Annual Report • Jun 10, 2022
Annual Report
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Experian PLC 635400RXXHHYT1JTSZ26 2021-04-01 2022-03-31 635400RXXHHYT1JTSZ26 2020-04-01 2021-03-31 635400RXXHHYT1JTSZ26 2022-03-31 635400RXXHHYT1JTSZ26 2021-03-31 635400RXXHHYT1JTSZ26 2020-03-31 635400RXXHHYT1JTSZ26 2020-04-01 2021-03-31 exp:BenchmarkMember 635400RXXHHYT1JTSZ26 2020-04-01 2021-03-31 exp:NonBenchmarkMember 635400RXXHHYT1JTSZ26 2020-04-01 2021-03-31 ifrs-full:RetainedEarningsMember 635400RXXHHYT1JTSZ26 2020-04-01 2021-03-31 ifrs-full:EquityAttributableToOwnersOfParentMember 635400RXXHHYT1JTSZ26 2020-04-01 2021-03-31 ifrs-full:NoncontrollingInterestsMember 635400RXXHHYT1JTSZ26 2020-04-01 2021-03-31 ifrs-full:OtherReservesMember 635400RXXHHYT1JTSZ26 2020-04-01 2021-03-31 ifrs-full:SharePremiumMember 635400RXXHHYT1JTSZ26 2020-04-01 2021-03-31 exp:BenchmarkMember exp:OngoingActivitiesMember 635400RXXHHYT1JTSZ26 2021-04-01 2022-03-31 exp:BenchmarkMember 635400RXXHHYT1JTSZ26 2021-04-01 2022-03-31 exp:NonBenchmarkMember 635400RXXHHYT1JTSZ26 2021-04-01 2022-03-31 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2021-04-01 2022-03-31 exp:BenchmarkMember exp:ExitedActivitiesMember 635400RXXHHYT1JTSZ26 2020-03-31 ifrs-full:IssuedCapitalMember 635400RXXHHYT1JTSZ26 2020-03-31 ifrs-full:SharePremiumMember 635400RXXHHYT1JTSZ26 2020-03-31 ifrs-full:RetainedEarningsMember 635400RXXHHYT1JTSZ26 2020-03-31 ifrs-full:OtherReservesMember 635400RXXHHYT1JTSZ26 2020-03-31 ifrs-full:EquityAttributableToOwnersOfParentMember 635400RXXHHYT1JTSZ26 2020-03-31 ifrs-full:NoncontrollingInterestsMember 635400RXXHHYT1JTSZ26 2021-03-31 ifrs-full:IssuedCapitalMember 635400RXXHHYT1JTSZ26 2021-03-31 ifrs-full:SharePremiumMember 635400RXXHHYT1JTSZ26 2021-03-31 ifrs-full:RetainedEarningsMember 635400RXXHHYT1JTSZ26 2021-03-31 ifrs-full:OtherReservesMember 635400RXXHHYT1JTSZ26 2021-03-31 ifrs-full:EquityAttributableToOwnersOfParentMember 635400RXXHHYT1JTSZ26 2021-03-31 ifrs-full:NoncontrollingInterestsMember 635400RXXHHYT1JTSZ26 2022-03-31 ifrs-full:IssuedCapitalMember 635400RXXHHYT1JTSZ26 2022-03-31 ifrs-full:SharePremiumMember 635400RXXHHYT1JTSZ26 2022-03-31 ifrs-full:RetainedEarningsMember 635400RXXHHYT1JTSZ26 2022-03-31 ifrs-full:OtherReservesMember 635400RXXHHYT1JTSZ26 2022-03-31 ifrs-full:EquityAttributableToOwnersOfParentMember 635400RXXHHYT1JTSZ26 2022-03-31 ifrs-full:NoncontrollingInterestsMember iso4217:USD xbrli:pure xbrli:shares iso4217:USD xbrli:shares Br i ng i ng fi na n cia l po w e r to al l Experian Annual Report 2022 Y ear ended 31 March 2022 We are committed in our pur suit of brin ging financial p ower to all Inside this year’ s A nnual Repor t Strategic repor t 03 Our purpos e 04 E xp er ian at a glanc e 06 Chair’ s statem ent 08 Chief Executive’s review 1 4 Our pu rp ose in a ct ion 22 Stak eholder engagement 26 O ur inves tm ent cas e 28 Key p er f orman ce indi cator s 30 O ur busine ss m od el 34 Ou r strategy Sustai nable b usin ess 46 Enviro nmental , social and gover nance 4 9 Impr oving financial h ealth for all 50 T r eatin g data w ith r esp ec t 56 Insp iring an d supp or tin g our p eop le 62 Wor king w ith inte grit y 64 Protecting the environment 72 Non -financial info rmation and s 1 72(1 )s tate ment 74 F i n a n c i a l r e v i e w 85 Risk manag ement an d prin cipal r isks 93 V iabilit y an d goin g conc ern Gover nance 96 C h ai r ’s i nt r o d u c t i on 98 B oard of dir ec tors 1 00 Corpora te g ove rnan ce re port 1 1 1 Nomination and Corporate Gover nance Comm ittee r eport 1 1 7 Au dit Co mmit tee r epo r t 1 25 Re por t on di rectors’ remuneration 1 4 7 Directors ’ report Financial statements 1 5 1 Financial statement s contents 1 52 I ndependen t au dit or’ s re port Group financial statements 1 59 Group income statement 1 60 Group statement of comprehensive incom e 1 6 1 Group ba lanc e she et 1 62 Gr oup s tatem ent of chang es in eq uit y 1 63 G roup c ash flow s ta tement 1 6 4 N otes to th e Group finan cial st ateme nts Company financial statements 222 Company financial s tate ment s 225 Notes to the C ompany finan cial statement s 237 Shareholder and corporate information 239 Glossary Roundings Ce r t ain fi nan ci al da ta h as b e en r ou nd ed i n th is r ep or t. A s are s ult , th e tot al s of d at a pr es en te d may v ar y sli ght ly f ro m th e ac tu al arithmetic totals of the data. Exc ha nge rates Pr in cip al e xch an ge r ate s us e d ar e gi ven i n no te 10 to th e Gr oup fina nc ial s ta te me nt s. T h e av er ag e po un d st er li ng t o USdo ll ar ra te is 1.37 ( 2021: 1.31 ) . Financial highlights Reconciliation of s tatutor y to B enchmar k measures T o download this Annual Report and our other corporate liter ature visit www .experianplc.com 1 From ongoing activities. Th e re s ult s fo r th e ye ar e nd ed 31 M arc h 2021 h av e be en r e -p r es en te d fo r the r e cl as si fic at io n to ex i te d bus in es s ac t iv it ie s of c e rta in B2B busin esses. Benchmark Growth % at actual rates Growth % at constant rates Revenue – ongoing activities US$ 6,267 m +17 % +17 % (2021 : US$5,342 m) Benchmark EBIT¹ US$ 1,640 m +19 % +19 % (2021 : US$ 1,379 m) Benchmark profit before tax US$ 1,535 m +21 % +22 % (2021 : US$ 1,265 m) Benchmark EPS USc 124.5 +21 % +21 % (2021 : USc 103.1 ) Statutory Growth % at actual rates Growth % at constant rates Revenue US$ 6,288 m +17 % +16 % (2021 : US$5,372 m) Operating profit US$ 1,416 m +20 % +19 % (2021 : US$ 1,183 m) Profit before tax US$ 1,447 m +34 % + 19 % (2021 : US$ 1,077 m) Basic EPS USc 127.5 +45 % + 23 % (2021 : USc88.2) Year ended 31 March 2022 Statutory Non-benchmark items Benchmark Investment- related items Amortisation of acquisition intangibles Non-cash financing items Exceptional items 6,267 –– – – 6,267 Ongoing 21 –– – – 21 Exited Revenue US$m 6,288 –– – – 6,288 Revenue US$m 1,411 29 174 – 26 1,640 Ongoing 5 –– – – 5 Exited Operating profit US$m 1,416 29 174 – 26 1,645 Benchmark EBIT US$m Profit before tax US$m 1,447 57 174 (169) 26 1,535 Benchmark PBT US$m Basic EPS USc 127.5 3.7 13.8 (16.6) (3.9) 124.5 Benchmark EPS USc Se e no te 6 to t he G ro up fi nan cia l st at em en ts f or d efi ni tio ns o f no n- G A A P me as ur es . W e ar e foc u sed on a c le ar pu rpos e – t o c re at e a bette r t om orr o w f or c on s u me rs, f o r bu s in esses, f or o ur peo pl e a nd f or o u r co m m u n it i es. We play a vital role for Se e pa ge s 14 – 2 1 fo r Ou r pu rp os e in a ct io n Experi an i s a com pan y prou dl y bui lt o n purpose . Our p urpo se is c en tra l to o ur bra nd, a r ticu lated by o ur peop le a nd mut ua lly rei nforc ed by ou r cu lt ur e – it is e xpli ci tl y boun d to e ve r y t hi ng we d o. Mi llio ns of peo ple w orldwid e are st ill ex cl uded fro m access ing fa ir anda orda ble c red it becau se the y are i nvis ible t o the fin anci al syst em. It is o ur soc ial m issio n to im pro ve fi na nci al i ncl usi on, becau se access toc redit ope ns u p oppo r tun ities f or peopl e to tra nsfo rm the ir l ives. W e recog ni se th at we p lay a p ivot al ro le i n soci ety and we h ave a respo nsi bil it y to u se data a s a forc e for good . Our peo ple pu t th is i nt o acti on ev er y da y , by dev el opi ng capa bi liti es and us ing th ei r expe r tise toh elp m illi on s ma na ge th ei r fin anci al liv es. Brian Cassin Chief E xecutive O cer Consumers Helping ind ividuals better unders tand their financial pos itio n, t ake cont rol o f their finances and manag e their financial health. Businesses Hel ping b usine ss es to ma ke faster , smar ter decisions. Enabl ing t hem to le nd responsibly , more fa irly and quickly , reduce r isk, and del iver abet t er cus tom er e xp eri enc e. Communities Using dat a to hel p the m ost vul ner abl e in so ciet y gain a cc es s to credit , improve financial literacy and confidence, a nd suppor t economic growth . Our peop le Crea ting a di ver se, e quit able andinc lusiv e wor kpl ac e whe re ever yone c an thr i ve and b rin g their b e st s elve s to wor k. 3 Experian plc Annual Report 2022 Strategic repor t We a re focused on bringing fin anci al power to a ll. We want t o deliver thefullpower o f data, an alytics and technology to tran sform lives and deliver better outcomes for people and bus inesses. Our work empowe rs individ uals, fami lies, businesses, commu nities and go vernments to m ake sma r ter decisions a nd navig ate the world with confidence. Ou r suppor tive, insp iring cul ture helps encourage our people to become the best versions ofthemselves. The accelerating s hift to digital u nderpins ou r business. W e embrace inno vation and tec hnology to tak e advantage o f the possibilit ies data holds. Through our range of products and solutions, we help mi llions of people ga inaccess to fin ancia l ser vices, and bet ter prot ect themselves ag ainst fraud and iden tit y theft . We help bu sinesses unde rstand their custome rs bet ter , lend more res ponsibly , ee ctively and swif tly , whil e mini mising credita nd fraud risk. Exper ian a t a glance One of the biggest challenges in the wor ld is financial inclusion. Wearedriven by our purpose to: We have 2 0,600 dedicate d employees ser v ing 1 20,000 client s across 43countries a Cer tifie d in 20 of 28 count rie s' Great P la ces to Work a For tun e’ s 1 0 0 Be st C ompani es to Wor k For a 1 in 3 employ ee s took p ar t in o ur Car eer s Wee k a Recor d number s of ne w grad uates and apprentices a Employ ee en gage ment of 78% Making a real dierence Inclusive, inspir ing and sup por ti ve of our peo ple Purpose, innovation and cultur e driving our success Improve financial health for al l Championing consumers across our business Core products Social innovation Community investment T reating data with respec t Data fuels our business and a s its tr usted custodian it is only r ight that we have outlined this year our new Global Data Pr inciples which em body five key values Accuracy F airness T ransparenc y Inclusion Secu rity Le ar n mo re ab o ut h ow we'r e ins pir in g ands upp o r tin g ou r pe op le Se e pa ge s 56 - 6 1 Le ar n mo re ab o ut h ow we'r e mak in g a di er en ce Se e pa ge s 4 6-71 Experian plc Strategic r eport 4 a Ex pans ion in He alth, Au tomot ive, Insura nce and F in T e ch a Pushing fo r war d into ver ific ation a Forging ah ead in B razil w ith p ositi ve dat a a Now 1 3 4m memb ers glob ally a Innovating with broader propositions a Ex pan ding into ne w geo gra phie s a Growing the Exper ian Ma rketplace Our purpos e- led approach, investment in our people and technolog y , and execution of our s trateg y are reflec ted in our resul ts . The busine ss is per for ming stro ngly with 1 7% ¹ revenue grow th Growing our busine ss through innovation and technology Executin g on our str ateg y and investin g in exciting grow th initiatives Group organic revenue growth² + 12 % Acceleration in Business-t o-Business² + 9 % A step - c hange in Consumer Ser vice s² + 22 % 1 Total r ev enu e gr ow t h at c ons t ant e xch an ge r at es . 2 Or gan ic r ev enu e gr ow t h fr om o ng oi ng a ct iv i tie s at c on s tan t ex cha ng e ra te s. 3. Rev en ue f ro m on go ing a c ti vi ti es . Driving to scale in our smaller regions Expanding in new grow th markets Lea ding the nex t phase of c redit decisioning development Capitalising on a unique market opportunity in Brazil Redefining Consumer Ser vices far beyond credit scores and monitoring Le ar n mor e in o ur Str ate g y se ct io n Se e pa ge s 3 4- 45 Le ar n mo re in o ur Ch ief E xecu ti ve's r ev iew Se e pa ge s 8 to 13 Developing new ideas helps fuel f uture grow th. Weembracenew technologies , nur ture our talent, andcelebrate succes ses throughout the company . a Innovating at pace a An es tab lishe d cultur e of continuo us innov ation a Aw ard-winning product s a Leading with our cloud-enabled sol utions a Inves ting in th e wor ld’s leadin g data s cientis t s to sus tain scientificex cellence a Internal science-le d competitions a Dedi cate d Agile m onth fo r employ ee s A. Business-to-Business: Data 3,313 B. Business-to-Business: Decisioning 1,341 C. Consumer Services 1,613 T otal 6,267 Revenue by business activity³ (US$m) A B C A. North America 4,122 B. Latin America 79 1 C. UK and Ir eland 847 D. EMEA/Asia Pacific 507 T o t a l 6,267 Revenue by region³ (US$m) A B C D 5 Experian plc Annual Report 2022 Strategic repor t Chair’ s statement F Y2 2 ha s been a str ong fin anci al yea r forExperi an, wit h a gro win g con tri buti on from ou r relen tless f ocus o n in nova tio n andfu lfill ing ou r purpose t o mak e a reald ierence i n the fi na nci al lives ofco nsu mers and ou r clie nts. Mike R ogers Chair Championing consumers Con sumer S er v ice s has de liv ere d out s tandin g succ es se s, wi th much m ore to c ome. We ar e now conn ec ted w ith 1 3 4 milli on fr ee memb er s globally, which makes u s one of th e bigg es t financial pl at for ms in th e wor ld. We plan to grow and deepen these relationships to help indiv iduals p lan their finan cial lives m ore eectively. A s our busin es s exp ands , so do es o ur abilit y toposi tive ly impac t pe opl e’ s liv es . We launche d our ne w E xpe rian G o pro gramm e in the US A , desi gned to h elp th e 28 millio n pe ople w ho donot have a p rofile in t he cre dit e cos yste m. E xp erian G o help s the se ‘cre dit inv isible s’ create a cr edit p rofile fo r the fir st tim e, and then go o n to potent ially be com e sco rab le withgr eater a cce ss to f air and a ordab le finance options. In Bra zil, we c ontinue d our f ocus o n hel ping cons umer s manage th eir deb t throu gh our Feiro L impa Nom e campai gn. We trave lled tonine citi es acr oss Br azil and , over all , this year sup por ted nine mill ion co nsumer s to renegotiate their debts with lenders. This is abig s tep to hel p the in debte d impr ove th eir financial position . Th ese ar e just a f ew exampl es of how E x per ian is delivering consumer propositions that help make a profo und di ere nce in p eop le’s lives , workin g to exten d financial inclusion. Our technolog y , data , digital journeys Our clie nts ar e continual ly upgr ading t heir sys tems to e nhance t heir cus tom ers’ digit al exp eri ence s while al s o se eking to lo wer theco st of ac quirin g and re taining t heir custo mer s. We have a ro llin g pro gramm e ofinves tment in o ur techn olog y , sof twar e anddata set s to ta ke full a dva ntage of to day’s grow th in di gital s er vice s. O ur sup eri or data ass et s, e spe cially wh en combin ed w ith our sophis tic ated analy t ics , have put E x per ian inaposi tion of s tr eng th to take a dvant age ofawide ar r ay of opp or tuni tie s. E xpe rian's global pl at for ms, l ike A sce nd, h elp compani es to inco rp ora te more analy tical insight into the ir decisio ns, unlo cking t heir competitive advantage, and hence g rowing their b usine ss . Similar ly , Powe r Cur v e on the cloud enab les our cl ient s to be tt er under st and data and make f ast , e cient de cisions tha t supp or t th eir str ate gic goal s . In our Healt h busine ss , we have inve st ed in an initiat ive we c all th e ' digit al fro nt do or', which helps elimin ate the friction most patients exp er ienc e in pay ing fo r health car e in the US A . We have als o entere d new mar ket se gment s such as V erification and Employment Ser vice s, a market w ith a lot of p otential and v er y closelya djace nt to our he rit age in cr edit r isk ass es sment . We have built a s olid b as e in the Y ou will se e throug hout this yea r’s Annual Repor t how Exp erian is d eliverin g on its busin ess pla ns while also making a p ower ful dierence to th e communities in whi ch we oper ate around thewor ld. Help ing pe op le and or ganisati ons thr ive in thedigi tal ec ono my has be en, an d will r emain, a powe r f ul driv er of grow t h opp or tuni tie s for E xpe rian acr oss al l our ad dres sab le market s . We could no t be su cce ss ful in this e ndeav our with out o ur tale nted p eop le, w ho br ing to li fe Ex perian’ s innovative and entrepreneurial culture. We are pro ud to have b een th e re cipient ofmany rec ognit ions this y ear , inclu ding numero us acc ola des f or our in clusive an d diver se c ulture an d a global re co gnitio n as aGrea t Pla ce to Wor k. Fo r tun e name d us in it s2021 ‘Change th e Worl d’ lis t , refle c ting ou r eor ts to dr ive finan cial inclusion w orl dwi de. And , in re cogni tion of o ur sust ainabili t y wor k, we wer e named a s one of Euro pe’s Climate Lea der s 2022 by the F inancial T ime s. Making a dier ence to financial lives Experian plc Strategic r eport 6 USA , and w e will co ntinue to loo k for way s to exp and this b usines s in oth er ge ogr aphie s. We are making a lot of p rogr es s in La tin Ame ric a. O ur busine ss in B razil ha s star ted to realis e the p otential of th e prof ound shif t which legal ise d the ut ilisa tion of p ositi ve dat a in the credi t risk a ss ess ment pr oce ss , and wh ich will great ly wide n acce ss to cr edit . We have al so made go o d pro gres s towar ds ex pandin g our geo gr aphic f ootp rint in L at in Ame ri ca wi th burea u acquisit ions in Chil e and mor e re cently an agreement in Panama. ES G is integral to w hat we do We pla ce a st ron g emphas is on our Enviro nmental , So cial and G over nance (E SG) resp onsib iliti es . Doin g the r ight thin g for soci et y, our cli ents , cons umer s, col league s andcom munitie s is som ething w e are pro ud of, and we bel ieve this dir ec tly co ntrib utes to our g row th. Improvin g financial health is f undament al to our busin es s, an d the are a wher e we pl ay the bigg es t rol e. W ith o ur foc us on emp owe rin g consum ers to imp rove t heir financial l ive s, we help p eo ple gain ac ces s to cre dit, s afe guard their identify, save money , rene gotiate debts and improve th eir financial knowle dge. E xp erian B oo st in th e USA and U K help s pe ople b uild cre dit pr ofile s that paint a f ulle r pic ture of th eir financial li ves . E xp erian G o is anoth er step o n this jour ney. Each yea r we al so inves t in new s ocial inn ovati on pr oduc t s, w hich have now r each ed 82 mill ion p eop le since 201 3 , in line w ith our s ta ted ta rget of r eac hing 1 0 0 millio n pe ople by 2025. We have co ntinue d our commi tment to p ar tn er wit h chariti es thro ugh our Unit ed for F inancial H ealth progr amme to pr ovide financial ed ucation andre sour ces . We have built many par tners hips to prov idetar gete d financial e ducat ion fo r microentrepreneurs in Brazil, young people inthe UK and Irel and, and di verse c ommunitie s in the US A – includin g a Y o u T ub e se rie s hos te d by Grammy Awar d-w inning re cor ding ar ti st Le crae t hat rea che d over 1 0 millio n pe ople . Th e United f or Financial H ealth pr ogr amme isnow b eing imple mente d acro ss multip le regi ons , and conn ec ting wi th cons umer s acro ss the glo be. We have commit te d to be come c ar bon n eutr al in our own o per atio ns by 2030¹ , an d have cut our Sc ope 1 an d 2 market-b ase d emissi ons by4 4 % since 201 9 , mak ing signi fica nt pro gre ss towar ds our 50% s cienc e -ba se d tar get . We are engagin g wi th supp lier s to re duce o ur Sco pe 3 emissi ons , and ear ned a p lac e on the 2021 CDP Supplier Engagement Leaderboar d after obta ining an‘ A’Supplier E ngag ement Ra ting. Mov ing for wards we w ill be w ork ing on o ur NetZer o T ransi tion P lan ove r the ne xt y ear tohelp u s move to wards a n et zer o targ et . People and culture In F Y22, we r efr eshe d our p eo ple s trate gy to ensure t hat we are ab le to mee t our ambit ion of bein g rec ognis ed as on e of the ’25 grea tes t pla ces to w ork in t he wor ld ’ and to ens ure wehave a s trate gy tha t enable s us to at tr act , reta in and dev elop the b es t tal ent with in ahigh- pe r for mance , inclusiv e and car ing culture. We take pr ide in o ur str ong ‘p eop le firs t’ culture . This is cr iti cal fo r us to pre ser ve andenhanc e as we deve lop new way s of wor king p ost-p andemi c. T he CO VID - 1 9 pand emic create d an unpr ece dente d set of circums tanc es tha t have under sco re d just howcr itic al st aying c onne cte d with o ur colle ague s is to our su cce ss . Th erefo re, w e were d elighte d to be c er ti fie d as a Gre at Pl ace to Work in 20 of ou r countr ie s includin g our lar ges t mar kets of t he USA , B razil an d the UK . We have develop ed a s tro ng empl oyer br and with a p hiloso phy fo cus ed on di ver sit y, equit y and inclusi on – es sent ial to our pur po se of creating a better tomorrow, together . Members of our Gro up Op era ting C ommit te e take owne rship of this a gen da by spon sor ing fi ve key area s of foc us: gen der , L GBT Q+, ethnici t y , disabil it y and me ntal healt h. We reco gnise th e global c ompet ition f or tale nt so our s tra teg y is focu sed o n high- d emand technical sk ill s in crucial mar kets . We hoste d the first-ever Global Care ers Week, which over a third of o ur employ ee s at tend ed, an d we launch ed an inter nal C aree r Hub – so tha t our employ ee s can have a cce ss to t he re so urce s to continually d evelop an d lear n. We have create d a global inter nal tale nt po ol for cr itic al techno logy sk ill s, as w ell as ex pandin g our hirin g in early c are ers to d evelo p young , diver se t alent thr ough t he or ganisati on. A s an organis ation , we are awar e that our lead ers ampl if y o ur ambitio n, cult ure, and value s. In 2022, t wo - thirds of n ew top - 1 0 0 lead ers w ere p rom oted f rom w ithin , wi th there mainder hir ed ex ter nally. We are proud that t wo of our b igg es t role s (Chief Op er ating O cer an d CEO, Nor th Am eri ca) have b een filled b y internal t alent , and that t wo of o ur regi ons , Nor t h Am eric a and EM E A / A sia Pa cific , are now l ed by wo men . Governance and the Board Stron g cor po rat e gover nanc e has alway s be en at the h ear t of th e E xpe rian bu sines s, an d we maintain th e highe st s tandar ds as se t out in the UK C or por ate G over nance C od e 201 8. Dur ing F Y22, Ke rr y William s noti fie d the Comp any of his intention to r etire a s Chief Ope rat ing O ce r (COO) and a s an execu tive direc tor of th e Comp any af ter 1 9 years a t E xpe rian . Kerr y has play ed a pi votal r ole in takin g E xp erian to th e str ong p ositi on we are intoday. We thank Kerr y fo r his out s tandin g contr ibut ion to E xp er ian and wish him w ell for his retirement. Crai g Boun dy su cce eds Ker r y W ill iams. C raig has suc ces sf ully le d E xp erian's Nor th A me ric a regi on for e ight year s, hav ing join ed E x per ian in Novemb er 201 1 to lea d the UK an d Irel and regi on, an d ope rate d in a var iet y of le ading managem ent po sition s. Cr aig as sume d the posi tion of C OO on 1 A pr il 2022 and wil l join th e Boar d as an exe cuti ve dire cto r of the Co mpany fro m the con clusion of th e Comp any's Annual Gen eral M eet ing on 21 July 2022, wh en Ker r y will s tep dow n fro m the B oar d. T o en sure a smoot h succ es sion pro ce ss , Kerr y will remain with E x pe rian thr ough to 31 March 2023. T wo of o ur inde pen dent no n- e xecut ive direc tor s, D eirdr e Mahlan and G eo rge Ros e, will al so r etire f rom t he Bo ard at th e conclu sion of the 2022 AG M, havin g comple ted nine year s’ ser vice on t he E xp erian B oar d. Wewould like to t hank Deir dre and G eo rge forth eir signifi cant co ntrib utio ns to E xp erian since jo ining the B oar d in 201 2 . I’m please d to share th at Jonat han Howel l will be app ointe d to succ ee d Deir dre as Chair of t he Audit C ommit te e fro m 1 July 2022 and Al ison Bri t tain wil l be app ointe d to succ ee d Ge org e as Senio r Indep end ent Dire cto r and Chair of th e Remuner ati on Co mmit tee f rom th e con clusion of the 2022 AGM . Bot h Jonathan an d Alis on are exis ting in depe ndent n on -e xecu tive dir ec tor s. Our per for mance and looking ahead Our financial p er f orman ce this ye ar was ver y str ong . We deliv ere d + 1 2% organi c reve nue grow th , + 21 % gr ow th in B enchmar k EP S, andahisto ric hi gh cash flo w conver sion of 1 09% f or th e Group . Our s tron g per for mance istes tament to t he tr ansf orma tion we ar e under taking in C ons umer S er v ice s, as we become a more comprehensive provider ofser vice s to cons umer s, and o ur emphasis on pro vidin g new dat ase ts an d innova tive solu tions f or our B usines s-to - Busin es s client s . We look for ward fr om a po sition of s tre ngth , but al so min df ul of the incr easingly un cer tain geopolitical environment. Regardless of the challeng es ahe ad, we b elie ve that our cle ar pur pos e, gre at tale nt and st rong c ulture , combined with con tinued investment i n super ior da ta and te chnolo gy as se ts , will enable us to d eliv er for al l our st akehol der s. 1 A ll r ef ere nc e s in th is A nnu al Re po r t to ‘c ar bo n ne ut r al in ouro wn o p er at ion s by 2 03 0’ in cl ud es a ll S co pe 1 a nd 2 emi ss io ns , pl us w it hin S co pe 3 t he c a te gor i es o f ‘P ur cha se d Go o ds an d Se r v ic es’, ‘B us in es s Trave l ’ an d ‘Fu el -an d - en er gy re la te d ac ti vi ti e s’ (wh ich r ep re s ent 8 3% o f our b as e lin e emi ss io ns in S co p e 3). Th is i s ali gn ed w it h th e em is sio ns co ver e d by o ur s cie nc e -b as e d tar g et ap pr ov ed b y th e S cie nc e Ba se d Targe t ini ti at iv e (SB T i). Re fe r to p ag es 6 4 -7 1 fo r f ur t he r information. 7 Experian plc Annual Report 2022 Strategic repor t Chief Execu tive ’ s review We h ad a ver y good year as we progress our mi ssion to bring fina ncial power t o all. We are ex ecuting well ag ainst our long-te rm plans, sustained by our i nvestments in inno vation and tec hnology , and suppor ted by our dedica ted employ ees . We strongl y believe in doing the rig ht thi ng, developi ng product s and social i nnovati ons that help mak ea positive die rence to people ’ s lives . We ap ply our exper tise and capabilit ies to mak e it easier , cheaper a nd faster for people and orga nisat ions to access fina ncia l ser vices. T his i s more impor tant no w than ever . Brian Cassi n Chief Executive O cer E xpe rian mad e signific ant pr ogre ss this y ear . We adva nce d str ate gical ly acro ss multip le front s and our financial p er for mance was strong. This reflect s eective execution agains tour long -ter m pl ans, s ust ained b y the inves tme nts w e have made in n ew pro duc t s, inour techn olog y pla tf or ms and in ne w busine ss de velopm ent opp or t unitie s. Iamprou d of the ac comp lishment s of our20,60 0 pe ople ar ound th e wor ld. T ot al reve nue grow t h was 1 7% at co nst ant curr enc y, while organic ally we gr ew 1 2%. Wehave made mater ial pro gre ss towar ds posi tionin g E xpe rian as a majo r bran d to hel p pe ople w ith the ir financial healt h, rea ching 1 34mil lion f re e memb ers a cros s our thr ee lar ges t market s . We are help ing to dem ocr atise credi t, makin g it simpler , fas ter and cheap er forp eop le and bu sines se s to achie ve go od outco me s. Ou r pro duc ts f orm p ar t of th e crit ical infras tru ctur e of financial ser v ices , health , autom otive an d many other in dust rie s, an d our grow th o ppo r tunit ies ar e dri ven by inve stm ent s to upgr ade inf ras tr uc ture , digitis e plat fo rms , provide better exper iences to customers andpro tec t agains t fr aud. We are al s o taking adv antag e of a unique mar ket opp or t unit y inBrazil , as w ell as su cce ss fully e nterin g newmar ket se gment s , such as in com e andemploy ment ver ifi catio n. a T otal r evenu e grow t h was 1 7% at b oth const ant and ac tual exchange r ates . Atcons tant cur ren cy or ganic re venue grow th w as 1 2%. a Organic r evenu e grow th in N or th A mer ic a was 1 3% , 1 7% in Lat in Am eri ca and 1 1 % inUK and Ire land , includin g ver y s tro ng contributions from Consumer Ser vices acro ss all thr ee r egio ns. a EME A / A sia Pa cific d eli vere d 3% or ganic reve nue grow th w ith a p ositi ve EBI T margin traj ec tor y, refle ctin g our shif t to focus o n strat egi c ma rke ts. a B2B organic re venue gr ow th was 9% , refl ec ting s tre ngt h in data vo lumes , upt ake of new dat a sour ces , f ur the r adop tion of ourinnov ativ e pla tf or ms, p rogr es s acro ss fr aud and i dentit y mana gem ent ser vice s and ex pansio n in new ve r tic al se gment s . a We made signifi cant pr ogr ess in C ons umer Ser vice s, w ith or ganic re venue up 22% , reflec ting membership grow th and expanded consumer propositions. a Grow th in B enchmar k EB IT wa s 1 9% at bothc ons tant and a ctual e xchange ra tes . a Our Be nchmark E BI T margin was 26. 2%, up60 basis p oint s at co nst ant cur renc y and up 40 ba sis point s at ac tual exchan ge rate s. a We delive red gr ow th in B enchmar k ear nings per shar e of 21 % at b oth co nst ant and ac tual exchange rate s. a Cash fl ow was ve r y s tron g, w ith a conver sion r ate of Be nchmark E BI T into Ben chmark op er ating c ash flow of 1 09%. Ben chmark op er ating c ash flow w as US$ 1 . 8bn, up 22% a t ac tual exchang e rate s. a We ende d the ye ar wit h a lever ag e rat io of1 .9x, comp are d to our tar get of 2.0 -2.5x forNe t debt to B enchmar k EBI T DA . B2B organic r evenu e grow th wa s 9%: a In Data , volum es wer e gen eral ly st rong . Thisr efle cte d ec onomi c reb ound a cros s mos t geo gr aphie s, cli ent take - up of our ex tensi ve data as se ts an d succ es sf ul ex tension into n ew client s egm ents . Newpr oduc t s and ver tical dev elopm ent wereal s o meanin gful c ontr ibutor s to our per formance. Ascend delivered strong grow th . We als o be nefi tte d fr om the up take of posi tive da ta at tr ibute s and s cor es in Bra zil, an d we ad ded to o ur data c over age inincom e and emp loym ent data an d signe d over 1 00 cl ient cont ra ct s forE x pe rian Veri f y in Nor th Ame ric a. Full -year financial highlights Str ong performance driven by our mission to bring financial power to all Revenue US$ 6.3 bn +12 % ² Benc hma rk EPS US c 12 4 . 5 +2 1%³ Benc hm ark E BIT ¹ US$ 1. 6 bn +19 %¹ Highlights 202 2 1 Fro m on go ing a c ti vi ti es , at c on s tan t exc ha ng e ra te s. 2 Or gan ic r ev enu e gr ow t h at c on st an t exc han ge r at es . 3 At constant exch ange rates. Experian plc Strategic r eport 8 Revenue and Ben chmark EBI T by region , Benchmar k EBI T margin 2022 US$m 2021¹ US$m Total growth % Organic growth % Revenue North America 4,122 3,530 17 13 Latin America 791 625 25 17 UK and Ireland 847 737 11 11 EMEA/Asia Pacific 507 450 13 3 Ongoing activities 6,267 5,342 17 12 Exited business activities 21 30 n/a Total 6,288 5,372 16 Benchmark EBIT North America 1,381 1,201 15 Latin America 223 172 27 UK and Ireland 188 123 51 EMEA/Asia Pacific – (27) 122 Total operating segments 1,792 1,469 22 Central Activities – central corporate costs (152) (90) n/a Benchmark EBIT from ongoing activities 1,640 1,379 19 Exited business activities 5 7 n/a Total Benchmark EBIT 1,645 1,386 19 Benchmark EBIT margin – ongoing activities 26.2% 25.8% 1 Re su lt s fo r F Y21 a re r e -p r es en te d for t he r e cl as si fic at io n to ex it ed b us in es s ac t iv it ie s of c er t ai n B2B b usi ne s se s . Total gr ow t h an d or gan ic g ro w th p er ce nta g es a re at c on s ta nt ex cha ng e ra te s. Se e th e Fi nan ci al re vi ew f or a nal ys is of r ev en ue , Be nc hma rk E BI T a nd B en ch mar k EB I T mar gi n by b usi ne s s se gm ent a nd n ot e 6 toth e Gr ou p fina nc ial s ta te me nt s . a In Decisi oning , we se cure d new w ins for ourc loud- enabled deci sioning platforms. Weals o made signi fic ant pro gre ss acr oss fr aud and i dentit y management , as wel l as acros s analy tics . a Vertic al market s al so contr ibute d str ongly. InHealt h, he althc are pr ovi der s in the US A areinve stin g to improv e digita l consum er exp eri ence s, an d we del iver ed s tro ng pro gres s acr oss al l major pr oduc t lin es inoursuite . This in clude d som e ben efit fro mone - o C OVI D - 1 9 r ela ted s er v ice s. Autom otiv e deli vere d a so lid p er f orman ce refle c ting mar ket reb ound an d a str ong contr ibu tion f rom re cent inn ovat ions . Y ear-on-year % chan ge in organic revenue ¹ – for the year ende d 3 1 March 2022 % of Group revenue² Data Decisioning B2B³ Consumer Services Total North America 65 9 13 10 21 13 Latin America 13 12 21 14 40 17 UK and Ireland 14 9 7 81 9 11 EMEA/Asia Pacific 8 4 1 3 n/a 3 Total Global 100 91 1 92 2 12 1 At c on s tan t exc ha ng e ra te s. 2 P er cen ta ge o f Gr ou p re ven ue f r om on go in g ac ti v it ie s ca lc ula te d ba se d o n F Y2 2 re ven ue a t ac t ual e xch ang e r ate s . 3 B usi ne ss -t o -B us in es s (B 2B) s eg me nt , con si st in g of Da ta a nd D e cis io nin g bu sin e ss s ub - di vi si on s. Con sumer S er v ice s organic r evenue gr ow th was 22%: a We now have 1 3 4 millio n fre e con sumer memb ership s acros s our thr ee l arg es t markets, up by 2 4 million year - on -year . Dur ing th e year we a dde d 1 1 millio n fre e memb ers in t he USA , 1 2 millio n in Bra zil and1 .5 millio n in the UK . a All re gions d eli vere d st rong gr ow th enab led by incre ase d memb erships , sc aling of o ur credi t marketp lac es, an d the a dditio n of newpr op ositio ns to our e cos ys tem to hel p our memb er s save m oney. a We are inves ting in n ew ver t ical s su ch asinsur ance to f ur th er ex tend o ur Nor th Americ a insurance marketplace oer forour m emb ers , hel ping to br ing t hem abet ter in sura nce cu stom er ex per ien ce. Environme ntal, S ocial and Governance (E SG) highlights a We launch ed E xp er ian Go in th e USA in Januar y, which allows cre dit invisib les to star t building a cr edit pr ofile in minute s. Since l aunch, 4 0,00 0 cons umer s have conne c ted to E xp er ian Go. We wer e als o deli ghted to b e rec ognis ed as a 2022 B IG Innovat ion Award winn er for de live ring innovative products that help consumers thrive finan cially . a We reach ed 21 millio n pe ople t hrou gh our so cial innovat ion pr oduc t s this year , our pro gramm e to deli ver so cietal b ene fit s and improv e financial healt h, br inging t he total to82 millio n since 201 3. T his compar es to our tar get of 100 million p eop le by 2025. a Our fla gship Unite d for F inancial Healt h pro gramm e (UFH) has n ow conne c ted wi th 87 million p eo ple and is o n tra ck to me et ourtar get of 1 00 mill ion by 2024. T hrou gh par t ner ships wi th NG Os acr oss o ur re gions , it pro vide s financial e duca tion to emp ower vuln erabl e co mmu nities. a We prid e ours elve s in our ‘p eop le firs t’ cultur e and wer e deli ghted in sur veys that 88% of our em ploye es b eli eve that E x pe rian is commit te d to creat ing a dive rs e, equi table and inclusi ve (DE I) culture . Curr ently 33% of our Se nior Le ader s are f emale, r epre sent ing fur ther pr ogr es s toward s our tar get of 4 0% by F Y24. Ou r Nor t h Am eri ca and E ME A / A sia Pacific regions (together representing 73 % of Group r evenu es) are le d by wom en, and 36% of our Board ar e female . a Our commi tment to w ork ing wi th integr it y include s our app roa ch to tax . T o enhance our tr ansparen cy, we are publishin g a T axRep or t in June 2022, exp lainin g our appro ach to ta x and pr ovi ding mo re infor matio n on our t ax co ntr ibuti on. a We are pleas ed to b e rec ognis ed as on e ofthe Finan cial T imes’ Europ e Clima te Lea der s 2022 for o ur eor ts in r educin g ourcar bo n emissi ons . As p ar t of our j ourn ey to be c arb on ne utr al by 2030 in o ur own ope rati ons , we have re duce d our S cop e 1 and 2 emis sions b y 44% since our ba se yea r 201 9 . We’ re en gagin g with o ur supp lier s inord er to redu ce our S cop e 3 emis sions . Wewere al so p rou d to be nam ed by C DP asa 2021 Suppli er Enga gem ent Le ade r . Weare now pr ogr es sing wi th our pl anning toward o ur Net Zer o transi tion . 9 Experian plc Annual Report 2022 Strategic repor t Chief Execu tive ’ s review contin ued a We investe d US$781 m thr ough a cquisit ions and US$32m of inve stm ent s in supp or t of our st rate gic init iativ es . Th es e inves tment s include d: b The a cquisiti ons of Empte ch and th e tra deand a ss ets of T ax Cr edit C o. , as par tof t he ex pansio n of our inc ome ver ific atio n busine ss in N or t h Ame ri ca. Af ter th e per io d end, we al s o comple ted the ac quisitio n of CIC Plu s. b The a cquisiti on of Gabi , to ex tend o ur Nor th Amer ic a insur ance mar ketp lac e. b In Lat in Ame ric a, we a cquire d Hol ding Veloz Invest imentos e P ar ti cipaç õe s S. A . (Pagu eV eloz), a digit al pay ment s Fin T e ch in Bra zil which w ill fo rm p ar t of our o nline debt resolution proposition, Limpa Nome. We acquire d a major it y s take in Sinac ofi Buró, a l eadin g credi t bure au in Chile , and we have al so sign ed an agr eem ent to acquir e a major it y s take in AP C B uró in Panama. A f ter the p er iod e nd, we sign ed an agre eme nt to acquir e a major it y st ake in MOVA Socie dade de E mpré st imo entr e Pes so as S. A . (M OV A ), a leading cr edi t techno logy F in T e ch in Br azil. a We are announcin g a sec ond inter im divi dend of 35 .7 5 US cent s p er share, up1 0% . This w ill be p aid on 22 J uly 2022 toshareho lder s on th e regis ter at t he closeofb usine ss on 24 June 2022. a We have complete d our F Y22 shar e repur chas e pro gramm e for a ne t cash consi der atio n of US$ 1 49m, which o s et s deli ver ies und er emplo yee shar e plans . Wehave als o announ ced t hat we will comme nce a ne t US$ 1 75m share repur chas e pro gramm e in F Y23, w hich willa gain mainly os et del ive rie s unde r employee share p lans. a Dur ing th e year we r ed eem ed o ur £400m 3.50% Euron otes du e Oc tob er 2021 . We under took a b ond is sue tot allin g €500 m (US$555m) in Febr uar y 2022. O ur bo nds , netof de ri vati ves , total led US$ 3. 9b n as at31March 2022 and had an aver ag e remaining ten or of six yea rs . Undraw n commit te d bank b orr owing f acili ties wereUS$2.6b n as at 31 March 2022 (2021 : US$2.7bn). a As at 31 March 2022, N et debt to B enchmar k EBI TD A was 1 . 9 x , compar ed to ou r targ et lever ag e ran ge of 2.0 - 2.5x. Fo llow ing change s in market a dopti on of IFRS 1 6 ‘Le ase s’ our defini tion of N et debt ha s be en update d to includ e leas e obl igatio ns . a On 1 9 Januar y 2022, E x per ian’ s Boar d announc ed th e appo intment of C raig B ound y as Chief O per atin g O cer an d Jennif er Schul z as CEO, N or t h Am eri ca, b oth f rom 1Apr il 2022. We al so anno unce d that Kerr yWill iams would r etire f rom o ur Boar dat th e conclusi on of the A nnual Gen eral M ee ting on21 July 2022 and thatCr aig woul d be app ointe d to our Boar dat that t ime. We thank Ker r y f or hisout st anding c ontr ibutio n to E xpe rian andwish him we ll for his r etire ment . a T wo of ou r indep end ent no n- exe cuti ve direc tor s, D eirdr e Mahlan and G eo rge Ros e, will al so r etire f rom o ur Bo ard at th e conclu sion of th e Annual G ener al Me eting on21 July 2022, having co mplete d nine year s’ ser v ice on t he E xp er ian Boar d. Wewish to thank De irdre an d Ge org e forth eir signifi cant co ntrib utio ns to E xpe riansinc e joining o ur Bo ard in 201 2. a The E x per ian Bo ard anno unce s that Jonathan H owell ha s be en appo inted tosucc ee d Deir dre as C hair of the Au dit Commi t tee fr om 1 July 2022 and t hat Alis onBr it tain has b ee n appointe d to succ ee d Geo rge a s Senio r Indep end ent Dire cto r andChair of th e Remun erat ion Commi t tee fr om the c onclusi on of the Annual G ener al Me etin g on 21 July 2022. Both J onathan an dAlis on are ex istin g independent non-executive directors. People Capital allo cation and liquidity a Cash g ener ati on was ve r y st ron g, and w e ende d th e year wi th lev era ge of 1 . 9 x ne t debt/B enchmar k EBIT DA . a Benc hmark op er ating c ash flow wa s US$ 1 . 8bn, up 22% a t ac tual exchang e rate s. a We continue d to inves t in data , techno log y and new p ro duc ts t hrou gh capi tal exp endi ture , which r epre se nted 8% of tot al revenu e. We plan to s ust ain str ong lev el s of inves tme nt to supp or t o ur grow th , and fo r F Y23 we e xpe c t capi tal ex pe ndit ure to repr es ent circ a 9% of total re venue . Other financial developments Ben chmark P BT wa s US$ 1 ,5 35m, up 22% atcons tant c urre nc y and 21 % a t act ual rate s, af te r lower B enchmar k net inter est exp ens e of US$ 1 10m (202 1 : US$1 21 m). Ben chmark ne tfinance co st s decr eas ed byUS$1 1 m, r efle ctin g a re duc tion in ou r avera ge f unding co st fr om deb t refinancin g. ForF Y23, w e exp ec t net inter es t exp ens e tobe aro und US$1 20 - 1 25m . Th e Ben chmark t ax r ate was 25.7% (2021 :25.9% ). For F Y23, we e xpe c t a rateofar ound 26%, taking into ac count exp ec ted p rofi t mix fo r the ye ar . Our B enchmar k EP S was 1 24.5 US cent s , anincre ase of 21 % at bo th cons tant an d ac tual exchange r ates . Th e weighte d avera ge numbe r of ordinar y shar es (WAN OS) increa se d to 91 4m (2021 : 91 0m), follo wing is suance in t he pr evio us year . ForF Y23, w e exp ec t WANOS of circ a 91 4m . Ben chmark op er ating c ash flow in creas ed by 22% at ac tual r ates to US$1 .8b n and our cash flo w conve rsio n was 1 09% (2021 : 1 06%) . Th e increa se is due to th e mix of grow th , st rong c ontro l of wor king c api tal and so me phasin g. Foreign ex change translation was neutral toBen chmark EP S in th e year . Fo r F Y23, weexp ec t a circ a - 1 % imp ac t on rev enue, flat o n Benc hmark EB IT an d circa +4 0 basis point s on B enchmar k EBI T margin , assumi ng recent fore ign exc hange rate spre vail . Since 31 March 2022, we have co mplete d three acquisitions for cash consideration ofUS$221 m , and signe d an agr eem ent for one f ur th er acquisi tion f or US$8m t hat is subjec t to re gulator y approval . Outlook For the y ear ahea d, we ex pe c t organic reve nue grow t h in the ra nge of 7-9%, with modest margin improvement at constant excha nge rates, suppor ted by continu ing inves tme nt behin d the exe cut ion of our str ateg y. While we are clos ely moni torin g the glob al macro eco nomic tr ends , we are confid ent in our s tro ng tr ack re cor d of robust and resilien t per formance through the economic cycle. Experian plc Strategic r eport 10 Regional highlights fo r the year ended 31 March 2 022 We deli vere d signifi cant pr ogr es s in Nor t h Am eri ca. Re venue w as US$ 4, 1 22m , with to tal revenu e grow th of 1 7% an d organic r evenue grow th of 1 3%. Th e acquisi tion co ntrib utio n include s T apa d, wh ich ex tend s our po sitio n in digita l marketin g ser vice s, t he inve stm ent s we have made in Ver ific ation S er v ice s (Cor po rate Cos t Co ntrol , Emp tech , T ax Cr edi t Co.), as we ll as the a cquisiti on of Gabi , which a dds to o ur insurance ca pability within Consumer Services. Organi c reve nue grow t h acros s B2B was 1 0%. This w as dri ven by v olume s tren gth , new pro duc t ado ptio n, su cce ss ful e ntr y into in come and employment verification, expansion into new cli ent se gment s and s tron g execu tion across Health and Automotive. Acros s financial ser vices , market dy namics have be en fav ourab le, wi th ong oing inve st ment by our cli ent s to driv e their di gital tran sfo rmat ions as w ell as in ne w cus tomer acquisit ion and cr edit un der w rit ing. T his gave ris e to str ong d emand fo r our innov atio n- led prop osi tions an d for E x per ian data . Bur eau data vo lume s were s tr ong a cros s mor e tra ditio nal datas et s and acr oss o ur alterna tive data as s et s, p ar ti cular ly dat a whi ch supp or ts short-term lendi ng. Ascend expansion ha s again be en ac creti ve to gro w th as we a dd new modul es and e xte nd our re ach wi thin exis ting client s. We al so ma de go od pr ogre ss a cros s our decisioning suite, d riven by Power Cur ve deli ver ies , inclu ding suc ces sf ul ex pansio n into the mid -mar ket. A ddit ionally, we saw grow th acros s fr aud an d identi t y managem ent and analy tic s. We cont inue to incre ase p enet rati on acro ss new cl ient s egme nts , inclu ding for example t he financial pl at for ms of lea ding Organic revenue growth % 2022 2021 2020 201 9 201 8 6 10 11 7 13 We deliv ere d organic r evenu e grow th a cros s all re gions , wi th par t icul ar str eng th in Nor th Ame ric a, L atin A mer ica an d UK and Ire land while EM E A / A sia Pa cific r etur ned to gr ow th . techno logy p rov ider s and in the B uy No w PayL ater s egm ent. T he se f ac tor s os et contr ac tion in m or tga ge volum es du e to lower cons umer re - financing a ct ivi t y. W e exp ec t mor tgage to again b e a he adw ind in F Y 23, ofc. 1.5 % to Gro up organic r evenu e grow th . We are making go od p rogr es s towar ds buildin g our pre se nce in em ploy ment and incom e ver ific ation s er vice s. O ur acquisit ions have over all exce ed ed our b uy pl an exp ec tati ons and w e have grown o ur market posi tion thr ough n ew clie nt wins . We have signe d over 1 00 cli ent contr ac t s for E xp er ian Verif y. We also c ontinue to inv es t in growin g the numb er of employ ment r eco rds we hav e acc es s to, whic h rea ched 42 mill ion by th e yearend. In Health , our s trate gy is to p rov ide our cl ient s with a cce ss to a b roa d set of c apab ilit ies to help them address administrative complexit y and deli ver more tr ansparent financial outc ome s for p atient s . Th ere w as st ron g demand for propositions whi ch dri ve digit al patient interactions, for identity management and for p rop osit ions w hich pr ovid e pay ment cer t aint y, so me of whi ch include d a contribution from COVID- 1 9 linked activit y . T argeting delivered good grow th helped by market r ecov er y an d organic e xpans ion of our pro duc t cap abili tie s acro ss digi tal ac ti vatio n, identit y mana geme nt and analy tic s. Autom otiv e als o per for med w ell , ben efit tin g fro m market r ecov er y as w ell as co ntinue d exp ansion of o ur pro duc t po r t fol io, inclu ding our E xp er ian Marketin g Engin e prop osi tion , a tur nkey pr opo siti on that h elps o ur auto moti ve clients identif y prospecti ve customers. In Con sumer S er v ice s, w e continue to e xpan d our ecosystem of consumer product s. Free memb ership s reach ed 52 millio n, up by 1 1million year - on-year . It was our fastest growin g se gment in N or t h Ame ric a, d eli ver ing organic r evenu e grow th of 21 %. T his refle c ted fre e memb er ship grow th , upse ll into our premium credit and identity oers , strength acros s our cr edit mar ketpl ace an d str ength inpar tn er so lutio ns. We are inv es ting in th e development of our insurance marketplace and are exci ted by th e pote ntial ahea d to brin g a better insurance customer exper ience to our memb ers . This f or ms par t of our plan to increa se th e depth of t he re lati onships we hav e with o ur memb ers , dri ve enga gem ent, an d find new way s to hel p our memb er s save m one y . We are als o tak ing ad ditional s teps to en rich our pr emium memb ership s er vice s, fo r example through the introduction of new pri vac y fe atur es to enhan ce our id entit y managem ent o er , as we ll as se r vi ces to helpo ur memb ers n ego tiate lower r ates oninter net , wire les s, c able and h ome se curi t ybill s . Free m emb er ships up 1 1 mil lio n inNor th Am eri ca , now r eac hing 52m 10 0 + new c ontr ac t s for E x per ian Ver if y We are making go od p rogr es s toward s buildin g our pr es ence inemploy ment and in come verificat ion se r vices. Nor th America Th e str engt h of our rev enue p er for manc e acros s Nor th Ame ric a tran slate d into Ben chmark E BIT up 1 5% to US$ 1,381 m . Ben chmark EB IT mar gin was 33 .5%, down 50basis p oint s . This r efle cte d our inve st ment s in Verifi cati on Se r v ice s, in th e insur ance marketplace in Consumer Ser vices and the changing mi x of our busin ess du e to the high er grow th of C onsum er Ser vice s compar ed to our B2B ac tiv itie s. T he r educ ed co ntrib utio n fro m mor t gage en quirie s al so o se t margin accr etion in t he re st of B2B . Scan me Watch this video to learn more about our employment and income verification services 11 Experian plc Annual Report 2022 Strategic repor t Organic revenu e growth % 2022 2021 2020 201 9 201 8 0 4 (2) (6) 11 Chief Execu tive ’ s review contin ued Pro gre ss in th e UK and Ire land ha s be en ver yg oo d. We are su cce ss fully e xecu ting ou r transfor mation programme and delivered amater ial upli f t in pro fita bilit y. Revenu e was US$8 4 7 m and b oth total an d organi c revenu e increa se d 1 1 % at c ons tant exchang e rate s. Weare now tur ning o ur at tenti on to po sitionin g the bu sines s for su stain ed lon g- term gr ow th thro ugh a defin ed s et of grow t h initiati ve s. B2B organic r evenu e grow t h was 8%. Volume grow th w as st rong r efle ct ing new cr edi t prosp ec tin g and loan or iginat ion ac tiv it y by o ur client s . Our new b usine ss p er fo rmanc e was ve r y str ong, an d we gaine d client man dates f rom acro ss a wi de spe ct rum , includin g in tra diti onal bankin g, Fin T e ch, Bu y Now Pay L ate r and insura nce. C lient s re co gnise the s uper ior it y of our dat a ass et s, w her e we have pl ace d spe cifi c emphasis on expanding population coverage, aswel l as on enhan cing th e qualit y of o ur data . This increased richnes s has increased credit visibil it y, while at the s ame tim e enhancin g pinning, ma tching and th e per formanc e of our sco res . Wh en coup led w ith our b roa d analy tic al capa bilit ies , this has c ontr ibute d to the s ucce ss we have se en in se cur ing new man dates an d toour impro ved r evenue p er f orman ce. Organi c revenu e grow th in C ons umer Se r vi ces was 1 9 %. O ver th e pas t year we hav e at tr acte d 1 .5 mil lion n ew fr ee m ember s to our p lat fo rm totake th e total to 1 1 milli on in our bi d to hel p ourmem ber s to mas ter their cr edi t and to hel p them to make s aving s. O ur credi t market pla ce has grow n signific antly in s cale, r efle ctin g highe r bran d awaren es s and as we have pr ovid ed unique propositions lik e Ex perian Boos t. This in turn m eans we hav e at tra cte d mor e lend ers to our pl at for m wi th a wid er ran ge of cre dit o er s. We are inves ting to d evelo p new en gaging feat ures to e nrich b oth o ur prem ium and fr ee ser vice s to sus tain grow th into the f utur e. Benchmark EBIT from ongoing activities improv ed con sider ably to US$1 88m , up fro m US$ 1 23m in F Y21 . T he B enchmar k EBI T mar gin fro m ongo ing ac ti vit ies w as 22.2% (2021 : 1 6.7%) . This r efle ct s th e pro gres s wehave ma de throu gh our tr ansf ormat ion pr ogra mme, as well a s the co ntrib uti on fr omrev enue gr ow th . Organic r evenue growth % 2022 2021 2020 201 9 201 8 66 13 9 17 We made a lot of pr ogre ss a cros s L atin Ame ric a exp andin g and div ersi f yin g our por tf olio f rom a p rod uc t, ge ogr aphi c and str ategi c per spe ct ive. We de live red r evenu e ofUS$791 m , wit h organic r evenu e grow th of1 7% and total r evenu e grow th a t cons tant currency of 25 %. Acquisitions cont ributing toour pe r for manc e include d Br Sc an, wh ich ex tende d our p ositi on in fr aud an d identi t y managem ent, Sina cofi , which is a n ew bure au in Chile, an d PagueVeloz, which a dds to o ur Con sumer S er v ice s ac tiv itie s in Br azil . We als o rec ently sign ed an agr eement to a cquire a major it y st ake in a cre dit bur eau in Panama . B2B organic r evenu e grow th w as 1 4%, help ed by ec onom ic re cove r y, new sour ce s of data , expa nsion of o ur pro duc t po r t fol io, gre ater market penetration and diversification into new vertical s. In Bra zil, th e lendin g lan dsc ape is ev olvin g rapi dly fol lowin g the intr odu cti on by th e Cent ral B ank of a ser ies of r egul ator y refor ms to improv e acce ss to cr edi t to both c onsum ers and to small and m edium ente rpr ise s (SME s). This is dr iv ing de mand for o ur supe rio r data ass et s, enhan ced s core s, s ophis tic ated analy tic s, and o ur market-l eading p lat fo rms . Our p ositi ve data p ro duc t por tf olio c ontinue s togrow, we deli vere d new ins tal lati ons of E xpe rian A sc end, C ros sC ore 2.0 and Power C ur ve on E x pe rian On e. We are inve stin g to take ad vant age of ne w opp or t unitie s such asop en data , se cur ing our fir st cl ient win s forour c ateg oris ation -as-a -s er v ice c apabili t y. We have expan de d our po sition in f ra ud and identi t y managem ent, an d we are br oad ening our ex pos ure to th e agr icultur al se c tor , wh ich is a signific ant comp on ent of the Br azilian eco nomy and w her e ther e is an opp or t unit y toenhance th e ecien cy of cr edit allo cati on tothe br oad er agr icultur al comm unit y. Wehave als o taken s teps to wards e st abli shing a pre sen ce in the o pen r ece ivab les mar ket with an a gre ement to a cquire a maj ori t y st ake in MOVA, whi ch help s prov ide any c ompany, including n on -bank s, w ith ex per tise and techno logy to p er f orm da ta- dr ive n credi t ass es sment s of their SME e nd- cl ient s. Spanish L atin Am er ica al so d eliv ere d str ong organic r evenu e grow th . This w as dri ven by volume r ec over y acros s our bur eaux mar ket s, client a dopti on of our n ew pro duc t innov ation s and a ver y stro ng pe r for manc e acros s ourde cisionin g, fr aud pr event ion and analy tic ssuite. Con sumer S er v ice s organic r evenue gr ow th was 4 0%. We at tra cte d 1 2 mill ion mo re cons umer s to our pl at for m this y ear in Br azil to fulfil o n our ambit ion to pr ovid e grea ter acc ess to cr edi t for all , tak ing our to tal fr ee memb ership b ase to 71 million . Our d ebt res olut ion s er v ice (L impa Nom e) continu es to be ver y ee ct ive, a dding m ore p ar tn ers an d help ing mo re indi vidual s to n egot iate on th eir debt s . Newe r prop osit ions su ch as our cr edit marketp la ce are gr owing a t a rapi d pac e. We are at tr ac ting m ore le nder s to our p lat fo rm and matching m ore co nsumer s to car d and loan oe rs . Our pr emium pro posi tion is al s o star ting to sc ale. We have intro duce d new featur es to our p remium oer s, in cluding a‘lock /unlock ’ feat ure whi ch E xpe rian fir st pion eer ed in No r th A mer ic a, and w hich help scons umer s wit h fr aud and i denti t y managem ent. Ben chmark E BIT in L at in Ame ric a was US$223m, up 27% at cons tant exchan ge ra tes . Th e Ben chmark EB IT mar gin fr om ongo ing ac tiv itie s at ac tual exchang e rate s was 28. 2%, up by 70 basis p oint s. P rogr es s refl ec ted revenue acceleration, even as we i nvested indeve lopin g Con sumer S er v ice s. Our p osi tiv e data p ro duc t po r t fo lio contin ues to gr ow. We deli ver ed n ew installations of Exp erian Ascend, Cro ssC or e 2.0 an d Powe r Cur v e on E xp erian O ne . And w e are inve s ting to take a dvant ag e of new o ppo r tuni tie s such a s op en data . Free m emb ers hips up 1 2 mi llio n in Bra zil, n ow re achin g 71 m Latin A merica UK and Ireland Experian plc Strategic r eport 12 Organic revenu e growth % 2022 2021 2020 201 9 201 8 11 14 (3) (14) 3 In EME A / A sia P acifi c, re venue f rom on goin g ac tiv itie s was US$5 07m, with tot al rev enue grow th at c ons tant exchang e rate s of 1 3% and organic r evenu e grow th of 3% . Th e acquisi tion contr ibu tion pr incip ally rel ate s to the contribution from our bureaux acq uisitions, namely th e Risk Managem ent div ision of Ar vato Financial S olu tions ( A FS) in Ger many, and A xe sor in Sp ain. Clie nts r ec ogni se th e sup eri or it y of ourdat a as set s , whe re we ha ve pl ace d spe cifi c emph asis on e xpa nding population coverage, as well as on enhanc ing th e quali t y of our da ta. Thi sincre ase d ri chne ss ha s incr eas ed cre dit v isibil it y, while at t he sa me tim e enhanc ing pinnin g, mat ching an d the per for man ce of o ur sc ore s . Free m emb ers hips up 1.5 million in Unit ed K ing dom , now r eac hing 11 m Our fo cus in EM E A / A sia Pa cific is to conc entr ate our p or t fo lio on s tr ategi c market s wher e we ca n take ad vant age of s cale to dr ive more recurring revenue and more profitable grow th . We continu e to make goo d pro gre ss acro ss ou r lar ger bur eau x, an d as we ta ke adv antag e of the shif t tow ards clo ud- enab led solutions, alternative data propositions and open - bankin g solut ions . We will cont inue to str eamline o ur geo gra phic and op er ational foo tpr int over th e comin g year wh ere we l ack apath to s cale . Our ac tio ns have giv en ri se to an impr oved traje c tor y fo r Ben chmark EB IT, which for ongoing activities was breakeven for the year com par ed t o a los s of US $(27 )m in th e pr ev iou s year . T he B enchmar k EBI T mar gin for on going ac tiv itie s al so impr oved to 0. 0% fro m (6.0)%. We are inve s ting in th e de velo pme nt ofour ins ura nce ma rket pl ace an d areexc ite d by th e pot ential ah ead to br ing a be t ter ins uran ce cus tom er exp er ien ce to ou r memb er s. T his for ms p ar t of o ur pla n to incr eas e thedepth of the relationships we havewi th our m emb er s, dr ive enga gem ent, a nd fin d new wa ys tohel p our m emb ers s ave m on ey. Scan me Watch this testimonial about saving money on auto insurance EMEA / A sia Pacific 13 Experian plc Annual Report 2022 Strategic repor t Our purpose in acti on 9 m Brazil ians help ed to re nego tiate debt s total ling US$5. 9bn US$ 11 bn+ in frau d prevented 40 k credit inv isible s have beco me visible to l ender s throu gh Exp er i an Go 72 m total p oints a dde d to E xpe rian members’ c redit scores th rough Bo ost in the US A 13 4 m free members W e help mi llions of consum er s to sa ve mone y F or consumers Experian plc Strategic r eport 14 W e ’ re putting peo ple i n con tro l of t hei r fin anc ial w ell -being. W e ’ re hel pin g the m access, u nderstand a nd tak e cont rol of the ircred it, so t hey ca n use it t o achi eve t heir fi na nci al goa ls li kebuyi ng a hou se, buyin g a car or se ndi ng a ch ild t o col lege. Along t he way , we ’ re hel pin g people pro tect the msel ves from ide nti ty theft and fraud, sa ve money , negot ia te d ebt and i mprove the ir fi na nci al knowl edge. T oday , mi lli ons of peo ple i n the U SA , Braz il, UK, Indi a, Colomb ia a nd South Afri ca can see t hei r cred it in form ati on onl ine , so the y can an tici pat e, act and plan fo r abette r tomo rrow . Below a re just som e of t he produ cts th at hel pcon sume rs ach ieve t hei r fin anc ia l goals. Helpin g consume rs to es tabl ish their financial iden tit y and move f rom cre dit invisible to scorable. Our Limpa Nome online debt resolutions marketplace enables millions of consumers in B razil to re nego tiate theiroverdu e debt s. Helping millions of consumers i ncrease their cre dit sco re by shar ing utilit y p ayme nt infor mation to their cre dit file. Scan me to find out more Scan me to find out more Scan me to find out more Ex per ian Bo ost Ex per ian Go Limpa N ome 15 Experian plc Annual Report 2022 Strategic repor t We h e l p bu s i nesses u nders ta nd t hei r cus t om er s 19 1 m business credit history records # 15 Cente r for Finan cial Profe ssional s Fintech Lead ers 20 22 23 consumer informatio n bureaux 3.6 bn credit decisions su ppor ted facilitating bi llions of loans 1. 4 bn consumer cre dit histor y records # 11 in IDC Fin T ech Rank ings T op1 00 Our purpose in acti on F or businesses 15 business information bureaux Experian plc Strategic r eport 16 W e help o rga ni sati ons a rou nd the w orld to m ak e faster , sm ar ter dec isi ons. W e do th is by t r an sformi ng da ta in to i nfo rmat ion, and by de ployi ng adva nced t ech nolog ies, platform s and a na lytics th at en abl e them t o lend res p ons ibl y , more fa irly a nd qu ick ly topeo ple and bu sinesses. W e help t hem t o mini mise t he ris k offra ud, del iver a be tter c ust omer e xperi enc e, ide nt ify new bus iness o pportuni ti es, better u nde rstand th ei r ma rke ts and redu ce co sts. Below a re ju st some of th e products t ha t help bus inesses t o ma k e more in formed and bette r deci sio ns. Our r ange of pa tient enga geme nt soluti ons mak es healthcare more accessible, seamless and convenient for patients andme dical s ta. Our component-based decisioning platfor m helps b usines se s to make bet ter custom er decisio ns by dep loying r ich dat a and adv anced analy tics for analy sing cre dit risk , decisio ning, inclu ding marketin g, identity and fraud, and aordability acros sthe full cus tomer li fec ycle. Our pio neer ing comb ination of dat a, technol ogy an d analy tic s helps b usines se s gain power f ul insight to make quick and accurate lending deci sions. Scan me to find out more Scan me to find out more Scan me to find out more Expe rian Asce nd Ex peri an Heal th Po werC urve 17 Experian plc Annual Report 2022 Strategic repor t Our purpose in acti on 87 m people connec ted through ourUnited f or Financial Health pr ogramm e since laun ch i n FY2 1 Name d in For t une’ s 2021 ‘Chan ge the Worl d’ list 2 5 , 000 hours volu nteering US$ 10 m+ investe d in our So cial Innovation Programme reaching 82m people (since F Y1 3) 14 partnerships with NGOs W e b e lieve in finan ci al in clusio n f o ra l l Scan me to find out more F or communities Experian plc Strategic r eport 18 Mi llio ns of peop le aro und th e world a re ex cluded fro m basi c fin anc ial se r vices. It is o ur m issi on t o help peo ple g ain ac cess t o cred it and im prov e the ir fi na nci al wel l-bei ng, ena bli ng fam ili es to t ransform t hei r lives, fr om home buyi ng to he al thca re to educa ti on and e nt repre neu rshi p. Our focu s is on i mpro ving fin anc ial l it eracy an d con fide nce, h elp ing peo ple m an age the ir fin anc ial li ves, an d prev ent ing fraud a nd iden tity the f t. W e do th ist hro ugh o ur co re bus in ess, soci al i nno vat ion produ cts andc omm uni ty in vestmen t – inc lud ing t he Un ited fo r Fin anci al Heal th progra mme w e lau nch ed in F Y2 1 to s upport dive rse communities . Read t he fu ll re po r t on h ow we hav e imp rove d fina nci al li ves th is yea r Imp rov ing F inan cial H eal th Rep or t In Sou th Afr ica we p ar tner ed wi th theNational Small B usines s Chambe r tosuppo r t Small and Me dium -sized Enterpr ise s (SME s) to improve their financial fitness. In Brazil we p ar tne red w ith non -p rofi t Seb rae , to laun ch a fre e online financialedu cation p lat for m to help microentrepreneurs recover from the econ omic sho ck of COV ID - 1 9 . Thr ough thisplat fo rm we have mad e more than 1 6million connections with people since the laun ch in March 2021 . We par tnere d with G rammy Award - w inning reco rding ar tist Le crae to co -cr eate a Y ou T ub e ser ies c alle d ‘Pr otec t The B ag’ bre aking d own the ba sics f or financial health . Pro tec t Th e Bag has reache d over 1 0 mil lion indi vidual s ocial media us ers w ith financial e ducati on and mes sage s of financial ho pe and inclusi on. Scan me to watch Lecrae ’s Protect The Bag Scan me to find out more Scan me to find out more Scan me to find out more Upskilling wo men in te chnology W e wo rked w ith Code F irst Girls in the UK, Italy and South Africa to upskill women in technology thr ough training, coding mentoring and internships. Enhancin g financia l literac y Helping smal l businesses g row 19 Experian plc Annual Report 2022 Strategic repor t Our purpose in acti on W e r e co gnis e n o bo u n d a ri es a n d accept no li mit s t oo u r a m b i t i o n 40 Employee Resource Groups 20 countrie s cer tified Great P la ce T oWor k 99 nationalities represented 4.3 Glassdoo r rat ing 5 generations in the workf orce F or our people Experian plc Strategic r eport 20 The i nno vat ive sol ution s we pro vide to c usto mers a re ma de poss ibl e by ou r people . Glob all y , we empl oy 2 0, 600 of t he bestand brig htest m ind s and w e wan t to be on e of t he best com pan ies in th e world t o work fo r by c reat ing a div erse, equ itabl e and i ncl usiv e workpla ce wher e eve r yone can t hrive and bri ng thei r best selv es to w ork. Our prod ucts, our se r vices and o ur t ime a re used t o ma k e a real d ierenc e to the fi na nci al liv es of peopl e al l ove r th e world a nd we a ll wo rk to wa rds acom mon purpo se, to be a fo rce for g ood. Read more from page 56 The p rogr amme he lps young gr adua tes 'Dis cover the Unex pec te d'. See what our UKgra duates have to s ay abou t their workexper ience at Exp erian. This is a ne w financial edu catio n ser ies to ld by our p eopl e. Silvia r ecount s what i t was like t o establish credit as a college student for the fi rst tim e. We have set a tar get to ensur e 40% of oursen ior lea ders an d 4 7% of our total work for ce are wome n by March 2024. Mee tthe Women in E xp er ian. Scan me to find out more Scan me to find out more Scan me to find out more #E xp eria nStor ies Ex per ian’ s Ea rly C areer s progr amm e Committed to creating a more diverse workforce 21 Experian plc Annual Report 2022 Strategic repor t Stak eholder engagement They need a high- quali t y and ac cura te data , to monito r theirs tat us and id entit y e ec ti vely a acce ss to cr edit an d other s er v ice s a data se cur it y and p ri vac y a prote ct ion fr om fr aud an d iden tit y th ef t How we en gage a Day- to- day e ngag ement t hrou gh our fr ee plat for ms prov iding financial edu cation, to ols , fre eE xp er ian credi t rep or t s onl ine and v ario us other p ro duc ts an d ser vice s a Marketing campaigns and media relations activitie s a Social me dia channel s, such as A sk Ex per ian blog , #Cre ditChat campaign, CreditChatLive events andE xp er ian News , as we ll as wor kin g wit h socialinflue ncers a Consumer advoc ate outreach programmes a Ex pe rian Edu cati on Am bas sa dor emp loye e volunteer ou trea ch a Consumer experience programme s a Cons ume r Cou nci l a Call c entre s ad dres s cus tom er con cer ns on arang e of issu es , from a cce ss to cr edit , to amendin g data on t heir cre dit file , to help ing tosupp or t p eop le who ar e vic tim s of identi t y the f t a T o addr es s data a ccur ac y on cre dit files , we have pro ce ss es fo r cons umer s to rev iew th eir dat a, rais e a quer y an d have cor re ct ions mad e if ne ede d How we r esp on d We help co nsumer s und ers tand an d improv e theircr edit s cor es , and pr otec t the mselv es agains tfr aud thr ough o ur cor e pro duc t s, o ur so cial innovat ion pr oduc t s and our c ommunit y inve st ment progr ammes . We provid e regul ar financial educ ation and guidance thro ugh so cial media channel s, an d hold live v ide o event s w ith indus tr y expe r t s. We als o raise aw arene ss of r elevant is sue s throu gh our marke ting camp aigns and m edia ar ticles . Our colleagues volunteer their time as Education Amb ass ado rs to share k now ledg e thro ugh communit y p rogr amme s, cli ent event s and ot her consum er inter ac tions . We lis ten and re spo nd to cons umer fe edb ack on ou r pro duc ts an d ser vice s. A s trus te d custo dians of dat a for mill ions of cons umer s, we have a r esp onsib ilit y to ke ep cons umer dat a saf e. We ado pt ri goro us po lic es and due dilig ence to e nsure t he se cur it y, priva cy an d accur ac y of co nsumer da ta, an d we st ri ve to be transp arent w ith co nsumer s abo ut the da ta we ho ld. How we a dd v alue We help mill ions of c onsum ers t ake contr ol of th eir finance s and pr otec t their i denti t y . Our cr edit- monito rin g ser vice s help c onsum ers un ders tan d their cr edit s tat us and th eir abilit y toa cce ss cr edit durin g key lif e event s . Our mar ketpl ac es he lp consum er s take cont rol of th eir finance s by findin g credi t and insur anc e oer s that w ill hel p them savem one y . Our d ebt r eso luti on ser vic es he lp consumers negotiate with lenders to secure more-aordable terms. Our am bition is to be viewed as one of the g reatest companies i n the world by all ou r stakeholders. T o achieve thi s, we need to understand the needs of our stak eholders and the most eective way to engage wit h them. Consumers are at the hear t of what we do – they use our produc t s and ser v ices to monito r their financial status, protect thems elves from identit y th ef t , and to shop for credit and insurance oers in our marketplaces. Cr eating value for all stak eholders We have 13 4 m fr ee m emb ers a cro ss th e USA , Bra zil and U K We hel p mill ion s of p eo ple and suppor t 3.6 bn credit de cisions facilitating billionso f loans 11 . 2 m conversations with consumers 174 k fr aud v ic tims sup po r te d Pre vent ed f ra ud of at l eas t US$ 11 bn Experian plc Strategic r eport 22 They need a to enhance t he se r vi ces t hey pr ovi de to the ir cust omer s – t yp ical ly fas ter and f ri cti onle ss digitalinter ac tions a to identi f y the ir cus tomer s and pr event fraudu len tt ransaction s a to meet t heir own c omplian ce and regul ator yrequir ement s a high- quali t y and ac cura te data a data se cur it y and p ri vac y How we en gage a Day-to - day inter ac tion s with S ales , Pro duc t andSupp or t team s a Ongo ing clie nt rela tionship an d Net P romo ter Sco re sur veys, c ustom er loyalt y m onitor ing a Respo nding to cl ient re que st s for inf orma tion a Engagin g with cl ient s thro ugh web inars , adv iso r yb oard s and conf eren ce s Communities need a busine ss suc ce ss , employ ment an d job cre ation a access to pu blic ser vices a long- term a sse t creati on in communi ties a inclusion in mainstr eam financial ser vices andpro duc ts a a healthy env ironm ent to li ve in How we en gage a Communi t y inves tment , chari t y par t ner ships andspo nsor ship a Employee volunte ering a Gif t s in kind an d pro -b on o work a Adv ice and sup por t a Social Innov ation progr amme a United fo r Financial H ealth pro gramm e a Campai gns to rais e awaren es s of topic s rele vant to communiti es How we r esp on d We mon itor our clien ts’ expectations through custo mer-e xpe rie nce pr ogr amme s, and w e use th eir fee dba ck to help u s improv e their e xpe rie nce w ith E xpe rian. We co llab ora te with cl ient s on so lution s totheir ke y challeng es at o ur four D ataL abs ar ound the wo rld , and we pr ovi de re gular op po r tunit ies f or client s to ex plore h ow data an d techno log y can hel p them a ddre ss mar ket tr ends . We use our At hena innovation-management sys tem to i nnovate on emerging customer requirement s. How we a dd v alue We help th ous ands of b usine ss es us e data m ore ee ct ively – e nabling t hem to make fa ster an d smar ter de cisions s o they c an del iver m ore e cient and fr ic tion les s ser vice s to their c usto mer s. We he lp them b y turn ing data f rom many s our ces into us ef ul information. We create p ower f ul analy tic s and s of t war e, so t hey can make mo re -inf orm ed le nding de cision s and prot ec t the mse lves f rom f ra ud. Ev er y y ear , o ur data suppor ts billions of credit decisions, facilitating billions of loans and mi croloa ns for th eir custo mer s, while preventing bi llions in fraud. How we r esp on d Comm unit y inve stm ent has alway s be en centr al to our cor por ate re spo nsibili t y pro gramm e, wit h a str ong focus on initiatives that suppor t financial education and manag ement . Our emp loye es ge t involve d throu gh volunte erin g, and we o er te chnical sup por t for chari ties . By w ork ing wi th NG O par tners an d thro ugh our Uni ted for Finan cial Health p rogr amme , we conn ec t with pe ople acr oss di vers e communi tie s. T his pro gramm e enable s us to dire ct o ur inves tme nt mor e ee ct ively across commun ities. Many of our cor e pro duc t s (e.g. E x per ian Bo os t and E xpe rian G o) and social inn ovat ion pro duc t s (e.g. Limpa N ome) he lp improv e financial li ves , includin g for v ulner able memb er s of soci et y. How we a dd v alue Cent ral to o ur pur pos e is hel ping p eo ple ac ces s credi t and oth er financial se r vi ces tha t they c an use to take contro l of their financial circ umst ances an d improv e their li ves . We al so supp or t lo cal e con omie s thro ugh emp loym ent and p ayin g taxe s. B y h elpin g busine ss es pr osp er , we enhan ce the ir potent ial asloc al employ ers . Clients Our B2B clients are organisations that purchase our data asset s, technolo gy solutions and analy tic s. Our c ommun ities Thos e who live in areas where we oper ate. 82 m people reached through So cialInn ova tio n pro je ct s US$ 15 . 9 m communit y inve st ment 23 consumer and 15 busin es s infor mati onbur eaux 43 countr ies 12 0 k client s globally 2 5, 000 hour s volunte erin g 87 m pe ople c onne c ted th rou gh ourUni ted f or F inancia l Healt h pro gra mme sin ce l aunch inF Y21 23 Experian plc Annual Report 2022 Strategic repor t Stak eholder engagement contin ued ¹ Supplier R elationship Management Our suppliers Thos e who have a di rec t contrac tual relationship with us to supply goods or ser vice s. Our people Ever yone employed by E xp erian. 20,6 0 0 employees 31 key sup pli ers in o ur dedica ted SRM 1 4. 3 Glassdoor rating 99 nationalities represented 40 Employee R esource Groups 1 2,000 data c ontr ibut ors in t he USA They need a to feel v alue d for th eir cont rib utio n a to feel s uppo r ted , esp ecial ly while wor kin g remotel y a to feel t hey make a di ere nce to s ociet y a to contr ibute to o ur enga ging, p osit ive , empowering culture a training and lear ning a career progressi on a job securit y How we en gage a Internal communications a Regular dialo gue and p er f orman ce disc ussion s with man agers a Regula r pe ople s ur ve ys, s ur ve ys for n ew jo iner s and leavers a Boar d en gage men t a Employee R e source Groups and other networking oppor tunities a Feed back via onli ne feed back.me tool a Employee assistance helpli ne a Whistleblowing hotline They need a long-term , collaborati ve, truste d relationships a business opportunities a to mitigate market and finan cial risk s a to meet r egul ator y r equire ment s and our Enviro nmental , So cial and G over nance (E SG) expec tations How we en gage a Procurement proces s a Our Supplier R elationship Management (SRM ) programme a Supplier -facing website a Thir d- Par t y Sup pli er Risk A ss essm ent pr oce ss a Thro ugh th e Car bo n Dis closure P roje c t (CDP) How we r esp on d We have a ‘peop le firs t ’ culture . We list en to our pe ople’s views and v alue th eir fe edba ck. In r esp ons e to our re gular e ngag ement sur veys (P ul se and Grea tPla ce to Wor k (GPT W)), we share pr ac tic al suggestions through our enterprise-wide com mun icati on p latform, Hori zon . The platform enable s employe es to p os t comment s on all ar ticles and the a utho rs of th e ar ticle s re spon d to the comme nts in a t imely manne r . Our CEO, C FO and COOh ost quar terly glob al me etings alon gside o ur res ults s es sions w here al l coll eague s are invi ted to ask que sti ons on any top ic rel ate d to the busin es s. How we a dd v alue Our wor k ca rr ies gr eat re spo nsibili t y , and ho w we wor k is as impo r tant as w hat we do . We suppo r t aposi tive , coll abo rati ve, di vers e, e quitab le and inclusiv e cultur e and do all we c an to make E xp er ian a great p la ce to wor k , whe re eve r y p ers on c an brin gthe ir who le selv es to wor k . We celeb rat e greatp er f orman ce and o er emp loyee s supp or t tolear nnew skil l s and pr ogre ss t heir ca ree rs , givin gthem as ens e of pur pos e – an integr al par tofo ur organis atio nal culture t hat has aposi tiveimp ac t globally. How we r esp on d We create clos e and coll abo rati ve rel ation ships withke y suppl ier s to ensur e st reamlin ed p roc es se s, per formance, se gmentation and qualification. This help s us uncov er and re alise n ew value , increa se savin gs and r educ e cos ts an d risk of f ailure. We have a spe cific s uppli er-facin g websi te tohelp suppliers understand our expect ations and ethical requir ement s , and we co nduc t due dil igenc e to ensure compliance with critical issues such as datas ecur it y, moder n slaver y and envir onment al per forman ce. For ging clos e rel ation ships al so hel ps us ensur e we me et our co mplianc e obli gation s. How we a dd v alue Many of our data c ontr ibutor s are al s o our client s . Th ey of ten sup ply us wi th data t hrou gh agive -to - ge t mod el. O ur abili t y to combin e, clean , sor t an d aggr egate da ta fr om tho usa nds of dat a contr ibu tors create s a mor e comple te pic ture of co nsume r orbusin es s intera cti ons ac ros s market s . Experian plc Strategic r eport 24 Our shareholders and bondholders Current and potential owners of E xp erian’ s shares and b onds. Gover nment s Governmental institutions and p olicy -makers in all our regions. 1. 4 bn consumer and 12 % Orga nic re venu e grow t h 19 1 m busine ss credi t histor y and repa yment record s 19 % re duc tion in to tal c arb on emission intensit y since 201 9 15 . 7 % Retur n on c api ta l empl oye d US c 51.7 5 Full-y ear div id end p er shar e US c 12 4 . 5 Benchmar k EPS They a re con cer ned a bo ut a gener ating prosperity a managing economic cycles a supp or ting their stakeholders’ fin ancial well-being a compliance with regulations a managing issue s that aect consumers and bus inesses a mi tigatin g impac t s of, and rever sing, climatechang e How we en gage a C onstr uctive relationships with po licy- makers, including r egul ar intera ct ion wi th memb ers of senio r man agemen t a Re spo nding to p ublic c onsult atio ns on is sues rele vant to our b usine ss They need a to un der sta nd E xp erian’s strate gic dire ct ion, financial per f ormanc e, and the sus tainabilit y ofthebu sines s a to analy se s tru ct ural mar ket tren ds a to g ener ate sus tainab le inves tme nt retur ns thro ugh share pr ic e appr eciati on, di vid ends orshare bu yb ack s a to un der sta nd manage ment and in centi ve structu res a to e nsure t hey are inv es ting in b usines se s that arecommi t ted to env ironme ntal pro gre ss , soci etal ben efit and w hich have s tron g gover nanc e How we en gage a Q uar terly finan cial updates , Annual Rep or t , Dive rsit y , Eq uit y and Inclu sion Rep or t an d Improv ing F inancial Healt h Repo r t a M eet ings, r oad shows , conf erenc es an d ses sion s spe cific to o ur busine ss , st rate gy and E S G mat ters a Re spo nding to inve sto rs’ quer ies on finan cial, str ategi c and E SG topi cs a Re gular inv es tor sur v eys an d fee dback a D urin g our An nual Gen eral M eetin g shareh older s are able to m eet an d put que st ions to our s enior managem ent team and B oar d of Dire ctor s How we r esp on d We monitor r egul ation s and put in p lac e po licie s andpro ce ss es to ensur e compl iance. B oar d and Audit C ommit te e rep or tin g includ es legisl ati ve andre gulat or y mat te rs as we ll as re levant gover nme nt aair s mat ter s. We t ake par t in event sto comm unicate t he ro le we pl ay in suppor ting an innovative, regulated data industr y. Weengag e withp ol icy -make rs to info rm t he develo pment ofapp ropr iate legisl atio n, and par ticipate in multi-stakeholder engagement for pol ic y consult atio n and to pro vid e pol ic y-m akers withab et ter un der stan ding of our in dust r y, datapr oc es sing and inn ovat ive dat a use . Weals oengag e wit h var ious or ganisat ions toaddre ss so cietal challeng es. How we a dd v alue We enable the t ransp arent flow of da ta that ises sential to t he fun ct ionin g of mod ern e con omie s and the financial e cosy stem. High - qualit y data redu ces t he r isk to lend ers ofex te nding cre dit , ensur es fair an d re sponsib le lendin g, incr eas es confid enc e to lend , as well a sthe abil it y to as se ss aordability and meet compliance obligations. This ben efit s th e wid er ec onomy b y improv ing a cce ss tocredi t, impr ovin g market co mpeti tion , increa sing credi t diver sific ation an d re ducing the c ost of cr edit . How we r esp on d We build rel atio nships wi th our shar ehold ers t hrou gh our inve stor r ela tions p ro gramm e. Dur ing o ur quar terly l ive financial update s, we inf orm analys t s, inves tor s and othe r intere ste d par t ies ab out E xpe rian’ s financial and s tr ategic p rogr es s. Inve sto rs are able to ask qu es tions dur ing th es e ses sions an d can al so a cce ss allr esult s- rel ate d infor mation , includin g trans cr ipt s, on o ur websi te. We hold fac e- to -fa ce me eting s and r un teach -in s to educ ate them ab out o ur busine ss an d ES G commit ment s. Th eChair of the B oar d me ets o ur lar ge st shareho lder s to discus s deve lopme nts in E SG an d other ma terial is sue s. We re gular ly coll ec t inves tor fee dback an d share this w ith manag ement an d the Boar d to ensur e our share hold ers' vie ws are we ll under sto od . We’ve used f ee dback f rom inv es tor meetings to improve our communication with shareho lder s as wel l as our E SG r epor ting. How we a dd v alue We aim to create lon g-te rm share hold er value throu gh organi c and ino rganic inve st ment s togrow our po sitio n in our chos en marke ts , bal ance d wit h shareho lder re turn s, div iden d paym ent s and share repur chase p rogr amme s when ap prop riate – al l while en surin g we me et our w ider s ust ainabili t y commitments. 25 Experian plc Annual Report 2022 Strategic repor t Our inve stment case Helping our cus tomers Our dat a ass et s are ex tensi ve, an d we combin e data wi th sop histi cate d analy tic s to tr uly harn ess i t s powe r . We inves t continu ously to enri ch and enhanc e the quali t y and co vera ge of our data a ss et s, and w e pla ce a signi ficant emphasis o n innovat ing to dev elop new prop osi tions to h elp o ur custo mer s. We al so inves t to grow our c onsum er memb ership bas e and to ex tend t he se r vi ces o ur memb ers can ac ce ss . In a dynami c ope ratin g enviro nment , this give s us the o ppo r tuni t y togrow our b usine ss by a ddre ssin g new requirement s and emerging trends. Wehaveclient s acr oss many s egme nts an d geo grap hies , and we gr ow by ex ten ding th e ser vice s we prov ide to o ur exis ting cl ient s, byad ding new c usto mer s and by gr owing ourcon sumer m embe rship ba se. E xpe rian’s roots l ie in pr ovidin g cre dit infor mation an d as ses sing le nding r isk s. T his is stil l the fo undati on of our b usine ss bu t we als o do much m ore – f or lend ers , indiv idual s, telecommunications companies, government s, the au tomot ive s ec tor , US h ealth car e prov ide rs and many oth er indus tri es . This gi ves r ise to many opp or t unitie s to exp and, w hile al so prov iding gr eat r esili ence , hel ping us to withstand ad verse ex ternal events , suchasth eglobal p ande mic. A deep understan ding of our markets We regul arly map th e market s wh ich are direc tly a ddre ss able by E x per ian and o ur ass es sment is tha t they are ma terial in s cop e. Th ey are al so e xpan ding ra pidly, driven by t he growin g ado ption of di gital s er v ice s, t he shif t toward s automa ted se r vi ces , th e nee d for o ur customers to identify and authenticate their counter par t ies and t he de sire by indi vidual s toacc ess finan cial ser vice s in a digit al wor ld. All of th es e ac tiv itie s rely o n data and t he t yp eof sophis tic ated analy tics that w e prov ide .T ohar nes s the se op por tunitie s, wecon centr ate our inv es tment into fi ve str ategi c foc us areas , the se ar e discus se d in mor e deta il in Our s tra tegy s ec ti on on pa ge 35. We have develo pe d detaile d pl ans to pur sue these opportuni ties. We ar e a responsible business ES G is cor e to how we r un our b usine ss . Wetrans fo rm li ve s by impro ving a cce ss tocredi t and emp ower ing indi vidual s to under st and their finan ces . T his is integr al toour busin es s and to th e core p ro duc ts t hat we oe r . We add to t his thro ugh we ll- defin ed social inno vation pro gramme s and thro ugh communit y invest ment s. In t his way we contr ibute to t he Unite d Natio ns Sus tainable Deve lopme nt Goal s r elate d to improv ing acce ss to cre dit and finan cial ser v ices . We a re a leadi ng globa l informat ion ser vices company with s ignifica nt exper tise in da ta and ana ly tics. We help ind ividuals to tak e control of their fina nces and to sa ve money . We help bus inesses to le nd responsibl y and appropriat ely and t o min imi se the risk of fraud. W e suppor t people and organ isations t o access information faste r and to ma ke precise deci sions which i n turn helps them fur ther thei r goals . We are dee ply aware of o ur resp onsib ilit y to trea t data – and t hos e it be longs to – w ith c are and re spe ct . Dat a sec urit y is of the utmo st foc us and we imple ment th e highe st s tandar ds of sec urit y control s . We are als o commi tte d tobe comin g car bo n neu tral in o urown ope rati ons by 2030¹ and have s et sci ence - bas ed tar get s to ac hieve this . Strong foundations Financial ly we are wel l posi tion ed. O ur bal ance shee t is str ong and w e have ample f unding liquidi t y . We als o have a pro ven tr ack re cor d of conver ting op erat ing pr ofit to c ash. T his allows us to foc us on our p ri ori t y inves tm ent area s by inves ting or ganic ally and pur suing a cquisiti on opp or t unitie s while al s o balan cing th e ret urns we prov ide to shar ehol der s. A unique investment pr oposition 1 Al l re fer en ce s in t hi s An nua l Rep or t to ‘car b on n eu tr al i n our o wn o pe ra ti on s by 20 30 ’ in clu de s al l Sc op e 1 an d 2 emi ss io ns , pl us w ith in S co pe 3 t he c at eg or i es o f ‘P ur cha se d G oo ds a nd S er vic es’, ‘ Bus in es s Trave l ’ and ‘ Fu el- an d- e ne rg y- r el ate d a ct iv it ie s’ (w hic h re pr es e nt 83 % of ou r ba se li ne e mis si on s in S co pe 3). Th isis a li gn ed w it h th e em is sio ns c ov er ed b y ou r sc ien c e- b as ed t ar ge t ap pr ov ed b y th e SB Ti . Ref ert opa ge s 64 -71 for f ur t he r inf or ma ti on . Experian plc Strategic r eport 26 1 P lea s e re fer t o no te 6 to t he G ro up fi nan cia l st at em ent s f or d efi ni tio ns o f or gan ic r ev en ue gr ow t h an d Be nc hma rk E BI T to B e nch ma rk o pe ra ti ng c as h flow c on ve rs io n. Positive organic growth We have avera ged 6% annual organic rev enue grow th ¹ sinc e we be cam e an indep end ent lis ted co mpany in 200 6, sus taining p ositi ve or ganic grow th th rough al l macro eco nomic c ondit ions . Th e dive rsit y of o ur por tf olio an d our abili t y to adapt hav e help ed us to s ust ain grow th ev en when th e ex ter nal macro eco nomic env ironme nt has be en challen ging, for examp le durin g the 2007 /200 8 global financial cr isis and th e COV ID - 1 9 pand emic . Mor e detail is av ailab le in the F inancial re view se cti on of this re por t. Highly recurring revenue Many of our pro duc t s and so lution s are missi on cri tical an d an integr al par t of o ur client s’ ope ratin g pro ce sse s . Highly cash-generati ve, low capital intensity business Our B enchmar k EBI T to Ben chmark o per ating c ash flow c onver sion r ate ¹ has aver age d 99% sin ce 200 6. Be st us e of the c ash We balan ce the n ee d for o rganic inve st ment in inno vatio n and acquisit ions w ith ret urn s to shareho lder s, thr ough di vid ends andsharer epurcha ses . Market-leading d ata Unri valle d in it s scal e, qualit y an d integr it y. Worldwi de we ho ld and manage th e cre dit histo r y and r epay ment dat a of 1 . 4 billi on pe opl e and1 91 milli on busin ess es . A 'pe opl e firs t' cu lture Our p eop le are smar t , cur ious an d exp er t s in th eir field s. We inve st to supp or t a p ositi ve, co llab or ativ e, dive rs e, equi tabl e and inclusi ve cultur e wher e per forman ce is rew arde d and emp loyee d evelop ment is encouraged. Harnessin g innovation We have a culture of inn ovat ion and c ontinually inve st in n ew pro duc t and so lution d evelo pment to a ddre ss em ergin g opp or tuni tie s. Ongoing investme nt in technology T echn olog y is how we maint ain and ex ten d our comp etiti ve ad vanta ge. Itis cr itic al to the wa y we inge st , s tore an d sec ure dat a, as we ll as to th e way we dev elop and d eliv er our pr oduc t s. We al so us e techn olog y to enhance o ur own pr oc es ses to imp rove p rod uct ivi t y and re duce c ost s . Market leader We hold th e number o ne or t wo p ositi ons in our l arg es t market s – theUS A , Bra zil and th e UK . Diversified portfolio Our busin es se s cros s die rent s ec tors an d re gions , op erat ing in43co untr ies . Scalable business model Allows us to gr ow reve nues quic kly at low increm ental c ost . Significant synergies Our op era tions c ombine da ta so urce s, inte grate analy t ics an d usete chnolo gy to o er di ere ntiated p rop osit ions . Secure oppor tunities We continually inve st a cros s spe cifi c addr ess able mar ket s. A stro ng ba sis fo r futu re grow th Crea ted by co mbining th es e five s tre ngth s. T ransforming financial liv es We help p eop le take c ontro l of their finan cial health – th rou gh our cor e oer ing , social inn ovati on pro duc t s and comm unit y inves tm ent. Safegu arding futures We prote ct o ur cus tomer s and th eir famil ies f rom i denti t y thef t an d fr aud . Prov idin g acces s to cred it We are intro ducing inn ovat ive way s for tho se wh o la ck basic financial ser vice s to gain acc es s to credi t, fo r exampl e throu gh use of alte rnati ve data sour ces an d financial educ ation pro gramme s. A responsible business We help to pr otec t the e nvironm ent and mana ge the r isk s of climate change. We have w orke d to redu ce our c arb on fo otpr int year- on- year an d are commi t ted to b eing c arb on ne utr al in our ow n ope rati ons by 203 0. An inclusiv e organisat ion We are commit te d to be ing a dive rs e, equi tabl e and inclusi ve organis ation , at all lev el s and acr oss all r egio ns. We have e sta blishe d detail ed ta rget s to a chieve th is, as s et ou t in the E SG s ec tion of thisrep or t . We are a leader in global information ser vices with strong p ositions in growing markets We place a strong emphasis on Environmental , Social an d Governance Our strong foun dations suppor t our growth p rospec ts We remain financiall y well positioned 27 Experian plc Annual Report 2022 Strategic repor t We h ave made good progress in ex ecuting our strat egy and achieved a strong per formance. Wemeas ure our progress th rough a range of k ey per formance indica tors. Ke y per formance ind icators % 2022 12 2021 4 2020 8 2019 9 2018 5 Organic revenue grow th 12 % % 2022 15.7 2021¹ 14.9 2020¹ 16.1 2019 15.9 2018² 15.5 Return on capital employed (ROCE) 15.7 % USc 2022 124.5 2021 103.1 2020 103.0 2019 98.0 2018¹ 94.4 Benchmark earnings per share (EPS) USc 124.5 % 2022 26.2 2021² 25.8 2020 26.9 2019 26.9 2018³ 27.1 Benchmark EBIT and Benchmark EBIT margin¹ 26.2 % US$m 1,640 1,379 1,386 1,306 1,241 US$ 1,640 m Why is th is imp or ta nt? I t is a measur e of our abil it y to pr ovid e innova tive prop osit ions an d ser vice s for clie nts an d cons umer s, andtoe xt end th ese to new indu str ies an d acro ss many re gion s. Aim : T o consistently achieve mid- to high si ngle- digit organic revenue grow th. Anal ysis : Organi c revenu e grew 1 2% , with th e main cont ribu tors b eing Nor t h Am eri ca 1 3%, L atin A me ric a 1 7%, and t he UK and Ir elan d 1 1 % , withs tr ong co ntrib uti ons fr om bo th B2B and C onsum er Se r vi ces . Se e pa ge 130 – Reve nue p er for man ce i s lin ked t o dir ec to rs’ r emu ner a tio n For a r e co nc ili at ion o f re ve nu e fr om o ng oi ng a c ti vi ti es , in clu di ng d is clo su re o f or gan ic a nd a cq uis it io n re ven ue , f ro m the y ea r 31 Mar ch 2 021 to 31 M arc h 202 2 se e N ote 9 (ii ) to th e Gr ou p fin anc ial statements . Why is th is imp or ta nt? I t meas ures h ow well w e turn o ur rev enue into profi t s, whi ch allow us to r einves t for f ut ure grow th and to prov ide retur ns fo r shareho lder s. Aim : T o ope rate o ur busine ss e ciently an d cos t ee ct ively w ith s table EBIT margins. Anal ysis : We continued to inve st in mar ketin g to supp or t C ons umer Ser vice s mom entum , new pr odu ct inn ovat ion, n ew busin es s develo pment and o ur techno log y mod ernis ation p rogr amme s. Ov eral l,fo r the Gr oup, B enchmar k EBI T was US$1 ,64 0m , up 1 9% atbot hcons tant and a ct ual exchange r ates . B enchmar k EBI T margin was 26.2%, up6 0basis p oint s bef ore th e impac t of for eign exchan ge rate s, an dup40ba sis point s ove rall . Se e pa ge 130 – Be nch mar k EB I T gro w th i s a dir ec to rs’ r em une ra ti on me as ure 1 From ongoing activities. 2 Re su lt s fo r F Y21 a re r e -p r es en te d for t he r e cl as si fic at io n to ex it ed b us in es s ac t iv it ie s ofc er t ai n B2B businesses. 3 Re s ta te d fo r IFR S 15. Why is th is imp or ta nt? I t meas ures h ow ee c tive ly we have dep loye d ourre so urce s and how e cient ly we apply o ur capi tal . Aim : T o gene rate g oo d retur ns on t he inve stm ent s we make and cre ate long -ter m value fo r shareho lder s. Anal ysis : This year , ROC E was 1 5 .7 %, up 8 0 basis p oint s on the p rio r year , refle c ting re venue gr ow th and o ur continu ed fo cus on o per atin g eciency. Se e pa ge 130 – Adj us ted R O CE is a d ire c tor s’ r emu ne ra tio n me as ure 1 Re s ta te d: se e n ote 6 t o th e Gr oup fi na nci al s ta tem en t s. 2 Re s ta te d fo r IFR S 15. Why is th is imp or ta nt? EP S me asure s our s ucce s s at gen era ting surp luse s and valu e for our shar ehol ders . Aim : T o achiev e ear nings gro w th for shar ehol der s while bal ancin g rein vestment t o secure future growth opportunities. Anal ysis : Benchmar k EBI T fr om ong oing a cti vi ties w as up 1 9% atcons tant exchan ge ra tes , due to our or ganic rev enue grow th per formanc e. Our B enchmar k net finan ce cos t s decr ease d to US$ 1 10m,and Ben chmark t ax r ate was d own 20 ba sis point s at 25.7%. Wit h weighte d avera ge numbe rs of share s at 91 4m , this re sulted in Ben chmark ea rnin gs per shar e of 1 24.5 US cent s. T his was up 21 % onthep rio r year at b oth ac tual an d cons tant exchan ge ra tes . Se e pa ge 130 – Be nch mar k EP S gr ow t h is li nke d to di re ct or s’ re mun er at ion 1 Re s ta te d fo r IFR S 15. A str ong performance Se e no te 6 to t he G ro up fi nan cia l st at em en ts f or d efi ni tio ns o f th es e no n - GA A P m ea sur e s: o rga ni c re ven ue g ro w th , Be nc hma rk E B IT, Be nc hma rk E BI T ma rg in , RO CE , B en chm ar k ea rn in gs p er sh ar e, an dBe nc hma rk o pe r ati ng c as h flo w and c a sh flo w co nve r sio n. Experian plc Strategic r eport 28 % 2022 109 2021 106 2020 88 2019 97 2018 1 96 Benchmark operating cash flow and cash flow conversion 109 % US$m 1,800 1,476 1,214 1,270 1,196 US$ 1,800 m Why is th is imp or ta nt? C ash flow gi ves u s the ca paci t y to oper ate , and reinve st . T he eci enc y wit h which w e conver t profi ts into c ash flo w is measured by cash flow conversion. Aim : T o conver t at leas t 90% of B enchmar k EBI T into Be nchmark operating cash flow. Anal ysis : Cash flow p er fo rman ce was s tron g this yea r with B enchmar k ope ratin g ca sh flow of US$1 ,80 0m, up US$ 324m on las t year . T he increa se is due to t he mix of gr ow th, s tro ng cont rol of wo rkin g cap ital andso me phas ing. Se e pa ge 130 – Cum ula ti ve B en chm ar k op er at ing c as h flow i s a dir e ct or s’ remuneration measure 1 Re s ta te d fo r IFR S 15. Why is th is imp or ta nt? A n enga ged an d moti vate d wor kf orc e help s us develo p exciting n ew pro posi tion s and find ne w opp or tuni ties , while appro priately mana ging risk s . Aim : T o ensur e E xp erian is a gr eat pl ace to w ork an d that we c an at tr ac t and ret ain the b es t pe op le. Anal ysis : a O ur Gre at Pl ace to Wor k sur v ey was co nduc ted glo bally f or the fir st tim e this year w ith clos e to 1 1,000 emplo yee s takin g par t . We achie ved an enga geme nt sco re of 78%. a E x pe rian was c er t ifi ed as a G reat P la ce to Work in 20 c ountr ie s, w ith ove r 90% of par ticipatin g empl oyee s agr eein g that pe opl e are tr eated f airly regar dles s of the ir social an d ec onomi c sta tus , sexual o rie ntatio n, r ace and gend er , and 8 6 % are p roud to te ll oth ers th ey wor k for E x per ian. a Re gular p ul se sur veys we re con duc ted t hrou ghou t the ye ar and on ave rag e acros s all pul s e sur v eys , 85% of employe es r espo nde d favo urab ly to: "I am rec eiv ing th e right am ount of sup por t from my mana ger at t his time"; 88% of employ ee s resp on ded f avour ably to: "I am ab le to be p rodu ct ive in my curr ent wor k se t-up"; 87% of employe es re spo nde d po sitiv ely to: "If eel I am able to b e myself a t wor k " . We are fur ther enc our age d by an impro ved Gl as sdo or r ating fo r a six th year in a r ow, to 4.3 out of 5. O ur p eop le continu e to dem ons tra te our E xp erian Way b ehavio ur , re sultin g in our handin g out 14,348 e mploy ee - nominate d re cogni tion awar ds in F Y22. Se e th e Ins pir in g an d sup po r ti ng o ur pe o ple s e ct io n on pa ge s 56 t o 6 1 f or f ur t he r info r mat ion o n ho w we' ve b ee n loo ki ng a f ter a nd l is ten ing to o ur p eo pl e thi s ye ar Why is th is imp or ta nt? I t measur es th e car bon e missio ns we gen erate , as we have a re spo nsibili t y as a busin es s to re duce our c ar bon f ootp rint and re spon d to the clima te change em erge nc y . Aim : T o be c arb on n eutr al in our o wn op era tion s by 2030¹ . Anal ysis : T o bec ome c ar bon n eutr al we n ee d to achiev e our val idate d scien ce -b ase d car bo n redu cti on tar get and , once t he tar gete d level s of car bon r educ tio n have be en achi eved , we mus t car bo n os et remainin g emissi ons wi thin our ta rget b oun dar y. Science -b ase d target (validate d): a S cop e 1 and 2 (1 .5°C scenar io): Redu ce abs olute S cop e 1 and 2 emissi ons by 50% b y 2030 (from 201 9) a S cop e 3 (2°C sc enari o): Reduce abs olute S cop e 3 emis sions f rom Purcha se d Goo ds and S er v ice s, B usines s T r avel and Fuel-an d- en erg y- rel ated a cti vit ies by 1 5% by 2030 (f ro m 201 9) This y ear , our tot al Sc ope 1 an d 2 emissi ons have r educ ed by a f ur th er 1 %. T he re duc tion an d cons oli dation of o ce sp ace as w e’ve moved to mor e flexib le wor king p at ter ns has r educ ed our e lec tr icit y c onsumpt ion (Sco pe 2), mor e than o set tin g the impa ct of in creas ed c ommutin g in company c ar s (Sco pe 1 ) a s emplo yee s ret urn to th e oc e. S o far , we have achie ved a 4 4% reduc tion in o ur Sco pe 1 and 2 mar ket-ba se d emissi ons sinc e 201 9 , agains t our t arge t of a 50% redu ct ion. Th e emissi ons inclu ded w ithin o ur Sco pe 3 s cienc e- ba se d targ et (Purcha sed G oo ds and S er v ice s; Busine ss T ravel ; and Fuel-an d- oth er ener gy -re late d ac tiv iti es) are 2% high er in 2022 than our 201 9 b asel ine. This ha s lar gely b een dr ive n by our P urchas ed G oo ds and S er v ice s emissi ons , refle c ting gro w th in the b usine ss . A s our sci ence - bas ed t arge t is an absolu te tar get , we are commi t ted to cu t ting tota l emissio ns de spite the bu sines s grow ing. We ar e engagin g wit h our supp lier s to und ers tan d how the y can r educ e their emis sions , and if r equir ed, w ill sw itch to suppliers that can better suppor t our target. As this supplier engagement pro ces s take s time , we ex pe ct s ome in creas es in em issio ns bef ore o ur initiati ves b e gin to deli ver re duc tion s. H owever , we remain c ommit te d to deli ver ing a 1 5% re duc tion in th es e Sco pe 3 em ission s by 2030. Ov erall , we have r educ ed our to tal car b on emissi on intensit y ² by 1 9% since 201 9 , n ow at 87 .4 tonne s CO e³ pe r US$ 1 m r evenue . This sh ows that we’re able to re duce our r elat ive c arb on emis sions w hile the business contin ues to grow . Year 2022 2021 2020 2019 Carbon intensity – total emissions perUS$1m revenue (tonnes COe) 87.4 87.6 100.1 107.9 Scope 1 & 2 market-based emissions (000s tonnes COe) 16.4 16.5 25.1 29.2 Total Scope 3 emissions (000s tonnes COe) 532.9 453.9 493.4 495.3 Se e th e ‘P ro tec t ing t he e nvi ron me nt ’ se c tio n on p ag es 6 4 to 71 fo r fu r th er info r mat ion o n ho w we ar e ta kin g ac t ion o n cl imat e cha ng e 1 A ll r ef er enc e s in th is A nnu al Re po r t to ‘c ar b on n eu tr al in o ur o wn o pe ra ti on s by 20 30 ’ inc lu de s al l Sc op e 1 an d 2 em is sio ns , p lus w it hin S c op e 3 th e ca te go ri es o f ‘P ur ch as ed G o od s an d Se r vi ce s’, ‘B usi ne s s T ra ve l ’ an d ‘Fu el -an d - en er gy -r el at ed a c ti vi ti es’ ( whi ch r ep re s ent 8 3% of o ur b as el in e emi ss io ns in S c op e 3). T his i s ali gn ed w it h th e em is sio ns c ov er ed b y ou r sc ien ce - ba s ed t ar ge t app ro ve d by t he S BT i . Ref er t o pa ge s 6 4-71 for f ur the r inf or ma ti on . 2 C ar b on in ten si t y : CO e emi ss io n pe r US $1 m o f re ve nu e. 3 C O e = C O eq uiv al ent . Employee engagement 78 % Carbon emissions 29 Experian plc Annual Report 2022 Strategic repor t Our bus iness model Eve r y th ing we do is in pu rsuit of ou r purpose. We help bus inesses to g row , p eople to prosper a nd commun ities tothrive, whi le promoti ng a cultu re of diversity , inclusion a nd unli mited oppor tunities for al l. Helping individu als, aswell as bus inesses of all s izes, to ach ieve thei r finan cia l goals is at the hear t of our work. About us Provid ing ess ential ser vices for p eople an d organisatio ns We are exp er t s at t urnin g data into infor mation . B y integr ating data i nto adva nced technologi es and by dep loyin g sop histic ated analy tic s, w e can pl ay a key ro le in help ing con sumer s and businesses inte ract more easil y with each other . We help consumers a B etter understand their financial position an d confidently m anage decisions abou t their finance s a Imp rove acc ess to finan cial services a Sh op for cr edit an d insur ance oer s in our mar ketp lac es a Prote ct themselves against identi t y thef t and fr aud a Ne gotiate debts with lenders We help busi nesses a D eliver ser vices to consumers with greater spee d, eciency and accur ac y a Make f airer , bet te r-infor med and more res ponsible decisions a Mana ge cre dit risk an d minimise the r isk of f raud a Unders tand their markets, be come m ore e cient and reduce costs a G ain busine ss intel lige nce and impro ve their c usto mer experience We add v alue a B y increasing eectivene ss, lowering costs, and ma king data- dr iv en digita l transac tions more convenien t, se cure and s afe a B y inve s ting in key die rentiato rs tha t under pin our busin es s, an d using th es e to execu te our s trate gy an d improve operational excellence Se e pa ge s 22 to 25 f or m or e info r mat ion o n ho w we cr ea te value for stakeholders Consumer s Und ers tan d and im prove th eir fi nancia l profi le a A cce ss to cr edit r epor ts an d scor es , ident it y moni tor ing andpro tec tion a Fre e cons umer me mber ship bas e of 1 34 m peo ple a P ro duc ts : E xp erian B oos t , E xpe rian G o, Powe rS cor e Financial education a C ompr ehensi ve awaren es s and edu cati on pro gramme s a Uni ted fo r Financial H ealth acr os s multiple r egio ns, T ril haFinanc eira in B razil Make bet ter fin ancial d ecisio ns an d achieve better , faster outcomes a P rodu ct c ompar isons f or cre dit car d, per so nal loan, mor tgage or a utomo tiv e insur ance p ro duc ts t hey w ill mos tlikely quali f y fo r and be nefi t fro m using a P ro duc ts : Match/Credi t Matcher/ e Cre d in USA , UK an d Br azil, Auto Ch eck in t he UK , C ar Ce r t in Ge rmany, patient c are eligib ilit y an d acc es s solu tions : My Health Dire ct in t he USA Pro tec t the mse lves aga ins t finan cial los s and i den tit y thef t a I denti t y Th ef t Pr otec tio n – E xpe rian Cr edit Lo ck a Security F reeze Manag e thei r spe ndin g and m eet p ayme nt ob ligat ions a L impa N ome de bt ne gotiati on (Br azil) a S er asa D igital Wal let (Br azil) Busi ness-to-Business Big da ta analy t ics p la tfo rm a A s cend T echn olog y Plat f orm: dat a on deman d and sophisticated analys is tools a Dat aLabs : adv anced dat a analysis, an d res earch and development by d ata scientists Core data platf orms a C oll ec t, s or t and a ggr egate dat a fro m tens of tho usan ds of tra ditional an d alterna tive s ourc es and t rans for m ittopr ovid e a ran ge of info rmat ion s er v ice s Open data platforms a O pen B ankin g: facil itat ing th e prov ision of dat a fro m consum er bank a ccount s , wit h their p ermis sion , tootherp ar tie s Consumer-contributed data a C ons umer s addin g their ow n data to th eir cre dit file s with p ro duc t s like E xp er ian Bo ost in t he USA an d UK Decis ioning a Mana ge and au tomate lar ge vo lumes of d ecision s andpr oce ss es , on site or in t he cloud a P ower Cur ve in the clou d: cus tomer de cision managem ent for c onne ctin g analysis and op era tions a Cros sCore: fraud prevention We help cre ate opp or t unitie s for p eo ple to impr ove the ir liv es and foror ganisati ons to make fas ter , smar ter decisio ns. We do this b y tran sfo rming da ta into infor mati on, an d by depl oying a dv ance d technolo gies , plat for ms and analy tic s. W e use the power of data to cr eate opportunities, impr ove lives and make a meaningful dier ence insociety Experian plc Strategic r eport 30 A detailed look at w hat our business s egments do an d how they generate revenu e A. North America 2,033 B. Latin America 528 C. UK and Ir eland 409 D. EMEA/Asia Pacific 343 T otal 3,313 Data¹ (US$m) A B C D A. North America 784 B. Latin America 149 C. UK and Ir eland 244 D. EMEA/Asia Pacific 164 T otal 1,341 Decisioning¹ (US$m) A B C D A. North America 1,305 B. Latin America 114 C. UK and Ir eland 194 T otal 1,613 Consumer Services¹ (US$m) A B C Con su mer Se r vic es Busi ness-to-Business Data De cisioning 1 Re ve nu e fr om o ng oin g ac t iv it ie s . 53 % of Gro up re venu e – fr om on goin g ac tiv it ies 21 % of Gro up re venu e – fr om on goin g ac tiv it ies Wha t w e do We oper ate 23 co nsume r and 1 5 busin es s infor matio n bure aux acr os s the glob e, to provide businesses with the information they need to develop relationships with their custo mer s, to gr ow their b usine sse s and to manage th e risk s as so ciated w ith ex ten ding credi t. We build an d manage l arge an d compr ehen sive dat abas es co ntaining th e cre dit ac tivi t y and rep aym ent histor ie s of million s of cons umer s and busin es se s. We col lec t, s or t , aggr egate and t rans for m data f rom ten s of thou sand s of sour ces , to pro vid e a ran ge of information ser vices . Organisations analyse and use t his infor matio n to make decisi ons abou t lendin g and th e term s on whic h to lend. Read a bo ut o ur re sp on sib ili t y to tr ea t dat a wit h re sp ec t on p ag es 5 0 to 55 Wha t w e do We draw on th e depth an d bre adth of o ur cre dit infor matio n datab ase s and on o ther inf orma tion , includin g client s’ own data , to create an d deve lop pre dict ive too l s, so phist icate d sof t wa re and platforms. These all help busi nesses an d organis ation s manage and a utomate l arge volume s of de cisions and p roc es se s, b oth on site and in the clo ud. O ur ser vice s hel p our client s improve t he con sisten cy an d qualit y of th eir busine ss de cisions , in area s includin g credi t risk , fraud prevention, identity management, cus tomer ser vice an d engag ement , acc ount pr oce ssin g, and acco unt managem ent. O ur indus tr y sp ecial ist s and data s cientis t s wor k with cl ient s to hel p them find t he b es t solu tion s for th eir ne ed s. Read a bo ut h ow w e're co mb inin g our d ata , an aly t ic s and s of tw are t o so lve a r an ge o f cli ent n ee ds – s e e pa ge s 34 t o 45 Key cus tom ers Bank s, au tomoti ve deale rs , retaile rs and telecommunication companies How we a dd v alue a We ag gre gate data f rom many s ourc es and tur n it into infor mati on th ey can us e for many die rent pur po se s a We h elp pr ovi de len der s wit h a compr ehen sive v iew of a con sumer ’s financial situation a Inf orma tion is us ed to s uppo r t impar tial credi t decisio ns, b road en acc es s to credi t and pro mote f air and re spo nsible len ding a We al so p rov ide mar keting da ta rel evant to consu mer li fest yles wh ich helps bu sinesses understand their customers bet ter and ser ve them w ith ta ilore d pro duc t s Revenue m ode l a P rimar ily tran sac tional w ith s ome contribution from licence fees Key cus tom ers Financial s er v ice s, r etail , US he althc are, telecommunications, utilities, insurance and Fin T ech How we a dd v alue a A sse ssments of creditwor thiness, suitability and ao rdabili t y of loans sup por t resp onsibl e lending a Faster , fr ictionle ss and bet ter -informe d decisi ons hel p improv e custo mer experience a Re levant insi ghts into n ew and ex ist ing customers suppor t more eective managem ent and b et ter en gagem ent wi th customers a Authentication of customer identit y helps prev ent ide ntit y fr aud an d othe r crime Revenue m ode l a S of t war e and s yste m sale s: con sultan cy and impl ementation fees; recurring licence fee s; and trans ac tional charge s a C redi t sco res s old on a t rans ac tional , volume-tiered basis a A naly tic s: a mi x of consult anc y and professional fees , as well as transac tional revenues 26 % of Gro up re venu e – fr om on goin g ac tiv it ies Wha t w e do We help mill ions of c onsume rs ta ke contr ol of their cr edit s o they c an manage th eir financial position. We provide credit education, identity monito rin g and fr aud pr eventi on ser vice s direc tly to c onsum ers in t he USA , Brazil , UK , Sou th Af ric a, Pe ru , Colo mbia and India . Our ser vice s for c onsum ers in clude f re e acce ss totheir E x per ian cre dit rep or t an d sco re, and usef ul onl ine edu cat ional to ol s. In th e USA and UK we enabl e pe ople to co ntrib ute th eir own data to th eir file, fo r exampl e utili t y , mob ile paym ent s and s treamin g ser vice s, to h elp them imp rove th eir cre dit sc ore . We oer compar ison s er v ice s that show con sumer s a choice of relev ant and avail able cre dit, p ers onal loan, m or tga ge, au tomoti ve insur ance an d other d eal s. In B razil , our o nline r ec over y por tal, L impa No me, le ts c onsume rs s ee all their ow n pas t- due deb ts in o ne pl ace , and neg otiate mor e achiev able re paym ent plan s with lenders. Read o n pa ge s 36 t o 37 how w e're r ed efi ning Co nsu me r Se r v ice s f ar be yo nd cr e dit s co re s an d monitoring Key cus tom ers Consumers, lender s and insu rance providers How we a dd v alue a Su ppo r t co nsumer s in tak ing co ntrol of t heir credit , improv ing their financial well- being and achievin g their financial goal s a P rov ide imm ediate t angib le re sult s thro ugh credit score improvement and renegotiation of debts a Su ppo r t eli gibilit y f or , an d improve d ac ces s to, cre dit o ers an d other s er v ice s a Imp rove navigation of major financial decisi ons, s uch as bu ying a h ome a Imp rove d etec tion of, and r esilie nce to, identi t y thef t and fr aud Revenue m ode l a Monthly subscription and one- o transac tion fees a Re fer ral f ee s for cre dit p ro duc ts a W hite - lab el par tnership s Market position Number o ne or numb er t wo in our ke y market s Main competitors: Equifax, T r ansUnion, Dun&Br ads tre et, B oaVis ta, L ive Ramp andEpsilo n Market position Market-le ading p rovi der of bu sines s solu tion s in key marke ts e xcept f or th e USA Main comp etitor s: FI CO, IBM , SA S and ChangeH ealthc are Market position We are the mar ket lea der in Br azil and on e ofthe mar ket lea der s in the USA an d the U K Main comp etitor s: Int uit, N erd Wallet , Len ding T re e, Clea rS cor e, Equif ax and T rans Union 31 Experian plc Annual Report 2022 Strategic repor t Our bus iness model contin ued What makes us dierent? Monitor market trends Evaluate client needs Invest in the most promising initiatives Identify oppor tunities The Athena process T raditional credit data Increased breadth and depth of data More predictive Broader applications New datase ts + = A culture of inno vation Innovation has always been a major dierentiator and grow t h dri ver for u s. We have es tab lishe d a culture of c ontinuo us innova tion and w e employ som e of the wo rld ’s leading dat a scient ist s and sof t ware engineers to innovate i n anticipation ofever-chan ging market t rend s, and to s olve pre ssing b usines s and co nsumer chal lenge s. Wecontinually inv es t in data s cienc e and maintain high s tandar ds of sci entifi c excelle nce. We have a formal p ro ces s and fr amew ork of innovat ion acr oss E x per ian. We c all it ‘ Athena’ , and it h elps us b rin g new pr odu ct s and s er v ice s to market mo re succ ess ful ly . Consumers are at the hear t ofwhat w e do We have rela tionships w ith mill ions of cons umer s. We h elp p eop le us e data tosupp or t th eir financial wel l-b eing. Wehave pion eer ed n ew ways to gi ve pe ople gr eater c ontro l over th eir data , and giv e them th e confid ence to flour ishfinancially. We will manage o ur busin ess b ase d onclear pr incip les: Secu rity Data s ecur it y is cr itic al. S ecur ing and protecting data against u nauthorised acce ss , use , disclosure an d loss ar e keypr ior it ies f or us . Accuracy We will make data a s acc urate , comple te and re levant as p os sible for the manne r in which i t is use d, always incomp liance w ith le gal re quirem ent s. F airness We colle ct an d use da ta fair ly and f or legi timate pur po ses , bal ancin g pri vac y exp ec tati ons wi th the s ocial an d eco nomi c ben efit s d eri ve d fro m the resp onsib le use of da ta for in divi dual s, busi nesses and clients. T ransparency We are open and tr ansparent ab out thet y pe s of data w e coll ec t, w her e weget i t, how i t is use d and wh ere i t is shared . Wh ere app ropr iate, we p rov ide indiv idual s wi th acc es s to the dat a we colle c t abou t them an d the abil it y to correct, restrict o r de let e dat a. Inclusion We seek to imp rove financial h ealth and inclusion f or all thr ough t he innov ativ e use of r elevant da ta to hel p indiv idual s improve their finan cial lives . Our extensive data assets Data is t he foun datio n of our busin es s. We are cons tant ly addin g data as se ts to h elp o ur par t ner s under st and, r esp ond to , and use t heir data fa ste r and mor e ee c tive ly . Worl dwi de, wehold an d manage th e cre dit histo r y and repa yme nt data of 1 .4 bil lion p eo ple an d 1 91millio n busine ss es . We are cons tant ly exp anding t he br ead th and de pth of our da ta coverage through partnerships, new bureau data on ‘t hin- file’ consum ers in t he USA , B razil an d other regions, as well as consu mer-permissioned data thr oug h our grow ing O pen D ata Pl at fo rm which allo ws millio ns of cons umer s to contr ibute to, and en gage w ith , their da ta, e nabled b y pro duc t s like E xp erian B oo st an d E xpe rian G o. Stri ct s e cur it y co ntro l s bas ed o n ISO 270 0 1 We in ves t in a number of key areas to sustain and grow our competitive lead. Experian plc Strategic r eport 32 Organic investment in selec ted projects Inorganic investment through acquisitions Shareholder returns + balanced with Dividend payments, share repurchase programme when appropriate Investing sustainably We incor po rate E S G fac tor s into our inves tment d ecisio ns. We cho ose to inv es t in pro duc ts an d ser vice s wit h the clear purpose of generating positi ve social impac ts , alongside financial ret urns . Ourco re pr oduc t s and s ocial inno vatio n pro duc ts h elp impr ove ac ces s to cre dit , tosupp or t financial in clusion , improve financial liter acy, and prevent fr aud and identi t y thef t. We are al so inve st ing in lessening our environmental impact, redu cing our c arb on emissi ons thr ough inves ting in m ore e cient techn olo gy, reducing our energy re quirements, and making m ore us e of ren ewable e ner gy. Thissup po r t s our aim of b eing c arb on neu tral in o ur own o per ati ons by 203 0¹ . Under lyin g this , is our inve stm ent in data se curi t y , accur ac y, fairne ss, t ransp arenc y and inclusi on, our c ommitm ent to wor kin g with inte gri t y , and insp iring an d supp or tin g our employees. We are ambitious We are wor king to get her towar ds achi evin g our goal s , and we have bi g ambitio ns: a T o be v iewe d as on e of the gre ates t compani es in th e wor ld by all s takeho lder s a T o be tr us ted b y consum ers , busin es se s, and so cietie s wor ldw ide as an out s tandin g cus todian of t heir dat a a T o be r eco gnise d as an innova tive techno logy c ompany that us es dat a and sophisticated products to meaningfull y improve o utco mes f or busine ss es an d consumers a T o be p urp os e dri ven in all tha t we do, to b e wide ly rec ognis ed as a dr ive r of financial inclusion an d a champion f or the c onsum er a T o be uniq uely po sition ed , with clo sely conne cte d B2B and C onsum er Ser vice s businesses that enhance each other , with super ior da ta, p rod uc ts an d deep cl ient and consumer relationships a T o be p erc eive d as an asp irati onal environment for talen t, at tracting , retainin g and de velopin g the b es t pe ople a T o have a re put ation f or ou ts tan ding execution, products and customer ser vice, enabling us to bu ild du rable competitive advantage a T o be v iewe d by all s takeh olde rs as a company t hat achiev es sus taine d grow t h Our global footprint and employees We have a diver sifie d po r t fol io and ser vemultinational an d loc al client s fro mabro ad r ange of s ec tor s in mor e than1 0 0count rie s. We have a s calab le busine ss m ode l which m eans we c an develo p new pr odu ct s in on emarket an d rep lic ate the m in othe rs ina s ys temati c way, helping us e xp or t o ur mos t suc ces sf ul plat f orm s and fo rmat s . Our 20,60 0 skille d emplo yee s op era te fro m 43c ountr ie s acro ss six c ontine nts . Robus t fi nancial pe r fo rma nce and reinvestment We have a discipl ined ap pro ach to cap ital allocation that balances investment in the busine ss and r etur ns to share hold ers insupp or t of our s tr ateg y to achie ve consis tent grow th. Breadth and combinat ion of capabilit ies Our gre ates t st reng th com es f rom combinin g data w ith our a dva nce d analy tic s and de cisioning to ol s. T his appro ach mean s we can of te n create highly di erentia ted s er v ices t hat are unique to E xp er ian. We coll abor ate acros s our or ganisat ion to dev elop solutions to complex problems. 1 Al l re fer en ce s in t hi s An nua l Rep or t to ‘ca rb on n eu tr al i n our o wn o p er ati on s by 2 030 ’ in clu de s al l S co pe 1 a nd 2 e mis si on s, p lu s wi thi n Sc op e 3 th e c ate go r ie s of ‘ Pu rc has e d Go o ds & S er v ic es’, ‘ Bus in es s T ra ve l ’ an d ‘Fu el -an d - en er gy -r el at ed a c ti vi ti es’ (w hi ch r ep re se nt 8 3% of o ur b as el ine e mi ss io ns in S co p e 3). Th is i s ali gn ed w i t h th e em is sio ns c ov er ed b y ou r sc ie nc e- b as ed t ar ge t ap pr ov ed b y th e SB T i. Ref er t o pa ge s 64 -71 for f ur t he r inf or ma ti on . 33 Experian plc Annual Report 2022 Strategic repor t Our stra tegy Helping people thrive in the d igital econom y is funda mental t o E xperian. Itiscen tral to our pu rpose and a cornerstone of our strategy . Over the past year , E xp erian h as demonstrated enormous agility and wehave de livered considerable progress. We h ave sought new wa ys touseou r resources, da ta, technology a nd creativity to bring man y new solutions t o marke t that address emerg ing consu mer and clien t needs. Wesee ma ny ways t o buil d fur ther from here. Our str ategic ambitio n Our s trate gy is t ailore d to take a dvant age ofawide numb er of grow th oppo r tunit ies , aswell a s to deli ver sus tainab le, comp eti tive adv antag e. Ou r aim is to be on e of the pr emier compani es in th e wor ld to help in div idual s toimprov e their financial l ive s and to savem one y. We have als o built on o ur rep utat ion fo r world- class prop ositions which combine ou r data , analy tic s and s of t war e to solve a r ang e ofclient n ee ds as th ey shif t to digi tal pl at for ms , deplo y open da ta st rate gies an d manage crit ical p ain point s su ch as the gr owing inst ance of f raud . A s we execu te our s tra teg y , it is impo r tant t hat we are tr us ted by co nsume rs , busine ss es , and so cietie s wor ldw ide as a r esp onsibl e custo dian of their dat a. A s a lea ding dr iver of finan cial inclusion an d a cons umer champio n, we al so se ek to be p urp ose - dr ive n in all that we d o, and we aim to b e an aspir ational env ironm ent for talen t, attr acting, retain ing, and devel oping the b es t pe opl e. Th e market tr ends impa ct ing E xp erian ar e favo urabl e. Th e move to m ore o nline intera cti on has le d to grow th in di gital financial ser vice s and e - comm erce , a tren d which ha s als o led to an infl ec tion in t he ne ed to mana ge fr aud and p er sonal id entit y, while indi vidual s nee d mor e help to nav igate th eir finance s and to prot ec t their o nlin e ident it y. Digitisation For busin es ses an d indiv idual s alike, t aking adv antag e of the se tr end s while pr otec tin g agains t fr aud re lie s increa singly on dat a and analy tic s. F inancial ins titu tions ar e upgr ading their s ys tems in a bi d to enhanc e digit al lendin g exp eri ence s while al s o lower ing the ir cos ts to a cquire an d ret ain cus tomer s. T he se tren ds are no t cons tr ained to t he Financ ial Ser vice s indust r y and , for E xp er ian, buildin g out into n ew market s egm ent s add s to our total opp or t unit y. Consumer empowerment Wit h the ad vent of op en dat a techno logy, indiv idual s are al so ab le to take gre ater owne rship of th eir data an d the a sso ciate d use s of it. M ore an d mor e we se e this as a cat alys t for ne w pro posi tion s whic h can he lp pe ople to a ssum e more p owe r and cont rol over their financial live s. Demographic s Dem ograp hic s are al so a not able s ecul ar tren das 1 .7 billion p eop le la ck acc es s to basic financial ser vice s. O ur pro posi tion s help to wide n acc es s to credi t by hel ping l ende rs totailor th eir oe rs and en sure sui tabili t y. Thisle ads tomo re a ordab le cre dit o ers which dri ves financial in clusion and improve s financial health. Th ese t rends ar e posi tive f or E xp erian an d have be en a fo cus fo r our pr odu ct inn ovati on and busin es s develo pment inve st ment . Fa v o u r a b l e m a r ke t d y n am i c s Attr acti ve market spaces Our ad dres sab le marke ts ar e big, gr owing an d dy namic. T he op por tunit y is ther e but w e must b e agile an d innova tive to s eize it . Big Data & Analy tics Consumer Platforms Global Decision Analy tics Core Consumer Infor mation Business Infor mation Health T argeting data & identity resolution US$55bn+ US$22bn+ US$20bn US$16b n US$15 b n US$8- 1 0bn US$5bn Financial power to all Experian plc Strategic r eport 34 Achieving our s trategic amb ition Our grow th initiative s Our s trate gy is e xecute d agains t a se t of high- impa ct Str ate gic Focu s Are as (SFAs) deli ver ed thr ough fi ve gro w th initiat ive s (se e below). T hes e are de eply info rm ed by cli ent and cus tome r tren ds in our var iou s market s and the y define w her e we fo cus our p rodu ct str ateg y and our inv es tment de cision s. This f ram ewor k has he lpe d us to intro duc e a ser ies of inn ovati ons wh ich have del iver ed a lot of succ es s, inno vatio ns such as E x per ian Bo os t and E xp er ian As cen d. It is al so h elpin g us to maximis e the p otential of n ew data s ourc es , for ex ample in Br azil wi th the a dve nt of posi tiv e data s cor ing, an d it guid es our e ntr y into n ewer areas , such a s incom e and emplo yme nt ver ific atio n. For t he nex t p hase of o ur evolution, innovation will only become more impor tant to our st rate gy. Th e five SFAs are : 1 . Make cr edit an d lendin g simpler , f aster an d safe r for co nsume rs and b usine ss es 2. Empo wer co nsumer s to impr ove th eir financial live s 3. Help b usine sse s ver if y id entit y an d comba t fraud 4. Hel p organis atio ns in spe cialis ed ver tical s harne ss da ta, analy tics an d sof t wa re to make smar ter de cisions 5. Enab le busi nesses to fi nd, understand a nd conne ct w ith au dienc es Our s trate gy is und erp inned b y crit ical enablers and foundations th at we believe are crucial to E x per ian’ s su cces s. Fundament al s include our high-per formance cultu re, which help s us to at tra ct , ret ain and de velop highly talente d p eop le; our s uper ior da ta as set s; thebr ead th of our c apabil itie s; and o ur abilit y to ope rate at s cale . We continue to inv es t in the se are as to supp or t o ur grow t h. For m ore infor matio n on th ese s ee O ur busin es s mo del . T o take a dva ntage of t he fav ourab le market dynami cs and at t rac tiv e market spa ces we ar e inves ting in a d efine d set of gr ow th init iativ es aimed a t deli ver ing high r ates of gr ow th sust ainably. In B2B, thes e initiat ive s are direc te d at innov atio n within o ur cor e po r t fol io and enter ing and e xpan ding in ne w grow th market s , while in C onsum er Ser vice s we aim to continu e to red efine o ur busine ss w ith arang e of new en gagin g oer s. Redefining Consumer Ser vices far beyond credit sc ores and monitoring See page p36 Leading the nex t phase of credit decisioning development See page p38 Ex panding in new grow th markets See page p40 Driving to scale in our smaller regions See page p4 2 Capitalising on a unique market opportunity in Brazil See page p44 35 Experian plc Annual Report 2022 Strategic repor t Consumer Services New transform ational concepts Global expansion Big three geographies Within Consu mer Ser vices, our strategy is to con tin ue to growa nd deepen the relationsh ips we ha ve with consumers. T oachieve thi s, we plan to enh ance our prem ium su bscription oers, contin ue to develop s ignifica nt scale i n credit comparison mark etplaces and to extend i nto new m arket places. For exampl e, we recentl y launched a n auto in surance ma rketplace i n Nor th America, suppor ted through the acqu isition of Ga bi. We plan toin troduce new featu res which wi ll help to personalise the experience and to become releva nt to ou r members in thei r dai lylives. We are also evalu ating ne w geographies for poten tialexpa nsion. Our stra tegy contin ued Our grow th initiative s R edefining Consumer Services far bey ond credit scor es and monitoring Experian plc Strategic r eport 36 Rein venting the insur ance customer experience Gabi gave m e multip le opti ons fo r insur ance b undles an d did all th e compar ing wo rk f or me. T he p lan we went wi th is sav ing m e US$900 per year! Additionally , the representative went ove r each lin e of the p olici es toexp lain ex ac tly what is c over ed , sothat I un der sto od e xac tly wha t Iwaspur chasing . Ama zing se r v ice! Rebe cca K . (Pi tt sbu rgh , PA) Obt aining insu ranc e in the US A , wh ethe r fora c ar or ho use , can b e a cumbe rs ome, fr ust rat ing pro ce ss . It is tim e cons uming for consumers to research dierent providers , find the r ight co ver age and t he mos t aor dable r ate. O nce yo u’ve found an insurer , there is still a lengthy application pro ces s to conte nd wi th and s ometim es it’snot ve r y clear w hat exa ct ly your p oli cy includes or excludes. Be caus e of this, p eo ple don’t change prov ider s ver y ofte n and over t ime may be missing o ut on s aving a si gnific ant amount of mon ey. With infl ation in t he USA a t it s highe st sinc e the 1 980s , even a small s avin g can help with people’ s household budgets. We want to use dat a and techn olo gy toimprove p eo ple’s financial health. Thisin clude s hel ping p eo ple sa ve mon ey and reduce stress with bet ter experiences . Th e acquisit ion of Gab i will hel p us achie ve this ambit ion and h elp us to re invent the insurance experience for consumers. Gabi set s a ne w stan dard fo r how co nsume rs c an find the b es t r ates fo r their in suran ce ne eds . So how d oe s it wor k? Y ou simply p rov ide your insur anc e acc ount cre dential s to Gab i and, b ec ause t hey have link s into mo re than40 US in suran ce ca rr ier s, in cluding sev en of the to p 1 0 US ins urer s, t hey c an find insur ance t hat is compar able to yo ur exis ting ins uranc e. T akin g all the l egw ork out of th e pro ce ss f or you . Y ou can hav e afully di gital e xp eri ence , or if yo u nee d assis tanc e, a memb er of Gabi ’s team will help gui de yo u throu gh the p ro ces s. Th e be st de als ar e ranke d by th e savin gs amount , givin g you tr anspar enc y into which prov ider is o er ing whi ch deal . Not o nly is the inter face e asy to us e, b ut the d eal s that they sh ow you ar e accur ate b eca use th ey’re insur ance quo tes dire c t fro m the insur ers . On aver age p eo ple sav e US$9 6 1 per annum on car in suran ce and US$ 4 1 3 o n hous e insur ance w ith t he Gab i pla tf or m. This inn ovati ve appr oach to sh oppin g for insura nce is simpl er and quicker f or consum ers to f ollow, it is tran sparent an d itcan s ave the m mone y . Giv ing the m back mor e time and r es ourc es to fo cus on t he other thin gs in lif e. 37 Experian plc Annual Report 2022 Strategic repor t Consumer information Consumer consent + Use cases + Vertical s + Countr ies Global platforms Open Data PowerCur ve Ascend Exp erian One Our goals are to l ead the next phase of credit decis ioning developmen t, enhance ou r decision ing soft ware by embracing the cloud, t o extend our ana ly tics capabilit ies globall y and to provide int egrated identit y and fraud prevention propositions. T o do this we conti nue to add new datasets and devel op new scoring methodologies t o improve outcomes. Examples i nclude increased d ata coverage of the fi nanci ally in visibl e population, gathe ring more consumer -per missioned da ta (via Experian Boost), developi ng our capabi lit y to view cred it risk over ti me throug h trended data and add ing non-tradition al da ta sources toassess credit risk s uch as renta l in formation. We a re also investing i n developing, sca ling and e nhanc ing the int eroperability of our globa l platfor ms. This incl udes our Open Banki ng categorisation tools, expanding Experian Ascend use cases and extendi ng the platfor m int o more geographic ma rkets. We a re integ rating Ascend with our power ful decisioni ng platfor ms, fur ther ex tend ing our cl oud- enabled deci sioni ng capabi lities and developi ng specia lit y bureau approaches t o ser ve new growi ng market segmen ts such as Buy Now Pay Later . Wea ls o conti nue to deepen and broaden ou r fr aud andident it y man agement oers and oe r more of our pointsol utions througha s ingl e int er face. Our stra tegy contin ued Our grow th initiative s Leading the next phase of cr edit decisioning development Experian plc Strategic r eport 38 Making marketing mor e ecientfor everyone Len ders ar e fa cing a wor ld of cons tantly chan ging cons umer ri sk andover all e cono mic unce r taint y. Th eyne ed to k now whi ch con sumer s are st ill an acc eptab le risk an d consum ers n ee d cre dit oe rs that ar e timely and relevant t o their situation, be caus e oth er wis e th ey do not c onver t. With A scend Marketing busi ness es cande ploy mo re rel evant mar keting campai gns bas ed on high - quali t y , fresher data that our competition can’ t match, r esultin g in improv ed cus tom er satis fac tio n and re duce d risk . Alex Lintner Group President Consumer Information Ser vices, Exper ian North America “ Y o u have be en pre - appr oved f or a credi tcar d.” Tha t’s thre e in the l ast m onth . Its eem s that you’ve be en pr e-ap pro ved by y our airl ine, byyour lo cal d epar tment sto re and b y your autom otiv e ass ociat ion fo r a new cre dit car d. T hes e pre -ap prov als c an b e ver y help ful , altho ugh you to ok ou t a new cr edit car d tw o month s ago wi th your lo cal b ank , so yo u’ re not r eally in th e market f or another one. This is a p ret t y f rus tr ating e xp eri ence f or consumers. Y et it’s not u ncommon to receive oer s that do n’t match your financial ne eds at the tim e. A nd fo r markete rs it m eans a miss ed opp or tunit y to hel p mor e peo ple, aswell a s a re duce d ret urn on t heir marketing budget. What many p eop le don’t realis e is that thepl anning fo r a market ing camp aign mayhave st ar ted t hree m onths a go. T he data on w hich yo u were p re -app rove d for acredi t car d can b e mont hs old . That ’s a long tim e when p eo ple want to gr asp n ew opp or tuni tie s quickly and mo ve onto the nex t thin g in the ir live s . We created t he wor ld -firs t A sc end San dbox , a pla tf or m which pr ovi des n ear real- time data ac ces s and enab les s cenar io mo dell ing for mar keting c ampaigns . So i t made se nse for us to t ake the n ex t step an d create a product that enables marketers to activate thos e campai gns in the r eal wor ld, qui ckly and eciently. That ’s why we create d A sc end Mar keting. Using E xp erian’s advanc ed pinnin g techno logy i t combine s the f resh es t credit data avail able w ith n ew data set s , such as pro per ty a ss es sor , dee d and m or tga ge dat a fro m third p ar t ies , as we ll as cu stom er dat a. It then helps marketers segment that information so they can bet ter understand their cu stom ers an d find tho se wh o might ben efit f rom a cr edit o er . It s pow er f ul Audie nce En gine is pur po se - built for a dvan ced c ampaign mana gem ent. Itenable s marke ters to ap ply their cr eati vit y, tailor me ssa ging and l aunch cros s- channel campai gns. T hey c an as ses s wh ether par ti cular c ampaign s res onate wi th consum ers , make any ne ces sar y adjust ment s, an d measur e their r etur n oninve stm ent . A s a one -s top shop i t has comp letely change d the mar keting gam e. B y rem ovin g the de lays in g et ting a c ampaign into pro duc tion , such a s time sp ent on third -p ar t y a genci es , as wel l as on dat a transmis sion, ag gregation an d proc essin g, we’ve taken a p roc es s that p rev ious ly took 60 to 90 days an d bro ught it do wn to jus t seve n days. T his is a signi fica nt oper ati onal improvement for marketers, helping them redu ce cos t s, f ree up r es ourc es, dr iv e higher co nversi on and quickly r esp ond toex ter nal event s . Th e cons umer ex per ien ce has n ow improved from receiving outdated oers torec eiv ing on es wh ich are mo re re levant . Comp anies ar e now able to ke ep pa ce withtheir customers, b etter matching theco mpany 's oer s to the c usto mer s' chang ing needs. 