margin % % 23.4% 1 Growth excuding discontinuing activities at constant exchange rates 2 Growth excuding discontinuing activities and corporate acquisitions at constant exchange rates EBIT margin excudes an $8m Marketing Services restructuring charge EMEA/Asia Pacific 12 months to 31 March US$m US$m Saes Continuing activities Continuing activities growth % 1 8% 13% Underying growth % 2 7% 7% EBIT Continuing activities Continuing activities growth % 1 8% 7% EBIT margin % 12.7% 12.3% 1 Growth excuding discontinuing activities at constant exchange rates 2 Growth excuding discontinuing activities and corporate acquisitions at constant exchange rates

59 3.03 Expaining Experian Saes and profit by principa activity Experian Goba 12 months to 31 March US$m US$m Change % 1 Saes Credit Services 1,503 1,901 1% Decision Anaytics % Marketing Services % Interactive % Tota continuing activities 3,407 4,059 4% EBIT Credit Services Decision Anaytics Marketing Services Interactive FARES Centra activities (47) (57) Tota continuing activities EBIT margin 2 Credit Services 27.9% 27.4% Decision Anaytics 34.7% 32.8% Marketing Services 8.9% 9.4% Interactive 22.1% 22.0% Tota continuing activities 21.9% 21.8% 1 Growth excuding discontinuing activities and corporate acquisitions at constant exchange rates 2 EBIT margin excudes FARES

60 Expaining Experian 3.04 Saes by geography and principa activity North America 12 months to 31 March US$m US$m Change % 1 Credit Services % Decision Anaytics % Marketing Services % Interactive % Tota continuing activities 1,985 2,061 3% 1 Growth excuding discontinuing activities and corporate acquisitions at constant exchange rates Latin America 12 months to 31 March US$m US$m Change % 1 Credit Services n/a Decision Anaytics % Marketing Services - 10 n/a Tota continuing activities % 1 Growth excuding discontinuing activities and corporate acquisitions at constant exchange rates UK and Ireand 12 months to 31 March US$m US$m Change % 1 Credit Services % Decision Anaytics % Marketing Services (3%) Interactive % Tota continuing activities % 1 Growth excuding discontinuing activities and corporate acquisitions at constant exchange rates EMEA/Asia Pacific 12 months to 31 March US$m US$m Change % 1 Credit Services % Decision Anaytics % Marketing Services % Tota continuing activities % 1 Growth excuding discontinuing activities and corporate acquisitions at constant exchange rates

61 3.05 Expaining Experian Cost anaysis Experian 12 months to 31 March As a percentage of saes US$m US$m Change % Saes 3,407 4,059 14% 100% 100% Labour (1,472) (1,759) 14% (43%) (43%) IT (189) (209) 5% (6%) (5%) Data (171) (211) 18% (5%) (5%) Customer acquisition/marketing (404) (427) 5% (12%) (11%) Other (377) (512) 29% (11%) (13%) Tota costs (before centra activities) (2,613) (3,119) 14% (77%) (77%) Centra activities (47) (57) 15% (1%) (1%) Tota costs (2,660) (3,176) 14% (78%) (78%) EBIT Direct Business % 22% 22% FARES (11%) 2% 1% EBIT % 24% 23% Anaysis excudes discontinuing activities 1 At constant exchange rates Experian definition of costs Labour IT Data Marketing Other Centra activities Base payro, bonus and commission, LTIP, pension, trave, recruitment and training Computer costs (incuding depreciation) and IT teecommunications costs Data purchased ess amounts capitaised pus data amortisation Mainy Interactive Other depreciation, occupancy, royaties and voice teecommunications Finance, treasury and other goba functions

62 Expaining Experian 3.06 Cash fow Experian 12 months to 31 March US$m US$m EBIT continuing activities EBIT discontinuing activities 18 7 Tota EBIT Depreciation / amortisation Capita expenditure (275) (344) Working capita Dividend from associates, ess share of profit (22) (17) Operating cash fow

63 3.09 Expaining Experian Main products and services 4.00 Main products and services On a goba basis, Experian provides hundreds of products and services. Incuded in this section is a brief description of some of our core offerings.

