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UBS Media Week Conference 2003
Strong Asset BaseStrong Asset Base
GlobalGlobal
No. 1No. 1
$2.1bn$2.1bn
PartPartGlobalGlobal
No. 2No. 2
$2.2$2.2bnbn
PartPartGlobalGlobal
No. 1No. 1
$2.2$2.2bnbn
US, UK,US, UK,Common-Common-
wealthwealth
No. 2/3No. 2/3
$$1.6bn1.6bn
2002 revenues
Largest Global Professional PublisherLargest Global Professional Publisher
$8.1$8.1
Ree
d E
lsev
ier
Ree
d E
lsev
ier
$7.8$7.8
Th
om
son
Th
om
son
$7.0$7.0
Pea
rso
nP
ears
on
$5.8$5.8
Reu
ters
Reu
ters
$4.1$4.1
Wo
lter
s W
olt
ers
Klu
wer
Klu
wer$1.3$1.3
UB
MU
BM
$1.3$1.3
Du
n
Du
n
&
&
B’s
tB
’st
2002 revenues 2002 revenues ($ bn)($ bn)
$4.8$4.8
McG
raw
-Hill
McG
raw
-Hill
$4.5$4.5V
NU
VN
U
Positive FundamentalsPositive Fundamentals
Sustained long term growth marketsSustained long term growth markets Strong number 1 or 2 position globally in each Strong number 1 or 2 position globally in each
sectorsector Leadership brands and premium contentLeadership brands and premium content Targeted single mindedly at professional usersTargeted single mindedly at professional users Strong cashflow based on subscription modelStrong cashflow based on subscription model
Balanced Portfolio Balanced Portfolio
2002 Revenues $8.1 billion
Science & Medical 26%
Legal 27%
Business 27%
Education 20%
Science & Medical 38%
Legal 25%
Business 21%
Education 16%
2002 Adjusted Operating Profit $1.8 billion
Clear and Consistent StrategyClear and Consistent Strategy
Focus onFocus onfour corefour core
businessesbusinesses
OptimiseOptimiseoperations/operations/
cost cost efficiencyefficiency
OptimiseOptimiseoperations/operations/
cost cost efficiencyefficiency
Substantially Substantially increased increased
investmentinvestment
Substantially Substantially increased increased
investmentinvestment
Powerful Powerful marketing/salemarketing/sales programmess programmes
Powerful Powerful marketing/salemarketing/sales programmess programmes
Demonstrably Demonstrably superior superior productsproducts
Demonstrably Demonstrably superior superior productsproducts
Infill Infill acquisitions/ acquisitions/
alliancesalliances
Infill Infill acquisitions/ acquisitions/
alliancesalliances
Upgrade Upgrade organisationorganisationeffectivenesseffectiveness
Upgrade Upgrade organisationorganisationeffectivenesseffectiveness
Strengthen Strengthen global global
portfolioportfolio
Strengthen Strengthen global global
portfolioportfolio
Investment for Future Revenue GrowthInvestment for Future Revenue Growth
375375390390
420420
19981998
1151158585
$ million$ million
19991999 20002000 20012001 20022002 20032003EE
20042004EE
420+420+470+470+
Key ObjectivesKey Objectives
Maximise above market organic growth Maximise above market organic growth from four core businessesfrom four core businesses
Execute and deliver on all strategic Execute and deliver on all strategic milestonesmilestones
Improve operating margin further through Improve operating margin further through increased efficiencyincreased efficiency
Deliver long term double digit earnings growthDeliver long term double digit earnings growth
Elsevier:Elsevier:Leadership in Science Journals and Leadership in Science Journals and Health SciencesHealth Sciences
1,300 academic journals1,300 academic journals#1 journals publisher#1 journals publisher#1 journals publisher#1 journals publisher
5m articles in digital archive5m articles in digital archive 300,000 new articles per annum300,000 new articles per annum
Leading contentLeading contentLeading contentLeading content
ScienceDirectScienceDirect Over 10 million usersOver 10 million users
Leading online databaseLeading online databaseLeading online databaseLeading online database
8,000 clinical reference works8,000 clinical reference works 500 journals500 journals
#1 healthcare publisher#1 healthcare publisher#1 healthcare publisher#1 healthcare publisher
MDConsult – used by over 1,500 MDConsult – used by over 1,500 hospitals worldwidehospitals worldwideLeading online servicesLeading online servicesLeading online servicesLeading online services
