Interim Results - part 2

RNS Number : 4500I

Experian plc

19 November 2008

 



Unaudited condensed Group half-yearly financial statements

Group income statement   

for the six months ended 30 September 2008

		Six months ended 30 September						Year ended 31 March
		2008			2007			2008
					(Restated)			(Restated)
					(Note 3)			(Note 3)
	Notes	US$m			US$m			US$m
Revenue	7	2,017			1,789			3,789
Cost of sales		(947)			(856)			(1,776)
Gross profit		1,070			933			2,013
Distribution costs		(199)			(168)			(380)
Administrative expenses		(540)			(430)			(1,008)
Operating expenses		(739)			(598)			(1,388)
Operating profit	7	331			335			625
Finance income			99			77			206
Finance expense			(132)			(169)			(360)
Net financing costs	11	(33)			(92)			(154)
Share of post-tax profits of associates		20			27			50
Profit before tax	7	318			270			521
Group tax expense	12	(42)			(51)			(91)
Profit after tax for the financial period  from continuing operations		276			219			430
(Loss)/profit for the financial period from discontinued operations	13	(4)			10			22
Profit for the financial period		272			229			452
Attributable to:
Equity shareholders in the parent company		258			224			437
Minority interests		14			5			15
Profit for the financial period		272			229			452
Earnings per share	14	US cents			US cents			US cents
- Basic		25.5			22.2			43.3
- Diluted		25.2			21.9			42.7
Earnings per share from continuing operations	14	US cents			US cents			US cents
- Basic		25.9			21.2			41.1
- Diluted		25.6			21.0			40.6
Non-GAAP measures		Six months ended 30 September						Year ended 31 March
Reconciliation of profit before tax to Benchmark PBT		2008			2007			2008
					(Restated)			(Restated)
					(Note 3)			(Note 3)
	Notes	US$m			US$m			US$m
Profit before tax	7	318			270			521
exclude: exceptional items	10	33			2			55
exclude: amortisation of acquisition intangibles	10	70			50			121
exclude: goodwill adjustment	10	-			-			2
exclude: charge in respect of the demerger-related equity incentive plans	10	21			24			49
exclude: financing fair value remeasurements	10	(27)			34			29
exclude: tax expense on share of profits of associates	7	1			1			6
Benchmark PBT - continuing operations	7	416			381			783
Benchmark earnings per share  from continuing operations	14	US cents			US cents			US cents
- Basic		30.7			28.5			57.5
- Diluted		30.4			28.1			56.8
		US cents			US cents			US cents
Dividend per share (including announced first interim dividend)	15	6.75			6.5			18.5

The notes on pages 27 to 48 form an integral part of these unaudited condensed Group half-yearly financial statements.

Unaudited condensed Group half-yearly financial statements

Group balance sheet

at 30 September 2008

	30 September		31 March
	2008 US$m	2007 (Restated) (Note 3) US$m	2008 US$m
Non-current assets
Goodwill	3,379	3,549	3,605
Other intangible assets	1,311	1,462	1,473
Property, plant and equipment	538	602	604
Investments in associates	324	291	295
Deferred tax assets	29	118	26
Retirement benefit assets (note 17)	109	210	182
Trade and other receivables	5	36	9
Available for sale financial assets	35	36	42
Other financial assets	-	5	24
	5,730	6,309	6,260
Current assets
Inventories	4	5	4
Trade and other receivables	758	928	1,031
Current tax assets	25	22	16
Other financial assets	10	6	6
Cash and cash equivalents	174	192	151
	971	1,153	1,208
Assets of discontinued operations classified as held for sale (note 13)	267	-	-
	1,238	1,153	1,208
Current liabilities
Trade and other payables	(912)	(1,030)	(1,279)
Loans and borrowings	(562)	(72)	(39)
Current tax liabilities	(112)	(217)	(110)
Provisions	(67)	(46)	(84)
Other financial liabilities	(31)	(25)	(50)
	(1,684)	(1,390)	(1,562)
Liabilities of discontinued operations classified as held for sale (note 13)	(108)	-	-
	(1,792)	(1,390)	(1,562)
Net current liabilities	(554)	(237)	(354)
Total assets less current liabilities	5,176	6,072	5,906
Non-current liabilities
Trade and other payables	(46)	(37)	(57)
Loans and borrowings	(2,221)	(3,142)	(2,811)
Deferred tax liabilities	(161)	(175)	(170)
Provisions	(24)	(39)	(27)
Retirement benefit obligations (note 17)	(47)	(59)	(50)
Other financial liabilities	(574)	(671)	(674)
	(3,073)	(4,123)	(3,789)
Net assets	2,103	1,949	2,117
Equity
Share capital (note 21)	102	102	102
Share premium (note 21)	1,449	1,441	1,442
Retained earnings	16,172	15,914	16,065
Other reserves	(15,768)	(15,666)	(15,653)
Total shareholders' equity	1,955	1,791	1,956
Minority interests in equity	148	158	161
Total equity (note 22)	2,103	1,949	2,117

The notes on pages 27 to 48 form an integral part of these unaudited condensed Group half-yearly financial statements.

  Unaudited condensed Group half-yearly financial statements

Group statement of recognised income and expense

for the six months ended 30 September 2008

	Six months ended 30 September		Year ended 31 March
	2008 US$m	2007 (Restated) (Note 3) US$m	2008 US$m
Net (expense)/income recognised directly in equity
Reversal of net investment hedge	-	(7)	(7)
Fair value losses on available for sale financial assets	(5)	(2)	(1)
Actuarial (losses)/gains in respect of defined benefit  pension schemes (note 17)	(72)	51	15
Currency translation differences	(147)	81	96
Tax credit/(charge) in respect of items taken directly to equity	21	(15)	(16)
Net (expense)/income recognised directly in equity	(203)	108	87
Profit for the financial period	272	229	452
Total income recognised in the period	69	337	539
Total income recognised in the period attributable to:
Equity shareholders in the parent company	71	326	524
Minority interests	(2)	11	15
Total income recognised in the period	69	337	539

The notes on pages 27 to 48 form an integral part of these unaudited condensed Group half-yearly financial statements.

