Half-year Report

RNS Number : 4982F

Experian plc

17 November 2020

news release

Half-yearly financial report

7am, 17 November 2020 ─ Experian plc, the global information services company, today issues its half-yearly financial report for the six months ended 30 September 2020 .

Brian Cassin, Chief Executive Officer, commented:

"Against the backdrop of the global pandemic we delivered a resilient performance in H1, with organic revenue growth of 2% and modest progress in constant currency EBIT. Q2 organic revenue growth was 5%, at the top end of our guidance range. The drivers of growth stemmed largely from North America and Brazil which offset COVID-19 related declines in other territories. The stand out performance across the Group was Consumer Services, where we now have nearly 100m free consumer memberships. For Q3 we expect organic revenue growth in the range of 3% to 5%.

"While COVID-19 has significantly impacted the macroeconomic environment, it has also catalysed trends which play to Experian's strengths. Innovation is our bedrock and has driven success for us in the marketplace. Once the crisis abates, we believe we will be strongly positioned to take advantage of the secular growth trends and we are excited by the opportunities we see ahead."

Benchmark and Statutory financial highlights
	2020 US$m	2019 US$m	Actual rates growth %	Constant rates growth %	Organic growth %²
Benchmark¹
Revenue - ongoing activities	2,487	2,495	-	3	2
Revenue	2,487	2,495	-	3	n/a
Benchmark EBIT - ongoing activities³	648	670	(3)	1	n/a
Total Benchmark EBIT	648	670	(3)	1	n/a
Benchmark EPS	USc 47.9	USc 49.1	(2)	2	n/a
Statutory
Revenue	2,487	2,495	-	3	n/a
Operating profit	546	556	(2)	2	n/a
Profit before tax	458	480	(5)	(5)	n/a
Basic EPS	USc 36.7	USc 39.0	(6)	(9)	n/a
First interim dividend	USc 14.5	USc 14.5	-	n/a	n/a

1 See Appendix 3 (page 14) and note 5 to the interim financial statements (pages 23-25) for definitions of non-GAAP measures.

2 Organic revenue growth at constant currency.

3 See page 14 for reconciliation of Benchmark EBIT to Profit before tax.

Resilient first-half financial performance

Revenue growth for H1 at constant currency was +3%.
H1 organic revenue +2%, with Q1 (2)%, Q2 +5%.
H1 organic revenue in North America and Latin America +7% and +5% respectively. Organic revenue in UK and Ireland and EMEA/Asia Pacific of (12)% and (18)% respectively.
H1 organic Business-to-Business (B2B) revenue (2)%, organic Consumer Services revenue +13%.
Q2 organic revenue in North America and Latin America +9% and +10% respectively. Q2 UK and Ireland and EMEA/Asia Pacific (8)% and (17)% respectively.
Q2 organic revenue growth in B2B and Consumer Services +1% and +17% respectively.
US mortgage growth added 3% to Q2 growth for the Group.
H1 Benchmark EBIT growth at constant exchange rates of 1%.
H1 Benchmark EBIT margin of 26.1% at actual exchange rates (2019: 26.9%).
H1 Benchmark EPS growth of 2% at constant rates and (2)% at actual exchange rates.
First interim dividend of 14.5 US cents per ordinary share, unchanged year-on-year.

Contacts

Experian

Nadia Ridout-Jamieson Investor queries +44 (0)20 3042 4278

Gerry Tschopp Media queries

Finsbury

Rollo Head +44 (0)7768 994 987

Jenny Davey +44 (0)7901 513 610

There will be a presentation today at 9.30am (UK time) to analysts and investors via conference call. To view the slides and listen in online please go to www.experianplc.com for the link.

Experian will update on third quarter trading for FY21 on 19 January 2021.

Roundings

Certain financial data has been rounded within this announcement. As a result of this rounding, the totals of data presented may vary slightly from the actual arithmetic totals of such data.

Forward looking statements

Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results referred to in these forward-looking statements. See page 13 for further information on risks and uncertainties facing Experian.

Company website

Neither the content of the Company's website, nor the content of any website accessible from hyperlinks on the Company's website (or any other website), is incorporated into, or forms part of, this announcement.

About Experian

Experian is the world's leading global information services company. During life's big moments - from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers - we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.

We have 17,800 people operating across 45 countries and every day we're investing in new technologies, talented people and innovation to help all our clients maximise every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.

Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group.

Part 1 - Chief Executive Officer's review

Experian made positive progress in the first half even as the COVID-19 pandemic posed significant challenges to people, clients and the world economy. We delivered organic revenue growth of 2% for the half, which included a (2)% decline in Q1 and a rebound to growth of 5% in Q2. Q2 growth was at the top end of our guidance range. Positive drivers of performance stemmed largely from North America and Brazil while our other regions remained in negative territory. We also benefitted from growth in revenues from countercyclical activities and as the strategic decisions and investments we have made over the years pay-off, notably those in Consumer Services.

Half year financial highlights

· Revenue growth of 3% at constant currency and organic revenue growth of 2%. At actual exchange rates revenue growth was flat.

· Organic revenue growth in North America was 7% and 5% in Latin America, including very strong contributions from Consumer Services. The UK and Ireland and EMEA/Asia Pacific regions were impacted negatively, down (12)% and (18)% respectively.

· B2B organic revenue decline of (2)% as strength in North America Data and Decisioning was offset by declines elsewhere.

· Growth in Consumer Services was very strong, with organic revenue up 13%, driven by North America and Brazil.

· Growth in Benchmark EBIT was 1% at constant exchange rates, down (3)% at actual exchange rates after significant currency translation headwinds.

· Organic cost growth was 2%, in line with our guidance range. This reflected higher volume-variable costs, marketing investment and ongoing investment in labour and other costs to support innovation and technology modernisation.

· Our Benchmark EBIT margin was 26.1%, down 70bps at constant currency and down 80bps at actual exchange rates.

· We delivered growth in Benchmark earnings per share of 2% at constant exchange rates and (2)% at actual exchange rates.

· EBIT conversion into cash was strong, with a conversion rate of Benchmark EBIT into Benchmark operating cash flow of 89%.

· We ended the first half in the lower half of our leverage range at 2.2x, compared to our target of 2.0-2.5x for Net debt to Benchmark EBITDA.

B2B declined modestly overall, recovering as the half progressed:

· Organic revenue for Data was flat in the first half, as growth in North America offset declines in other regions. Strength in US mortgage volumes, Experian Ascend and relative resilience in automotive helped to offset weaker conditions for unsecured credit origination and marketing expenditure by clients.

· We signed new Ascend clients around the world. Ascend is now live in nine countries and the cumulative total contract value for Ascend has reached US$347m.

· We made progress towards rolling out positive data products in Brazil. We have launched 15 positive data products and attributes, with plans to launch 29 more by calendar year end.

· Decisioning organic revenue was down (6)% in the first half mainly as customers delayed decisions on large credit decisioning software implementations. Healthcare delivered modest growth in the half.

· Strategically we made good progress in cloud-based decisioning (Experian One), and fraud and identity management, with growth in pipeline and bookings.

We made significant progress in Consumer Services, with mid-teens organic revenue growth:

· We now have 96m consumer free memberships, up 26m year-on-year. We have 35.8m free members in the USA, 51.8m in Brazil and 8.5m in the UK.

· North America delivered organic revenue growth of 13% as we invest behind the success of Experian Boost, build our membership base and expand across new verticals. Experian Boost now has 4.9m unique account connections.

· Performance in Latin America has been outstanding, and revenue was up 156% organically, with strong growth in Limpa Nome and credit matching services.

· Consumer Services in the UK had a tough start due to reductions in lending volumes. We saw some stabilisation of performance of subscription revenues in Q2 and we launched Experian Boost in the UK in early November.

Environment, Social and Governance

· Transforming financial lives is at the core of our ESG strategy. From 2013 to 2020 we helped more than 14 million people renegotiate their debt using Limpa Nome, and in total we have reached 35 million people with our social innovation products specifically developed to deliver societal benefits. The recent Experian Boost launch in the UK is another example of our commitment to the expansion of access to credit and credit education.

· The COVID-19 crisis has highlighted the importance of data to business, consumers, charities, governments and our communities; and we have taken the lead in using data and analytical models to help governments in many geographies track the course of the pandemic and target financial support to the vulnerable.

· We have also launched United for Financial Health, a financial recovery programme to help communities significantly affected by COVID-19, which includes strategic partnerships with non-profit organisations like Operation HOPE which provides financial coaching. We aim to reach 15 million people and small businesses in FY21 through this programme.

· We were pleased to see our employee engagement score increase to 76%, and in North America we have been recertified as a Great Place to Work for the third year in a row.

· Following a recent appointment to our Board, it is now comprised of 40% women and 70% independent members (including the Chairman). Our Board meets the recommendations of the Hampton-Alexander Review on gender diversity and the Parker Review on ethnic diversity.

· We are committed to helping tackle climate change and reducing our impact on the environment. Last year we cut our absolute carbon emissions by a further 8% and reduced our carbon intensity by 14%. Building on this, we have committed to be carbon neutral in own operations by 2030, and to gradually carbon offset our scope 1 and 2 emissions over the next 5 years.

Operating efficiency

· One of our key operating principles has been to position ourselves to emerge strongly from this global crisis and we acted quickly to reduce discretionary costs while continuing to invest for the long term. We have not availed ourselves of any government furlough schemes.

· We cut back on discretionary spend, froze our headcount and delayed non-critical investment, while also taking a deliberate decision to increase investment in marketing expenditure.

· We previously announced that we have embarked on a transformation programme in the UK and Ireland. The objectives of this programme are to simplify our technology estate, enhance customer experience and to return to profitable growth. During the first half of FY21 we have commenced that programme and initiated a number of additional restructuring measures in other regions.

· These actions are expected to give rise to an exceptional restructuring charge of around US$50 million in FY21, of which US$22m was recorded in the first half. These activities are predominantly related to improving operating performance and are expected to deliver year over year run-rate savings of US$40m in the year ending 31 March 2022.

· For H2 we expect organic cost growth of 2% to 3%.

Funding and liquidity

· We further strengthened our funding position while also supporting investment activities.

· We continued to invest in data, technology and innovation through capital expenditure. Capital expenditure was US$187m, which represented 8% of total revenue.

· Total acquisition outflow was cash of US$19m and 7.2m Experian plc shares. We completed the acquisition of a majority stake in a German credit bureau, the Risk Management division of Arvato Financial Solutions (AFS), with the consideration paid in shares rather than cash.

· We have announced a first interim dividend of 14.5 US cents per share, unchanged year-on-year. This will be paid on 5 February 2021 to shareholders on the register at the close of business on 8 January 2021.

· At 30 September 2020, we had US$0.5bn of bank debt, all of which was repaid during October 2020. We held US$2.5bn of undrawn committed bank borrowing facilities which have an average remaining tenor of four years. These include our core US$1.95bn club facility which is undrawn and committed until December 2024.

· On 5 October 2020 we issued £400 million of 0.739% bonds due 2025. This provides funding to replace the bond maturing in October 2021. Including this, our bonds total US$3.9bn and have an average remaining tenor of seven years. The next maturity after October 2021 is not until September 2024.

· As at 30 September 2020 Net debt to Benchmark EBITDA was 2.2x (on a pre IFRS 16 basis), compared to our target leverage range of 2.0-2.5x.

Other financial developments

Benchmark PBT was US$588m, up 2% at constant currency and (3)% at actual rates, after lower Benchmark net interest expense of US$60m (2019: US$66m). The reduction reflects lower average global interest rates. For the full year, we expect net interest expense to be around US$120m.

The Benchmark tax rate was 26.2% unchanged from 2020. For the full year we expect a rate in the range of 26% to 27%, taking into account expected profits mix for the year.

Our Benchmark EPS was 47.9 US cents, an increase of 2% at constant currency and (2)% at actual exchange rates as the weighted average number of ordinary shares (WANOS) increased to 907m (2019: 903m), inclusive of the shares delivered in connection with the purchase of our stake in the Risk Management division of Arvato Financial Solutions. For the full year, we expect WANOS of circa 910m.

Benchmark operating cash flow increased 69% at actual rates and our Benchmark operating cash flow conversion was 89% (2019: 51%). The increase is due to the mix of growth, strong control of working capital, reduced infrastructure investment, and some phasing.

Foreign exchange translation was a 4% headwind to Benchmark EPS in the half year. This was predominantly due to the Brazilian real, which weakened by 36% relative to the US dollar versus the prior year. For the full year, we expect a headwind to Benchmark EBIT of 4-5%, assuming current foreign exchange rates prevail.

Part 2 - Regional highlights for the six months ended 30 September 2020

We delivered good organic revenue growth in North America and Latin America, particularly in Consumer Services, while the UK and Ireland and EMEA/Asia Pacific regions declined.

	Year-on-year % change in organic revenue - for the six months ended 30 September 2020						EBIT margin
	% of Group revenue^¹	Data	Decisioning	B2B²	Consumer Services	Total	Total
North America	68	5	1	4	13	7	36.2%
Latin America³	11	(2)	(3)	(2)	156	5	23.4%
UK and Ireland	13	(11)	(10)	(11)	(14)	(12)	10.3%
EMEA/Asia Pacific	8	(11)	(26)	(18)	n/a	(18)	(17.3)%
Total Global	100	-	(6)	(2)	13	2	26.1%

1 For the six months ended 30 September 2020.

2 B2B = Business-to-Business segment consists of Data and Decisioning business sub-divisions.

See note 5 to the interim financial statements on pages 23-25 for definition of organic revenue growth.

3 The results for the six months ended 30 September 2019 have been restated following the reclassification of our Consumer Services business in Latin America to the Consumer Services business segment; previously our Consumer Services business in this region was not sufficiently material to be disclosed separately.