39 Experian plc Annual Report 2022 Strategic repor t Focused expansion across: Health Automotive Mor tgage V erific ation and Employment Serv ices Data is now c ritical to the s uccess of most businesses, and theapplicabi lit y of da ta anal ysis and big d ata tools are broader than eve r . We are focused on further penetrating the Hea lth, Automo tive and Mor tgage vertical s, while further build ing our position i n the V er ification and E mploymen t Ser vices area. In Heal th, our ambit ion is to remo ve fric tion from the curren t customer journey su rrounding the wa y patients pay for healt hcare in the U SA . T he experience for patien ts is of ten fill ed with man ual ste ps and paper work, which can lead t o confusion around a consu mer's elig ibility for insurance coverage as well aspayment accou ntabi lit y . Our strategy in th is area is t o digi tise the customer jou rney , using both our cu rrent data ca pabilities and new in novations. We h ave conti nued to develo p our presence in the V erification and Empl oyment Services area. Lenders, governments, landl ords and bac kgr ound screeners a round the world a re relying more on i ncome and employmen t data as part of their risk - decision ing processes. We h ave establis hed a solid base in emplo yer ser vices in the U SA which i n turn enabl es us to access emplo yment records for specified and conse nted use cases. W e will cont inue to extend the n umber of records we hold as well as establish ing new capa bilities i n some of our ot her geographies. Our vis ion in Aut omotive is to powe r ever y decision needed to be made by ma nufacturers, dealers, lenders and consumers al ong the journey of buyi ng, selling an d owning a ca r . T o do this we are investi ng in in novation whic h will help ou r customers find the right cust omer at the right t ime throug h the right c hanne l, and mat ch vehic les and customers to t he optima l financ ing oer , whil e preventi ng fraud. We wi ll also enhance ou r capabi lities toreduce risk i n lendi ng through ou r decisi oning platforms andprovide trans parency around the va lue of a veh icle. Our stra tegy contin ued Our grow th initiative s Expanding in new gr owthmark ets Experian plc Strategic r eport 40 T aking the pain out ofthelendingpr ocess Buy ing a ho me is on e of the bi gge st financial decisions co nsumers will make in their l ifet ime. O ur goal is tomake it as smo oth as p os sible. Wedevelo pe d E xp er ian Verif y to h elp take th e pain ou tofthe le nding p ro ces s, making it simp ler , fa ster and b et ter forev er y one . Michele Bodda President, Exper ian Mortgage, Ver ifi c a ti o n S o l u ti o n s a n d Emp loye rS er v ice s Many of our exp er ienc es onl ine are simp le and se amles s. B ook ing a fl ight, or der ing groc eri es , arr anging a d oc tor’s appoint ment – all tak ing just minu tes w ith a few s wip es and a click of a b ut ton . Y et wh en it co mes to o btainin g a mor tgage , itcan b e a much m ore p ainful p roc es s. T y pic ally, you have to prov ide m ultiple payslips or bank statements to verif y your incom e and pr ove tha t you ca n aor d to make repa yment s on t he loan . It’s not only time co nsuming f or th e consum er , b ut it 's cos tly for th e lend er who t hen manually validates that in formation with the employer . For con sumer s, a co mplex an d str es sf ul appli cati on pro ce ss c an als o lea d to application ab andonment. We create d E xpe rian Veri f y to take th e painou t of the le nding p roc es s for b oth consum ers an d busin es ses . Using E xpe rian’s unique data as set s coup led witht hird -par t y data fr om so me of th e lar ges t pa yro ll pr ovi der s in the US A , alend er can v eri f y a co nsume r’s income andemploy ment s tatu s in millise con ds, allpe rmis sione d by the c onsum er . Our pa yro ll data is r efr esh ed ev er y p ay cy cle to ensur e lende rs have th e late st an d mos t up -to - date view of a c onsum er’s financial stab ilit y. Lende rs c an manage th eir risk aswel l as rea ch out an d supp or t peop le whomay b e exp er iencin g incom e distr es s. For lend ers i t’s als o an eas y ad d- on totheirle nding w ork flo w thro ugh our str aightf or ward ap plication p rogr amming inte r face. Our incr easing c over age of t he marke t means t hat mo re pe op le in the US A can n ow ben efit f rom fa ster de cision s and lend ers can make b et ter , m ore info rm ed de cisions . And f or tho se co nsumer s wi th limite d cre dit histor ie s, it m eans that le nder s can hav e bet te r visibil it y into the ir emplo yme nt stab ilit y. For example , if som eon e has athincre dit file bu t has had a s tabl e job atthes ame co mpany for ten y ears , then thatad ditio nal infor matio n create s a mor e comple te pic ture of a co nsumer ’s financial situation, and cr ucially enables len ders tosay ‘ye s’ more of ten, and to mo re customers. 41 Experian plc Annual Report 2022 Strategic repor t One Experian Innovation Diversification Scale EME A Asia Pacific Spanish Latin Am erica Operating efficiency Our strategy for thi s growth initi ative is t o focus on specific count ries where we feel we have the right bl ueprint for Experian to succeed. These are coun tries where t ypically we h ave a large footprin t, access to both positive and negat ive credit data or alarge economicall y-active population. In EMEA / A sia Pacific s pecifically , we are focusi ng on the strategic mark ets where we can take adva ntage of sca le, all owing us t o better address oppor tunities, and en hance g row th and profitability . We will conti nue to streamline ou r geographic and operational foo tprint where we lac k a path to scal e. We a re steadil y buil ding ou r position i n the mark ets we ser ve across Spa nish Lati n America. Business in t his region h as traditiona lly been conducted face-to -face because there is agreat em phasis on bu ild ing trusted, working relat ionshi ps. Thiscul ture was slo wly shifting to d igital before the COVID- 1 9 pandemic, but the s hif t accelerated out of necessity as people stayed home during lock downs and phys ical shopfronts were closed. W e see an oppor tunit y to su ppor t our B2B clie nts on their transformation journey as they star t to oer thei r customers more through on line ch annels. We are su ppor ting t hem by investi ng in new solut ions, as well as providing the m with int egrated solut ions across our en tire range of se r vices . Helping them to ma ke better customer decisions wit h our decision ing engines, rapidl y deploy thei r prop ositions with the aid o f our cloud solutions, and helpi ng them to prevent and det ect fr aud qu ickly so they can focus t heir resou rces to other a reas. Our stra tegy contin ued Our grow th initiative s Driving to sc ale in oursmaller r egions Experian plc Strategic r eport 42 eSc ala h elp ed m e trans for m our tra ditio nal credi t ori gination m od el to adigit al for mat. N ow we r each m ore custo mer s and se e an opp or tunit y tocontinu e to grow eve n more af ter thetim es of r apid chang e we’ve livedthroug h. Medium-sized retailer in Colombia For many count rie s the C OV ID - 1 9 pand emic caus ed n ot only a s ever e publ ic healt h emer gen cy b ut al so e cono mic re ce ssio n as lockdow ns wer e impos ed, w ith bu sines se s closing th eir doo rs and p eo ple s tayin g athom e. In Colo mbia, w here t her e is social in equal it y in term s of incom e and la ck of intern et acc ess in c er t ain areas , the u se of th e intern et was s een as an e litis t ac tiv it y intheer a be for e the p ande mic. But th e intern et be cam e an impo r tant to ol durin g the pan demi c for b oth busin es se s and pe opl e. It he lpe d pe opl e to stay conne cte d, to wo rk , shop onl ine and stayinc onta ct w ith fr ien ds and family viaso cial media . Busine ss es had to qui ckly adapt and s tar t sell ing onl ine, o r risk losin g cus tomer s andsale s to comp etito rs wh o had alr ead y es tabl ishe d a digita l pre sen ce. In e ec t th e pand emic ac celer ate d the shif t to digital . Suppo r tin g busine ss es to auto mate and digitis e their p roc es se s is a fun damental par t of w hat we do. In C olomb ia, Da taCr édi to E xpe rian is he lping i t s client s mov e to digital and to be t ter ser ve con sumer s onlin e wit h new inno vati ve pro duc t s such as e Sc ala . eSc ala is a uni que, s calab le pla t for m that supp or t s cre dit or iginati on for b usine sse s . Ittake s just o ne to t wo mo nths to impl ement and wor ks a s a bran ded mi crosite to w hich a cus tomer is t aken w hen bu yin g a pro duc t fro m a busine ss’s main page. T he re, a custo mer c an apply fo r cred it and re cei ve areal-t ime re spo nse to th eir appl icat ion. Inthe ba ckgroun d E xp erian’s data, decisioning engine, identity validation and fr aud pr event ion s oluti ons wo rk to p roc es s and analys e the app lic ation (b ase d on th e busine ss's own risk p aram eter s), and prevent fraud. For the c onsum er ther e are no qu eue s, ther e are no app ointm ent s. T hey c an apply when ever t hey want an d wher ever t hey are . Th e credi t applic atio n pro ces s is seamle ss , help ing to cre ate a be tt er exp er ienc e for them when interacting with a business. For busin es se s the us e of data and techno log y in this way he lps to take t hem tothe ne x t level . It h elps r edu ce cos t s by realising op erational ecien cies and fr ees up res our ces to w ork o n othe r proj ec t s. Itop ens up ne w channel s for s ell ing. Andi tpro mote s custo mer loy alt y, hel ping toprov ide b usines se s wit h a comp etiti ve adv antag e in the mar ket. Supporting the journey to digital 43 Experian plc Annual Report 2022 Strategic repor t Our stra tegy contin ued Positive data Business diversification into new ver ticals Decisioning, frau d and analy tics Consumer Serv ices The advent of posit ive data aggreg ation in Braz il has ca talysed the ma rket and th e scale of th e addressable opportunit y . Weh aveestablis hed a leadershi p position i n positive d ata propositions and see considerable pot enti al to gro w our marke t footprin t by combini ng our deep data exper tise with new datase ts , securing wider ma rket adoption o f Serasa Score, aswell as of ou r advanced plat forms such as Exp erian Ascend and cloud-enabled deci sioni ng. We ha ve also star ted to d iversif y our B2 B op erations throug h entr y int o new ver tical segmen ts such as ag ribusi ness. Our strategy for Consume r Ser vices is to conti nue to g row our membershi p base and to pro vide more features which he lp individ uals to im prove thei r finan cial s ituat ion. We wi ll enrich the features with in our exi sting oers, such as credit a nd identity monitori ng, grow our c redit comparison mark etplace, and we will int roduce new innova tions to help people to tak e greate r control of thei r fina ncia l lives. Our grow th initiative s Capitalising on a uniquemark et opportunity in Br azil Experian plc Strategic r eport 44 Th e grow th of t he digit al ec onomy ha s acc eler ated in th e pas t fiv e year s, an d Braz il is no excep tion . E xte nsive r egul ator y r efor m in Bra zil in the are as of po siti ve data aggregation, Data Protection, Open Finance and Ins tant Pay ment s is makin g more da ta availab le. Wh en this is co uple d with alterna tive dat a sour ce s, it cr eate s new opp or t unitie s for F in T echs to d evis e new solutions to social and economic problems. Fin T echs ar e of ten st ar ted b y small group s of pe ople w ith a r eally go od id ea. Run o n a shoe st ring , the re isn’t the mo ney init ially for exp ensi ve oc es or hi gh fixe d cos ts . T hey are us ed to wor kin g swi f tly, want simple solu tion s which m eet t heir ne eds , and t hey look fo r par t ners w ho are sup er-re spon sive and flexible. We are foc use d on und ers tan ding th e nee ds of the Fi n T e ch se c tor . We se ek to und ers tan d their p ain point s an d the op por tunitie s the y are ex plor ing. We have e xpan ded th e ran ge of solu tion s we oe r thro ugh AP Is¹ , prov ide alterna tive dat a and are fl exib le in our appro ach. T his sup por ts th e Fin T ech communit y so they c an sc ale their busi nesses suc cessfull y . Fin T echs such as Agrolend, a star t-up thatspe cialis es in conn ec ting small- to medium -size d far mer s with cr edit to c over the co st of far m supp lie s and machin er y, som ething t hat isn’t readily avail able v ia tra ditional b anks . Agro lend have de velop ed a compl etely digit al oe ring f or far mer s , whe re far me rs c an purc hase s uppli es oncre dit. We combine o ur data , which in clude s posi tive an d agr icultur al pro duc tio n data, with o ur cut tin g- e dge a gri cultur al solu tion s and exp er t ise in cre dit analysis an d risk managem ent. T his me ans that Agr olen d canin tur n o er an agile , se cure and uncomp lica ted cre dit pro vision s er v ice tofar mer s. This p rovi des ac ces s to cre dit at cr itic al mome nts . It p rovi des l iquidit y an d hel ps the far ming se c tor to ado pt new te chnolo gies , bo ost cr op pro duc ti vit y an d expan d into new crops . B y wor king to get her wi th the F in T ech communi t y we’ re o penin g up new f ronti ers for len ding and p avin g the way to cr edi t for thos e wh o nee d it . Opening up new fr ontiers forlending Relyin g on Ser as a E xp erian's solu tions has be en cr ucial . It he lpe d us to gain market tr ac tion and e nabled u s toconn ec t wit h our audi enc es: agr icultur al pro duc ers w ho, unt il then , had li t tle acc es s to cre dit. We we re ableto quickly de velop a simpl e digital pla tf or m powe re d by rel iable data . Inturn , this pr ovi ded a cce ss to cre dit atao rdable r ates to t he agr icult ural producers and attr active customers for the cre dit gr anters . A win -win f or all . André Glezer CEO of Agrolend 1 AP I s tan ds f or A ppl ic at ion P ro gr amm ing In ter fac e, whi ch is a s et o f def ini ti ons a nd pr oto c ol s fo r bui ldin g and i nte gra tin g ap pli ca tio n so f t wa re . 2 So urc e: US DA , Br azi lian E con omi c and A gr ic ultu ral Ov er vie w rep or t, 9 Fe br uar y 2022. 27 % ² Brazil ’s GDP from agriculture 45 Experian plc Annual Report 2022 Strategic repor t Sustaina ble business Highlights in F Y22 We ’ re helping people to thrive, at ever y stage of their fi nanci al journey , by empowering them to m ake the most of the ir da ta totransform their lives. Buil ding trust throug h our strong focus on En vironme ntal, Soci aland Govern ance (ESG ) risks and oppor tunit ies is critical toreali sing th is ambit ion, growi ng our busi ness and fulfilli ng ourpurpose of c reating a better tomorrow . Our Gl obal Data Pr inciples Our Glo bal Dat a Pr inciple s emb od y five keyvalue s: s ecur it y, accur ac y, fairne ss , transp aren cy and in clusion . The y build on o ur prev ious G lobal Inf orma tion Values to gui de how we mana ge and us e data , build p rod uc ts and con duc t our bu sines s aroun d the wo rld . 82 million Our so cial innov ation p ro duc ts have r each ed 82 millio n pe ople sin ce 201 3 – kee ping us o n tra ck to me et our go al of 1 0 0 milli on by 2025 – and gen era ted US$1 62m in reve nue. Gre at Place t o W ork We have be en cer tifie d wit h Great P la ce to Work s tat us in 20 countr ie s in our fir st ye ar par t icipat ing. 87 mill ion We have conne cte d wit h 87 million p eop le since 2 020 th rough our United for Fi nancia l Health programme, su ppor ting diverse communitie s through financial e ducation par tnerships with over a do zen NGOs acro ssour r egio ns . We are on tr ack to mee tour tar get of100 million by 2024. 44 % We have cut our S cop e 1 and 2 mar ket-ba sed emissi ons by4 4% since 201 9 o n the way toour1 .5°C-aligne d scie nce -b ase d tar get of 50% by2030, an d are o set t ing 40% ofo ur remaining F Y22 Sco pe 1 and 2 e missio ns. We engaged with suppliers to better understand and re duce our S cop e 3 emis sions , and ear ne d apla ce on t he 2021 CDP Supp lie r Engag eme nt Lea der bo ard af ter o btainin g an‘ A ’Suppl ier Engag ement Ra ting . We are curr ently lo okin g to fur ther our amb ition s towar ds net zer o. Envir onmental, social and governance A s par t of our Uni ted f or Finan cial He alth pr ogr amm e wepar tner ed w ith Gr ammy Award- winning r eco rding ar tist Le cra e to cre ate a You T ub e ser ie s on financial education that rea che d ove r 1 0 mill ion p eo ple . Scan me to watch L ec ra e’s Protect The Bag Experian plc Strategic r eport 46 Our sustainab le business s trateg y Our goals 1 Inc lu de s al l Sc op e 1 an d 2 em is sio ns , a s wel l as S co p e 3 emi ss io ns f ro m Pu rc has e d Go o ds an d S er v ic es , B usi ne s s T ra ve l, a nd Fu el -a nd - en er gy - re la te d ac ti vi ti es ( wh ich r ep re s ent 8 3% o f our b as el in e emi ss io ns in S c op e 3). T hisi sal ign ed w i th th e b oun da ri es c ov er ed b y ou r sc ien ce - b as ed t ar ge t ap pr ove d by t he S ci en ce B as e d T a r ge t ini ti ati ve . O nc e emi ss io n re du c tio ns h ave b e en a chi ev ed i n li ne w it h our s ci en ce - ba se d t ar ge t, E x pe r ian w il l o se t th e re mai nin g em is si ons w i thi n th e bo un dar ie s of o ur s ci en ce - ba se d t arg et t o ac hie ve c ar b on n eu tr al it y b y 203 0. 2 Al s o kn ow n as ‘ wel l- to -t an k ’, is an a ver a ge of a ll t he g re en ho us e gas e mi ss ion s r ele as e d into t he a tm os ph er e fr om t he p ro du c tio n , pr oc es si ng a nd d el iv er y o f a fu el o r en er gy. Financial heal th a Re ach 1 00 mil lion p eo ple thr oug h so cialinnov ation p ro duc ts b y 2025 (sta r tingf rom 201 3) a C onn ec t wi th 1 0 0 millio n pe opl e throu gh our Uni ted f or Finan cial He alth pro gr amme by2024 (sta r ting f rom 2020) ENABLED BY T reating data with resp e c t SUPPORT ED BY Wor ki n g with integr it y Se e pa ge 62 Inspir ing and supporting our people Se e pa ge 5 6 Protecting the environment Se e pa ge 6 4 Co ntr ib uti ng to th e UN S ust ain abl e De velo pm ent G oa ls 1. 4 8.10 9.3 OUR PURPOSE Cr ea t ing a be tte r t omorr o w for c ons ume rs , our c lie nt s, o ur pe op le an d co mmu niti es OUR SUST AINABL E BUSINESS STRA TEGIC PRIORIT Y Im pro ving fi na nci al he al th fo r al l through our Accuracy Se e pa ge 52 Fa i r n es s Se e pa ge 5 3 T ransparency Se e pa ge 5 3 Inclusion Se e pa ge 5 4 Secu rity Se e pa ge 5 0 Cor e products Se e pa ge 49 So cial innovation Se e pa ge 49 Com mun ity investm ent Se e pa ge 49 Diversi ty a In creas e the pr opo r tion of w omen in o ur execu tive co mmit tee an d dire ct r epor ts to30%, in ou r senio r lead ers to 4 0%, in ourmid - leve l lead ers to 42% a nd in our totalwo rk for ce to 47%, by 2024 Environm ent a B ec ome c arb on n eutr al in our ownop er ations b y 2030¹ – Science-base d target: – Scope 1 a nd 2 (1 .5º C sc enar io): Red uce abso lute S cope 1 a nd 2 emis sions b y 50% by 2030 (fr om 201 9) – Scope 3 (2 º C sc enar io): Red uce S cop e 3 emissi ons fr om Pur chase d Go ods an d Ser vice s, Bu sines s T r avel , andFuel-a nd- ener gy -re late d ac tiv itie s² by1 5% by 2030 (fr o m 201 9) a O set 100% of our Sco pe 1 an d 2 emissi ons by 202 5 ¹ 47 Experian plc Annual Report 2022 Strategic repor t Sustaina ble business contin ued Our prio rities Our sus tainabl e busine ss s tra teg y is infor med by an ass es sment of o ur mos t mater ial ES G issu es , base d on co nsulta tion wi th se nior leaders who represent dierent functions andre gion s acro ss th e busine ss . Regul ar engagement with investors and other stake hold ers h elps u s refin e our pr ior itie s . Se epag es 22-2 5 for m ore o n how we e ngag e with an d create v alue fo r our st akehol der s. We can ad d the mo st v alue to so ciet y b y improv ing financial h ealth for al l, and w e have made this o ur sust ainable b usines s str ate gic pri ori t y. Helping p eop le improv e their financial health en ables t hem to ge t faire r acce ss to credi t and the e ss ential s th ey nee d to tran sfo rm th eir li ves – f rom hav ing a ho me or buildin g their b usine ss to pay ing f or edu cat ion and healt hcar e. T his in tur n dri ves s ocial and economic development, contributing to three of the Unite d Natio ns Sus tainable D evelo pment Goal s , which in clude h elpin g to lif t peop le outof p over ty (as o utlin ed o n the r ight of thispa ge). Our fo cus on impr ovin g financial healt h als o supp or t s the lo ng -ter m succ es s of our busine ss b y str engt hening o ur rep uta tion and stakeholder relationships, driv ing innovation, gener atin g new rev enue st reams , and cre ating potent ial new co nsume rs fo r us and our cl ient s by increasing finan cial inclusion. Del iver ing th es e posi tive imp ac ts f or so ciet y and our b usines s dep end s on our abil it y to acce ss an d use dat a fro m indiv idual s and businesses around the world. T r eating that data wi th re spe ct is e ss ential to maint ain tr ust (se e page 5 0) – and failur e to keep it s ec ure is one of ou r bigg es t busine ss an d ES G risk s (se epage 71 ). One of o ur cor e bel iefs is t hat how we w ork is as impo r tant as w hat we do, an d our s tra tegy is built on a s tro ng cultur e of cor po rat e resp onsib ilit y. We aim to inspire and supp or t We align our sus tainab le busin ess f ocu s with the Unite d Natio ns Sust ainable D evelop ment Goal s . Thr ough an e xte nsive r evi ew of the Sust ainable D evelop ment G oal s in 2020, weide ntifie d thr ee sp eci fic tar get s w here w e can make th e mos t meanin gful c ontr ibut ion thro ugh our s tra tegic p rio rit y to improve financial health. We als o contr ibu te to seve ral of th e othe r Sustainable D evelopment G oal s, for example throu gh our co mmitme nts to imp rove di ver sit y and inclusio n (se e page 5 6), tackle mode rn slaver y (see pa ge 63) and re duce cl imate impacts (see page 64) . our pe opl e by embr acing an d deve loping diver se t alent, an d creat ing an inclusi ve wor king env ironm ent (se e page 5 6). W e are commit te d to wor king w ith inte grit y (see pa ge 62), and we str ive to d o our par t to prote ct theenv ironm ent and ta ckle climate chang e (se e page 6 4). This r esp onsible c ulture al s o help s us recr uit and ret ain pe ople w ith th e exp er tis e and exp er ienc e we ne ed to gro w our busin es s andme et our su stainab le busin ess g oal s. Contr ibuting to the Unite d Nations Sustainab le Developm ent Goal s Ex ter nal recognition in F Y22 T arget 1 .4: By 2030, ensure that all men and w omen , in par ticula r the po or and th e vuln erab le, have e qual right s to e cono mic re so urce s, a s well as acc es s to appr opr iate new techno logy an d finan cial ser vices , includ ing mic rofinance. T arget 8. 10: Strengthen the capa cit y of dom es tic finan cial inst itut ions to en cour age an d exp and access to ba nking, i nsurance a nd financial s er v ice s for all . Ta r g e t 9. 3 : Increase the access ofsmall-s cale indu str ial and othe r ent erprises, i n particu lar in develo ping co untri es , to financial ser vice s, inclu ding af fo rdable cr edit . Business Intelligence Gr oup: Exp er i an was r eco gnis ed as a 2022 B IG Inn ova tion Award wi nner for delivering innovative pro du ct s , such a s E xp er ian B oos t , that help consumer s thrive financially For tu ne: E x per ian is in clude d in For t une’s ‘Chan ge th e Wor ld’ l ist 2021 whi ch hon our s companies ad dres sing societ y’s unmet needs MSCI: ‘ A ’ rat ing fo r ES G inve st ment r isk Sustainalytics: E xp er ian was r eco gnis ed as a top E SG p er f or mer w ith a Re gion al T o p -Rat ed B adg e awar d, b as ed on o ur LowRi sk sc ore of 1 1.6 for inve sto rs CDP Supplier Eng agement Rating ( SER): ‘ A’ rating . E xp er ian was r ec ogni se d as a Supp lier E ngag eme nt Lea der in t he 2021 CDP Supplier Engagement Leaderboard – the to p 8% of com pani es w ho co mple ted the f ull cl imate que st ionnair e in 2021 Financial Times: Ex pe rian w as id enti fie d as one o f Europ e’s Climate Le ade rs 2022 by th e Finan cial T ime s and St ati st a FTS E4G oo d: E x per ian has b e en amem ber of the F TSE4G oo d E SG in dex sin ce 201 2 CD P Cli mate C han ge: ‘B’ score Gre at Pl ace t o Work : Ce r ti fie d as a Gr eat Pl ace to Wo rk in 20c ountr ie s (s ee p age 57 for more employer awards) Experian plc Strategic r eport 48 Our pr oduc t s and pro gramm es are al rea dy improvin g financial inclusion and finan cial health f or millio ns of pe opl e around t he wor ld. We see gr eat p otential to h elp mo re pe op le thri ve on th eir financial jo urn eys . Doin g so wil l help u s grow our b usine ss and t he value w e create fo r so ciet y. We aim to improve th e financial he alth of pe ople a cros s the glo be thr ough o ur cor e product s, Social Innovation programme and communi t y inves tment ini tiati ves . We als o channel innova tion for financial health thr ough our Dat aLa bs and our glo bal hackat hons . Se eour Impr ovin g Financial H ealth Rep or t form ore . Core prod ucts Thr ough o ur data and analy tics , we giv e lenders the information they need to oer more lo ans at fair er ra tes . This in tur n enable s pe ople to impr ove th eir financial he alth. Cor e pro duc t s like E x per ian B oos t can h elp consum er s enhance t heir cre dit s core s by addin g posi tiv e data – such a s on -time paym ent s fr om util it y bill s or s tr eaming ser vice s – to the ir pro files . In th e USA , 72 millio n point s have b een a dde d to E xp erian memb ers’ credi t scor es thr ough E xp erian Bo ost o ver th e las t thr ee ye ars . T his year , we help ed 4 0,00 0 cons umer s build n ew cre dit profil es fo llowin g the l aunch of E x per ian Go (se e page 55) an d we are de velopin g Th e Buy Now Pay L ate r Bure au to hel p mor e US consum er s with n o or thin cre dit file s gain acc ess to f air , a ordab le financial se r vi ces . A s well as e mpow erin g cons umer s to improv e their s core s dire ct ly , we have al so co ntinue d wor king w ith len ders to imp rove finan cial inclusio n thro ugh pro duc t s like E x per ian Li f t that do no t rely on main str eam cre dit dat a alone. B y comb ining ad vanc ed analy tic s , addi tional Fair Credi t Repo r tin g Act- regul ate d datas et s and machin e learnin g, L if t Pr emium enable s lende rs to enhan ce the a ccur ac y of cred it ri sk sco res f or 96 % of US a dult s, w ith th e potent ial to sco re 65% of ‘credit inv isible s’ . In the UK , m ore than 14,000 con sumer s wer e able to acc es s loans the y would oth er w ise profi le for th e firs t time . In the US A , our so cial innovation hea lthcare products have reac hed mor e than eight mill ion p eop le to date and o ur So cial Media In sights hav e help ed m ore than 2.6 millio n small busine ss es , allowin g many toqualif y f or be t ter insur anc e term s by using alterna tive dat a po ints su ch as st ron g social media engageme nt. This ye ar , we inve ste d in the d evelop ment of three new social innovation products that aim to prov ide cr edit s cor es to milli ons of cons umer s in A sia Pacifi c for th e firs t time; empower vulnerable consumers in the UK; and enable b et ter acc es s to credi t for smallh olde rs in Brazil . Communit y investment Our tot al contr ibu tions r eac hed US$1 5. 9m t his year . T his is the fir s t time we have sur pa sse d our goal of 1 % of B enchmar k pr ofit b efor e tax(P BT ), and o ur intention in f ut ure yea rs istomaintain this pr opo r tio nate leve l of contr ibut ions to b enefi t the c ommuniti es inwhich we o per ate. Our employe es vo lunteere d 25,000 h ours of their tim e (in and ou t side wor kin g hour s) to help th eir communi tie s, de spite C OVI D- 1 9 res tr ict ions co ntinuing to limi t opp or t unitie s for fa ce -to -fa ce voluntee ring . This y ear , we c ontinue d our Uni ted f or Financ ial Health p ar tn ership s to prov ide t arge ted financial educ ation – for micro entrepr eneurs in Braz il, yo ung p eop le in the UK an d Irel and, and marginal ise d communit ies in th e USA – includin g a Y o u T ub e ser ie s hos ted by Gr ammy Award- winning r ecor ding ar tist Le cra e that rea ched o ver 1 0 millio n pe ople . We als o expa nde d United f or Financ ial Health into EME A , w ith ne w par t ner ships that f ocu s on reac hing cre dit invisib les in It aly and small busine ss es in S out h Afr ic a. have be en de cline d for in a t rial this y ear of our new to olk it to hel p lend ers i denti f y and sup por t vulnerable consumers. World wid e, 1 3 4 milli on con sumer s use o ur fre e pl at for ms to ac ces s pr oduc t s and ser vices that can help them u nders tand and manage th eir cre dit pro files . Our co nsume r ser vice s als o help in divi dual s spot p otentially fr audulent tr ans act ions in th eir cre dit pro files , and we o er a ra nge of s oluti ons to he lp lende rs and o ther cl ient s prev ent fr aud. T his year , o ur cor e fr aud an d identi t y the f t pro duc t s are es timate d to have pre vented a t leas t US$ 1 1 bn in f rau d for our cl ient s, an d acro ss the Gr oup fr aud an d ide ntit y pr odu ct s gene rate d 1 1 % of o ur busine ss r evenue . Soci al in nov ati on Our so cial innov ation p ro duc ts , spe cifi cally designe d to oer ad ditional so cietal ben efit s aswell a s gen erat ing re venue f or our busine ss , re ache d a fur ther 21 millio n pe ople this year . Th ey have re ache d 82 milli on pe opl e to date, we ll on our w ay to our ta rge t of 1 0 0 millio n by 2025. Since 201 3, th es e pro duc t s have gen erate d US$1 62m in revenu e fro m atotal inve st ment of ove r US$9m. T wo of t he ear lie st s ocial inno vatio n pro duc t s we funded conti nue to deliver significant impac t. In B razil , th e Limpa N ome d ebt rec over y por t al has enab led 32 mill ion p eop le to wr ite o mo re than US$1 4bn wo r th of de bt s to date. In India , Pro ve ID -L ink is de signe d to help finan cially exclude d pe ople to v eri f y their ident it y. It has reac hed 25 mill ion p eop le since launch an d has now b ee n integr ated into o ur mainstream CrossCor e identity authentication platfor m. In A sia Pacifi c, P ower Sc ore has s uppo r ted more t han five mil lion app lic ation s for cre dit pro duc t s, sinc e it s laun ch in Indo nesia l as t year , b y givin g million s of pe ople a cr edit Impro ving financ ial hea lth for a ll Our fl agship Unite d for F inancial He alth pro gramm e has conn ec ted wi th over 87 millio n pe ople sinc e it la unche d in 2020 and we are on tr ack to m eet o ur tar get of 1 00 mill ion by 2024. Thr ough p ar tn ership s wit h NGO s acro ss our r egio ns, t he pro gr amme is using financial education to empower diverse communities. Our goal i s to help people thrive on their fi nanc ial jou rney by empowering them t o establish a credit iden tit y and bui ld their c redit score, impro ve their fi nanci al literacy and confidence, protect their ide ntity and personal data, and m anage the ir fin ances and debt. Scan me Impr ovin g Financ ial Hea lth Rep or t 49 Experian plc Annual Report 2022 Strategic repor t We are dee ply aware of o ur resp onsib ilit y to trea t data – and t hos e it be longs to – w ith c are and re spe ct . Li ving up to t his resp onsib ilit y is fundam ental to s ecu ring t he tr ust E x per ian dep ends on to e xist , grow an d create a b et ter tomor row. T o do t his, we p rote ct t he dat a we hol d, us e it fair ly and make sur e it’s as acc urate a s pos sible. We are op en abo ut the da ta we co lle ct , how we use it an d who w e share it w ith. A nd w e use data to increas e financial inclusion and h elp pe ople impr ove th eir financial li ves . Our fi ve Glob al Data P rin ciple s embo dy t hes e key value s (se e belo w). They gui de how we manage and u se dat a, buil d pro duc ts an d cond uct o ur busin es s aroun d the wor ld . Wedevelo pe d the p rincip les t his year to b et ter refle c t our commi tment s to indi vidual s , busine ss es , client s and t he pub lic , which havead vance d as marke t demands an d expec tations have evol ved. They build on theGlo bal Infor mati on Values that p rev iously guide d our appr oach . We are in the p roc es s ofembe dding t he new p rin ciples into r eleva nt processe s throughout the busi ness . Secur ity Th e loss or inap prop riate u se of dat a and sys tems c ould re sult in mater ial loss of busine ss , subs tantial le gal liabil it y, regulator y enfor ceme nt act ions an d signific ant harm to our reputation. We in terac t with law enforcement authorities and oth ers in o ur indus tr y to gath er intell igen ce to help o ur se curi t y teams st ay ahea d of evolv ing c ybe r threa ts . We als o share our know led ge to hel p othe r busine ss es an d cons umer s keep th eir data s afe . Our annual Data B reach In dust r y For eca st fo r 2022 highlighted five emerging threats: cy ber attack s on digit al ass et s such as cr yptocur re ncies ; phishing at tempt s dis guise d as charit ies r aising fun ds to supp or t v ic tims of dis aste rs; da ta thieves targeting remote workers; hacking at tack s on phy sical inf ra str uc tur e, such a s electr icit y grids and transpor tation networ ks; and onlin e gambling s cams . Mos t data br each es involv e som e human intera cti on, of ten s ome thing as simpl e as clickin g a link in an email . Our em ail and web browsing controls protect agai nst this kind of malware, an d our se cur it y tr aining enc oura ges pe ople to think c aref ully ab out w hat the y are clicking on. We use a ro bus t identi t y and ac ce ss managem ent pro gramm e to contr ol ac ces s toour cr itic al ass et s. Us er s with p ri vile ge d acc ount s are subj ec t to str ic t cont rol s that include multifactor authen tication, pass word rota tion , se ssion r ec ordin g and mor e fr eque nt access recer tification. Our Development, Secur ity and Oper ations (Dev Se cO ps) teams wo rk to geth er to build Our approach Se curi t y come s firs t at E xp erian . Wecontinually en hance our s ec uri t y infr ast ru ctur e, pr ac tic es and c ulture a cros s the bu sines s. We inve st h eavily in c yb er sec urit y an d have spe cialis t teams , state - of-the -ar t techn olog y and rigor ous duedilig ence p roc edur es to de al with potentialthreats . Our s ecur it y app roa ch has thre e tier s: app lyin g tool s an d pro ces se s to pr event thr eat s fr om entering our environment; detecting if a threat enters o ur enviro nment ; and mitiga ting any threa ts by minimisin g the p otential fo r infor matio n to be ex tr ac te d fro m our environment. We have contr ol s in pla ce to che ck for compl iance and c onst antly sc an for p otential thre ats , wi th se ver al laye rs of pr ote cti on for our dat a ass et s (se e diagr am on ne x t pag e). Our p erim eter defl ec t s many thou sands of attempt s ever y day . Our Global Securit y Oper ations Centre works aroun d the clock to i denti f y suspic ious or malicio us ac tiv it y, with teams in Mal aysia, t he UK and th e USA , as we ll as auto mated to ol s and ar ti ficial intel ligen ce. I f they id entif y a threa t, our in cident r esp ons e team ste ps in toeliminate i t with s uppo r t fr om in -ho use fore nsic dat a spec ialist s an d ex ternal e xp er t s if required. Ex ternal reco gnition T reating data with respec t Ex per ian Global Data Prin ciples Secu rity – Data se cur it y i s cri tic al . Se cur ing an d pr otec ti ng dat a again st unau tho ri se d acc es s, u se, discl osur e and lo ss ar e key pr io ri tie s for u s. Accuracy – We wil l make dat a as ac cur ate, c omp lete a nd re leva nt as p oss ible fo r the m anne r in whic h it is us ed , alway s in com plian ce w ith le gal re quir eme nt s. Fa ir ne ss – We co lle ct a nd us e data f air ly and fo r legi tima te pur po se s, b alan cing p ri vac y ex pe c tat ions wit h the s ocia l and e con omic b en efit s d eri ve d fr om th e res po nsibl e use o f data fo r indi vid ual s, businesses and cl ients. T ransparenc y – We are op en an d tr ansp are nt abo ut t he t y pe s of dat a we co lle ct , wh er e we get i t, h ow it is us ed a nd wh ere i t is shar ed . Wh ere a ppr opr iate w e prov id e indiv idua ls w it h acc es s to the da ta we col lec t ab ou t them a nd th e abil it y to co rr ec t , res tr ic t or d elete da ta . Inclusion – We seek to imp rov e finan cial he alth an d inclus ion fo r all t hrou gh the in nov ati ve us e of rele vant dat a to hel p indiv idual s imp rov e thei r financial l ive s . P wC B uil din g Pub lic Trust Awar d: We were shor tliste d for P wC ’s 202 1 Buildin g Publ ic T r ust Awar d for Cy ber Se curi t y Rep or tin g in re cogni tion of our clear p ubli c rep or t ing on dat a securi ty. Sustaina ble business contin ued Data is at the hea r t of our busi ness. We are en trusted with data on 1 .4billion people and 1 91mi llion businesses worldwide. This year we ha ve developed our Globa l Data Principl es and we will con tinue t o embed this frame work to guide how we m anage a nd use data, buil dproduct s and conduct our bus iness around t he world. Experian plc Strategic r eport 50 securit y considerations into our products throughout thei r lifecycle. We use a range ofpro ces se s, in cluding manual p enet rati on tes ting, to dis cove r , dete ct an d rem ediate anypoten tial se curi t y risk s at eve r y s tag e of pro duc t dev elopm ent – fr om con cept to c oding , build, qual it y as sura nce and p ro duc tion . We conduc t re gular r isk as se ssme nts an d vuln erab ilit y che ck s, and o ur oper atio ns are subje ct to e xte rnal c yb er se cur it y au dit s ever y year . Simul ated e xercis es and a glob al data brea ch plan p repar e our c yb er se cur it y teams and se nior lea der s to resp on d rapi dly in the event of a br each . In the ev ent of a ser io us bre ach, w e would disclos e infor mation ab out t he incid ent and commit to c onta ct any a ec ted da ta subj ec ts ina timely w ay . We do not p ublicly dis clos e vuln erab ilitie s or la pse s due to client sens itiv itie s . T o the e x tent that any re levant regul ator sh ould find f ault wi th our dat a brea ch managem ent and/or data se curi t y pr act ice s, they w ill publ ish their findin gs/sancti ons. T he re were n o such findin gs or sa nc tions in F Y22. Secu rity g ov erna nce Th e Chief Inf orm ation S ec uri t y O cer ha s over all resp onsib ilit y for E x per ian’ s global se curi t y st rate gy an d the G lobal S ec uri t y O ce (GSO) set s rele vant po licie s and s tandar ds. T he Se curi t y and Co ntinuit y Ste erin g Commi tte e – which in clude s the C hief E xec uti ve O cer , Chief F inancial O c er , Chi ef Op era ting O c er and Chief Technolog y O cer – ove rs ees o ur appr oach to ke eping da ta se cur e and protecting consumer information. It reviews key metr ic s on s ecur it y too l s, co mplianc e and training completion rates ever y month. Whe n it is ne ce ssar y to prov ide th ird par ties with a cce ss to o ur data an d sy stem s, th e GSO ensur es we p rov ide a cce ss in l ine wi th our information securit y requirements . We extend str ing ent st andards o n infor matio n se curi t y to our supp lier s and pa r tne rs thr ough th e term s of our co ntra ct s . All thir d par ties mu st un derg o a risk as se ssm ent and any mater ial se cur it y gaps ident ifie d mus t be r eme diate d bef ore th ey b egin wor king w ith E xp er ian. E xis ting thir d par t ies ar e ass es se d per io dically an d we wor k wit h them to dri ve continu ous impr ovem ent s in their s ecur it y pro ce dure s. O f our m ore than 1 3, 1 00 a cti ve thir d par ti es , aroun d 2, 1 0 0 have be en ide ntifie d as signific ant or high r isk and all of t hes e have under gon e mor e in- d epth as sur ance b y the GSO. Se curi t y requir ement s are t iere d bas ed on th is risk as se ssm ent, an d can inclu de incr ease d contr ol s for high er-risk thir d par ties . We monitor com pliance throug h our thi rd-par t y risk mana geme nt fram ewor k and thir d par t ies identi fie d as signifi cant or high r isk are a dde d to the GS O’s continuous m onitor ing pro gramm e which aler ts us to any mater ial change s to tri gger f ollow - up ac tion if n ee ded . This ye ar , we enhan ced o ur risk p rofil ing and vali dat ion p rocesses t o en able an e ven str onge r foc us on highe r-risk thir d par t ies thro ugh our T hird P ar t y S ecur it y pr ogr amme . We als o update d our Risk and C ontr ol Framework, assurance controls and acco mpanyin g tool s and t raining f or relev antteams . Our information se curit y culture At E xpe rian , infor mation s ec urit y is ever yo ne’s resp onsib ilit y. We set out clear r equir ement s for emp loye es and b usine ss uni ts in o ur Se curit y Risk Management an d Gove rnanc e Poli cy. We invest signi ficant t ime and res ourc es in tr aining and aw arene ss . Our s tron g infor matio n se cur it y cultur e st ar t s fro m the top of t he busin es s. S enior le ader s are highly en gage d and co ntinually reinf orc e the me ss ag e that se cur it y is the p er sonal resp onsib ilit y of ev er yo ne wor kin g wit h us. All ou r employ ee s and any cont ra ctor s wh o have acc es s to our sy stem s must c omple te mandator y training o n infor mation s ec uri t y and data p rote cti on – whe n they fir st s tar t wor king w ith us and annual ly ther eaf ter . We track training completion rates weekly and prov ide a m onthly dashb oar d to the S ecur it y and Co ntinuit y Ste ering C ommit te e. More t han 285 trainin g cour ses ar e avail able for p eop le acr oss th e busin es s to find out mor eabou t kee ping info rma tion s afe a cros s var ious we b, mob ile and de sktop p lat fo rm s, appli cati ons and s of t ware . We prov ide addi tional in - dept h trainin g for p eop le wor king in higher-r isk role s, su ch as pro duc t and sof tware development. More th an 45,000 cour se s were in pr ogr ess an d/ or comp leted this year . Th eAudit C ommit te e al so re cei ves up date rep or t s at ea ch of it s me eting s. We continually r evie w and adapt o ur information security programme, tool s, exp er tis e and pr oce ss es to r espo nd to evolv ingthre ats an d maintain ali gnment wi th ex ternal s tandar ds. We have a co mpreh ensiv e Global S ec urit y Polic y and cont rol s ba se d onthe inter natio nally re cognis ed IS O 27001 standard that drives continuous i mprovement. Our ro bus t infor mation s ec uri t y pro gramm e bui lds on i ndust r y-recogn ised p rocedu res. We are commit te d to lead t he indus tr y o n infor matio n se curi t y. W e se ek and r ece ive third -p ar t y as sur ance t hrou gh ISO 27001 cer t ific ation s of key busin es s areas an d sys tems , as well a s other r eco gnise d ex ternal accre dit ations of o ur se curi t y progr amme s. For examp le, we ho ld a Cy ber E ss ential s Cer tific ation an d per form r isk as se ssme nts against our cr itical an d ex ternal-fa cing applications annually. Se curi t y , Audit an d Risk teams wo rk to gethe r to continual ly improv e our as suran ce capa biliti es and te st t he e ec tive nes s of our contr ol s. O ur T hre e Lin es of D efen ce mo del forr isk managem ent (se e pag e 86) include s rev iew by Glob al Inter nal Audit an d over sight fro m the B oard . Any p otential p olic y br eache s are tho rou ghly inves tigate d and we t ake disci plinary action where appropriat e. Th e GSO co nduc t s due dilig ence to i denti f y anypotent ial risk s bef ore an ac quisitio n, follow ed by an in - dept h pos t-acquisiti on se curi t y ass es sment t hat is rev iewe d by GlobalInte rnal Au dit. Protec ting our p er imeter We have a defen ce -in - dep th appr oach to p rote ctin g our cr itic al data a sse ts , whi ch prov ide s multiple l ayer s of contr ol and p rote cti on. Perimeter scanning Scanning the perimeter for open access and scanning applications for regulator y compliance Firewall Blocks u nauthorise d access whi le permit ting outward communication Intrusion Pr evention Sys tem (IPS) and prevent vulnerabilit y exploitation Web Application Firewall (W AF) Filters, monitors, and blocks HT TP Examines network traffic flows to detect traffic to and from web applications Ser ver protection Antivirus, host security, continuous reporting 51 Experian plc Annual Report 2022 Strategic repor t We rout inely re fre sh our t raining to s tay up to date wit h evolv ing risk s and cir cums tanc es . We als o condu ct r egula r outr each pro gramm es on a v arie t y of infor matio n se curi t y topic s to make sure p eop le are awar e of emerging threats . The se include simulations of secur it y incid ents . Promoting vigilance ag ainst ph ishing attacks remains a p rio ri t y . T his year , w e ran mo nthly phishing awaren ess c ampaigns an d ever y employ ee and c ontr ac tor unde r went at l eas t four phishin g simulat ion exercis es to te st th eir resp ons e. Sta consis tently exc ee ded in dustr y benc hmark s on phishing te st pa ss ra tes and the se me tric s are r ep or te d to our Se cur it y and Cont inuit y Steer ing C ommit te e. If anyo ne fail s a phishing te st , their mana ger is infor me d and they mus t comp lete mandator y additi onal training . We fur th er re inforc ed s ecur it y m es sag es and pro ced ures a s the co nflic t in Ukr aine to ok hol d, intro ducing h eightene d sc anning of email s , expa nding our p hishing simul ation pr ogr amme and aler ting all emp loyee s to be w ar y of fa ke donation site s and phishing at ta cks . Accuracy Accur ate cre dit r epor ts enab le lend ers to gi ve pe ople f airer ac ces s to cre dit and e ss ential ser vice s to impro ve their l ive s (se e pag e 30). Any inac cura cies in cr edi t rep or t s – and th e data th ey are b uilt on – can c aus e pro blem s forco nsume rs , and p otentially d eny the m fair acce ss to cr edit an d ser vice s. We under stan d how imp or t ant this issu e is for consum ers , and p lac e accur ac y at the h ear t ofour Glob al Dat a Prin ciple s, wh ich guide o ur approach wherever we operate. Data accuracy prin ciple s are al so b eing w rit te n into the dat a prote ct ion re gula tions of many c ountr ies in which w e op erat e. We will make data a s accur ate, c omplete an d rele vant as p oss ible fo r the way i t is use d, always in co mplianc e with le gal re quireme nts . We cons tantly s tr ive to imp rove th e acc ura cy of our data in a c ompe titi ve mar ket to ensur e our clie nts c an alway s rely on i t to make the most appropriate decisi ons. In the US A , we manage t he ac cura cy of da ta fro m aroun d 1 2,00 0 prov ide rs . Ever y m onth , we re ceiv e around 3 4,0 00 submis sions f rom data pr ovi der s, and up date aro und 1 .3 bil lion rec ord s – 98% wit hin 24 hours . We are innovating t o continuously i mprove our d ata integr it y and f ocus o n targ eted chan ges tha t dri ve eve n bet te r accur ac y fo r US cons umer s. Emp ower ing con sume rs to cor re ct t heir da ta We empow er pe ople to c or rec t , res tr ic t and delete da ta, where appropriate. We provide consumers with various methods to view their credi t infor mation an d re ques t cor re cti ons if nee de d. In th e USA and t he UK , ag ent s in our supp or t ce ntre s are tr aine d to help c onsum ers with que st ions , conce rns or disp utes ab out infor matio n in their cr edit fil e. Our we bsite s in Bra zil, t he USA an d the UK make i t eas y for pe ople to r aise a que r y abo ut cre dit infor mation an d get it c orr ec ted qui ckly . We pass o n cons umer dispu tes to th e data prov ider to e valuate, r es olve and s upply cor re cte d data wh ere er ro rs are c onfir med . Each t ime a data p rov ider r esp ond s to a requ es t for ver ifi cati on, th ey must al s o confir m that th e entire a cco unt is accu rate . In the USA , if the da ta pr ovid er fail s to r esp ond , we eit her update th e item a s the co nsumer r equ es ted, o r delete i t. Simil ar ly in the UK , if t he dat a prov ide r fail s to re spo nd wi thin 28 days th e data is temp orar ily supp re sse d on th e consum er’s credi t rep or t until a r espo nse is rec eiv ed, O nce a disp ute is re solv ed, w e update data as r equire d and no tif y th e con sumer of the r esult . Data a ccur ac y is par ticula rly r eleva nt for th e trans gen der and no n- binar y co mmunit y wi th regar d to name chang es . Infor mation ab out gend er/ se x, a ge, r ace, e thnicit y, religi on or sex ual orie ntatio n is not inclu ded in cr edi t rep or t s or s co res . Ho wever , wh en som eo ne transi tions , and chang es th eir name, th eir credi t and financial his tor y may s till b e tie d totheir b ir th name (or ‘ de adname’), whi ch can unintentionally ‘ou t’ the c onsum er or for ce them to e st ablish a n ew cre dit his tor y. In the UK and th e USA , we have p ro ces se s that enable p eop le who i dentif y as trans gen der or non -b inar y to ar m the ir ident it y, update their name and sup pre ss th eir dea dname so i t doe s not app ear on th eir E xp erian cr edit r epo r t. We have str ic t pro ce ss es to en sure da ta accur ac y – fr om de signing a n ew data s upply and so urcing a ccur ate data in t he firs t pl ace, tomoni torin g and impr ovin g accur ac y over time, an d re solv ing any inac cura cies or queried information repor ted by consumers. Our fo cus is on t he time line ss , acc ura cy and compl etene ss of th e data we ho ld, an d the rep or t s we pr ovi de to our cl ient s. Sour cing accura te dat a All o ur data co me s fro m rep utab le so urc es and, as p ar t of our du e dilige nce pr oce ss es bef ore we o nbo ard ne w sour ces of da ta, o ur qualit y co ntrol p ro cedur es h elp us id entif y andwe ed ou t inaccur ate or o ut-of- date infor mati on be fore w e add i t to our dat abas es . We work w ith dat a pro vid ers to r evi ew and continu ously impr ove the qual it y of th e infor matio n we re ceiv e. T o do t his, we r egul arly rev iew and r epo r t ba ck on qualit y to o ur data prov ide rs so w e can dr ive c ontinuo us improvement. We also oer a comprehensive suite of s of t ware an d analy tic s too l s to help them ch eck dat a be fore t hey sub mit it to u s. We monitor h ow data p rov ider s deal w ith quer ies ab out da ta and h ow they r eme diate them to imp rove a ccur ac y. If data pr ovid ers are unwilling to i mplement improvements to mee t our st andard s, we wil l no long er sour ce data from them. Monitor ing and improving data accurac y Onc e we have ac quired da ta, w e fre quent ly update an d per io dically a udit th e infor matio n inour data bas es to en sure i t is as cur rent a s pos sible . We apply f ur the r qualit y as sur ance technique s, in cluding dat a- matching algor ithm s, b efo re pr ovidin g data to o ur client s . This en sure s we prov ide cl ient s with information that repres ents consumers and busine ss es as a ccur ately and f airly a s possi ble. We als o monito r quer ies r ecei ved dir ec tly fr om consumers to identify trends relating to data qualit y, enabling us to r ec tif y any a ccur ac y issu es quickly at s ourc e. We make it a pr ior it y to rapi dly re solve any c onfli ct s or er ror s that are likely to hav e a material imp ac t on a consumer’ s credit score. In the UK an d Irelan d, we have a dde d over 20millio n net ne w re cor ds into our co nsume r burea u in the l ast ye ar alone , cons tantly rev iewin g the mar ket and wo rk ing wi th new lend ers an d se cto rs to ens ure th eir cus tomer s are represented appropr iately within the burea u. Our U K and Irel and Da ta O ce le ads our e or t s to achi eve wor ld - clas s data gover nanc e thro ugh a s tron g fo cus on dat a quality , acquisition, transpa rency and privacy acros s bo th our cre dit and mar ketin g ser vice s busine ss es . A s par t of th is appro ach, w e continu e to inves t in techno logy to au tomate and moni tor th e way we impr ove our da ta. 285 + Th e numb er of inter nal info rma tion secur it y training co urse s available for people across the business 34,000 Every month we receive around 34,000 submissions from data pro vid ers in t he USA , and upda te aro und 1.3 billi on re co rds – 9 8% within 24 hours Sustaina ble business contin ued Experian plc Strategic r eport 52 Many of our pr oduc t s al so emp ower consum ers an d busin ess es to ch eck fo r any inaccur acies in their finan cial profiles an d take step s to prote c t their da ta, in cluding ch oosin g to blo ck acc es s to their cr edit r ep or t to pr event ident it y the f t and f rau d. Th is year , w e adde d a lock /unlock featur e to our cre dit s core ap p in Braz il that enable s con sumer s to blo ck and unbloc k their cr edit s cor e fr om any third p ar t y that tr ies to c onsult t heir dat a. Ac comp anying infor matio n exp lains ho w this fea ture c an hel p to pre vent fr au d, as we ll as e duca ting consum ers ab ou t dier ent kin ds of fr auds and the imp or tan ce of pr otec ting th eir cre dit sc ore. US consum ers c an alre ady lo ck and unlo ck their cr edit r epo r t s quickly and ea sily wit h the Cre ditL ock fe atur e, and we p lan to ad d a similar fe atur e in the UK in th e comin g year . Fa i r n e s s We are commit te d to col lec ting an d using dat a fair ly and for l egitima te purp os es , and comply ing wi th re gulati ons on dat a lif ec ycle and rete ntion in th e market s in w hich we ope rate . We car eful ly bal anc e pri va cy exp ec tat ions w ith the s ocial an d eco nomi c ben efit s der iv ed f rom th e resp onsib le use of data fo r indiv idual s, bu sines se s and clie nts . Our pr iv ac y pol icie s var y in ea ch count r y orre gion to co mply wit h loca l regul ator y requi remen ts. Unde rlying these polic ies i s ourcom mitme nt to prov ide c onsum ers w ith notic e, choi ce and e ducat ion ab out th e use of personal information. Educated consumers We take fair an d appro pr iate mea sure s when i t come s to data r etenti on, a dher ing to nati onal, sta te and fe der al re gulati ons in loc atio ns wher e we op er ate. We have ro bus t pro ce ss es to appro pr iately manage t he li fec ycle of dat a we hol d and to dele te data wh en re ques ted b y the indi vi dual data subj ec t s in each of ou r market s. We al so c ommunic ate detail s o n retent ion and p ri vac y thro ugh our w ebsite s. In many par t s of th e wor ld, r egul ation s on data pri vac y s et clear r equir ement s on t he way dat a is colle c ted and us ed , and how c ons ent is gained f rom c onsum ers . We re gular ly rev iew our data p roc es se s to ensur e compl iance withregulations, such as the General Data Prote c tion Re gulat ion (GDP R) in th e UK and Europ ean Union , the C alif or nia Con sumer Pr iva cy A ct (CC PA) in the US A and th e Bra zil Gen eral D ata Pr otec tio n La w (LGPD). Data o er s huge p otential to supp or t jobs and prosp er it y. We need a re gulato r y fr ame work that nur t ures an d supp or t s us e of data to encourage growth, whi le protecting consum er s’ priv acy. We resp ond to government consultations, and engage with regul ator s as pr ivac y re gulat ions and gui dance evolve . Many re gional and nat ional re gulat ions on data pr iv ac y share comm on pr inciple s, an d we ad voc ate for inte rop erab ilit y to s uppo r t global comm erce. Our Gro up Op erat ing Co mmit tee an d senio r lead ers r ec eive r egul ar br iefing s to keep th em apprised of privacy developments around thewo rl d. T ransparency We str ive to b e open an d transp arent ab out t he t yp es of dat a we col lec t fr om con sumer s and third p ar ti es , whe re we ge t it , how it is us ed and wh ere it is shar ed. W he re appr opr iate we prov ide in div idual s wit h acce ss to t he data w e colle c t abou t them , and th e abilit y to c or rec t , res tr ic t and del ete data . Data transparency not only empowers consum er s, it al s o ben efit s our b usines s . Forexamp le, our mar ketin g ser vice s are mor e ee ct ive fo r our cli ents w hen m ore p eo ple under st and th eir abili t y to set t heir mar keting pref eren ces , as this m eans fe wer p eop le receive unwanted marketing that they would not b e rec epti ve to. In the UK , th e pr iva cy s ec ti on of our we bsite prov ide s pr iva cy p oli cies fo r die rent pa r t s ofthe bu sines s, an d our Mar keting S er v ice s Con sumer Inf orma tion Po r tal (MS CIP) ex plain s data r ight s and s et s out th e var ious w ays we use p ers onal and an onymis ed dat a. T he content o n thes e web sites is d esign ed to b e clear and e asy f or non - exp er t s , and th e MSCIP include s a se rie s of enga ging vi de os on topi cs such as h ow we obt ain data an d how p eo ple can b enefi t fro m sharin g their dat a. Indi vi duals can us e the MS CIP to fin d out i f they ar e on our are be t ter equip pe d to be e ec ti ve, su cce ss ful par t icipant s in a wor ld that in crea singly rel ies on the e xchange of infor mati on to del iver produ cts and se r vices eci entl y . Lenders need access to accurate information abou t peop le’ s finan cial profiles f rom E xpe rian or othe r credi t bure aux . Such info rmati on is integr al to an ecient an d comp etiti ve cre dit ecosystem which provides in novative product s that enabl e consum ers to g et the m ost o ut of their dat a, co ntr ibute s to eco nomic gr ow th an d supp or t s a st able con sumer b anking s ys tem. Our Marketing Serv ices business al so gathers, ana lyses, combi nes and processes data to he lp organisations better unders tand consumers soth ey can o er th em rel evant pr odu ct s an d ser vice s, and c ommunic ate mor e ee cti vely and at th e right t ime. We evaluate eve r y pr odu ct an d ser vice to ensur e we st rike t he r ight bal anc e bet w een cons umer s’ priv ac y exp ec tati ons and t he eco nomic b ene fit to b oth con sumer s and client s . Our comp reh ensiv e data pr otec tion pro gramm e det ail s the s teps we t ake to mitigate da ta pr otec tio n risk s, an d what we exp ec t fr om ou r emplo yee s. We are commit te d to obt aining, pr oce ssin g, using and r etainin g data co mpliantly an d resp onsib ly. W e str iv e to only ever shar e data with authorise d and trusted organisations . Whe n we do s o, we fo llow s tri ct guid elin es andcom ply wit h all rel evant l aws. This ye ar , we ad ded a lo ck / unlock feat ure to our cr edit s cor e app in Brazil that enables consumers to bloc k and unblo ck their cr edit sco re fr om any thir d par ty t hat tri es to co nsult th eir dat a 53 Experian plc Annual Report 2022 Strategic repor t marketing file and understand what d ata we hold ab ou t them , wh ere this da ta com es f rom and how i t is use d. It in clude s a pro minent feat ure enabl ing p eop le to opt o ut of tar gete d marketin g if the y choos e. T o ad d transp arenc y aro und the mar keting profil es we b uild, th e MSCIP al lows con sumer s to view o ur Mos aic cla ssifi cati on for any v alid UK postcode. Through this featu re, consumers can ge t a flavo ur of how mar keter s may vie w them , or p eop le wit h similar pr ofile s, w hen using our M osa ic se gment ation to imp rove there levan ce of their mar ketin g mes sa ges . Th e res ults u se simple i cons to sh ow key attr ibutes such as proper t y , transpor t , life s t ylean d holi days in a way tha t’s eas y to under st and atagl ance . Thr ough a s ur ve y of national ly repr es entati ve ad ults , 92% out of 378 respo ndent s indi cate d the inf orma tion onour ‘ how we us e yo ur data’ pag e was ea sy to u nderstand. In Braz il, o ur pri vac y ter ms pa ge is de signe d tobe user -friendly, translating the consumer contr ac t into simple, a cce ssib le lan guage an d layo ut be fore t he us er logs in . We als o prov ide consumers with illustrations of what their posi tive da ta mean s, to he lp the m under st and how it a ec t s their ov eral l financial health . In the US A , we se t out o ur pri va cy p oli cies f or spe cific p rod uc ts an d ser vice s on the p ri vac y se cti on of our w ebsite . Co nsumer s ca n acc es s the cre dit inf orma tion tha t E xp erian ho lds on them b y signing up fo r a fre e or pai d memb ership t hrou gh the Rep or t s an d Sco res se cti on of our w ebsite . Th ey wil l then b e pre sente d wi th a rep or t showing t he data E xpe rian ho lds on th em and how to disp ute this infor mation o nline i f nec es sar y . E x per ian has appli ed th e Cal ifor nian pr iv ac y law br oadly s o all US re sident s ca n als o manage th eir pe rs onal data p ermis sion s thro ugh the C P3A p or t al. O ur credi t rep or t s in No r th A mer ica al s o includ e a Cre dit Rep or t In sight s se cti on, int rod uce d las t year , that f eature s infogr aphic s, c olour-co ding and easy-to -interpret explanations of the fac tor s that may b e help ing or hur ting a consum er’s credi t stat us and s core . We work w ith financial ins tit utio ns to enhanc e transparenc y with consumers. In the UK, whena c onsum er appl ies f or cre dit , the len der will dire ct t hem to an indus tr y-s tandar d infor matio n noti ce – th e Cre dit Ag enc y Infor matio n Noti ce (CR AIN) – w hich p res ent s clear and con sistent info rmation ex plainin g how cre dit ref eren ce ag encie s use and shar e per so nal infor matio n. A s wi th the M SCIP , the CR AI N is draf te d in a way tha t is desi gned to make it ac ces sible to c onsum ers b y using clearand inte lligib le lan guage , divi ded into easy-to -access sec tions. In the USA , financial insti tuti ons pr ovi de adv ers e ac tion no tice s whe n an appli cant isdenie d cre dit or em ploy ment ba se d on infor matio n include d on th eir cons umer cre dit rep or t . Th is notic e includ es a br ief d es cript ion of the dat a use d for th e decisi on and a co ntac t for the credit reference agencies that provided the data. T o ad d transp aren cy aro und th e marketin g profil es we buil d, the M SCIP al lows con sumer s to viewo ur Mos aic cla ssifi cat ion fo r any valid U K pos tco de. T hro ugh this f eatur e, co nsumer s ca n geta fl avour of h ow markete rs may v iew th em, or p eo ple wi th similar p rofil es , when u sing our Mos aic se gment atio n to improve t he re levan ce of the ir market ing me ss age s. Sustaina ble business contin ued Inclusion We enhance financial inclusion by using dat a tocreate in sight s that he lp lend ers o er f airer acc ess to cr edi t to more p eo ple. O ur aim is tohelp m ore p e ople g et bet t er acc es s to credi tby shar ing rel evant dat a wit h lending organisations. We look t o source additional and alterna tive s ourc es of dat a, fo r exampl e in our RentBur eau , our Bu y Now P ay L ater Bur eau and in our L if t P remium s core . We als o enable indiv idual s to dire ct ly contr ibute da ta to hel p improv e their financial l ive s thro ugh pr oduc t s such as E x per ian Bo os t and, as o utlin ed o n the nex t pa ge, E x per ian Go . Read o ur Impro ving F inancial He alth rep or t for more o n our us e of data to impr ove financial inclusion and financial he alth. Experian plc Strategic r eport 54 How do p eop le wit h no cre dit his tor y ob tain credi t? It ’s a classic chi cken and e gg sc enario . Wit hout an e xis ting cre dit rep or t , cre dit is hard to com e by. Likewis e, wi tho ut cre dit , it c an take time to e sta blish an d build a cre dit p rofile , andget a cce ss to t he thin gs you n ee d. So me lend ers may s tr uggle to v eri f y a co nsumer ’s identi t y and con sumer s are unabl e to acce ss credi t at fair and a or dable r ates . Wi thou t help t hes e con sumer s remain inv isible to mainst ream financial s er v ice s. In t he USA alone th ere ar e 28 million³ pe ople w ho are ‘credit inv isible’. Of ten, t hey are c aught in cycl es of pr edator y lendin g, the y can’t cove r emer genc y exp ens es and f ace l imited housin gopti ons . Th ey may pay high er insura nce pr emiums and inte res t ra tes, haveemploy ment challe nge s and re quire larger deposits. T o he lp pe op le over com e the se b arr ier s in theUSA w e create d E xp erian G o. It ’s the firs t pro gramm e of it s kind , help ing pe opl e create their cr edit pr ofile in jus t minutes an d bef ore applyin g for cre dit . E xpe rian G o simply use s a per so n’ s gove rnmen t-i ssued ID, Soci al Sec urity nu mber and a ‘ selfie’ to authen ticate them. From there, personalis ed recommendations help users add a cco unts , al so kn own as t ra delin es , totheir E x per ian cre dit rep or t. User s may re ceiv e infor matio n abou t be coming an a utho ris ed us er or be inv ite d to apply fo r a credi t car d design ed sp ecifi call y forth ose n ew to cre dit. P aym ent histo r y fr om utili t y , pho ne, and s tr eaming s er v ice s can thenb e ad ded to p otential ly bo ost t heir cre dit sco re usin g E xpe rian B oos t. T his h elps s ome cons umer s go fr om invisib le to sco rabl e in just one session. What ’s impor tant is t hat once t heir E xp er ian credi t rep or t is e stab lishe d, the y can s tar t building an d grow ing the ir credi t. T hey c an acce ss cr edit c ards , car and p er sonal loan s, inmany cas es at mu ch lower inter es t rate s. E xpe rian G o is life - chan ging. I t help s over come the ba rr ier to inclusi on in the finan cial sy stem . It unlock s financial su cce ss for p eo ple by ope ning up new finan cial opp or t unitie s and help ing th em pote ntially s ave mon ey wh en they t ake out cr edi t. Final ly , the y can s tar t th eir credi t and financial jo urn ey on th eir own ter ms . Building your own cr edit r eport? That’s life-changing I fee l emp owere d, i t give s me p eac e ofmind. I co uldn’t get an apar t ment or aloan wh en I didn’t have a goo d cre dit sco re. I fe lt shamef ul, I c ouldn’t do any thing ... Bu t bein g able to op en up theapp , I fee l bet te r . T hat’s how I fe el emp ower ed… . It ’s a whole ne w wor ld ope ning up fo r me, w ith go od to ol s tohelp . ¹ Sk yl er , a ge d 37 1 So ur ce : An s wer L ab s t ud y, Ex p er ian G o Cu s tom er I nte r v iew s , December 2021 . 2 Fro m la un ch in O c to be r 2021 t o 31 Mar ch 2 022 . 3 So ur ce : Fro m E xp er ia n and O l iv er W ym an w hit ep ap er ‘F ina nc ial i ncl usi on a nd a cc e ss to c re di t ’, rele as e d Jan uar y 2022. 4S o u r c e : E x p e r i a n . 40 , 000 people have use d Exp erian Go tocrea tethe ircre dit r epo r t ² 28 million pe opl e are cr edi t invisi ble in th e USA³ c. 70 % of 1 8 -2 4 year o lds in th e USA hav e dic ult y establishing credit 55 Experian plc Annual Report 2022 Strategic repor t Thr ougho ut this ye ar , we have mad e signific ant progress in establishing strong founda tions toset us up f or suc ces s . This has in clude d es tabli shing pro gramm es of wo rk that ar e aligne d global ly and fo cuse d on impro ving ourpro posi tion in c are ers , develo pment an d enhancing o ur emplo yer br and. A longsi de this , we’ve be en exec utin g our Futur e of Work programme, givi ng our people more flexibility to choo se wh ere an d how th ey want to wor k . Our Pe ople a gen da has fiv e clear st rate gic focus areas: a C reat ing a cultur e that pu t s pe ople fir st a P repar ing o ur organis atio n for grow th a Grow ing world- beating tech -company leaders a Making tech skills our advantage a Sup erchargin g employabilit y communit ies . We act ively s uppo r t the p otential of all exp res sion s of diver sit y, including bu t not limited t o thought, style, sexual orientation, gender identity or expression , race, ethnicity, disabi lit y , culture, and experience. T o achi eve this p hilosop hy we will : a Ev olve and de velop p roc es ses an d pro gramm es that w ill incre ase th e diver sit y of our pe opl e at all leve l s a D evelo p pro duc ts f or cus tomer s and consum er s which s et a st andard of e quit y and financial inclusion in all the communi ties in w hich we op er ate a P rio ri tise a ct ions tha t supp or t o ur cultur e of belo nging tha t ultimately sup por t a culture that enabl es our p eo ple to sp eak th eir tr uth , fee l value d, and b rin g their w hole s elve s towor k. In F Y22, we d evelop ed a t hre e- year D EI str ateg y and pub lishe d our se con d global DEIRe por t . T his has allow ed us to show cas e our cultur e and DE I wor k, an d is als o an oppor tunity to hold ourselves accou ntable tothe fi ve DEI c ommitm ent s we have mad e: active spon sorsh ip, better unde rstand our opp or tuni ties an d challen ges , meas ure progress agai nst s pecific goa ls, ensu re acc ountabil it y, and suppo r t our p eop le. Our glob al commitm ent to es tabl ishing this philos ophy s tar t s wi th Gro up Ope rat ing Commi t tee (Op Co) spon sor ship of gend er , LGBT Q+, ethnicit y, disabili t y and ment al health . Creating a culture that puts peoplefirs t Our ambi tion is to b e a market-le ading t alent des tinati on, un der pinne d by a cult ure wh ere our pe opl e fee l value d and able to d o their b es t wor k. Fundam ental to this is th e deve lopme nt of our ref re shed an d align ed glob al employ ee value p rop osit ion (E V P) und er the s tr aplin e Disc over th e Unex pe cte d. T he E V P is under pinn ed by f our key pil lar s – Peo ple Fir st , T o gethe r We Win, Fo rce fo r Go od and Inn ovate . Th e final conc ept was in spire d by the inp ut of over 500 employee representative s across dierent regions, as well as 200 prospective ex ternal c andi dates in key sk ill area s and critic al market s. Our co re philos ophy a t E xpe rian is tha t diver sit y, equit y and in clusion (D EI) is es sent ial to our pur po se of cre ating a b et ter tom or row by making p ositi ve change in t he wor ld, an d actively suppor ting eort s to close the financial wealth gap of under ser ve d Inspiring an d suppor ting our p eople Sustaina ble business contin ued Employee value p roposition Gender diversi ty targets At Exper ian, we wo rk to create a better tomorrow for consu mers, for businesses, and for our comm unities. This am bition underpin s our plans for ou r people – to ensure we h ave the best talent, working i n a high-per forming and inc lus ive environ ment where they feel t hey can do thei r best work in suppor t of our visi on. Our People agend a is desig ned to suppor t the busi nes s ’ s ambiti ous growth plans. Scan me to vie w our D EI Rep or t Experian plc Strategic r eport 56 Representation of women FY21 Actual FY22 Actual FY24 Targets Senior Leaders 32% 33% 40% Mid-Level Leaders 35% 36% 42% Total workforce 44% 44% 47% La st ye ar we s et thr ee -y ear tar get s f or gen der diver sit y a cros s the b usine ss . T he ac tio ns we have taken t his year have h elp ed us make pro gre ss again st th es e, but w e remain commit te d to doin g even mo re. In a dditi on this year we ar e addin g a foc us on incr easing t he representation of Black and Hispanic/Latino emplo yee s in our US b usine ss . Addi tionally, we are holdin g our selve s acc ountab le at the m os t senio r level , whi ch include s our e xecut ive le ader ship hos tin g a regul ar div ersi t y rev iew integr ate d within quar ter ly busine ss r evie ws. T he di vers it y rev iew and pr ogre ss tow ard our shar ed go als is an exp ec tati on of each O pC o memb er . We now have 40Emp loye e Res ource G roups t hat not only pr ovid e a saf e spac e for anyo ne wh o nee dsit , but al s o prom ote chang e and build awaren ess a cros s E xp erian . The se gr oups include Wom en in E xp er ian, Bl ack at E xp er ian, and PRID E. T ofur t her shine a l ight on th e diver sit y of o ur pe ople , we have re leas ed ou r four th ser ies of v ide os , entitl ed th e Humans of Exp er i an , w hich sho wcas e the uni que li fe stor ie s of many of our emp loye es . We strong ly believe i n celebrating dierence with r egul ar event s, in cluding Inte rnati onal Women’s Day , as w ell as th e Interna tional Dayof Per so ns wit h Disa bilit ies an d Bla ck Histor y Month , wher e we supp or ted bla ck entrepreneurs across the UK. We ha ve celeb rate d Wor ld Ment al Health M onth fo r thefir st tim e and cont inue to empha sise th e well- bein g of our p eop le. Ac ti vit ies have include d the l aunch of th e WeWorkWell@ E xpe rian A sia Pa cific wel l-b eing pr ogr amme, which aim s to oer sup po r t acr oss al l dimensions of well-being, as well as our Mental H ealth Fir st A ide r pro gramm e that has seen over 400 p eople regis tered for training rec ognisin g the wo rk tha t has taken p la ce, which ha s res ulted in an impr ove d Glas sd oor rat ing for a si x th year in a r ow to 4. 3 out of 5 (3. 1 in late 201 6). We continue to ce lebr ate our E xp erian Way b ehavio urs , re sulting in o ver 23, 000 em ployee-nom ina ted rec ognit ion awards b eing han ded o ut in F Y22. Our emp hasis is on inve st ing in mo re per sonalise d, te chnolog y- enabled s olutions forth e mom ent s that mat ter in p eo ple’s live s, ensur ing inclusi vit y an d diver sit y ar e par t of ever yt hing we do . T o und erpin t his, we e nable str ong co nnec ti ons be t wee n our pe opl e, and make sure we maint ain our sp ecial cult ure, n o mat ter wh ere p eop le are b ase d. Ho rizon , our market-leadi ng employee communications pla tf or m remains p opu lar wi th emp loye es , with 97% regis ter ed and 8 0% re gular ly ac tive o n the pla tf or m. Sinc e it s laun ch in Apr il 2020, we have se en 37 ,00 0 comm ents p os ted and o ver 2,500 employ ee sto rie s share d. Alon gside this , thePe opl e Por t al, w hich is a s elf-ser vic e application for empl oyees, including access topay det ail s and to make leave r equ es ts , had over 1 5 ,000 of o ur pe opl e acc es s the pl at for m on aver age ea ch month . acro ss th e busine ss; t his exce eds o ur targ et of includin g 1 % of employ ees . T he UK and Ir elan d regi on has emp loye d it s firs t Well-b eing Manager to p rom ote our w ell- bein g initiat ive s. We are pro ud of the f ac t that our e ndeav ours have led to u s rec eiv ing s ever al pr es tigio us ex ternal aw ards , including b eing r eco gnise d with in the For tune 1 00 B es t Pl ace s to Work in 2021 in the USA , and a s a T op E mploy er in the UK , Ger many, Brazil, Sin gapor e and Aus tr alia. Ser asa E x per ian was re co gnise d as one of Linke dIn’ s T op 25 Co mpanie s in 2022 and the Nor t h Am eric a re gion al so a chieve d the to p sco re on th e Dis abili t y Equali t y Inde x. Th e global CO VID - 1 9 pan demic has cr eate d an unpre ced ented s et of circum stan ces t hat mean stay ing co nnec te d with p eo ple has b een m ore impor tant than ever . Wi th this in mind , we have cons oli dated ou r list ening s tra tegy, with r egula r pul se che ck-ins alon gside a n ew global par t ner ship wit h Grea t Pla ce to Wor k (GPT W). Alm ost 1 1 ,000 of o ur pe ople to ok par t in our firs t enter pri se -w ide GP T W sur vey w ith r esult s includin g an enga geme nt sco re¹ of 7 8%; it was 7 6% in our last annual s ur ve y in 201 9 . Our sur ve y sco res an d wor kpl ace p rac tic es al so mean we ar e now c er ti fied a s a Grea t Pla ce to Work in 20 co untr ies (ou t of 28 eligib le). De spite th e challengin g backdr op pre sente d by COV ID - 1 9 , we ar e deli ghted that o ur Febr uar y 2022 pul se sur vey show ed us tha t 81 % of ourpe opl e fee l that manag ement has a cl ear view of w here t he or ganisati on is goin g and how to ge t ther e, 87% fee l they ar e able to b e pro duc tiv e in their cur re nt wor k set-up, an d 88% fe el that E x per ian is dedi cate d to creat ing a diver se , equit able an d inclusiv e cultur e. Weare fur ther enc our age d that our p eo ple are 78 % Alm os t 1 1,000 of o ur pe opl e took par t in our firs t ent erp ri se -w ide Gre at P la ce T o Wor k (GP T W) s ur v ey res ulting in a n enga geme nt sc ore of 78% Awa r ds The E xp erian Way Glassdoor trend 20 1 7 -2 022 Th e E xp erian Way re pre sent s ou r value s, andthe b ehavi ours w e exp ec t fro m all our employ ee s in their e ver y day ac tiv itie s. T his year , o ur pe ople have c ontinue d to find ne w ways to de mons tr ate th es e behav iour s while adjus ting to di ere nt ways of wo rk ing. 1 Th e en ga gem en t in de x has c han ge d si nc e 2019 (Kor n Fe rr y). Th e qu es t ion s ar e ve r y si mil ar i n se nti me nt b ut n ot l ike f or l ike . Glassdoor rating 4.4 4.2 4.0 3.8 3.6 3.4 3.2 3.0 2.8 Jan 201 7 Jan 201 9 Jan 201 8 Jan 202 0 Jan 2021 Jan 2022 Delight customers Innovate to grow Collabor ate to win Safeguard our future Val ue each other 57 Experian plc Annual Report 2022 Strategic repor t Despi te this, financial exclusion and s ocial mobil it y cont inue to dispro por tionately a ec t Bla ck Her itag e communiti es . E xamples of t his include : a A f ter s tar tin g a busine ss , Bl ack busin es s owne rs r epor t a median t urn over of £25,0 00 per annum , abou t a third l es s than Whi te busine ss ow ner s (£35,00 0) ¹ a Many m ore B lack b usine ss ow ner s fail to make a profi t (28% comp are d to 1 6% for Whit e busine ss ow ner s), and fewer m eet their b usine ss asp irat ions . Jus t 30% of Bl ack entrepreneurs say they met their financi al aims and only half (49%) met their non -financial aims . This c ompare s unfavo urably to W hite b usines s own ers , whe re mo re than half (5 4 %) say the y met financial aims and 69% met non -financial aims. Th es e dier enc es in ou tcom es are t he re sult of a vari et y of inter-rel ated an d sy stemi c variable s. T hey inclu de financial and s ocial fac tor s such as h ous ehold in com e and depr iv atio n, as we ll as th e unde r- representation of cer tain ethnic groups among the leadership population of organisations. This l ack of opp or tunit y impac t s the ab ilit y of the Bl ack co mmunit y to dev elop th e requisi te busine ss sk ill s, c apabil itie s and ne t wor ks tha t drive success. Th ese ar e dispar itie s that E xp erian w ants to play a r ole in ad dres sing th rough b et ter cr edi t educ atio n and comm unit y enga geme nt. O ur mission to dr ive financial inclusion an d help facil itate a cce ss to fa ir and ao rdable cr edi t for co nsume rs is br ought to l ife th roug h pro duc t s like E xp erian B oo st . It is al so encouraged through open dialogue between our pe opl e that re cognis es an d ackn owle dge s the is sue s that a ec t pe opl e within t he Bl ack community and workplace. E xpe rian emp loye es l aunche d their B lack atE xp er ian Emplo yee Re so urce G roup in theUK an d Irel and to comp lement simil ar communi ties in B razil (Ub untu) and N or th Ame ric a (Kar ibu). T hes e group s exis t to crea te a safe an d inclusi ve envir onment f or pe ople of Bla ck Her it age to wo rk , ac ces s opp or tunitie s, grow and f ulfil th eir pote ntial. At E x per ian webe liev e that ev er y p ers on , re gardle ss ofethnicit y o r backgro und, sh ould b e able tofulfil th eir p otential at wo rk . Since i ts in cept ion, B la ck at E xp er ian has be en rele ntles s in se ekin g out o ppo r tuni tie s to make pro gre ss . Bla ck Histo r y Mo nth, w hich was tra ditio nally a time of r efle cti on and e duc ation , was dialle d up to go f ur th er in Oc tob er 2021 and tur ne d into a time of a cti on includin g: a Challenging the business to contribut e 3,00 0+ po sitiv e interac tio ns and 377 volunteer ing ho urs to or ganisatio ns that primar ily s er ve t he Bl ack He rit age community a C reat ing t wo t y pe s of event s tha t foc use d on financial educ ation and inclusion and c are er develo pment , inclu ding Wha t’s the Sco re credi t educ atio n work sho ps, C are er Insight ses sions an d C V clinic s a Runnin g fla gship event s fo r 40 0+ entre pren eurs an d pro per ty inve sto rs to learn h ow to grow th eir busin es se s and por t folios, e.g. Pitch (pic tur ed ab ove), as well as 800 + youn g pe ople at ten ding c aree r and credit workshops a Usin g E xp erian p rodu ct s fo r stu dent s and young p eo ple inter es ted in ho w to manage credi t and kick s tar t th eir car eer s at E xpe rian and b eyon d a H ost ing an inter nal event w ith au thor , rap per and entr epre neur A kala on h ow E xp erian a s a busine ss c an improv e financial ou tcome s in the Bl ack an d Bla ck Her ita ge comm unit y. T o f ur the r under lin e it s commit ment to accelerating change for ethnically diverse employ ee s, E x per ian has sign ed th e Race at Work char te r in the UK . It ha s als o signe d the Halo Co de, a c ampaign pl edg e that pro mise s memb ers of th e Bla ck communi t y that the y have the ‘ f re edom an d se curi t y to wear all afro-hairst yles without restriction or judgment, as well as relig ious head dresses’ . Our comp lement ar y ambi tions of a ddre ssin g racial in equalit y an d enhancing finan cial inclusio n inspire u s to bel ieve tha t when w e stan d tog ether , we can make a di er enc e. Standing with the Black community in the UK The Black ethn ic population o f the Unit ed Kingdom has g rown sig nifican tly si nce the Second World W ar , all the whi le drawi ng the whole na tion towa rds thei r cultu res. Through televi sion, spor ts, fashion, cine ma and mus ic, Black Britons have become the standa rd bearers of a new nat ional cul tural identity . 1 S ource: Alone t ogether: Entrepreneurship and Diversity in the UK (2 022 ), pu bl ish e d by th e Br i tis h Bu sin e ss B an k and O l iv er Wyma n. Sustaina ble business contin ued Experian plc Strategic r eport 58 Par tic ipa nt s in ‘ Pi tc h’, E xp er ia n’s firs t e ver B l ack ent re pr en eur sh ip ch al len ge . Fro m le f t to r ig ht : Ant ho ny O do gw u (R x tr o Sto re), A bi O du sa nw o (Yey e Mi), F ol a Awo ye mi ( X W Me di a), An it a Lu sa rd i (A fr o ani ), Nat han ie l Ihe na ch or ( T he S mar t Wash LTD), S oj our n er B ake r (D is cov er e d Be au t y Bo x), A ma do u Ka ss ar at é (S CJ C lo thi ng ), T ahl ia G ra y (Sh ee r Ch em is tr y ) and Rap ha el B ab alo la ( Temp le We ll ne s s). Hub O ce based Their primary place of work is an o ce as their r ole c annot be performed pr oductively outside of an oce-based environment. Hybrid Home + o ce based The place of work is both o ce and home. The pattern will be determined team by team and can flex as required. O ce days ar e primarily for in-person collabor ation and connection. Home Home based The primary place of work is home. This r ole may be lar gely individual in its natur e or requir e frequent tr avel to client loc ations. Roam Mobile These roles will require the person to be flexible and able to move easily to be close to clients and other stakeholders. Preparing our organisation for growth We are an ambitio us or ganisatio n, s o we continue to p rep are for glo bal opp or t unitie s and grow t h. Fundament al to fa cilita ting this grow th is o ur Future of Wor k pro gramm e. Th eglobal pa ndemi c gave us an opp or t unit y toadop t new w ays of wor kin g, whi ch accelerated exis ting trends exponentially . T his res ulted in a se t of globally al igne d pr inciple s on how w e wor k, w hich inclu ded a r ev iew ofthe ro le of the o ce , ident if y ing what techno logy inv es tment s we woul d nee d, an d the re al- es tate fo otpr int that wo uld allow us to maintain our s tro ng cult ure in a mo re rem ote wor ld. Our f ram ewor k create d ro les that ar e cate gor ise d in on e of four way s – Hub, H ybr id , Home an d Roam – and all r egio ns are now impleme nting th e Future of Wor k pro gramm e outputs, taking local conditions in to accoun t. T o hel p facil itate t his shif t in our w ays of working, we have: a P ublish ed emp loyee an d manager gui des that out line c onsis tent prin ciple s and oe r guidance o n how to wor k in di erent w ays a Shar ed emp loye e stor ies w hich highl ight how Hy br id ca n supp or t di ere nt indiv idual situations a L aun ched a ‘ Lov e whe re you w ork ’ campai gn for c andidate s and new j oiner s, reinfo rcing o ur appr oach to a m ore fl exib le futu re a Ini tiate d a new clou d bo okin g sy stem f or Hybrid oce workers a St ar ted r ec onfigur ing our e xist ing oc e environments while enhancing our employee experience. We continue to lo ok to at tr ac t memb ers of ke y talent gr oups wh o po sse ss cr iti cal skil l s. Ou r foc us has be en on inte grat ing wor ks tr eams including p eo ple analy tic s , str ategi c wor kfo rce plannin g and tale nt acquisit ion, s o we can us e our insight s to pr oac ti vely tar get di ver se ta lent in crit ical are as. We re co gnise the c ompe titio n for tal ent spe cific ally in te chnolo gy ro les , so we have foc use d on high - demand sk ill s in cru cial market s. B esi des this , we have cre ated a glob al internal t alent po ol for cr iti cal techn olog y skill s , as wel l as exp andin g our hir ing in ear ly ca ree rs to develo p youn g, dive rs e talent t hrou gh the organis ation . Ce ntral to o ur str ate gy was intro ducing Smar t Recr uiters a s our global appli cant-tr ackin g sys tem , which ha s see n 550,00 0+ appl ica tions , hel ping us to fil l over 5,4 00 po sitio ns in F Y22. We’re als o se eing succ es s fr om our e mploy ee a dvo ca cy pro gramm e, whe re empl oyee s can shar e approv ed content dir ec tly onto th eir Linke dIn acc ount s, and s o pl ay a role in h elpin g str eng then ou r bran d and re puta tion . Since i ts launch in l ate 2020, this ha s gener ate d over 5millio n impre ssion s on Linke dIn. Innovat ion re mains at the h ear t of o ur cultur eand acr oss o ur pro duc ts an d ser vice s . T o re co gnise and c elebr ate the p eo ple and project s bringing cut ting-edge solutions to our client s’ and cons umer s’ bigge st pr oblem s, we have align ed th e Si Ramo Pr ize for inn ovati on and the C reat ing a B et ter T o mor row (C AB T ) award, w ith th e winner s announ ced at an Innovat ion Awards ce remony. This app roa ch give s us an opp or tuni t y to highlight w hat’s happe ning acr oss o ur busine ss an d how it ’s help ing tr ansf orm l ive s and cre ate a bet te r tomor row. We launch ed 1 04 ne w pro duc t s inF Y22, wi th anoth er 1 51 projec t s alre ady in the pip elin e at the en d of the finan cial year . Alon gside th es e awards , our s econ d Glob al Hackat hon was a t tende d by 3,0 00 of our p eo ple and gen era ted 1 00 entr ie s, und erp inned b y our key pr inciple s of fo cus, le arn , pra ct ise, c onne ct and grow. Winne rs and r unne rs- up wer e acknowledged across fou r categories: Incubato rs , Enabler s, E ntrep reneur s and S ocial Advoc ates . In September , more than 3,000 pe ople at ten de d our firs t EmPow er mont h, championing E xp erian’ s appro ach to Continuo us Improv ement . It show ed ho w to str ive f or ee ct iven ess an d eci enc y by using di ere nt meth odo logie s, l ike Lean , Six Sigma an d De sign Think ing, an d how to fo cus on p rod uct ivi t y and brin g incre ase d valu e to our cus tome rs . We have piloted an d star ted to rol l out th e C3 (Custom er Cult ure C ouncil ) pro gramm e acro ss the organisation, to achieve hig h-p er formance outco mes – i t aims to impro ve cros s-f unc tional collabor ation and remove cultural barriers that inhibit customer -f acing innovation. Beyond this, we continu e with o ur high- per forman ce pro gramm e, includin g the l aunch of a p or tal forne w joine rs wi th ref eren ce mater ial s for exis ting emp loye es , which e xpl ains, th roug h aser ies of sh or t v ide os , our pe r for manc e philos ophy at E x per ian. O ur pe ople co ntinue tohave acc es s to the El evate Pe r for manc e platfor m for year -round per formance managem ent, in cluding s et ting g oal s, development p lanning an d check-ins . Ourhigh -p er f orman ce cult ure cont inues to enco urag e cons tr uc tiv e fee dback an d use of o ur core to ol (fe edba ck. me) remains hi gh – near ly 54,0 00 fe edb ack re que st s were ma de in F Y22. Our s eco nd Glob al Hackat hon wa s at tende d by 3,00 0 of our pe opl e and gen era ted 1 00 entr ie s, under pinn ed by o ur key pr inciple s of fo cus , learn , pr act ise, c onne ct an d grow. 5 50 , 000 + appl ica tio ns via Smar t Recr uite rs , whic h has hel pe d us to fill o ver 5, 40 0 po siti ons in F Y22 Fut ur e of Wo r k 59 Experian plc Annual Report 2022 Strategic repor t Growing world-beating tech- company leaders Wit h our Futur e of Work pr ogr amme continuin g to run glo bally, we know we ca n no longe r simply rely on p hysical w ork spa ces to be our b igge st c ultural an chor s. We cont inue toreinfo rce th e mor e intang ible elem ent s of our cult ure, li ke value s, b ehavi our , emp loye e exp eri ence an d ways of wo rkin g, to cre ate a str ong co nnec tio n bet we en our p eo ple and E xpe rian . This is a hi gh pri ori t y in the wa y our lead ers c ommunica te and en gage wi th the ir teams , and as we cont inue making o ur Emplo yee Value Pr op ositi on par t of the ful l employee lifecycle. A s an organis ation , we re cognis e that our lead ers ampl if y o ur ambitio n, cult ure, and value s. W ith t his in mind, w e have taken t he time to co nside r what ‘great lo ok s like’ globally for cur rent an d pote ntial lead ers . We have use d the se insight s to de velop a s et of Chara cter is tics of G reat L ead ership, w hich for m the ba sis of how we w ill now as se ss an d develo p our lea der s and pl an for su cce ssion . Lea der ship transi tion fo r new jo iner s and internal m over s is als o an area of fo cus , par ti cular ly for cr itic al mov es . This has allowe d us to put t he appr opr iate supp or t in pla ce – inclu ding co aching an d liter atur e – toget lea der s quickly es tab lishe d wit hin our culture , to mitiga te risk , maintain b usine ss continui t y , and s et the m up for suc ce ss in Exp er ia n. We have revi ewe d our appr oach to t alent managem ent and suc ces sion p lanning , to increa se agil it y and m ove fr om pr oce ss to outc ome s. T he majo rit y of o ur top - 100 roles have ‘read y- now’ su cce ssion i dentifi ed, an d wehave over 20 0 indi vidual s highli ghted as pre cision to sup por t decision -m aking on h ow we at tain t he tale nt we ne ed . This in clude s thinking m ore ho list ically an d flexib ly abo ut our wor kf orc e, toinco rp orate r ising numb er s of contin gent wor ker s and thir d- par t y suppl iers in t he avail able mar ket. T o und erp in our SW P appr oach , we have develo pe d a global skil ls f ram ewor k for defining, assessing, growi ng and eva luati ng our tal ent, fo cusin g on tech t alent as a p rio ri t y . We under to ok a co mpreh ensi ve rev iew of th e be st way to al ign the j ob family f ram ewor k forour te chnica l skill s . We are using a market-le ading thir d- par ty s oluti on, an d an AI - enable d talent f rame work t hat allows us to brin g to lif e the se co mpon ent s for p eop le in an intuiti ve and m eaningf ul way. For example , it enable s pe ople to vi ew and comp are p otential role s, id entif y skill s gaps, an d take up le arning opp or tuni tie s to enhance t heir skil ls an d capab iliti es , prov iding mu ch greater cl ari t y on progression and development opportunities. Pro duc t De velopm ent ro les we re the firs t-phas e focu s of this appr oach thr ough Q4F Y22, f ollo wed by t he oth er key skil l areas including A naly ti cs . A s we look to c ompe te for th e talent w e nee d, we have spe nt time de velopin g a new re ward philoso phy and s tra tegy sp eci fic ally desi gned to at tra ct an d ret ain key tech t alent . This include s a st ru ct ured f ram ewor k built on market-competiti ve total-reward levels fortechnic al job familie s, alongsid e increa se dflex ibilit y to di er entiate r ewar d torec ognis eindiv idual c ontr ibuti on wit hin thes e technical ro les. succ es sor s for t his group . In 2022, t wo -thir ds of new top - 1 0 0 lea der s were p rom oted f rom within , wit h the r emainder hir ed e xte rnally. We are pr oud tha t t wo of our bi gge st ro les (Chie f Op erat ing O c er and CE O, Nor t h Am eri ca) have be en fille d by internal t alent highl ighted in our suc ces sion pl ans . Our valu e hot spot s ar e crit ical to o ur over all str ate gy, so we are foc using on en surin g we have th e right r ole s occ upie d by the r ight p eop le. T his is par ti cular ly impor tant in cri tical s egment s such as te chnolo gy. T ale nt conver sat ions ar e now ba se d on str ate gic exe cutio n, bu sines s continui t y risk s and su cce ssion gap s. T he fre quen cy of th es e discus sions ha s shif te d fro m an annual event to a quar te rly on e, wi th the go al of bet te r aligning t hem wi th how o ur business operate s. Making tech skill s our ad vantage We reco gnise tha t having th e right sk ill s and capa biliti es in th e organis ation is f undam ental to achiev ing our amb ition s. T o facil itate this , wehave evo lved o ur appr oach to sk ill s fore cas tin g, pre dic tion and p lannin g throu gh anew Str ate gic Work fo rce P lanning (S WP) pro gramm e aiming to crea te tool s and a fr amewor k that enab les us to fill o ur crit ical skill s gaps e ec tiv ely , global ly . Dur ing F Y 22, we have r un a pilot in th e UK and Ire land , which has gen erate d a deman d and supply analy sis of the ro les an d skill s we r equire o ver the coming five-year per iod, as well as rigorous plan s to infor m our buil d/buy/bor row/bot str ate gies to br id ge the gap s identi fie d. We have create d apl ayb ook to s uppo r t the glo bal expa nsion of th is wor k acros s the e nterp ris e togive us a co nsiste nt appro ach, an d mor e Charac teristics of Great L eadership Sustaina ble business contin ued Leads & Inspires Delivers E xcellence Disrupts & In novates Leads with Agilit y Experian plc Strategic r eport 60 THINK FEEL DO Experian T ech Careers W eek aimed at keeping our people Aw are, Relevant & Marketable Experian gateway to access all things car eer , learning and growth oriented EVP Be W orld Ready Global Career Hub Superchargin g employabilit y Supercharging employability We continue to inv es t in our ca ree r develo pme nt str ategi es , which r emain key tobein g a market-le ading e mploye r . Our fir st ever glob al Car eer Hub is an inter nal p or tal , aone -s top - shop fo r employ ee c are er grow t h and hol isti c develo pment n ee ds. I t helps identi f y skil ls gap s, and p rov ide c are er coachin g, learnin g channels , gigs, a cademie s, bo otcamps and uni versi t y curr iculums to o ur pe ople. E mploye es ar e able to v iew and compar e pote ntial role s and take up l earnin g opp or tuni tie s to enhance t heir skil ls an d capabilities. We launch ed the fir st p hase of t he Ca ree r Hub in Febr uar y 2022 alon gsid e Be Wor ld Rea dy, our E xp er ian- wide C ar eer s Week . T he we ek was a comb ination of glo bal and r egional care er and le arnin g content , with th e aim ofengagin g our p eop le in deve loping t heir care er s and pr oac tiv ely st ayin g up to date witht he changing mar ket . We were del ighted that ove r one -th ird of our p eo ple to ok the opp or t unit y to at ten d one of th e 70 ses sions . We have star ted buildin g on the w ork tha t’s taken p lac e this yea r on car eer f ram ewor k s, and sc aling t hes e acr oss fo ur ident ifie d care erpa ths – Pr odu ct D evelo pment , Pro duc tManagem ent, A naly tic s and S ales . Foremploy ees , this gi ves gre ater clar it y on progression and development opportunities, and it sup por ts o ur abilit y to b uild our t alent pipeline in ternally . Some element s of the Career Hub were alrea dy in ex isten ce, in cluding Step ping Stone s, w hich has o ere d inter nal car eer develo pme nt exp eri ence s such as gi gs, jo b shadow ing, j ob rot ation s and kn owle dge trans fer , since i ts l aunch in Januar y 2020. Dur ing this tim e, th ere have b ee n 1 , 48 4 applications for experiences, as well as 244gigs ad ver t ise d. Elev ate Le arnin g, our learnin g managem ent sy stem , continue s todemo cra tise a cce ss to de velopm ent and mor e than 1 8 ,200 e mploy ees u se d the pla tf or m in F Y22. Looking ahead We are excite d by what th e fu ture ho lds . Our ambitio n is to be re co gnise d as one of th e ‘25 Grea tes t Pla ces to Wor k ’ in th e wor ld, an d we are fo cusing o n what we n ee d to do to achie ve that. We wil l continu e to refine o ur appr oach tothe way w e develo p and re ward o ur pe ople , to at tra ct an d retain a b es t-in- cl ass te chnolo gy pop ulati on. We will shar e a comm on under st anding of w hat grea t lead ership lo oks like, to h elp gro w the ne x t gene rati on of company l eader s . We will create t he con ditio ns that allow o ur pe ople to f eel valu ed , fulfil led and enabl ed to do th eir be st w ork , and in t urn be ou r bigg es t adv oc ates . We will f ocus o n creating an inst antly rec ognisab le employer bran d know n for inn ovatio n and an amazing cultur e, so t he ver y bes t p eop le want to wo rk for us . Our intent r emains to nur ture a ful ly diver se , inclusive , high -p er for ming an d ‘peo ple firs t’ cult ure. We laun che d the fi rs t pha se of theC are er Hub in Fe br uar y 2022 alon gsi de B e Wor ld Re ad y , ou r E xp er ian -w ide C ar ee rs We ek . 18 , 2 0 0 + empl oye es u se d the E lev ate Lea rnin g pl at for m in F Y22 61 Experian plc Annual Report 2022 Strategic repor t Th e Global C od e of Co nduc t is supp or te d by detail ed p olicie s on sp ecifi c topic s such a s anti- co rr uptio n, confl ic ts of inter es t, gif ts and hospitality , fraud man agement, complai nt management, fair treatment of vulnerable consumers, product development and marketi ng, whistleblo wing and tax. We are commit te d to creat ing and maintainin g a robu st , ee ct ive an d appro pria te contr ol enviro nment to re co gnise wh ere op por tunitie s for financial cr ime exis t and mitigate the ass ociate d risk . We es tabl ish and maintain pro ces se s and pr oce dure s to monito r , dete ct and pr event ac t s of financial crim e agains t E xp erian by t hird p ar tie s or emp loye es , or thro ugh the unl aw f ul use of or a cce ss to i ts pro duc ts , se r vi ces o r data . If any financial crim e is detec te d that has b een co mmit ted by E xp erian em ploye es , we wil l take app rop riate discipl inar y and le gal ac tio n against t he indiv idual or indi vidual s invo lved . Our co mmitme nt to doing b usine ss resp onsib ly includ es our ap proa ch to tax . Forse veral y ears , we have p ublish ed our T ax Poli cy, which exp lains h ow we app roa ch our tax a air s. A s par t of our commi tment to increasing transparency , we have this year gone a s tep f ur th er and pu blishe d a Ta x Rep or t , whic h expl ains our ap pro ach to ta x gover nanc e and how we d eal wit h our ta x aair s, an d pro vide s mor e infor mati on on our tax contribution. Ant i-bribe r y a nd c orrup tion Our zero - toler ance app roa ch to brib er y and cor rup tion is s et ou t in our C ode of C on duc t and Global Anti-cor ruption Framework . We prohib it anyon e ac ting on b ehalf of E xp erian fro m oer ing an d/ or ac cept ing a br ibe , or making a f acilit atio n paym ent to o cials , in conne c tion wi th our bu sines s. T his inclu des employees, third par ties and suppliers . E xpe rian’ s Global Gi f t s and Hosp itali t y Polic y set s ou t str ic t ethic al st andards r ela ting to gif t s, enter t ainment, ho spital it y , spon sor ship, trave l exp ense s and dona tions . We als o havecont rol s to ens ure we c ondu ct any sponsorships, charitable contributions, apote ntial vio lati on, an d doe s not r epo r t it , couldb e subj ec t to discip linar y a cti on. We ask emplo yee s to st ar t by t alkin g to their manager i f they have c once rns . T hey c an als o rep or t any co ncer ns , anony mously i f they choose, through ou r 2 4-hour Confidential Helpline. The Helpline i s open to both employ ee s and thir d par t ies , and pr ovid es supp or t in lo cal l angua ges . We take any alle gation s of ethic al bre ache s ver y s er iously. All rep or te d con cer ns are investigated promptly by relevan t functions, such as Human Re so urce s, G lobal S ec urit y Oce or Global Fraud In vestigations, to identif y roo t caus es an d take app ropr iate co rr ec tiv e ac tion . This y ear , 47 concer ns we re re por ted. Th e major it y of the se (77%) con cer ne d human resources-relat ed matters. Resp ec tin g human r ig hts We are commit te d to resp ec ting an d prom oting human r ight s, inclu ding uph olding the United Nations Universal Decl aration of Human Right s (UDHR ), the United Na tions Guiding P rin ciples o n Busine ss an d Human Right s (UNGP) and t he Internat ional L abour Organiz ation (IL O) Standard s. T his is refl ec ted in our Co de of C ond uct an d as socia ted compl iance po licie s – which ev er yo ne at E xpe rian mus t confir m their c ommitm ent to ever y year . Thes e policies make clear that we do not tol erate any inf rin gem ent of human right s in our b usine ss or o ur supp ly chain. This ye ar , we co nduc ted an analy sis, ba se d on be st pr ac tic e, to ide ntif y s alient human r ight s for E xp er ian. We have publ ishe d a sta tement on sal ient human r ight s that se ts o ut our appro ach to ea ch of the se: h ealthy and s afe working conditions; workplace securit y; fre ed om of as socia tion; di ver sit y, equit y and inclusion; m od ern sl aver y an d for ced l abo ur; acc ess to gr iev ance m echanisms ; data prote ct ion and pr iv acy ; env ironment an d car bon emis sions . We rec ognis e that othe r human right s iss ues may b eco me rel evant toE xp erian in th e fu ture an d will r evi ew oursal ient iss ues on a r egul ar basis . We are commit te d to tre ating all o ur pe ople fair ly and wit h resp ec t. E x per ian is an accr edit ed L ivin g Wage emp loyer in t he UK , going b eyo nd th e legal minimum w age to p ay employ ee s the am ount the L iv ing Wag e Foundatio n has calcul ated to supp or t lobby ing or p oliti cal do nations e thical ly and in compl iance wi th all rele vant law s. Our sup plie rs are c ontr ac tually ob lig ed to ensure their employees, agents and subc ontr ac tors r efr ain fr om pay ing or rec eiv ing impr ope r brib es , fa cilit ation paym ent s, gr atuit ies or k ickba cks . If we ident if y any sup plie rs as high r isk fo r br iber y or cor r uption , we ref er the m to the C omplian ce team for f ur th er due dili genc e, includin g an ass es sment of co rr uptio n, re gulato r y and reputational risks. We condu ct p eri odic a sse ssm ent s to chec k forand mi tigate co rr uptio n risk s as par t of our Compliance M anagement Program me forth e busine ss . We als o fol low ri goro us due dilige nce pr oce dure s to ide ntif y any r isk of improper payments during merg ers and acquisi tions , or wh en we enter into j oint ventur es . Our Finan ce and Glo bal So urcing team s havetra ining and co ntrol s to de tec t and s top improp er p ayme nts , wi th supp or t from o ur Global Inte rnal Au dit team. I f we ident if y any conc ern s, we p romp tly inve sti gate them an d take appropriate action. T raining and compliance We str ive to cr eate a cultur e of integr it y w hich empo wer s our pe op le to make the r ight choic es . Our C ode of C ond uct make s clear thateve r yo ne at E xp er ian is acc ountab le for managing op er ational r isk ac ros s our busin ess ee ct ively to s afe guard ou r fut ure. All emp loye es (in cluding p ar t-tim e emplo yee s and cont rac tor s) complete man dator y tr aining on our C od e of Con duc t when t hey fir st jo in E xpe rian, an d re gular re fre sher tr aining ther eaf ter . Th ey are r equire d to ack nowl edg e their un ders tan ding and c onfirm t heir commit ment to th e Co de of Co nduc t ev er y year , an d we make sure t hat the y do so through ou r per formance review process. Weals o exp ec t manage rs to b e posi tive r ole mod el s for et hical b ehavi our . Any br each es of our C o de of Co nduc t or ass ociate d po licie s coul d under mine o ur repu tat ion and s takeh olde r tru st . Our T hre e Line s of De fenc e risk mana gem ent mo del reinforces ou r culture of complia nce. We enco urag e pe ople to r epo r t any susp ec ted pol icy b rea ch or unethi cal ac ti vit y w itho ut fe ar of repr isal s – and any one wh o know s abou t W ork ing with integr it y Sustaina ble business contin ued Wo rking with int egrit y is one of our core va lues and ce ntral to The Exper ia n Wa y of working. Our Gl obal Code of Conduct, availabl e in several lang uages, sets out clear g uida nce to help ever yone at Exp erian ma ke the righ t decisions. This year , we u pdated the Code to strengthen our gu idance i n key a reas such as hum an righ ts and facilitation pa yments. Scan me to vie w our T ax Rep or t Experian plc Strategic r eport 62 areas onabl e liv ing. A s s et ou t in our up dated Co de of C ondu ct , we supp or t our emplo yee s’ right to a liate o r not al iate wi th legal ly sanctioned organisations or associations without unla w ful in terference. Dive rsit y , e quit y an d inclusion (D EI) remain s akey fo cus wi thin our b usine ss (s ee pa ge 56) and our Gl obal DEI Repor t and beyo nd. We are a signator y to the UN Wom en’ s Emp ower ment Pr inciple s. E x per ian Nor th Ame ric a was a gain lis ted as o ne of th e be st pl ac es to wo rk fo r LGB TQ+ em ploy ee s, wi th a p er fe c t sco re in th e Human Right s Campai gn Foundati on’ s 2022 Cor po rate E qualit y In dex . Our co mmitm ent to DEI is al so f undame ntal to our p urp ose of creatin g a bet te r tomor row by mak ing po sitiv e change in th e wor ld and a cti vely sup por ting eor ts to clos e the financial w ealth gap of under ser ved co mmunitie s (se e page 5 6). Our Supp lier C o de of Co nduc t se ts o ut clear stan dards on human r ight s, an d we includ e claus es in o ur contr ac t s that obl ige sup pli ers to prote c t wor kers’ right s an d fre ed oms . We monitor com pliance throug h our thi rd-par t y risk mana gement f ram ewor k. We al so e xpe ct suppl ier s to set simil ar re quirem ent s for th eir own sup plier s and su bco ntra ctor s to ex ten d high st andards t hrou ghou t the supp ly chain. T ackling mo der n slaver y We reco gnise tha t mod ern sl aver y c an oc cur inany se ctor , any wh ere in th e wor ld. We are commit te d to doin g all that we c an to eliminat e the practice. E xpe rian is a fo unding m ember of th e Slave-Free Alliance, wh ich brings together busine ss es wo rkin g towar ds a slave -f re e wor ld. Fol lowing a c ompr ehens ive as se ssm ent of our appr oach by t he Slav e- Free Al liance , weare in th e final year of a thr ee - year improv ement p lan to dev elop our p roc es se s for identifying and preventing modern slaver y risk s in our sup ply chain. A quar terly s teer ing group, h ead ed by o ur Gro up Chie f Pro cure ment Ocer , manages implementation of the plan. T o gethe r with th e Slave - Free Al liance , we ran an event fo r supp lier s this year to in crea se awaren ess of m od ern sl aver y in t he supp ly chain. We under take an annual asse ssme nt car bon r educ tio n plans a s par t of o ur requ es t for pr op osal s to sup por t our Sc ope 3 emissio ns re duct ion tar get (s ee pa ge 6 7 ). We condu ct a r isk as se ssme nt of all the t hird par t ies we w ork w ith , includin g suppl ier s and indire ct cl ient s. O ve rs een by o ur Thir d Par ty Risk Managem ent team, w e ass es s risk s rel ated to dat a se cur it y and pr iv ac y , busin es s continuit y, complianc e and rep utati on (includin g brib er y , c orr upti on and m oder n slaver y). We will not wor k wi th – and ro utin ely reje c t – third p ar ti es that d o not up hold o ur stan dards o n criti cal is sues , such a s data securi ty. Of t he tho usan ds of thir d par ties we w ork w ith , mos t fall into t he minor o r mod era te risk cate gor y in our initial r isk as ses sme nt. T hos e we con sider hi gher r isk – bas ed on f ac tor s such as th e t yp e of pr oduc t or s er v ice t hey prov ide an d the t y pe of dat a they hav e acc ess to – are subj ec t to mor e in- d epth as se ssm ent s, oversight an d contro ls . A s our Fir st L ine of D efen ce, t he busin es s function that owns the relationship with the third p ar t y is re spo nsible f or ide ntif y ing , tra cking an d res olvin g any issu es . We test ourcont rol s pe rio dic ally , log ging and r es olvin g any issu es ide ntifi ed thr ough o ur centr alis ed global governanc e, risk an d complianc e sy stem . Rep or t s on ke y supp lier s, dr awn fro mnews s our ces ar ound t he wor ld , help us monito r risk s in our sup ply chain by aler ting procurement teams and supplier relationship manager s to any issu es . We are commit te d to supp or tin g diver se suppliers through our strategic sourc ing pro ces s that is d esign ed to o er a leve l play ingfie ld for al l third p ar ti es . In the US A , weare me mber s of the Nat ional Mino rit y Supplier Development Council, National LGBT Chamber of C omme rce, D isab ilit y :IN and the Women’s Business E nterp ris e Natio nal Coun cil. Thes e organisations have supporte d our year - on-year grow th of registered diverse andsmall busin es s suppl ier rel ation ships. Weals o plan to c omplete an analy sis of the diver sit y of o ur supp lier s in our UK b usine ss inthe co ming yea r . ofhigh- r isk suppl ier s to ensur e that the y have pol icies an d pro ced ures in p lac e to minimise the r isk of mo der n slaver y . Our Moder n Slaver y Statement provides further infor mation o n our commi tment , po licie s and ac tions to t ackle mo der n slave r y r isks in o ur busine ss and s upply chain . We are using o ur data and analy tics to sup por t wide r eor ts to ta ckle mod ern sl aver y an d contr ibute to t he Unite d Natio ns Sus tainable Dev elopm ent Go al 8.7 to eradic ate for ce d lab our . Wor kin g in coll abo rati on wi th the United Na tions Uni ver sit y Ce ntre fo r Polic y Rese arch and th e Univer sit y of No tt ingham’ s Right s Lab , our Dat aLa bs have dev elop ed a pre dic tive m ode l that draw s on a comb ination of datas et s to help p inpoint lo cat ions tha t may be v ulner able to mo der n slaver y risk s. We are now ex plor ing p otential app lic ation s for this tool by b uilding r elat ionship s with p ri vate and government organisations. We als o continu ed our w ork w ith Ho pe fo r Just ice to sup por t sur vi vor s of mod ern sl aver y thro ugh ad voc ac y and ad vic e ser vice s, including helping them prove their identity, acce ss cr edit r epo r t s and re solv e fr audulent debt s r acked up in t heir nam e. Th is year , o ur par tnership with Hope for Justice suppor ted 4 1 8 sur viv ors an d enga ged o ver 1 2,0 00 indiv idual s thro ugh comm unit y enga geme nt, outr each an d trainin g to help p reve nt exploitation and modern slaver y. Par tnering with suppliers Our Sup plie r Co de of C ondu ct r epre se nts t he minimum ethic al, l abo ur , human ri ghts an d environm ental st andards that all E x per ian suppl ier s mus t mee t. A s par t of their c ontr ac ts with u s, all sup pli ers mus t co nfirm that t hey acc ept our s tandar ds or have th eir own equi valent s tandar ds in pl ace . ES G cri teria ar e integr ated in o ur suppl ier selec tion pro cess alon gside commercial consi der ation s. T hro ugh our du e dilige nce proces s, we ensure that selection is dependent on sati sfa cto r y gove rnanc e of areas su ch as briber y, corr uption and modern slavery. W e have also strengthene d our su pplier selec tion pro ces s by r eque st ing det ail s of key supp lier s’ 63 Experian plc Annual Report 2022 Strategic repor t A s an infor mation s er vice s busine ss , our main enviro nmenta l impac t is the c arb on fo otpr int gene rate d fro m our op era tions an d value chain. Mo st of our f ootp rint (aro und 97%) ismade up of S cop e 3 gre enhou se gas emissio ns, p ar tic ular ly in the ca tego r y of Purc hase d Go ods an d Ser vice s, w ith S cop e 1 and 2 emis sions f rom o ur direc t op era tions making up the remain ing 3 %. We are commit te d to re ducing our c arb on emissi ons in lin e with o ur scie nce -b ase d tar get , vali dated b y the S cienc e Ba se d T arg et initiati ve (SBT i), and we ar e commit te d to be comin g car bo n neut ral in o ur own ope rati ons by 2030¹ . We re co gnise th e urgent nee d to acc eler ate ac tion o n climate chang e, and want to f ur th er our ambi tion s toward s net zero ². During t he comin g year , we will de velop our pl ans to de car bon ise our o per atio ns even fur t her and t ransi tion to ne t zero. Our T ask Fo rce o n Climate - Rela ted F inancial Disclosures ( TCFD) statement below sets out our commitment to mitigating climate-relate d risk s and har ne ssing o ppo r tunit ies fo r our pro duc t s and busin es s to suppo r t wi der climate ac tion. TCFD statement We reco gnise th e impor tance of id entif ying ande ec tive ly managing th e physic al and transi tional r isks t hat climate chang e pos es toour busin es s, as w ell as t he opp or tunitie s that climate change mitigation and adaptation create . In March 2021 , E xp er ian be came an ocial sup por ter of the TC FD. La st ye ar , we pub lishe d a ref eren ce sta tementt hat align ed w ith mo st of th e recommendations within the TCFD framework . This ye ar , fol lowin g comple tion of th e scenar io analysis, w e have rep or te d in alignment w ith the TC FD re comm enda tion s as set o ut on pag es 6 4 to 73. Th e sce nario analy sis per for med w ill l ay the f oundat ion f or continue d, re levant and ev olving dis closure s (including finan cial disclosures) as rec ommen ded b y the TC FD fr amewo rk . Risk management We are commit te d to ident if y ing, as se ssin g and managin g risk s and opp or tunities pre sente d by climate chan ge bot h now andinthe f ut ure. Climate - rela ted r isks ar e identi fie d and pri ori tise d using o ur es tabl ishe d Global Risk Managem ent gove rnanc e str uc tur e (outlin ed onpag e 85). This wel l- es tabli shed p roc es s forid entif ying, as se ssin g, re spo nding to an d rep or tin g busine ss r isks (s ee b elow) is compl eted at l eas t t wice a y ear to ens ure that i t remains ap prop riate an d that any ne w ac tiv itie s or change s to var iables hav e bee n capt ured . Th e fram ewor k comb ines a b ot tom -up appro ach – en gaging w ith loc al subj ec t mat ter exp er t s wh o have in- d epth kn owle dge of busine ss a cti vit y (Firs t and Se con d Line s of Def ence) – wi th a top - dow n global s tra tegic rev iew of ri sks ( T hird L ine of D efenc e). Gover nance Th e Boar d over se es our cl imate st rate gy (includin g climate -r elate d risk s and opp or t unitie s pre sente d in this TC FD sta tement , along w ith p rogr es s agains t our scie nce - bas ed tar get an d our c arb on ne utr al commit ment) an d is re spon sible for t he appro val of disclo sures in t his rep or t . Th e Global H ead of Sus tainab ilit y is re spo nsible f or implementation of ou r climate action plan, with supp or t an d over sight fr om our E SG Ste er ing Commi t tee, chair ed by th e Chief F inancial Oc er . Th e Group O per atin g Commi t tee re cei ves regul ar upda tes on o ur climate ac tio n plan andthe C hief E xe cuti ve O ce r rep or t s on E S G ac tivi tie s and pe r for mance , includin g thos e rel ated to clima te change, a t ever y Board mee ting . Th es e rep or t s inclu de pro gre ss o n str ategi c dri vers to a ddre ss cl imate -re late d issu es, s uch as our s cien ce -ba se d targ et and TCFD reporting. Th e Audit C ommit te e rev iews an d appro ves our re gister of cl imate -re late d risk s and opportunit ies an d ove rsees our response, ensuring that the Board has full oversight. Risks ar e identi fie d and as ses se d at pr ojec t and re gional lev el, o vers ee n by the Risk Management Committe es that repor t to the E xecut ive Risk Manag ement C ommit te e (ERMC). Se e pa ge 85 for m ore on r isk managem ent. Our environmental management systems helpu s dri ve continu ous impr ovem ent s in minimising the env ironm ental fo otpr int of ourop era tions , includin g climate imp act , andensur e we comp ly with lo cal r egul ations . Local environmental management systems acro ss the b usine ss are al igne d wit h the internatio nally rec ognis ed ISO 1 40 01 :201 5 stan dard , and four of o ur sites – t hre e in the UKand on e in Bulgar ia – maintain ce r tifi cat ion to this st andard t hrough e x ternal au dit s. Prot ec ting the envir onment 1 A ll r ef er enc e s in th is A nnu al Re po r t to ‘c ar b on n eu tr al in o ur o wn o pe ra ti on s by 20 30 ’ in clu de s al l Sc op e 1 an d 2 em is si ons , plus wi thi n Sc op e 3 th e c ate g or ie s of ‘ Pu rc has e d Go o ds & S er v ic e s’, ‘Bu sin es s Trave l ’ an d ‘F ue l-a nd - en er gy - re la te d ac ti v iti e s’ (wh ic h re pr es en t 83% o f ou r ba se lin e em is si ons i n Sc op e 3). T hi s is al ig ne d wi th t he e mis si on s co ve re d by o ur s cie nc e -b as e d ta rg et app ro ve d by t he S BT i . Ref er t o pa ge s 6 4-71 for f ur the r inf or ma ti on . 