Experian has a clear strategy for growth that is based on continuing to build on its core businesses, while developing new solutions for its clients and undertaking acquisitions that strengthen its global capabilities.

Worldwide sales for the year from Experian’s continuing businesses were up 14% and profit was up 20%. This was driven by major contract wins, including many outside the main US and UK markets, and by significant product developments.

Experian North America

Experian North America achieved consistent growth during the year, with sales from continuing activities up by 10% and profit up 18%.

Credit information and solutions sales increased 12%. Demand was particularly strong for fraud solutions, which was given further impetus by the USA Patriot Act requiring financial services organisations to verify the identity of customers.

In the business-to-business sector, Experian captured market share by focusing on key niches such as information on small businesses and their owners, scoring and decisioning, and international information.

Experian continued the programme of acquiring its 38 affiliate bureaux, which is giving Experian direct control of an important distribution channel in North America. By the year-end, Experian had acquired 21 of the bureaux at a total cost of $166m.

Marketing information and solutions sales increased 6%, with sales improving throughout the year, despite difficult conditions within the direct marketing industry. This was helped by new product developments, such as Totalvue Express, which provides a hosted database-marketing service that can be quickly deployed to give retailers a comprehensive view of customers, whether they are buying through the catalogue, in-store or on the web.

The acquisition of CheetahMail, a specialist e-mail marketing company, has strengthened Experian’s position in the fast growing web-based marketing sector. It will ensure that Experian can deliver highly integrated, multi-channel campaigns for its clients, many of whom now see e-mails as an essential element of their marketing strategies.

In business-to-business marketing, Experian capitalised on its expanded capabilities in list fulfilment, enabling marketers to build instantaneous, customised lists of their best prospects.

Demand for Experian’s automotive solutions was strong throughout the year. Gulf States Toyota, with a network of 144 Toyota dealers, was among the companies to choose Experian’s vehicle history reports as an integral element of its previously owned vehicle certification process. The reports have also been integrated into the country’s leading automotive sales websites, such as eBay. AutoNation, the largest automotive retailer, presented Experian with its 2003 Supplier Award for Best Technology.

Direct-to-consumer sales increased by over 40% during the year, as Experian Consumer Direct continued to strengthen its lead in this fast growing market. By the year-end, the service had over 1.7m subscribers.

Consumer Direct’s market lead was reinforced by exclusive integration agreements with major Internet portals such as AOL, MSN and Yahoo. The acquisition of MetaReward, an Internet loyalty marketing company, is helping Experian to develop additional services for consumers, including the ability to earn gift cards that can be redeemed at leading retailers.

Profit from Experian’s 20% holding in FARES, its real estate information associate, increased by 27% to $63m. FARES’ lead in the real estate information market was strengthened by the acquisition of Transamerica Finance Corporation’s real estate tax services and flood hazard certification businesses.

Experian International

Experian International, which accounts for 45% of Experian’s sales worldwide, had another excellent year. Sales from continuing businesses increased by 20%, of which 13% came from acquisitions, and profit grew by 24%.

Experian-Scorex, the global decision support business, delivered double-digit sales growth in its first year of full ownership by Experian. It won a major contract from Kookmin Bank, the largest bank in Korea and is working with CIT Group, a leading commercial and consumer finance company, to provide a pan-European solution. The acquisition of Marketswitch, the leader in large-scale optimisation software, expanded Experian-Scorex’s analytical and decisioning capabilities.

Sales of credit information and solutions were up 11% and included major new contracts. Under a five-year agreement to support Marks & Spencer’s ‘&more’ credit card, Experian began providing a full range of integrated services. Morgan Stanley renewed a four-year partnership for the processing of its credit card and another card issuer, Barclaycard, chose Experian’s Strategy Management solution to enhance its decision-making. There was also strong growth in Europe for credit information and solutions, particularly in Spain, Italy and the Nordic region.

The growing threat of fraud remained a high priority for Experian’s clients. Orange revealed substantial reductions in mobile phone fraud since implementing Experian’s Detect product. Experian also developed an online fraud system for the UK’s Department of Work and Pensions.

New products launched during the year included an International Report Service, which provides information on companies in over 220 countries. It further strengthens Experian’s position in the international business information market.

In the UK, Experian launched CreditExpert, an online credit monitoring service for consumers to help them quickly identify important changes to their credit report and prevent serious identity fraud.

Sales of marketing information and solutions grew by 11%, despite a difficult background in the UK direct marketing industry. Marketing contracts were won in a range of sectors. The global children’s charity, UNICEF, turned to Experian to help reactivate lapsed home shopping customers in the run-up to Christmas. Police forces in the UK began using Experian’s Mosaic consumer segmentation system to allocate resources in response to local needs.

Experian’s National Business Database became the UK’s most comprehensive business information source for direct marketers, helped by the acquisition of Yell Data from the international directories group, Yell.

In Spain, the mobile phone operator, Amena, awarded Experian a major contract to automate its customer recruitment campaigns, using Intravue. In Italy, Experian won a contract with IVECO, the Italian truck manufacturer, to develop and host a business-to-business marketing database.

In France, Experian continued to extend its range of services. Société Générale took consultancy services to help it assess market, credit and operational risk in line with new international banking legislation. The French Association of Chartered Accountants signed a nine-year contract for the management of its web portal www.jedeclare.com, dedicated to the electronic transmission of tax returns. And Air France appointed Experian to manage the address data for its loyalty programme.

Experian also continued to win contracts for business process outsourcing, particularly in France, where Experian acquired the document management and cheque processing activities of Atos Origin in September 2003. New contracts included support for card processing for Crédit Lyonnais and cheque processing for BNP Paribas.

One of the highlights of the year for Experian was being named the UK’s Business of the Year in the National Business Awards. Other awards included the British Insurance Award for Technology and the ProShare Innovations Award.