ElsevierElsevier
Science & Technology (2002 revenues: $1.2bn)Science & Technology (2002 revenues: $1.2bn)Science & Technology (2002 revenues: $1.2bn)Science & Technology (2002 revenues: $1.2bn)
Health Sciences (2002 revenues: $0.9bn)Health Sciences (2002 revenues: $0.9bn)Health Sciences (2002 revenues: $0.9bn)Health Sciences (2002 revenues: $0.9bn)
Elsevier:Elsevier:Growth MomentumGrowth Momentum
Strong front list publishingStrong front list publishing Expand digital collections and electronic Expand digital collections and electronic
servicesservices Enhanced navigation and deliveryEnhanced navigation and delivery
Superior productsSuperior productsSuperior productsSuperior products
Focused branding and customer Focused branding and customer relationshipsrelationships
Optimum electronic pricing strategiesOptimum electronic pricing strategies Enhance sales force effectivenessEnhance sales force effectiveness
Powerful sales & Powerful sales & marketingmarketingPowerful sales & Powerful sales & marketingmarketing
Complete product rationalisationComplete product rationalisation Standardisation of productionStandardisation of production Enhanced systems effectivenessEnhanced systems effectiveness
Cost efficiencyCost efficiencyCost efficiencyCost efficiency
Global expansionGlobal expansionGlobal expansionGlobal expansion Acquisition of national health publishersAcquisition of national health publishers Product geocloningProduct geocloning Widening distributionWidening distribution
Elsevier:Elsevier:ScienceDirect:ScienceDirect: Expanding ContentExpanding Content
Full text articles (millions)Full text articles (millions)
1.21.2
20002000
1.81.8
20012001
3.33.3
20022002 2003*2003*
5.05.0
* At 31 October* At 31 October
Elsevier:Elsevier:ScienceDirect:ScienceDirect: Increasing UsageIncreasing Usage
Article downloads (millions)Article downloads (millions)
1616
19991999
2828
20002000
5050
20012001
8686
20022002 2003*2003*
150150
* 12 months to 31 October* 12 months to 31 October
Elsevier:Elsevier:Growth InitiativesGrowth Initiatives
Specialist Online Specialist Online ServicesServices
Specialist Online Specialist Online ServicesServices Navigational Navigational
ServicesServicesNavigational Navigational
ServicesServices
Specialist MD-Specialist MD-Consult ServicesConsult Services
Specialist MD-Specialist MD-Consult ServicesConsult Services
Book Series/MRW Book Series/MRW OnlineOnline
Book Series/MRW Book Series/MRW OnlineOnline
International International HealthcareHealthcare
International International HealthcareHealthcare
Medical PDA Medical PDA ServicesServices
Medical PDA Medical PDA ServicesServices
EVOLVE Medical EVOLVE Medical EducationEducation
EVOLVE Medical EVOLVE Medical EducationEducation
Expanding Expanding BackfilesBackfiles
Expanding Expanding BackfilesBackfiles
Expanding Medical Expanding Medical Book ProgrammeBook Programme
Expanding Medical Expanding Medical Book ProgrammeBook Programme
Interactive Medical Interactive Medical CoursewareCourseware
Interactive Medical Interactive Medical CoursewareCourseware
Expanding Expanding Freedom Freedom
CollecionsCollecions
Expanding Expanding Freedom Freedom
CollecionsCollecions
LexisNexis:LexisNexis: Leading Global Legal/News & Business PublisherLeading Global Legal/News & Business Publisher
LexisNexisLexisNexis
#2 US Legal publisher#2 US Legal publisher #1 Canadian online Legal publisher#1 Canadian online Legal publisher
North AmericaNorth AmericaNorth AmericaNorth America
#1 UK Legal publisher#1 UK Legal publisher Leading positions in France and Italy Leading positions in France and Italy Expanding presence in Germany and central Expanding presence in Germany and central
EuropeEurope
EuropeEuropeEuropeEurope
#1 Legal publisher in:#1 Legal publisher in: Hong Kong, Singapore, Malaysia, Australia, Hong Kong, Singapore, Malaysia, Australia,
New Zealand and South AfricaNew Zealand and South Africa Leading Latin American Legal publisherLeading Latin American Legal publisher
Asia/ROWAsia/ROWAsia/ROWAsia/ROW
2002 Revenues: $2.2 billion