2 N et ze ro a s de fin ed b y th e mo st r e ce nt s tan da rd f ro m th e SB T i ini ti ati ve . Step 1 Risk identification a Consider key business objective s a I denti f y pr incipal r isk s a Identif y key controls Step 4 Risk repor tin g and monitor ing a Busine ss unit an d re gional leve l a Re gional Risk Manag ement C ommit te es and E xecu tive Risk Mana gem ent Comm ittee a Au dit Commit tee Step 3 Risk response a Acc ept or r eme diate cur rent r isk and control en vironment a D eter mine c orr ec tiv e ac tion i f nee de d Step 2 Risk assess ment a Asse ss con tro ls a E s timate likel ihoo d, impa ct an d veloci t y a C onsider financial , legal , regul ator y, repu tati on and co nduc t ex posu re Sustaina ble business contin ued We a re committed to helping tac kle cli mat e change a nd reducing ourim pact on the envi ronment. Experian plc Strategic r eport 64 Be caus e of their na ture, cl imate -r elate d ri sks can b e pre sente d to the o rganisa tion in dier ent way s (for example : throu gh pol ic y and regulation , product adaptation, operational disruption, market volatilit y and other external fac tor s), and ther efor e to ensur e a thor ough analysis and id entifi cati on we ra n a ser ies of foc us group s with inter nal s takeho lder s fro m areas w here ke y climate -r ela ted r isks c ould aris e. This s uppo r ted th e pro ces s of identi fic ation of any sp eci fic r isks to, an d opp or t unitie s for , our busin es s. T he r esult ing climate -spe cific r isk s and opp or tuni ties regis ter wa s use d to per form a s cenar io analysis (se e pag es 65 -67) to asse ss th eir likelih oo d and impa ct to o ur busine ss . Key risk s that ar e ident ifie d as a re sult of this pro ces s are maint ained in t he Glob al Risk Inventor y , rev iewe d by the E RMC , agr ee d with by the Au dit Co mmit tee an d pre sente d to the Boar d. At pr ese nt, climate chan ge is clas sifie d as an emerging risk . Strat egy We reco gnise th e pote ntial for clima te- rel ate d risk s and op por tunitie s to a ec t our busin es s, and we are f ollow ing th e TCFD rec omme ndati ons to he lp us as se ss th es e. We have revi ewed t he climate r isk s and opp or tuni tie s that exis t acr oss o ur busine ss line s, an d acro ss th e regi ons in wh ich we ope rate , by enga ging wi th key inter nal stake hold ers . T his pro ces s has enab led us tocreate a c ompre hensi ve climate r isk and and as se ss th em over a lon ger tim e per io d, under t wo di er ent climate chan ge proj ec tion s, to und ers tan d their p otential financial impac t. We used t w o proj ec tion s for our cl imate scena rio modelli ng: a High - car bon sc enario (4 °C): A ‘wor st-c ase’ scenario of climate change that projects global gre enho use gas em ission s continuin g to ris e (ba se d on Repr es ent ativ e Car b on Pathway , RCP 8.5). In this scenario, subs tantial phy sical imp act s of clima te change aris e. a L ow- c arb on sc enari o (2°C): An ‘aggre ssiv e mitigation ’ scenario that limits the global temper atur e ris e to be low 2°C (bas ed on t he International Energy Agenc y’s Sustainable Development Scenar io) . In this scenario, transitional risks predominate. We used t hes e sc enari os to as se ss our exp osure an d vuln erabil it y to climate - rel ated risk s, d emon str ate th e resil ienc e of our climat e change s trate gy, and gain a high- leve l under stan ding of the financial impl ications ass ociate d wi th the r isks an d opp or t unitie s under t he t wo di ere nt fut ure s cenar ios . Th e table b elow ou tline s E xp erian’s climate-r elate d risk s and op por tunitie s, an d the O ver view column b elow pro vid es insight into t he impac t s of the r isks an d opp or tuni tie s on E xp erian’s busine ss , str ateg y and financial pl anning. opp or tuni t y re gister i denti f yin g a wide r ang e of physic al and tr ansitional cl imate -re late d risk s and opp or tunitie s acro ss shor t- (one to two year s), medium - (two to fi ve ye ars) and long -ter m (fiv e or mor e year s) timef ram es . This cl imate -spe cifi c risk and o ppo r tuni t y regis ter has b een d evelop ed in a ccor dance with our Global Risk Management framewor k to ensur e the r evi ew was p er f or med a s a ful ly in tegra ted p rocess. We prev iously id entifi ed eight cl imate -r elate d risk s and fo ur climate -r elate d opp or t unitie s that are mate rial to our b usine ss , bas ed on a high-level assessment of their li kelihood and the p otential s ever it y of th eir impac t on th e busine ss . Mor e det ail on this init ial ass es sment is publ ished o n pag e 54 of our A nnual Rep or t 2021 . Th e material r isk s are defin ed as th ose tha t have the p otential to have a si gnific ant ee c t on our op era tions , st rate gy or financial per forman ce if th ey are not s uitably c ontro lle d. Th e material o ppo r tunit ies ar e thos e that have the potential to enhan ce the financial per forman ce of the b usine ss . Our wo rk in this area co nsiste d of a high- leve l ass essm ent of climate -r elate d risk s and o ppor tunitie s, consi der ing th e likel ihoo d of th e risk o ccur r ing and the s eve rit y of t he impa ct on t he busin es s. Scenario analysis This y ear , we wo rke d with e xte rnal ex per ts tocondu ct a clima te scenar io analysis . T he st ar ting p oint f or our wo rk wa s to take th e risk s and op por tunitie s we id entifi ed l ast ye ar Risk/Opportunity Risk/Opportunity Overview Maturity of assessment Transition risks Compliance Ensuring Experian meets with global and regional climate change commitments Product adaptation Ensuring existing products and services adapt to consumer and client demand on climate change Investor sentiment Climate change strategy and environmental performance influencing investor decision-making Carbon taxation Increased costs associated with carbon taxes and increased expenditure on purchased goods and services Climate disclosure Reputational impact associated with Experian’s climate change commitments, strategy and disclosures Physical risks Energy demand Increased operational costs associated with resources to ensure business operation Extreme weather events Disruption to demand for products and services associated with extreme weather events Climate migration Markets disrupted by climate-related weather events Opportunities New service lines Developing solutions to take to market that minimise the impact of climate change New markets Adaptation to climate change means new markets for solutions are created Access to finance Increased ability to access credit and funds through strong ESG credentials Low-carbon transition Oering products and services to support consumers and businesses in their transition to the low-carbon economy Climate -relate d financial risk s and opp or tunities for o ur business Comprehensive understanding of risk drivers and contr ol measures in place to mitigate, adapt to risk, capitalise on opportunity . Key: Further work is requir ed to understand regional risk drivers and contr ol measures in place to mitigate, adapt to climate risk, capitalise on opportunity . 65 Experian plc Annual Report 2022 Strategic repor t Aspect Financial impact Scenario Financial impact over time horizon Pre 2025 2025-2030 2030+ Compliance Investor and consumer investment Low carbon High carbon Product adaptation Customer and consumer purchasing behaviour Low carbon High carbon Investor sentiment Reputational impact associated with lack of climateaction Low carbon High carbon Carbon taxation Increased operational cost from operating infrastructure Low carbon High carbon Climate disclosure Shareholder expectation on delivering climate change commitments Low carbon High carbon T ran sition r isk s could p res ent a signi ficant chal leng e to our busin es s and we are c ommit ted to mi tigatin g their p otential imp ac t s. O ur high- leve l analysis highli ghted that o ur climate ac tio n plan is cr itic al to dem ons trat ing st rong cl imate ste wardship an d pro gre ss towar ds our c arb on n eutr al commitm ent, an d our app roach to c arb on re duc tion an d tran sparent cl imate disclos ures is of p aram ount impo r tanc e to our s takehol ders . Sustaina ble business contin ued T ransition r isks by time hor izon and climate scenar io Physical risks by tim e horizon an d climate scenario Low Key: Medium High Low Key: Medium High Aspect Financial impact Scenario Financial impact over time horizon Pre 2025 2025-2030 2030+ Energy demand Increased operational cost associated with meetingenergy demand for infrastructure includingdata centres Low carbon High carbon Extreme weather events Disruption to business operations from impact ofclimate change Low carbon High carbon Climate migration Customers and consumers are aected by chroniceects of climate change resulting indisrupted markets Low carbon High carbon Our op er ating m ode l has pro ven to b e resil ient to signi ficant p hysic al disrup tion , as ex per ien ced sin ce the o nse t of the C OVID - 1 9 pand emic . Wecurr ently op era te a small number of r egi onal data c entre s that are b usine ss- cr iti cal as set s and e xp osure to e xt reme w eath er events is already consi dere d fr om a busine ss c ontinuit y an d disas ter re cove r y p ersp ec tiv e. Th e mos t crit ical phy sical r isk to our b usines s rel ates to t he chroni c ee ct s of clima te change and imp ac ts f rom e xt reme w eath e r event s that couldl ead to clima te migrat ions , whic h may resu lt in consum ers b ec oming financial ly exclude d as a re sult of b eing unable to a cc es s thei r data anddem ons trate t heir financial i dentit ies . Th es e impac t s are mo st signi ficant un der th e high- c arb on sc enari o we mo delle d. O ur pl ann ed re gional analysis will h elp us de termin e areas t hat are par ticular ly vul ner able to th e physic al ee ct s of climate chan ge. Experian plc Strategic r eport 66 Metrics and target s Our climate chan ge s trate gy is und erp inned b y our commi tme nt to be come c ar bon n eutr al in our ow n ope rati ons by 20 30. Our climate goals a Be com e car bo n neu tra l in our own operations by 2030 ¹: – Scop e 1 and 2 (1 .5º C scenar io): re duce abso lute Sc ope 1 an d 2 emissi ons by50% by 2030 (fr om 201 9) – Sco pe 3 (2 ºC s cenar io): reduc e absolu te Sco pe 3 emis sions f rom P urchas ed Go ods and S er v ice s, B usines s T r avel , and Fuel-and-energ y-rel ated activ ities² by 1 5% by 2030 (fr om 201 9) a O set 100% of our Sco pe 1 and 2 e missio ns by 202 5 We use th ese m etr ic s and tar get s to as se ss and manage r elevant cl imate -r elate d risk s and oppor tunities ass ociated with our operational per formance. We reco gnise th e impor tance of climate change to our s takeh olde rs and t he incre asing emphasis o n achiev ing ne t zero emis sions globally, followin g the C OP26 climat e confe renc e and th e late st re por t from t he Intergovernmental Panel on Climate Change. We want to fur ther our ambi tion an d We will cont inue to inve st in en erg y ecie ncy proje c ts an d technolo gie s for our as set s aroun d the wor ld, an d so urce mo re ren ewabl e elec tr icit y . We cu t the c arb on inten sit y of our direc t emis sions³ b y 1 6% this year to 2.6 tonne s of CO 2 e per US$1 m of reve nue. T o achi eve ou r Sco pe 3 ta rget , our main f ocu s is on enga ging wi th supp lier s to re duce th e foot pr int of the pr odu ct s and s er v ice s we bu y , which make up 77% of o ur Sco pe 3 emis sion s. We are emba rkin g on a pr oc es s to gather ac tual Sc ope 3 e missio ns data f rom o ur suppl ier s, bu t since t his is not cur rent ly availab le, we have fol lowe d common b es t pra ct ice to es timate o ur Pur chase d Go ods an d Ser vice s emissio ns cate gor y using an E xte nde d Econ omic Inpu t-O utpu t (EEIO) mo del that us es ex pe ndit ure dat a. O ur rep or t ing meth odo log y for th is calcul atio n can b e foun d on our website . Bas ed on t his es timate, o ur combin ed S cop e 3 emissi ons over t he se lec ted c ateg ori es of our scien ce -b ase d tar get (namely P urcha sed Go ods and S er v ice s, B usines s T r avel , and Fuel-and-energ y-rel ated activ ities) for FY22 show an incr ease of 2% c ompar ed wi th the 201 9 b ase line. T his r ise in emis sions is du e toan increa se in ex pen ditur e as a re sult of busine ss gr ow th (29% re venue gro w th acr oss our re gion s over th e la st thr ee y ears). A s our scien ce -b ase d tar get is an abs olute t arget , commit ment towa rds ne t zero and , in the coming y ear , we w ill deve lop our pl ans to dec arb onis e our op era tions e ven f ur the r and transi tion to n et zero as d efine d by the m ost recent stand ard fro m the S cien ce Ba se d T arget initiative. We measur e and publ icly re por t Ex per ian’ s car bo n foo tpr int wit h cer t ain data , subje c t to assur anc e (se e page 69). This year , we r educ ed our Sc ope 1 an d 2 emis sions by a f ur t her 1 % to 1 6.4 t hous and tonn es of CO 2 equiv alent (CO 2 e). Since 201 9 , w e have achie ved a 4 4% reduc tion in Sco pe 1 and 2 e missio ns, o n our way to achiev e a 50% re duc tion by 203 0 and me et our scienc e-based target. This r educ tio n was due to th e combinat ion of vari ous fa cto rs , including inte rmit te nt closure of our oc es as a r esult of lo ca lise d COV ID - 1 9 res tr ic tions , emb rac ing new fl exib le ways of wor king th at have re sulted in a d ecre ase in building o ccup anc y , and co nsol idatio n and redu cti on of oc e space . T o enabl e the de live r y of our S cop e 1 and 2 scie nce - bas ed ta rget , we have w orke d wit h colle ague s acro ss th e busine ss to i dentif y opp or tuni tie s to redu ce our op er ational emissi ons . This ye ar , th e focu s was on usin g our oce sp ace smar t ly and re ducing our o veral l buildin g foot pr int wher e flex ible wo rk ing has redu ced t he deman d for o ce spac e. 1 In cl ud es a ll S co pe 1 a nd 2 e mi ssi on s , as we ll a s Sc op e 3 e mis si on s fr om ‘ Pu rc has e d Go o ds an d S er v ic e s’, ‘Bu sin es s Trave l ’, an d ‘ we ll to t an k ’ (w hic h re pr es en t 83% o f ou r ba se lin e em is si on s in Sc op e 3). Th isisa li gn ed w it h th e bo un dar i es c ov er ed b y ou r sc ien ce - ba s ed t ar ge t ap pr ove d b y th e Sc ien ce B a se d Targe t ini tia ti ve . On ce e mi ss io n re du ct io ns h ave b e en a chi ev ed i n lin e w it h our s ci en ce - ba se d t ar ge t, E xp er ia n wil l o s et t he r ema ini ng e mis si on s wi th in th e b oun da ri es o f ou r sc ie nc e- b as ed t ar ge t to a chi ev e ca rb o n ne utr a li t y by 2 030. 2 A l so k no wn a s ‘we ll -t o- t ank ’, is a n ave r ag e of al l th e gr ee nh ou se ga s em is si ons r el ea se d in to th e at mo sp he re f ro m th e pr od uc t ion , p ro ce ss in g an d de li ver y of a f uel o r en er g y. 3 D ire c t em is sio ns i nc lud e al l Sc op e 1 an d S co pe 2 m ar ket- b as ed e mi ss ion s . Aspect Financial impact Scenario Financial impact over time horizon Pre 2025 2025-2030 2030+ New service lines Increased revenue associated with the delivery ofnew propositions Low carbon High carbon New markets Access to new markets as populations migrate asaresult of climate change Low carbon High carbon Access to finance Increased ability to access credit and funds throughstrong ESG credentials Low carbon High carbon Low-carbon transition Improved reputation and operational revenues fromfacilitating the transition to a low-carbon futureand mitigating the eects of climate change Low carbon High carbon Th e climate -r ela ted op por tunitie s for our b usine ss ar e greater w ithin th e low- c arb on f utur e scenar io we m ode lled , as the y rel at e to th e potent ial of our busine ss to sup por t and facil ita te the tr ansiti on to a low- c arb on f utur e. De mons tr ating h ow the se op por tunitie s can tr ansl ate i nto financial pe r for mance has the p otential to imp rove o ur ES G cre dential s wi th inves tor s and E SG r atings a genci es , and influe nce our ab ilit y to at t rac t a n d reta in inves tor s. Our ne xt s tep on t he TCF D jour ney is to analy se th e spe cific imp ac t of climate -r ela ted r isks an d opp or t unitie s in rel ation to t he p ro duc ts an d ser vice s we pro vide an d the r egio ns wh ere we o per ate. T his wil l help to en sure we t ake a pro ac tiv e, con sistent an d emb edd ed app roa ch to mitigating risks and capi talisin g on op por tunitie s acro ss ou r busine ss . We als o plan to de velop o ur appro ach and m etho dolo gy fo r the financial quant ific ation of cl imate -re late d risk s and op por tunitie s. We under st and that this is just t he be ginning of o ur jour ney and r ec ognise i ts imp or tance in info rmin g our climate chan ge st rate gy. Low Key: Medium High Opp or tunities by time ho rizon and climate s cenario 67 Experian plc Annual Report 2022 Strategic repor t Th e Kasiga u REDD + Proj ec t Phas e II – T he Communi t y Ranche s – fr om Wil dlife Wor k s is the fir st pr oje ct in th e wor ld to iss ue REDD + car bon o s ets un der th e VCS s tan dard, an d is also cer tified with Clim ate, Community and Biodiversit y (CCB) Gold Level . weare co mmit ted to cu t ting tot al emissi ons desp ite the b usine ss gro wing . We are enga ging with o ur supp lier s tounde rs tand h ow the y can redu ce their e mission s and, if r equir ed, w ill swi tch to supp lier s that c an b et ter sup por t our tar get . A sthis pro ce ss t akes tim e, we e xp ec t som e increa ses in e missio ns bef ore our initiatives begin to deliver reduc tions. However , we remain c ommit te d to deli ver ing a 1 5% redu ct ion in the se S cop e 3 emis sions by 203 0. Movin g for ward we have i denti fied th e top 200 carbon -intensive suppliers based on spend and we pl an to us e data fr om CD P (for mer ly know n as Ca rb on Dis closur e Proj ec t) to up date our es timate s wit h ac tual data f rom s uppli ers . This w ill allow us to r ecal ibr ate our figur es and get a mo re ac cura te scal e of the fo otp rint in the P urchas ed G oo ds and S er v ice s cate gor y ofSco pe 3 emis sions . In F Y22, we sign ed up to p ar tic ipate in th e CDPSup ply Chain Pr ogr amme to p rogr es s our wor k with o ur top 200 sup plie rs glob ally and ensure our clim ate change commitments arere flec ted an d ampli fied a cros s our value chain. Our s upply chain pl ays an imp or tant rolein a chiev ing our c arb on re duc tio n targ et for S cop e 3 and we ar e keen to e xplo re opp or t unitie s that ca n help to a ccel era te ourde car bonis atio n plan . Thr ough th e CDP Supply C hain Pro gramm e, we w ill enga ge wi th suppliers to understand their clim ate strate gy (includin g scie nce - bas ed tar get s and n et zer o car bon r educ tio n plan s wher e rele vant), rev iew the ir per forman ce and id entif y ways tored uce th e car bo n intensit y of t he pr odu ct s and se r vices we purch ase from them. This y ear , we we re inclu ded o n the CD P Supplier Engagement Leaderboar d 202 1, rank ing amon g the top 8% of c ompanie s for supplier engagement on clim ate. This is based on our ‘ A ’ S uppl ier En gage ment Rat ing , outp er formin g the ‘ B-’ av era ge fo r bot h the Europ e regi on and th e global sp eciali sed profess ion al se r vices sect or . Once we ha ve achieved our science-based targ et and re duce d our em ission s as far as pos sible , we will inv es t in high- qual it y c arb on os et tin g proj ec t s to os et the r emaining Sco pe 1 , 2 and 3 emis sion s within t he boun dari es of our s cien ce -b ase d tar get to achiev e car bo n neu tral it y in our o wn ope rati ons by 203 0. T o sup po r t this jo urn ey, aspar t of o ur se con dar y car b on o set tin g commit ment , we o set 20% of o ur F Y21 Scop e 1 and 2 emis sions an d are o set tin g 40% of our remainin g F Y22 emis sion s. We will grad ually incr ease t his to os et 1 00% of ou r Sco pe 1 and 2 e missio ns by 2025. By tracking and disclos ing these metrics and targ et s we make sure w e continu ously as se ss and manag e some of o ur key climate - rel ated transitional r isks (par ticularly comp liance withcl imate change co mmitme nts , inves tor sentiment associated with our environmental per formanc e and climate dis closure a s ma ndat ed and/ or expect ed by stakeh olde rs) and the p hysic al risk of en erg y demand a s outl ined o n the ‘Cl imate -re late d financial ri sks and opp or tunitie s for o ur busine ss’ tab le on page 65. This y ear , we inv es ted in a Ver ifie d Car b on Standar d ( VC S) os et ting p roje c t in Kenya that will not o nly avoid c arb on emis sions , but al s o suppor t climate adaptation, promote bio diver sit y, bring a dde d value to c ommuniti es and cont rib ute to 1 1 of the 1 7 Unite d Natio ns Sust ainable D evelop ment G oal s. T he Ka sigau REDD + Proj ec t Phas e II – Th e Comm unit y Ranche s – fr om Wil dlife Wor k s is the fir st proj ec t in the wo rl d to issu e REDD + car bon os et s under t he VC S st andard , and is al so cer ti fie d with Cl imate, C ommunit y and Biodiversit y (CCB) Gold Level . The project aims to prote ct m ore t han 500,00 0 acr es of Kenyan for es ts un der th reat f rom c at tle f arm ing by providing communities with alternative income opportun ities, traini ng wil derness gua rdi ans, and securing a wild life migration corridor bet we en th e T savo E as t and T s avo Wes t national par ks . Cutting out single-use plastics In 2020, we commi tte d to elimina ting as mu ch single - use pl as tic as p ossib le in E xp erian - contr olle d fa ciliti es wi thin t wo y ears , bu t ac tion was p ostp one d as th e number of p eo ple wor king in o ur facil itie s was signi ficant ly redu ced dur ing t he COV ID - 1 9 pan demic . O ver the l ast ye ar , we have as se ss ed th e impac t of change s in wor king p at ter ns on our us e of single -use p lastic s. Bas ed on an a ss es sment of ex pen ditur e on single - use p las tic in ou r contr olle d facil itie s for the l ast th ree y ears (w here av ailab le) ¹ , we foun d that 99% of sin gle - use pl as tic ite ms we buy ar e rel ated to f oo d and drink ². Hot dr ink cups , stir rer s and c oe e/ milk p ods³ – o ur top 1 O ur m eas ur in g exe rc is e ca pt ur ed 4 3% o f ou r glo ba l op er at io ns b as ed o n he ad co un t. 2 L es s th an 1% of sin gle - us e p la st ic i tem s ar e no n -f oo d an d dr ink r el at ed , fo r ex am pl e env el op es w it h pl as ti c wi nd ow s. 3 B as ed o n th e nu mb er of i te ms c on sum e d in 2019 (for N or th Am er i ca fi gur e s ar e pr ima ri ly f ro m 202 0) by l oc at io ns participating in the exercise. thre e single - use p las tic i tems – make up 8 6 % of the tot al. By r emo ving o r rep lacin g the se t hre e item s, we anticipate th at we could achieve a reduction of over 70% in tota l single - use pl as tic f rom allrep or ting sites (b as ed on th e initial dat a gathe red f rom o ur lar ge st site s in the US A and Braz il). Som e non -p las tic alter nati ves have alrea dy b een int rod uce d in key loc atio ns. We have develop ed a sin gle -us e pl asti c pilot pro gramm e to refine an d vali date our ass es sment thr ough au dit s and inter views , establish an accu rate baseline th at factors inflexib le wor kin g and new w aste s tr eams res ulting f rom th e pand emic , and enabl e reliab le scal ing. I t will b e implem ented in th e coming y ear at s ome of our l arg es t sites (bas ed on h ead count ) acr oss o ur re gions . Th e pilot pro gra mme will h elp us gat her loc al insight s on way s to phas e out sp eci fic t yp es ofsingle - use pl as tic ite ms that w ill infor m aroa dmap for ac ti on. Sustaina ble business contin ued CDP Supplier Eng agement Rating ( SER): ‘ A’ rating . E xp er ian was r ec ogni se d as a Supp lier E ngag eme nt Lea der in t he 2021 CDP Supplier Engagement Leaderboard – the to p 8% of com pani es w ho co mple ted the f ull cl imate que st ionnair e in 2021 Financial Times: Ex pe rian w as id enti fie d as one o f Europ e’s Climate Le ade rs 2022 by th e Finan cial T ime s and St ati st a Ex ter nal recognition in F Y22 Experian plc Strategic r eport 68 Carbon emiss ions CO 2 e¹ Unit 2022 2021 2020 2019 Scope 1 000s tonnes CO 2 e 2.5 a 2.2 3.0 3.6 Scope 2 (location-based)² 000s tonnes CO 2 e 21.1 a 22.2 25.5 29.8 Scope 2 (market-based)³ 000s tonnes CO 2 e 13.9 14.3 22.1 25.6 Total Scope 1 and Scope 2 (market-based) 000s tonnes CO 2 e 16.4 16.5 25.1 29.2 Scope 3 (Purchased Goods and Services) 000s tonnes CO 2 e 412.0 a 350.9 378.9 357.4 Total Scope 3 000s tonnes CO 2 e 532.9 453.9 493.4 495.3 Total emissions 000s tonnes CO 2 e 549.3 470.4 518.5 524.5 Total emissions normalised by revenue – per US$1m revenue tonnes CO 2 e/US$1m revenue 87.4 87.6 100.1 107.9 1 CO 2 e emi ss io ns e xcl ud e any c ar b on o s et s p urc ha se d by E x p er ian . 2 We h ave c al cu la te d lo ca ti on -b as e d Sc op e 2 em is si ons u si ng t he In te rn ati on al En er g y Ag en cy ( IE A ) c ar bo n em is sio n f ac to rs f or e lectri city. 3 We h ave c al cu la te d mar ke d -b as e d Sc op e 2 em is sio ns u sin g el ec t ri ci t y sup pl ie r em is sio n fa c to rs w he re a vai la bl e. W he re t he s e we re n ot av ai lab le , we u se d r es idu al em is si on f ac to rs . I f re si dua l fa c tor s wer e n ot av ail ab le w e us ed l oc a tio n -b as e d fa ct or s . 4 In cl udi ng S co p e 1, Scop e 2 (m ar ket- b as ed ) and t ot al S co pe 3 . 5 T he r ep o r ti ng m et ho do lo gy f or 2 021 is a va ila bl e at h tt ps ://ww w.ex pe ri anp lc .c om /me dia /4259 /ex p er ian - su st ain ab le - bu sin es s -p er fo rmance- data-2 021 .pdf. ª T he 2 022 d at a for S c op e 1, Sco pe 2 ( lo ca ti on -b as e d) an d Sc op e 3 (P ur ch as ed G o od s an d Se r v ice s) e mis si on s ha ve b ee n sub je c t to l imi te d as su ra nc e by P w C . Pl ea se r ef er to o ur 2 022 C ar b on Re p or t in g Pr in cip le s an d Me th od ol og ie s do cu me nt an d P w C ’s lim ite d as s ur anc e re p or t a t ht tp s: / /w w w. ex pe ri anp lc .c om /re sp on sib ili t y/data - and -assur ance/ . SECR indicator Unit 2022 2021 Scope 1: Global (excluding UK) 000s tonnes CO 2 e 2.0 1.9 Scope 1: UK 000s tonnes CO 2 e 0.5 0.3 Scope 2 (location-based): Global (excluding UK) 000s tonnes CO 2 e 16.7 16.8 Scope 2 (location-based): UK 000s tonnes CO 2 e 4.4 5.4 Total Scope 1& 2 (location-based): Global (excluding UK) 000s tonnes CO 2 e 18.7 18.7 Total Scope 1& 2 (location-based): UK 000s tonnes CO 2 e 4.9 5.7 Energy consumption used to calculate above emissions: Global (excluding UK) kWh 50,859,896 51,154,107 Energy consumption used to calculate above emissions: UK kWh 24,358,946 25,401,992 Total emissions normalised by revenue – per US$1m revenue: Global (excluding the UK) tonnes CO 2 e/US$1m revenue 3.4 4.0 Total emissions normalised by revenue – per US$1m revenue: UK tonnes CO 2 e/US$1m revenue 5.9 7.7 Sp ec ifi c to SE CR di sc lo sur e: E x p er ian d oe s n ot ha ve a ny ‘o sh or e’ op e ra tio ns . T he re fo re , wh er e th e ‘U K ’ is r ef ere nc e d in th e in d i ca to rs a bo ve , it i s th e sa me a s ‘U K an d o sh or e’. Sources of Scope 3 emissions Unit 2022 2021 2020 2019 2022 contribution to Scope 3 (%) Purchased Goods and Services¹ 000s tonnes CO 2 e 412.0 350.9 378.9 357.4 77.3% Fuel-and-energy-related activities¹ 000s tonnes CO 2 e 6.3 3.9 4.2 6.2 1.2% Business travel¹ 000s tonnes CO 2 e 1.8 0.3² 15.2 49.1 0.3% Upstream leased assets 000s tonnes CO 2 e 45.3 35.4 31.0 17.5 8.5% Capital goods 000s tonnes CO 2 e 40.8 40.4 31.4 31.2 7.7% Employee commuting 000s tonnes CO 2 e 17.8 13.7 24.8 24.6 3.3% Investments 000s tonnes CO 2 e 8.6 8.9 7.7 4.3 1.6% Waste generated in operations 000s tonnes CO 2 e 0.3 0.4 0.2 5.2 0.1% Total Scope 3 000s tonnes CO 2 e 532.9 453.9 493.4 495.3 Subset of emissions within Scope 3 science-based target (Purchased Goods and Services, Business Travel, and Fuel-and-energy-related activities) 000s tonnes CO 2 e 420.1 355.1 398.3 412.6 1 S co pe 3 e mi ss ion s wi th in s ci enc e - bas e d ta rg et s . 2 O nly c ov er s em is sio ns f ro m ai r tr av el . Scan me Our 2022 Rep or ting Pr incip les and M eth od olo gie s can b e found here Carbon emiss ions Source s of Scope 3 emis sions relevant to our busines s Streamlined Energ y and Car bon Rep or ting (SEC R) Disclosure 69 Experian plc Annual Report 2022 Strategic repor t Climate-r elated opportunities E xperian is i nnovati ng to creat e oppor tun ities that wi ll help our clie nts and consumers ad apt to a nd mitig ate the eects of clim ate ch ange. W e are also seeing a ma rked increase i n enqui r ies from clients, such as fin anci al institutions, for da ta and ana lytic s ser vices that can su ppor t them in understandi ng emissions i n their s upply ch ains, an alysi ng physica l and transiti onal cli mate-related risks in the ir por t folios, and assessing applications based on the clim ate c redenti als of the assets or organisa tions to be funded. Sustaina ble business contin ued Product innovation Our ex istin g decisio ning too l s can he lp client s mee t the se ne ed s by br inging da ta and analy tic s into ope rati onal pro ce ss es and organisations. We are als o deve loping ne w pro duc ts and ser vice s spe cific ally de signe d to capt ure climate -r ela ted opp or tunitie s for our b usine ss , and supp or t o ther s to under st and and r educ e their c arb on f ootp rint s . This ye ar , we co llab or ated w ith car b on foo tpr int tra cking e xp er t C oG o to create a w ay for bank s that u se E xp er ian’ s ‘ Lo ok W ho’ s Chargin g’ solut ion to o er cons umer s in Aust ral ia the abil it y to tr ack th eir car b on emissi ons dire ct ly via the ir bankin g apps using our data in sight s. We al so he lpe d loc al relationship bank Handelsbanken encourage UK dri ver s to make more s ust ainable cho ices when i t com es to ca r purcha se s by analysing and re ducing th e number of high - car bon emissi on car s wit hin it s curr ent len ding port foli o. Brazil Our ne w Smar t E SG pl at for m for a grib usine ss enable s client s to as se ss and m onitor t heir por tfo lio ba se d on comp liance w ith E SG regul atio ns, in cluding t hose r ela ted to top ics such as deforestation, environmental and social v iolations , and banne d and prote cte d areas . T he pl at for m has alr ead y help ed 2 91 client s as se ss mo re than 1 29 ,00 0 agri cultur al pro duce rs acr oss 104 million h ec tare s of lan d in Brazil , inclu ding id entif y ing ov er 6,60 0 prop er ti es wi th banne d areas an d 4 7 ,00 0 areas with si gns of def ore sta tion to sup po r t supp ly chain transpar ency and r isk mitigation. Soci al in nov ati on Thr ough our S ocial Inn ovati on pro gramm e, weare de velopin g an agr icultur e inde x to supp or t cli ent s in oer ing a ordab le finance and insur anc e to smallho lder f arm er s in As ia, which c an hel p bo os t their p rod uct ivi t y and prote ct t hem fr om climate r isk s. T his is exp ec ted to l aunch n ex t year . A winning i dea fr om our Gl obal Hack atho n thisyear aim s to create a n ew net ze ro mo dule in our As cend Int elligence Ser vices platfor m that us es dat a insight s to emp ower e ec ti ve decisio ns on th e roll- ou t of low- ca rb on infr astr uc tur e. For e xample, t his could h elp local authorities identif y optimal locations forele ct ric v ehicle chargin g st ations . UK and Ireland Our UK and Ir elan d Data Lab te am is building atool to su ppo r t clie nts in d evelop ing the ir climate chang e risk dis closure s to me et guidance f rom th e TCFD an d the UK F inancial Con duc t Aut hor it y (FC A ). We are al so tr iallin g a new s et of mo delle d attr ibutes that help commercial lenders better under st and th e ES G profil e of their small an d medium e nterp ris e (SME) cu stom ers , and more accurately target emerging ESG -focuse d products . Spain Enviro nmental f ac tors , includin g climate, ar e include d in the s ust ainabilit y in dex we ar e piloting in Sp ain. T he ind ex ass es se s small , medium an d lar ge busin es se s base d on all thre e pillar s of ES G and summar ise s this infor matio n in a single indi cato r to supp or t riskas se ssm ent in financial de cisions . North America A s par t of a lea der ship deve lopme nt prog ramme , ou r Bu sine ss In form atio n Ser vice s team in Nor th Am eri ca is ex plor ing asolu tion to h elp cli ent s build info rma tion onenvir onme ntal impac t and s ust ainabilit y into their e valuatio n of suppl ier s or len ding applications. Experian plc Strategic r eport 70 Governance of ES G We beli eve that s tr ong E SG p er fo rman ce canb e a sour ce of co mpeti tiv e adv antag e. OurE SG s tra teg y help s us set t arge ts an d commit ment s, dr ive p rogr es s, and e nhance transp aren cy thr ough o ur ES G rep or tin g anddisclos ures . Th e Chief F inancial O c er ac t s as exec uti ve spon sor of our o ver all ES G pro gramm e, whi ch foc use s on ES G opp or t unitie s and r isks , and the C ompany S ecre tar y ov ers ee s the Gro up’ s Sust ainabili t y func tio n. T hey b oth sit o n the E xecut ive Risk Manag ement C ommit te e that over see s how we mana ge risk s glob ally, includin g ES G risk s, w ith ov ersight f rom t he Audit C ommit te e of the B oard . We have es tabl ished a d edic ate d ES G Steer ing Commit te e, compr ising execu tive spons ors and works tream leaders , that meets re gularly to dri ve our E SG a gen da. Chair ed by t he Chi ef Financial O c er , the s tee ring c ommit te e is resp onsib le for de velop ing our E SG s tra tegy, metr ic s and tar get s , as well a s over see ing and prioritising investment decis ions to support impleme ntatio n of our E SG pr ogr amme. O ur Chief Sus tainab ilit y O c er is re spon sible for ensur ing su cce ss ful de live r y of our E SG p lans acros s all our w ork st reams . A centr al team and a n et wor k of re gional cor por ate resp onsibil it y leads , spe cialist s and steering groups across the bus iness man age our So cial Innov ation , communi t y inves tment , health an d safet y , an d enviro nmental pro gramm es and impa ct . T he Bo ard ove rse es our E SG st rate gy an d per f or mance. E ach yea r they have in - dep th se ssi ons on our o ver all ES G str ateg y as wel l as det ailed annual up dates o n each of th e sep arate e lement s of E SG. In addi tion th ey re cei ve wr it ten up date s on key eleme nts of o ur ES G per formanc e ahea d of ever y Board me eting. Cer tain non- financial metr ics – in cluding employ ee en gagem ent , diver sit y an d inclusion , ES G consi der ation s and r isk – are fa cto red into the ho list ic as ses sment of t he Co mpany’s shor t- and lon ger-term p er for manc e. We are consi der ing how imp or tant aspe ct s of E SG could f eat ure in our r emune rati on arrangem ents (see page 1 28). Annu al R eport : This se cti on of our A nnual Repo r t se ts o ut our ap pro ach and per forman ce on our m ost ma terial E SG to pic s. CDP : We disclose det ailed inf orma tion on o ur climate app roach an d per forman ce via th e CDP and o ur CDP dis closur e can b e view ed onour we bsite . Dive rsi t y , Equit y an d Inclusio n Repo r t : Werep or t in m ore de tail on o ur dive rsi t y , equit y an d inclusio n goal s and pr ogr es s. ESG Per formance Data : We repor t detail ed year - on-year per for mance data on material ESG topics. Gen der P ay Gap Re por t : We disclose our gend er pay gap in t he UK . Improv ing F inancial Healt h Repo r t : We highlight h ow we are cre ating p ositi ve so cial impac t by impro ving finan cial health . We publish ke y ES G pol icie s on our website . These include ou r: a Globa l Code of Condu ct a A nti- Corr uption Framework a Global Data Principles a Environmental Policy a H ealth and S afet y Po lic y a Supplier Code of Conduct a Mo dern Slaver y Statement a Statement on Salient Human Right s a Ta x P o l i c y Principal risk Related ESG topic/sustainable business priority Loss or inappropriate use of data and systems Treating data with respect (data security) New legislation or changes in regulatory enforcement Potential to impact all – this year particularly treating data with respect (data privacy) Failure to comply with laws and regulations Potential to impact all Business conduct risk Working with integrity Dependence on highly skilled personnel Inspiring and supporting our people Embedding E SG in innovation Our inno vatio n culture p ut s cons umer and client n eed s firs t, and w e have str ic t pro ces se s to ensure we build critical ESG considerations, such as dat a se cur it y, priva cy an d acc ura cy, into our pr oduc t s and s er v ice s. We ex ten d our high st andard s to suppl iers t hrou gh our third-par ty r isk management framewor k. Thr ough our S ocial Inn ovati on pro gramm e (se e page 49), we inve st in de velop ing new pro duc ts t hat are sp ecifi call y design ed to o er additional s ocietal b enefi t s a s well as cr eatin g reve nue for o ur busin es s. T he f unding m od el for s ocial innov ation p ro duc ts is al igne d with our global in novation framewor k. Th e Social Inn ovati on pro gra mme is gove rne d by a global s teer ing co mmit tee tha t is facil itate d by the G lobal H ead of S ocial Innovat ion and w as chaire d by the Mana ging Dire ctor of G lobal D ecisio n Analy ti cs this y ear . Th e ste erin g commit te e al so inclu des our C hief Sust ainabili t y O cer , C hief Inve stm ent O ce r , and Co mpany Se cret ar y, as well as senior represen tatives from eac h regi on. A sub - commit te e gover ns lowe r-level fun ding ofearly -s tag e idea s to expl ore th eir fea sibilit y . Mana gin g ES G r isk s Th e Boar d and our E xe cuti ve Risk Manag ement Commi t tee re view o ur prin cipal r isks o n an ongo ing ba sis. Fi ve of our nin e prin cipal busine ss r isk s are rel evant to E SG (s ee tab le below). In ad dition , we cont inue to ide ntif y an d analyse em ergin g risk s inclu ding tho se rel ate d to ES G, such as cl imate risk s (s ee pa ge 64). Se e pag e 86 for m ore o n our pr incip al risk s and ri sk managem ent pro ce ss es , including ourT hree L ine s of Def ence ap proa ch. ES G- related business r isks Key ESG p olicies ES G repor ting and disclosures Modern Slaver y Statement : We set out t he steps we have taken to ensure that slaver y , human track ing and child l abour ar e not ta king p lac e in our supp ly chains or in any par t of o ur busine ss . Non -financial infor mation and s 1 72( 1 ) statement: We re por t in line w ith S ec tio n 1 72 of the UK C ompanie s Ac t 200 6 (seep age 72). Sust ainabilit y Account ing Stan dards B oard (SA SB) : We repor t agains t the SA SB fr amewor k on mater ial iss ues (s ee pa ge 73). T askf orc e for Cl imate -re late d Financial Disclosures (TCFD) : We are a p ubli c supp or ter of the TC FD and r epo r t agains t it s recommendations (see page 64). Ta x R e p o r t : We expl ain on ta x mat ter s and how we deal w ith ta x a airs . 71 Experian plc Annual Report 2022 Strategic repor t Secti on 1 72 Se cti on 1 72 legisl ation , which b ec ame ee ct ive in th e UK durin g F Y20, aims to helpshar ehol der s bet ter un der st and how direc tor s have dischar ged t heir dut y to prom ote the s ucce ss of c ompanie s, w hile having r egar d to the mat te rs s et out in Se cti on 1 72(1 )(a) to(f) of t he UK C ompanie s Ac t 2006 (s1 72 mat ters). In ad dition , the 201 8UK Co rp ora te Gov ernan ce Co de recommends that boards des cribe how themat ter s se t out in S ec tio n 1 72 have be enconsi dere d in Bo ard dis cussi ons anddeci sion-making. Se ctio n 1 72 define s the duti es of comp any direc tor s and co ncer ns th e dut y to pr omote the su cce ss of comp anies . T hrou ghout F Y22, the dire c tors of t he Co mpany cont inued to exercis e thes e duti es while hav ing re gard to the s 1 72 mat ters , and al so to o ther r elevant fac tor s as the y rev iewe d and co nside red prop osal s f rom s enior manag ement , and asthe y gover ne d the C ompany on b ehalf ofit s shareho lder s throu gh the B oard an d it scommit te es . E xpe rian pl c is a Jer sey -inc orp or ated company . Nevertheles s the Board em braces Se cti on 1 72 and f ully supp or ts it s aims , andwe ar e rep or tin g in line w ith th e UK requi rement. We outlin e below, thro ugh use of cr oss refe ren ce, wh ere w e have con sider ed th e s 1 72 mat te rs thr ough out t his Annual Rep or t. Non-financi al informa tion and s 1 72 ( 1 ) statemen t We re por t in line with the Non- Fina nci al Re por ting require ment asdetai led in Sections 4 1 4 CA and 4 1 4CB of the UK Compan ies Act2006. Our ai ms Our bu sines s mo del is s et ou t on pa ges 3 0 to33. We use t he po wer of dat a to create opp or tuni tie s, impr ove li ves an d make a meaning ful di er ence in s ocie t y , hel ping indiv idual s and busin es se s of all sizes , toachieve their financial goal s . Non-financial risk s Th e Risk managem ent and pr incipa l risk s se cti on of the St rate gic re por t, s tar tin g on pag e 85, set s ou t the Gr oup’s approa ch to identi f yin g and managin g our pr incipal r isk s and unc er taint ies . Our T hre e Lin es of D efen ce mod el pr ovid es a r igor ous go ver nance fr amewor k , and the l ist ofp rincip al risk s st ar ting o n pag e 88 gi ves d etail s of th e pol icie s, outco mes an d due dilig ence p roc es se s that contr ol and mit igate tho se r isks . Th e key area s wher e non -finan cial adve rs e impac ts c ould ar ise ar e: 1 . Resp ec t fo r huma n ri ght s A s data cus todian s, we hav e a resp onsib ilit y to safe guard c onsum er pr iva cy, and our new fi ve Global D ata Pr incip les guid e how we manag e and us e data , build pr odu ct s and c ondu ct o ur busine ss ar ound th e wor ld (se e pag e 50). Our Glo bal Co de of C ondu ct¹ align s with t he United Nations Univer sal D eclar ation of Human Right s, and o ur commit ment to ens urin g an ethic al supply chain¹ is born e out b y our memb ership of th e Slave - Free All iance. 2. Empl oyees Emplo yee e ngag ement is a ke y per forman ce indic ator (se e pa ge 29), and we talk o n page s 56 and 57 abo ut our many pr ogr ammes an d initiat ive s that insp ire our p eo ple to b e their be st , to br ing th eir who le se lves to wo rk , our commit ment to div ersi t y , equi t y and inclusio n, and our r ecr uitme nt, rete ntion an d succe ssi on pra ct ice s that he lp to miti gate the r isk of our dep enden ce on highly sk ille d per son nel . 3. Environmental matters ¹ We take our env ironm ental r esp onsibili tie s ser iously, and the re duc tion of gr eenh ouse ga s emissi ons is a key p er fo rman ce indic ator fo r us (se e pag e 29). See al so p age 6 4 for f ur th er ac tions an d initiat ive s E xp erian is t aking to help p rote ct th e envir onment ². 4. A nti - cor r upti on an d ant i- br ib er y Our A nti- C or rup tion Fram ewor k¹ sets o ut ourzero - toler ance p oli cy o n brib er y and cor rup tion in any fo rm , and this m es sag e is reinfo rce d throu gh mandator y annual training for employees. 5. Social matters E xp erian has many ini tiati ves in p la ce to deli ver ou r purp os e of creat ing a be t ter tomor row f or con sumer s, b usine ss es , our pe ople and o ur communi ties . Th e role w e play ben efit s ev er yo ne: bu sines se s grow, pe ople prosp er and c ommuniti es thr ive . This hap pens in many ways , includin g thro ugh our c ore business, the development of social innovation pro duc ts , emp loyee v olunteer ing an d supp or t for comm unit y group s and chari ties . 1 M or e de tai l is a vai la bl e at w w w.e xp e ria np lc .c om /re sp ons ib ili t y/our-p o li cie s . 2 Fu r th er d et ail i s al s o ava il ab le at w w w.exp e ri anp lc .c om /re sp ons ib ili t y/data -a nd -a s sur an ce . Section 172 matters Specific examples Page (a) The likely consequences of any decision in the long term a O ur div id end p oli cy, taken to geth er wi th s ec tio ns of our F inanc ial rev iew, exp lain s how w e bal ance r et urn s to share hol der s wi th ca pit al inve ste d organically and on acquisitions a 25, 74, 1 75 a O ur go ver nanc e fr am ewor k sh ows h ow th e Bo ard d ele gate s it s aut hor it y a 10 5 (b) The interests of the company’s employees a O ur pur p ose in a c tion a E mplo ye e enga gem ent an d Futu re of Wo rk a 20 , 21 , 24 a 29 , 59 (c) The need to foster the company’s business relationships with suppliers, customers andothers a Par tner ing with suppliers a We c omp ly wit h the r equ irem ent s of ‘ T he Rep or t ing on P aym ent P ra ct ice s andPe r fo rma nce Re gul ati ons (201 7)’ f or al l of our in -s cop e UK c omp anie s a 24, 4 6, 6 3 (d) The impact of the company’s operations onthe community and the environment a F inancia l inclus ion fo r all an d Our c ommuni tie s a Protec ting the environment a 18 , 2 3 a 64 (e) The desirability of the company maintaining areputation for high standards of business a T reating data with res pect a Par tner ing with suppliers a 50 a 63 (f) The need to act fairly between members ofthecompany a Stakeholder engagement a Inves tment proposition a 22 a 10 7 , 10 8 Experian plc Strategic r eport 72 Sustainabilit y Accounting Standards B oard Index We re por t against the Su staina bility Accounting S tandards Board ( SASB) standa rds. The Index below sho ws ourresponse t o each of the SASB met ric s for the Profession al and Commerci al Ser vices sector . Sustainabilit y disclosure top ics an d accounting metr ics Activ it y metric s Topic Accounting metric Code Our response Data security Description of approach to identifying and addressing data security risks SV-PS-230a.1 See the Data security section of our Annual Report (pages 50-52). Description of policies and practices relating to collection, usage, and retention of customer information SV-PS-230a.2 See the Treating data with respect section of our Annual Report (pages 50-54), which includes our Global Data Principles. This section details the processes we follow to ensure accuracy of data (page 52), the regulations we comply with (page 53) and the consumer websites where we detail our approach to data privacy. Number of data breaches, percentage involving customers’ confidential business information or personally identifiable information, and number ofcustomers aected SV-PS-230a.3 In the event of a serious breach, we would disclose information about the incident and commit to contact any aected data subjects in a timely way. We do not publicly disclose vulnerabilities or lapses due to client sensitivities. To the extent that any relevant regulator should find fault with our data breach management and/or data security practices, they will publish their findings/sanctions. There were no such findings or sanctions in FY22. Workforce diversity and engagement % of gender and racial/ethnic group representation for executive management and all other employees SV-PS-330a.1 We report gender and racial/ethnic diversity in the data tables available on our website, with our US racial/ethnic diversity shown inaccordance with the EEO-1 categories. More information on ourdiversity, equity and inclusion (DEI) principles, approach and programmes to foster workplace diversity and engagement can befound in the Inspiring and supporting our people section of our Annual Report (pages 56-61) and in our DEI Report . Voluntary and involuntary turnover ratefor employees SV-PS-330a.2 We report both voluntary and involuntary turnover rates in the data tables available on our website. Employee engagement (%) SV-PS-330a.3 We report employee engagement as one of our key performance indicators for the business. See the Inspiring and supporting our people section of our Annual Report (pages 56-61) and the data tables available on our website . Our global employee engagement score in the FY22 survey was 78%. From 2021 we switched our engagement survey from Korn Ferry to Great Place To Work; the questions are very similar in sentiment but not like-for-like. Professional integrity Description of approach to ensuring professional integrity SV-PS-510a.1 See our Data Principles (page 50) and the Working with integrity section of our Annual Report on (pages 62-63). This latter section outlines the importance of our Global Code of Conduct , designed to give everyone a clear understanding of our approach to professional and ethical standards and ensure employees all know exactly what’s expected of them individually and the role they play in helping Experian live up to those standards. This Code has been approved bythe Experian plc Board and we’re fully committed to implementing it across our business. Total amount of monetary losses as a result of legal proceedings associated with professional integrity SV-PS-510a.2 Material monetary losses associated with legal proceedings, sanctions or fines that are a matter of public record are disclosed inour Annual Report (see page 185). In the case of pending and threatened litigation claims, management applies judgment as to the likelihood of ultimate liability and recognises the liability where the likelihood of potential loss arising is possible rather than probable and having a potentially material impact. Activity metric Code Our response Number of employees: full-time and part-time, temporary and contract SV-PS-000.A We report this data in the ESG performance data tables available on our website . Employee hours worked and % billable SV-PS-000.B Not applicable to our business. Scan me to rea d mor e ab out o ur SA SB responses on our websit e 73 Experian plc Annual Report 2022 Strategic repor t Summar y We have deli vere d a st rong p er f or mance inF Y22, wi th total r evenue gr ow th³ of 1 7%, organic r evenu e grow th of 1 2% , and a 1 9% increa se in B enchmar k EBI T , a t cons tant exchange r ates . Our s tron g ope ratin g per for mance translated to ver y strong financial pe r for manc e, wit h 23% grow th in Ben chmark op er ating c ash flow an d 21 % grow th in B enchmar k EP S, bo th at con stant exchange r ates . Our fo cus on s tr ategic innovat ion and inv es tment co ntinue s to under pin o ur per forman ce as we d eli ver ne w and innov ativ e pro duc ts f or our cu stom ers . Weinves ted US$50 8m in or ganic cap ital inves tment an d US$78 1 m in a cquisiti ons, tofue l the f utur e grow t h of the bu sines s. Weende d the ye ar in a str ong financial posi tion , with o ur Net de bt to Be nchmar k EBI TD A rati o of 1 .9x, US$2.6bn of un drawn commit te d bank fa cilitie s and mor e than half ofour bo nds f allin g due in over fi ve ye ars . Financi al review W e ach ieved a str ong performa nce aga instthe bac kd rop of t he con tin ui ng gl oba lCOVID- 1 9 pan demi c, witht ota l reve nue g row th of 1 7%a ndorg anic reve nue g rowth of1 2%. W e remai n focu sedon ou rstrategy t o bri ng the lat esttec hno log ies an d tools t o our cli entsand e mpo wer c ons ume r s toi mprov e the ir fi na nci allives. Lloy d Pit chford Chief F inancial O ce r Highlights 202 2 * Alternative Per forman ce Measures We have identi fie d and defin ed ce r tain n on- G A A P meas ures . T hes e are th e key mea sure s managem ent us es to as se ss th e under lyin g per for mance ofour o ngo ing busin es se s. Th ereisa summar y of thes e mea sure s on pag e 84 an d a full er exp lanati on innote 6 totheGr oup financial s tate ment s onpa ge s 1 72 to 1 73. 2022 US$m 2021 US$m Growth % Revenue 6,288 5,372 17 Operating profit 1,416 1,183 20 Profit before tax 1,447 1,077 34 Profit after tax from continuing operations 1,151 802 44 Net cash inflow from operating activities – continuing operations 1,796 1,488 21 Full-year dividend pershare USc51.75 USc47.00 10 Basic EPS USc127.5 USc88.2 45 Revenue US$ 6.3 bn T o tal r even ue gr ow th – ongoing activities 17 % (at con st ant F X ) Organic revenue grow th 12 % (at con st ant F X ) Benc hm ark E BIT US$ 1. 6 bn Profit before tax US$ 1. 4 bn Ca sh flow c onver sio n 10 9 % Basic EPS US c 12 7. 5 45% g row th Benc hma rk EPS * US c 12 4 . 5 21 % gr o w t h Ordinar y di viden ds US$ 444 m Continued gr owth and a str ong financial position 2022 US$m 2021² US$m Constant rates growth % Revenue³ 6,267 5,342 17 Benchmark EBIT 1,645 1,386 19 Benchmark PBT 1,535 1,265 22 Benchmark operating cashflow 1,800 1,476 23 Undrawn committed bank facilities 2,600 2,650 n/a Benchmark EPS USc124.5 USc103.1 21 1 Se e no te 6 to t he G ro up fi nan cia l st at em en ts f or d efi ni tio ns ofno n - GA A P m ea sur e s. 2 Res ul ts f or F Y21 ar e re - pr es en te d fo r th e re cl as si fi ca tio n toex it ed b us in es s ac t iv it ie s of c er t ain B 2B b usi ne ss e s. 3 From ongoing activities. Statutory financial highlights Benchmark financial highlights 1 Experian plc Strategic r eport 74 Repor ting cur renc y We repo r t our finan cial res ults in US d oll ars . Th estr eng thenin g of our ot her tr adin g curr encie s durin g the year , primar ily th e Braz ilian real a gainst t he US dol lar , in creas ed total r evenue b y US$52m, but did n ot impac t Ben chmark EB IT. A± 1 % change in t he Braz ilian real o r poun d ster lin g exchange r ate would b oth impa ct r evenu e by ± US$7 m. Det ails of t he pr incipa l exchange r ates us ed and cur renc y ex pos ures ar e prov ide d in note 1 0 to th e Group finan cial st ateme nts o n pag e1 82. 1 At c on s tan t exc ha ng e ra te s. 2 Re ve nu e, B en chm ar k EB I T an d Be nc hma rk E BI T m ar gin f or F Y 21 ar e re - pr es e nte d fo r th e re cl as si fi ca tio n to e xi te d bu sin e ss a c ti vi t ie s of c er t ai n B2B b usi ne s se s . 3 B en chm ar k EB I T mar gi n fo r on go ing a c ti vi ti es i s ca lc ula te d by d iv id ing B e nch ma rk E BI T f or on go in g ac t iv it ie s by r ev enu e f ro m ongoing activities. 2022 2021 2020 20 19 201 8 2 Revenue 6, 288 5, 372 5, 179 4, 861 4, 584 US$m 2022 2021 2020 20 19 201 8 2 Benchmark EPS 124. 5 103. 1 103. 0 98. 0 94. 4 USc 2022 2021 1 2020 20 19 201 8 2 Total Benchmark EBIT and Benchmark EBIT margin 26. 2 25. 8 26. 9 26. 9 27. 1 Margin % 1, 645 1, 386 1, 387 1, 311 1, 247 US$m 2022 2021 2020 20 19 201 8 Dividend per share 51. 75 47. 00 47. 00 46. 50 44. 75 USc 1 Re su lt s fo r F Y21 a re r e -p r es en te d for t he r e cl as si fic at io n to ex it ed b us in es s ac t iv it ie s of c er t ai n B2B b usi ne s se s . 2 Re su lt s fo r 2018 are r es t ate d fo r IF RS 15. Year ended 31 March 2022 US$m 2021² US$m Total growth¹ % Organic growth¹ % Revenue Data 3,313 2,863 15 9 Decisioning 1,341 1,172 14 11 Business-to-Business 4,654 4,035 15 9 Consumer Services 1,613 1,307 23 22 Ongoing activities 6,267 5,342 17 12 Exited business activities 21 30 n/a Total 6,288 5,372 16 Benchmark EBIT Business-to-Business 1,418 1,184 20 Consumer Services 374 285 31 Business segments 1,792 1,469 22 Central Activities – central corporate costs (152) (90) n/a Ongoing activities 1,640 1,379 19 Exited business activities 5 7 n/a Total Benchmark EBIT 1,645 1,386 19 Net interest expense (110) (121) n/a Benchmark PBT 1,535 1,265 22 Exceptional items 21 35 n/a Other adjustments made to derive Benchmark PBT (note 14(a)) (109) (223) n/a Profit before tax 1,447 1,077 19 Benchmark EBIT margin – ongoing activities Business-to-Business 30.5% 29.3% Consumer Services 23.2% 21.8% Benchmark EBIT margin³ 26.2% 25.8% Rev enue, Pr ofit before tax and Benchmark EBIT margin by business segment 75 Experian plc Annual Report 2022 Strategic repor t Financi al review contin ued Continued growth We have grown r evenue o ver ea ch of the pa st 1 6 year s , not wi thst andin g the challe nge s fac ed during t he global finan cial crash of 20 08 and, mor e rec ently, the COV ID - 1 9 pan demic . We anticipate an othe r year of pr ogre ss in F Y23, and pro jec t or ganic rev enue grow th in the ran ge of 7% to 9% for t he yea r as a wh ole. In F Y22 tot al reve nue grow th was 1 7% at bo th const ant and ac tual exchange r ates , and organic r evenu e grew 1 2%. We have co ntinue d to exp and into new v er ti cal s, s uch as inc ome verification and our i nsurance marketplace, dri ving gr ow th thr ough inve st ment an d innovat ion . We launche d 1 04 new p ro duc ts inthe ye ar , wi th anoth er 1 51 in the pipe line . Business-to-Business g row th has been ga lvan ised by pr ogress i n ou r stra tegi c initiatives, strength in data volu mes, ex tension of ver ti cal mar kets an d increa se d demand forour inn ovat ive p lat fo rms . Reve nue gre w bydoub le digit s acr oss al l regi ons , with an out s tandin g per for mance in L atin A mer ic a, wher e grow t h was 23% at a ctual e xchange rate s. 8% 4% 3% 2% 8% 10% 8% 5% 1% 5% 5% 5% 9% 8% 12% 4% 15% 10% 5% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY22 FY21 Global Financial Crisis COVID-19 pandemic Historic organic revenue growth performance 1 (at constant FX) 1 Ongoing activities. Both digital transformation and the expec tations of custo mer s have be en ac celer ate d by the global pa ndemic . We have se en incr easing demand f rom financial s er vices cl ient s for dat a, with o ngo ing inve stm ent to dri ve th eir digit al transfor mations. We position ou rselves to capi tal ise on t hes e eme rging t ren ds by embracing a n agile mindset, devel oping pro duc t s at pac e and pu t ting cu stom ers a t the hear t of e ver y thing we do. T hro ugh co ntinuous innovat ion, w e are able to l aunch up gra des in smaller incr ement s , brin ging quali t y pro duc ts and so lutio ns to market m ore quickly to m eet emerging needs. Grow t h of Ex pe rian A sc end co ntinue d as we deli vere d fur ther ins tall ation s of our global plat f or m. In De cisionin g, we s ecur ed n ew wins for our c loud- enabled deci sioning platforms, and pe r for mance in h ealth and f rau d and identity management were strong. FY 1 9 57 FY 2 0 82 FY 2 1 FY 2 2 110 134 FY 1 8 40 UK Brazil USA Free member base million FY 2 0 FY 1 9 FY 2 1 FY 2 2 FY 1 8 537 359 67 8 909 21 3 Consumer products – Ma rketplace – Auto insurance – Brazil consumer B2B products – PowerCur ve suite – Ascend – Health new products – Auto ne w products – CrossCore New and scaling products revenue US$m Stren gth in C on sumer S er vice s was b uoy ed by the on going e xpan sion of ou r fre e memb ership bas e, now 1 34 mill ion glob ally. Revenue increa se d by 23%, wi th all re gion s in this busine ss s egm ent grow ing rev enue by m ore than 20% at act ual exchange rate s. T rans ac tion volume s acros s our cre dit comp aris on marketplace improved, as consumers search for cre dit en cour age d by market c ondi tions . We are pro gre ssing t he dev elopm ent of our insur ance mar ketpl ace a s we integr ate the Gabi ac quisitio n. Limp a Nom e, our de bt res olu tion s er v ice in L at in Ame ric a, w hich help s consum ers r es olve and s et tle b ill s, al so continu es to p er fo rm s tron gly. Experian plc Strategic r eport 76 Cost bas e A s the e cono my emer ges f rom t he impa ct s of COV ID - 1 9 ther e may be incr eas ed p res sure o n cos ts an d margins . Glob al employ ee at tr iti on rate s are incr easin g, pro mpted b y the r adic al life st y le chang es of the p ande mic and th e high number s of job va can cies . A 1 % r ise in our bas e payr oll co st wo uld lea d to an addi tional exp ens e of US$22m. Inflatio nar y bur den s on other c ost s are in crea sing, an d fac tor s such as rec ord en erg y and f uel pr ice s as well as glo bal supply chain is sue s could al s o lead to high er ope ratin g cos t s. We cont inue to moni tor cos t pressure po ints to mitigate inflation where possi ble. We maintain a foc us on cos t manag ement an d ecie ncy, invest ing in glob al deli ver y an d shared s er v ice c entre s, a s well as r obot ic s, todeli ver pr oc es se s in a more r ig orou s and judicious manner . Global enablement continues to improve p er f orman ce, and w e are re ducing the co st of op era tions t hrou gh commo n archite ctur es, c ode and te chnolo gy exp er tis e. We now have fiv e global de live r y cent res , loc ated in Bu lgaria , Chile, C os ta Ric a, India andMalay sia, emp loyin g 3,750 sta, whe re end-to- end operations are per forme d from data an alysis, throug h product development, toimplementation. We have a well- es tabl ishe d culture of continuous i mprovement and m anage key business project s through co-op eration andcol lab ora tion to enhan ce pr odu cti vit y andee c tiven es s. O ur global financ e trans for matio n pro gramme is b rin ging operational eciency through intelligent automat ion, d ynamic b usines s intell igenc e, and st andardis ation an d globalis ation of o ur finance s ys tems , prop elle d by inve stm ent in our people. In our cor e finance f unc tion s we now have 4 10 Lean Si x Sigma pr ac titi oner s cer tifie d thro ugh our EmPower cont inuous improvement programme. We have reduc ed dis creti onar y sp end to combat rising depreciation and amortisation charge s re sulting f rom o ur inves tme nt in techno logy. T ravel c ost s remain si gnific antly down o n pre - C OV ID - 1 9 pand emic le vel s as w e adjus t to hybr id wor kin g and co llab ora tion through te chnolo gy. We continue to r ational ise our w ork pla ce foot print , giv ing gre ater choi ce to emplo yee s on how an d wher e the y wor k. We are inv es ting in our remainin g oc e es tate to make it m ore invitin g and sus tainable . A. Labour 51 B. Data 16 C. Marketing 11 D. IT 7 E. Central Activities 3 F. Other 12 FY22 Global cost profile % A B C D E F 1 Revenue from ongoing activities. A. Financial services 39 B. Direct-to-consumer 18 C. Health 7 D. Software and Professional services 6 E. Retail 5 F. Automotive 4 G. Insurance 4 H. Government and Public Sector 3 I. Media and Technology 3 J. Telecoms and Utilities 3 K. Other 8 FY22 Revenue by customer % 1 A B C D E F G H I J K 77 Experian plc Annual Report 2022 Strategic repor t Financi al review contin ued Interest Benchmar k net finan ce cost s de crease d by US$ 1 1 m. D ebt re financing in th e year enab led ared uc tion in o ur avera ge f unding c os t. Forei gn exchange gains o n Braz ilian real intra - Gro up fun ding of US$ 43m , and oth er fairvalu e reme asure ment s, c ontr ibute d to thede cre ase in s tat utor y net finance c ost s ofUS$ 1 8 6m. At 31 March 2022, intere st o n 98% of our ne t fun ding was a t fixed r ate s (2021 : 91 %). A fundam ental r efor m of major inter es t rate ben chmark s is takin g pla ce global ly , involv ing the replacement of some interbank oered rate s. His tor ically o ur main exp osure s wer e indexe d to p ound s ter ling an d US doll ar L IBO R. Dur ing F Y22, w e have amend ed o ur revo lving credi t facili ties and oth er financial instr ument s , so that on ce the se r efor ms are c omplete d, ster lin g po und ex pos ure s will b e inde xed to Sterl ing O ver night Ind ex Avera ge (SO NIA ) r ate, and US dol lar ex po sure s to the S ecur ed Ov erni ght Financin g Rate (SO FR). T axation Our tot al tax char ge wa s US$296m (202 1 : US$275m), 20.5 % (2021 : 25.5%) of profit b efor e tax . Our e e cti ve ta x rate o n Ben chmark P BT was 25.7% (202 1 : 25. 9 %), reflec ting th e mix of profi ts an d pre vailing t ax r ates by te rr itor y . Weexpe c t our e ec tiv e tax r ate on B enchmar k PB T in F Y23 wil l be ap prox imately 26 %. Th e equi valent c ash ta x rate of 23 .8% remain s below o ur Ben chmark t ax r ate and we pr ovi de a rec oncil iatio n in the ab ove t able. ' Ot her ' include s the p hasing of t ax p ayme nts in F Y22, and an acc eler ation of t ax de duc tion s as a res ult of US legisl ativ e change s in F Y21 . We anticipate t hat our c ash ta x rate w ill incre ase and mov e closer to our B enc hmark ta x rate over th e cour se of t he ne xt t w o year s, as t ax amor tisation of goodwill on earlier acquisitions and pr ior ta x loss es ar e utilis ed . Th e profi t for th e year f rom dis continu ed ope rati ons of US$1 6m c ompr ise d the r eleas e of tax p rovisi ons rel ating to his tor ical dispos al s. Se e note 1 7 to th e Gro up financial statement s. Earnings per share Basi c EPS w as 1 27 .5 US cent s (2021 : 88. 2 UScent s). Basic E PS wa s increa se d by 3.0 (2021 : r edu ced b y 1 4.9 ) US cent s in re spe c t ofdisco ntinued o per atio ns, E xcep tional i tems and oth er adjus tment s ma de to der ive Benchmar k PB T . Ben chmark E PS wa s 1 24.5 US cent s (2021 : 1 03. 1 US cent s), an increas e of 21 % a t ac tual and at co nst ant exchange r ates . A ± 1 0% change in th e Braz ilian real e xchange ra te would imp ac t Ben chmark E PS by ± 2 US c ents . Th ere wo uld be n o impac t on Be nchmark E PS fro m a similar chang e in the p ound s ter ling exchange rate. W e provide fur ther information in note 1 8 to the Gr oup financial s tatem ent s onpa ges 188 to1 89 . Cash and liqui dity managem ent Cash g ener atio n was s tron g, wi th a 1 09% (2021 : 106 %) conver sion of B enchmar k EB IT toBen chmark op er ating c ash flow, lif te d 5% bya re ceipt of US$ 89m f rom a o ne - o contr ac t. B enchmar k fr ee c ash flow wa s US$ 1 , 31 1 m (2021 : US$1 , 1 24m). The co ntinue d str engt h ofour Be nchmark o per atin g cash flow pe r for manc e refle c ts th e natur e of ourbusin es s and financial m odel , and o ur foc usonwor kin g capi tal manag ement . Year ended 31 March 2022 % 2021 % Tax charge on Benchmark PBT 25.7 25.9 Tax relief on goodwill amortisation (2.4) (2.6) Benefit of brought forward tax losses (1.7) (2.0) Other 2.2 (2.6) Tax paid as a percentage of Benchmark PBT 23.8 18.7 FY21 1,476 106% FY20 1,214 88% FY19 1,270 97% FY18 1 1,196 96% FY22 1,800 109% Benchmark operating cash flow US$m and cash flow conversion % 1 Res t ate d f or IF RS 15. A. One to five years 1. 6 B. Over five years 2. 3 Bond maturity at 31 March 2022 US$bn A B A. USD 2. 7 B. EUR 0. 6 C. GBP 0.6 Bond currency at 31 March 2022 US$bn A B C Cash tax rec onciliation Experian plc Strategic r eport 78 Year ended 31 March 2022 US$m 2021 US$m Capital expenditure as reported in the Group cash flow statement 508 422 Disposal of property, plant and equipment (23) (1) Profit/(loss) on disposals of fixed assets 4 (3) Net capital expenditure 489 418 Acquisitions³ 781 583 Purchase of investments 32 31 Disposal of business and investments (23) (151) Distributions from investments (2) – Repayment of promissory note and interest (110) – Net investment 1,167 881 Fun d i n g Dur ing the y ear , we ma de on e bon d issu e of€500 m, mat urin g in 2031 , incre asing theaver ag e durati on of our b ond d ebt anddive rsif ying th e mix of our cur re ncy bor row ings . At 31 March 2022, 57% (2021 : 56% ) of our total b or row ings fe ll due in ove r five ye ars , and our undr awn co mmit ted b ank bor row ing fa ciliti es wer e US$2.6bn (2021 : US$2.7bn). Th e char t opp osite sh ows the ma turi t y profi le for our te rm de bt. We aim to minimise refinancin g risk in any gi ven ye ar . Cur ren cy - deno minated ba lanc es are t ransl ated to US doll ars at s wapp ed r ates w her e hed ged . We keep our d ebt lev el s st able at a low multiple of o ur pro fit s. We have r evie wed emerging practice following the impleme ntatio n of IFRS 1 6 , and have up dated our defini tion of N et deb t to include l eas e obli gatio ns. N et de bt at 31 March 2022 was US$3, 950m (2021 re sta ted: US$ 4,026m), 1 .9 time s Ben chmark EB IT DA (2021 : 2.2 time s), compar ed to our t arg et ran ge of 2.0 to 2.5 time s. T he re duc tion b elow o ur targ et ran ge was due to t he ver y stro ng ca sh flow in theye ar . Th e covenant o n our bank ing fa ciliti es re quire s that Be nchmar k EBI T should c over n et intere st exp ens e, excludin g the e ec t s of IFRS 1 6 , before fina ncing fai r value remeasuremen ts , by thre e time s . At 31 March 2022, this rati o was 1 6 t imes (2021 : 1 2 t imes). We have no undue concentration of repayment oblig ations in resp ec t of b orr owin gs and did no t brea ch any covenant s gi ven on b orr owin gs durin g theye ar unde r rev iew or t he pr ior y ear . 1 Fo r Gr ou p ca sh fl ow s ta tem en t se e p ag e 1 63 . 2 We h ave u pd ate d o ur de fin it io n of Ne t de bt t o inc lu de l eas e o bl iga ti on s, a nd t he o pe nin g p osi ti on a t 1 Ap r il an d Ne t de bt m ov e ments inth e pr i or ye ar h ave b e en r ev is ed t o in clu de l ea se l iab il it ie s sh own n et o f ac cr u ed in te re st . 3 T he c on si de ra ti on f or o ur inv e st me nt in t he R isk M ana ge me nt di v isi on o f Ar vato F in an cial S o lut io ns ( A FS) i n the y ea r en de d 31 March 2021 w as s at is fie d by t he d el iv er y of 7 . 2m E x pe r ian p lc t re asu r y sh ar es a t mar ke t va lu e. Year ended 31 March 2022 US$m 2021 US$m Benchmark EBIT 1,645 1,386 Amortisation and depreciation charged to Benchmark EBIT 484 453 Benchmark EBITDA 2,129 1,839 Impairment of non-current assets charged to Benchmark EBIT – 6 Net capital expenditure (489) (418) Decrease/(increase) in working capital 58 (13) Principal lease payments (57) (56) Benchmark loss retained in associates 10 12 Charge for share incentive plans 149 106 Benchmark operating cash flow 1,800 1,476 Net interest paid (121) (115) Tax paid – continuing operations (366) (236) Dividends paid to non-controlling interests (2) (1) Benchmark free cash flow 1,311 1,124 Acquisitions (781) (583) Purchase of investments (32) (31) Disposal of business and investments – ongoing activities 23 151 Distributions from investments 2 – Repayment of promissory note and interest 110 – Movement in Exceptional and other non-benchmark items (19) (67) Ordinary dividends paid (444) (427) Net cash inflow – continuing operations 170 167 Net debt previously reported at 31 March (3,826) (3,898) Lease obligations (200) (199) Net debt at 1 April² (4,026) (4,097) Net cash inflow – discontinued operations 1 – Net share purchases (149) 19 Non-cash lease obligation additions and disposals (35) (49) Principal lease payments 57 56 Foreign exchange and other movements 32 (122) Net debt at 31 March² (3,950) (4,026) Cash flow and Net debt summary 1 Rec onciliation of net investment 79 Experian plc Annual Report 2022 Strategic repor t Financi al review contin ued Capi ta l ex pend itur e Our c apit al exp endi ture of US$5 08m (2021 : US$422m) was 8% (2021 : 8%) of revenu e. Weanticipate t hat fu ture o rganic c apit al inves tme nt will co ntinue to b e in line w ith ou r long -ter m ran ge of 8% to 9% of tota l revenu e, as we ad vance o ur techn olog y es tate, cr eatin g competitive advantage through technology modernisation . Disciplined cap ital management Our ca pital al loca tion f rame wor k is base d on balan cing a numb er of comp eting p rio ri ties – notab ly op erat ing and c apit al inve stm ent, divi dends , acquisi tions an d share rep urchas es . Th e mix be t ween t hes e ca tego rie s will v ar y over tim e. Our f re e cash flo w has con sistently be en st rong an d a cor ner sto ne of our discipl ined c apit al alloc ation . We complete d our F Y 22 share rep urchas e pro gramm e for a ne t cash c onsid erat ion of US$1 49m. We asse ss a cquisiti on opp or t unitie s agains t arang e of metr ic s, in cluding e cono mic valuations and the earnings enhancement weexp ec t th em to br ing re lati ve to share repu rchas es . Net inve st ment of US$1 , 1 67 m (2021 : US$ 881 m) co mpr ise d cash fl ows for netcap ital ex pen diture , acquisi tions , dispos al pro cee ds and n et inve stm ent s. Th e char t opp osite sh ows our c apit al fr amewor k as exe cute d this year . As sociates an d venture investment s Our inve stm ent in smaller s tar t-ups and Fin T ech companies enh ances innovation and the de velopm ent of unique IP . Dur ing the y ear , we comp leted a f ur th er 1 6 inve st ment s, brin ging our tot al pro gramm e financing to US$335m in 3 4 ac tive v enture c ompanie s. Since pr ogr amme in cepti on a total of US$ 1 80 m has be en re alise d on ex it fro m ventur es , gene ratin g a gain on sa le of US$ 1 23m, an d a ret urn on o ur cash inv es tment of 3.2 tim es . Vector C M Holdin gs (Cay man) L. P . , an ass ociate under taking , comple ted the m erg er of it s Che etah D igit al busine ss w ith C M Group in Febr uar y 2022, tr ansit ioning to a t rad e inves tme nt fro m that date. T he p romis so r y note and a sso ciate d intere st of US$1 1 0m w ere repai d, and a gain of US$95m re cognis ed o n transition. We no longer hav e signific ant influen ce over our Rus sian ass ocia te Unite d Cre dit Bur eau, and have ac cordin gly re cognis ed a disp osal , wr iting o our inve stm ent, r ec ordin g a loss ofUS$ 1 7m. We have als o recl as sifie d a UK ass ociat e ashel d- for-sal e. Capital inves tment breakdown % FY 2 0 FY 2 1 FY 2 2 FY 1 8 34% 21% 45% FY 1 9 FY 2 0 FY 2 1 FY 2 2 FY 1 8 FY 1 9 Data Infrastructure Development Capex % 9998 Cap ex US$m 431 439 487 422 8 508 Capital expenditure ( capex) as % of total revenue 45% 31% 24% 38% 34% 28% 36% 31% 33% 35% 25% 40% 0 4 0 0 80 0 1, 20 0 1 , 60 0 2 ,00 0 Us es of ca sh Ca sh g enera te d Capital summary US$m Funds from Operations Organic capital investment Dividends Reduction in Net debt and other Share repurchase programme Acquisitions and minority investments * Fun ds f ro m Op er a tio ns i s de fin ed a s Be nc hma r k fr ee c as h flow p lu s or gan ic c ap it al in ve st me nt (c ap it al e xp en di tu re). A ssociate s and ventur e investments Associates Current invested capital Number of portfolio companies New deals closed this year US$4m 6 US$335m 34 16 – US$339m 40 16 V enture T otal Experian plc Strategic r eport 80 Our ac quisitio ns foc us on st rate gic grow t h areas , new mar ket s or sup pleme nt our exis ting bu sines s. O ur rel ated c ash ou t flow inF Y22 was US$781 m (2021 : US$583m). We complete d six ac quisitio ns in the ye ar , includin g that of Gabi P ers onal Insur anc e Agen cy, Inc. (Gabi) fo r US$326m. T his digit al insura nce ag enc y allows us to e xte nd our Nor t h Am eric a insur ance mar ketp lac e, and str eamline t he shop ping ex per ienc e for consumers. We als o acquir ed the t rad e and as set s ofT axCr edi t Co. , LL C ( TCC ) for US$27 4m , augme nting o ur exp ansion into t he inc ome ver ific atio n market in t he USA . T he acquisition of Pa gueV eloz in Brazil is building mom entum in C onsum er Ser vice s. In Apr il 2022 we co mplete d t wo fur ther acquisi tions in t he USA f or a total consideration of US$ 1 92m, bol ster ing Ex perian Verification and Employment Ser vices and the bill negotiation featu res ofour Co nsume r Ser vice s busine ss . In May 2022 we comp leted a UK a cquisiti on for US$ 29m with conti ngent consideration payab le of up to US$1 4 m, s tren gth ening o ur income and employment verification oering. Addi tionally, in May 2022 we agre ed to acquir e a major it y s take in a lea ding Br azilian Fin T ech , addin g to our B2B c apabil itie s and enhancin g our ac ces s to SME dat a, fo r circa US$8m, and conti ngent consideration, the fair valu e of which is y et to be d eter mine d. Comp letio n is exp ec ted in F Y23. Cessation of ac tivities We have ceas ed th e oper ati ons of a small UKsubsidiar y whos e pr incipal b usine ss ac tivi t y was th e prov ision an d suppo r t of sof t w are to co rp or ate clie nts in Ru ssia . A sares ult of rec ent ge opo lit ical ten sions we no long er cont inue to op erate in t he re gion , and con se quently th e rel ated b usines s and ass et s have be en wr it te n o, resultin g in aloss of US$ 43m . Acquisitions Gabi This digi tal ins uranc e agen cy allo ws us to exp and our p res enc e in the au to and ho me insur ance v er ti cal in th eUSA . Sinacofi We acquire d a major it y s take in this lea ding cre dit bur eau in Chil e. Emptech Supplemen ts our income verification busine ss in t he USA . T ax C re dit C o. A lead er in inco me ve ri fica tion intheUS A . Iona T rading This de velop er and pr ovid er of loss models supplements our insur ance o er ing in th e UK . PagueV eloz This digi tal pa yment s Fin T ec h inBra zil bol s ters o ur onlin e debtresolution proposition, LimpaN ome. Revenue Benchmark EBIT Data Decisioning B2B B2C Total North America 69 – 69 4 73 16 Latin America 10 2 12 7 19 3 UK and Ireland 1 – 1 – 11 Total 8 0 28 21 1 93 20 Acquisition r evenue and Benchmark EBIT by region (US$m) Acquisi tions w ere acr oss b oth b usines s se gment s and c ontr ibute d US$93m to revenu e and US$1 7m to profit b efor e tax in t he yea r , w ith annualised pro -f orma r evenu e of US$ 1 1 1 m . 81 Experian plc Annual Report 2022 Strategic repor t Financi al review contin ued Share capital Our sp end on n et share r epurcha se s, w hich os et del iver ie s under em ploye e share pl ans, was US$1 4 9m (at an aver age pr ice of 2, 824p) and the numb er of share s in circul ation increa se d by 0.4m (0.0 4 %). During th e year , theaver age numb er of share s in circul ation was 91 4m (2021 : 91 0m) an d the closin g number of shar es at 31 March 2022 was 91 4m (2021 : 91 4m). In the pa st fi ve year s, w e have comple ted ne t share pur chase s of over US$ 1 . 1 bn an d we exp ec t to exe cute p urchas es of up to US$ 1 75m in the c oming ye ar . Dividen ds and distr ibutable res er ves Our div ide nd po lic y aims to pa y divi dend s over time br oadly in l ine wi th the un der lyin g grow t h in Ben chmark EP S. T his aligns shar ehold er ret urns w ith o ur unde rly ing pr ofit abili t y. Our long -ter m re cord of p rofit abili t y and st ron g cash flo w conve rsio n has enable d us to pay increa sing div iden ds sinc e we be cam e a lis ted company in 20 06, an d in the l ast fi ve year s, ordinar y divide nd pay ment s totalle d US$2. 1 bn . Th e Boar d has anno unce d a se cond inte rim divi dend of 35 .7 5 (2021 : 32.50) US cent s pe r share, gi ving a tot al div iden d for th e year of 5 1 .75 (2021 : 4 7 .00) US cent s pe r share, w hich iscover ed 2.4 t imes b y Ben chmark E PS (2021 : 2.2 time s). Ordinar y divid ends p aid in the y ear amounte d to US$4 4 4m (2021 : US$ 427 m). E xpe rian plc , and th e UK enti t y resp onsib le fordis trib utin g divi dend s under t he Gro up’ s Incom e Acce ss Shar e arr angem ent s, have sign ificant d istributable reserves, which at31March 2022 were US$1 8.4b n and US$ 1 0. 3bn re spe ct ively. See n ote L to theC ompany finan cial st atement s fo r fur therdet ail. Net asse ts and RO CE Operating se gment net assets increase d byUS$659m in th e year l arge ly as a re sult ofacquisi tions . ROC E for F Y22 and F Y21 (res tate d) was 1 5.7%and 1 4. 9% re spe ct ively, increasin g asBe nchmark E BI T pro gre ssio n in F Y22 exc eeded g rowth i n capi tal e mplo yed. Th eretur n was lo wer than pr ec eding year sdue to the e ec t of ac quisitio ns comple ted pa r t way thr ough ea ch year . ROC Eisa pos t-ta x meas ure and w e use our Ben chmark t ax r ate for ea se of ca lculat ion. Fur ther inf or matio n on net a ss et s by re gion isgiven in n ote 9 to the Gr oup financial statement s on page 1 79 . 0 50 10 0 15 0 200 250 300 350 400 450 500 FY2 2 FY2 1 FY2 0 FY 1 9 FY 1 8 FY1 7 FY 1 6 FY1 5 FY1 4 FY1 3 FY1 2 FY1 1 FY 1 0 FY 09 FY0 8 FY0 7 US$m 32% 28% 31 % 34 % 40% 41% 41% 41% 41% 45% 46 % 47 % 47 % 46 % 42% 46 % First interim dividend Second interim dividend Payout ratio is dividend per share as a proportion of Benchmark EPS. Full-year ordinary dividend (US$m) and Payout ratio (%) Year ended 31 March 2022 US$m 2021 US$m 2020 US$m Goodwill 5,737 5,261 4,543 Other segment assets 4,193 3,756 3,344 Total segment assets 9,930 9,017 7,887 Segment liabilities (2,297) (2,043) (1,723) Operating segments – net assets 7,633 6,974 6,164 Central Activities – net assets 527 392 310 Lease obligations in operating segments 177 198 198 Interest on lease obligations in operating segments (1) (2) (2) Less: Right-of-use assets (153) (172) (189) Less: non-controlling interests (38) (38) (6) Capital employed attributable to owners¹ 8,145 7,352 6,475 Net debt¹ (3,950) (4,026) (4,097) Tax (379) (417) (292) Add: Right-of-use assets 153 172 189 Add: non-controlling interests 38 38 6 Net assets 4,007 3,119 2,281 Average capital employed¹ 7,774 6,901 6,394 ROCE¹ , ² 15.7% 14.9% 16.1% FY21 1 14.9 FY20 1 16.1 FY19 15.9 FY18 3 15.5 FY22 15.7 ROCE % 3 Re s ta te d fo r IFR S 15. 1 Re s ta te d: se e n ote 6 t o th e Gr oup fi na nci al s ta tem en t s. 2 Fo r de fin it ion o f RO C E se e ‘N on - G A A P me asu re s’ on p a ge 173. For F Y22 th e re tu rn u se d in t he c al cu la tio n of R O CE is b as e d on Be nc hma rk E BI T o f US$1,64 5m a nd a B en chm ar k ta x r ate o f 25.7% . Net assets and ROCE summary Experian plc Strategic r eport 82 Financial risk management Th e key financial r isks sp eci fic to our b usine ss are se t out in th e Risk manage ment s ec tion o n pag es 85 to 92. We co ntinue to co nside r both the dire c t and indir ec t impac t of COV ID - 1 9 on our busin es s and the glo bal ec onomy. The safe t y , healt h and wel l-b eing of our e mploy ees , client s and c onsume rs are o ur for emos t pri ori t y. Most of our emp loye es ar e continuin g to wor k remote ly . Th ere is on goin g uncer taint y sur roun ding the longe r-term impac t on tr ade and l egisla tive arrangem ents following the UK’s depar ture fro m the Euro pean Unio n. We continu e to monitor this risk together with inflationary and geo pol itic al risk s, in cluding mar ket vol atili t y , regul ator y and tax p oli cy unc er taint y . We note continu ed unc er taint y in t he dev elopm ent of tax l egisla tion in o ur key re gions , inclu ding prop os als t hat coul d increa se th e tax b urde n on our b usines se s in so me of our l arg es t regions. We have identified unpr edic table financial market s or fis cal d evelop ment s as a pr incipa l risk an d detaile d narr ati ve disclos ures ar e contain ed in n ote 7 to the Gr oup financial st ateme nts o n pag es 1 73 to 1 75, w ith f ur th er numer ic disclos ures f or for eign exchang e, intere st r ate and cre dit r isk in note s 1 0, 1 5, 24 and 30 respe ctively. Critical e stimates and jud gments Th e Group is s ubjec t to a numb er of risk s andunc er taint ies tha t requir e us to make es timates an d judgm ents . A reas invo lving signific ant uncer taint y are: Goodwill Go odw ill re pre sent s 53% of tot al ass et s. Wetest f or impair ment of g oo dwil l at leas t annually by pe r for ming a v alue -in -us e calculation for each group of cash-gener ating unit s (CGUs), which is b ase d on ca sh flow projections with assumptions. IA S 36 requires us to disclos e whe re a re asonab ly pos sible movement in these key assumptions would lead t he cal culate d re cove rab le amount to b e equal to th e car r y ing valu e. T hes e es timate s are, by na ture , subje ct to unc er t aint y and the key ass umptio ns use d by ea ch CGU, and sens itiv iti es fo r the EME A and A sia Pacifi c CGUs , are s et out in n ote 20 to the G roup financial statem ents . Useful life of intangib le asset s Our busin es s is subje ct to te chnolo gical change and c ompet ition . We current ly amor t ise non -ac quisition int angible s over aper io d fr om thre e to ten ye ars , wi th the aver age li fe b eing fi ve year s . If the us ef ul lif e ofour datab ase s and inter nal use/inte rnally gene rate d sof t w are eit her incr eas ed or decr eas ed by o ne year , the imp act o n the annual amor tisation char ge would be a decr ease of US$ 65m or an incr eas e of U S $ 111m r e s p e c t i v e l y . Ta x a t i o n We are subje ct to t ax in num erou s juris dic tions and have a numb er of ope n tax r etur ns wit h var ious t ax au thor it ies . It c an take many y ears to agre e an ou tcome w ith a t ax au thor it y, asther e are tr ansa ct ions in th e ordinar y cour se of bu sines s for w hich the ult imate taxd eter minatio n is uncer tain. O ur key uncer tainties r ela te to the de duc tibili t y of purcha sed g oo dwil l, inter-c ompany tr adin g and financin g. US$293m (2021 : US$350m) is include d in cur rent t ax liab iliti es in re lati on to the se jud gmental ar eas . If the r es olutio n of all the se unc er taint ies wa s ultimately a dver se , wemay be r equire d to pay an am ount of up to US$ 1 51 m (2021 : US$1 6 6m) in ad dition to t hat currently provided. De ciding wh ethe r to rec ognis e defer re d ta x ass et s is a financial judgm ent. A s set s are o nly recognised when we consider it probable that they c an b e re cover ed b ase d on f ore ca st s offut ure pr ofit s , agains t whic h thos e ass et s may be util ise d. In addi tion , the Gr oup is subj ec t to challen ge bythe Br azilian an d Co lombian ta x auth ori tie s on the d educ tio n for t ax pur po se s of goo dwil l amor tisation. Further information on the contin genc y is pr ovi ded in n ote 45 to th e Grou p financial statem ents . Pensions Th e Group is e xpo se d to a number of r isks inhere nt in define d be nefit p ensi on pl ans, as outl ine d in note 34 (d) to the Gro up financial statem ents . Th e princip al financial assumption use d in deter mining th e car r y ing valu e of pension asset s/ obligations is the real discoun t rate . If this r ate incre ase d/ de creas ed by 0 . 1 %, define d be nefi t obli gatio ns at 31 March 2022 would chan ge by app roximat ely ± US$ 1 6m , os et by a chang e in the f air value of p lan ass et s of appr oximately ± US$1 8m. Litigati on Th ere cont inue to be an in creasin g number ofpen ding and thr eaten ed claim s and regul ator y act ions invo lving t he Gro up acr oss all it s major g eo graphi es wh ich are b eing vigo rous ly defen de d, includin g som e that are inenfor cem ent (from t he C onsum er Financ ial Prote c tion B ureau in N or t h Ame ric a and th e Infor mation C ommis sioner ’s Oce in t he UK ). We do not co nside r that the o utco me of any individual enforcement notice will have a material ly adve rs e ee ct on o ur financial posi tion. 83 Experian plc Annual Report 2022 Strategic repor t Financi al review contin ued Exceptional items and other adjustments made to derive Bench mark PBT We make cer t ain adjus tment s to de ri ve Ben chmark PB T . T he se are s ummaris ed in the table o ppo site. No te 6 to the Gr oup financial st ateme nts e xpl ains th e reas ons f or the exclusion f rom our d efinitio n of Ben chmark PBT of E xc eptio nal items an d othe r adjus tment s mad e to der ive B enchmar k PBT. Fur ther inf orma tion on E xc eptio nal items is prov ide d in note 1 4 to the Gr oup financial st ateme nts o n pag es 1 84 to 185. Non- GA A P measures We have identi fied an d define d cer tain non- GA AP measures as the key measu res use d by manage ment to as se ss t he und erly ing per forman ce of th e Group’s ongoin g busi nesses. Follow ing th e impleme ntati on of IFRS 1 6, we have rev iewe d emer ging pr ac tice an d have update d our de finitio ns of Net de bt and N et fun ding to inclu de lea se ob ligati ons , to mor e fully align our treatment with the requirement s of inves tors an d finance p rovi der s. T he definit ion of cap ital e mploye d has al so b een update d acco rdingly. Th e table op posi te summaris es th ese meas ures , and th ere is a f uller e xpl anatio n in note 6 to th e Group finan cial st atement s on pag es 1 72 to 1 73. Year ended 31 March 2022 US$m 2021 US$m Exceptional items: Loss on disposal of business 43 – Net profit on disposal of associates (90) (120) Restructuring costs 20 50 Impairment of intangible assets – 27 Legal provisions movements 6 8 Net credit for Exceptional items (21) (35) Other adjustments made to derive Benchmark PBT: Amortisation of acquisition intangibles 174 138 Impairment of goodwill – 53 Acquisition and disposal expenses 47 41 Adjustment to the fair value of contingent consideration 26 1 Non-benchmark share of post-tax loss/(profit) of associates 31 (16) Interest on uncertain tax provisions (1) 11 Financing fair value remeasurements (168) (5) Net charge for other adjustments made to derive Benchmark PBT 109 223 Net charge for Exceptional items and other adjustments made to derive Benchmark PBT 88 188 Benchmark PBT Profit before amortisation and impairment charges, acquisition expenses, Exceptional items, financing fair value remeasurements, tax(and interest thereon) and discontinued operations. It includes the Group’s share of continuing associates’ Benchmark post-tax results. Benchmark EBIT Benchmark PBT before net interest expense. Benchmark EBITDA Benchmark EBIT before depreciation and amortisation. Exited business activities The results of businesses sold, closed or identified for closure during afinancial year. Ongoing activities The results of businesses which are not disclosed as exited business activities. Constant exchange rates Results and growth calculated after translating both years’ performance at the prior year’s average exchange rates. Total growth This is the year-on-year change in the performance of Experian's activities at actual exchange rates. Organic revenue growth This is the year-on-year change in the revenue of ongoing activities, translated at constant exchange rates, excluding acquisitions until the first anniversary of their consolidation. Benchmark earnings Benchmark PBT less attributable tax and non-controlling interests. Total Benchmark earnings Benchmark PBT less attributable tax. Benchmark EPS Benchmark earnings divided by the weighted average number of ordinary shares. Benchmark operating cashflow Benchmark EBIT plus amortisation, depreciation and charges for share-based incentive plans, less net capital expenditure and adjusted for changes in working capital, principal lease payments and the Group’s share of the Benchmark profit or loss retained in continuing associates. Cash flow conversion Benchmark operating cash flow expressed as a percentage of Benchmark EBIT. Net debt and Net funding Net debt is borrowings (and the fair value of derivatives hedging borrowings) excluding accrued interest, less cash and cash equivalents. Net funding is borrowings (and the fair value of the eective portion of derivatives hedging borrowings) excluding accrued interest, less cash held in Group Treasury. Return on capital employed(ROCE) Benchmark EBIT less tax at the Benchmark rate divided by average capital employed, in continuing operations, over the year. Capital employed is net assets less non-controlling interests and right-of-use assets, plus/minus the net tax liability or asset and plus Net debt. Exc eptional items and other adjustments made to derive Benchmark PBT Non-G AAP measures Experian plc Strategic r eport 84 Risk ma nagement and princi pal risks Ide nti f ying a nd ma na gi ng ris k is k ey t o ou r bus iness. Do in g so hel ps us d eli ve r lon g-t erm s ha reho lde r val ue a nd pr ot ect ou r bu si ness, peopl e, assets, capi ta l and re puta ti on. Identifying and managing risk Board Group Oper ating Committee (OpCo) Executive management Our risk management governance structure Audit Commit tee Executive Risk Management Committee (ERMC) Assurance Steering Committee (ASC) T a x and T reasur y Commit tee Global and Regional St ra tegic Project Commit tee s Regional Risk Managem ent Commit tee s (RRMC) Environmenta l, Social an d Govern ance (E SG) St eering Commit tee Risk Manage ment an d Governance Commit tee s Sets our overar ching risk appetite and ensures that we manage risk s appropriately acr oss the Group. The Board delegates oversight of risk management activities to the Audit Committee. The Group Oper ating Committee comprises our most senior executives. Its remit includes identifying, debating andachieving consensus on issues involving strategy, risk, growth, people and culture, and operational efficiency. Itsmeetings generally focus on the key issues facing our Group. Our executive management takes day -to-day responsibility for implementing the Boar d’s policies on risk management and internal control. It designates who is responsible and accountable through the design and implementation of all necessary internal control systems , including policies, standards and guidance. Regularly monitors the principal risks and uncertainties identified by our risk assessment processes, with the strategies we have developed and the actions we have taken to mitigate them. Management also continually reviews the effectiveness of our risk management system and internal control systems, which support our risk identification, assessment and reporting. Comprises senior Group executives, including the executive dire ctors and the Company Secretary . It oversees how we manage global risks. This committee and the risk committees mentioned below each meet multiple times a year . is a sub-committee of the ERMC. Its primary responsibility is to oversee management of global information security , physic al security , and business continuity risks. is a sub-committee of the ERMC and oversees the development and implementation of the Group’s assur ance framework. oversees management of financial risks, including tax, cr edit, liquidity , funding, market and currency risks. ensure that we appropriately r esource our strategic pr ojects, and that they are risk -assessed, and commercially and technically appr aised. The committees’ conclusions are then considered by the Board or r elevant Group Principal Operating Subsidiary. oversee management of regional risk s and feed up to the ERMC. ensures the definition, approval and integrated delivery of the Group’s ESG strategy , and is chaired by the Chief Financial Officer. Security and Continuity Steering Commit tee (S C SC) 85 Experian plc Annual Report 2022 Strategic repor t Risk ma nagement and princi pal risks contin ued Our risk managem ent process a Con side r key busin es s objective s a I denti f y pr incipal r isk s a Identif y key controls a Asses s c on tro ls a E stimate lik elihood, impac t and velo cit y a C onsider financial , legal , regulat or y , reputation and conduct exposure a Accept or remediate curr ent ri sk and cont rol environment a Determ ine correct ive action if needed a Business unit and regional level a RRM Cs and E RMC a Au dit Commit tee Three Lines of Defence Audit Committee Executive management / Risk Management Committees First Line of Defence Second Line of Defence Third Line of Defence Lines of business (regional and global) Ex perian I T Ser vices (EITS) Corpor ate func tions Global Risk Management Compliance Business Co ntinuit y Physical Security Legal Global Internal Audit All employees have First Line responsibilities Governance teams have Second Line responsibilities Global Internal Audit has Third Line r esponsibilities Global Security Office Step 1 Risk identification Step 2 Risk assessment Step 3 Risk response Step 4 Risk reporting & monitoring The Board is r esponsible for maintaining andreviewing the eectiveness of our risk management activities from a str ategic, financial, and oper ational perspective. These activities are designed to identify and manage, rather than eliminate, the risk of failure to achieve business objectives or to successfully deliver our business strategy . The risk management process is designed toidentify , assess, respond to, report on and monitor the risks that thr eaten our ability to achieve our business strategy and objectives, within our risk appetite. We follow the Three Lines of Defence approach to risk management. Risks ar e owned and managed within the business (First Line of Defence) andreviewed by ourbusinesses at least quarterly . Global governance teams (from the Second Line of Defence) review risk s and controls, including those relating toinformation security , compliance and business continuity . Global Internal Audit as the Third Line of Defence assesses our risks and contr ols independently and objectively . The r esults of these reviews feed into our reporting cycle thr ough the risk management governance structure. Risk categories Strategic risk – Count r y/Political / Economic – Acquisitions – Competitor – Busine ss s trate gy – Publicity Financial risk – Acco unting – Credit – Liqu idity – Ta x – Market – Currency Regulatory/ Compliance risk – Credit refe rence – Privacy – Financ ial c rime Operational risk – T echn ology – Information securi ty – Physical securit y – Continui t y – Thi rd party – People – Process Experian plc Strategic r eport 86 Our risk profile Our r isk ident ific atio n pro ces se s fol low a dual approach: a A b ot tom - up appro ach at a b usines s unit or country level . This identifies the risks that threa ten an indiv idual bu sines s unit ac tiv it y. T o pr ovid e visibil it y of iss ues a cros s the busine ss , we co nso lidate t hes e ri sks at a regi onal and glob al level , the n esc ala te to the Risk Manag ement C ommit te es . a A to p -d own app roa ch at the glob al level . This i denti fies t he pr incipal r isk s that threaten the deliver y of our strategy (se e below). T he diagr am on this p age summaris es our p rincip al risk p rofile an d tren ds in the th reat le vel s (on a net /residual risk b asis) since th e las t rep or ting pe rio d. Comp ared to l as t year , th e prin cipal r isks remain th e sam e. Our str ategic focus areas 1 Make credit and lending simpler , faster andsafer for consumers and businesses 2 Empower consumers to improve their financial lives 3 Help businesses verify identity and combat fraud 4 Help organisations in specialised verticals harness data, analytics and softwar e to make smarter decisions 5 Enable businesses to find, understand and connect with audiences Risk appetite Th e Boar d set s our o verar ching r isk appe tite for pr incip al risk s acr oss o ur risk c ateg or ies that we f ace in th e nor mal cour se of b usine ss . We ass es s the lev el of ri sk agains t the r isk appe tite to ens ure we f ocus o ur eo r t s appro pr iately. W e tar get r isks f or as ses sment bas ed on gr oss r isk and m easur e them b ase d on net r isk usin g a risk an d cont rol as se ssm ent methodolog y . We then prioritis e them for mitigat ion. T he B oar d and Audi t Commi tte e rev iew the p rin cipal r isks o n an ongo ing basis , as do es th e ERMC . We use a va rie t y of infor matio n sour ces to sh ow if we ar e wor king within o ur toler anc e for th es e risk s and whet her or n ot any of them r equir e addit ional executive attention. Our risk culture Th e Boar d is commi tte d to maintainin g a culture t hat emphasis es th e impor tance of managing r isk and enco urag es transp arent and time ly risk r epo r ting . We work to al ign employees’ beha viours, at titudes and incent ive s with o ur risk ap peti te and wi th ourrisk mana gem ent and oth er gove rnanc e pol icies . Our r isk gov ernan ce pro ce ss rein forces a nd faci litates ap propri ate ownershi p, accounta bility, escalation andmanage ment of our p rin cipal ri sks . Thisp roc es s includ es: we ll- defi ned r ole s andre spo nsibili tie s acro ss ou r Thr ee L ine s ofDef ence m ode l; as signing a ccount abili t y forris k-ta king when making key bus iness decisions; documenting clear boundaries andbe haviour al exp ec tat ions in p olicie s and stan dards; an d creatin g an enviro nment that reinfo rce s adhe renc e and ac count abilit y. Ourgov ernan ce s tru ct ure is de signe d to be agile in b oth managing e xist ing ri sks and reac tin g to any newly i denti fied r isk s. Mate rial risk s are dis cus sed in o ne or m ore of our gover nance f or ums, an d ad -ho c me etings arehel d whe n nee de d, to quickly as se ss anddete rmine ap prop riate r isk re spon se s. Current areas of focus Our r isk lan dscap e cont inues to chan ge as both b usines s and re gula tor y env ironment s evolve. We con tinue t o mak e good progress in becoming more proactive in the identification and manage ment of our p rin cipal r isks throu gh a combina tion of b es t-in- cla ss r isk practice s, greater engagement across the Thr ee L ines of D efe nce and in creas ed us e of data and analy tics . We continuo usly rev iew o ur risk-r elate d po licie s to ensur e they ar e in line with current risk management expe ctations . We complete d an ex ter nal revi ew of our operational risk management programme. While t here w ere no ma terial gaps i denti fied interm s of the are as of foc us, we hav e under taken a transformational projec t related to the ove rall p rogr amme to imp leme nt the consultan t’s recommend ations. We expect tomake subs tantial p rogr es s on th ese recommendations through FY23. In addi tion to k nown p rincip al ri sks , we continue to i denti f y and analys e emer ging one s, and dis cus s the se, a s appro pr iate, indie rent fo rum s, in cluding th e ERMC andAudit C ommit te e. Som e of the em ergin g risk s we are c urr ently consi der ing inclu de: a ESG m att ers: th e Gro up continu es to fo cus on var ious E SG a spe ct s. We are c ommit te d to be comin g car bo n neut ral in o ur own operations by 2030 ¹ . The TCFD statem ent in las t year ’s repor t (see A nnual Rep or t 2021 pag e 53) alrea dy cov ere d mos t of the requir ed TC FD disclo sure. T his ye ar , the TCFD s ta tement ha s be en upda ted to r efle ct the s cenar io analysis pe r for me d acro ss th e Group (s ee pa ge 6 4), and our disclosur e fully aligns to th e re comm endati ons of th e TCFD fr amewor k . We continue to make p rogr es s in social inno vation and financial inclusion . We also forma lised E xperia n 's Data Pr inciple s, w hich emb od y our v alues a s they rel ate to data , and pr ovi de a guide pos t for how we mana ge and us e data , build pro duc t s and con duc t our busin es s. a Pandemic response: The COVI D- 1 9 pand emic , including s ucce ssi ve var iants , continu es to p ose th reat s to s afet y, busine ss ope rati ons and t he br oad er ec onomy in seve ral co untri es glob ally. Exp erian has Principal risk profile IMP ACT LIKELIHOOD Risk movement: Incr easing Decreasing Stable Increasing competition Undesirable investment outcomes Dependence on highly skilled personnel Business conduct risk Loss or inappropriate use of data and systems F ailure to comply with laws and regulations New legislation or changes in regulatory enforcement Non-resilient IT/business environment Adverse and unpredictable financial markets or fiscal developments 1 A ll r ef er enc e s in th is A nnu al Re po r t to ‘c ar b on n eu tr al in o ur ow n op er at io ns by 2 03 0’ i ncl ud es a ll S co pe 1 a nd 2 emi ss io ns , pl us w it hin S co pe 3 t he c a te gor i es o f ‘P ur cha se d Go o ds an d Se r v ic es’, ‘B us in es s Trave l ’ an d ‘Fu el -an d - en er gy - re la te d ac ti vi ti e s’ (wh ich r ep re s ent 8 3% o f our b as e lin e emi ss io ns in S co p e 3). Th is i s ali gn ed w it h th e em is sio ns co ver e d by o ur s cie nc e -b as e d tar g et ap pr ov ed b y th e SB T i. Ref er t o pa ge s 64 -71 for f ur t he r inf or ma ti on . 87 Experian plc Annual Report 2022 Strategic repor t Risk ma nagement and princi pal risks contin ued handle d the impa ct s of CO VID - 1 9 succ es sf ully so f ar , bu t we cont inue to pay close at tent ion to dev elopm ent s rela ted to the pa ndemi c and make adjus tme nts , wh ere appro pr iate, to th e way we wor k as an organisation. a B ots/ Ar tificial Intelligence: As m ore automat ion is emp loye d to per form oper ati onal task s and th ere is incr easin g inte rconnectedness, strong governance is requir ed to en sure that r isk s (such as se curi t y , change manag ement , single p ers on dependency, completeness/ accuracy of d ata) are appr opr iately manag ed. In s ome r egio ns, regul ator s are pr escr ibin g cons trainin g gover nance w hich may impa ct th e ease of using th es e techno logie s for c er tain a ct ivi tie s. We are als o moni torin g emer ging re gulati on of Ar t ificial Inte llig ence f or impac t on historical credit scoring algorithms. Principal risks Th e follow ing pa ge s summaris e our pr incipa l risks and uncer tainties with mitigating actions for ea ch, and r elate d tr ends in th e risk enviro nment , as ide ntifie d by th e Boar d for theye ar end ed 31 March 2022. Th e list is n ot exhau sti ve and may chang e during t he nex t finan cial year , as t he risk landsca pe evol ves. While C OV ID - 1 9 ha s not impa ct ed our p rin cipal risk s materially, we cont inu e to remain f ocus ed on the h ealth, s afe t y and wel l-b eing of our employ ee s, clie nts an d consum ers . In ord er to ass es s our Gr oup’s viabilit y, the direc tor s fo cuse d on thr ee p rincip al r isks thatare cr itic al to our su cce ss . Th es e are summaris ed b elow and dis cuss ed in mo re detail in t he V iabilit y a ss es sment s ec tion follo wing t he de scr iptio n of our pr incipa l risk s. a L oss or inappropriate use of data or systems leadin g to ser ious r epu tatio nal and br and damage, l egal p enaltie s and cla ss ac tio n litigation. a A dvers e and unpr edic table financial market s or fi sca l develo pme nts in o ne of our major co untri es of op er ation , re sulting in significant economic deterioration , currency weakness or restric tion. a N ew legisl atio n or change s in re gulator y enforcement, changing how we operate our business. thro ugh our p ar tn er s or thir d- par t y contractors. This r isk is co nsid ere d in the v iab ilit y assessment. Risk type Risk movement Operational Stable Potential impact Unauth oris ed a cce ss to co nsumer da ta coul d caus e pro blem s for co nsume rs and r esult in material lo ss of busin es s, subs tant ial legal liability , regulator y enforcement actions and/ or signific ant har m to our rep uta tion . Th e impac t of this risk , if i t material ise s, wil l t ypic ally b e felt in th e near ter m. Exampl es of control mitigation a We deploy physical and technological security me asur es, com bined with monito ring an d aler tin g for suspi cious activitie s. a We mainta in an infor mation s ec uri t y pro gramme w ith s tron g gover nance f or identif ying, protecting against , detecting andre spo nding to c yb er se cur it y r isks an d rec over ing f rom c yb er se cur it y incid ent s. a We imp ose c ontra ct ual se cur it y requir emen ts on o ur par t ner s and oth er third p ar ti es tha t use o ur data , comp leme nted by period ic re views ofthird -par ty c ontro ls . a We mainta in insura nce co ver age , wher efea sible and ap prop riate . Responsibilit y Our Glo bal Se cur it y O ce s et s poli cies an d stan dards r ela ted to th e infor mation s ec urit y pro gramm e. Ever y employe e is ultimately resp onsib le for fo llowin g se curi t y pol icie s and protocols . Changes this year E xte rnal c yb er s ecur it y thr eat s to busin es se s continue to in creas e in numbe r and sc ale. Weals o continu e to se e an increa se in fr audulent a ct ivi t y se ekin g acc es s to data . Our se cur it y pr ogr amme co ntinues to imp rove its maturit y relati ve to i ndustr y framework s and we have f ur th er enhanc ed our p rote cti on, dete ctio n and re spo nse c apabili tie s by str engt henin g sec uri t y pol icies , pr ac tice s and trainin g. We al so ensur e that we ap ply them consis tently ac ros s our re gions an d busine ss unit s. We wil l continu e inves ting in th e too ls , pe ople , res our ces an d initiati ve s nec es sar y to maintain and imp rove o ur global info rmati on securi ty progra mme. Our Chi ef Infor mati on Se cur it y O c er has retir ed this y ear and his su cce ss or has st ar te d in the r ole. We oper ate glob ally and our r esult s co uld b e aec ted by global, regional or national changes in fisc al or mo neta r y po licie s. A subs tantial chang e in credi t market s in theUSA , Brazil or t he UK co uld re duc e our financial per f ormanc e and grow th p otential inthos e count rie s. We pres ent our G roup financial s tat ement s inUS doll ars . Howe ver , we t rans ac t busine ss in a number of cur ren cies . Chang es in oth er curr enci es re lati ve to th e US doll ar ae c t our financial result s . A subs tantial r ise in US , EU or UK inte res t r ates could in creas e our f utur e cos t of bo rro wings . We are subje ct to c omplex an d evolv ing ta x laws an d interpr etat ions , which may chan ge signific antly. Thes e change s may incre ase our ee ct ive ta x ra tes in th e fut ure. Un cer taint y abou t the app lic ation of th es e laws may al s o res ult in die rent ou tcom es f rom th e amount s we provide for . We have a number of ou ts tan ding ta x mat ter s and re solv ing th em coul d have a subs tantial impac t on our finan cial sta tement s, c ash and reputation. This r isk is co nsid ere d in the v iab ilit y assessment. Risk type Risk movement Financial Increasing Potential impact Th e US, Br azil and UK mar ket s are signi ficant contr ibuto rs to our r evenu e. A redu ct ion in on e or mor e of the se co nsume r and busin es s credi t ser vices mar ket s could redu ce our re venue an d profi t. We bene fit fr om the s tr engt hening of curr encie s rel ativ e to the US do llar an d are adversely aec ted by currencies weakening relative to it. We have out st anding d ebt den ominate d prin cipally in e uros , poun ds ste rl ing and USdoll ars . A s this de bt matur es , we may nee dtorep la ce it wi th b orr owin gs at highe r interes t rate s. Our ear nings c ould b e re duce d and ta x paym ent s incre ase d as a re sult of se t tling histor ic al tax p ositi ons or in creas es in taxr ate s. Adv ers e publ icit y ar ound t ax co uld damage ourreputation. Th e impac t of this ri sk, if i t material ise s, wil l t ypi cally b e felt in th e shor t to long ter m. Loss or inapp ropriate use of data and systems Adverse and unpredic table financial markets or fiscal developments We hold and mana ge sen siti ve cons umer infor mation t hat incre ase s our ex pos ure and susceptibility to cyb er attacks or other unauth oris ed a cce ss to dat a, ei ther dir ec tly thro ugh our o nline s ys tems or in dire ct ly Experian plc Strategic r eport 88 Exampl es of control mitigation a We have a di ver se p or t fo lio by g eo grap hy , pro duc t, s ec tor and cli ent. We pr ovid e counter - cyclical products and ser vices . a We co nver t cash bal anc es in fo reign curr encie s into US doll ars . a We fi x the inter es t rate s on a pr opo r tio n ofour bo rr owing s. a We re tain inter nal and ex ter nal ta x profe ssio nals , who r egul arly mo nitor developments in international tax and ass es s the impa ct of chan ges an d die ring outcomes. a We r evie w contin genc y pl ans in our ke y market s as to sp eci fic po tential re spon se s to evolving financial con ditions. Responsibilit y Our cor p orate an d busin ess uni t finance func tio ns moni tor our ex ter nal lan dsc ape, an d inter fa ce wi th busine ss uni ts to d evelop an d implement appropriate actions. Changes this year We continue to analys e the imp ac t of potent ial economic downturn and associated actions, par t icular ly in our ke y market s . Som e of the under lyin g risk v ec tors ar e impro ving , while other s have f utur e uncer taint y ass ocia ted wi th them , as det ailed b elow and s o this wil l continu e to remain an are a of focus . Dur ing th e year , t he global e con omy s aw a strong rebound, with the Gross Domestic Pro duc t (GDP) in our main mar ket s exp ec te d to grow 6.9%, follow ing a 4. 3% rec es sion in F Y21 (Ox for d Econ omic s, Fe br uar y 2022). Th e GDP in our main mar kets is e xp ec ted to gr ow 2.8% in F Y23, fo llow ing suc ces siv e redu ct ions in rec ent mont hs. Facto rs such a s the impa ct of inflat ion on our b ase p ayr oll co st and techno logy sp end as w ell as othe r issue s such as supp ly chain pre ssur es c an al so lea d to higher o per ating c ost s . Th e impac t of the Russian inv asion of Ukr aine is b eing clo sely monito re d by a wor king gr oup. We co ntinue to per form analy ses to un der sta nd the imp ac t of changes in economic cond itions on Group revenu es and hav e consid ere d dier ent economic scenarios in our viability assessme nt. Th e Group of t w ent y (G20) countr ies ha s now endo rs ed th e t wo -pil lar app roa ch to the reform of international taxation. Thes e are that the l arge st an d mos t profi table glo bal compani es p ay cor po rate t axe s in their l arg es t custo mer mar kets , and tha t there is a glo bal minimum cor po rate t ax of 1 5%. In the USA , tax re for m prop os als c ontinue to be dis cuss ed , including chan ges to t he cor po rate f ede ral in com e tax r ate. In B razil , Ser asa E x pe rian has b ee n succ es sf ul in it s challeng es to date a gainst t he Br azilian t ax auth ori tie s for th e dedu cti on of the ini tial goodwill amor tisation arising from its acquisit ion by E xp er ian, how ever th ere are som e remaining ma t ters t hat are yet to b e res olve d. T he C olombian T a x Auth or it y has rais ed a simila r challeng e on the de duc tibili t y of goo dwil l in resp ec t of th e 201 4 and 201 6 taxy ears . Histo ric al UK ta x dispute s continu e tobe dis cuss ed w ith H er Maje st y’s Revenu e andCus toms . interpretations and associated implications. Th e busine ss uni ts p ut into pl ace ap prop riate procedures and controls designed to ensure compliance. Changes this year New l aws, n ew inter pret atio ns of exis ting l aws , change s to exis ting re gulat ions and h eightene d regul ator y scr utiny cont inue. T he glob al foc us is stil l on pr iva cy an d a gene ral tr end to wards mor e consum er co ntrol o ver data , bu t als o include s heighte ned r egul ator y s cr utiny and interpretations of existing re gulations related to our cre dit re fere nce and c onsum er ser vice s busine ss es in o ur lar ger mar ket s. T he l aws and re gulat ions to wh ich we are sub jec t are comple x, p rincip les- bas ed , and may be s ubjec t to interp reta tion s, whi ch can le ad to ac tual and potent ial die renc es in how r egul ation s are now inter pre ted and e nforc ed in many of th e juris dic tion s in which w e ope rate . In som e cas es th es e die renc es in inter pr etati ons may have to be d ecid ed in th e cour ts. We highlight so me signifi cant up dates b elow: In the US A , the C onsum er Finan cial Prot ec tion Bure au (CFPB) c ondu ct s re gular an d ong oing super vis or y examinations of various aspect s of our cre dit re fere nce b usines s . The C FPB ha s increased it s super visor y and enforcement ac tiv itie s gene rally in t he financial s er v ice s indus tr y, with a fo cus on a ccur ac y, fairne ss , financial inclusion and anti- dis crimination . Th eCali for nia Pr iva cy Ri ghts A ct (CP R A ) will be com e ee cti ve on 1Januar y 2023, with theC alif ornia C ons umer Pr iv ac y Ac t (CCPA) remainin g in ee ct t hrou gh that date. Many other US s ta tes ar e pro gre ssing p ri vac y regul atio n, and m ore ar e exp ec ted to ena ct pri va cy l aws be for e a national p ri vac y stan dard may b e es tabl ished . In the m eantime , diver genc e in st ate law s may have an impac t on pro duc t s and s er v ice s, as w ell as on compliance regimes. In Braz il, s ome r egula tors hav e bee n examining c omplianc e with th e re cently enac ted Pr iv ac y legisl ation m ode lled af ter the EU G ener al Dat a Pr otec tio n Regul atio n (GDPR ), which may have an imp ac t on how b usines se s ope rate in c er tain mar ket s, in cluding marketin g ser vice s. In a ddit ion, C ontr an (National C oun cil of T ra c) pub lishe d new legisl ation in D ec ember 2020 e st ablishing res tr ict ions to th e auto financ e re gistr y busine ss , in ord er to avoi d confli ct s of intere st . In the UK, the Government’s Nation al Data Strate gy an d regul ator y changes ar ound us e of ope n bankin g data indi cate a f utur e change in direc ti on in re gulati on of data to e ncour ag e eco nomic gr ow th and inn ovati on in bal ance with p ri vac y pr otec tio n. T he UK F inancial Con duc t Aut hor it y 's (FCA ) Marke t Stud y into the Cr edit Inf or mation s ec tor is due to r ep or t by mid - 2022. It s foc us includ es the c ompe titi ve dynami cs and c onsum er outc ome s resu lting New legislation or changes inregulator y enforcement We oper ate in an incre asingly co mplex enviro nment and many of o ur ac tiv itie s and ser vice s are subj ec t to legal an d regul ator y influenc es . New l aws, n ew inter pre tatio ns of exis ting law s, chang es to ex istin g regul ation s and hei ghtene d regul ator y scru tiny coul d ae ct h ow we op er ate. For e xample, regul ator y interp retation of co mplex, principles-based privacy regulations could ae ct h ow we co lle ct an d pro ces s infor mati on for mar keting , risk mana gement an d fr aud detection. This r isk is co nsid ere d in the v iab ilit y assessment. Risk type Risk movement Strategic Regulatory/Compliance Operational Increasing Potential impact We may suer in creas ed c ost s or r educ ed reve nue re sulting f rom m odi fied b usine ss practices, adopting new procedures, self-regulation or litigation or regulator y ac tions r esult ing in liabil it y, fines and/ or change s in our busin es s pra ct ice s. T he impa ct of this risk , if i t material ise s, wil l t ypic ally b e felt in th e shor t term. Exampl es of control mitigation a We us e internal an d ex ternal r es ourc es tomonito r planne d and r ealise d change s inlegisl ation . a We edu cate lawm ake rs, regu lato rs, consum er and pr iv ac y advo cate s, in dustr y tra de gro ups, o ur client s and o ther stake hold ers in t he pub lic p olic y de bate. a O ur global C omplian ce team has regio n-specific regula tory expertise and wor ks w ith our b usine ss es to id entif y and adopt balanced compliance strateg ies. a We execute ou r Compliance Management Pro gramm e, whi ch direc t s the s tr uc ture , docu menta tion , tool s and t raining requirement s to suppor t compliance onanong oing ba sis. Responsibilit y Our Le gal , Gove rnme nt Aair s and C omplian ce func ti ons wor k wi th our b usines s unit s to under st and th e impac t of rele vant law s and regul atio ns, in cluding any re gula tor y 89 Experian plc Annual Report 2022 Strategic repor t Risk ma nagement and princi pal risks contin ued fro m credi t infor matio n. T he FC A is cons ulting on r ules to impl ement a n ew C onsum er Dut y which w ill re quire fir ms to ac t to del iver g oo d outc ome s for co nsumer s , enforc ed by t he FC A . Th e prop os als a t pre sent d o not inclu de a pri vate r ight of ac ti on in rel atio n to the dut y, and the re has b een p reliminar y reco gniti on that cre dit ref eren ce ag encie s do not dir ec tly contr ol ou tcome s for c onsum ers w ith le nder s in conne ct ion wi th this dut y. The d ecision in t he UK Supr eme C our t c as e of Lloy d v Go ogle ha s redu ce d the r isk of rep res entat ive a cti ons for brea che s of data pr otec tio n law. Finally, the UK Infor mation C ommissi oner ’s Oce (IC O) and Competition and Markets Authorit y (CMA) both continu e wor k in the Ad T e ch spa ce wh ere th ey are loo king to b alan ce pr iva cy r ight s agains t the r isks of gi vin g lar ge onlin e pla t for ms comp etiti ve ad vanta ge and do minance. A n ew Commis sion er was app ointed a t the IC O in Januar y 2022 to lea d enfor ceme nt and interpretation of data protection regulation. In Europ e, the Eur ope an Commis sion publ ished i ts p rop osal f or th e Ar t ificial Intelli genc e (A I) Regul atio n. We are a cti vely involve d thro ugh our Eur ope an indus tr y tr ade bo dy ( ACC IS) and throu gh addi tional e or t s toshape th e develo pment of th e legisl ati ve pro ces s to minimise r isk to our b usine ss . InSpain, a minis ter ial ord er was is sue d in July 2020 which ha s the p otential to le ad to a pub lic credi t regis tr y. The b anks ar e supp or tin g this legisl ation b ec ause i t allows the m to avoid sharin g posi tive dat a wit h pri vate b ureau x, which in t urn w ill limit a cce ss to p osit ive dat a for no n- bank len der s, th us maintaining t heir market co ncentr atio n. We laun ched a ju dicial rev iew agains t the minis ter ial ord er in Sept embe r 2020 and await an up date fr om theco ur t , now ex pe ct ed la ter in 2022. In Sou th Af ri ca, b urea ux eit her re quire p rio r autho ris ation o r an indus tr y C ode of C ond uct to pro ces s dat a under th e Pro tec tio n of Pers onal Infor matio n Ac t (PO PI A). We are cur re ntly engag ed as an in dust r y wi th the r egul ator to issu e a Co de. We have co nfirme d that th e indus tr y c an continu e to pro ce ss dat a while awaiting is suance of th e Co de. We hold and mana ge sen siti ve cons umer infor mation an d we mus t comply w ith many complex privacy and consumer protection laws , re gulat ions and c ontr ac tual obl igati ons . Risk type Risk movement Regulatory/Compliance Operational Increasing Potential impact Non -c omplian ce may re sult in material litigation, includi ng class actions , as well as regul ator y acti ons . Th es e could r esult in ci vil or criminal l iabilit y o r penalti es , damage to our repu tati on or signifi cant chang es to pa r t s of our busin es s. T he imp act of t his risk , if i t material ise s, wil l t ypic ally b e felt in th e near term. Exampl es of control mitigation a We maintain a c omplian ce managem ent fram ewor k that inclu des de fined p olici es , pro cedur es an d contro l s for E xp erian employ ee s, bu sines s pro ce ss es , and third par t ies s uch as ou r data r ese ller s. a We as se ss th e appr opr iaten es s of using data in ne w and changin g pro duc ts an d services. a We vi goro usly def end all p endin g and threatened claims , employing internal and ex ternal c ouns el to ee c tively mana ge and conclude such procee dings. a We analys e the c ause s of claim s, to id entif y any potent ial change s we ne ed to make to our bu siness processes a nd poli cies. a We mainta in insur ance c over age , wher e feasible and appropriat e. Responsibilit y Our L egal and C ompl iance f unct ions wo rk wi th our busin es s unit s to unde rs tand t he impac t ofrelev ant laws an d regul atio ns, in cluding anyreg ulator y interp reta tions an d ass ociat ed implications. Our business un its put int o place appropriate procedures and controls designed to ensure compli ance. Changes this year We have face d incr ease d re gulato r y scr ut iny , and re gulator y and gove rnme nt enquir ies an d investigations in several ju risdictions . The laws and re gulat ions to wh ich we are sub jec t are comple x, p rincip les- bas ed , and may be s ubjec t to interp reta tion s, whi ch can le ad to ac tual and potent ial die renc es in how r egul ation s are now inter pre ted and e nforc ed in many of th e juris dic tion s in which w e ope rate . In som e cas es th es e die renc es in inter pr etati ons may have to be d ecid ed in th e cour t s . In the USA , we are subje ct to r egul ar and ongoing super visor y examinations of various aspe c ts of o ur cre dit ref eren ce busin es s by the CFP B. Dur ing t he co urs e of the ye ar , the C FPB condu cte d supe r vis or y e xaminatio ns cove ring our disp ute resol utio n processes, Experian Bo ost an d client cr edent ialing. T he r esult s of the dispute resolution examination h ave been refe rr ed to th e CFP B’s Enforc ement D iv ision and we are c urr ently re spo nding to dat a requ es ts . In the c urr ent envir onment , we exp ec t that on e or mo re ad ditional ma t ters could b e re fer re d to enfor cem ent in the n ew financial year . Ov er the pa st yea r , the numb er of US clas s ac tion l awsuit s has r emaine d steady, however individual consumer cases are tre nding up . While we ar e managing t he eec ts asso ciated with these investigations and law suit s, t he cos t s of resp on ding to the increa se d regul ator y scru tiny and de fendin g liti gation ar e risin g and con seq uently th e risk of potent ial liabilit y and impac t on so me par ts of our busin es s remains signi ficant . In Bra zil, t he gen er al data p rote ct ion l aw (LGPD) has b ee n ee ct ive sin ce Se ptemb er 2020. In addi tion , LGPD cr eate d the Br azilian National Data Protection Author ity (the ANPD) , which e xercise s cer tain role s of edu cati on, enforcement, investigation, and regulation, includin g the dete rminat ion of r ules/ pro ced ures an d interp ret ation of dat a prote c tions l aws . While w e have implem ented our rigorous com pliance programme based onthe p rin ciples o utl ined in t he la w, we have already see n some d ierent regulat or y interp reta tions of t hes e pr inciple s and ho w they r elate to o ur Marke ting S er v ice s busine ss . Th e Fede ral Di str ic t publ ic pro se cutor fil ed a clas s ac tion again st S eras a E xp erian , allegin g vio lati ons to LGP D in fail ing to obt ain con sumer cons ent pr ior to dis closing and us ing pe rso nal data fo r market ing pur po se s in t wo spe cifi c solu tions . We are no lon ger pr ovi ding tho se two mar keting solutions In the UK , o ur appe al agains t the IC O's Enfor cem ent Not ice (EN) w as hear d by th e Firs t Tie r T rib unal over s ever al days in Januar y an d Febr uar y 2022. We await th e decisi on which is exp ec ted in t he ne xt s eve ral m onths , and th ere are fur ther r ight s of appeal . We have cont inued to se e open c onta ct and clo ser sup er vision by the UK FC A aroun d compl iance wi th their r ule s and pr inciple s, p ar tic ular ly rel ating to th e impor tance of th e role of cre dit re fere nce agen cies to th e financial ser vice s indus tr y and the ob ligat ions of cr edit r efer ence a gen cies to thos e wh ose dat a is hel d. Mos t re cent ly their focu s has be en on financial l iquidit y, oper ational resilience, cyb er and operational risk. In Sou th Af ric a, E x per ian implem ented i ts readin es s pro gramm e for co mplianc e with th e Prote c tion of P ers onal Infor mati on Ac t (P OPI A ). A set tl ement ha s be en re ache d wi th the Nation al Cre dit Regul ator r egar ding th e fr audulent da ta incid ent that o ccur re d in 2020 and the settlement agre ement requirements are be ing f ulfille d. F ailure to comply with laws andregulations Experian plc Strategic r eport 90 Del iver y of our pro duc t s and se r vi ces d epe nds on a number of ke y IT s ys tems and p ro ces se s that exp os e our client s , cons umer s and busine ss es to s eri ous disr uptio n in the eve nt of systems or operational failures. Risk type Risk movement Operational Stable Potential impact A signific ant failur e or interr upti on coul d have a mater ially adv ers e ee ct o n our busin es s, financial per f ormanc e, financial condit ion andrep uta tion . Th e impac t of this r isk, i f it mater ialise s, wil l t ypi cally b e felt in th e nearter m. Exampl es of control mitigation a We maintain a si gnific ant leve l of resil ienc e in our op erat ions , desi gned to av oid mater ial and sus taine d disr uption to o ur busine ss es , client s and co nsumer s . a We de sign app lica tions to b e re silient andwi th a bal ance b et we en long evi t y , sust ainabilit y an d spe ed. a We maintain a glo bal integr ated b usines s continuity framewor k that includes industr y-appropriate policies, procedures and cont rol s for al l our s ystem s and re late d pro ce ss es , as wel l as ong oing r evi ew, monitoring and escalation activi ties. a We dupl ica te infor mati on in our dat abas es and maintain b ack-up dat a centre s . Responsibilit y Our cor p orate an d busine ss te chnolo gy team s, assis ted by t he Busin es s Continui t y fun cti on, are re spon sible for maint aining appr opr iate primar y and back-up inf ra str uc ture to minimise disruption . Changes this year Throughout this year we experienced isolated event s that te ste d our pl ans and pr oce ss es . We continue to clos ely mo nitor our in frastructure and pr ocesses to manage ourcommi tment s to cli ents , con sumer s andre gulato rs . In addi tion , we pr ovid e trainin g to our key resp ond ers an d car r y ou t per io dic exercis es tovalidat e that our pr oc edur es are fi t for purp os e. We have desi gned o ur appli cati ons using a ‘b uild any w here , dep loy any wh ere’ str ateg y, to suppor t p or t abilit y and maximum resilience. Ou r approach t o asset lifecycle management helps ensure th at we retire and repl ace o ur techn olog y in a time ly fashio n. We are closely m onitor ing th e impac t of global supply chain is sue s on the co st of techn olog y hardw are and o ur abilit y to p roc ure it . Sofar ,maintenance is n ot bein g impac te d. A global init iativ e continu es pr ogre ss to maximis e busine ss va lue and maintain leade rship thr ough ac celer ated te chnolo gy transfor mation. We also continue targeted improvements to be well prepared for resili ency r isk events . Our su cce ss de pen ds on our ab ilit y to a t tra ct , moti vate and r etain ke y talent w hile al so building f utur e leade rship. Risk type Risk movement Operational Increasing Potential impact Not havin g the r ight pe opl e could mate rially ae ct o ur abilit y to ser v ice our cl ient s and grow our b usine ss . Th e impac t of this r isk, ifitmate rial ise s, w ill t yp ical ly be f elt in the longter m. Exampl es of control mitigation a In e ver y r egi on, we hav e ongo ing pro gramme s for r ecr uitme nt, pe rso nal and career development, and talent identification and developm ent. a A s p ar t of our e mploy ee en gage ment str ate gy, we conduc t p eri odic e mploy ee sur v eys . We tra ck pro gre ss a gainst o ur action plans. a We oer competitive compens ation and ben efit s and r evie w them re gular ly. a We actively monitor at trition rates , with afoc us on indiv idual s de signate d as high talent o r in str ategi cally imp or tant role s. Responsibilit y Our bu sines s unit s wor k wit h the Human Res ourc es f unc tion to s et and imp lement talent manag ement s tra tegie s. Changes this year We continue to t ake ste ps to e ec tive ly manage our ab ilit y to at tr ac t, d evelop an d ret ain employ ee ta lent and w hile our mit igatio n eor ts have b ee n ee ct ive , our tale nt continu es to b e highly at tr ac tive to ot her organisations. We continue to tr ans for m our T ale nt Acquisi tion pr opo sitio n to bet te r at tra ct t alent to E xpe rian . We have embe dde d mobil e- enabled te chnolog y , introdu ced can didate experience sur veys at dierent stages of the hiring and onboa rding process, s ignifica ntly enhance d our p res enc e on so cial me dia, implem ented key p er f or mance indi cato rs for recr uite rs and c ontinue to upsk ill our c apabil it y within t he T alent A cquisiti on team. We monitor employee engagement through avari et y of channel s and have b een implem enting th e ac tion pl ans f rom our per io dic sur v eys . In addi tion to high r esp ons e rate s, o ur late st sur veys cont inue to show str ong en gagem ent and en ableme nt sco res . Voluntar y at tr itio n rate s are s table bu t continu e to be a fo cus . Signific ant ac tiv it y in Di ver sit y, Equit y and Inclusion (D EI) cont inues w ith th e roll- o ut of Non -re silient I T /busine ss environment Business conduc t risk Depend ence on highly skilled personnel Our busin es s mod el is de signe d to create long -ter m value f or pe ople , busine ss es an d so ciet y, through our da ta as set s and inn ovati ve analy tics an d sof t ware so lutions. Inapp ropriate execu tion of o ur busine ss s tr ategie s or ac tiv itie s could a dve rs ely ae c t our clie nts , consumers or counte rpar tie s. Risk type Risk movement Strategic Operational Stable Potential impact Con sumer s or clie nts c ould r ecei ve inappro pr iate pro duc t s or not have a cce ss toappro pr iate pro duc t s, re sultin g in mater ial loss of b usines s, s ubst antial le gal liabilit y, regul ator y enforc ement a cti ons or signi ficant harm to our r epu tati on. T he impa ct of t his risk , if it mater ialis es , will t y pica lly be f elt in the shor t ter m. Exampl es of control mitigation a We maintain ap prop riate go ver nance and oversight t hrough p olici es, p roc edure s and contr ol s design ed to s afeguar d pe rso nal data, avoid detriment t o consumers, provide consumer -c entric product design and deli ver y , an d ee ct ively r esp ond to e nquiri es and comp laint s. a T he ab ove a cti vit ies al s o supp or t a ro bus t conduct risk man agement framework . a We enf orc e our Glob al Co de of C ondu ct , Anti - Cor r uption P olic y and Gif t s an d Hospitality Polic y . If we believe employees orsupp lier s are no t foll owing o ur con duc t stan dards , we will inv es tigate th orou ghly and tak e disc iplina r y action where appropriate. Responsibilit y Our Compli ance function sets policies and stan dards , includin g the Glo bal Co de of Con duc t. A ll empl oyee s are a cco untable f or under st andin g and fol lowin g our con duc t stand ards. Changes this year Regul ators hav e continu ed to pu t publ ic tr ust and con sumer an d inves tor pr otec tio n at the centr e of their mis sion s tatem ents an d have promoted prudent conduct risk ma nagement. We regul arly ev aluate our p olici es and o ther proto col s to en sure tha t we st ay up to spe ed with exter nal and internal expectations . 