Experian 2007 Annual Report Download - page 24

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We have made excellent progress
during the year against our strategic,
operational and financial objectives.
The demerger from GUS was a
significant milestone in the
development of Experian, allowing
investors to benefit directly from the
future growth of the company and
our employees to become
shareholders. The £800m raised from
both new and existing shareholders
provides us with financial flexibility
and will help to underpin our growth.
Delivery against financial objectives
Over the past year, we have delivered against our key
financial objectives. We have driven growth in both sales
and profits, with organic sales growth of 8% and a
further improvement in EBIT margins in our continuing
business, excluding FARES. All three regions delivered
good organic sales growth, reflecting the strength of our
portfolio. Our cash flow was strong and we converted
97% of EBIT into operating cash flow, ahead of
our target.
Acquisitions made in the four years to March 2006
together delivered double-digit post-tax returns in the
year to March 2007. The more recent acquisitions are
trading to plan.
Clear strategic progress
Our strategic priority at Experian is to continue to deliver
sustainable growth in order to create lasting shareholder
value. To facilitate this, we focus on our primary growth
drivers, and good progress was made against these over
the past year:
• Deeper client relationships - we won a number of new
mandates from existing clients. For example, we
renewed and expanded contracts with seven of the
top ten US banks.
• Geographic expansion - we have continued to expand
in markets outside the US and the UK, with significant
new client wins in many countries, including Spain,
France, Japan, China and South Africa.
• Product innovation - we continue to focus on product
innovation, introducing over 20 new products during
the year, including Precise ID, a new fraud detection
platform; MicroMarketer G3, the latest generation of
Experian’s global market segmentation system; and
Simmons online market research.
• Vertical expansion - we have strengthened our position
in new and expanding market sectors, including
telecommunications, government, retail and media.
For example, Experian is now a provider of credit
and decisioning services to all top five wireless
telecommunications companies in the UK.
22 | Experian Annual Report 2007
Progress in 2007
Introduction | Business review | Governance | Financial statements
We spent $82
million on
acquisitions
during the year
$
82m