LexisNexis:LexisNexis:Growth MomentumGrowth Momentum
More content: dockets, codes, summariesMore content: dockets, codes, summaries More functionality: e-filing, e-discovery, More functionality: e-filing, e-discovery,
company dossier, risk solutionscompany dossier, risk solutions More customisation: small law, litigation More customisation: small law, litigation
support, Total Searchsupport, Total Search
Superior productsSuperior productsSuperior productsSuperior products
Focus on market segmentationFocus on market segmentation Maintain strong law schools programmeMaintain strong law schools programme Enhanced sales force effectivenessEnhanced sales force effectiveness
Powerful sales & Powerful sales & marketingmarketingPowerful sales & Powerful sales & marketingmarketing
Margin improvement programmeMargin improvement programme Operational/fulfilment improvementsOperational/fulfilment improvements
Cost efficiencyCost efficiencyCost efficiencyCost efficiency
Global expansionGlobal expansionGlobal expansionGlobal expansion Rollout of global delivery platformRollout of global delivery platform Priority countries penetrated/targetedPriority countries penetrated/targeted
LexisNexis:LexisNexis:US Legal Online Usage GrowingUS Legal Online Usage Growing
Growth in commercial Growth in commercial searchessearches
+22%+22%
+17%+17%
+31%+31%
19991999 200220022001200120002000 2003*2003*
+20%+20%
* To 30 June* To 30 June
LexisNexis: LexisNexis: Optimising Cost EfficiencyOptimising Cost Efficiency
Operating marginOperating margin
24.9%24.9%
19991999
20.1%20.1%
20012001
19.7%19.7%
20002000 2003*2003*
c.22.5%c.22.5%
*Full Year Estimate*Full Year Estimate
20022002
21.3%21.3%
LexisNexis: LexisNexis: Growth InitiativesGrowth Initiatives
Navigation Navigation ImprovementsImprovements
Navigation Navigation ImprovementsImprovements Improved Improved
Company DossierCompany DossierImproved Improved
Company DossierCompany Dossier
Annotated Annotated CodesCodes
Annotated Annotated CodesCodes
Leading Risk Leading Risk Solution ApplicationSolution Application
Leading Risk Leading Risk Solution ApplicationSolution Application
E-AccessE-AccessE-AccessE-AccessE-DiscoveryE-DiscoveryE-DiscoveryE-Discovery
Court Docket / Court Docket / e-Filinge-Filing
Court Docket / Court Docket / e-Filinge-Filing
Global PlatformGlobal PlatformGlobal PlatformGlobal Platform
Customisation: Customisation: small law, litigation small law, litigation
supportsupport
Customisation: Customisation: small law, litigation small law, litigation
supportsupportBusiness Business
Intelligence Intelligence SolutionsSolutions
Business Business Intelligence Intelligence SolutionsSolutions
Knowledge Knowledge ManagementManagementKnowledge Knowledge
ManagementManagement
State by State State by State CustomisationCustomisationState by State State by State CustomisationCustomisation
Harcourt Education:Harcourt Education:Leading Educational PublisherLeading Educational Publisher
Harcourt EducationHarcourt Education
Leading position in K-6Leading position in K-6Harcourt SchoolHarcourt SchoolHarcourt SchoolHarcourt School
2002 Revenues: $1.6 billion
Leading position in 6-12Leading position in 6-12Holt Reinhart WinstonHolt Reinhart WinstonHolt Reinhart WinstonHolt Reinhart Winston
Major supplemental publisherMajor supplemental publisherHarcourt SupplementalHarcourt SupplementalHarcourt SupplementalHarcourt Supplemental
Leader in schools and clinical test Leader in schools and clinical test preparationpreparationHarcourt AssessmentHarcourt AssessmentHarcourt AssessmentHarcourt Assessment
Leader in UK primary and secondaryLeader in UK primary and secondaryHarcourt InternationalHarcourt InternationalHarcourt InternationalHarcourt International
Harcourt Education:Harcourt Education:US MarketUS Market
Attractive long term growth marketAttractive long term growth market Strong federal and state commitmentStrong federal and state commitment Short term market weakness in Short term market weakness in
2003/20042003/2004– Low point in adoption cycleLow point in adoption cycle– State budget pressuresState budget pressures
