Equifax 2002 Annual Report Download - page 6

TO OUR VALUED SHAREHOLDERS,
The accomplishments listed on the previous page, plus more, were made in a year marked
by one of the most chaotic economic environments in many generations. I am so proud of
our people. These achievements reflect their tireless efforts. Not only did they overcome a
difficult industry environment to make our numbers, but they also made tremendous strate-
gic progress on every business front.
A BOTTOM-LINE DIFFERENCE
The Equifax business model is about growth, driven by innovation and world-class solutions
that hit the bottom line. Nowhere is this more apparent than in our North American busi-
ness, which accounts for 81 percent of revenues and 91 percent of profits. In 2002, margins
reached 40 percent on revenue growth of six percent. This impressive level of profitability
demonstrates the superior strategic position that Equifax maintains in the marketplace.
EQUIFAX INFORMATION SERVICES
One of the fundamental drivers of performance is our ownership and use of data that
allows us “to serve our customers by utilizing information and technology that provide
real-time answers to increasingly complex questions” – our mission statement. Even in
the tough economy of 2002, our core credit reporting business grew volume by four per-
cent – continuing the consistent volume growth that it has experienced over the past
decade. In addition, we expanded our capability and market position through the acquisi-
tion of certain key assets from our second largest affiliate, Credit Bureau of Columbus
(CBC), an independent credit reporting agency. The benefits of this purchase are twofold:
the expectation of increased profitability and the opportunity to offer our customers
seamless service.
The Equifax Decision Power®product suite has been another key growth driver that
continues to make a difference to the bottom line through decisioning, cross-selling
opportunities and real-time analytics. Since introducing the industry’s first analytical
decision-making platform a decade ago, we have made continuous technological and
functional enhancements to better serve customers. Decision Power InsightTM
,for exam-
ple, is a new automated screening process for demand deposit account applicants that
combines deposit account history with fraud and identification tools, credit data and
models for cross-selling. The power of these products to help businesses make fast,
real-time, well-informed decisions is evident by their use, helping Equifax customers
make almost five million decisions on a monthly basis.
EQUIFAX MARKETING SERVICES
Another major accomplishment during the year, through the acquisition of Naviant, Inc.,
was the repositioning of Equifax in the marketplace to form the new Equifax Marketing
Services. This transaction now makes Equifax the leading provider of email marketing
solutions – with a database of more than 100 million opt-in email addresses in the
LETTER TO SHAREHOLDERS
”The Equifax
business model
is about growth ... ”
Our Mission Statement:
”To serve our customers
by utilizing information
and technology that pro-
vide real-time answers
to increasingly complex
questions.”
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