  Unaudited condensed Group half-yearly financial statements

Group cash flow statement

for the six months ended 30 September 2008 

	Six months ended 30 September		Year ended 31 March
	2008 US$m	2007 (Restated) (Note 3) US$m	2008 (Restated) (Note 3) US$m
Cash flows from operating activities
Cash generated from operations (note 18(a))	476	409	1,134
Interest paid	(86)	(85)	(168)
Interest received	10	32	37
Dividends received from associates	20	23	36
Tax paid	(40)	(32)	(79)
Net cash inflow from operating activities	380	347	960
Cash flows from investing activities
Purchase of property, plant and equipment	(34)	(43)	(99)
Purchase of other intangible assets	(112)	(86)	(222)
Purchase of investments in associates and available for sale financial assets	(28)	(1)	(9)
Acquisition of subsidiaries, net of cash acquired	(52)	(1,704)	(1,720)
Disposal of subsidiaries	-	-	6
Net cash flows used in investing activities	(226)	(1,834)	(2,044)
Cash flows from financing activities
Purchase of own shares by employee trusts	-	(6)	(6)
Issue of ordinary shares	7	6	7
Receipt of share option proceeds and sale of own shares	5	24	34
New borrowings	167	1,761	1,438
Repayment of borrowings	(84)	(746)	(746)
Capital element of finance lease rental payments	(2)	(2)	(5)
Net (payments)/receipts from derivative financial instruments held to manage currency profile	(50)	83	54
Dividends paid	(131)	(115)	(193)
Net cash flows (used in)/generated from  financing activities	(88)	1,005	583
Exchange and other movements	(22)	12	17
Net increase/(decrease) in cash and cash equivalents - continuing operations	44	(470)	(484)
Net decrease in cash and cash equivalents - discontinued operations (note 13)	(23)	(8)	(3)
Net increase/(decrease) in cash and cash equivalents	21	(478)	(487)
Movement in cash and cash equivalents
Cash and cash equivalents at 1 April	147	634	634
Net increase/(decrease) in cash and cash equivalents	21	(478)	(487)
Cash and cash equivalents at the end of the  financial period	168	156	147
Non-GAAP measures
Analysis of movement in net debt	Six months ended 30 September		Year ended 31 March
	2008 US$m	2007  US$m	2008 US$m
Net debt at 1 April	(2,699)	(1,408)	(1,408)
Net increase/(decrease) in cash and cash equivalents	21	(478)	(487)
Increase in debt	(81)	(1,030)	(707)
Exchange and other movements (including movements  in respect of debt)	143	(111)	(97)
Net debt at the end of the financial period (note 20)	(2,616)	(3,027)	(2,699)

The notes on pages 27 to 48 form an integral part of these unaudited condensed Group half-yearly financial statements.

  Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

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 listed on the London Stock Exchange. The Company changed its name from Experian Group Limited on 21 July 2008.

These unaudited condensed Group half-yearly financial statements were approved for issue on 18 November 2008. No significant events impacting the Group, other than those disclosed in this document, have occurred between 30 September 2008 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 2008, were approved by the directors on 20 May 2008 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.

2. Basis of preparation

These unaudited condensed Group half-yearly financial statements for the six months ended 30 September 2008 have been prepared in accordance with the Disclosure and Transparency Rules of the United Kingdom Financial Services Authority and with IAS 34 'Interim Financial Reporting' as adopted by the European Union. 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 2008, 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 European Union and as issued by the International Accounting Standards Board. These are those standards, subsequent amendments and related interpretations issued and adopted by the International Accounting Standards Board that have been endorsed by the European Union.

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 2008 and 30 September 2007 and for the year ended 31 March 2008. The financial information for the year ended 31 March 2008 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 50.

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. 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 3, the financial information has been prepared on a basis consistent with that reported for the six months ended 30 September 2007 and the year ended 31 March 2008.

  Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

3. Comparative information

There have been a number of developments which change the presentation of the comparative financial information and these are summarised as follows:

• An announcement was made on 15 October 2008 of an agreement to dispose of the Group's transaction processing activities in France and the transaction was completed on 31 October 2008. As a consequence of this agreement, in accordance with the requirements of IFRS 5 'Non-current assets held for sale and discontinued operations', the results and cash flows of that business for the six months ended 30 September 2007 and the year ended 31 March 2008 have been reclassified as discontinued. The results of the EMEA/Asia Pacific geographical segment (shown within note 7) and the Credit Services business segment (shown within note 8(a)) have been restated accordingly. In accordance with the requirements of IFRS 5, the assets and liabilities of this business at 30 September 2008 are separately reported as held for sale in the Group balance sheet.

• Following a review of the Group's assessment of risks and rewards, there have been a number of changes in the reporting of revenues and profits across the Group's four business segments so that these more appropriately reflect the nature of the underlying businesses and align the risks and rewards of certain smaller businesses with those of the business segments in which they are now reported. The nature and effect of these changes is detailed in note 8(b). The Group does not intend to adopt IFRS 8 'Operating segments' during the current financial year but continues to consider its requirements and will review its segmental reporting as appropriate on the adoption of IFRS 8 in the year ending 31 March 2010. The first reported results under IFRS 8 will be those for the six months ending 30 September 2009 with comparative figures restated as appropriate.

• Following the acquisition of the initial 65% stake in Serasa in June 2007, provisional fair values for the net assets acquired and goodwill were included in the balance sheet at 30 September 2007. These fair values were finalised by 31 March 2008 and there have been no further revisions in the six months ended 30 September 2008. In accordance with the requirements of IFRS 3 'Business Combinations', the balance sheet at 30 September 2007 has been restated to reflect such items of significance and details of the effect on the balance sheet at that date are set out in note 23(b). There have been no material adjustments in respect of the Group's other acquisitions made prior to 30 September 2007 and accordingly the fair values and goodwill recognised at 30 September 2007 in respect of those acquisitions remain as previously reported. In addition, as indicated in the annual report and audited financial statements for the year ended 31 March 2008, the method of valuation of the put option associated with the minority interest in Serasa was updated after the initial recognition of the liability and this amended basis was used at 31 March 2008. The balance sheet at 30 September 2007 has been restated and this change in method resulted in an increase of US$125m to the initial liability recognised at the date of the written put on the acquisition of Serasa with a corresponding charge to equity. There was no change in the underlying liability between that date and 30 September 2007 but, as a consequence of currency translation movements, the increase in the liability recognised at 30 September 2007 was US$130m with the associated currency translation difference of US$5m charged in the Group statement of recognised income and expense.

• In the Group's financial statements for the year ended 31 March 2008, in accordance with IFRS 7 'Financial Instruments: Disclosures', gains and losses on fair value hedges were reported on a gross basis in the Group income statement. Comparative figures for the six months ended 30 September 2007 have now been restated and the effect is to increase financing income and financing expense for that period by US$11m. 

• At 31 March 2008, pension assets and liabilities were reported separately in the Group balance sheet where there is no right of offset. Comparative figures have been restated and the effect of this restatement is to increase non-current assets and non-current liabilities at 30 September 2007 by US$59m. 