64 Expaining Experian 4.00 Main products and services : Credit Services Automotive databases: information on motor vehices to enabe anaysis of saes trends, franchise profitabiity and ocation and panning of marketing campaigns. AutoCheck: vehice history reports provide the automotive industry and its customers with historica information about pre-owned cars and trucks (US). Auto Prospect Onine: onine too that enabes automotive deaers to identify their most profitabe prospects and then create and order direct marketing ists based on information obtained from the Nationa Vehice Database and the INSOURCE consumer demographic database (US). Backgroundchecking.com: offers detaied candidate pre- and post-empoyment screening services to cients in the UK and internationay. BizApps onine: web-based interface for business credit information service (US). BizInsight onine: web-based ist seection and fufiment system for the Nationa Business Database and Hotine Databases (US). Business information: financia and credit information on imited companies, soe traders, partnerships and company directors. Candidate Verifier: CV pre-screening for empoyers and recruitment agencies, incuding previous empoyment and academic quaifications. Car Data Check: vehice history and specification verification service for used car buyers in motor trade, insurance, finance and auctions. Consumers can access the service through the AA in the UK. Consumer credit bureaux: in US, UK, Ireand, Bugaria, Canada, Denmark, Estonia, Itay, Netherands, Norway, Spain, Romania, Russia, South Africa and Brazi. Consumer credit information: pubic (e.g. eectora ro, county court judgments) and persona financia information (e.g. credit account history) on private individuas, used for credit checking purposes. Eiger Systems: deveops bank account vaidation and payment processing software, which reduces the risks and costs invoved with eectronic transactions. Pre-screen: direct marketing ists screened against the Fie One database in the US to quaify consumers for specific credit offers. Used by enders to eiminate maiings to high-risk prospects and to pre-approve credit terms for consumers who meet the cient s credit criteria. Property databases: pans, maps and statistica information on retai ocations and UK property statistics. Risk scoring (commercia): statistica modeing that predicts the probabiity of a business faiing within months. Tenant Verifier: tenant checking service for etting agents and andords, providing a financia check, previous andord s reference and an empoyer s reference on prospective tenants for rented property. Triggers: daiy service aerting cients to changes in a consumer s credit behaviour. Cients use credit derived triggers to drive risk, account retention and marketing decisions to improve customer reationships. Uncaimed Assets Register (UAR): a search faciity for uncaimed financia assets, such as ife poicies, pensions and equities (UK). VantageScore: Deveoped jointy by the three nationa credit reporting companies, in response to cient needs for more predictive and consistent credit risk scores.

