The global provider of information-based analytics and .../media/Files/R/RELX-Group/documents/invest… · insurance companies evaluate and predict risk. Our events enable customers

The global provider of information-based analytics and decision tools

May 2020

2

RELX Investor Relations contacts

Colin Tennant – Head of Investor [email protected]

+44 (0)20 7166 5751

James Statham – Director, Investor Relations [email protected]

+44 (0)20 7166 5688

Kate Whitaker – Investor Relations [email protected]

+44 (0)20 7166 5634(for meeting requests)

Benjamin Tucker – Investor Relations [email protected]

+44 (0)20 7166 5694

DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS

This presentation contains forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties that could cause actual results or outcomes of RELX PLC (together with its subsidiaries, “RELX”, “we” or “our”) to differ materially from those expressed in any forward-looking statement. We consider any statements that are not historical facts to be “forward-looking statements”. The terms “outlook”, “estimate”, “project”, “plan”, “intend”, “expect”, “should”, “will”, “believe”, “trends” and similar expressions may indicate a forward-looking statement. Important factors that could cause actual results or outcomes to differ materially from estimates or forecasts contained in the forward-looking statements include, among others, current and future economic, political and market forces; changes in law and legal interpretations affecting RELX intellectual property rights and internet communications; regulatory and other changes regarding the collection, transfer or use of third-party content and data; demand for RELX products and services; competitive factors in the industries in which RELX operates; ability to realise the future anticipated benefits of acquisitions; significant failure or interruption of our systems; compromises of our data security systems or other unauthorised access to our databases; legislative, fiscal, tax and regulatory developments and political risks; exchange rate fluctuations; and other risksreferenced from time to time in the filings of RELX PLC with the US Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Except as may be required by law, we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events.

3

RELX is a global provider of information-based analytics and decision tools for professional and business customers.

We help scientists make new discoveries, doctors and nurses improve the lives of patients and lawyers win cases. We prevent online fraud and money laundering, and help

insurance companies evaluate and predict risk. Our events enable customers to learn about markets, source products and complete transactions.

In short, we enable our customers to make better decisions, get better results and be more productive.

4

RELX global scale

• 2019 revenues: £7.9bn

• 2019 adjusted operating profit: £2.5bn

• 2019 adjusted operating margin: 31.6%

• Strong cash flow and balance sheet:

― 2019 cash flow conversion: 96%

― net debt / EBITDA1: 2.5x including leases and pensions (2.2x ex leases and pensions)

• Over 33,000 employees worldwide; Customers in more than 180 countries

• Listings: London, Amsterdam and New York (ADR)

• Market capitalisation2: £35bn / 40bn / $44bn

5

1At 31 December 20192As at 30 April 2020Adjusted figures are stated before amortisation of acquired intangible assets, acquisition related costs, disposal gains / losses, pension financing costs and anomalous tax effects

RELX financial summary

FY 2019

• Underlying revenue growth

• Underlying adjusted operating profit growth

• Adjusted EPS growth at constant currencies

• Full year dividend growth +9%

+7%

+5%

+4%

6

Trading update in light of the evolving COVID-19 pandemic – 8 April 2020

7

Highlights

In our three largest business areas, Scientific, Technical & Medical, Risk & Business Analytics, and Legal, which together accounted for 84% of revenue and 87% of adjusted operating profit in 2019, the rate of underlying revenue growth in the firstquarter of 2020 was slightly higher than in the same period of the prior year. These business areas saw only a limited impactfrom COVID-19 in the first quarter, although the full year outcome may be affected by changes in the evolving economic environment and by activity levels in our customer markets.

The Exhibitions business, which accounted for 16% of revenue and 13% of adjusted operating profit in 2019, is being impacted significantly by COVID-19, making the outlook for this business area highly uncertain. As a result, we are unable to provide full year guidance for the group as a whole.

We have a strong balance sheet position and our financing arrangements provide us with ample liquidity.