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

4. Accounting policies and estimates

These unaudited condensed Group half-yearly financial statements have been prepared applying the same accounting policies, significant judgements 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 2008. These accounting policies were published within that document and are also available on the Company's website at www.experianplc.com/corporate/financial/reports.

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 judgement at the date of the 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 2008 and no change in estimate has had a material effect on the current period.

The Group has reviewed the valuation of its defined benefit pension scheme and in the light of changes in the key actuarial assumptions an adjustment, as required at 30 September 2008, is incorporated in these unaudited condensed Group half-yearly financial statements. The actuarial assumption with the most significant impact at 30 September 2008 is the discount rate and a rate of 7.3% (2007: 5.9%) has been used at that date. The discount rate used in the year ended 31 March 2008 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 2008 to require additional impairment testing.

The Group had no material or unusual related party or share-based payment transactions during the six months ended 30 September 2008. Disclosures in respect of the Group's related party transactions for the period are given in note 26 to these unaudited condensed Group half-yearly financial statements, and full details of share-based payment arrangements were provided in the Group's statutory financial statements for the year ended 31 March 2008.

  Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

5. Recent accounting developments

The following accounting standards, amendments and interpretations issued by the International Accounting Standards Board and the International Financial Reporting Interpretations Committee are effective for the Group’s accounting periods beginning on or after 1 April 2008 but have had no material effect on the results or financial position of the Group:

 

·         IFRIC 12 ‘Service Concession Arrangements’ *

·         IFRIC 14 ‘IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction’ *

 

Once adopted by the EU, the following accounting standards, amendments and interpretations issued by the International Accounting Standards Board and the International Financial Reporting Interpretations Committee will be effective for the Group’s accounting periods beginning on or after 1 April 2009:

 

·          Amendments to the following standards as a result of the May 2008 annual improvements process:

IFRS 5 ‘Non–current assets held for sale and discontinued operations’ *

IAS 16 ‘Property, plant and equipment’ *

IAS 19 ‘Employee benefits’ *

IAS 20 ‘Accounting for government grants and disclosure of government assistance’ *

IAS 29 ‘Financial reporting in hyperinflationary economies’ *

IAS 31 ‘Financial reporting of interests in joint ventures’ *

IAS 36 ‘Impairment of assets’ *

IAS 38 ‘Intangible assets’ *

IAS 40 ‘Investment property’ *

IAS 41 ‘Agriculture’ *

·          IFRS 1 ‘Amendment – First time adoption of IFRS’ *

·          IFRS 2 ‘Amendment – Share-Based payments’ *

·          IFRS 3 (Revised) ‘Business Combinations’ *

·          IFRS 8 ‘Operating segments’

·          IAS 1 ‘Amendment – Presentation of Financial Statements’ *

·          IAS 23 ‘Amendment - Borrowing Costs’ *

·          IAS 27 (Revised) ‘Consolidated and Separate Financial Statements’ *

·          IAS 28 ‘Amendment – Investment in Associates’ *

·          IAS 32 ‘Amendment - Financial Instruments: Presentation’ *

·          IAS 39 ‘Amendment – Financial Instruments: Recognition and Measurement’ *

·          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’ *

* These standards are still subject to adoption by the EU.

IFRS 3 (Revised) 'Business Combinations' proposes amendments to accounting for business combinations and the treatment of associated transaction costs and accordingly will impact the accounting treatment of future acquisitions in the financial statements. With that exception, these accounting standards, amendments and interpretations are not expected to have a material effect on the results and net assets of the Group. A number of the developments will lead to additional disclosures.

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

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 and taxation. 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 and taxation. It includes the Group's share of associates' pre-tax profit.

Benchmark earnings per share ('Benchmark EPS')

Benchmark EPS represents Benchmark PBT less attributable taxation 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, add depreciation/amortisation, less capital expenditure, less profit retained in associates. 

Net debt

Net debt is calculated as total debt less cash and cash equivalents. Total debt includes loans and borrowings (and the fair value of derivatives hedging loans and borrowings), overdrafts and obligations under finance leases. Interest payable on borrowings is excluded from net debt.

  Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

7. Segmental information - geographical segments

Six months ended 30 September 2008
	Continuing operations
	North  America US$m	Latin  America US$m		UK and  Ireland US$m		EMEA/ Asia Pacific US$m		Central Activities US$m	Total continuing US$m		Discontinued operations1 US$m	Total Group US$m
Revenue from external customers	1,037	263		505		212		-	2,017		174	2,191
Profit
Operating profit/(loss)	229	46		85		8		(37)	331		(4)	327
Net financing costs	-	-		-		-		(33)	(33)		-	(33)
Share of post-tax profits/(losses) of   associates	22	-		-		(2)		-	20		-	20
Profit/(loss) before tax	251	46		85		6		(70)	318		(4)	314
Group tax expense									(42)		-	(42)
Profit/(loss) for the financial period									276		(4)	272
Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	295	68		123		17		(27)	476
Net interest	-	-		-		-		(60)	(60)
Benchmark PBT	295	68		123		17		(87)	416
Exceptional items (note 10)	(11)	-		(15)		(3)		(4)	(33)
Amortisation of acquisition intangibles	(24)	(22)		(18)		(6)		-	(70)
Charges in respect of the demerger-related equity incentive plans	(8)	-		(5)		(2)		(6)	(21)
Financing fair value remeasurements	-	-		-		-		27	27
Tax expense on share of profit of associates	(1)	-		-		-		-	(1)
Profit/(loss) before tax	251	46		85		6		(70)	318
1        As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, discontinued operations comprise the Group's transaction processing activities in France. Additional information on discontinued operations, the results of which were formerly reported within the EMEA/Asia Pacific geographical segment, is shown in note 13.