65 4.01 Expaining Experian Main products and services : Decision Anaytics Appication scoring: statistica modeing to predict the probabiity of an appicant being unabe to repay a oan or debt. Autoscore: Experian s proprietary appication processing and scoring system. Autotrace: automated system for tracing absconding debtors. Baker Hi Advisor: a secure, browser-based infrastructure system that manages a cient information across a ines of a commercia ending business. Baker Hi One Point: a fuy integrated customer reationship management system for commercia enders that consists of modues for saes automation, coatera and exception management, credit risk management and profitabiity and pricing. Baker Hi Origination Soutions: manages the entire commercia oan process, from origination to underwriting and acceptance to document preparation and booking. Bankruptcy scores: statistica risk modes for predicting the probabiity of a consumer fiing for bankruptcy. Behavioura scoring for customer management: statistica modes based on the customer s ifestye and credit behaviour; used to predict future behaviour and to determine actions to be taken by the ender. Behavioura scoring for marketing: statistica modes based on the customer s ifestye and previous responses to marketing offers; predicts future responses to offers and determines the most appropriate proposition to be made and the best medium. Bureau scoring: generic credit scores based on credit reference bureau data ony. CEMS: combines Experian s data assets, anaytica capabiities and strategy decisioning software to make rea-time customer acquisition decisions based on accurate information. Commercia Dephi: using statistica techniques to cacuate risk and reduce the eement of subjectivity in ending to business and trade credit decisions, enabing businesses to manage financia risk by identifying potentia risks before they happen. Coect SM : a coections and debt recovery soution that aows financia services organisations to adopt a more strategic and anaytica approach to their customer service, coections and debt recovery processes. Coection advantage: integrated coections management too providing consumer contact data, credit-based scoring and advanced anaytics (US). Consumer Indebtedness Index: measures the eve of indebtedness of consumers, without reying on detaied knowedge of their monthy disposabe income, by assessing a borrower s tota debt eves and predicting the ikeihood of repayment (UK). Dephi for Customer Management: bureau-based behavioura scoring system and account management for existing customers. Dephi for New Business: bureau-based appication scoring system for new accounts. Detect: rea-time credit appication fraud prevention soution. E-identitycheck: combats identity fraud by providing a quaified assessment of the degree of confidence in a customer s onine identity. Hunter II: the next generation of Hunter deveoped on a web based architecture, providing onine functionaity, fu audit trais, fraud scorecards, fexibe rues configuration and ad hoc reporting. Knowedge IQ: chaenges-response processes using persona, confidentia questions from credit and other databases to which ony the consumer knows the answer. Inteigent Business Reporting (Reporting Studio): an advanced reporting and monitoring soution that gives users immediate access to business inteigence. Inteiscore: suite of statisticay-derived scoring modes designed to predict the ikeihood of severe deinquency over the next 12 months. Utiises commercia data and bended commercia and consumer data where appropriate. New Business SM : a soution for new business acquisition, enabing enders to centraise, monitor and change ending strategies quicky. Precise ID: vaidates and verifies appication data through mutipe credit and non-credit databases and returns highy predictive fraud and identity risk scores. Probe SM : a compete business soution designed to manage existing customer reationships by bringing together powerfu behavioura scoring techniques, segmentation, portfoio anaysis and strategy experimentation. Enabes enders to contro imit management, authorisations, coections and marketing strategies. Strategic and business consutancy: consutancy and advisory services for providing and impementing innovative soutions throughout the credit ife cyce. Strategy Management: heps companies make more inteigent decisions about whether to accept new customers, extend the credit arrangements for existing customers or target them with new products. Strategy optimisation: uses objective mathematicay based decisioning at an individua customer eve to hep an organisation identify the highest possibe return from its credit strategies, given its customer needs, operationa constraints and strategic goas. Transact SM : comprehensive appication processing system incorporating Strategy Management decisioning.