Strategic direction : Organic growth

Number one strategic priority: The organic development of increasingly sophisticated information-based analytics and decision tools that deliver enhanced value to our customers

• Deep customer understanding

• Leading content and data sets

• Sophisticated analytics

• Powerful technology in global platforms

• Better customer decisions

• Improved customer outcomes

• Increased customer productivity

Implications for business profile: More predictable revenues, higher growth profile, improving returns

8

Business profile: higher growth

9

• Print to electronic largely complete

• Face-to-face continuing to grow

• Primary focus:Transition from electronic reference to electronic decision tools to drive higher customer value

─ adding broader data sets ─ more sophisticated analytics ─ leveraging more powerful

technology22% 22%28% 30% 32% 35% 37%

48% 50%

59% 61% 63% 64% 66% 66%70% 72% 74% 74% 75%

14% 14%

12%12%

12%13% 12%

15%17%

14%14%

15% 15%15% 16%

15%15%

15% 16% 16%

64% 64%60% 58% 56%

52% 51%

37%33%

27% 25% 22% 21% 19% 18% 15% 13% 11% 10% 9%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Electronic Face-to-face Print

RELX revenue by category2019

Print9%

Face-to-face 16%

Electronic 75%

Rest of world 21%

Europe 23%

North America

56%

Advertising 1%

Transactional 47%

Subscription 52%

Format Geography Type

10

Financial performanceRevenue Underlying growth

+3% +4% +4% +4% +4%

2015 2016 2017 2018 2019

Adjusted earnings per share Constant currency growth

+8% +8% +7% +7% +7%

2015 2016 2017 2018 2019

Return on invested capital

Adjusted operating profitUnderlying growth

+5% +6% +6% +6% +5%

2015 2016 2017 2018 2019

11

Adjusted cash flow conversion Dividend per sharepence

94% 96% 96% 96% 96%

2015 2016 2017 2018 2019

12.7% 13.0% 12.9% 13.2% 13.6%

2015 2016 2017 2018 2019

2017 ROIC and 2016 cash flow conversion restated for the adoption of new accounting standards IFRS 9, 15 & 16

29.7 35.95 39.4 42.1 45.7

2015 2016 2017 2018 2019

1. Organic developmentCapex (£m)

Average:5% of sales

2. Portfolio reshapingAcquisition consideration (£m)

Average:c£400m

3. DividendsTotal payout (£m)

Average dividend cover*:2.0x

4. LeverageNet debt / EBITDA**

Average:2.3x

5. BuybacksDeployed (£m) 2020: £400m

Uses of cash - priorities

*Average, on a declared per share basis**Including leases and pensions

171338

123

978

416

1 2 3 4 5

307 333 354 362 380

1 2 3 4 5

2.2 x 2.2 x 2.2 x 2.4 x 2.5 x

1 2 3 4 5

500700 700 700 600

1 2 3 4 5

583 683 762 796 842

1 2 3 4 5

2015 2016 2017 2018 2019

12

Strategic direction: Corporate responsibility and sustainability

Core corporate responsibilities

External recognition Unique contributions― examples

• Governance

• People

• Customers

• Community

• Supply chain

• Environment

• 2nd in S&P 1200 (CSRHub)

• 6th in Responsibility 100 Index

• MSCI: AAA

• Sustainalytics ESG report: top one percent

• Universal sustainable access to information― Research4Life

• Advance of science and health― Coronavirus Information Centre

• Protection of society― National Centre for Missing and Exploited

Children partnership• Promotion of the rule of law and access to justice

― Rule of Law Foundation• Fostering communities

― World Future Energy Summit

13

Corporate responsibility and sustainability performance

28% 33%

2018 2019

PeoplePercentage of female senior operational managers 89% 91%

2018 2019

Socially responsible suppliers (SRS)Percentage signing supplier code of conduct

179 164

2018 2019

EnergyTotal energy usage (GWh)

150 138

2018 2019

EmissionsTotal emissions*

81%96%

2018 2019

42% 45%

2018 2019

CommunityPercentage of staff volunteering (%)

RenewablesPercentage of electricity from renewable sources

-9% -8%

*Using scope 2 (location-based) emissions (tCO2e ‘000s)

14

Overview of business areas

15

Print books and pharma

Insurance

Business servicesData services

Government

Legal printNews & business

Exhibitor fees

Admissions & other

RELX revenue by segment

16

Exhibitions

Legal

Risk & Business Analytics

Scientific, Technical & Medical

Pro forma 2018 revenues for January 2019 continuing operations

Databases & tools and electronic reference

Primary research:

− Academic subscription

− Corporate & transactional

Electronic reference & decision tools:

− International

− N America


17


Provides information and analytics that help institutions and professionals advance healthcare, progress science and improve performance

2019 revenue £2,637m

Rest of world31%

Europe24%

Electronic84%

North America

45%

Transactional23%

Advertising2%

Subscription75%

Print16%


• First quarter 2020 underlying revenue growth rate was slightly higher than in the same period of the prior year, and we saw only a limited impact from COVID-19

• In primary research, subscription renewal rates are in line with recent years, and growth in author-pays open access revenue is very strong. Article submission growth rates, to both subscription and author-pays open access journals, remain strong

• Databases & tools revenue is growing well, partly offset by declines in print books.

• Since January Elsevier has mobilised all of its research content, data analytics know-how, and clinical insights to support the scientific and medical response to the COVID-19 pandemic

2020 full year outlook: Positive revenue momentum continued through the first quarter. As we go through the year, we could see some impact from the COVID-19 pandemic in our customer markets, and prolonged restrictions on movement could potentially impact our ability to conduct new sales in person and distribute print products, but overall revenue stability issupported by 75% being subscription based

2019 full year underlying growth

+2% +2%

2018 2019

Revenue

+2% +3%

2018 2019

Adjusted operating profit

18

2020 first quarter update


19

Provides customers with information-based analytics and decision tools that combine public and industry-specific content with advanced technology and algorithms to assist them in evaluating and predicting risk and enhancing operational efficiency



Rest of world7%

Face-to-face1%

Europe14%

Electronic98%

North America79%

Transactional62%

Advertising1% Subscription

37%

Print1%


2020 full year outlook: Notwithstanding the strong revenue performance across the business in the early part of the year, the full year outcome will depend on the extent and duration of the slowdown in business activity in the US and on the level of transactional activity in our customer markets

• 2020 started strongly with underlying revenue growth at a slightly higher rate than in the same period of the prior year

• Since the introduction of more extensive restrictions on movement in parts of the US in the second half of March, transactional volumes have softened and become more volatile in both Insurance and Business Services

• Subscription revenues, which represent almost 40% of the divisional total, have continued to grow strongly across Insurance, Business Services and Data Services


+8% +7%

2018 2019

Revenue

+8% +8%

2018 2019


20


Legal

21

Provides legal, regulatory and business information and analytics that help customers increase their productivity, improve decision-making and achieve better outcomes



Rest of world12%

Europe21%

Electronic85%

North America67%

Transactional22%

Subscription78%

Print15%

Legal

2020 full year outlook: Positive revenue momentum continued through the first quarter. As we go through the year, we could see some impact if the COVID-19 pandemic causes a prolonged slowdown in the legal services industry, or from potential limitations on our ability to conduct new sales in person and distribute print products, but overall revenue stability is supported by nearly 80% being subscription based

• First quarter 2020 underlying revenue growth rate was slightly higher than in the same period of the prior year, primarily driven by good growth in legal analytics

• Completion of new platform roll-out enabled continued release of broader datasets, enhanced research products and market leading legal analytics

• We saw only a limited impact from COVID-19 in the first quarter


+2% +2%

2018 2019

Revenue

+10% +8%

2018 2019


22


Exhibitions

23

A leading global events business. It combines face-to-face with data and digital tools to help customers learn about markets, source products and complete transactions at over 500 events in almost 30 countries, attracting more than 7m participants



Rest of world40%

Face-to-face96%

Europe40%

Electronic4% North America

20%

Exhibitor fees72%

Admissions & other

28%

Exhibitions

2020 full year outlook: Depending on the impact and duration of the restrictions resulting from the COVID-19 pandemic, further rescheduling or cancellation of events may be necessary, making the full year outlook highly uncertain

• In the first quarter of 2020 around two thirds of the events that were originally scheduled to take place went ahead as planned with revenues slightly ahead of the same events in the prior year

• At the end of the first quarter events representing around 5% of expected 2020 revenues had been cancelled, and events representing around 30% of 2020 expected revenues had been rescheduled to take place later in the year, in some cases in combination with other second half events. These events are likely to experience some revenue attrition and extra costs associated with the rescheduling

• Following these actions, the majority of this year's events are now scheduled to take place in the September-December period. We are taking action to save costs across the business, whilst continuing to serve our customers and maintain market presence to support the long-term value of our brands