North America

Revenue in North America was US$1,687m, with both total revenue and organic revenue growth of 7%. Organic revenue growth was 4% in Q1 and 9% in Q2.

North America B2B delivered organic revenue growth of 4%. Data grew 5%, with robust mortgage volumes generated by historically low interest rates and as consumers sought to reduce expenses through refinancing activity. This offset significantly lower volumes in relation to unsecured lending due to tighter bank lending standards as well as lower revenues from targeting as retailers reduced marketing expenditure. We secured new and expanded client relationships for Experian Ascend, including for our latest module Ascend Portfolio Loss Forecaster which helps clients with recession-relevant fraud and identity analysis. Sure Profile, a proposition which helps to tackle synthetic identity fraud, also had a good reception in the market following its launch in May. In addition, we introduced a range of offers to help our clients navigate the current environment, including recovery scores, forbearance triggers and other downturn attributes. Automotive revenue was down modestly, recovering as the half progressed in response to economic stimulus support.

Decisioning revenue was up 1% organically. Health delivered growth overall, with positive progress in patient access and collections. Authentication volumes were also strong as clients sought to verify patient identities in virtual settings as they turned to online healthcare provision during lockdowns. We were also successful in securing new client wins. Elsewhere, strength in data quality helped offset weakness in decisioning software.

Consumer Services performed strongly and delivered organic revenue growth of 13%. Consumers, who have become more concerned about their finances, have sought credit monitoring services and subscription revenues grew strongly. In addition, we saw growth in credit matching services, even as lenders tightened up credit criteria and restricted credit offers, as lenders choose to remain with platforms that send them the best quality leads. We also expanded into new verticals, with a strong start for our automotive insurance matching service. We have further enhanced Experian Boost and consumers can now add payments from streaming services (including Netflix) to their credit scores as an eligible tradeline. We also invested in marketing to drive awareness and consideration of the Experian brand. As a result, Experian Boost has now reached 4.9m connected accounts and our free membership base totalled 35.8m, up from 24m free members in the first half of FY20.

North America Benchmark EBIT increased by 12% to US$610m. The Benchmark EBIT margin increased by 160 basis points year-on-year to 36.2%. This reflected good operating leverage in B2B and strong cost control, even as we invested in customer acquisition in support of Consumer Services.

Latin America

Revenue in Latin America was US$278m, with both total and organic revenue growth of 5%. Organic revenue declined by (1)% in Q1 recovering to 10% growth in Q2.

B2B organic revenue declined (2)%. In Brazil, growth in positive data, Experian Ascend and the automotive vertical was offset by bureau volume reductions. Revenues recovered as the half progressed with some volume rebound and having introduced COVID-19 attributes to help clients analyse and understand the impact of the pandemic on their lending portfolios. We have also made good progress with new propositions as we roll out positive data scores, trend attributes and due to new implementations for Experian Ascend. So far we have launched 15 positive data products and attributes, with plans to launch 29 more by calendar year end. Spanish Latin America declined due to bureau volume reductions and delays in software implementations.

Consumer Services delivered a very strong performance, with organic revenue up 156%. This was supported by the strength of our brand in Brazil which has helped our consumer base to scale rapidly. We now have 51.8m free members in Brazil. We introduced Score Turbo, the Brazilian equivalent of Experian Boost, a service where consumers can improve their credit scores through more timely bill payments, and which will help to drive higher levels of consumer engagement. Revenue growth has been driven by higher usage of Limpa Nome Online, a consumer debt-resolution service, and growth of eCred, our credit-matching marketplace.

Benchmark EBIT in Latin America was US$65m, down (4)% at constant exchange rates. The Benchmark EBIT margin from ongoing activities at actual exchange rates was 23.4% (2019: 27.6%) mainly reflecting negative operating leverage due to the reduction in B2B revenues during the initial phase of the pandemic as well as revenue mix effects.

UK and Ireland

Revenue in the UK and Ireland was US$331m. Total and organic revenue declined (12)%. B2B organic revenue declined (11)% and Consumer Services declined (14)%. Organic revenue declined by (15)% in Q1 and by (8%) in Q2.

B2B revenue declined (11)%, impacted by the contraction in UK bank consumer lending and as advertisers reduced marketing expenditure. This led to lower consumer credit reference volumes, delays to software implementations and reduced revenues in marketing services. Business credit volumes were robust, driven by government loan schemes. The new business pipeline is encouraging and we are supporting clients as they seek process efficiency opportunities and greater customer insights.

Consumer Services declined (14)% as CreditMatcher comparison revenues were heavily impacted by the contraction in credit supply, especially during the early stages of the health crisis. We have however continued to grow our free membership base, which reached 8.5m consumers, and our paid membership base also expanded in Q2, which will support future financial performance. In early November, we were delighted to launch Experian Boost which will help consumers to permission new data sources which could help their credit score.

Benchmark EBIT performance at constant exchange rates in the UK and Ireland was US$34m, down from US$75m the year before. The Benchmark EBIT margin from ongoing activities at actual exchange rates was 10.3% (2019: 20.2%), reflecting the impact of the pandemic on revenues during the half.

EMEA/Asia Pacific

In EMEA/Asia Pacific, revenue was US$191m, with total revenue decline at constant rates of (2)% and an organic decline of (18)%. The difference relates to the contribution from Compuscan, the Risk Management division of Arvato Financial Solutions and other smaller acquisitions. Organic revenue declined by (20)% in Q1 and by (17)% in Q2.

Bureaux volumes in EMEA/Asia Pacific were severely impacted during the initial phases of lockdown, with the trajectory improving as lockdowns eased over the summer months. Italy, Spain, South Africa and India were heavily impacted, while the Netherlands, Norway, Denmark, Singapore and Malaysia were generally more robust. Our newly acquired credit bureau in Germany has performed well since we completed the acquisition in June and has delivered good growth on a like for like basis.

Decisioning revenues were also impacted as clients delayed investment decisions and cancelled software implementations. There has been a pick-up in client activity levels in recent months with new business wins for collections software, Experian One use cases and X-Score (a score based on alternative data), and we expect to realise the benefits of these wins during FY22.

Benchmark EBIT was US$(33)m (2019: US$(5)m). Benchmark EBIT margin from ongoing activities at actual exchange rates was (17.3)% (2019 (2.5)%, mainly reflective of the reduction in revenue.

Group financial results

Business mix including % change in organic revenue year-on-year for the six months ended 30 September 2020

Segment	Business unit	% of Group revenue¹	Organic revenue growth %²
Segment	Business unit	% of Group revenue¹	Q1	Q2	H1
North America		68%	4%	9%	7%
Data	CI / BI bureaux	26%	4%	14%	9%
	Automotive	5%	(3)%	1%	(1)%
	Targeting	3%	(15)%	(16)%	(15)%
Decisioning	Health	8%	1%	4%	3%
Decisioning	DA / Other	5%	(1)%	(0)%	(1)%
Consumer	Consumer Services	21%	10%	16%	13%
Latin America		11%	(1)%	10%	5%
Data	CI / BI bureaux	7%	(5)%	1%	(2)%
Data	Other	1%	12%	7%	9%
Decisioning	DA / Other	2%	(9)%	3%	(3)%
Consumer	Consumer Services	1%	104%	197%	156%
UK and Ireland		13%	(15)%	(8)%	(12)%
Data	CI / BI bureaux	5%	(14)%	(8)%	(11)%
Data	Targeting / Auto	1%	(21)%	(3)%	(12)%
Decisioning	DA / Other	4%	(13)%	(8)%	(10)%
Consumer	Consumer Services	3%	(18)%	(11)%	(14)%
EMEA/Asia Pacific		8%	(20)%	(17)%	(18)%
EMEA		5%	(25)%	(16)%	(20)%
Asia Pacific		3%	(13)%	(18)%	(16)%
Total global		100%	(2)%	5%	2%

1 Percentage of group revenue calculated based on H1 FY21 revenue at actual exchange rates.

2 Ongoing activities only, at constant exchange rates.

CI = Consumer Information, BI = Business Information, DA = Decision Analytics.

Revenue by region

Half year ended 30 September	2020 US$m	2019 US$m	Growth %
Half year ended 30 September	2020 US$m	2019 US$m	Total at actual exchange rates	Total at constant exchange rates	Organic at constant exchange rates
North America
Data	836	791		6	5
Decisioning	331	322		3	1
Business-to-Business	1,167	1,113		5	4
Consumer Services	520	460		13	13
Total ongoing activities	1,687	1,573	7	7	7
Exited business activities	-	-
Total North America	1,687	1,573
Latin America
Data	213	286		(1)	(2)
Decisioning	38	52		(3)	(3)
Business-to-Business	251	338		(1)	(2)
Consumer Services¹	27	14		156	156
Total ongoing activities	278	352	(21)	5	5
Exited business activities	-	-
Total Latin America	278	352
UK and Ireland
Data	163	182		(11)	(11)
Decisioning	98	109		(10)	(10)
Business-to-Business	261	291		(11)	(11)
Consumer Services	70	80		(14)	(14)
Total ongoing activities	331	371	(11)	(12)	(12)
Exited business activities	-	-
Total UK and Ireland	331	371
EMEA/Asia Pacific
Data	121	104		19	(11)
Decisioning	70	95		(24)	(26)
Total ongoing activities	191	199	(4)	(2)	(18)
Exited business activities	-	-
Total EMEA/Asia Pacific	191	199
Total revenue - ongoing activities	2,487	2,495	-	3	2
Total revenue - exited business activities	-	-
Revenue	2,487	2,495	-	3

1 The results for the six months ended 30 September 2019 have been restated following the reclassification of our Consumer Services business in Latin America to the Consumer Services business segment; previously our Consumer Services business in this region was not sufficiently material to be disclosed separately.

See Appendix 1 (page 14) and note 5 to the interim financial statements (pages 23-25) for definitions of non-GAAP measures.

See Appendix 2 (page 14) for analyses of revenue, Benchmark EBIT and Benchmark EBIT margin from ongoing activities by business segment.

Income statement, earnings and Benchmark EBIT margin analysis

Half year ended 30 September	2020 US$m	2019 US$m	Growth %
			Total at actual exchange rates	Total at constant exchange rates
Benchmark EBIT by geography
North America	610	544		12
Latin America	65	97		(4)
UK and Ireland	34	75		(56)
EMEA/Asia Pacific	(33)	(5)		(491)
Benchmark EBIT before Central Activities	676	711		(1)
Central Activities - central corporate costs	(28)	(41)
Benchmark EBIT from ongoing activities	648	670	(3)	1
Exited business activities	-	-
Benchmark EBIT	648	670	(3)	1
Net interest	(60)	(66)
Benchmark PBT	588	604	(3)	2
Exceptional items	(22)	(35)
Amortisation of acquisition intangibles	(65)	(59)
Acquisition and disposal expenses	(13)	(16)
Adjustment to the fair value of contingent consideration	2	1
Non-benchmark share of post-tax (loss)/profit of associates	(3)	36
Interest on uncertain tax provisions	(6)	(7)
Financing fair value remeasurements	(23)	(44)
Profit before tax	458	480	(5)	(5)
Group tax charge	(126)	(125)
Profit after tax	332	355

Benchmark earnings
Benchmark PBT	588	604	(3)	2
Benchmark tax charge	(154)	(158)
Total Benchmark earnings	434	446
Owners of Experian plc	434	443	(2)	2
Non-controlling interests	-	3

Benchmark EPS	USc 47.9	USc 49.1	(2)	2
Basic EPS	USc 36.7	USc39.0	(6)	(9)
Weighted average number of ordinary shares	907m	903m

Benchmark EBIT margin - ongoing activities
North America	36.2%	34.6%
Latin America	23.4%	27.6%
UK and Ireland	10.3%	20.2%
EMEA/Asia Pacific	(17.3)%	(2.5)%
Benchmark EBIT margin	26.1%	26.9%

See Appendix 1 (page 14) and note 5 to the interim financial statements (pages 23-25) for definitions of non-GAAP measures.

See Appendix 2 (page 14) for analyses of revenue, Benchmark EBIT and Benchmark EBIT margin from ongoing activities by business segment

Group financial review

Key statutory measures

Statutory revenue

Performance in the period was resilient, revenue was stable at US$2,487m (2019: US$2,495m) notwithstanding the effects of the COVID-19 pandemic.

Statutory operating profit and profit before tax

Operating profit for the six months ended 30 September 2020 was down marginally to US$546m (2019: US$556m). The movements in Benchmark EBIT at constant currency are discussed in the Chief Executive Officer's review and Regional highlights on pages three to eight. In addition to these movements we observed exchange headwinds particularly in Brazil. Profit before tax reduced to US$458m (2019: US$480m).

Statutory Basic EPS

Basic EPS reduced to 36.7 US cents (2019: 39.0 US cents). The decrease reflects a mix of factors including a lower profit before tax, a higher tax charge and a higher number of shares in issue.

Statutory cash flow

Cash generated from operations was US$736m (2019: US$552m) reflecting improvements in working capital. Net borrowing outflows were US$196m (2019 inflows: US$839m). Reduced funding was required for acquisition activity and there were no share repurchases in the period following the suspension of our share repurchase programme (2019: US$150m). Undrawn committed bank borrowing facilities were US$2.5bn at 30 September 2020, an increase of US$325m from 31 March 2020.

Tax

The effective rate of tax based on profit before tax was 27.5%, an increase of 1.5 percentage points from the comparative period in which we benefitted from a significant non-taxable gain from an associate.

Net assets

At 30 September 2020, net assets amounted to US$2,585m (2019: US$2,317m). Capital employed, as defined in note 5(q) to the interim financial statements, was US$6,758m (2019: US$6,657m).