Six months ended 30 September 2007
	Continuing operations
	North America US$m	Latin America US$m		UK and  Ireland  US$m		EMEA/ Asia Pacific US$m		Central Activities US$m		Total continuing US$m		Discontinued operations1 US$m	Total Group US$m
Revenue from external customers	1,020	102		499		168		-		1,789		158	1,947
Profit
Operating profit/(loss)	230	15		108		16		(34)		335		15	350
Net financing costs	-	-		-		-		(92)		(92)		-	(92)
Share of post-tax profits of associates	27	-		-		-		-		27		-	27
Profit/(loss) before tax	257	15		108		16		(126)		270		15	285
Group tax expense										(51)		(5)	(56)
Profit for the financial period										219		10	229
Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	290	24		132		20		(27)		439
Net interest	-	-		-		-		(58)		(58)
Benchmark PBT	290	24		132		20		(85)		381
Exceptional items (note 10)	-	-		-		-		(2)		(2)
Amortisation of acquisition intangibles	(23)	(9)		(16)		(2)		-		(50)
Charges in respect of the demerger-related equity incentive plans	(9)	-		(8)		(2)		(5)		(24)
Financing fair value remeasurements	-	-		-		-		(34)		(34)
Tax expense on share of profit of associates	(1)	-		-		-		-		(1)
Profit/(loss) before tax	257	15		108		16		(126)		270
1  As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, the segmental information for the six months ended 30 September 2007 has been restated to reflect the reclassification of the Group's transaction processing activities in France as a discontinued operation. Additional information on discontinued operations, the results of which were formerly reported within the EMEA/Asia Pacific geographical segment, is shown in note 13.

  Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008 

7. Segmental information - geographical segments (continued)

Year ended 31 March 2008
	Continuing operations
	North America US$m	Latin America US$m	UK and  Ireland US$m	EMEA/ Asia Pacific US$m			Central Activities US$m	Total continuing US$m		Discontinued operations1 US$m	Total Group US$m
Revenue from external customers	2,061	324	1,024	380			-	3,789		341	4,130
Profit
Operating profit/(loss)	473	44	155	29			(76)	625		29	654
Net financing costs	-	-	-	-			(154)	(154)		(1)	(155)
Share of post-tax profits of associates	49	-	-	1			-	50		-	50
Profit/(loss) before tax	522	44	155	30			(230)	521		28	549
Group tax expense								(91)		(6)	(97)
Profit for the financial year								430		22	452
Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	608	75	232	50			(57)	908
Net interest	-	-	-	-			(125)	(125)
Benchmark PBT	608	75	232	50			(182)	783
Exceptional items (note 10)	(12)	-	(28)	(9)			(6)	(55)
Amortisation of acquisition intangibles	(48)	(31)	(35)	(7)			-	(121)
Goodwill adjustment	(2)	-	-	-			-	(2)
Charges in respect of the demerger-related equity incentive plans	(18)	-	(14)	(4)			(13)	(49)
Financing fair value remeasurements	-	-	-	-			(29)	(29)
Tax expense on share of profit of associates	(6)	-	-	-			-	(6)
Profit/(loss) before tax	522	44	155	30			(230)	521
1         As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, the segmental information for the year ended 31 March 2008 has been restated to reflect the reclassification of the Group’s transaction processing activities in France as a discontinued operation. Additional information on discontinued operations, the results of which were formerly reported within the EMEA/Asia Pacific geographical segment, is shown in note 13.

  Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

8. Segmental information - business segments

a) Results by business segment

Six months ended 30 September 2008
	Continuing operations1
	Credit  Services  US$m	Decision Analytics US$m	Marketing  Services US$m	Interactive            US$m	Central  Activities US$m	Total continuing US$m	Discontinued operations2 US$m	Total Group US$m
Revenue from external customers	889	261	400	467	-	2,017	174	2,191
Profit
Operating profit/(loss)	226	72	4	81	(52)	331	(4)	327
Net financing costs	-	-	-	-	(33)	(33)	-	(33)
Share of post-tax profit of associates	20	-	-	-	-	20	-	20
Profit/(loss) before tax	246	72	4	81	(85)	318	(4)	314
Group tax expense						(42)	-	(42)
Profit/(loss) for the financial period						276	(4)	272
Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	286	82	35	100	(27)	476
Net interest	-	-	-	-	(60)	(60)
Benchmark PBT	286	82	35	100	(87)	416
Exceptional items (note 10)	(9)	(7)	(10)	(3)	(4)	(33)
Amortisation of acquisition intangibles	(30)	(3)	(21)	(16)	-	(70)
Charges in respect of the demerger-related equity incentive plans3	-	-	-	-	(21)	(21)
Financing fair value remeasurements	-	-	-	-	27	27
Tax expense on share of profit of associates	(1)	-	-	-	-	(1)
Profit/(loss) before tax	246	72	4	81	(85)	318
1         As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, there have been some reclassifications within the reporting of results for continuing operations. The effect on the results for the six months ended 30 September 2008 and the nature of these changes are detailed below. 2         As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, discontinued operations comprise the Group’s transaction processing activities in France. Additional information on discontinued operations, the results of which were formerly reported within the Credit Services business segment, is shown in note 13. 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 geographical segment.

Effect of reclassifications of reported results within the Group's continuing operations: 

	Credit  Services  US$m	Decision Analytics US$m	Marketing  Services US$m	Interactive US$m	Central  Activities US$m	Total continuing US$m
Revenue from external customers
On basis previously used	895	242	420	460	-	2,017
Reclassifications within continuing operations	(6)	19	(20)	7	-	-
As now reported	889	261	400	467	-	2,017
Operating profit/(loss)
On basis previously used	226	69	7	81	(52)	331
Reclassifications within continuing operations	-	3	(3)	-	-	-
As now reported	226	72	4	81	(52)	331

The above reclassifications comprise: 

- the Vente business, previously reported within Marketing Services, is now reported within Interactive;

- the Baker Hill business, previously reported within Credit Services, is now reported within Decision Analytics; and

- the Experian Payments business, previously reported within Marketing Services, is now reported within Credit Services.  

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

8. Segmental information - business segments (continued)  

a) Results by business segment (continued) 

Six months ended 30 September 2007
	Continuing operations1
	Credit  Services  US$m	Decision Analytics US$m	Marketing  Services US$m	Interactive US$m	Central  Activities US$m	Total continuing US$m	Discontinued operations2 US$m	Total Group US$m
Revenue from external customers	748	237	376	428	-	1,789	158	1,947
Profit
Operating profit/(loss)	223	79	17	69	(53)	335	15	350
Net financing costs	-	-	-	-	(92)	(92)	-	(92)
Share of post-tax profit of associates	27	-	-	-	-	27	-	27
Profit/(loss) before tax	250	79	17	69	(145)	270	15	285
Group tax expense						(51)	(5)	(56)
Profit for the financial period						219	10	229
Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	267	80	33	86	(27)	439
Net interest	-	-	-	-	(58)	(58)
Benchmark PBT	267	80	33	86	(85)	381
Exceptional items (note 10)	-	-	-	-	(2)	(2)
Amortisation of acquisition intangibles	(16)	(1)	(16)	(17)	-	(50)
Charges in respect of the demerger-related equity incentive plans3	-	-	-	-	(24)	(24)
Financing fair value remeasurements	-	-	-	-	(34)	(34)
Tax expense on share of profit of associates	(1)	-	-	-	-	(1)
Profit/(loss) before tax	250	79	17	69	(145)	270
1         As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, there have been some reclassifications within the reporting of results for continuing operations. These are detailed in note 8(b) below. 2         As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, the segmental information for the six months ended 30 September 2007 has been restated to reflect the reclassification of the Group’s transaction processing activities in France as a discontinued operation. Additional information on discontinued operations, the results of which were formerly reported within the Credit Services business segment, is shown in note 13. 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 geographical segment.

  Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

8. Segmental information - business segments (continued)

a) Results by business segment 

Year ended 31 March 2008
	Continuing operations1
	Credit Services US$m	Decision Analytics US$m	Marketing Services US$					Interactive US$m		Central Activities US$m		Total continuing US$m		Discontinued operations2 US$m	Total Group US$m
Revenue from external customers	1,619	505	785					880		-		3,789		341	4,130
Profit
Operating profit/(loss)	430	143	8					156		(112)		625		29	654
Net financing costs	-	-	-					-		(154)		(154)		(1)	(155)
Share of post-tax profit of associates	50	-	-					-		-		50		-	50
Profit/(loss) before tax	480	143	8					156		(266)		521		28	549
Group tax expense												(91)		(6)	(97)
Profit for the financial period												430		22	452
Reconciliation from EBIT to profit/(loss) before tax - continuing operations
EBIT	544	160	69					192		(57)		908
Net interest	-	-	-					-		(125)		(125)
Benchmark PBT	544	160	69					192		(182)		783
Exceptional items (note 10)	(13)	(10)	(22)					(4)		(6)		(55)
Amortisation of acquisition intangibles	(45)	(7)	(37)					(32)		-		(121)
Goodwill adjustment	-	-	(2)					-		-		(2)
Charges in respect of the demerger-related equity incentive plans3	-	-	-					-		(49)		(49)
Financing fair value remeasurements	-	-	-					-		(29)		(29)
Tax expense on share of profit of associates	(6)	-	-					-		-		(6)
Profit/(loss) before tax	480	143	8					156		(266)		521
1        As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, there have been some reclassifications within the reporting of results for continuing operations. These are detailed in note 8(b) below. 2        As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, the segmental information for the year ended 31 March 2008 has been restated to reflect the reclassification of the Group’s transaction processing activities in France as a discontinued operation. Additional information on discontinued operations, the results of which were formerly reported within the Credit Services business segment, is shown in note 13. 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 geographical segment.

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

8. Segmental information - business segments (continued)

b) Restatement of comparative information

As indicated in note 3, there have been a number of changes in the reporting of revenues and profits across the Group's four business segments. These changes comprise the reclassification of the Group's transaction processing activities in France as a discontinued operation and three reclassifications of reported results within the Group's continuing operations, details of which are given on page 34. Additional information on discontinued operations is shown in note 13.

The effect of these changes on the comparative information reported by business segment is as follows:

Six months ended 30 September 2007
	Continuing operations
	Credit  Services  US$m	Decision Analytics US$m	Marketing  Services US$m	Interactive US$m	Central  Activities US$m	Total continuing US$m	Discontinued operations US$m	Total Group US$m
Revenue from external customers
As previously reported	913	219	397	418	-	1,947	-	1,947
Reclassified as discontinued	(158)	-	-	-	-	(158)	158	-
Reclassifications within continuing operations	(7)	18	(21)	10	-	-	-	-
As restated	748	237	376	428	-	1,789	158	1,947
Operating profit/(loss)
As previously reported	237	77	22	67	(53)	350	-	350
Reclassified as discontinued	(15)	-	-	-	-	(15)	15	-
Reclassifications within continuing operations	1	2	(5)	2	-	-	-	-
As restated	223	79	17	69	(53)	335	15	350

Year ended 31 March 2008
	Continuing operations
	Credit  Services  US$m	Decision Analytics US$m	Marketing  Services US$m	Interactive US$m	Central  Activities US$m	Total continuing US$m	Discontinued operations US$m	Total Group US$m
Revenue from external customers
As previously reported	1,972	469	830	859	-	4,130	-	4,130
Reclassified as discontinued	(341)	-	-	-	-	(341)	341	-
Reclassifications within continuing operations	(12)	36	(45)	21	-	-	-	-
As restated	1,619	505	785	880	-	3,789	341	4,130
Operating profit/(loss)
As previously reported	459	137	17	153	(112)	654	-	654
Reclassified as discontinued	(29)	-	-	-	-	(29)	29	-
Reclassifications within continuing operations	-	6	(9)	3	-	-	-	-
As restated	430	143	8	156	(112)	625	29	654

9. Foreign currency

The principal exchange rates used were as follows:

	Average				Closing
	Six months ended 30 September		Year ended 31 March		30 September		31 March
	2008	2007	2008		2008	2007	2008
Sterling : US Dollar	1.93	1.99	2.01		1.79	2.04	1.99
US Dollar : Brazilian Real	1.68	1.98	1.86		1.92	1.84	1.75
Euro : US Dollar	1.53	1.35	1.42		1.41	1.42	1.58

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 and the income statement is translated into US Dollars at average rates of exchange (unless this average is not a reasonable approximation 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 2008

10. Exceptional items and other non-GAAP measures

	Six months ended 30 September		Year ended 31 March
	2008 US$m	2007 US$m	2008 (Restated) (Note 3) US$m
Exceptional items
Restructuring costs	30	-	52
Costs incurred relating to the demerger of Experian and Home Retail Group	-	2	6
Closure of UK Account Processing	-	-	(2)
Losses on disposal of businesses	3	-	2
Gain arising in associate on the partial disposal of its subsidiary	-	-	(3)
Total exceptional items	33	2	55
Other non-GAAP measures
Amortisation of acquisition intangibles	70	50	121
Goodwill adjustment	-	-	2
Charges in respect of the demerger-related equity incentive plans	21	24	49
Financing fair value remeasurements	(27)	34	29
Total other non-GAAP measures	64	108	201

Exceptional items and other non-GAAP measures are in respect of continuing operations.

Exceptional items 

Expenditure of US$30m arose in the period in connection with the Group's programme of cost efficiency measures. Of this US$13m related to redundancy, US$5m related to offshoring activities and US$12m related to other restructuring and infrastructure consolidation costs. The prior year comparative for the year ended 31 March 2008 has been reduced by US$8m, reflecting the costs arising in the discontinued transaction processing business in France. 

