Equifax 2013 Annual Report Download - page 3

4 EQUIFAX 2013 ANNUAL REPORT
Delivering Insights
Great companies are known for the problems they solve, not the products they sell. Once considered
a traditional credit reporting company, Equifax is now a global leader in consumer and commercial
information solutions. We still accumulate large amounts of differentiated data – and that will always be
at the core of all we do. Indeed, to date, we have information on more than 600 million consumers and
80 million businesses worldwide.
The markets we serve today require us to interpret our data, provide insights from it, and deliver
technological capabilities and solutions which meet the customer's changing needs. For auto dealers,
it means the ease of having multiple customer scores combined into one report. For banks and credit
unions, it means better insights that result in more targeted and successful customer outreach efforts.
For state governments, it means improved unemployment benefits tracking and less fraud. And, for
savvy consumers, it’s insights that help them manage their financial lives, protect their identities and
get access to the credit they deserve at a fair price.
Our vertical market focus has enabled us to delve deeper into customer issues and better anticipate
and address their needs. It is the basis for our Decision360® comprehensive solutions framework. This
strategic approach combines and analyzes our differentiated data, business intelligence, analytics and
state-of-the-art technology to help customers solve their most complex business challenges.
Delivering the Future
At Equifax, we feel confident about our future. We will continue evolving our growth strategy around the
strong foundation we have developed over the past seven years.
We will always innovate and execute. Our customers have come to expect a lot from us, and they
can continue to rely on us for creative, yet practical solutions.
We will also continue to leverage our analytics and software capabilities to provide insights related to
risk, marketing and fraud that are needed across all industries. This will enable us to enter new, long-term
growth markets while continuing to penetrate current markets.
We are engaged in a business of trust and empowerment. We have the information, analytics and
solutions to provide actionable insights to both businesses and consumers. These insights give us unlimited
potential to help all types of businesses improve their performance and give consumers the confidence and
control to be their financial best.
We have paved a proven path to success and have systemically changed the growth trajectory of this
company for the long-term. We will use our position of strength to make even greater strides in the coming year.
Sincerely,
Richard F. Smith
Chairman and Chief Executive Officer
#1 in market #2 in market
STRONG INTERNATIONAL
FRANCHISE
2010 2011 2012 2013
195
222
235
207
WORKFORCE SOLUTIONS
TOTAL RECORDS
(THE WORK NUMBER)
(IN MILLIONS)
“Year after year, in the face of economic,
regulatory, competitive and other external
uncertainties, we have met or exceeded
our targets.”
As a global leader delivering information and insights for businesses and consumers, everything Equifax
does revolves around trust. Whether safeguarding the data entrusted to us by customers and consumers,
delivering high-value decisioning tools to our customers, or driving value for our shareholders, we know we
are only as good as our word. That is why we are relentless about delivering on what we promise.
In 2013, that meant another year of strong, broad-based performance backed by the highest standards
of trust and integrity. In fact, 2013 was the best financial performance the company has experienced since
I have been its CEO. Revenue grew 11 percent to a record $2.3 billion and Adjusted Earnings per Share
(EPS) (non-GAAP, adjusted to exclude items affecting comparability of results) grew 24 percent to $3.60. Our
shareholders were rewarded as well, as the stock closed the year at $69.09, up 28 percent year-over-year.
The ability to produce results at these levels takes dedication and commitment. We have developed a
strong set of principles and management processes to which we adhere unfailingly. And we have a clear
vision supported by a disciplined strategy.
Delivering Growth
Looking back on our performance over the years, one word comes to mind: consistency. Year after year,
in the face of economic, regulatory, competitive and other external uncertainties, we have met or exceeded
our targets. We grow best when we sow the seeds of new growth initiatives in our core businesses, in
combination with acquisitions that complement our growth plan. The balance of organic and inorganic
growth with disciplined execution has enabled Equifax to outperform the S&P 500 Index.
In 2013, our 5 business units drove 7 percent core, non-mortgage market organic growth. This strong,
fundamental growth came from a broad portfolio of offerings and an increasingly diverse customer base,
which helped to offset the anticipated decline in U.S. mortgage market activity. Key to our strength is our
ability to combine proprietary and other data with analytics and technology to help our customers make
better decisions that improve their business operations and create new growth opportunities for them and us.
For example, our Workforce Solutions business unit, which provides income and employment
verification services and onboarding, compliance and pay reporting, is assisting the Centers for Medicare
& Medicaid Services (CMS) in its administration of the Affordable Care Act. We developed a customized
solution in record time and our verifications processing has been operating without a hitch since its
implementation. The contract positions us to work with CMS for up to five years as they implement and
oversee the program.
To Our Shareholders
2008-
2010
2009-
2011
2010-
2012
2011-
2013
47%47%
2%
8%
EQUIFAX THREE - YEAR TOTAL
SHAREHOLDER RETURN OVER
THE S&P 500 THREE - YEAR
TOTAL SHAREHOLDER RETURN
1 EQUIFAX 2013 ANNUAL REPORT
#1 in market #2 in market
STRONG INTERNATIONAL
FRANCHISE
2010 2011 2012 2013
195
222
235
207
WORKFORCE SOLUTIONS
TOTAL RECORDS
(THE WORK NUMBER)
(IN MILLIONS)
2008-
2010
2009-
2011
2010-
2012
2011-
2013
47%47%
2%
8%
EQUIFAX THREE - YEAR TOTAL
SHAREHOLDER RETURN OVER
THE S&P 500 THREE - YEAR
TOTAL SHAREHOLDER RETURN