91 Experian plc Annual Report 2022 Strategic repor t aconsis tent glob al fram ewor k – not ably, areq uirem ent that o ur Gro up Ope rat ing Commi t tee has a D iver sit y A cti on Pl an that’s reviewe d quar terly, evolving financial inclusion as one of o ur key busin es s dri ver s and se nior exec uti ves t akin g up Spon sor r ole s for key areas of o ur DEI s tra teg y , includin g set tin g gender and ethnicity target s. Wi th COV ID - 1 9 , we hav e kept th e health an d safe t y of our emp loye es as th e pr imar y consi der ation of o ur pan demic r esp ons e. Mos t of our empl oyee s are s till wo rk ing rem otely. We expect fu ture work arr angements to be guide d by a consis tent global f ram ewor k and prin ciple s, wi th loc al flex ibilit y ar ound th e appro ach to ac count f or legal an d cultur al nuances . a W her e appr opr iate, and avail able , we make acquisit ions , minor it y inve stm ent s and enter into str ategi c allianc es to ac quire new capa biliti es and e nter into new mar ket s. Responsibilit y Our C orp or ate Dev elopm ent and E xp erian Ventures team s, as we ll as our b usine ss unit s, monito r the co mpet itiv e land scap e in or der to develo p and implem ent appr opr iate ac tions . Changes this year We are pro ac tive in o ur eo r t s to evaluate comp etitor s and mar kets , and pur sue inves tme nts an d enhanc ement s to our da ta, analy tics , techno logy an d capabili ties wh ere appro priate , availab le and fea sible. T ra ditio nal comp etitor s continu e to purs ue die rentia ted dat a ass et s, a djace nt ver t ical expa nsion , and new g eo grap hic market s . In the Con sumer S er v ices sp ace , other fir ms have be com e bigg er comp etito rs in r ece nt year s as we have exp ande d in area s such as digi tal marketplaces and identity protec tion. We feel confident in Exper ian ’s relative position and comp etit ive ad vant age s, b ut the b roa der land scap e cont inues to e volve. Th ere is a lon g-te rm co mpet itiv e risk to consi der re late d to newe r entr ants b uilding infor matio n net wo rk s bas ed o n cons umer data . While s ome of t hem may no t be tr ying tobuild a cre dit b ureau o r fr aud bu sines s as such, t his is not many de gre es away f rom o ur core b usine ss and is b eing clos ely mo nitore d. Cer tain gover nme nts an d centr al bank s in countr ie s wher e we have cre dit bur eaux ar e colle c ting loan dat a fro m bank s, pr incip ally fors yste mic risk analy sis, th ough s ome may share indi vidual lo an data wi th lend ers , which has the p otential to c ompe te with s ome of o ur credi t ref eren ce data s er v ice s. T he t iming and whether any government agencies choose to go dow n this ro ute is unc er tain . In the US A , there have been references to comprehensive refo rm of th e credi t burea u ecos ys tem, includin g the p otential fo rmat ion of a government-owned credit bureau. However , the se pr opos al s app ear unlikely to b e enac ted in their c urr ent, b roa d for m. I t is mor e likely that re gulato rs wil l continu e to push for improvements through the existing super visor y and examin ation programmes . Potential impact F ailure to suc ces sf ully implem ent our key busine ss s trate gie s could have a ma terially adv ers e ee c t on our abil it y to achi eve our grow th targets . Poorl y ex ecuted business acquis itio ns or par tn ers hips could r esult in ma terial los s ofbusine ss , incre ase d cos ts , re duce d revenu e,subs tantial le gal liabili t y , re gulator y enfor cement a ct ions an d signific ant harm toour re put ation . Th e impac t of this risk , if i t material ises , willt y pical ly be f elt in the lon g term . Exampl es of control mitigation a We analys e comp etit ive thr eat s to our busine ss mo del an d market s . a We c arr y out comp reh ensiv e busine ss reviews. a We per form comprehensive due d iligence and po st-inve st ment re view s on acquisi tions and inves tment s . a We emp loy a ri goro us cap ital allo cat ion framewor k. a We de sign our in centi ve pro gra mmes to optimis e shareho lder va lue thro ugh del iver y of balan ce d, sus tainable r etur ns and a soun d risk p rofile ov er the lon g term . Responsibilit y Our C orp or ate Dev elopm ent and E xp erian Ventures team s, as we ll as our b usine ss unit s, monito r the inve st ment s we make to en sure outco me s are in line w ith ex pe ct atio ns. Changes this year We have fur th er refin ed our p oli cies and stan dards tha t apply minimum re quirem ent s to our ac quisition an d integr ation p roc es se s, includin g enhance ment of dili genc e around data gov ernan ce and fo rmally in cor po ratin g key les so ns lear ne d. A s the impa ct of C OV ID - 1 9 le ss ens , we continu e to analyse op por tunitie s and thr eat s to our busin es s mo del and wo rk to a ddre ss such oppor tunities and threats through acqu isiti ons, inv estmen t s, stra teg ic par tn ership s and new te chnolo gies w her e appropriate. We continue to buil d and re fine our a cquisitio n pipe line b ase d upo n the key s tr ategi c them es we have developed. In addition, we work to identi f y and e xecute o n rele vant minor it y inves tment o ppo r tuni ties . We are close ly enga ged w ith o ur minor it y inve st ment s, oer ing guidan ce and ad vic e and, w here appropriate, providi ng commercial oerings that may be h elpf ul to the se co mpanie s. Risk ma nagement and princi pal risks contin ued Increasing competition Undesirable investment outcomes We oper ate in dy namic mar kets s uch as busine ss and c onsum er cre dit infor matio n, decisi oning s of t ware , fr aud, mar keting , and consumer ser vices . Our competitive landscape is stil l evolv ing, w ith tr adit ional pl ayer s reinventing themselves, emerging players inves ting h eavily and n ew entr ant s making commitm ent s in new te chnolo gies or appro ache s to our mar kets . T here is a r isk thatwe w ill not r esp ond a dequa tely to such disrup tions o r that our pr odu ct s and s er v ice s will fail to m eet chan ging clie nt and con sumer preferences. Risk type Risk movement Strategic Stable Potential impact Pri ce re duc tions may r educ e our margins an d financial result s. In crease d competi tion may redu ce our mar ket share, har m our abil it y to obtain n ew clie nts o r retain e xis ting on es , ae ct o ur abilit y to r ecr uit t alent and influ ence our inve stm ent decisi ons . We might als o be unable to supp or t changes in th e way our busine ss es and cl ient s use an d purchas e information, aecting our operating result s. Th e impac t of this risk , if i t material ises , willt y pical ly be f elt in the lon g term . Exampl es of control mitigation a We co ntinue to re sear ch and inve st in newdat a sour ces , analy tic s, te chnolo gy, capa bilit ies an d talent to d eli ver our strat egic prioriti es. a We co ntinue to dev elop innov ativ e new pro duc ts t hat lever age o ur sc ale and exp er tis e and allow us to d eploy c apabil itie s in new and e xist ing market s and geogra phi es. a We us e ri goro us pro ce ss es to id entif y and sele c t our dev elopm ent inve stm ent s, so w e can e ciently an d ee ct ively int rod uce ne w pro duc ts an d solu tion s to the mar ket. We criti cally ev aluate, and may inv es t in, eq uit y inves tment s an d other gr ow th op por tunitie s, including inte rnal p er fo rmanc e improv ement pro gramm es . T o the e x tent inves ted , any of the se may not p rod uce th e desir ed financial orop era ting r esult s . Risk type Risk movement Strategic Operational Stable Experian plc Strategic r eport 92 Going concern Our go ing con cer n as se ssme nt foc use s on immedia tely availa ble so urce s of liquidi t y tofund o ur anticip ated tr adin g pat ter n, plusanticip ated a cquisiti on spen d, re turn s toshareho lder s and c apita l inves tment , ensur ing we alw ays maintain a c omfor table margin of he adro om in ca se of th e unex pe cte d. We als o per form a r evi ew of indic ator s t ypic al of emer ging goin g con cer n issue s, an d have identified none. Viability Th e Group ha s continu ed to de mons tr ate it sres ilient b usines s mo del an d diver se str ate gy, both of which ar e des cr ibe d earl ier inthe Str ate gic re por t. T hey exe mpli f y our under lyin g pur pos e to crea te a bet ter tomor row, how we cr eate valu e for o ur stake hold ers and c ommuniti es , and how our data and analy tics ar e help ing ad dres s the changing ne ed s of consum ers an d busine ss es . Our s trate gy ha s enable d our busin es s to grow and achie ve cons istently g oo d financial re sults over th e las t de cad e, de spite chan ges in t he econo mic cycle. Our viab ilit y as se ssm ent fo cuse s on th e exp ec ted f ut ure s olvenc y of th e Gro up in the face of more severe, but plaus ible, unexpected event s . We use th e liquidi t y mo dell ing as a bas e, and l ayer on t he e ec ts of d ownsi de scenar ios to a sse ss t he magni tude an d pra ct ical it y of me asure s we co uld take to continu e to tra de in the f ac e of such eve nts . Weare not ex pe c ting th e cur rent e con omic enviro nment , under any p lausib le sce nario, todeve lop into a sc enari o that co uld thre aten our vi ability . We consider cu rrent-year business per forman ce and o ur fut ure pr ospe ct s bycon duct ing a re gular c ycle of s tra tegic planni ng, budgeting a nd forecasting. Thesep rocesses appra ise rev enue, Ben chmark EB IT, cash flows , divi dend c over , commit te d and for ec ast f unding , liquidi t y posi tions an d othe r key financial r atios , includin g thos e rele vant tomaintainin g ourinve stm ent-gr ad e credi t rat ings . Sol ve ncy Th e Gro up had: a un drawn c ommit te d bank b orr owing facil itie s of US$2.6bn at 31 March 2022 a o nly one b or rowin g facil it y co venant, requir ing B enchmar k EBI T to exce ed th ree time s net inter es t exp ense b efo re financing fair valu e rem easur ement s (as at 31 March 2022 our cov er is 1 6 tim es) a B enchmar k op erat ing ca sh inflows of US$ 1.8bn and Benchmar k interes t exp ense of US$0. 1 bn for F Y22. Ass ess men t pe rio d Th ere ar e a wide v ari et y of time h ori zons relev ant to managing o ur busin ess an d som e of the se are highl ighted in t he char t b elow. Incondu ctin g our v iabilit y as se ssm ent, wehave fo cus ed on a t hre e- year t imelin e be caus e we be lieve o ur thre e -ye ar financial plannin g pro ces s pro vid es the s tro nge st b asis for r evie wing t he ou tloo k for o ur busine ss beyond th e current finan cial year . The assessment pr ocess While w e ass es s our p rosp ec t s thr ough out ourpl anning c ycle, we sp eci fic ally rev iew ourthre e -ye ar grow th e xpe c tatio ns and th e ex ternal e nvironm ent as par t of the annual str ategi c plannin g pro ces s. T he B oard par t icipate s in this re view, using th e Januar y Stra teg y mee ting a s a foc al po int. As sessment of viabilit y Th e Group c ontinu es to b e subje ct to i ts prin cipal r isk s, whi ch we subm it to a rob ust pro ces s of continu ous re ass es sment (s ee th e prin cipal r isk s se cti on in the St rate gic r epo r t). T o as se ss th e Gro up’s resilien ce to ad ver se outc ome s, it s fo re cas t per forman ce ove r the three -year period was sensitise d to reflect aser ie s of scen ario s bas ed on th e Gro up’ s prin cipal r isks . T his ass es sment inclu ded reasonable worst-cas e scenarios in which cer t ain of the Gr oup’s principal r isk s manife st to a ‘sever e but p lausib le’ level . T he sc enar ios for whi ch the imp act s we re appl ied , are showno ver leaf. Viability and going concern 1 year 2 year s 3 years 5 years 10 years + T ypical service life of data assets Investment appraisal – acquisitions and or ganic Share incentive plans IT systems development Financial plan including cash flow forecasts Long-term financing – bonds Medium-term financing – revolving credit Management succession planning Detailed budgets Pensions Time horizons affecting prospects 93 Experian plc Annual Report 2022 Strategic repor t Our mo del ling sh ows that : a un der ou r harshe st ‘s ever e but p lausib le’ scenar io (which c ould co st us aro und US$ 1 bn o ver thr ee ye ars), we woul d comfortably main tain sucie nt drawn a nd undraw n bor row ing ca pacit y an d sat isf y allbo rro wing f acilit y c ovenant s . a f ur th er signifi cant h eadr oom co uld b e made availab le by sc aling b ack ca pital inv es tment or operating expenditure, reducing returns to shareho lder s, o r increa sing our t arge t lev erage range . a in al l scenar ios o ur debt c ovenant s woul d beco mfor t ably sa tis fied . Th e res ults of t he sc enari o- tes ting sh ow that , due to our di vers ifie d natur e – which inclu de s signific ant counter-c ycli cal pr otec tion , the resil ienc e of the c ore bu sines s, i ts s ubst antial fre e ca sh flows and i t s str ong inve st ment- grad e cre dit ra ting – we wo uld wit hst and th e considered scenarios were thes e to occur durin g the for ec as t per io d. Th e reve rs e str es s-te st sh owe d that th e level of fall in c ash flows r equir ed dur ing the viabili t y ass es sment p er iod b efo re we wo uld be com e unviable wa s over ei ght time s the fallm od elle d in the m ost s eve re pl ausibl e downturn scenario. Viabilit y statement and ke yassumptions Bas ed on t heir as se ssm ent of pro spe ct s and viabili t y , and th e Boar d’s robus t ass es sment ofthe em erging an d pr incipal r isk s, th e direc tor s confir m that th ey have a rea sonab le exp ec tat ion that t he Gro up will b e able to continu e in oper ati on and me et it s liab ilitie s as they f all due ov er the t hre e- year p er iod en ding 31 March 2025. Look ing f ur th er for ward, th e direc tor s have con sider ed w hethe r they ar e aware of any sp eci fic rel evant fa cto rs b eyon d the three -year horizon that would threaten the long -ter m financial st abilit y of t he Gro up and have confir me d that, ot her than s ome re sidual uncer taint y sur roun ding COV ID - 1 9 , t hey are n ot aware of any. In making this s ta tement , the dir ec tor s have made th e fol lowing ke y ass umptio ns: a t he Gro up continu es to a chieve s tro ng cashflo w conver sion , and mainta ins it s investment-grade cre dit rating such that fun ding in the f or m of capi tal mar ket s debt , commit te d bank b orr owin g facili tie s or alternat ive s is availab le in all pl ausible market con dition s. a e ec ti ve ta x rate s remain br oadly s tab le (bef ore th e impac t of any change s of legislation) over the medium term. a in a ss essin g viabil it y, it is assume d that th e detai led risk -manag ement process as outl ine d on pag e 86 cap ture s all pl ausible risks , and that the mitigating actions are impleme nted on a tim ely basis an d have the intende d impac t. a imp ac ts of f utur e wave s of COV ID - 1 9 – lock- down s and tr ading r es tr ic tions – w ill not b e mor e prolo nge d or signi ficant t han thos e already experienced. Strate gic repo r t This St rate gic rep or t was appr oved b y a duly autho ris ed co mmit tee of th e Boar d of dire cto rs on 1 7 May 2022 and sign ed on i ts b ehalf by : Charles Brown Company S ecr etar y 1 7 May 2022 Viabili t y and going c oncern contin ued The los s or inappropriate use of data or syste ms, le adi n g to serious reputational and brand damage, legal penalties and class-action litigation. Reverse stress-testing. Adverse and unpredictable financial markets or fiscal developments in one or more of our major countries of operation, resulting in significant economic deterioration, currency weakness or restriction. New legislation or changes in regulatory enforcement, changing how we operate our business. a For this, we assessed the maximum credible extent of a data breach and modelled the likely financial impacts through loss of revenue, dispute and regulatory actions, and the costs ofremediation. a We also modelled an extreme and implausible scenario to determine the extent to which cash flows would need to deteriorate before fully utilising the Group’s funding headroom, and after taking into account any mitigating actions as detailed below. a For this, we assessed the possible range ofoutcomes, beyond our base case, duetothe COVID-19 pandemic. a For this, we assessed the maximum credible extent of simultaneous legal actions in two of our core markets and modelled the likely financial impacts afterpotential insurance recoveries. Scenario Impact modelled Experian plc Strategic r eport 94 Gover na nce In this section 96 Ch ai r ’s in t r o du c ti o n 98 Boar d of dire ctor s 10 0 C o r p o r a t e g o v e r n a n c e r e p o r t 1 1 1 Nomination and Corp orate Governance Comm ittee r eport 1 1 7 Audit Committee repor t 1 25 Report on directors ’ remu neration 147 D i r e c t o r s ’ r e p o r t 95 Experian plc Annual Report 2022 Gover nance COVID - 1 9 pandemic While w e are all ho pef ul that th e wor st of th e COV ID - 1 9 pa ndem ic is b ehind us , it di d cont inue to impac t our B oard m ee tings thr ough out th e year , w hich wa s a bus y one , durin g which t he Boar d con sider ed th e pay ment of div ide nds and share r epurcha ses , appr ove d the iss ue ofdebt s ecu rit ies an d a fund ing pl an for th e financial year , an d consi dere d a number of impor tant str ategi c acquisit ions in No r th Americ a and Latin Americ a. Th e Chief E xec utiv e O cer , C ompany S ecr etar y and I re gular ly cons ider ed and dis cuss ed opp or t unitie s for th e Bo ard to m eet in p ers on during t he year , prov ide d that th e safe t y of Boar d memb er s and emplo yee s was ens ured , and in comp liance wi th loc al COV ID - 1 9 regulations. It was pleasing that face -to-face mee tings w ere abl e to take pl ace in D ubl in in July and No vembe r 2021 , and March 2022, inWashington , DC in S epte mber 2021 , and inCos ta M esa , Ca lifo rnia in Januar y 2022. Th eremainin g mee tings w ere he ld using v ide o techno logy an d, as durin g the year e nde d 31March 202 1 , althou gh this did no t material ly impac t the dis cussi ons or c ontrib utio ns and level of chall enge of th e Bo ard, B oard m embe rs were p leas ed to b e able to m eet in p ers on . Th e pand emic has no t impac ted t he commi tment that our dir ec tor s have to the E x per ian Bo ard – all dire cto rs had 100% atten dance at B oar d and commi t tee me etin gs held dur ing th e year , whet her in p ers on or b y vid eo. I wo rke d close ly with t he Chief E xe cut ive O c er and C ompany Se cretar y to plan th e agen da for ea ch Bo ard mee ting , to ensure t he r ight bal ance of s tr ategic plannin g and pe r for mance up date s, cor po rate develo pment and g over nance mat ter s. Board composition and succession Th e Nominati on and C orp or ate Gov ernan ce Commi t tee co ntinues to l ead th e pro ces s for Board appo intments and ensuring that plans are in pl ace f or ord erly B oar d and se nior managem ent suc ces sion . On 1 May 2021 , onthe r eco mmenda tion of th e Commi t tee, Jonathan H owell w as app ointed a s a non - execu tiv e direc tor . We were de lighte d to welco me Jona than to the B oar d, and we p ut in pla ce a tailo red in duct ion pr ogr amme fo r him, which wa s lar gely pr ovi ded v ir tual ly by global executives and was well received by Jonath an. Y o u can r ead l ater ab out th e det ail s of the ses sion s, up dates an d discus sions p rovi ded in the indu cti on. In a dditi on, b oth Al ison Br it t ain and Jonathan con tinued their induction with avisit to t he Nor th Am eri ca Dat aL ab in SanDi ego , Cal ifor nia, in Januar y 2022. We have of ten highlighte d the C ommit te e’ s wor kregar ding key B oard c ompo sitio n and succ es sion mat ter s, inclu ding th e skill s and exp eri ence r equir ed of our n on- e xecu tive direc tor s, a f ocu s on dive rsit y, and the pr efe rre d timing of no n- exe cuti ve re crui tment in cluding , Chair’ s intro duction Acco un tabi lit y to ou r stak eho lders, in cl ud ingo ur c ust omers, s hare holde rs ande mplo yees, fo rens uri ng good corpo rat egov erna nce is a t the he art ofou rbusi ness and Boa rd decis ions. Mike R ogers Chair Chair’ s introduc tion The imp or t ance of go od g overnan ce is neve rgreate r than in time s of uncer taint y. Th eBo ard pl ays a v ital r ole in ens urin g the stab ilit y of t he E xp erian b usine ss , by deli ver ing ee ct ive le ader ship whi ch supp or t s th e deli ver y of str ong and sus tainable finan cial and operational per formance for the Group and long -ter m valu e for our shar ehol ders , while al so c ontr ibutin g to wid er so ciet y. Th eGro up’ s suc ces s de pen ds on ou r continualc ommitm ent to high co rp ora te gover nance s tan dards , as well as a h ealthy and re spo nsible cult ure, b oth in th e Boar dro omand ac ros s the Gro up. Th e Boar d has b een e xt reme ly impre ss ed by the re silie nce and c ommitm ent of our p eop le and the ir sol id de dicat ion to ke eping E x per ian runnin g saf ely and to pr ovidin g the hi ghes t qualit y of s er v ice to our c usto mer s, de spite thechall enge s we fa ced a gain this yea r . A s a Boar d, we ar e commit te d to ensur ing that th e Comp any’s purpo se, valu es and hi gh stan dards are se t fro m the top an d embe dd ed thr ough out the Group. Experian plc Governance 96 in rec ent tim es , potent ial succ es sor s to the Audit an d Remuner ati on Co mmit tee C hair role s. Dur ing the ye ar , the C ommit te e cont inued th is focu s on commit te e chair suc ces sion and , atit sMarch 2022 m eetin g, re comm ende d to theB oar d the app ointm ent of Jonat han Howe ll as suc ces sor to D eir dre Mahlan a s Audit Commi t tee Chair w ith e ec t fr om 1 July 2022, and the ap point ment of Al ison Br it t ain as succ es so r to Ge or ge Rose as Remun era tion Commi t tee Chair w ith e ec t fr om the conc lusion of th e Annual G ener al Me etin g to be held o n 21 July 2022. In additio n, Al ison B rit t ain will re pla ce Ge or ge Rose as E x per ian’ s Seni or Indep end ent Dir ec tor . D eirdr e will r etir e as a non - exec utiv e direc tor , and G eor ge wil l retir e asa non - exe cuti ve dire cto r , De put y Chair an d Senior Independent Director at the conclusion ofthe 2022 A nnual Gen er al Mee ting . In line w ith the recommendations of the UK Corporate Gove rnanc e Co de, A liso n Bri t tain has s er ve d onthe Re muner atio n Co mmit tee f or at lea st 1 2mont hs (as has Jo nathan How ell on t he AuditC ommit t ee), and we kno w that bo th will brin g their imm ens e exp er ience an d de ep commercial , financial and gover nance know led ge (as app rop riate) to th eir new r ole s. Dur ing the y ear , the C ommit te e al so rec ommen ded to t he Bo ard th e appo intment ofCrai g Boun dy as C hief Op er ating O c er and as an exec utiv e dire ctor of E x per ian plc . Cr aig’ s appo intment a s a dire cto r will ta ke pla ce at theco nclusio n of the 2022 A nnual Gen era l Mee ting , when Ke rr y William s will r etire f rom the B oard . Craig's comm ercial and o per ational exp er tis e, as wel l as his commit ment to fos terin g diver sit y, equit y an d inclusion w ithin E xpe rian , will br ing d eep k nowle dg e and fr esh perspect ives t o th e Boa rd. Th er e is m ore d et ail o n Bo ar d co mp osi ti on an d suc ce s sio n be gin nin g on p ag e 1 13 Board evaluation We oper ate a thr ee - year B oard e valuatio n cycl e, and th e las t ex ter nal evaluatio n took pla ce in F Y20 . Th e nex t ex ter nal evalua tion willb e nex t y ear , in F Y23, which is in l ine wi th the recommendations of the UK Corporate Gove rnanc e Co de, and t he Bo ard co ntinue s tobel ieve t hat the se ev aluatio ns are a key element of good governance to ensure th at the Boar d, as wel l as it s commit te es an d Boar d memb ers , are cont inuing to op erate an d per form e e cti vely. This year , we unde r to ok aques tionnair e -ba sed inte rnal ev aluation . Arep or t o n the ev aluation w as pr es ented to the B oard a t it s Januar y 2022 me etin g when the re sult s wer e consi der ed and dis cus se d, and the B oar d refl ec ted on p otential f ocus areas . In ad dition , the B oar d rev iewe d it s per forman ce agains t the ar eas of fo cus it hadagr ee d as par t of the pr evio us year ’s evaluati on. O ve rall , the B oar d con clude d that it was operating eec tively , and identified areas of focu s for th e coming y ear , aro und Bo ard and management succession, and regulation . Y o uwill r ead l ater ab out t he re sult s of the evaluati on and de tail s of the ar eas of fo cus thatwe have a gre ed . Environmental, S ocial and Gover nance We pla ce a st ron g emphas is on our Environm ental, S ocial and G overnanc e (ES G)eor ts , as a cor e par t of o ur busin es s ope rati ons . Doin g the r ight thin g for s ocie t y, our client s , consum ers , colle ague s and communities is something that the Board fullys uppo r t s. D urin g 2021 , a de dica ted E SG Steer ing C ommit te e was p ut in pl ace at E xpe rian , chaired b y the Chi ef Financial O cer , Lloy d Pitchfo rd, w ho is al so t he exec uti ve spon sor of our E S G pro gramm e. Th e Bo ard rec ognis es the si gnific antly incr ease d foc us onES G mat ter s and the ir impor tance , for example hav ing agr ee d for it s elf a spe cifi c F Y22 fo cus ar ea rel ated to E SG. Conclusion I hop e you find t his Cor po rate g over nance repor t helpful in understanding the arr angem ent s and pr oce ss es we have in p lac e at E xp erian , and what w e have done in te rms of the recommendations of the UK Cor porate Gove rnanc e Co de. I b elie ve that th e Bo ard is well pl ac ed to pr ovid e the s tra tegic o versi ght and ste wardship r equir ed to ensur e that E xpe rian co ntinues to d eli ver long -ter m sustainable success. Th e 2022 Annual G ener al Me etin g will b e heldo n 21 July 2022. Furt her d etail s wil l bepub lishe d in the N otic e of Annual G ener al Mee ting , which ha s be en sent o r made availab le to shareho lder s, an d is als o availab leon the C ompany ’s website, w ww.experianplc.com. Statement of compliance Th e Boar d is commi tte d to the hi ghes t stan dards of co rp ora te gover nance an d, for theye ar end ed 31 March 2022, oth er than on e element of Provision 38 in relation to alignment of pen sion co ntrib utio n rate s (as expl aine d below), the C ompany co mplie d with al l the prov ision s of the UK F inancial Rep or t ing Coun cil ’s (FRC’s) UK Cor po rate G ove rnanc e Co de (as pub lishe d in July 201 8), the UK Financial C ond uc t Autho ri t y’s (FCA ’s ) Disclosure Guidanc e and T ranspar ency Rule s sour ceb ook s ec tio ns 7 . 1 and 7 .2 (which s et ou t cer tain mandator y disclosure requir ements), the FC A ’s Lis ting Rul es 9 . 8.6R , 9 .8 .7R and 9 .8 .7 A R which in clude th e ‘comply o r exp lain’ requir ement an d, on a vo luntar y b asis, th e UKDep ar tm ent for B usine ss , Ener gy and Indus trial Str ate gy (BE IS) Dire ctor s’ Remun era tio n Rep or t ing Re gula tio ns and Narrative Repor ting Regulations . Thes e docum ent s are pub licly avail able a s follow s: a T he U K Cor po rate G ove rnanc e Co de c an be found a t w w w.frc.o rg.uk a T he FC A ’s Disclosure Guidan ce and T ran sparen cy Rule s sour ceb ook as w ell asLis ting Rul es c an be fo und at w w w.handboo k.f ca.o rg.uk a T he B EIS Dir ec to rs’ Remun era tion Re po r tin g Regulations and Narrative Repor ting Regul ation s can b e foun d at w w w.gov.uk. In addi tion , the FR C Guidanc e on Risk Managem ent, Inte rnal C ontro l and Rel ated Financial an d Busin ess Re por ting ca n be fo und a t www .f rc .o rg .u k. Provision 38 – t he Co mpany is la rgely compl iant with this p rov ision of the U K Cor po rate G over nance C od e. Th e area of par tial c omplianc e rel ates to ali gnment of pen sion co ntrib utio n rate s of the e xecut ive direc tor s wi th the w ider w ork fo rce . Th e rate for our US - bas ed exe cut ive dir ec tor is alr ead y aligne d wi th the w ider US w ork for ce, an d the rate s for o ur t wo UK-ba se d exec utiv e dire cto rs are alr ead y aligne d wit h thos e availab le to other s enio r UK emplo yee s. T he r ates f or any new UK-b ase d dire cto r would imm ediat ely be aligne d wi th the w ider wo rk for ce, an d the rate s for o ur t wo exis ting U K-bas ed exe cuti ve direc tor s wil l be ali gned w ith th e wid er UK wor kfo rce b y the en d of 2022, foll owin g the requir ed amen dment s to contr ac tual arran gements . Experian corpor ate w ebsite Th e E xpe rian web site w w w.exp er ianplc .com contain s addi tional info rmat ion abo ut our corpo rate gov erna nce : a T er ms of ref eren ce of th e prin cipal Boar dcommi tte es a T he s che dule of mat ter s res er v ed totheB oar d a T he C hair and the C EO’s split of dutie s, andthe du ties of t he Seni or Indep end ent Director a T he C ompany ’s memoran dum and ar ti cles of association a D eta ils of A GM prox y vo ting by shar ehol der s, includin g votes w ithh eld. 97 Experian plc Annual Report 2022 Gover nance Board of di rectors Mi ke Ro ge rs (57) Chair Appointed to the Board on 1 July 2017, and as Chair (and Chair of the Nomination and Corporate Governance Committee) on 24 July 2019. Other current roles: Mike chair s the Nomination and Corporate Governance Committee. He is anon-executive director of NatW est Group plc (hechairs its Group Sustainable Banking Committee, and sits on the Gr oup Performance and Remuner ation Committee) and is the non-executive Chair of Aegon UK. Skills and contribution: Mike brings over 30years of banking and financial services experience, with a r eputation for strategic insight and focused execution. His curr ent andprevious boar d-level experience, both executive and non-executive, is of huge v alue tothe Experian Board. Experience: Mike was Group Chief Executive Ocer of L V= Group fr om 2006 until 2016, during which time he grew the or ganisation intoa significant player in the life and gener al insurance mark et. Befor e that, Mike was with Barclays plc for mor e than 20 years, holding anumber of senior roles, most recently asManaging Director , UK Retail Banking. Hewas previously a non-executive dir ector ofthe Association of British Insurers. Ca rol ine D onah ue (6 1 ) Non-executive director Appointed to the Board on 1 January 2017. Other current roles: Car oline is on the Board of GoDaddy Inc., Ver sa Pay Corp., Emerge America, and the Computer History Museum. She is also a mentor for She-Can. Skills and contribution: Caroline brings extensive experience of international markets and technology as well as knowledge of consumer sales and marketing, innovation and consumer-centricity . The Board also benefits from her insight and extensive experience in mass-market, digital, multi-channel and Business-to-Consumer (B2C) distribution, marketing, and brand and sales management. Experience: Caroline pr eviously held roles at Intuit where she was Executive Vice President, Chief Marketing and Sales Ocer; Senior Vice President, Sales and Channel Marketing; and Vice President and Dir ector of Sales. She also held sales and channel management roles at Knowledge Adventure, NeXT Computer and Apple, Inc. Caroline was previously on the Executive Committee of Northwestern C100. Br ian C ass in (54) Chief Executive Ocer Appointed to the Board as Chief Financial Ocer on 30 April 2012, and as Chief Executive Ocer on 16 July 2014. Other current roles: Brian is a non-executive director of J Sainsbury plc and sits on its Audit and Nomination Committees. Skills and contribution: Brian brings strong leadership, a clear view of strategic objectives and decisive management skills to this role. Hehas strong financial and commer cial acumen and a broad r ange of operational competencies. His non-executive r ole augments his strong boar d-level experience. Experience: Brian was previously the Chief Financial Ocer of Experian and, befor e that, Managing Director at Gr eenhill & Co. He has also held various senior roles at Baring Brothers International and the London StockExchange. Luiz F leu r y (65) Non-executive director Appointed to the Board on 8 September 2015. Other current roles: Luiz is a Boar d member ofCarrefour Br azil (the trading name of Atacadão S.A.) and DOTZ S.A. Skills and contribution: Luiz has spent most ofhis car eer in financial services and has extensive insight and deep local knowledge of the Brazilian financial mark et. His consider able boardr oom experience adds to the strength, depth and eectiveness of our Board. Experience: Luiz has held Chief Executive roles at Cetip S.A., Banco Ibi and Redec ard, together with senior finance and investment positions at Banco Citibank S.A., Banco Marka S.A. and C&A Brenninkmeyer Br asil. Luiz was President and a member of the Executive Board at Cetip S.A., and a Board member of Grupo Sequóia de Logístic a, Eneva S.A., Discount Malls do Br asil, Banco Ibi, FHV Holdings Ltda and Magnopus, Inc. Lloyd P itchfo rd (50) Chief Financial Ocer Appointed to the Board on 1 October 2014. Other current roles: Lloyd is a non-executive director (and chairs the Audit Committee) ofBunzl plc. Skills and contribution: Lloyd is a qualified accountant. He holds an MBA and has deep financial and strategic experience, built upthrough a c areer working in complex, growth-oriented, global organisations, across arange of industries and r esponsibilities. Hebrings additional perspectives to Experian from his non-executive r ole with Bunzl plc. Experience: Before joining Experian, Lloyd held a wide portfolio of finance and operational responsibilities: as Chief Financial Ocer of Intertek Group plc; in senior finance positions (including Group Financial Contr oller) at BG Group plc; and in financial and commer cial rolesat Mobil Oil. Jonathan Howe ll (59 ) Non-executive director Appointed to the Board on 1 May 2021. Other current r oles: Jonathan is the Chief Financial Ocer of The Sage Group plc. Skills and contribution: Jonathan has a wealth of financial, str ategic, technology and regulatory expertise, encompassing both Business-to- Business (B2B) and B2C, which is of huge benefit to Experian. He is a highly r egarded FTSE 100 Chief Financial Ocer , and also brings considerable executive and non- executive UK -listed boardr oom experience. Experience: Jonathan was previously an independent non-executive director and Chair ofthe Audit and Risk Committee of The Sage Group plc., for five years while serving as Gr oup Finance Director of Close Br others Group plc for10 years until November 2018. Before that he was Group Finance Dir ector at the London Stock Exchange Group plc for nine year s andhas also been a non-executive director ofEMAP plc and Chair of FTSE International. The early part of Jonathan's car eer was at PriceW aterhouse where he qualified as achartered accountant. Nm Re Au Nm Re Au Nm Re Au Nm Re Experian plc Governance 98 Code principle Board Leadership Deirdre Mahlan (59 ) Non-executive director Appointed to the Board on 1 September 2012, and as Chair of the Audit Committee on 21January 2015. Other current roles: Deir dre chairs our Audit Committee. She is a non-executive dir ector of Kimberly-Clark Corpor ation and The Duckhorn Portfolio, Inc. (where she also chairs the Audit Committee). Skills and contribution: Deirdr e is a qualified accountant with an MBA and has many years’ experience in senior finance and general management roles. Her financial expertise and experience ensure eective leadership of our Audit Committee. Deir dre also brings us the benefits of her previous boar d-level experience with Diageo plc. Experience: Deirdr e has held senior finance and general management r oles, including most recently as Pr esident of Diageo North America, as well as Chief Financial Ocer , Deputy Chief Financial Ocer , Head of T ax and T reasury at Diageo plc, Senior Vice President, Chief Financial Ocer at Diageo North America, and Vice President of Finance at Diageo Guinness USA, as well as v arious senior finance roles in Joseph Seagram and Sons, Inc. and PwC. Kerr y Williams (60) President Appointed to the Board on 16 July 2014. Other current roles: Kerry is a Boar d member of Pacific Mutual Holding Company , and the USInstitute for Intergovernmental Resear ch. Skills and contribution: Kerry holds an MBAand has built up a significant and deep knowledge of Experian’s global business and operations, through the leadership roles he hasheld. He brings to Experian and the Boar d awide range of skills fr om his background inthe financial services industry and his non-executive roles. Experience: Kerry’s roles at Experian have included Chief Operating Ocer , Group Deputy Chief Operating Ocer , President of Cr edit Services, Pr esident of Experian Latin America, and Group Pr esident of Credit Services and Decision Analytics, Experian North Americ a. Previously , he was President at ERisk Holdings Incorporated, Senior Vice President/Gener al Manager at Bank of America and held senior management positions at W ells F argo Bank. George Ro se (7 0) Deputy Chair and Senior Independent Director Appointed to the Board on 1 September 2012, asDeputy Chair and Senior Independent Director on 16 July 2014 and as Chair of the Remuner ation Committee on 24 July 2019. Other current roles: Geor ge chairs our Remuner ation Committee. Skills and contribution: George is a qualified accountant, whose c areer has included sever al high-level finance positions. As well as this financial expertise, he adds to the collective strength of the Boar d thanks to the numerous non-executive positions he has held with leading companies. Experience: George was Gr oup Finance Director and Dir ector of Finance and T reasury at BAE Systems plc (wher e he was a Board member), and held senior finance positions at Leyland DAF plc and Rover Gr oup. He has been a non-executive director of National Grid plc, SAAB AB, Or ange plc and EXPO 2020 LLC, and also (where he chair ed the Audit Committee) Laing O’Rourke plc and Genel Ener gy plc. George has also been a member of the UK Industrial Development Advisory Board. Dr Ru ba B or no (4 1 ) Non-executive director Appointed to the Board on 1 April 2018. Other current roles: Ruba is Vice President, Worldwide Channels and Alliances at Amazon Web Services (A WS). Skills and contribution: Ruba holds a Ph.D., a Master of Science in Electrical Engineering, and a Bachelor of Science in Computer Engineering. She was an Intel Ph.D. fellow at the National Science F oundation’s Engineering Research Center for Wir eless Integrated Micr oSystems. She brings advanced technologies expertise to Experian. We benefit gr eatly from her focus on supporting businesses in strategic ally adapting to the threats and opportunities cr eated by technology , as well as pushing disruptive technology to create new opportunities. Experience: Prior to her current r ole, Ruba wasa Senior Vice Pr esident and General Manager atCisco. She sat on the Boar d of TheT ech Museum of Innovation in Silicon V alley . She was previously at The Boston Consulting Group (BCG), where she specialised in helping enterprises through complex technology transformations, and was also a leader in BCG’s T echnology , Media & T elecommunications, and People & Organization pr actice groups. Alison Brittain (5 7) Non-executive director Appointed to the Board on 1 September 2020. Other current roles: Alison is the Chief Executive of Whitbr ead PL C, a non-executive director of British Airways plc, and Deputy Chair and a T rustee of the Prince's T rust. Skills and contribution: Alison is a highly versatile business leader and gener al manager , who holds an MBA and brings considerable experience of operating in consumer -facing service environments. She has over 25 years’ senior management experience in major financial institutions, and the Boar d also benefits from her boar d-level experience with Whitbread PL C and, previously , Marks & Spencer Group PL C. Experience: Alison was previously with Lloyds Banking Group (Gr oup Director , Retail Division) and Santander UK PL C (Executive Director , Retail Distribution), where she was also a board director . She previously held senior r oles at Barclays Bank, has been a member of the UK Prime Minister's Advisory Council, was named 'Business W oman of the Y ear 2017' in the V euve Clicquot awards and was awar ded a CBE in the 2019 UK New Y ear Honours list. Alison has been a non-executive director of Mark s & Spencer Group PL C. Au Nm Re Au Nm Re Nm Re Au Au Nm Re Company Secretar y: Char les B rown FC G Independent Auditor: KPM G LL P , Char tered Acco untant s and Reco gnized Au ditor Au Memb er of the Audi t Commi t tee Nm Member of the Nomination and Cor po rateG over nance C ommit te e Re Member of the Remuneration Committe e Commi tte e Chair 99 Experian plc Annual Report 2022 Gover nance Code principle Board Leadership Corpora te go vern anc e report Board Role of th e dir ec tors Th e Boar d is re spon sible fo r set tin g the Comp any’s purpo se, va lues and s tr ateg y , and ensur ing that th e ne ces sar y res ource s are availab le for lon g-t erm su stainab le succ es s, to gene rate v alue for shar ehol der s and cont ribu te to wide r so ciet y. The B oard s et s the Gr oup's str ateg y, and in Januar y 2022 rev iewe d the prop os ed s trate gic pl an pre sente d by se nior managem ent. T he p lan had b ee n develo pe d to deliver s tron g financial per formance an d continu e the fo cus on dr iv ing financial ac ce ss and inclusi on for mill ions of p eople globally . Th e plan o utlin ed th e high ambit ion fo r the Group, an d fundam ental co mpon ents of t he str ateg y aroun d continuin g to enhance t he brea dth , depth an d qualit y of E x per ian’ s datas et s, d evelo pment of s uper ior da ta, analy tics an d decisionin g capabilit ies, b uilding direct relationships with consumers and achieving operational excellence. Th e Boar d al so b elie ves tha t a str ong E SG commit ment align ed w ith our p urp ose is ex trem ely impo r tant an d als o prov ide s a competitive advantage. Many enhancements toour E SG pro gramm e, co mmunicat ions and disclosur es we re mad e over the p as t tw o year s and we pl an to fur ther a dvan ce our pro gramm e with c ommitm ents t hat play to E xpe rian’ s str engt hs and co nsumer mis sion , develo ping ad ditio nal metr ic s and me ss aging to fur ther unite o ur ES G ac ti viti es a cros s the Group an d as sure our r ec ognit ion fo r the centra l par t we pl ay in financial inclusion. This y ear , it w as plea sing tha t the s tra tegy pre sent atio ns coul d take p lac e fac e -to -fa ce with s enior l eade rs fr om acr oss t he E xp er ian busine ss . Th e pre sent ation s and disc ussio ns were held over two days at our operational head quar ter s in Cos ta M es a, C alifo rnia an d allowe d the B oard to r evie w, debate and crit ically a ss ess t he pr opos ed s tr ateg y with management before considering it for approv al. B oar d membe rs wer e prov ide d withp re -r eadin g material an d focu sed presentations. This year’s presentations included various regi onal and bu sines s st rate gic upda tes . Th eBoa rd disc uss ed th e continu ed incr eas e instr ate gic opt ions f or th e Group, w ith regi onalup dates tha t cover ed th e ong oing amalgamation of t he EME A an d A sia Pacifi c regi ons and t he de sire d fu ture s tate , how we exp ec t to seize f ut ure op por tunitie s in cer tain rapi dly- changin g market s and ho w the busine ss tr ans for mation in th e UK and Ire land regi on was p ro gres sing . Th ebusin es s str ategi c update s includ ed th e opp or tuni t y and growth p otential i n the Consumer Ser vice s area , and the o ppo r tuni ties to c ontinue to gr ow the Au tomoti ve busin es s and f ur the r dri ve innovation in the Consumer Information Services bus iness. Th e Boar d monito rs s trate gy an d major initiatives throughout the year (as indicated onthe St rate gic and b udg et plannin g pro ce ss char t, b elow). Th e budg et disc ussio ns in March ar e focu se d on ensur ing t hat we have th e right r es ourc es to deli ver th e agr ee d str ateg y. Thes e discus sion s include d etaile d fo cus on b oth regi onal and glob al busine ss b udge ts . Th e Boar d continual ly monito rs manag ement an d financial per f ormanc e against the Gr oup’ s obje ct ive s. T o enable it to d o this the B oar d rec eive s upda tes , at ever y sche duled B oar d meeting, on oper ational and financi al matter s as well a s any major initia tive s unde r way. Th eBoa rd al so r ece ive s rele vant ‘b et we en mee ting’ update s, to al low for app rop riate over sight and mo nitor ing. Fo r example , aswel las the us ual Bo ard Finan ce Rep or t , theChi ef E xecu tive O c er pr ovid ed ad ditio nal update s to the B oard o n late st financial per forman ce, fo rec as ts an d tren ds. T he B oard als o con duc ts p os t-inves tme nt rev iews on an agre ed tim elin e, for any a cquisiti ons it has previously approved. * Including two days of strategy presentations. March Board budget review July to August Strategic planning March to May Preliminary steps January Board str ategy review * June Group Operating Committee review meeting October to November Financial planning and prioritisation July Board strategy mid-year review September Internal review Strategic an d budg et planning p rocess Experian plc Governance 100 Code principle Board Leadership and Company Purpose Y o u can r ead ab out t he Bo ard ’s proce dure s tomanage r isk , over se e the inter nal cont rol fr amewor k , and dete rmine t he natur e and ex tent of the p rincip al risk s th e Comp any iswillin g to take to a chieve i ts s tr ategi c obje cti ves , und er Risk managem ent and internal c ontro l sy stem s rev iew on pa ge 1 23. Th e Boar d dele gate s managem ent of the Group’ s day-t o- day activities but is accountable to sharehold ers fo r deliver ing financial per formanc e and long -ter m shareh older value. T o achie ve this , the B oard ha s put inpla ce a fr amew ork of c ontro l s, inclu ding clear and r obus t pro ce dures an d dele gated auth ori tie s, whi ch enable s the G roup to appr aise and mana ge risk e ec ti vely. This fr amewor k is illus tra ted in th e Gove rnanc e fr amewo rk dia gram on p age 105. In addi tion , the B oard has r es er v ed de cisions abou t cer tain key ac tiv itie s to it se lf, including: A. Strategy and management – appr oval and oversight of Experian’s long-term objectives and commercial (and Envir onmental, Social and Governance) strategy , approval of annual operating and c apital expenditure budgets, and oversight and monitoring of oper ations. B. Structure and capital/Financial reporting and controls – changes in the Group c apital or corporate structur e. Appr oval of the Group’s r esults, dividends, dividend policy , significant changes in accounting policy , tax policy and treasury policy . C. Contracts – approval of major or str ategic capital pr ojects, and of major acquisitions, disposals and investments. D. Communication – approval of ke y stakeholder documents, circulars, prospectuses, and reviewing investor sentiment. E. Board membership/Delegation of authority/ Corporate governance/P olicies – approval of changes to Board composition, ensuring adequate succession planning, r eviewing reports fr om Board committees, reviewing governance arrangements, and approval of various policies. Det ail s of the ac ti viti es of th e Boar d durin g the year und er the se h eadin gs are on p age 1 02. A high- lev el st atemen t of the t y pe s of decisi ons that have b een de legate d by th e Boar d is shown in t he Go vernan ce fr amew ork dia gram on page 1 05. Board meetings Th e Boar d me et s su ciently f re quently to discharg e it s dutie s, an d holds a dditi onal meetings whe n required. Each schedu led mee ting is no rmal ly held ov er t wo or thr ee days, w ith B oard c ommit tee m eet ings al so taking place during th is time. Six Board mee tings we re hel d durin g the ye ar . De spite the co ntinued chal leng es pr ese nted by COVID - 1 9 , the Board oper ated eec tively during t he year an d continu ed to us e vid eo techno logy w hen in -p ers on me eting s were no t per mit te d due to COV ID - 1 9 trav el re str ic tions . One B oar d mee ting wa s held dur ing th e year with al l Boar d memb er s pre sent in p ers on, and a numbe r of Boar d memb ers al so at tend ed oth er Bo ard me etin gs in per so n during t he year w hich, c ombine d wi th the v ide o mee tings , allowe d the B oar d to retain i t s cohe sive c ulture. T he imp or t ance of r emaining closely c onne cte d with t he busin es s and wit h fello w Boar d memb ers w as a fo cus area f or the ye ar , and th es e in- per son m ee tings allowe d the B oard to e nsure tha t the s tron g culture of t he B oard wa s not unduly imp ac ted by COV ID - 1 9 , an d that it c ontinue d to op erate asa high -p er fo rmin g coll egiate team . Board Nomination and Corporate Governance Committee Remuneration Committee Audit Committee Mike Rogers 6/6 – 100% 6/6 – 100% 5/5 – 100% n/a Brian Cassin 6/6 – 100% n/a n/a n/a Lloyd Pitchford 6/6 – 100% n/a n/a n/a Kerry Williams 6/6 – 100% n/a n/a n/a Dr Ruba Borno 6/6 – 100% 6/6 – 100% 5/5 – 100% 4/4 – 100% Alison Brittain 6/6 – 100% 6/6 – 100% 5/5 – 100% 4/4 – 100% Caroline Donahue 6/6 – 100% 6/6 – 100% 5/5 – 100% 4/4 – 100% Luiz Fleury 6/6 – 100% 6/6 – 100% 5/5 – 100% 4/4 – 100% Jonathan Howell 6/6 – 100% 6/6 – 100% 5/5 – 100% 4/4 – 100% Deirdre Mahlan 6/6 – 100% 6/6 – 100% 5/5 – 100% 4/4 – 100% George Rose 6/6 – 100% 6/6 – 100% 5/5 – 100% 4/4 – 100% May Board and committe e meetings July Board and committe e meetings September Board and commi tte e meetings, an d briefings and presentations on US legislation and regulation November Board and committe e meetings January Board and committee meetings, i n cluding two d ays of stra tegy presentations from global and regional management March Board and committe e meetings, and Experian IT Services (EITS ) and ESG stra tegy up dates Attendanc e at Board and principal committee meetings 101 Experian plc Annual Report 2022 Gover nance Code principle Board Leadership and Company Purpose Corpora te go vern anc e report contin ued A . Strategy an d management a Evaluate d and deb ated p res enta tions f rom managem ent durin g the t wo - day s trate gy presentations, approved the Group’ s str ateg y, and also app rove d the Gr oup's ESG st rate gy . a Re cei ve d and co nsid ere d key init iativ es and st rate gy up dates a s par t of th e ongo ing st rate gic pl anning cy cle. a Rev iewed oper ational and financial update s fr om the C hief E xe cuti ve O ce r , the Chi ef Op era ting O c er and th e Chie f Financial O c er at ea ch sche duled B oar d mee ting – th es e includ ed up dates on E S G mat ters , major ini tiativ es to glob ally sc ale and innov ate, and cr eate comp etiti ve advantage th rough technol ogy modernisation . a Re view ed mo nthly rep or ts , includin g detail s of p er f orman ce agains t bu dget andthe Gr oup’s financial positio n and stak eholde r u pdat es. a Re view ed and dis cus sed r egul ator y and compl iance mat ter s wit h the Gro up Gen eral C ouns el at B oard an d Audit Commi t tee me etings , inclu ding upda tes onong oing en gage ment , cur rent is sue s, potent ial impac ts an d plan s. a Re view ed and ap prov ed r isk appe tite statements for the Group. B. Struc ture and cap ital/Financial repor ting and control s a App rove d th e Group’s Annual Rep or t an d full-year an d half-year financial result s and carefully considered d ividend payments and a share p urchas e prop osal . a A pproved the amendment of existing bor row ing fa ciliti es , the annual up date tothe Gr oup’s Euro Medium T e rm N ote pro gramme , and the is sue of b onds throu gh a new ly- incor po rate d Irish subsidiar y . a D iscu sse d and ap prove d the G roup’s bud get pr es entat ion for F Y23 and re cei ved update s on Gro up insur anc e and pe nsion arran gements . a C onsi dere d and app rove d the V iabilit y sta tement f or inclusi on in the A nnual Rep or t . a Reviewe d risk repor t s, the appropriateness of prep arin g the financial s tatem ent s on the go ing con cer n basis an d the Au dit Commi t tee’s advic e on making a ‘ f air , balan ce d and unde rs tandabl e’ (FBU) statement in the Annual Repor t. C. Con tracts a Re viewed and appro ved st rategi c acquisit ions , includin g: – Pa gueVeloz, a key play er in the paym ent s se gment in B razil . – Gabi Personal Insurance Agency , adigit al insur ance a genc y that f ocu se s on sel ling a uto and ho me insur anc e polic ies. – CI C Plus , a US- bas ed p rovi der of human resource compli ance man agement solu tion s. – MOVA – acquisiti on of a major it y s take in this lea ding Fin T e ch in Br azil , that he lps equip co mpanie s with th e exp er tis e and techno logy to p er f orm da ta- dr iv en credi t ass es sment s of their en d- clie nts . a Re view ed an d discus se d the c or por ate develo pment p ipelin e at each B oard mee ting , including an up date at t he July Boar d me eting o n our mino rit y inv es tment programme, which provides unique i nsight and kn owle dge into em ergin g tren ds in technolo gy an d busine ss mo del s. a C ond ucte d for mal p ost-inv es tment reviews on acquisitions that were comple ted in 201 9 , in cluding C ompus can , Auto ID and S entinel . D. Communication a Revie wed inv es tor rel ati ons , ex ternal communic atio ns and me dia upda tes ateach s che duled B oar d me eting . a Re view ed and dis cus se d draf t full- year and half-year financial re sults presentations for analysts and institutional shareholde rs. a T he C hair met wi th a number of o ur major shareho lder s during t he year , and the Remuner ati on Co mmit tee C hair met w ith the E x per ian Pe ople Fo rum in th e UK in March 2022. E. Board memb ership/Delegation of authorit y /Corp orate governance/ Policies a Consider ed the annual enviro nmental , and health an d safe t y , update s and app rove d asso ciated policy st atements . a Re view ed B oard e valuatio n findings an d agreed areas of focus, autho rised Boa rd memb ers’ potent ial confli ct s of intere st and appr oved t he annual re - ele cti on of Board members. a C onsi dere d and appr ove d the Not ice of Annual G ener al Me etin g (AG M) for is sue toshareho lder s, and t he arr ang ement s forth e 2021 AGM (which sharehol der s were able to view electronically , duetoCOV ID - 1 9). a Re view ed and dis cus sed t he annual corporate responsibility update from the Global Head of Corporate Responsibility . a Re cei ved d etail s of B oard m embe rs’ exter nal app ointment s and share deal ings. a Re view ed an d appro ved t he Gro up’s tax and tre asur y p oli cies , and appr ove d the Group’s Cod e of Co nduc t. What did the B oard do this year A. Strategy and management B. Structure and capital/Financial reporting and controls C. Contracts D. Communication E. Board membership/Delegation of authority/Corporate governance/Policies F. Other A B C D E F Th e Boa rd 's key ac tiv iti es dur in g the ye ar we re: Experian plc Governance 102 Code principle Board Leadership and Company Purpose Cult ure Th e impor tance of th e role of th e Bo ard regar ding cult ure is emp hasis ed in th e UK Cor po rate G over nanc e Co de, wi th spe cifi c recommendations that the Board asses ses and moni tors c ulture , and ensur es that wor kfo rce p olici es , pra cti ces an d behav iour s are align ed w ith the C ompany ’s purpos e, value s and st rate gy. We actio n this thro ugh aglobally c onsis tent set of e xp ec tatio ns wit hin the bu sines s acr oss fi ve st rate gica lly impor tant areas ; 'T he E x per ian Way' (see t able below) w hich is unde rpinn ed by t he fol lowin g behav iour s – Integr it y, F air nes s, D ata S ecur it y and Value. T hes e behav iour s hel p us to create a vibr ant ethic al per for mance cult ure. We are confident that the information the Board and its commit tees review, the activities that Boar dmem ber s engag e in, and E x per ian’ s existi ng structures a nd proc esses, mean thatE xp er ian and the B oar d are me etin g ther eco mmen dation s of the C od e. Th eE xp erian Way cult ure is emb ed de d throughout ou r organ isation. At the May 2021 Boar d me eting , as par t of his regul ar Pe ople up date, t he Chi ef E xecu tive Ocer confir med that the Group ’ s leadership team had r ece ive d a deta iled up date on th e ‘Futur e of Work ’. It was re cognis ed tha t COV ID - 1 9 had de live red an o ppo r tuni t y toadop t new way s of wor king , and an opp or t unit y to reima gine wh ere , when an d how wor k get s do ne. T he Gr oup commi t ted toa new, hybr id appr oach to w ork , an d we adjus ted ou r pra cti ces to d eli ver po siti ve shif t s in employee engagement, employer brand and real es tate exp ense . Global prin ciples an d fr amewor k s were cr eated to s uppo r t consis tenc y and a On e E xpe rian appr oach . Roll- out w as tailor ed to ea ch loc ation to resp ec t le gal, cult ural an d oper ati onal real itie s, as well a s the app rop riate t iming in rel atio n to COV ID - 1 9 . E xp er ian’ s oce s are s er v ing a ne w purp os e, for c ollab or ativ e wor k and so cial conne ct ions , and the y are al so s er v ing to reinfo rce o ur culture an d br and. Dur ing the y ear , th e Boar d appr oved an update d Gro up Co de of Co nduc t . The chan ge s follo wed an a sse ssm ent ba se d on emer ging ESG expe ctations and employee accountability for managin g ope rat ional r isk. T he Gr oup’s Co de of Co nduc t ex plain s our appr oach to profe ssional and ethic al stan dards and ensures that Exp erian’ s employe es know exac tly w hat ’s expe cte d fr om the m in help ingE xp er ian liv e up to thos e st andard s. Allemp loyee s must un der t ake annual trainin g. In May 2021 , our co llea gues in In dia were hitpar ticular ly hard w ith a se con d wave of COV ID - 1 9 . In l ine wi th our emb e dde d cultur e, Ex perian implemented suppor t for employees with C OV ID - 1 9 home c are , ex tend ed insu ranc e coverage to direct contractors, and employee supp or t gro ups. A finan cial hardship f und wass et up and our e mploy ee s in India wer e able to b enefi t in term s of medi cal ex pen se s, tempor ar y h ousing an d othe r urgent n ee ds they r equire d durin g this time . E xpe rian matche d employe e donat ions and al s o made acor por ate do natio n. T he comb ined f unds were d onated to e mploye e rel ief and to selec ted non- government organisations inIndia, e nablin g us to wor k wit h them to helpp e ople m ost a e cte d by CO VID - 1 9 . One of th e pr imar y way s the B oard c an exp eri ence , ass es s and ev aluate cultur e is through meeting with colleagues throug hout the bu sines s. T his year , we wer e able to achiev e this wit hin the co nfine s of COV ID - 1 9 , with t he Bo ard me etin g with s enior r egio nal lead ers an d employ ee s in Washington , DC an d Cos ta M es a, C alif ornia . In ad ditio n, Al ison Bri t tain and J onathan Ho well tr avell ed to San Die go imme diately af te r the Januar y 2022 Boar d me eting an d were p rov ide d with a to ur and demonstrations of the Exp erian DataLab. At Experian, whether yourrole brings y ou into contact with customers directly or not, all of us contribute to meeting customer needs. At the heart of what we do are the relationships we invest in and nurture. At Experian, it’s the responsibility of each one of us to find opportunities and improve the way we do things to help our business and our customers grow . One Experian mindset – we work as one unitedteam and use thecombined strengths and capabilities of our people, pr oducts and services across teams, functions and regions. This translates into seamless experiences forour customers. At Experian, each of us acts as a guardian for theprotection of data, information, assets and our people to safeguard our future. We mak e Experian agreat place to work. Wetr eat each other withrespect, trust andintegrity . The Experian W ay is a unique and consistent way of working globally . It informs how our people act and behave, which shapes our culture. Itisdefined across five key ar eas of strategic importance: The E xp erian Way Delight customers Innovate to grow Collabor ate to win Safeguard our future Val ue each other 103 Experian plc Annual Report 2022 Gover nance Code principle Board Leadership and Company Purpose Corpora te go vern anc e report contin ued Th ey al so me t and had lun ch with e mploye es . Ge org e Rose, o ur Remune rat ion C ommit te e Chair , me t in per so n wit h the E xp er ian Peo ple For um in Not tingham , UK in Marc h 2022. E xpe rian marke d a number of glo bal and regional awar enes s appro aches . For example, World M ental He alth Month is r ec ognise d through personal statem ents created and shared b y many employe es an d Boar d member s. In addition, International Day ofPeo ple wi th Dis abil itie s was c elebr ate d on3De cemb er 2021 and the w eek of Interna tional Wom en’ s Day was c elebr ate d globally in Mar ch 2022. Th es e appro ache s help to ensur e all employ ee s fee l include d and integr ated into E xp erian’s culture and hei ghten awaren es s that not all p eo ple are t he sam e. Th e Boar d re cognis ed tha t many of our employ ee s have be en dealin g wit h per sonal aswell a s profe ssi onal challen ges fo r over a year , and that throughout this period they had demonstrate d their resilience and dedication in continuin g to deli ver ev er y thing that wa s asked of them . It w as agr ee d by th e Remune rat ion Commi t tee that a ' T hank Y ou' share award b e grante d to all emplo yee s at cer tain gra des , excluding s enior le ader s and manag ement . While th e impac t of wor kin g durin g a global pand emic wa s obvi ously no t res tr ic ted to lower-level employees, this employe e pop ulat ion wa s cons ider ed to b e the m os t appro pr iate pop ulat ion to re cei ve the ' T hank Y o u' award in the f or m of US$80 0’s wor th of E xpe rian share s to each e ligible e mploye e, wher e it wa s legally p os sible an d pra ct ical to do so (w here n ot p ossib le, c ash was d eli ver ed). Th e Boar d and lea der ship team con sider ed this to be a s uitab le way to ex pre ss th e Gro up’ s appr eciat ion to ea ch emplo yee f or the ir wor k, commit ment and r esili ence dur ing a ver y dicult time. Each y ear at it s S eptemb er and Mar ch mee tings , the Au dit C ommit te e rev iews c all s made to th e Co nfident ial Help line . All c all s areinve sti gated by G lobal Inter nal Audi t, incon junction with HR or Compli ance, asappr opr iate. E xamin ed ove r a five - year per io d, the to tal numbe r of call s has decrease d, largely at tribute d to better internal mechanism s for handl ing st a conc erns an d quer ies . A s the b usine ss mo ves to a hy br id mod el of wor king , communic atio ns have be en rev iewe d and re fre she d to ensur e su cient awaren es s of the C onfident ial Help line . This includes notifications in d ierent languages, inclusion in e mail newsle t ters , compu ter lock screens , and email and intranet reminders. Who What The Board a T he C hief E xe cut ive O cer ’s repo r t, c ircul ate d bef ore e ver y sche dule d Bo ard m ee ting , cont ains a de taile d Pe opl e update , whic h includ es cu lture , and an e xpan de d Envir onm ental , S ocial a nd Go ver nanc e (ES G) update . a T he B oa rd re gul ar ly con side rs th e re sult s of em ploy ee s entim ent sur veys . a B oa rd me et ings in F Y 22 in Washing ton , DC an d Co st a Me sa , Cal ifo rnia e nabl ed th e Bo ard to e ngag e wi th emp loye es a nd senio r regio nal managem ent. Board members a V isi tin g Gro up busi nes s lo ca tion s enab les t he B oar d to spe nd tim e wi th emp loy ee s of var ying s eni ori t y an d ass es s cultur e in a loc al co ntex t . Altho ugh th is cont inue d to be imp ac ted b y COV ID - 1 9 tr ave l re str ic tio ns , as note d ear li er the Bo ard w as abl e to hol d in- pe rs on me etin gs dur ing t he ye ar , an d the s e allow ed th e Bo ar d to enga ge wi th th e busin es s. Audit Committee a T he C omm it te e's over sight of inte rac ti ons w ith go ver nme nt and r egul ator s , and th e pe rsp ec ti ve pr ovi de d by Glo bal Inter nal Audi t, c an giv e an indic atio n of cult ure. T he C ommi t tee a nd th e Boa rd re ce ive r elev ant upda tes at e ver y meet ing, andma nage ment i s tra nsp aren t and r esp ons ive to c halle nge . Remuneration Committee a T he C om mit te e rev iew s an ‘O ver vie w of emp loye e pay ’ pap er , des igne d to pro vid e an ove r v iew of p ay st ru ct ure s at E xp eria n and th eir al ignm ent wi th ou r pur pos e, v alue s and s tr ate gy. This al low s the C ommi t tee to e nsur e that r ele vant pol ici es an d pra c tice s ar e cons ist ent wi th E xp er ian’s valu es . a T he C om mit te e Chair m et wi th th e UK and Ir el and E x per ian Pe op le For um in Mar ch 2022, and f ee dba ck was p rov id ed to the B oar d. T he ke y point s/to pic s fr om th e updat e inclu ded ma ny ref ere nce s to the v alue of t he init iati ves in t he ar eas of ment al heal th and we lln es s, a ddit ional b ene fit s whi ch inclu de d the intr od uc tion of c rit ica l illn es s cove r , incr easin g bo nus opp or t uniti es f or UK-b ase d emp loye es , gr anting o f ' Than k Y ou' share s , the ex te nsio n of pr iva te me dic al cov era ge de ep er into the o rgani sat ion an d empl oye e appr ec iatio n for t he enhan ce d flex ibili t y pr ovi de d in wor king f ro m hom e and th e deve lopi ng pr ac tic e of hyb ri d and re mote w ork ing g oing f or wa rd. a T he C om mit te e rev ie ws our U K gen der p ay gap dis clos ure s ever y year , on b ehalf of t he B oar d. Nomination and Corporate Governance Committee a In Ja nuar y, the C ommi t tee c onsi der ed t he annua l Peo ple Str ate gy, T ale nt and Cu lture up date f rom t he Chi ef Pe opl e O cer , whi ch inclu de d deta ils o f globa l pe ople s tr ate gy pr ogr es s, t alent an d lea der ship, cu lture an d the e mplo yee v alue proposition, and the priorities for FY23. a T he up date in clud ed de tail s of t he ex te rnal ma rke t, wh er e a comp eti tiv e envi ronm ent wa s bein g ex per ien ce d wi th tale nt expectations changing. a T he C omm it te e note d that t he glo bal p eop le st ra teg y is und erp inne d by t wo key e nabl ing s tra tegi c foc us are as: r elea sing the p ower o f HR and inve s ting in o ur digit al pe opl e solu tion s. a T he C omm it te e al so r ece ive d a div ers it y, equit y an d inclus ion (D EI) upda te fr om th e Chief P eo ple O c er an d Chief D EI O cer w hich in clud ed d etail s o n DEI p ro gre ss , dive rsi t y in se nior l ead er hire s and t he D EI thr ee - year s tr ate gy. a T he C om mit te e note d tha t our co re ph ilos ophy is t hat DE I is es se ntial to ou r pur pos e of cr eat ing a b et ter tom or row, toge the r , by m akin g pos iti ve chan ge in th e wor ld an d ac ti vely sup po r tin g eo r t s to clo se th e finan cial wea lth gap ofunde rs er ve d com muniti es . Examp les of ad ditional ways that the Boar d monitors an d asses ses culture Experian plc Governance 104 Code principle Board Leadership and Company Purpose Delegated authority flow Board Executive management team Operating businesses Principal subsidiaries These are Gr oup companies to which the Board has delegated certain decision-making powers, for example implementing decisions agreed in principle by the Boar d; executive management of the oper ations of the Group within the str ategy and budget approved by the Boar d; acquisitions and disposals with a value up to US$50m, and capital expenditur e projects. See Board of directors on pages 98 to 99 Group Operating Co mmittee (OpCo) Risk management committees ( executive and regional) Environmental, Social and G overnance (ES G) St eering C o mmittee Strategic project committees (global and regional ) Global Internal Audit Nomination and Corpor ate Governance Committee Audit Committee Remuner ation Committee See report on page 111 See report on page 117 See report on page 125 a The OpCo comprise s the most senior ex ecutives from the Group. It s remit i ncludes identifying, debating and achieving consensus on issues involving s trateg y, grow th, people and culture, and operational efficiency. It also focuses on ensuring strong communication and co- oper ative working relationships among the top team. Its meetings tend to be issues oriented and focus on selected Group issues worthy of debate. a These committees comprise the most se nior global and regional executives . Th eir remit is to oversee a process to ensu re that all strategic proj ects are a ppropri ately resourced, risk assessed and commercially , financially and technically appraised. A similar bo dy, the Investment Commit tee, per forms the same function in respect of proposals regarding minorit y investment s. D epending on the outcome of the discussions, the commit tees’ conclusions are then considered by the board of the relevant Group company for approval. a Global Internal Audit (GIA) conducts a range of i ndependent a u dit reviews throughout the Group during the year an d i s represente d at each Audit Commit te e meeting. GIA ’ s plans, results and key findings are pr esented to, an d discussed with, the Au dit Commit tee. The internal audit progr amme and meth odology are aligned to the risk categor ies and risk assessment parameters es tablished by Gl obal Risk Mana gement . GIA also makes use of r isk assessment information at a business leve l, in planning and conducting it s audits. a Executive Risk Management Co mmittee (ERMC ) comprise s s enior Group ex ecutives, including the executive di rect ors a nd t he Co mpany Se cretar y. Its primar y responsibilit y is to overse e the management of global risks. The regional risk management committee s oversee the management of regional risk s, consistent with Exp erian’ s risk appetite, s trate gies and objectives, and a re compris ed of senior regional leaders. a S ecurit y and Continuity Steering Committe e (SCS C) is a su b - committee of the ERMC. The SCSC’s primar y responsibility is to oversee management of gl obal in formation security, physical security, and securi ty continui ty risk s, consistent with Ex perian’s risk appetite, strateg ies a nd objectives. a Assurance St eering Co mmittee (ASC) is also a sub- committe e of the ERMC and ove rsees the development and implementation of the Grou p's assurance f ramework . a T his dedicated ESG commit tee comprises s enior ex ecutives from a wide r a nge of a reas throughout the Group, and is chaired by the Chief Financial Officer. The purpose and primary duty of th e ESG Steeri ng Committee is to su ppor t the definition, approval and integr ated deliver y of the Group’ s ESG strategy. Glob al D ele gated Au thor iti es Ma tri x This ke y Group g over nance d ocum ent compr ise s the s che dule of mat ters r es er ve d to the B oard , the B oard co mmit tee s’ terms of refe ren ce and th e auth or it y lev el s for th e Group’s princip al subsi diarie s, dir ec tor s and senio r execu tiv es . For mat ter s not r es er ve d to the B oard , the matr ix p res crib es t he cascade of authorities delega ted throughout the Gr oup by re spe ct ive Gr oup comp anies , together with their monetary limits. T he Boar d moni tors t he exercis e of dele gatio ns tothe Gr oup’s principa l subsidiar ie s, w hich are rep or ted to it at ea ch Bo ard me eting . Regio nal matr ices ar e al so in pl ace . Gover nance f ram ework 105 Experian plc Annual Report 2022 Gover nance Code principle Board Leadership and Company Purpose Corpora te go vern anc e report contin ued Th e UK Cor p orat e Gove rnanc e Co de pr inciple s re gardin g the ro le of the Chair , the de sire d chara cter is tic s of the Chair an d his/h er dut y regarding Boar d rel atio ns and co ntrib utio ns are ou tlin ed in the C hair’s let ter of app ointment . A summar y appear s in the ta ble be low. The t able al so summar ises how th ere is a clear di visi on of re spon sibiliti es b et wee n the lea der ship of the B oar d and the e xecut ive le ader ship of the b usin ess. Chair a Run s the B oar d e ec ti vely an d ens ure s that th e Bo ard p lay s a ful l and c ons tr uc ti ve par t in deve lopin g and d eter minin g the Gr oup’s str ate gy (in cludin g ES G str ate gy) a nd ov eral l com mer cial obj ec ti ves a P rom ote s the hi ghes t s tanda rds of inte gr it y, probi t y and co rp or ate go ver nanc e thro ugho ut th e Gro up and p ar tic ular ly atBo ar d leve l a E nsur es t hat th e Bo ard r ec eiv es a ccur ate , time ly and c lear inf orm atio n on th e Gro up’s per f or manc e and i ts i ssu es , challenges and oppo r tunities a E nsur es e e ct ive c ommun ica tio n wit h the C omp any’s shar eho lder s by t he CEO, t he CF O and ot her e xecu ti ve manag eme nt; an d ensur es t hat th e Bo ard d evel ops an un der st andin g of th e vie ws of th e Co mpany ’s major shar eho lde rs a Facili tate s the n on - exec uti ve dire ct ors’ e ec ti ve cont rib u tion to the Board, and ensures constructive relationships bet w een t he exe cu tiv e and n on- e xec uti ve dire c tor s a P rim arily r esp on sible f or th e Bo ard ’s leade rsh ip and g over nan ce, an d ens ure s it s e ec ti ven es s Chief Executive Ocer (CEO) a Re sp onsib le fo r the G rou p’s day-to - day bu sine ss , in lin e wit h the s tr ate gy, risk p rofi le, ob je ct ive s and p ol icie s s et by th e Boar d and its commit te es a A cco untab le to th e Bo ard f or th e Gro up’s develo pme nt and i ts o pe rat ion s a Run s the Gr oup’s busin es s and d evel ops th e Gro up’s str ateg y (inclu ding E SG s tr ate gy) an d over all c omm erc ial obj ec tiv es a I mple ment s , wi th th e exec uti ve te am, t he de cisi ons o f the B oar d, i t s comm it te es an d th e prin cip al subs idiar ie s a Maint ains a dial ogu e wit h the C hair on th e impo r ta nt and s tr ate gic is sue s fac ing th e Gro up, and a ler t s th e Chair to for thcom ing co mple x, c ontenti ous o r sen siti ve is sue s a L ea ds the c omm unica tio n pro gra mme w ith sha reh old ers a C hair s the Gr oup O per at ing C ommi t tee Chief Financial Ocer (CFO) a Re sp onsib le fo r managin g the fin ancial a air s of th e Gro up, inc luding t ax , co rp or ate fina nce an d tr easur y a Wo rk s clo sel y wit h the C EO and C OO to m anag e the Gr oup’s ope ra tion s, a nd ove rs ee s info rma tio n se cur it y an d operational r isk management a A ct s a s exec uti ve sp on sor o f the G roup's ov era ll E SG p ro gram me an d chair s the G rou p's dedic ate d E SG Ste er ing Commit tee a M emb er of th e Gro up Op er atin g Co mmit te e Chief Operating Ocer (COO) a O v ers e es th e Co mpan y’s busin es s op er atio ns a E nsur es th e Gro up has e ec ti ve op era tiona l pro ce dure s and co ntro l s a Re sp onsib le fo r dri vin g the e volu tion o f the G roup’s tech nolo gy a nd inn ovat ion s tr ate gy a M emb er of th e Gro up Op er atin g Co mmit te e Senior Independent Director a P rov ide s sup po r t and g uidan ce, a ct s as a s oun ding b oar d for t he Chai r , an d ser ves as a n inter me diar y f or oth er dire c tor s a A ct s as a c onta ct p oint f or shar eho lder s if t hey hav e con cer ns wh ich ar e not re so lve d thro ugh dis cus sio n with t he Cha ir , CEO or CFO a Ev aluate s th e per for manc e of th e Chair Non-executive directors a C onstruc tively challenge and help develop Group strategy a S cr uti nise ma nage ment p er f or manc e again st a gre ed go al s and o bje c tiv es a U phol d the hi ghe st s tan dards o f integr it y an d pro bit y a nd sup por t the Chai r in inst illin g the ap pro pr iate cult ure, v alue s and b ehav iour s in the G roup a E nsur e the inte gr it y of fina ncial inf orm atio n and th at the re ar e rob ust fi nancial c ontr ol s and s ys tem s of ri sk manag ement ; det erm ine exe cut ive r emune rat ion an d suc ces sio n pla nning Group Company Secretary a S ec ret ar y to t he B oar d and i t s comm it te es a P rov id es sup po r t an d guidan ce to th e Bo ard a nd th e Chair , and a ct s as a n inter me diar y f or no n- e xecu tiv e dire cto rs a Re sp onsib le fo r : cor po ra te gov ern ance ; lis ting r ule s , pro spe c tus r ule s, an d dis closu re gui danc e and tr ans par enc y r ules compliance; statutor y compliance and repor ting; shareholder service s; and corporate responsibi lity a M emb er (and s e cret ar y) o f the Gr oup O pe rat ing C ommi t te e Group General Counsel a Re sp onsib le fo r over se ein g E xp eria n’ s glob al lega l, r egu lato r y co mplia nce an d gov ern ment a air s fu nc tion s a P rov ide s th e Bo ard an d Audi t Co mmit te e wi th le gal ad vi ce, l eads o n lega l and r egu lato r y re por ting , and ac ti ve in p ubli c poli cy adv ocacy a M emb er of th e Gro up Op er atin g Co mmit te e Division o f responsibi lities Experian plc Governance 106 Code principle Division of Responsibilities 1 2 May 21 Ju l 3 1 March 2022 20, 21 , 24, 25 & 27 May 22, 23, 24, 25 , & 29 No v 28, 29 & 30 Jul 21 to 24 Feb Mar 21 Ju l 1 5 Sep 11 N o v 1 8 Jan 22 Mar 29 Mar Investo r vir tual conference s and meetings Investor an d media relations reports provided to the Board Chair's roadshow ESG roadshows Wealth roadshow AGM 7 , 8, 9 & 1 4 Dec Remuneration engagement 1 April 2021 Shareholder and stak eholder engagement Th e UK Co rp ora te Gov ernan ce Co de enco urag es comp anies an d boar ds, in cluding commit te e chairs , to se ek re gular en gage ment with maj or shareh older s in or der to under st and the ir views . Bo ards ar e als o enco urag ed to have a cle ar under st andin g of the views of shareholders. In addi tion , the C od e sta tes that t he B oard should un der sta nd the v iews of th e Co mpany’s othe r key st akehol der s and de scr ibe h ow th eir intere st s have be en co nsider ed in dis cussi ons and decis ion-making. Deta ils regardi ng key stake hold ers ar e on pa ge 1 0 8. Shareholders We are commit te d to ope n and re gular communication and engagement with shareho lder s at any time of th e year , an d our communications with them will al ways oer invit atio ns to me et wit h the Chair o r any of the Boar d’s commit tee chair s. Board – Inv es tor rel ation s, and e xte rnal communic ation s and me dia, re por ts are circul ated b efor e ever y Boar d mee ting. Th einves tor re lati ons r epo r t cont ains a comme ntar y on key event s in E xp er ian’ s mainmarket s , share pr ice p er fo rman ce, market movements, investor feedback from management/ analyst meetings, broker and analyst f ore cas t s and re comme ndatio ns, inves tor re lat ions a cti vi ties (in cludin g ES G), and shareho lder analysis . Th e exter nal communic atio ns and me dia upda te prov ide s detail s of th e foc us of ex ter nal communic atio n activitie s, which has included i nnovation, financial healt h, data s ec urit y an d integr it y, andpe opl e. Th e Chief C ommunic atio ns O cer prov ide s re gular up dates at B oar d me etings . Engagem ent with investor s – The C hair of theRemun era tion C ommit te e wr ote to our major shareh olde rs and th e main UK and USprox y ad vis or y bodi es in Marc h 2022. Hepr ovid ed anup date on o ur ES G pro gre ss and our c ommitm ent to achie ving m ore gend erdive rsit y in s enior mana geme nt level s . Th eChair , Mike Rog ers , met w ith a numb er ofE xpe rian’s major sharehol ders o ver a number of days in D ec embe r 2021 . Th ere was a wide r ang e of topic s disc uss ed w ith th es e sharehol ders : busine ss st rate gy and per f ormanc e, the impa ct of COV ID - 1 9 , financial inclusion , data s ecur it y, regul ation , Bo ard diver sit y and e xpe r tis e, and E SGmat ter s. Inves tors a nd ana lyst s – Th e execu tive te am run s an ongoin g pro gramm e of dialogu e with inst itut ional inve stor s and analys t s, th rough which th ey disc uss a w ide r ange of is sue s including s tr ateg y , pe r for mance , managem ent and gove rnan ce. E xp er ian als o enga ges w ith inves tor s throu gh indus tr y c onfer ence s and byhos ting e vent s with m embe rs of th e senio r managem ent team. T he ann ounce ment s ofthef ull-ye ar and half-ye ar res ults an d tra ding up dates p rov ide op por tunitie s for u s toanswe r ques tion s fro m analyst s , cover ing awide r ang e of topic s . This y ear , exe cuti ve management attended vir tual conferences andinve stor m eet ings as ou tlin ed ab ove. An nual G ene ra l Me etin g – Th e AGM pr ovi des avaluable o ppo r tuni t y for th e Boar d to communicate with shareholders and usually tomee t them inf ormal ly bef ore th e main busine ss of th e me eting . In resp ons e to COV ID - 1 9 and in or der to ens ure th e safe t y of the C ompany’s shareho lder s, emp loyee s and direc tor s, shar ehold ers w ere not p er mit ted to physic ally at tend t he Co mpany’s 2021 AGM. However , shareholders were provided with afacil it y to vi ew the AG M elec tr onic ally and to submit qu es tions , and we al s o engag ed wi th inves tor s ahea d of the AGM . Voting leve ls a t the2021 AGM wer e 75.26 % of the C omp any’s issu ed votin g share c apit al. T he 2022 AGM w ill take pl ace o n Thur s day 21 July 2022 in Dublin , Irel and. Share holde rs are e ncour age d to use prox y vo ting on t he re so lutio ns pu t for ward, allof whic h (except f or pro ce dural r es oluti ons) are take n by a po ll . Private shareholders – The C ompany Secr etar y, Charles Brown, over see s communication with private shareholders, andensur es dir ec t resp ons es as ap prop riate in resp ec t of any mat ter s rais ed b y shareho lder s. T he C ompany is sues a ‘Shareholder Questions’ card each year , together with the AGM documentation. The Comp any resp ond ed to share hold ers dire c tly , as appr opr iate, f ollow ing th e 2021 AGM. Inves tor rel ati ons ap p – This c ontains information ab out o ur financial per f ormanc e, together with repor ts , presentations and news of upcomin g events . Website – Our website is an imp or t ant channel for communicating with all stakeholders, including shar ehol der s. Al l material infor matio n rep or te d to the r egul ator y n ews ser vices is publis hed at ww w.experianpl c. com/inve stor s/regulator y-ne ws/ , toget her with c opie s of ful l-year an d half-year r esult s announc ement s and t radin g update s. Timeline of sharehold er engagem ent 107 Experian plc Annual Report 2022 Gover nance Code principle Division of Responsibilities Corpora te go vern anc e report contin ued Fur ther inf or matio n conc er ning Gro up -w ide en gage ment wi th key s takeh olde rs is on p age s 22 to 25 in the Str ate gic rep or t. Bo ard ac tivities regarding key st akehol der s, inclu ding en gagem ent, ar e summar ise d in the tab le be low. Sharehold er enga geme nt has be en con sider ed ea rli er . Stakeholder Responsibility Relevant activities during FY22 Summary of stakeholder views/actions Our clients and consumers Board a Th e Bo ard r ep or t in Mar ch inclu de s anupda te on cli ent s and co nsum ers , includ ing Net Promo ter Score ( NPS) metric s, top-p er forming NPS at tr ibut es and a rea s that re quir e improvement. a O n con sumer s, t he re por ting inclu de s br and aw aren es s , tr ust in t he E xp er ian br and a nd th e leve l of complain ts. a T he re co ntinue d to be im prov eme nts in E x pe rian's NPS , and E xp eria n's reput atio n as a tr us ted c omp any cont inue d as th e highe st sco rin g br and at t rib ute , for th e six t h year in a r ow. a ' Our Pe op le + T e ams' achi eve d the h ighe st r atin gs ac ros s the c lient exp er ienc e, hi ghlightin g our cr it ical r ole in su ppo r tin g our cu stom er s. a O ur product adoption satisfaction increase was driven by positive fe edb ack on s olu tion f unc ti onali t y, per fo rma nce a nd dat a quali t y. Our communities Board a T he C hie f E xecu ti ve O c er re por ts onE SG an d our a ct ions to s upp or t ourco mmun iti es at e ach s che dule d Board meet ing. a Twice dur in g the y ear , the G lob al Hea d of Corporate Responsibility presented to the B oar d. a A n E SG Ste er ing C omm it te e was e st abl ishe d in 2021 and is spo nso re d by the C hief F inanc ial O ce r , L loyd P itchf ord , to br ing toge the r the go od w ork un der taken ac ros s the Gr oup into o ne, co-ordin ated progra mme. a S co pe 1 an d 2 car b on emis sio ns have r ed uce d by 4 4% since 201 9 . Ana ddit ional 21 mill ion p eo ple ha d be en re ach ed th rou gh so cial innov atio n pro duc t s in F Y22. a Total chari tab le and v oluntar y contr ibu tion s incr eas ed by 32% . Our people Board, Nomination and Corporate Governance Committee, Remuneration Committee a P ul se s ur ve y updat es to th e Bo ard . a B oa rd re po r tin g at eve r y s che dule d Bo ard m eet ing (Pe op le se ct ion of Board report). a P eop le Str ate gy, T alent an d Cult ure update to t he No minatio n and Corpora te Go vern ance Comm ittee. a D ire ct f ee dba ck to th e Bo ard f ro m George Rose, Remuneration Co mmit te e Cha ir , w ho me t wi th th e UKand I rel and E xper ian P eo ple For um in March 2022. a C onfi dent ial Hel plin e updat es to th e Audit Commi tte e. a In t he Di ver sit y, Equit y an d Inclu sion (D EI) ar ena, si gnifi cant a cti vi t y contin ued w ith a G loba l Cen sus in Se ptem ber 2021 . a Re co gnit ion lo ca lly as a r esult o f tak ing pa r t in th e Gre at Pl ace to Wor k, w ith t he UK b ein g re co gnis ed as o ne of t he ‘ Be st Wo rk pl ac es inT e ch ’ and N or t h Am er ica a s one o f the ‘ Be s t La rg e Wor kpl ac es forWom en’ by For tune. T his r eco gnit ion f ur th er s our co mmitm ent tobe an e mplo yer of c hoic e. a C omm unic atio ns ab ou t the Fut ure o f Work fl ex ible wo rk ing envir onm ent . Empl oye es n ow have t he fle xibil it y to wo rk a t a hub, rem otely o r a mix tur e of b oth, a s par t of a tw o -way c onve rs atio n wit hmana ger s. a In O c tobe r 2021 , E x per ian mar ked Wo rl d Ment al Hea lth Mo nth. a A s w e wor k to integr ate DE I acc ount abili t y thro ugho ut al l of our re gions a nd bu sine ss es , we’ve a dde d a div er sit y te mpl ate to th e quar te rly b usine ss r ev iews to h ighli ght pro gre ss a gains t spe cifi c diversity commitments. Our suppliers Board a A nnual up date to t he Bo ard o n suppliers, which i ncludes details of enga gem ent, t he Gr oup’s Suppl ier Relat ionship Mana geme nt pro gr amme (S RM) and s uppl ier v iew s. a Intro duction of buyer training. a A nnua l Bo ard r ev iew of t he Gr oup’s Modern Slaver y S tatement . a O ur SRM c ontinu ed to de velo p wit h re gula r coll ab or ativ e me etin gs wit h our top 31 sup pli er s wit h a spe cial f ocu s on p er fo rm ance a nd oppor tunities for deeper collaboration . a S uppl ier Mana gem ent T r ainin g was intr odu ce d for bu yer s and ke y st akeho lde rs w ithin t he bu sine ss . T his ena ble s the b usin es s to take amor e con siste nt appr oa ch to supp lier m anage ment . a In O c tobe r 2021 , E x per ian par tner ed w ith th e Slav e -Fre e All iance tohos t a wor k sho p, whi ch fa cili tate d sup pli er s to col lab or ate w ith E xp eria n to minimis e mo de rn sl aver y ris ks in o ur supp ly chain s. Government Board, Audit Committee a B oard memb ers rec eive regul ar Bo ard an d Audi t Com mit te e upda tes fro m the G roup G en era l Co unse l regardi ng regula tory engagemen t, and any o ngo ing re gul ator y matt ers . a T here is ongoing Compliance rep or t ing to th e Audit C om mit te e, including C ompl iance tr aining. a Au dit Co mmit tee Risk Mana gement rep or ting in clude s legislat ive/ re gulato r y mat te rs . Any r eleva nt gove rnm ent a air s mat te rs ar e al so con side red b y the Au dit C ommi t tee and th e B oar d. a T he re we re on goin g reg ulato r y inq uiri es in re sp ec t of ce r tain m at ter s dur ing th e year, and the B oar d and A udit C omm it te e re cei ve re gul ar updat es on t he mat te rs b eing c onsi der ed by r egu lato rs . Our r esp ons e to the se in quiri es w ill al so t ake into con side rat ion th e re gula tor y pos itio n on the r ele vant inq uir y. a T he B oar d re cei ve d update s in Januar y and Feb ruar y 2022 on the app eal h ear ing on t he UK Inf or mati on Co mmis sio ner 's O ce (IC O) enforcement notice. a U pdat es we re pr ovi de d to the B oar d and A udit C omm it te e on anumb er of mat te rs , inclu ding a US Ho use F inanc ial Se r vi ce s Com mit te e he arin g fo cus ed on t he cr edi t rep or ting sy st em, an d enga gem ent wit h re gula tors in cludin g the UK F inancia l Con duc t Auth or it y, and the US C on sumer F inanc ial Pro tec ti on Bur eau . Oth er s tak ehol der s Experian plc Governance 108 Code principle Division of Responsibilities Workforce engagement Th e UK Cor p orat e Gove rnanc e Co de re quire s compani es to se lec t one or a c ombinati on of pre scr ibe d met hods f or th e Boar d to enga ge with t he wor k forc e. If a p ar ti cular m etho d is not app ropr iate fo r a company, it may expl ain the alter nati ve arr ang ement s in pl ace an d why the se are c onsid ere d ee ct ive. T he B oar d has always fe lt well inf orm ed ab out w ork for ce view s and mat ter s, in cluding in r elat ion to payand r elate d po lic y arr ang ement s for t he bro ade r emplo yee p op ulati on. A s a r es ult, nosingle ap proa ch re comme nde d in the Co dewas c onsi dere d app ropr iate f or our busine ss . T he Bo ard ins tea d adop ted a combinat ion of me tho ds to comply w ith th e Co de’s re quireme nts . Th es e are summaris ed below, and includ e: a T her e are r egula r pe ople and s entim ent sur ve y update s to the B oar d, and r epor ting at ever y sche duled B oar d me eting o n pe ople mat ters . Pe ople , talent an d cultur e update s are al so pr ovid ed to th e Nominati on and Corp orate Governance Commit tee, oer ing a valuable in sight into wor kf orce ma t ters . a A ny rel evant b usine ss c ase s rev iewe d by the B oard in clude an ev aluation of p otential impac t s of the tr ansa ct ion on th e Gro up’ s stakeholders , including employees. a T he Rem uner ation C ommit te e annually consi der s an ex tensi ve pap er s et ting o ut detail s of all- e mploye e pay and w ork for ce pol icies a cros s E xpe rian. T he dis cussi ons onthis top ic prov ide h elpf ul insight s fo r framing pay considerations. a T he Re muner atio n Commi t tee Chair annually at tend s a meet ing of the U K and Irel and E xp erian P eop le Forum (s ee O ur pe ople , in the t able o n pag e 1 0 8), providin g the op por tunit y to gain firs t-hand f ee dback in t wo -way dis cus sions w ith th e wor kf orce , which is inv aluable. T he em ploye e insight s and vi ews gath ere d are share d wit h the f ull Boar d, allow ing the B oar d to hear dire ct ly fro m the w ider w or kfo rce . a T he B oar d mee ts w ith emp loye es phy sically out side t he Bo ardro om env ironm ent durin g the ye ar . Whil e COV ID - 1 9 has impac te d on the B oard ’s abilit y to enga ge in this wa y , mee tings b et wee n Boar d memb ers an d thewider employee population were held during th e year . In coming to t his appro ach, t he Bo ard wa s satis fie d that th e appr oach wa s appro pr iate for E xpe rian and t hat the B oar d keep s wor kfo rce considerations to the fore i n its deliberations. Considering our stakeholders in our decision-making Th e Co de al so re comm ends that th e Bo ard should d es crib e how s takeho lder inte res t s have be en cons ider ed in Bo ard dis cussi ons and de cision -makin g. We have pro ces se s in pla ce to ca pture an d cons ider s takeh olde rs’ view s (includin g the mat te rs co ntaine d in Se cti on 1 72 of the UK C ompanie s Ac t 200 6, ona volunt ar y basis) an d fee d them into Boarddecis ion-making. All mater ial busin es s cas es co nside red in theGr oup (for examp le, mer ger s, a cquisitio ns and major c apit al inves tme nts) inclu de an analysis of the stakeholder considerations, anticipated impact and mitigations. This pro ces s hel ps th e Boar d to pe r for m the du tie s outl ine d in Sec tio n 1 72 of the UK C ompanie s Ac t 2006 an d prov ide s ass uranc e to the B oar d that po tential impa ct s on s takeho lder s have be en cons ider ed in th e develo pme nt of the prop os al. T he imp act o n st akehold ers , the ir view s and the ir fee dba ck are col lec tiv ely at th e hear t of B oar d discus sions an d ac tions . Th e Boar d will c ontinue to e nhance way s to ensur e that stakeholders are given consideration as par t of th e Boar d’s decision -mak ing. E xample s of how this p roc es s wor ks in pra cti ce are ou tline d be low, where Bo ard consideration of an amalgamation of t wo regi ons and a s tr ategic a cquisiti on includ ed arev iew of the s tan ding s takeho lder imp ac t analysis. Amalgamation of th e EME A and A sia Pacific regions Dur ing the y ear , we ann ounc ed so me impor tant change s to our EME A and As ia Pacifi c re gions . For a numbe r of years o ur ambiti on has be en to pur sue gr ow th in EM E A and A sia Paci fic and to b uild b oth the se r egio ns to much gre ater sc ale. T his has s een us inve st signific antly, both organi cally an d throu gh acquisit ion, an d despi te COV ID - 1 9 rela ted setb ack s, we hav e made signi ficant p rogr es s toward s this ambit ion. In F Y22, in orde r to brin g our op er atio ns to the n ex t st age of development, the Board suppor ted the combinat ion of our E ME A and A sia Pa cific regi ons un der a ne w lead er , Malin H olmb er g, who jo ine d E xpe rian in S eptem ber 2021 as CEO, EME A an d A sia Paci fic. We are excited ab out t his new chapter f or ourbusin es s as we s eek to dr iv e greater level sof sc ale, co nsisten cy an d opp or tuni t y acro ss th es e terr itor ie s. In co nsid erin g the amalgamation , the B oar d consid ere d market dri vers a cros s bo th EME A an d As ia Pacifi c which w ere fa vour able for o ur busin es s, as demand gr ows to make cre dit and le nding simpler and e mpow er mor e cons umer s acros s the wo rld , pro vidin g opp or t unitie s for da ta and cloud -enab led cap abilitie s. We have an opp or t unit y to dri ve grow th and pro fitab ilit y acro ss EME A and As ia Pacifi c by leve ragin g greater s cale a cros s re sour ces , pro duc t s, talent an d inves tme nts . Our amb ition is to b uild the co mbine d regi on to a leve l of scal e and impac t that w ill r ival o ur othe r lar ge re gions . In consi der ing the amalgama tion , the B oard refle c ted on t he s takeho lder imp ac ts . T he following impacts and actions/mitig ations were identified: a T her e are ex pe cte d to be p er sonn el change s in str eamlinin g the re gion s, in th e shor t to medium te rm . Th e Boar d has gi ven it s f ull supp or t to mana gement w ith r esp ec t to thepa ckag e of mea sure s that has b een employ ed to r ight size the b usine ss es , takin ginto acc ount th e impac t on th e Group’s employ ee s. O ur foc us on s tra tegy will cont inue on i mpor tant products and countr ie s for E xp er ian globally to day and inthe f utur e. a C usto mer s and supp lier s are ex pe cte d to reac t p ositi vely as th e str eamlining w ould allow E xp er ian to under sta nd their n ee ds more e asily, and would align o per ating mod el s to dri ve spe cifi c outc ome s for th em and E xp erian , and would al low coll abo rati ve wor king to d eli ver th eir exp e ct ation s. a T he s tre amlining is ex pe cte d to have a meaning fully p ositi ve long -ter m impac t onthe majo ri t y of stake hold ers , and no material c ommunit y or env ironme ntal impac t s are anticipa ted. Acquisition of Gabi Personal Insur ance Agency, Inc. ( Gabi) In Sept embe r 2021 , the B oar d rev iewe d, consid ere d and appr oved t he acquisi tion ofGabi, a di gital ins uran ce ag enc y bas ed inSan Francis co, C ali for nia, tha t focu se s onsel ling au to and ho me insur anc e pol icie s tocons umer s. A s a digital a genc y, Gabi pro duce s quote s and binds p oli cies w itho ut re dire ct ing cus tome rs tocar rie r websi tes , ver sus a lea d gene rato r that ca n only pro duc e quote s. G abi oe rs a highly automated experience that simplifies insura nce sho pping an d oer s a comp lete purcha se ex per ien ce wi thin one e cos ys tem. Gabi o ers a b rea dth of cho ice, qu ote acc urac y and a conv enient , str eamlin ed digi tal exp er ienc e on a web b row ser o r mobil e application. Gabi provides insurance carriers with an ab ilit y to de liv er high -qual it y cus tom er se gment s, s tro ng retent ion busin es s and leading te chnolo gy. A bri efing p aper wa s circul ated to t he Bo ard ahea d of it s Septe mber 2021 me eting , outlining the strate gic rationale for the transac tion, as well as the financi al evaluation and deal s tr uc ture . Th e Group’s Chief Investment Ocer at tended the meeting and 109 Experian plc Annual Report 2022 Gover nance Code principle Division of Responsibilities Corpora te go vern anc e report contin ued pre sente d the b usine ss ca se to th e Boar d. Th eBoa rd note d that G abi woul d pro vide distr ibu tion to in suran ce c arr ier s in the US A , astr ong pr odu ct ex per ienc e and techn olog y that wil l scal e, insur anc e lice ncing c over age , and a st ron g team wit h deep e xp eri ence in th e insur ance mar ket. T he c ombinati on of Gabi wi th Exp er ia n ’ s b ra nd, Expe ria n C on su me r Ser vices' large audience, consumer consent, and data w ould cre ate a st rong s tr ategic pair ing. In consi der ing the a cquisiti on, th e Bo ard rev iewe d the st akehol der impa ct analysis which ha d be en pre pare d (and which is prep ared f or all ac quisition b usine ss ca ses). Th e analysis ide ntifie d the f ollow ing stakeholder impacts and actions/mitig ations: a T he re wer e no imme diate p ers onn el redu ct ions pl anne d for th e busine ss , wit h plan s for inve stm ent for r etenti on. a C usto mer s and supp lier s wer e exp ec ted to reac t p ositi vely to a well -c apit alise d, lis ted company b eing t heir tr us ted par tner . a T her e was no ma terial co mmunit y or environmen tal impact an ticipated. a T he a cquisiti on was ex pe ct ed to have a meaning fully p ositi ve long -ter m impac t onall re levant s takeh olde rs . Workforce p olicies and pr ac tices Th e Boar d is exp ec te d to ensur e that: wor kfor ce p olicie s and pr ac tice s are consis tent wi th the C ompany ’s values; that they sup por t its lo ng -ter m sust ainable succ es s; and that t he wor kf orc e can r aise anymat ters of c once rn. A n examp le of the alignme nt of poli cies an d pra cti ces is ho w theGr oup manage s anti -br ibe r y and anti- co rr upti on. E x per ian has a st ron g compl iance cult ure, whi ch is at the h ear t of our str ateg y for e nsur ing we comp ly bot h with th e laws tha t apply to o ur busine ss an d with o ur Global C o de of Co nduc t. T he B oar d set s th e tone and l eads by e xample and is o ne of the mos t impor tant influenc es on th e Co mpany’s commitment t o preventing bribery and corruption. Our Anti- Cor ruption Framework set s ou t our zer o- toler ance p oli cy o n brib er y and cor r uptio n in any for m, and th is mes sa ge is reinfor ced thr ough mandator y annual trainin g for emp loyee s. We al so ex ten d this fr amewor k to our t hird -pa r t y net w ork an d busine ss p ar tn ers , whi ch hel ps to ins til ourvalu es in eve r y asp ec t of our b usine ss . Weapply due dili genc e and ca ref ul scr eenin g to interm ediar ies s uch as ag ent s, representative s, reseller s and serv ice prov ider s and tr ain the m in our po licie s. In term s of the abil it y to rais e mat ter s of conc ern , E xp erian is co mmit ted to a chievin g the high es t pos sible s tandar ds of qualit y, honest y , openness and accoun tability, and there is an expect ation that employees maintain high s tandar ds in acc ordan ce wit h the Glo bal Co de of C ondu ct . Th ere is al s o a culture of o penn es s and ac counta bilit y, and allemploy ees ar e enco urag ed to r aise any conc er ns abo ut the w ay in which t he busin es s is run a t an early s ta ge so t hat any con cer ns can b e dealt wi th e ec tiv ely. A confidential help line , facili tate d by an ex ter nal prov ide r , has be en set up f or emp loye es wh o wish to r aise any conc ern s. C all s to th e Confi dential H elp line, and any ac tion s re quired , are re view ed by th e Audit C ommit te e at leas t eve r y six m onths . Non -executive dire ctor app ointment Non- executive di rectors are initially appointed for thr ee ye ars . T his may , subje c t to satisfac tor y per formance and elec tion or re - elec tio n by the shar ehol der s, b e ex tende d by mutual a gre ement . Th ey nor mally s er v e fora ma ximum of nine y ear s, thr ough t hree term s, ea ch of thre e year s’ duratio n. Meetings of n on- executive direc tors In addit ion to at ten ding Bo ard and c ommit te e meetings, the non- executive directors normally meet separ ately with the Chair , andso metim es al so w ith th e Chief E xe cuti ve O cer , a t the en d of each s chedul ed B oard mee ting . The n on - execu tiv e direc tor s al so me et pr iva tely at le ast o nce a y ear wi th the Dep ut y Chair , w itho ut th e Chair pr ese nt, and did so on ce dur ing the y ear to disc uss mat te rs includin g the Chair ’s per for manc e. Board information All dire ctor s rec eive financial and op erational information each mon th to help them discharg e their du ties . Bo ard pap er s are circul ated di gital ly at leas t one w eek b efor e each B oard m eet ing, to en sure dir ec tors hav e time to r evie w them . Dire c tors hav e acc es s toindep end ent prof es sional ad vic e at the Comp any’s expen se, i f they co nside r it appro pr iate. No dire c tor obt ained any s uch adv ice dur ing th e year en de d 31 March 2022. Independence A s requir ed by t he UK C orp or ate Gov ernan ce Co de, th e Bo ard co nside rs ea ch of the non - exec uti ve dire cto rs to b e inde pen dent in charac ter and ju dgment an d bel ieve s ther e are no rel ation ships or circum stan ces t hat are likely to a ec t (or coul d appe ar to ae ct ) each direc tor ’s judgment. On 1 8 May 2022, w e announc ed tha t t wo of our indep end ent no n- exe cuti ve dire c tors , De irdre Mahlan and G eo rge Ros e, will r etire f rom th e Boar d at th e conclu sion of the A GM on 21 July 2022. Both D eirdr e and G eor ge wer e appo inted on 1 Sep temb er 201 2 an d, by th e time of t heir retirement, will have completed over nine year s’ ser v ice on t he E xp er ian Boar d. Not wi thst anding t his tenure , the B oard consi der s both to b e, an d to have be en throughout the year , entirely independent in charac ter an d judgme nt. T heir s er v ice b eyond nine year s has al so h elp ed th e Boar d to facil itate an ap prop riate p eri od of tr ansitio n for their Au dit and Re muner atio n Commi t tee Chair , and Se nior Ind epen dent Dir ec tor , r oles . T here are no ot her circ umst ance s set o ut in th e UK Cor po rate G over nanc e Co de that are r eleva nt in term s of the ind epe nden ce of bo th. Jo nathan Howel l has be en app ointed to s ucc ee d Deir dre as Chair of the A udit C ommit te e fro m 1 July 2022 and Alis on Br it tain ha s be en app ointed tosucc ee d Ge org e as Seni or Inde pen dent Dire cto r and Chair of t he Remun era tion Commi t tee fr om the c onclusi on of the AG M. Conflic ts of intere st, an d exter nal appointm ents The C ompany ’s arti cles of as so ciation allow the B oard to au thor ise a ct ual or pote ntial confli ct s of intere st . Th e auth oris atio n pro ce dure involv es Gr oup C orp or ate Se cretar iat iss uing guidanc e and a ques tionnair e each Au gust , askin g direc tor s toidenti f y any co nflic ts o r potent ial confl ict s , which t he Bo ard th en con sider s at it s Sept embe r mee ting. In a ddit ion , direc tor s are exp ec ted to ad vis e the C ompany S ecre tar y of any ac tual o r po tential c onfli ct s a s so on as t hey aris e so th e Boar d can c onsid er them at t he nex t avail able op por tunit y. In the Boar d’s view, this procedure oper ated eec tively during theye ar under r evi ew. The B oard al s o has a pro ce ss in pl ac e wher eby dir ec tor s’ prop ose d external or additional appointments are reviewed and considered for approval by theB oar d. Experian plc Governance 110 Code principle Division of Responsibilities Nomin ation and Corporat e Govern ance Commi ttee repor t Mike R ogers Chair of the N ominatio n and Co rp ora te Gove rnan ce Co mmitte e Committee’ s ke y roles and responsibilities Go od gov ernanc e and st rong , re spon sible, balan ce d leade rship are cr iti cal to busin es s succ ess an d to creat ing bot h long -ter m shareho lder va lue and a s tron g, sus tainabl e culture. A s a Committee, our responsi bilities include : a E nsur ing we have app ropr iate pr oce dure s for no minating , sele ct ing, tr aining an d evaluating di rec tors, and that adequate succession plans are in place. a Re view ing th e Bo ard’s str uc tur e, size, composition and succession needs; consi der ing the b alan ce of memb er ship and the B oar d’s require d bal ance of sk ill s, experience, independence, knowledge anddive rsit y. a Identif ying and nominating, for the Boar d’sapproval , suit able ca ndidate s to fill vac anci es fo r non - execu tiv e direc tor s and, w ith th e Chief E xe cuti ve O c er’s assis tanc e, exec utiv e direc tor s. B oard appo intment s are ma de on mer it an d agains t obje c tive cr ite ria , to ensur e the Boar d maintains i t s balan ce of skil ls , experience, independence, knowledge anddive rsit y. a Review ing legislative, regul ator y and corpor ate governance developmen ts andmakin g rec ommen dation s to the Boar d; and en surin g that the C ompany obse r ve s the st andard s and disclo sures rec ommen de d by the UK C or po rate Gove rnan ce Code . I am pleased, as Cha ir of the Nomin ation and Corp orate Gover nance Commi t tee , to providedetai l of the Committee’ s principa l roles and responsi bilities and repor t on the work done by theCommittee during the year . There are also upda tes below onBoard comp osition, diversit y , equity and inclus ion (DEI ), a nd this year’ s internal Board eval uation. Members Mike Rogers (Chair) Dr Ruba Borno Alison Brittain Caroline Donahue Luiz Fleury Jonathan Howell Deirdr e Mahlan George Rose Quic k facts a Mike Roger s has chaire d the C ommit te e since July 201 9 . a T he B oar d consid ers t he Co mmit tee memb ers to b e inde pen dent non - exec uti ve dire cto rs , in line w ith theUK C or po rate G over nanc e Co de. a T he C ommit te e met si x time s during theye ar end ed 31 March 2022. a T he C hief Pe op le O ce r , the C hief Communications Ocer and the Chief Dive rsit y, Equit y and Inclu sion O ce r were inv ited to a t tend ce r tain m eetin gs . a T he C hief E xec utiv e O cer is al s o invite d to at tend m eet ings and p rovi des valuable inp ut to the dis cus sions . Quick link experianplc.com/ about-us/corpor ate- governance/board- committees/ Th e Commi t tee’s key role is to moni tor theB oar d’s balanc e of skill s , kno wle dge, exp eri ence an d diver sit y, and a key resp onsib ilit y of th e Commi t tee is to ensur eplan s are in pl ace f or or der ly Bo ard succ essi on. T he C ommit te e regul arly rec eiv es and r evie ws upda tes on t he str uc ture , size and comp osit ion of the B oar d and it s commi t tees , to ens ure cri tical sk ill s and exp er ienc e are appr opr iately ref re shed . Th e Commi t tee re view s any skill s gaps and Boar d comp ositio n (and Boar d memb ers’ exp er tis e, dive rsit y an d tenure) to allow fo r smoo th succ es sion pl anning. A f ocus of th e Commi t tee dur ing the y ear was Au dit and Remuneratio n Commit te e chairship succ es sion, an d ensur ing tha t we had s tron g candi dates to r epla ce D eirdre Mahl an and Ge org e Rose re spe ct ively, who wil l both retir e fro m the B oard a t the A nnual Gen era l Mee ting in July 2022. O ur mo st re cent Boar dapp ointment s ( Al ison B rit t ain and Jonathan Howell) were made with this succ essi on in mind, an d to allow ea ch to have su cient tim e as memb ers of th e Remuner atio n Commi t tee and A udit Commi t tee re spe ct ively to b e appr opr iately prep are d and induc te d to take on th e role ofCommi t tee Chair . C ommit te e memb ers areloo king fo r war d to continuin g the Commi t tees' s tron g contr ibuti ons to theGr oup unde r Alis on and Jo nathan. Th e Commi t tee has al so maint aine d it s foc uson th e execu tiv e talent p ipel ine and seni or ma nage ment success ion pla ns, refle c ting th e Boar d’s resp onsibil it y to ensure ap pro priate p lans ar e in pla ce. Asucc es sion pl anning up date was p rov ide d at a number of C ommit te e mee tings . Include d in the up date s were analys es ofexec utiv e managem ent suc ces sion cover age . Th e Commi t tee pl aye d a centr al role in th e re comme ndatio n to the B oard of Crai g Boun dy to r epla ce Ker r y W illiam s as an execu tive dir ec tor of th e Comp any , and as the Exp erian Group Chief Operating Ocer . Dive rsit y, equit y an d inclusion ar e es sential to E xpe rian’ s pur pos e, and th e Commi t tee rec eive d and dis cus sed a d etaile d upda te fro m our Chie f Peo ple O ce r , Jack y Simmond s, and o ur Chief D iver sit y, Equit y and Inclusi on O cer , Wil L ewis , in Januar y 2022. E xpe rian is fo cus ed on s ever al dimensi ons of wor k forc e dive rsit y (in cludin g race/ethnicity , gender , age/generation, workin g parent s/famili es and LGB TQ+). Th e Commi t tee note d that th e busine ss w as str ong in ter ms of emp loye e commitm ent, having an in clusive cu lture and di ver sit y andinclusi on initiat ive s, and t hat ac tion s were bei ng tak en reg ardi ng represen tation, DEI dat a and har nes sing re gional e or ts tomaximis e impac t . T o f ur the r str engt hen our e or t s acr os s DEI we hav e set fi ve commit ment s to tra ck pro gre ss a gainst , and thes e have be en share d bot h internally an d ex ternal ly . Th es e are: Ac tiv e spons or ship; Better understa nd o pportuni ties and challeng es; M easur e pro gres s agains t spe cific go al s; Ensur e acco untabil it y ; andSupp or t ing our p eo ple. Th e Commi t tee co nsider ed th e pro pos ed re - ele cti on of dire cto rs (wi th the e xceptio n of the re tirin g Kerr y William s, D eirdr e Mahlan and Ge or ge Rose) at th e Annual G ene ral Meeting, recommended Luiz Fleur y’ s re -app ointme nt for a f ur th er thre e -ye ar term , rev iewe d the dr af t c orp or ate gover nanc e se cti on of the A nnual Rep or t , and rev iewe d var ious co mpany law an d governance updates. A s noted e arl ier in th e Cor po rate g over nance rep or t , the C ommit te e als o rev iewe d a pe ople s tra teg y , talent an d cultur e update during th e year . The Committee was in place throughout the year en ded 31 March 2022. 111 Experian plc Annual Report 2022 Gover nance Code principle Composition, Succession and E valuation Nomin ation and Corporat e Govern ance Commi ttee repor t contin ued May 2021 July 2021 September 2021 November 2021 January 2022 March 2022 a D isc uss ed an up date on th e agr ee d fo cus are as fr om th e F Y21 Board evaluation. a D isc us se d Bo ard a nd committee structure, size and composition. a Re ce ive d an d con side re d a Bo ard succe ssion update. a Discusse d a deta iled AGM br ie fing f ro m the Company Se cretar y and th e Chi ef Communications O cer , inclu ding vot ing results , shareholder feedback and engagement that had taken p la ce in th e lea d- up to th e AGM. a Contin ued importan t discus sions re gardin g Board succession, wit ha fo cus on plansregar ding theapp ointm ent ofanad diti onal non- executive d irector , and considered and confirmed the app ointm ent of a news ear ch fir m. a D isc us se d Bo ard a nd committee structure, size and composition, wit h a continu ed f ocu s on dive rsi t y and geogra phic represen tation. a Re ce ive d an d con side re d a Bo ard succe ssion update. a Discussed and considered the proposed F Y22 Board evaluation structure. a D isc us se d Bo ard a nd committee structure, size and composition, includin g the co ntinue d importance of cultu re, fit and int erna tional experience. a Discuss ed the poten tial retireme nt of an exec uti ve dire ct or and appointm ents . a Reviewed the Commit tee’s performa nce duri ng the y ear a gains t it s terms of reference andc oncl ude d tha t itwas o pe rat ing eecti vely . a D isc uss ed an up date on FY23 Strategic Pl annin g fr om a pe op le perspect ive, and t he progress agai nst la st year’s plans. a Reviewe d and discus sed a P eop le Stra teg y, T alent an d Cultur e update. a Reviewe d an update ondiv ersi t y, equit y andinc lusion , out linin gth e E xp er ian philos ophy and approach. a Reviewe d and discus sed e xecuti ve succ essi on, in cluding succession planni ng for s eni or lea der s . a C onsidered and re comm end ed to t he Bo ard th e app ointm ent of Cr aig B ound y as Chief Operating O cer and as an executive direc tor of t he Company. a Re cei ve d an upda te on the p ro gre ss o f a non- executive d irector searc h. a Recommended the re -app ointment of a dire cto r for a f ur th er appointm ent term. a Re ce ive d an d con side re d a Bo ard succe ssion update. a Re co mmen de d to the Bo ard th e dire ct ors tobe c onsi der ed fo r re- elec tion at the 2022AGM. a C onsidered the annual company law and governance update. a Re co mmen de d to the Bo ard th e app ointm ent of Al iso n Bri t tain a s the Company’s Senior Indep endent Dire ctor and a s Chair of t he Remun er ati on Commit tee and the appointm ent of Jonathan Howell as Chair of t he Audi t Commit tee . Commit tee ac tivities in F Y22 Experian plc Governance 112 Code principle Composition, Succession and E valuation A s at 1 May 2022 Whe n making B oard ap pointm ent s, th e Commi t tee re view s and appr oves an o utlin e bri ef and ro le spe cific ation , and app oint s one or mor e sear ch agent s fo r the as signment . Wedisclose t he name of th e sear ch agent andany oth er conne c tion th ey have wit h E xp erian in th e An nual Repo r t fol lowin g the appo intment . The sp ec ific ation and t he sear ch are disc uss ed wi th the s earch a gent s, w ho then pr epar e an initial lon glis t of candida tes . Th eCommi tt ee defin es a sho r tlis t and holdsinte r vi ews. Ult imately, the Commit te e makes are com men dation to t he Bo ard fo r it sconsi dera tion . Follow ing Bo ard app roval , the app ointm ent is announ ced in l ine wi th the requir emen ts of th e UK Finan cial Con duc t Auth ori t y's (FCA’ s) L ist ing Rules . In due c ours e, a tailore d induc tio n pro gramme is d evelop ed for th e new dir ec tor . We engag ed Rus se ll Reyn olds as th e spe cialis t sear ch firm involved with the recruitment of Jonathan Howel l, w hos e appo intment b ec ame e ec ti ve during t he year . Th ey al so pro vid e other execu tiv e sear ch ser vice s to the Gr oup. Proces s for Boar d appo intments Board , and executive commit tee (and direct repor ts) , compositio n Step 1 Committee reviews and approves an outline brief and role specific ation and appoints a search agent for the assignment Step 4 The Committee makes a recommendation to the Board for its consideration Step 2 The agent prepar es an initial longlist of candidates Step 3 The Committee then considers a shortlist and we hold interviews Step 5 F ollowing Board approval, the appointment is announced in line with the requir ements of the FCA ’s Listing Rules Balance of executiv e and non-executiv e directors Independent Chair Executive Independent non-executive Total number of directors 11 1 3 7 Ethnicity of the Board White – European White – North American Non-white ethnic group – Arabic Non-white ethnic group – South American Total number of directors 1 6 3 1 11 T enure of the Boar d <1 year 1 to <3 years 3 to <6 years 6 to <9 years 9+ years Total number of directors Average Board tenure 3 3 1 1 3 6 years 3 months 11 Non-exe cutive director skills Financial services Consumer Technology/Information Consumer packaged goods Manufacturing/Large projects Financial expertise Serving listed company executive 1 1 4 3 3 3 3 Gender diversity of the Boa rd Men Women Total number of directors 7 (64%) 4 (36%) 11 Gender diversity of ex ecutive committee and dir ect reports Men Women 72% 28% 113 Experian plc Annual Report 2022 Gover nance Code principle Composition, Succession and E valuation Nomin ation and Corporat e Govern ance Commi ttee repor t contin ued Board composition Th e Boar d comp ris es th e indep end ent Chair , Mike Roger s, t hre e execu tiv e direc tor s and sev en inde pen dent n on- e xecu tive dir ec tor s, includin g the D eput y Chair , Ge org e Rose. Ge org e is als o the C hair of the Rem uner ation Commi t tee. D eirdr e Mahlan is th e Chair of the Audit C ommit te e and Mike Rog ers is th e Chair of the No mination an d Cor po rate G over nance Commi t tee. T he No mination an d Cor po rate Gove rnanc e Commit te e re gular ly evaluate s Boar d comp ositio n fro m a number of perspect ives, i nclud ing dive rsity a nd or derly succ es sion. A s m ention ed e arli er , Ker r y Will iams, D eirdr e Mahlan an d Ge orge Ros e will retir e fro m the B oard a t the co nclusion of t he Annual G ener al Me etin g in July 2022. Alis on Bri t tain and J onathan How ell wer e appo inted with c ommit tee chair ship suc ces sion in mind , to take on th e rol e of Remuner ati on Co mmit tee Chair and Au dit Co mmit tee Chair r esp ec tiv ely. In addi tion , Alis on Br it tain has b een ap pointe d as Seni or Inde pen dent Dir ec tor wi th e ec t fro m the co nclusio n of the A nnual Gen eral Mee ting in July 2022. In Januar y 2022, we announc ed tha t Crai g Boun dy wa s to repl ace Kerr y Will iams as an exe cuti ve dire cto r of the Comp any wit h ee ct f rom th e con clusion of th e Annual G ener al Me eting , and as th e E xp erian Grou p Chief O per atin g O ce r with e e ct f rom 1 Apr il 2022. Induction and training Th e Comp any has pro ce dure s to ensur e newly appo inted dire c tors r ece ive a fo rmal indu ct ion, and this invo lves m eetin gs wit h senio r execu tive s and f unc tional le ader s. A t ailore d induc tion p rogr amme is de signe d for ea ch new no n- e xecu tive dir ec tor w ho join s the Boar d, to en sure th ey are e quippe d wi th a founda tion of kn owle dge an d mater ials nec es sar y to a dd valu e. Indi vidual in duct ion pro gramm es are usual ly compl eted w ithin the firs t six mont hs of a dire ctor ’s appointme nt and the C ompany S ecr etar y p rov ides assistance and support throughout the induc tion p roc ess . T he pro gramm es are reviewed reg ularly to conside r directors ’ fee dback an d are co ntinually up dated and improve d. On 1 May 2021 , Jo nathan How ell jo ined t he Boar d as an ind epe ndent n on- e xecut ive direc tor . J onathan’s inductio n se ssion s were held f rom S eptemb er 2021 to Januar y 2022, with f ollow - on ad h oc me etin gs as re ques ted . All s es sion s were h eld wi th th e rele vant business or regional leader (for Bus iness/ Operations updates) and relevant functional execu tive f or the C or po rate/Go vernan ce update s. P re -r eadin g/view ing mater ial was made avail able , includin g 'E xp er ian the s tor y so far … A histor y of E xpe rian' and Gro up strat egy prese ntat ions. A summar y of the presentations/ meetings held (in cluding p ro duc t demo ns trat ions a s appropriate) is as follows: Business /Opera tions – briefings , re gional andglobal b usine ss ove r vi ews and pr odu ct demo nstr atio ns in re spe ct of a numb er ofbusine ss ar eas , includin g: Con sumer Information Ser vices , Decision Analy tics, Ver tical Mar ket s, as w ell as bu sines s market and financial over v iews. Corpora te /G ove rnan ce – fo cuse d br iefing s oncorporate governance; global corporate resp onsibil it y ; global finance ; str ateg y , competition and corporate development; investor relations; communications and brand; ex ternal an d internal a udit; r egul ator y, risk , compl iance and go vernm ent a airs; and remune rati on and glob al human res ourc es . In Januar y 2022, th e Boar d hel d it s mee ting in our op era tional he adquar ters in Co sta M es a, Cal ifor nia . As p ar t of th is visit , our t wo m os t rec ently app ointe d non - execu tive dir ec tor s, Alis on Br it tain and J onathan Ho well , trav elle d to San Di ego , Cal ifor nia and r ec eive d a tour ofthe E xp er ian Data Lab w hich inclu ded demonstrations from senior management onthe E x per ian A scen d T e chnolo gy Pl at for m, ar tifi cial intelli genc e and Signal Hub. T he y als o met and ha d lunch w ith emp loye es of th e DataL ab . This gave A liso n and Jonat han a goo d opp or t unit y to en gage w ith ta lent wi thin the busine ss an d exp eri ence o ur culture . At this time, J onathan al s o under took a f ur the r induc tion s es sion fo cusin g on Internal A udit with N or th A me ric a’ s Regio nal Hea d of Internal Audit , and US Re gulato r y and L iti gation w ith senio r membe rs of E xp er ian’ s le gal team, together with the CEO of Nor th Americ a. Diversity Our co re philos ophy is t hat our emp loye es ar e pe ople fir st , and we wel come p eo ple of all backgr ounds to b rin g their w hole s elve s to E xpe rian. T he B oar d’s diversi t y pol ic y is unchange d. We st rongly b eli eve that div ersi t y thro ughou t the Gr oup and a t Boar d leve l is a dri ver of busin es s succ ess . We re spe ct , value and welc ome all f or ms of diver sit y, and see k torefle c t the di vers it y of our cl ient s, inve sto rs and empl oyee s in our B oard . We recr uit talente d Boar d memb ers , wh o have the appro pria te mix of skill s , cap abilit ies an d market k nowle dge to e nsure th e Bo ard is ee cti ve. W hen r ecr uitin g, we loo k acro ss allse cto rs and n on- tra ditio nal talent p oo ls , and we re quire di ver sit y on o ur candi date shor tlis ts . Although we do not pu blish specific Board diversit y targets , the female representation of the B oard is 3 6 %. We al so cont inue to moni tor closely t he numbe rs subm it ted as p ar t of the F TSE Wom en Le ade rs Rev iew ar ound t he posi tion of our e xecut ive co mmit tee an d their direc t re por ts . Th e pro por tion of wom en in this pop ulat ion cur rentl y stan ds at 28%. A s pa r t of our commi tment to c ontinue to imp rove gend er diver sit y, our targ et s in this area ar e set o ut on p age 56 of t he A nnual Repo r t and the se wil l ensur e a st rong p ipel ine of wo men for our s enio r posi tions o ver time . In addi tion , the Marc h 2022 Par ker Revie w Commi t tee update r egar ding ethni c diver sit y c onfirm ed that we met their Boar d ethnic diversity recommendations. We recognise the signific ant be nefi ts of a di vers e Bo ard and , when r ecr uitin g, wil l continu e to see k to addr es s any diver sit y gap s on our B oard , including g ender and ethnici t y. A s well as th e Bo ard p olic y ou tline d abo ve, th e Group’s Co de of Co nduc t f ur th er out line s our appro ach and h ow we think ab out di versi t y. Weunder stan d the f undame ntal valu e that diver sit y, equit y and in clusion b ring to o ur busine ss , and th ere are many o ngo ing initiat ive s to supp or t a w ork e nviro nment in which ev er yo ne is tr eated w ith f airne ss an d resp ec t , has equal a cce ss to op po r tunit ies andre so urce s, and c an co ntrib ute ful ly to oursuc ces s . At E xpe rian , we embr ac e diver sit y an d appre ciate di er ent per spe c tive s and the uni que valu e each emp loye e brin gs . Fundamental ly , we do not dis criminate agains tanyone b ase d on r ace , colour , reli gion , gender , sexual orientation, gender identity orexp re ssio n, nati onal or igin, dis abili t y , age ,cover ed v etera n sta tus , or any oth er charac ter isti c prote cte d by law. We are dedi cate d to prov iding a s afe , healthy an d productive wor k environment for all employ ees . We are commi t ted to re spe c ting and pro motin g human right s and w e do not toler ate any infr ing ement of th es e right s in ourbus ines s or our s upply chain . Th e Co de ofCon duc t applie s to ever yone at E x per ian, includin g contr ac tors , supp lier s and ot her s who do b usine ss w ith us . Cont ra ctor s and suppliers per for ming work on behalf of E xpe rian are e xp ec ted to co mply wi th the l aw and the p or tions of the G roup’s Cod e of Con duc t that app ly to them . Experian plc Governance 114 Code principle Composition, Succession and E valuation The UK Corporate Governance Code specifies that the Board should undertake a formal andrigorous annual evaluation of its own performance and that of its committees and individual directors, and that the Board should also have an externally facilitated evaluation at least once every three year s. FY22 was Y ear3 of our Board’s three- year review cy cle. InFY20, an independent external ev aluation was conducted by Manchester Square Partners to pr ovide the Board with greater insights into itsperformance and to identify opportunities to further increase and impr ove its overall eectiveness. The FY21 evaluation (the second year of ourcycle) involved the Boar d performing aninternal evaluation of progr ess against the areas of focus and the r esulting actions, as well as agreeing new ar eas of focus for the coming year . This year , the thir d year of the cycle, a questionnaire-based internal evaluation was undertaken. In December 2021, Boar d members received an onlinequestionnaire about the Boar d’s performance in several ar eas. These included: Board composition and succession; Board dynamics, expertise; time management, agenda, meeting papers; strategic over sight; competition; operational oversight, risk management and internal control; cultur e; executive remuner ation; technical development; and FY22 focus areas. The results of the ev aluation, including Board members’ comments in each ar ea, were pr esented to the Board at its January 2022 meeting and it considered and discussed the results. In addition, the Boar d evaluated its performance against the areas of focus it had agreed as part of the pr evious year’s evaluation. The Board concluded that it was oper ating eectively and also agreed focus ar eas for the coming year (to 31 March 2023) and noted the progr ess against the previous year’s focus areas. Board members also noted in the evaluation the importance ofthetransition to the new Audit and Remuner ation Committee Chairs, with both having spent over one year on the r espective committees by the time of their appointment, and having extensive relev ant experience, including financial and governance. The ongoing potential recruitment of a further non-executive director was also highlighted in the evaluation by Board member s, and this work is expected to continue during theyear ending 31 March 2023. Nom ina tion and Corporat e Gov ernan ce Co mmi tte e/ Board Th e Commi t tee wa s asked at i t s Septe mber 2021 me eting to p rov ide inpu t into the s tr uc ture of, and top ic s for , th e evaluat ion of th e Bo ard (a questi onn aire-based int erna l eva lu ation ). At it s Januar y 2022 me etin g, the B oar d consi dere d the r esp ons es and o utpu t fro m the B oard e valuatio n ques tionnair e, and r evi ewe d the pri or year ’s focus ar eas . At it s March me etin g, the C ommi tte e con sider ed ar eas of fo cus fo r the ye ar endin g 31 March 2023. Commit tees A per forman ce evalua tion disc ussio n was inclu ded o n the ag endas of t he Bo ard co mmit tee s, sup por ted by an analysis of h ow each commit te e was p er f ormin g agains t the key ar eas in it s ter ms of re fere nce . Each of th e Bo ard co mmit tee s conc lude d that it wa s op erating eectively. Individual dire ctors Mee tings we re he ld bet w een e ach dire cto r and the C hair in Febr uar y an d March 2022, in re lati on to each dir ec tor’s per forman ce. Th e Dep ut y Chair and S enio r Indep end ent Dire c tor evaluate d the C hair , tak ing ac count of inpu t fr om othe r direc tor s. Board evaluation Y ear 3 – FY22 Questionnaire-based internal evaluation Y ear 1 – FY20 Evaluation by external facilitator Y ear 2 – FY21 Internal review against detailed Y ear 1 review This y ear’s internal ev aluatio n was s tru ct ured a s foll ows: 115 Experian plc Annual Report 2022 Gover nance Code principle Composition, Succession and E valuation Area Focus Progress Culture and Social capital a A s t he B oar d con clude d in it s F Y 21 internal e valuat ion , the Bo ard has c ontinu ed to o per ate e e cti vely d esp ite no t mee ting to get her phy sica lly sinc e Januar y 2020 . Since th at time , t wo new in dep en dent n on- e xecu tiv e dire cto rs hav e joine d th e Bo ard . a A ltho ugh th er e may be s om e chan ges to t he wa y the B oa rd ope ra tes in th e fu tur e, th e Bo ard r ec ognis es t he imp or t anc e of rem aining cl ose ly con nec te d wi th the b usin es s and fell ow dire cto rs , in or der to le ad by ex ampl e and co ntinue topro mote an d moni tor th e des ire d cultur e thro ugho ut theG roup . a T he B oa rd inten ds to fo cus o n ways to f ur t her s tr eng the n the cu lture a nd re build s ocia l cap ital to e nsur e that th e str on g cultur e of the B oa rd is n ot impa cte d by th e CO VID -1 9 pan demi c, an d that i t contin ues to o per ate a s a high- per fo rming co llegiate team. a Two new Bo ard m emb er s join ed t he B oar d in Sep temb er 2020 and May 2021 , whe n COV ID - 1 9 p ande mic mat te rs were e leva ted. B oth ha ve suc ces sf ully on boa rde d, inc luding a phas e of r igo rous in duc ti on. a B oard meetings in FY22 were split betwe en video par ticipa tion a nd me etin gs in p ers on . Th e Bo ar d evalua tio n note d the im por tanc e of me etin g toge the r in per so n as a team , and th e Bo ard w ill c ontinu e to make eve r y e or t to dothis d urin g the y ear to Mar ch 2023, de pen ding on t he st atu s of the C OV ID - 1 9 p and emi c. a P hysic al B oar d me eting s took p la ce this y ear in Du blin , Washing ton , DC an d Co st a Me sa , Cal ifo rnia w it h the pot ential fo r the se m ee tings to b e he ld in pe rs on co nsid ere d in det ail by th e Chair , Chi ef E xec uti ve O c er an d the Com pany S ec ret ar y, in the co ntex t of th e COV ID -1 9 pan demi c. W ith e ach m eet ing, t he aim r emains to f ur t her str eng the n the c ulture a nd re build s oc ial cap ital , an d this was a chiev ed t hro ugh num ero us me eti ngs an d net w or kin g event s w ith re gio nal manag eme nt and tea m memb er s, an d busines s update pre sentations . Environmental, Social and Governance (ESG) a T he G roup c ontin ues to p ro gre ss a num ber o f ambi tiou s pro gra mme s of E SG - cent re d ac tiv iti es , whic h inclu de considerations around cl imate chan ge, g end er and ethni cit y, divers it y, pay , moni tor ing of sup pli ers , rep or ting fr ame wor k s, an d the p osi ti ve ro le of th e Gro up and da ta inso ciet y. a T he B oa rd , thro ugh i ts o ver sight of t he Gr oup’s str ate gy andit s r esp onsi bili tie s, w ill cont inue to ev aluate h ow ES Gis sue s a ec t key as pe ct s of t he b usine s s and w hat E xp er ian’s ambitio ns an d goa l s sho uld b e as a lon g- ter m sustainab le busines s. a T he B oa rd has ma ter ially incr eas ed i ts o ver sight of E SG mat ter s dur ing th e yea r . B oar d rep or t ing wa s upda ted dur ing th e year to in clud e an ex ten de d ES G se c tio n in the Chief E xecut ive O cer ’s repor t, to high light th e pro gr es s mad e in this ar ea by t he Gr oup. a T he B oa rd’s st rate gy p re sent ati ons in Janua r y 2022 inclu ded ma ter ial s on th e Grou p’s ESG st rat eg y , highl ightin g for th e Bo ar d the si gnifi cant p rog res s on E SG p er for manc e, commitment s, communication and dis closure. a A d edic ate d E SG s tra teg y rev iew p re sent ati on was m ade tothe B oar d at it s Mar ch 2022 me etin g, by th e new ly app ointed C hief Su st ainabili t y O ce r . Highl ight s note d inclu ded fi nalis ati on of dat a pr iva cy p rin cipl es , and th e Board reviewe d and approved the development and implementation of suppor ting metrics and target s. a T he G ro up now ha s a for mal E SG St eer in g Com mit te e, chaire d by L loy d Pitc hfor d, th e Gro up’s Chief Fina ncial O ce r . It i s char ge d wit h dev elo pme nt of E xp er ian’s ESG str ate gy, integr ate d metr ic s an d tar get s fr am ewor k s, an d over se es t he E SG pr ogr amm e, thr ou gh var ious in div idual wor k str eam s, e ach of w hic h is spo ns ore d by a m emb er ofthe G rou p Op era ting C omm it te e. Area Focus Board and management succession A key focus area for the Nomination and Corporate Governance Committee in FY22 was executive, and Board Senior Independent Director (SID) and Committee Chair, succession. During FY23, Kerry Williams will transition out of his role asChiefOperating Ocer (COO), and retire from the Board at the Annual General Meeting in July 2022. Craig Boundy willsucceed Kerry as COO, and be appointed to the Board on Kerry’s retirement. In addition, Alison Brittain will become SID andRemuneration Committee Chair, and Jonathan Howell will be appointed as Audit Committee Chair. Given the importance ofthese roles, the Board and Nomination and Corporate Governance Committee will closely oversee and monitor the appointments and transitions, and will also provide input on Group Operating Committee roles, including areas for development. Regulation The Board and Audit Committee receive regular legal, regulatory and compliance updates, including the activities of key regulators such as the UK Financial Conduct Authority and the US Consumer Financial Protection Bureau. These updates areprovided by the Group’s General Counsel, and the Board and Audit Committee have noted a recent potential increase inregulatory activity globally. Below Board level, these matters are kept under ongoing review throughout the business. TheBoard and Audit Committee will continue their close monitoring of the position, including latest developments, impactsonthe business and progress with regulatory engagement. Nomin ation and Corporat e Govern ance Commi ttee repor t contin ued Progres s against the fo cus areas highlighted in the F Y2 1 review F Y23 focus areas agree d in the F Y22 review Experian plc Governance 116 Code principle Composition, Succession and E valuation Audit Committee repor t Deirdre Mahlan Chair of the Au dit Co mmit tee I am pleased to report on the Committee' s ac tivities du r ing the year , my fin al year serving on the Committee and the Board. It has been a privilege to be part of this great organi sation. Members Deirdr e Mahlan (Chair) Dr Ruba Borno Alison Brittain Caroline Donahue Luiz Fleury Jonathan Howell George Rose Quic k facts a Deir dre Mahlan ha s chaired t he Commi t tee sinc e Januar y 201 5. Deir dre is a qualifi ed ac counta nt with an MB A and has many ye ars’ exp er ienc e in senio r finance ro les , mos t re cently as C hief Financial O c er of Dia geo p lc. a Jonathan Howell will succeed Deirdre asChair wi th e ec t fr om 1 July 2022. a A ll memb ers of t he Co mmit tee ar e independent non-executive directors andthe B oar d consi der s them to have anappro pr iate level of e xp erie nce . a D eirdr e Mahlan , Geo rge Ros e and Jonathan H owell ar e consi dere d to haverec ent and relev ant financial exp er ienc e, in lin e wit h the UK C or po rat e Gove rnan ce Code . a T he C ommit te e met f our time s durin g the ye ar , wit h each s chedul ed me etin g time d to coin cide wi th key date s in theGr oup’s financial r epor ting and auditc ycle . a Regul ar attendee s at meetings include the Chair , the exe cut ive dir ec tor s, th e Group G ene ral C ouns el , the He ad of Global Internal Audi t, the Global F inancial Cont rolle r , the Gl obal Chi ef T e chnolo gy O cer , the Chi ef Infor mat ion Se cur it y O cer an d repr es entat ive s fro m KP MG LL P (the ex ter nal audi tor). Ot her invi tee s include t he Gro up Chief Risk O cer andDir ec tor of Co rp or ate Financ e. a At t he end of e ach sch edule d me eting , the ex ter nal audi tor and th e Head of Global Inte rnal Au dit me et wit h the Commi t tee to disc uss any mat te rs with out mana geme nt bein g pre sent . a T he C ommit te e is auth oris ed to s eek out sid e legal o r othe r indep end ent profess iona l advice as i t sees fit. Committee’ s ke y roles and responsibilities Th e Boar d bel ieve s the Au dit Co mmit tee tobea ce ntra l pillar f or e ec tiv e cor po rate gover nanc e by prov iding in dep end ent andimpar t ial oversi ght of the C ompany’s relev antfun cti ons . Th e Commi t tee's resp onsibili ties inclu de: a M onitor ing th e integr it y of the finan cial statement s and reviewing significant financial rep or t ing judgm ent s cont ained inthem . a Rev iewing inter nal financial contr ol s and theGr oup’s internal contro l and r isk managem ent sy stem s. a Re view ing th e ee c tive nes s and qual it y oftheau dit pr oce ss an d the in dep ende nce and obj ec tiv it y of the e xte rnal au ditor . a M onitor ing an d rev iewin g the e ec tiv ene ss ofthe inter nal audi t func tio n. a D evelo ping and impl ementin g pol icy on engagin g the ex ternal au ditor to supp ly non -audi t ser vice s, t aking into a cco unt relevant guidance. a A ppr ovin g the ex ter nal audi tor’s remun erat ion and te rms of e ngage ment , andmakin g rec ommen dation s abou t it s re -appo intment . Quick link experianplc.com/ about-us/corpor ate- governance/board- committees/ Introduction Th e pur pos e of this re por t is to des crib e howth e Commi t tee has c arr ie d out i ts resp onsib ilitie s dur ing the ye ar . Our overarching objec tives include ensuring the integr it y of the G roup’s financial repo r tin g, that any judgm ent s made ar e appro pr iate, that the e x ternal a uditor is e ec ti ve in it s role , and b eing ro bus t in ensur ing tha t we have an ee ct ive inter nal contr ol fr amew ork to manage th e risk s E xp er ian face s. Dur ing th e year en ded 31 March 2022, theC ommit te e has ens ure d that it has hadover sight of all of t hes e area s with par t icular f ocus o n a ran ge of pr incipa l andeme rging r isk s such as c yb er s ecur it y, data manag ement an d pri vac y, fraud an d regulatory compliance. We received upd ates during t he year f rom b oth inter nal audit an d KPM G on th e impac t CO VID - 1 9 had o n audit ac tiv itie s and adjus tm ents ma de in wor kin g pra cti ces to al low for r emote wo rkin g, and were satisfie d with actions taken. In addition, the C ommit te e has re ceiv ed re gular r epo r t s on internal a udit s, b usine ss inte grit y an d contr ol s assur ance w ork , comp liance allegation and in ves tigation processes , aswel l as update s on th e ste ps be ing takento a ddre ss inter nal audi t finding s, controls issues and investigations. This r epo r t al so co ntains de tail s of the signific ant iss ues we c onsid ere d in rel ation to the financial s tate ment s and ho w the se were a ddre ss ed , and our p roc es s for conc luding tha t this An nual Repor t is fair , balan ced and un der stan dable. The Committee was in place throughout the year en ded 31 March 2022. 