Costs relating to the demerger of Experian and Home Retail Group comprise legal and professional fees in respect of the transaction, together with costs in connection with the cessation of the corporate functions of GUS plc.

In April 2006, Experian announced the phased withdrawal from large scale credit card and loan account processing in the UK. The anticipated cost of withdrawal was charged in the year ended 31 March 2007 and during the year ended 31 March 2008 an exceptional credit arose following the successful transfer of certain employees and obligations of this business to a third party.

In the year ended 31 March 2008, First American Real Estate Solutions LLC ('FARES') recognised gains in respect of a number of disposals and the Group recognised US$3m, its 20% share of such gains.

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 judgements about their value and economic life.

In the year ended 31 March 2008, a goodwill adjustment of US$2m 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$2m. 

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 2008

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

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
	2008 US$m	2007 (Restated) (Note 3) US$m	2008 (Restated) (Note 3) US$m
Interest income:
Expected return on pension scheme assets	40	37	76
Other interest income	14	21	20
Interest income	54	58	96
Financing fair value gains:
Movement in fair value of Serasa put option	7	-	69
Other financing fair value gains	38	19	41
Financing fair value gains	45	19	110
Finance income	99	77	206
Interest expense:
Interest expense on pension scheme liabilities	30	27	53
Other interest expense	84	89	168
Interest expense	114	116	221
Financing fair value losses	18	53	139
Finance expense	132	169	360
Net financing costs	33	92	154

12. Group tax expense

The effective rate of tax is 13.2% (2007: 19.0% as restated (see note 3)) based on the profit before tax for the six months ended 30 September 2008 of US$318m (2007: US$270m). 

The effective rate of tax based on Benchmark PBT of US$416m (2007: US$381m) and the associated tax charge of US$87m (2007: US$86m), excluding the effect of a one-off corporation tax credit of US$20m (2007: US$nil) in respect of prior periods, is 20.9% (2007: 22.7% as restated (see note 3)). The one-off corporation tax credit has been excluded from the calculation of the effective rate of tax based on Benchmark PBT as it relates to arrangements involving entities no longer part of the Group. It is anticipated that the equivalent rate of tax on benchmark earnings for the year ending 31 March 2009 (excluding the US$20m tax credit) will be approximately 22% (2008: 23.4% as restated (see note 3)).

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
	2008 US$m	2007 US$m	2008 US$m
Group tax expense	42	51	91
Add: one-off corporation tax credit	20	-	-
Add: tax relief on exceptional items	-	7	10
Add: tax relief on other non-GAAP measures	24	27	76
Tax expense on share of profit of associates	1	1	6
Tax on Benchmark PBT	87	86	183

The standard rate of corporation tax for the Group's United Kingdom businesses changed to 28% with effect from 1 April 2008.

  Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

13. Discontinued operations 

As indicated in note 3, an announcement was made on 15 October 2008 of an agreement to dispose of the Group's transaction processing activities in France. The transaction was completed on 31 October 2008. As a consequence of this agreement, the results and cash flows of that business for the six months ended 30 September 2007 and the year ended 31 March 2008 have been reclassified as discontinued, and the assets and liabilities at 30 September 2008 are separately reported as held for sale in the Group balance sheet.

Results for discontinued operations

	Six months ended 30 September				Year ended 31 March
	2008 US$m		2007 US$m		2008 US$m
Revenue	174		158		341
Cost of sales	(127)		(110)		(240)
Gross profit	47		48		101
Distribution costs	(5)		(7)		(14)
Administrative expenses	(42)		(26)		(58)
Operating expenses	(47)		(33)		(72)
Operating profit	-		15		29
Net financing expense	-		-		(1)
Profit before tax of discontinued operations	-		15		28
Tax charge in respect of pre-tax profit	-		(5)		(6)
Profit after tax of discontinued operations	-		10		22
Loss on disposal of discontinued operations:
Costs in respect of disposal	(4)		-		-
Loss on disposal	(4)		-		-
(Loss)/profit for the financial period from discontinued operations	(4)		10		22

Cash flows attributable to discontinued operations

	Six months ended 30 September				Year ended 31 March
	2008 US$m		2007 US$m		2008 US$m
From operating activities	(15)		2		18
From investing activities	(9)		(11)		(23)
Exchange and other movements	1		1		2
Net decrease in cash and cash equivalents in discontinued operations	(23)		(8)		(3)

Assets and liabilities classified as held for sale 

	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 2008

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 schemes. The earnings figures used in the calculations are unchanged for diluted earnings per share.

	Six months ended    30 September		Year ended  31 March
	2008	2007	2008
		(Restated)	(Restated)
		(Note 3)	(Note 3)
Basic earnings per share:	US cents	US cents	US cents
Continuing and discontinued operations	25.5	22.2	43.3
Include/(exclude): discontinued operations	0.4	(1.0)	(2.2)
Continuing operations	25.9	21.2	41.1
Add back of exceptional and other non-GAAP measures, net of tax	4.8	7.3	16.4
Benchmark earnings per share from continuing operations (non-GAAP measure)	30.7	28.5	57.5
Diluted earnings per share:
Continuing and discontinued operations	25.2	21.9	42.7
Include/(exclude): discontinued operations	0.4	(0.9)	(2.1)
Continuing operations	25.6	21.0	40.6
Add back of exceptional and other non-GAAP measures, net of tax	4.8	7.1	16.2
Benchmark diluted earnings per share from continuing operations (non-GAAP measure)	30.4	28.1	56.8
	Six months ended 30 September		Year ended  31 March
	2008	2007	2008
		(Restated)	(Restated)
		(Note 3)	(Note 3)
Earnings:	US$m	US$m	US$m
Continuing and discontinued operations	258	224	437
Include/(exclude): discontinued operations	4	(10)	(22)
Continuing operations	262	214	415
Add back of exceptional and other non-GAAP measures, net of tax	48	73	166
Benchmark earnings (non-GAAP measure)	310	287	581
	Six months ended 30 September		Year ended  31 March
	2008	2007	2008
Earnings attributable to minority interests:	US$m	US$m	US$m
Continuing and discontinued operations	14	5	15
Add: amortisation of acquisition intangibles attributable to the minority	5	3	6
Benchmark earnings attributable to minority interests (non-GAAP measure)	19	8	21
	Six months ended 30 September		Year ended  31 March
	2008	2007	2008
Weighted average number of ordinary shares in issue:	m	m	m
Weighted average number of ordinary shares in issue during the period	1,011.4	1,007.7	1,008.9
Dilutive effect of share incentive awards	11.0	13.8	13.4
Diluted weighted average number of shares in issue during the period	1,022.4	1,021.5	1,022.3

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

15. Dividends

	Six months ended 30 September				Year ended 31 March
	2008	2008	2007	2007	2008	2008
	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	-	-	-	-	6.5	66
Second interim	12.0	121	11.5	115	11.5	116
Ordinary dividends paid on equity shares	12.0	121	11.5	115	18.0	182
First interim dividend per ordinary share (announced)	6.75	68	6.5	66
Full year dividend for the year ended 31 March 2008					18.5	187

A first interim dividend of 6.75 US cents per ordinary share will be paid on 30 January 2009 to shareholders on the register at the close of business on 5 January 2009 and is not included as a liability in these financial statements. 

