Key performance indicators

A strong performance

We have made good progress in executing our strategy and achieved a strong performance. We measure our progress through a range of key performance indicators.

Why is this important? It is a measure of our ability to provide innovative propositions and services for clients and consumers, and to extend these to new industries and across many regions.

Aim: To consistently achieve mid- to high single-digit organic revenue growth.

Analysis: Organic revenue grew 12%, with the main contributors being North America 13%, Latin America 17%, and the UK and Ireland 11%, with strong contributions from both B2B and Consumer Services.

See page 130 – Revenue performance is linked to directors’ remuneration

For a reconciliation of revenue from ongoing activities, including disclosure of organic and acquisition revenue, from the year 31 March 2021 to 31 March 2022 see Note 9(ii) to the Group financial statements.

Why is this important? It measures how well we turn our revenue into profits, which allow us to reinvest for future growth and to provide returns for shareholders.

Aim: To operate our business efficiently and cost effectively with stable EBIT margins.

Analysis: We continued to invest in marketing to support Consumer Services momentum, new product innovation, new business development and our technology modernisation programmes. Overall, for the Group, Benchmark EBIT was US$1,640m, up 19% at both constant and actual exchange rates . Benchmark EBIT margin was 26.2%, up 60 basis points before the impact of foreign exchange rates, and up 40 basis points overall.

See page 130 – Benchmark EBIT growth is a directors’ remuneration measure

1 From ongoing activities.

2 Results for FY21 are re-presented for the reclassification to exited business activities of certain B2B businesses.

3 Restated for IFRS 15.

Why is this important? It measures how effectively we have deployed our resources and how efficiently we apply our capital.

Aim: To generate good returns on the investments we make and create long-term value for shareholders.

Analysis: This year, ROCE was 15.7%, up 80 basis points on the prior year, reflecting revenue growth and our continued focus on operating efficiency.

See page 130 – Adjusted ROCE is a directors’ remuneration measure

1 Restated: see note 6 to the Group financial statements.

2 Restated for IFRS 15.

Why is this important? EPS measures our success at generating surpluses and value for our shareholders.

Aim: To achieve earnings growth for shareholders while balancing reinvestment to secure future growth opportunities.

Analysis: Benchmark EBIT from ongoing activities was up 19% at constant exchange rates, due to our organic revenue growth performance. Our Benchmark net finance costs decreased to US$110m, and Benchmark tax rate was down 20 basis points at 25.7%. With weighted average numbers of shares at 914m, this resulted in Benchmark earnings per share of 124.5 US cents. This was up 21% on the prior year at both actual and constant exchange rates.

See page 130 – Benchmark EPS growth is linked to directors’ remuneration

1 Restated for IFRS 15.

Why is this important? Cash flow gives us the capacity to operate, and reinvest. The efficiency with which we convert profits into cash flow is measured by cash flow conversion.

Aim: To convert at least 90% of Benchmark EBIT into Benchmark operating cash flow.

Analysis: Cash flow performance was strong this year with Benchmark operating cash flow of US$1,800m, up US$324m on last year. The increase is due to the mix of growth, strong control of working capital and some phasing.

See page 130 – Cumulative Benchmark operating cash flow is a directors’ remuneration measure

1 Restated for IFRS 15.

Why is this important? An engaged and motivated workforce helps us develop exciting new propositions and find new opportunities, while appropriately managing risks.

Aim: To ensure Experian is a great place to work and that we can attract and retain the best people.

Analysis:

  • Our Great Place to Work survey was conducted globally for the first time this year with close to 11,000 employees taking part. We achieved an engagement score of 78%.
  • Experian was certified as a Great Place to Work in 20 countries, with over 90% of participating employees agreeing that people are treated fairly regardless of their social and economic status, sexual orientation, race and gender, and 86% are proud to tell others they work for Experian.
  • Regular pulse surveys were conducted throughout the year and on average across all pulse surveys, 85% of employees responded favourably to: "I am receiving the right amount of support from my manager at this time"; 88% of employees responded favourably to: "I am able to be productive in my current work set-up"; 87% of employees responded positively to: "I feel I am able to be myself at work".

We are further encouraged by an improved Glassdoor rating for a sixth year in a row, to 4.3 out of 5. Our people continue to demonstrate our Experian Way behaviour, resulting in our handing out 14,348 employee-nominated recognition awards in FY22.

See the Inspiring and supporting our people section on pages 56 to 61 for further information on how we've been looking after and listening to our people this year

Carbon emissions

Why is this important? It measures the carbon emissions we generate, as we have a responsibility as a business to reduce our carbon footprint and respond to the climate change emergency.

Aim: To be carbon neutral in our own operations by 20301.

Analysis: To become carbon neutral we need to achieve our validated science-based carbon reduction target and, once the targeted levels of carbon reduction have been achieved, we must carbon offset remaining emissions within our target boundary.

Science-based target (validated):

  • Scope 1 and 2 (1.5°C scenario): Reduce absolute Scope 1 and 2 emissions by 50% by 2030 (from 2019)
  • Scope 3 (2°C scenario): Reduce absolute Scope 3 emissions from Purchased Goods and Services, Business Travel and Fuel-and-energy-related activities by 15% by 2030 (from 2019)

This year, our total Scope 1 and 2 emissions have reduced by a further 1%. The reduction and consolidation of office space as we’ve moved to more flexible working patterns has reduced our electricity consumption (Scope 2), more than offsetting the impact of increased commuting in company cars (Scope 1) as employees return to the office. So far, we have achieved a 44% reduction in our Scope 1 and 2 market-based emissions since 2019, against our target of a 50% reduction.

The emissions included within our Scope 3 science-based target (Purchased Goods and Services; Business Travel; and Fuel-and-other energy-related activities) are 2% higher in 2022 than our 2019 baseline.

This has largely been driven by our Purchased Goods and Services emissions, reflecting growth in the business. As our science-based target is an absolute target, we are committed to cutting total emissions despite the business growing. We are engaging with our suppliers to understand how they can reduce their emissions, and if required, will switch to suppliers that can better support our target. As this supplier engagement process takes time, we expect some increases in emissions before our initiatives begin to deliver reductions. However, we remain committed to delivering a 15% reduction in these Scope 3 emissions by 2030.

Overall, we have reduced our total carbon emission intensity2 by 19% since 2019, now at 87.4 tonnes CO2e3 per US$1m revenue. This shows that we’re able to reduce our relative carbon emissions while the business continues to grow.

Year2022202120202019
Carbon intensity – total emissions per US$1m revenue (tonnes CO2e)87.487.6100.1107.9
Scope 1 & 2 market-based emissions (000s tonnes CO2e)16.416.525.129.2
Total Scope 3 emissions
(000s tonnes CO2e)		532.9453.9493.4495.3

See the ‘Protecting the environment’ section on pages 64 to 71 for further information on how we are taking action on climate change

1 All references in this Annual Report to ‘carbon neutral in our own operations by 2030’ includes all Scope 1 and 2 emissions, plus within Scope 3 the categories of ‘Purchased Goods and Services’, ‘Business Travel’ and ‘Fuel-and-energy-related activities’ (which represent 83% of our baseline emissions in Scope 3). This is aligned with the emissions covered by our science-based target approved by the SBTi. Refer to pages 64-71 for further information.

2 Carbon intensity: CO2e emission per US$1m of revenue.

3 CO2e = CO2 equivalent.

See note 6 to the Group financial statements for definitions of these non-GAAP measures: organic revenue growth, Benchmark EBIT, Benchmark EBIT margin, ROCE, Benchmark earnings per share, and Benchmark operating cash flow and cash flow conversion.

 

 

 

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