+6% +6%

2018 2019

Revenue

+10%

-1%

2018 2019


24


25

Further information on business areas

26

Scientific, Technical & Medical revenue by segment

27Pro forma 2018 revenues for January 2019 continuing operations

Databases & tools and electronic reference

Primary research:

− Academic subscription

− Corporate & transactional

Print books and pharma

28

Journal and Article EcosystemElsevier’s support to the journal eco-system

Solicit & managesubmissions

Manage peer review

Filtering/Editing• 2 million article submissions• 500,000 published articles• 23,000 editors• 87,000 editorial board members

• 1 million reviewers

Dissemination~1 billion articles consumed

Archiving~16 million articles

ProductionTechnological enrichment

Edit & prepare

Publish & disseminate

Archive & promote

Community building2,500 journal brands

2019

Source – Elsevier website

29

Article Volume GrowthConsistent article volume growth

Elsevier Published Articles (‘000)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

+5% CAGR

336

419

258 267284

365

295 297321

380400

436

497471


30

60%

26%

59%

4%

Article Share

7%

12%

18%

48%

3%9%

14%

Citation Share

Share of articles per publisher (published in 2018) and citation share (citations in 2014‐18 in relation to articles published in 2014‐18). Source: Scopus data.

Company B

Company A

Elsevier

Company C

Journal and Article QualityArticle and citation share

Other

100% 100%


31

17%18%

12%

7%

4%

59%

Company AElsevier

Company BCompany COther

33%Share of articles in top 10% journal FWCI tier

Share of articles in 10‐25% journal FWCI tier

Share of articles in bottom 50% journal FWCI tier

29%

Total market

Journal and Article QualityShare of articles per journal quality tier

* Article share (articles published in 2018) per journal Field Weighted Citation Impact (FWCI) tier. Field Weighted Citation Impact (FWCI) is calculated on the basis of citations in 2014‐18 to articles published in 2014‐18 and accounts for article type, publication year and subject field. Source: Scopus data.

Share of articles in 25‐50% journal FWCI tier

15% 14%

4%

Higherquality

Lowerquality

Share of articles per journal Field Weighted Citation Impact Tier*


32

Company BCompany AElsevier Company C

Journal and Article QualityShare of articles per journal quality tier

Articles per journal Field Weighted Citation Impact Tier*

* Article share (articles published in 2018) per journal Field Weighted Citation Impact (FWCI) tier. Field Weighted Citation Impact (FWCI) is calculated on the basis of citations in 2014‐18 to articles published in 2014‐18 and accounts for article type, publication year and subject field. Source: Scopus data

Other

Share of articles in top 10% journal FWCI tier

Share of articles in 10 to 25% FWCI tier

Share of articles in 25 to 50% FWCI tier

Share of articles in bottom 50% FWCI tier


33

Journal Article PriceAverage list price per subscription article

21.1

Elsevier Company BCompany A Company C

13.1

18.8

32.6

* Weighted average of list prices for 2018 subscription year versus articles published in 2018. Source: Publisher websites, Scopus data

Average Subscription Article List Price* ($)


Scientific, Technical & MedicalGrowth and currency analysis

Underlying Portfolio changesConstant currency

Period change in hedge rates

Other currency Total currency Total

FY 2019 Revenue +2% -1% +1% +1% +2% +3% +4%Adjusted operating profit +3% -1% +2% +1% +1% +2% +4%Adjusted operating margin +0.3% -0.1% +0.2% +0.2% -0.3% -0.1% +0.1%

FY 2018 Revenue +2% +2% +4% +1% -2% -1% +3%Adjusted operating profit +2% 0% +2% +3% -2% +1% +3%Adjusted operating margin 0.0% -0.7% -0.7% +0.6% +0.2% +0.8% +0.1%

FY 2017 Revenue +2% 0% +2% 0% +5% +5% +7%Adjusted operating profit +3% -1% +2% 0% +5% +5% +7%Adjusted operating margin +0.6% -0.6% 0.0% 0.0% 0.0% 0.0% 0.0%

