Margins and Paddings Update

Charles Butterworth talks about the acquisition of leading South African companies Compuscan and Scoresharp Today we announced the completion of our acquisition of Compuscan and Scoresharp in South Africa. This exciting moment creates a single, united Experian organisation that brings together the best of all we offer, not only for South Africa, but the wider African continent. Compuscan’s agile approach has driven its rapid expansion into six Sub-Saharan African countries, alongside emerging business in Australia and the Philippines. Combining Experian’s proven digital strategy with Compuscan and Scoresharp’s cost-effective operating model gives us an excellent foundation for Experian to expand into Africa. This is a commitment we’re serious about, and we’ve made the public commitment to spending at least R120 million on technological enhancements as part of establishing South Africa as an investment hub. For our clients and partners, this acquisition will see the combined organisation bringing new innovations to market, faster and at scale, enabled by our shared bureau data. Delivering additional resources for credit bureau information, decision analytics, marketing services, loyalty & rewards, and training. Allowing us to be more agile, more flexible, and to respond faster to the need of all the organisations and the people we serve. More importantly, this is a chance for us to drive financial inclusion across the region. It’s our intention to use this acquisition to accelerate our financial inclusion goals, bringing many more people into the credit economy and helping us create a better tomorrow for millions. I am delighted to be welcoming Compuscan and Scoresharp to the Experian family, and I am excited about the opportunities that lie ahead as we drive towards our goals of greater financial inclusion and better data management across South Africa and beyond.

Technology revolutionizes the way businesses operate, but implementing change within a company is often challenging. Company-wide support is vital to successfully undergo a transformation. At Experian, in 2015, we underwent the task of moving from a traditional computing architecture to the cloud. This is a monumental transformation with our massive digital infrastructure and significant global reach, but it enables us to provide customers with real-time access to data. This journey is featured in the new book, Cascades: How to Create a Movement that Drives Transformational Change, by Greg Satell. Last year Satell’s first book shone a light on Experian’s innovation story. In his latest book he talks about the power of cascades – small groups, united with a common purpose – to drive transformational change within businesses. He gives examples of how some companies succeed, while others fail. Satell uses Experian as a case study and highlights how changes to our culture, organizational structure and skills is allowing us to adopt new technologies quicker, in better collaboration with our customers, to get cutting-edge, innovative products to market faster. At Experian, we believe in the culture of inclusion, which brings a culture of innovation with the added diversity perspective that empowers our people to continue to evolve and create valuable additions to the company during this transformation. Our philosophy is about advancing a culture that not only respects differences, but also actively celebrates them. In Cascades, Satell writes about the idea of small groups, loosely connected, but united by a common purpose. We asked the author for his thoughts about Experian’s technology journey, which he refers to as our digital transformation, and why he’s used Experian as a success story in his book. Q. What are your thoughts about Experian’s digital transformation so far? Satell: What attracted me to the Experian story was how closely it tracked with so many of the social and political movements I researched for my book. Senior leadership at Experian didn’t just try to push its digital transformation through. Rather, they identified those who were already enthusiastic and empowered them to bring others into the fold and they, in turn, could bring others in. That's how you create a cascade that leads to transformational change. Q. What has impressed you the most about Experian’s digital transformation, from both technology and human perspectives? Satell: What I found most impressive is that Experian is able to break free from decades of legacy and build a new future for itself. That's a very hard thing to do. You have all this infrastructure that served the business so well for so long. I mean you're talking about decades of investment. Still, the company leadership was able to step back and say, ‘That's our past and we're proud of it, but it's not our future’, and move forward from there. Q. Have you seen any examples of how our digital transformation is driving innovation within Experian? Satell: Well I think it has driven a lot. Things like Experian’s Analytical Sandbox, the Ascend platform and much of the current work around Artificial Intelligence (AI) wouldn't be possible without moving to more of a cloud infrastructure.

Inclusion is at the heart of everything we do, and we’ve made it a priority to embrace the diversity that makes up the Experian family. This is why we’re especially proud to release our 2018 The Power of You Inclusion & Diversity Annual Report, highlighting the strides we’ve made to celebrate our diverse work force and create an inclusive company culture. "We believe that embracing a truly inclusive culture, where everyone has a real sense of belonging, is critical to building a diverse workforce and fostering innovation," says Craig Boundy, former chief executive officer of Experian North America. "We don't just encourage inclusion at Experian, we celebrate it." The Power You initiative was created to recognize ways we can create a more supportive work environment and provide greater transparency into our commitment towards diversity and inclusion. We’ve instated progressive policies and programs, such as flexible working, paid parental leave and Experian clubs, to help foster support, empowerment and employee pride about working for Experian. Here are some of the highlights from the report: 89 percent of employees across North America agree that creating a diverse and inclusive work environment is at the forefront of Experian's values More than 900 employees joined our 8 Employee Resource Groups (ERGs) From 2017 to 2018, the percentage of women hired into executive positions increased from 31% to 38% Nearly half of our job applicants were non-white, a 10% increase from 2017 Volunteer Time Off (VTO) was increased from one day to two days Experian North America was honored with a North America Great Place to Work certification and regional Top Workplaces awards From the events organized by our Employee Resource Groups (ERGs) to the support provided by our Experian Hardship Fund, The Power of You initiative is exemplified by the work and dedication our employees have invested to help in our mission to create an inclusive workplace. "Creating a better tomorrow starts within the company, and that's why we're committed to diversity and inclusion," adds Justin Hastings, former chief human resources officer of Experian North America. "We search the globe for the very best people so we can innovate and meet the needs of our increasingly diverse clients. Drawing on this collective strength is what truly makes us a top workplace." Our dedication to creating a more inclusive and supportive workplace has not gone unrecognized. We’ve been honored with a number of high-profile employer awards, including being named the #1 Top Workplace in Orange County by the Orange County Register and one of the World’s Most Innovative Companies for the fifth consecutive year by Forbes Magazine. Innovation starts with creating an inclusive culture and growing a diverse workforce. We are proud of the supportive work culture we’ve created and will continue finding ways we can further build upon the progress we’ve made. A copy of this year's report can be found here. Photos taken by Nhan T. Nguyen.