66 Expaining Experian 4.02 Main products and services : Marketing Services Absoute Movers: data source for suppressing from maiing ists the names and addresses of individuas who have moved. Acquisition and response modes: scorecards to anayse consumer responses to direct marketing. BehaviorBank: consumer-suppied ifestye data with coverage on more than 35 miion househods and 40 miion individuas (US equivaent to Canvasse in the UK). Canvasse: consumer ifestye, demographic, financia and geodemographic database for target marketing (UK). CheetahMai: emai deivery technoogy to hep cients use mutipe deivery channes to communicate with customers and drive saes. CircBase: co-operative database of direct mai responders for pubishers, covering 161 pubications and 63 miion subscribers (US). Cottage Industry Fie: a segment of the Nationa Business Database featuring home-based businesses (US). Customer data integrity: competing, vaidating, suppressing, enhancing and integrating customer data to improve the quaity of customer information. Dephi for Maiings: bureau-based pre-screening system to ensure financiay reated offers are targeted to appropriate consumers. Eements: CarityBue s integrated direct marketing patform. Emaiing Soution: a eading French permission-based emai marketing provider. Experian Intact: data ceansing, suppression and enhancement service, processing in excess of 500 miion records a year. Goad Exporer: decision support too for property professionas working within mutipe retaiers, agencies, deveopers or investment companies. Contains a set of digita pans and associated data about retai outets for over 1,300 of the country s retai centres (UK). Hitwise: coects and aggregates information from Internet Service Providers (ISPs) on how consumers use and search the Internet in the US, UK, Austraia and other countries in Asia Pacific. Informarketing: provides direct marketing services to financia institutions in Brazi incuding database management, maiing ist anaysis and ceansing, data enhancement and enrichment and marketing campaign management. INSOURCE: database combining data from hundreds of pubic and proprietary sources to provide extensive marketing information on US consumers. Inteigent suppression management: inteigenty managing customer communication preferences to hande the compexities of customer contact, whist striking a baance between corporate compiance and maximising marketing opportunity. Intravue Campaign Management: a customer management soution integrating powerfu database technoogy, campaign management software, marketing information and anaytica expertise. Lifestye data: resuts of questionnaires focused on consumers ifestyes, habits, attitudes and purchasing behaviour. List processing: creates ists for direct mai from singe or mutipe sources, ceansed for dupicate names, changes of address, deceased and opt-outs. Marketing databases: databases of information about individuas coected from many different sources, for segmentation and target marketing. Micromarketing profiing toos: aids decision making through geographic, demographic, financia and behavioura information on consumers; buids a picture of the target audience for a product, recognising the different motivations that ead different demographic segments to buy each variant of a brand.

67 4.03 Expaining Experian Mosaic: a goba network of segmentation that cassifies a biion peope wordwide, covering a third of the earth s surface. nvision: an onine UK and European consumer insight service that researches and provides market anayses on emerging consumer markets. Parc Locator: software package for motor manufacturers and deaers to anayse saes trends and customers, and deveop marketing strategies. Profiing and segmentation: anaysis of consumers to identify characteristics that ead to certain types of purchasing behaviour. The FootFa Index: a representative too to assess consumer shopping behaviour. The Index monitors the changing pattern of shopper visits across the markets in response to events that impact on decisions to visit retai outets. TrueTouch: muti-dimensiona contact system that not ony identifies the best customers and prospects, but the types of messages and offers that motivate purchases, the preferred communication channes and the optimum time to contact customers. Truvue: a customer data integration soution combining customer data from different sources to create a singe customer view. Prospect Locator: onine direct marketing ists with search criteria based on demographics, ifestye or business data. QuickAddress: a goba address management software suite which heps cients capture, verify and enter address data quicky and accuratey by using ZIP or posta code, and house or buiding number. QuickAddress Pro: vaidates customer addresses against officia posta authority records in rea-time, as data is entered in a ca centre or at point-of-sae; ensures that biing and deivery addresses are compete and standardised. QuickAddress Pro Web: brings rea-time address vaidation to web-based environments, incuding e-commerce. Simmons Research: coects information on over 8,000 brands in 460 product categories, creating detaied consumer profies with over 600 ifestye characteristics. The information can be used to provide consumer studies, segmentation systems or advanced integrated marketing soutions to cients (US).

68 Expaining Experian 4.04 Main products and services : Interactive CassesUSA: an onine higher-education porta which connects consumers interested in enroing in onine education programmes with universities and other education organisations (US). ConsumerInfo.com: a direct-to-consumer onine credit information and monitoring service (US). CreditExpert.com: free consumer education artices, cacuators and advice on how consumers can manage and protect their credit histories; offers premium subscription products such as Credit Manager and Credit Report/Score (US/UK). LowerMyBis.com: an onine mortgage ead generator and financia services advertiser that provides consumers with comparative financia information on products such as mortgages and oans (US). PriceGrabber.com: an onine comparison shopping service for the US and UK markets. Tripe Advantage SM : provides consumers with daiy monitoring of a three nationa credit reporting companies credit reports and sends text aerts via emai or SMS mobie when critica changes are detected (US).