Unless shareholders elect by 5 January 2009 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 9 January 2009. 

Pursuant to the Income Access Share arrangements put in place as part of the demerger, shareholders in the Company are able to 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 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 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.

16. Capital expenditure and capital commitments

During the six months ended 30 September 2008 the Group incurred capital expenditure of US$155m, including US$9m in respect of discontinued operations (2007: US$140m, including US$11m in respect of discontinued operations). In the year ended 31 March 2008, capital expenditure was US$344m, including US$23m in respect of discontinued operations.

At 30 September 2008, the Group had capital commitments in respect of property, plant and equipment and intangible assets and for which contracts had been placed of US$10m (2007: US$11m). At 31 March 2008, there were US$15m such commitments.

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

17. Retirement benefit assets/obligations

a) Defined benefit schemes

Amounts recognised in the Group balance sheet
	30 September		31 March
	2008 US$m	2007 US$m	2008 US$m
Retirement benefit assets:
Market value of funded schemes' assets	856	1,157	1,045
Present value of funded schemes' liabilities	(747)	(947)	(863)
Retirement benefit assets - surplus in the funded schemes	109	210	182
Retirement benefit obligations:
Present value of unfunded pension arrangements	34	39	35
Liability for post-retirement healthcare	13	20	15
Retirement benefit obligations	47	59	50
Net pension asset	62	151	132
The Group's retirement benefit assets/obligations are denominated primarily in Sterling.
Movements during the period in the net pension asset
	30 September		31 March
	2008 US$m	2007 US$m	2008 US$m
Net pension asset at 1 April	132	85	85
Differences on exchange	(8)	7	-
Amounts recognised in Group income statement	1	(2)	11
Actuarial (losses)/gains recognised in Group statement of recognised income and expense	(72)	51	15
Contributions paid by the Group	9	10	21
Net pension asset at balance sheet date	62	151	132
Amounts recognised in Group income statement
	Six months ended 30 September		Year ended 31 March
	2008 US$m	2007 US$m	2008 US$m
Administrative costs1	9	12	12
Net financing income	(10)	(10)	(23)
Total (credit)/charge to Group income statement	(1)	2	(11)

               1  Administrative costs for the year ended 31 March 2008 are stated after exceptional income of US$5m. 

Actuarial assumptions
	Six months ended 30 September		Year ended 31 March
	2008 %	2007 %	2008 %
Rate of inflation	3.7	3.3	3.6
Rate of increase for salaries	5.5	5.1	5.4
Rate of increase of pensions in payment and deferred pensions	3.7	3.3	3.6
Rate of increase in medical costs	6.5	6.5	6.5
Discount rate	7.3	5.9	6.9

The mortality assumptions used at 30 September 2008 remain unchanged from those used at 31 March 2008.

b) Defined contribution schemes

The assets of such schemes are held separately from those of the Group in independently administered funds.

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

18. Notes to the Group cash flow statement

	Six months ended 30 September		Year ended 31 March
	2008 US$m	2007 (Restated) (Note 3) US$m	2008 (Restated) (Note 3) US$m
a) Cash generated from operations
Operating profit	331	335	625
Loss on sale of property, plant and equipment	4	-	3
Depreciation and amortisation	213	171	406
Goodwill adjustment	-	-	2
Charge in respect of equity incentive plans	36	38	66
Change in working capital (note 18(b))	(93)	(119)	23
Exceptional items included in working capital	(15)	(16)	9
Cash generated from operations	476	409	1,134
b) Change in working capital
Increase in inventories	(1)	(1)	-
Decrease/(increase) in receivables	49	(26)	(51)
(Decrease)/increase in payables	(141)	(91)	79
Difference between pension contributions paid and amounts recognised in Group income statement	-	(1)	(5)
Change in working capital	(93)	(119)	23
c) Purchase of other intangible assets
Databases	81	62	148
Internally generated software	22	17	42
Internal use software	9	7	32
Purchase of other intangible assets	112	86	222
d) Cash outflow in respect of exceptional items
Total exceptional items (note 10)	33	2	55
Working capital movements	15	16	(9)
Assets write-offs	(2)	-	(12)
Gains in associates	-	-	3
Cash outflow in respect of exceptional items	46	18	37

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

	Six months ended 30 September		Year ended 31 March
	2008 US$m	2007 (Restated) (Note 3) US$m	2008 (Restated) (Note 3) US$m
Cash generated from operations (note 18(a))	476	409	1,134
Purchase of property, plant and equipment	(34)	(43)	(99)
Purchase of other intangible assets (note 18(c))	(112)	(86)	(222)
Dividends received from associates	20	23	36
Net cash outflow from exceptional items (note 18(d))	46	18	37
Operating cash flow	396	321	886

Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

20. Analysis of net debt (non-GAAP measure)

	30 September		31 March
	2008 US$m	2007 US$m	2008 US$m
Cash and cash equivalents (net of overdrafts)	168	156	147
Derivatives hedging loans and borrowings	(36)	(45)	(43)
Debt due within one year	(551)	(30)	(29)
Finance leases	(12)	(18)	(16)
Debt due after more than one year	(2,185)	(3,090)	(2,758)
Net debt at the end of the financial period	(2,616)	(3,027)	(2,699)
Continuing operations	(2,610)	(3,039)	(2,701)
Discontinued operations	(6)	12	2
Net debt at the end of the financial period	(2,616)	(3,027)	(2,699)
Net debt by balance sheet caption:
Cash and cash equivalents	174	192	151
Loans and borrowings (current)	(562)	(72)	(39)
Loans and borrowings (non-current)	(2,221)	(3,142)	(2,811)
Liabilities of discontinued operations classified as held for sale (note 13)	(6)	-	-
Net debt by balance sheet caption	(2,615)	(3,022)	(2,699)
exclude: interest payable on borrowings	35	40	43
include: derivatives hedging loans and borrowings	(36)	(45)	(43)
Net debt at the end of the financial period	(2,616)	(3,027)	(2,699)

At 30 September 2008, the Group had committed borrowing facilities of US$2,530m (2007: US$2,450m) which expire more than two years after the balance sheet date, of which US$934m (2007: US$719m) was undrawn. At 31 March 2008, the amount undrawn under these facilities was US$1,121m.