117 Experian plc Annual Report 2022 Gover nance Code principle Audit, Risk and Internal Control Audit Committee repor t contin ued May 2021 September 2021 November 2021 March 2022 a Reviewe d the prelimi nar y results announcem ent and the Annual Repo r t , and p ape rs in r ela tion to: – year -end accounting m atters – the preparation of the financial statement s on the going con cer n ba sis (s ee a ls o no te 2 to the Group financial statement s) – the ma king o f a viabil it y statement recomm endation tothe B oar d – the f air , b alan ce d and understa ndabl e assessme nt – the ma king of manageme nt represen tation s. a Re vie we d the 2021 Ann ual Rep or t to ensur e it wa s fair , bal anc ed an d unders tandable and provide d information enabling an ass e ssm ent of E x pe ria n’ s po siti on and performance, business model and str ategy. a Reviewe d the Risk Management Framework and Summar y of Ass ur an ce. a Reviewe d the external auditor’s year-en d rep or t , including independence considerations. a Reviewed non-audit fees . a C on side re d the F Y22 ex ter nal audi t pla n with t he ex te rnal audito r , inc luding i ts s cop e an d materia lit y . The plan included the ex ternal au ditor’s resp ons e to developments in the business dur ing th e yea r , de vel opm ent s inthe au dit pr oc es s, t he Gr oup’s ris k ass e ssm ent an d the c ove ra ge of the au dit . a Reviewed the eec tiveness of the ex ter nal audi tor (s ee pa ge 1 20 ‘E x ternal au ditor’ ). a Ev aluate d th e per for manc e of theGl oba l Inter nal Au dit f unc tion (se e pag e 1 20 ‘ Inter nal audi t’) an d ass es s ed th e impa ct o f COV ID - 1 9. a Reviewed the Compliance Managem ent Pro gramm e over view from the Global Head ofCo mpl ianc e; as se ss e d the Co mpl iance t er ms of r efer en ce and recei ved annual compliance training. a Reviewe d fraud and Confidential Helpline upd ates. a Reviewed the Group’ s T reasur y Policy. a A pprove d the Commit tee’s annual meeting schedule and reviewed the Commit tee’s per for mance again st i ts t er ms of r efer en ce. a Re ce ive d a br ie fing o n the proposed Internal Controls overF inancial Re po r ting (ICF R)re quirem ent . a Re cei ve d an upda te on th e newInf orm atio n Sec uri t y Risk Managem ent fr amewo rk . a Revi ewed the half-yearly financial repo r t announc ement, an d paper s in relation to: – half-year a ccount ing mat ter s – the preparation of the half -yearly repor t on the going concern basis – a fair , bal anc ed an d understa ndabl e assessme nt – the ma king of manageme nt represen tation s. a Reviewe d the external auditor’s half-year r epo r t, in cluding independence considerations. a Re vie wed th e pr incip al acc ountin g policies, pre-year-end accounting mat ter s and up date s on th e year-end financial statement s andfinancial review. a Reviewe d the external auditor’s pre -y ear-end r epo r t, in cluding sco pe , st atus an d cont rol s findings . a Reviewe d the Global Internal Aud it stra tegy and annual plan . a Reviewed the Group’ s non-audit fe e pol ic y and t he Gr oup au dit fe e. a Reviewed the Group’ s T ax Policy. a Reviewed Confidential Helpline update. a C onsi dere d the r e-ap poi ntment ofthe e xt erna l audito r . a Re view ed an Info rma tion S ec uri t y update fro m the Ch ief Infor mat ion S ecur it y O cer at e ach sch edule d me eting . This is a stan ding ite m on the C ommit te e agen da, given i ts imp or t ance to t he Gro up. a Re view ed f ull or summar y Risk Managem ent upda tes at ea ch me eting , includin g sta tus of and chan ges to th e Group’s princip al risk s , material l itigati on, regulatory developments and details of any emer ging r isks . a A n inter nal audit up date wa s pre sente d bythe H ead of Glo bal Inter nal Audit ateach m eet ing, an d discus se d by th e Commi t tee, in cluding th e sta tus of th e audit p lan, a uditfindin gs and th eme s inthe re por ting p eri od, an d pro gre ss onany over due au ditac tion s. All meetings Commit tee ac tivities in F Y22 Experian plc Governance 118 Code principle Audit, Risk and Internal Control Th e table b elow summar ise s the signi fica nt mat ters c onsid ere d by the C ommit te e in rela tion to th e Group an d Comp any financial s ta tem ent s andthew ay they we re con clude d. T he se mat ter s, to geth er wi th any othe r signific ant con sider atio ns of the C ommit te e, are r epo r te d to th e Boar d. Th eminutes of ea ch Audit C ommit te e me eting ar e al so circul ate d to all memb ers of t he Bo ard. Matter considered Challenge and conclusion Tax The Committee received a regular update from management on the adequacy of provisions in respect of significant open tax matters. The review included details of ongoing correspondence with tax authorities in the UK, the USA andBrazil and the principal areas of tax challenge. The Committee agreed that the assessment of the uncertain tax positions was appropriate and that the judgment taken in respect of the year-end provision in the Group financial statements was reasonable. The Committee also noted the evolving and complex tax laws that applied tothe Group and the uncertainty that these might bring. It concluded that theGroup tax risk disclosures were appropriate. Impairment review – goodwill and other intangible assets A summary of the annual impairment analysis and underlying process was provided to the Committee. Particular attention was given to EMEA and Asia Pacific, where restructuring activities were ongoing, with uncommitted restructuring activities needing tobe excluded from the forecasts. The recoverable amounts of the assets of all segments continued tosuciently exceed their carrying amounts. The Committee scrutinised the methodology and assumptions applied bymanagement. The Committee challenged management on the changes to the forecast, particularly in EMEA, and on how management had ensured no restructuring- related savings were included in the model. The overall strategy for the impacted segments and the potential impacts that might be seen in future were also discussed. The Committee noted the headroom and the sensitivity to changes in assumptions and concurred with the proposed disclosure of these in note 20 to the Group financial statements. Impairment review – other assets A summary of the review process for other assets was provided to the Committee. The review indicated that an impairment was required in one of the Group’sassociates. The Committee scrutinised the methodology and assumptions applied by management. The Committee noted the changes in trading performance, against the forecast, of the associate and debated with management the future strategy for this investment. The Committee concurred with management’s conclusion that a write-down of the associate was required, and that the assets should be treated as held-for-sale. Acquisitions and disposals The Committee received an update on the acquisitions made during the year, notably the acquisitions of Gabi Personal Insurance Agency, Inc. and Tax Credit Co., LLC in North America. The disposal of our Russian operations and our associate stake in the Cheetah Digital business were also discussed. The Committee noted these acquisitions included elements of contingent consideration, and that an independent external valuer had assisted with thesevaluations along with those of the acquired assets and liabilities. The Committee challenged management on the allocation of goodwill to thedisposal of our Russian operations, noting the unique circumstances andthe impact of various methods that might be used for the allocation. The Committee approved the valuation of the acquisition intangibles andcontingent consideration, along with the allocation of goodwill to ourRussian operations. Litigation and regulatory matters The Committee received an update and analysis of open litigation and regulatory matters aecting the Group, including the enforcement notice fromthe UK Information Commissioner’s Oce. The Committee concluded that these matters had been appropriately provided for at 31 March 2022. The Committee considered and concurred with the proposed contingent liability disclosures included in the notes to the Group financial statements. Restructuring The proposed restructuring activities in EMEA and Asia Pacific were discussed with the Committee. In addition to the impact on goodwill impairment noted above, the Committee also considered whether any assets were held for sale, if restructuring provisions were required and noted the expenditure on restructuring activities. The Committee discussed in detail the strategy for the impacted segments and the timing of programme elements. Given the current stage of the activities the Committee concluded that no assets should be held for sale and no restructuring provisions recorded. The Committee concluded that the recording of the restructuring costs was appropriate. Significant issues 119 Experian plc Annual Report 2022 Gover nance Code principle Audit, Risk and Internal Control Audit Committee repor t contin ued Internal audit Th ere is an agr ee d four-year e valuati on cy cle for E xp er ian’ s Inte rnal Au dit fun cti on, th e str uc tur e of which is a f ull ex ter nal qualit y ass es sment ev er y f our year s, an d fol low- up interim ex ter nal quali t y ass es sment s and internal r evi ews in the inte r ven ing pe rio d. In Sept embe r 2021 , the C ommit te e rev iewe d the co nclusion s of an internal e valuatio n of In tern al Aud it, wh ich compri sed: int ern al quality assurance results; post-aud it stake hold er fe edb ack; ke y internal m etr ic s; self-ass es sment agains t the International Standar ds for th e Prof es sional Pr ac tice of Internal Au diting an d the C od e of Ethics b y theHe ad of Glo bal Inter nal Audit ; and a sur vey of prin cipal s takeho lder s for ar eas re quirin g improvement. All audits that h ad been ass es se d using Inter nal Audi t’s qualit y assu ranc e pro ce ss wer e rate d po siti vely, with str ong a dhere nce to s tandar ds and pr oc ess es . Th e st akehol der fe edb ack wa s str ong w ith Internal Au dit se en as highly e e cti ve, profe ssi onal and ind epen dent . The s ur vey resp ond ents hi ghlighted Inter nal Audit ’s stron g res ourcin g, pur po se and man date, and au dit deli ver y. A small number of op por tunitie s for development and improvements were noted insom e cate gor ie s, w ith key f ee dback f ocu se d on fur ther improvements in repor ting. Feed back rec eived from sta keh olders in resp ec t of F Y21 po st-audit r evi ews was posi tive , with a hi gh aver age r ating f rom resp on dent s, w hich was b roa dly in line w ith the previous year . Ex ter nal auditor T enure and tender ing KPM G LL P (K PMG) has be en th e Comp any’s audito r since July 201 6, f ollo wing th e conclu sion of th e audit ten der pr oc ess in Sep tembe r 201 5 . Th ere ar e curr ently no contr ac tual ob ligat ions r es tr ict ing our ch oice of ex ternal a uditor an d we confir m that we have compl ied o n a voluntar y basis (as a non-UK-incorporated company) with the provisions of the UK Competition and Markets Auth ori t y (Mandator y Use of Co mpet itiv e T end er Pro ce sse s and Au dit Co mmit tee resp onsib ilitie s) Ord er 201 4 for th e financial year un der re view. Eecti veness, audit qualit y, indepe ndence and ap pointme nt At it s Sep temb er 2021 meetin g, th e Audit Commi t tee re viewe d and dis cuss ed K PMG’s audit s tr ateg y for th e year e nde d 31 March 2022. In Novemb er 2021 , and Mar ch and May 2022, the C ommit te e rec eiv ed det ailed up date s on the a udit ’s progre ss , whi ch includ ed de tail s of the ex ter nal audi tor’s ac tions , such a s the audit p roc edur es und er t aken, th e audit ’s cover age , the s egr egatio n of dutie s and the sta tus of any signifi cant fin dings , as well asdet ails of ke y mat ter s arising f rom t he auditan d ass es sment s of managem ent’s judgm ent s on them; an d rev iewe d the content of the independence letter and the managem ent rep res entat ion let ter , as well aseng agement te rms. Th e Commi tte e for mally r evie ws the ee ct iven es s of the ex ter nal audi tor at it s Sept ember m eet ing. E x per ian Inter nal Audit supp or t s the C ommit te e with t his by issuin g ques tionnair es to B oard m ember s, s enior operational and functional management andsen ior re gional , finance an d treas ur y lead ership . A s par t of th e evalua tion , the UK Financial Re por ting Co uncil ’s (FRC ’s) Guidance on Audi t Commi t tees w as rev iewe d to ensur e that b es t pr ac tice w as be ing fol lowe d. T he evaluat ion fo cus ed on t he fo ur key area s use d in the FR C’s De cemb er 201 9 ‘Pr ac tice ai d for audit c ommit tee s’ : mind -se t and cultur e; skill s, charac ter and k nowl edg e; qualit y co ntrol ; and judgm ent. T he C ommit te e als o refl ec ted on theas suran ce on financial s tate ment s, t he audit team s and comm unicati on, as we ll as consi der ing ex ter nal re gulator y update s on theex ter nal audi tor re cei ved dur ing th e year . Th e over all re sult s of the e valuatio n were positive. Communication was predominantly str ong and cle ar . Wh ile ther e are area s that could b e impro ved , agains t a backdro p of COV ID - 1 9 challeng es , KPM G had pr ovid ed an ee cti ve audi t in challengin g circum stan ces , and it wa s note d ther e had b een a s tro ng per forman ce fr om th e KPM G team in ke eping to timel ine s. T her e wer e no co ncer ns regar ding th e inde pen denc e of the audi t team, the te chnical k nowl edg e of KPM G or the w ay inwhich jud gment s wer e exp laine d. T he Commi t tee con clude d, ba se d on fee dback an d infor matio n obta ined dur ing i ts o ther wo rk , that the e x ternal a uditor ha d per form ed ee ct ively, and that the G roup an d the au ditor had comp lied w ith re levant guidanc e. Th e Commi tte e al so ev aluates th e qualit y of the au dit (along w ith th e ee ct iven es s rev iew des crib e d above) in th e fol lowin g ways: F air , bal anced and und erstandab le – what do we do ? Each ye ar , in lin e with th e UK Co rp ora te Gove rnanc e Co de and th e Co mmit tee’s terms of refe ren ce, th e Commi t tee is as ked to co nside r whet her or n ot, in i ts o pinion , the A nnual Rep or t is fair , b alan ced an d unde rs tandab le (FBU) an d wh ether o r not it p rov ide s the info rma tion n ece ss ar y for share hold ers to as se ss th e Gro up’ s posi tion and p er f or mance, b usine ss mo del an d str ateg y. Th ere is an e stab lishe d pro ce ss to sup por t the Audi t Commi t tee in makin g this as se ssme nt, andwe fo llow br oadly t he sam e pro ce ss fo r the Gro up’s half -ye arly finan cial rep or t . The m ain el eme nts of th e pr oces s are: a A l ist of ‘ key area s to focu s on’ was prev iou sly share d with t he An nual Repor t team. T he team is r eminde d of the requir ement annual ly and aske d to refl ec t this in their draf ting. a A n inter nal FBU co mmit tee c onside red t he Annual Rep or t in May 2022, ahead of th e Audit C ommit te e me eting . A wide r ang e of func tio ns are re pre sente d on this commi t tee, includ ing executives from finance, communications, investor relations, legal and cor po rate s ecr etar iat. T he ex ter nal auditor al s o supp or t s the c ommit tee . a In a dva nce of it s May 2022 m eetin g, th e Audit C ommit te e rec eive d a near-final draf t of the Annual Re por t, tog eth er wit h a remind er of the ar eas to fo cus o n. T he FBU committee’s observations and conclusions were al s o rela yed to th e Audit C ommit te e. a Fo llow ing it s re view t his year , t he Audi t Commi t tee co nclude d that i t was appro pr iate to confir m to the B oard t hat the 2022 A nnual Rep or t wa s fair , b ala nce d and under st andable, and p rovide d the infor mation n ece ss ar y fo r shareho lder s toass es s the Gr oup’s positio n and per formance, busi ness model and str ateg y. The FBU s tate ment app ear s inthe Di rec tor s’ rep or t . The ' key are as to fo cus on' incl ude d ensuringthat: a T he ov eral l mes sa ge of the nar r ativ e rep or tin g is consis tent wi th the pr imar y financial statem ents . a T he ov eral l mes sa ge of the nar r ativ e rep or tin g is appr opr iate, in th e contex t ofthe indus tr y and the wi der e cono mic environment. a T he A nnual Rep or t is co nsis tent wit h messages already commun icated to investor s, analys ts and oth er stakeho lders . a T he A nnual Rep or t , take n as a wh ole, is fair , b alanc ed and un der stan dable. a T he C hair and Chie f E xecut ive O c er’s sta tement s inclu de a ba lanc ed v iew of the Group’s per fo rmanc e and pr ospe ct s , and of the indu str y and market as a w hole . a A ny summar ies or hi ghlight s capt ure th e big pi ctur e of the G roup app rop riate ly . a C as e stu dies or e xample s are of st rate gic impor tance and do n ot over-emp hasise immaterial mat ters . Experian plc Governance 120 Code principle Audit, Risk and Internal Control Evaluation of external auditor (process descr ibe d above) – All r esp ond ents a gre ed that the e x ternal au dit was s uci ently thor ough an d focu se d on the m ost imp or t ant risk ar eas for E x per ian, in cluding n ew area s in the F Y 21 account s . Improv ement w as ne ede d in the subsidiary financial statements pro cess with timing challenges, duplication of testing and co - or dinatio n bet we en va rio us KP MG teams obs er v ed. N o nec es sar y imp rovem ent s were n oted w ith re gard to th e ex ternal auditor 's judgment and c ommunicat ion, par ti cular ly as to technic al iss ues , es timates , discus sing p otential iss ues and mana gem ent letter content. Mee ting a tte ndan ce by the ex te rna l audi tor – KPM G at tend all C ommit te e me etings an d, during t he year , rep or te d to the C ommit tee onthe c ompon ent s of the au dit pl an, ad ditional or forthcoming requirements or regulator y change s, audi t findings an d inter im audit findings . T hes e rep or t s , the pr iv ate se ssi ons held w ith the C ommit te e, and t he level of challeng e appli ed by th e ex ternal au ditor tomanagem ent, ar e opp or t unitie s for K PMG todemo nst rate an d ar ticul ate (and fo r the Commi t tee to as se ss and chal lenge , as requir ed) th e qualit y of t he audi t wor k. FRC A udi t Qua lit y Ins pe cti on Rep or t (AQ R) – in July 2021 , the F RC pub lishe d it s AQR f or KP MG, which w as fo cuse d on th e key area s re quirin g ac tion by K PMG to s afe guard and e nhance audit qual it y. This prov ide d the C ommit te e with an ex ternal p er spe ct ive on th e qualit y of a udit s by KP MG, and th e Co mmit tee no ted th e FRC ’s comme nts on c er tain K PM G audit s and al so that improvements were identified in the level of challeng e and sc epticism on hi gh- risk audit s , which w as a key findin g of the p rio r year ’s repor t . T he rep or t als o noted g oo d pra ct ice in th e audit of g oing c once rn . In resp ons e to the fin dings , KPM G subse quent ly update d the C ommit te e on th e inves tment bein g made in au dit quali t y , talent r etenti on, diver sit y, and the on going m onitor ing tha t was in place. T echnology and processes – KPMG emp loy a‘hub ’ appr oach in or der to p er f orm stan dardis ed tes ting f or each lo cal mar ket. This ap proa ch includ es th e use of dat a analy tics te chniques , which suppl ies audi t evidence over significant quan tities of data, and this pr ovi des a p ers pe cti ve on au dit qualit y to the C ommit tee . Indep end ence is an impor tant eleme nt of the ex ter nal audi t. T oens ure audi tor obj ec tiv it y and independence, the Committe e reviews potential threats to i ndependence and the ass ociate d saf eguar ds durin g the year . Th e safe guard s that KP MG had in p lac e durin g theye ar to maintain ind epe nden ce inclu ded annual confir mation by K PM G sta of compl iance wit h ethic s and inde pen dence pol icies an d pro ce dures . KP MG al so ha d in pla ce und erly ing sa feguar ds to maintain independence by: instilli ng professional val ues; communic ations; inter nal acc ountabil it y; r isk managem ent; an d indep end ent rev iews . Th eyal so en sure d that th ere wa s appr opr iate pre -app roval f or non -audi t ser vice s, w hich are prov ide d only if p erm issible un der r elevant ethic al stan dards . Th e Commi t tee co nclude d that the e x ternal au ditor ha d maintaine d it s independence throughout the year . Non-audit serv ices KPM G pro vid es oth er ser vice s to E xp er ian. T oens ure audi tor obj ec tiv it y and indep end enc e, we have a p oli cy r elat ing to prov iding s uch se r vi ces . T he p olic y inclu des financial limit s above which any pr opos ed non -audi t ser vice s must b e pr e-ap pro ved , dep endin g on the e xp endit ure pr op ose d. Th eCommi t tee re cei ves half-y ear ly rep or t s prov iding d etail s of no n-au dit as signment s car rie d ou t by the e xte rnal au ditor , to get her with t he rel ate d fee s. Un der th e po lic y , non -audi t fee s paid to K PM G are ca ppe d at 30% of the f ee s for au dit se r v ice s, exc ept in exceptional circums tance s. Pre -appr oval by the Au dit Co mmit tee or A udit C ommit te e Chair is requir ed in tha t situatio n. A n analysis of fe es paid to th e ex ter nal audito r for th e year e nde d 31 March 2022 is set ou t in note 1 3 to t he Group financial s tatement s. Provision of non-audit s er vices Back ground Th e Audit C ommit te e annually rev iews t he pol ic y on the pr ovisi on of non -audi t ser vice s and re crui tment of f orm er audi tor emplo yee s and the l ate st re view to ok pl ace in Mar ch 2022. Th e update d po lic y , whi ch is set o ut be low, rec ognis es the imp or t ance of th e ex ternal audito r’s indepe nden ce and ob jec ti vit y. Policy Th e ex ternal a uditor is p rohib ited f rom prov iding any s er vice s othe r than thos e direc tly a sso ciate d wit h the au dit or re quire d by legisl ation . Th es e are limite d to: a Re por ting re quire d by a comp etent a utho ri t y or re gulator , under U K law or r egul ation forexamp le: – re por ting to a re gulator o n client a sse ts ; – in relation to entities regulated under the UK Financial S er v ice s and Mar ket s Act 2000 (FSM A ), repo r t s unde r s 1 66 and s340 of FSMA; – rep or ting to a re gulator o n regul ator y financial statem ents; an d – rep or ting on a So lvenc y and F inancial Con diti on Rep or t und er So lvenc y II a Rep or tin g on internal financial c ontrol s when r equir ed by l aw or re gulat ion a Re por ting on th e iX BRL ta gging of finan cial statement s in accordance with European Single Ele ct ronic Fo rmat (E SEF ) for annual financial rep or tin g a In t he ca se of a cont roll ed und er tak ing incor p ora ted and b ase d in a thir d countr y , rep or tin g re quire d by law or r egul atio n in that juris dict ion wh ere the au ditor is per mit te d to unde r take tha t enga geme nt a Re por ts r equire d by or s uppl ied to competent authorities/regulators super vising the audited entit y , wh ere the authorit y /regulator has either specifie d the audito r to prov ide t he s er v ice or i denti fie d tothe enti t y that th e audito r would b e an appro pr iate choic e for s er v ice pr ovid er a A udit and o ther s er v ice s prov ide d as audi tor of the ent it y, or as repo r tin g acco untant wher e the s er v ice s are re quire d by law orre gulat ion a Re view s of interim finan cial infor matio n; and providing verification of interim profits a E x ten de d audit o r assur anc e wor k whe re the wo rk is inte grate d wit h the au dit wor k and is pe r for me d on th e same p rin cipal terms an d conditio ns a S er vice s which s upp or t th e enti t y in fulfi llin g an obli gation r equir ed by l aw or re gula tion , wher e the p rovisi on of such s er v ice s is time crit ical an d the subj ec t mat ter of the engagement i s price sensitive a Re por ting on go ver nment gr ant s a Re por ting on co venant or loan a gre ement s which require independent verification a A dditional assurance work on material includ ed wi thin th e Annual Rep or t a S er v ice s which hav e be en the sub jec t of anappli cati on to a comp etent au thor it y. Th e appo intment of th e ex ter nal audito r for anynon -audit w ork up to US$ 50,00 0 must b e appro ved b y the Gr oup Finan cial Cont roll er . Th e appo intment of th e ex ter nal audito r for any non -audi t wor k wher e the e xpe c ted fe es ar e over US$ 50,000 and u p to US$ 1 00,000 requi res the app roval , in ad van ce, of th e Grou p Chief Financial O c er . W her e the ex pe cte d fe es are over US$1 00,00 0, the ap prov al of the Chair of the Au dit Co mmit tee is r equire d in ad vanc e. Whe re cumul ati ve annual fe es exce ed t he 30% annual limit , all exp endit ure mus t be ap prove d by the Au dit Co mmit tee . All ex pen ditur e is subje ct to a te nder p roc es s, unle ss e xpr ess per missi on is pro vide d by th e Chair of the Au dit Commi t tee, t he Chief F inancial O c er or the Group F inancial C ontro ller b ase d on the ab ove appro val limit s . Any ex pen diture b elow US$ 1 0 0,00 0 not sub jec t to a tend er will b e noti fied to t he Chair of th e Audit C ommit te e. 121 Experian plc Annual Report 2022 Gover nance Code principle Audit, Risk and Internal Control Audit Committee repor t contin ued Commer cial agreements w here E xper ian prov ide s se r vi ces to t he audi tor mus t be appro ved b y the Gr oup Finan cial Cont roll er andnot exc ee d the lowe r of 5% of the loca l E xpe rian enti t y’s total revenu e and US$250,000, and al l trans ac tions sh ould beund er t aken on an ar m’ s leng th basis . T ran sac tion s in exces s of this limi t requir e appro val of the C hair of the Audi t Commi t tee in advance. Th e Commi t tee wil l rec eive half-y early r epo r t s prov iding d etail s of as signment s and r ela ted fee s car r ied o ut by th e ex ternal a uditor in addi tion to th eir nor mal wo rk . Follow ing th e year-e nd audi t, ne ithe r E xp erian nor any of it s sub sidiar y co mpanie s will employ any a udit pa r tne r or audit te am memb er in a posi tion w hich co uld have a signific ant influe nce on th e Gro up’ s acc ounting pol icies o r the conte nt of it s financial sta teme nts unt il a coo ling - o pe rio d has elaps ed . Th e coo ling - o p erio d is t wo ye ars in resp ec t of an au dit par tner , and o ne year in resp ec t of a dire c tor , wh ere t hey have wo rke d on the a udit of E x per ian plc or i t s subsidiar ie s. Th e KP MG En gagem ent L et ter f ur th er prohib it s E xp erian f rom s olici ting th e employ ment of any au dit team m ember f or thre e month s follo wing c omplet ion of th e audit , without KPMG' s consent. Th e Commi t tee wil l rec eive an up date if any audit team m embe rs are r ecr uite d into senio r positions by Exp erian, followed thereaf ter by annual rep or tin g on number s of for mer a uditor senio r employ ee s should any r emain. Risk management and internal control Th e Boar d is re spon sible for maint aining andrev iew ing the e e cti vene ss of o ur risk managem ent ac tiv itie s fr om a str ate gic, financial, and op erational p ersp ec tive. T hes e ac tivi tie s are de signed to i dentif y and manage , rath er than el iminate, th e risk of f ailure to achieve business objective s or to success fully deli ver our b usine ss s tra teg y . Th e risk mana gement p ro ces s is desi gned toidenti f y, asse ss , resp ond to , rep or t o n and monito r the r isks t hat thre aten our ab ilit y to achieve our business strategy and objecti ves, within o ur risk ap pet ite. Th ere is an on goin g pro ce ss fo r identi f y ing, evaluatin g and managin g the pr incipa l and emer ging r isks w e fac e. T his pro ce ss wa s in pla ce for t he financial ye ar and up to th e date of appro val of this A nnual Rep or t . Full deta ils of our ri sk managem ent and inter nal contr ol sys tem s and pro ce ss es c an be fo und in th e Risk managem ent se ct ion of the Str ate gic rep or t on p age 85. T he Au dit C ommit tee considers emerging risk s with management as par t of t he st anding r isk manag ement update it r ece ive s. Th e spe cific p roc es se s under lyin g the ele ment s of our r isk fr amew ork ar e set o ut b elow. Step 1 Risk identification a I dent if y an d es cal ate new, eme rging o r changin g risk s , signifi cant incid ent s, sign ific ant cont rol gap s and r isk ac cept anc es a C on side r ex ter nal fa ct ors a ris ing fr om ou r ope rat ing env iro nmen t and inte rnal r isk s ar ising f ro m the nat ure of o ur bus ine ss , our contr ol s and p ro ce ss es , and ou r manag ement d eci sions Step 2 Risk assessment a A s se ss t he po tential im pac t of ea ch st rate gic , op era tional , re gula tor y a nd finan cial r isk on t he ac hiev emen t of our b usine s s obje c tiv es , and t he Gr oup’s cor re spo ndin g ris k app eti te a Pro duce Board-level and Grou p- level fin ance report s, includi ng financial summaries, re sults , forec ast s and revenue trends , investor rel ati ons ana lysis an d det aile d busin es s tr adin g summar ie s a Fo llow f or mal rev iew a nd app rov al pro ce dure s fo r major transactions , capital expenditure and revenue expenditure a Ev aluate c omp lianc e wit h po lici es an d st andar ds tha t addr es s r isk managem ent, c omplian ce, ac countin g, tre asur y mana geme nt, fr aud , infor matio n se cur it y, busine ss co ntinuit y an d thir d- par ty r isk a M oni tor bu dge tar y and pe r fo rma nce r evi ews t ied to K PI s and achievement of objectives a C on duc t det aile d per for manc e rev iew s at a re giona l leve l a Re por t to Region al Risk Manag eme nt Com mit te es , the S ec uri t y and Cont inuit y Ste eri ng Co mmit te e and E xe cut ive Risk Mana gem ent Com mit te e, an d the A udit C omm it te e on th e st atus o f prin cipa l and emer ging r isk s, t he pr ogr es s of s tra tegi c pro jec t s and a cquis itio ns , and e sc alat ion of si gnifi cant a cce pte d risk s a G loba l Inter nal Au dit re por t to the Au dit Co mmit t ee on a ssur anc e testing and Confidenti al Helpline investigation results a G roup C om plian ce r epo r t to th e Audi t Com mit te e on f rau d management and over all Complianc e management a A pp ly a ri sk sc or ing s ys tem , bas ed o n our as se s smen t of the pro babil it y of a r isk ma ter ialisin g, an d it s imp ac t if it do e s a Re quir e exec uti ve mana gem ent con firm atio ns of co mplia nce w ith our co rp or ate g over nan ce pr oc es se s and c ontr ol env iron ment Step 3 Risk response a A pp ly ac tiv e risk r eme diati on s tra tegie s , includ ing is sue manage ment , inter nal cont rol s , for mal r isk acc ept ance p ro ces se s, insur anc e and sp ecial ise d tr easur y instr um ent s a Us e for mal r evi ew and ap pro val pr oce dur es fo r signifi cant acc ept edr isk s a A cce pt or r eme diate t he cur re nt ri sk and c ontr ol env iron ment a D etermine correc tive action if required Step 4 Risk reporting and monitoring a Maint ain co mpre hen sive r isk r egis ter s rep re sent ing th e cur rent r isk and co ntro l envir onm ent, u sing a s of t war e so lutio n to pro vid e enhance d monito ring a O ngo ing r evi ew of pr inc ipal r isk s ide nti fied b y the G roup’s ris k assessme nt p rocesses a Re por t on ri sk to the Au dit C ommi t tee , ad dres sin g mater ial an d emer ging r isk s, incl uding inf orm ation s ec uri t y , bus ines s cont inuit y, and r egul ator y comp lian ce, a s well a s mater ial l itiga tio n a Re vie w of cont rol s an d foll ow- ups b y manage ment , gov ern ance fun ct ion s such a s Co mpl ianc e, th e Glo bal S ec uri t y O c e, Glo bal Inter nal Audi t and t hird p ar ti es a Us e Glo bal Inte rnal A udit to in dep end ently a ss es s the a de quac y ande ec ti ven es s of th e sys tem o f inter nal cont rol s a Re vie w by th e Audi t Co mmit te e of th e e ec ti ven es s of our s ys tem s of ris k manage ment an d inter nal cont rol Experian plc Governance 122 Code principle Audit, Risk and Internal Control Thr oug h a comb inati on of o ngo ing and an nual rev iews , the B oar d is able to r evi ew the e ec tive nes s of the G rou p’ s ri sk man age me nt an d internal control systems Risk management an d internal control s ystems review Independent assessment a Global Internal Audit repor t s a Global Inter nal Audit Confidential Helplin e reports a E x ternal auditor’s report a Review by relevant regulator y bodies (e.g. US Consumer Financ ial Protection Bureau ) a Evaluation of ex ternal audito r a Evaluation of Global Internal Audi t Management assurance a Annual ex ecutiv e cert ification of compliance with UK FRC guidance and control adequ acy a Risk management repor t s, includin g material litigation a C ompliance report s a Infor mation securi t y reports a Impair ment, going concern and viabilit y reviews a A nnual Repor t , full-year and half -yearly financial report review a Mana gement represen t ation let ters Board/ Audit C ommittee approved a Annual Global Internal Audit plan a E x ternal auditor’s engagement letter a E x ternal auditor’s annual audit plan a T r easur y policy a T ax policy a C ompliance policy a Global Delegated Author ities Matrix , which defines internal approval procedures 123 Experian plc Annual Report 2022 Gover nance Code principle Audit, Risk and Internal Control We follow t he Th ree L ine s of Def enc e appro ach to risk mana gement . Risk s are own ed and manage d wit hin the bu sines s and re view ed by our busin es ses a t leas t quar ter ly . Glob al gover nance team s rev iew ri sks and c ontro ls , including those relating t o information securit y , compl iance and bu sines s continui t y . Global Internal Au dit as se ss es our r isk s and cont rol s indep end ently and o bje cti vely. The re sult s of the se re view s fe ed into our r epo r tin g cycl e, includin g throu gh the r isk manag ement governance structure outlined above. Risk managem ent is es sent ial in a global , innovation-dr iven business such as Exp erian. Ithel ps to crea te long -ter m shareho lder v alue and pr otec t s our busin es s, p eo ple, a ss ets , capi tal and r epu tatio n. It o per ate s at all leve l s throughout the organisation, across regions, business activi ties and operational suppor t funct ion s. Our app roa ch to risk mana gement e nco urag es clear de cisions ab out w hich r isks w e take andhow we mana ge the m, ba se d on an under st andin g of their p otential cu stom er , financial, r egulator y , consumer , le gal and repu tati onal impac t . As r isk manag ement andinter nal contr ol sy stem s are de signe d tomanage r athe r than eliminate t he ri sk offailure to a chieve b usine ss obj ec tive s, theyc an prov ide r eas onable bu t not abs olute assuran ce against mater ial financial misst atement or los s. For o ur T hr ee L in es o f De fen ce s e e pa ge 8 6 Eec tivenes s of the risk manag ement and internal co ntrol systems E xpe rian’ s risk p rogr amme is r egula rly rev iewe d, and in F Y1 8 t here w as an ex ter nal benc hmarkin g exercise c onduc te d by P wC . Bas ed o n that rev iew, goal s wer e set to fur therimprove dierent elements of the riskmanagement programme, to ensure theGr oup remain s curr ent wi th be st-in - cla ss risk mana geme nt pra ct ice s and to kee p pac e with chan ges to b oth inter nal and ex ter nal enviro nment s. We en gage d an ex ter nal firm again in F Y22 to a ss es s the cur re nt st ate andidentify oppor tunities for improvement. Th e sco pe wa s foc use d gen eral ly on r isk managem ent organis atio nal str uc ture an d managem ent, w ith a p ar tic ular emp hasis on operational risk management. Th e output of the ex ter nal re view w ork w as use d to adjus t the Enter pr ise Risk Mana geme nt (ERM) pro gramm e and se t goal s for t he ne xt o ne to thre e year s. T he Au dit C ommit tee C hair note d that the up date to th e Commi t tee allow ed it to bet te r conne c t the var io us pie ces of t he ERM framewor k and further unders tand overall accountabi lit y . The impl ementation plan contain ed a numb er of re comme ndatio ns on operational risk which would be implemented over a t wo - year p eri od. T he A udit C ommit te e note d the ne ed f or fur ther incr eas ed Audit Committee repor t contin ued role -s pe cific tr aining, an d inves tme nt for ahighleve l of trainin g in oper ati onal risk . Th eGroup al s o continu es to b uild out i ts emerging r isk dashboard . In line w ith the C o de, th e Audit C ommit te e monito rs our r isk manage ment and inte rnal contr ol s yste ms, r obus tly a sse ss es t he prin cipal r isks i denti fied b y our r isk assessmen t processes (i nclud ing t hose t hat would t hreat en our bu sines s mo del , fu ture per formance, solvency or liquid it y) , and monitors actions taken to mitigate them. For cer tain joint ar ran geme nts , the B oar d rel ies on the s ys tems of inter nal cont rol op er ating within E x pe rian par tner s’ infras tr uc ture an d the obli gation s of par t ner s’ boar ds, r elat ing to the ee ct ive nes s of the ir own s ys tems . Th e Co de requir es co mpanie s to rev iew the e ec ti vene ss of their r isk manage ment and inte rnal co ntrol sys tems , at leas t annually. The Audi t Commi t tee per form s this re view un der de legate d aut hor it y fro m the B oard . Follow ing this y ear’s revi ew, the Bo ard considers that the in formation it received enable d it to re view t he e ec tive nes s of the Group’s sys tem of inter nal contr ol in acco rdanc e with th e FRC ’s ‘Guidance o n Risk Managem ent, Inte rnal C ontro l and Rel ated Financial an d Busine ss Re por ting’ and that thes ys tem has no signi fica nt failin gs or weak nesses. For m or e on o ur ap pr oa ch to r isk m ana gem en t se epa ge s 85 to 9 2 Additional financial reporting inter nal controls We have detaile d po licie s and pr oce dure s in pla ce to ensur e the a ccur ac y and rel iabilit y of our financial r epor ting and th e prep arati on of Group finan cial sta tement s . This in clude s our comprehensive Gl obal Accounti ng Policy and Standar ds Manual, w hich co ntains th e det ailed requirem ents of International Financial Repo r tin g Standar ds (IFR S). The Gr oup’s Financial Re por ting team ow ns the Gl obal Acco unting Po lic y and Stan dards an d we have roll ed th em out a cros s the Gr oup, ob ligin g all Group c ompanie s to fol low their r equir ement s. Th e main obje ct ive s of the Pol ic y and Standar ds are to: pr ovi de st andar ds for acco unting is sue s and to ac t as a re fere nce doc ument fo r both E x per ian emp loye es and ex ternal au ditor s; allow fo r prep arati on of consis tent and w ell- defin ed info rmat ion fo r financial rep or t ing re quirem ents un der IFR S; prov ide a s et of me asur es to b e use d for b oth quantitative and qu alit ative as sessm ents of Group p er f orman ce; incre ase th e eci enc y ofthe re por ting pr oce ss; an d pro vide a gui de for e duc ating Gr oup p ers onn el in appr ove d stan dardise d finance and a ccountin g proced ures. Experian plc Governance 124 Code principle Audit, Risk and Internal Control Protec ting our p eople Prote c ting our e mploy ees ha s always b een hi gh on our l ist of key s tr ategi c pr ior itie s. A s t he vas t major it y of our wo rk for ce cont inues to w ork fro m home , and as hy br id and re mote wor kin g become embedded business practic es, our foc us in F Y22 wa s to build on t he po licie s and pra ct ice s firs t intro duce d to supp or t e mploye es in the imm ediate o nset of t he pan demi c. Ov er the l as t t wo year s we have b ee n impre ss ed by th e re silienc e, commi tment andpr oduc tiv it y of o ur employ ee s as they overcame the challenges of the pandemic. Th estr ong p er f orman ce de live red t his year reflect s the strong collabor ative and innovative culture a t E xpe rian wh ich, imp or t antly, has prov en to be ve r y e ec ti ve even o ut side ofthetr adit ional o ce envir onment . In F Y22, we un der to ok a co mpreh ensi ve Future of Wor k pro jec t , to under st and th e views, preferences and concerns of employees on the ir desir ed wa y of wor king f ollow ing th e pand emic . Bas ed o n their fe edb ack , we have fully e mbr ace d a hybr id w ork ing env ironm ent, where employees have enhanced flexibility over wh en and w her e they wo rk . We str ongly bel ieve , as ev iden ce d by the b usine ss r esult s over the last two years , that supporting enhanc ed fle xibil it y lea ds to a mor e enga ge d and mot ivate d wor kf orce . Again, b ase d upo n employ ee fe edba ck, t his is als o enablin g us toat tra ct an d reta in talent w hich is cri tic al todeli ver ing o ur fut ure gr ow th asp irat ions . Outl ine d below ar e som e of the p olicie s introduced to ensure we cont inue to adapt tochange s in our ex ter nal enviro nment andmaintain o ur foc us on our em ploye es aswe co ntinue the t ransi tion into n ew ways ofwor king: a E nhance d flexib le wor king p oli cies to supp or t e mploy ee s in bal ancing t heir per sonal and pr ofes sional demands , includin g global ad opti on of a hybr id wor king app roa ch and pr ovidin g trainin g tosupp or t em ploye es w ith th eir pr efer re d way of wor kin g, as we ll as enhan ced family- fri endly po licie s including imp roved materni t y and ne o -nat al leave. a Fur t her de velopm ent of our m ental he alth and well nes s pro gra mmes to sup por t employ ee s wor king f rom ho me, p ar ti cular ly during ongoing lockdowns. W e introduced a number of re gion -sp ecifi c pro gramme s in F Y22, whi ch re ceiv ed ver y posit ive fe edb ack fro m empl oyee s . Th ey felt t hat th e ac tion s taken we re a major f ac tor in th eir leve ls of Repor t on directors’ remuneration George Ro se Chair of the Re muner atio n Commi t tee I am pleased to prese nt, on behal f of the Re muneration Com mittee, the Re por t on directors ’ remuneration, following a strong year for t he Comp any . Members George Rose (Chair) Dr Ruba Borno Alison Brittain Caroline Donahue Luiz Fleury Jonathan Howell Deirdr e Mahlan Mike Rogers Quick link experianplc.com/ about-us/corpor ate- governance/board- committees/ Introduction I am plea se d to rep or t th at, w hile F Y22 didnot s ee th e anticipa ted f ull ret urn to amor e nor mal ope rat ing envir onme nt, itwas n one thel es s a ver y stro ng yea r for our busin es s. T he d eliv er y of do uble - digi t top - and b ot tom -lin e grow th is a significant achievement. This level of hig h per formance, despite ongoing national res tr ic tions in s ome of o ur major mar ket s, is a tes tament to b oth th e str eng th and calib re of our le ader ship team and t he dedi cati on and re silie nce of our p eo ple. From the o nse t of the C OVI D - 1 9 p ande mic, one of o ur key pr ior iti es has b ee n prote c ting our empl oyee s' mental and p hysical well- be ing, w hile bal ancin g this wi th our ambitio n to retur n to pr e- C OV ID level s of grow th . We made a numb er of key decisi ons ove r the l ast t wo y ear s, inclu ding: a n ot fur lou ghing any of our e mploy ee s, reduci ng em ployees ’ salaries or working hours, or implementing anyCOV ID - 1 9 r edundan cies; a s uppo r tin g all emplo yee s in wor kin g fro m hom e, includin g intro ducin g a number of 'pe ople fir st ' po licie s to enable emp loye es to manag e their w ork and pe rs onal lif e bala nce. We f ur th er enhance d the se p oli cies in F Y22 as it be cam e clear that th e ways of w ork ing bro ught abo ut by th e pand emic wer e likely to b e a per manent chan ge to th e work environment. Equipping our employ ee s wit h the p olici es , pro ces se s and overall suppor t to work eecti vely in the ne w hybr id m ode l has be en an impor tant foc us area fo r us; and a maint aining key st rate gic inves tment s and pi voting o ur foc us and inve stm ent into key fo cus are as such as o ur Con sumer S er v ice s busin es s, whi ch has deli ver ed ou t sta nding s ucce ss in F Y22, and sc aling p lat fo rms s uch as A sc end and PowerCur ve. It is ple asing to s ee that t hes e de cisions and the g oo d pra ct ice s we have implemented over the last two years enable d us to re spon d to the challe nge s ofF Y22. T he re silien ce dem ons tra ted inthe pr ev ious y ear be ca me th e sprin gbo ard to del iver t his year ’s impre ssive finan cial result s. A s I menti one d in las t yea r’s repo r t , ourbusin es s str ate gy and o ur ambitio n tocontinu e to deli ver f utur e grow th , whichis d eep ly emb edd ed in ou r culture , remain unchan ged . Th e commitm ent and deter minatio n of our p eop le to ret urn to pre - CO VID - 1 9 leve ls of gr ow th co ntrib uted to the ve r y st ron g per forman ce del ive red in F Y22, whil e the cr itic al decisi on to continu e inves ting in ke y str ategi c areas res ulted in a re tur n to grow th in al l our major market s in F Y 22. Th e str eng th of the F Y22 per forman ce acro ss all ar eas of our b usines s put s us in a gr eat po sitio n to deli ver o n our grow th amb ition s for F Y 23 and be yond . 125 Experian plc Annual Report 2022 Gover nance Code principle Remuneration Repor t on directors’ remuneration contin ued both empowerm ent and engagement. It was plea sing to se e our em ploye e en gagem ent sco res c ontinue d to b e high (78%) in FY 22, even th ough m os t employ ee s had b een wor king r emote ly for t wo y ears . A s we r etur n to a more normal operating environment, we are confi dent tha t we can c ontinue to b uild on the momentu m already created. a W hile fle xible w ork ing is sup por ted, maintaining a cce ss to E x per ian oc es wil l als o continu e to be imp or tant , as many employees enjoy the traditional working environment to suppor t them with their wor k and pe rs onal lif e bal ance . Ov er the l ast t wo year s we have t aken the o pp or tuni t y to ref urbish many of o ur main oc e hubs, to provide collaborative and flexible working enviro nment s for t hos e who cho os e to wor k par tly o r compl etely fr om an E xp erian o ce. Whe re appr opr iate, we have al so r ealign ed our o ce fo otpr int to re flec t emp loye es' pref ere nce f or hyb rid w or king . a A s a thank y ou for al l their har d wor k and dedication over the pandemic, in August 2021 we granted ' T hank Y o u' shares wor th US$80 0 to aroun d 1 6,0 00 empl oyee s belo w senio r managem ent wor ldw ide . In doing s o we incre ase d the numb er of employ ee shareho lder s. Un der the p lan all e ligible employ ees r ec eive d 1 9 E xp er ian shares , and thos e who d o not s ell th eir share s for thr ee year s will re cei ve a fur ther matching aw ard of 38 E xp er ian shares in 2024. We were v er y plea se d with t he take - up of the T hank You Share Pl an. It is ple asing to s ee th e str ategi c decisi ons made f ollow ing th e emer genc e of COV ID - 1 9 , includin g prote c ting our e mploy ee s and key str ategi c inves tme nts , enable d our b usines s – even dur ing the chal leng es of the p ande mic – to stay o n cour se w ith our s tr ategic gr ow th ambitio ns to del iver su stainab le high single - digit gr ow th . In F Y22, th e Group outper form ed this ambition, delivering Ben chmark EB IT gr ow th of 1 9% , revenu e per formanc e grow th of 1 7% an d Benc hmark EPS gr ow th of 21 %, all at co nst ant exchange rate s. T he se do uble - digit p er fo rmanc e level s were al s o refle ct ed in our shar e pri ce, w hich increa se d by 1 8% in th e thre e mo nths to 31March 2022 compare d to the s ame p eri od last year . While th e del iver y of financial res ults is undoub tedly ver y impor t ant, th e Commi t tee ac tive ly under takes a ho lis tic app roa ch to the ass es sment of th e Comp any’s per for manc e byrev iew ing a br oad r ang e of met ric s . Th es einclud e, bu t not exclusi vely, employe e engag ement , dive rsit y and inclusion , impac t onthe en vironment and consumer satisfaction. In this way we en sure that t he financial out tur ns ar e a fair and t ru e refle ct ion of th e Group’ s holistic per for mance over the period. Our pr efer ence fo r simplici t y means tha t we donot inclu de the se an d other n on -financial metr ic s in our inc enti ve plan s. H oweve r , that inno way dilu tes th eir impor tance to t he Gro up and hence they remain key considerations forth e Commit te e’s review of shor t- and longer-term perf ormance. How is o ur pe r for man ce re flec te d in exec utive pa y? Salary: during t he year th e Co mmit tee appro ved s alar y increas es of 2. 3% – 2.6 % for the exe cut ive dir ec tor s. A s in p rev ious y ears , and align ed w ith our p olic y, these in creas es were in l ine wit h the incr eas es awar ded to thegeneral employee population across theGr oup. Annual Bonus: the C ommit te e always s eek s toset s tretchin g but at ta inable annual bo nus per forman ce ta rget s tha t refle c t our s tron g pay- for-pe r for manc e philos ophy. For F Y22, theC ommit te e se t targ et s that re fle cte d our unchange d ambit ion to re turn to t he ver y str ong le vel s of grow th a chieve d be fore t he pand emic. T he C ommit te e re cognis ed a potent ial one - o b ounc e- ba ck fro m the pandemic by incorporating that impact intoaper forman ce ta rget r ang e which a s a result r equire d doub le- digi t grow th to achi eve targ et and ma ximum ou t tur ns. D espi te the anticipate d bo unce -b ack b eing temp ere d bythe r etur n of national lo ckdow ns in so me ofourmajor mar ket s, th e execu tion of o ur str ategi c busine ss p rior iti es enab led us toretur n to do uble - digit gr ow th in all of ourmajor mar kets . Stakeholder experience in FY22 FY 2 2 pe rf o rm a n c e Annu al pe rformanc e a 1 9% Be nchmark E BI T grow th a 1 7% r evenu e per forman ce grow th ¹ a In creas ed he adco unt to 20,600 ² FY 2 2 P e rf o rm a n c e I am plea se d to rep or t t hat F Y22 wa s a ver y str ong ye ar for E x per ian. D espi te the co ntinue d challeng es pr es ented by C OV ID - 1 9 , the Gr oup deli ver ed o ut st anding gr ow th in o ur key financial met ric s, in al l our major r egio ns. Cont inuing to achie ve grow t h in such e cono mic circums tanc es r efle ct s the r obus tne ss of o ur busine ss s trate gy an d, impor tantly, the abilit y to execute that strategy. Three -year perfor mance a 1 1 % aver age in creas e pe r annum in adjuste d Ben chmark EP S a 52% share pr ice gr ow th³ a US$ 4.7bn cumulative Ben chmark operating cash flow over three year s * At c on st an t exc han ge r at es 1 From ongoing activities. 2 H ea dc ou nt as a t 31 Mar ch 2 022 (31 Ma rc h 2021: 17, 8 0 0 ) . 3 T hr ee - mo nt h av er ag e to 31 Ma rch 2 022 o f £3 0.1 5 co mpa re d to t he t hr ee - mo nt h ave r ag e to 31 Ma rch 201 9 of £1 9. 79 . a a Global employment increased by 2,800 to 20,600 a 3.2% global pay increase budget for F Y22 a No forced annual leave or re duced wor king hours a Normal bonus entitlement fo r F Y20, F Y 21 and FY22 a Enhanced flexible wo rking from home, to better support personal circumstance s a 83% employees globally working from home in FY22 a 4% global pay increase budget for F Y23 a US$800 'T hank Y ou' share awar d with a fur ther 2-fo r- 1 matchin g oppor tunit y , awar ded to 1 6,000 employee s be low senior management a Dividends of USc3 2.5 and USc 1 6.0 pe r share paid in July 202 1 and Februar y 2022, respectivel y a Share price st abilit y, 1 8% incr ease 1 in F Y22 a No shareholder capital raising a F Y22 pay incr eases aligned with employees a No adjustments to in- fl ight Long- T er m Incentive (L TI) awar ds a No financ ial governm ent suppor t taken in any of o ur operating re gions a Str ate gic inv estments and acquisitions to support future g rowth 1 Share price is the 3-month average to 3 1 March 2022 compared to 3-month average to 31 March 2021. Employees Investors Executives Experia n Group No furloughing of staff F Y22 at a glance Experian plc Governance 126 Code principle Remuneration £0 £20 £40 £60 £80 £100 £1 20 £140 £160 3 1 Ma r c h 2 0 19 3 1 Ma r c h 20 2 0 3 1 Ma r c h 20 21 3 1 Ma rc h 2 0 22 E x pe r i an FT S E1 0 0 In de x Ex p eri an 3 - y ear T S R r e l a tiv e to F T S E 1 0 0 I n de x In F Y22, b oth Nor th Am eri ca and L atin America once agai n delivered outstanding, double - digit Benchmar k EBI T and organic revenu e grow th . It was ar guably ev en mor e plea sing to se e a re tur n to grow th in o ur UK and Irel and (UK& I) busine ss , whic h contr ibute d double - digi t EBI T and or ganic rev enue grow th. Th e str ong p er fo rmanc e fro m all our majo r regi ons pu shed t he Gro up to doub le - digit grow th fo r both annual b onus p er fo rmanc e metr ic s. F Y22 revenu e per f or mance gro w th, for annual b onus pur pos es , was 1 7% and t his high level of r evenu e per f or mance, c ombine d with r etur ns on s tra tegic inv es tment s and pru dent financial manag ement of exp ense s, flowe d thro ugh to del iver B enc hmark EB IT grow th of 1 9% for F Y22. A s a result of t he comb ined r evenu e grow th an d Ben chmark EB IT gr ow th per forman ce, th e over all bo nus for F Y22 will b e paid o ut at 1 00% of maxim um for ea ch of the exe cuti ve dire c tors . Lo ng- ter m Ince ntive s (L TI): T he Per formance Share Pl an (PSP) an d Co -inv es tment P lan (CIP) awards gr anted in 201 9 wil l ves t on 1 3 Jun e 2022. Th e 201 9 L T I tar get s wer e se t in May 201 9, when our grow t h ambiti ons wer e to achiev e sust ainable annual high sin gle- di git grow th. T he s trong financial p er for mance deli ver ed in F Y22 follow s a re silient F Y21 andaver y soli d F Y20 p er fo rman ce. We be liev e that a he althy , wel l-r un busin es s will de liv er wealth to it s shar ehold ers an d over th e las t three years E xperian has achieved: a 1 1 % aver ag e increa se p er annum in adjus ted Benchmar k EP S a US$ 4.7bn three- year cumulative B enchmark operating cash flow a 1 6.6% adjust ed Ret urn o n cap ital e mploy ed a 52% share pr ic e grow th ov er thre e yea rs a £9 .0bn of valu e creat ion thro ugh mar ket capitalisation grow th and dividends. Th ese hi gh grow th fi gure s under pin th e over all ves ting le vel s of the P SP and of t he CIP , both ofwhich ve ste d at 1 00%. W hile th e impac t ofthe pa ndemi c in the s ec ond ye ar of the performa nce period undo ubt edl y aect ed the potent ial per forman ce outc ome s that may have other wise b een a chieve d, no a djustm ent s were ma de in as se ssing th e pe r for mance out tur ns f or the 201 9 L T I plan s. A s with th e annual bonus p lan , the Co mmit tee consi der ed th e L T I ve st ing lev el s in the c ontex t of both t he cur rent e cono mic envir onment an d the Group ’s holistic per for mance over the thre e -year p er iod . It wa s deci ded t hat the for mulaic v es ting lev el s appr opr iately re flec t the s tron g busine ss gr ow th ac hieve d over th e thre e -year p er f orman ce pe rio d, d espi te the unan ticipated headwind s created by the COVID- 1 9 pandemic. In line w ith our r emune rat ion pr incipl es , asubs tantial po r tio n of the CEO ’s single figure value is de termin ed by lon g- term per forman ce. Fo r F Y22 68% of t he CEO’s single figure v alue is dr iven b y the ve stin g leve ls of the L T I plans . Imp or tant ly , 1 6% of the total F Y22 singl e figure v alue fo r the exe cut ive direc tor s is dire ctly a t trib utab le to share pr ice grow th an d divi dends . All shar ehol ders , including e mploye e shareh olde rs , will have ben efit te d fro m the s ame share p ric e grow th and div iden d ret urn ov er the s ame thr ee -y ear period . Pay in the wider wo rk force Employee engage ment We have always fe lt well info rm ed ab out th e pay and r elate d po lic y arr ang ement s for t he broader employee population at Ex perian. A sthe Co mmit tee ha d exis ting pr oc ess es inpla ce to gain an ex tens ive und ers tan ding ofemploye e pay, prior to t he intro duc tio n ofthe201 8 UK C or por ate G over nance C od e (the Co de) re quirem ents , no sin gle appro ach rec omme nde d in the C od e was con sider ed appro pr iate for o ur busine ss . We have therefore adopted a combi nation of the sugg es ted me tho ds to comp ly with th e Code’ srequi rements. Each ye ar , as par t of the Co mmit tee’s standin g agen da, we ar e prov ide d wi th an ex tensi ve pap er set t ing out d etail s of all- e mploye e pay and wor kf orce p olici es acr oss E x per ian. Th ediscus sions o n this topic hav e enabled usto pro ac tiv ely inco rp or ate wi der emp loye e pay as imp or t ant contex t fo r fr aming exe cuti ve pay considerations. This year we were also prov ide d wit h greater in sight s into the remuneration and benefit arrang ements, includin g gend er pay p ositi oning in o ur major regi ons , which f acili tate d infor mativ e and insight ful dis cus sions re gardin g diver sit y, equi t y and inclusi on (DEI) p rac ti ces in o ur major market s. I had th e opp or t unit y to fur ther sup plem ent theC ommit te e’s unders tandin g of the p ay andrel ate d pol icie s for th e broa der wo rk for ce by at tendin g our UK and Ir elan d E xpe rian Peo ple For um , in per so n. I was o nce a gain ver y impre ss ed w ith th e level of e ngag ement f rom employ ee s and I fo und the t wo - way nat ure of the dis cussi ons pro vid ed valuab le insight s. In the co urs e of my discus sion s with t he For um it was ve r y app arent t hat emplo yee s appreciated the open and honest approach tocommuni cati on that our s enio r lead ers demonstrate d over the year . The fee dback include d many ref eren ce s to the valu e of our mental h ealth an d welln es s initiat ive s. I t was equally cl ear that em ploye es c ontinue to va lue our cur rent r ewar d oer ing , and that t he addi tional b ene fit s intro duc ed in F Y 22 on the back of th e UK T o tal Rew ards O ptimisa tion Project were ver y well received. Those additional benefits included the introduction ofcrit ical il lne ss cov er , incr easing b onus opp or tuni tie s and the e xte nsion of p ri vate medical coverage deeper into the organisation, in addi tion to th e grantin g of 'T hank You' share s to employee s global ly . Follow ing a re view of th e Gro up’ s financial per formanc e and co nsider atio n of all busine ssp rio ri ties , inclu ding tho se tha t arenon -fi nancial in natur e, the C ommit te e wassa tisfi ed tha t the lev el of bo nus payo ut aligne d fair ly and a ccur ately to the y ear’s achiev ement s . While th e F Y22 annual b onus isa refle c tion of th e F Y22 p er f orman ce, th e Commi tte e al so co nsider ed th e per formanc e deli vere d acr oss b oth F Y 21 and F Y22 and wass atisfi ed t hat the c umulat ive 22% gr ow th deli vere d for b oth rev enue and B enchmar k EBI T acr oss t his t wo -ye ar pand emic p er iod refle ct ed a ver y stro ng financial p er for manc e. Therefore, no discretion ( upwards or down wards ) wa s deemed necessary. Fulldetail s of th e annual bonus o utcom es arese t out in th e Annual r epo r t on dir ec tor s’ remuneration. Threshold 25% T arget 50% Actual 100% Maximum 10 0 % 127 Experian plc Annual Report 2022 Gover nance Code principle Remuneration Repor t on directors’ remuneration contin ued A: In r ec ent year s, we hav e consulte d quite ex tensiv ely and b enefi t ted fr om op en and construc tive shareholder engagement, whichle d to a number of chan ges to o ur Remuneration Policy at the 2 020 AGM. Th eCom mit tee p roa cti vely c onsid ers t he Remuneration Policy each year , to ensure itcont inues to b e fit fo r pur pos e, re mains aligne d wit h the Gr oup’s long-ter m st rate gy, and al so re flec t s the r apidly chan ging environment in which we operate. Th e Commi t tee b eliev es that o ur curr ent Remune rati on Pol ic y is the m ost ap pro pria te for our busin es s and that it s app lic ation is a cr itic al enabler of o ur long -ter m str ate gic obje ct ive s. This w as per haps m ost e vid ent over th e las t t woyear s , as our Po lic y pr ovi ded u s with t he nec es sar y flexib ilit y to r espo nd to th e challeng es of the pa ndemi c – by ret aining o ur incent ive metr ic s bu t ref lec tin g the e con omic circums tan ces in t he tar get s – wi thou t nec es sitat ing any excep tional awar ds or adjus tment s to th e in-f light p lans to a ddre ss any of the co ncer ns br ought ab ou t by COV ID - 1 9 . We do not pr opo se to make any chang es toour Remun er ation P oli cy at t his time . However , we value ou r investors' i nsights andloo k for w ard to und er tak ing meanin gf ul, ope n and hon es t enga gem ent wit h our inves tor s fol lowin g the 2022 AGM . Q&A Another core theme was employee appr eciat ion for t he enhan ced fl exibil it y prov ide d in wor kin g fro m home an d the develo ping pr ac tice of hy br id and rem ote wor king g oing fo r war d. We had t aken the opp or tuni t y of the UK na tional lo ckdown s to ref urbish o ur main Not tin gham oc e, and to make it a mor e at tr ac tiv e pla ce fo r emplo yee s whos e pr efer ence is to w ork f rom an o ce environment. Our enhanced flexible working enviro nment , combin ed wi th our br oade r rewar d oe ring , are imp or t ant fac tor s in enablin g us to at tr ac t and re tain key t alent andit wa s ver y e nco uragin g to hear t hat emplo yee s felt t hey co uld thr iv e even m ore with t he ne w ways of wo rk ing. People and culture More t han ever , cr eating an d maintaining an agile, inn ovati ve, high - per forman ce cultur e is a key pr ior it y fo r E xpe rian as w e look to maint ain and dev elop an envir onment tha t enable s our employ ee s to per form an d be su cce ss ful . Th e E xpe rian Way , our uniqu e and con sistent way of wor kin g globally, inform s how our pe ople ac t and b ehave , thus shaping o ur cultur e. E xp erian's culture is a ke y enabler ofour suc ces s, an d this was cle ar to se e overth e la st t wo y ear s, as e vid ence d by thes tron g financial pe r for manc e deli vere d, while 83% ofth e global wo rk for ce cont inue towor k remo tely. Th e coll egiate nat ure of th e E xp erian Way, gener ate d via our co nnec te d global ne t wor k, has undo ubtedly sup por ted the de live r y of ourver y stro ng financial r esult s . Howev er , asIment ione d pre vio usly, the challenge w ill bemaintainin g this s tron g cultur e in the ne w working world, wh ere remote working becomes standard practice. In 2021 we par tic ipate d in the Gr eat P lac e T oWor k global sur vey, and the re sults demonstrate d that the initiatives introduced over th e las t t wo ye ars , includin g the ref urbishm ent of so me of our o ce hubs andoth er initiat ive s to make our wo rk pla ces at tra ct ive fo r employ ee s to coll abo rate , have posi tion ed us we ll as a mo der n emp loyer . We appre ciate that m easur ing cult ure is dicult . T o inf orm o ur own as se ssm ent of culture , the C ommit te e con sider s a ran ge ofquantita tive c ulture - rel ated dat a, w hich mayals o pr ovid e usef ul infor mat ion for ourinve stor s and ot her s takeho lder s . Fur therin sight s on the se imp or t ant met ric s can b e foun d in the Sus tainable B usines s Per formance Data , including sp eci fic disclosures on Exp erian employee attr ition andemploy ee co mposi tion. D etail s on D EI canb e foun d on pa ge56 . Ex perian’ s executive remuneration policy In rec ent year s , we have be nefi t ted fr om op en and construc tive shareholder engagement, which le d to a numbe r of change s to our Remuneration Policy at the 2 020 AGM. Follow ing the se chan ges , we have b een consistently applying the Remuneration Policy , and al so inc orp or ated s ome gov ernan ce -le d be st pr ac tic e elem ent s as appr opr iate. I w as ver y p leas ed to s ee th e st rong l evel of shareho lder s uppo r t we re cei ve d for our Remuneration Report at the 202 1 AGM. Th e Commi t tee pr oac ti vely con sider s the incentive arrangement s each year , to ensure they c ontinue to b e fit for p urp os e and align ed with t he Gro up’ s long -ter m st rate gy. It is als o impor tant for th e Pol icy to r efle ct t he ra pidly changing environment in which we operate. Th eCommi t tee is co nfident o ur cur rent Remune rat ion Po lic y remain s the m ost appro pria te for our b usine ss and i ts ap plic atio n is a crit ical enab ler of our lon g-te rm s tra tegic obje ct ive s, as i t is desi gned to: a d eliver s trong finan cial per for mance a r eward long-ter m sustainable growth a ensure ee ctive shareholder alignment a f acilitate the attrac tion of critical talent. Th e unpre ce dented e vent s of the l ast t w o year s came w ith a numbe r of challeng es bu t remaining c onsis tent wit h the Po lic y has enable d E xp erian to co ntinue our gr ow th agen da. O ur Remun era tion P olic y, and in par t icular i ts in centi ve pl ans, co ntinue d to challeng e and mot ivate o ur leade rship teams to succ es sf ully del iver e xcepti onal grow t h. Impor tantly we wer e able to ret ain cri tical talent an d als o we: a di d not ne ed to make any chan ges to o ur in- flight LTI plans , inclu ding the performan ce ta rgets. a di d not ne ed to make any chan ge to the per formance metr ics or evaluation methodolog y . a di d not ne ed to gr ant any supp lement ar y one - o or a d- hoc in centi ve award s to reta in key tale nt, inclu ding b elow Bo ard le vel . While t he Co mmit tee is c onfi dent our c urr ent Remune rat ion Po lic y remain s the m ost appro pria te for our b usine ss , we look f or war d to takin g the o pp or t unit y of the 2023 Re muner ati on Poli cy r evie w to once a gain enga ge op enly and proa ct ively w ith our shar ehol der s and ensur e any view s and opinio ns are co nside red an d refl ec ted inour appr oach g oing fo r war d. In March 2022, we is sue d a let ter to our maj or shareho lder s and th e prox y a dvi sor y bodi es , to prov ide an up date on o ur appr oach to exe cut ive pay in F Y23 an d to invite any c omme nts andfe edba ck. Fo r full tr anspar enc y we have include d so me det ail s on the que st ions r aise d andour r esp ons es in or der to pr ovi de so me addit ional co ntex t. Q: O n the b ack o f COV ID - 1 9 m any companies hav e signalled their int ention to mak e changes t o their Remuneration Policy . Is Experian considering making any ch anges to the Remuneration Policy whe n it is ren ewed at t he 2023 AGM ? Q: D oes E xp er ian ant icipa te incorporating Environmental, Social and G over nance (E S G) metr ic s into t he exec utive inc entive plans ? A: W e appr ecia te that E SG is an impo r tant indic ator for s ome inv es tors of a c ompany ’s commitm ent to long-ter m sust ainable per forman ce. W hile alre ady a cti vely under taking a h olis tic as se ssment of per forman ce by r evie wing a b roa d ran ge ofmetr ic s, ov er the l as t year th e Commi t tee has be gun to con sider th e appr opr iatene ss ofincor p orat ing a spe cifi c ES G met ric into our exe cuti ve pay ar ra ngem ent s. We b elie ve any metr ic to b e include d woul d nee d to res onate s tro ngly wi th our p urp ose . Our pur po se is inter tw ined w ith th e st rate gic obje cti ve of cre ating lon g-te rm va lue for all our s takeho lder s . Crea ting a b et ter tom or row Experian plc Governance 128 Code principle Remuneration Loo king for ward A s we continu e to emer ge f rom th e COV ID - 1 9 pand emic , we do so w ith a lot of m oment um. Iam confid ent that th e decisi ons we have taken , and st rate gic inve stm ent s made , combined with the ex ceptional perfor mance deli ver ed in F Y 22 acro ss all o ur key mar kets , prov ide s a sprin gbo ard for t he C ompany to continue to deliver strong fi nancia l per formanc e and grow th. I will b e step ping d own fr om th e E xpe rian B oard at the c onclusi on of the 2022 AG M, and w hile myass ociat ion wi th the C ompany w ill chang e tobein g one of many inter es ted share hold ers , my keen inter es t in and asp irat ions f or the Company cont inues. I have be en pr oud to b e par t of t he E xp er ian Boar d for t he la st nin e year s. It ha s be en apleas ure to wor k wi th my fel low Bo ard memb ers , both p ast an d pre sent , to shape thes trate gic dir ec tion of su ch an innova tive company, and to se e how the s tr ategic decisi ons und er taken o ver the y ears hav e come to f r uition to e nable E xp er ian to grow into a succ es sf ul F TSE 30 c ompany. Whe n I took o ver as Chair , I was fo r tuna te toinher it the p osit ion wi th ver y stro ng shareho lder e ngage ment and s uppo r t fo r ourex ecutive remuneration arr angements . Iam pleas ed to s ay that p osit ion has co ntinue d and I was e ncour ag ed by th e st rong shareho lder s uppo r t re cei ved a t the 2021 AGM. Th e Commi t tee wil l continue to l isten to an d ac t on fe edba ck fro m our shareh olde rs . A smentio ned p rev iously, we look for ward toengagin g wit h and se ekin g ope n and hone stf ee dback f rom our shar ehol der s and the pr ox y ad vis or y b odi es l ater in th e year . Th ose inter ac tio ns wil l be key a s we con sider any potent ial change s to our re muner ation appro ach in a dvan ce of the 2023 Remuneration Policy vote. I hop e that I have pr ovi ded s ome h elpf ul insi ght and br oade r contex t on E x per ian's FY22 per for mance, that enables sh areholders tosupp or t ou r Annual r epor t on dire ctor s’ remuneration at the 202 2 AGM. by improv ing financial h ealth sup por ts the long -ter m succ es s of our busin es s by strengthening our reputation and stakeholder relationships, driv ing innovation, generating new re venue s tream s, and cr eating p otential new cus tom ers f or us and o ur client s by increasing finan cial inclusion. A s has be en our p rev iou s pra ct ice, b efo re making any chang es to our p er f orman ce metr ic s, w e consi der it is imp or t ant to enga ge with o ur major share hold ers . We ther efor e prop os e to rea ch out a gain, fo llow ing th e 2022 AGM, to b egin m ore de taile d discus sion s on the appro pria tenes s of any chang es that may b e prop os ed to our p er f orman ce me tri cs ah ead ofour Remun era tion P olic y r enew al in 2023. Welook fo r ward to un der taking me aningf ul engag ement w ith o ur shareho lder s la ter in 2022. eligib ilit y to th e L T I , we are enab ling mo re employ ee s to share in E xp er ian’ s f ur th er grow th. a A ct ing on fe edb ack : I menti one d in las t yea r's Repo r t that o ur UK& I busin es s unde r too k a T otal Reward Optimisation project immedia tely pr ior to t he pan demi c. We impleme nted s ome imme diate chang es in F Y21 , su ch as cri tic al illne ss c over . In F Y22 we made a number of planned enhancements to our emp loye e rewar d fr amewo rk dir ec tly on the ba ck of the f ee dback r ec eive d fr om employ ees , includin g incre ase d bonus opp or t unitie s for UK em ploye es an d enhanced medical coverage. Q: M any F T SE 100 compa nie s are experiencing challenges attracting and retaining talent, particularly technical talent, following the global pandemic. Wha t ste ps, i f any, has Exp er ian t aken tomit igate t he im pac t of ‘ Th e Grea t Resignation’? A: As a grow th company, attr ac ting and reta ining tale nt – par ti cular ly techni cal tal ent – is pivo tal to our f ut ure grow th str ateg y. Atseni or leve ls , our r emune rati on fr amew ork is a crit ical enab ler of our abil it y to comp ete for key le ade rship ta lent. At an e mploy ee lev el , we have take n a number of s teps in r ece nt year s to ensur e we continu e to be an at t rac ti ve pla ce fo r emplo yee s to wor k includ ing: a ' T hank Y ou' share awar d: as a techno logy company, equit y is a cr itic al tool to enab ling us to comp ete for t alent . In Augus t 2021 , wegrante d share s wor th US$ 80 0 to all employ ees b elow s enior mana gement , wi th the pr omise of a f ur t her 2-for- 1 matching share awar d in Augus t 2024 if employee s chose to r etain t heir or iginal share awar d. Th e purp os e of the Award w as to thank employ ee s for th eir de dicat ion and r esili ence over the pandemic, and by delivering the award in shar es tog ether w ith th e fu ture matching awar d, we can e nsure all employ ee s can b enefi t fr om our f utur e share pri ce grow th ambitio ns. T he p lan was v er y well r ece ive d by empl oye es wi th over 8 0% of employ ee s stil l holdin g their o riginal shar es . a E x pan ded LTI eligib ilit y : as t he ‘war f or techno logy t alent’ inte nsifi es we al so exp ande d eli gibili t y to re ceiv e re str ic ted s to ck L T I awar ds to emplo yee s fur ther dow n the organis atio n in som e of our key mar ket s. A swith th e ' Thank You' share award, this s tep was cr itic al to enablin g us not only to c ompe te for and r etain t alent b ut, b y expa nding Q: I n Janua r y 2022 th e Grou p announced the appointment of Craig Bo und y as Ch ief O per ati ng O ce r (COO) ee c tive f rom 1 A pr il 2022 an d that Kerr y Will iams w ill rema in wi th the Grou p unti l the e nd of F Y23. C an yo u provide clarity on the remuneration arrangements for both individuals ? A: Following Ker r y ’s announcem ent of his intention to r etire w e are ple ase d to have be en in a po sitio n to make not on e but t wo plann ed inter nal appo intment s – Cr aig Boun dy’s appo intment to C OO and J ennife r Schul z’s appointm ent to CEO, No r th A mer ica . For the C ommit te e, it is p leasin g to have the str engt h and dep th of talent inte rnally to appo int t wo such cr itic al rol es for o ur busine ss . Bot h appo intment s wer e par t of our pl anned inte rnal suc ces sion s tra tegie s and we are p leas ed to n ow be in a p ositi on to manage th e smoot h transi tion of b oth rol es and our ap proa ch for F Y23 refle ct s this . Follow ing his app ointm ent on 1 A pril 2022, Craig a ssum ed many of th e global responsibilities of Chief Oper ating Ocer . A spar t of his app ointm ent, we ann ounce d thatCr aig will b e app ointed to t he B oard as anexec uti ve dire cto r fol lowin g the AGM in July2022. A s par t of t his plann ed su cce ssion , Kerr y will remain w ith E x per ian until 31 March 2023, to facil ita te a smoot h tran sition . From a rem uner atio n per spe c tive , our pr evail ing Remuner atio n Poli cy an d the s tandar d level of awards w ill apply to Cr aig as th ey have app lie d to Kerr y . His annual bonu s opp or tuni t y will b e 1 0 0% of bas e sal ar y at ta rget an d 200% of ba se s alar y at maxim um. His leve l of PSP awar d will al s o be aligne d to 200% of s alar y as is the c ase f or our execu tiv e dire ctor s . Crai g’ s bas e sal ar y f or F Y23 is US$ 1 ,0 00,0 00, whi ch is slightly low er than Kerr y (US$ 1 ,075, 000). Ker r y wil l earn his n ormal remun erat ion pa ckage dur ing F Y 23 and the nor mal exi t arr ang ement s fo r a retir ee in th e USA wil l apply at t he end of F Y23. 129 Experian plc Annual Report 2022 Gover nance Code principle Remuneration Executive director remuneration arrangements for F Y23 The CIP is designed toincentivise cash discipline while the PSP is designed toincentivise shareholder returns. Revenue growth is a key metric for us and will provide a quality of earnings balance tothe important profitfocus of Benchmark EBIT. However, growth isthe single most important aspect ofour business strategy and therefore adjusted Benchmark EPS runs across bothplans. Our exe cuti ve pay f ram ewor k Annual bonus CIP PSP Share ownership As at 31 March 2022 and calculated as outlined on page 140. Brian Cassin Actual holding 17 x salary 14 3 Lloyd Pitchford Actual holding 14.9 x salary 12.9 2 Kerry Williams Actual holding 6.8 x salary 4.8 2 Per formance snapshot Annual repor t on direc tors ’ remuneration Performance measure Incentive plan Outturn Achievement (% of max) Benchmark EBIT growth Annual bonus 19% 100% Revenue performance growth Annual bonus 17% 100% Three-year Adjusted Annual Benchmark EPS growth CIP/PSP 11% 100% Three-year cumulative Benchmark operating cash flow CIP US$4.7bn 100% Three-year Adjusted Return on capital employed PSP 16.6% 100% Three-year TSR outperformance of FTSE 100 Index PSP 35% 100% * At constant exchange rates * * Po si ti ve em pl oy ee e ng ag em ent a s me as ur ed i n th e 2021 G re at P la ce t o Wor k su r v ey. A s a resu lt of the p er fo rmanc e shown ab ove : Our executive remuneration at a gl ance 19 % Benchmar k EBIT grow th 17 % Reve nue p er f or man ce US c 12 4 . 5 Benchmar k EPS 16 . 6 % Adjusted Return on capitalemployed 78 % Employee engagement ** Executive director si ngle figure o f pay Brian Cassin £9.9m Lloyd Pitchford £6.2m Kerry Williams US$10.7m 0 2,000 4,000 6,000 8,000 10,000 12,000 Fixed elements of pay: Base salary Pension and benefits V ariable elements of pay: Annual bonus Share-based incentives: value at gr ant Share-based incentives: value attributable to shar e price growth and dividend equivalent payments ’000 Incentive awards timelines Grant Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Annual bonus CIP PSP Performance period Holding period Guideline Additional holding a Salar y inc reases of be tw een 2. 4 % and 2.5% awarde d to exec utiv e direc tor s e ec tiv e 1 June 2022. a Pension co ntrib uti ons fo r UK-bas ed e xecu tiv e direc tor s wil l be aligne d wi th the r ate pr ovid ed to th e major it y of th e UK wor kf orce ( 1 0% of s ala r y) fr om 1 Januar y 2023 (alr ead y align ed in US A). a A nnual bonus base d on B enchmar k EBI T (80%) and revenu e per forman ce (20%). The op por tunit y is 20 0% of bas e sal ar y. Halfofany payo ut mus t be d efer re d into the CI P for thr ee ye ars . a CIP awards will b e bas ed o n cumula tive B enchmar k op era ting cash fl ow (50%) and adjus te d Ben chmark E PS (50%). Th e maximum awar d remains a 2:1 match. a PSP aw ard s will be ba se d on TSR (25%), ROCE (25%) and adjuste d Ben chmark E PS (50%) pe r for manc e. T he opp or t unit y of 20 0% ofbas e sala r y is unchang ed . a T wo-year p ost-vest holding per io d appl ies to b oth CIP an d PSPawar ds . a M alus an d clawb ack pr ovision s apply to all in centi ve awards . a E xisting in-employment sharehold ing guidelines will appl y fort wo year s po st- employm ent. 80% Benchmark EBIT 20% Revenue 50% Adjusted Benchmark EPS 50% Cumulative Benchmark operating cash flow 50% Adjusted Benchmark EPS 25% ROCE 25% TSR Experian plc Governance 130 Code principle Remuneration This A nnual rep or t on direc tor s’ remune rati on will b e pu t to shareho lder s for an a dv isor y vote at the A GM on 21 July 2022. Th e Rem une ra tio n Commi t tee has p repar ed it o n behalf of t he Bo ard in lin e with t he UK C ompanie s Ac t 2006 , Sche dule 8 to th e UK La rge an d Medium - sized C ompanie s and Gro ups ( Acc ount s and Rep or t s) Re gulati ons 200 8 (as amen ded) an d the L ist ing Rule s of the UK F inancial C ondu ct Au thor it y. Al l of th e se ct ions which have b ee n audite d by the C ompany ’s exter nal audito r , KP MG, have b een n oted . What did we pay our executive direc tors in the year? (audited) Th e table b elow sh ows th e single tot al figure of r emun erat ion fo r the exe cuti ve dire c tors , for t he year s end ed 31 March 2022 and 31 March 2021 . Fur ther e xpl anator y informa tion is s et ou t below t he tab le. Brian Cassin Lloyd Pitchford Kerry Williams 2022 £’000 2021 £’000 2022 £’000 2021 £’000 2022 US $’000 2021 US $’000 Fixed pay Gross salary 1,2 991 973 613 600 1,049 1,028 Salary waived 1,2 – (122) – (75) – (128) Post-waiver salary 991 851 613 525 1,049 900 Benefits 3 26 24 59 23 40 42 Pension 198 194 122 120 12 10 Total fixed remuneration 1,215 1,069 794 668 1,101 952 Performance-related pay Annual bonus 4 1,982 1,776 1,225 1,096 2,092 1,872 Share-based incentives Value delivered through performance 5 5,154 3,351 3,180 2,067 5,738 3,734 Value delivered through share price growth anddividends 6 1,587 1,625 980 1,001 1,761 1,790 Total variable remuneration 8,723 6,752 5,385 4,164 9,591 7,396 Total single figure of remuneration 9,938 7,821 6,179 4,832 10,692 8,348 1 In F Y21 ou r exe cu ti ve d ir ec to rs v ol unt ar il y wai v ed 25% o f th eir c on tr ac t ual b as e s al ar y f or s ix m ont hs . F Y 21 gr os s sa la r y is t he b as e sa la r y th e ex ec ut iv es w ou ld h ave r e cei ve d i f th ey ha d no t wa iv ed ent it le me nt to ap or tio n of th ei r sa la r y. Th e am ou nt s of s al ar y w ai ve d by B ri an C as si n, L lo yd P it chf or d an d Ker r y W il li am s in F Y21 w er e £121 , 562, £ 75, 00 0, a nd US $1 2 8,1 2 5 re sp ec t iv ely. 2 Fo r Ke rr y Wil li ams , t he s al ar y a l so r efl ec t s th e ti min g of US p ay r oll p ay m ent s . 3 Fo r L loy d Pi tc hfo rd t he v al ue sh ow n in b en efi t s in clu de s th e gai n re al is ed o n ex erc is ing 1,470 Sh are s av e opt io ns g ra nte d un de r th e 2016 5-y ea r UK S har es av e Pl an . T he s har e pr i ce o n the d at e of ex er cis e , 25No ve mb er 20 21, was £3 3.94 and t he e xer ci se p ri ce w as £10.2 0. 4 T he F Y21 ann ual b o nus o pp o r tu nit y i s ca lc ul ate d a s a pe rc ent a ge of t he e xe cu ti ve d ire c to r’s an nua l ba se s al ar y. Bria n C as sin , L loy d Pi tc hfo rd a nd K er r y W il lia ms’ F Y21 ann ual b o nus e nt it lem en t s wer e ca lcu la te d on t he ir gr os s sa la r y am ou nt s fo r th e ye ar of £ 972 ,50 0, £6 00 ,0 00 a nd US $1 ,0 25,0 0 0 re sp ec t iv ely. 5 Val ue d el iv er ed t hr ou gh p er f or ma nc e is c al cul at ed a s th e nu mb er of s ha re s ve st in g un de r th e CIP a nd P SP m ult ip li ed b y th e sha re p r ice o n th e da te of g ra nt . Wi th t he e xc ept io n of t he S AYE op ti on s exe rc is ed b y Ll oy d Pi tc hfo rd i n No ve mb er 20 21, incl ud ed a bo ve i n be ne fit s , no ne o f th e exe cu ti ve d ir ec to r s exe rc is ed s har e op ti o n s in th e ye ar s en de d 31 Ma rc h 202 2 or 2 021. 6 Fo r F Y 22, t he v alu e de li ve re d th ro ug h sha re p ri ce g ro w th a nd di v id en ds is c al cul at ed a s (i ) th e di er en ce b e tw e en th e av er ag e sh ar e pr ic e in th e l as t th re e mo nt hs of t he fi nan ci al ye ar a nd t he sh ar e pr ic e on t he da te of g ra nt m ult ipl ie d by t he n um be r of v es te d pe r f or man c e sha re s, p lu s (ii ) div i den d e qui va le nt pa ym en t s for t he n um b e r of v es te d p er f or ma nc e sha re s . For F Y21, this i s ca lc ula te d ba s ed o n (i) t he di e ren c e be t we en t he sh ar e pr ic e on d ate o f ve s t and t he s har e pr i ce o n th e dat e of gr an t mul ti pl ie d by t he nu mb er o f ve st ed p er for ma nc e sha re s , plu s (ii ) di vi de nd e qu iv ale nt p ay me nt s fo r th e num be r of vested per for mance shares. 7 Fo r F Y 22, t he to ta l sin gl e fig ur e of re mu ne ra ti on f or B ria n C as sin a nd L lo yd P it chf or d in US $, a pp lyi ng t he a ve ra ge e xch an ge r at e ove r th e ye ar o f £1 :US $1 .3 66 5 (2 021: £1 :U S$1.3081), is US$13.6m ( 2021: US$10.2m) a nd U S$ 8. 4m (2 021: US$6 .3 m) r es pe c ti ve ly. How has the single figure b een calculate d? (audited) Salary Sal ar y incr eas es t y pica lly take e ec t fr om 1 Jun e. T he Co mmit tee ap prov ed s alar y increas es f or exec uti ve dire cto rs of b et we en 2 .3% an d 2.5% with eec t from this date : 1 June 2021 ‘000 1 June 2020 ‘000 % increase Brian Cassin £995 £973 2.3% Lloyd Pitchford £615 £600 2.5% Kerry Williams US$1,050 US$1,025 2.4% In awardin g thes e incre ase s, w e consid ere d a number of f ac tors , includin g the ap proa ch to emplo yee r emuner atio n throu ghou t the Group, the prev ailing e con omic co nditio ns and p ositi oning a gainst th e market a s well as in divi dual per forman ce. T he glob al employ ee s alar y review budget forF Y22 w as 3.2% an d for o ur emplo yee s in the US A and UK t he sal ar y r evi ew bu dget w as 2.5%. 131 Experian plc Annual Report 2022 Gover nance Code principle Remuneration Benefit s and pension T axab le be nefi ts in clude li fe insur anc e, pr ivat e health care , a comp any car or c ar allowan ce and , wher e rel evant , the valu e of an y gain real ise d onexercis ing Sharesave options. Brian C as sin and L loyd Pi tchfor d are el igible to p ar ticip ate in a de fined c ontr ibuti on pe nsion p lan bu t ele cte d not to do s o dur ing th e year en de d 31March 2022. In 2022, Brian C ass in rec eive d a ca sh suppl ement of £1 98, 250 (2021 : £1 94,500), and Llo yd Pi tchford r ec eive d a ca sh supplem ent of£1 22,50 0 (2021 : £1 20,00 0), in lieu of the ir pensi on cont rib utio ns. Kerr y Will iams par ticipate s in a defin ed cont rib utio n plan (401 k ). Th e company c ontr ibut ion to this dur ing th e year wa s US$ 1 1,83 1 (2021 : US$9 ,6 4 4). Lloy d Pitchfo rd par ticipate d in the 201 6 UK all- em ploye e Shares ave Pl an. T he gain re alise d by L loyd Pi tchford o n exercising his Share save op tions , grante d in June 201 6, wa s £34 ,898. No exe cuti ve dire cto r has a pr ospe c tive r ight to a de fine d ben efit p ensio n. Annual bonus Ove rvie w All E xp er ian employ ee s par t icipate in a v ariab le pay pl an. We have on e annual bonu s plan in op er ation a cros s E xp erian an d the m ajority (c. 1 3,000) ofour wor kf orc e par t icipate in t his plan . Th e remain der of emp loye es par ticipate in a s ale s commis sion pl an. How t he annual b o nus p lan wor k s var ies slightly d epen ding on r egion an d gra de. For th e vas t major it y of empl oyee s, annual b onus awar ds are ba se d on the p er fo rman ce of their p ar ti cula r business line or region. E xecut ive dir ec tors ar e re quire d to defer half of any b onus e arn ed for t hre e year s throu gh the C IP , altho ugh th ey may choo se to d efe r mor e. Thisy ear ,as in p rev ious ye ars , all thr ee exe cut ive dir ec tor s chose to v oluntar ily def er their f ull b onus p ayme nts into t he CI P. Our exe cuti ve annual bo nus plan is b ase d upo n t wo per forman ce me tric s , which ar e Ben chmark EB IT gr ow th (80% wei ghting) and r eve nue per forman ce (20% weight ing). Be nchmark E BI T is an impor tant ear nings me tric an d fo cuse s on item s direc tly w ithin mana gement ’s c ontrol. T obal ance t he pro fit fo cus of B enchmar k EBI T , revenu e per for mance gro w th was a dde d to the b onus pl an in F Y20 to p rovi de an impo r tant qua lit y ofearnin gs elem ent to the annual p er fo rman ce. How d o we set t he b onus t ar get s? Per f orman ce -r elate d pay is a ke y comp onent of o ur rewa rd st ru ct ure for al l employ ee s and, as s uch, s et ting s tre tching tar get s i s a cr iti cal fo cus are a for th e Commi t tee. Ev er y ye ar we und er take a r igo rou s exercis e to ensur e that our t arge ts ar e su ciently s tre tching, t aking int o consideration the ex ternal mar ketp lac e and our ow n per for mance asp irati ons . Th e Commi t tee co nside rs ta rget s at th ree s epar ate Remun era tion C ommit tee meetings during th e year : Annual repor t on direc tors ’ remuneration contin ued Step 1 In January , the Committee considers the wider context, and is pr esented with an early indication of how performance is tracking in the curr ent year . The Committee’s independent remuner ation advisers are invited to provide the Committee with a wider assessment of the pay envir onments in the rel ev ant locations for our business. Step 2 In March, budgets for the forthcoming year are discussed and agr eed by the Board. At its March meeting, the Committee has a first look at possible targets for the forthcoming year , taking into account a number of factors including: the strategic plan brokers’ earnings and estimate s wider economic expectations our key competitors’ earnings estimates, including a number of different peer groups. Step 3 By the time the Committee meets again in May , budgets for the forthcoming year have been agreed and the performance outcomes for the current year have been reviewed by our auditor. The Committee takes these into account during its determination of prior year outcomes and its final review of the targets for the current year , befor e signing them off. Th e Commi t tee is abl e to take a ho list ic appr oach to t arg et set t ing as all o ur non - exec uti ve dire ctor s sit o n the Remun era tion Commit tee, as well as onall of our ot her pr incipa l Boar d Co mmit tee s. T his ensur es C ommit te e memb ers ar e fully ap pr ised of t he wid er busin es s contex t and the G roup’s busine ss p rosp ec t s over th e coming y ears , par ticular ly as th e Bo ard me etin g to discus s the b udg et and bu sines s plan u sually tak e s pl ace p rio r to the Remuneration Committe e meeting. Annual bonus outcome Revenue p er f or mance is c alcula ted as th e Gro up total r evenue gr ow th af te r the re moval of int ra - Grou p sale s, and B enc hmark EB IT is bas ed on ongo ing ac ti viti es . Per f or mance is me asure d on a co nst ant cur ren cy ba sis to str ip ou t the e ec t s of exchange r ate fluc tua tions , w hich are o ut side ofmanagem ent’s contr ol. T he C ommit te e al so exclud es the imp ac t of any material a cquisiti ons or disp osal s mad e in the yea r , to ensure both metr ics are mea sure d consis tently, which is in line w ith our ap pro ach to long -ter m inc entive p lan m easure s. Th e F Y22 annual b onus tar get s wer e set a t a ver y s tre tching leve l that , for b oth met ric s , requir ed do uble - digit gr ow th to ac hie v e tar get . Buildin g on the re silie nt per forman ce of F Y21 , t hes e tar get s were d esign ed to signal o ur unchang ed ambi tion of pr e -pan demic t imes . Experian plc Governance 132 Code principle Remuneration Th e table b elow sh ows our gr ow th in Be nchmar k EBI T and re venue p er f orman ce for b onus p urp ose s rel ativ e to the F Y 22 agre ed t arge ts. Metric Weighting % growth required for threshold payout % growth required for target payout % growth required for maximum payout FY22 actual growth Annual bonus achievement Benchmark EBIT growth 80% 6% 11% 14% 19% 100% Revenue performance growth 20% 6% 10% 12% 17% 100% Total annual bonus achievement as % of target 100% Bef ore app rov ing the annual b onus o utcom es , the C ommit te e discu ss ed wh ethe r or not th e prop os ed pa yout w as appr opr iate in the c ontex t of both the cur rent e xte rnal env ironm ent and th e Group’s wider b usine ss pe r for manc e during t he year . Th e Commi t tee al so c onsid ers ot her f ac tor s rev iewe d by the B oar d, su ch as our Ne t Pro moter S cor e, emp loye e exp er ienc e, emp loye e enga gem ent re sult s, dir ec t emplo yee f ee dback to t he Committe e Chair at th e Peop le For um, an d the br oad er st akehol der ex per ien ce ove r the financial y ear . A s set o ut ear lie r in the Rep or t , th e Group’s per forman ce in the y ear wa s ver y s tro ng, p ar ti cular ly in th e contex t of th e unce r tain external economic enviro nment . The C ommit te e agr eed t hat the C ompany ’s financial per for manc e was align ed w ith it s hol isti c ass es sment of p er fo rman ce and w as als o sat isfi ed that i t did not n ee d to exercis e any discr etion , and that t he leve l of bonu s payou t was app rop riate . A s such, t he re sulting annual b onus o utco mes f or each e xecu tive dir ec tor (up to a maxim um of 200% of sa lar y) , for t he year e nde d 31 March 2022, arese t out in th e tabl e below. FY22 Bonus payout ‘000 Bonus payout % salary % bonus deferred under the CIP Brian Cassin £1,982 200% 100% Lloyd Pitchford £1,225 200% 100% Kerry Williams US$2,092 200% 100% Each of t he exec uti ve dire cto rs has e lec ted to d efer th eir f ull bo nus into E xp erian shar es und er the C IP for a th ree - year p eri o d. Def err ed b onus share s are not s ubje ct to any f ur th er con ditio ns but may b e matche d, sub jec t to th e condi tion s set ou t in the C IP awards s ec tio n belo w . Share- based incenti ves Th e share -b ase d incent ive am ount inclu ded in th e single tot al figur e of remun erat ion is th e combin ed valu e of the CI P and PSP aw ards v es ting in resp ec t of th e relev ant financial yea r . For F Y22, t hes e rel ate to th e awards gr anted on 1 2 June 201 9 and fo r F Y21 they re late to the awar ds grante d on7June 201 8 . Vestin g in 2022 for b oth th e CIP and P SP awar ds is deter mine d bas ed o n per forman ce ove r the thr ee ye ars en de d 3 1 March 2022 aswell a s continu ed s er v ice . Th e 201 9 LTI tar get s wer e set in May 201 9 , w hen o ur grow th amb itio ns wer e to achiev e sust ainable annual high sin gle - digit gr ow t h and the C ommit te e has not exe rcise d any discr etio n, or ma de any adjus tme nts , in deter mining t he ve stin g outc ome s for th e 201 9 L T I awar ds. O ur st r ong per formance inthe fir st and final y ears of t he pe r for manc e per iod , comb ined w ith our r esili ent financial p er fo rmanc e in F Y21 , w her e we contin ue d to grow de spite the challe nge s pre sente d by th e global p andem ic, r esulte d in the f orm ulaic ve st ing re sult s out line d in the t able b elow. The C om mit tee reviewed the financial pe r for manc e deli vere d, b ut al so co nside red t he exp er ienc e of our inve stor s, e mploye es an d othe r stake hold ers ov er the three- year per forman ce pe rio d. T hro ugh this b roa des t lens th e Co mmit tee ju dge d the fo rmul aic re sult s to be a f air and bal anc ed ou t turn an d , as such , did not make any adjus tment s to th e ves ting r esult s . Th e tabl es b elow show t he pe r for manc e achiev ed again st th e tar get s for th e CIP and P SP award s grante d in June 201 9: CIP awards Performance measure Weighting Vesting 1 Actual Percentage vesting 2 No match 1:2 match 1:1 match 2:1 match Benchmark Earnings per share (average annual growth) 50% Below 5% 5% 6% 9% 11% 100% Cumulative Benchmark operating cash flow 3 50% Below US$3.7bn US$3.7bn US$3.8bn US$4.1bn US$4.7bn 100% Total 100% PSP awards Performance measure Weighting Vesting 1 Actual Percentage vesting 0% 25% 50% 100% Benchmark Earnings per share (average annual growth) 50% Below 5% 5% 6% 9% 11% 100% Adjusted Return on capital employed 25% Below 14.5% 14.5% 15.4% 16.0% 16.6% 100% TSR of Experian vs TSR of FTSE 100 Index 25% Below Index Equal to Index 8.3% above Index 25% above Index 35% above Index 100% Total 100% 1 St ra ig ht- lin e ve s tin g b et we e n th e po int s sh ow n . 2 T he m ax im um op p or t uni t y, whi ch r e qui re s 100% ve s tin g, r e sul t s in a t wo - fo r-o ne m atc h on t he b on us d ef er re d. 3 In l in e wi th t he a pp ro ac h ta ken in p r ev io us ye ar s , th e cum ul at iv e Be nc hma rk o p er ati ng c as h flo w ta rg et s sh ow n ab ov e hav e be e n adj us te d co mp ar ed t o th os e or ig ina lly s et t o ta ke in to ac co un t th e imp ac t ofa cqu isi ti on s an d dis po s al s ma de o ver t he p e r fo rm an ce p er io d . Th e ac t ual c um ula ti ve B en ch mar k o pe ra ti ng c ash fl ow o ve r th e pe r fo r man ce p er i od , of US $ 4.7b n, i s de ter m ine d on a c on s tan t cu rr en c y ba sis . T hi s is in l in e wi th o ur ap pr oa ch f or a ll p er f or ma nc e me tr ic s , to en su re t hat a wa rd s ar e me asu re d on a c on si st ent b as is . 133 Experian plc Annual Report 2022 Gover nance Code principle Remuneration No discr etio n was app lie d in deter mining th e share -b ase d pay ment s that v es ted in eit her F Y 22 or F Y21 . Th e June 201 9 award s had not v es ted at th e date this re por t was finalis ed, an d so th e rep or te d value of t he award s has be en bas e d on t he aver age share pr ice in t he las t thr ee mo nths of th e financial year , which w as £30. 1 5 . Th e value of th e award s include d in the sin gle tot al figur e of remun erat ion is as follows: CIP PSP Value of shares vesting ‘000 Value of dividend equivalent payments ‘000 Total value of shares vesting and dividend payments ‘000 Shares awarded Shares vesting Shares awarded Shares vesting Brian Cassin 134,626 134,626 81,120 81,120 £6,506 £235 £6,741 Lloyd Pitchford 83,093 83,093 50,048 50,048 £4,015 £145 £4,160 Kerry Williams 111,810 111,810 67,338 67,338 US$7,244 US$255 US$7,499 Th e value of Ker r y W ill iams’ shares has b ee n conver ted into US dol lar s at a rate of £1 :US$1 .34 09 , which is t he aver age r ate dur ing t he la st thr ee month s of F Y22. Div iden d equi valent s of 1 42.50 US cent s per shar e will b e paid o n ves ted shar es . Th es e repr es ent the v alue of th e divi dend s that wo uld have b een p aid to the ow ner of on e share b et wee n the date of gr ant and th e date of ve stin g. Th e char t be low show s the make - up of the CEO ’s FY22 sin gle figur e value, in cluding £6.7 m rel ating to t he L TI . O f the £6.7 m LTI v alu e disclos ed for t he CEO, 77% is the v alue at gr ant, 3% is th e value of di vid end e quiva lent pay ment s and 20% is a r esult of shar e pr ice gr ow th b et we en the gr ant date and the ave rag e pr ice ove r the l ast t hree m onths of t he financial ye ar – whic h grew by ov er 26 % . Th e sam e pro por tions ar e tru e for t he other ex ecutive direc tor s. Annual repor t on direc tors ’ remuneration contin ued £0 £20 £40 £60 £80 £100 £120 £140 £160 3 1 Ma rc h 20 19 3 1M a rc h 2020 3 1M a rc h 20 21 3 1 M a rc h 2022 Ex p e ri a n FT S E1 0 0 I n de x Ex p er i an 3 - y ea r T S R rela t i v e to FT S E 1 0 0 In de x 0% 20% 40% 60% 80% 10 0 % FY22 Fixed Annual bonus Long-term incentives (LTI) vesting LTI – share price and dividends 12% 20% 52% 16% B r eak do w n of FY 22 C E O si n gle fig u r e % Upda te to 2021 disclosur e We original ly calcul ate d the valu e of the share aw ards re alise d by our e xecut ive dire c tors in 2021 using th e aver age shar e pri ce f rom 1 Januar y 2021 to 31March 2021 , in line wi th the p res cr ibe d single figur e met hod olog y. This has now b een r evi se d to refle c t the ac tual shar e pr ice and e xchange ra te on vesting, as follows: Three-month average share price to 31 March 2021 Estimated value of long-term incentive awards ‘000 Share price on vesting Actual value of long-term incentive awards ‘000 Brian Cassin £4,715 £4,976 Lloyd Pitchford £25.58 £2,908 £27.05 £3,068 Kerry Williams US$5,105 US$5,524 Experian plc Governance 134 Code principle Remuneration What share -base d incentive awards di d we make in the year? (audited) On 8 June 2021 , awards w ere gr anted to th e execu tive dir ec tor s unde r the CIP an d PSP . Th e fac e value of awar ds made to B rian C a s sin and L loyd Pitchfo rd is show n in po unds s terl ing; the f ace v alue of awar ds made to Ker r y W illiam s is shown in US d ollar s . The numb er of sh are s awarded to Kerr y Will iams was c alcula ted usin g the aver ag e exchange r ate for t he thr ee days p rio r to grant of £1 :US$ 1 .42. All awar ds have be en calculate d using a thre e- day av era ge share pr ic e. In line w ith th e CIP r ules , inves ted shar es f or Br ian Cas sin and L loyd P itchfor d wer e purcha se d with t heir b onuse s net of t ax . In lin e with t he r ules of Th e E xpe rian No r th A mer ica C o -inv es tment P lan , inves ted shar es fo r Kerr y Will iams wer e calcul ate d with r efer enc e to his gros s b onus . Matchi ng awards ar e bas ed on th e gros s value of t he bo nus defe rr ed. Det ail s of the se awar ds are s et out in t he fol lowin g tabl e: Type of interest in shares Basis of award Face value ‘000 Number of shares Vesting at threshold performance Vesting date Brian Cassin CIP invested shares Deferred shares 100% of net bonus £941 35,078 n/a 8 June 2024 CIP matching shares 1 Conditional shares 200% of value of gross bonus deferral £3,553 132,368 25% 8 June 2024 PSP 2 Conditional shares 200% of salary £1,990 74,830 25% 8 June 2024 Lloyd Pitchford CIP invested shares Deferred shares 100% of net bonus £581 21,641 n/a 8 June 2024 CIP matching shares 1 Conditional shares 200% of value of gross bonus deferral £2,192 81,666 25% 8 June 2024 PSP 2 Conditional shares 200% of salary £1,230 46,252 25% 8 June 2024 Kerry Williams CIP invested shares Deferred shares 100% of gross bonus US$1,872 49,313 n/a 8 June 2024 CIP matching shares 1 Conditional shares 200% of value of gross bonus deferral US$3,745 98,626 25% 8 June 2024 PSP 2 Conditional shares 200% of salary US$2,100 55,822 25% 8 June 2024 1 T he n umb e r of sh ar es a war de d to e xe cu ti ve d ire c to rs u nd er th e CI P wa s ba se d o n the s ha re p ri ce a t wh ich i nve s te d sha re s we re p ur ch as ed i n th e mar ke t an d th e fa ce v alu e sh ow n ab ov e is ba s ed o n thi s . Th is p ri ce w as £2 6.8 4 . 2 T he n umb e r of sh ar es a war de d to e xe cu ti ve d ire c to rs u nd er th e P SP wa s ba s ed o n th e ave r ag e sha re p ri ce f or t he t hr ee d ays p r i o r to gr an t, w hi ch wa s £26 .59, and th e f ac e val ue s how n ab ov e is b as e d ont his . PSP awar ds and CI P matching share s grante d in June 2021 will ve st sub jec t to the a chieve ment of th e follo wing p er fo rman ce con di tions: Performance measure Weighting Vesting 1 0% 25% 50% 100% CIP matching shares Benchmark Earnings per share (average annual growth) 2 50% Below 5% 5% 7% 10% Cumulative Benchmark operating cash flow 50% Below US$4.0bn US$4.0bn US$4.2bn US$4.4bn PSP awards Benchmark Earnings per share (average annual growth) 2 50% Below 5% 5% 7% 10% TSR of Experian vs TSR of FTSE 100 Index 25% Below Index Equal to Index 8.3% above Index 25% above Index Adjusted Return on capital employed (average over three years) 25% Below 14.5% 14.5% 15.4% 16.0% 1 St ra ig ht- lin e ve s tin g b et we e n th e po int s sh ow n . 2 M ea sur e d on an o ng oi ng a ct iv i tie s an d co ns t ant c ur re nc y b asi s. Th e Commi t tee r etains t he ri ght to var y the level of v es ting i f it be lieve s that th e leve l of ves ting d eter mine d by mea surin g p er formance is inconsistent with t he Gro up’ s under lyin g financial and o per atio nal per f or mance ove r the p er fo rmanc e per io d. T hes e awards w ill al so only v es t if th e Commi tte e issatis fie d the ve st ing is not b ase d on mater ially miss tate d financial re sult s. 135 Experian plc Annual Report 2022 Gover nance Code principle Remuneration How is the CEO’ s pay linked to Exper ian’ s pe rfor mance ? Th e char t be low shows E x per ian’ s annual TSR p er for manc e compar ed to th e F TSE 100 Index over t he la st ten ye ars . Th e F TSE 100 In dex is t he mos t appro pr iate inde x as it is wi dely us ed and un der sto od , and E xp er ian is a cons titu ent of the in dex . Annual repor t on direc tors ’ remuneration contin ued V a l ue o f £1 00 inv e st ed in Ex p er i a n a n d th e FT S E 1 0 0 on 31 M a r c h 2 0 12 £0 £50 £100 £1 50 £200 £250 £300 £350 £40 0 31 Ma r c h 20 12 31 Ma rc h 20 1 3 31 Ma r c h 20 14 31 Ma r c h 20 1 5 31 Ma r c h 20 1 6 31 Ma rc h 20 17 31 Ma r c h 20 1 8 31 Ma rc h 20 19 31 Ma rc h 2020 31 Ma rc h 2022 31 Ma r c h 20 21 Ex p e ri a n FT SE 1 0 0 I n de x Th e table b elow s et s out o ur CEO’s pay for th e las t ten financial y ears : 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CEO total single figure of remuneration (‘000) 1 Don Robert US$22,974 US$16,290 US$62 0—————— — Brian Cassin — — £1,976 £3,678 £3,647 £6,387 £11,882 £10,836 £7,821 £9,938 Annual bonus paid against maximum opportunity (%) Don Robert 75% 50 %——————— — Brian Cassin — — 38% 100% 89% 58% 85% 80% 91% 100% LTIP vesting against maximum opportunity (%) 2 Don Robert 100% 94% 69 %—————— — Brian Cassin — — 40% 33% 32% 95% 90% 90% 84% 100% 1 Pr io r ye ar nu mb er s ha ve b ee n up dat ed t o re fle c t ac tu al l on g- ter m in c ent iv e pl an o ut co me s. 2 Th e ma xi mum LT IP op p or t un it y v ar ie s as t he C IP op p or t un it y is b as e d up on t he a ct ua l bo nu s ear n ed . Experian plc Governance 136 Code principle Remuneration CEO pay ratio E xpe rian is co mmit ted to g oo d cor por ate gov ernan ce and tr anspar enc y in the r epo r ting of r emune rati on for o ur execu tive dir ec tor s and em ploye es . Wehave pre sente d be low the C EO pay ra tio fo r the ye ar ende d 31 March 2022, in line w ith th e UK re gulato r y re quirem ent s. T he p a y r atios hav e be en calcul ate d using O ption A of t he thr ee m etho dolo gie s prov ide d unde r the r egul ation s, wh ich we b eliev e is the m ost s tat isti cally accurate approac h. Year Method 25th percentile pay ratio Median pay ratio 75th percentile pay ratio Option A 267:1 178:1 112:1 FY20 Total pay and benefits £38,630 £57,803 £91,736 Salary £33,362 £47,869 £77,000 Option A 185:1 124:1 81:1 FY21 Total pay and benefits £40,969 £61,115 £93,574 Salary £32,569 £49,983 £75,000 Option A 226:1 155:1 101:1 FY22 Total pay and benefits £43,957 £64,062 £98,754 Salary £35,467 £50,333 £66,458 Th e CEO valu e use d is the tot al single fi gure r emune rat ion dat a for F Y 22 of £9 . 9m, as o utl ined o n pag e 1 31 of this Repo r t. Fo r UK em ploye es , tot al pay and be nefi ts ar e bas ed o n act ual ear nings fo r the ye ar to 31 March 2022. Annual inc enti ve pay ment s for e mploy ee s have be en cal cu l ated usin g the E xpe rian Gr oup financial p er fo rmanc e outc ome fo r F Y22, as dis close d on pa ge 1 3 3, rat her than any re gional o r market b usines s pe r f orm ance re sult s, to ensur e a like -for-like c ompar ison a cros s remun erat ion s tru ct ures . Se lec ted em ploye e gra des b elow s enior manag ement l evel ar e al so eli gible for annual awards of r es tric te d stoc k, r ather t han the p er for manc e share award s prov ide d to senio r managem ent. W here ap plic able , th e L T I valu e for employ ee s has be en ca lculat ed by app lyin g the aver ag e share pr ice f or the th ree m onths p rio r to 31 March 2022 to the numbe r of restricted st ock awards gr anted to th e emplo yee in Jun e 201 9 . We adop ted this ap pro ach to pro vid e a like -for-like c ompar ison an d ensur e the shar e pr ice gro w th ove r the pr evi ous thr ee ye ars is r efle cte d equal ly in bot h the CEO an d emplo yee LTI value s. Em ploye es o n inboun d and ou tbo und inter na tional assignment s to and fr om the U K have be en exclud ed fr om the analy sis as the ir remun erat ion s tru ct ures un der st andably de viate f rom th e st anda rd approach for UK emplo yee s. Inl ine wi th the guidan ce, on ly indiv idual s emplo yed f or the f ull yea r have be en includ ed in th e analysis . Obser vations on change in CEO pay r atio Th e CEO volunt arily wai ve d 25% of his salar y f or six mo nths in F Y 21 , res ulting in a signi fic antly lower s alar y than in a ‘normal ’ year . Th e F Y22 CEO single figur e has incr ease d by c .27% compar ed to F Y 21 , as the C EO’s pay arran gem ents r etur ne d to nor mal. B y co mparis on th e total p ay and b enefi ts prov ide d to UK emp loye es in F Y22 in crea se d slightly c ompare d to pr evio us year s, a s was th e cas e in F Y21 , as w e have continu ed t o prot ec t empl oye e pay fr om th e same sh or t-ter m financial me asure s that have b ee n appli ed to th e CEO. A s a re sult, t he F Y22 C EO pay r atios f or all percent il es ar e slightly high er than F Y 21 , but imp or t antly are low er than for F Y20 which , as a more ‘ t y pical ’ p er f orman ce yea r , is arguably a m ore appropriate compar ison fo r change. Th e primar y dri ver be hind the hi gher F Y22 CEO pay r atio is th e value of t he L TI r ec eive d by th e CEO in F Y22. A s o utlin ed ea rli e r in th e Rep or t , the Commi t tee did n ot exercis e any discr etion , or make any adjus tme nt s, in de terminin g the v es ting ou tcom es fo r eith er the 201 8 o r 201 9 LTI awards . While t he F Y21 per forman ce wa s ver y r esili ent, an d res ulted in s tron g L TI ve st ing ou t tur ns, th e ver y stro ng pe r for manc e and hig h d ouble - digit grow t h achiev ed in F Y 22, combin ed wi th sus tainable shar e pr ice gr ow th over t he thr ee -y ear pe rio d, r esulte d in a higher F Y22 single figu re valu e. B y way of compar iso n, th e total pa y and be nefit am ount s re cei ved by U K employ ees in F Y22 are highe r than in F Y21 due to the int rodu ct ion o f ad ditio nal ben efit pol icie s in F Y22, inclu ding incr ease d bo nus opp or t unitie s for UK e mploye es in r esp ons e to employ ee fe edb ack gath ere d as par t of the UK T otal Reward Optimisation project. Th e Commi t tee b eliev es it is ap prop riate t hat a signifi cant pr opo r tio n of total r emuner atio n for exe cuti ve dire c tors is ‘at risk ’ and dri ven ent irely by Group p er forman ce, w hich is wi thin the ir powe r to influen ce. In lin e wit h our rem uner atio n prin ciple s the pr op or ti on of total c o mp ensation that is ‘ at risk ’ increases with employee senior it y within the Group. The remuner ation framework is designed to deliver market-competiti ve total compensation. All UK em ploye es p ar tic ipate in a var iable p ay plan . We have one annual b onus pl an in op era tion ac ros s E xpe rian and t he major it y (c. 1 3,0 00) of our wor kfo rce p ar tic ipate in this p lan , prov iding t hem wi th the o ppo r tuni t y to ben efit f rom th e financial p er fo rmanc e that th ey hel p to de live r . Under st andably, more of th e CEO’s total tar get r emuner atio n (71 %) is ‘at risk ’ comp are d to c.8% o n avera ge fo r UK-bas ed emp loye es . A s ev iden ce d inboth F Y21 and F Y22, the C EO pay r atio is th ere fore l ikely to var y , potent ially signi ficant ly , over t ime bas ed o n the Gr oup’s perfor mance out comes. Obser vations on F Y22 pay ratio Th e median p ay ra tio fo r F Y22 of 1 55:1 refle ct s not o nly the s tro ng p er fo rmanc e achie ved in F Y22 but al s o the re silie nt per for ma nc e achiev ed in th e pre ce ding t wo financial y ears , whi ch are re flec te d in the CEO ’s L TI ve st ing valu es . A s L T I valu es c an be highly v ariabl e, dr iven in par t b y fluc tuat ions inshare pr ice , a suppl ement al pay r atio has b ee n prov ide d belo w, where th e value of LTIs has be en exclu ded . Th e CEO single fi gu r e value exclu ding L T Ico mpe nsa tion wa s £3.2m fo r F Y22. Year Method 25th percentile pay ratio Median pay ratio 75th percentile pay ratio FY20 Option A excluding long-term incentives 71:1 47:1 30:1 FY21 Option A excluding long-term incentives 69:1 47:1 30:1 FY22 Option A excluding long-term incentives 73:1 50:1 32:1 137 Experian plc Annual Report 2022 Gover nance Code principle Remuneration Som e impor tant addi tional c ontex t re gardin g our F Y 22 CEO pay r atio in clude s: a We have a r obus t appro ach to s alar y management w hich is und erp inned b y regul ar marke t benc hmarkin g to ensur e we oer c ompe titi ve r ate s ofpay acr oss th e busin es s. We unde r take r egul ar rev iews to maint ain appr opr iate posi tionin g agains t the ex te rnal mar ket-linke d salary ranges. a E x per ian has b een a L iv ing Wag e emplo yer in th e UK since 201 5, an d the m edian s alar y for our UK e mploy ee s (as refle c ted in th e t ab le on the prev ious p age) is mo re than 50% ab ove th e UK aver age . a T he C ommit te e always ha s the co ntex t of the all- em ploye e pay r evie w budg et whe n deter mining s alar y increas es fo r the CEO an d en sur es that any per cent age incr eas e for th e CEO do es n ot exce ed tha t prov ide d to emplo yee s. In F Y22, the aver ag e incre ase in UK e mploy ee ba se pay w as 3% and a2.3% incre ase w as pro vid ed to th e CEO. For F Y23, the UK s alar y revi ew bu dget is 4%, while th e CEO’s sala r y wil l increa se by 2 .5%. a A s m ention ed ab ove, b ase d on fe edb ack re cei ved a s par t of t he T ot al Rewar d Opt imisati on pro jec t we incr eas ed th e annual bonus o ppor tunities for UK emplo yee s by 29% f rom F Y22. T his b onus op por tunit y incr ease , combin ed wi th st rong p er f orman ce in th e UK and Ire land b usines s , re sulted in a signific ant incr eas e to the tot al pay and b ene fit s amo unts r ece ive d by UK emp loye es in F Y 22. a A n ‘in divi dual per forman ce mo difi er’ is al so ap plie d in cal culatin g the annual b onus p ayme nts f or emplo yee s to ensur e that th e o ut standing contr ibut ion of high -p er f ormin g indiv idual s is re flec ted t hrou gh higher b onus pay ment s . Indiv idual p er for manc e modi fier s do not a pply to sen ior managem ent, in cluding t he CEO. A s su ch, to ensu re a like -fo r-like comp aris on wit h the CEO sin gle figur e, the e mploy ee cal culat io ns , as outlined onthe p rev ious p age, d o not re flec t th e impac t of indiv idual p er fo rman ce mo difie rs , which wo uld have co nside rably in crea sed t he annual b onus paym ent s for em ploye es an d redu ce d the CEO p ay rat io acc ordin gly. a We have n ot includ ed th e value of our Shar es ave sch eme in th e all- emp loyee v alue s on the pr evi ous pa ge. We fir mly bel ieve in th e valu e of employ ee share o wner ship and e ncour ag e employ ee s to par ti cipate in o ur Shares ave o erin g, whi ch is a ta x-e cient pl an in the U K and allows employ ee s to share in E xp er ian’ s gr ow th and su cce ss . Ar ound 69% of UK emplo yee s par t icipate in Shar es ave and th e aver age pr ofit received byUKemplo yee s at matur it y in F Y22 was £5,250, bu t this value ha s not b een in clude d in the all- em ploye e valu es on pa ge 1 37 . How has our Board of dire ctors' pay changed compared to the wider wor kforce ? Th e table b elow s et s out th e per centa ge change in t he Bo ard of dir ec tors' sal ar y/fees , be nefit s and annual b onus b et we en F Y21 an d F Y22, and how this comp ares to t he aver age p erc entag e change fo r our UK emp loye es . While th e Regul ation s requir e the em ploye e comp aris on agai ns t employees of E xpe rian plc , the p rop or t ion of our wo rk for ce empl oyed b y Ex per ian plc is c ompar ativ ely ver y small. We have the refo re ele cte d to p rov ide th e compar iso n agains t our UK emp loye es whi ch we be lieve w ill pro vid e a more r epr ese ntati ve analysis . We have sele ct ed this gro up o f em ploy ee s be caus e E xp erian o per ates in 4 3 co untrie s and , as such , has wid ely var ying app roa ches to p ay acro ss di ere nt regi ons . This ap pr o ach al so avoids the compl exit ies invo lved in c olla ting and c ompar ing r emuner atio n data ac ros s dier ent ge ogr aphic p opul atio ns, in cluding th e impac t of f oreign e xchange rate m ovem ents . T he figur es fo r UK emplo yee s are co nsiste nt with t he infor mati on use d to pr epare t he CEO pa y rati o analysis, b ut reflec t average sal arie s and ave rag e emplo yee numb ers e ach year , rat her than p erc entile dat a. For th e CEO, the annual b onus is b ase d on Gro up p er formance. A soutl ine d prev iou sly in the r epor t, in F Y21 the e xecu tive dir ec tor s each wa ive d 25% of their sal ari es fo r six mo nths and th is is behin d the year-o n-y ear ba se sa lar y chan ge fo r Brian C as sin, L loyd Pi tchfor d and Ker r y W illiam s. Year-on-year change in pay for directors compared to the average UK employee Executive directors Independent Chair Non-executive directors Average employee Brian Cassin Lloyd Pitchford Kerry Williams Mike Rogers Dr Ruba Borno Alison Brittain Caroline Donahue Deirdre Mahlan Luiz Fleury Jonathan Howell George Rose Base salary change FY22 6.1% 16% 17% 17% 2% 5% 9%² 5% 4% 13% n/a³ 6% FY21 2.6% (12)% (12)% (12)% 21% (11)% n/a (14)% (11)% (11)% n/a 0% Taxable benefits FY22 8.7% 6% 155%¹ (3)% n/a n/a n/a n/a n/a n/a n/a n/a FY21 7.1% 1% 3% 3% n/a n/a n/a n/a n/a n/a n/a n/a Annual bonus FY22 32.2% 12% 12% 12% n/a n/a n/a n/a n/a n/a n/a n/a FY21 27.5% 15% 15% 15% n/a n/a n/a n/a n/a n/a n/a n/a 1 T he i nc re as e in t ax abl e b ene fi ts f or L lo yd P it chf or d is e nti re ly a tt r ibu t abl e to t he v alu e of h is SAY E op tio ns w hi ch v es te d in FY2 2. 