Equity

There was an increase in equity of US$304m from US$2,281m at 31 March 2020 with movements detailed in the Group statement of changes in total equity on page 19.

Key movements in equity during the half include:

· Profit for the period of US$332m.

· Remeasurement losses of US$13m in respect of defined benefit pension plans.

· Ordinary dividends paid of US$294m.

· Shares issued on vesting of share awards of US$17m, together with shares delivered as acquisition consideration of US$253m.

· Recognition of liability for put option over non-controlling interests of US$94m.

· Non-controlling interests of US$52m arising on business combinations.

Seasonality
In recent years, our Benchmark EBIT performance has tended to be weighted towards the second half of the year reflecting revenue seasonality; however this year revenue and profit forecasts are shorter term due to the uncertainty from the economic disruption of the COVID-19 pandemic. We are therefore only providing revenue guidance to the third quarter of the financial year.

Foreign currency

Foreign exchange - average rates

The principal exchange rates used to translate revenue and Benchmark EBIT into the US dollar are shown in the table below.

	Period ended 30 September 2020	Period ended 30 September 2019	Year ended 31 March 2020
US dollar : Brazilian real	5.38	3.95	4.12
Pound sterling : US dollar	1.27	1.26	1.27
Euro : US dollar	1.13	1.12	1.11
US dollar : Colombian peso	3,792	3,292	3,382
US dollar : South African rand	17.43	14.54	14.79

The impact of currency movements on revenue from ongoing activities is set out in note 6(c).

Foreign exchange - closing rates

The principal exchange rates used to translate assets and liabilities into the US dollar at the period end dates are shown in the table below.

	30 September 2020	30 September 2019	31 March 2020
US dollar : Brazilian real	5.65	4.16	5.20
Pound sterling : US dollar	1.29	1.23	1.24
Euro : US dollar	1.17	1.09	1.09
US dollar : Colombian peso	3,884	3,464	4,052
US dollar : South African rand	16.82	15.17	17.81

Risks

We continue to see heightened legislative and regulatory activity, particularly as it relates to privacy and information security matters. Except for these matters, the principal risks and uncertainties we face in the remaining six months of the year remain largely unchanged from those explained in detail on pages 63 to 70 of our Annual Report for the year ended 31 March 2020:

• Loss or inappropriate use of data and systems;

• Adverse and unpredictable financial markets or fiscal developments;

• New legislation or changes in regulatory enforcement;

• Failure to comply with laws and regulations;

• Non-resilient IT/business environment;

• Business conduct risk;

• Dependence on highly skilled personnel;

• Increasing competition; and

• Undesirable investment outcomes.

In the first half of the financial year, we note that new laws, new interpretations of existing laws, changes to existing regulations and regulatory scrutiny continue to increase. Recent examples include the California Consumer Privacy Act, the Brazilian General Data Protection Law and the interpretation of EU General Data Protection Regulation.

We continue to see increasing consumer litigation, particularly in the USA and Brazil.

We note continued uncertainty in the development of tax legislation in our key regions.

We continue to closely monitor the impact of COVID-19 on our business and the global economy. Our priority remains the health, safety and well-being of our employees, clients and consumers. Most of our employees are continuing to work remotely.

We are also still closely monitoring trends in geopolitical risks including market volatility, regulatory and tax policy uncertainty resulting from the US election. There is continued uncertainty related to Brexit following the UK's departure from the EU and the outcome of trading and legislative arrangements negotiated during the transition period to 31 December 2020.

Further information on financial risk management is given in note 24 to the interim financial statements.

The Chief Executive Officer's, Business and Group financial reviews on pages 3 to 12 include consideration of key uncertainties affecting us for the remainder of the current financial year. There may however be additional risks unknown to us and other risks, currently believed to be immaterial, which could turn out to be material. These risks, whether they materialise individually or simultaneously, could significantly affect our business and financial results.

Going concern

The principal risks and uncertainties and viability assessment we face in the remaining six months of the year remain largely unchanged from those explained in detail on pages 63 to 72 of our Annual Report for the year ended 31 March 2020.

The Group has a robust balance sheet with access to considerable funding and continues to adopt the going concern basis in preparing these interim financial statements. Cash flow in the period was strong with cash flow conversion of 89%. Our undrawn committed bank borrowing facilities at 30 September were US$2.5bn and have an average remaining tenor of four years. On 5 October 2020 we issued a £400m bond which matures in 2025, providing funding to replace the bond maturing in October 2021.

The directors believe that the Group is well placed to manage its financing and other business risks satisfactorily, and have a reasonable expectation that the Group will have adequate resources to continue in operational existence.

See note 2 to the interim financial statements for further detail.

Appendices

1. Non-GAAP financial information

We have identified and defined certain measures that we believe assist understanding of our performance. These measures are not defined under IFRS and they may not be directly comparable with other companies' adjusted performance measures. These non-GAAP measures are not intended to be a substitute for any IFRS measures of performance but we have included them as these are considered to be key measures used within the business for assessing the underlying performance of our ongoing businesses. Information on certain of our non-GAAP measures is set out below in the further appendices. Definitions of all our non-GAAP measures are given in note 5 to the interim financial statements.

The reconciliation of revenue from ongoing activities is set out in note 6(c) on page 27, Benchmark EBIT and Benchmark PBT in Appendix 3 below and Benchmark EPS in note 12 on page 31.

2. Revenue, Benchmark EBIT and Benchmark EBIT margin by business segment

Six months ended 30 September			Growth
	2020	2019¹	Total at constant exchange rates	Organic at constant exchange rates
	US$m	US$m	%	%
Revenue
Data	1,333	1,363	3	-
Decisioning	537	578	(5)	(6)
Business-to-Business	1,870	1,941	1	(2)
Consumer Services	617	554	13	13
Total - Ongoing activities	2,487	2,495	3	2
Exited business activities	-	-	n/a
Total revenue	2,487	2,495	3
Benchmark EBIT
Business-to-Business	532	595	(6)
Consumer Services	144	116	23
Total - Business segments	676	711	(1)
Central Activities - central corporate costs	(28)	(41)	n/a
Total - Ongoing activities	648	670	1
Exited business activities	-	-	n/a
Total Benchmark EBIT	648	670	1
Benchmark EBIT margin - Ongoing activities
Business-to-Business	28.4%	30.7%
Consumer Services	23.3%	20.9%
Total Benchmark EBIT margin	26.1%	26.9%

1. The results for the six months ended 30 September 2019 have been restated following the reclassification of our Consumer Services business in Latin America to the Consumer Services business segment; previously our Consumer Services business in this region was not sufficiently material to be disclosed separately.

3.Summary reconciliation of Benchmark EBIT to statutory profit before tax

Six months ended 30 September	2020	2019
Six months ended 30 September	US$m	US$m
Benchmark EBIT	648	670
Net interest expense	(60)	(66)
Benchmark PBT	588	604
Exceptional items and other adjustments made to derive Benchmark PBT²	(130)	(124)
Profit before tax	458	480

2. See note 8 to the interim financial statements.

Appendices (continued)

4. Cash flow and Net debt summary

Six months ended 30 September	2020	2019
Six months ended 30 September	US$m	US$m
Benchmark EBIT	648	670
Amortisation and depreciation charged to Benchmark EBIT	213	204
Benchmark EBITDA	861	874
Net capital expenditure	(187)	(223)
Increase in working capital	(110)	(317)
Principal lease payments	(26)	(26)
Benchmark profit retained in associates	(3)	(1)
Charge for share incentive plans	39	33
Benchmark operating cash flow	574	340
Net interest paid	(62)	(69)
Tax paid	(100)	(146)
Dividends paid to non-controlling interests	(1)	(1)
Benchmark free cash flow	411	124
Acquisitions	(19)	(437)
Purchase of investments	(11)	(62)
Movement in Exceptional and other non-benchmark items	(36)	(17)
Ordinary dividends paid	(294)	(294)
Net cash inflow/(outflow) - continuing operations	51	(686)
Net cash outflow - discontinued operations	(1)	(7)
Net debt at 1 April	(3,898)	(3,262)
Net share purchases	17	(137)
Foreign exchange and other movements	(48)	32
Net debt at 30 September	(3,879)	(4,060)

5. Total investment

Six months ended 30 September	2020	2019
Six months ended 30 September	US$m	US$m
Capital expenditure	187	226
Disposal of property, plant and equipment	-	(3)
Net capital expenditure	187	223
Acquisitions¹	19	437
Purchase of investments	11	62
Total investment	217	722

1. The consideration for our investment in the Risk Management division of Arvato Financial Solutions (AFS) was satisfied by the delivery of 7.2m Experian plc treasury shares.

Interim financial statements

Group income statement

for the six months ended 30 September 2020

	Six months ended 30 September 2020			Six months ended 30 September 2019
	Benchmark¹	Non-benchmark²	Statutory Total	Benchmark¹	Non-benchmark²	Statutory Total
	US$m	US$m	US$m	US$m	US$m	US$m
Revenue (note 6(a))	2,487	-	2,487	2,495	-	2,495
Total operating expenses (note 8(a))	(1,843)	(98)	(1,941)	(1,830)	(109)	(1,939)
Operating profit/(loss)	644	(98)	546	665	(109)	556

Interest income	7	-	7	6	-	6
Finance expense	(67)	(29)	(96)	(72)	(51)	(123)
Net finance costs (note 9(a))	(60)	(29)	(89)	(66)	(51)	(117)
Share of post-tax profit/(loss) of associates³	4	(3)	1	5	36	41
Profit/(loss) before tax (note 6(a))	588	(130)	458	604	(124)	480
Group tax (charge)/credit (note 10(a))	(154)	28	(126)	(158)	33	(125)
Profit/(loss) for the period	434	(102)	332	446	(91)	355


Attributable to:
Owners of Experian plc	434	(101)	333	443	(91)	352
Non-controlling interests	-	(1)	(1)	3	-	3
Profit/(loss) for the period	434	(102)	332	446	(91)	355

Total Benchmark EBIT¹	648	-	648	670	-	670


	US cents	US cents	US cents	US cents	US cents	US cents
Earnings/(loss) per share (note 12(a))
Basic	47.9	(11.2)	36.7	49.1	(10.1)	39.0
Diluted	47.5	(11.0)	36.5	48.7	(10.0)	38.7

1. Total Benchmark EBIT and other Benchmark items are non-GAAP measures, defined in note 5 to the interim financial statements.

2. The loss before tax for non-benchmark items of US$130m (2019: US$124m) is analysed in note 8 to the interim financial statements.

3. In the prior period the non-benchmark share of post-tax profit of associates of US$36m included a gain of US$38m which related to a business disposal by an associate.

Interim financial statements

Group statement of comprehensive income

for the six months ended 30 September 2020

	Six months ended 30 September
	2020	2019
	US$m	US$m
Profit for the period	332	355
Other comprehensive income
Items that will not be reclassified to profit or loss:
Remeasurement of post-employment benefit assets and obligations (note 15(b))	(13)	44
Changes in the fair value of financial assets revalued through OCI	5	-
Items that will not be reclassified to profit or loss	(8)	44
Items that may be reclassified subsequently to profit or loss:
Currency translation gains/(losses)	2	(112)
Items that may be reclassified subsequently to profit or loss	2	(112)
Other comprehensive income for the period¹	(6)	(68)
Total comprehensive income for the period	326	287

Attributable to:
Owners of Experian plc	323	284
Non-controlling interests	3	3
Total comprehensive income for the period	326	287

1. Amounts reported within Other comprehensive income (OCI) are in respect of continuing operations and, except as reported for post-employment benefit assets and obligations, there is no associated tax. Currency translation items are recognised in the translation reserve within other reserves and in non-controlling interests. Other items within Other comprehensive income are recognised in retained earnings.

Interim financial statements

Group balance sheet

at 30 September 2020

			30 September			31 March
		2020		2019	2020
	Notes	US$m		US$m	US$m
Non-current assets
Goodwill		4,768		4,507	4,543
Other intangible assets		1,690		1,545	1,583
Property, plant and equipment		486		519	502
Investments in associates		125		155	123
Deferred tax assets		102		115	107
Post-employment benefit assets	15(a)	76		105	83
Trade and other receivables		161		145	164
Financial assets revalued through OCI		186		164	171
Other financial assets		280		168	223
		7,874		7,423	7,499

Current assets
Trade and other receivables		1,047		1,018	1,078
Current tax assets		40		30	28
Other financial assets		4		10	17
Cash and cash equivalents	18(b)	165		146	277
		1,256		1,204	1,400

Current liabilities
Trade and other payables		(1,298)		(1,139)	(1,430)
Borrowings	18(b)	(219)		(1,140)	(498)
Current tax liabilities		(233)		(272)	(225)
Provisions		(23)		(54)	(48)
Other financial liabilities		(31)		(163)	(23)
		(1,804)		(2,768)	(2,224)
Net current liabilities		(548)		(1,564)	(824)
Total assets less current liabilities		7,326		5,859	6,675

Non-current liabilities
Trade and other payables		(116)		(102)	(121)
Borrowings	18(b)	(4,115)		(3,166)	(3,916)
Deferred tax liabilities		(263)		(160)	(202)
Post-employment benefit obligations	15(a)	(48)		(52)	(48)
Other financial liabilities		(199)		(62)	(107)
		(4,741)		(3,542)	(4,394)
Net assets		2,585		2,317	2,281

Equity
Called-up share capital	20	96		96	96
Share premium account	20	1,754		1,572	1,574
Retained earnings		18,724		18,669	18,826
Other reserves		(18,049)		(18,027)	(18,221)
Attributable to owners of Experian plc		2,525		2,310	2,275
Non-controlling interests		60		7	6
Total equity		2,585		2,317	2,281

Interim financial statements

Group statement of changes in total equity

for the six months ended 30 September 2020

	Called-up share capital	Share premium account	Retained earnings	Other reserves	Attributable to owners of Experian plc	Non-controlling interests	Total equity
	US$m	US$m	US$m	US$m	US$m	US$m	US$m
At 1 April 2020	96	1,574	18,826	(18,221)	2,275	6	2,281
Comprehensive income:
Profit for the period	-	-	333	-	333	(1)	332
Other comprehensive income	-	-	(8)	(2)	(10)	4	(6)
Total comprehensive income	-	-	325	(2)	323	3	326
Transactions with owners:
Employee share incentive plans:
- value of employee services	-	-	39	-	39	-	39
- shares issued on vesting	-	17	-	-	17	-	17
- other vesting of awards and exercises of share options	-	-	(72)	84	12	-	12
- other payments	-	-	(6)	-	(6)	-	(6)
Shares delivered as consideration for acquisition	-	163	-	90	253	-	253
Liability for put option over non-controlling interests	-	-	(94)	-	(94)	-	(94)
Non-controlling interests arising on business combinations	-	-	-	-	-	52	52
Dividends paid	-	-	(294)	-	(294)	(1)	(295)
Transactions with owners	-	180	(427)	174	(73)	51	(22)
At 30 September 2020	96	1,754	18,724	(18,049)	2,525	60	2,585

Group statement of changes in total equity

for the six months ended 30 September 2019

	Called-up share capital	Share premium account	Retained earnings	Other reserves	Attributable to owners of Experian plc	Non-controlling interests	Total equity
	US$m	US$m	US$m	US$m	US$m	US$m	US$m
At 1 April 2019	96	1,559	18,718	(17,893)	2,480	14	2,494
Comprehensive income:
Profit for the period	-	-	352	-	352	3	355
Other comprehensive income	-	-	44	(112)	(68)	-	(68)
Total comprehensive income	-	-	396	(112)	284	3	287
Transactions with owners:
Employee share incentive plans:
- value of employee services	-	-	33	-	33	-	33
- shares issued on vesting	-	13	-	-	13	-	13
- other vesting of awards and exercises of share options	-	-	(57)	70	13	-	13
- purchase of shares by employee trusts	-	-	-	(92)	(92)	-	(92)
- other payments	-	-	(5)	-	(5)	-	(5)
Purchase and cancellation of own shares	-	-	(58)	-	(58)	-	(58)
Transactions in respect of non-controlling interests	-	-	(64)	-	(64)	(9)	(73)
Dividends paid	-	-	(294)	-	(294)	(1)	(295)
Transactions with owners	-	13	(445)	(22)	(454)	(10)	(464)
At 30 September 2019	96	1,572	18,669	(18,027)	2,310	7	2,317

Interim financial statements

Group cash flow statement

for the six months ended 30 September 2020

		Six months ended 30 September
		2020	2019
	Notes	US$m	US$m
Cash flows from operating activities
Cash generated from operations	16(a)	736	552
Interest paid		(64)	(72)
Interest received		2	3
Dividends received from associates		1	4
Tax paid		(100)	(146)
Net cash inflow from operating activities - continuing operations		575	341
Net cash outflow from operating activities - discontinued operations	11	(1)	(7)
Net cash inflow from operating activities		574	334

Cash flows from investing activities
Purchase of other intangible assets	16(c)	(168)	(191)
Purchase of property, plant and equipment		(19)	(35)
Sale of property, plant and equipment		-	3
Purchase of other financial assets		(11)	(62)
Acquisition of subsidiaries, net of cash acquired	16(d)	(5)	(353)
Net cash flows used in investing activities		(203)	(638)

Cash flows from financing activities
Cash inflow in respect of shares issued	16(e)	17	13
Cash outflow in respect of share purchases	16(e)	-	(150)
Other payments on vesting of share awards		(6)	(5)
Transactions in respect of non-controlling interests		-	(68)
New borrowings		494	839
Repayment of borrowings		(690)	-
Payment of lease liabilities		(26)	(26)
Net receipts/(payments) for cross-currency swaps and foreign exchange contracts		26	(14)
Net receipts from equity swaps		6	5
Dividends paid		(295)	(295)
Net cash flows (used in)/from financing activities		(474)	299

Net decrease in cash and cash equivalents		(103)	(5)
Cash and cash equivalents at 1 April		272	146
Exchange movements on cash and cash equivalents		(7)	2
Cash and cash equivalents at 30 September	16(f)	162	143

Notes to the interim financial statements

for the six months ended 30 September 2020

1. Corporate information

Experian plc (the Company) is the ultimate parent company of the Experian group of companies (Experian or the Group). Experian is a leading global information services group.

The Company is incorporated and registered in Jersey as a public company limited by shares and is resident in Ireland. The Company's registered office is at 22 Grenville Street, St Helier, Jersey JE4 8PX, Channel Islands.

The Company's ordinary shares are traded on the London Stock Exchange's Regulated Market and have a Premium Listing.

There has been no change in this information since the Annual Report for the year ended 31 March 2020.

2. Basis of preparation

The condensed consolidated interim financial statements (the interim financial statements) are prepared on the going concern basis and in accordance with International Accounting Standard (IAS) 34 'Interim Financial Reporting' (IAS 34) as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (the EU).

The interim financial statements:

· comprise the consolidated results of the Group for the six months ended 30 September 2020 and 30 September 2019;

· were approved for issue on 16 November 2020;

· have not been audited but have been reviewed by the Company's auditor with their report set out on page 45; and

· do not constitute the Group's statutory financial statements but should be read in conjunction with the Group's statutory financial statements for the year ended 31 March 2020.

The Group's statutory financial statements comprise the Annual Report and audited financial statements which are prepared in accordance with International Financial Reporting Standards (IFRS or IFRSs) as adopted by the EU (EU-IFRS). The Group's statutory financial statements also comply with IFRS as issued by the IASB. EU-IFRS differs in certain respects from IFRS as issued by the IASB, however, the differences have no material impact for the periods presented.

The most recent such financial statements, for the year ended 31 March 2020, were approved by the directors on 19 May 2020 and subsequently delivered to the Jersey Registrar of Companies. The auditor's report was unqualified and did not contain a statement under Article 111(2) or Article 111(5) of the Companies (Jersey) Law 1991. Copies of these financial statements are available on the Company's website, at www.experianplc.com, and from the Company Secretary at Newenham House, Northern Cross, Malahide Road, Dublin 17, D17 AY61, Ireland.

The financial information for the year ended 31 March 2020 included in the interim financial statements is not the Company's statutory accounts for that financial year, but has been extracted from the Group's statutory financial statements.

As required by the UK Financial Conduct Authority Disclosure Guidance and Transparency Rules Sourcebook, these interim financial statements have been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's statutory financial statements for the year ended 31 March 2020.

No significant events impacting the Group, other than those disclosed in this document, have occurred between 30 September 2020 and 16 November 2020.

Going concern

In adopting the going concern basis for preparing these interim financial statements, the directors have considered the business activities, the principal risks and uncertainties and the other matters discussed in connection with the Viability statement included in our Annual Report for the year ended 31 March 2020. This includes the potential ongoing impact of the COVID-19 pandemic on future financial performance and cash flows and the modelling of our most significant 'severe but plausible' test of a significant data breach, in addition to a cautious scenario for economic recovery.

Notes to the interim financial statements

for the six months ended 30 September 2020

2. Basis of preparation (continued)

At 30 September 2020 the Group had undrawn committed bank borrowing facilities of US$2.5bn which have an average remaining tenor of four years. Under the modelled scenarios we comfortably maintain sufficient undrawn capacity and satisfy all borrowing facility covenants.

The directors are therefore satisfied that there are no material uncertainties over going concern, and therefore the going concern basis of preparation continues to be appropriate.

In reaching this conclusion, the directors noted the Group's strong cash performance in the period and the substantial committed bank borrowing facilities which extend to December 2024.

3. Accounting policies, estimates and judgments

(a) Introduction

The preparation of the interim financial statements requires management to make estimates and assumptions that affect the reported amount of revenues, expenses, assets, liabilities and the disclosure of contingent liabilities. If in the future such estimates and assumptions, which are based on management's best judgment at the date of these interim financial statements, deviate from actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change. There have been no significant changes in the bases upon which estimates have been determined, compared to those applied at 31 March 2020, and no change in estimate has had a material effect on the current period.

The accounting policies applied in the interim financial statements are the same as those applied in the Annual Report and Group financial statements for the year ended 31 March 2020.

(b) Goodwill

Goodwill held in the Group's balance sheet is tested at least annually for impairment and details of the methodology used are set out in the Group's statutory financial statements for the year ended 31 March 2020.

Typically the Group performs the annual impairment tests in the first half of the year but given the uncertainty surrounding COVID-19, the annual tests will be performed in the second half of the year.

Management has assessed goodwill held by the Group at 30 September 2020 to identify any indicators of impairment as a result of COVID-19. Based on this evaluation no impairments were identified to the carrying value of goodwill.

We have updated the accounting valuation of our principal defined benefit pension plan in light of changes in the key actuarial assumptions, and this is recognised in the interim financial statements. The actuarial assumption with the most significant impact at 30 September 2020 is the discount rate of 1.6% (2019: 1.8%). The discount rate used in the year ended 31 March 2020 was 2.2%.

(d) Revenue recognition (note 6)

Revenue is stated net of any sales taxes, rebates and discounts.

Revenue is recognised to represent the transfer of promised services to customers in a way that reflects the consideration expected to be received in return. Total consideration from contracts with customers is allocated to the performance obligations identified based on their standalone selling price, and is recognised when those performance obligations are satisfied and the control of goods or services is transferred to the customer, either over time or at a point in time.

· Revenue in respect of the provision and processing of transactional data is recognised in the period in which the service is provided.

· Revenue from batch data arrangements which include an ongoing update service are apportioned across each delivery to the customer.

· Subscription and membership fees are recognised on a straight-line basis over the period to which they relate.

· Software licence and delivery services are primarily accounted for as a single performance obligation, with revenue recognised when the combined offering is delivered to the customer. These services are distinguished between Experian-hosted solutions, where revenue is spread over the period that the service is available to the customer, and on-premise software licence arrangements, where revenue is recognised on delivery completion.

Notes to the interim financial statements

for the six months ended 30 September 2020

3. Accounting policies, estimates and judgments (continued)

(d) Revenue recognition (note 6) (continued)

· The delivery of support and maintenance agreements is generally considered to be a separate performance obligation and revenue is recognised on a straight-line basis over the term of the maintenance period.

· Professional services revenues which form a separate performance obligation are recognised as the services are delivered.

Sales are typically invoiced in the geographic area in which the customer is located. As a result, the geographic location of the invoicing undertaking is used to attribute revenue to individual countries.

Accrued income balances, which represent the right to consideration in exchange for goods or services that we have transferred to a customer, are assessed as to whether they meet the definition of a contract asset:

· When the right to consideration is conditional on something other than the passage of time, a balance is classified as a contract asset. This arises where there are further performance obligations to be satisfied as part of the contract with the customer and typically includes balances relating to software licensing contracts;

· When the right to consideration is conditional only on the passage of time, the balance does not meet the definition of a contract asset and is classified as an unbilled receivable. This typically arises where the timing of the related billing cycle occurs 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 are within the scope of other standards. Where they are not, certain costs are recognised as an asset providing they relate directly to a contract (or an anticipated contract), generate or enhance resources that will be used in satisfying (or to continue to satisfy) performance obligations in the future and are expected to be recovered from the customer. Costs which meet this criteria are deferred as contract costs and these are amortised on a systematic basis consistent with the pattern of transfer of the related goods or services.

· Costs to obtain a contract predominantly comprise sales commissions costs.

· Costs to fulfil a contract predominantly comprise of labour costs directly relating to the implementation services provided.

Contract liabilities arise when we have an obligation to transfer future 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 reserves.

(e) Tax (note 10)

The tax charge recognised in the period is derived from the estimated tax rate for the full year, taking account of one-off tax charges and credits arising in the period and expected to arise in the full year and the tax effect of Exceptional items and other adjustments made to derive Benchmark PBT.

4. Accounting developments

There are no new standards, amendments to existing standards or interpretations that are not yet effective that are expected to have a material impact on the Group. Such developments are routinely reviewed by the Group and its financial reporting systems are adapted as appropriate.

5. Use of non-GAAP measures in the interim financial statements

As detailed below, the Group has identified and defined certain measures that it uses to understand and manage its performance. The measures are not defined under IFRS and they may not be directly comparable with other companies' adjusted performance measures. These non-GAAP measures are 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.

(a) Benchmark profit before tax (Benchmark PBT) (note 6(a) and note 7)

Benchmark PBT is disclosed to indicate the Group's underlying profitability. It is defined as profit before amortisation and impairment of acquisition intangibles, impairment of goodwill, acquisition expenses, adjustments to contingent consideration, 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.

Notes to the interim financial statements

for the six months ended 30 September 2020

5. Use of non-GAAP measures in the interim financial statements (continued)

(a) Benchmark profit before tax (Benchmark PBT) (note 6(a) and note 7) (continued)

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:

· Charges for the amortisation and impairment of acquisition intangibles are excluded from the calculation of Benchmark PBT because these charges are based on judgments about their value and economic life and bear no relation to the Group's underlying ongoing performance. Impairment of goodwill is similarly excluded from the calculation of Benchmark PBT.

· Acquisition and disposal expenses (representing the incidental costs of acquisitions and disposals, one-time integration costs and other corporate transaction expenses) relating to successful, active or aborted acquisitions and disposals are excluded from the definition of Benchmark PBT as they bear no relation to the Group's underlying ongoing performance or to the performance of any acquired businesses. Adjustments to contingent consideration are similarly excluded from the definition of Benchmark PBT.

· Charges and credits for financing fair value remeasurements within finance expense in the Group income statement are excluded from the definition of Benchmark PBT. These include retranslation of intra-Group funding, and that element of the Group's derivatives that is ineligible for hedge accounting, together with gains and losses on put options in respect of acquisitions. Amounts recognised generally arise from market movements and accordingly bear no direct relation to the Group's underlying performance.

(b) Benchmark earnings before interest and tax (Benchmark EBIT) and margin (Benchmark EBIT margin) (note 6(a))

Benchmark EBIT is defined as Benchmark PBT before the net interest expense charged therein and accordingly excludes Exceptional items as defined below. Benchmark EBIT margin is Benchmark EBIT from ongoing activities expressed as a percentage of revenue from ongoing activities.

Benchmark EBITDA is defined as Benchmark EBIT before the depreciation and amortisation charged therein.

(d) Exited business activities

Exited business activities are businesses sold, closed or identified for closure during a financial year. These are treated as exited business activities for both revenue and Benchmark EBIT purposes. The results of exited business activities are disclosed separately with the results of the prior period re-presented in the segmental analyses as appropriate. This measure differs from the definition of discontinued operations in IFRS 5.

(e) Ongoing activities

The results of businesses trading at 30 September 2020, which are not disclosed as exited business activities, are reported as ongoing activities.

(f) Constant exchange rates

To highlight our organic performance, we discuss our results in terms of growth at constant exchange rates, unless otherwise stated. This represents growth calculated after translating both years' performance at the prior year's average exchange rates.

(g) Total growth (note 6(c))

This is the year-on-year change in the performance of our activities at actual exchange rates. Total growth at constant exchange rates removes the translational foreign exchange effects arising on the consolidation of our activities and comprises one of our measures of performance at constant exchange rates.

(h) Organic revenue growth (note 6(c))

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.

Notes to the interim financial statements

for the six months ended 30 September 2020

5. Use of non-GAAP measures in the interim financial statements (continued)

(i) Benchmark earnings and Total Benchmark earnings (note 12)

Benchmark earnings comprise Benchmark PBT less attributable tax and non-controlling interests. The attributable tax for this purpose excludes significant tax credits and charges arising in the year which, in view of their size or nature, are not comparable 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 Total Benchmark earnings.

(j) Benchmark earnings per share (Benchmark EPS) (note 12(a))

Benchmark EPS comprises Benchmark earnings divided by the weighted average 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 average number of issued ordinary shares, as adjusted for own shares held.

(l) Benchmark tax charge and rate (note 10(b))

The Benchmark tax charge is the tax charge applicable to Benchmark PBT. It differs from the Group tax charge by tax attributable to Exceptional items and other adjustments made to derive Benchmark PBT, and exceptional tax charges. A reconciliation is provided in note 10(b) to these interim financial statements. The Benchmark effective rate of tax is calculated by dividing the Benchmark tax charge by Benchmark PBT.

(m) Exceptional items

The separate reporting of Exceptional items gives an indication of the Group's underlying performance. Exceptional items include those arising from the profit or loss on disposal of businesses, closure costs of major business units, costs of significant restructuring programmes and other financially significant one-off items. All other restructuring costs are charged against Benchmark EBIT, in the segments in which they are incurred.

(n) Benchmark operating and Benchmark free cash flow

Benchmark operating cash flow is Benchmark EBIT plus amortisation, depreciation and charges in respect of share-based incentive plans, less capital expenditure net of disposal proceeds 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. Benchmark free cash flow is derived from Benchmark operating cash flow by excluding net interest, tax paid in respect of continuing operations and dividends paid to non-controlling interests.

(o) Cash flow conversion

Cash flow conversion is Benchmark operating cash flow expressed as a percentage of Benchmark EBIT.

(p) Net debt and Net funding (note 18)

Net debt is borrowings (and the fair value of derivatives hedging borrowings) excluding lease liabilities and accrued interest, less cash 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 effective portion of derivatives hedging borrowings) excluding lease liabilities and accrued interest, less cash held in Group Treasury.

(q) Return on capital employed (ROCE)

ROCE is defined as Benchmark EBIT less tax at the Benchmark rate divided by a three-point average of capital employed, in continuing operations, over the year. Capital employed is net assets less non-controlling interests, further adjusted to add or deduct the net tax liability or asset and to add Net debt.

Notes to the interim financial statements

for the six months ended 30 September 2020

6. Segment information

(a) Income statement
	North America	Latin America	UK and Ireland	EMEA/ Asia Pacific	Total operating segments	Central Activities	Total continuing operations
Six months ended 30 September 2020	US$m	US$m	US$m	US$m	US$m	US$m	US$m

Revenue from external customers	1,687	278	331	191	2,487	-	2,487

Reconciliation from Benchmark EBIT to profit/(loss) before tax
Benchmark EBIT	610	65	34	(33)	676	(28)	648
Net interest expense included in Benchmark PBT (note 9(b))	(2)	(1)	(1)	(1)	(5)	(55)	(60)
Benchmark PBT	608	64	33	(34)	671	(83)	588
Exceptional items (note 8(a))	(2)	-	(19)	(1)	(22)	-	(22)
Amortisation of acquisition intangibles	(44)	(7)	(4)	(10)	(65)	-	(65)
Acquisition and disposal expenses	(3)	(1)	-	(9)	(13)	-	(13)
Adjustment to the fair value of contingent consideration	-	-	-	2	2	-	2
Non-benchmark share of post-tax loss of associates	-	-	-	-	-	(3)	(3)
Interest on uncertain tax provisions (note 9(a))	-	-	-	-	-	(6)	(6)
Financing fair value remeasurements (note 9(c))	-	-	-	-	-	(23)	(23)
Profit/(loss) before tax	559	56	10	(52)	573	(115)	458

	North America	Latin America	UK and Ireland	EMEA/ Asia Pacific	Total operating segments	Central Activities	Total continuing operations
Six months ended 30 September 2019	US$m	US$m	US$m	US$m	US$m	US$m	US$m

Revenue from external customers	1,573	352	371	199	2,495	-	2,495

Reconciliation from Benchmark EBIT to profit/(loss) before tax
Benchmark EBIT	544	97	75	(5)	711	(41)	670
Net interest expense included in Benchmark PBT (note 9(b))	(2)	(1)	(1)	(1)	(5)	(61)	(66)
Benchmark PBT	542	96	74	(6)	706	(102)	604
Exceptional items (note 8(a))	(35)	-	-	-	(35)	-	(35)
Amortisation of acquisition intangibles	(42)	(8)	(4)	(5)	(59)	-	(59)
Acquisition expenses	(4)	-	(4)	(8)	(16)	-	(16)
Adjustment to the fair value of contingent consideration	-	-	1	-	1	-	1
Non-benchmark share of post-tax profit of associates	-	-	-	-	-	36	36
Interest on uncertain tax provisions (note 9(a))	-	-	-	-	-	(7)	(7)
Financing fair value remeasurements (note 9(c))	-	-	-	-	-	(44)	(44)
Profit/(loss) before tax	461	88	67	(19)	597	(117)	480

Additional information by operating segment, including that on total and organic growth at constant exchange rates is provided within pages 3 to 10.

Notes to the interim financial statements

for the six months ended 30 September 2020

6. Segment information (continued)

(b) Revenue by business segment

The additional analysis of revenue from external customers provided to the chief operating decision-maker and accordingly reportable under IFRS 8 'Operating Segments' is given within note 7. This is supplemented by voluntary disclosure of the profitability of groups of service lines. For ease of reference, we continue to use the term 'business segments' when discussing the results of groups of service lines.

	North America	Latin America	UK and Ireland	EMEA/ Asia Pacific	Total ongoing activities
	US$m	US$m	US$m	US$m	US$m
Revenue for the six months ended 30 September 2019	1,573	352	371	199	2,495
Adjustment to constant exchange rates	-	(14)	3	(2)	(13)
Revenue at constant rates for the six months ended 30 September 2019	1,573	338	374	197	2,482
Organic revenue growth	103	16	(44)	(36)	39
Revenue from acquisitions	11	2	-	33	46
Revenue at constant rates for the six months ended 30 September 2020	1,687	356	330	194	2,567
Adjustment to actual exchange rates	-	(78)	1	(3)	(80)
Revenue for the six months ended 30 September 2020	1,687	278	331	191	2,487

Organic revenue growth at constant exchange rates	7%	5%	(12)%	(18)%	2%
Revenue growth at constant exchange rates	7%	5%	(12)%	(2)%	3%

The above table demonstrates the application of the methodology set out in note 5 in determining organic and total revenue growth at constant exchange rates.

(d) Disaggregation of revenue from contracts with customers

	North America	Latin America	UK and Ireland	EMEA/ Asia Pacific	Total operating segments
Six months ended 30 September 2020	US$m	US$m	US$m	US$m	US$m
Revenuefrom external customers
Data	836	213	163	121	1,333
Decisioning	331	38	98	70	537
Business-to-Business	1,167	251	261	191	1,870
Consumer Services	520	27	70	-	617
Total ongoing activities	1,687	278	331	191	2,487


	North America	Latin America¹	UK and Ireland	EMEA/ Asia Pacific	Total operating segments
Six months ended 30 September 2019	US$m	US$m	US$m	US$m	US$m
Revenuefrom external customers
Data	791	286	182	104	1,363
Decisioning	322	52	109	95	578
Business-to-Business	1,113	338	291	199	1,941
Consumer Services	460	14	80	-	554
Total ongoing activities	1,573	352	371	199	2,495

Data is predominantly transactional revenue. Decisioning is predominantly revenue from software licence and delivery services. Consumer Services is predominantly subscription and transactional revenue. The timing of revenue recognition in relation to these revenue streams is discussed in note 3(d).

Notes to the interim financial statements

for the six months ended 30 September 2020

7. Information on business segments (including non-GAAP disclosures)

	Business-to- Business	Consumer Services	Total business segments	Central Activities	Total continuing operations
Six months ended 30 September 2020	US$m	US$m	US$m	US$m	US$m

Revenue from external customers	1,870	617	2,487	-	2,487

Reconciliation from Benchmark EBIT to profit/(loss) before tax
Benchmark EBIT	532	144	676	(28)	648
Net interest expenseincluded in Benchmark PBT (note 9(b))	(4)	(1)	(5)	(55)	(60)
Benchmark PBT	528	143	671	(83)	588
Exceptional items (note 8(a))	(22)	-	(22)	-	(22)
Amortisation of acquisition intangibles	(54)	(11)	(65)	-	(65)
Acquisition and disposal expenses	(13)	-	(13)	-	(13)
Adjustment to the fair value of contingent consideration	2	-	2	-	2
Non-benchmark share of post-tax loss of associates	-	-	-	(3)	(3)
Interest on uncertain tax provisions (note 9(a))	-	-	-	(6)	(6)
Financing fair value remeasurements (note 9(c))	-	-	-	(23)	(23)
Profit/(loss) before tax	441	132	573	(115)	458

	Business-to- Business	Consumer Services	Total business segments	Central Activities	Total continuing operations
Six months ended 30 September 2019¹	US$m	US$m	US$m	US$m	US$m

Revenue from external customers	1,941	554	2,495	-	2,495

Reconciliation from Benchmark EBIT to profit/(loss) before tax
Benchmark EBIT	595	116	711	(41)	670
Net interest expense included in Benchmark PBT (note 9(b))	(4)	(1)	(5)	(61)	(66)
Benchmark PBT	591	115	706	(102)	604
Exceptional items (note 8(a))	(35)	-	(35)	-	(35)
Amortisation of acquisition intangibles	(49)	(10)	(59)	-	(59)
Acquisition expenses	(14)	(2)	(16)	-	(16)
Adjustment to the fair value of contingent consideration	1	-	1	-	1
Non-benchmark share of post-tax profit of associates	-	-	-	36	36
Interest on uncertain tax provisions (note 9(a))	-	-	-	(7)	(7)
Financing fair value remeasurements (note 9(c))	-	-	-	(44)	(44)
Profit/(loss) before tax	494	103	597	(117)	480

Notes to the interim financial statements

for the six months ended 30 September 2020

8. Exceptional items and other adjustments made to derive Benchmark PBT

(a) Charge for Exceptional items and other adjustments made to derive Benchmark PBT

	Six months ended 30 September
	2020	2019
	US$m	US$m

Exceptional items:
Restructuring costs (note 8(b))	22	-
Legal provisions movements (note 8(c))	-	35
Charge for Exceptional items	22	35

Other adjustments made to derive Benchmark PBT:
Amortisation of acquisition intangibles	65	59
Acquisition and disposal expenses	13	16
Adjustment to the fair value of contingent consideration	(2)	(1)
Non-benchmark share of post-tax loss/(profit) of associates	3	(36)
Interest on uncertain tax provisions	6	7
Financing fair value remeasurements (note 9(c))	23	44
Charge for other adjustments made to derive Benchmark PBT	108	89
Charge for Exceptional items and other adjustments made to derive BenchmarkPBT	130	124

By income statement caption:
Within total operating expenses	98	109
Within operating profit	98	109
Within share of post-tax loss/(profit) of associates	3	(36)
Within finance expense	29	51
Charge for Exceptional items and other adjustments made to derive BenchmarkPBT	130	124

(b) Restructuring costs

In the period to 30 September 2020, the Group commenced a transformation programme in the UK and Ireland. The objectives of this programme are to simplify our technology estate, enhance customer experience and to return to profitable growth. In addition, we have launched a programme of restructuring initiatives in other regions. Costs of US$22m have been recognised in the period ended 30 September 2020, principally in the UK and Ireland, in connection with these actions with a related cash outflow of US$12m. Of this charge, US$11m related to redundancy costs, and US$11m related to other restructuring and consultancy costs.

During the six months ended 30 September 2019, there was a charge relating to the movement in provisions in respect of a number of historic legal claims.

Notes to the interim financial statements

for the six months ended 30 September 2020

9. Net finance costs

(a) Net finance costs included in profit before tax
	Six months ended 30 September
	2020	2019
	US$m	US$m
Interest income:
Bank deposits, short-term investments and loan notes	(7)	(6)

Finance expense:
Interest on borrowings and derivatives	62	67
Interest on leases	5	5
Charge in respect of financing fair value remeasurements (note 9(c))	23	44
Interest on uncertain tax provisions	6	7
Finance expense	96	123

Net finance costs included in profit before tax	89	117

(b) Net interest expense included in Benchmark PBT
	Six months ended 30 September
	2020	2019
	US$m	US$m
Interest income	(7)	(6)
Interest expense	67	72

Net interest expense included in Benchmark PBT	60	66

	Six months ended 30 September
	2020	2019
	US$m	US$m
Foreign exchange losses on Brazilian real intra-Group funding	13	15
Other financing fair value losses	10	29

Charge in respect of financing fair value remeasurements	23	44

Brazilian real intra-Group funding provided to Serasa S.A., from a Group company whose functional currency is not the Brazilian real, is not considered permanent. Foreign exchange gains or losses on this funding are recognised in the Group income statement.

10. Tax

(a) Group tax charge and effective rate of tax

	Six months ended 30 September
	2020	2019
	US$m	US$m
Group tax charge	126	125
Profit before tax	458	480
Effective rate of tax based on profit before tax	27.5%	26.0%

(b) Reconciliation of the Group tax charge to the Benchmark tax charge

	Six months ended 30 September
	2020	2019
	US$m	US$m
Group tax charge	126	125
Tax relief on Exceptional items and other adjustments made to derive Benchmark PBT	28	33
Benchmark tax charge	154	158

Benchmark PBT	588	604
Benchmark tax rate	26.2%	26.2%

Notes to the interim financial statements

for the six months ended 30 September 2020

11. Discontinued operations

There have been no material divestments during the six months ended 30 September 2020.

On 31 May 2017 we completed the divestment of our email/cross-channel marketing business (CCM), and the results and cash flows of that business were accordingly classified as discontinued. The cash outflow from operating activities of US$1m (2019:US$7m) relates to CCM.

12. Earnings per share disclosures

(a) Earnings per share (EPS)
	Six months ended 30 September
	Basic		Diluted
	2020	2019	2020	2019
	US cents	US cents	US cents	US cents
EPS	36.7	39.0	36.5	38.7
Add: Exceptional items and other adjustments made to derive Benchmark PBT, net of related tax	11.2	10.1	11.0	10.0
Benchmark EPS (non-GAAP measure)	47.9	49.1	47.5	48.7

(b) Analysis of earnings
			Six months ended 30 September
			2020	2019
			US$m	US$m
Total profit for the period attributable to owners of Experian plc			333	352
Add: Exceptional items and other adjustments made to derive Benchmark PBT, net of related tax, attributable to owners of Experian plc			101	91
Benchmark earnings attributable to owners of Experian plc (non-GAAP measure)			434	443
Benchmark earnings attributable to non-controlling interests (non-GAAP measure)			-	3
Total Benchmark earnings (non-GAAP measure)			434	446

(c) Reconciliation of Total Benchmark earnings to profit for the period
			Six months ended 30 September
			2020	2019
			US$m	US$m
Total Benchmark earnings (non-GAAP measure)			434	446
Loss from Exceptional items and other adjustments made to derive Benchmark PBT, net of related tax			(102)	(91)
Profit for the period			332	355

(d) Weighted average number of ordinary shares
		Six months ended 30 September
	2020		2019
	million		million
Weighted average number of ordinary shares	907		903
Add: dilutive effect of share incentive awards, options and share purchases	6		7
Diluted weighted average number of ordinary shares	913		910

Notes to the interim financial statements

for the six months ended 30 September 2020

13. Dividends paid on ordinary shares

		Six months ended 30 September
	2020		2020	2019	2019
	US cents per share		US$m	US cents per share	US$m
Amounts recognised and paid:
Second interim - paid in July 2020 (2019: July)	32.5		294	32.5	294

First interim - announced¹	14.5		132	14.5	131

1. The cost of the first interim dividend for the year ended 31 March 2020 paid in January 2020, was reduced by US$1m due to foreign exchange rate movements.

A first interim dividend of 14.5 US cents per ordinary share will be paid on 5 February 2021 to shareholders on the register at the close of business on 8 January 2021 and is not included as a liability in these interim financial statements. The first interim dividend for the six months ended 30 September 2019 was 14.5 US cents per ordinary share and the total dividend per ordinary share for the year ended 31 March 2020 was 47.0 US cents, with a total full year cost of US$424m. Further administrative information on dividends is given in the Shareholder information section on page 46. Dividend amounts are quoted gross.

14. Capital expenditure, disposals and capital commitments

(a) Additions

	Six months ended 30 September
	2020	2019
	US$m	US$m
Property, plant and equipment:
Capital expenditure	187	226
Right-of-use-assets	37	33
	224	259

(b) Disposal of other intangible assets and property, plant and equipment

The book value of other intangible assets and property, plant and equipment disposed of in the six months ended 30 September 2020 was US$17m (2019: US$3m), of which US$17m (2019: US$nil) related to the disposal of right-of-use assets. US$12m of this disposal was due to sublease arrangements, leading to the derecognition of right-of-use property assets and the recognition of sublease receivables in North America. There was no material sublease income in the period ended 30 September 2020 consistent with the prior period.

There was no profit or loss on disposal in the current or prior period.

	Six months ended 30 September
	2020	2019
	US$m	US$m
Capital expenditure for which contracts have been placed:
Other intangible assets	1	20
Property, plant and equipment	8	19
	9	39

Capital commitments at 30 September 2020 are expected to be incurred before 30 September 2021. Capital commitments at 30 September 2019 included commitments of US$1m not then expected to be incurred before 30 September 2020. There are no material leases committed to which have not yet started at 30 September 2020.

Notes to the interim financial statements

for the six months ended 30 September 2020

15. Post-employment benefit assets and obligations - defined benefit plans

(a) Amounts recognised in the Group balance sheet
		30 September
	2020		2019
	US$m		US$m
Retirement benefit assets/(obligations) - funded defined benefit plans:
Fair value of funded plans' assets	1,192		1,160
Present value of funded plans' obligations	(1,116)		(1,055)
Assets in the Group balance sheet for funded defined benefit pensions	76		105

Obligations for unfunded post-employment benefits:
Present value of defined benefit pensions - unfunded plans	(45)		(48)
Present value of post-employment medical benefits	(3)		(4)
Liabilities in the Group balance sheet	(48)		(52)
Net post-employment benefit assets	28		53
The net retirement benefit assets of US$35m at 1 April 2020 comprised assets of US$83m in respect of funded plans and obligations of US$48m in respect of unfunded plans. The retirement benefit assets and obligations are denominated primarily in pounds sterling. (b) Movements in net post-employment benefit assets recognised in the Group balance sheet

		Six months ended 30 September
	2020		2019
	US$m		US$m
At 1 April	35		6
Charge to the Group income statement within total operating expenses	(3)		(4)
Remeasurements recognised within Other comprehensive income	(13)		44
Differences on exchange	2		(2)
Contributions paid by the Group and employees	7		9
At 30 September	28		53

There was a small funding deficit at the date of the 2016 full actuarial valuation of the Experian Pension Scheme in the UK. To correct the shortfall the employer agreed to pay additional contributions of US$4m per annum over five years from 1 April 2017. The employer has agreed to continue to pay these contributions notwithstanding the small surplus recognised following the 2019 full actuarial valuation. Additional contributions of US$4m were paid in the six months ended 30 September 2020 (2019: US$4m). (c) Actuarial assumptions
		30 September
	2020		2019
	%		%
Discount rate	1.6		1.8
Inflation rate - based on the UK Retail Prices Index (the RPI)	2.9		3.1
Inflation rate - based on the UK Consumer Prices Index (the CPI)	2.1		2.1
Increase in salaries	2.4		2.6
Increase for pensions in payment - element based on the RPI (where cap is 5%)	2.8		2.9
Increase for pensions in payment - element based on the CPI (where cap is 2.5%)	1.7		1.6
Increase for pensions in payment - element based on the CPI (where cap is 3%)	1.8		1.8
Increase for pensions in deferment	2.1		2.1
Inflation in medical costs	5.9		6.1

The mortality and other demographic assumptions used at 30 September 2020 remain unchanged from those utilised at 31 March 2020 and disclosed in the Group's statutory financial statements for the year then ended.

While the methodology used to determine the discount rate is unchanged from that used at 31 March 2020, the data source used by our external actuary to construct the corporate bond yield curve has been updated due to changes in the classifications of relevant high-quality corporate bonds. In constructing the yield curve, judgment is required on the selection of appropriate bonds to be included and the approach then used to derive the yield curve. The change to the bond universe has reduced retirement benefit obligations at 30 September 2020 by approximately 2.6%.

Notes to the interim financial statements

for the six months ended 30 September 2020

16. Notes to the Group cash flow statement

(a)Cash generated from operations
	Six months ended 30 September
	2020	2019
	US$m	US$m
Profit before tax	458	480
Share of post-tax profit of associates	(1)	(41)
Net finance costs	89	117
Operating profit	546	556
Amortisation and depreciation¹	278	263
Charge in respect of share incentive plans	39	33
Increase in working capital (note 16(b))	(110)	(317)
Acquisition expenses - difference between income statement charge and amount paid	(1)	-
Adjustment to the fair value of contingent consideration	(2)	(1)
Movement in Exceptional and other non-benchmark items included in working capital	(14)	18
Cash generated from operations	736	552

1. Amortisation and depreciation includes amortisation of acquisition intangibles of US$65m (2019: US$59m) which is excluded from Benchmark PBT. Depreciation of right-of-use assets totalled US$27m (2019: US$24m).

(b) Increase in working capital
	Six months ended 30 September
	2020	2019
	US$m	US$m
Trade and other receivables	68	(13)
Trade and other payables	(178)	(304)
Increase in working capital	(110)	(317)

(c) Purchase of other intangible assets
	Six months ended 30 September
	2020	2019
	US$m	US$m
Databases	73	87
Internally generated software	81	86
Internal use software	14	18
Purchase of other intangible assets	168	191

(d) Cash flows on acquisitions (non-GAAP measure)

	Six months ended 30 September
	2020	2019
	US$m	US$m
Purchase of subsidiaries (note 22(a))	4	350
Less: net cash acquired with subsidiaries (note 22(a))	(4)	(12)
Settlement of deferred and contingent consideration	5	15
As reported in the Group cash flow statement	5	353
Acquisition expenses paid	14	16
Transactions in respect of non-controlling interests	-	68
Cash outflow for acquisitions (non-GAAP measure) (Appendix 5)	19	437

Notes to the interim financial statements for the six months ended 30 September 2020 16. Notes to the Group cash flow statement (continued) (e) Cash (inflow)/outflow in respect of net share purchases (non-GAAP measure)

		Six months ended 30 September
		2020	2019
	Notes	US$m	US$m
Issue of ordinary shares	20	(17)	(13)
Purchase of shares by employee trusts	21	-	92
Purchase and cancellation of own shares		-	58
Cash (inflow)/outflow in respect of net share purchases (non-GAAP measure)		(17)	137

As reported in the Group cash flow statement:
Cash inflow in respect of shares issued		(17)	(13)
Cash outflow in respect of share purchases		-	150
Cash (inflow)/outflow in respect of net share purchases (non-GAAP measure)		(17)	137

(f) Analysis of cash and cash equivalents

	30 September
	2020	2019
	US$m	US$m
Cash and cash equivalents in the Group balance sheet	165	146
Bank overdrafts	(3)	(3)
Cash and cash equivalents in the Group cash flow statement	162	143

Cash and cash equivalents at 31 March 2020 of US$272m in the Group cash flow statement were reported net of bank overdrafts of US$5m.

17. Reconciliation of Cash generated from operations

to Benchmark operating cash flow (non-GAAP measure)


		Six months ended 30 September
		2020		2019
	Notes	US$m		US$m
Cash generated from operations	16(a)	736	552
Purchase of other intangible assets	16(c)	(168)	(191)
Purchase of property, plant and equipment		(19)	(35)
Sale of property, plant and equipment		-	3
Payment of lease liabilities		(26)	(26)
Acquisition expenses paid	16(d)	14	16
Dividends received from associates		1	4
Cash flows in respect of Exceptional and other non-benchmark items		36	17
Benchmark operating cash flow (non-GAAP measure)		574	340

Benchmark free cash flow for the six months ended 30 September 2020 was US$411m (2019: US$124m). Cash flow conversion for the six months ended 30 September 2020 was 89% (2019: 51%).

Notes to the interim financial statements

for the six months ended 30 September 2020

18. Net debt (non-GAAP measure)

(a) Analysis by nature
	30 September
	2020	2019
	US$m	US$m
Cash and cash equivalents (net of overdrafts)	162	143
Debt due within one year - commercial paper	(159)	(518)
Debt due within one year - bonds and notes	-	(552)
Debt due after more than one year - bonds and notes	(3,456)	(2,082)
Debt due after more than one year - bank loans	(500)	(900)
Derivatives hedging loans and borrowings	74	(151)
	(3,879)	(4,060)

(b) Analysis by balance sheet caption
	30 September
	2020	2019
	US$m	US$m
Cash and cash equivalents	165	146
Current borrowings	(219)	(1,140)
Non-current borrowings	(4,115)	(3,166)
Borrowings	(4,334)	(4,306)
Total of Group balance sheet line items	(4,169)	(4,160)
Lease obligations reported within borrowings excluded from Net debt	210	222
Accrued interest reported within borrowings excluded from Net debt	6	29
Derivatives reported within Other financial assets	87	20
Derivatives reported within Other financial liabilities	(13)	(171)
	(3,879)	(4,060)

At 30 September 2020 the fair value of borrowings was US$4,545m (2019: US$4,358m) and included lease liabilities of US$210m (2019: US$222m) recognised in respect of right-of-use assets.

