PresentationJames RosenthalResearch Analyst Good afternoon, and good morning. I'm James Rose from Barclays Business Services team. And for another year, I'm delighted to introduce today's session with Experian as part of our Global Credit Bureau Forum. Once again, Experian has an excellent series of speakers and presentations for us over the next few hours to showcase both their products and their senior business leaders. In this session, we also have some new faces presenting to us. Our agenda for today, w ...

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COSTA MESA, Calif.--(BUSINESS WIRE)--Experian was ranked 6th in the 2025 IDC FinTech Rankings: Top 100, rising one spot from last year's rankings and placing. ...

Investors might want to bet on Experian PLC (EXPGY) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing earnings p ...

Group 1: Company Performance - Brink's (BCO) has returned 17.4% year-to-date, outperforming the average loss of 0.6% in the Business Services sector [4] - The Zacks Consensus Estimate for Brink's full-year earnings has increased by 8.2% over the past three months, indicating improving analyst sentiment [3] - Brink's currently holds a Zacks Rank of 1 (Strong Buy), suggesting strong potential for future performance [3] Group 2: Industry Comparison - Brink's belongs to the Outsourcing industry, which is ranked 46 in the Zacks Industry Rank, while the average loss for this group is 9.4% year-to-date [5] - In contrast, Experian PLC, another Business Services stock, has returned 19.2% year-to-date and belongs to the Business - Information Services industry, which is ranked 80 and has declined by 15.4% [4][6] - The Business Services group consists of 255 companies and is currently ranked 6 in the Zacks Sector Rank [2]

Core Insights - Experian is not only a credit bureau or a data provider but also offers additional value through international diversification, which has contributed to its resilience against macroeconomic challenges and is expected to support its continued success [1]. Group 1 - Experian's business model includes both credit bureau services and data provision, enhancing its value proposition [1]. - The company's international diversification strategy has been a key factor in its ability to thrive despite adverse economic conditions [1]. - Analysts anticipate that Experian will maintain its positive trajectory moving forward [1].

Financial Data and Key Metrics Changes - The company reported Q3 organic revenue growth of 6%, which was 8% on an underlying basis when adjusting for data breach impacts, continuing the strong trend from Q2 [1][4] - Total group revenue growth was 8% at constant currency and 6% at actual rates, maintaining high single-digit growth despite a subdued environment for unsecured credit activity [2][5] - Acquisitions contributed 2% to growth, while exchange rates posed a 2% headwind due to the depreciation of the Brazilian real [20] Business Line Data and Key Metrics Changes - B2B organic revenue growth was 6%, while Consumer Services grew by 5%, rising to 15% when excluding data breach impacts [3][20] - In North America, organic revenue growth was 6%, with B2B growth at 8% and Consumer Services at 2% [21] - Latin America achieved 8% organic growth, with B2B growing 4% and Consumer Services delivering a strong 22% growth [26][27] Market Data and Key Metrics Changes - North America showed strong underlying trends with 9% growth excluding data breach impacts, while EMEA/Asia Pacific grew by 9% [2][17] - UK&I growth was subdued at 1%, but Consumer Services in the region delivered a strong performance with 10% growth [15][16] - The mortgage profile revenue in the U.S. grew by 71%, primarily driven by price increases rather than volume growth [88] Company Strategy and Development Direction - The company is focused on executing growth investments to sustain momentum, including enhancing subscription services and expanding insurance offerings [11][20] - The strategic progress in Consumer Services is evident, with a strong emphasis on acquiring new members and improving engagement [14][16] - The company aims to maintain organic revenue growth guidance of 6% to 8% and margin expansion at the upper end of the 30 to 50 basis points range [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying performance of the business despite a challenging credit environment, highlighting structural resilience [94] - The company anticipates continued cautiousness in credit supply, with stable to moderately improved conditions noted in the U.S. [65] - Concerns regarding the fiscal situation in Brazil were acknowledged, but management does not foresee immediate deterioration in the credit cycle [117] Other Important Information - The company is seeing good progress in the integration of acquisitions, which are expected to contribute to growth in the coming years [83] - The insurance marketplace is projected to reach an annualized run rate of about $100 million, with significant growth opportunities identified [39][66] Q&A Session Summary Question: Insights on North America B2C credit marketplace - Management noted strong growth in the insurance marketplace and early signs of recovery in the credit marketplace, with a focus on expanding partnerships [40][41] Question: Data breach services and market trends - Management clarified that the data breach business is lumpy and difficult to predict, with expectations of normalization in Q2 FY '26 [37][42] Question: Trends in LatAm B2B - Management indicated that B2B growth in Latin America improved slightly, with ongoing cautiousness in lending linked to the fiscal situation [43] Question: Health business growth expectations - Management expects strong growth in the Health business due to a robust sales pipeline and high margins [47] Question: Regulatory concerns in the U.S. - Management expressed no worries regarding the CFPB lawsuit, stating it lacks merit and emphasizing a constructive relationship with regulators [51][56] Question: Q4 organic growth expectations - Management anticipates organic growth of around 7% to 8% for Q4, excluding data breach impacts [57] Question: Credit supply recovery signs - Management noted stable conditions in the U.S. but did not expect significant changes in credit supply [65] Question: Insurance marketplace outlook - Management highlighted the potential for significant growth in the insurance marketplace, with expectations for continued success in customer acquisition [66][68] Question: Verification Services strategy - Management confirmed ongoing efforts to grow the Verification business, focusing on building a strong database and exploring consumer permission opportunities [100][101]