2 A li so n Br it t ain joi ne d th e B oa rd o n 1 Se pt emb er 2 020 a nd r e ce iv ed p ro - r ate d fe e s in F Y 21. T o p ro vi de a m ea nin g fu l co mpa r is on we h av e us ed t he f ul l- tim e e qui va le nt fe e v alu e tha t Al is on w ou ld ha ve re ce iv ed i n F Y21, ha d sh e be en a B o ar d me mb er f or th e f ull yea r. 3 J ona th an H owe ll j oi ne d th e Bo ar d on 1 M ay 2 021 an d di d no t re ce iv e any f e es i n F Y21. How do we intend to implement th e remuner ation policy nex t year? Salary Th e tabl e below o utl ines t he sa lar y increas es tha t will t ake ee c t fro m 1 June 2022 fo r each exe cut ive dir ec tor . T he e mploy ee s alar y r evie w budg et for F Y 23 is 4 % for ou r employ ee s in both t he UK and Ir elan d and No r th A mer ic a. 1 June 2022 ‘000 1 June 2021 ‘000 % increase Brian Cassin £1,020 £995 2.5% Lloyd Pitchford £630 £615 2.4% Kerry Williams US$1,075 US$1,050 2.4% Annual repor t on direc tors ’ remuneration contin ued Experian plc Governance 138 Code principle Remuneration Annual bonus For the y ear endin g 31 March 2023, the annual b onus op por tunit y and th e pe r for mance m easur es th e exec utiv e dire ctor s are a sse ss e d on wil l remain unchange d fr om F Y22. In line w ith our p oli cy, we will disclo se th e targ et s for th e annual bonu s in nex t year ’s Annual rep or t o n direc tor s’ remune rat ion . While t he F Y23 annual bonus t arg et s cannot b e disclo se d due to their c omme rcial sen siti vit y, they refl ec t our co nfiden ce in the o utlo ok fo r the ye ar ah ead . Annual bonus w ill be subj ec t to claw back pr ovisi ons , allowin g the Gr oup to re cove r all or par t of any paym ent for a p er iod of thr ee y ears f rom p a y ment . In addi tion , the Commi t tee c an var y t he leve l of payo ut if it c onsid ers t hat the fo rmul aic pay out d eterm ined b y meas uring p er f or mance is inc onsi stent with the Group’s actual under lying financial and op erational p er for mance. Per f orman ce is me asure d on a con st ant curr enc y basis to s tr ip out th e ee c ts of e xchange ra te fluc tuati ons , which ar e out side of manage ment ’s contr ol. T he C ommit te e al so exclud es th e impac t of any mater ial acquisit ions or disp osal s ma de in the ye ar to ensur e both m etr i c s are m easur ed consis tently, which is in line w ith our ap pro ach to long -ter m inc entiv e plan m easur es . Share- based incenti ves While d efer ral of 5 0% is compul s or y, the exec uti ve dire cto rs have ea ch ele cte d to defe r the f ull 1 00% of th eir F Y22 b onus es int o t he CIP . We exp ec t to grant matchin g shares in t he firs t quar ter of th e year en ding 31 March 2023, on a t wo -f or-on e basis . We als o exp ec t to grant P SP awar ds equivalent to 200% of sa lar y at the sam e time . Th e CIP and P SP awar ds will v es t subje ct to m eet ing th e foll owing t arg et s, whi ch will b e me asu r ed ove r thre e yea rs , with a f ur t her t wo - year ho lding p er iod ap plyin g: Performance measure Weighting Vesting 1 0% 25% 50% 100% CIP awards Benchmark Earnings per share (average annual growth) 2 50% Below 6% 6% 8% 10% Cumulative Benchmark operating cash flow 50% Below US$5.0bn US$5.0bn US$5.2bn US$5.4bn PSP awards Benchmark Earnings per share (average annual growth) 2 50% Below 6% 6% 8% 10% Adjusted Return on capital employed 25% Below 14.5% 14.5% 15.4% 16.0% TSR of Experian vs TSR of FTSE 100 Index 25% Below Index Equal to Index 8.3% above Index 25% above Index 1 St ra ig ht- lin e ve s tin g b et we e n th e po int s sh ow n . 2 M ea sur e d on an o ng oi ng a ct iv i tie s an d co ns t ant c ur re nc y b asi s. Th e Commi t tee se lec ted a djuste d Ben chmark E PS, cum ulati ve Be nchmark o per ating c ash flow an d adjus ted RO CE as p er f orman ce met ric s f or our long -ter m ince ntive p lans , as the y refl ec t thre e of our key p er f orman ce indic ator s. A s s uch, usin g the se m easure s dire ct ly link s Expe ria n ’ s l on g- te rm incent ive ar ran geme nts to o ur str ate gic ambiti ons and b usine ss obj ec tiv es . In addi tion , using re lati ve TSR r eco gnise s the imp or tance of cr eating v alue for share hold ers . We bel ieve t hes e mea sure s to be th e mos t appr opr iate mea sure s of the Gr oup’s succe ss and , toge ther w ith o ur a nnual bonus meas ures , the y ensure t hat exec utiv e direc tor s are inc entiv ise d to del iver o n a wide r ange of b usine ss and finan cial mea sure s over b oth th e shor t an d long ter m. T he s tr uc ture di er entiate s the ro le of each of o ur long -ter m ince ntive p lans: t he PS P incenti vis es r etur ns and th e CIP incen tivises cash discipl ine. H owever , given t hat grow t h is so fun dament al to our busin es s str ate gy, Benchmar k EPS r uns ac ros s both of t he long -t erm in centi ve pl ans. Vestin g of CIP and P SP award s will be s ubje ct to th e Commi t tee b eing s atis fied t hat the ve st ing is not b ase d on mater ially miss t ated financial result s. Th e Commi t tee al so r etain s the dis creti on to var y the leve l of ves ting i f it cons ider s that th e level of v es ting de termin ed by mea surin g per formanc e is incon sistent w ith the G roup’s underly ing financial an d ope rati onal per forman ce. T he se awar ds will all b e subje ct to cl awba ck pro visi ons, al lowing the Comp any to re cover al l or par t of any v es ted awar d durin g the ho lding p eri od. TSR per for mance We measur e our TSR p er f orman ce re lati ve to the F TSE 1 0 0 Index , r ather t han agains t a be spoke c ompar ator gro up. Our us ual compar ator companies are Br ead Finan cial , Cor eLo gic , Dun & Br ads tre et, E quifa x , FIC O, Liv eRamp, Mo od y’s, REL X , T hom son Re uter s and T r ansUnio n, ho wev er we believe that it wo uld be di cult to m easur e our TSR p er f orman ce again st th em on a con sistent b asis, sin ce many of th em are lis te d in di erent mar ket s and, as such , may be sub jec t to di erent mar ket fo rce s. H oweve r , the C ommit te e us es th em as a ref eren ce p oint wh en rev iewin g othe r a sp ec ts of execu tiv e dire ctor p ay. Additional disclosures Direc tors’ shareholdings and share interest s (audited) We beli eve it is imp or t ant that exe cuti ve dire cto rs bu ild up a signifi cant ho lding in E x per ian share s, to ali gn their inte res t s wi th thos e of shareh older s. Under o ur guidel ine s, th e CEO shoul d hold t he equi vale nt of thre e time s his or her b ase s alar y in Ex per ian share s and oth er exe cut ive dir ec tors sh ould hold t he equi vale nt of t wo time s their b ase s ala r y. Thes e guide line s includ e inves ted o r defe rre d share s hel d under th e CIP , bu t n ot unve ste d matching shares . Share s that have ve st ed bu t are subj ec t to the t wo - year ho lding p er iod w ill al so co unt toward s the guid eline . Until the shareho lding guide line is met , we exp ec t exe cuti ve dire cto rs to re tain at le ast 50% of any shar es ve st ing (net of ta x ) under a shar e award . Unves ted shar e s do not c ount towar ds theguid eline . We als o have guidel ine s for no n- exe cuti ve dire cto rs to buil d up a holdin g in E xp erian’s shares equal to t heir annual fe e. Ea ch finan cial year , th e net f ee for th e firs t quar ter is us ed to pur chas e E xpe rian share s until the n on -e xecu tive dir ec tor re ache s this ho lding. 139 Experian plc Annual Report 2022 Gover nance Code principle Remuneration A s set ou t in the t able b elow, our execu tive dir ec tor s alre ady si gnific antly exce ed th eir pe rs onal shareh olding gui delin es , demo nstr ating their alignme nt to shareho lder inter es ts a s well as th eir commit ment to E xp er ian. T o f ur th er str eng then this al ignment p ost- employ men t, th e Remuner atio n Commi t tee intr odu ced a t wo - year p ost- emplo ymen t shareho lding guid eline a s par t of th e 2020 Poli cy r evie w. All exe cuti ve dire c tors w ho se r ve d durin g the ye ar hold shar es in exc ess of t he re levant shar ehol ding guide line s. T he inter es ts of the dir ec tor s (at31March 2022) and their co nnec ted p er son s in the C ompany’s ordinar y shares (as at 31 March 2022) are sho wn be low and, f or those indivi duals inthe fo llowin g tab le, th ere have b een n o change s be t ween 31 March 2022 an d the date of this r ep or t : Shares held in Experian plc at 31 March 2022 Shareholding guidelines Share awards subject to performance conditions Share options 4 Guideline 1 (% of salary/fee) Shareholding (% of salary/fee) 2 Guideline met? CIP matching awards 3 PSP awards Brian Cassin 5 574,440 300% 1,704% Yes 380,965 226,285 — Lloyd Pitchford 5 310,226 200% 1,489% Yes 235,084 139,694 — Kerry Williams 6 183,455 200% 677% Yes 305,066 181,586 — Mike Rogers 15,287 100% 111% Yes — — — Dr Ruba Borno 7 3,356 100% 72% No — — — Alison Brittain 7,500 100% 160% Yes — — — Caroline Donahue 10,000 100% 214% Yes — — — Luiz Fleury 9,650 100% 206% Yes — — — Jonathan Howell 8,000 100% 171% Yes — — — Deirdre Mahlan 15,000 100% 246% Yes — — — George Rose 20,000 100% 267% Yes — — — 1 E xe cu ti ve d ir ec to r sha re ho ld ing g ui de lin e wi ll a pp ly fo r t wo y ea rs p os t- em pl oy me nt . 2 Sh ar eh ol din g gui de li ne s ha ve b ee n ca lc ula te d us in g the c lo sin g sh ar e pr ic e on 31 Ma rc h 202 2, w hic h wa s £29.51 and e xch an ge r at es a t 31 Mar ch 20 22 of £1:US$1.31 3 an d £1:€1. 17 6 . 3 Ma tc hin g sha re s gr an te d to Br ia n C as sin a nd L lo yd P it chf or d ar e in th e fo r m of ni l- co s t op tio ns , w hic h ar e unv es te d at 31 M ar ch 20 22. T h os e gr ant ed t o Ker r y W il li am s are c on di ti ona l sh are a wa rd s. 4 Sh ar e op ti ons g ra nte d un de r th e al l- em pl oy ee S har es av e pl an . In F Y22, a s dis cl os e d on p ag e 1 31, Llo yd P itc hf or d exe rc is ed t he 1,470 Sha re s ave o pt io ns g ra nte d un de r th e 2016 5-y ea r UK Sh ar es av e Pl an . 5 T he n umb e r of E x pe ri an sh ar es h el d by B ria n C as sin a nd L lo yd P it chf or d at 31 Ma rc h 202 2 inc lu de s 100,955 an d 62, 296 in ve st ed s har e s in th e CI P re sp e ct iv el y. 6 T he n umb e r of E x pe ri an sh ar es h el d by Ke r r y W ill iam s at 31 M arc h 202 2 in clu de s 152,50 3 sha re s aw ar de d to hi m un der T h e E xp er ia n No r th A m er ic a Co - in ve st me nt P la n as a r es ult o f his a nn ual b on us de fer r al e le ct io ns , in a dd it io n to hi s pe rs on al b en efi cia l sha re ho ld ing . Ke rr y Wil li ams h as a n unc on di ti ona l r igh t to r ec ei ve t he se E x p er ian s har e s at th e en d of t he r el ev ant t hr ee - ye ar d ef er ra l pe ri o d. Th e sesh ar es d o no t ca rr y div id en d or v ot ing r i ght s p ri or to r e ce ipt . 7 D r Rub a Bo r no j oin e d th e Bo ar d in 2018 and c on tin ue s to b uil d he r sh are ho ld in g. Payments made to former directors (audited) Thr ee f orm er dire cto rs of E x per ian Finan ce plc (fo rm erly G US plc) re cei ve d unfund ed p ensio ns fr om th e Group . One of t he for me r dire cto rs is n ow paid un der th e Se cure d Unfu nde d Retir ement B ene fit S chem e, whi ch pro vid es s ecur it y f or the unf und ed p ensi ons of exe cut ive s ae c t ed by the HerMaje st y ’s Revenue and Cu stom s (HMRC) e arnin gs cap . Th e total unf unde d pe nsion s paid to th e for mer dir ec tor s amounte d to £6 9 5,029 in the yearen ded 31March 2022. Payments f or loss of oce (audited) No pay ment s for lo ss of o ce wer e made in th e year (2021 : US$nil). Relative imp or tance of sp end on pay Th e table b elow illus tr ates th e rel ativ e impor tance of sp end on p ay for all e mploye es , comp ared to th e financial dis trib ution s to shareh olde rs , throu gh divid ends and ear nings -e nhancing share r epurchas es: 2022 US$m 2021 US$m % change Employee remuneration costs 2,313 1,995 16% Dividends paid on ordinary shares 444 427 4% Estimated value of earnings-enhancing share repurchases — —0 % Annual repor t on direc tors ’ remuneration contin ued Experian plc Governance 140 Code principle Remuneration The Remuneration C ommittee All our n on - execu tive dir ec tor s are me mber s of the C ommit te e, wh ich met fi ve tim es dur ing the y ear end ed 31 March 2022. Ea ch mem ber isconsi dere d to be in dep end ent in acc ordanc e wit h the UK C or por ate G over nance C od e. Th e Commi tte e’s terms of ref eren ce can b e foun d at w w w.expe rianpl c.co m/ abo ut-us/corp ora te- g over nance/b oard - commi t tee s/ . The Committee’ s role and responsibilities Th e Commi tte e is re spon sible fo r: 1 Recommending to the Board senior executive remuner ation policy and the Chair’s remuner ation. 2 Determining individual remuner ation packages for executive directors and certain senior executives. 3 Communicating with shareholders on remuner ation policy . 4 Making recommendations to the Board on the design of the Group’s short - and long-term incentive plans. 5 Overseeing the Group’s executive pension arrangements. 6 Overseeing broader employee workforce policies. Committe e activities Dur ing the y ear , the C ommi tte e: a Re view ed an d appr ove d the 2021 Repo r t on dir ec tor s’ remune rat ion . a Ha s continu ously mo nitore d the imp ac t of COV ID - 1 9 on our b usine ss and r emune rati on de cisions t aken acr oss th e Gro up, such as th e d ecision toreintr oduc e pay incr ease s. a Re view ed sa lar ies of c er tain G roup O per ating C ommi tte e memb er s and app rove d any annual pay ad justm ent s for th ose Gr oup Op er atin g Commi t tee memb er s in F Y22. a A gre ed th e F Y21 incenti ve pl an outc ome s, th e F Y22 b onus tar get s , and the lo ng -ter m incent ive p lan par ticipant s. a Re cei ved up date s on the C ompany ’s long-ter m inc entiv e plans , inclu ding the c ontinue d impa ct of C OVID - 1 9 on t he in- flight aw ards . a D iscu ss ed at le ngth e xecut ive p ay in the c ontex t of the w ide r wor kfo rce an d the br oad er impa ct on s oci et y, the G roup, an d our s har ehold ers . a Was up dated o n all- emplo yee pa y and wor kf orce p oli cies a cros s E xpe rian, in cluding d etaile d insight s on all- emp loye e pay, workf o rc e pol icies an d gend er pay gap analy sis in Nor t h Am eri ca and B razil , t wo of our ke y market s . a Was up date d on cur rent tr ends in t he exe cuti ve rem uner ation e nviro nment , foc using on o ur major r egio ns. a Was up dated o n the C ompany ’s FY22 UK g ende r pay gap disclo sure re quirem ent . The C ommit te e had a r obus t discu ssion r egar ding th e re sult s andwas p rovi ded w ith ad ditio nal detail ed analysis on E x per ian’ s gen der pay p ositi on. a Was up dated o n the C ompany’s resp ons e to the U K CEO pay r atio dis closure r equir ement an d rev iewe d the re levant dis closur es . a Ini tiate d the invi tati on to empl oyee s to par ticipate in t he 2021 Shares ave pl an, and wa s update d on ta ke- up and o utco mes of p re vious grants. a Re view ed and ap prov ed a se rie s of remun era tion chan ges , dri ven by Ker r y W illiam s’ retire ment and C raig B ound y’s upcomin g appo in tment to the Board, including the new Chief Oper ating Ocer remuneration arr angements . a C onsi dere d remun era tion mat ter s in re spe ct of s enior hir es and d epar t ure s and, wh ere ap prop riate , approv ed re muner ation p ackag e s f or se nior new hire aw ards be low Bo ard leve l. a Was p rovi de d with an up date on s tr ategic p roje c ts d esign ed to enab le E xp erian to at t rac t and r etain ke y ‘te ch’ t alent , in an in creasingly competitive market . Th e Co mmit tee wa s prov ide d wit h an over v iew of th e rewa rd chang es pr opo sed a s par t of th is wor k. a Re view ed th e Commi t tee’s per for manc e durin g the yea r agains t it s term s of refe renc e; and a C hair at tende d the U K and Ire land E x per ian Pe ople For um in Marc h 2022, to engag e with e mploy ees , disc uss h ow E xp erian’s executi ve remun era tion ali gns wit h the w ider Gr oup pa y pol icy, and under s tand em ploye es’ vie ws on pa y-r ela ted is sue s. T his fe edb ack was p rov ide d to the Boar d at th e March me etin g. Adv ice p rovi ded to th e Co mmi tte e In making i ts d ecisio ns, th e Co mmit tee c onsult s the C hair , the C hief E xec uti ve O cer an d the Gr oup Chi ef Pe ople O c er wh ere re q uir ed . We als o invite m ember s of the G lobal Rew ard team to a tte nd Co mmit tee m eet ings as app rop riate . We normal ly consult t he Chie f Fin an cial Oc er abou t per forman ce con dition s applyin g to shor t- and lon g- term in centi ve arr ange ment s to ensur e they are ap prop riately finan ciall y s tretchin g. Howev er , we do n ot con sider i t appr opr iate that exe cuti ve s are pre se nt when t heir ow n remun era tion ar ran gem ents ar e bein g discu ssed. Th e Commi t tee has a cce ss to in dep ende nt cons ultant s to ensur e that it r ec eive s obj ec tive a dv ice . We revi ewed o ur ex ter nal ad vis ers in 201 3 an d appo inted T ower s Wats on Ltd ( W illis T ower s Wat son), who r emaine d our ex ter nal ad vis ers t hrou ghou t the ye ar ende d 31 March 2022. Willi s T owe rs Wats on pro vide s oth er ser vice s to E xp erian glob ally, including ad vic e on ben efit s and p rov ision of mar ket data . Addi tionally, Ella son L LP p rov ide d incent ive - plan aw ard valua tions an d remun era tion dat a, as w ell as sup po r ting da ta for t he ta r get calibration pro ce ss . Ell aso n doe s not p rov ide any ot her s er v ice s to the Gr oup . Will is T ow ers Wat son an d Ell aso n are memb er s of the Remun er ation C onsult ant s Group an d volunt arily op er ate unde r the C ode of C o nduc t in re lati on to execu tiv e remun era tion c onsultin g in the UK . T he C ommit te e was s atis fie d that th eir ad vic e was obj ec tiv e and ind epe ndent . Th e fee s pai d to the se ad vis er s for se r v ice s to the C ommit te e in the ye ar end ed 31 March 2022, bas ed o n hour s spe nt, wer e as fo llows: Adviser Fees paid in the year Willis Towers Watson £33,500 Ellason £15,000 141 Experian plc Annual Report 2022 Gover nance Code principle Remuneration What did we pay our n on- executive direc tors dur ing the year? (audited) Th e table b elow sh ows a singl e total figur e of rem uner ation f or the C hair and no n- exe cuti ve dire ct ors f or the y ears en de d 31 Mar ch 2022 and 31March 202 1 : Fees ‘000 Benefits ‘000 Share-based incentives ‘000 Total ‘000 2022 2021 2022 2021 2022 2021 2022 2021 Mike Rogers 1 €475 €465 — — — — €475 €465 Dr Ruba Borno €166 €158 — — — — €166 €158 Alison Brittain (appointed 1 September 2020) €172 €92 — — — — €172 €92 Caroline Donahue €166 €158 — — — — €166 €158 Luiz Fleury 2 €238 €210 — — — — €238 €210 Jonathan Howell (appointed 1 May 2021) €159 — — — — — €159 — Deirdre Mahlan €215 €206 — — — — €215 €206 George Rose €269 €254 — — — — €269 €254 1 Mi ke Ro ge rs w as a pp oi nte d Ch air o f th e Bo ar d on 24 J uly 2 019 . O n ap po int me nt Mi ke’s Ch air f e e was s e t at € 46 5, 00 0. O n 1 Ju ne 20 21 th is wa s in cr eas e d by 2 .5% to € 477 , 00 0. 2 L uiz F le ur y a c te d as an i nd ep en de nt a dv is er t o Se ra sa S . A ., o ur B ra zi lia n bu sin es s . His r em un er at io n inc lu de s a fe e fo r th is r ole , p aid i n Br az ili an r eai s, a lo ng w it h th e ann ual n on - e xec ut iv e dir e ct or ’s fe e. 3 Fo r F Y 22, t he c umu la ti ve to ta l sin gl e fig ur e of re mu ne ra ti on f or th e Ch air a nd n on - ex ec ut iv e dir e ct or s in US $, a pp lyi ng t he a v e ra ge e xch ang e r ate o ve r the y ea r of €1:US$1. 1624 (€1 :US $1 . 16 7 3) is US $2. 2m (2021 : US$1 .8 m). Non - exec utiv e dire cto r fee s are r evie wed e ver y t w o year s and wer e las t re view ed in 2021 . T he cur re nt fee l evel s are a s foll ows: Annual fee from 1 October 2021 Annual fee prior to 1 October 2021 Base fee €162,250 €158,250 Audit Committee Chair fee €49,000 €47,750 Remuneration Committee Chair fee €39,750 €38,250 Deputy Chair/Senior Independent Director fee €98,000 €95,500 Ot her than th e Chair , no n- exe cuti ve dire c tors r equir ed to und er take inte rcont inental t rave l to at tend B oard m eet ings re cei ve a supplementar y paym ent of €6 ,000 p er tr ip, in ad dition to any t rave l exp ense s. T his amo unt has not chan ge d since O ctob er 20 09 . Ge org e Rose ho lds the r ole of Chair of t he Remun erat ion C ommit te e, in ad ditio n to his role as S enior In dep end ent Dire c tor . G eor ge Ro se does not rec eiv e an addit ional fe e for his r ole as C hair of the Remun era tion C ommit te e. Statement of voting at the 202 1 AGM Th e voting to ap pro ve the A nnual re por t on direc tor s' remun erat ion at th e AGM he ld on 21 July 2021 , and th e Dire c tors’ rem uner a tion polic y approved at the AG M held o n 22 July 2020, is se t out in th e fol lowin g table : Votes for (including discretionary votes) % Number Votes against % Number Total number of votes cast Number of votes withheld Annual report on directors’ remuneration 96.84% 3.16% 652,721,188 21,283,895 674,005,083 19,911,032 Directors’ remuneration policy 95.3% 4.7% 651,717,394 31,847,208 683,564,602 15,168,573 Service c ont racts Non - execu tive dir ec tor s have let ter s of app ointment t hat set o ut th eir dutie s and tim e commitm ent ex pe cte d. T hey ar e appo inted f or an initial thre e -year te rm , subje ct to el ec tion an d annual re - elec tio n by shareh olde rs at th e AGM. A pp ointment s ar e rene wed by m utual agr e ement. Det ail sofcurr ent non - exe cuti ve dire cto r arr ange ment s as at 31 March 2022 are s et ou t below : Name Date of appointment Length of service at 31 March 2022 Years Months Mike Rogers (appointed Chair on 24 July 2019) 1 July 2017 4 9 Dr Ruba Borno 1 April 2018 4 – Alison Brittain 1 September 2020 1 7 Caroline Donahue 1 January 2017 5 3 Luiz Fleury 8 September 2015 6 7 Jonathan Howell 1 May 2021 – 11 Deirdre Mahlan 1 September 2012 9 7 George Rose 1 September 2012 9 7 E xecu tive dir ec tor s’ ser vice c ontr ac ts c ontain a 1 2-mont h noti ce p eri od, a s set o ut in th e Dire c tors’ re muner ati on po lic y. Bria n C assin w as app ointed tothe B oard o n 30 Ap ril 201 2 as Chie f Financial O cer , an d 1 6 July 201 4 as C hief E xec utiv e O cer . Th e date of app ointme nt to t he B oar d for Lloy dPitchf ord wa s 1 Oc tob er 201 4 and fo r Kerr y Will iams was 1 6 July 201 4. Annual repor t on direc tors ’ remuneration contin ued Experian plc Governance 142 Code principle Remuneration Th e Dire cto rs’ remun era tion p oli cy wa s las t appr ove d by shareh olde rs at th e AGM on 22 July 2020 . We have include d belo w the Po lic y table an d the W hich cl awba ck prov isions ap ply? s ec tio n, whi ch we cons ider to b e the mo st he lp ful sectio ns ofthePo lic y for inve sto rs . Th e ful l and or iginal ver sion of t he Pol icy, as appro ved b y shareho lder s, is av ailabl e on the E x pe rian c orp or ate web site atww w.experianplc.com/investor s/ repor t s. Element and link to strategy Operation Maximum potential value and payment at target Performance metrics and weightings Base salary To help with attracting and retaining executive directors ofthe right calibre. Provides a base level of pay and reflects the competitive market salary for the role. Base salary level takes account of personal contribution and performance against Group strategy. Base salary is paid in equal instalments during the year. Salaries are reviewed annually, with any increases generally taking eect from 1 June. Salary levels and increases take into account a number of factors, including the approach to employee remuneration throughout the Group, prevailing economicconditions, best practice and positioning against the market. Annual executive director salary increases will, in normal circumstances,be limited to theincreases awarded across theGroup asa whole. Higher increases may be made in exceptional circumstances including, but not limited to, a change in role or responsibility, and will take account ofmarket practice in relation to the newrole. When the Committee considers salary increases, it takes into account individual performance over the preceding financial year. Benefits Benefits are provided as partof a competitive and cost-eective overall remuneration package. Certain benefits may also beprovided to support expatriates, where they haverelocated. The Group provides a range of market-competitive benefits that include, but are not limited to, healthcare, financial and tax advice, death-in-service provision and company car or allowance. Executive directors can also participate in any of the Group’s all-employee share plans, for example the Sharesave plan, on the same basis as other eligible employees. In the USA, eligible executive directors may participate ina deferred compensation plan, which is standard market practice in the USA. For expatriate assignments, we retain the flexibility to tailor benefits to the circumstances of the assignment. Additional benefits may include relocation expenses atthe beginning and end of each assignment, housing allowance and school fees. The cost of providing such benefits mayvary from year to year, reflecting the cost to the Group. The Committee sets benefits at a level itconsiders appropriate against relevant market practice, the role and particular circumstances (for example, in the case of expatriate benefits, wherethe individual is required to relocate). None. Pension Provides a market-aligned retirement provision. Pension arrangements are in line with local market practice. In the UK, the Group operates a defined contribution plan,with company contributions set as a percentage ofbase salary. If impacted by HMRC pension limits, anindividual may elect to receive a cash allowance instead. In the USA, executive directors are eligible to join adefined contribution plan. In the UK, the cash payment or pensioncontribution for current executive directors is normally equal to20% ofannual gross base salary. Future UK-based executive directors will receive a cash payment or pension contribution aligned to the wider UK employee workforce (to apply to all incumbents by the end of 2022). In the USA, the contribution rate is up to4% of earnings, up to an annual compensation limit set by the Internal Revenue Service. If required, pension arrangements in other jurisdictions would be in line withlocal market practice. None. Directors’ remuneration policy 143 Experian plc Annual Report 2022 Gover nance Code principle Remuneration Element and link to strategy Operation Maximum potential value and payment at target Performance metrics and weightings Annual bonus Motivates and rewards the achievement of specific annual objectives, linked toExperian’s business strategy. The Committee sets appropriate performance targets atthe start of each financial year. At the end of the financial year, the Committee determines the extent to which these have been satisfied, based on audited results, and agrees the levelof bonus to be paid. Half of any bonus must be deferred for a period of threeyears. However, the executive director may elect todefer up to 100% of their bonus into the CIP. Where they elect not to do so, payment is made as soon as practicable after the financial year end. Malus and clawback provisions apply, under which annual bonus payments may be reduced or recovered incertain circumstances. Further details about our clawback and malus policy are set out in the Which clawback provisions apply? section of the report. Threshold performance results in abonus payout equivalent to 25% ofthemaximum. No bonus is payable for below-threshold performance. Achieving target performance results ina bonus payout equivalent to 50% ofthe maximum. Achieving maximum performance results in a full bonus payout of 200% ofsalary. The annual bonus may be based entirely on financial performance or on a combination of financial, strategic and/or operational objectives. However, the financial element will comprise at least 70% of thebonus. The Committee retains the ability to exercise its judgment to vary the level of payout if it considers that the formulaic payout determined by measuring performance is inconsistent with the Group’s actual underlying financial and operational performance. Co-investment Plans Aligns with shareholder interests through voluntary investment of personal capital, delivery of Experian shares and the long-term time horizons. Use of stretching financial metrics incentivises performance. Encourages participants’ long-term commitment tothe Group through personal investment. Participants are invited to invest between 50% and 100%of their annual bonus into Experian shares. A conditional award of matching shares or nil-cost options is granted on a two-for-one basis on the gross bonus deferred, and vests after three years subject to achieving performance targets over the three-year period. Any vested awards are subject to a further two-year holding period. Dividend equivalents accrue on all awards of shares. Malus and clawback provisions apply, under which CIPawards may be reduced or recovered in certain circumstances. Further details about our clawback andmalus policy are set out in the Which clawback provisions apply? section of the report. Maximum award levels depend on the bonus deferred, which will be matched on up to a two-for-one basis. There is no vesting for below- thresholdperformance. Achieving threshold performance results in 25% vesting of the matching shares. Achieving target performance results in50% vesting of the matching shares. Achieving maximum performance results in full vesting of the matching shares. Awards vest based on financial performance and subject to the Committee being satisfied that the vesting is not based on materially misstated financial results. The Committee retains the discretion to exercise its judgment to vary the level of vesting if it considers the formulaic vesting level determined by measuring performance to be inconsistent with the Group’s actual underlying financial and operational performance. Performance Share Plan Use of stretching financial metrics incentivises performance. Aligns with shareholder interests through delivery ofshares and the long-term time horizons. Participants receive an annual award of conditional shares or nil-cost options, which vest after three years, subject to achieving performance targets over the three-year period. Any vested awards are subject toafurther two-year holding period. Dividend equivalents accrue on all awards of shares. Malus and clawback provisions apply, under which PSPawards may be reduced or recovered in certain circumstances. Further details about our clawback andmalus policy are set out in the Which clawback provisions apply? section of the report. Normal maximum award levels are 200% of salary. Awards of up to 400% of salary may bemade in exceptional circumstances such as recruitment. There is no vesting for below- thresholdperformance. Achieving threshold performance results in 25% of the shares vesting. Achieving maximum performance results in full vesting of the shares. Vesting of up to 25% of the awards is based on a share-based metric, with the balance based on financial performance. The Committee retains the ability to vary the level of vesting if it considers the formulaic vesting level determined by measuring performance to be inconsistent with the Group’s actual underlying financial and operational performance. Directors’ remuneration policy contin ued Experian plc Governance 144 Code principle Remuneration Element and link to strategy Operation Maximum potential value and payment at target Performance metrics and weightings Shareholding guideline To preserve and enhance thelong-term alignment of the interests of executive directors with shareholders and promote a long-term approach to performance and risk management. During employment: Executive directors are required to establish and maintain a minimum personal shareholding equal to3xbase salary for the CEO and 2x base salary for other executive directors. Executive directors are required to retain at least 50% ofany shares vesting under the CIP and PSP (net of tax) until their during-employment shareholding guideline has been met. Shares held beneficially, shares subject to a post-vesting holding period and invested or deferred CIP shares will count when assessing the guideline. Share awards that are still subject to performance conditions and matching shares under the CIP are not included. Post-employment: For two years following cessation, (former) executive directors are required to retain the lower of: a their actual shareholding immediately prior to cessation; and a their shareholding guideline immediately prior tocessation. In determining the actual shareholding at cessation, shares acquired from own purchases will not be counted. N/A N/A Independent Chair and non-executive director (NED) fees To attract individuals with a broad range of experience and skills, to oversee the implementation of our strategy. The Chair is paid an annual fee in equal monthly instalments. The Group may provide the Chair with alimited range of benefits such as healthcare, tax adviceor use of a car. The NEDs are paid a basic fee plus additional fees forchairing a Board Committee and for the role of Deputy Chair or Senior Independent Director. NEDfeesare paid in equal quarterly instalments duringthe year. The net fee for the first quarter of the financial year is used topurchase Experian shares forNEDs and/or the Chair (as applicable), until the individualhas met their shareholding guideline of 1x their estimated annualfee (excluding travel fees). NEDs receive an additional fee where attendance at Board meetings involves intercontinental travel from their home location. The Company may settle any tax dueon travel expenses incurred by the Chair and NEDs. The Committee sets the Chair’s fees, while NED fees are set by the Board. Both are set based on a number of factors, including the time commitment required and positioning against the market. Fees are normally reviewed every twoyears. No performance-related arrangements are in place fortheChair or the NEDs. 145 Experian plc Annual Report 2022 Gover nance Code principle Remuneration Element and link to strategy Operation Maximum potential value and payment at target Performance metrics and weightings Share Option Plan (SOP) Provides focus on increasingExperian’s share price over the medium to longer term. Options are granted with an exercise price equivalent tothe market value of an Experian share at the date ofgrant. These vest subject to achieving performance targets that are tested over a three-year period and areexercisable for seven years thereafter. No option grants have been made since 2009 and the Committee has agreed that no further awards will be made, unless warranted by exceptional circumstances such as recruitment. Malus and clawback provisions apply, under which SOPawards may be reduced or recovered in certain circumstances. Further details about our clawback andmalus policy are set out in the Which clawback provisions apply? section of the report. Normal maximum award levels are 200% of salary. Grants of up to 400% of salary may be made in exceptional circumstances such as on recruitment. There is no vesting for below-threshold performance. Achieving threshold performance results in 25% of the options vesting. Achieving maximum performance results in full vesting of the options. The vesting of options is based on financial performance targets. Which clawback p rovisions apply? Claw back an d/ o r malus appl ies to th e Comp any’s incenti ve plan s for fi ve year s fr om grant . Under th es e prov isions , the C ommit te e may apply cl awba ck or malus in circum stan ces w hich have: a r esulte d in a leve l of ves ting or p aym ent which is hi gher than wo uld oth er wis e have be en , be caus e of a mater ial misst atem ent of th e Gro up’ s financial result s; or a le d to a mater ial financial or re put ational los s for t he Gro up, due to ser iou s indiv idual misc onduc t. Under o ur malus and cl awba ck pol icy, should a tr igg er event b e ide ntifie d, a Cl awba ck Co mmit tee wo uld b e appointe d by th e Remune ratio n Commi t tee to inve sti gate the is sue. T he Cl awb ack Co mmit tee wo uld rep or t b ack wi th re comme ndatio ns on wh ether malu s and/ or claw b ack shou ld be app lie d, which in div idual s this shoul d ae ct , which r emune rati on shoul d be subj ec t to malus and/or clawback an d the v alue th at should be impac ted . Th e Remuner atio n Commi t tee wo uld then hav e final sign- o o n any decisio n to ope rate cl awba ck or malus . Legacy arr angements Th e Commi t tee re ser ves th e right to make any r emune rat ion pay ment s and p ayme nts f or los s of oce (in cluding exer cising any dis c retions avai lable to it in conn ec tio n with s uch pay ment s) not w ith sta nding th at they ar e not in l ine wi th the p oli cy s et ou t in this rep or t wher e the e ntitl ement to t he paym ent aro se (i) b efor e the 2020 AGM; (ii) a t a time wh en th e relev ant indi vidual wa s not a dir ec tor of the C omp any and, in th e op inion of the Commi t tee, t he pay ment w as not in c onsid era tion f or the in divi dual be comin g a direc tor of t he Co mpany ; or (iii) und er a remun er ation polic y previously appro ved by t he Co mpany’s shareho lder s. For t hes e pur pos es e ntitlem ent s arisin g under t he Co mpany’s prev ious r emuner atio n pol ic y (as appr ove d by shareh older s at the 201 7 AGM) wil l be inc orp or ated into this p ol icy an d ‘payment s’ includ es the C ommi tte e sa tisf ying award s of var iable remun erati on, an d an entitle ment und er an award o ver share s aris es at th e time the aw ard is grante d. On be half of the Remun era tion C ommit te e Charles Brown Company S ecr etar y 1 7 May 2022 Directors’ remuneration policy contin ued Experian plc Governance 146 Code principle Remuneration Directors ’ repor t Th e direc tor s pre sent t heir re por t and the au dited finan cial st atement s for th e year en de d 31 March 2022. The r epo r t has b ee n prep are d in line with t he UK C ompanie s Ac t 2006 , and the C or por ate go vernan ce re por t and the Shar ehol der and c orp or ate infor mati on se ct ion for m par t of this Dire ct ors’ rep or t. Th e Str ategic r ep or t co ntains c er t ain infor matio n equi valent to th at re quired in a r epo r t of th e direc tor s. Financial and operational infor mation Results and di viden d Th e Grou p incom e st ateme nt shows a p rofi t for th e year e nde d 31 March 2022 of US$ 1 , 1 6 7m (202 1 : US$8 02m). The dire c tors hav e announc ed th e paym ent of a se con d inter im divi dend , in lieu of a final di vid end , of 35.75 US cent s pe r ordinar y share (2021 : 32.5 US cent s) to be pai d on 22July 2022 to shareho lder s on the r egis ter of me mber s on 24 June 2022. Afirs t interim di vid end of 1 6.0 US cent s pe r ordinar y share was pa id on4Febr uar y 2022, gi vin g a total di vid end fo r the ye ar of 5 1 .75 UScent s per o rdinar y shar e (2021 : 47 .0 US cent s). Innovation Innovat ion, s uppo r ted b y our talente d pe ople , and by r ese arch and develo pme nt, pl ays a key r ole in supp or t ing E xp er ian’ s b usines s per forman ce. D etail s of su ch ac tiv itie s are gi ven in th e Strate gic r epor t. Acquisitions and disposal s Infor mation o n acquisit ions and a disp os al made dur ing the y ear is contain ed in no te 4 1 and note 4 3 re spe ct ively to th e Gro up financial statement s. Regis tere d br anch Th e Comp any has a bran ch re gister ed in Ire land un der br anch numbe r 905565 . Post balance she et events Det ail s of event s oc curr ing a f ter the e nd of the r ep or tin g per io d are contain ed in n ote 4 7 to the Gr oup financial s tatem ent s. Share capital Det ails of t he Co mpany’s share cap ital an d change s during t he year ende d 31 March 2022 are se t out in no te Q to the C ompany financial statement s. Financial risk manage ment, o bjec tives and po licies De scr iption s of the us e of financial ins trum ent s and E xp er ian’ s tr easur y and ri sk managem ent obje c tive s and p olicie s are s et out in t he Financ ial rev iew wi thin th e Strate gic r epo r t, an d al so in no te 7 to the Gr oup financial statem ents . Political donations E xpe rian did n ot make any po liti cal do nation s during t he yea r ende d 31March 2022. Going conc ern Det ail s of the ad opti on of the g oing co ncer n ba sis in prep arin g the Groupfinan cial st ateme nts ar e set o ut in note 2 to t he Gro up financial sta tement s , and are in cor por ate d into this rep or t by refer ence . Fordet ail s of the ad optio n of the go ing co ncer n basis in p rep arin g theC ompany finan cial st ateme nts , se e note B . Directors Informatio n on direc tors holding o ce in the year Th e direc tor s’ names , biogr aphi cal det ail s, and sk ill s and ex per ien ce areshow n in the B oard of dir ec tor s se cti on. Par ti cular s of dire cto rs’ remun erat ion , ser vice co ntra ct s and inte res t s inthe C ompany’s ordinar y shares ar e shown in t he Rep or t on dir ec tor s’ remun era tion . Th ere we re no chang es in th e dire cto rs’ intere st s (as at 31March 2022) in the ordinar y shares b et we en the en d of the financial year and 1 7 May 2022. In line w ith th e UK Co rp ora te Gov ernan ce Co de , as at the da te of this rep or t , all dire cto rs (wi th the exc eptio n of Deir dre Mahl an and Ge org e Rose, w ho have comp lete d nine year s of tenure , and Ker r y W illiams , allof who m will r etire f rom th e Bo ard wi th ee c t fro m the co nclusio n ofthe AGM o n 21 July 2022), being eli gible, w ill o er the mselv es fo r re - ele cti on at th e 2022 AGM. A n evaluat ion of th e per forman ce of th e Boar d, it s co mmit tee s and indi vidual dir ec tor s was car r ied o ut durin g the financial y ear . T he B oard is s atis fie d that all dire cto rs s eek ing re - elec tio n contr ibu te ee ct ively an d demo nst rate c ommitm ent to theirr ole s. T he C orp or ate gov ernan ce re por t contain s fur t her de tail s ofthe ev aluation p ro ces s. Insurance and thir d-par ty indemni fication Dur ing the y ear and up to t he date of app roval of t his Annual Re por t, the Comp any maintaine d liabili t y insur ance an d third -pa r t y ind emnific ation prov isions f or it s dire cto rs and o cer s . App ointment and rem oval of directors Both t he Co mpany, by ordinar y re so lution , and th e dire ctor s, may e lec t any per son to b e a dire cto r . T he numbe r of direc tor s shall not e xcee d themax imum numbe r fixed by t he Co mpany’s ar ticle s of ass ociati on. Any p ers on app ointe d by the dir ec tor s shall hol d oce o nly until the n ex t AGM and shall t hen b e eligib le for ele c tion . Th e oce of a dir ec tor shall be va cate d on the o ccur ren ce of any of the e vent s lis ted in ar t icle 92 of the C ompany’s ar ticle s of ass ociat ion. T he C ompany may, in accor dance with i ts ar ticles of as so ciatio n, re move any dir ec tor fr om oc e and ele ct anoth er per so n in their p lac e. Annu al Ge neral Meetin g Th e Comp any’s 2022 AGM will be h eld at T he M err ion H otel , Uppe r Mer ri on Stre et , Dubl in 2, D02 K F79 , Ir elan d, at 9 .30am o n Thur sday 21July 2022. Sharehold ers w ho are unab le to at tend may sub mit ques tion s bef orehan d via email to agm que stio ns@ ex per ianplc .co m oron th e pre - paid c ard s ent wi th th e notic e of the m eet ing. Th eques tio ns will b e addr es se d at the m eet ing, v ia the C ompany ’s websi te at w w w.expe rianplc .co m or indi vidually a s appro priat e. Th enotic e of me eting has b ee n circul ated or ma de avail able to shareho lder s and can al s o be v iewe d on the C ompany’s websi te. Share capital information Rights and obligations Th e right s and o bliga tions a tt aching to t he or dinar y and d efer re d shares are se t out in no te Q to the C ompany finan cial sta tement s and in t he Comp any’s ar ticles of a ss ociati on, a co py of which c an b e obtain ed fr om the E xp er ian website , w w w.exper ianplc .com . Th e Co mpany’s ar ticle s ofass ocia tion may b e amen ded b y pas sing a spe cial re so lutio n. 147 Experian plc Annual Report 2022 Gover nance Directors ’ repor t contin ued ADR p rog ramm e Th e Comp any has a Le vel 1 A mer ican D ep osit ar y Re ceipt ( A DR) pro gramm e in the US A , for w hich J.P . Mor gan Chas e Bank , N. A . a ct s asdep osit ar y. The A DRs ar e tra de d on the hi ghes t tie r of the US over -the- counter market, OTCQ X, with each ADR repre senting one E xpe rian pl c ordinar y share. Fur the r detail s ar e given in t he Shareholderand corp orate information section. Substantial shareholdings Th e Comp any’s arti cles of as so ciation o blig e sharehol der s to comply with the notification obligations con tained in the UK Disclosu re Guidance and T r anspare nc y Rules so urce bo ok. A s at 1 7 May 2022, t he Co mpany had not b ee n notifi ed of any inter es t s in it s issue d or dinar y share c apit al or votin g right s in r esp ec t of the ye ar . Restri ctions on tr ansfers of share s and/ o r voting right s Th e Comp any is not awar e of any agre ement s be t ween shar ehol der s that may re sult in re str ic tio ns on the t rans fer of s ecur iti es and/or voting right s and , apar t f rom th e mat ters d es crib ed b elow, there are n o res tr ict ions on th e tran sfe r of the Co mpany’s ordinar y shares and/or voting ri ghts: a C er t ain re str ic tions o n trans fer s of share s may fro m time to tim e beimp ose d by, for example, shar e dealin g regul atio ns. In c er tain situati ons , direc tor s and ce r tain em ploye es mu st se ek th e Comp any’s appro val to deal in i ts shar es . a S ome of E x per ian’ s share -b ase d employ ee inc entive p lans in clude res tr ict ions on t he tr ansf er of share s, whil e the share s are subj ec t to the plan concerned. a A s d es crib e d in the Rep or t on direc tor s’ remun er atio n, no n- e xecu tive direc tor s mus t hol d a prop or t ion of th eir fe es in share s, e qual to th eir annual fee . The se shar es may not n ormal ly be tr ansf err ed dur ing the ir pe riod of o ce. a W her e par t icipant s in a share - bas ed emp loye e incent ive pl an ope rate d by E xp er ian are the b ene ficial own ers of t he share s but n ot the re gist ere d owner , the vot ing ri ghts ar e nor mally exer cise d by the regis ter ed ow ner at th e dire cti on of the p ar ti cipant s. a Shar es c arr y no voting r ight s whil e they ar e held in t reasu r y. a T he d efer re d shares in t he Co mpany ca rr y no voting r ight s. a Unle ss t he dire cto rs dete rmin e other wise, m embe rs are n ot entit led to vote pe rs onally or b y prox y at a shar ehol der s’ meetin g, or to exercise any other member’s right in relation to shareholders’ mee tings , in re spe ct of any shar e for w hich any cal l or oth er sum payab le to the C ompany r emains unpai d. a Unle ss t he dire cto rs dete rmin e other wise, m embe rs are n ot entit led to vote pe rs onally or b y prox y at a shar ehol der s’ meetin g, or to exercise any other member’s right in relation to shareholders’ mee tings , if th e memb er fail s to pr ovi de the C ompany w ith th e requir ed inf orma tion co ncer ning inter es t s in thos e share s, wi thin thepr es crib e d per io d af ter b eing s er v ed w ith a not ice un der th e Comp any’s art icles of as so ciation . a T he C ompany ’s arti cles of as so ciatio n sta te that, e xcept fo r cer t ain limite d circums tanc es , if the numb er of shares in t he Co mpany ben eficial ly owne d by r esid ents of t he USA e xcee ds a defin ed per mit te d maxim um and the dir ec tor s give n otice to t he hol der (s) ofsuch share s, t he share s do not gi ve the ir hold er (s) the ri ght to rec eive n otic e of, atten d or vote at th e Co mpany’s gener al me eting s. Det ail s of dea dline s for vo ting at th e 2022 AGM are c ontain ed in th e notic e of mee ting that ha s be en circul ated o r made avail able to shareho lder s, an d which c an al so be v iewe d at the C omp any’s website. Purchase, ca ncellation and holdings of own share s Th e exis ting au thor it y fo r the C ompany to p urchas e it s own shar es wasgiv en at th e AGM hel d on 21 July 2021 . It pe rmi ts th e Co mpany topurchas e 92,324,4 40 of i ts o wn share s in the mar ket. On 1 9 May 2021 , t he Co mpany anno unce d it s intention to r epur chase shares , thro ugh a ne t US$ 1 50m shar e repur chas e pro gramm e. Dur ing the ye ar ende d 31 March 2022, the C ompany pur chase d 2,705,3 1 5 of it sown share s, a t a cos t of US$ 1 0 9m (with 1, 94 1 ,7 40 share s pur chase d bef ore th e 2021 AGM). All shares p urchas ed hav e be en ret ained a s treasur y shares. On 26 May 2021 , the C ompany tr ansf err ed 6,0 00,0 00 or dinar y share s fro m treas ur y to Co mpute rshare T rus tee s (J ers ey) Limi ted, th e tr uste e of the E xp er ian plc Emp loye e Share T r us t, f or nil cons ider atio n, to b e use d to me et obli gation s under e mploy ee share p lans . On 7 June 2021 , t he C ompany tr ansf err ed 5 46 , 91 4 o rdinar y shar es f rom treas ur y to C ompute rshare Inv esto r Ser vice s plc and C ompute rshare T ru ste es (J ers ey) L imited , the adminis tra tor and tr us tee re spe ct ively ofE xpe rian’s share plans , for nil c onsid erat ion, to b e us ed to me et obli gation s under e mploye e share pl ans . A s at the date of ap prov al of this An nual Repo r t, t he Co mpany ho lds 48 ,43 6,4 1 4 (2021 : 52,278,01 3) of its ow n share s as trea sur y shar es , and had an une xpir ed au thor it y to p urchas e up to 92,324,4 40 of i ts o wn shares . De tail s of the n ew aut hor it y b eing re que ste d at the 2022 A GM are cont aine d in the circ ular to shareh olde rs , which ei ther a ccomp anies this Annual Re por t or is availab le on th e Comp any’s website at w w w . exper ianplc.com. Det ail s of the share s in the C ompany p urchas ed by an d held un der Th eE xpe rian p lc Emplo yee Shar e T r ust an d the E x per ian UK Ap pro ved All Emp loye e Share Pl an are se t out in no te R to the C ompany financial statement s. Significa nt agreements – chan ge of control Th e Group is p ar t y to a numb er of agr eem ent s that take e ec t , alter , termina te, or have th e pote ntial to do so , upon a chan ge of cont rol of th e Comp any foll owing a t akeo ver bid . Th es e agre eme nts ar e as fol lows: a T he Gr oup’s banking f acilit ies c ontain pr ovisio ns whic h, in the e vent of a change of co ntrol , co uld re sult in their r ene gotiat ion or w ithdr awal . a T he Gr oup’s Euronotes al low hol der s to requir e rep ayme nt of the note s, if a r ating a gen cy r e- ra tes th e notes to b elow inv es tment gr ade , follo wing a chan ge of contr ol . a A ll of E xp erian’s share- bas ed emp loyee in centi ve pl ans cont ain prov isions r elatin g to a change of co ntrol . Ou ts tan ding awar ds and optio ns woul d nor mally ve st and b ec ome exer cisab le, subje c t to satisfac tion of any perfor mance conditions at th at time. a T he Gr oup is par ty to a l imited numb er of op er ational ar ran geme nts that can b e ter minated o r altere d upon a chan ge of contr ol of th e Comp any , but t hes e are not c onsid ere d to be indi vidual ly signifi cant to the Gr oup’s busines s as a wh ole. In c er t ain cas es , it is co nside re d that their dis closure w ould b e ser iously p rejudi cial to the C ompany. Experian plc Governance 148 Employment information Employm ent of peo ple with disab ilities Peo ple wi th disabil itie s have eq ual opp or tuni tie s when ap plyin g for vac ancie s. In a dditio n to comply ing wi th le gislati ve re quirem ents , the Group ha s pro ce dure s to ensure i t tre ats dis able d empl oyee s fair ly andmanage s the ir trainin g and car eer de velop ment ne eds c aref ully. Th epol icie s are co nsid ere d to ope rate e e cti vely. The Gr oup sup po r t s employ ee s who b ec ome dis able d durin g the co urs e of their e mploy ment , by oe ring r e -tr aining or r e- d eploy ment , to enable th em to remain w ith the Gr oup wh ene ver p ossib le. Employe e involvemen t E xpe rian is co mmit ted to em ploye e involve ment thr ough out th e busine ss . T he Gr oup is intent on m otiv ating s ta , keeping t hem info rm ed on mat ter s that co ncer n th em in the co ntex t of the ir employ ment , and involvin g them t hrou gh loc al cons ultati ve pro ce dure s. W her e ther e are rec ogni tion a gree ment s wi th tra de union s, th e cons ultati on pro ce ss is es tabl ished t hrough na tional an d local t ra de union r epre sent ativ es and throu gh joint co nsulta tion co mmit tee s. Employ ee s are kept w ell infor me d on mat ter s of intere st an d the financial and e cono mic fa ctor s a ec ting th e Group’s per fo rman ce. Thisisd one thr ough mana geme nt channel s, c onfer enc es, m eet ings , publications and intranet sites. More detail on employee engagement, together with information on corporate responsibilit y , diversity, succ es sion pl anning and t alent dev elopm ent, c an be fo und in th e Oursus tainab le busin es s str ateg y se ct ion of th e Stra tegic r epo r t. E xpe rian sup por ts emp loye e share own ership b y prov iding , whe never pos sible, e mploye e share pl an arr ang ement s that ar e intende d to align employees’ interests wi th those of shareholders. Auditor infor mation Relevant audit informatio n A s at 1 7 May 2022, so far a s each dir ec tor is aware , ther e is no re levant infor matio n nee de d by the au ditor in c onne ct ion wi th pre parin g the au dit rep or t , of which t he audi tor is unaware , and all dir ec tors hav e taken all step s they o ught to have ta ken as dire cto rs to make th ems elves aw are ofany relev ant audi t infor mation an d to es tab lish that th e audito r is aware of it . Independent auditor Th e audito r , KP MG L LP , has indic ated i t s willin gne ss to co ntinue in o ce and a re solu tion tha t it be r e -appo inted as th e Comp any’s auditor w ill be pro pos ed a t the AGM . Statement of direc tors’ responsibilities Th e direc tor s are re spo nsible f or : a P repar ing t he Annual Re por t, the G roup an d Comp any financial sta tement s in acc ordanc e with ap plic able law an d re gulatio ns. Th edirec tor s have deci ded to p repar e voluntar ily a direc tor s’ remun era tion r epor t in acco rdanc e with S che dule 8 to T he L arge andMe dium- sized C ompani es and Gr oups ( Ac count s and Rep or ts) Regul ation s 2008 ma de unde r the UK C ompani es Ac t 200 6, as if t hos e requir ement s app lie d to the C ompany. a P repar ing finan cial st atement s wh ich give a t rue an d fair v iew of the sta te of aair s at th e bala nce she et date , and th e profi t or los s for th e per io d then en de d of (a) the Gro up (in acco rdanc e wit h IFRSs as adop ted fo r use in th e Europ ean Union an d UK-adopte d IFRS an d IA SB -IF RS), and (b) the Comp any (in acc ordan ce wit h UK Acc ounting Standar ds includin g FRS 10 1 ‘ Reduc ed D isclos ure Frame wor k ’). a Ke epin g suci ent acc ounting r ec ords tha t disclos e, wi th rea sonabl e accur ac y, at any time, the finan cial posi tion of th e Group an d the Comp any and enable t hem to ens ure the Gr oup financial s tate ment s comply wi th applic able laws . a Maint aining su ch internal c ontrol a s they d eterm ine is ne ces sar y to enable the preparation of financial statements fre e from material miss tatem ent, w heth er due to fr aud or e rro r , and have g ener al resp onsib ilit y f or tak ing the s teps r eas onably op en to th em to safe guard t he as set s of the G roup an d the C ompany and to p reve nt and dete ct f rau d and oth er irr egul ari ties . a T he maintenan ce and inte gri t y of the s tatu tor y an d audite d infor mation o n the C ompany’s websi te. Jer sey l egisla tion an d UK regulations governing the preparation and dissemination of financial statement s may dier from requirement s in other jurisdictions. In addi tion , the dire c tors c onsid er that , in prep arin g the financial statement s: a s uitable a ccount ing po licie s have be en sele cte d and app lie d consis tently; a ju dgment s and e st imates ma de have be en rea sonab le, re levant andrel iable; a t he Gro up financial st ateme nts c omply wi th IFRSs a s adop ted fo r usein th e Europ ean Union an d UK-adopte d IFRS an d IA SB -IF RS; a t he Co mpany financial s tatem ent s comply w ith UK Ac countin g Standar ds includin g FRS 10 1 ‘ Reduc ed D isclos ure Frame wor k ’ , subje ct to any mate rial dep ar tur es dis close d and ex plain ed in th e financial statem ents; a t he Gro up’ s and C ompany ’s abilit y to continu e as a goin g conc ern ha s be en ass es se d and, a s appli cable , mat ters r ela ted to go ing con cer n have be en disclos ed; an d a i t is appro priat e that the Gr oup and C ompany finan cial st atement s have be en pre pare d on the g oing c oncer n ba sis, unle ss it is inten de d to liquidate t he Co mpany or any Gr oup co mpany, or to cease ope rati ons or th ere is no r ealis tic alter nati ve to do so . Th e direc tor s al so co nfirm tha t, to th e be st of th eir kno wle dge, t he financial statem ents ar e prepar ed in acc ordance w ith the app licable s et of acco unting s tandar ds, gi ve a tr ue and f air vie w of the as set s , liabili ties , financial po sition an d profi t of the C ompany an d the und er tak ings includ ed in th e cons oli dation t aken as a w hole; an d the St rate gic re por t contain s a fair re view of th e deve lopme nt and pe r for manc e of the busine ss and t he po sitio n of the Co mpany and th e under taking s include d in the co nso lidat ion t aken as a wh ole , toge ther w ith a d es crip tion of th e prin cipal r isks an d uncer taintie s they f ace . In addi tion , each of th e dire cto rs co nsid ers t hat the A nnual Rep or t andfinancial s tate ment s, t aken as a w hole , is fair , b alanc ed an d under st andable , and pr ovid es th e infor mation n ece ss ar y f or shareho lder s to ass es s the Gr oup’s positio n and per forman ce, busine ssm ode l and str ate gy. By o rder of t he B oard Ch arle s B ro wn Company S ecr etar y 1 7 May 2022 Corpora te headq uarte rs: Newenham Hous e Nor thern Cross Malahid e Road Dublin 1 7 D1 7 A Y6 1 Ireland Regis tere d oce: 22 Gre nvill e Stre et St Hel ier Jersey JE4 8PX Channel Islands 149 Experian plc Annual Report 2022 Gover nance Experian plc Financial statements 150 Financial statements In this section 1 52 Indep endent audit or’s report Group financial statements 1 59 Group income statement 1 60 Group statement of comprehensive i ncome 1 6 1 Group balance sheet 1 62 Gro up st atement of chan ges in equi t y 1 63 Gro up cash fl ow st ateme nt Notes to the Group financial statements 1 6 4 1. Corp or ate informa tion 1 6 4 2. Ba sis of prep arati on 1 6 4 3. Re cent ac count ing dev elopm ent s 1 6 4 4. Signi ficant a cco unting po licie s 1 71 5. Cr iti cal ac countin g es timates , assump tions an d judgme nts 1 72 6. Us e of non - GA AP mea sure s in the Group financial s tatement s 1 73 7 . Finan cial risk mana gem ent 176 8 . R e v e n u e 1 77 9 . S egm ent informati on 18 2 10 . F o r e i g n c u r r e n c y 1 82 1 1. Lab our cos t s and emp loye e numbers – continuing operations 1 83 1 2. Amor tisation and depreciation charge s 1 83 1 3. Fees p ayab le to the Comp any ’ s au dit or 1 8 4 1 4. E xcepti onal items an d other adjustm ents made to der ive B enchmar k PBT – continuin gope rati ons 1 85 1 5. Net finance co st s 18 7 16 . Ta x c h a r g e 1 88 1 7 . Discontinued operations 1 8 8 1 8. Ear nings p er share dis closure s 1 89 1 9 . Dividends on ordinary shares 19 0 2 0 . G o o d w i l l 1 92 21 . Othe r intangib le ass et s 1 93 22. Prop er t y, plant and e quipment 1 94 23. Inves tme nts in a sso ciate s 1 94 24. T rad e and oth er re ceiv ables 1 95 25. Cash an d cash e quivalent s – excluding b ank over draf ts 1 96 26. T ra de and ot her pa yable s 19 6 2 7. B o r r o w i n g s 1 97 28. Net de bt (non - GA AP mea sure) 1 99 29 . Leases 200 30. Financial a sse ts an d liabili ties 205 31 . F air value m eth odo log y 205 32. Contr ac tual undis counte d fu ture cash flows fo r financial liabilitie s 206 33. Share inc entive p lans 208 34 . Post- employ ment be nefit p lans and rel ated r isk s 209 35. Post-e mploym ent ben efit s – IA S 1 9 inf or matio n 21 2 36. D efer re d and cur rent t ax 21 4 3 7 . Pr o v is i o ns 21 4 38. Cal led -up shar e capi tal and share premium a cco unt 21 4 3 9. Re t ai n e d ea r n in g s an d other reserves 21 6 40. Note s to the G roup c ash flow statement 21 8 41 . A c q ui s it i o n s 21 9 42. As sets clas sified as held-for-sale 21 9 4 3. D is p o s a l 21 9 4 4. C a pi t a l c o m m it m e nt s 220 45 . C ontin genci es 220 4 6. Rel ate d par t y t rans ac tio ns 221 47 . Event s oc cur rin g af ter th e end of the reporting period Company financial statements 222 C ompany pr ofit an d loss ac count 222 Comp any st atement of comprehensive i ncome 223 C ompany ba lanc e shee t 224 Comp any st atement of chan ges in equi t y 225 Note s to the C ompany financial statem ents 151 Experian plc Annual Report 2022 Financial statements 1. Our opinion is unmodified We ha ve audited the financial statements of Experian plc (“the Company”) for the year ended 31 March 2022 which comprise the Gr oup income statement, Gr oup statement of comprehensive income, Group balance sheet, Gr oup statement of changes in equity , Gr oup cash flow statement, Company profit and loss account, Company statement of comprehensive income, Compan y balance sheet, Company statement of changes inequityand the related notes, including the accounting policies in note4tothe Group financial statements and note E to the Company financial statements. In our opinion: a the Group financial statements give a true and fair view , in accordance with both the International Financial Reporting Standards as adopted by the European Union (“EU-IFRS”) and UK -adopted international accounting standards (“UK -IFRS”), of the state of the Gr oup’s aairs asat 31 March 2022 and of its pr ofit for the year then ended; a the parent Company financial statements give a true and fair view , in accordance with UK accounting standar ds, including FRS 101 Reduced Disclosure F ramework, of the state of the par ent Company’s aairs asat 31 March 2022 and of its pr ofit for the year then ended; and a the financial statements have been prepared in accor dance with the requir ements of the Companies (Jersey) Law 1991. Additional opinion in relation to IFRS as adopted by the International Accounting Standards Boar d (“IASB”) As explained in note 2 to the Group financial statements, the Group, in addition to applying both UK -IFRS and EU-IFRS, has also applied IFRS as issued by the IASB. In our opinion, the Group financial statements have been properly pr epared in accor dance with IFRS as issued by the IASB. Basis for opinion We conducted our audit in accor dance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law . Our r esponsibilities are described below . W e believe that the audit evidence we have obtained isasucient and appropriate basis for our opinion. Our audit opinion isconsistent with our report to the Audit Committee. We wer e first appointed as auditor by the shareholder s on 20 July 2016. The period of total uninterrupted engagement is for the six financial years ended 31 March 2022. W e have fulfilled our ethical responsibilities under , and we remain independent of the Gr oup in accordance with, UK ethical requir ements including the FRC Ethical Standard that would apply tolisted UK public interest entities. No non-audit services prohibited bythat standard wer e provided. Overview Materiality: Group financial statements asawhole US$61m (2021:US$48m) 4.2% (2021: 4.5%) of Group profit before tax (continuing operations) Coverage 90% (2021: 93%) of Group profit before tax (continuing operations) 89% (2021: 89%) of Group revenue 90% (2021: 89%) of Group total assets Key audit matters vs 2021 Recurring risks Uncertain tax positions Recoverability of goodwill in respect of the EMEA and APAC cash generating units Provisions for litigation and contingent liabilities Recoverability of the parent Company’s investment in subsidiaries Independent auditor’s report 2. K ey audit matters: our assessment of risks of material misstatement Key audit matters are those matter s that, in our pr ofessional judgement, wer e of most significance in the audit of the financial statements and include the most significant assessed risks of material misstatement (whether or not due to fr aud) identified by us, including those which had the greatest eect on: the overall audit str ategy; the allocation of resources in the audit; and dir ecting the eorts of the engagement team. W e summarise below the key audit matters (unchanged from 2021), in decreasing order of audit significance, in arriving at our audit opinion above, together with our key audit procedur es to address those matters and our findings (“our r esults”) from those pr ocedures in or der that the Company’s members, as a body , may better understand the process by which we arrived at our audit opinion. These matters were addr essed, and our r esults are based on pr ocedures undertaken, in the context of, and solely for the purpose of, our audit of the financial statements as a whole, and in forming o ur opinion thereon, and consequently are incidental to that opinion, and we do not provide a separ ate opinion on these matters. The risk Our response Uncertain tax positions (US$293m; 2021: US$350m) Refer to the Audit Committee Report within the Corporate Governance Report and the Group financial statements notes 4, 5,16, 36 and 45(a). Dispute outcome: The Group operates in a number of territories worldwide with complex local and international tax legislation. Significant uncertainties arise over ongoing tax matters in the UK, North America and Brazil. Tax provisioning for uncertain tax positions is judgemental and requires estimates to be made in relation to existing and potential tax matters. The eect of these matters is that, as part of our risk assessment, we determined that uncertain taxprovisions have a high degree of estimation uncertainty, with a potential range of reasonable outcomes greater than our materiality for the financial statements as a whole, and possibly manytimes that amount. We performed the tests below rather than seeking to rely on any of the Group's controls because the nature of the balance is such that we would expect to obtain audit evidence primarily through the detailed procedures described. Our audit procedures included: a Our tax expertise: We used our own tax specialists to perform anassessment of the Group’s tax positions through the inspection ofcorrespondence with the relevant tax authorities and critically assessed the advice that the Group has received from external advisors. We challenged the assumptions applied using our own expectations based on our knowledge of the Group and considered relevant judgements passed by authorities; and a Assessing transparency: We assessed the adequacy of the Group’s disclosures in respect of uncertain tax positions. Our results We found the level of tax provisioning and disclosures to be acceptable (2021 result: acceptable). T o the members of Experian plc Experian plc Financial statements 152 The risk Our response Recoverability of goodwill inrespect of the EMEA and APAC CGUs (US$737m; 2021: US$799m) Refer to the Audit Committee report within the Corporate Governance Report and the Group financial statements notes 4, 5 and 20. Forecast based assessment: The estimated recoverable amount of the EMEA and APAC cash generating units (“CGUs”) provide relatively low headroom compared to the Group’s other CGUs where there is significant headroom between the value in use and carrying value of CGUassets. The carrying values of both CGUs are sensitive to changes in key assumptions, principally relating toshort and long-term revenue growth, future profitability and discount rates, which could have amaterial impact on the carrying value of the associated goodwill. The eect of these matters is that, as part of ourrisk assessment, we determined that the recoverability of the EMEA and APAC goodwill hasahigh degree of estimation uncertainty, with apotential range of reasonable outcomes greater than our materiality for the financial statements asa whole. The financial statements (note 20) disclose the sensitivity estimated by the Group. We performed the tests below rather than seeking to rely on any of the Group's controls because the nature of the balance is such that we would expect to obtain audit evidence primarily through the detailed procedures described. Our audit procedures included: a Assessing methodology: We assessed whether the principles and integrity of the cash flow model used to estimate their recoverable amounts is in accordance with the relevant accounting standards; a Challenging growth assumptions: We challenged the Group’s assumptions and obtaining support, such as board-approved strategy plans, as well as corroborating long term growth rates toexternal sources; a Our sector experience: We critically assessed the appropriateness of the discount rates applied through the use of our valuations specialists; a Sensitivity analysis: We performed both breakeven and plausible scenario sensitivity analysis on the key assumptions noted above toidentify sensitivity to potential impairments; a Historical comparisons: We evaluated the track record of historical assumptions used against actual results achieved; and a Assessing transparency: We assessed whether the Group’s disclosures about the sensitivity of the outcome of the impairment assessment to a reasonably possible change in key assumptions reflected the risks inherent in the valuation of goodwill. Our results a We found the Group’s conclusion that there is no impairment ofgoodwill for the EMEA and APAC CGUs to be acceptable (2021result: acceptable). Provisions for litigation and contingent liabilities (US$16m; 2021: US$10m) Refer to the Audit Committee Report within the Corporate Governance Report and the Groupfinancial statements notes5, 37 and 45. Dispute outcome: The Group operates in an industry with continuously increasing levels of regulation, including the General Data Protection Regulation in the European Union and United Kingdom, Federal Consumer Financial Laws in North America and various federal and state legislative developments in Brazil, which increase the potential for regulatory breaches and penalties. High levels of consumer litigation continue in NorthAmerica and Brazil as well as the current regulatory investigations in North America, the UKand Brazil. We do not assess there to be a significant risk in relation to estimation uncertainty. This is because the current outstanding litigation relates to either contingent liabilities which are not estimates or provisions for settlement which do not result in estimates that have material possible ranges. However, the judgement around disclosures of contingent liabilities remains a significant risk. We performed the tests below rather than seeking to rely on any of the Group's controls because the nature of the balance is such that we would expect to obtain audit evidence primarily through the detailed procedures described. Our audit procedures included: a Enquiry of lawyers: On all significant legal cases, where appropriate, we assessed correspondence and enquired with the Group’s external lawyers to corroborate our understanding of these matters, accompanied by discussions with the Group’s internal counsel, aswell as challenging the Group’s assumptions on the likelihood andquantum of potential cash outflows; a Challenging judgement: We obtained detailed updates from the Group around existing and potential legal claims and challenged thekey judgements and assumptions made in assessing whether aprovision is required and/or whether a contingent liability disclosure is required based on our knowledge of the Group andexperience of the industry in which it operates; a Historical comparisons: We compared the outcomes of historical legal cases to current cases with similar fact patterns; and a Assessing transparency: We assessed whether the Group’s disclosures detailing significant legal proceedings adequately disclose the potential liabilities of the Group. Our results The results of our testing were satisfactory and we consider the provisions for litigation recognised and contingent liability disclosures made to be acceptable (2021 result: acceptable). 2. K ey audit matters: our assessment of risks of material misstatement c ontinued 153 Experian plc Annual Report 2022 Financial statements The risk Our response Recoverability of the parent Company’s investments in subsidiaries (US$19,979m; 2021: US$17,920m) Refer to the parent Company financial statements note M. Low risk, high value: The carrying amount of the parent Company’s investments in subsidiaries represents 100% (2021:91%) of the parent Company’s total assets. Their recoverability is not at a high risk of significant misstatement or subject to significant judgement. However, due to their materiality inthecontext of the parent Company financial statements, this is considered to be the area thathad the greatest eect on our overall parentCompany audit. We performed the tests below rather than seeking to rely on any of the Group's controls because the nature of the balance is such that we would expect to obtain audit evidence primarily through the detailed procedures described. Our audit procedures included: a Tests of detail: We compared the carrying amount of 100% of investments in subsidiaries with the relevant subsidiaries’ draft balance sheet to identify whether their net assets, being an approximation of the minimum recoverable amount of the related investments and amounts owed by subsidiary undertakings, were inexcess of their carrying amount, and assessing whether those subsidiaries have historically been profit making. Our results a We found the parent Company’s conclusion that there is no impairment of its investments in subsidiaries to be acceptable (2021 result: acceptable). We no longer consider that the r ecoverability of the par ent Company’s amounts due from subsidiaries repr esents a part of the ke y audit matter for our parent Company audit as a r esult of the reduction in the carrying amount to nil (2021: US$1,760m) and, ther efore, it is not sep ar ately identified this in the parent Company k ey audit matter this year . 3. Our applic ation of materiality and an overview of the scope of our audit Materiality Materiality for the Group financial statements as a whole was set at US$61m (2021: US$48m), determined with r eference to a benchmark ofconsolidated Group pr ofit before tax fr om continuing operations, ofwhich it repr esents 4.2% (2021: 4.5%). Materiality for the parent Company financial statements as a whole wasset at US$25m (2021: US$25m), determined with r eference to abenchmark of parent Company total assets, of which it represents 0.1%(2021: 0.1%). In line with our audit methodology , our pr ocedures on individual account balances and disclosures wer e performed to a lower threshold, performance materiality , so as to reduce to an acceptable level the risk that individually immaterial misstatements in individual account balances add up to a material amount across the financial statements as a whole. Performance materiality was set at 75% (2021: 75%) of materiality for thefinancial statements as a whole, which equates to US$46m (2021: US$36m) for the Group and US$19m (2021: US$19m) for the par ent Company . We applied this per centage in our determination of performance materiality because we did not identify any factors indic ating an elevated level of risk. We agr eed to report to the Audit Committee any corr ected or uncorrected identified misstatements exceeding US$3m (2021: US$2.4m), in addition to other identified misstatements that warranted r eporting on qualitative grounds. Our audit of the Group and par ent Company was undertaken to the materiality level specified above, which has informed our identific ation ofsignificant risks of material misstatement and the associated audit procedur es performed in those areas as detailed above. W e were able to rely upon the Gr oup’s internal control over financial r eporting in several areas of our audit, where our contr ols testing supported this approach, which enabled us to reduce the scope of our substantive audit work; in the other areas the scope of the audit work performed was fully substantive. Scoping Of the Group’s 206 (2021: 196) r eporting components, we subjected thr ee (2021: three) to full scope audits for Gr oup purposes, performed by component auditors (KPMG member firms). Additionally , two (2021:two) other reporting components wer e audited by the Group audit team, oneofwhich was the parent Company . The three r eporting components and work performed by the Group audit team accounted for the percentages illustr ated opposite. The remaining 11% (2021: 11%) of total Gr oup revenue, 10% (2021: 7%) oftotal profits and losses that make up Gr oup profit before tax (continuing operations) and 10% (2021: 11%) of total Gr oup assets is represented by201 (2021: 191) reporting components, none of which individually repr esented more than 3% (2021:2%) of any of total Gr oup revenue, Grouppr ofit before tax (continuing oper ations) or total Group assets. F or these residual components, we performed analysis at an aggregated Group level to r e-examine our assessment that there wer e no significant risks of material misstatement within these. The Group audit team instructed component auditors as to the signific ant areas to be cover ed, including the r elevant risks detailed above and the information to be reported back. The Group audit team appr oved the component materialities, which r anged from US$13m to US$45m (2021:US$9m to US$36m) having regar d to the mix of size and risk profile of the Gr oup across the components. The Group oper ates five shared service centr es in the UK, USA, Malaysia, Costa Rica and Bulgaria, the outputs of which are included in the financial information of the reporting components they service and ther efore theyare not separ ate reporting components. Each of the service centr es is subject to specified risk -focused audit procedures, predominantly thetesting of transaction pr ocessing and review controls. Additional procedur es are performed at certain r eporting components to addressthe audit risks not cover ed by the work performed over theshared service centr es. T elephone and video conference meetings wer e held with the North America, UK and Brazil component audit teams. At these meetings, the findings reported to the Gr oup audit team were discussed in mor e detail, and any further work requir ed by the Group audit team was then performed by the component auditors. Independent auditor’ s repor t contin ued 2. K ey audit matters: our assessment of risks of material misstatement c ontinued Experian plc Financial statements 154 4. The impact of climate change on our audit We ha ve considered the potential impacts of climate change on the financial statements as part of planning our audit. As the Group has set out on page 65, climate change has the potential to give rise to a number of transition risk s, phy sical risks and opportunities. The Group has stated their commitment to become c arbon neutral acr oss operations by 2030. The areas of financial statements that ar e most likely to be potentially aected by climate related changes and initiatives ar e balances subject toforward looking assessments such as impairment tests. The Group considered the impact of climate change and the Gr oup’s targets in the prepar ation of the financial statements, as described on page 190 in relation to impairment, and this did not have a material eect on the consolidated financial statements. We performed a risk assessment, taking into account climate change risks and the commitments made by the Gr oup. This included enquiries ofmanagement, consider ation of the Group’s processes for assessing thepotential impact of climate change risk on the Group’s financial statements, assessing the TCFD scenario analysis performed by the Group and r eading the Group’s Carbon Disclosur e Project submission. Based on our risk assessment we determined that, taking into account the limited extent of the impact of climate change on financial forec asts used to determine the recover ability of goodwill, the balances in these financial statements are not at signific ant risk in relation to climate. Hencewe assessed that there is not a signific ant impact on our audit forthis financial year . There was no impact of climate change on our key audit matter s includedin section 2. We ha ve read the Group’s disclosur e of climate related information inthefront half of the Annual Report as set out on pages 64 to 73 andconsidered consistency with the financial statements and our auditknowledge. Group profit before tax (continuing operations) US$1 ,4 47 m (2021 : US$1 ,077m) Group revenue T otal profits and losses that make up Group profit before tax (continuing operations) Group materiality US$6 1m (202 1 : US$4 8m) US$6 1m Whole F inancial Statements materiality (2021 : US$4 8m) Profit be fore tax (continuing operations) Group materiality US$3m Misstatements reported to the Audit Commit tee (2021 : US$2.4 m) US$45m Range of materialit y at three reporting components US$1 3m to US$45m (2021 : US$9m to US$36m) Full scope for Group audit purposes 2022 Full scope for Group audit purposes 202 1 Residual components 89% (2021 : 89%) 89 89 11 11 Group to tal assets 90% (2021 : 89%) 90 89 11 10 90% (2021 : 93%) 90 93 7 10 3. Our applic ation of materiality and an overview of the sc ope of our audit continued 155 Experian plc Annual Report 2022 Financial statements 5. Going c oncern The Directors ha ve prepared the financial statements on the going concern basis as they do not intend to liquidate the Group or the par ent Company or to cease their oper ations, and as they have concluded that the Group’s and the par ent Company’s financial position means that thisisrealistic. They have also concluded that ther e are no material uncertainties that could have cast signific ant doubt over their ability tocontinue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”). We used our knowledge of the Gr oup, its industry , and the general economic environment to identify the inher ent risks to its business modeland analysed how those risks might aect the Gr oup’s and parent Company’s financial resour ces or ability to continue operations over the going concern period. The risk that we considered most likely to adversely aect the Group’s and par ent Company’s available financial r esources and metrics relevant to debt covenants over this period is the loss or inappropriate use of data or systems, leading to serious reputational and brand damage, legal penalties and class action litigation. We consider ed whether these risks could plausibly aect the liquidity or covenant compliance in the going concern period by assessing the degree of downside assumption that, individually and collectively , could result inaliquidity issue, taking into account the Gr oup’s current and pr ojected cash and facilities (a r everse stress test). W e also assessed the completeness of the going concern disclosure. Our conclusions based on this work: we consider that the Directors’ use of the going concern basis of accounting in the prepar ation of the financial statements is appropriate; we have not identified, and concur with the Dir ectors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively , may cast signific ant doubt on the Group’s or parent Company's ability to continue as a going concern for the going concern period; and we have nothing material to add or dr aw attention to in relation to the Directors’ statement in note 2 to the financial statements on the use of thegoing concern basis of accounting with no material uncertainties that may cast significant doubt over the Gr oup and parent Company’s use of that basis for the going concern period, and we found the going concern disclosure in note 2 to be acceptable. However , as we cannot pr edict all future events or conditions and as subsequent events may result in outcomes that ar e inconsistent with judgements that were r easonable at the time they were made, the above conclusions are not a guar antee that the Group or the parent Company will continue in operation. 6. F raud and breaches of law s and regulations – ability todetect Identifying and responding to risks of material misstatement due to fraud T o identify risks of material misstatement due to fr aud (“fraud risk s”) weassessed events or conditions that could indicate an incentive or pressur e to commit fraud or pr ovide an opportunity to commit fraud. Our risk assessment procedur es included: a Enquiring of Directors, the Audit Committee, Internal Audit and inspection of policy documentation as to the Group’s high-level policies and procedur es to prevent and detect fr aud, including the internal audit function, and the Gr oup’s channel for “whistleblowing” , as well as whether they have knowledge of any actual, suspected or alleged fraud. a Reading Board, Audit Committee, Remuneration Committee, Nomination and Corporate Governance Committee minutes. a Considering remuneration incentive schemes and performance tar gets for management and Directors including the tar gets for management remuner ation linked to the Co-investment Plans and Performance Share Plan shar e incentive plans. a Using analytical procedures to identify an y unusual or unexpected relationships. We communic ated identified fraud risk s throughout the audit team andremained alert to any indic ations of fraud thr oughout the audit. Thisincluded communication fr om the Group audit team to full scope component audit teams of relevant fr aud risks identified at the Group level and request to full scope component audit teams to r eport to the Group audit team any instances of fr aud that could give rise to a material misstatement in the Group financial statements. As requir ed by auditing standards, we perform procedur es to address therisk of management override of controls and the risk of fr audulent revenue r ecognition, in particular non-tr ansactional revenue recorded in the wrong period, and the risk that Group and component management may make inappropriate accounting entries. We did not identify an y additional fraud risks. We also performed pr ocedures including: a Identifying journal entries to test for all full scope components and central entities based on risk criteria and comparing the identified entries to supporting documentation. These included those posted withkey descriptive words and those posted to unusual accounts. a Assessing when non-transactional revenue was r ecognised in all full scope components, particularly focusing on r evenue recognised in the days before the y ear end date, and whether it was r ecognised in the correct year . Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations We identified ar eas of laws and regulations that could r easonably be expected to have a material eect on the financial statements from our general commer cial and sector experience, and through discussion with the Directors (as r equired by auditing standards), and from inspection of the Group’s r egulatory and legal correspondence and discussed with the Directors the policies and pr ocedures regarding compliance with law s and regulations. As the Group is r egulated, our assessment of risk s involved gaining an understanding of the control en vironment including the entity’s procedur es for complying with regulatory r equirements. We communic ated identified laws and regulations thr oughout our team and remained alert to any indic ations of non-compliance throughout the audit. This included communication from the Gr oup audit team to full scope component audit teams of relevant law s and regulations identified at the Group level and a r equest for full scope component auditors to report to the Gr oup audit team any instances of non-compliance with laws and regulations that could give rise to a material misstatement in the Group financial statements. The potential eect of these laws and regulations on the financial statements varies consider ably . Firstly , the Gr oup is subject to laws and regulations that dir ectly aect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation as set outby Companies (Jersey) Law 1991, taxation legislation and pension legislation and we assessed the extent of compliance with these laws andregulations as part of our pr ocedures on the r elated financial statement items. Independent auditor’ s repor t contin ued Experian plc Financial statements 156 Secondly , the Gr oup is subject to many other laws and regulations wher e the consequences of non-compliance could have a material eect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following ar eas as those most likely to have such an eect: data pr otection legislation, healthand safety , anti-bribery , employment law and certain aspects ofcompany legislation recognising the financial and r egulated nature ofthe Group’s activities. Auditing standards limit the r equired audit pr ocedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of r egulatory and legal correspondence, if any . Ther efore, if a br each of operational r egulations isnot disclosed to us or evident from r elevant correspondence, an audit will not detect that breach. Further detail in r espect of the provisions for litigations, contingent liabilities and uncertain tax positions is set out in the key audit matter disclosures in section 2 of this r eport. Context of the ability of the audit to detect fraud or br eaches of law or regulation Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have pr operly planned and performed our audit in accordance with auditing standar ds. F or example, the further removed non-compliance with laws and r egulations is from the events and transactions r eflected in the financial statements, the less likely the inherently limited pr ocedures required by auditing standar ds would identify it. In addition, as with an y audit, ther e remained a higher risk of non- detection of fraud, as these may involve collusion, forgery , intentional omissions, misr epresentations, or the override of internal controls. Our audit procedur es are designed to detect material misstatement. W e are not responsible for pr eventing non-compliance or fraud and c annot be expected to detect non-compliance with all laws and regulations. 7. We hav e nothing to report on the other information in the Annual Report The Directors ar e responsible for the other information presented in theAnnual Report together with the financial statements. Our opinion onthe financial statements does not cover the other information and, accordingly , we do not express an audit opinion or , except as explicitly stated below , any form of assur ance conclusion thereon. Our responsibility is to r ead the other information and, in doing so, consider whether , based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work we have not identified material misstatements in the other information. Report on Director s’ Remuner ation In addition to our audit of the financial statements, the Dir ectors have engaged us to audit the information in the Report on Director s’ Remuner ation that is described as having been audited, which the Directors ha ve decided to prepare as if the Compan y were r equired tocomply with the requir ements of Schedule 8 to The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (S.I. 2008 No. 410) made under the UK Companies Act2006. In our opinion the part of the Directors’ R emuneration Report to be audited has been properly pr epared in accor dance with the UK Companies Act2006. Disclosures of emerging and principal risk s and longer- term viability We ar e requir ed to perform procedur es to identify whether there is amaterial inconsistency between the Directors’ disclosur es in respect ofemerging and principal risk s and the viability statement, and the financial statements and our audit knowledge. Based on those procedur es, we have nothing material to add or dr aw attention to in relation to: a the Directors’ confirmation within the Viability Statement on page 94 that they have carried out a r obust assessment of the emerging and principal risks facing the Gr oup, including those that would thr eaten itsbusiness model, futur e performance, solvency and liquidity; a the Risk management and principal risks disclosures describing these risks and how emer ging risks are identified, and explaining how they are being managed and mitigated; and a the Directors’ explanation in the Viability Statement of how they ha ve assessed the prospects of the Gr oup, over what period they have done so and why they considered that period to be appr opriate, and their statement as to whether they have a reasonable expectation that the Group will be able to continue in oper ation and meet its liabilities as they fall due over the period of their assessment, including an y related disclosures dr awing attention to any necessary qualifications or assumptions. Our work is limited to assessing these matters in the context of only the knowledge acquired during our financial statements audit. As we cannot predict all futur e events or conditions and as subsequent events may result in outcomes that ar e inconsistent with judgements that were reasonable at the time they wer e made, the absence of anything to r eport on these statements is not a guarantee as to the Gr oup’s and parent Company’s longer-term viability . Corporate governance disclosur es We ar e requir ed to perform procedur es to identify whether there is a material inconsistency between the Directors’ corpor ate governance disclosures and the financial statements and our audit knowledge. Based on those procedur es, we have concluded that each of the following is materially consistent with the financial statements and our audit knowledge: a the Directors’ statement that they consider that the Annual Report and financial statements taken as a whole is fair , balanced and understandable, and provides the information necessary for shareholders to assess the Gr oup’s position and performance, business model and strategy; a the section of the Annual Report describing the work of the Audit Committee, including the signific ant issues that the Audit Committee considered in r elation to the financial statements, and how these issues were addr essed; and a the section of the Annual Report that describes the review of the eectiveness of the Group’s risk management and internal contr ol systems. We ar e requir ed to review the part of the Corpor ate Governance Statement relating to the Gr oup’s compliance with the provisions of the UK Corporate Governance Code specified by the Listing Rules for our review . We ha ve nothing to report in this respect. 157 Experian plc Annual Report 2022 Financial statements 8. We hav e nothing to report on the other matter s on which we are r equired to report b y exc eption Under the Companies Act (Jersey) Law 1991, we are requir ed to report toyou if , in our opinion: a proper accounting records ha ve not been kept by the Company; a proper returns adequate for our audit have not been r eceived from branches not visited by us; a the Company’s financial statements and the part of the Report on Directors’ R emuneration which we wer e engaged to audit are not inagreement with the accounting r ecords and r eturns; or a we have not received all the information and explanations we requir e for our audit. We ha ve nothing to report in these respects. 9. R espective r esponsibilities Directors’ r esponsibilities As explained more fully in their statement set out on page 149, the Directors ar e responsible for: the prepar ation of the financial statements including being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the pr eparation of financial statements that are fr ee from material misstatement, whether due to fraud or err or; assessing the Group and parent Company’s ability tocontinue as a going concern, disclosing, as applicable, matters r elated to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Group or the par ent Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities Our objectives are to obtain r easonable assurance about whether the financial statements as a whole are fr ee from material misstatement, whether due to fraud or err or , and to issue our opinion in an auditor’s report. Reasonable assur ance is a high level of assurance, but does not guarantee that an audit conducted in accor dance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fr aud or error and are considered material if , individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. A fuller description of our responsibilities is pr ovided on the FRC’s website at www .frc.org.uk/auditorsr esponsibilities. The Company will be including these financial statements in an annual financial report pr epared using the single electr onic reporting format specified in the TD ESEF Regulation. This auditor’s report pr ovides no assurance over whether the annual financial r eport has been prepar ed inaccordance with that format. 10. The purpose of our audit work and to whom we ow e ourresponsibilities This report is made solely to the Company’s member s, as a body , in accordance with Article 113A of the Companies (Jersey) Law 1991 and the terms of our engagement by the Company . Our audit work has been undertaken so that we might state to the Company’s members those matters we are r equired to state to them in an auditor’s report, and the further matters we are r equired to state to them in accordance with the terms agreed with the Company , and for no other purpose. T o the fullest extent permitted by law , we do not accept or assume responsibility to anyone other than the Company and the Company’s member s, as a body , for our audit work, for this r eport, or for the opinions we have formed. Andrew Bradshaw (Senior Statutory A uditor) for and on behalf of KPMG LLP Chartered Accountants and Recognized Auditor 15 Canada Square London E14 5GL United Kingdom 17 May 2022 Independent auditor’ s repor t contin ued Experian plc Financial statements 158 Notes 2022 2021 Benchmark 1 US$m Non- benchmark 2 US$m Total US$m Benchmark 1 US$m Non- benchmark 2 US$m Total US$m Revenue 8, 9 6,288 — 6,288 5,372 — 5,372 Labour costs 11(a) (2,302) (11) (2,313) (1,965) (30) (1,995) Data and information technology costs (1,000) — (1,000) (861) — (861) Amortisation and depreciation charges 12 (484) (174) (658) (453) (138) (591) Marketing and customer acquisition costs (503) — (503) (417) — (417) Other operating charges (357) (88) (445) (295) (150) (445) Total operating expenses (4,646) (273) (4,919) (3,991) (318) (4,309) Net profit on disposal of business and associates 14(b), 14(c) — 47 47 — 120 120 Operating profit/(loss) 1,642 (226) 1,416 1,381 (198) 1,183 Finance income 15 169 184 12 — 12 Finance expense (125) — (125) (133) (6) (139) Net finance income/(costs) 15 (110) 169 59 (121) (6) (127) Share of post-tax (loss)/profit of associates 3 (31) (28) 5 16 21 Profit/(loss) before tax 9 1,535 (88) 1,447 1,265 (188) 1,077 Tax (charge)/credit 16 (394) 98 (296) (328) 53 (275) Profit/(loss) for the financial year from continuing operations 1,141 10 1,151 937 (135) 802 Profit for the financial year from discontinued operations 17 — 16 16 — — — Profit/(loss) for the financial year 1,141 26 1,167 937 (135) 802 Attributable to: Owners of Experian plc 1,138 27 1,165 938 (135) 803 Non-controlling interests 3 (1) 2 (1) — (1) Profit/(loss) for the financial year 1,141 26 1,167 937 (135) 802 Total Benchmark EBIT 1 9(a)(i) 1,645 1,386 Group income statement for the year ended 31 March 2022 Notes US cents US cents US cents US cents US cents US cents Earnings/(loss) per share Basic 18(a) 124.5 3.0 127.5 103.1 (14.9) 88.2 Diluted 18(a) 123.6 2.9 126.5 102.3 (14.7) 87.6 Earnings/(loss) per share from continuing operations Basic 18(a) 124.5 1.2 125.7 103.1 (14.9) 88.2 Diluted 18(a) 123.6 1.2 124.8 102.3 (14.7) 87.6 Benchmark PBT per share 1,3 167.9 139.0 Full-year dividend per share 1 19 51.75 47.00 1 T otal Benchmark EBIT , Benchmark PBT per share and F ull-year dividend per share are non-GAAP measur es, defined in note 6. 2 The loss before tax for non-benchmark items of US$88m (2021: US$188m) comprises a net credit for Exceptional items of US$21m (2021: US$35m) and net char ges for other adjustments made to derive Benchmark PBT of US$109m (2021: US$223m). F urther information is given in note 14. 3 Benchmark PBT per share is calculated by dividing Benchmark PBT of US$1,535m (2021: US$1,265m) by the weighted aver age number of ordinary shar es of 914 million (2021: 910 million). The amount is stated in US cents per share. 159 Experian plc Annual Report 2022 Financial statements 2022 US$m 2021 US$m Profit for the financial year 1,167 802 Other comprehensive income Items that will not be reclassified to profit or loss: Remeasurement of post-employment benefit assets and obligations (note 35(b)) 121 2 Changes in the fair value of investments revalued through OCI 5 11 Deferred tax charge (22) (1) Items that will not be reclassified to profit or loss 104 12 Items that are or may be reclassified subsequently to profit or loss: Currency translation gains 35 70 Cumulative currency translations in respect of divestments reclassified to profit or loss 14 — Fair value (loss)/gain on cash flow hedge (24) 35 Hedging loss/(gain) reclassified to profit or loss 26 (33) Items that are or may be reclassified subsequently to profit or loss 51 72 Other comprehensive income for the financial year 1 155 84 Total comprehensive income for the financial year 1,322 886 Attributable to: Owners of Experian plc 1,320 881 Non-controlling interests 2 5 Total comprehensive income for the financial year 1,322 886 1 Amounts reported within Other comprehensive income (OCI) are in r espect of continuing operations and, except as r eported for post-employment benefit assets and obligations, there is no associated tax. Curr ency translation items, not reclassified to profit or loss, are recognised in the hedging or tr anslation reserve within other reserves and in non-contr olling interests. Other items within Other compr ehensive income are recognised in retained earnings. Group statement of comprehensiv e income for the year ended 31 March 2022 Experian plc Financial statements 160 Notes 2022 US$m 2021 US$m Non-current assets Goodwill 20 5,737 5,261 Other intangible assets 21 2,214 1,966 Property, plant and equipment 22 415 469 Investments in associates 23 4 128 Deferred tax assets 36(a) 46 86 Post-employment benefit assets 35(a) 216 102 Trade and other receivables 24(a) 133 160 Financial assets revalued through OCI 30(a) 375 245 Other financial assets 30(b) 81 223 9,221 8,640 Current assets Trade and other receivables 24(a) 1,409 1,197 Current tax assets 36(b) 37 34 Other financial assets 30(b) 7 20 Cash and cash equivalents – excluding bank overdrafts 25(a) 179 180 1,632 1,431 Assets classified as held-for-sale 42 41 — 1,673 1,431 Current liabilities Trade and other payables 26(a) (1,744) (1,543) Borrowings 27(a) (57) (655) Current tax liabilities 36(b) (109) (176) Provisions 37 (33) (27) Other financial liabilities 30(b) (22) (15) (1,965) (2,416) Net current liabilities (292) (985) Total assets less current liabilities 8,929 7,655 Non-current liabilities Trade and other payables 26(a) (248) (159) Borrowings 27(a) (4,039) (3,682) Deferred tax liabilities 36(a) (353) (361) Post-employment benefit obligations 35(a) (52) (55) Provisions 37 (4) — Other financial liabilities 30(b) (226) (279) (4,922) (4,536) Net assets 4,007 3,119 Equity Called-up share capital 38 96 96 Share premium account 38 1,780 1,756 Retained earnings 39(a) 20,157 19,207 Other reserves 39(b) (18,064) (17,978) Attributable to owners of Experian plc 3,969 3,081 Non-controlling interests 38 38 Total equity 4,007 3,119 These financial statements were appr oved by the Board on 17 May 2022 and wer e signed on its behalf by: Kerry Williams Director Group balance sheet at 31 March 2022 161 Experian plc Annual Report 2022 Financial statements Called-up share capital (Note 38) US$m Share premium account (Note 38) US$m Retained earnings (Note 39) US$m Other reserves (Note 39) US$m Attributable to owners of Experian plc US$m Non- controlling interests US$m Total equity US$m At 1 April 2020 96 1,574 18,826 (18,221) 2,275 6 2,281 Comprehensive income: Profit for the financial year — — 803 — 803 (1) 802 Other comprehensive income for the financial year — — 12 66 78 6 84 Total comprehensive income for the financial year — — 815 66 881 5 886 Transactions with owners: Employee share incentive plans: – value of employee services — — 106 — 106 — 106 – shares issued on vesting — 19 — — 19 — 19 – other vesting of awards and exercises of share options — — (75) 87 12 — 12 – related tax credit — — 2 — 2 — 2 – other payments — — (6) — (6) — (6) Shares delivered as consideration for acquisition — 163 — 90 253 — 253 Non-controlling interests arising on business combinations — — (34) — (34) 24 (10) Recognition of non-controlling interests on acquisition — — — — — 4 4 Dividends paid — — (427) — (427) (1) (428) Transactions with owners — 182 (434) 177 (75) 27 (48) At 31 March 2021 96 1,756 19,207 (17,978) 3,081 38 3,119 Group statement of changes in equity for the year ended 31 March 2022 Called-up share capital (Note 38) US$m Share premium account (Note 38) US$m Retained earnings (Note 39) US$m Other reserves (Note 39) US$m Attributable to owners of Experian plc US$m Non- controlling interests US$m Total equity US$m At 1 April 2021 96 1,756 19,207 (17,978) 3,081 38 3,119 Comprehensive income: Profit for the financial year — — 1,165 — 1,165 2 1,167 Other comprehensive income for the financial year — — 118 37 155 — 155 Total comprehensive income for the financial year — — 1,283 37 1,320 2 1,322 Transactions with owners: Employee share incentive plans: – value of employee services — — 149 — 149 — 149 – shares issued on vesting — 24 — — 24 — 24 – purchase of shares by employee trusts — — — (61) (61) — (61) – other vesting of awards and exercises of share options — — (40) 49 9 — 9 – other payments — — (4) — (4) — (4) Purchase of shares held as treasury shares — — — (111) (111) — (111) Transactions with non-controlling interests — — 6 — 6 — 6 Dividends paid — — (444) — (444) (2) (446) Transactions with owners — 24 (333) (123) (432) (2) (434) At 31 March 2022 96 1,780 20,157 (18,064) 3,969 38 4,007 Experian plc Financial statements 162 Notes 2022 US$m 2021 US$m Cash flows from operating activities Cash generated from operations 40(a) 2,270 1,822 Interest paid (127) (119) Interest received 6 4 Dividends received from associates 13 17 Tax paid (366) (236) Net cash inflow from operating activities – continuing operations 1,796 1,488 Net cash inflow from operating activities – discontinued operations 17 1 — Net cash inflow from operating activities 1,797 1,488 Cash flows from investing activities Purchase of other intangible assets 40(c) (445) (374) Purchase of property, plant and equipment (63) (48) Sale of property, plant and equipment 23 1 Purchase of other financial assets (32) (31) Sale of other financial assets 12 24 Distributions received on financial assets held as investments 2 — Acquisition of subsidiaries, net of cash acquired 40(d) (736) (526) Disposal of investment in associates 14(c), 23 12 127 Repayment of promissory note and interest by associate 23 110 — Disposal of operations 43 (1) — Net cash flows used in investing activities (1,118) (827) Cash flows from financing activities Cash inflow in respect of shares issued 40(e) 24 19 Cash outflow in respect of share purchases 40(e) (173) — Other payments on vesting of share awards (4) (6) Settlement of put options held over shares in subsidiaries 40(d) (4) — Transactions in respect of non-controlling interests 40(d) (1) (10) New borrowings 571 1,011 Repayment of borrowings (583) (1,337) Principal lease payments (57) (56) Net (payments)/receipts for cross-currency swaps and foreign exchange contracts (16) 54 Net receipts from equity swaps 2 6 Dividends paid (446) (428) Net cash flows used in financing activities (687) (747) Net decrease in cash and cash equivalents (8) (86) Cash and cash equivalents at 1 April 170 272 Exchange movements on cash and cash equivalents 14 (16) Cash and cash equivalents at 31 March 40(f) 176 170 Group c ash flow statement for the year ended 31 March 2022 163 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements for the year ended 31 M arch 2022 1. Corpor ate information Experian plc (the Company) is the ultimate parent compan y of the Experian group of companies (Experian or the Gr oup). Experian is a leading global information services group. The Company is incorpor ated and registered in Jer sey as a public company limited by shares and is r esident in Ireland. The Compan y’s register ed oce is at 22 Grenville Str eet, St Helier , Jersey , JE4 8P X, Channel Islands. The Company’s ordinary shar es are tr aded on the London Stock Exchange’s Regulated Market and have a Pr emium Listing. There has been no change in this information since the Annual Report for the year ended 31 March 2021. 2. Basis of pr eparation The Group financial statements ar e: a prepared in accordance with the Companies (Jer sey) Law 1991 and both UK -adopted International Accounting Standards (UK -IFRS) and International Financial Reporting Standards (IFRS or IFRSs) as adopted for use in the European Union (the EU) and IFRS Interpr etations Committee interpretations (together EU-IFRS). The financial statements also comply with IFRS as issued by the International Accounting Standards Boar d (IASB). UK -IFRS, EU-IFRS and IFRS as issued by the IASB all dier in certain respects fr om each other , however , the dierences have no material impact for the periods pr esented; a prepared on the going concern basis and under the historical cost convention, as modified for the revaluation of certain financial assets and financial liabilities; a presented in US dollars, the most r epresentative curr ency of the Group’s oper ations, and gener ally rounded to the nearest million; a prepared using the principal exchange r ates set out in note 10; and a designed to voluntarily include disclosures in line with those parts of the UK Companies Act 2006 applicable to companies r eporting under that law . There has been no change in the basis of pr eparation of the Gr oup financial statements since the Annual Report for the year ended 31 Mar ch 2021. The use of critical accounting estimates and management judgment is requir ed in applying the accounting policies. Ar eas involving a higher degree of judgment or complexity , or where assumptions and estimates are signific ant to the Group financial statements, are highlighted in note 5. Going concern In adopting the going concern basis for preparing these financial statements, the dir ectors have consider ed the business activities, the principal risks and uncertainties and the other matters discussed in connection with the Viability statement. At 31 March 2022, the Group had undr awn committed bank borrowing facilities of US$2.6bn (2021: US$2.7bn) which have an aver age remaining tenor of three year s (2021: four years). The directors believe that the Gr oup and the Company are well placed to manage their financing and other business risks satisfactorily , and have a reasonable expectation that the Gr oup and the Company will have adequate resour ces to continue their operational existence for at least 12 months from the date of signing these financial statements. The director s therefor e consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements. In reaching this conclusion, the dir ectors noted the Group’s str ong cash performance in the year , and its r esilience in the face of a viability reverse stress-test scenario. 3. R ecent ac counting de velopments There have been no accounting standar ds, amendments or interpretations eective for the first time in these financial statements which have had a material impact on the financial statements. Interest Rate Benchmark Reform – Phase 2, Amendments to IFRS 9 ‘Financial Instruments’ , IAS 39 ‘Financial Instruments: Recognition and Measurement’ , IFRS 7 ‘Financial Instruments: Disclosur es’ and IFRS 16 ‘Leases’ were eective for Experian fr om 1 April 2021 and had no material impact on the Group’s financial r esults. Phase 2 amendments provide r elief from certain r equirements in IFRS Standards. These reliefs r elate to modifications of financial instruments, lease contracts or hedging r elationships due to the transition from interbank oered r ates (IBOR) to alternative benchmark interest r ates. If the basis for determining the contractual c ash flows of a financial asset or financial liability measured at amortised cost, changed as a direct consequence of interest r ate benchmark reform and the new basis for determining the contractual c ash flows is economically equivalent to that immediately preceding the change, the basis for determining the contractual c ash flows is updated prospectively by r evising the eective interest r ate. When changes are made to hedging instruments, hedged items and hedged risk as a result of inter est rate benchmark r eform, the Gr oup updates the hedge documentation without discontinuing the hedging relationship and, in the case of a cash flow hedge, the amount accumulated in the cash flow hedge r eserve is deemed to be based on the alternative benchmark rate on which the hedged futur e cash flows ar e determined. Details of the derivative financial instruments aected by interest r ate benchmark reform together with a summary of the actions taken by the Group to manage the risk s relating to the reform ar e given in note 7. There ar e no other new standards, amendments to existing standards, or interpretations that ar e not yet eective, that ar e expected to have a material impact on the Group’s financial r esults. Accounting developments are r outinely reviewed by the Gr oup and its financial reporting systems ar e adapted as appropriate. 4. Signific ant acc ounting policies The significant accounting policies applied ar e summarised below . They have been applied consistently to both years pr esented. The explanations of these policies focus on areas wher e judgment is applied or which are particularly important in the financial statements. F or ease of reference, the content within this note is arranged as follow s: a sections (a) to (d) – content that applies generally to the prepar ation of these financial statements; a sections (e) to (p) – balance sheet policies, to be read in conjunction with specific notes as indicated; a sections (q) to (x) – income statement policies, to be read in conjunction with specific notes as indicated; and a section (y) – the policy and presentation principles adopted for disclosing segment information, in accor dance with IFRS 8 ‘Operating Segments’ . (a) Basis of consolidation The Group financial statements incorpor ate the financial statements of the Company and its subsidiary undertakings. Experian plc Financial statements 164 Subsidiaries Subsidiaries are fully consolidated fr om the date on which control is transferr ed to the Group and cease to be consolidated fr om the date that the Group no longer has contr ol. All business combinations ar e accounted for using the acquisition method. Intra-Gr oup transactions, balances and unr ealised gains on transactions between Group companies ar e eliminated on consolidation. Unr ealised losses are also eliminated unless the tr ansaction provides evidence of an impairment of the asset transferr ed. Accounting policies of subsidiaries and segments are consistent with the policies adopted by the Group for the purposes of the Gr oup’s consolidation. The Group financial statements incorpor ate the financial statements of the Company and its subsidiary undertakings for the year ended 31 March 2022. A full list of subsidiary undertakings is given in note T to the Company financial statements. Associates Interests in associates ar e accounted for using the equity method. They are initially r ecognised at cost, which includes tr ansaction costs. Subsequent to initial recognition, the Group financial statements include the Group’s shar e of the profit or loss and other compr ehensive income of equity-accounted investees, until the date on which significant influence ceases. Gains or losses on disposal ar e recognised within oper ating profit. Non-controlling interests The non-controlling inter ests in the Group balance sheet r epresent the share of net assets of subsidiary undertakings held outside the Gr oup. The movement in the year comprises the profit attributable to such inter ests together with any dividends paid, movements in respect of corpor ate transactions and r elated exchange dierences. The Group tr eats transactions with non-contr olling interests that do not result in a loss of contr ol as transactions with equity owners of the Gr oup. F or purchases from non-contr olling interests, the dier ence between any consideration paid and the r elevant share acquired of the carrying v alue of the net assets of the subsidiary is recor ded in equity . Gains or losses on disposals to non-controlling inter ests are also r ecorded in equity . Where put option agr eements are in place in r espect of shares held by non-controlling shar eholders, the liability is stated at the pr esent value of the expected future payments. Such liabilities are shown as financial liabilities in the Group balance sheet. The change in the value of such options in the year is recognised in the Gr oup income statement within net finance costs, while an y change in that value attributable to exchange rate movements is r ecognised directly in Other compr ehensive income (OCI). Where put option agr eements are in place the Gr oup adopts the ‘anticipated acquisition’ approach, recor ding the other side of the put liability against goodwill, with no subsequent pr ofits attributed to non-controlling inter ests. (b) F oreign currency translation T ransactions and balances T ransactions in foreign curr encies are r ecorded in the functional currency of the relevant Gr oup undertaking at the exchange rate prevailing on the date of the transaction. At each balance sheet date, monetary assets and liabilities denominated in foreign curr encies are r etranslated at the exchange rate pr evailing at the balance sheet date. T ranslation dierences on monetary items are taken to the Gr oup income statement except when recognised in OCI, as qualifying net investment hedges or cash flow hedges. T ranslation dier ences on non-monetary financial assets revalued thr ough OCI are reported as part of the fair value gains or losses in OCI. Group undertakings The results and financial position of Gr oup undertakings whose functional currencies ar e not the US dollar are tr anslated into US dollars as follows: a Income and expenses are generally tr anslated at the aver age exchange rate for the y ear . Wher e this average is not a reasonable appr oximation of the cumulative eect of the rates pr evailing on the transaction dates, income and expenses are tr anslated at the rates on the dates of the transactions. a Assets and liabilities are translated at the closing exchange r ate on the balance sheet date. a All resulting exchange dierences are r ecognised in OCI and as a separate component of equity . On consolidation, exchange dier ences arising from the tr anslation of the net investment in Group undertakings whose functional curr encies are not the US dollar , and of borr owings and other currency instruments designated as hedges of such investments, are recognised in OCI to the extent that such hedges are eective. T ax attributable to those exchange dierences is taken dir ectly to OCI. When such undertakings ar e sold, these exchange dierences ar e recognised in the Gr oup income statement as part of the gain or loss on sale. Goodwill and fair v alue adjustments arising on the acquisition of such undertakings are tr eated as assets and liabilities of the entities and are tr anslated into US dollars at the closing exchange rate. (c) F air value estimation The fair values of derivative financial instruments and other financial assets and liabilities are determined by using market data and established estimation techniques such as discounted cash flow and option valuation models. The fair value of for eign exchange contracts is based on a comparison of the contractual and y ear-end exchange r ates. The fair values of other derivative financial instruments ar e estimated by discounting the future c ash flows to net present values, using appropriate market r ates prevailing at the balance sheet date. (d) Impairment of non-financial assets Assets that are not subject to amortisation or depr eciation are tested annually for impairment. Assets that ar e subject to amortisation or depreciation ar e reviewed for impairment when ther e is an indication that the carrying amount may not be r ecoverable. An impairment charge is recognised for the amount by which an asset’s c arrying amount exceeds its recover able amount, which is the higher of an asset’s fair value less costs of disposal and value-in-use. For the purposes of assessing impairment, assets ar e grouped into c ash generating units (CGUs), determined by the lowest levels for which there ar e separately identifiable cash flows. (e) Goodwill (note 20) Goodwill is stated at cost less any accumulated impairment, where cost is the excess of the fair value of the consider ation payable for an acquisition over the fair value at the date of acquisition of the Group’s shar e of identifiable net assets of a subsidiary or associate acquired. F air values are attributed to the identifiable assets, liabilities and contingent liabilities that existed at the date of acquisition, r eflecting their condition at that date. Adjustments ar e made where necessary to align the accounting policies of acquired businesses with those of the Gr oup. Goodwill is not amortised but is tested annually for impairment, or mor e frequently if there is an indic ation that it may be impaired. An impairment charge is recognised in the Gr oup income statement for any amount by which the carrying value of the goodwill exceeds the r ecoverable amount. 4. Signific ant acc ounting policies continued 165 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued Goodwill is allocated to CGUs and monitor ed for internal management purposes by operating segment. The allocation is made to those CGUs or groups of CGUs that ar e expected to benefit from the business combination in which the goodwill arose. Gains and losses on the disposal of an undertaking take account of the carrying amount of goodwill r elating to the undertaking sold, allocated where necessary on the basis of r elative fair value, unless another method is determined to be more appr opriate. (f) Other intangible assets (note 21) Acquisition intangibles Intangible assets acquired as part of a business combination ar e capitalised on acquisition at fair value and separ ately from goodwill, if those assets are identifiable (separ able or arising from legal rights). Such assets are r eferred to as acquisition intangibles in these financial statements. Amortisation is char ged on a straight -line basis as follows: a Customer and other relationships – over three to 18 years, based on management’s estimates of the aver age lives of such relationships, and reflecting their long-term natur e. a Acquired software development – over three to eight y ears, based on the asset’s expected life. a Marketing-related assets (trademark s and licences) – over their contractual lives, up to a maximum of 20 years. a Marketing-related assets (trade names) – over thr ee to 14 years, based on management’s expected retention of tr ade names within the business. Other intangibles Other intangibles are c apitalised at cost. Certain costs incurr ed in the developmental phase of an internal project ar e capitalised provided that a number of criteria are satisfied. These include the technical feasibility of completing the asset so that it is available for use or sale, the availability of adequate resour ces to complete the development and to use or sell the asset, and how the asset will gener ate probable future economic benefit. The cost of such assets with finite useful economic or contractual lives is amortised on a straight -line basis over those lives. The carrying values are r eviewed for impairment when events or changes in circumstances indicate that the carrying v alues may not be recover able. If impair ed, the carrying values ar e written down to the higher of fair value less costs of disposal and value-in-use, which is determined by reference to pr ojected future income str eams using assumptions in respect of pr ofitability and growth. Further details on the c apitalisation and amortisation policy for the key asset classifications within other intangibles ar e: a Databases – capitalised databases, which comprise the data purchase and captur e costs of internally developed databases, ar e amortised over three to seven year s. a Computer software (internal use) – computer software licences purchased for internal use ar e capitalised on the basis of the costs incurred to pur chase and bring into use the specific software. These costs are amortised over thr ee to ten years. a Computer software (internally generated) – costs dir ectly associated with producing identifiable and unique softwar e products contr olled by the Group, and that will generate economic benefits bey ond one year , are r ecognised as intangible assets. These costs ar e amortised over three to ten year s. Research expenditur e, together with other costs associated with developing or maintaining computer software pr ograms or databases, is recognised in the Gr oup income statement as incurred. (g) Property , plant and equipment (note 22) Purchased items of pr operty , plant and equipment are held at cost less accumulated depreciation and any impairment in v alue. Cost includes the original purchase price of the asset and amounts attributable to bringing the asset to its working condition for its intended use. Depreciation is char ged on a straight -line basis as follows: a Freehold pr operties – over 50 years. a Leasehold improvements to short leasehold properties – over the remaining period of the lease. a Plant and equipment – over three to ten years, according to the asset’s estimated useful life. T echnology-based assets are typic ally depreciated over three to five year s, motor vehicles over four to five years, with other infrastructur e assets depreciated over five to ten year s. (h) T rade and other receivables (note 24) T rade receivables and contr act assets are initially recognised at fair value and subsequently measured at this value less loss allowances. Where the time value of money is material, receivables ar e then carried at amortised cost using the eective interest method, less loss allowances. We apply the IFRS 9 simplified lifetime expected cr edit loss approach. Expected credit losses ar e determined using a combination of historical experience and forward-looking information. Impairment losses or credits in respect of tr ade receivables and contract assets ar e recognised in the Group income statement, within other operating char ges. (i) Cash and cash equivalents (note 25) Cash and cash equivalents include c ash in hand, term and call deposits held with banks and other short-term, highly liquid investments with original maturities of three months or less. Bank overdr afts are shown within borrowings in curr ent liabilities in the Group balance sheet. For the purposes of the Group c ash flow statement, cash and c ash equivalents are r eported net of bank overdr afts. ( j) Financial assets and liabilities (note 30) Financial assets We classify our financial assets into the following measur ement categories, with the classification determined on initial recognition and dependent on the purpose for which such assets are acquir ed: a those subsequently measured at fair value (either through OCI or through pr ofit or loss), and a those measured at amortised cost. Directly attributable tr ansaction costs are expensed wher e an asset is carried at ‘fair value thr ough profit or loss’ (FVPL) and added to the fair value of the asset otherwise. Financial assets with embedded derivatives are consider ed in their entirety when determining whether their c ash flows are solely a payment of principal and interest. Debt instruments Measurement of debt instruments depends on the Gr oup’s business model for managing the asset and the cash flow char acteristics of the asset. There are thr ee measurement categories into which the Group classifies debt instruments: a Amortised cost: Assets that are held for collection of contractual cash flows where those c ash flows are solely r epayments of principal and interest ar e measured at amortised cost. Interest income fr om these financial assets is recognised using the eective inter est method. Any impairment or gain or loss on derecognition is r ecognised directly in the Group income statement. 