(c) Movements in Net debt


	1 April	Movements in the period ended 30 September 2020					30 September
	2020	Non-cash lease obligation additions	Cash flow	Net share purchases	Fair value gains/ (losses)	Exchange and other movements	2020
	US$m	US$	US$m	US$m	US$m	US$m	US$m
Derivatives hedging loans and borrowings	35	-	(26)	-	11	54	74
Borrowings^1,2	(4,414)	(37)	227	-	(7)	(103)	(4,334)
Liabilities from financing activities	(4,379)	(37)	201	-	4	(49)	(4,260)
Lease obligations	201	37	(31)	-	-	3	210
Accrued interest	3	-	-	-	-	3	6
Cash and cash equivalents	277	-	(120)	17	-	(9)	165
Net debt	(3,898)	-	50	17	4	(52)	(3,879)

1. Cash flows include principal (US$26m) and interest (US$5m) payments in respect of lease obligations.

2. Exchange and other movements include US$5m in respect of lease obligation disposals.

Notes to the interim financial statements

for the six months ended 30 September 2020

19. Undrawn committed bank borrowing facilities

	30 September
	2020	2019
	US$m	US$m
Facilities expiring in:
Less than one year	-	225
One to two years	400	-
Two to three years	150	-
Three to four years	-	-
Four to five years	1,950	1,950
	2,500	2,175

At 31 March 2020, there were undrawn committed bank borrowing facilities of US$2,175m.

There is one financial covenant in connection with the borrowing facilities. Benchmark EBIT must exceed three times net interest expense before financing fair value remeasurements. The calculation of the financial covenant excludes the effects of IFRS 16. The Group monitors this, and the Net debt to EBITDA leverage ratio, and has complied with this covenant throughout the period.

20. Called-up share capital and share premium account

	Number of shares		Called-up share capital	Share premium account
	million		US$m	US$m
At 1 April 2019	971.5		96	1,559
Shares issued under employee share incentive plans	0.8		-	13
Purchase and cancellation of own shares	(2.0)		-	-
At 30 September 2019	970.3		96	1,572
Shares issued under employee share incentive plans	0.1		-	2
Purchase and cancellation of own shares	(1.7)		-	-
At 31 March 2020	968.7		96	1,574
Shares issued under employee share incentive plans	0.8		-	17
Premium on treasury shares deliveredas consideration	-		-	163
At 30 September 2020	969.5		96	1,754
21. Own shares held		Number of shares			Cost of shares
		million			US$m
At 1 April 2019		70.1			1,167
Purchase of shares by employee trusts		3.0			92
Other vesting of awards and exercises of share options		(4.9)			(70)
At 30 September 2019		68.2			1,189
Other vesting of awards and exercises of share options		(0.4)			(6)
At 31 March 2020		67.8			1,183
Shares deliveredas consideration for acquisition		(7.2)			(90)
Other vesting of awards and exercises of share options		(4.4)			(84)
At 30 September 2020		56.2			1,009

Own shares held at 30 September 2020 include 52.3 million (2019: 60.5 million) shares held as treasury shares and 3.9 million (2019: 7.7 million) shares held in employee trusts. Own shares held at 31 March 2020 included 60.4 million shares held as treasury shares (1 April 2019: 61.5 million shares) and 7.4 million shares (1 April 2019: 8.6 million shares) held in employee trusts.

The total cost of own shares held at each balance sheet date is deducted from other reserves in the Group balance sheet.

Notes to the interim financial statements

for the six months ended 30 September 2020

22. Acquisitions

(a) Acquisitions in the period

The Group made two acquisitions in the period to 30 September 2020 including the acquisition of a 60% stake in the Risk Management division of Arvato Financial Solutions (AFS) which completed on 30 June 2020. This investment enables us to expand our range of risk, anti-fraud and identity management services across Germany, Austria and Switzerland. The consideration was satisfied by the delivery of 7.2m Experian plc treasury shares. Provisional goodwill of US$182m was recognised based on the fair value of net assets acquired of US$119m.

There are put and call options associated with the shares held by the remaining shareholders of the Risk Management division of Arvato Financial Solutions, and these first become exercisable in January 2026. Accordingly a provisional amount in respect of the present value of the put option of US$94m has been recognised as a non-current financial liability.

	Arvato Risk Management	Other	Total
	US$m	US$m	US$m
Intangible assets:
Customer and other relationships	130	(9)	121
Software development	21	2	23
Marketing-related acquisition intangibles	4	-	4
Other non-acquisition intangibles	11	-	11
Intangible assets	166	(7)	159
Property, plant and equipment	3	-	3
Trade and other receivables	16	1	17
Current tax assets	10	-	10
Cash and cash equivalents (note 16(d))	1	3	4
Trade and other payables	(26)	(2)	(28)
Deferred tax liabilities	(51)	-	(51)
Total identifiable net assets	119	(5)	114
Goodwill	182	13	195
Total	301	8	309
Satisfied by:
Cash (note 16(d))	-	4	4
Experian plc shares	253	-	253
Recognition of non-controlling interest	48	4	52
Total	301	8	309

These provisional fair values contain amounts which will be finalised no later than one year after the date of acquisition. Provisional amounts, predominantly for intangible assets and associated tax balances, have been included at 30 September 2020, as a consequence of the timing and complexity of the acquisitions. Goodwill represents the synergies, assembled workforces and future growth potential of the acquired businesses. None of the goodwill arising in the period of US$195m is currently deductible for tax purposes. The carrying value of goodwill was also impacted in the period by foreign exchange movements of US$30m.

Other also includes adjustments to the provisional amounts acquired in a number of prior year acquisitions, including a US$9m adjustment to the provisional fair value of customer and other relationships of Auto I.D., Inc. acquired in the year ended 31 March 2020.

Notes to the interim financial statements

for the six months ended 30 September 2020

22. Acquisitions (continued)

(b) Additional information in respect of acquisitions in the period

	Arvato Risk Management	Other	Total
	US$m	US$m	US$m
Increase/(decrease) in book value from fair value adjustments:
Intangible assets	155	2	157
Trade and other payables	(2)	-	(2)
Deferred tax liabilities	(46)	-	(46)
Increase in book value from fair value adjustments	107	2	109
Gross contractual amounts receivable in respect of trade and other receivables	12	1	13
Pro forma revenue from 1 April 2020 to date of acquisition	36	-	36
Revenue from date of acquisition to 30 September 2020	27	-	27
Profit before tax from date of acquisition to 30 September 2020	5	-	5

At the dates of acquisition, the gross contractual amounts receivable in respect of trade and other receivables of US$13m were expected to be collected in full.

If the transactions had occurred on the first day of the financial year, the estimated additional contribution to profit before tax would have been US$3m.

Deferred and contingent consideration of US$5m (2019: US$15m) was settled in the period in respect of the acquisition of Runpath Group Limited acquired in the year ended 31 March 2018.

23. Disposals

On 23 June 2020, the Group entered into an agreement to dispose of its interest in Finicity Corporation, an associate undertaking. The sale is expected to complete in the year ending 31 March 2021.

24. Financial risk management

(a) Financial risk factors

The Group's activities expose it to a variety of financial risks. These are market risk, including foreign exchange risk and interest rate risk, credit risk and liquidity risk. The nature of these risks and the policies adopted by way of mitigation are unchanged from those reported in the Annual Report and Group financial statements for the year ended 31 March 2020. Full information and disclosures were contained in that document.

(b) Analysis by valuation method for items measured at fair value

(i) As at 30 September 2020

	Level 1	Level 2	Level 3	Total
	US$m	US$m	US$m	US$m
Financial assets:
Derivatives used for hedging	-	92	-	92
Non-hedging derivatives	-	67	-	67
Other financial assets at fair value through profit or loss	-	-	27	27
Financial assets at fair value through profit or loss	-	159	27	186
Financial assets revalued through OCI	37	-	149	186
	37	159	176	372

Financial liabilities:
Non-hedging derivatives	-	(121)	-	(121)
Other financial liabilities at fair value through profit or loss	-	-	(139)	(139)
Financial liabilities at fair value through profit or loss	-	(121)	(139)	(260)
Net financial assets	37	38	37	112

Notes to the interim financial statements

for the six months ended 30 September 2020

24. Financial risk management (continued)

(b) Analysis by valuation method for items measured at fair value (continued)

(ii) As at 30 September 2019

	Level 1		Level 2		Level 3	Total
	US$m		US$m		US$m	US$m
Financial assets:
Derivatives used for hedging	-		24		-	24
Non-hedging derivatives	-		57		-	57
Financial assets at fair value through profit or loss	-		81		-	81
Financial assets revalued through OCI	37		-		127	164
	37		81		127	245

Financial liabilities:
Derivatives used for hedging		-	(158)	-		(158)
Non-hedging derivatives		-	(50)	-		(50)
Other financial liabilities at fair value through profit or loss		-	-	(60)		(60)
Financial liabilities at fair value through profit or loss		-	(208)	(60)		(268)
Net financial assets/(liabilities)		37	(127)	67		(23)

Financial assets at fair value through profit or loss are reported within Other financial assets in the Group balance sheet. Other financial assets include financial assets held at amortised cost of US$98m (2019: US$97m).

Contingent consideration is reported within trade and other payables in the Group balance sheet. The remainder of other financial liabilities at fair value through profit or loss is reported within Other financial liabilities in the Group balance sheet.

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 foreign exchange contracts is based on a comparison of the contractual and period end exchange rates. The fair values of other derivative financial instruments are estimated by discounting the future cash flows to net present values using appropriate market rates prevailing at the period end. There have been no changes in valuation techniques during the period under review.

The levels used in the above tables are defined in IFRS 13 'Fair Value Measurement' and are summarised here for completeness:

· assets and liabilities whose valuations are based on unadjusted quoted prices in active markets for identical assets and liabilities are classified as Level 1;

· assets and liabilities which are not traded in an active market, and whose valuations are derived from available market data that is observable for the asset or liability, are classified as Level 2; and

· assets and liabilities whose valuations are derived from inputs not based on observable market data are classified as Level 3.

Level 3 items principally comprise minority shareholdings in unlisted businesses, trade investments, contingent consideration and put and call options associated with corporate transactions.

Unlisted equity investments, initially measured at cost, are revalued where sufficient indicators are identified that a change in the fair value has occurred. The inputs to any subsequent valuations are based on a combination of observable evidence from external transactions in the investee's equity and estimated discounted cash flows that will arise from the investment. Valuations of contingent consideration and put and call options associated with corporate transactions are based on the most recent management expectations of relevant business performance, reflecting the different contractual arrangements in place.

There would be no material effect on the amounts stated from any reasonably possible change in such inputs at 30 September 2020.

There have been no transfers between levels during the current or prior period.

Notes to the interim financial statements

for the six months ended 30 September 2020

24. Financial risk management (continued)

(i) Six months ended 30 September 2020

	Financial assets revalued through OCI	Other financial assets at fair value through profit or loss	Contingent consideration	Put options	Total
	US$m	US$m	US$m	US$m	US$m
At 1 April 2020	139	26	(29)	(13)	123
Additions¹	10	1	-	(94)	(83)
Adjustment to the fair value of contingent consideration	-	-	2	-	2
Currency translation losses recognised directly in OCI	-	-	(3)	(2)	(5)
At 30 September 2020	149	27	(30)	(109)	37

(ii) Six months ended 30 September 2019

	Financial assets revalued through OCI	Contingent consideration	Put options	Total
	US$m	US$m	US$m	US$m
At 1 April 2019	67	(27)	(17)	23
Additions²	62	(34)	-	28
Adjustment to the fair value of contingent consideration	-	1	-	1
Settlement of contingent consideration	-	15	-	15
Other	(2)	1	1	-
At 30 September 2019	127	(44)	(16)	67

1. Additions to put options comprised US$94m in respect of the acquisition of Arvato Risk Management.

2. In the period ended 30 September 2019 additions to contingent consideration comprised US$29m in respect of acquisitions and US$5m for transactions in respect of non-controlling interests.

(d) Other financial assets and liabilities

Information in respect of the carrying amounts and the fair value of borrowings is included in note 18(b). There are no material differences between the carrying value of the Group's other financial assets and liabilities not measured at fair value and their estimated fair values. The following assumptions and methods are used to estimate the fair values of financial assets and liabilities not measured at fair value:

· the fair values of receivables, payables and cash and cash equivalents are considered to approximate to the carrying amounts;

· the fair values of short-term borrowings, other than bonds, are considered to approximate to the carrying amounts due to the short maturity terms of such instruments;

· the fair value of that portion of bonds carried at amortised cost is based on quoted market prices, employing a valuation methodology falling within Level 1 of the IFRS 13 fair value hierarchy;

· the fair values of long-term variable rate bank loans and lease obligations are considered to approximate to the carrying amount; and

· the fair values of other financial assets and liabilities are calculated based on a discounted cash flow analysis, using a valuation methodology falling within Level 2 of the IFRS 13 fair value hierarchy.

(e) Carrying value of financial assets and liabilities

There have been no unusual changes in economic or business circumstances that have affected the carrying value of the Group's financial assets and liabilities at 30 September 2020.