34

Insurance

Business servicesData services

Government

Risk & Business Analytics: revenue by segment


Risk & Business Analytics underlying revenue growth

* Products more than 5 years old** Products less than 5 years old

2011 2012 2013 2014 2015 2016 2017 2018 2019

Base market growth contribution*

Contribution from recent product introductions**

+3%

+5%+6% +6%

+7%

+9%+8%+8%

+7%

36

37

R&BA Insurance: data assets across the insurance continuum

37Extracted from technology teach in on 19 Nov 2015

38

R&BA Business Services: Our solutions help customers solve daily business challenges

Fraud and identity management Financial crime compliance Business and consumer credit

risk Collections and other

• Verify customer identities

• Prevent fraud while streamlining account opening

• Provide contributory intelligence

• Understand risks for customers and third parties

• Manage due diligence processes

• Maintain compliance

• Ensure compliance and transparency

• Assess credit risk for consumers and businesses

• Maximise effectiveness with contact data

• Increase workflow efficiency and profitability

• Vital records and specialisedpayments services

Extracted from Risk & Business Analytics teach in on 8 November 2018

39

R&BA Business Services: Combining physical and digital identity data assets positions us for strong future growth

19.8bnConsumer records

24.3bnInsurance records

283mUnique consumeridentities

5.6bnProperty records

51mBusinesses

10.6bnUnique

consumer name

and address

68mBusiness contact records

1.4bnBankruptcy records

533mCriminal records

1.2bnVehicle title

records

5.7bnMotor vehicle registrations

290mAuto and

home claim records

1.5bnMobile devices

700mUnique IP addresses

800mUnique emailaddresses4.5bn

Unique devices identified

290mUnique

cell phones

• Risk & Business Analytics • ThreatMetrix


40

R&BA Business Services: The world’s leading digital identity network

*July 2017 to June 2018**Q3 2017, Q4 2017, Q1 2018, Q2 2018

780 million fraud attacks

detected & stopped last year**

40,000websites and apps

110 millionaverage daily transactions

58%mobile transactions

150 million mobile attacks stopped

1H 2018

60%cross border transaction

6,000customers on the network

Every minute ThreatMetrix sees transactions from160 countries

1.6 billionbot attacks stopped

1H 2018

$170 billione‐commerce & media payments

protected in 1 year*

$19.5 billionfraudulent payments stopped in 1 year*

734 millionactive online

accounts protected


Legal print

News & business

Legal revenue by segment


Electronic reference & decision tools:

− International

− N America

Legal: strong global footprint

Market-leading positions (#1 or #2)

North America:• US (#2)• Canada (#1 legal online)

Europe:• United Kingdom (#1 legal online)• France (#1 legal online)

Rest of World:• Australia (#1 legal online)• South Africa (#1)• New Zealand (#1)• China and Hong Kong

(#1 legal online)• India (#1)• Malaysia (#1)• Singapore (#1)

LexisNexis subscribersNote: Market position based on legal & regulatory information revenue

42Extracted from legal teach in on 10 November 2016

Legal: New Lexis – how the technology platform works

43

Analysis applications Customer outcomes

• Scoring models and attributes

• Visualisations to represent clusters, links & graphs of entities

• Suggested content• Case similarity

identification• Legislation outcome

prediction• Case valuation analysis• Entity profiling

Complex analysis

Clustering analysis

Link analysis

Entity resolution

Expert witness profiles

Court dockets

Newsarticles

Authored content

Publicrecords

Primary research

Company information

• Grid computing with low-cost servers (HPCC)• Data-centric languages (brings code to the data)• Linking algorithms that generate high precision and recall• Machine learning algorithms to cluster, link and learn from the data• Natural language processing to uncover hidden relationships in

data

BigData

Source Content Big Data technologies

• Over 80bn documents and records

• >20m new documents processed daily

• >50k sources

Linking

Enrichment

Knowledge Graph

Extracted from legal teach in on 10 November 2016

Legal: New Lexis product ecosystem supports a variety of customer use cases

44

Product examples:

Illustrative lawyer

workflow

Lexis Advance Research

Research

(Lexis Advance)

Legislative Outlook

(Lexis Advance)

Predict Outcomes

Business Development

Lex Machina

(Pull from content store)

Case Assessment

Verdict & Settlement Analyzer

(Lexis Advance)

Lexis for Microsoft

Office(Integrated in Lexis Advance)

Drafting

Lexis Practice Advisor

(Lexis Advance)