| --- | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------| | | | | | | | | | | | | | | | | | Half-yearly results for the six months ended 30 September 2024 | | | | | | | | 13 November 2024 | | | | © Experian, 2024. All rights reserved. The word "EXPERIAN" and the graphical device are trademarks of Experian and/or its associated companies and may ...

Financial Data and Key Metrics Changes - The company achieved 6% organic revenue growth for FY '24, at the top end of guidance, with total revenue growth at 8% when including acquisitions and FX [5][55] - Underlying EBIT margins improved by 10 basis points at constant currency, with benchmark EPS increasing by 8% [6][55] - Operating cash flow reached $1.9 billion, with a cash conversion rate of 97% [56][75] Business Line Data and Key Metrics Changes - Consumer Services led with 7% organic revenue growth, despite challenging market conditions [6][8] - North America Consumer Services grew 6% organically, supported by premium revenue stability and new features [37][62] - Latin America saw a strong performance with 13% organic growth, particularly in Consumer Services which grew 26% [41][44] Market Data and Key Metrics Changes - North America delivered organic revenue growth of 5%, with significant contributions from consumer services and health [31][58] - The U.K. experienced 2% organic revenue growth, with B2B growth at 3% [47][50] - EMEA and Asia Pacific achieved 7% organic revenue growth, with strong contributions from Australia and India [51][52] Company Strategy and Development Direction - The company is focused on driving strong top-line growth while benefiting from a normalizing credit environment and improving margin trajectory through technology efficiencies [4][28] - Strategic investments in technology transformation and product development are ongoing, with a commitment to innovation and growth [3][10] - The company aims to leverage its large consumer membership base to enter new categories and achieve scale quickly [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to deliver growth despite challenging macro conditions [2][11] - The outlook for FY '25 includes expectations for continued strong organic growth and margin improvement [4][28] - Management highlighted the potential for future growth driven by technology transformation and enhanced consumer engagement [29][84] Other Important Information - The company completed several acquisitions, including illion in Australia, to strengthen its market position [10][52] - A share buyback program of up to $150 million has been announced, to be completed by June 2025 [78] Q&A Session Summary Question: Can you discuss the headwind to margin from the cloud transformation and the trajectory of CapEx normalization? - Management indicated that dual run costs from technology transformation are about 100 basis points and will sustain over the next two years, with CapEx expected to trend down to 7% by FY '29 [96][97] Question: How should we think about your capital allocation and potentially returning extra cash? - The company prioritizes reinvesting in growth opportunities but will consider enhanced buybacks if capital cannot be deployed effectively [98] Question: What are your expectations for Q1 and the first half of FY '25? - Management expects to start the year around 7% organic growth, with no broad-based recovery in lending volumes anticipated [106] Question: Can you provide more details on the growth in North America, particularly regarding Ascend and consumer services? - Ascend revenue for FY '24 was over $180 million, contributing significantly to growth, while consumer services benefited from a strong breach business [110][111] Question: What is the medium-term margin ambition for the U.K. and EMEA/Asia Pacific? - The company aims for 30% operating margins in the U.K. and 20% in EMEA/Asia Pacific, with confidence in achieving these targets [117]

Experian PLC (EXPGY) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual ...