Half Yearly Report - Part 2

RNS Number : 6694C

Experian plc

18 November 2009

 



Unaudited condensed Group half-yearly financial statements

Group income statement                    

for the six months ended 30 September 2009

				Six months ended 30 September										Year ended 31 March
				2009					2008					2009
		Notes		US$m					US$m					US$m
Revenue		7		1,874					2,017					3,873
Cost of sales				(903)					(947)					(1,824)
Gross profit				971					1,070					2,049
Distribution costs				(189)					(199)					(387)
Administrative expenses				(466)					(540)					(1,049)
Operating expenses				(655)					(739)					(1,436)
Operating profit				316					331					613
Finance income						85					99					182
Finance expense						(86)					(132)					(259)
Net financing costs		11		(1)					(33)					(77)
Share of post-tax profits of associates				36					20					42
Profit before tax		7		351					318					578
Group tax expense		12		(78)					(42)					(84)
Profit after tax from continuing operations				273					276					494
(Loss)/profit from discontinued operations		13		(8)					(4)					12
Profit for the period				265					272					506
Attributable to:
Owners of Experian plc				249					258					486
Minority interests				16					14					20
Profit for the period				265					272					506
Earnings per share		14		US cents					US cents					US cents
Basic				24.5					25.5					48.0
Diluted				24.1					25.2					47.5
Earnings per share from continuing operations		14		US cents					US cents					US cents
Basic				25.3					25.9					46.8
Diluted				24.9					25.6					46.3
				US cents					US cents					US cents
Dividend per share (including announced first interim dividend)		15		7.00					6.75					20.00

  Unaudited condensed Group half-yearly financial statements

Group statement of comprehensive income

for the six months ended 30 September 2009

	Six months ended 30 September		Year ended 31 March
	2009 US$m	2008 US$m	2009 US$m
Profit for the period	265	272	506
Other comprehensive income:
Fair value gains/(losses) on available for sale financial assets	8	(5)	(8)
Actuarial losses in respect of defined benefit pension plans (note 17(c))	(61)	(72)	(202)
Currency translation differences	275	(147)	(428)
Recycled cumulative exchange gain in respect of divestments	-	-	(3)
Tax credit in respect of items recognised within other comprehensive income	15	21	60
Total other comprehensive income	237	(203)	(581)
Total comprehensive income for the period	502	69	(75)
Total comprehensive income for the period attributable to:
Owners of Experian plc	449	71	(51)
Minority interests	53	(2)	(24)
Total comprehensive income for the period	502	69	(75)

Non-GAAP measures - reconciliation of profit before tax to Benchmark PBT

for the six months ended 30 September 2009

				Six months ended 30 September								Year ended 31 March
				2009				2008				2009
		Notes		US$m				US$m				US$m
Profit before tax		7		351				318				578
exclude: exceptional items		10		46				33				117
exclude: amortisation of acquisition intangibles		10		64				70				132
exclude: goodwill adjustment		10		-				-				1
exclude: charge in respect of the demerger-related equity incentive plans		10		15				21				32
exclude: financing fair value remeasurements		10		(40)				(27)				(19)
exclude: tax expense on share of profits of associates		7		1				1				2
Benchmark PBT - continuing operations		7		437				416				843
Benchmark earnings per share from continuing operations		14		US cents				US cents				US cents
Basic				31.6				30.7				62.3
Diluted				31.2				30.4				61.6

  Unaudited condensed Group half-yearly financial statements

Group balance sheet

at 30 September 2009

		30 September		31 March
	Notes	2009 US$m	2008 US$m	2009 US$m
Non-current assets
Goodwill		3,441	3,379	3,125
Other intangible assets		1,282	1,311	1,189
Property, plant and equipment		468	538	479
Investments in associates		343	324	332
Deferred tax assets		42	29	13
Retirement benefit assets	17(b)	-	109	-
Trade and other receivables		5	5	5
Available for sale financial assets		37	35	26
Other financial assets		50	-	61
		5,668	5,730	5,230
Current assets
Inventories		4	4	4
Trade and other receivables		765	758	738
Current tax assets		5	25	17
Other financial assets		42	10	21
Cash and cash equivalents		135	174	129
		951	971	909
Assets of discontinued operations classified as held for sale	13	-	267	-
		951	1,238	909
Current liabilities
Trade and other payables		(937)	(912)	(995)
Loans and borrowings		(6)	(562)	(314)
Current tax liabilities		(133)	(112)	(91)
Provisions		(64)	(67)	(66)
Other financial liabilities		(16)	(31)	(22)
		(1,156)	(1,684)	(1,488)
Liabilities of discontinued operations classified as held for sale	13	-	(108)	-
		(1,156)	(1,792)	(1,488)
Net current liabilities		(205)	(554)	(579)
Total assets less current liabilities		5,463	5,176	4,651
Non-current liabilities
Trade and other payables		(42)	(46)	(42)
Loans and borrowings		(2,260)	(2,221)	(2,003)
Deferred tax liabilities		(165)	(161)	(135)
Provisions		(18)	(24)	(15)
Retirement benefit obligations	17(b)	(129)	(47)	(58)
Other financial liabilities		(624)	(574)	(499)
		(3,238)	(3,073)	(2,752)
Net assets		2,225	2,103	1,899
Equity
Share capital	21	1,555	1,551	1,551
Retained earnings		16,333	16,172	16,251
Other reserves		(15,804)	(15,768)	(16,017)
Attributable to owners of Experian plc		2,084	1,955	1,785
Minority interests		141	148	114
Total equity		2,225	2,103	1,899

Unaudited condensed Group half-yearly financial statements

Group statement of changes in total equity

for the six months ended 30 September 2009

	Share capital	Retained earnings	Other reserves	Attributable to owners of Experian plc	Minority interests	Total equity
	US$m	US$m	US$m	US$m	US$m	US$m
At 1 April 2009	1,551	16,251	(16,017)	1,785	114	1,899
Total comprehensive income for the period	-	211	238	449	53	502
Employee share option plans:
- value of employee services	-	31	-	31	-	31
- proceeds from shares issued	4	-	-	4	-	4
Exercise of share options	-	(25)	29	4	-	4
Purchase of own shares by employee trusts	-	-	(54)	(54)	-	(54)
Equity dividends paid during the period	-	(135)	-	(135)	-	(135)
Dividends paid to minority shareholders	-	-	-	-	(26)	(26)
At 30 September 2009	1,555	16,333	(15,804)	2,084	141	2,225

for the six months ended 30 September 2008

	Share capital	Retained earnings	Other reserves	Attributable to owners of Experian plc	Minority interests	Total equity
	US$m	US$m	US$m	US$m	US$m	US$m
At 1 April 2008	1,544	16,065	(15,653)	1,956	161	2,117
Total comprehensive income for the period	-	200	(128)	72	(3)	69
Employee share option plans:
- value of employee services	-	36	-	36	-	36
- proceeds from shares issued	7	-	-	7	-	7
Exercise of share options	-	(8)	13	5	-	5
Equity dividends paid during the period	-	(121)	-	(121)	-	(121)
Dividends paid to minority shareholders	-	-	-	-	(10)	(10)
At 30 September 2008	1,551	16,172	(15,768)	1,955	148	2,103

for the year ended 31 March 2009

	Share capital	Retained earnings	Other reserves	Attributable to owners of Experian plc	Minority interests	Total equity
	US$m	US$m	US$m	US$m	US$m	US$m
At 1 April 2008	1,544	16,065	(15,653)	1,956	161	2,117
Total comprehensive income for the year	-	333	(384)	(51)	(24)	(75)
Employee share option plans:
- value of employee services	-	53	-	53	-	53
- proceeds from shares issued	7	-	-	7	-	7
Exercise of share options	-	(11)	20	9	-	9
Minority interest arising on business combinations	-	-	-	-	2	2
Disposal of minority interests	-	-	-	-	(1)	(1)
Equity dividends paid during the year	-	(189)	-	(189)	-	(189)
Dividends paid to minority shareholders	-	-	-	-	(24)	(24)
At 31 March 2009	1,551	16,251	(16,017)	1,785	114	1,899

Unaudited condensed Group half-yearly financial statements 

Group cash flow statement

for the six months ended 30 September 2009 

		Six months ended 30 September		Year ended 31 March
	Notes	2009 US$m	2008 US$m	2009 US$m
Cash flows from operating activities
Cash generated from operations	18(a)	472	476	1,102
Interest paid		(42)	(86)	(157)
Interest received		7	10	29
Dividends received from associates		27	20	28
Tax paid		(16)	(40)	(39)
Net cash inflow from operating activities		448	380	963
Cash flows from investing activities
Purchase of property, plant and equipment		(22)	(34)	(75)
Purchase of other intangible assets		(113)	(112)	(230)
Sale of property, plant and equipment		25	-	-
Purchase of investments in associates and available for sale financial assets		(1)	(28)	(29)
Acquisition of subsidiaries, net of cash acquired		(9)	(52)	(179)
Disposal of subsidiaries	13	(17)	-	191
Net cash flows used in investing activities		(137)	(226)	(322)
Cash flows from financing activities
Issue of ordinary shares		4	7	7
Receipt of share option proceeds		12	5	9
Purchase of own shares by employee trusts		(54)	-	-
Purchase of own shares for employee share plans		(17)	-	-
New borrowings		187	167	71
Repayment of borrowings		(336)	(84)	(278)
Capital element of finance lease rental payments		(2)	(2)	(3)
Net receipts/(payments) from derivative financial instruments held to manage currency profile		45	(38)	(160)
Net payments from equity swaps		-	(12)	(11)
Payment into bank deposit		-	-	(29)
Dividends paid		(161)	(131)	(213)
Net cash flows used in financing activities		(322)	(88)	(607)
Exchange and other movements		19	(22)	(37)
Net increase/(decrease) in cash and cash equivalents - continuing operations		8	44	(3)
Net decrease in cash and cash equivalents - discontinued operations	13	-	(23)	(17)
Net increase/(decrease) in cash and cash equivalents		8	21	(20)
Cash and cash equivalents at 1 April		127	147	147
Cash and cash equivalents at the end of the period		135	168	127

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

1. General information

Experian plc (the 'Company') is incorporated and registered in Jersey under Jersey Companies Law as a public company limited by shares. The Company's shares are traded on the London Stock Exchange's Regulated Market. 

These unaudited condensed Group half-yearly financial statements were approved for issue on 17 November 2009. No significant events impacting the Group, other than those disclosed in this document, have occurred between 30 September 2009 and that date.

These unaudited condensed Group half-yearly financial statements do not constitute the Group's statutory financial statements. The Group's most recent statutory financial statements, which comprise the annual report and audited financial statements for the year ended 31 March 2009, were approved by the directors on 19 May 2009 and have been delivered to the Jersey Registrar of Companies. The auditors have reported on those financial statements and have given an unqualified report which does not contain a statement under Article 111(2) or Article 111(5) of the Companies (Jersey) Law 1991. These condensed Group half-yearly financial statements have been reviewed, not audited.

2. Basis of preparation

These unaudited condensed Group half-yearly financial statements for the six months ended 30 September 2009 have been prepared in accordance with the Disclosure and Transparency Rules of the United Kingdom Financial Services Authority and with International Accounting Standard ('IAS') 34 'Interim Financial Reporting' as adopted by the European Union ('EU'). The unaudited condensed Group half-yearly financial statements should be read in conjunction with the Group's statutory financial statements for the year ended 31 March 2009, copies of which can be found on the Company's website at www.experianplc.com/corporate/financial/reports, and are available upon request from the Company Secretary at Newenham House, Northern Cross, Malahide Road, Dublin 17, Ireland. The Group's statutory financial statements were prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted for use in the EU and as issued by the International Accounting Standards Board ('IASB'). These are those standards, subsequent amendments and related interpretations issued and adopted by the IASB that have been endorsed by the EU.

The unaudited condensed Group half-yearly financial statements of Experian plc and its subsidiary undertakings ('Experian' or the 'Group') comprise the consolidated results of the Group for the six months ended 30 September 2009 and 30 September 2008 and for the year ended 31 March 2009. The financial information for the year ended 31 March 2009 has been extracted from the Group's statutory financial statements for that year. The Group's condensed half-yearly financial statements are unaudited but have been reviewed by the auditors and their report is set out on page 44.

These unaudited condensed Group half-yearly financial statements are presented in US dollars, rounded to the nearest million, as the US dollar is the most representative currency of the Group's operations. As indicated in the annual report and audited financial statements for the year ended 31 March 2009, the functional currency of the Company has changed to US dollars at 1 April 2009 as the US dollar has become the dominant currency to which the Company is now exposed. The unaudited condensed Group half-yearly financial statements are prepared on the historical cost basis modified for the revaluation of certain financial instruments. The principal exchange rates used in preparing the unaudited condensed Group half-yearly financial statements are set out in note 9. Except as indicated in note 4, the financial information has been prepared on a basis consistent with that reported for the six months ended 30 September 2008 and the year ended 31 March 2009.

3. Accounting policies and estimates

These unaudited condensed Group half-yearly financial statements have been prepared applying the same accounting policies, significant judgments made by management in applying them, and key sources of estimation uncertainty applied by the Group that were used in the Group's statutory financial statements for the year ended 31 March 2009. These accounting policies were published within that document and are also available on the Company's website at www.experianplc.com/corporate/financial/reports.

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

3. Accounting policies and estimates (continued)

The preparation of half-yearly financial statements requires management to make estimates and assumptions that affect the reported amount of revenues, expenses, assets and 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 half-yearly 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 2009 and no change in estimate has had a material effect on the current period.

The Group has reviewed the valuation of its principal defined benefit pension plan and in the light of changes in the key actuarial assumptions an adjustment, as required at 30 September 2009, is incorporated in these unaudited condensed Group half-yearly financial statements. The actuarial assumption with the most significant impact at 30 September 2009 is the discount rate and a rate of 5.5% (2008: 7.3%) has been used at that date. The discount rate used in the year ended 31 March 2009 was 6.9%. An analysis of amounts reported within retirement benefit assets and obligations, together with an analysis of movements in the period, is given in note 17 together with the key actuarial assumptions.

Goodwill held in the Group's balance sheet is tested annually for impairment at the year end. No circumstances have arisen in the six months ended 30 September 2009 which indicate additional impairment testing is required.

The Group had no material or unusual related party or share-based payment transactions during the six months ended 30 September 2009. Disclosures in respect of the Group's related party transactions for the period are given in note 25 and full details of share-based payment arrangements were provided in the Group's statutory financial statements for the year ended 31 March 2009.