69 4.05 Expaining Experian Main products and services : Major databases Automotive database: contains detais on ownership history, odometer readings and condition of over 600 miion vehices (US, UK and Itay). Canvasse consumer database: for target marketing with 6,000 seectabe eements and 14 miion UK individuas (UK equivaent of INSOURCE in US). Car Data Check automotive database (UK). CML: Counci of Mortgage Lenders Possessions Register data contributed by the CML and avaiabe ony to other CML members and their subsidiaries (UK)*. Credit Account Information Sharing (CAIS): shared credit account information maintained by Experian on behaf of enders (UK). Credit Appication Previous Searches (CAPS): records of previous appications for credit from individuas (UK). Credit Industry Fraud Avoidance System (CIFAS): the UK s Fraud Prevention Service suspected fraud information provided by enders (UK)*. Detect: shared database of previous credit appications, used by enders to identify discrepancies in current appications that may be indicative of fraud (US/UK). Directors Database: business credentias of current and previous company directors and company secretaries (UK). Existence Verifier: database of 13 miion deceased persons in Engand and Waes; assists pensions industry to verify deceased persons. Fie One: nationa consumer credit reationa database with coverage of 215 miion consumers (US). GAIN (Gone Away Information Network): shared information about absconders submitted by GAIN members for use by other members (UK)*. Hotine Fie: B2B marketing database of recenty reocated businesses (US). INSOURCE: nationa consumer database with information on more than 215 miion consumers and 110 miion househods compied from pubic and proprietary sources. INSOURCE incudes transactiona and ife event data. Life event information: ists identifying key prospects with specia needs, such as new homeowners, new movers, new parents, expectant parents (US). Limited Company Database: imited iabiity companies and their directors (UK). Motor Insurance Database: vehice and motor poicy records from registered motor insurers (UK). Nationa Business Database: business information for marketing purposes (US/UK). Nationa Canvasse Database: Eectora Ro repacement comprising compiant information suppied by consumers in the past 12 months. Provides comprehensive coverage of the UK adut popuation. Nationa Fraud Database: onine database of industry-wide confirmed fraud records used for combating fraud by comparing appicant data to fraud data (US). Nationa Vehice Database: database of over 500 miion icensed and registered vehices in the US. Non-imited Database: data on sma (unincorporated) businesses, partnerships and soe traders (UK). Peris: rating and geographica modes on subsidence, food, wind, crime, freeze and fire (UK). Posta address fie: fu officia posta addresses and postcodes for a UK properties (UK)*. Pubic information fie: information compied from Registry Trust Ltd, officia gazettes and the Insovency Service (UK)*. Uncaimed Assets Register (UAR): search faciity that aows consumers to recover ost assets such as ife poicies, pensions, unit trusts and share dividends (UK). Vehice mieage check: the UK s eading mieage database, updated daiy with information received from the DVLA and many other sources. Voters Ro: detais of a individuas registered on the Eectora Ro (UK)*. Z-24 Nationa Cataog Database: data on more than 2.8 biion cataogue orders suppied by over 700 cataoguers/retai companies (US). * Indicates non-proprietary or third party database utiised by Experian as an integra part of its service offering. The product names isted in this document are trademarks of Experian and/or its associated companies and may be registered.

70 Corporate headquarters Corporate office Operationa headquarters Experian Group Limited Newenham House Northern Cross Maahide Road Dubin 17 Ireand T +353 (0) F +353 (0) Experian Cardina Pace 80 Victoria Street London United Kingdom T +44 (0) F +44 (0) Experian Tabot House Tabot Street Nottingham NG80 1TH United Kingdom T +44 (0) F +44 (0) Experian 475 Anton Bvd Costa Mesa CA United States T F Experian Ltd A rights reserved The word Experian is a registered trademark in the EU and other countries and is owned owned by Experian Ltd and/or its associated companies