4. Signific ant acc ounting policies continued Experian plc Financial statements 166 a Fair v alue through Other comprehensive income (FV OCI): Assets that are held both for the collection of contr actual cash flows and for their sale, wher e the asset’s cash flows solely r epresent payments of principal and interest, are measur ed at FVOCI. Movements in the carrying amount ar e taken through OCI, however recognition of impairment gains or losses, inter est income and foreign exchange gains or losses are r ecognised in the Group income statement. a FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measur ed at FVPL. A gain or loss on a debt instrument that is subsequently measured at FVPL is r ecognised in the Group income statement and presented net within other gains or losses in the period in which it arises. Equity instruments We measur e all equity instruments at fair value. Wher e we have elected to present fair value gains or losses on equity in vestments in OCI, ther e is no subsequent reclassific ation of fair value gains or losses to the Group income statement following the derecognition of the investment. Dividends from such investments ar e normally recognised as other income when the Group’s right to r eceive payments is established. Changes in the fair value of financial assets at FVPL are r ecognised in other gains or losses in the Group income statement. Impairment losses, and reversals of impairment losses, on equity investments measured at FVOCI are not r eported separately from other changes in fair value. Impairment The loss allowances for financial assets are based on assumptions about significant incr eases in credit risk and subsequent risk of default. W e use judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Group’s history , existing mark et conditions and forward-looking estimates at the end of each r eporting period. Financial liabilities Financial liabilities are measur ed subsequently at amortised cost using the eective interest method or at FVPL. Financial liabilities ar e classified at FVPL when the financial liability is held for trading, it is a derivative or it is designated at FVPL on initial recognition. Financial liabilities at FVPL are measured at fair value, with any net gains or losses arising on changes in fair value, including any interest expense, recognised in the Gr oup income statement. Other financial liabilities are subsequently measur ed at amortised cost using the eective interest method. Interest expense, foreign exchange gains and losses and any gain or loss on derecognition ar e recognised in the Group income statement. The eective interest method is a method of c alculating the amortised cost of a financial liability and of allocating inter est expense over the relevant period. The eective interest r ate is the rate that exactly discounts estimated future c ash payments, including all fees that form an integral part of the eective inter est rate, transaction costs and other premiums or discounts, through the expected life of the financial liability . Derivatives used for hedging The Group uses derivative financial instruments to manage its exposur es to fluctuations in foreign exchange r ates, inter est rates and certain obligations relating to shar e incentive plans, including social security obligations. Instruments used include inter est rate swaps, cross-currency swaps, for eign exchange contracts and equity swaps. These are recognised as assets or liabilities as appr opriate and are classified as non-current, unless they mature within one year of the balance sheet date. Derivatives are initially r ecognised at their fair value on the date the contract is enter ed into, and ar e subsequently remeasured at their fair value. The method of recognising the r esulting gain or loss depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the hedge r elationship. The Group designates certain derivatives as either fair v alue hedges or cash flow hedges. F air value hedges are hedges of the fair value of a recognised asset or liability . Cash flow hedges are hedges of highly probable futur e foreign curr ency cash flows. The Group does not curr ently enter into net investment hedges. We document the r elationship between hedging instruments and hedged items, and our risk management objective and str ategy for undertaking hedge transactions, at the hedge inception. W e also document our assessment of whether the derivatives used in hedging meet the hedge eectiveness criteria set out in IFRS 9. This assessment is performed at every reporting date thr oughout the life of the hedge to confirm that the hedge continues to meet the hedge eectiveness criteria. Hedge accounting is discontinued when the hedging instrument expires, is sold, terminated or exercised, or no longer qualifies for hedge accounting. Amounts payable or receiv able in respect of inter est rate swaps, together with the interest dier entials reflected in for eign exchange contracts, are recognised in net finance costs over the period of the contr act. Changes in the fair value of derivatives that ar e designated and qualify as fair value hedging instruments are r ecognised in the Group income statement, together with an y changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The ineective portion of a fair value hedge is recognised in net finance costs in the Gr oup income statement. The eective portion of changes in the fair value of derivatives that ar e designated and qualify as cash flow hedging instruments is r ecognised in OCI, while an y ineective part is recognised in the Group income statement. Amounts r ecorded in OCI ar e recycled to the Gr oup income statement in the same period in which the underlying foreign curr ency exposure aects the Gr oup income statement. Non-hedging derivatives Changes in the fair value of derivative instruments used to manage exposures, that are not part of a documented hedge r elationship under IFRS 9, ar e recognised immediately in the Gr oup income statement. Cost and income amounts in respect of derivatives enter ed into in connection with social security obligations on employee share incentive plans, other than amounts of a financing nature, are char ged or credited within labour costs. Other costs and changes in the fair v alue of such derivatives are charged or cr edited within financing fair value remeasur ements in the Group income statement. (k) T rade and other payables (note 26) T rade payables and contr act liabilities are recognised initially at fair v alue. Where the time value of money is material, payables and contract liabilities are then c arried at amortised cost using the eective interest method. (l) Borrowings (note 27) Borrowings ar e recognised initially at fair value, net of any transaction costs incurred. Borrowings ar e subsequently stated at amortised cost, except where they ar e hedged by an eective fair value hedge, in which case the carrying v alue is adjusted to reflect the fair value movements associated with the hedged risk. Borrowings ar e classified as non-current to the extent that the Gr oup has an unconditional right to defer settlement of the liability for at least one year after the balance sheet date. 4. Signific ant acc ounting policies continued 167 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued (m) Leases (note 29) The Group undertakes an assessment of whether a contr act is or contains a lease at its inception. The assessment establishes whether the Group obtains substantially all the economic benefits from the use of an asset and whether we have the right to direct its use. Low-v alue lease payments are recognised as an expense, on a straight -line basis over the lease term. F or other leases we recognise both a right-of-use asset and a lease liability at the commencement date of a lease contract. The right-of-use asset is initially measur ed at cost, comprising the initial amount of the lease liability adjusted for payments made at or before the commencement date, plus initial dir ect costs and an estimate of the cost of any obligation to refurbish the asset or site, less lease incentives. Subsequently , right-of-use assets ar e measured at cost less accumulated depreciation and impairment losses and ar e adjusted for any remeasur ement of the lease liability . Depreciation is c alculated on a straight -line basis over the shorter of the lease period or the estimated useful life of the right-of-use asset, which is determined on a basis consistent with purchased assets (note 4(g)). The lease term comprises the non-cancellable period of a lease, plus periods covered by an extension option, if it is reasonably certain to be exercised, and periods covered by a termination option if it is r easonably certain not to be exercised. The lease liability is initially measured at the pr esent value of lease payments that are outstanding at the commencement date, discounted at the interest r ate implicit in the lease, or if that rate c annot be easily determined, the Gr oup’s incremental borr owing rate. Lease payments comprise payments of fixed principal, less an y lease incentives, v ariable elements linked to an index, guar anteed residuals or buy-out options that ar e reasonably certain to be exercised. They include payments in respect of optional r enewal periods where these ar e reasonably certain to be exer cised or early termination payments where the lease term reflects such an option. The lease liability is remeasur ed when there is a change in futur e lease payments arising from a change in an index or r ate, if ther e is a change in the Group’s estimate of the amount expected to be payable under a residual value guar antee, or if the Group changes its assessment of whether it will exercise a pur chase, extension or termination option. When a lease liability is remeasur ed, a corr esponding adjustment is made to the carrying amount of the right-of-use asset or is r ecognised in the Group income statement if the asset is fully depr eciated. The Group pr esents right-of-use assets within property , plant and equipment and lease obligations within the Group balance sheet. (n) Post-employment benefit assets and obligations (note 35) Defined benefit pension arrangements – funded plans The post-employment benefit assets and obligations r ecognised in the Group balance sheet in r espect of funded plans comprise the fair value of plan assets of funded plans less the present value of the r elated defined benefit obligation at that date. The defined benefit obligation is calculated annually by independent qualified actuaries, using the pr ojected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future c ash outflows, using mark et yields on high-quality corporate pound sterling bonds with maturity terms consistent with the estimated aver age term of the related pension liability . Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, ar e recognised immediately in the Group statement of compr ehensive income. The pension cost recognised in the Gr oup income statement comprises the cost of benefits accrued plus interest on the opening net defined benefit obligation or asset. Service costs and financing income and expenses are r ecognised separately in the Gr oup income statement. Plan expenses are deducted fr om the expected return on the plan assets over the year . Defined benefit pension arrangements – unfunded plans Unfunded pension obligations are determined and accounted for in accordance with the principles used in r espect of the funded arrangements. Defined contribution pension arrangements The assets of defined contribution plans are held separ ately in independently administered funds. The pension cost recognised in the Group income statement r epresents the contributions payable by the Group to these funds, in respect of the year . Post-retir ement healthcar e obligations Obligations in respect of post -retirement healthc are plans ar e calculated annually by independent qualified actuaries, using an actuarial methodology similar to that for the funded defined benefit pension arrangements. Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, ar e recognised in the Gr oup statement of comprehensive income. The cost recognised in the Gr oup income statement comprises only interest on the obligations. (o) Own shares (note 39) The Group has a number of equity -settled, shar e-based employee incentive plans. In connection with these, shares in the Company are held by The Experian plc Employee Shar e T rust and the Experian UK Approved All-Employee Shar e Plan. The assets of these entities mainly comprise Experian plc shares, which are shown as a deduction fr om equity at cost. Shares in the Company pur chased and held as treasury shares, in connection with the above plans and any share pur chase programme, are also shown as a deduction from equity at cost. The par value of shar es in the Company that are pur chased and cancelled, in connection with any share pur chase progr amme, is accounted for as a r eduction in called-up share c apital with any cost in excess of that amount being deducted from retained earnings. (p) Assets and liabilities classified as held-for-sale (note 42) Assets and liabilities are classified as held-for -sale when their carrying amounts are to be r ecovered or settled principally thr ough a sale transaction and a sale is consider ed highly probable. They are stated at the lower of the carrying amount and fair value less costs to sell. No depreciation or amortisation is char ged in respect of non-curr ent assets classified as held-for-sale. (q) Revenue r ecognition (note 8) Revenue is stated net of any sales taxes, rebates and discounts and reflects the amount of consider ation we expect to receive in exchange for the transfer of pr omised goods and services. T otal consideration fr om contracts with customer s is allocated to the performance obligations identified based on their standalone selling price, and is recognised when those performance obligations ar e satisfied and the control of goods or services is tr ansferred to the customer , either over time or at a point in time. 4. Signific ant acc ounting policies continued Experian plc Financial statements 168 a The provision and processing of tr ansactional data is distinguished between contracts that: – provide a service on a per unit basis; wher e the transfer to the customer of each completed unit is considered satisfaction of a single performance obligation. R evenue is recognised on the tr ansfer of each unit; – provide a service to the customer over the contr actual term, normally between one and five years, where r evenue is recognised on the transfer of this service to customer s. F or the majority of contracts this means r evenue is spread evenly over the contr act term, as customer s simultaneously receive and consume the benefits of the service; – requir e an enhanced service at the start, wher e revenue is recognised to r eflect the upfront benefit the customer r eceives and consumes. R evenue for such contracts is r ecognised proportionally in line with the costs of providing the service. a Revenue from referr al fees for credit products and white-label partnerships is recognised as tr ansactional revenue. a Revenue from transactional batch data arr angements that include an ongoing update service is apportioned across each delivery to the customer and is recognised when the delivery is complete, and control of the batch data passes to the customer . Performance obligations ar e determined based on the frequency of data r efresh: one-o, quarterly , monthly , or real -time. a Subscription and membership fees for continuous access to a service are r ecognised over the period to which they relate, usually 1, 12 or 24 months. Customer s simultaneously receive and consume the benefits of the service; therefor e, r evenue is recognised evenly over the subscription or membership term. a Revenue for one-o credit reports is r ecognised when the report is delivered to the consumer . a Software licence and implementation services are primarily accounted for as a single performance obligation, with r evenue recognised when the combined oering is delivered to the customer . Contract terms normally vary between one and five years. These services are distinguished between: – Experian-hosted solutions, wher e the customer has the right to access a software solution over a specified time period. Customers simultaneously receive and consume the benefits of the service and revenue is spr ead evenly over the period that the service is available; and – On-premise softwar e licence arrangements, where the software solution is installed in an environment contr olled by the customer . The arrangement r epresents a right to use licence and so the performance obligation is considered to be fulfilled on delivery completion, when contr ol of the configured solution is passed to the customer . Revenue is r ecognised at that point in time. a The delivery of support and maintenance agreements is generally considered to be a separ ate performance obligation to provide a technical support service including minor updates. Contract terms ar e often aligned with licence terms. Customer s simultaneously receive and consume the benefits of the service, ther efore r evenue is spread evenly over the term of the maintenance period. a The provision of distinct standalone consultancy and professional services is distinguished between: – Professional consultancy services wher e the performance obligation is the provision of personnel. Customers simultaneously receive and consume the benefits of the service, and r evenue is recognised over time, in line with hour s provided; and – The provision of analytic al models and analyses, wher e the performance obligation is a deliverable, or a series of deliverables, and revenue is r ecognised on delivery when control is passed to the customer . Sales are typic ally invoiced in the geographic ar ea in which the customer is located. As a result, the geographic loc ation of the invoicing undertaking is used to attribute revenue to individual countries. Accrued income balances, which r epresent the right to consider ation in exchange for goods or services that we have tr ansferred to a customer , are assessed as to whether they meet the definition of a contr act asset: a When the right to consideration is conditional on something other than the passage of time, a balance is classified as a contr act asset. This arises where ther e are further performance obligations to be satisfied as part of the contract with the customer and typic ally includes balances relating to softwar e licensing contracts. a When the right to consideration is conditional only on the passage of time, the balance does not meet the definition of a contr act asset and is classified as an unbilled receivable. This typically arises where the timing of the related billing cycle occur s in a period after the performance obligation is satisfied. Costs incurred prior to the satisfaction or partial satisfaction of a performance obligation are first assessed to see if they ar e within the scope of other standards. Wher e they are not, certain costs are r ecognised as an asset providing they r elate directly to a contr act (or an anticipated contract), generate or enhance resour ces that will be used in satisfying (or to continue to satisfy) performance obligations in the future and ar e expected to be recover ed from the customer . Costs which meet this criteria are deferr ed as contract costs and these ar e amortised on a systematic basis consistent with the pattern of tr ansfer of the related goods or services. a Costs to obtain a contract predominantly comprise sales commissions costs. a Costs to fulfil a contract predominantly comprise labour costs dir ectly relating to the implementation services pr ovided. Contract liabilities arise when we ha ve an obligation to transfer futur e goods or services to a customer for which we have received consideration, or the amount is due, from the customer , and include both deferred income balances and specific r eserves. (r) Operating char ges Operating char ges are reported by nature in the Gr oup income statement, reflecting the Gr oup’s cost-management control structur e. Details of the types of charges within labour costs in r espect of share incentive plans are set out in note 4(u). Those for post-employment benefits are set out in note 4(n). Details of the Group’s amortisation and depr eciation policy are given in notes 4(f), 4(g) and 4(m). The principles upon which impairment charges of tangible and intangible assets are r ecognised are set out in notes 4(d), 4(e) and 4(f). 4. Signific ant acc ounting policies continued 169 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued (s) Net finance costs (note 15) Incremental tr ansaction costs which are directly attributable to the issue of debt are c apitalised and amortised over the expected life of the borrowing, using the eective interest method. All other borrowing costs are char ged in the Group income statement in the year in which they ar e incurred. Amounts payable or receiv able in respect of inter est rate swaps ar e taken to net finance costs over the periods of the contracts, together with the interest dier entials reflected in for eign exchange contracts. Details of the nature of movements in the fair value of deriv atives which are r eported as financial fair value remeasur ements are included in note 4(j). The change in the y ear in the present value of put option agr eements, in respect of shar es held by non-controlling shar eholders, is r ecognised as a financing fair value remeasur ement within net finance costs. (t) T ax (note 16) The tax charge or cr edit for the year is recognised in the Gr oup income statement, except for tax on items r ecognised in OCI or directly in equity . Current tax is c alculated on the basis of the tax laws substantively enacted at the balance sheet date in the countries where the Gr oup operates. Current tax assets and liabilities ar e oset where ther e is a legally enforceable right of oset. Uncertain tax positions are consider ed on an individual basis. Where management considers it probable that an additional outflow will r esult from any given position, a provision is made. Such pr ovisions are measured using management’s best estimate of the most likely outcome. Further details ar e given in note 5. Deferred tax is pr ovided in full on temporary dier ences arising between the tax bases of assets and liabilities and their carrying amounts in the Group financial statements. Deferred tax is not r ecognised on taxable temporary dier ences arising on the initial recognition of goodwill. Deferred tax is not accounted for when it arises fr om the initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction aects neither accounting nor taxable profit or loss. Deferred tax assets and liabilities ar e calculated at the tax rates that ar e expected to apply when the asset is realised or the liability settled, based on the tax r ates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Group oper ates. Deferred tax assets ar e recognised in r espect of tax losses carried forward and other tempor ary dierences, to the extent that it is probable that the related tax benefit will be r ealised through futur e taxable profits. Deferred tax is pr ovided on temporary dier ences arising on investments in subsidiaries and associates, except wher e the Group contr ols the timing of the reversal of the tempor ary dierence and it is probable that the temporary dier ence will not reverse in the for eseeable future. Deferr ed tax assets and liabilities are oset wher e there is a legally enfor ceable right to oset current tax assets and liabilities and wher e they relate to the same tax authority . (u) Share incentive plans (note 33) The fair value of share incentives gr anted in connection with the Group’s equity-settled, share-based employee incentive plans is r ecognised as an expense on a straight -line basis over the vesting period. F air value is measured using whichever of the Black -Scholes model, Monte Carlo model or closing market price is most appropriate. The Group takes into account the best estimate of the number of awards and options expected to vest and revises such estimates at each balance sheet date. Non-market performance conditions are included in the vesting estimates. Mark et-based performance conditions are included in the fair value measurement but ar e not revised for actual performance. (v) Contingent consideration The initially recor ded cost of any acquisition includes a reasonable estimate of the fair value of any contingent amounts expected to be payable in the future. Any cost or benefit arising when such estimates are revised is r ecognised in the Group income statement (note 14). Where part or all of the amount of disposal consider ation is contingent on future events, the disposal proceeds initially r ecorded include a reasonable estimate of the value of the contingent amounts expected to be receivable and pay able in the future. The proceeds and pr ofit or loss on disposal are adjusted when r evised estimates are made, with corresponding adjustments made to r eceivables and payables as appropriate, until the ultimate outcome is known and the related consideration r eceived. (w) Discontinued operations (note 17) A discontinued operation is a component of the Gr oup’s business that repr esents a separate geogr aphic area of operation or a separ ate major line of business. Classific ation as a discontinued operation occurs upon disposal or earlier , if the oper ation meets the criteria to be classified as held-for-sale. Discontinued operations ar e presented in the Gr oup income statement as a separate line and ar e shown net of tax. When an operation is classified as a discontinued oper ation, comparatives in the Group income statement and the Gr oup statement of comprehensive income ar e re-pr esented as if the operation had been discontinued from the start of the compar ator year . (x) Earnings per share (EPS) (note 18) Earnings per share ar e reported in accor dance with IAS 33. (y) Segment information policy and presentation principles (note 9) We ar e organised into, and managed on a worldwide basis thr ough, the following five operating segments, which are based on geographic ar eas and supported by central functions: a North America a Latin America a UK and Ireland a Europe, Middle East and Africa (EMEA) and a Asia Pacific. The chief operating decision mak er assesses the performance of these operating segments on the basis of Benchmark EBIT , as defined in note 6. The ‘All other segments’ category r equired to be disclosed has been captioned as EMEA/Asia P acific in these financial statements. This combines information in respect of the EMEA and Asia P acific segments, as neither of these operating segments is individually r eportable, on the basis of their share of the Gr oup’s revenue, reported pr ofit or loss, and assets. We separ ately present information equivalent to segment disclosures in respect of the costs of our centr al functions, under the caption ‘Centr al Activities’ , as management believes that this information is helpful to users of the financial statements. Costs reported for Centr al Activities include costs arising from finance, treasury and other global functions. Inter-segment tr ansactions are enter ed into under the normal commercial terms and conditions that would be av ailable to third parties. Such transactions do not ha ve a material impact on the Group’s results. 4. Signific ant acc ounting policies continued Experian plc Financial statements 170 Segment assets consist primarily of property , plant and equipment, intangible assets including goodwill, deriv atives designated as hedges of future commer cial transactions, contract assets and receivables. They exclude tax assets, c ash and cash equivalents, and derivatives designated as hedges of borrowings. Segment liabilities comprise operating and contract liabilities, including derivatives designated as hedges of future commercial tr ansactions and lease obligations. They exclude tax liabilities, borrowings, other than lease obligations, and r elated hedging derivatives. Net assets reported for Centr al Activities comprise corporate head oce assets and liabilities, including certain post -employment benefit assets and obligations, and deriv ative assets and liabilities. Capital expenditur e comprises additions to property , plant and equipment and intangible assets, other than additions thr ough business combinations or to right-of-use assets. Information requir ed to be presented also includes analysis of the Gr oup’s revenues by gr oups of service lines. This is supplemented by voluntary disclosure of the pr ofitability of those groups of service lines. For ease of refer ence, we use the term ‘business segments’ when discussing the results of gr oups of service lines. Our two business segments, details of which are given in the Str ategic report section of this Annual Report, ar e: a Business-to-Business a Consumer Services. The North America, Latin America and the UK and Ireland oper ating segments derive revenues fr om both of the Group’s business segments. The EMEA and Asia Pacific segments curr ently do not derive revenue from the Consumer Services business segment. Reportable segment information for the full year pr ovided to the chief operating decision mak er is set out in note 9(a). 5. Critic al acc ounting estimates, assumptions and judgments (a) Critical accounting estimates and assumptions In preparing these financial statements, management is requir ed to make estimates and assumptions that aect the reported amount of r evenues, expenses, assets, liabilities and the disclosure of contingent liabilities. The resulting accounting estimates, which are based on management’s best judgment at the date of these financial statements, will seldom equal the subsequent actual amounts. The estimates and assumptions that have a significant risk of causing a material adjustment to the c arrying amounts of assets and liabilities within the next financial year are summarised below . Revenue r ecognition is excluded from this summary on the grounds that the policy adopted in this ar ea is suciently objective. T ax (notes 16, 36 and 45(a)) The Group is subject to tax in numer ous jurisdictions. The Gr oup has a number of open tax returns with various tax authorities with whom it is in active dialogue. Liabilities r elating to these open and judgmental matters are based on an assessment as to whether additional taxes will be due, after taking into account external advice where appr opriate. Signific ant judgment is requir ed in determining the related assets or pr ovisions, as there ar e transactions in the or dinary course of business and calculations for which the ultimate tax determination is uncertain. The Group recognises liabilities based on estimates of whether additional tax will be due. Where the final tax outcome of these matters is dier ent from the amounts that were initially r ecognised, the dier ences will aect the results for the year and the r espective income tax and deferred tax assets or provisions in the year in which such determination is made. The Group recognises deferr ed tax assets based on forecasts of futur e profits against which those assets may be utilised. Goodwill (note 20) The Group tests goodwill for impairment annually , or more fr equently if there is an indic ation that it may be impaired. The recover able amount of each group of CGUs is gener ally determined on the basis of value-in-use calculations, which requir e the use of cash flow projections based on financial budgets, looking forwar d up to five years. Management determines budgeted profit mar gin based on past performance and its expectations for the market’s development. Cash flows are extr apolated using estimated growth r ates beyond a five-year period. The growth r ates used do not exceed the long-term aver age growth r ate for the CGU’s markets. The discount rates used r eflect the Group’s pre-tax weighted aver age cost of capital (W ACC), as adjusted for r egion specific risks and other factors. (b) Critical judgments In applying the Group’s accounting policies, management has made judgments that have a significant eect on the amounts r ecognised in the Group financial statements and the r eported amounts of assets, liabilities, income and expenses. Actual r esults may dier from these estimates. Estimates and underlying assumptions are r eviewed on an ongoing basis. Revisions to estimates are r ecognised prospectively . The most significant of these judgments ar e in respect of intangible assets and contingencies: Intangible assets Certain costs incurred in the developmental phase of an internal pr oject, which include the development of databases, internal use softwar e and internally generated softwar e, ar e capitalised as intangible assets if a number of criteria are met. Management has made judgments and assumptions when assessing whether a project meets these criteria, and on measuring the costs and the economic life attributed to such projects. On acquisition, specific intangible assets ar e identified and recognised separately fr om goodwill and then amortised over their estimated useful lives. These include items such as brand names and customer lists, to which value is first attributed at the time of acquisition. The capitalisation of these assets and the related amortisation char ges are based on judgments about the value and economic life of such items. The economic lives of intangible assets are estimated at between thr ee and ten years for internal pr ojects and between two and 20 years for acquisition intangibles. Amortisation methods, useful lives and residual values are r eviewed at each reporting date and adjusted if appropriate. Further details of the amounts of , and movements in, such assets are given in note 21. Contingencies In the case of pending and thr eatened litigation claims, management has formed a judgment as to the likelihood of ultimate liability . No liability has been recognised wher e the likelihood of any loss arising is possible r ather than probable. 4. Signific ant acc ounting policies continued 171 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 6. Use of non-G AAP measures in the Group financial statements As detailed below , the Group has identified and defined certain measur es that it uses to understand and manage its performance. The measures are not defined under IFRS and they may not be dir ectly comparable with other companies’ adjusted performance measures. These non-GAAP measures ar e not intended to be a substitute for any IFRS measures of performance but management has included them as they consider them to be key measures used within the business for assessing the underlying performance of the Group’s ongoing businesses. F ollowing the implementation of IFRS 16, we have r eviewed emerging practice and ha ve updated our definitions of Net debt and Net funding to include lease obligations, to mor e fully align our treatment with the requir ements of investors and finance provider s. The definition of c apital employed has also been updated accordingly . (a) Benchmark profit before tax (Benchmark PBT) (note 9(a)(i)) Benchmark PBT is disclosed to indicate the Gr oup’s underlying profitability . It is defined as profit befor e amortisation and impairment of acquisition intangibles, impairment of goodwill, acquisition expenses, adjustments to contingent consideration, Exceptional items, financing fair value remeasur ements, tax (and interest ther eon) and discontinued operations. It includes the Group’s share of continuing associates’ Benchmark post-tax r esults. An explanation of the basis on which we report Exceptional items is provided below . Other adjustments made to derive Benchmark PBT are explained as follows: a Charges for the amortisation and impairment of acquisition intangibles are excluded fr om the calculation of Benchmark PBT bec ause these charges ar e based on judgments about their value and economic life and bear no relation to the Gr oup’s underlying ongoing performance. Impairment of goodwill is similarly excluded from the c alculation of Benchmark PBT . a Acquisition and disposal expenses (representing the incidental costs of acquisitions and disposals, one-time integr ation costs and other corporate tr ansaction expenses) relating to successful, active or aborted acquisitions and disposals are excluded fr om the definition of Benchmark PBT as they bear no relation to the Gr oup’s underlying ongoing performance or to the performance of any acquired businesses. Adjustments to contingent consider ation are similarly excluded from the definition of Benchmark PBT . a Charges and credits for financing fair value r emeasurements within finance expense in the Group income statement ar e excluded from the definition of Benchmark PBT . These include r etranslation of intr a-Group funding, and that element of the Gr oup’s derivatives that is ineligible for hedge accounting, together with gains and losses on put options in respect of acquisitions. Amounts recognised gener ally arise from market movements and accordingly bear no dir ect relation to the Group’s underlying performance. (b) Benchmark earnings before interest and tax (Benchmark EBIT) and margin (Benchmark EBIT mar gin) (note 9(a)(i)) Benchmark EBIT is defined as Benchmark PBT befor e the net interest expense charged ther ein and accordingly excludes Exceptional items as defined below . Benchmark EBIT mar gin is Benchmark EBIT from ongoing activities expressed as a per centage of revenue fr om ongoing activities. (c) Benchmark earnings before interest, tax, depr eciation and amortisation (Benchmark EBITDA) Benchmark EBITDA is defined as Benchmark EBIT befor e the depreciation and amortisation charged ther ein (note 12). (d) Exited business activities Exited business activities are businesses sold, closed or identified for closure during a financial year . These ar e treated as exited business activities for both revenue and Benchmark EBIT purposes. The results of exited business activities are disclosed separ ately with the results of the prior period re-pr esented in the segmental analyses as appropriate. This measure diers fr om the definition of discontinued operations in IFRS 5. (e) Ongoing activities The results of businesses tr ading at 31 March 2022, which ar e not disclosed as exited business activities, ar e reported as ongoing activities. (f) Constant exchange r ates T o highlight our organic performance, we discuss our results in terms of growth at constant exchange r ates, unless otherwise stated. This repr esents growth calculated after tr anslating both years’ performance at the prior year’s average exchange r ates. (g) T otal growth (note 9(a)(ii)) This is the year-on- year change in the performance of our activities at actual exchange rates. T otal growth at constant exchange rates r emoves the translational for eign exchange eects arising on the consolidation of our activities and comprises one of our measures of performance at constant exchange rates. (h) Organic revenue gr owth (note 9(a)(ii)) This is the year-on- year change in the revenue of ongoing activities, translated at constant exchange r ates, excluding acquisitions until the first anniversary of their consolidation. (i) Benchmark earnings and T otal Benchmark earnings (note 18) Benchmark earnings comprises Benchmark PBT less attributable tax and non-controlling inter ests. The attributable tax for this purpose excludes significant tax cr edits and charges arising in the year which, in view of their size or nature, are not compar able with previous years, together with tax arising on Exceptional items and on other adjustments made to derive Benchmark PBT . Benchmark PBT less attributable tax is designated as T otal Benchmark earnings. ( j) Benchmark earnings per share (Benchmark EPS) (note 18) Benchmark EPS comprises Benchmark earnings divided by the weighted aver age number of issued ordinary shares, as adjusted for own shares held. (k) Benchmark PBT per share Benchmark PBT per share comprises Benchmark PBT divided by the weighted aver age number of issued ordinary shares, as adjusted for own shares held. (l) Benchmark tax charge and r ate (note 16(b)(ii)) The Benchmark tax charge is the tax char ge applicable to Benchmark PBT . It diers fr om the tax charge by tax attributable to Exceptional items and other adjustments made to derive Benchmark PBT , and exceptional tax charges. A reconciliation is pr ovided in note 16(b)(ii) to these financial statements. The Benchmark eective rate of tax is calculated by dividing the Benchmark tax charge by Benchmark PBT . Experian plc Financial statements 172 (m) Exceptional items (note 14(a)) The separate r eporting of Exceptional items gives an indication of the Group’s underlying performance. Exceptional items include those arising from the pr ofit or loss on disposal of businesses, closur e costs of major business units, costs of signific ant restructuring pr ogrammes and other financially significant one-o items. All other restructuring costs ar e charged against Benchmark EBIT , in the segments in which they are incurred. (n) Full -year dividend per share (note 19) Full -year dividend per shar e comprises the total of dividends per share announced in respect of the financial year . (o) Benchmark operating and Benchmark fr ee cash flow Benchmark operating c ash flow is Benchmark EBIT plus amortisation, depreciation and char ges in respect of shar e-based incentive plans, less capital expenditur e net of disposal proceeds and adjusted for changes in working capital, principal lease payments and the Group’s shar e of the Benchmark profit or loss r etained in continuing associates. Benchmark free c ash flow is derived from Benchmark oper ating cash flow by excluding net interest, tax paid in respect of continuing oper ations and dividends paid to non-controlling inter ests. (p) Cash flow conversion Cash flow conversion is Benchmark oper ating cash flow expressed as a percentage of Benchmark EBIT . (q) Net debt and Net funding (note 28) Net debt is borrowings (and the fair value of deriv atives hedging borrowings) excluding accrued inter est, less c ash and cash equivalents and other highly liquid bank deposits with original maturities greater than three months. Net funding is borrowings (and the fair value of the eective portion of derivatives hedging borrowings) excluding accrued inter est, less cash held in Gr oup T reasury . (r) Return on c apital employed (ROCE) (note 9(a)(iii)) ROCE is defined as Benchmark EBIT less tax at the Benchmark r ate divided by a three-point aver age of capital employed, in continuing operations, over the year . Capital employed is net assets less non-controlling inter ests and right-of-use assets, further adjusted to add or deduct the net tax liability or asset and to add Net debt. 7. Financial risk management (a) Financial risk factors The Group’s activities expose it to a variety of financial risk s. These are market risk, including foreign exchange risk and interest r ate risk, credit risk, and liquidity risk. These risks are unchanged fr om those reported in the 2021 Annual Report. The numeric disclosures in r espect of financial risks ar e included within later notes to the financial statements, to pr ovide a more tr ansparent link between financial risks and results. Financial risks r epresent part of the Group’s risk s in relation to its str ategy and business objectives. There is a full discussion of the most significant risks in the Risk management section of this Annual Report. The Group’s financial risk management focuses on the unpredictability of financial markets and seeks to minimise potentially adverse eects on the Gr oup’s financial performance. The Group seeks to r educe its exposure to financial risks and uses derivative financial instruments to hedge certain risk exposures. Such derivative financial instruments are also used to manage the Group’s borr owings so that amounts are held in curr encies broadly in the same proportion as the Gr oup’s main earnings. However , the Group does not, nor does it curr ently intend to, borr ow in the Brazilian real or the Colombian peso. The Group also ensur es surplus funds are prudently managed and controlled. F oreign exchange risk The Group is exposed to for eign exchange risk from futur e commercial transactions, recognised assets and liabilities and investments in, and loans between, Gr oup undertakings with dierent functional curr encies. The Group manages such risk, primarily within undertakings whose functional currencies ar e the US dollar , by: a entering into forward foreign exchange contr acts in the relevant currencies in r espect of investments in entities with functional currencies other than the US dollar , whose net assets are exposed to foreign exchange tr anslation risk; a swapping the proceeds of certain bonds issued in pounds sterling and euros into US dollars; a managing the liquidity of Group undertakings in the functional currency of those undertakings by using an in-house banking structure and hedging any remaining for eign currency exposures with forward foreign exchange contr acts; a denominating internal loans in relevant currencies, to match the currencies of assets and liabilities in entities with dier ent functional currencies; and a using forward foreign exchange contr acts to hedge certain future commercial tr ansactions. The principal transaction exposur es are to the pound sterling and the euro. An indication of the sensitivity to for eign exchange risk is given in note 10. Interest rate risk The Group’s inter est rate risk arises principally fr om components of its Net debt that are at variable r ates. The Group has a policy of normally maintaining between 50% and 100% of Net funding at rates that ar e fixed for more than six months. The Group manages its interest r ate exposure by: a using fixed and floating rate borrowings, interest r ate swaps and cross-curr ency interest r ate swaps to adjust the balance between the two; and a mixing the duration of borrowings and inter est rate swaps to smooth the impact of interest r ate fluctuations. Managing interest rate benchmark r eform and associated risks A fundamental reform of inter est rate benchmark s is taking place globally , involving the replacement of man y London interbank oered r ates (LIBOR). Historic ally our main floating rate borr owings and derivatives have been indexed to pound sterling and US dollar LIBOR. During FY22, we have amended our revolving cr edit facilities and other financial instruments, so that once these r eforms are completed, sterling pound exposures will be indexed to Sterling Overnight Index A verage (SONIA) rate, and US dollar exposures to the Secured Overnight Financing Rate (SOFR). The T ax and T reasury Committee monitors and manages the Gr oup’s transition to alternative r ates. The Committee evaluates the extent to which contracts r eference IBOR c ash flows and whether such contracts will need to be amended as a result of IBOR r eform. 6. Use of non-G AAP measures in the Group financial statements continued 173 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued Derivatives The Group has tr ansacted cross-curr ency swaps, inter est rate swaps and equity swaps for risk management purposes. As at 31 Marc h 2021, these swaps had floating legs that were indexed to either sterling LIBOR or US dollar LIBOR. During the year ended 31 March 2022 the G r oup modified derivatives indexed to sterling LIBOR to refer ence SONIA . In r espect of US dollar LIBOR exposures, the Group has signed up to t he ISD A protocol that introduces fallback clauses into all such instruments. These clauses automatically switch the instrument fr om refer encing US do llar LIBOR to SOFR as and when US dollar LIBOR ceases. The Group expects the impact of the reform to be immaterial on these instruments. Hedge accounting The Group’s hedging instruments documented in hedge accounting r elationships at 31 March 2022 ar e indexed to US dollar LIBOR. As alr eady noted, these instruments have fallback clauses which automatically switch the instruments fr om refer encing US dollar LIBOR to SOFR as and when US dollar LIBOR ceases. As ther e is still uncertainty about when these instruments will switch to SOFR, the Gr oup is applying the Phase 1 amendments to IFRS 9 to its hedge accounting relationships. The Group expects the impact of the r eform to be immaterial on these instruments. T otal amounts of unreformed contr acts, including those with an appr opriate fallback clause The Group monitors the pr ogress of transition fr om IBORs to new benchmark interest r ates by reviewing the value of contr acts th at have yet to transition to an alternative benchmark interest r ate and the value of contracts that include an appropriate fallback clause. The Group considers that a contr act is not yet tr ansitioned to an alternative benchmark rate when inter est under the contract is indexed to a benchmark r ate that is s till subject to IBOR reform, even if it includes a fallback clause that deals with the cessation of the existing IBOR (referr ed to as an ‘unreformed contr ac t’). The following table shows the value of unreformed contr acts and those with appropriate fallback clauses. Deriv atives are shown at their notional amounts. 2022 2021 Sterling LIBOR US dollar LIBOR Sterling LIBOR US dollar LIBOR Value of unreformed contracts US$m Amount with appropriate fallback clause US$m Value of unreformed contracts US$m Amount with appropriate fallback clause US$m Value of unreformed contracts US$m Amount with appropriate fallback clause US$m Value of unreformed contracts US$m Amount with appropriate fallback clause US$m Derivatives Cross-currency swaps — — 1,413 1,413 — — 1,413 — Interest rate swaps — — 1,700 1,700 964 — 1,800 — Equity swaps —— —— 22 — — — Further information in r espect of the Group’s net finance costs for the year and an indic ation of the sensitivity to interest r ate risk is given in note 15. Credit risk In the case of derivative financial instruments, deposits, contract assets and tr ade receivables, the Gr oup is exposed to credit risk from the non- performance of contractual agr eements by the contracted party . Credit risk is managed by: a only entering into contracts for derivative financial instruments and deposits with banks and financial institutions with str ong credit r atings, within limits set for each organisation; and a closely controlling dealing activity and regularly monitoring counterparty positions. The credit risk on derivative financial instruments utilised and deposits held by the Gr oup is therefore not considered to be si gnific ant. The Group does not anticipate that any losses will arise from non-performance by its chosen counterparties. Further information on the Group’s derivative financial instruments at the balance sheet dates is given in note 30 and that in respect of amounts r ecognised in the Group income statem ent is given in note 15. Further information on the Gr oup’s cash and cash equiv alents at the balance sheet dates is given in note 25. T o minimise credit risk for tr ade receivables, the Group has implemented policies that requir e appropriate cr edit checks on pot ential clients before granting cr edit. The maximum credit risk in r espect of such financial assets is their carrying value. Further information in respect of the Gr oup’s trade receivables is given in note 24. Debt investments All of the Group’s debt investments at amortised cost and FV OCI are considered to ha ve low credit risk; the loss allowance is t her efore limited to 12 months’ expected losses. Management consider s ‘low credit risk’ for listed bonds to be an investment -grade cr edit rating with a t least one major r ating agency . Other instruments are consider ed to be low credit risk when they have a low risk of default and the issuer has a high c apacity to meet its contractual c ash flow obligations in the near term. Financial assets at FVPL The Group is also exposed to cr edit risk in relation to debt investments that ar e measured at FVPL. The maximum exposure at the balance sheet date is the carrying amount of these investments. 7. Financial risk management c ontinued Experian plc Financial statements 174 7. Financial risk management c ontinued Liquidity risk The Group manages liquidity risk by: a issuing long-maturity bonds and notes; a entering into long-term committed bank borrowing facilities, to ensur e the Group has sucient funds available for oper ations an d planned growth; a spreading the maturity dates of its debt; and a monitoring rolling cash flow forec asts, to ensur e the Group has adequate, unutilised committed bank borrowing facilities. Details of such facilities are given in note 27. A maturity analysis of contr actual undiscounted future cash flow s for financial liabilities is provided in note32. (b) Capital risk management The Group’s definition and management of c apital focuses on capital employed: a The Group’s capital employed is r eported in the net assets summary table set out in the Financial review and analysed by segment in note 9(a)(iii). a As part of its internal reporting processes, the Group monitors c apital employed by operating segment. The Group’s objectives in managing c apital are to: a safeguard its ability to continue as a going concern, in or der to provide r eturns for shareholders and benefits for other stakeh olders; and a maintain an optimal capital structure and cost of capital. The Group’s policy is to have: a a prudent but ecient balance sheet; and a a target leverage r atio of 2.0 to 2.5 times Benchmark EBITDA, consistent with the intention to r etain strong investment-gr ade credit r atings. T o maintain or adjust its capital structure, the Group may: a adjust the amount of dividends paid to shareholders; a return capital to shareholder s; a issue or purchase our own shares; or a sell assets to reduce Net debt. Dividend policy The Group has a pr ogressive dividend policy which aims to incr ease the dividend over time broadly in line with the underlying g r owth in Benchmark EPS. This aligns shareholder r eturns with the underlying profitability of the Gr oup. In determining the level of dividend in any one year , in accordance with the policy , the Board also consider s a number of other factors, including the outlook for the Gr oup, the opportunities for organic investment, the opportunities to make acquisitions and disposals, the cash flow generated by the Gr oup, and the level of dividend cover . F urther detail on the distributable reserves of the Company can be found in note L to the Company financial statements. 175 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 8. R evenue (a) Disaggregation of rev enue from contracts with customer s Year ended 31 March 2022 North America US$m Latin America US$m UK and Ireland US$m EMEA/ Asia Pacific US$m Total operating segments US$m Revenue from external customers Data 2,033 528 409 343 3,313 Decisioning 784 149 244 164 1,341 Business-to-Business 2,817 677 653 507 4,654 Consumer Services 1,305 114 194 — 1,613 Total ongoing activities 4,122 791 847 507 6,267 Year ended 31 March 2021 1 North America US$m Latin America US$m UK and Ireland US$m EMEA/ Asia Pacific US$m Total operating segments US$m Revenue from external customers Data 1,761 457 361 284 2,863 Decisioning 694 92 220 166 1,172 Business-to-Business 2,455 549 581 450 4,035 Consumer Services 1,075 76 156 — 1,307 Total ongoing activities 3,530 625 737 450 5,342 1 Revenue for the year ended 31 March 2021 has been re-pr esented for the reclassification to exited business activities of certa in B2B businesses. T otal revenue comprises r evenue from ongoing activities as well as r evenue from exited business activities and is reconciled in note 9. Revenue in respect of exited business activities of US$21m (2021: US$30m) comprised UK and Ir eland Data revenue of US$nil (2021: US$12m), EMEA/Asia Pacific Data revenue of US$8m (2021: US$3m) and EMEA/Asia P acific Decisioning revenue of US$13m (2021: US$15m). Data is predominantly tr ansactional revenue with a portion fr om licence fees. Decisioning revenue is derived fr om: a software and system sales, and includes r ecurring licence fees, consultancy and implementation fees, and tr ansactional charges; a credit score fees which are primarily tr ansactional; and a analytics income comprising a mix of consultancy and professional fees as well as transactional r evenue. Consumer Services revenue primarily comprises monthly subscription and one-o fees, and referr al fees for credit products and w hite-label partnerships. The timing of recognition of these r evenue streams is discussed in note 4(q). (b) Significant changes in contr act balances Contract assets pr edominantly relate to softwar e licence services, wher e revenue r ecognition for on-premise arr angements occurs as the solution is transferr ed to the customer , wher eas the invoicing pattern is often annually over the contract period. Contract assets recognis ed during the y ear totalled US$70m (2021: US$62m). The contract asset balance for work completed but not invoiced on satisfaction of a performance obligati on un winds over the contract term. Contract assets are tr ansferred to r eceivables when the right to consider ation becomes unconditional, or conditi onal only on the passage of time. Contr act assets reclassified to receivables during the year totalled US$77m (2021: US$79m). An impairment charge of US$5m (2021: US$4m) has been recognised against contr act assets during the year . The decrease in contr act assets resulting from the disposal during the year was US$5m (2021: US$nil). The majority of software licences ar e invoiced annually in advance. Wher e these licences relate to Experian-hosted solutions, r evenue is r ecognised over the period that the service is available to the customer , creating a contr act liability . Delivery services ar e generally invoiced during the delivery period, creating a contr act liability for the consideration r eceived in advance, until the delivery is complete. Where the delivery rel ates to Experian-hosted solutions, r evenue is recognised over the period that the service is av ailable to the customer , r educing the contract liability over time. Wher e the delivery relates to an on-pr emise solution, the contr act liability is released on delivery completion. Support and maintenance agr eement s are often invoiced annually in advance, creating a contr act liability , which is released over the term of the maintenance period as r evenue is rec ognised. Revenue recognised in the y ear of US$370m (2021: US$352m) was included in the opening contract liability . Cash r eceived in adva nce not recognised asrevenue in the year was US$461m (2021: US$380m). The decrease in contract liabilities r esulting from the disposal during the year was US$4m (2021: US$nil). The increase in contr act liabilities from acquisitions during the year was US$1m (2021: US$8m). F oreign exchange accounts for US$3m and US$5m of the decrease in contr act asset and contract liability balances in the year res pectively (2021: increase of US$8m and US$21m). Experian plc Financial statements 176 (c) Contract costs The carrying amount of assets r ecognised from costs to obtain, and costs to fulfil, contr acts with customers at 31 March 2022 is US$22m and US$66m respectively (2021: US$25m and US$74m). Amortisation of contract costs in the y ear is US$59m (2021: US$66m) and recognised impairment losses totalled US$nil (2021: US$2m). The decrease in contract costs r esulting from acquisitions and the disposal during the year was US$2m (2021: US$nil). Contract costs ar e amortised on a systematic basis consistent with the pattern of transfer of the related goods or services. A portfolio approach has been applied to calculate contr act costs for contracts with similar char acteristics, where the Gr oup reasonably expects that the ee cts of applying a portfolio approach does not dier materially fr om calculating the amounts at an individual contr act level. (d) T ransaction price alloc ated to remaining performance obligations The aggregate amount of the tr ansaction price from non-cancellable contracts with customer s with expected durations of 12 month s or mor e, alloc ated to the performance obligations that are unsatisfied, or partially satisfied, at 31 Mar ch 2022 is US$5.3bn (2021: US$5.0bn). We ex pect to recognise approximately 45% (2021: 42%) of this v alue within one year , 30% (2021: 28%) within one to two y ears, 15% (2021: 17%) within two to thr ee years and 10% (2021: 13%) thereafter . The aggregate amount of the tr ansaction price allocated to unsatisfied, or partially satisfied, performance obligations which ar e tr ansactional in nature includes estimates of variable consider ation. These estimates ar e based on forecast transactional volumes and do not tak e into account all external market factors which may have an impact on the futur e revenue r ecognised from such contr acts. A portfolio approach has been applied to c alculate the aggregate amount of the tr ansaction price allocated to the unsatisfied, o r partially satisfied, performance obligations for contracts with similar char acteristics, where the Gr oup reasonably expects that the eects of apply ing a portfolio appr oach does not dier materially from c alculating the amounts at an individual contract level. We apply the pr actical expedient in paragr aph 121(a) of IFRS 15 and do not disclose information about remaining performance obl igations that ha ve original expected durations of one y ear or less. This excludes contr acts across a number of business units which have revenue d ue to be r ecognised in the financial year ending 31 March 2023; it also excludes the majority of our dir ect-to-consumer arrangements. 9. Segment information (a) IFRS 8 disclosures (i) Income statement Year ended 31 March 2022 North America US$m Latin America US$m UK and Ireland US$m EMEA/ Asia Pacific US$m Total operating segments US$m Central Activities¹ US$m Total continuing operations US$m Revenue from external customers Ongoing activities 4,122 791 847 507 6,267 — 6,267 Exited business activities — — — 21 21 — 2 1 Total 4,122 791 847 528 6,288 — 6,288 Reconciliation from Benchmark EBIT to profit/(loss) before tax Benchmark EBIT Ongoing activities before transfer pricing and other adjustments 1,418 221 179 (23) 1,795 (155) 1,640 Transfer pricing and other allocation adjustments (37) 2 9 23 (3) 3 — Ongoing activities 1,381 223 188 — 1,792 (152) 1,640 Exited business activities — — (4 ) 9 5 — 5 Total 1,381 223 184 9 1,797 (152) 1,645 Net interest expense included in Benchmark PBT (note 15(b)) (4) (1) (1) (2) (8) (102) (110) Benchmark PBT 1,377 222 183 7 1,789 (254) 1,535 Exceptional items (note 14(a)) 6 — — (80) (74) 95 21 Amortisation of acquisition intangibles (note 21) (110) (23) (7) (34) (174) — (174) Acquisition and disposal expenses (21) (7) (1) (18) (47) — (47) Adjustment to the fair value of contingent consideration (8) (20) 4 (2) (26) — (26) Non-benchmark share of post-tax loss of associates — — (26) — (26) (5) (31) Interest on uncertain tax provisions — — — — — 1 1 Financing fair value remeasurements (note 15(c)) — — — — — 1 68 16 8 Profit/(loss) before tax 1,244 172 153 (127) 1,442 5 1,447 1 The decrease in Central Activities Benchmark EBIT in the year ended 31 Mar ch 2022 is primarily attributable to increased empl oyee shar e incentive plan and bonus costs. 8. R evenue c ontinued 177 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued Year ended 31 March 2021 2 North America US$m Latin America US$m UK and Ireland US$m EMEA/ Asia Pacific US$m Total operating segments US$m Central Activities US$m Total continuing operations US$m Revenue from external customers Ongoing activities 3,530 625 737 450 5,342 — 5,342 Exited business activities — — 12 18 30 — 30 Total 3,530 625 749 468 5,372 — 5,372 Reconciliation from Benchmark EBIT to profit/(loss) before tax Benchmark EBIT Ongoing activities 1,201 172 123 (27) 1,469 (90) 1,379 Exited business activities — — (2) 9 7 — 7 Total 1,201 172 121 (18) 1,476 (90) 1,386 Net interest expense included in Benchmark PBT (note 15(b)) (5) (2) (1) (2) (10) (111) (121) Benchmark PBT 1,196 170 120 (20) 1,466 (201) 1,265 Exceptional items (note 14(a)) 112 (1) (63) (13) 35 — 35 Impairment of goodwill (note 20) — — — (53) (53) — (53) Amortisation of acquisition intangibles (note 21) (90) (14) (7) (27) (138) — (138) Acquisition and disposal expenses (16) (4) (1) (20) (41) — (41) Adjustment to the fair value of contingent consideration — — — (1) (1) — (1) Non-benchmark share of post-tax (loss)/profit of associates — — (3) — (3) 19 16 Interest on uncertain tax provisions — — — — — (11) (11) Financing fair value remeasurements (note 15(c)) — — — — — 5 5 Profit/(loss) before tax 1,202 151 46 (134) 1,265 (188) 1,077 1 The decrease in Central Activities Benchmark EBIT in the year ended 31 Mar ch 2022 is primarily attributable to increased empl oyee shar e incentive plan and bonus costs. 2 Revenue and Benchmark EBIT for the year ended 31 March 2021 have been r e-presented for the reclassification to exited business activities of certain B2B businesses. Additional information by operating segment, including that on total and organic growth at constant exchange r ates, is pr ovided in the Str ategic report. (ii) Reconciliation of revenue fr om ongoing activities North America US$m Latin America US$m UK and Ireland US$m EMEA/ Asia Pacific US$m Total ongoing activities US$m Revenue for the year ended 31 March 2021 1 3,530 625 737 450 5,342 Adjustment to constant exchange rates 1 (1) (9) (5) (14) Revenue at constant exchange rates for the year ended 31 March 2021 3,531 624 728 445 5,328 Organic revenue growth 464 105 77 13 659 Revenue from acquisitions 127 54 1 46 228 Revenue at constant exchange rates for the year ended 31 March 2022 4,122 783 806 504 6,215 Adjustment to actual exchange rates — 8 41 3 52 Revenue for the year ended 31 March 2022 4,122 791 847 507 6,267 Organic revenue growth at constant exchange rates 13% 17% 11% 3% 12% Revenue growth at constant exchange rates 17% 25% 11% 13% 17% 1 Revenue for the year ended 31 March 2021 has been re-pr esented for the reclassification to exited business activities of certa in B2B businesses. The table above demonstrates the applic ation of the methodology set out in note 6 in determining organic and total r evenue grow th at constant exchange rates. Revenue at constant exchange rates is reported for both y ears using the aver age exchange rates applicable for the y ear e nded 31 March 2021. 9. Segment information c ontinued (i) Income statement continued Experian plc Financial statements 178 (iii) Balance sheet Net assets/(liabilities) At 31 March 2022 North America US$m Latin America US$m UK and Ireland US$m EMEA/ Asia Pacific US$m Total operating segments US$m Central Activities and other US$m Total Group US$m Goodwill 3,546 760 694 737 5,737 — 5,737 Investments in associates 4 — — — 4 — 4 Right-of-use assets 83 14 24 27 148 5 153 Assets classified as held-for-sale — — 29 — 29 12 41 Other assets 2,191 674 528 619 4,012 947 4,959 Total assets 5,824 1,448 1,275 1,383 9,930 964 10,894 Lease obligations (105) (17) (25) (30) (177) (3) (180) Other liabilities (1,129) (327) (300) (364) (2,120) (4,587) (6,707) Total liabilities (1,234) (344) (325) (394) (2,297) (4,590) (6,887) Net assets/(liabilities) 4,590 1,104 950 989 7,633 (3,626) 4,007 At 31 March 2021 North America US$m Latin America US$m UK and Ireland US$m EMEA/ Asia Pacific US$m Total operating segments US$m Central Activities and other US$m Total Group US$m Goodwill 3,133 611 718 799 5,261 — 5,261 Investments in associates 4 — 61 9 74 54 128 Right-of-use assets 89 12 32 34 167 5 172 Other assets 1,880 483 471 681 3,515 995 4,510 Total assets 5,106 1,106 1,282 1,523 9,017 1,054 10,071 Lease obligations (113) (14) (34) (37) (198) (4) (202) Other liabilities (881) (196) (311) (457) (1,845) (4,905) (6,750) Total liabilities (994) (210) (345) (494) (2,043) (4,909) (6,952) Net assets/(liabilities) 4,112 896 937 1,029 6,974 (3,855) 3,119 Central Activities and other comprises: 2022 2021 Assets US$m Liabilities US$m Net assets/ (liabilities) US$m Assets US$m Liabilities US$m Net assets/ (liabilities) US$m Central Activities 682 (155) 527 583 (245) 338 Investments in associates — — — 54 — 54 Net debt 1 199 (3,973) (3,774) 297 (4,127) (3,830) Tax 83 (462) (379) 120 (537) (417) 964 (4,590) (3,626) 1,054 (4,909) (3,855) 1 T otal Net debt comprises Net debt included within Central Activities plus lease obligations, net of inter est, included in oper ating segments of US$176m (2021: US$196m). W e have updated our definition of Net debt to include lease obligations and Net debt for the year ended 31 March 2021 is r estated accordingly (note 6). Capital employed 2022 US$m 2021 (Restated) (Note 6) US$m North America 4,590 4,112 Latin America 1,104 896 UK and Ireland 950 937 EMEA/Asia Pacific 989 1,029 Total operating segments 7,633 6,974 Central Activities 527 392 Add: lease obligations in operating segments 177 198 Less: accrued interest on lease obligations in operating segments (1) (2) Less: right-of-use assets (153) (172) Less: non-controlling interests (38) (38) Capital employed attributable to owners 8,145 7,352 The three-point aver age capital employed figure of US$7,774m (2021 r estated: US$6,901m), used in our calculation of ROCE, is det ermined by calculating the arithmetic aver age of capital employed at 31 March 2022, 30 September 2021 and 31 March 2021. 9. Segment information c ontinued 179 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued (iv) Capital expenditure, amortisation and depreciation Capital expenditure Right-of-use asset additions Amortisation Depreciation 2022 US$m 2021 US$m 2022 US$m 2021 US$m 2022 US$m 2021 US$m 2022 US$m 2021 US$m North America 251 211 17 26 167 160 58 59 Latin America 106 81 5 3 69 61 17 17 UK and Ireland 49 41 6 14 51 50 26 28 EMEA/Asia Pacific 47 28 11 14 33 27 22 22 Total operating segments 453 361 39 57 320 298 123 126 Central Activities 55 61 — — 38 28 3 1 Total Group 508 422 39 57 358 326 126 127 Amortisation and depreciation above only include amounts char ged to Benchmark PBT . (v) Revenue by country – continuing oper ations 2022 US$m 2021 US$m USA 4,121 3,529 UK 843 744 Brazil 692 546 Germany 93 81 Colombia 68 60 South Africa 57 55 Other 414 357 6,288 5,372 Revenue is primarily attributable to countries other than Ireland. No single client accounted for 10% or more of revenue in the curr ent or prior year . Revenue from the US A, the UK and Br azil in aggregate comprises 90% (2021: 90%) of Group r evenue. (vi) Non-current assets by country 2022 US$m 2021 US$m USA 5,050 4,437 UK 1,018 1,079 Brazil 907 731 Germany 441 477 South Africa 264 268 Colombia 155 164 Other 674 703 Segment non-current assets by country 8,509 7,859 Central Activities 666 695 Deferred tax 46 86 9,221 8,640 T o add clarity to the presentation of this information, non-current assets for Centr al Activities and deferred tax have been excluded fr om the analysis by country . The Gr oup has no significant non-curr ent assets located in Ireland. 9. Segment information c ontinued Experian plc Financial statements 180 (b) Information on business segments (including non-GAAP disclosur es) Year ended 31 March 2022 Business-to- Business US$m Consumer Services US$m Total business segments US$m Central Activities¹ US$m Total continuing operations US$m Revenue from external customers Ongoing activities 4,654 1,613 6,267 — 6,267 Exited business activities 21 — 21 — 21 Total 4,675 1,613 6,288 — 6,288 Reconciliation from Benchmark EBIT to profit before tax Benchmark EBIT Ongoing activities before transfer pricing and other adjustments 1,409 386 1,795 (155) 1,640 Transfer pricing and other allocation adjustments 9 (12) (3) 3 — Ongoing activities 1,418 374 1,792 (152) 1,640 Exited business activities 8 (3 ) 5 — 5 Total 1,426 371 1,797 (152) 1,645 Net interest expense included in Benchmark PBT (note 15(b)) (6) (2) (8) (102) (110) Benchmark PBT 1,420 369 1,789 (254) 1,535 Exceptional items (note 14(a)) (74) — (74) 95 21 Amortisation of acquisition intangibles (note 21) (145) (29) (174) — (174) Acquisition and disposal expenses (34) (13) (47) — (47) Adjustment to the fair value of contingent consideration (26) — (26) — (26) Non-benchmark share of post-tax loss of associates — (26) (26) (5) (31) Interest on uncertain tax provisions — — — 1 1 Financing fair value remeasurements (note 15(c)) — — — 1 68 16 8 Profit before tax 1,141 301 1,442 5 1,447 Year ended 31 March 2021 2 Business-to- Business US$m Consumer Services US$m Total business segments US$m Central Activities US$m Total continuing operations US$m Revenue from external customers Ongoing activities 4,035 1,307 5,342 — 5,342 Exited business activities 30 — 30 — 30 Total 4,065 1,307 5,372 — 5,372 Reconciliation from Benchmark EBIT to profit/(loss) before tax Benchmark EBIT Ongoing activities 1,184 285 1,469 (90) 1,379 Exited business activities 9 (2) 7 — 7 Total 1,193 283 1,476 (90) 1,386 Net interest expense included in Benchmark PBT (note 15(b)) (8) (2) (10) (111) (121) Benchmark PBT 1,185 281 1,466 (201) 1,265 Exceptional items (note 14(a)) 35 — 35 — 35 Impairment of goodwill (note 20) (53) — (53) — (53) Amortisation of acquisition intangibles (note 21) (118) (20) (138) — (138) Acquisition and disposal expenses (40) (1) (41) — (41) Adjustment to the fair value of contingent consideration (1) — (1) — (1) Non-benchmark share of post-tax (loss)/profit of associates — (3) (3) 19 16 Interest on uncertain tax provisions — — — (11) (11) Financing fair value remeasurements (note 15(c)) — — — 5 5 Profit/(loss) before tax 1,008 257 1,265 (188) 1,077 1 The decrease in Central Activities Benchmark EBIT in the year ended 31 Mar ch 2022 is primarily attributable to increased empl oyee shar e incentive plan and bonus costs. 2 Revenue and Benchmark EBIT for the year ended 31 March 2021 have been r e-presented for the reclassification to exited business activities of certain B2B businesses. Additional information by business segment, including that on total and or ganic growth at constant exchange r ates, is provided in the Strategic r eport. 9. Segment information c ontinued 181 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 10. F oreign curr ency (a) Principal exchange r ates used Average Closing 2022 2021 2022 2021 2020 US dollar : Brazilian real 5.34 5.41 4.78 5.74 5.20 Pound sterling : US dollar 1.37 1.31 1.31 1.38 1.24 Euro : US dollar 1.16 1.17 1.11 1.17 1.09 US dollar : Colombian peso 3,834 3,699 3,757 3,720 4,052 US dollar : South African rand 14.85 16.36 14.56 14.76 17.81 (b) F oreign exchange risk (i) Brazilian real intr a-Group funding A Group company whose functional curr ency is not the Brazilian real pr ovides Brazilian r eal intra-Gr oup funding to Serasa S.A.. For eign exchange gains or losses on this funding are r ecognised in the Group income statement. As a result of the str engthening of 17% in the Brazilian r eal against the US dollar in the year ended 31 March 2022, a gain of US$43m has been recognised within financing fair value r emeasurements (2021: US$16m charge due to 10% weakening) (note 15(c)). The Group is similarly exposed to the impact of the Br azilian real str engthening or weakening against the US dollar in the futu r e. A movement of 16% would result in a US$35m impact on pr ofit before tax. There is no eect on total equity as a r esult of this exposure, since it arises on intr a-Group funding and there would be a r elated equal but opposite foreign exchange movement r ecognised in the translation r eserve within equity . (ii) Other exposures On the basis of the profile of for eign exchange exposures, and an assessment of reasonably possible changes in such exposur es, t her e are no other material sensitivities to foreign exchange risk at the balance sheet dates. In making these assessments, actual data on movemen ts in the principal currencies over the most r ecent three-y ear period has been considered together with exposures at the balance sheet dates. This methodology has been applied consistently . 11. Labour c osts and employee numbers – c ontinuing operations (a) Labour costs (including executive dir ectors) Notes 2022 US$m 2021 US$m Wages and salaries 1,604 1,446 Social security costs 254 217 Share incentive plans 33(a) 158 111 Pension costs – defined benefit plans 35(a) 8 6 Pension costs – defined contribution plans 68 58 Other employee benefit costs 27 25 Employee benefit costs 2,119 1,863 Other labour costs 194 132 2,313 1,995 W ages and salaries included redundancy costs of US$28m in the year ended 31 Mar ch 2021 (note 14(d)). Other labour costs includes those in r espect of external contractor s, outsour cing and the recruitment, development and training of employees. The definition of key management p ersonnel, and an analysis of their remuner ation, is given in note 46(d). Other labour costs have been reanaly sed during the year , to better r eflect the labour cost split, and other employee benefit cost s are now shown separately . The compar ative figures for the year ended 31 Mar ch 2021 have been re-pr esented to reflect this change. (b) A verage monthly number of employees (including e xecutive director s) 2022 2021 Full-time Part-time Full-time- equivalent Full-time Part-time Full-time- equivalent North America 8,669 56 8,697 6,992 49 7,016 Latin America 4,538 137 4,606 3,289 77 3,328 UK and Ireland 3,129 221 3,240 3,191 243 3,313 EMEA/Asia Pacific 3,858 100 3,908 3,955 69 3,989 Total operating segments 20,194 514 20,451 17,427 438 17,646 Central Activities 200 12 206 181 16 189 20,394 526 20,657 17,608 454 17,835 Experian plc Financial statements 182 12. Amortisation and depr eciation charges 2022 US$m 2021 US$m Benchmark: Amortisation of other intangible assets 358 326 Depreciation of property, plant and equipment 126 127 484 453 Non-benchmark: Amortisation of acquisition intangibles 174 138 658 591 An analysis by segment of amounts charged within Benchmark PBT is given in note 9(a)(iv). Analyses by asset type ar e given in n otes 21 and 22. The depreciation char ge for the year includes US$56m (2021: US$55m) in respect of right -of-use assets. 13. F ees payable to the Company’s auditor 2022 US$m 2021 US$m Audit of the Company and Group financial statements 1.2 0.7 Audit of the financial statements of the Company’s subsidiaries 5.7 4.5 Audit-related assurance services 0.6 0.6 Other assurance services 0.2 0.1 Total fees payable to the Company’s auditor and its associates 7.7 5.9 Summary of fees by nature: Fees for audit services 6.9 5.2 Fees for audit-related assurance services 0.6 0.6 Fees for other assurance services 0.2 0.1 7.7 5.9 The guidelines covering the use of the Company’s auditor for non-audit services are set out in the Audit Committee r eport. Fees for other assurance services were c apped at 30% (2021: 30%) of the fees for audit services. In the year ended 31 Mar ch 2022, fees payable for non-a udit services, wer e 12% (2021: 13%) of fees payable for audit services. Such fees ar e reported within Other operating char ges. The fees for audit-r elated assurance services r elate to the Group’s half-y early financial report and US$0.1m (2021: US$0.1m) of the fees for other assurance services was for bond issuance r elated reports. 183 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 14. Ex ceptional items and other adjustments made to derive Benchmark PBT – c ontinuing operations (a) Net charge for Exceptional items and other adjustments made to deriv e Benchmark PBT Notes 2022 US$m 2021 US$m Exceptional items: Loss on disposal of business 14(b), 20(a), 43 43 — Net profit on disposal of associates 14(c), 23 (90) (120) Restructuring costs 14(d) 20 50 Impairment of intangible assets¹ 14(e) — 27 Legal provisions movements 1 14(f) 6 8 Net credit for Exceptional items (21) (35) Other adjustments made to derive Benchmark PBT: Amortisation of acquisition intangibles 12, 21 174 138 Impairment of goodwill 1 20 — 53 Acquisition and disposal expenses 2 47 41 Adjustment to the fair value of contingent consideration 1 26 1 Non-benchmark share of post-tax loss/(profit) of associates 23 31 (16) Interest on uncertain tax provisions 15(c) (1) 11 Financing fair value remeasurements 15(c) (168) (5) Net charge for other adjustments made to derive Benchmark PBT 109 223 Net charge for Exceptional items and other adjustments made to derive Benchmark PBT 88 188 By income statement caption: Labour costs 11 30 Amortisation and depreciation charges 174 138 Other operating charges 88 150 Loss on disposal of business 43 — Net profit on disposal of associates (90) (120) Within operating profit 226 198 Within share of post-tax loss/(profit) of associates 31 (16) Within finance expense 15(a) (169) 6 Net charge for Exceptional items and other adjustments made to derive Benchmark PBT 88 188 1 Included in other operating charges. 2 Acquisition and disposal expenses represent professional fees and expenses associated with completed, ongoing and terminated acquisition and disposal processes, as well as the integration and separ ation costs associated with completed deals. Of the total, US$9m (2021: US$2m) is recorded within labour costs in the Gr oup income statemen t, and US$38m (2021: US$39m) is included within other operating char ges. (b) Loss on disposal of business During the year we have ceased the oper ations of a small UK subsidiary undertaking whose principal business activity was the pr ovision and support of decision analytics software to corpor ate clients in Russia. As a result of r ecent geopolitical tensions we no longer continue to oper ate in the region, and consequently the related business and assets have been written o, resulting in a loss of US$43m. (c) Net profit on disposal of associates On 4 F ebruary 2022, V ector CM Holdings (Cayman) L .P ., an associate undertaking, completed a mer ger with the CM Group involving its Cheetah Digital business. As a r esult of the merger , the Group no longer has signific ant influence over V ector and accordingly our interest in th is compan y has been recognised as a tr ade investment from that date. We r ecognised a fair value gain on the associate disposal of US$95m and the promissory note and associated interest due to Experian of US$110m wer e also repaid. We no longer ha ve significant influence over our Russian associate United Credit Bur eau, and consequently have r ecognised a dispo sal, writing o our investment, recording a loss of US$17m. In the year ended 31 March 2021, the Group disposed of its 18.6% interest in Finicity Corpor ation for US$127m recognising a gai n on disposal of US$120m. During the y ear ended 31 March 2022 further consider ation of US$12m was received in respect of earnout arr angements, t he payout of which was not anticipated at 31 March 2021. Experian plc Financial statements 184 (d) Restructuring costs Costs of US$20m have been recognised in the y ear associated with a strategic r eview and early planning for restructuring, and t he refocussing of activities in EMEA/Asia Pacific. Of the charge, US$2m was labour related, and US$18m is included within other oper ating charges in the Gr oup income statement. The associated cash outflow was US$14m. A charge of US$50m was incurr ed in the year ended 31 March 2021, in respect of a transformation pr ogramme principally in the UK and Ir eland, with a related c ash outflow of US$39m. Of the char ge, US$28m r elated to redundancy costs, and US$22m related to other r estructuring and consultancy costs included within other operating char ges in the Group income statement. (e) Impairment of intangible assets During the year ended 31 March 2021 internally gener ated software assets with a net book value of US$27m were identified as r equiring impairment due to the upgrade of our technology estate. (f) Legal provisions movements During the current and prior year ther e was an increase in provisions in respect of a number of historic al legal claims, some of which ar e in the process of being settled. 14. Ex ceptional items and other adjustments made to derive Benchmark PBT – c ontinuing operations c ontinued 15. Net financ e costs (a) Net finance costs included in profit before tax 2022 US$m 2021 US$m Interest income: Bank deposits, short-term investments and loan notes (14) (11) Interest on pension plan assets (1) (1) Interest income (15) (12) Net non-benchmark finance income (note 15(c)) (169) — Finance income (184) (12) Finance expense: Eurobonds and notes 95 102 Bank loans, commercial paper, overdrafts and other 6 8 Commitment and facility fees 7 6 Interest on leases 8 10 Interest dierentials on derivatives 9 7 Interest expense 125 133 Net non-benchmark finance expense (note 15(c)) — 6 Finance expense 125 139 Net finance (income)/costs included in profit before tax (59) 127 (b) Net interest expense included in Benchmark PBT 2022 US$m 2021 US$m Interest income (15) (12) Interest expense 125 133 Net interest expense included in Benchmark PBT 110 121 185 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued (c) Analysis of net non-benchmark finance (income)/expense 2022 US$m 2021 US$m Fair value gains on borrowings – attributable to interest rate risk (69) (35) Fair value (gains)/losses on borrowings – attributable to currency risk (77) 114 Losses on interest rate swaps – fair value hedges 19 31 Losses/(gains) on cross-currency swaps – fair value hedges 98 (75) Foreign currency loss/(gain) on cross-currency swaps designated as a cashflow hedge – transfer from OCI 26 (33) (Gains)/losses on items in hedging relationships – hedge ineectiveness (3) 2 Fair value gains on non-hedging derivatives (88) (16) Foreign exchange (gains)/losses on Brazilian real intra-Group funding (43) 16 Other foreign exchange (gains)/losses on financing activities (3) 9 Decrease in present value of put options (29) (13) Movement in Other financial assets at FVPL — (3) Movement in connection with commitments to purchase own shares (2) — Net credit for financing fair value remeasurements (168) (5) Interest on uncertain tax provisions (1) 11 (169) 6 (d) Interest r ate risk The following table shows the sensitivity to interest r ate risk, on the basis of the profile of Net debt at the balance sheet da tes and an assessment of reasonably possible changes in the principal inter est rates, with all other variables held constant. In making this assessment, actual movements in relevant inter est rates over the most recent thr ee-year period have been consider ed and a consistent methodology applied. An in dic ation of the primary cause of the r eported sensitivity is included. Gain/(loss) 2022 US$m 2021 US$m Impact on profit for the financial year: Eect of an increase of 0.8% (2021: 1.1%) on US dollar-denominated Net debt: Due to fair value gains on interest rate swaps oset by higher interest on floating rate borrowings 42 19 Eect of an increase of 0.3% (2021: 0.3%) on pound sterling-denominated Net debt: Due to the revaluation of borrowings and related derivatives 1 2 Eect of an increase of 3.0% (2021: 2.1%) on Brazilian real-denominated Net debt: Due to higher interest income on cash and cash equivalents 1 1 Eect of an increase of 0.1% (2021: 0.1%) on euro-denominated Net debt: Due to the revaluation of borrowings and related derivatives — — Impact on other components of equity: Eect of an increase of 0.8% (2021: 1.1%): On the fair value of the US dollar leg of cross-currency swaps treated as a cash flow hedge 11 20 Eect of an increase of 0.3% (2021: 0.3%): On the fair value of the pound sterling leg of cross-currency swaps treated as a cash flow hedge (4) (6) 15. Net financ e costs continued Experian plc Financial statements 186 16. T ax charge (a) Analysis of tax charge in the Gr oup income statement 2022 US$m 2021 US$m Current tax: Tax on income for the year 339 193 Adjustments in respect of prior years (25) 2 Total current tax charge 314 195 Deferred tax: Origination and reversal of temporary dierences (15) 79 Adjustments in respect of prior years (3) 1 Total deferred tax (credit)/charge (18) 80 Tax charge 296 275 The tax charge comprises: UK tax 87 9 Non-UK tax 209 266 296 275 (b) T ax reconciliations (i) Reconciliation of the tax charge As the Group is subject to the tax r ates of more than one country , it has chosen to present its r econciliation of the tax charge using the main r ate of corporation tax in the UK. The eective rate of tax for each year based on pr ofit before tax is higher (2021: higher) than the m ain r ate of corporation tax in the UK, with the dier ences explained in note 16(c). 2022 US$m 2021 US$m Profit before tax 1,447 1,077 Profit before tax multiplied by the main rate of UK corporation tax of 19% (2021: 19%) 275 205 Eects of: Adjustments in respect of prior years (28) 3 Tax on Exceptional items (6) (16) Income not taxable (18) (5) Losses not recognised 18 20 Expenses not deductible 18 15 Dierent eective tax rates in non-UK businesses 36 31 Local taxes 34 33 Movement in uncertain tax provisions (24) — Recognition/utilisation of previously unrecognised tax losses (9) (11) Tax charge 296 275 Eective rate of tax based on profit before tax 20.5% 25.5% Local taxes primarily comprise US state taxes. (ii) Reconciliation of the tax charge to the Benchmark tax char ge 2022 US$m 2021 US$m Tax charge 296 275 Tax relief on Exceptional items and other adjustments made to derive Benchmark PBT 98 53 Benchmark tax charge 394 328 Benchmark PBT 1,535 1,265 Benchmark tax rate 25.7% 25.9% 187 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued (c) F actors that aect the tax charge Prior year adjustments reflect the net movement on historic al tax positions, including adjustments for matters that ha ve been su bstantively agreed with local tax authorities, and adjustments to deferred tax assets based on latest estimates and assumptions. Expenses not deductible include charges in r espect of uncertain tax positions, the impairment of goodwill, financing fair value remeasurements not allowable for tax purposes, and losses on the disposal of businesses which ar e not subject to tax relief . The Group’s tax r ate reflects its internal financing arr angements in place to fund non-UK businesses. In addition, in the normal cour se of business, the Gr oup has a number of open tax returns with various tax authorities with who m it is in active dialogue. At 31 March 2022 the Gr oup held current pr ovisions of US$293m (2021: US$350m) in respect of uncertain tax positions. During FY22, Experian was in discussions with the US Internal R evenue Service and Her Majesty’s Revenue and Customs to seek clarity on Experian’s transfer pricing and financing r elated issues. The net decrease in r ecognised provisions during the year was driven by agr eement of open tax issues in North America and adjustments to our pr ovisions on the utilisation of historical UK tax losses. Liabilities relating to these open and judgmental matters ar e based on an assessment as to whether additional taxes will be due, after taking into account external advice where appr opriate. The r esolution of these tax matters may take many years. While the timing of develop ments in r esolving these matters is inherently uncertain, the Group does not expect to materially increase its uncertain tax pr ovisions in the nex t 12 months, however if an opportunity arose to r esolve the matters for less than the amounts provided, a settlement may be made with a corresponding redu ction in the pr ovision. (d) Other factors that aect the future tax char ge The Group’s tax char ge will continue to be influenced by the profile of pr ofits earned in the dierent countries in which the Grou p’s subsidiaries operate. Continued focus on tax reform is expected thr ough 2022, 2023 and futur e years driven by the OECD’s project to addr ess the tax c hallenges arising from the digitalisation of the economy (including the proposed minimum tax legislation). Experian are continuing to analyse the impl ications for the Gr oup from these Model Rules and will determine the outcome once the final r elevant legislation is available. This may result in significant changes to established tax principles and an increase in tax authority disputes. In turn, this could adver sely aect Experian’s eective tax rate or could r esult in higher cash tax liabilities. The main rate of UK corpor ation tax is 19% and will increase to 25% from 1 April 2023. This will have a consequential eect on the Gr oup’s future tax char ge. 17. Disc ontinued operations There have been no material divestments of subsidiaries during the y ear ended 31 March 2022. The profit fr om discontinued operations of US$16m comprises the release of historic al tax provisions relating to the disposal of the Gr oup’s comparison shopping and lead generation businesses in FY13, with the likelihood of any r esidual tax liability now considered r emote, plus the expected net benefit on conclusion of an enquiry into our email/cr oss channel marketing business (CCM) which was disposed of in FY18. The cash inflow fr om operating activities of US$1m (2021: US$nil) r elates to the disposal of CCM. 16. T ax charge continued 18. Earnings per shar e disclosures (a) Earnings per share Basic Diluted 2022 US cents 2021 US cents 2022 US cents 2021 US cents Continuing and discontinued operations 127.5 88.2 126.5 87.6 Less: profit from discontinued operations (1.8) — (1.7) — Continuing operations 125.7 88.2 124.8 87.6 (Deduct)/add: Exceptional items and other adjustments made to derive Benchmark PBT, net of related tax (1.2) 14.9 (1.2) 14.7 Benchmark EPS (non-GAAP measure) 124.5 103.1 123.6 102.3 (b) Analysis of earnings (i) Attributable to owners of Experian plc 2022 US$m 2021 US$m Continuing and discontinued operations 1,165 803 Less: profit from discontinued operations (16) — Continuing operations 1,149 803 (Deduct)/add: Exceptional items and other adjustments made to derive Benchmark PBT, net of related tax (11) 135 Benchmark earnings attributable to owners of Experian plc (non-GAAP measure) 1,138 938 Experian plc Financial statements 188 18. Earnings per shar e disclosures continued (ii) Attributable to non-controlling inter ests 2022 US$m 2021 US$m Profit/(loss) for the financial year attributable to non-controlling interests 2 (1) Add: amortisation of acquisition intangibles attributable to non-controlling interests, net of related tax 1 — Benchmark earnings attributable to non-controlling interests (non-GAAP measure) 3 (1) (c) Reconciliation of T otal Benchmark earnings to profit for the financial year 2022 US$m 2021 US$m Total Benchmark earnings (non-GAAP measure) 1,141 937 Profit from discontinued operations 16 — Profit/(loss) from Exceptional items and other adjustments made to derive Benchmark PBT, net of related tax 11 (135) Less: amortisation of acquisition intangibles attributable to non-controlling interests, net of related tax (1) — Profit for the financial year 1,167 802 (d) W eighted average number of or dinary shares 2022 million 2021 million Weighted average number of ordinary shares 914 910 Add: dilutive eect of share incentive awards, options and share purchases 7 7 Diluted weighted average number of ordinary shares 921 917 19. Dividends on or dinary shares 2022 2021 US cents per share US$m US cents per share US$m Amounts recognised and paid during the financial year: First interim – paid in February 2022 (2021: February 2021) 16.00 147 14.50 133 Second interim – paid in July 2021 (2021: July 2020) 32.50 297 32.50 294 Dividends paid on ordinary shares 48.50 444 47.00 427 Full-year dividend for the financial year 51.75 474 47.00 430 A second interim dividend in respect of the year ended 31 Mar ch 2022 of 35.75 US cents per ordinary share will be paid on 22 Ju ly 2022, to shareholders on the register at the close of business on 24 June 2022. This dividend is not included as a liability in these financial statements. This second interim dividend and the first interim dividend paid in F ebruary 2022 comprise the full-year dividend for the financial y ear of 51.75 US cents per ordinary shar e. Further administr ative information on dividends is given in the Shareholder and corporate information section. Dividend amounts ar e quoted gross. In the year ended 31 March 2022, the employee trusts waived their entitlements to dividends of US$4m (2021: US$2m). Ther e is no entitlement to dividends in respect of own shar es held as treasury shar es. 189 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 20. Goodwill (a) Movements in goodwill 2022 US$m 2021 US$m Cost At 1 April 5,314 4,543 Dierences on exchange 40 114 Additions through business combinations (note 41(a)) 469 657 Disposal of business (note 43) (33) — At 31 March 5,790 5,314 Accumulated impairment At 1 April 53 — Impairment charge — 53 At 31 March 53 53 Net book amount at 1 April 5,261 4,543 Net book amount at 31 March 5,737 5,261 (b) Goodwill by CGU 2022 US$m 2021 US$m North America 3,546 3,133 Latin America 760 611 UK and Ireland 694 718 EMEA 649 711 Asia Pacific 88 88 At 31 March 5,737 5,261 (c) Key assumptions for value-in-use c alculations by CGU 2022 2021 Discount rate % p.a. Long-term growth rate % p.a. Discount rate % p.a. Long-term growth rate % p.a. North America 9.3 2.3 9.1 2.3 Latin America 13.5 4.7 12.8 4.7 UK and Ireland 9.1 2.3 8.9 2.3 EMEA 10.6 3.9 10.4 3.9 Asia Pacific 8.6 5.3 9.4 5.3 As indicated in note 5(a), value-in-use calculations ar e underpinned by financial budgets looking forward up to five years, which continue to reflect our current assessment of the impact of climate change and associated commitments the Gr oup has made. Management’s ke y assumptions in setting the financial budgets for the initial five-year period wer e as follows: a forecast revenue gr owth rates wer e based on past experience, adjusted for the str ategic opportunities within each CGU; the forecasts typically used aver age nominal growth r ates of up to 14%; a Benchmark EBIT was forecast based on historic mar gins. These wer e expected to improve modestly throughout the period in the mat ur e CGUs, and improve annually by a low- to mid-single-digit amount in EMEA and Asia P acific; and a forecast Benchmark operating c ash flow conversion r ates were based on historical experience and performance expectations with r a tes of up to 90% unless a Benchmark EBIT loss was forec ast. In these cir cumstances, c ash outflows were for ecast to exceed the Benchmark EBIT loss . Further details of the principles used in determining the basis of alloc ation by CGU and annual impairment testing are given in note 5(a). Experian plc Financial statements 190 (d) Results of annual impairment r eview as at 31 March 2022 The review for the EMEA CGU indic ated that the recover able amount exceeded the carrying value by US$201m and that any decline i n estimated value-in-use in excess of that amount would result in the r ecognition of an impairment charge. The sensitivities, which result in the recoverable amount being equal to the carrying value, can be summarised as follows: a an absolute increase of 1.4 percentage points in the discount r ate, fr om 10.6% to 12.0%; or a an absolute reduction of 1.8 percentage points in the long-term growth r ate, from gr owth of 3.9% to growth of 2.1%; or a a reduction of 4.7 percentage points in the forec ast terminal profit mar gin, fr om 22.9% to 18.2%. A r eduction in the annual marg in impr ovement of approximately 0.9 per centage points per year over the five-year forec ast period would also reduce the recover able amount to the carrying value. The review for the Asia P acific CGU indicated that the recover able amount exceeded the carrying value by US$154m and that any de cline in estimated value-in-use in excess of that amount would result in the r ecognition of an impairment charge. The sensitivities, which result in the recover able amount being equal to the carrying value, can be summarised as follows: a an absolute increase of 2.4 percentage points in the discount r ate, fr om 8.6% to 11.0%; or a an absolute reduction of 2.9 percentage points in the long-term growth r ate, from gr owth of 5.3% to growth of 2.4%; or a a reduction of 3.5 percentage points in the forec ast terminal profit mar gin, fr om 8.9% to 5.4%. A r eduction in the annual margin impr ovement of approximately 0.7 per centage points per year over the five-year forec ast period would also reduce the recover able amount to the carrying value. The recover able amount of all other CGUs exceeded their carrying value, on the basis of the assumptions set out in the table in note 20(c) and any reasonably possible changes ther eof . 20. Goodwill c ontinued 191 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 21. Other intangible assets Acquisition intangibles Databases US$m Internal use software US$m Internally generated software US$m Total US$m Customer and other relationships US$m Acquired software development US$m Marketing- related assets US$m Cost At 1 April 2021 1,505 401 100 1,345 327 1,042 4,720 Dierences on exchange 9 2 5 90 1 (8 ) 99 Additions through business combinations (note 41) 207 105 9 (1) 1 (6) 315 Other additions — — — 180 29 236 445 Disposals (87) (11) (6) (99) (11) (74) (288) At 31 March 2022 1,634 497 108 1,515 347 1,190 5,291 Accumulated amortisation and impairment At 1 April 2021 721 266 85 923 251 508 2,754 Dierences on exchange 9 3 6 69 — ( 8) 79 Charge for the year 116 54 4 162 29 167 532 Disposals (87) (11) (6) (99) (11) (74) (288) At 31 March 2022 759 312 89 1,055 269 593 3,077 Net book amount at 31 March 2022 875 185 19 460 78 597 2,214 Acquisition intangibles Databases US$m Internal use software US$m Internally generated software US$m Total US$m Customer and other relationships US$m Acquired software development US$m Marketing- related assets US$m Cost At 1 April 2020 1,094 337 91 1,311 376 860 4,069 Dierences on exchange 25 8 (2) (13) (2) 35 51 Additions through business combinations 386 57 11 8 1 18 481 Other additions — — — 147 30 197 374 Disposals — (1) — (108) (78) (68) (255) At 31 March 2021 1,505 401 100 1,345 327 1,042 4,720 Accumulated amortisation and impairment At 1 April 2020 617 224 81 882 300 382 2,486 Dierences on exchange 10 5 (2) (8) 1 20 26 Charge for the year 94 38 6 157 28 141 464 Impairment charge — — — — — 33 33 Disposals — (1) — (108) (78) (68) (255) At 31 March 2021 721 266 85 923 251 508 2,754 Net book amount at 1 April 2020 477 113 10 429 76 478 1,583 Net book amount at 31 March 2021 784 135 15 422 76 534 1,966 Within the above are the following individually material assets at 31 Mar ch 2022: a North America Healthcare customer r elationships have a net book value of US$160m and a r emaining amortisation period of six yea rs. a North America T apad, Inc. customer relationships with a net book value of US$143m and a remaining amortisation period of 16 y ea rs. a The former Risk Management division of AFS customer relationships with a net book value of US$126m and a remaining amortisation period of 11 years. In addition to the development capitalised above we char ged US$281m (2021: US$138m) of research and development costs in the Gr oup income statement. The impairment charge in the year ended 31 Mar ch 2021 largely related to an internally gener ated software asset in the UK and I reland identified as requiring impairment due to a planned upgr ade of our technology estate. Experian plc Financial statements 192 22. Pr operty , plant and equipment Freehold properties US$m Leasehold improvements US$m Plant and equipment US$m Right-of-use assets Total US$m Land and buildings US$m Motor vehicles US$m Plant and equipment US$m Cost At 1 April 2021 136 154 628 195 20 41 1,174 Dierences on exchange (1 ) 1 (1 ) — — 1 — Additions through business combinations (note 41) — — 1 2 — 1 4 Other additions — 2 61 2 7 8 4 10 2 Disposal of business — — — (1 ) — — ( 1) Other disposals (36) (1) (28) (18) (5) (7) (95) Transfer in respect of assets held-for-sale (note 42) (21) — (8) — — — (29) At 31 March 2022 78 156 653 205 23 40 1,155 Accumulated depreciation and impairment At 1 April 2021 48 78 495 62 8 14 705 Dierences on exchange (1) 1 (3) (1) — 1 (3) Charge for the year 2 5 63 39 6 11 126 Other disposals (18) (1) (27) (14) (4) (7) (71) Transfer in respect of assets held-for-sale (note 42) (11) — (6) — — — (17) At 31 March 2022 20 83 522 86 10 19 740 Net book amount at 31 March 2022 58 73 131 119 13 21 415 Freehold properties US$m Leasehold improvements US$m Plant and equipment US$m Right-of-use assets Total US$m Land and buildings US$m Motor vehicles US$m Plant and equipment US$m Cost At 1 April 2020 127 154 589 197 15 29 1,111 Dierences on exchange 10 — 23 4 1 — 38 Additions through business combinations — — 2 3 — — 5 Other additions — 4 44 26 8 23 105 Disposals (1) (4) (30) (35) (4) (11) (85) At 31 March 2021 136 154 628 195 20 41 1,174 Accumulated depreciation and impairment At 1 April 2020 42 77 438 36 5 11 609 Dierences on exchange 3 — 17 2 — — 22 Charge for the year 3 5 64 40 6 9 127 Impairment charge — — 3 1 — — 4 Disposals — (4) (27) (17) (3) (6) (57) At 31 March 2021 48 78 495 62 8 14 705 Net book amount at 1 April 2020 85 77 151 161 10 18 502 Net book amount at 31 March 2021 88 76 133 133 12 27 469 The disposal of right-of-use assets in the year is lar gely as a result of early termination and r estructuring of leases. The di sposal of right-of-use assets in the year ended 31 March 2021 primarily r elated to sublease arrangements, leading to the der ecognition of right-of-use assets an d the recognition of sublease receivables in North Americ a. 193 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 23. In vestments in associates 2022 US$m 2021 US$m At 1 April 128 123 Dierences on exchange (6) 6 Share of loss after tax (3) (2) Dividends received (13) (17) Impairment charge (25) — Reversal of previous impairment charge — 23 Reclassification as trade investment (42) — Disposals (6) (5) Transfer in respect of assets held-for-sale (note 42) (29) — At 31 March 4 128 On 4 F ebruary 2022 V ector CM Holdings (Cayman) L.P ., an associate undertaking, completed a mer ger with the CM Group involving i ts Cheetah Digital business. As a r esult of the merger , the Group no longer has signific ant influence over V ector and accordingly our interest in th is company has been recognised as a tr ade investment from that date. We r ecognised a fair value gain on the associate disposal of US$95m and the promissory note and associated interest due to Experian of US$110m wer e also repaid. As a result of r ecent geopolitical tensions we no longer have significant influence over our Russian associate United Cr edit Bure au, and have accor dingly recognised a disposal, writing o our investment, recording a loss of US$17m. The Group has r eclassified a UK associate as held-for-sale, and the carrying amount has been written down by US$25m. In the year ended 31 March 2021, the Group disposed of its 18.6% interest in Finicity Corpor ation for US$127m, r ecognising a gain on disposal of US$120m after costs. In addition, a previous impairment charge of US$23m was also rever sed in the year ended 31 March 2021, fol lowing favourable trading performance. The impairment charge, impairment reversal and the gain on disposal ar e reported within non-benchmark items in the Group income statement. 24. Tr ade and other receivables (a) Analysis by type and maturity 2022 US$m 2021 US$m Trade and unbilled receivables 1,083 923 Credit note provision (20) (19) Trade receivables – after credit note provision 1,063 904 Contract assets 130 151 Trade receivables and contract assets 1,193 1,055 Loss allowance (22) (23) Net impaired trade receivables and contract assets 1,171 1,032 VAT and equivalent taxes recoverable 4 5 Prepayments 279 220 Contract costs 88 100 1,542 1,357 As reported in the Group balance sheet: Current trade and other receivables 1,409 1,197 Non-current trade and other receivables 133 160 1,542 1,357 There is no material dier ence between the fair value and the book value stated above. Non-current tr ade and other receiv ables comprise prepayments, contract assets, unbilled receivables and contract costs. At 31 March 2020, the value of tr ade and unbilled receivables was US$853m and contr act assets was US$167m. Experian plc Financial statements 194 (b) Loss allowance matrix 2022 2021 Loss allowance US$m Gross carrying amount US$m Loss allowance US$m Gross carrying amount US$m Not past-due (7) 937 (3) 840 Up to three months past-due (1) 198 (2) 157 Three to six months past-due (1) 27 (2) 26 Over six months past-due (13) 31 (16) 32 Trade receivables and contract assets (22) 1,193 (23) 1,055 Loss allowance (note 24(c)) (22) (23) Net trade receivables and contract assets 1,171 1,032 (c) Movements in the loss allowance 2022 US$m 2021 US$m At 1 April 23 25 Increase/(decrease) in the loss allowance recognised in the Group income statement 3 (1) Receivables written o in the year as uncollectable (5) (2) Dierences on exchange 1 1 At 31 March 22 23 (d) Analysis by curr ency denomination Contract assets Trade receivables 2022 US$m 2021 US$m 2022 US$m 2021 US$m US dollar 47 50 571 499 Brazilian real 2 3 187 117 Pound sterling 11 9 157 142 Euro 27 32 50 55 Colombian peso 2 — 14 13 South African rand 5 10 10 7 Other 36 47 52 48 130 151 1,041 881 25. Cash and c ash equivalents – excluding bank o ver drafts (a) Analysis by natur e 2022 US$m 2021 US$m Cash at bank and in hand 104 113 Short-term investments 75 67 179 180 The eective interest r ate for cash and cash equivalents held at 31 March 2022 is 1.2% (2021: 0.8%). There is no material dierence between the fair value and the book value stated above. (b) Analysis by e xternal credit rating 2022 US$m 2021 US$m Counterparty holding of more than US$2m: A rated 130 83 B rated 22 79 Counterparty holding of more than US$2m 152 162 Counterparty holding of less than US$2m 27 18 179 180 24. Tr ade and other receivables c ontinued 195 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 26. Tr ade and other payables (a) Analysis by type and maturity 2022 2021 Current US$m Non-current US$m Current US$m Non-current US$m Trade payables 150 — 187 — VAT and other equivalent taxes payable 35 — 30 — Social security costs 117 — 110 — Accruals 699 10 583 4 Contract liabilities 427 158 389 114 Other payables 316 80 244 41 1,744 248 1,543 159 There is no material dier ence between the fair value and the book value stated above. Other payables include interest payable of US$83m (2021: US$87m), employ ee benefits of US$112m (2021: US$97m) and deferred and contingent consider ation of US$116m (2021: US$73m). At 31 March 2020, the value of contr act liabilities was US$450m. (b) Analysis by natur e 2022 US$m 2021 US$m Financial instruments 694 607 VAT and other equivalent taxes payable 35 30 Social security costs 117 110 Amounts within accruals and contract liabilities 1,146 955 Items other than financial instruments 1,298 1,095 1,992 1,702 Contractual undiscounted futur e cash flows in respect of financial instruments are shown in note 32. 27. Borr owings (a) Analysis by c arrying amounts and fair value Carrying amount Fair value 2022 US$m 2021 US$m 2022 US$m 2021 US$m Current: Bonds: £400m 3.50% Euronotes 2021 — 562 — 556 Commercial paper — 25 — 25 Bank overdrafts 3 10 3 10 Lease obligations (note 29) 54 58 54 58 57 655 57 649 Non-current: Bonds: £400m 2.125% Euronotes 2024 520 567 523 573 £400m 0.739% Euronotes 2025 525 551 497 543 €500m 1.375% Euronotes 2026 554 618 561 624 US$500m 4.25% Notes 2029 500 500 523 563 US$750m 2.75% Notes 2030 724 738 712 760 €500m 1.56% Euronotes 2031 553 — 546 — £400m 3.25% Euronotes 2032 536 562 543 618 Bank loans 1 2 1 2 Lease obligations (note 29) 126 144 126 144 4,039 3,682 4,032 3,827 Total borrowings 4,096 4,337 4,089 4,476 The eective interest r ates for bonds appro ximate to the coupon rates indicated above. Other than lease obligations, borrowings are unsecur ed. F urther information on the methodology used in determining fair values is given in note 31. Experian plc Financial statements 196 (b) Analysis by maturity 2022 US$m 2021 US$m Less than one year 57 655 One to two years 44 49 Two to three years 549 35 Three to four years 544 589 Four to five years 564 564 Over five years 2,338 2,445 4,096 4,337 (c) Analysis by curr ency 2022 US$m 2021 US$m US dollar 3,573 3,599 Pound sterling 432 545 Euro 53 95 Other 38 98 4,096 4,337 The above analysis takes account of the eect of cr oss-currency swaps and forwar d foreign exchange contr acts and reflects the wa y in which the Gr oup manages its exposures. (d) Undrawn committed bank borr owing facilities 2022 US$m 2021 US$m Facilities expiring in: Less than one year — — One to two years 400 400 Two to three years 250 300 Three to four years 1,950 — Four to five years — 1,950 2,600 2,650 These facilities are at variable inter est rates and are in place for gener al corporate purposes, including the financing of acquisitions and the refinancing of other borrowings. (e) Covenants and lever age ratio There is one financial covenant in connection with the borr owing facilities. Benchmark EBIT must exceed thr ee times net interest expense before financing fair value remeasur ements. The calculation of the financial covenant excludes the eects of IFRS 16. The Group monitors this, and the Net debt to Benchmark EBITDA lever age ratio, and has complied with this covenant throughout the year . 28. Net debt (non-G AAP measure) (a) Analysis by natur e 2022 US$m 2021 (Restated) (Note 6) US$m Cash and cash equivalents (net of overdrafts) 176 170 Debt due within one year – commercial paper — (25) Debt due within one year – bonds and notes — (554) Debt due within one year – lease obligations (53) (56) Debt due after more than one year – bonds and notes (3,903) (3,526) Debt due after more than one year – bank loans (2) (2) Debt due after more than one year – lease obligations (126) (144) Derivatives hedging loans and borrowings (42) 111 (3,950) (4,026) 27. Borr owings continued 197 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued (b) Analysis by balance sheet c aption 2022 US$m 2021 (Restated) (Note 6) US$m Cash and cash equivalents 179 180 Current borrowings (57) (655) Non-current borrowings (4,039) (3,682) Borrowings (4,096) (4,337) Total of Group balance sheet line items (3,917) (4,157) Accrued interest reported within borrowings excluded from Net debt 9 20 Derivatives reported within Other financial assets 20 117 Derivatives reported within Other financial liabilities (62) (6) (3,950) (4,026) (c) Analysis of movements in Net debt Derivatives hedging loans and borrowings US$m Current borrowings US$m Non-current borrowings US$m Liabilities from financing activities US$m Accrued interest US$m Cash and cash equivalents US$m Net debt (Restated) (Note 6) US$m At 1 April 2021 1 111 (655) (3,682) (4,226) 20 180 (4,026) Cash flow 16 56 1 73 — (35) 38 Borrowings cash flow — 583 (571) 12 — — 12 Reclassification of borrowings — (45) 45 — — — — Net interest paid — — — — — 12 1 12 1 Movement on accrued interest — 11 — 11 (11) — — Net cash flow 16 605 (525) 96 (11) 86 171 Non-cash lease obligation additions and disposals — (8) (27) (35) — — (35) Principal lease payments — — — — — 57 5 7 Net share purchases — — — — — (149) (149) Additions through business combinations — (2) — (2) — — (2) Fair value gains/(losses) (65) 4 40 (21) — — (21) Exchange and other movements (104) (1) 155 50 — 5 55 At 31 March 2022 (42) (57) (4,039) (4,138) 9 179 (3,950) Derivatives hedging loans and borrowings US$m Current borrowings US$m Non-current borrowings US$m Liabilities from financing activities US$m Accrued interest US$m Cash and cash equivalents US$m Net debt (Restated) (Note 6) US$m At 1 April 2020 35 (498) (3,916) (4,379) 5 277 (4,097) Cash flow (54) 56 — 2 — (276) (274) Borrowings cash flow — 424 (98) 326 — — 326 Reclassification of borrowings — (558) 558 — — — — Net interest paid — — — — — 115 115 Movement on accrued interest — (1) (14) (15) 15 — — Net cash flow (54) (79) 446 313 15 (161) 167 Non-cash lease obligation additions and disposals — (15) (34) (49) — — (49) Principal lease payments — — — — — 56 56 Net share purchases — — — — — 19 19 Additions through business combinations — (3) (16) (19) — — (19) Fair value gains 10 3 31 44 — — 44 Exchange and other movements 120 (63) (193) (136) — (11) (147) At 31 March 2021 1 111 (655) (3,682) (4,226) 20 180 (4,026) 1 Following the implementation of IFRS 16, we have r eviewed emerging practice and ha ve updated our definition of Net debt to inc lude lease obligations. The compar ative position has been revised to include lease liabilities, net of accrued interest, of US$200m. Lease obligation disposals in the year ended 31 March 2021 of US$8m, pr evious ly reported within exchange and other movements, ar e now recorded within non-c ash lease obligation additions and disposals. 28. Net debt (non-G AAP measure) continued Experian plc Financial statements 198 29. Leases The Group’s lease portfolio consists of 42 (2021: 35) signific ant property leases across the countries in which we oper ate. In a ddition, we lease appr oximately 104 (2021: 121) smaller properties, 757 (2021: 700) motor vehicles, and a small number of har dware assets. The av erage r emaining lease term is 4.1 years (2021: 4.5 years) for significant pr operty leases, 1.5 years (2021: 1.3 years) for other minor pr operty leases and 1.9 years (20 21: 2.0 years) for motor vehicles and plant and equipment. Extension and termination options ar e included within a number of property and equipment leases acr oss the Group. These are used to maximise operational flexibility in terms of managing assets and lease exposur es. The majority of extension and terminat ion options are exer cisable only by the Group and not by the r espective lessor . (a) Amounts recognised in the Group balance sheet Notes 2022 US$m 2021 US$m Right-of-use assets: Land and buildings 22 119 133 Motor vehicles 22 13 12 Plant and equipment 22 21 27 At 31 March 153 172 Lease obligations: Current 27 54 58 Non-current 27 126 144 At 31 March 180 202 During the year ended 31 March 2021 the Gr oup derecognised right-of-use assets of US$13m due to sublease arrangements in North America. The lease receivable held in r elation to subleases at 31 March 2022 was US$11m (2021: US$13m), of which US$9m (2021: US$11m) falls due after mor e than one year . Lease payments are discounted using the inter est rate implicit in the lease. If that rate cannot be readily determined, which i s generally the case for leases in the Group, the incremental borr owing rate is used. The incremental borrowing r ate is unique to each country and class of assets therein and is based on the Group’s cost of debt, adjusted for factors specific to individual lessees and their borrowing c apacity . The Group is exposed to potential futur e increases in variable lease payments based on an index or a r ate, which are not included in the lease obligation until they take eect. (b) Maturity of lease obligations – contractual undiscounted c ash flows 2022 US$m 2021 US$m Less than one year 60 58 One to two years 49 54 Two to three years 32 40 Three to four years 21 25 Four to five years 12 16 Over five years 29 37 Total undiscounted lease obligations at 31 March 203 230 (c) Amounts recognised in the Group income statement Notes 2022 US$m 2021 US$m Depreciation charge for right-of-use assets: Land and buildings 22 39 40 Motor vehicles 22 6 6 Plant and equipment 22 11 9 Total depreciation charge for right-of-use assets 56 55 Interest expense 15 8 10 Expense relating to the lease of low-value assets 10 8 Total 74 73 We had no material sublease income in the curr ent or prior year . (d) Amounts recognised in the Group c ash flow statement During the year lease payments of US$66m (2021: US$66m) comprised US$57m (2021: US$56m) for repayments of principal and US$9m ( 2021: US$10m) for payments of interest. (e) Lease commitments The Group’s commitments for lease agr eements where the term has not yet commenced total US$2m (2021: US$1m); such amounts ar e not recognised as lease obligations or right-of-use assets. 199 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 30. Financial assets and liabilities (a) Financial assets revalued through OCI 2022 2021 Current US$m Non-current US$m Total US$m Current US$m Non-current US$m Total US$m Cash flow hedge of borrowings (cross-currency swaps) — 13 13 — 37 37 Listed investments — 67 67 — 44 44 Trade investments — 295 295 — 164 164 — 375 375 — 245 245 Listed investments includes investments held in the UK to secur e certain unfunded pension arrangements (note 34(b)). (b) Other financial assets and liabilities (i) Summary Assets 2022 2021 Current US$m Non-current US$m Total US$m Current US$m Non-current US$m Total US$m Financial assets held at amortised cost — 1 1 — 103 103 Derivative financial instruments: Fair value hedge of borrowings (cross-currency swaps) — — — — 81 81 Fair value hedge of borrowings (interest rate swaps) — — — 5 — 5 Derivatives used for hedging 1 — — — 5 81 86 Non-hedging derivatives (equity swaps) 1 — 1 — — — Non-hedging derivatives (foreign exchange contracts) 6 — 6 6 — 6 Non-hedging derivatives (interest rate swaps) — 62 62 9 27 36 Other financial assets at fair value through profit or loss — 18 18 — 12 12 Assets at fair value through profit or loss 7 80 87 20 120 140 Total other financial assets 7 81 88 20 223 243 Total other financial assets comprise: Loans and receivables — 1 1 — 103 103 Derivative financial instruments 7 62 69 20 108 128 Convertible loan notes — 18 18 — 12 12 7 81 88 20 223 243 Liabilities 2022 2021 Current US$m Non-current US$m Total US$m Current US$m Non-current US$m Total US$m Derivative financial instruments: Fair value hedge of borrowings (cross-currency swaps) — 17 17 — — — Fair value hedge of borrowings (interest rate swaps) — 17 17 — — — Derivatives used for hedging 1 — 34 34 — — — Non-hedging derivatives (equity swaps) — 2 2 — 2 2 Non-hedging derivatives (foreign exchange contracts) 18 — 18 6 — 6 Non-hedging derivatives (interest rate swaps) 1 3 4 2 64 66 Derivative financial instruments 2 19 39 58 8 66 74 Options in respect of non-controlling interests 3 187 190 7 213 220 Total other financial liabilities 22 226 248 15 279 294 1 Derivatives used for hedging are in documented hedge accounting relationships. 2 Derivative financial liabilities are valued at fair value thr ough profit or loss (FVPL). Amounts recognised in the Gr oup income statement in connection with the Group’s hedging instruments ar e disclosed in note 15. Ther e is no material dierence between the fair values and the book v alues stated above. Financial assets held at amortised cost principally comprise amounts due following the disposal of businesses and include accru ed inter est. Otherfinancial assets at fair value through pr ofit or loss comprise convertible loan notes purchased when acquiring interests in associates or tradein vestments. Experian plc Financial statements 200 (ii) F air value and notional principal amounts of derivative financial instruments 2022 2021 Assets Liabilities Assets Liabilities Fair value US$m Notional US$m Fair value US$m Notional US$m Fair value US$m Notional US$m Fair value US$m Notional US$m Cross-currency swaps 13 514 17 899 118 1,413 — — Interest rate swaps 62 1,600 21 900 41 1,201 66 1,563 Equity swaps 1 13 2 15 — — 2 22 Foreign exchange contracts 6 515 18 839 6 508 6 545 82 2,642 58 2,653 165 3,122 74 2,130 Notional principal amounts are the amount of principal underlying the contr acts at the reporting dates. (iii) Osetting derivative financial assets and liabilities held with the same counterparty Assets Liabilities 2022 US$m 2021 US$m 2022 US$m 2021 US$m Reported in the Group balance sheet 82 165 58 74 Related amounts not oset in the Group balance sheet (44) (60) (44) (60) Net amount 38 105 14 14 There ar e no amounts oset within the assets and liabilities reported in the Gr oup balance sheet. (c) Hedge accounting (i) F air value and cash flow hedges We use inter est rate swaps to hedge the inter est rate risk arising on fixed rate borr owings, and cr oss-currency swaps to hedge t he curr ency and interest rate risk arising on for eign currency fixed r ate borrowings. Our risk management str ategy for interest r ate risk and currency ri sk is outlined in note 7. We determine the existence of an economic r elationship between the hedging instruments and hedged items by comparing the curren cy , r eference interest r ates, duration, repricing and maturity dates and the notional amounts of the hedging instruments to those of the hedged items. We ha ve established a hedge ratio of 1:1 for the hedging r elationships as the underlying risk of interest r ate swaps and cross-curr ency swaps is identical to the hedged risk components. The main sources of ineectiveness in the hedge accounting r elationships arise from: a The application of dierent interest r ate curves to discount the cash flows of the hedged item and those of the hedging instrume nt. a Dierences in timing of cash flows of the hedged item and hedging instrument. a The dierent impact of the counterparties’ credit risk on the fair value movements of the hedging instrument compar ed to the hedged item. (ii) Analysis of hedging instruments The Group held the following instruments to hedge exposur es to changes in foreign curr ency and interest r ates. At 31 March 2022 Maturity Less than one year One to two years Two to three years Three to four years Four to five years Over five years Fair value hedges Interest rate risk Interest rate swaps: Notional amount (US$m) — — — — — 3 00 Weighted average fixed interest rate — — — — — 1.66% Cross-currency swaps: Notional amount (US$m) — — 3 95 — 5 04 — Weighted average fixed interest rate — — 2.13% — 1.38% — Foreign currency risk Cross-currency swaps: Notional amount (US$m) — — 3 95 — 5 04 — EUR:USD forward contract rate — — — — 1.12 — GBP:USD forward contract rate — — 1.32 — — — Cash flow hedge Foreign currency risk Cross-currency swaps: Notional amount (US$m) — — — 5 15 — — GBP:USD forward contract rate — — — 1.29 — — 30. Financial assets and liabilities c ontinued 201 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued At 31 March 2021 Maturity Less than one year One to two years Two to three years Three to four years Four to five years Over five years Fair value hedges Interest rate risk Interest rate swaps: Notional amount (US$m) 207 — — — — 300 Weighted average fixed interest rate 3.50% — — — — 1.66% Cross-currency swaps: Notional amount (US$m) — — — 395 — 504 Weighted average fixed interest rate — — — 2.13% — 1.38% Foreign currency risk Cross-currency swaps: Notional amount (US$m) — — — 395 — 504 EUR:USD forward contract rate — — — — — 1.12 GBP:USD forward contract rate — — — 1.32 — — Cash flow hedge Foreign currency risk Cross-currency swaps: Notional amount (US$m) — — — — 515 — GBP:USD forward contract rate — — — — 1.29 — (d) Impact of hedging instruments 2022 Notional amount of hedging instrument US$m Carrying amount of hedging instrument Changes in fair value used for calculating hedge ineectiveness (Note 15(c)) US$m Assets US$m Liabilities US$m Fair value hedges Interest rate risk Interest rate swaps 300 — (17) 19 Cross-currency swaps 899 — (17) 43 Foreign exchange risk Cross-currency swaps 899 — (17) 55 Cash flow hedge Foreign exchange risk Cross-currency swaps 515 13 — 24 2021 Notional amount of hedging instrument US$m Carrying amount of hedging instrument Changes in fair value used for calculating hedge ineectiveness (Note 15(c)) US$m Assets US$m Liabilities US$m Fair value hedges Interest rate risk Interest rate swaps 507 5 — 31 Cross-currency swaps 899 81 — 10 Foreign exchange risk Cross-currency swaps 899 81 — (85) Cash flow hedge Foreign exchange risk Cross-currency swaps 515 37 — (35) Interest r ate and cross-currency swaps are r eported within Other financial assets and Other financial liabilities in the Group ba lance sheet. 