Practical Guidance

Law 360

(Integrated in Lexis Advance)

Current Awareness

‘Pull’ onNew Lexis Platform

Value added analytics

New Lexis Content Store and Technology Platform

Content Store

Product Platform

Business Systems

Smart Content Knowledge Graph

Extracted from legal teach in on 10 November 2016

Legal revenue, profit and margin progression

Revenue growth Adjusted operating profit growth Margin

UnderlyingConstantcurrency Reported Underlying

Constantcurrency Reported

2019 +2% -1% +2% +8% +1% +3% 20.0%2018 +2% -1% -4% +10% 0% -2% 19.8%

2017 +2% -1% +4% +11% +1% +7% 19.6%

2016 +2% +2% +12% +12% +2% +14% 19.2%

2015 +1% +1% +3% +7% +5% +5% 19.0%

2014 +1% -6% -11% +6% +10% +4% 18.6%

2013 +1% -4% -3% +5% +1% +2% 15.9%

2012 +1% -1% -1% +4% +4% +2% 14.5%

2011 +1% -2% -3% -2% -4% -4% 14.0%

Note: 2012 and prior shown before revised allocation of corporate and shared costs

45

46

Exhibitor fees

Admissions & other

Exhibitions revenue by segment


| 48

Exhibitions: global industry landscape

48

• Large global industry

• Highly fragmented: top 10 organisers account for <20%

• Reed Exhibitions: a global leader

6%5%

Informa

$34bn in 2019*

Reed Exhibitions

2%

Messe Frankfurt

Messe DusseldorfMesse Munich

Comexposium

1%1%

*Source: AMR

Clarion Events

Hyve1%1%1%

Deutsche MesseGL Events

1%1%

Exhibitions: revenue by sector

57%

Media and Communications, 14%

Engineering Manufacturing & Distribution, 13%

Medical, Health & Beauty, 12%

Homes, 11%Property, 8%

Travel, 7%

Recreation, 5%

Jewellery, 4%

Construction, 4%

Environment and Natural Resources, 4%%

Food, 4%

Business Services, 3%

IT and Telecoms, 3%

Aerospace and Marine, 2%Fashion, 1%

Art, 1% Other, 5%

Reed Exhibitions revenues by sector (2018-2019 average)

49

366

529

2007 2017

Exhibitions: stand-alone exhibitions – active portfolio development

Annual portfolio development 10 year average

Launches +35Acquisitions +17Combined additions +52Cancellations -29Divestments -7Combined reductions -36Net additions +16

+163

50Extracted from Exhibitions teach in on 9 November 2017

Exhibitions: cycling impact

Revenue growth 2014 2015 2016 2017 2018 2019

Total at constant currencies +11% +1% +9% +1% +12% +2%

Impact of portfolio changes +2% +1% +1% +1% +1% +2%

Underlying with cycling +9% 0% +8% 0% +11% 0%

Impact of cycling shows +2% -5% +3% -6% +5% -6%

Underlying +7% +5% +5% +6% +6% +6%

51

RELX Technology

52

53

Technology: What do we mean by technology at RELX?

Structuredrecords

Unstructuredrecords

Newsarticles

Proprietarydata

Publicrecords

Primary research

Contributory databases

• Grid computing with low‐cost servers

• Data‐centric languages (brings to code to the data)• Linking algorithms that generate high precision and recall

• Machine learning algorithms to cluster, link and learn from the data

• Integrated delivery system for high speed data fabrication without compromising high‐speed data retrieval

BigData

Unstructured and structured content Big Data platforms Analysis applications Sample capabilities

• Over 3 petabytes of content

• 10s of billions of records

• 100s of thousands of sources

• Billions of unique name & address combinations

• Scoring models & attributes

• Social graphs to identify patterns

• Visualisations to represent clusters, links & graphs of entities

• Scientific author disambiguation

• Recommendation engines

• Identity verification

• Fraud detection and prevention

• Case outcome prediction

• Know your customer

Fusion

Linking

Refinery

Complex analysis

Clustering analysis

Link analysis

Entity resolution


54

Technology: RELX technology capabilities

• $1.4bn annual technology spend• c9,000 technologists; c50% software engineers

• Technology agnostic• Leverage approaches across RELX• Attract and retain talent