4. Presentation of financial information

There have been two significant developments in financial reporting which became effective for Experian at the start of the current financial year and these have been taken into account in the presentation of the unaudited condensed Group half-yearly financial statements:

a) IAS 1 'Amendment - Presentation of Financial Statements'

This revised standard requires that the Group statement of changes in total equity is now presented as a primary statement. The standard also prohibits the presentation of items of income and expense within this statement and requires such 'non-owner changes in equity' to be presented separately from 'owner changes in equity'. Accordingly the standard requires that all 'non-owner changes in equity' are shown in a performance statement and, as permitted by the standard, the Group has elected to comply with this requirement by presenting an income statement and a statement of comprehensive income. 

b) Segmental reporting - adoption of IFRS 8 'Operating segments'

The segmental information presented in notes 7 and 8 has been prepared in accordance with the requirements of IFRS 8.

Experian is organised into, and managed on a worldwide basis over, the following five operating segments, based on geographical areas, supported by its central Group functions:

• North America;

• Latin America;

• UK and Ireland;

• Europe, Middle East and Africa ('EMEA'); and

• Asia Pacific.

The chief operating decision-maker, identified in accordance with the requirements of IFRS 8, assesses the performance of the above operating segments on the basis of EBIT, as defined in note 6.

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

4. Presentation of financial information (continued)

The 'All other segments' category required to be disclosed under IFRS 8 has been captioned in these financial statements as EMEA/Asia Pacific. This combines information in respect of the EMEA and the Asia Pacific segments as, on the basis of their share of the Group's results and net assets, neither of these operating segments is individually reportable under IFRS 8. Accordingly the information given in respect of this category is comparable to that previously disclosed under IAS 14 in respect of EMEA/Asia Pacific.

Experian separately presents information equivalent to segment disclosures in respect of the costs of its central Group functions under the caption of 'Central Activities', as management believes that the reporting of this information is helpful to users of the financial statements. Information disclosed under Central Activities includes costs arising from finance, treasury and other global functions.

Information presented to meet the requirements of IFRS 8 additionally includes analysis of the Group's revenues over groups of service lines within note 8. This is supplemented by additional voluntary disclosure of the profitability of those same groups of service lines, and is equivalent to disclosures previously provided of segmental information analysed by business segment under IAS 14. For ease of reference, Experian continues to use the term 'business segments' when discussing the results of groups of service lines. 

The North America and the UK and Ireland segments derive revenues from all of the Group's major service lines. The Latin America, EMEA and Asia Pacific segments currently do not derive revenue from the Interactive service line.

5. Other recent accounting developments 

The following accounting standards, amendments and interpretations issued by the IASB and the International Financial Reporting Interpretations Committee (the 'IFRIC') are effective for the Group's accounting periods beginning on or after 1 April 2009 but have had no material effect on the results or financial position of the Group disclosed within these unaudited condensed Group half-yearly financial statements:

• Amendment to IFRS 2 - 'Share-based payments'

• Amendment to IAS 23 - 'Borrowing costs'

• Amendments to IAS 32 and IAS 1 - 'Puttable financial instruments and obligations arising on liquidation'

• Amendments to IAS 39 and IFRS 7 - 'Reclassification of financial instruments'

• Improvements to IFRSs (May 2008)

• IFRIC 13 'Customer loyalty programmes' 

• IFRIC 15 'Agreements for the construction of real estate'

• IFRIC 16 'Hedges of a net Investment in a foreign operation' 

In addition, the amendment to IFRS 7 'Improving disclosures about financial instruments', the amendments to IFRIC 9 and IAS 39 'Embedded derivatives' and IFRIC 18 'Transfers of assets to customers' are also now effective for the Group but have not yet received EU endorsement.

At the balance sheet date, a number of new standards, amendments and interpretations were in issue but are not yet effective for the Group and have not been early adopted:

• Amendment to IAS 27 - 'Consolidated and separate financial statements'

• Amendment to IAS 39 - 'Eligible hedged items'

• Amendment to IFRS 2 - 'Group cash-settled share-based payment'

• Amendment to IFRS 3 - 'Business combinations'

• Improvements to IFRSs (April 2009)

• IFRIC 17 - 'Distributions of non-cash assets to owners'

• IFRIC 18 - 'Transfers of assets from customers'

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

5. Other recent accounting developments (continued)

The amendments to IAS 27 and IFRS 3 will impact the accounting treatment of acquisitions in the Group financial statements. If they had been adopted, the other new standards, amendments or interpretations would have had no material effect on the results or financial position of the Group disclosed within these financial statements although a number would lead to additional or revised disclosures.

6. Use of non-GAAP measures

The Group has identified certain measures that it believes will assist understanding of the performance of the business. The measures are not defined under IFRS and they may not be directly comparable with other companies' adjusted measures. The non-GAAP measures are not intended to be a substitute for, or superior to, any IFRS measures of performance but management has included them as they consider them to be important comparables and key measures used within the business for assessing performance.

The following are the key non-GAAP measures identified by the Group:

Benchmark profit before tax ('Benchmark PBT')

Benchmark PBT is defined as profit before amortisation of acquisition intangibles, goodwill impairments, charges in respect of the demerger-related equity incentive plans, exceptional items, financing fair value remeasurements, tax and discontinued operations. It includes the Group's share of associates' pre-tax profit.

Earnings before interest and tax ('EBIT')

EBIT is defined as profit before amortisation of acquisition intangibles, goodwill impairments, charges in respect of the demerger-related equity incentive plans, exceptional items, net financing costs, tax and discontinued operations. It includes the Group's share of associates' pre-tax profit.

Benchmark earnings

Benchmark earnings represents Benchmark PBT less attributable tax and minority interests. Benchmark earnings attributable to minority interests represents that portion of Benchmark earnings that relate to minority interests.

Benchmark earnings per share ('Benchmark EPS')

Benchmark EPS represents Benchmark PBT less attributable tax and minority interests divided by the weighted average number of shares in issue, and is disclosed to indicate the underlying profitability of the Group.

Exceptional items

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

Operating cash flow

Operating cash flow is calculated as cash generated from operations adjusted for outflows in respect of the purchase of property, plant and equipment and other intangible assets and adding dividends from associates but excluding any cash inflows and outflows in respect of exceptional items. It is defined as EBIT less changes in working capital, plus depreciation/amortisation, less capital expenditure, less profit retained in associates. 

Net debt

Net debt is calculated as total debt less cash and cash equivalents and other highly liquid bank deposits with original maturities greater than three months. Total debt includes loans and borrowings (and the fair value of derivatives hedging loans and borrowings), overdrafts and obligations under finance leases. Accrued interest is excluded from net debt. 

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

7. Segment information

Six months ended 30 September 2009
	Continuing operations(1)
	North  America US$m	Latin  America US$m		UK and Ireland US$m		EMEA/ Asia Pacific(3) US$m		Total operating segments US$m	Central Activities US$m		Total  continuing operations US$m
Revenue from external customers(2)	1,017	255		397		205		1,874	-		1,874
Profit/(loss) before tax	243	56		85		2		386	(35)		351
Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	303	75		106		19		503	(25)		478
Net interest	-	-		-		-		-	(41)		(41)
Benchmark PBT	303	75		106		19		503	(66)		437
Exceptional items (note 10)	(27)	-		(3)		(10)		(40)	(6)		(46)
Amortisation of acquisition intangibles	(25)	(19)		(14)		(6)		(64)	-		(64)
Charges in respect of the demerger-related equity incentive plans	(7)	-		(4)		(1)		(12)	(3)		(15)
Financing fair value remeasurements	-	-		-		-		-	40		40
Tax expense on share of profit of associates	(1)	-		-		-		(1)	-		(1)
Profit/(loss) before tax	243	56		85		2		386	(35)		351
1    A loss before tax of US$8m arose in respect of discontinued operations, which comprised the Group's transaction processing activities in France. Further information on discontinued operations is shown in note 13. 2    Revenue from external customers arose principally from the provision of services. 3    EMEA/Asia Pacific represents all other operating segments.

Six months ended 30 September 2008
	Continuing operations(1)
	North  America US$m	Latin  America US$m		UK and Ireland US$m	EMEA/ Asia Pacific(3) US$m			Total operating segments US$m		Central Activities US$m		Total  continuing operations US$m
Revenue from external customers(2)	1,037	263		505	212			2,017		-		2,017
Profit/(loss) before tax	251	46		85	6			388		(70)		318
Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	295	68		123	17			503		(27)		476
Net interest	-	-		-	-			-		(60)		(60)
Benchmark PBT	295	68		123	17			503		(87)		416
Exceptional items (note 10)	(11)	-		(15)	(3)			(29)		(4)		(33)
Amortisation of acquisition intangibles	(24)	(22)		(18)	(6)			(70)		-		(70)
Charges in respect of the demerger-related equity incentive plans	(8)	-		(5)	(2)			(15)		(6)		(21)
Financing fair value remeasurements	-	-		-	-			-		27		27
Tax expense on share of profit of associates	(1)	-		-	-			(1)		-		(1)
Profit/(loss) before tax	251	46		85	6			388		(70)		318
1    Additional revenue from external customers of US$174m and a loss before tax of US$4m arose in respect of discontinued operations, which comprised the Group's transaction processing activities in France. Further information on discontinued operations is shown in note 13. 2    Revenue from external customers arose principally from the provision of services. 3    EMEA/Asia Pacific represents all other operating segments.

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009 

7. Segment information (continued)

Year ended 31 March 2009
	Continuing operations(1)
	North  America US$m	Latin  America US$m		UK and Ireland US$m	EMEA/ Asia Pacific(3) US$m			Total operating segments US$m		Central Activities US$m		Total  continuing operationsUS$m
Revenue from external customers(2)	2,083	462		902	426			3,873		-		3,873
Profit/(loss) before tax	502	80		140	12			734		(156)		578
Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	616	118		213	49			996		(57)		939
Net interest	-	-		-	-			-		(96)		(96)
Benchmark PBT	616	118		213	49			996		(153)		843
Exceptional items (note 10)	(49)	-		(30)	(22)			(101)		(16)		(117)
Amortisation of acquisition intangibles	(48)	(38)		(34)	(12)			(132)		-		(132)
Goodwill adjustment	(1)	-		-	-			(1)		-		(1)
Charges in respect of the demerger-related equity incentive plans	(14)	-		(9)	(3)			(26)		(6)		(32)
Financing fair value remeasurements	-	-		-	-			-		19		19
Tax expense on share of profit of associates	(2)	-		-	-			(2)		-		(2)
Profit/(loss) before tax	502	80		140	12			734		(156)		578
1    Additional revenue from external customers of US$201m and profit before tax of US$26m arose in respect of discontinued operations, which comprised the Group's transaction processing activities in France. Further information on discontinued operations is shown in note 13. 2    Revenue from external customers arose principally from the provision of services. 3    EMEA/Asia Pacific represents all other operating segments.

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

8. Information on business segments (non-GAAP disclosures)

Six months ended 30 September 2009
	Continuing operations(1)
	Credit  Services  US$m	Decision Analytics US$m	Marketing  Services US$m	Interactive US$m	Total operating segments US$m	Central  Activities US$m	Total continuing operations US$m
Revenue from external customers(2)	814	211	341	508	1,874	-	1, 874
Profit/(loss) before tax	241	53	9	95	398	(47)	351
Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	302	57	32	112	503	(25)	478
Net interest	-	-	-	-	-	(41)	(41)
Benchmark PBT	302	57	32	112	503	(66)	437
Exceptional items (note 10)	(31)	(2)	(6)	(1)	(40)	(6)	(46)
Amortisation of acquisition intangibles	(29)	(2)	(17)	(16)	(64)	-	(64)
Charges in respect of the demerger-related equity incentive plans(3)	-	-	-	-	-	(15)	(15)
Financing fair value remeasurements	-	-	-	-	-	40	40
Tax expense on share of profit of associates	(1)	-	-	-	(1)	-	(1)
Profit/(loss) before tax	241	53	9	95	398	(47)	351
1    A loss before tax of US$8m arose in respect of discontinued operations, which comprised the Group's transaction processing activities in France. Further information on discontinued operations is shown in note 13. 2    Revenue from external customers arose principally from the provision of services. 3    No allocation by business segment is made for charges in respect of the demerger-related equity incentive plans as the underlying data is maintained only to provide an allocation by segment.

Six months ended 30 September 2008
	Continuing operations(1)
	Credit  Services  US$m	Decision Analytics US$m		Marketing  Services US$m	Interactive US$m			Total operating segments US$m		Central Activities US$m		Total continuing operations  US$m
Revenue from external customers(2)	889	261		400	467			2,017		-		2,017
Profit/(loss) before tax	246	72		4	81			403		(85)		318
Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	286	82		35	100			503		(27)		476
Net interest	-	-		-	-			-		(60)		(60)
Benchmark PBT	286	82		35	100			503		(87)		416
Exceptional items (note 10)	(9)	(7)		(10)	(3)			(29)		(4)		(33)
Amortisation of acquisition intangibles	(30)	(3)		(21)	(16)			(70)		-		(70)
Charges in respect of the demerger-related equity incentive plans(3)	-	-		-	-			-		(21)		(21)
Financing fair value remeasurements	-	-		-	-			-		27		27
Tax expense on share of profit of associates	(1)	-		-	-			(1)		-		(1)
Profit/(loss) before tax	246	72		4	81			403		(85)		318
1    Additional revenue from external customers of US$174m and a loss before tax of US$4m arose in respect of discontinued operations, which comprised the Group's transaction processing activities in France. Further information on discontinued operations is shown in note 13. 2    Revenue from external customers arose principally from the provision of services. 3    No allocation by business segment is made for charges in respect of the demerger-related equity incentive plans as the underlying data is maintained only to provide an allocation by segment.

Notes to the unaudited condensed Group half-yearly financial statements 

for the six months ended 30 September 2009

8. Information on business segments (non-GAAP disclosures) (continued)

Year ended 31 March 2009
	Continuing operations(1)
	Credit  Services  US$m	Decision Analytics US$m		Marketing  Services US$m	Interactive US$m			Total operating segments US$m		Central Activities US$m		Total   continuing operations US$m
Revenue from external customers (2)	1,666	487		770	950			3,873		-		3,873
Profit/(loss) before tax	457	120		24	171			772		(194)		578
Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	554	142		88	212			996		(57)		939
Net interest	-	-		-	-			-		(96)		(96)
Benchmark PBT	554	142		88	212			996		(153)		843
Exceptional items (note 10)	(41)	(16)		(23)	(9)			(89)		(28)		(117)
Amortisation of acquisition intangibles	(54)	(6)		(40)	(32)			(132)		-		(132)
Goodwill adjustment	-	-		(1)	-			(1)		-		(1)
Charges in respect of the demerger-related equity incentive plans	-	-		-	-			-		(32)		(32)
Financing fair value remeasurements	-	-		-	-			-		19		19
Tax expense on share of profit of associates	(2)	-		-	-			(2)		-		(2)
Profit/(loss) before tax	457	120		24	171			772		(194)		578
1    Additional revenue from external customers of US$201m and profit before tax of US$26m arose in respect of discontinued operations, which comprised the Group's transaction processing activities in France. Further information on discontinued operations is shown in note 13. 2    Revenue from external customers arose principally from the provision of services. 3    No allocation by business segment is made for charges in respect of the demerger-related equity incentive plans as the underlying data is maintained only to provide an allocation by segment.

9. Foreign currency

The principal exchange rates used in these financial statements are as follows:

	Average				Closing
	Six months ended 30 September		Year ended 31 March		30 September		31 March
	2009	2008	2009		2009	2008	2009
Sterling : US dollar	1.57	1.93	1.69		1.60	1.79	1.43
US dollar : Brazilian real	1.99	1.68	1.96		1.78	1.92	2.30
Euro : US dollar	1.40	1.53	1.41		1.46	1.41	1.33

Assets and liabilities of undertakings whose functional currency is not the US dollar are translated into US dollars at the rates of exchange ruling at the balance sheet date. Their income statements are translated into US dollars at average rates of exchange (unless these averages are not reasonable approximations of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rates on the dates of the transactions).

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

10. Exceptional items and other non-GAAP measures

	Six months ended 30 September		Year ended 31 March
	2009 US$m	2008 US$m	2009 US$m
Exceptional items
Restructuring costs	21	30	92
Cessation of bureau activities	3	-	15
Loss on disposal of businesses	22	3	3
Demerger and related restructuring costs	-	-	7
Total exceptional items	46	33	117
Other non-GAAP measures
Amortisation of acquisition intangibles	64	70	132
Goodwill adjustment	-	-	1
Charges in respect of the demerger-related equity incentive plans	15	21	32
Financing fair value remeasurements	(40)	(27)	(19)
Total other non-GAAP measures	39	64	146

Exceptional items and other non-GAAP measures are in respect of continuing operations. Exceptional items are charged to administrative expenses.

Exceptional items 

Expenditure of US$21m (2008: US$30m) arose in the period in connection with the Group's strategic programme of cost efficiency measures. Of this US$9m (2008: US$13m) related to redundancy, US$12m (2008: US$15m) related to offshoring activities, infrastructure consolidations and other restructuring activities and US$nil (2008: US$2m) related to asset write-offs. In the year ended 31 March 2009, expenditure of US$92m arose in connection with this programme comprising US$51m in respect of redundancy, US$34m relating to offshoring activities, infrastructure and other restructuring activities and US$7m relating to asset write-offs.

During the period, and as previously announced, Experian completed the closure of its Canadian credit bureau and terminated its joint venture bureau in Japan with final closure costs of US$3m. Charges associated with the closure of the bureaux in the year ended 31 March 2009 included US$13m of fixed asset write-offs, including the related investment in associate, and a further US$2m of closure costs. 

The loss on disposal of businesses in the period primarily arose as a result of the disposal of the National Business database in North America.

Demerger and related restructuring costs in the year ended 31 March 2009 comprised legal and professional fees, together with costs in connection with the cessation of a number of subsidiaries of the former GUS plc.

Cash outflows in respect of exceptional items are analysed in note 18(d).

Other non-GAAP measures

IFRS requires that, on acquisition, specific intangible assets are identified and recognised separately from goodwill and then amortised over their useful economic lives. These include items such as brand names and customer lists, to which value is first attributed at the time of acquisition. The Group has excluded amortisation of these acquisition intangibles from its definition of Benchmark PBT because such a charge is based on judgments about their value and economic life.

In the year ended 31 March 2009, a goodwill adjustment of US$1m arose under IFRS 3 'Business Combinations' on the recognition of previously unrecognised tax losses on prior years' acquisitions. The corresponding tax benefit reduced the tax charge for that year by US$1m. 

Charges in respect of demerger-related equity incentive plans relate to one-off grants made to senior management and at all staff levels at the time of the demerger, under a number of equity incentive plans. The cost of these one-off grants is being charged to the Group income statement over the five years from flotation in October 2006, but excluded from the definition of Benchmark PBT. The cost of all other grants is being charged to the Group income statement and included in the definition of Benchmark PBT.

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

10. Exceptional items and other non-GAAP measures (continued)

An element of the Group's derivatives is ineligible for hedge accounting under IFRS. Gains or losses on these derivatives arising from market movements, together with gains and losses on put options in respect of acquisitions, are credited or charged to financing fair value remeasurements within finance income and finance expense in the Group income statement.

11. Net financing costs

	Six months ended 30 September		Year ended 31 March
	2009 US$m	2008 US$m	2009 US$m
Interest income:
Expected return on pension plan assets	22	40	69
Other interest income	8	14	28
Interest income	30	54	97
Financing fair value gains:
Movement in fair value of Serasa put option	-	7	21
Other financing fair value gains	55	38	64
Financing fair value gains	55	45	85
Finance income	85	99	182
Interest expense:
Interest expense on pension plan liabilities	24	30	52
Other interest expense	47	84	141
Interest expense	71	114	193
Financing fair value losses:
Movement in fair value of Serasa put option	8	-	-
Other financing fair value losses	7	18	66
Financing fair value losses	15	18	66
Finance expense	86	132	259
Net financing costs	1	33	77

12. Group tax expense

The effective rate of tax is 22.2% (2008: 13.2%) based on the profit before tax for the six months ended 30 September 2009 of US$351m (2008: US$318m) and the Group tax expense of US$78m (2008: US$42m). The effective rate of tax based on Benchmark PBT of US$437m (2008: US$416m) and the associated tax charge of US$96m (2008: US$87m), excluding the effect of a one-off corporation tax credit of US$nil (2008: US$20m) in respect of prior periods, is 22.0% (2008: 20.9%). The one-off corporation tax credit was excluded from the calculation of the effective rate of tax based on Benchmark PBT in the prior year as it related to arrangements involving entities no longer part of the Group. 

The tax expense recognised in the period is based on management's best estimate of the tax rate for the full financial year. The effective rate of tax for the year ended 31 March 2009 was 14.5% based on the profit before tax for that year of US$578m and the Group tax expense of US$84m. The effective rate of tax for the year ended 31 March 2009 based on Benchmark PBT of US$843m and the associated tax charge of US$184m, excluding the effect of the one-off corporation tax credit, was 21.8%. 

The reconciliation of the tax expense reported in the Group income statement to the Benchmark tax charge is as follows:

	Six months ended 30 September		Year ended 31 March
	2009 US$m	2008 US$m	2009 US$m
Group tax expense	78	42	84
Add: one-off corporation tax credit	-	20	20
Add: tax relief on exceptional items	3	-	25
Add: tax relief on other non-GAAP measures	14	24	53
Tax expense on share of profit of associates	1	1	2
Tax on Benchmark PBT	96	87	184

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

13. Discontinued operations 

The Group disposed of its transaction processing activities in France on 31 October 2008. As a consequence, the results and cash flows of that business for the six months ended 30 September 2008 and the year ended 31 March 2009 were classified as discontinued, and the assets and liabilities at 30 September 2008 were separately reported as held for sale in the Group balance sheet.

Results for discontinued operations

	Six months ended 30 September				Year ended 31 March
	2009 US$m		2008 US$m		2009 US$m
Revenue	-		174		201
Cost of sales	-		(127)		(147)
Gross profit	-		47		54
Distribution costs	-		(5)		(6)
Administrative expenses	-		(42)		(49)
Operating expenses	-		(47)		(55)
Profit/(loss) for discontinued operations	-		-		(1)
(Loss)/profit on disposal of discontinued operations:
(Loss)/profit on disposal	(8)		(4)		27
Tax charge in respect of (loss)/profit on disposal	-		-		(14)
(Loss)/profit after tax on disposal	(8)		(4)		13
(Loss)/profit for the period from discontinued operations	(8)		(4)		12

There was a net cash inflow on the disposal of the transaction processing activities in France of US$191m in the year ended 31 March 2009 which occurred primarily in the second half of that year on the completion of the sale and a further cash outflow of US$17m in the six months ended 30 September 2009 on the settlement of additional related costs. These cash flows are disclosed within net cash flows used in investing activities from continuing operations in the Group cash flow statement.

Cash flows attributable to discontinued operations

	Six months ended 30 September				Year ended 31 March
	2009 US$m		2008 US$m		2009 US$m
From operating activities	-		(15)		(10)
From investing activities	-		(9)		(10)
Exchange and other movements	-		1		3
Net decrease in cash and cash equivalents in discontinued operations	-		(23)		(17)

Assets and liabilities classified as held for sale at 30 September 2008

	US$m
Assets classified as held for sale:
Goodwill	57
Other intangible assets	31
Property, plant and equipment	17
Tax assets	6
Trade and other receivables	156
Assets classified as held for sale	267
Liabilities classified as held for sale:
Trade and other payables	102
Loans and borrowings	6
Liabilities classified as held for sale	108

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

14. Basic and diluted earnings per share

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders of the Company by a weighted average number of the ordinary shares in issue (excluding own shares held in employee trusts, which are treated as cancelled).

The calculation of diluted earnings per share reflects the potential dilutive effect of employee share incentive plans. The earnings figures used in the calculations are unchanged for diluted earnings per share.

	Six months ended 30 September		Year ended 31 March
	2009	2008	2009
Basic earnings per share:	US cents	US cents	US cents
Continuing and discontinued operations	24.5	25.5	48.0
Exclude: discontinued operations	0.8	0.4	(1.2)
Continuing operations	25.3	25.9	46.8
Add back of exceptional and other non-GAAP measures, net of tax	6.3	4.8	15.5
Benchmark earnings per share from continuing operations (non-GAAP measure)	31.6	30.7	62.3
	Six months ended 30 September		Year ended 31 March
	2009	2008	2009
Diluted earnings per share:	US cents	US cents	US cents
Continuing and discontinued operations	24.1	25.2	47.5
Exclude: discontinued operations	0.8	0.4	(1.2)
Continuing operations	24.9	25.6	46.3
Add back of exceptional and other non-GAAP measures, net of tax	6.3	4.8	15.3
Benchmark diluted earnings per share from continuing operations (non-GAAP measure)	31.2	30.4	61.6
	Six months ended 30 September		Year ended 31 March
	2009	2008	2009
Earnings:	US$m	US$m	US$m
Continuing and discontinued operations	249	258	486
Exclude: discontinued operations	8	4	(12)
Continuing operations	257	262	474
Add back of exceptional and other non-GAAP measures, net of tax	55	48	157
Benchmark earnings (non-GAAP measure)	312	310	631
	Six months ended 30 September		Year ended 31 March
	2009	2008	2009
Earnings attributable to minority interests:	US$m	US$m	US$m
Continuing and discontinued operations	16	14	20
Add back of amortisation of acquisition intangibles, net of tax	4	5	8
Benchmark earnings attributable to minority interests (non-GAAP measure)	20	19	28
	Six months ended 30 September		Year ended 31 March
	2009	2008	2009
Weighted average number of ordinary shares in issue:	m	m	m
Weighted average number of ordinary shares in issue during the period	1,014.9	1,011.4	1,012.6
Dilutive effect of share incentive awards	14.2	11.0	12.3
Diluted weighted average number of shares in issue during the period	1,029.1	1,022.4	1,024.9

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

15. Dividends

	Six months ended 30 September						Year ended 31 March
	2009		2009	2008	2008		2009	2009
	US cents per share		US$m	US cents  per share	US$m		US cents  per share	US$m
Amounts recognised and paid as distributions to equity shareholders:
First interim - paid in January 2009	-		-	-	-		6.75	68
Second interim - paid in July 2009 (2008: July 2008)	13.25		135	12.00	121		12.00	121
Ordinary dividends paid on equity shares	13.25		135	12.00	121		18.75	189
First interim dividend per ordinary share (announced)	7.00		71	6.75	68
Full year dividend for the year ended 31 March 2009							20.00	203

A first interim dividend of 7.00 US cents per ordinary share will be paid on 29 January 2010 to shareholders on the register at the close of business on 4 January 2010 and is not included as a liability in these financial statements. 

Unless shareholders elect by 4 January 2010 to receive US dollars, their dividends will be paid in sterling at a rate per share calculated on the basis of the exchange rate from US dollars to sterling on 8 January 2010. 

Pursuant to the Income Access Share arrangements put in place as part of the demerger of Experian and Home Retail Group in October 2006, shareholders in the Company can elect to receive their dividends from a UK source (the 'IAS election'). Shareholders who held 50,000 or fewer Experian shares (i) on the date of admission of the Company's shares to listing on the London Stock Exchange and (ii) in the case of shareholders who did not own shares at that time, on the first dividend record date after they become shareholders in the Company, unless they elect otherwise, will be deemed to have elected to receive their dividends under the IAS election arrangements. Shareholders who hold more than 50,000 shares and who wish to receive their dividends from a UK source must make an IAS election. All elections remain in force indefinitely unless revoked. Unless shareholders have made an IAS election, or are deemed to have made an IAS election, dividends will be received from an Irish source and will be taxed accordingly.

Further details in respect of the Company's Dividend Reinvestment Plan are given on page 45.

16. Capital expenditure, disposals and capital commitments

During the six months ended 30 September 2009 the Group incurred capital expenditure of US$135m (2008: US$155m, including US$9m in respect of discontinued operations). In the year ended 31 March 2009, capital expenditure was US$315m, including US$10m in respect of discontinued operations. 

The book value of other intangible fixed assets and property, plant and equipment disposed of in the six months ended 30 September 2009 was US$28m and the amount realised was US$25m.

At 30 September 2009, the Group had capital commitments in respect of property, plant and equipment and intangible assets and for which contracts had been placed of US$18m (2008: US$10m). At 31 March 2009, there were US$22m such commitments.

