Relx PLC · LSE:REL
Relx — H1 2020 Earnings Presentation
17 slides from Relx's earnings presentation, Jul 23, 2020
Slide 1: Interim results 2020
Interim results 2020 Erik Engstrom, CEO, and Nick Luff, CFO 23 July 2020 1 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 Exchan
Slide 2: Erik Engstrom, CEO
Erik Engstrom, CEO GQRELX GQRELX
Slide 3: RELX H1 2020 progress; revenue by format
RELX H1 2020 progress • Financial performance – Three largest business areas held up well: underlying revenue and operating profit growth; cash conversion in line with recent years – Exhibitions impacted significantly by COVID-19 • Operational and strategic progress – Health and safety of colleagues
Slide 4: Scientific, Technical & Medical; Risk & Business Analytics
Scientific, Technical & Medical Underlying growth Revenue • Positive underlying revenue growth despite COVID-19 related print distribution issues • Electronic underlying revenue growth +4%; print -17% +2% +1% +1% • Primary research subscription renewal completion in line with recent years; FY 2019 H
Slide 5: Legal; Exhibitions
Legal Underlying growth Revenue • Positive underlying revenue growth despite COVID-19 related print declines • Electronic revenue growth of +4% reflects strong start to year and legal analytics growth; print -19% +2% +2% +1% • Underlying profit growth ahead of revenue growth; unchanged margin reflec
Slide 6: Strategic direction: Portfolio reshaping
Strategic direction: Portfolio reshaping Selective acquisitions: Targeted data, analytics and exhibition assets that support our organic growth strategies • In H1 2020 completed 7 acquisitions; total consideration £720m; including Emailage and ID Analytics Selective disposals of non-strategic assets
Slide 7: H1 2020 financial highlights; Revenue
H1 2020 financial highlights Income statement highlights • Revenue growth at constant currency -12% • Adjusted operating profit growth at constant currency -27% • Adjusted operating profit margin 26.8% • Adjusted EPS change at constant currencies -23% Cash flow and balance sheet highlights • Adjuste
Slide 8: Adjusted operating profit; Adjusted operating margin
Adjusted operating profit change 2019 2020 constant change 6 months to 30 June £m £m change currency underlying Scientific, Technical & Medical 445 467 +5% -1% +1% Risk 422 445 +5% +3% +4% Legal 149 150 +1% 0% +12% Exhibitions 231 (117) nm nm nm Unallocated items (7) (6) RELX 1,240 939 -24% -27% nm
Slide 9: Income statement; Free cash flow
Income statement change 2019 2020 constant 6 months to 30 June £m £m change currency Revenue 3,888 3,501 -10% -12% Adjusted operating profit 1,240 939 -24% -27% Adjusted operating margin 31.9% 26.8% Adjusted net interest expense (97) (81) Effective interest rate 3.1% 2.2% Adjusted profit before tax
Slide 10: Uses of free cash flow; Debt and liquidity
Uses of free cash flow 2019 2020 6 months to 30 June £m £m Free cash flow 794 596 Disposals: total consideration 45 12 Acquisitions: total consideration (246) (720) Dividends (578) (617) Share buybacks (400) (150) Other* (89) (26) Currency translation 11 (415) Movement in net debt (463) (1,320) Net
Slide 11: Exhibitions status and 2020 event schedule
Exhibitions Exhibitions status 2020 (revenue) Taken place 15% Cancelled (73 events) 30% (159 events) Postponed to H2 2020 20% (74 events) Postponed to 2021 5% In H2 as planned (6 events) 30% (178 events) Weighted by originally expected revenue 21 21 Exhibitions 2020 event schedule Current schedule o
Slide 12: Exhibitions 2020 revenue and cost
Exhibitions 2020 revenue and cost £m H1 2019 FY 2019 H1 2020 Revenue 684 1,269 201 Cost (480) (986) (323) Wholly owned profit contribution 204 283 (122) JV contribution 27 48 5 Adjusted operating profit 231 331 (117) • 2020 originally expected to include 5 percentage points of positive events cyclin
Slide 13: Summary; Appendices
Summary • Three largest business areas holding up well; underlying revenue and operating profit growth in first half; full year outlook varies by customer market • Exhibitions significantly impacted by COVID-19; outlook for remainder of 2020 remains highly uncertain 25 25 Appendices 27 STM: revenue
Slide 14: STM and Risk & Business Analytics revenue split
Scientific, Technical & Medical H1 2020 revenue £1,276m Format Geography Type Print Advertising 12% 2% Rest of world Transactional 32% North 20% America 45% Electronic Europe Subscription 88% 23% 78% 27 27 Risk & Business Analytics H1 2020 revenue £1,209m Format Geography Type Face-to-face Print Res
Slide 15: Legal and Exhibitions revenue split
Legal H1 2020 revenue £815m Format Geography Type Print Rest of world 12% 10% Transactional 22% Europe 20% Electronic Subscription North America 88% 78% 70% 29 29 Exhibitions H1 2020 revenue £201m Format Geography Source Electronic Admissions 3% Rest of world North America & other 57% 19% 29% Face-t
Slide 16: Reconciliation of operating profit; Balance sheet
Reconciliation of operating profit Adjusted to reported 2019 2020 6 months to 30 June £m £m change Adjusted operating profit 1,240 939 -24% Adjustments: Amortisation of acquired intangible assets (147) (164) Acquisition related costs (38) (26) Reclassification of tax in joint ventures (7) (2) Report
Slide 17: Exchange rates and shares outstanding
Exchange rates and shares outstanding At 31 Dec At 30 June Average Average Average 2019 2020 H1 2019 FY 2019 H1 2020 Exchange rates £:$ 1.33 1.24 1.29 1.28 1.26 £:€ 1.18 1.10 1.15 1.14 1.14 Shares outstanding Total: 1,932m 1,925m 1,952m 1,944m 1,927m 33 33