ubs media week conference 2003

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

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Ree

d E

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ier

$7.8$7.8

Th

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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

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Du

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tB

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2002 revenues 2002 revenues ($ bn)($ bn)

$4.8$4.8

McG

raw

-Hill

McG

raw

-Hill

$4.5$4.5V

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VN

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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


Focus on market segmentationFocus on market segmentation Maintain strong law schools programmeMaintain strong law schools programme Enhanced sales force effectivenessEnhanced sales force effectiveness


Margin improvement programmeMargin improvement programme Operational/fulfilment improvementsOperational/fulfilment improvements


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


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


Market research embedded in development Market research embedded in development and sales processand sales process

Strengthened Open Territories sales forceStrengthened Open Territories sales force


Greater focus on organisational efficiencyGreater focus on organisational efficiency Further supply chain savings targetedFurther supply chain savings targeted


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


#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


Disciplined customer feedback Disciplined customer feedback programmesprogrammes

Market segmentation and yield Market segmentation and yield managementmanagement

Enhanced sales force effectiveness Enhanced sales force effectiveness


Further supply chain savingsFurther supply chain savings US margin improvement programmeUS margin improvement programme


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

ubs media week conference 2003

Documents