Experian 2011 Annual Report Download - page 48

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Experian Annual Report 2011
46
Credit risk is managed by:
•Dealing only with banks and financial
institutions with strong credit ratings,
within limits set for each organisation;
and
•Close control of dealing activity with
counterparty positions monitored
regularly.
Liquidity risk is managed by:
•Long-term committed facilities to ensure
that sufficient funds are available for
operations and planned expansion; and
•Monitoring of rolling forecasts of
projected cash flows to ensure that
adequate undrawn committed facilities
are available.
Capital risk management
The objectives in managing capital are:
•To safeguard the ability to continue as a
going concern in order to provide returns
for shareholders and benefits for other
stakeholders; and
•To maintain an optimal capital structure
and cost of capital.
Experian remains committed to:
•A prudent but efficient balance sheet;
and
•A target gearing ratio of 1.75 to 2.0 times
EBITDA, consistent with a desire to
retain a strong investment grade credit
rating.
In order to maintain or adjust the capital
structure, Experian may adjust the amount
of dividends paid to shareholders, return
capital to shareholders, issue or purchase
shares or sell assets to reduce net debt.
Going concern
The Board formed a judgment at the time of
approving the Group and parent company
financial statements that there was a
reasonable expectation that the Group
and the Company had adequate resources
to continue in operational existence for
the foreseeable future. In arriving at this
conclusion the Board took account of:
•Current and anticipated trading
performance which is the subject of
detailed comment in the business review;
•Current and anticipated levels of net
debt and the availability of the committed
borrowing facilities which are detailed
above; and
•Exposures to and management of
financial risks which are summarised
above and detailed in the notes to the
Group financial statements.
For this reason, the going concern basis
continues to be adopted in the preparation
of the Group and parent company financial
statements.
Financial review continued
Helping Vodafone get closer
to its customers
Vodafone is one of the world’s largest mobile communications companies, with
more than 360 million customers. Over the past decade, Experian has developed a
growing relationship with Vodafone, which last year expanded into Greece, India,
Portugal and Turkey, bringing the total number of countries supported to 12.
Experian enables Vodafone to make faster and better informed decisions
throughout the customer lifecycle; whether it’s identifying potential new
customers, setting the most appropriate credit terms, pinpointing additional
sales opportunities or determining the appropriate contact strategy. Through
more insightful and intimate interactions, Experian is helping Vodafone enhance
the customer experience.
Detlef Schultz, CEO of Vodafone Procurement Company, said: “Experian has
become a strategically important global supplier to Vodafone, providing us with
valuable insight that helps us get closer to millions of customers around the world”.