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

17. Retirement benefit obligations and assets - defined benefit plans

a) Amounts recognised in the Group balance sheet
	30 September		31 March
Retirement benefit (deficit)/surplus - funded plans:	2009 US$m	2008 US$m	2009 US$m
Market value of funded plans' assets	815	856	595
Present value of funded plans' liabilities	(887)	(747)	(614)
(Deficit)/surplus in the funded plans	(72)	109	(19)
Retirement benefit obligations - unfunded plans:
Present value of unfunded pension arrangements	(41)	(34)	(26)
Liability for post-retirement healthcare	(16)	(13)	(13)
Retirement benefit obligations - unfunded plans	(57)	(47)	(39)
Net retirement benefit (obligations)/assets	(129)	62	(58)
b) Amounts disclosed in the Group balance sheet
	30 September		31 March
	2009 US$m	2008 US$m	2009 US$m
Retirement benefit assets	-	109	-
Retirement benefit obligations	(129)	(47)	(58)
Net retirement benefit (obligations)/assets	(129)	62	(58)
The Group's retirement benefit obligations and assets are denominated primarily in sterling.
c) Movements during the period in the net retirement benefit (obligations)/assets
	30 September		31 March
	2009 US$m	2008 US$m	2009 US$m
At 1 April	(58)	132	132
Differences on exchange	(10)	(8)	(9)
Amounts recognised in Group income statement	(7)	1	7
Actuarial losses recognised in Group comprehensive income statement	(61)	(72)	(202)
Contributions paid by the Group	7	9	14
At balance sheet date	(129)	62	(58)
d) Amounts recognised in the Group income statement
	Six months ended 30 September		Year ended 31 March
	2009 US$m	2008 US$m	2009 US$m
Administrative costs before exceptional income	5	9	13
Exceptional income	-	-	(3)
Administrative costs	5	9	10
Net financing costs/(income)	2	(10)	(17)
Total charge/(credit) to Group income statement	7	(1)	(7)

e) Actuarial assumptions
	Six months ended 30 September		Year ended 31 March
	2009 %	2008 %	2009 %
Rate of inflation	3.4	3.7	3.4
Rate of increase for salaries	5.2	5.5	5.2
Rate of increase of pensions in payment and deferred pensions	3.4	3.7	3.4
Rate of increase in medical costs	6.5	6.5	6.5
Discount rate	5.5	7.3	6.9

The mortality assumptions used at 30 September 2009 remain broadly unchanged from those used at 31 March 2009.

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

18. Notes to the Group cash flow statement

		Six months ended 30 September		Year ended 31 March
	Notes	2009 US$m	2008 US$m	2009 US$m
a) Cash generated from operations
Operating profit		316	331	613
Loss on sale of property, plant and equipment		2	4	6
Loss on sale of other intangible assets		1	-	3
Loss on disposal of businesses		22	3	3
Depreciation and amortisation		195	213	420
Goodwill adjustment		-	-	1
Write down of investment in associate		-	-	5
Charge in respect of equity incentive plans		31	36	52
Change in working capital	18(b)	(84)	(93)	7
Exceptional items included in working capital		(11)	(18)	(8)
Cash generated from operations		472	476	1,102
b) Change in working capital
Increase in inventories		(2)	(1)	(2)
Decrease in receivables		30	49	24
Decrease in payables		(110)	(141)	(11)
Difference between pension contributions paid and amounts recognised in Group income statement		(2)	-	(4)
Change in working capital		(84)	(93)	7
c) Purchase of other intangible assets
Databases		73	81	153
Internally generated software		20	22	38
Internal use software		20	9	39
Purchase of other intangible assets		113	112	230
d) Cash outflow in respect of exceptional items
Total exceptional items	10	46	33	117
Working capital movements		11	18	8
Asset write-offs		(3)	(2)	(15)
Loss in respect of associates		-	-	(5)
Loss on disposal of businesses		(22)	(3)	(3)
Cash outflow in respect of exceptional items		32	46	102

Cash and cash equivalents in the Group cash flow statement are reported net of overdrafts. The loss on disposal of businesses in the six months ended 30 September 2008 has now been separately reported within notes 18(a) and 18(d) above on a basis consistent with that used in the year ended 31 March 2009.

19. Reconciliation of cash generated from operations to operating cash flow (non-GAAP measure)

		Six months ended 30 September		Year ended 31 March
	Notes	2009 US$m	2008 US$m	2009 US$m
Cash generated from operations	18(a)	472	476	1,102
Purchase of property, plant and equipment		(22)	(34)	(75)
Purchase of other intangible assets	18(c)	(113)	(112)	(230)
Dividends received from associates		27	20	28
Sale of property, plant and equipment		25	-	-
Net cash outflow from exceptional items	18(d)	32	46	102
Operating cash flow		421	396	927

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

20. Net debt (non-GAAP measure)

		30 September		31 March
		2009 US$m	2008 US$m	2009 US$m
a) Analysis of net debt (non-GAAP measure)
Cash and cash equivalents (net of overdrafts)		135	168	127
Bank deposits with maturity greater than three months		32	-	29
Derivatives hedging loans and borrowings		27	(36)	28
Debt due within one year		-	(551)	(295)
Finance leases		(10)	(12)	(9)
Debt due after more than one year		(2,232)	(2,185)	(1,990)
Net debt at the end of the period		(2,048)	(2,616)	(2,110)
Net debt held by:
Continuing operations		(2,048)	(2,610)	(2,110)
Discontinued operations		-	(6)	-
Net debt at the end of the period		(2,048)	(2,616)	(2,110)
b) Net debt by balance sheet caption:
Cash and cash equivalents		135	174	129
Loans and borrowings (current)		(6)	(562)	(314)
Loans and borrowings (non-current)		(2,260)	(2,221)	(2,003)
Liabilities of discontinued operations classified as held for sale		-	(6)	-
Net debt by balance sheet caption		(2,131)	(2,615)	(2,188)
Bank deposits within financial assets		32	-	29
Accrued interest		24	35	21
Derivatives hedging loans and borrowings		27	(36)	28
Net debt at the end of the period		(2,048)	(2,616)	(2,110)

At 30 September 2009, the Group had committed borrowing facilities of US$2,530m (2008: US$2,530m) which expire more than two years after the balance sheet date, of which US$865m (2008: US$934m) was undrawn. At 31 March 2009, the amount undrawn under these facilities was US$1,050m.

During the six months ended 30 September 2009, 6.375% Eurobonds 2009 with a par value of £203m were redeemed at their date of maturity. 

21. Share capital 

	Number of  shares m	Share  capital   US$m	Share premium account US$m	Total US$m
At 1 April 2008	1,023.4	102	1,442	1,544
Employee share option plans - proceeds from shares issued	1.2	-	7	7
At 30 September 2008	1,024.6	102	1,449	1,551
Employee share option plans - proceeds from shares issued	0.7	-	-	-
At 31 March 2009	1,025.3	102	1,449	1,551
Employee share option plans - proceeds from shares issued	0.7	-	4	4
At 30 September 2009	1,026.0	102	1,453	1,555

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

22. Acquisitions

The Group made no acquisitions during the six months ended 30 September 2009. No further goodwill was recognised in the period in connection with adjustments to contingent consideration in respect of acquisitions made in previous years. Deferred consideration of US$9m was settled during the period on acquisitions made in previous years.

There have been no material gains, losses, error corrections or other adjustments recognised in the six months ended 30 September 2009 that relate to acquisitions made in previous years.

23. Contingencies 

As was indicated in the annual report and financial statements for the year ended 31 March 2009, there are a number of pending and threatened litigation claims involving the Group in North America and Latin America which are being vigorously defended. The directors do not believe that the outcome of any such pending or threatened litigation will have a materially adverse effect on the Group's financial position. However, as is inherent in legal proceedings, there is a risk of outcomes unfavourable to the Group. In the case of unfavourable outcomes the Group would benefit from applicable insurance recoveries.

24. Events occurring after the end of the reporting period

Details of the first interim dividend approved since the end of the reporting period are given in note 15.

