Experian 2014 Annual Report Download - page 7

Introduction • Chairman’s statement 03
Experian has evolved and grown to
become synonymous with the information
age, and the strength and depth of the
Group’s global portfolio is a cornerstone
of its success. From this strong position,
I am pleased to report that the year’s
highpoints were numerous: from the UK
and Ireland’s strong performance, buoyed
by Consumer Services’ record year, to
the launch of the first fraud database
in Australia to combat this ever-present
threat. The year was also notable for
the global launch of our cross-channel
marketing platform, helping clients to
communicate with consumers in an even
more personalised and seamless way,
spanning traditional and digital channels.
Over the last decade, Experian has
successfully diversified into a range
of new customer segments, using
the Group’s core data and analytical
capabilities to help clients improve their
business decisions and their customers’
experience. Stretching beyond Experian’s
financial services heartland, our products
and services are now regarded as the
industry standard across many high-
growth markets, such as US healthcare
payments, automotive, public sector and
telecommunications. These new customer
segments now account for 69% of Group
revenues, underlining the excellent
strategic progress it has made in building
substantial businesses in new sectors.
Nowhere are the growth prospects more
exciting than in US healthcare payments,
a highly attractive marketplace Experian
entered five years ago and one where
our business is growing strongly. In a
marketplace rich with opportunities, I was
delighted by the Group’s acquisition of
Passport Health Communications in North
America, marking another new chapter
in Experian’s history. This acquisition saw
us cement our position as the clear leader
in US healthcare payments and create an
excellent platform for further growth.
Meanwhile, our passion for science and
innovation remains stronger than ever
and, over the course of the year, we set
new standards in data and analytics. With
‘Big Data’ part of the business lexicon,
Experian was one of the original pioneers
in this field. Replicating successes in North
America, we took the decision to invest in
the development of new data laboratories in
the UK and Ireland and Brazil to research
and develop ground-breaking analytical
capabilities, so our clients and consumers
can make even more insightful decisions
in a world where information is growing
exponentially. Another major milestone
during the year saw the Group introduce
device identification, to further enhance
its growing global portfolio of fraud and
identity management capabilities through
its acquisition of The 41st Parameter.
Engaging our people
Experian’s continued success owes a
great deal to the outstanding efforts of
a very talented global workforce. Our
culture encourages exceptional business
performance, through the skills and energy
of more than 16,000 people.
Our efforts to build this sense of pride and
connection are embodied by our Heart of
Experian initiative. After two years, I am
delighted that its aim of making Experian
one of the best places to work continues
to go from strength to strength.
The year also saw us recognise and
celebrate Experian’s rich history, stretching
back to the 1800s, with the publication of
a history book which we shared with our
people. One of the aspects that struck me
most was the fertile scientific and innovative
environment that Experian has always
cultivated. Reflecting this, we launched
a new annual award called the Si Ramo
Award. Doctor Simon Ramo was one of
Experian’s forefathers, a physicist, engineer,
business leader and visionary. The prize
will be awarded annually to teams or an
individual whose scientific skills pioneer
new breakthroughs in data and analytics.
Strong and effective governance
I would first like to take this opportunity to
thank Sir Alan Rudge, our Deputy Chairman
and Senior Independent Director, who
will retire at the conclusion of our annual
general meeting in July, for his significant
contribution and wise counsel to the Group
over many years. I would also like to thank
Chris Callero for his long and distinguished
contribution to the Group, ultimately as its
Chief Operating Officer, and wish him the
very best for his well-deserved retirement.
A strong governance structure is one of
the principal supports for premium growth,
successful acquisitions, the continued
expansion of our business and other Group
initiatives. The Board remains focused
on ensuring its effectiveness and the
effectiveness of governance processes
throughout the Group. It was therefore
pleasing that the external Board evaluation
this year highlighted the Board’s strength
and the value it brings to the Group.
The Board-level changes that we have
announced over recent months, and the
considered way in which the process was
steered by Sir Alan, will strengthen what
is already a very capable and experienced
Board and I provide my perspective in
detail in this report’s Governance section.
Recognising our responsibilities
With growth comes an acute sense of the
Group’s social, economic and environmental
responsibilities. We know that our role in
society has never been more important and
we have the power, through our people, data
and analytics, to help communities achieve
their social and economic potential. This
is precisely what we aim to do through
the Group’s social responsibility agenda.
Under our Heart of Experian banner,
our social responsibility programme
has gathered real momentum, and I am
pleased to report that it was a year of
major progress and many milestones.
We launched our first global social
innovation programme, encouraging our
regions to bid for funding to develop new
products and services that have both an
inherent social and commercial benefit.
In this report you will read about many
of the pioneering, sustainable products
our seed-funding helped to kick-start.
This programme has struck a chord
with our people and their response has
been overwhelming. They are keen to
harness their unique skills and our data
and analytics, to make a sustainable
difference to people’s lives.
In our local communities, we gave back
more of our time than ever before to
helping those most in need. Illustrating
the Heart of Experian’s values in action,
our people volunteered nearly 6,000 more
hours of their time during the working
day last year.
Environmentally, we continued to reduce
our impact, with a corresponding benefit
to our business efficiency. Initiatives to
cut our energy use and business travel
and to divert more waste from landfill all
contributed to an improved environmental
performance. We also achieved our
highest-ever result in the UK Carbon
Disclosure Project survey, with our
score increasing by 17 points to 82%.
Strongly positioned for the future
Experian is a remarkable story about a
successful business built on innovation,
global enterprise and, above all, the
endeavours and hard work of some
amazing people. The Group’s vision that
‘its people, data and technology become
a necessary part of every major consumer
economy’ feels well within our grasp.
It has been my utmost privilege to serve
as Experian’s Chairman and to be part of
this global success. I would like to thank
everyone at Experian for their dedication
and commitment and our shareholders for
their strong support.
The Group will be under the stewardship
of an exceptional Chairman in Don Robert,
my successor, an outstanding Chief
Executive Officer in Brian Cassin, and a
highly experienced Board. I know that Don
and Brian share a passion for the power of
information, Experian and its people, and
will serve Experian and its shareholders
tremendously well. 2014 marks a new
chapter in Experian’s history and its future
is as exciting as it has ever been.
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