30. Financial assets and liabilities c ontinued (ii) Analysis of hedging instruments continued Experian plc Financial statements 202 (e) Impact of hedged items 2022 2021 Carrying amount of hedged item Accumulated amount of fair value hedge adjustments included in the carrying amount of the hedged item Changes in fair value used for calculating hedge ineectiveness (Note 15(c)) US$m Carrying amount of hedged item Accumulated amount of fair value hedge adjustments included in the carrying amount of the hedged item Changes in fair value used for calculating hedge ineectiveness (Note 15(c)) US$m Liabilities Liabilities US$m US$m US$m US$m Fair value hedges Interest rate risk Borrowings (1,165) (31) (69) (1,494) 40 (35) Foreign exchange risk Borrowings (886) (5) (51) (987) 43 81 Cash flow hedge Foreign exchange risk Borrowings (525) n/a (24) (551) n/a 35 The hedging reserve at 31 Mar ch 2022 includes US$4m (2021: US$2m) in respect of the cash flow hedge. Borrowings are r eported wit hin Borrowings in the Group balance sheet. (f) Impact of hedge ineectiveness Fair value hedges (Note 15(c)) 2022 US$m 2021 US$m Interest rate risk (7) 6 Foreign exchange risk 4 (4) (Gains)/losses on items in hedging relationships – hedge ineectiveness (3) 2 Hedge ineectiveness is reported within Net finance costs in the Gr oup income statement. (g) Analysis by valuation method for put options and items measur ed at fair value 2022 2021 Level 1 US$m Level 2 US$m Level 3 US$m Total US$m Level 1 US$m Level 2 US$m Level 3 US$m Total US$m Financial assets: Derivatives used for hedging – fair value hedges — — — — — 86 — 86 Non-hedging derivatives — 69 — 6 9 — 4 2 — 42 Other financial assets at fair value through profit or loss — — 1 8 18 — — 12 1 2 Financial assets at fair value through profit or loss (note 30(b)) — 69 18 87 — 128 12 140 Derivatives used for hedging – cash flow hedge — 1 3 — 1 3 — 37 — 37 Listed and trade investments 67 — 295 362 44 — 164 208 Financial assets revalued through OCI (note 30(a)) 67 13 295 375 44 37 164 245 67 82 313 462 44 165 176 385 Financial liabilities: Derivatives used for hedging – fair value hedges — (34) — (34) — — — — Non-hedging derivatives — (24) — (24) — (74) — (74) Other liabilities at fair value through profit or loss — — (107) (107) — — (66) (66) Financial liabilities at fair value through profit or loss (note 30(b)) — (58) (107) (165) — (74) (66) (140) Options in respect of non-controlling interests — — (190) (190) — — (220) (220) — (58) (297) (355) — (74) (286) (360) Net financial assets/(liabilities) 67 24 16 107 44 91 (110) 25 30. Financial assets and liabilities c ontinued 203 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued The analysis by level is a requir ement of IFRS 13 and the definitions are summarised here for completeness: a assets and liabilities whose valuations are based on unadjusted quoted prices in active markets for identical assets and liabil ities are classified as Level1 a assets and liabilities which are not traded in an active market, and whose valuations are derived from a vailable market data th at is observable for the asset or liability , ar e classified as Level 2; and a assets and liabilities whose valuations are derived from inputs not based on observ able market data are classified as Level 3. Level 3 items principally comprise minority shareholdings in unlisted businesses, trade in vestments, contingent consider ation a nd put options associated with corporate tr ansactions. Unlisted equity investments, initially measured at cost, are rev alued where sucient indicator s are identified that a change in the fair value has occurr ed. The inputs to any subsequent valuations ar e based on a combination of observable evidence from external tr ansactions in the investee’s equity and estimated discounted cash flows that will arise fr om the investment. Valuations of material contingent consider ation, and put options associated with corporate tr ansactions, are based on Monte Carlo simulations using the most r ecent management expectations of relevant business performance, reflecting the dier ent contractual arr angements in place. There would be no material eect on the amounts stated fr om any reasonably possible change in such inputs at 31 Mar ch 2022. During the y ear ended 31 March 2022 a Level 3 investment has been r eclassified to Level 1. Further details ar e provided in note 30(h). There wer e no t ransfers between levels during the prior year . (h) Analysis of movements in Lev el 3 financial assets/(liabilities) Year ended 31 March 2022 Year ended 31 March 2021 Financial assets revalued through OCI US$m Other financial assets at FVPL US$m Contingent consideration US$m Put options US$m Total US$m Financial assets revalued through OCI US$m Other financial assets at FVPL US$m Contingent consideration US$m Put options US$m Total US$m At 1 April 164 12 (66) (220) (110) 139 26 (29) (13) 123 Additions¹ , ² 24 8 (46) (11) (25) 24 7 (33) (208) (210) Reclassification of associate to trade investment (note 23) 1 38 — — — 1 38 — — — — — Reclassification of Level 3 investment to Level 1³ (30) — — — (30) — — — — — Disposals (12) — — — (12) — (24) — — (24) Settlement of contingent consideration — — 3 6 — 36 — — — — — Cash payment on exercise of put option — — — 4 4 — — — — — Adjustment to the fair value of contingent consideration — — (26) — (26) — — (1 ) — (1 ) Valuation gains recognised in the Group income statement — — — 29 2 9 — 3 — 13 1 6 Valuation gains recognised in OCI 10 — — — 10 — — — — — Currency translation gains/(losses) recognised directly in OCI (2) — (6) 8 — 1 — (3) (12) (14) Other 3 (2 ) 1 — 2 — — — — — At 31 March 295 18 (107) (190) 16 164 12 (66) (220) (110) 1 Additions to put options in the year ended 31 March 2022 included US$13m in respect of the acquisition of Servicios de Información A vanzada Comercial Y Financiera S.A. (Sinacofi Bur ó), and in the year ended 31March 2021 comprised US$201m in respect of the acquisition of the Risk Management division of AFS, and US$7m for the acquisition of Brain Soluções de T ecnologia Digital Ltda. 2 Additions to contingent consideration comprised US$46m (2021: US$33m) in respect of acquisitions. 3 Our investment in Grab Holdings Limited has been reclassified as a Level 1 investment following Nasdaq listing. 4 Movements in the present value of expected future payments for put options are unr ealised and are recognised in financing fair value remeasur ements in the Group income statement. 30. Financial assets and liabilities c ontinued (g) Analysis by valuation method for put options and items measur ed at fair value continued Experian plc Financial statements 204 31. F air value methodology Information in respect of the c arrying amounts and the fair value of borrowings is included in note 27(a). Ther e are no material dier ences between the carrying value of the Gr oup’s other financial assets and liabilities not measured at fair value and their estimated fair v alues. The following assumptions and methods are used to estimate the fair values: a the fair values of receivables, payables and cash and cash equiv alents are consider ed to approximate to the c arrying amounts; a the fair values of short-term borrowings, other than bonds, ar e considered to approximate to the c arrying amounts due to the short maturity terms of such instruments; a the fair value of that portion of bonds carried at amortised cost is based on quoted market prices, employing a v aluation methodology falling within Level 1 of the IFRS 13 fair value hier archy; a the fair values of long-term variable rate bank loans and lease obligations ar e considered to appr oximate to the carrying amount; and a the fair values of other financial assets and liabilities are calculated based on a discounted cash flow analy sis, using a valuat ion methodology falling within Level 2 of the IFRS 13 fair value hier archy , apart from the fair value of tr ade investments and contingent consideration which use a valuation methodology falling within Level 3 of the IFRS 13 fair value hier archy . 32. Contr actual undiscounted future c ash flows for financial liabilities At 31 March 2022 Less than one year US$m One to two years US$m Two to three years US$m Three to four years US$m Four to five years US$m Over five years US$m Total US$m Borrowings 146 141 647 625 642 2,609 4,810 Net settled derivative financial instruments – interest rate swaps 6 5 — (1) (1) (7) 2 Gross settled derivative financial instruments: Outflows for derivative contracts 861 19 411 12 506 — 1,809 Inflows for derivative contracts (839) (15) (409) (7) (506) — (1,776) Gross settled derivative financial instruments 22 4 2 5 — — 3 3 Options in respect of acquisitions and non-controlling interests 2 — — 8 16 8 1 8 1 96 Trade and other payables 60 4 74 4 1 8 3 69 4 Cash outflows 780 224 653 638 817 2,623 5,735 At 31 March 2021 Less than one year US$m One to two years US$m Two to three years US$m Three to four years US$m Four to five years US$m Over five years US$m Total US$m Borrowings 749 138 124 660 639 2,704 5,014 Net settled derivative financial instruments – interest rate swaps 28 26 19 11 8 6 98 Gross settled derivative financial instruments: Outflows for derivative contracts 545 — — — — — 545 Inflows for derivative contracts (539) — — — — — (539) Gross settled derivative financial instruments 6 — — — — — 6 Options in respect of non-controlling interests 7 — — — 11 202 220 Trade and other payables 562 43 — — — 2 607 Cash outflows 1,352 207 143 671 658 2,914 5,945 The table above analyses financial liabilities into maturity groupings, based on the period from the balance sheet date to the c ontr actual maturity date. As the amounts disclosed are the contr actual undiscounted cash flows, they dier from the carrying values and fair values. Contractual undiscounted future c ash outflows for derivative financial liabilities in total amount to US$35m (2021: US$104m). 205 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 33. Shar e incentive plans (a) Cost of share-based compensation 2022 US$m 2021 US$m Share awards 142 99 Share options 7 7 Expense recognised (all equity-settled) 149 106 Charge for associated social security obligations 9 5 Total expense recognised in the Group income statement 158 111 The Group has a number of equity -settled, shar e-based employee incentive plans. F urther information on share award arr angements is given in note 33(b). As the number s of share options gr anted or outstanding and the related charge to the Gr oup income statement are not sign ificant, no further disclosures ar e included in these financial statements. (b) Share awar ds (i) Summary of arrangements and performance conditions There ar e three plans under which shar e awards are curr ently granted – the two Experian Co-investment Plans (the CIP) and the E xperian Performance Share Plan (the PSP). Awar ds typically take the form of a gr ant of free shares which vest over a service period of three y ears, with a maximum term generally of the same length, and are settled by share distribution. The assumption at grant date for employ ee departures prior to vesting is 20% for certain unconditional awards, which are only made under the PSP . Other details in r espect of conditional awards are given below . During the year ended 31 March 2021, a one-o award was made under the PSP to employees who are not eligible to participate in existing shar e award schemes. These awards had no service or performance conditions attached and vested immediately . P articipants who hold the share s r eceived for three years will be entitled to r eceive two matching shares for each share they originally r eceived. The gr ant date assumption is tha t 30% of these matching awards will not vest. CIP F or the purposes of IFRS 2, the gr ant date for these plans is the start of the financial year in which performance is assessed. This is before the number of shares to be awar ded is determined but the underlying value of the award is known, subject to the outcome of the performance co ndition. The value of awarded shar es reflects the performance outcome assumed at the date of their issue to participants and is r ecognised over a four -year period. The range of performance conditions for awar ds under these plans is set out below . The Pr ofit performance condition requir es adj usted Benchmark EPS growth at the stated per centages over a three-y ear period. The cumulative Benchmark oper ating cash flow performance condition (t he Cash flow condition) is based on cumulative Benchmark operating c ash flow over a three-y ear period. The period of assessment commences at the beginning of the financial year of gr ant. These ar e not market-based performance conditions as defined by IFRS 2. PSP The range of Pr ofit performance conditions for conditional awards under this plan is the same as those for the CIP described abo ve. The R eturn on Capital Employed condition (ROCE condition) requir es average ROCE over the period at the percentages stated below . Both these c onditions ar e not market-based performance conditions as defined by IFRS 2 and ar e also measured over a thr ee-year period commencing at the beginn ing of the financial year of gr ant. The TSR performance condition is considered a mark et-based performance condition as defined by IFRS 2. In valuing the awarded sh ar es, TSR is evaluated using a Monte Carlo simulation, with historic volatilities and correlations for compar ator companies measured over th e thr ee-year period preceding valuation and an implied volatility for Experian plc or dinary shares. Experian plc Financial statements 206 Year ended 31 March 2022 31 March 2021 31 March 2020 CIP PSP CIP PSP CIP PSP Profit condition: Proportion of awards subject to condition 50% 50% 50% 50% 50% 50% Minimum payout requirement 5% per annum 5% per annum 3% per annum 3% per annum 5% per annum 5% per annum Target payout requirement 7% per annum 7% per annum 4% per annum 4% per annum 6% per annum 6% per annum Maximum payout requirement 10% per annum 10% per annum 7% per annum 7% per annum 9% per annum 9% per annum Assumed outcome at grant date 66.7% 66.7% 77.8% 77.8% 66.7% 66.7% Cash flow condition: Proportion of awards subject to condition 50% 50% 50% Minimum payout requirement US$4.0bn US$3.7bn US$3.7bn Target payout requirement US$4.2bn US$3.8bn US$3.8bn Maximum payout requirement US$4.4bn US$4.1bn US$4.1bn Assumed outcome at grant date 64.5% 77.8% 77.2% ROCE condition: Proportion of awards subject to condition 25% 25% 25% Minimum payout requirement 14.5 % per annum 14.5% per annum 14.5% per annum Target payout requirement 15.4 % per annum 15.4% per annum 15.4% per annum Maximum payout requirement 16.0 % per annum 16.0% per annum 16.0% per annum Assumed outcome at grant date 72% 83% 75% TSR condition: Proportion of awards subject to condition 25% 25% 25% Assumed outcome at grant date 61.8% 61.8% 61.8% (ii) Information on share grant valuations Share gr ants are v alued by reference to the mark et price on the day of award, with no modification for dividend distributions or other factors, as participants are entitled to dividend distributions on awar ded shares. Market-based performance conditions ar e included in the fair value measurement on the grant date and ar e not revised for actual performance. Awards gr anted in the year ended 31 March 2022 had a weighted ave r age fair value per share of £27.25 (2021: £26.84). (iii) Share awards outstanding 2022 million 2021 million At 1 April 10.9 12.2 Grants 4.6 4.1 Forfeitures (0.8) (0.5) Lapse of awards (0.3) (0.3) Vesting (3.3) (4.6) At 31 March 11.1 10.9 Analysis by plan: CIP 3.6 3.5 PSP – conditional awards 2.7 3.0 PSP – unconditional awards 4.8 4.4 At 31 March 11.1 10.9 33. Shar e incentive plans continued (i) Summary of arrangements and performance conditions continued 207 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 34. Post -employment benefit plans and r elated risks An overview of the Group’s post -employment benefit plans and the related risks is given below . The additional information requir ed by IAS 19, which relates only to the Gr oup’s defined benefit pension plans and post-employment medical benefits obligations, is set out in note 35. (a) Funded pension plans The Group’s principal defined benefit plan is the Experian Pension Scheme, which provides benefits for certain UK employees. The plan was closed to new entrants in 2009. On 1 September 2021, the outcome of a consultation with active members of the plan, on the pr oposal to ce ase future accrual of new benefits, was determined. The plan was closed to the future accrual of new benefits from 1 April 2022, and active member bene fits were crystallised as deferred pensions fr om that date. No material impact on the Group’s net post-employment benefit assets r esulted from this change. All UK employees were oer ed membership of the Group’s UK defined contribution plan from April 2022. The Experian Pension Scheme has rules which specify the benefits to be paid, with the level of pension benefit that an employ ee w ill receive on retir ement dependent on age, length of service and salary . As at 31 March 2022, there wer e 86 (2021: 95) active members of this plan, 1,239 (2021: 1,309) deferred members and 2,462 (2021: 2,494) pensioner member s. The Group pr ovides a defined contribution plan to other eligible UK employees. This was formerly the Experian Retirement Savings Plan (ERSP), however during the year a new plan was launched, namely the Experian Pensions Savings Plan, which is part of a mastertrust arr angement managed by Legal and General Gr oup plc. The assets of the Experian Retir ement Savings Plan were tr ansferred to the Experian Pensions Savings Pla n during February 2022. Under this new plan, as before, employee and employer contributions ar e paid by the Group into an independently administe red fund, which is used to fund member pensions at retir ement. As at 31 Mar ch 2022, ther e were 3,195 active members of this plan (2021 ERSP: 3,080). UK pension plans are governed by trust deeds, which ensure that their finances and governance ar e independent from those of the Group. T rustees are responsible for overseeing the in vestments and funding of the plans and plan administration. The UK pensions envir onment is reg ulated by The Pensions Regulator whose statutory objectives and r egulatory powers are described on its website at www .thepensionsregulator .gov .uk. A full actuarial funding valuation of the Experian Pension Scheme is carried out every thr ee years, with interim r eviews in the intervening years. The latest full valuation was carried out as at 31 Mar ch 2019 by independent qualified actuaries Mercer Limited, using the projected unit cr edit method and there was a small funding surplus. The next full valuation will be c arried out as at 31 March 2022. Employees in the USA, Br azil and South Africa have the option to join local defined contribution plans and, as at 31 March 2022, there wer e 4,666 (2021: 4,455) active members in the USA, 1,151 (2021: 1,100) in Br azil and 513 (2021: 485) in South Africa. Ther e are no other material funded pension arrangements. (b) Unfunded pension arrangements The Group’s unfunded pension arr angements were designed to ensur e that certain senior managers who are aected by the earnings c ap, which was introduced by the UK government some year s ago to set a ceiling on the amount of benefits that could be paid by defined benefit pe nsion plans, ar e placed in broadly the same position as those who ar e not. Ther e are also unfunded arrangements for certain former dir ectors and employees of Experian Finance plc and Experian Limited. Certain of these unfunded arr angements in the UK have been secured by the grant to an independent trustee of charges over an independently managed portfolio of marketable securities owned by the Gr oup and reported as financial assets rev alued through OCI (note 30(a)). (c) Post-employment medic al benefits The Group oper ates a plan which provides post -employment medical benefits to certain retir ed employees and their dependant relat ives. This plan relates to former employees in the UK and, under it, the Group has undertaken to meet the cost of post -employment medical benefi ts for all eligible former employees who retir ed prior to 1 April 1994 and their dependants. (d) Related risks Through its defined benefit pension plans and post -employment medical benefits plan, the Gr oup is exposed to a number of risks that are inherent in such plans and arrangements, which can be summarised as follows: a asset value volatility , with the associated impact on the assets held in connection with the funding of pension obligations and the related cash flow s; a changes in bond yields, with any reduction r esulting in an increase in the pr esent value of pension obligations, mitigated by an increase in the value of plan assets; a inflation, as pension obligations are gener ally linked to inflation and the prev ailing rate of inflation experienced for medic al benefits is typically higher than other inflation measures in the UK; and a life expectancy , as pension and medic al benefits are gener ally provided for the life of beneficiaries and their dependants. There ar e no unusual, entity -specific or plan-specific risks, and no signific ant concentrations of risk. Experian plc Financial statements 208 35. Post -employment benefits – IAS 19 information (a) Post-employment benefit amounts r ecognised in the Group financial statements (i) Balance sheet assets/(obligations) 2022 US$m 2021 US$m Retirement benefit assets/(obligations) – funded defined benefit plans: Fair value of funded plans’ assets 1,214 1,274 Present value of funded plans’ obligations (998) (1,172) Assets in the Group balance sheet for funded defined benefit pensions 216 102 Obligations for unfunded post-employment benefits: Present value of defined benefit pensions – unfunded plans (48) (51) Present value of post-employment medical benefits (4) (4) Liabilities in the Group balance sheet (52) (55) Net post-employment benefit assets 164 47 Pension assets are deemed to be r ecoverable and ther e are no adjustments in respect of minimum funding requir ements as, under the rules of the UK Experian Pension Scheme, futur e economic benefits are available to the Group in the form of r eductions in future contributions or refunds of surplus. (ii) Income statement charge 2022 US$m 2021 US$m By nature of expense: Current service cost 5 4 Administration expenses 3 2 Charge within labour costs and operating profit 8 6 Interest income (1) (1) Total net charge to the Group income statement 7 5 The income statement charge and the r emeasurement r ecognised in the Statement of comprehensive income relate to defined benefit p ension plans. (b) Movements in net post-employment benefit assets/(obligations) r ecognised in the Group balance sheet Fair value of plan assets US$m Present value of obligations Movements in net position US$m Defined benefit pensions – funded US$m Defined benefit pensions – unfunded US$m Post- employment medical benefits US$m Total US$m At 1 April 2021 1,274 (1,172) (51) (4) (1,227) 47 Income statement (charge)/credit: Current service cost — (5) — — (5) (5) Administration expenses (3 ) — — — — (3 ) Interest income/(expense) 25 (23) (1) — (24) 1 Total (charge)/credit to the Group income statement 22 (28) (1) — (29) (7) Remeasurements: Return on plan assets other than interest 19 — — — — 19 Gains from change in demographic assumptions — 1 — — 1 1 Gains from change in financial assumptions — 87 2 — 8 9 89 Experience gains/(losses) — 13 (1) — 12 12 Remeasurement of post-employment benefit assets and obligations 19 101 1 — 102 121 Dierences on exchange (60) 52 1 — 53 (7) Contributions paid by the Group and employees 11 (1) — — (1) 10 Benefits paid (52) 50 2 — 52 — At 31 March 2022 1,214 (998) (48) (4) (1,050) 164 209 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued Fair value of plan assets US$m Present value of obligations Movements in net position US$m Defined benefit pensions – funded US$m Defined benefit pensions – unfunded US$m Post- employment medical benefits US$m Total US$m At 1 April 2020 1,023 (940) (44) (4) (988) 35 Income statement (charge)/credit: Current service cost — (4) — — (4) (4) Administration expenses — (2) — — (2) (2) Interest income/(expense) 23 (21) (1) — (22) 1 Total (charge)/credit to the Group income statement 23 (27) (1) — (28) (5) Remeasurements: Return on plan assets other than interest 142 — — — — 142 Gains from change in demographic assumptions — 2 — — 2 2 Losses from change in financial assumptions — (137) (5) — (142) (142) Remeasurement of post-employment benefit assets and obligations 142 (135) (5) — (140) 2 Dierences on exchange 121 (112) (3) (1) (116) 5 Contributions paid by the Group and employees 11 (1) — — (1) 10 Benefits paid (46) 43 2 1 46 — At 31 March 2021 1,274 (1,172) (51) (4) (1,227) 47 (c) Actuarial assumptions and sensitivities The accounting valuations at 31 March 2022 ha ve been based on the most recent actuarial valuations, updated to take account of the requirements of IAS 19. The assumptions for the real discount r ate, pension incr eases and mortality , used to calculate the pr esent value of the defined benefit obligations, all have a significant eect on the accounting valuation. Changes to these assumptions in the light of prevailing conditions may ha ve a significant impact on future v aluations. Indic ations of the sensitivity of the amounts reported at 31 Mar ch 2022 to changes in the real discount r ate, pension incr eases, life expectancy and medic al costs ar e included below . The pension increase assumption is aected by the way that futur e volatility of the inflation assumption is modelled. F ollowing guidance from our actuarial advisors, this model has been revised in the year ended 31 Mar ch 2022 to be consistent with the model used by the Experian Pension Scheme T rustee for funding purposes. The change in estimation approach r educed retirement benefit obligations at 31 March 2022 by appr o ximately US$3m. The other methods and assumptions used are consistent with those used in the prior year , with the exception of the assumption for incr ease in salaries. The Scheme was closed to the future accrual of new benefits fr om 1 April 2022 and consequently no further assumption is requir ed for future pensionable salary growth. The absolute sensitivity numbers are stated on a basis consistent with the methodology used in determining the accounting v aluation as at 31 March 2022. The methodology evaluates the eect of a change in each assumption on the relev ant obligations, while holding all other a ssumptions constant. (i) Financial actuarial assumptions 2022 % p.a. 2021 % p.a. Discount rate 2.8 2.0 Inflation rate – based on the UK Retail Prices Index (the RPI) 3.8 3.3 Inflation rate – based on the UK Consumer Prices Index (the CPI) 3.3 2.8 Increase in salaries n/a 2.8 Increase for pensions in payment – element based on the RPI (where cap is 5%) 3.4 3.0 Increase for pensions in payment – element based on the CPI (where cap is 2.5%) 2.0 1.9 Increase for pensions in payment – element based on the CPI (where cap is 3%) 2.3 2.2 Increase for pensions in deferment 3.3 2.8 Inflation in medical costs 6.8 6.3 The principal financial assumption is the real discount r ate, which is the excess of the discount r ate over the rate of inflation . The discount r ate is based on the market yields on high-quality corpor ate bonds of a currency and term appropriate to the defined benefit obligations. In the case of the Experian Pension Scheme, the obligations ar e in pounds sterling and have a maturity on average of 16 years. If the real discount rate in cr eased/decreased by 0.1%, the defined benefit obligations at 31 Mar ch 2022 would decrease/incr ease by approximately US$16m and the fair v alue of plan assets would decrease/incr ease by approximately US$18m. There would be no impact on any futur e annual current service cost, due to the closure of the plan to accrual from 1 April 2022. 35. Post -employment benefits – IAS 19 information c ontinued (b) Movements in net post-employment benefit assets/(obligations) r ecognised in the Group balance sheet continued Experian plc Financial statements 210 35. Post -employment benefits – IAS 19 information c ontinued The rates of incr ease for pensions in payment reflect the separ ate arrangements applying to dierent gr oups of Experian’s pensio ners. If the inflation rate underlying the pension incr eases (both in payment and in deferment) increased/decr eased by 0.1%, the defined benefit obligat ions at 31 Mar ch 2022 would increase/decr ease by approximately US$13m. (ii) Mortality assumptions – average life e xpectancy on retirement at age 65 in normal health 2022 years 2021 years For a male currently aged 65 22.6 22.6 For a female currently aged 65 24.5 24.5 For a male currently aged 50 23.5 23.5 For a female currently aged 50 25.6 25.6 The accounting valuation assumes that mortality will be in line with standard tables adjusted to r eflect the expected experience of the Experian Pension Scheme membership, based on analysis carried out for the 2019 actuarial valuation. A specific allowance for anticipated future i mprovements in life expectancy is also incorporated. While COVID-19 has had an impact on mortality in FY22, the impact on futur e mortality trends i s curr ently unknown and consequently no adjustment has been made to mortality assumptions in this regar d. An incr ease in assumed life expectancy of 0.1 years would increase the defined benefit obligations at 31 March 2022 by appr oximately US$4m. (iii) Post-employment medic al benefits The accounting valuation in respect of post -employment medical benefits assumes a rate of increase for medic al costs. If this r ate increased/decreased by 1.0% per annum, the obligations at 31 Mar ch 2022 and the finance expense would remain unchanged. (d) Assets of the Group’s defined benefit plans at fair value 2022 2021 US$m % US$m % UK equities 5 1 7 1 Overseas equities 141 12 208 16 Index-linked gilts 450 37 447 35 Global corporate bonds 355 29 404 32 Secured credit 184 15 130 10 Other unlisted 52 4 49 4 Other 27 2 29 2 1,214 100 1,274 100 The Experian Pension Scheme investment str ategy aims to reduce investment risk and funding volatility . With the exception of a tar get 5% allocation to senior private debt, all other assets are regar ded as being readily marketable and regularly tr aded. The T rustee has adopted funding-based triggers to implement further de-risking of the investment strategy as conditions allow . As a result, during the year the target alloc ation to equities was reduced fr om 15% to 10%. These trigger s will be kept under review . Over time, the Scheme is expected to increase its alloc ation to liability matching assets, to pr ovide cash flows to match expected benefit payments. The T rustee believes that Environmental, Social and Governance (ESG) factors may have a material impact on investment risk and r eturn outcomes. ESGfactors, including climate change and stewardship, are increasingly integr ated within investment processes both in appointi ng new investment managers and in monitoring existing investment managers. Monitoring is undertaken and documented on a regular basis, making use of the in vestment consultant’s ESG rating fr amework. The Group’s defined benefit plans have no holdings of or dinary shares or borr owings of the Company . (e) Futur e contributions There was a small funding deficit at the date of the 2016 full actuarial valuation of the Experian P ension Scheme. T o correct th e shortfall the employer agreed to pay additional contributions of US$4m per annum over five year s from 1 April 2017. The employer agreed to continue to pay these contributions notwithstanding the small surplus recognised following the 2019 full actuarial valuation, and the final additional contribution was paid inthe year . As a result of the closur e of the Experian Pension Scheme to future accrual, the employer has agreed to pay an additional voluntary contribution equal to20% of the base salary of participating employees. This payment will be paid either to the Experian Pension Scheme or to the Group’s UK defined contribution plan, at the employ ees’ option, and US$1m is curr ently expected to be paid to the Experian Pension Scheme during the year ending 31March 2023. 211 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 36. Deferr ed and current tax (a) Deferred tax (i) Net deferred tax assets/(liabilities) 2022 US$m 2021 US$m At 1 April (275) (95) Dierences on exchange (7) 4 Tax credit/(charge) in the Group income statement – continuing operations (note 16(a)) 18 (80) Additions through business combinations (22) (100) Tax recognised within OCI (22) (1) Tax recognised directly in equity on transactions with owners 1 (3) At 31 March (307) (275) Presented in the Group balance sheet as: Deferred tax assets 46 86 Deferred tax liabilities (353) (361) (307) (275) T ax recognised in Other comprehensive income is in respect of the r emeasurement of post-employment benefit assets and obligations. (ii) Movements in gross deferred tax assets and liabilities Assets Intangibles US$m Tax losses US$m Share incentive plans US$m Accelerated depreciation US$m Other US$m Total US$m At 1 April 2021 226 108 36 18 142 530 Dierences on exchange 37 — — (1) 3 39 Tax recognised in the Group income statement 6 (12) 14 8 34 50 Tax recognised within OCI — — — — (10) (10) Tax recognised directly in equity on transactions with owners — — 1 — — 1 Transfers 1 — (1) (1) — (1) At 31 March 2022 270 96 50 24 169 609 Assets Intangibles US$m Tax losses US$m Share incentive plans US$m Accelerated depreciation US$m Other US$m Total US$m At 1 April 2020 246 94 35 10 215 600 Dierences on exchange (12) (2) 1 1 2 (10) Tax recognised in the Group income statement (8) 16 3 7 (77) (59) Tax recognised within OCI — — — — (1) (1) Tax recognised directly in equity on transactions with owners — — (3) — — (3) Transfers — — — — 3 3 At 31 March 2021 226 108 36 18 142 530 Experian plc Financial statements 212 Liabilities Intangibles US$m Accelerated depreciation US$m Other US$m Total US$m At 1 April 2021 759 27 19 805 Dierences on exchange 49 — (3) 46 Tax recognised in the Group income statement 19 6 7 3 2 Tax recognised within OCI — — 1 2 12 Additions through business combinations 19 — 3 22 Transfers 1 (1) (1) (1) At 31 March 2022 847 32 37 916 Liabilities Intangibles US$m Accelerated depreciation US$m Other US$m Total US$m At 1 April 2020 650 24 21 695 Dierences on exchange (14) (2) 2 (14) Tax recognised in the Group income statement 23 2 (4) 21 Additions through business combinations 100 — — 100 Transfers — 3 — 3 At 31 March 2021 759 27 19 805 These movements do not take into consider ation the osetting of assets and liabilities within the same tax jurisdiction. Items classified as Other assets in the above analyses predominantly r elate to future tax benefits deferred in line with local tax laws. (iii) Other information on deferred tax assets and liabilities As set out in note 5, ther e are a number of critic al judgments in assessing the recognition of deferred tax assets. The Group h as not recognised deferr ed tax on losses of US$641m (2021: US$581m) that could be utilised against future taxable income or on US$265m (2021: US$282m) in r espect of capital losses that could be utilised against future taxable gains. While these losses ar e available indefinitely , they ha ve arisen in undertakings in which it is not currently anticipated that futur e benefit will be available fr om their use. The c apital losses arising on investments are av aila ble for use within five years, and future taxable gains against which the c apital losses could be utilised are not currently anticipated. There ar e retained earnings of US$9,699m (2021: US$8,980m) in subsidiary undertakings which could be subject to tax if r emitted to Experian plc. No deferred tax liability has been r ecognised on these earnings because the Group is in a position to contr ol the timing of the re versal of the temporary dierence and it is pr obable that such dierences will not r everse in the foreseeable futur e. Given the mix of countries and ta x rates, it is not practic able to determine the impact of such remittance. During the current year the main r ate of UK corporation tax was 19% (2021: 19%). Deferr ed tax is recognised at the rate pr evailing when tempor ary dierences ar e expected to reverse. (b) Net current tax assets/(liabilities) Notes 2022 US$m 2021 US$m At 1 April (142) (197) Dierences on exchange 3 (1) Tax charge in the Group income statement – continuing operations 16(a) (314) (195) Tax credit in the Group income statement – discontinued operations 17 16 — Additions through business combinations — 10 Tax recognised directly in equity on transactions with owners (1) 5 Other tax paid 366 236 At 31 March (72) (142) Presented in the Group balance sheet as: Current tax assets 37 34 Current tax liabilities (109) (176) (72) (142) T ax recognised directly in equity on tr ansactions with owners relates to employee shar e incentive plans. 36. Deferr ed and current tax continued (ii) Movements in gross deferred tax assets and liabilities continued 213 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 37. Pr ovisions 2022 2021 North America legal claims US$m North America security incident costs US$m Other liabilities US$m Total US$m North America legal claims US$m North America security incident costs US$m Other liabilities US$m Total US$m At 1 April 2 8 1 7 27 30 — 18 48 Dierences on exchange — — 3 3 — — (2) (2) Amounts charged in the year 2 6 5 13 — 8 5 13 Utilised (2) — (4) (6) (28) — (4) (32) At 31 March 2 14 21 37 2 8 17 2 7 Presented in the Group balance sheet as: Current provisions 2 14 17 33 2 8 17 2 7 Non-current provisions — — 4 4 — — — — 2 14 21 37 2 8 17 2 7 In September 2015, Experian North Americ a suered an unauthorised intrusion to its Decision Analytics computing envir onment tha t allowed unauthorised acquisition of certain data belonging to a client, T -Mobile USA, Inc. W e notified the individuals who may have been aected and oered fr ee credit monitoring and identity theft r esolution services. In addition, government agencies were notified as r equired by law . We ha ve one remaining claim in respect of the incident and ar e working with the government bodies involved in this remaining claim. It is currently dicult to predict the r esult, including the timing and sc ale, but we do not believe the outcome will be material to the Gr oup. In the event of an unfavour able outcome, the Gr oup may benefit from applicable insur ance recoveries. Other liabilities principally comprise liabilities of Serasa S.A., in connection with local legal and tax issues, which were pr imarily r ecognised on its acquisition in 2007. 38. Called-up shar e capital and share premium ac count At 31 March 2022, there wer e 970.6m shares in issue (2021: 969.6m). During the year ended 31 March 2022, 1.0m (2021: 0.9m) shares were issued. No shares wer e cancelled during the current or prior y ear . F urther information on share capital is contained in note Q to the Comp any financial statements. The dierence between the amounts shown in the Gr oup and Company financial statements in respect of c alled-up share capital and the shar e premium account arose due to tr anslation of pound sterling amounts into the US dollar at various exchange rates on various tr anslation dates. 39. R etained earnings and other reserv es (a) Retained earnings Retained earnings comprise net profits r etained in the Group after the payment of equity dividends. Ther e are no signific ant statutory , contr actual or exchange control r estrictions on distributions by Group undertakings. (b) Other reserves (i) Movements in reserves Merger reserve US$m Hedging reserve US$m Translation reserve US$m Own shares reserve US$m Total other reserves US$m At 1 April 2021 (15,682) 13 (1,303) (1,006) (17,978) Purchase of shares by employee trusts — — — (61) (61) Purchase of shares held as treasury shares — — — (111) (111) Other vesting of awards and exercises of share options — — — 49 4 9 Change in the fair value of hedging instruments recognised in OCI — (24) — — (24) Amounts reclassified from OCI to the Group income statement — 26 — — 26 Currency translation gains — — 3 5 — 35 At 31 March 2022 (15,682) 15 (1,268) (1,129) (18,064) Experian plc Financial statements 214 Merger reserve US$m Hedging reserve US$m Translation reserve US$m Own shares reserve US$m Total other reserves US$m At 1 April 2020 (15,682) 11 (1,367) (1,183) (18,221) Shares delivered as consideration for acquisition — — — 90 90 Other vesting of awards and exercises of share options — — — 87 87 Change in the fair value of hedging instruments recognised in OCI — 35 — — 35 Amounts reclassified from OCI to the Group income statement — (33) — — (33) Currency translation gains — — 64 — 64 At 31 March 2021 (15,682) 13 (1,303) (1,006) (17,978) (ii) Nature of reserves The merger r eserve arose on the demer ger from GUS plc in 2006 and is the dierence between the shar e capital and share premium of GUS plc and the nominal value of the share c apital of the Company before a shar e oer at that date. Movements on the hedging reserve and the position at the balance sheet date r eflect hedging transactions, originating from the m anagement of foreign exchange risk, which ar e not charged or cr edited to the Group income statement, net of related tax. Movements on the translation r eserve and the position at the balance sheet date reflect for eign currency tr anslations since 1 Ap ril 2004 which ar e not charged or cr edited to the Group income statement, net of related tax. The movement in the year ended 31 Mar ch 2022 comprises currency tr anslation gains of US$35m (2021:US$64m) recognised dir ectly in Other comprehensive income. The balance on the own shares r eserve is the cost of ordinary shar es in the Company and further details are given in note 39(b) (iii). The dierence between the amounts shown in the Group and Company financial statements in r espect of this reserve arose due to tr anslation of pound sterling amounts into US dollars at dierent exchange r ates on dierent translation dates. (iii) Movements in own shares held and own shares r eserve Number of own shares held Cost of own shares held Treasury million Trusts million Total million Treasury US$m Trusts US$m Total US$m At 1 April 2021 52 4 56 871 135 1,006 Purchase of shares by employee trusts — 2 2 — 61 6 1 Purchase of shares held as treasury shares 3 — 3 1 11 — 11 1 Transfers (6) 6 — (87) 87 — Other vesting of awards and exercises of share options — (4) (4) (8) (41) (49) At 31 March 2022 49 8 57 887 242 1,129 Number of own shares held Cost of own shares held Treasury million Trusts million Total million Treasury US$m Trusts US$m Total US$m At 1 April 2020 60 8 68 973 210 1,183 Shares delivered as consideration for acquisition (7) — (7) (90) — (90) Other vesting of awards and exercises of share options (1) (4) (5) (12) (75) (87) At 31 March 2021 52 4 56 871 135 1,006 39. R etained earnings and other reserv es continued 215 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 40. Notes to the Gr oup cash flow statement (a) Cash generated fr om operations Notes 2022 US$m 2021 US$m Profit before tax 1,447 1,077 Share of post-tax loss/(profit) of associates 28 (21) Net finance (income)/costs (59) 127 Operating profit 1,416 1,183 (Profit)/loss on disposal of property, plant and equipment (4) 3 Loss on disposal of business 14(b) 43 — Net profit on disposal of associates 14(c), 23 (90) (120) Impairment of goodwill 20(a), 20(d) — 53 Impairment of other intangible assets 21 — 33 Impairment of property, plant and equipment 22 — 4 Amortisation and depreciation¹ 12 658 591 Charge in respect of share incentive plans 33(a) 149 106 Decrease/(increase) in working capital 40(b) 58 (13) Acquisition expenses – dierence between income statement charge and amount paid 7 (9) Adjustment to the fair value of contingent consideration 26 1 Movement in Exceptional and other non-benchmark items included in working capital 7 (10) Cash generated from operations 2,270 1,822 1 Amortisation and depreciation includes amortisation of acquisition intangibles of US$174m (2021: US$138m) which is excluded from Benchmark PBT . (b) Decrease/(increase) in working c apital 2022 US$m 2021 US$m Trade and other receivables (143) (31) Trade and other payables 201 18 Decrease/(increase) in working capital 58 (13) (c) Purchase of other intangible assets 2022 US$m 2021 US$m Databases 180 147 Internally generated software 236 197 Internal use software 29 30 Purchase of other intangible assets 445 374 (d) Cash flows on acquisitions (non-G AAP measure) 2022 US$m 2021 US$m Purchase of subsidiaries (note 41(a)) 706 568 Less: net cash acquired with subsidiaries (17) (47) Settlement of deferred and contingent consideration 47 5 As reported in the Group cash flow statement 736 526 Acquisition expenses paid 40 47 Settlement of put options held over shares in subsidiaries 4 — Transactions in respect of non-controlling interests 1 10 Cash outflow for acquisitions (non-GAAP measure) 781 583 Experian plc Financial statements 216 (e) Cash outflow/(inflow) in respect of net share pur chases (non-GAAP measur e) 2022 US$m 2021 US$m Issue of ordinary shares (24) (19) Purchase of shares by employee trusts 61 — Purchase of shares held as treasury shares 109 — Purchase of shares for Co-investment Plan delivery 3 — Cash outflow/(inflow) in respect of net share purchases (non-GAAP measure) 149 (19) As reported in the Group cash flow statement: Cash inflow in respect of shares issued (24) (19) Cash outflow in respect of share purchases 173 — Cash outflow/(inflow) in respect of net share purchases (non-GAAP measure) 149 (19) (f) Analysis of c ash and cash equivalents 2022 US$m 2021 US$m Cash and cash equivalents in the Group balance sheet 179 180 Bank overdrafts (3) (10) Cash and cash equivalents in the Group cash flow statement 176 170 (g) Reconciliation of Cash gener ated from oper ations to Benchmark operating c ash flow (non-GAAP measur e) Notes 2022 US$m 2021 US$m Cash generated from operations 40(a) 2,270 1,822 Purchase of other intangible assets 40(c) (445) (374) Purchase of property, plant and equipment (63) (48) Sale of property, plant and equipment 23 1 Principal lease payments (57) (56) Acquisition expenses paid 40 47 Dividends received from associates 13 17 Cash flows in respect of Exceptional and other non-benchmark items 19 67 Benchmark operating cash flow (non-GAAP measure) 1,800 1,476 Cash flow conversion for the year ended 31 Mar ch 2022 was 109% (2021: 106%). Benchmark fr ee cash flow for the year ended 31 Mar ch 2022, as set out in the Financial review within the Str ategic report, was US$1,311m (2021: US$1,124m). 40. Notes to the Gr oup cash flow statement continued 217 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 41. A cquisitions (a) Acquisitions in the year The Group made six acquisitions during the year ended 31 Mar ch 2022, including Gabi Personal Insur ance Agency , Inc. (Gabi) in the US A on 21 October 2021 for US$322m. This wholly owned digital insurance agency allows us to expand our pr esence in the auto and home insurance ve rtical. We also acquired the tr ade and assets of T ax Credit Co., LL C (TCC) in the USA on 13 April 2021, for a cash consideration of US$252m and contingent consider ation of up to US$110m, determined by r evenue and profit performance. This acquisition augments our expansion into income and employment verific ation services and the release of our new suite of r eal-time products, Experian V erify . In total provisional goodwill of US$469m was r ecognised based on the fair value of the net assets acquired of US$305m. Gabi US$m TCC US$m Other US$m Total US$m Intangible assets: Customer and other relationships 87 75 45 207 Software development 53 31 21 105 Marketing-related acquisition intangibles 1 1 7 9 Other non-acquisition intangibles — — (6) (6) Intangible assets 141 107 67 315 Property, plant and equipment — 1 3 4 Trade and other receivables 1 6 36 4 3 Cash and cash equivalents (note 40(d)) 6 2 9 17 Trade and other payables (5) (6) (39) (50) Borrowings — (1) (1) (2) Deferred tax liabilities (31) — 9 (22) Total identifiable net assets 112 109 84 305 Goodwill 214 165 90 469 Total 326 274 174 774 Satisfied by: Cash and cash equivalents (note 40(d)) 322 252 132 706 Put options — — 11 1 1 Deferred consideration — — 11 1 1 Contingent consideration 4 22 20 46 Total 326 274 174 774 These provisional fair values ar e determined by using established estimation techniques such as discounted cash flow and option valuation models; the most significant assumption being the r etention rates for customers. Provisional fair values contain amounts which will be finali sed no later than one year after the date of acquisition. Provisional amounts, predominantly for intangible assets and associated tax balances, have been included at 31 Mar ch 2022, as a consequence of the timing and complexity of the acquisitions. Goodwill represents the synergies, assembled workforces and future gr owth potential of the acquired businesses. The goodwill in relation to TCC and one other acquisition is curr ently deductible for tax purposes. Other also includes adjustments to goodwill of US$10m in respect of prior year acquisition pr ovisional amounts, principally for a reduction of US$15m to the deferred tax liability for BrSc an Processamento de Dados e T ecnologia Ltda, and a reduction of US$6m to the other non-acqui sition intangibles of T apad, Inc, both acquir ed in FY21. There have been no other material gains, losses, corrections or other adjustments r ecognised in the year ended 31 March 2022 th at r elate to acquisitions in the current or earlier year s. (b) Additional information (i) Current year acquisitions Gabi US$m TCC US$m Other US$m Total US$m Increase/(decrease) in book value of net assets from provisional fair value adjustments: Intangible assets 141 103 73 317 Trade and other payables (1) (2) (4) (7) Deferred tax liabilities (31) — 9 (22) Increase in book value of net assets from provisional fair value adjustments 109 101 78 288 Gross contractual amounts receivable in respect of trade and other receivables 1 6 34 4 1 Pro-forma revenue from 1 April 2021 to date of acquisition 6 — 12 1 8 Revenue from date of acquisition to 31 March 2022 5 59 29 93 Profit/(loss) before tax from date of acquisition to 31 March 2022 (2) 15 4 17 Experian plc Financial statements 218 At the dates of acquisition, the gr oss contractual amounts r eceivable in respect of trade and other r eceivables of US$41m wer e expected to be collected in full. If the transactions had occurr ed on the first day of the financial year , the estimated additional contribution to profit befor e ta x would have been US$3m. (ii) Prior years’ acquisitions Deferred consider ation of US$4m was settled in the year in respect of Corporate Cost Contr ol, Inc., and a further US$8m was settled in respect of the acquisition of Axesor businesses. Both acquisitions completed in FY21. In addition, US$31m was settled in respect of the FY20 acquisition of Look Who’s Charging Pty Ltd. In the year ended 31 March 2021 US$5m was settled in r espect of acquisitions made in earlier years, principal ly in r elation to the FY18 acquisitions of Clarity Services, Inc. and Runpath Group Limited. The Group made seven acquisitions in the year ended 31 Mar ch 2021 which included the acquisition of a 60% stake in the Risk Management division of Arvato Financial Solutions (AFS) and the whole of the issued share c apital of T apad, Inc. and BrSc an Processamento de Dados e T ecnologia Ltda. A cash outflow of US$521m was reported in the Gr oup cash flow statement for that year , after deduction of US$47m in respect of net cash acquired. (iii) Post balance sheet acquisitions On 1 April 2022 the Group completed the acquisition of the entir e share capital of BillFixer s, LL C, a provider of consumer bill negotiation services in the USA for US$5m, on 4 April 2022 we completed the acquisition of the entir e share capital of CIC Plus, Inc. and its aliate T ayva h, LL C, provider s of Aordable Car e Act compliance and related employer services, for a purchase consideration of US$187m, and on 5 May 2022 we comp leted the acquisition of the trade and assets comprising Salary Finance Limited’s Work R eport and National Employer Database in the UK fo r US$29m with contingent consideration of US$14m pay able on achievement of a number of integration and data cover age objectives. On 15 May 2022 we agreed to acquir e a majority stake in MOV A Sociedade de Empréstimo entre P essoas S.A. (MOV A), a leading FinT e ch in Brazil that provides cr edit capabilities and technology solutions to lenders in the SME market, for R$40m (c. US$8m), and contingent consider ation based on MOV A ’s calendar year 2024 net r evenues, the fair v alue of which is yet to be determined. We expect the tr ansaction to complete in FY23 , subject to r egulatory approval. We ha ve also signed an agreement to acquire a majority stak e in APC Buró in P anama, with completion expected in FY23. The fair values of goodwill, software development, customer relationships and other assets and liabilities in r espect of these acquisitions will be reported in the Experian Annual Report 2023, following completion of the initial accounting. 42. Assets classified as held-for-sale The Group has r eclassified a UK associate as held-for-sale. Additionally , Experian is planning to sell part of its existing UK p roperty portfolio and it is anticipated that this transaction will be completed in the y ear ending 31 March 2023. The assets relating to these tr ansactions , shown below , have been reclassified at 31 Mar ch 2022 as held-for-sale. Any gain or loss on disposal will be recognised in the year ending 31 Mar ch 2023 . US$m Assets classified as held-for-sale: Investment in associate (note 23) 29 Property, plant and equipment 12 Assets classified as held-for-sale 41 43. Disposal During the year we have ceased the oper ations of a small UK subsidiary undertaking whose principal business activity was the pr ovision and support of decision analytics software to corpor ate clients in Russia. As a result of r ecent geopolitical tensions we no longer continue to oper ate in the region, and consequently the related business and assets of this undertaking have been written o, resulting in a loss of US$43m, and a cas h outflow of US$1m. 44. Capital c ommitments 2022 US$m 2021 US$m Capital expenditure for which contracts have been placed: Other intangible assets 64 6 Property, plant and equipment 17 10 81 16 Capital commitments at 31 March 2022 included US$2m (2021: US$1m) in r espect of right-of-use assets. Capital commitments at 31 March 2022 included commitments of US$56m not expected to be incurred befor e 31 March 2023. All commitments at 31 March 2021 wer e expected to be incurred before 31 Mar ch 2022. Ther e were no material leases committed to that had not yet started at 31 March 2022 or 31 Mar ch 2021. 41. A cquisitions continued 219 Experian plc Annual Report 2022 Financial statements Notes to the Group financial statements continued 45. Contingencies (a) Latin America tax As previously indic ated, Ser asa S.A. has been advised that the Br azilian tax authorities are challenging the deduction for tax purposes of goodwill amortisation arising from its acquisition by Experian in 2007. The Br azilian courts have ultimately upheld Experian’s position in respect of the tax years from 2007 to 2011 with no further right of appeal. The Br azilian tax authorities have raised similar assessments in r espect of the 2012 to 2016 tax years, in which approximately US$162m was claimed, and may raise similar claims in respect of other year s. The possibility of this r es ulting in a liability to the Group is consider ed to be remote, on the basis of the advice of external legal counsel, success in c ases to date and other factors in respect of the claim. We note that a similar challenge has been r aised in Colombia in respect of the 2014 and 2016 tax years, in which approximately US$4m was claimed, and similar claims in respect of other year s may be raised. W e are contesting these on the basis of external legal advice. (b) UK marketing services regulation We ha ve received a final enforcement notice fr om the UK Information Commissioner ’s Oce (ICO) with respect to a 2018 audit of sever al companies on the use of data for marketing purposes under the EU Gener al Data Protection Regulation (GDPR), which relates to our marketing services activities in the UK. We disagr ee with the ICO’s decision and have appealed, during which time all requirements will be stay ed. At this stage we do not know what the final outcome will be, but it may r equire signific ant changes to business processes in our UK marketing services business. This business repr esents approximately 1% of our global r evenues and we do not expect this to result in a materially adverse financial outcome for the Gr oup. (c) Other litigation and claims There continue to be an incr easing number of pending and threatened claims and r egulatory actions involving the Group acr oss all its major geographies which are being vigor ously defended, including some that ar e in enforcement (fr om the Consumer Financial Protection Bureau in N orth America and the Information Commissioner’s Oce in the UK). The dir ectors do not believe that the outcome of any individual enforcement notice will have a materially adverse eect on the Group’s financial position. However , as is inherent in legal, regulatory and administr ative proceedings, there is a risk of outcomes that may be unfavour able to the Group. In the case of unfavour able outcomes, the Gr oup may benefit from applicable insur ance rec overies. 46. R elated party transactions (a) Related undertakings A full list of the Company’s related undertakings, including subsidiary and associate undertakings, is given in note T to the Compan y financial statements. There ar e no significant non-controlling inter ests. (b) T ransactions with associates F ollowing the divestment of CCM in the year ended 31 March 2018 the Gr oup owns 23.1% of the issued share capital of Vector CM Holdings (Cayman), L .P . (V ector). V ector completed a merger with the CM Gr oup involving its Cheetah Digital business on 4 F ebruary 2022. At the date of merger , a pr omissory note and associated interest due to Experian totalled US$110m (31 Mar ch 2021: US$102m). This was r epaid in full as a result of the merger . The Group no longer has significant influence over V ector and accordingly our interest in this company has been r ecognised as a trade inves tment fr om 4 February 2022. Interest of US$8m (2021: US$8m) was r eceived on the promissory note in the year . T ransactions with associates are made on normal market terms and in the y ear ended 31 March 2022 comprised the pr ovision and receipt of services to other associates of US$10m (2021: US$3m) and US$7m (2021: US$12m) respectively . At 31 March 2022 and 31 Mar ch 2021 no amounts w ere owed from or to associates, other than amounts owed by V ector at 31 March 2021. Experian plc Financial statements 220 (c) T ransactions with other related undertakings The Group tr ansacts with a number of related undertakings in connection with the oper ation of its share incentive plans, pension arr angements in the UK, the USA, Brazil, South Afric a, Germany and Ir eland, and the pr ovision of medical cover in the UK. These undertakings are li sted in note T(v) to the Company financial statements. T ransactional relationships c an be summarised as follows: a The assets, liabilities and expenses of the Experian UK Approved All-Employ ee Share Plan and The Experian plc Employ ee Share T r ust are included in these financial statements. a During the year ended 31 March 2022, US$56m (2021: US$57m) was paid by the Gr oup to related undertakings, in connection with th e provision of post-employment pensions benefits. Amounts paid to related undertakings have r educed during the year , following the tr ansition t o the new UK defined contribution plan, which is independently managed. US$3m (2021: US$3m) was paid to Experian Medical Plan Limited, in connection with the provision of healthc are benefits. a There were no other material tr ansactions or balances with these related undertakings during the curr ent or prior year . (d) Remuner ation of key management per sonnel 2022 US$m 2021 US$m Salaries and short-term employee benefits 12 10 Share incentive plans 17 11 29 21 Key management personnel comprises the Company’s executive and non-executive dir ectors and further details of their remuner atio n are given in the audited parts of the Report on director s’ remuner ation. Ther e were no other material transactions with the Gr oup in which the k ey management personnel had a personal inter est, in either the curr ent or prior year . 47. E vents occurring after the end of the r eporting period Details of the second interim dividend announced since the end of the reporting period ar e given in note 19. We completed the acquisitions of BillFixer s, LL C on 1 April 2022, CIC Plus, Inc. and its aliate T ayvah, LL C on 4 April 2022 and the trade and assets comprising Salary Finance Limited’s W ork Report and National Employer Database on 5 May 2022. On 15 May 2022 we agreed to acquir e a majority stake in MOV A Sociedade de Empréstimo entre P essoas S.A. in Br azil. F urther details are pr ovided in note 41(b)(iii). 46. R elated party transactions c ontinued 221 Experian plc Annual Report 2022 Financial statements Company profit and loss account Company statement of comprehensiv e income Notes 2022 US$m 2021 US$m Other operating income G 116.9 70.2 Sta costs H (4.3) (3.9) Depreciation N (0.3) (0.3) Other operating expenses G (128.2) (65.1) Operating (loss)/profit (15.9) 0.9 Interest receivable and similar income I 69.5 81.5 Interest payable and similar expenses J (0.2) (0.3) Dividend income from subsidiary undertakings M 250.0 100.0 Profit before tax 303.4 182.1 Tax on profit K (13.0) (20.8) Profit after tax and for the financial year 290.4 161.3 The Company has no recognised items of income and expenditur e other than those included in the profit and loss account. T otal co mprehensive income for the financial year is therefor e equal to the profit for the financial year . for the year ended 31 March 2022 for the year ended 31 March 2022 Experian plc Financial statements 222 Company balance sheet Notes 2022 US$m 2021 US$m Fixed assets Investments – shares in Group undertakings M 19,978.5 17,919.5 Right-of-use assets N 2.4 2.7 Deferred tax assets K 2.6 15.6 19,983.5 17,937.8 Current assets Debtors – amounts falling due within one year O 2.5 1,761.2 Cash at bank and in hand 0.4 0.4 Current liabilities Creditors – amounts falling due within one year P (35.3) (1.1) Net current assets (32.4) 1,760.5 Total assets less current liabilities 19,951.1 19,698.3 Creditors – amounts falling due after more than one year P (2.5) (2.9) Net assets 19,948.6 19,695.4 Equity Called-up share capital Q 73.1 73.0 Share premium account Q 1,449.9 1,425.7 Profit and loss account reserve R 18,425.6 18,196.7 Total shareholders' funds 19,948.6 19,695.4 These financial statements were appr oved by the Board on 17 May 2022 and wer e signed on its behalf by: Kerry Williams Director at 31 March 2022 223 Experian plc Annual Report 2022 Financial statements Company statement of changes in equity Called-up share capital (Note Q) US$m Share premium account (Note Q) US$m Profit and loss account reserve Total equity US$m Profit and loss account US$m Own shares reserve US$m Total (Note R) US$m At 1 April 2021 73.0 1,425.7 19,171.0 (974.3) 18,196.7 19,695.4 Profit and Total comprehensive income for the financial year — — 290.4 — 290.4 290.4 Transactions with owners: Employee share incentive plans: – value of employee services — — 149.0 — 149.0 149.0 – shares issued on vesting 0.1 24.2 — — — 24.3 – purchase of shares by employee trusts — — — (61.3) (61.3) (61.3) – other vesting of awards and exercises of share options — — (52.3) 49.2 (3.1) (3.1) Purchase of shares held as treasury shares — — — (110.9) (110.9) (110.9) Dividends paid — — (35.2) — (35.2) (35.2) Transactions with owners 0.1 24.2 61.5 (123.0) (61.5) (37.2) At 31 March 2022 73.1 1,449.9 19,522.9 (1,097.3) 18,425.6 19,948.6 Called-up share capital (Note Q) US$m Share premium account (Note Q) US$m Profit and loss account reserve Total equity US$m Profit and loss account US$m Own shares reserve US$m Total (Note R) US$m At 1 April 2020 72.9 1,243.6 19,012.4 (1,151.6) 17,860.8 19,177.3 Profit and Total comprehensive income for the financial year — — 161.3 — 161.3 161.3 Transactions with owners: Employee share incentive plans: – value of employee services — — 106.3 — 106.3 106.3 – shares issued on vesting 0.1 19.3 — — — 19.4 – other vesting of awards and exercises of share options — — (87.3) 87.3 — — Shares delivered as consideration for acquisition — 162.8 — 90.0 90.0 252.8 Dividends paid — — (21.7) — (21.7) (21.7) Transactions with owners 0.1 182.1 (2.7) 177.3 174.6 356.8 At 31 March 2021 73.0 1,425.7 19,171.0 (974.3) 18,196.7 19,695.4 for the year ended 31 March 2022 Experian plc Financial statements 224 Notes to the Company financial statements A. Corpor ate information Corporate information for Experian plc (the Compan y) is set out in note 1 to the Group financial statements, with further information given in the Strategic r eport and the Corporate governance r eport. B. Basis of pr eparation The separate financial statements of the Compan y are: a prepared on the going concern basis, under the historical cost convention, and in accordance with UK accounting standards; a presented in US dollars, the Compan y’s functional currency; and a designed to include disclosures in line with those required by those parts of the UK Companies Act 2006 applicable to companies r eporting under UK accounting standards even though the Company is incorporated and r egistered in Jersey . The directors opted to pr epare the financial statements for the year ended 31 March 2022 in accor dance with FRS 101 ‘Reduced Disclosure Fr amework’ . The Compan y intends to continue to use this accounting framework until further notice. Going concern The directors continue to adopt the going concern basis of accounting in preparing the financial statements. Details of the going concern assessment for the Group and the Company ar e provided in note 2 to the Group financial statements. C. FRS 101 e xemptions FRS 101 allows certain exemptions from the r equirements of IFRS to avoid the duplication of information pr ovided in the Group financial statements and to provide mor e concise financial reporting in entity financial statements. The following exemptions have therefor e been applied in the prepar ation of these financial statements: a Paragr aphs 45(b) and 46 to 52 of IFRS 2 ‘Share-based P ayment’ , exempting the Company from pr oviding details of share options and of how the fair value of services received was determined. a IFRS 7 ‘Financial Instruments: Disclosures’ . a Paragr aphs 91 to 99 of IFRS 13 ‘F air V alue Measurement’ , exempting the Company from disclosing v aluation techniques and inputs used for the measurement of assets and liabilities. a Paragr aph 38 of IAS 1 ‘Presentation of Financial Statements’ , exempting the Company from disclosing compar ative information requir ed by: – paragr aph 79(a)(iv) of IAS 1 – shares outstanding at the beginning and at the end of the period; and – paragr aph 73(e) of IAS 16 ‘Property , Plant and Equipment’ – reconciliations between the c arrying amount at the beginning and end of the period. a The following paragraphs of IAS 1: – paragr aphs 10(d) and 111, exempting the Company from pr oviding a cash flow statement and information; – paragr aph 16, exempting the Company from pr oviding a statement of compliance with all IFRS; – paragr aph 38A , exempting the Company fr om the requirement for a minimum of two of each primary statement and the related notes; – paragr aphs 38B to D, exempting the Company fr om the requirement to provide additional compar ative information; and – paragr aphs 134 to 136, exempting the Company from pr esenting capital management disclosur es. a IAS 7 ‘Statement of Cash Flows’ . a Paragr aphs 30 and 31 of IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ , exempting the Company from disclosing information where it has not applied a new IFRS which has been issued but is not yet eective. a Paragr aph 17 of IAS 24 ‘Related Party Disclosur es’ , exempting the Company from disclosing details of k ey management compensation. a The requirements in IAS 24 to disclose related party tr ansactions with wholly-owned members of the Gr oup. The use of critical accounting estimates and management judgment is requir ed in applying the accounting policies. Ar eas involving a higher degree of judgment or complexity , or where assumptions and estimates are signific ant to the Company financial statements, ar e highlighted in note F . D. Rec ent acc ounting developments Interest Rate Benchmark Reform – Phase 2, Amendments to IFRS 9 ‘Financial Instruments’ , IAS 39 ‘Financial Instruments: Recognition and Measurement’ , IFRS 7 ‘Financial Instruments: Disclosur es’ and IFRS 16 ‘Leases’ were eective for the Company fr om 1 April 2021. These amendments provide r elief from certain r equirements in IFRS Standards where ther e are modifications of financial instruments, lease contracts or hedging relationships due to the tr ansition from interbank oered r ates (IBOR) to alternative benchmark interest r ates. Amounts owed to and from Gr oup undertakings have contractual terms which were aected by inter est rate benchmark r eform. Applying the practic al expedient introduced by the amendments means when the interest r ates aecting these amounts were replaced there was no requir ement to recognise an immediate gain or loss in pr ofit or loss, which may have been requir ed if the practic al expedient was not available or adopted. There was no material impact on the Company’s financial results as a r esult of applying these amendments. E. Signific ant acc ounting policies The significant accounting policies applied ar e summarised below . They have been consistently applied to both years pr esented. The explanations of these policies focus on areas wher e judgment is applied or which are particularly important in the financial statements. Content from accounting standar ds, amendments and interpr etations is excluded where ther e is simply no policy choice under UK accounting standards. for the year ended 31 March 2022 225 Experian plc Annual Report 2022 Financial statements Notes to the Company financial statements continued (i) F oreign currency T ransactions in foreign curr encies are r ecorded at the exchange r ate prevailing at the tr ansaction date. Monetary assets and liabilities denominated in foreign curr encies are r etranslated at the exchange r ate prevailing at the balance sheet date. All dierences are taken to the pr ofit and loss account in the year in which they arise. (ii) Investments – shares in Gr oup undertakings Investments in Group undertakings ar e stated at cost less any provisions for impairment. The fair value of share incentives issued by the Company to employees of Group undertakings is accounted for as a c apital contribution and recognised as an incr ease in the Company’s investment in Group undertakings, with a corresponding incr ease in equity . (iii) Debtors and creditor s Debtors are initially r ecognised at fair value and subsequently measured at this value. Where the time v alue of money is material, they ar e then carried at amortised cost using the eective inter est method. Cr editors are initially r ecognised at fair value. Where the time value of money is material, they ar e then carried at amortised cost using the eective interest method. (iv) Cash at bank and in hand Cash at bank includes deposits held at call with banks and other short-term highly liquid investments. (v) Accounting for derivative financial instruments The Company uses forward for eign exchange contracts to manage its exposures to fluctuations in for eign exchange rates. The interest dierential r eflected in forward for eign exchange contracts is taken to interest r eceivable and similar income or interest pay able and similar expenses. F orward foreign exchange contr acts are r ecognised at fair value, based on forward foreign exchange mark et rates at the balance sheet date. Gains or losses on forwar d foreign exchange contr acts are taken to the profit and loss account in the y ear in which they arise. (vi) Leases The Company undertakes an assessment of whether a contr act is or contains a lease at its inception. The assessment establishes whether the Company obtains substantially all the economic benefits from the use of an asset and whether it has the right to direct its use. Low-v alue lease payments are recognised as an expense, on a straight -line basis over the lease term. F or other leases the Company recognises both a right -of-use asset and a lease liability at the commencement date of a lease contract. The right-of-use asset is initially measur ed at cost, comprising the initial amount of the lease liability adjusted for payments made at or before the commencement date, plus initial dir ect costs and an estimate of the cost of any obligation to refurbish the asset or site, less lease incentives. Subsequently , right-of-use assets ar e measured at cost less accumulated depreciation and impairment losses and ar e adjusted for any remeasur ement of the lease liability . Depreciation is c alculated on a straight -line basis over the shorter of the estimated useful life of the right-of-use asset and the period of the lease. The lease term comprises the non-cancellable period of a lease, plus periods covered by an extension option, if it is reasonably certain to be exercised, and periods covered by a termination option if it is r easonably certain not to be exercised. The lease liability is initially measured at the pr esent value of lease payments that are outstanding at the commencement date, discounted at the interest r ate implicit in the lease or if that rate cannot be easily determined the Company’s incremental borr owing rate. Lease payments comprise payments of fixed principal less any lease incentives. The lease liability is remeasur ed when there is a change in futur e lease payments arising from a change in an index or r ate, or if the Compan y changes its assessment of whether it will exercise an extension or termination option. When a lease liability is remeasur ed, a corr esponding adjustment is made to the carrying amount of the right-of-use asset or is r ecognised in the Company profit and loss account if the asset is fully depr eciated. (vii) T ax Current tax is c alculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in Ireland, where the Company is resident. Deferred tax is pr ovided in respect of tempor ary dierences that have originated but not reversed at the balance sheet date and is determined using the tax rates that ar e expected to apply when the temporary dierences r everse. Deferr ed tax assets are recognised only to the extent that they are expected to be r ecoverable. (viii) Own shares The Group has a number of equity -settled, shar e-based employee incentive plans. In connection with these, shares in the Company are held by The Experian plc Employee Shar e T rust and the Experian UK Approved All-Employee Shar e Plan. The assets, liabilities and expenses of these separately administer ed trusts are included in the financial statements as if they were the Company’s own. The trusts’ assets mainly comprise Experian shares, which are shown as a deduction fr om total shareholders’ funds at cost. Experian shares pur chased and held as treasury shar es, in connection with the above plans and any share pur chase programme, are also shown as a deduction from total shar eholders’ funds at cost. The par value of shares that ar e purchased and cancelled, in connection with any share purchase pr ogramme, is accounted for as a reduction in called-up share capital with any cost in excess of that amount being deducted fr om the profit and loss account. The Company is not r equired to r ecognise the par value of cancelled shar es in a capital r edemption reserve. Contractual obligations to pur chase own shares are recognised at the net present value of expected futur e payments. Gains and losses in connection with such obligations are r ecognised in the profit and loss account. Gains and losses which arise on financial instruments cr eated by advance instructions to tr ade in own shares ar e recognised directly in equity . (ix) Profit and loss account format Income and expenses, which ar e recognised on an accruals basis, are reported by natur e in the profit and loss account, as this reflects the composition of the Company’s income and cost base. (x) Dividend income Dividend income is recognised in the Company pr ofit and loss account on the date on which the Company’s right to receive payment is established. Liquidation dividends are tr eated as a return of capital to the extent they are used to r ecover the carrying value of the investment in the liquidated entity . Any amount r eceived in excess of the investment value is tr eated as income in the Company profit and loss account. E. Signific ant acc ounting policies continued Experian plc Financial statements 226 F . Critical acc ounting estimates, assumptions and judgments (i) Critical accounting estimates and assumptions In preparing the financial statements, management is requir ed to make estimates and assumptions that aect the reported amount of income, costs and charges, assets and liabilities and the disclosure of contingent liabilities. The resulting accounting estimates, which ar e based on management’s best judgment at the date of the financial statements will, by definition, seldom equal the related actual results. The most significant of these estimates and assumptions for the Company that has a signific ant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year is in respect of the c arrying value of investments in subsidiary undertakings. (ii) Critical judgments In applying the Company’s accounting policies, management may make judgments that have a significant eect on the amounts r ecognised in the Company financial statements. These judgments may include the classification of tr ansactions between the Company profit and loss account and the Company balance sheet. The most significant of these judgments for the Company is in r espect of contingencies where, in the case of pending and threate ned litigation claims, management has formed a judgment as to the likelihood of ultimate liability . No liability has been r ecognised where the likelih ood of any loss arising is possible rather than pr obable. G. Other operating inc ome and expenses Other operating income and expenses principally comprise char ges to and from other Group undertakings in respect of Gr oup management services and guarantees pr ovided during the year . The increase in other oper ating income and expenses in the year ended 31 March 2022 compared to the prior year is due to tr ansfer pricing and other allocation adjustments. Other oper ating expenses include a fee of US$0.1m (2021: US$0.1m) payable to the Company’s auditor and its associates for the audit of the Company financial statements. H. Sta c osts 2022 US$m 2021 US$m Directors' fees 2.7 2.3 Wages and salaries 1.3 1.3 Social security costs 0.1 0.1 Other pension costs 0.2 0.2 4.3 3.9 Executive directors of the Compan y are employed by other Gr oup undertakings and details of their remuner ation, together with th at of the non-executive directors, are given in the audited part of the Report on directors’ r emuneration. The Company had three employees in the curr ent and prior year . I. Inter est receivable and similar inc ome 2022 US$m 2021 US$m Interest receivable on amounts owed by subsidiary undertakings 67.2 81.5 Foreign exchange gains 2.3 — 69.5 81.5 J. Inter est payable and similar expenses 2022 US$m 2021 US$m Interest payable on lease obligation 0.2 0.2 Foreign exchange losses — 0.1 0.2 0.3 227 Experian plc Annual Report 2022 Financial statements Notes to the Company financial statements continued K. T ax on profit (a) Analysis of tax charge in the pr ofit and loss account 2022 US$m 2021 US$m Current tax: Irish corporation tax charge on profit for the financial year — — Deferred tax: Origination and reversal of timing dierences 13.1 20.7 Adjustment in respect of prior years (0.1) 0.1 Total deferred tax charge for the financial year 13.0 20.8 Tax charge for the year 13.0 20.8 (b) F actors aecting the tax charge for the financial year The tax charge for the year is at a r ate lower than the main rate of Irish corporation tax of 25% (2021: 25%) with the dier enc es explained below . 2022 US$m 2021 US$m Profit before tax 303.4 182.1 Profit before tax multiplied by the applicable rate of tax 75.9 45.5 Eects of: Income not taxable (63.6) (25.8) Expenses not deductible 0.8 1.0 Adjustment in respect of prior years (0.1) 0.1 Tax charge for the year 13.0 20.8 The Company’s tax charge will continue to be influenced by the natur e of its income and expenditure and prevailing Irish and Jer sey tax laws. (c) Deferred tax asset The deferred tax asset is in r espect of tax losses and the movements thereon ar e as follows: 2022 US$m 2021 US$m At 1 April 15.6 36.4 Tax charge in the profit and loss account (13.0) (20.8) At 31 March 2.6 15.6 The Company has no unrecognised deferr ed tax (2021: US$nil). L. Dividends T otal gross dividends of US$443.6m (2021: US$426.8m) wer e paid to Experian shareholders during the year . The Company paid interim dividends of US$35.2m (2021: US$21.7m) to those shareholders who did not elect to r eceive dividends under the Income Access Share arrangemen ts. The balance ofUS$408.4m (2021: US$405.1m) was paid by a subsidiary undertaking, Experian (UK) Finance Limited (EUKFL), under the Income Ac cess Share arrangements. The Company’s profit and loss account reserve is a vailable for distribution by way of dividend. At 31 Mar ch 2022, the distributable reserves of EUKFL as determined under UK company law wer e US$10,345.2m (2021: US$11,972.4m). Since the balance sheet date, the dir ectors have announced a second interim dividend of 35.75 US cents per or dinary share for the year ended 31Mar ch 2022. No part of this dividend is included as a liability in these financial statements. Further details of payment arrangements, including the Income Access Share arr angements, ar e given in the Shareholder and corporate information section of the Annual Report. Experian plc Financial statements 228 M. In vestments – shares in Gr oup undertakings Cost and net book amount 2022 US$m 2021 US$m At 1 April 17,919.5 17,413.2 Additions – fair value of share incentives issued to Group employees 149.0 106.3 Additional investment in direct subsidiary undertakings 1,910.0 400.0 At 31 March 19,978.5 17,919.5 During the year ended 31 March 2022 Experian plc undertook a number of tr ansactions as a result of group r estructuring, includi ng the subscription for additional shares in existing subsidiary undertakings for US$1,910.0m (2021: US$400.0m). A list of the Company’s subsidiary undertakings is given in note T(i). The Company dir ectly holds interests in the whole of the issued share c apital of the following undertakings: Company Country of incorporation Experian Group Services Limited Ireland Experian Holdings Ireland Limited Ireland Experian Ireland Investments Limited Ireland N. Leases The Company leases its oces. The original lease term is 25 years and includes periodic br eak options throughout the lease exer cisable only by the Company and not the lessor . (a) Amounts recognised in the Company balance sheet 2022 US$m 2021 US$m Right-of-use asset: At 1 April 2.7 3.0 Depreciation charge for the year (0.3) (0.3) At 31 March 2.4 2.7 Lease obligation: Current 0.2 0.2 Non-current 2.5 2.9 At 31 March 2.7 3.1 (b) Maturity of lease obligation – contractual undiscounted c ash flows 2022 US$m 2021 US$m Less than one year 0.3 0.4 One to two years 0.3 0.4 Two to three years 0.3 0.4 Three to four years 0.3 0.4 Four to five years 0.3 0.4 Over five years 1.8 2.2 Total undiscounted lease obligation at 31 March 3.3 4.2 (c) Amounts recognised in the Company pr ofit and loss account 2022 US$m 2021 US$m Depreciation charge for right-of-use asset 0.3 0.3 Interest expense 0.2 0.2 0.5 0.5 (d) Lease cash flow The total lease cash outflow in the year ended 31 Mar ch 2022 was US$0.5m (2021: US$0.4m), of which US$0.2m (2021: US$0.2m) r elat ed to payments of interest and US$0.3m (2021: US$0.2m) was for r epayments of principal. 229 Experian plc Annual Report 2022 Financial statements Notes to the Company financial statements continued O. Debtors – amounts falling due within one year 2022 US$m 2021 US$m Amounts owed by Group undertakings — 1,759.5 Other debtors 2.5 1.7 2.5 1,761.2 Amounts owed by Group undertakings ar e primarily unsecured, interest bearing and r epayable on demand. P . Cr editors Due within one year 2022 US$m Due after more than one year 2022 US$m Due within one year 2021 US$m Due after more than one year 2021 US$m Amounts owed to Group undertakings 34.6 — — — Lease obligation (note N) 0.2 2.5 0.2 2.9 Accruals 0.5 — 0.9 — 35.3 2.5 1.1 2.9 Amounts owed to Group undertakings ar e primarily unsecured, interest fr ee and repayable on demand. Q. Called-up share c apital and share pr emium acc ount Allotted and fully paid 2022 US$m 2021 US$m 970,613,810 (2021: 969,611,616) ordinary shares of 10 US cents 73.1 73.0 20 (2021: 20) deferred shares of 10 US cents — — 73.1 73.0 At 31 March 2022 and 31 Mar ch 2021, the authorised shar e capital of the Company was US$200m, divided into 1,999,999,980 ordinary shar es and 20deferred shar es, each of 10 US cents. The ordinary shares carry the rights to (i) dividend, (ii) to attend or vote at general meetings and (iii) to participate in the assets of the Company beyond r epayment of the amounts paid up or credited as paid up on them. The deferred s hares carry no suchrights. During the year ended 31 March 2022, the Company issued 1,002,194 (2021: 891,984) ordinary shares for a consider ation of US$24.3m (2021: US$19.4m) inconnection with the Group’s shar e incentive arrangements, details of which are given in note 33 to the Group financial statem ents. Thedierence between the consideration and the par v alue of the shares issued is r ecorded in the share pr emium account. In the year ended 31 March 2021, a premium of US$162.8m was also recor ded on treasury shar es delivered in that year as acquisition consider ation. During the year the Company pur chased 2,705,315 (2021: nil) of its own shares for a consider ation of US$108.5m. All shar es purchased have been retained as tr easury shares. No ordinary shar es were cancelled after being pur chased by the Company , during the curr ent or prior year . Experian plc Financial statements 230 R. Pr ofit and loss account r eserve The profit and loss account r eserve is stated after deducting the balance on the own shares r eserve from that on the profit and l oss account. The balance on the profit and loss account comprises net pr ofits retained in the Company after the payment of equity dividends. The balance o n the own shares reserve is the cost of or dinary shares in the Company and further details ar e given below . Number of shares held Cost of shares held Treasury million Trusts million Total million Treasury US$m Trusts US$m Total US$m At 1 April 2021 52.3 3.7 56.0 869.1 105.2 974.3 Purchase of shares by employee trusts — 1.7 1.7 — 61.3 61.3 Purchase of shares held as treasury shares 2.7 — 2.7 110.9 — 110.9 Transfers (6.0) 6.0 — (87.0) 87.0 — Other vesting of awards and exercises of share options (0.5) (3.2) (3.7) (7.9) (41.3) (49.2) At 31 March 2022 48.5 8.2 56.7 885.1 212.2 1,097.3 Number of shares held Cost of shares held Treasury million Trusts million Total million Treasury US$m Trusts US$m Total US$m At 1 April 2020 60.4 7.4 67.8 971.3 180.3 1,151.6 Shares delivered as consideration for acquisition (7.2) — (7.2) (90.0) — (90.0) Other vesting of awards and exercises of share options (0.9) (3.7) (4.6) (12.2) (75.1) (87.3) At 31 March 2021 52.3 3.7 56.0 869.1 105.2 974.3 S. Contingencies and guar antees The Company has guar anteed: a borrowings of Group undertakings of US$3,912m (2021: US$4,123m); a the liabilities of The Experian plc Employee Share T rust and the Experian UK Approved All-Employ ee Share Plan; and a the retirement benefit obligations of Group undertakings that participate in the Experian P ension Scheme and of a Group undertaking that participates in a small UK defined benefit pension plan. An indic ation of the Company’s contingent liability for the year ended 31 March 2022, in the event that the Group undertakings fail to pay their contributions, is given in note 35(e) to the Group financial statements. The Company has also issued a small number of other guar antees in connection with the performance of business contracts by Gr ou p undertakings. 231 Experian plc Annual Report 2022 Financial statements Notes to the Company financial statements continued T . Related undertakings at 31 Mar ch 2022 (i) Subsidiary undertakings Company Country of incorporation Experian Strategic Solutions SA Argentina Compuscan Australia (Pty) Ltd Australia Experian Asia Pacific Pty Ltd Australia Experian Australia Credit Services Pty Ltd Australia Experian Australia Fraud Services Pty Ltd Australia Experian Australia Holdings Pty Ltd Australia Experian Australia Pty Ltd Australia Look Who’s Charging Pty Ltd Australia Riverleen Finance Pty Ltd Australia Tallyman Australia Pty Limited Australia Credify Informationsdienstleistungen GmbH Austria 1 Experian Austria GmbH Austria 2 Experian Österreich Verwaltungsgesellschaft mbH Austria 2 Experian Botswana (Pty) Ltd Botswana Brain Soluções de Tecnologia Digital Ltda Brazil 3 Experian Tecnologia Brasil Ltda Brazil 4 Financeira Veloz Holding Financeira S.A Brazil 5 Holding Veloz Investimentos e Participações S.A Brazil 5 PagueVeloz Instituição de Pagamento Ltda. Brazil 6 Serasa S.A. Brazil 7 Experian Bulgaria EAD Bulgaria Experian Canada Inc. Canada Experian Holdings Chile SpA Chile 8 Experian Services Chile S.A. Chile 9 Servicios de Información Avanzada Comercial Y Financiera S.A. Chile 10 Beijing Yiboruizhi Technology Co., Ltd China 11 Experian Credit Service (Beijing) Company Limited China 12 Experian Hong Kong Holdings Limited China 13 Experian Hong Kong Limited China 13 Experian Information Technology (Beijing) Company Limited China 14 Experian Colombia S.A. Colombia Experian Services Costa Rica, S.A. Costa Rica Experian A/S Denmark Accolade Unlimited England and Wales Castlight Limited England and Wales CCN UK 2005 Limited England and Wales CCN UK Unlimited England and Wales Chatsworth Investments Limited England and Wales CSID International Limited England and Wales EHI 2005 Limited England and Wales EHI UK Unlimited England and Wales EIS 2005 Limited England and Wales EIS UK Unlimited England and Wales Experian (UK) Finance Limited England and Wales Experian (UK) Holdings 2006 Limited England and Wales Experian 2001 Unlimited England and Wales Experian 2006 Unlimited England and Wales Experian CIS Limited England and Wales Experian Colombia Investments Limited England and Wales Experian Europe and Middle East Limited England and Wales Experian Europe Unlimited England and Wales Experian Finance 2012 Unlimited England and Wales Experian Finance plc England and Wales Experian Group Limited England and Wales Experian Holdings (UK) Unlimited England and Wales Experian Holdings Limited England and Wales Experian International Unlimited England and Wales Company Country of incorporation Experian Investment Holdings Limited England and Wales Experian Latam Holdings Unlimited England and Wales Experian Limited England and Wales Experian NA Holdings Unlimited England and Wales Experian NA Unlimited England and Wales Experian Nominees Limited England and Wales Experian Specialist Information Limited England and Wales Experian SURBS Investments Limited England and Wales Experian Technology Limited England and Wales Experian US Holdings Unlimited England and Wales Experian US Unlimited England and Wales G.U.S. Property Management Limited England and Wales GUS 1998 Unlimited England and Wales GUS 2000 Finance Unlimited England and Wales GUS 2000 UK Unlimited England and Wales GUS 2000 Unlimited England and Wales GUS 2002 Unlimited England and Wales GUS 2004 Limited England and Wales GUS 2005 Finance Unlimited England and Wales GUS Catalogues Unlimited England and Wales GUS Finance (2004) Limited England and Wales GUS Finance 2006 Unlimited England and Wales GUS Finance Holdings Unlimited England and Wales GUS Financial Services Unlimited England and Wales GUS Holdings (2004) Limited England and Wales GUS Holdings Unlimited England and Wales GUS International England and Wales GUS International Holdings UK Societas England and Wales GUS Ireland Holdings UK Societas England and Wales GUS NA Unlimited England and Wales GUS Netherlands Unlimited England and Wales GUS Overseas Holdings UK Societas England and Wales GUS Overseas Investments UK Societas England and Wales GUS Overseas Retailing Unlimited England and Wales GUS Overseas Unlimited England and Wales GUS Property Investments Limited England and Wales GUS Unlimited England and Wales GUS US Holdings UK Societas England and Wales GUS US Holdings Unlimited England and Wales GUS US Unlimited England and Wales GUS Ventures Unlimited England and Wales Hugh Wyllie, Limited England and Wales International Communication & Data Limited England and Wales QAS Limited England and Wales Riverleen Finance Unlimited England and Wales Runpath Group Limited England and Wales Runpath Pilot Limited England and Wales Runpath Regulated Services Limited England and Wales Serasa Finance Limited England and Wales Tallyman Limited England and Wales Tapad UK Limited England and Wales Techlightenment Ltd England and Wales The Royal Exchange Company (Leeds) Unlimited England and Wales The Witney Mattress, Divan & Quilt Co. Unlimited England and Wales Compuscan (Pty) Ltd eSwatini/Swaziland Experian France S.A.S. France Experian Holding EURL France Experian Holding France SAS France Experian plc Financial statements 232 Company Country of incorporation 3 C Deutschland GmbH Germany 15 CONET Corporate Communication Network GmbH Germany 16 Experian CarCert GmbH Germany 17 Experian GmbH Germany 16 Informa HIS GmbH Germany 17 Informa Solutions GmbH Germany 16 Infoscore Consumer Data GmbH Germany 16 Tapad Germany GmbH Germany 18 Experian Credit Information Company of India PrivateLimited India 19 Experian Services India (Private Limited) India 19 W2 Software (India) Private Limited India 20 PT. Experian Decision Analytics Indonesia Indonesia Experian Europe Designated Activity Company Ireland Experian Group Services Limited Ireland Experian Holdings Ireland Limited Ireland Experian Ireland Investments Limited Ireland Experian Ireland Limited Ireland GUS Finance Ireland Unlimited Company Ireland GUS Investments 2003 Unlimited Company Ireland Experian Holding Italia S.r.l. Italy Experian Italia S.p.A. Italy Experian Japan Co., Ltd Japan Experian Korea Co., Ltd Republic of Korea Experian Lesotho (Pty) Ltd Lesotho Experian Information Services (Malaysia) Sdn. Bhd. Malaysia 21 Experian (Malaysia) Sdn. Bhd. Malaysia 21 Experian Marketing Services (Malaysia) Sdn Bhd Malaysia 21 Ringgit Arajaya Sdn. Bhd. Malaysia 22 Experian de Mexico S. de R.L. de C.V. Mexico Experian Micro Analytics SAM Monaco Scorex SAM Monaco Experian Sistema de informacao de credito S.A Mozambique Experian Credit Reference Bureau (Pty) Ltd Namibia Experian New Zealand Limited New Zealand Experian AS Norway 23 Experian Gjeldsregister AS Norway 23 Tapad Norway AS Norway 24 Experian Peru S.A.C. Peru Experian Philippines, Inc The Philippines Experian Polska spółka z ograniczoną odpowiedzialnością Poland 25 Gabi Polska Spółka z ograniczoną odpowiedzialnością Poland 26 DP Management Pte Ltd Singapore ENROC Pte. Ltd. Singapore Experian Credit Bureau Singapore Pte. Ltd. Singapore Experian Credit Services Singapore Pte. Ltd. Singapore Experian Asia-Pacific Holdings Pte. Ltd. Singapore Experian Singapore Pte. Ltd Singapore Compuscan Holdings International (Pty) Ltd South Africa 27 Compuscan Information Technologies (Pty) Ltd * South Africa 27 CSH Group (Pty) Ltd South Africa 27 Encentivize Rewards (Pty) Ltd * South Africa 28 Experian Business Skills Institute (Pty) Ltd South Africa 27 Experian South Africa (Pty) Limited South Africa 28 PCubed Analytical Intelligence (Pty) Ltd * South Africa 28 Great Universal Stores (South Africa) (Pty) Ltd South Africa 28 Techtonic Information Technologies (Pty) Ltd South Africa 27 Axesor Business Process Outsourcing S.L.U. Spain 29 Company Country of incorporation Axesor Conocer Para Decidir, S.A. Spain 29 Experian Bureau de Crédito, S.A. Spain 31 Experian Colombian Investments, S.L.U. Spain 30 Experian España, S.L.U. Spain 31 Experian Holdings Espana, S.L. Spain 31 Experian Latam España Inversiones, S.L. Spain 32 Rexburg Spain, S.L.U. Spain 30 Experian Switzerland AG Switzerland Experian (Thailand) Co., Ltd Thailand Experian Micro Analytics B.V. The Netherlands Experian Nederland BV The Netherlands Experian Scorex Russia B.V. The Netherlands GUS Europe Holdings BV The Netherlands GUS Holdings BV The Netherlands GUS Treasury Services BV The Netherlands Experian Bilgi Hizmetleri Limited Şirketi Turkey Experian Uganda CRB Limited Uganda Auto I.D., Inc. USA 33 ClarityBlue Inc USA 34 Clarity Services, Inc. USA 33 ConsumerInfo.com Inc USA 35 Corporate Cost Control, Inc. USA 36 CSIdentity Corporation USA 33 CSIdentity Insurance Services, Inc. USA 37 Employment Tax Servicing, LLC USA 35 Experian Background Data, Inc. USA 33 Experian Credit Advisors, Inc. USA 33 Experian Data Corp USA 33 Experian Fraud Prevention Solutions, Inc. USA 33 Experian Health, Inc. USA 33 Experian Holdings, Inc. USA 33 Experian Information Solutions Inc USA 38 Experian Marketing Solutions, LLC USA 33 Experian Reserved Response, Inc. USA 33 Experian Services Corp. USA 33 Frontline eSolutions, LLC USA 39 Gabi Personal Insurance Agency, Inc. USA 33 MyExperian, Inc. USA 33 MyHealthDirect, Inc. USA 33 RewardStock, Inc. USA 33 Riverleen Finance, LLC USA 33 StatSchedules India, LLC USA 33 String Automotive Solutions, Inc. USA 33 String Enterprises, Inc. USA 33 Tapad, Inc. USA 33 Tax Credit Co, LLC USA 33 TCC Arizona, LLC USA 40 TCC Services, LLC USA 41 The 41st Parameter, Inc. USA 33 Numeric superscripts refer to r egistered oce addresses given innoteT(ii) * In voluntary liquidation ** Compuscan Austr alia (Pty) Ltd and Riverleen Finance Pty Ltd were liquidated on 16 April 2022. *** Experian T ecnologia Brasil Ltda was liquidated on 11 April 2022. **** W2 Softwar e (India) Private Limited was liquidated on 11 May 2022. T . Related undertakings at 31 Mar ch 2022 continued (i) Subsidiary undertakings continued 233 Experian plc Annual Report 2022 Financial statements Notes to the Company financial statements continued (ii) Addresses of r egistered oces of subsidiary undertakings Country of incorporation Address of registered oce Argentina Carlos Pelligrini 887, 4th Floor, Ciudad Autonoma de Buenos Aires, Buenos Aires Australia Level 6, 549 St Kilda Road, Melbourne, VIC 3004 Austria 1 Gumpendorfer Straße 19-21/5. OG, 1060, Wien Austria 2 Strozzigasse 10/14, 1080 Vienna Botswana Plot 64518 Deloitte House, Fairgrounds, Gaborone Brazil 3 Avenida Presidente Vargas, 2921 – 6º Andar – sala 611, Vila Homero, Indaiatuba/SP, 13338-705 Brazil 4 St SCS Quadra 02 Bloco c, 109 – Sala 301 401 501 e 601 Edif, Brasília, Distrito Federal, 70.302-911 Brazil 5 Rua Hermann Huscher, 113, sala 01 subsala 06, District: Vila Formosa, Blumenau, Santa Catarina, 89.023-000 Brazil 6 Rua Hermann Huscher, 113, sala 01 subsala 08, District: Vila Formosa, Blumenau, Santa Catarina, 89.023-000 Brazil 7 Avenida das Nações Unidas, 14401 – Torre C-1 do Complexo Parque da Cidade – conjuntos 191, 192, 201, 202, 211, 212, 221, 222, 231, 232, 241 e 242, Chácara Santo Antônio, São Paulo/SP, CEP 04794-000 Bulgaria 86 Tsarigradsko shose boul., Mladost region, 1784 Sofia, Bulgaria Canada 199 Bay Street, Suite 4000, Toronto, Ontario M5L 1A9 Chile 8 Av el Golf 40 piso, 20 Santiago Chile 9 Av. del Valle 515, Huechuraba, Santiago Chile 10 Nueva Costanera 4091, Vitacura, Santiago de Chile China 11 Room 604 6F, One Indigo, 20 Jiuxianqiao Road, Chaoyang District, Beijing, 100015 China 12 Room 05D, 20th Floor, NO.77, Jianguo Road, Chaoyang District, Beijing China 13 Oce Unit 2102, 21/F, Lee Garden Three, 1 Stunning Road, Causeway Bay, Hong Kong China 14 Room 05C, 20th Floor, NO.77, Jianguo Road, Chaoyang District, Beijing Colombia Carrera 7, No. 76 -35 Floor 10, Bogota Costa Rica Edificio Oller Abogados, Provincia de 5551007, Av. 18, San José Province, San José Denmark Lyngbyvej 2, DK-2100, Copenhagen England and Wales The Sir John Peace Building, Experian Way, NG2 Business Park, Nottingham, NG80 1ZZ eSwatini/Swaziland c/o PricewaterhouseCoopers, Rhus Oce Park, Kal Grant Street, Mbabane France 19 boulevard Malesherbes, 75008 Paris Germany 15 Edisonstraße 19, 74076, Heilbronn Germany 16 Rheinstraße 99, 76532, Baden-Baden Germany 17 Kreuzberger Ring 68, 65205, Wiesbaden Germany 18 Walther-von-Cronberg-Platz 13, 60594 Frankfurt a. Main India 19 5th Floor, East Wing, Tower 3, Equinox Business Park, LBS Marg, Kurla (West), Mumbai, 400070 India 20 1st Floor, Plot No. 6, Janakpuri Colony, Gunrock, Hyderabad, Telangana 500009 Indonesia World Trade Centre 3 Lantai 27, Jl. Jendral Sudirman Kav. 29-31, Kelurahan Karet, Kecamatan Setiabudi, Kota Adm. Jakarta Selatan, DKI Jakarta Ireland Newenham House, Northern Cross, Malahide Road, Dublin 17, D17 AY61 Italy Piazza dell’Indipendenza No 11/B, 00185, Rome Japan 1-1 Otemachi 1-chome, Chioyda-ku Tokyo Country of incorporation Address of registered oce Republic of Korea 10F Shinhan L Tower, 358 Samil-daero, Jung-gu, Seoul Lesotho Plot No. 582, Ha Hoohlo Extension, Maseru Malaysia 21 10th Floor Menara Hap Seng, No. 1 & 3 Jalan P. Ramlee, 50250 Kuala Lumpur, Wilayah Persekutuan Malaysia 22 Ground, 1st, 2nd & 3rd Floors, Block B, Quill 18, Lingkaran Teknokrat, 3 Barat, Cyber 4, 63000 Sepang, Cyberjaya, Selangor Mexico Calle Pedregal 24 S 300 P 3 Col. Molino del Rey, Miguel Hidalgo, Ciudad de México, CP 11040 Monaco Athos Palace 2, Rue de la Lujerneta 6eme etage – lots 27 et 30 Mozambique Edifício Millennium Park, Avenida Vladimir Lenine, 174, 13°, Maputo Namibia C/O Aus Secretarial Services, Bougain Villas, 8 Sam Nujoma Drive, Windhoek The Netherlands Grote Marktstraat 49, 2511BH's-Gravenhage New Zealand Level 9, 4 Williamson Avenue, Grey Lynn, Auckland, 1021 Norway 23 Professor Kohts vei 9, 1366 Lysaker Norway 24 5.etg. Edvard Storms gate 2, 0166, Oslo Peru Av. Canaval y Moreyra Nº 480, Piso 19, San Isidro, Lima The Philippines 25th Floor Philam Life Tower, 8767 Paseo de Roxas, Makati City Poland 25 Plac Marsz. Józefa Piłsudskiego 3, 00-078 Warsaw Poland 26 Henryk Sienkiewicz street 82/84; 90-318, Łódź Singapore 10 Kallang Avenue, #14-18 Aperia Tower 2, Singapore, 339510 South Africa 27 Compuscan House, 3 Neutron Avenue, Techno Park, Stellenbosch, 7600 South Africa 28 Experian House, Ballyoaks Oce Park, 35 Ballyclare Drive, Bryanston Ext 7, 2191 Spain 29 Calle Graham Bell, s/n, Edificio Axesor, Parque Empresarial San Isidro, C.P. 18100, Armilla Spain 30 C/Principe de Vergara 132, 1a Planta, 28002, Madrid Spain 31 C/Principe de Vergara 132, 2a Planta, 28002, Madrid Spain 32 Principe de Vergara 131 1°, Madrid Switzerland Thurgauerstrasse 101a, CH-8152, Opfikon Thailand No. 9, G Tower Building, 33rd Floor, Rama 9 Road, Huai Kwang, Bangkok Turkey River Plaza Büyükdere Cad.Bahar Sok.No:13 K:8 Levent 34394 İstanbul Uganda Plot 23, 3rd Floor, North Wing, Soliz House, Lumumba Avenue, Nakasero, Kampala USA 33 The Corporation Trust Company, 1209 Orange Street, Wilmington DE 19801 USA 34 475 Anton Boulevard, Costa Mesa, CA 92626 USA 35 CT Corporation System, 818 West 7th Street, Los Angeles, CA 90017 USA 36 C T Corporation System, 155 Federal Street, Ste 700, Boston Massachusetts 02110 USA 37 208 South LaSalle St., Ste 814 Chicago IL 60604 USA 38 4400 Easton Commons Way, Ste 125, Columbus Ohio 43219 USA 39 3026 Woodbridge Lane, Canton, GA 30114 USA 40 2711 Centerville Rd Ste 400, Wilmington DE 19808 USA 41 255 W Sunset Blvd. Ste, 2200 Los Angeles CA 90028 Numeric superscripts refer to subsidiary undertakings given in note T(i) T . Related undertakings at 31 Mar ch 2022 continued Experian plc Financial statements 234 (iii) Additional information on subsidiary undertakings Summary The results of the undertakings listed at note T(i) ar e included in the Group financial statements. Except as indic ated below , the Company has direct or indirect inter ests in the whole of the issued equity shares of these undertakings. Undertakings which ar e direct subsidiaries of the Company are detailed innote L to these financial statements. Since demerger fr om GUS plc in 2006, the Company has eliminated dormant and inactive companies through an ongoing internal pr ogramme. Holdings comprising less than 100% Interests of less than 100% of the issued equity of subsidiary undertakings are: Brain Soluções de T ecnologia Digital Ltda – 55.0% DP Management Pte Ltd – 51.0% Experian Australia Cr edit Services Pty Ltd – 92.05% Experian Colombia S.A. – 99.9% Experian Credit Information Company of India Priv ate Limited – 66.7% Experian Italia S.p.A. – 95.35% Experian Information Services (Malaysia) Sdn. Bhd. – 74.0% Experian South Africa (Pty) Limited – 87.5% Informa Solutions GmbH – 60.0% Serasa S.A. – 99.7% Servicios de Información Av anzada Comercial Y Financiera S.A. – 66.7% Holdings comprising other than ordinary shares, common stock or common shares The Company’s equity interests comprise dir ect or indirect holdings of ordinary shar es, common stock or common shar es only , except as listed below: GUS 2004 Limited, Motorfile Limited and Experian Soluciones de Informacion, S.A. de C.V . – A ordinary and B or dinary shares GUS International and GUS Investments 2003 Unlimited Company – B ordinary shar es GUS 2000 Unlimited – X ordinary and Y ordinary shar es Experian Holdings, Inc. – class A and B common stock Experian Information Solutions Inc – common no par value shares Experian Services Corp. – common no par v alue shares Riverleen Finance, LL C – common stock shares T . Related undertakings at 31 Mar ch 2022 continued 235 Experian plc Annual Report 2022 Financial statements Notes to the Company financial statements continued (iv) Associate undertakings Company Holding Country of incorporation Who Owns Whom (Pty) Limited 32.9% South Africa Online Data Exchange LLC 25.0% USA Opt-Out Services, LLC 25.0% USA Central Source LLC 33.3% USA New Management Services, LLC 33.3% USA VantageScore Solutions, LLC 33.3% USA (v) Other undertakings Undertaking Country of incorporation oroperation Serasa Experian Pension Plan Brazil Brigstock Finance Limited England and Wales Experian Medical Plan Limited England and Wales Experian Pension Scheme England and Wales Experian Retirement Savings Plan England and Wales Experian Retirement Savings Trustees Limited England and Wales Experian Trustees Limited England and Wales Experian UK Approved All-Employee Share Plan England and Wales The Pension and Life Assurance Plan of Sanderson Systems Limited England and Wales Versorgungsordnung der Barclays Industrie Bank GmbH vom April 1988 (incl. amendments) Germany The Experian Ireland Pension Plan Ireland The Experian plc Employee Share Trust Jersey Compuscan Team Investment Trust South Africa Experian Personal Investment Plan USA These undertakings are not subsidiaries or associates. Brigstock Finance Limited is a finance company . The other undertakings operate in connection with the Group’s shar e incentive plans, pension arr angements in the UK, the USA, Br azil, South Afric a, Germany and Ir eland, and the provision of medical cover in the UK. T . Related undertakings at 31 Mar ch 2022 continued Experian plc Financial statements 236 Shareholder and corpor ate information Analysis of shar e register at 31 March 2022 By size of shareholding Number of shareholders % Number of shares % Over 1,000,000 137 0.7 799,052,831 82.3 100,001 to 1,000,000 366 1.7 125,769,094 13.0 10,001 to 100,000 738 3.5 26,024,853 2.7 5,001 to 10,000 556 2.6 3,854,898 0.4 2,001 to 5,000 1,968 9.3 5,915,218 0.6 1 to 2,000 17,323 82.2 9,996,916 1.0 Total 21,088 100.0 970,613,810 100.0 By nature of shareholding Number of shareholders % Number of shares % Corporates 3,265 15.5 902,256,834 93.0 Individuals 17,822 84.5 19,920,562 2.0 Treasury shares 1 – 48,436,414 5.0 Total 21,088 100.0 970,613,810 100.0 Company website A full range of in vestor information is available at www .experianplc.com. Details of the 2022 AGM, to be held in Dublin, Ir eland on Thursday , 21July 2022, ar e given on the website and in the notice of meeting. Information on the Company’s share price is a vailable on the website. Electronic shareholder communic ation Shareholders may r egister for Share Portal, an electr onic communication service provided by Link Market Services (Jer sey) Limited, via the Company website at www .experianplc.com/shares. The service is free and it facilitates the use of a comprehensive r ange of shareholder services online. When registering for Shar e Portal, shar eholders can select their preferred communication method – email or post. Shareholders will r eceive a written notification of the availability on the Compan y’s website of shareholder documents, such as the Annual Report, unless they have elected to either (i) receive such notific ation by email or (ii) receive paper copies of shareholder documents, where such documents ar e available inthat format. Dividend information Dividends for the year ended 31 March 2022 A second interim dividend in respect of the year ended 31 Mar ch 2022 of35.75 US cents per ordinary shar e will be paid on 22 July 2022, to shareholders on the r egister of members at the close of business on 24June 2022. Unless shar eholders elect by 24 June 2022 to receive USdollars, their dividends will be paid in pounds sterling at a rate pershare c alculated on the basis of the exchange rate fr om US dollars topounds sterling on 1 July 2022. A fir st interim dividend of 16.0 US cents per ordinary shar e was paid on 4 February 2022. Income Access Share arr angements As its ordinary shar es are listed on the London Stock Exchange, the Company has a large number of UK r esident shareholders. In or der that shareholders may r eceive Experian dividends from a UK source, should they wish, the Income Access Shar e (IAS) arrangements ha ve been put inplace. The purpose of the IAS arrangements is to pr eserve the tax treatment of dividends paid to Experian shar eholders in the UK, in r espect of dividends paid by the Company . Shar eholders who elect, or ar e deemed to elect, to r eceive their dividends via the IAS arrangements will r eceive their dividends from a UK sour ce (rather than dir ectly from the Company) for UK tax purposes. Shareholders who hold 50,000 or fewer Experian plc shar es on the first dividend recor d date after they become shareholders, unless they elect otherwise, will be deemed to have elected to r eceive their dividends under the IAS arrangements. Shareholders who hold mor e than 50,000 shares and who wish to receive their dividends from a UK sour ce must make an election to receive dividends via the IAS arrangements. All elections remain in force indefinitely unless revoked. Unless shareholders ha ve made an election to receive dividends via theIAS arrangements, or are deemed to have made such an election, dividends will be received fr om an Irish source and will be taxed accordingly . The final date for submission of elections to receive UKsourced dividends via the IAS arr angements is 24 June 2022. Dividend Reinv estment Plan (DRIP) The DRIP enables those shareholders who r eceive their dividends under the Income Access Share arr angements to use their cash dividends to buy more shar es in the Company . Eligible shar eholders, who wish to participate in the DRIP in respect of the second interim dividend for the year ended 31 March 2022, to be paid on 22 July 2022, should return acompleted and signed DRIP application form, to be received by the registr ars no later than 24 June 2022. Shareholders should contact theregistr ars for further details. 237 Experian plc Annual Report 2022 Shareholder and c orpor ate information Capital Gains T ax (CGT) base c ost for UK shareholders On 10 October 2006, GUS plc separ ated its Experian business from its Home Retail Group business by way of demer ger . GUS plc shar eholders were entitled to r eceive one share in Experian plc and one shar e in Home Retail Group plc for every shar e they held in GUS plc. The base cost of any GUS plc shares held at demer ger is apportioned forUK CGT purposes in the ratio 58.235% to Experian plc shar es and 41.765% to Home Retail Group plc shar es. This is based on the closing prices of the respective shar es on their first day of trading after their admission to the Ocial List of the London Stock Exchange on 11October2006. F or GUS plc shares acquired prior to the demer ger of Burberry on 13December 2005, which ar e aected by both the Burberry demerger and the subsequent separation of Experian and Home R etail Group, the original CGT base cost is apportioned 50.604% to Experian plc shares, 36.293% to Home Retail Group plc shar es and 13.103% to Burberry Group plc shares. Shareholder security Shareholders ar e advised to be wary of any unsolicited advice, oerstobuy shares at a discount or oer s of free reports about the Company .More detailed information on such matters c an be found at www .moneyadviceservice.org.uk. Details of any share dealing facilities that the Company endorses will be included on the Company’s website orin Company mailings. The Unclaimed Assets Register Experian owns and participates in The Unclaimed Assets Register , which provides a sear ch facility for shareholdings and other financial assets thatmay have been forgotten. For further information, please contact TheUnclaimed Assets Register , The Sir John Peace Building, Experian W ay , NG2 Business Park, Nottingham, NG80 1ZZ, United Kingdom (T +44 (0) 333 000 0182, E [email protected]) or visit www .uar .co.uk. American Depositary R eceipts (ADR) Experian has a sponsored Level 1 ADR pr ogramme, for which J.P . Mor gan Chase Bank, N.A. acts as Depositary . This ADR pr ogramme is not listed ona stock exchange in the USA and tr ades on the highest tier of the US over-the-counter market, OTCQX, under the symbol EXPGY . Each ADR repr esents one Experian plc ordinary shar e. F urther information can beobtained by contacting: Shareowner Services J.P . Morgan Chase Bank, N.A . PO Box 64504 St. P aul, MN 55164-0504 USA T +1 651 453 2128 (from the US A: 1 800 990 1135) E Visit www .shareowneronline.com, then select ‘Contact Us’ W www .adr .com Financial calendar Second interim dividend record date 24 June 2022 Trading update, first quarter 14 July 2022 AGM 21 July 2022 Second interim dividend payment date 22 July 2022 Half-yearly financial report 16 November 2022 Trading update, third quarter 17 January 2023 Preliminary announcement of full-year results May 2023 Contact information Corporate headquarter s Experian plc Newenham House Northern Cross Malahide Road Dublin 17 D17 A Y61 Ireland T +353 (0) 1 846 9100 F +353 (0) 1 846 9150 Investor relations E [email protected] Registered oce Experian plc 22 Grenville Str eet St Helier Jersey JE4 8PX Channel Islands Registered number – 93905 Registr ars Experian Shareholder Services Link Market Services (Jersey) Limited 12 Castle Street St Helier Jersey JE2 3RT Channel Islands T 0371 664 9245 T (for calls fr om outside the UK) +44 800 141 2952 E experian@linkregistr ars.com Calls are char ged at the standard geogr aphic rate and will v ary by provider . Calls from outside the United Kingdom will be char ged at the applicable international r ate. Lines ar e open from 8.30am to 5.30pm (UK time) Monday to Friday excluding public holiday s in England and W ales. Stock ex change listing information Exchange: London Stock Exchange, Pr emium Main Market Index: FTSE 100 Symbol: EXPN Shareholder and corpor ate information continued Experian plc Shareholder and corpor ate information 238 Glossary The following abbreviations ar e used in this Annual Report, and ar e taken to have the following meanings: Abbreviation Meaning AFS Arvato Financial Solutions AGM Annual General Meeting AI Artificial intelligence APAC Asia Pacific API Application Programming Interface B2B Business-to-Business B2B2C Business-to-Business-to-Consumer B2C Business-to-Consumer Benchmark EBIT Benchmark earnings before interest and tax. See note 6 to the Group financial statements Benchmark EBITDA Benchmark earnings before interest, tax, depreciation and amortisation. See note 6 to the Group financial statements Benchmark EPS Benchmark earnings per share. See note 6 to the Group financial statements Benchmark operating cash flow See note 6 to the Group financial statements Benchmark PBT Benchmark profit before tax. See note 6 to the Group financial statements CCM Experian's email/cross-channel marketing business (a discontinued operation) CCPA California Consumer Privacy Act CDP Formerly known as Carbon Disclosure Project, a non-profit charity that runs the global environmental disclosure system CEO Chief Executive Ocer CFO Chief Financial Ocer CFPB Consumer Financial Protection Bureau CGU Cash-generating unit CIP Co-investment Plans Code The UK Corporate Governance Code Company Experian plc COO Chief Operating Ocer CPIH The Consumer Price Index including owner occupiers' housing costs CPRA California Privacy Rights Act DEFRA The UK government’s Department for Environment, Food and Rural Aairs DEI Diversity, equity and inclusion EITS Experian Information Technology Services EMEA Europe, Middle East and Africa EPS Earnings per share ERG Employee Resource Group ERMC Executive Risk Management Committee ESEF European Single Electronic Format ESG Environmental, Social and Governance FBU Fair, balanced and understandable FCA The UK Financial Conduct Authority FRS Financial Reporting Standard FTE Full-time equivalent FVOCI Fair value through Other comprehensive income FVPL Fair value through profit or loss FX Foreign exchange rate(s) FY18 Year ended 31 March 2018 FY19 Year ended 31 March 2019 FY20 Year ended 31 March 2020 FY21 Year ended 31 March 2021 FY22 Year ended 31 March 2022 FY23 Year ending 31 March 2023 FY24 Year ending 31 March 2024 GAAP Generally Accepted Accounting Practice GDP Gross Domestic Product GDPR General Data Protection Regulation H1 The first half of Experian’s financial year, being the six months ending 30 September H2 The second half of Experian’s financial year, being the six months ending 31 March 239 Experian plc Annual Report 2022 Glossar y Abbreviation Meaning HMRC The UK’s ‘Her Majesty’s Revenue and Customs’ IAS International Accounting Standard IAS arrangement Income Access Share arrangement for the payment of dividends from a UK source IASB International Accounting Standards Board IBOR Interbank oered rate IFRIC International Financial Reporting Standards Interpretations Committee IFRS or IFRSs International Financial Reporting Standards IP Intellectual property IRS The US Internal Revenue Service ISO International Organization for Standardization KPI Key performance indicator Last Year Year ended 31 March 2021 LGPD Brazil General Data Protection Law LIBOR London Interbank Oered Rate MSCIP Marketing Services Consumer Information Portal NED Non-executive director NGO Non-governmental organisation NPS Net Promoter Score OCI Other comprehensive income OpCo Group Operating Committee The Policy Directors’ remuneration policy PSP Performance Share Plan Q1 The first quarter of Experian’s financial year, being the three months ending 30 June Q2 The second quarter of Experian’s financial year, being the three months ending 30 September Q3 The third quarter of Experian’s financial year, being the three months ending 31 December Q4 The fourth quarter of Experian’s financial year, being the three months ending 31 March ROCE Return on capital employed SaaS Software-as-a-Service SBTi Science Based Target initiative SOFR Secured Overnight Financing Rate SONIA Sterling Overnight Index Average TCFD Task Force on Climate-related Financial Disclosures This year Year ended 31 March 2022 TSR Total shareholder return WACC The Group’s pre-tax weighted average cost of capital Glossary continued Experian plc Glossary 240 Sustai nabi lity: at a glance 241 Experian plc Annual Report 2022 Sustainabilit y: at a glance Social Improving financial health Supporting UN Sustainable Development Goals - Targets 1.4, 8.10, 9.3 Number of people with profiles in Experian’s consumer information bureaux 1.4bn Number of free consumer memberships 134m Value of debt renegotiated by consumers through Experian's Limpa Nome in FY22 US$5.9bn Total people reached by our social innovation products since 2013 82m Target to reach people through social innovation products by 2025 100m Total people connected through our United for Financial Health education programme since October 2020 87m Target to connect people through United for Financial Health by 2024 100m Unbanked people who could benefit through alternative data sources and Experian technology platforms 1.7bn Treating data with respect Global Data Principles of security, accuracy, fairness, transparency and inclusion Yes Rigorous security controls based on ISO 27001 Yes Cyber Essentials Certification Yes Employees Glassdoor employee rating 4.3 Gender diversity targets set Yes Signatory of UN Women’s Empowerment Principles Yes Mandatory annual training for all employees: Code of Conduct, Security and data, and Anti-corruption Yes Employee engagement score 78% Certified as a Great Place to Work 20 countries Supply Chain A member of the Slave-Free Alliance Yes Suppliers must comply with our Supplier Code of Conduct, which is aligned with UN Universal Declaration of Human Rights Yes Supplier Diversity Programme Yes Environment Committed to becoming carbon neutral in our own operations by 2030¹ Science-based target for 2030 set Yes Scope 1 and 2 market-based emissions since 2019 Reduced by 44% Scope 3 emissions within science-based target, since 2019 Increased by 2% Carbon intensity (CO 2 e per US$1m of revenue) since 2019 Reduced by 19% Carbon emissions oset during the year 40% Electricity from renewable sources 32% CDP Climate Change score B CDP Supplier Engagement Rating A Governance Independent Board members, including independent Chair 73% Female Board members 36% Ethnically diverse Board members 2 Board meets Parker Review Committee recommendation on ethnic diversity Yes Independence of Audit, Remuneration and Nomination and Corporate Governance committees 100% Independent Chair and clear division of responsibilities between the Chair and CEO Yes Independent external evaluation of the Board’s performance, occurs every three years Yes Executive remuneration linked to Group performance Yes Voting rights for ordinary shareholders Yes 1 A ll r ef er enc e s in th is A nnu al Re po r t to ‘c ar b on n eu tr al in o ur o wn o pe ra ti on s by 20 30 ’ in clu de s al l Sc op e 1 an d 2 em is si ons , p lus w it hi n Sc op e 3 th e ca te go ri e s of ‘ Pur ch as ed G o od s an d Se r v ic es’, ‘B us ine s s T ra ve l ’ an d ‘Fu el -an d - en er gy -r el at ed a c ti vi ti es’ (w hi ch r ep re se nt 8 3% of o ur b as el ine e mi ss io ns in S co p e 3). Th is i s ali gn ed w i t h th e em is sio ns c ov er ed b y ou r sc ie nc e- b as ed t ar ge t ap pr ov ed b y th e SB T i. Ref er t o pa ge s 64 -71 for f ur t he r inf or ma ti on . Notes 242 Experian plc Designed and produced by Fri e nd www .fr ie nds tu d io .c om Print : Purepr int Group Th is re po r t ha s b ee n pr inte d on A ma de us Si lk whi ch is F SC ® c er t ifi ed a nd ma de f ro m 100% Ele me nta l Chl or in e Fre e (EC F ) pul p. T h emil l and t he p ri nte r are b ot h ce r ti fie d toIS O 14001 env iro nm ent al ma nag em ent . T her ep or t was p r inte d us ing v eg et abl e ba se d ink s byaC ar bo nN eut r al® p rin ter. Annual Rep or t 2022 ww w.experianplc.com/annualreport Improv ing F inancial He alth Repo r t 2022 w ww.experianp lc.com/E xper ian-Imp roving- Financial-Health-Repor t- 2022 E xp erian pl c websi te www .e xpe ri an pl c. co m Corpora te headquarters Expe ria n p lc Newenham Hous e Nor thern Cross Malahid e Road Dublin 1 7 D1 7 A Y6 1 Ireland T + 353 (0) 1 84 6 91 0 0 w ww.experianplc.com Operationa l headquarters Expe ria n 4 75 A nton B oulevar d Costa Mesa C A 9 2626 United State s T + 1 71 4 830 700 0 www .e xpe ri a n. co m Serasa E xperia n Av . Doutor Heitor Jos é Reali 3 60 CEP 1 357 1 -385 São Carlo s Brazil T +55 1 1 3 004 7728 ww w.serasaex perian.com.br Expe ria n Th e Sir John Pe ace B uilding Exp er i an W ay NG2 Busin es s Park Not tingham NG80 1 ZZ United Kingdom T +4 4 (0) 1 1 5 94 1 088 8 www .e xpe ri a n. co .u k
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