On 29 October 2009, the Group announced the following arrangements in respect of First American Real Estate Solutions LLC ('FARES'), which is owned 20% by Experian and 80% by The First American Corporation ('FAC'), and in respect of First Advantage Corporation ('FADV'), an associate of FARES:

• Following an offer by FAC to acquire the issued and outstanding shares of FADV Class A common stock in consideration for shares in FAC, Experian has elected to tender its direct and indirect holdings in FADV Class A common stock for shares in FAC. Experian directly and indirectly holds some 3.8m shares of FADV Class A common stock with a value of approximately US$69m and, on exchange and conversion, will hold some 2% of the total issued share capital of FAC. 

• Experian has agreed in principle that FARES will dispose of its interests in two business assets (the plant management and imaged documents businesses) to FAC with Experian receiving a cash consideration on completion of US$48m. 

• Experian and FAC have agreed in principle to amend the buy-out arrangements governing Experian's 20% interest in the balance of FARES (excluding the FARES interest in FADV and the two business assets disposed of to FAC). Under the amended terms, if the buy-out is exercised in 2010, cash consideration of some US$314m will be payable to Experian by 31 December 2010. Thereafter the consideration payable for Experian's 20% interest in FARES will revert to a set valuation multiple, consistent with the current terms.

25. Related parties

The Group made net sales and recharges, under normal commercial terms and conditions that would be available to third parties, to FARES and its associate FADV, of US$14m in the six months ended 30 September 2009 (2008: US$11m) and US$25m in the year ended 31 March 2009. There were no other significant related party transactions.

26. Seasonality

The Group's revenue is subject to certain seasonal fluctuations, as described in the commentary on page 14.

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2009

27. Corporate 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 auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the half-yearly financial report since it was initially presented on the website. Jersey legislation and the United Kingdom 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 2009 in accordance with applicable law, regulations and accounting standards. In preparing the unaudited condensed Group half-yearly financial statements the directors are responsible for ensuring that they give a true and fair view of the state of affairs of the Group at the end of the period and the profit or loss of the Group for that period.

The directors confirm that these unaudited condensed Group half-yearly financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU, and that the interim management report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8.

The directors of Experian plc are listed in the Group's statutory financial statements for the year ended 31 March 2009. There have been no subsequent changes of directors and a list of current directors is maintained on the Company's website at www.experianplc.com.

By order of the board

Charles Brown

Company Secretary

17 November 2009

Independent review report to Experian plc

Introduction

We have been engaged by Experian plc (the 'Company') to review the condensed Group half-yearly financial statements in the half-yearly financial report for the six months ended 30 September 2009, which comprise 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 notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed Group half-yearly financial statements.

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 Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed Group half-yearly financial statements included in this half-yearly financial report have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting', as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed Group half-yearly financial statements in the half-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of the Disclosure and Transparency Rules of the Financial Services Authority and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

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 United Kingdom. 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. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) 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.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed Group half-yearly financial statements in the half-yearly financial report for the six months ended 30 September 2009 are not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

PricewaterhouseCoopers LLP
Chartered Accountants 

London, United Kingdom

17 November 2009

Notes:

(a)    The maintenance and integrity of the Experian plc website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the half-yearly financial report since it was initially presented on the website.

(b)    Legislation in Jersey and the United Kingdom governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

Shareholder information

Experian website

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

Electronic shareholder communication 

Shareholders may register for Shareview, an electronic communication service provided by Equiniti Limited on behalf of the Company's Registrars, Equiniti (Jersey) Limited. Registration is via the Company's website, www.experianplc.com, or direct via www.experianshareview.com.

The service enables shareholders to access a comprehensive range of shareholder services online, including dividend payment information, the ability to check shareholdings, amend address or bank details and submit AGM proxy voting instructions.

When registering for Shareview, shareholders can select their preferred communication method - post or email. All shareholders will receive a written notification of the availability on the Company's website of shareholder documents, such as the annual report, 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 Reinvestment Plan ('DRIP')

The DRIP enables those shareholders who receive their dividends under the IAS election arrangements to use their cash dividends to purchase Experian shares. Such shareholders who wish to participate in the DRIP for the first time, in respect of the first interim dividend for the year ending 31 March 2010 to be paid on 29 January 2010, should return a completed and signed DRIP mandate form to be received by the Registrars, by no later than 4 January 2010. For further details, please contact the Company's Registrars.

Capital Gains Tax ('CGT') base cost for UK shareholders 

On 10 October 2006, GUS plc separated its Experian business from its Home Retail Group business by way of demerger. Following the demerger, GUS shareholders at 4.30pm on Friday 6 October 2006 were entitled to receive one share in Experian plc and one share in Home Retail Group plc for every share they held in GUS plc at that time.

The previous base cost of any GUS plc shares held at 4.30pm on 6 October 2006 is apportioned for UK CGT purposes in the following ratio: 58.235% to Experian plc shares and 41.765% to Home Retail Group plc shares (based on the closing prices of the respective shares on their first day of trading after their admission to the Official List of the London Stock Exchange on 11 October 2006).

For GUS plc shares acquired prior to the demerger of Burberry on 13 December 2005 which are affected by both the Burberry demerger and the subsequent separation of Experian and Home Retail Group, the original CGT base cost is apportioned 50.604% to Experian plc shares, 36.293% to Home Retail Group plc shares and 13.103% to Burberry Group plc shares.

Shareholder security

Shareholders are advised to be wary of any unsolicited advice, offers to buy shares at a discount, or offers of free reports about the Company. More detailed information can be found by visiting www.moneymadeclear.fsa.gov.uk. Details of any share dealing facilities that the Company endorses will be included in Company mailings or on the Company's website.

The Unclaimed Assets Register

Experian owns and participates in The Unclaimed Assets Register, which provides a search facility for shareholdings and other financial assets that may have been forgotten. For further information, please contact The Unclaimed Assets Register, PO Box 9501, Nottingham, NG80 1WD, United Kingdom (T: [phone]), or visit www.uar.co.uk.

Shareholder information

American Depository Receipts ('ADR')

Experian has a sponsored Level 1 ADR programme, for which Bank of New York Mellon acts as Depository. The Level 1 ADR programme is not listed on a stock exchange in the USA and trades in the over-the-counter market under the symbol EXPGY. Each ADR represents one Experian plc ordinary share. For further information, please contact:

Shareholder Relations

Bank of New York Mellon

PO Box 358516

Pittsburgh

PA 15252 - 8516

United States

T: [phone] (from the USA: 1-888-BNY-ADRS)

Financial calendar
First interim dividend record date	4 January 2010
Interim management statement, third quarter	15 January 2010
First interim dividend to be paid	29 January 2010
Trading update, second half	15 April 2010
Preliminary announcement of results	19 May 2010
Interim management statement, first quarter	15 July 2010
Annual General Meeting	21 July 2010

Contacts

Corporate headquarters:

Newenham House

Northern Cross

Malahide Road

Dublin 17

Ireland

T: [phone]

F: [phone]

Registered office:

22 Grenville Street

St Helier

Jersey

JE4 8PX

Registered no. 93905

Registrars:

Experian Shareholder Services

Equiniti (Jersey) Limited

PO Box 63

11-12 Esplanade

St Helier

Jersey

JE4 8PH

T: [phone] (or 0845 601 0810 from the UK)

Text phone facility: [phone] (or 0871 384 2255 from the UK)

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