Notes to the interim financial statements

for the six months ended 30 September 2020

25. Related party transactions

The Group's related parties were disclosed in the Group's statutory financial statements for the year ended 31 March 2020 and there have been no material changes during the six months ended 30 September 2020. Following the divestment of CCM in the year ended 31 March 2018, the Group owns 24.47% of the issued share capital of Vector CM Holdings (Cayman), L.P. (Vector).

In the six months ended 30 September 2020 the Group recorded the following transactions and balances with Vector and its subsidiaries:

	Transaction amount			Balance owed to Experian
		Six months ended 30 September			30 September
	2020		2019	2020		2019
	US$m		US$m	US$m		US$m
Promissory note and accrued interest	4		3	98		90
Net amounts collected/(settled) and receivable/(payable)	-		(1)	1		1

The promissory note is due and payable to Experian on 31 May 2024 with interest also payable on this date. During the six months ended 30 September 2020 and 30 September 2019, we continued to process transactions on behalf of Vector. We do not receive any margin on individual transactions. Details of amounts arising in respect of these transactions are shown in the table below.

	Transaction amount		Balance owed to Vector
	Six months ended 30 September		30 September
	2020	2019	2020	2019
	US$m	US$m	US$m	US$m
Cash received on behalf of Vector	-	1	-	1

	Transaction amount			Balance owed to Experian
		Six months ended 30 September			30 September
	2020		2019	2020		2019
	US$m		US$m	US$m		US$m
Cash paid on behalf of Vector	-		2	1		2

Transactions with associates are made on normal market terms and in the period ended 30 September 2020 comprised the provision and receipt of services to other associates of US$nil (2019: US$1m) and US$4m (2019: US$3m) respectively. At 30 September 2020, amounts owed by associates, other than Vector, were US$nil (2019: US$nil) and amounts due to associates, other than Vector, totalled US$1m (2019: US$1m).

26. Contingencies

(a) North America security incident

In September 2015, Experian North America suffered an unauthorised intrusion to its Decision Analytics computing environment that allowed unauthorised acquisition of certain data belonging to a client, T-Mobile USA, Inc. We notified the individuals who may have been affected and offered free credit monitoring and identity theft resolution services. In addition, government agencies were notified as required by law.

We have received a number of class actions and other related claims in respect of the incident and are working with regulators and government bodies as part of their investigations. It is currently not possible to predict the scope and effect on the Group of these various regulatory and government investigations and legal actions, including their timing and scale. In the event of unfavourable outcomes, the Group may benefit from applicable insurance recoveries.

Notes to the interim financial statements

for the six months ended 30 September 2020

26. Contingencies (continued)

(b) Latin America tax

As previously indicated, Serasa S.A. has been advised that the Brazilian tax authorities are challenging the deduction for tax purposes of goodwill amortisation arising from its acquisition by Experian in 2007. The Brazilian courts have ultimately upheld Experian's position in respect of the tax years from 2007 to 2011 with no further right of appeal. The Brazilian tax authorities have raised similar assessments in respect of the 2012 to 2014 tax years, in which approximately US$71m was claimed, and may raise similar claims in respect of other years. The possibility of this resulting in a liability to the Group is considered to be remote, on the basis of the advice of external legal counsel, success in cases to date and other factors in respect of the claim.

We note that a similar challenge has been raised 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 years may be raised. We are contesting these on the basis of external legal advice.

We have received a final enforcement notice from the UK Information Commissioner's Office (ICO) with respect to a 2018 audit of several companies on the use of data for marketing purposes under the EU General Data Protection Regulation (GDPR), which relates to our marketing services activities in the UK. We disagree with the ICO's decision and have appealed, during which time all requirements will be stayed. At this stage we do not know what the final outcome will be, but it may require significant changes to business processes in our UK marketing services business. This business represents approximately 1% of our global revenues and we do not expect this to result in a materially adverse financial outcome for the Group.

(d) Other litigation and claims

There continue to be a number of pending and threatened litigation, regulatory and other claims involving the Group across all its major geographies which are being vigorously defended. The directors do not believe that the outcome of any such claims will have a materially adverse effect on the Group's financial position. However, as is inherent in legal, regulatory and administrative proceedings, there is a risk of outcomes that may be unfavourable to the Group. In the case of unfavourable outcomes, the Group may benefit from applicable insurance recoveries.

27. Events occurring after the end of the reporting period

(a) First interim dividend

Details of the first interim dividend approved by the Board on 16 November 2020 are given in note 13.

(b) Bond issue

On 5 October 2020, Experian Finance plc, a subsidiary undertaking, issued £400m 0.739% bonds due 29 October 2025, under the terms of its Euro Medium Term Note Programme, which is guaranteed by Experian plc. The bond issue diversifies the Group's funding sources.

28. Company website

The Company has a website which contains up-to-date information on Group activities and published financial results. The directors are responsible for the maintenance and integrity of statutory and audited information on this website. The work carried out by the auditor does not involve consideration of these matters. Jersey legislation and UK regulation governing the preparation and dissemination of financial information may differ from requirements in other jurisdictions.

Statement of directors' responsibilities

The directors are responsible for preparing the half-yearly financial report for the six months ended 30 September 2020 in accordance with applicable law, regulations and accounting standards.

The directors confirm that these interim financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as issued by the IASB and as adopted by the EU, and that, to the best of their knowledge, the interim management report herein includes a fair review of the information required by:

(a) DTR 4.2.7R of the UK Financial Conduct Authority Disclosure Guidance and Transparency Rules Sourcebook, being an indication of important events that have occurred during the first six months of the financial year and the impact on these interim financial statements; and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

(b) DTR 4.2.8R of the UK Financial Conduct Authority Disclosure Guidance and Transparency Rules Sourcebook, being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the enterprise during that period; and any changes in the related party transactions described in the last annual report that could do so.

The names and biographical details of the directors of Experian plc as at 19 May 2020 were listed in the Group's statutory financial statements for the year ended 31 March 2020. Alison Brittain was appointed as a new independent Non-Executive Director on 1 September 2020. A list of current directors is maintained on the Company website at www.experianplc.com.

By order of the Board

Charles Brown

Company Secretary

16 November 2020

Independent review report to Experian plc

Conclusion

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2020 of the Company and its subsidiaries (together the 'Group') which comprises the Group income statement, the Group statement of comprehensive income, the Group balance sheet, the Group statement of changes in total equity, the Group cash flow statement and the related explanatory notes.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2020 is not prepared, in all material respects, in accordance with IAS 34 'Interim Financial Reporting' as issued by the IASB and as adopted by the EU and the Disclosure Guidance and Transparency Rules Sourcebook (the DTR) of the UK's Financial Conduct Authority (the UK FCA).

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the half-yearly financial report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA.

As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards as issued by the IASB and as adopted by the EU. The directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 as issued by the IASB and as adopted by the EU.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

The purpose of our review work and to whom we owe our responsibilities

This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the DTR of the UK FCA. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

Andrew Bradshaw

for and on behalf of KPMG LLP

Chartered Accountants

15 Canada Square

London

E14 5GL

United Kingdom

16 November 2020

Shareholder information

Company website

A full range of investor information is available at www.experianplc.com.

Electronic shareholder communication

Shareholders may register for Share Portal, an electronic communication service provided by Link Market Services (Jersey) Limited, via the Company website at shares.experianplc.com. The service is free and it facilitates the use of a comprehensive range of shareholder services online.

When registering for Share Portal, shareholders can select their preferred communication method - email or post. Shareholders will receive a written notification of the availability on the Company's website of shareholder documents unless they have elected to either (i) receive such notification via email or (ii) receive paper copies of shareholder documents where such documents are available in that format.

Dividend information

Dividends for the year ending 31 March 2021

A first interim dividend in respect of the year ending 31 March 2021 of 14.5 US cents per ordinary share will be paid on 5 February 2021 to shareholders on the register at the close of business on 8 January 2021. Unless shareholders elect by 8 January 2021 to receive US dollars, their dividends will be paid in pounds sterling at a rate per share calculated on the basis of the exchange rate from US dollars to pounds sterling on 15 January 2021.

Income access share (IAS) arrangements

As its ordinary shares are listed on the London Stock Exchange, the Company has a large number of UK resident shareholders. In order that shareholders may receive Experian dividends from a UK source, should they wish, the IAS arrangements have been put in place. The purpose of the IAS arrangements is to preserve the tax treatment of dividends paid to Experian shareholders in the UK, in respect of dividends paid by the Company. Shareholders who elect, or are deemed to elect, to receive their dividends via the IAS arrangements will receive their dividends from a UK source (rather than directly from the Company) for UK tax purposes.

Shareholders who hold 50,000 or fewer Experian shares on the first dividend record date after they become shareholders, unless they elect otherwise, will be deemed to have elected to receive their dividends under the IAS arrangements.

Shareholders who hold more than 50,000 shares and who wish to receive their dividends from a UK source must make an election to receive dividends via the IAS arrangements. All elections remain in force indefinitely unless revoked.

Unless shareholders have made an election to receive dividends via the IAS arrangements, or are deemed to have made such an election, dividends will be received from an Irish source and will be taxed accordingly. The final date for submission of elections to receive UK sourced dividends via the IAS arrangements is 8 January 2021.

Dividend Reinvestment Plan (DRIP)

The DRIP enables those shareholders who receive their dividends under the IAS arrangements to use their cash dividends to buy more shares in the Company. Eligible shareholders, who wish to participate in the DRIP in respect of the first interim dividend for the year ending 31 March 2021 to be paid on 5 February 2021, should return a completed and signed DRIP application form, to be received by the registrars by no later than 8 January 2021. Shareholders should contact the registrars for further details.

American Depositary Receipts (ADR)

Experian has a sponsored Level 1 ADR programme, for which Bank of New York Mellon acts as depositary. This programme is not listed on a stock exchange in the US and trades in the over-the-counter market on the OTCQX platform under the symbol EXPGY. Each ADR represents one Experian plc ordinary share. Further information can be obtained by contacting:

Shareholder Relations BNY Mellon Depositary Receipts
PO Box 505000 Louisville, KY 40233-5000, USA
T +1 201 680 6825 (from the USA: 1-888-BNY-ADRS) E shrrelations@cpushareownerservices.com W www.mybnymdr.com
Shareholder information (continued) Financial calendar
First interim ex-dividend date	7 January 2021
First interim dividend record date	8 January 2021
First interim dividend exchange rate determined	15 January 2021
Trading update, third quarter	19 January 2021
First interim dividend payment date	5 February 2021
Preliminary announcement of full year results	19 May 2021
Trading update, first quarter	15 July 2021
Annual General Meeting	21 July 2021

Contact information

Corporate headquarters

Experian plc

Newenham House

Northern Cross

Malahide Road

Dublin 17

D17 AY61

Ireland

T +353 (0) 1 846 9100

F +353 (0) 1 846 9150

Investor relations

E investors@experian.com

Registered office

Experian plc

22 Grenville Street

St Helier

Jersey

JE4 8PX

Channel Islands

Registered number - 93905

Registrars

Experian Shareholder Services

Link Market Services (Jersey) Limited

PO Box 532

St Helier

Jersey

JE4 5UW

Channel Islands

Shareholder helpline 0371 664 9245 (+44 800 141 2952 for calls from outside the UK)

E experian@linkregistrars.com

Calls are charged at the standard geographic rate and will vary by provider. Calls from outside the United Kingdom will be charged at the applicable international rate. Lines are open between 8.30am and 5.30pm (UK time), Monday to Friday excluding public holidays in England and Wales.

Stock exchange listing information

Exchange: London Stock Exchange, Premium Main Market

Index: FTSE 100

Symbol: EXPN

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END

IR GPGGCGUPUGBQ

Companies

Experian (EXPN)

Thursday, 30th January 2025

COMPANIES COVERED:

WIZZ AAF CHRY

Gains for Chrysalis Investment Trust as NAV revised higher and Airtel Africa finds support off rising customer numbers, but Wizz Air under pressure as cost headwinds impact profit growth.

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Half-year Report

Six months ended 30 September

Profit before tax

Revenue (note 6(a))

Total operating expenses (note 8(a))

Operating profit/(loss)

Profit/(loss) before tax (note 6(a))

Profit/(loss) for the period

Profit/(loss) for the period

Total Benchmark EBIT1

2

(112)

Other comprehensive income for the period1

(6)

(68)

Total comprehensive income for the period

326

287

Total comprehensive income for the period

287

Current assets

Net assets

Equity

Called-up share capital

Share premium account

Retained earnings

Other reserves

Attributable to owners of Experian plc

Non-controlling interests

Total equity

At 1 April 2020

1,574

Comprehensive income:

Profit for the period

-

-

-

-

-

-

- other vesting of awards and exercises of share options

Comprehensive income:

Profit for the period

-

-

-

-

-

-

- other vesting of awards and exercises of share options

- purchase of shares by employee trusts

- other payments

Purchase and cancellation of own shares

Transactions in respect of non-controlling interests

Net cash inflow from operating activities - continuing operations

575

341

Net cash outflow from operating activities - discontinued operations

11

(1)

(7)

Net cash inflow from operating activities

574

334

Cash flows from investing activities

Purchase of other intangible assets

Purchase of property, plant and equipment

Sale of property, plant and equipment

Purchase of other financial assets

Acquisition of subsidiaries, net of cash acquired

Net cash flows used in investing activities

(203)

(638)

Cash inflow in respect of shares issued

Cash outflow in respect of share purchases

Other payments on vesting of share awards

Transactions in respect of non-controlling interests

New borrowings

Repayment of borrowings

Payment of lease liabilities

Total Benchmark EBIT¹

Other comprehensive income for the period¹