Return to strong growth 2005 / 2006Return to strong growth 2005 / 2006 Rapid assessment market growthRapid assessment market growth
Harcourt Education: Harcourt Education: Growth MomentumGrowth Momentum
Proven programme development processProven programme development process Expansion across curriculum rangeExpansion across curriculum range Building online products: e-learning,Building online products: e-learning,
e-testing, e-professional developmente-testing, e-professional development
Superior productsSuperior productsSuperior productsSuperior products
Market research embedded in development Market research embedded in development and sales processand sales process
Strengthened Open Territories sales forceStrengthened Open Territories sales force
Powerful sales & Powerful sales & marketingmarketingPowerful sales & Powerful sales & marketingmarketing
Greater focus on organisational efficiencyGreater focus on organisational efficiency Further supply chain savings targetedFurther supply chain savings targeted
Cost efficiencyCost efficiencyCost efficiencyCost efficiency
Global expansionGlobal expansionGlobal expansionGlobal expansion Product transfer across marketsProduct transfer across markets Acquisition potentialAcquisition potential
OutperformOutperform
US Education Market*US Education Market*Growth %Growth % 33 1313 88
Harcourt US EducationHarcourt US EducationGrowth %Growth %
Note:Note: * US Education Market represent total K-12 textbook sales as reported by* US Education Market represent total K-12 textbook sales as reported by
Association of American Publishers (AAP). Association of American Publishers (AAP).
Harcourt Education:Harcourt Education:Market OutperformanceMarket Outperformance
333344 1111
- 5- 5
00
1212
99
19981998 19991999 20002000 20012001 20022002
Harcourt Education: Harcourt Education: Growth InitiativesGrowth Initiatives
New State Testing New State Testing WinsWins
New State Testing New State Testing WinsWins
Market Leading Market Leading Adoption Adoption
ProgrammesProgrammes
Market Leading Market Leading Adoption Adoption
ProgrammesProgrammes
Texas Texas STARgateSTARgate
Texas Texas STARgateSTARgate
Alzheimer Alzheimer QuicktestQuicktest
Alzheimer Alzheimer QuicktestQuicktest
Online HRW BasalOnline HRW BasalOnline HRW BasalOnline HRW Basal
Stanford 10Stanford 10Stanford 10Stanford 10
WPPSI IIIWPPSI IIIWPPSI IIIWPPSI III
E-Professional E-Professional TrainingTraining
E-Professional E-Professional TrainingTraining
Classroom Based Classroom Based Interim AssessmentInterim AssessmentClassroom Based Classroom Based
Interim AssessmentInterim Assessment
Business: Business: Leading Global Business to Business PublisherLeading Global Business to Business Publisher
Reed BusinessReed Business
#1 trade magazine and information publisher#1 trade magazine and information publisherUnited StatesUnited StatesUnited StatesUnited States
2002 Revenues: $2.2 billion
#1 trade magazine and information publisher#1 trade magazine and information publisherUnited KingdomUnited KingdomUnited KingdomUnited Kingdom
#1 trade magazine and information publisher#1 trade magazine and information publisherNetherlandsNetherlandsNetherlandsNetherlands
Largest global organiser of exhibitionsLargest global organiser of exhibitionsExhibitionsExhibitionsExhibitionsExhibitions
Reed Business:Reed Business:Growth MomentumGrowth Momentum
Constant product improvementConstant product improvement New online servicesNew online services
Superior productsSuperior productsSuperior productsSuperior products
Disciplined customer feedback Disciplined customer feedback programmesprogrammes
Market segmentation and yield Market segmentation and yield managementmanagement
Enhanced sales force effectiveness Enhanced sales force effectiveness
Powerful sales & Powerful sales & marketingmarketingPowerful sales & Powerful sales & marketingmarketing
Further supply chain savingsFurther supply chain savings US margin improvement programmeUS margin improvement programme