During the six months ended 30 September 2008, 6.375% Eurobonds 2009 with a par value of £42m were redeemed. The balance of these Eurobonds, which was £308m (US$553m) at 30 September 2008, falls due for repayment in July 2009. 

During the six months ended 30 September 2007, the whole of the outstanding balance of the 4.125% Euronotes 2007 was repaid on their maturity at the par value of €548m. 

21. Share capital and share premium

	Number of  shares m	Share  capital    US$m	Share premium US$m
At 1 April 2007	1,022.3	102	1,435
Employee share option schemes - proceeds from shares issued	0.9	-	6
At 30 September 2007	1,023.2	102	1,441
Employee share option schemes - proceeds from shares issued	0.2	-	1
At 31 March 2008	1,023.4	102	1,442
Employee share option schemes - proceeds from shares issued	1.2	-	7
At 30 September 2008	1,024.6	102	1,449

  Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

22. Group reconciliation of movements in total equity

	Six months ended 30 September		Year ended 31 March
	2008 US$m	2007 (Restated) (Note 3) US$m	2008 US$m
Total equity at 1 April	2,117	2,107	2,107
Profit for the financial period	272	229	452
Net (expense)/income recognised directly in equity for the financial period	(203)	108	87
Employee share option schemes:
- value of employee services	36	41	65
- proceeds from shares issued	7	6	7
Exercise of share options	5	25	34
Liability on put option over minority interests	-	(591)	(591)
Minority interest arising on business combinations	-	146	155
Decrease in minority interests arising due to corporate transactions	-	(1)	-
Purchase of own shares by employee trusts	-	(6)	(6)
Equity dividends paid during the period (note 15)	(121)	(115)	(182)
Dividends paid to minority shareholders	(10)	-	(11)
Total equity at the end of the financial period	2,103	1,949	2,117
Attributable to:
Equity shareholders in the parent company	1,955	1,791	1,956
Minority interests	148	158	161
Total equity at the end of the financial period	2,103	1,949	2,117

  Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

23. Acquisitions

a) Acquisition accounting in the period

During the six months ended 30 September 2008 the Group made one acquisition, in connection with which provisional goodwill of US$7m was recognised based on the fair value of the net assets acquired of US$3m. Had this acquisition been completed on 1 April 2008, there would have been no material impact on the results of the Group for the period. Further goodwill of US$19m was recognised in connection with adjustments to contingent consideration in respect of acquisitions made in previous years.

Deferred consideration is primarily payable in cash up to three years after the date of acquisition and in some cases is contingent on the businesses acquired achieving revenue and profit targets. The deferred consideration settled during the period on acquisitions made in previous years was US$42m.

There have been no material gains, losses, error corrections or other adjustments recognised in the six months ended 30 September 2008 that relate to acquisitions that were effected in the current or previous years.

b) Restatement of comparative information

As indicated in note 3, following the acquisition of the initial 65% stake in Serasa in June 2007, provisional fair values for the net assets acquired and goodwill were included in the balance sheet at 30 September 2007. These fair values were finalised by 31 March 2008 and, in accordance with the requirements of IFRS 3 'Business Combinations', the balance sheet at 30 September 2007 has been restated to reflect such items of significance. The reconciliation of the amounts now included within the Group balance sheet at 30 September 2007 is as follows:

	Fair value as reported US$m	Additional fair value adjustments US$m	Fair value as restated US$m
Intangible assets - finalisation of valuation of acquisition intangibles	508	23	531
Property, plant and equipment - finalisation of property valuation	61	3	64
Deferred tax assets	14	11	25
Provisions - recognition of additional contingent liabilities	(23)	(31)	(54)
Deferred tax liabilities	(171)	92	(79)
	389	98	487
The additional fair value adjustments have given rise to further restatements as follows:
Reduction in goodwill recognised		(88)
Increase in debtors in connection with deferred consideration receivable		19
Recognition of additional minority interest		(29)
		(98)

24. Contingencies 

As was indicated in the annual report and financial statements for the year ended 31 March 2008, 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 material 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.

  Notes to the unaudited condensed Group half-yearly financial statements

for the six months ended 30 September 2008

25. Seasonality

The Group's revenue is subject to certain seasonal fluctuations, as described in the commentary on page 18.

26. Related parties

The Group's related parties are its associates and key management personnel.

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 First Advantage Corporation, of US$11m in the six months ended 30 September 2008 (2007: US$14m) and US$28m in the year ended 31 March 2008. There were no other significant related party transactions.

Home Retail Group is no longer a related party of the Group and there has been no charge in the period in respect of services provided under the terms of the demerger agreement. At 30 September 2007 and 31 March 2008, there was an amount owed by the Group to Home Retail Group of US$20m in respect of their corporation taxation liabilities at demerger and this balance has now been settled. Other transactions with Home Retail Group are made on normal commercial terms and conditions available to third parties.

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 2008 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 European Union, 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 2008. 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

Sean FitzPatrick

Director

18 November 2008  

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 2008, which comprise the Group income statement, the Group balance sheet, the Group statement of recognised income and expense, 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 2008 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

18 November 2008

Notes:

• 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.

• 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 Registrar, 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 shareholders to use their cash dividends to purchase Experian shares. 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 2009 to be paid on 30 January 2009, should return a completed and signed DRIP mandate form to be received by the Registrars, by no later than 5 January 2009. For further details, please contact the 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 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 Corporate 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 2WD, 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 The 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

The Bank of New York Mellon

PO Box 11248

Church Street Station

New York

NY 10286 - 1258

United States

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

Financial calendar
First interim dividend record date	5 January 2009
Interim management statement, third quarter	15 January 2009
First interim dividend to be paid	30 January 2009
Trading update, second half	16 April 2009
Preliminary announcement of results	20 May 2009
Interim management statement, first quarter	13 July 2009
Annual General Meeting	15 July 2009
Contacts
Corporate headquarters:	Registered office:
Newenham House	22 Grenville Street
Northern Cross	St Helier
Malahide Road	Jersey JE4 8PX
Dublin 17	Registered no. 93905
Ireland
T: + 353 (0) 1 846 9100
F: + 353 (0) 1 846 9150

Registrars:

Experian Shareholder Services

Equiniti (Jersey) Limited

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)

 

END

 

 

IR GBBDBXGBGGIC