Technology: knowing how to create insights from big data is a core capability

55Extracted from Risk & Business Analytics teach in on 8 November 2018

Tax liens, felonies,

bankruptcies

Source data

Professional licenses

Landline & cell phone

Bureau header data

Property deeds

Court judgments

Voter registration

Matched data sets Attributes & Scores

• Summarise a particular characteristic of a consumer

• Examples include:– Number of addresses– Tax assessed residence value

Primary attributes

Compiled records for more than 250m identities

Compiled records for more than 250m identities

Composite attributes

• Summarise aggregate consumer behaviour (wealth, income, mobility)

• Created by combining primary attributes

Scores

• Industry specific scores

• Custom scores

Other (education, etc)

R&BA example

Other financial information

56

Revenue

*including 6% cycling-out effects

Year to 31 December2018

£m2019

£m change

change constantcurrency

change underlying

Scientific, Technical & Medical 2,538 2,637 +4% +1% +2%

Risk & Business Analytics 2,117 2,316 +9% +5% +7%

Legal 1,618 1,652 +2% -1% +2%

Exhibitions 1,219 1,269 +4% +2%* +6%

RELX 7,492 7,874 +5% +2% +4%

57



£m2019

£m change


change underlying

Scientific, Technical & Medical 942 982 +4% +2% +3%

Risk & Business Analytics 776 853 +10% +5% +8%

Legal 320 330 +3% +1% +8%

Exhibitions 313 331 +6% +4% -1%

Unallocated items (5) (5)

RELX 2,346 2,491 +6% +3% +5%

58

Adjusted operating margin

Year to 31 December 2018 2019

Scientific, Technical & Medical 37.1% 37.2%

Risk & Business Analytics 36.7% 36.8%

Legal 19.8% 20.0%

Exhibitions 25.7% 26.1%

RELX 31.3% 31.6%

59

Income statementYear to 31 December

2018£m

2019£m change


change underlying

Revenue 7,492 7,874 +5% +2% +4%Adjusted operating profit 2,346 2,491 +6% +3% +5%Adjusted operating margin 31.3% 31.6%Adjusted net interest expense (201) (291)Effective interest rate 3.2% 4.5%*Adjusted profit before tax 2,145 2,200 +3% 0%Adjusted tax charge (465) (388)Adjusted tax rate % 21.7% 17.6%**Adjusted net profit 1,674 1,808 +8% +5%Reported net profit 1,422 1,505 +6%

Adjusted earnings per share 84.7p 93.0p +10% +7%Reported earnings per share 71.9p 77.4p +8%*includes effect of one-off £99m charge relating to bond redemption; 2.9% excluding this effect**includes effect of one-off tax credit of £89m, resolving historical tax issues; 21.7% excluding this effect

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Free cash flow


£m2019

£mAdjusted operating profit 2,346 2,491Depreciation* 364 389Capital expenditure (362) (380)Repayment of lease principal (net) (81) (85)Working capital and other items (24) (13)Adjusted cash flow 2,243 2,402Cash flow conversion rate 96% 96%Cash interest paid (155) (171)Cash tax paid (428) (483)Acquisition related costs** (67) (48)Free cash flow 1,593 1,700

*Includes depreciation of leased right-of-use assets of £82m (2018: £77m)**Net of cash tax relief

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Uses of free cash flow

*Includes pension deficit payments, option proceeds, share purchases by the employee benefit trust, leases, acquisition and disposal timing effects, cash taxes on disposals and the net debt impact of the bond redemption


£m2019

£mFree cash flow 1,593 1,700

Disposals: total consideration 45 63Acquisitions: total consideration (978) (416)Dividends (796) (842)Share buybacks (700) (600)Other* (53) (190)Currency translation (246) 271

Movement in net debt (1,135) (14)

Net debt at 31 December (including leases) (6,177) (6,191)Net debt / EBITDA (including leases and pensions) 2.4x 2.5xNet debt / EBITDA (excluding leases and pensions) 2.2x 2.2x

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Currency profile

Revenue by geographic market2019

NorthAmerica

56%

UK7%

Rest ofworld21%

Rest of Europe

16%

• Revenue by currency broadly matches geographic split

• Hedging smooths volatility in sterling reported results

• Exchange rates impact on FY 2019 sterling adjusted EPS growth positive relative to constant currency

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Documents

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