Cost efficiencyCost efficiencyCost efficiencyCost efficiency
Global expansionGlobal expansionGlobal expansionGlobal expansion Leverage global marketsLeverage global markets Geocloning of titles and showsGeocloning of titles and shows Selective acquisitionsSelective acquisitions
Reed Business:Reed Business:Online Revenue GrowthOnline Revenue Growth
$57m$57m
$95m$95m
$115m$115m
$22m$22m
20022002200120012000200019991999 2003*2003*
$150m$150m
* Full year estimate* Full year estimate
Reed Business: Reed Business: Growth InitiativesGrowth Initiatives
Totaljobs.comTotaljobs.comTotaljobs.comTotaljobs.com KellySearchKellySearchKellySearchKellySearch
20 New 20 New Exhibitions Exhibitions LaunchedLaunched
20 New 20 New Exhibitions Exhibitions LaunchedLaunched
Variety FranchiseVariety FranchiseVariety FranchiseVariety Franchise
RCD ConnectRCD ConnectRCD ConnectRCD Connect
14 Magazines 14 Magazines RelaunchedRelaunched
14 Magazines 14 Magazines RelaunchedRelaunched
Data ServicesData ServicesData ServicesData Services
Online DirectoriesOnline DirectoriesOnline DirectoriesOnline Directories
Marketing Marketing AlliancesAlliancesMarketing Marketing AlliancesAlliances
2003 Outlook2003 Outlook On track to deliver above market revenue and On track to deliver above market revenue and
double digit adjusted eps growthdouble digit adjusted eps growthOverallOverallOverallOverall
Sales growth acceleration in second half; Sales growth acceleration in second half; success of ScienceDirect; strong medical success of ScienceDirect; strong medical book programmebook programme
ElsevierElsevierElsevierElsevier
Leading share of K-12; adoptions trough and Leading share of K-12; adoptions trough and state budget pressures; loss of California state budget pressures; loss of California testing contracttesting contract
HarcourtHarcourtHarcourtHarcourt
LexisNexisLexisNexisLexisNexisLexisNexis Continued investment stimulating above Continued investment stimulating above market revenue growth in slower markets; market revenue growth in slower markets; strong risk solutionsstrong risk solutions
Difficult advertising markets; partly offset by Difficult advertising markets; partly offset by online growth, share gains and improving online growth, share gains and improving yields; exhibitions resilientyields; exhibitions resilient
Reed BusinessReed BusinessReed BusinessReed Business
2004/2005 Outlook2004/2005 Outlook
2004 targets:2004 targets:– Above market revenue growthAbove market revenue growth– Mid to high single digit EPS growth* after $50+m Mid to high single digit EPS growth* after $50+m
expansion of investment to drive longer term expansion of investment to drive longer term revenue growthrevenue growth
2005 and beyond:2005 and beyond:– Stronger market growth from improved economic Stronger market growth from improved economic
conditionsconditions– Strong growth in US schools adoptionsStrong growth in US schools adoptions– Above market revenue and double digit EPS Above market revenue and double digit EPS
growth*growth*
*adjusted EPS (stated before amortisation of goodwill and intangible assets and exceptional
items) at constant currencies
Reed Elsevier Reed Elsevier
Sustained long term growth marketsSustained long term growth markets Powerful combination of leadership positions, quality Powerful combination of leadership positions, quality
assets and consistent strategiesassets and consistent strategies Powerful focus on investment, product, sales, Powerful focus on investment, product, sales,
marketing and costsmarketing and costs Continued good business momentum in challenging Continued good business momentum in challenging
climateclimate Firmly on track for above market revenue and double Firmly on track for above market revenue and double
digit adjusted earnings* growth in 2003digit adjusted earnings* growth in 2003 Strong performance going forward; potential for Strong performance going forward; potential for
improvement as economic conditions improveimprovement as economic conditions improve
*constant currency
UBS Media Week Conference 2003