Reed Elsevier NV — Investor Day (May 2011)
96 slides from Reed Elsevier NV's investor day presentation, May 10, 2011
Slide 1: LexisNexis Risk Solutions Investor Seminar
LexisNexis Risk Solutions Investor Seminar May 10, 2011 London Risk Solutions
Slide 2: 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 a number b off risks i k and d uncertainties t i ti that th t c
Slide 3: LexisNexis Risk Solutions: Major part of Reed Elsevier today
LexisNexis Risk Solutions: j part Major p of Reed Elsevier todayy Business Business Information Information Exhibitions Exhibitions Science & Medical Legal & Science & P f i Professional l Medical Legal & Professional Risk Solutions Risk Solutions 15% 23% Note: 2010 pro forma split of adjusted opera
Slide 4: Agenda
Agenda Introduction Erik Engstrom Business Overview Jim Peck Insurance Solutions Jeffrey Glazer Q&A Business Services Rick Trainor Technology h l Armando d Escalante l Government Solutions Woody Talcove Screening Solutions Jim Peck Concluding Remarks Jim Peck Q&A Risk Solutions 4
Slide 5: What is LexisNexis Risk Solutions?
What is LexisNexis Risk Solutions? • 20+ 20 years off operating ti history hi t serving i attractive, tt ti hi high h growth th US markets k t • Provider of risk‐related information and analytics with leading positions in i insurance, fi financial i l services, i corporate, government, andd screenin
Slide 6: A long history of growth through organic development and focused acquisitions
A long history of growth through organic development and q focused acquisitions 2009‐ 2010: Ongoing integration and technology migration of ChoicePoint Accelerating product innovation and development in adjacencies 2008: Acquired ChoicePoint Completed LN public records migration to HPCC 2005‐2007: E
Slide 7: We help our customers manage risks to operate more safely and grow
We help our customers manage risks to operate more safely, effectivelyy and cost efficiently, y, and to grow g their business Reduce risk and improve performance in critical business processes through more informed decisions on customers, suppliers and employees Prevent fraud and ensure regulatory c
Slide 8: Key assets and capabilities
Key assets and capabilities • Mission‐critical contributory insurance databases Data • Most comprehensive database of US public records • Advanced analytics for identity verification, linking and Technology risk decisioning • Industry‐leading “Big “ Data”” technology • Deep industry knowledge and ex
Slide 9: We configure our capabilities to deliver unique solutions across our verticals
We configure our capabilities to deliver unique solutions across our verticals Corp & Insurance Financial Other Mkts Gov’tt Gov Screening • Solutions tailored to industry needs • Products leverage common content and infrastructure Product application layer • Output integrated with client systems • P
Slide 10: LexisNexis Risk Solutions verticals and customers
LexisNexis Risk Solutions verticals and customers 2010 LN Risk Solutions Revenue = $1,435m $1 435m Our customers: Screening • c 100% of US P&C insurance carriers c.100% Solutions Gov’t $170m • 38 of the top 50 US banks $106m Corp & • 90% of the Fortune 500 Other Mkts Insurance $188m $703m • All 50 U
Slide 11: Risk Information industry size and other key participants
Risk Information industry size and other key participants Risk Information Industry ($7bn in 2010) Altegrity, First Advantage, Core Logic Verisk Altegrity, Thomson Reuters Fair Isaac, Fidelity Experian, Equifax, TransUnion LN Risk Solutions related markets D&B, Fair Isaac, First Data Source LN Estim
Slide 12: Key market growth drivers
Key market growth drivers • Increased carrier competitiveness driving higher g spending p g on data Screening and analytics to improve underwriting economics • High Hi h policy li switching it hi Insurance driven by carrier Government competition and online quoting and transacting • 35‐40% of insura
Slide 13: Key market growth drivers
Key market growth drivers • Increasing credit originations • Increasing regulation and enforcement,, with a 167% growth in fines in 2010 • High levels of delinquent debt ($74bn in charged‐ off consumer debit in 2010) • Approximately i l 35m “underbanked” consumers with little or no credit dit hi his
Slide 14: Key market growth drivers
Key market growth drivers • Continuing growth in online retail sales; 15% growth in 2010 • Online fraud losses; $2.7bn in 2010 • Increasing adoption of data and analytics to drive efficiencies and effectiveness Risk Solutions 14
Slide 15: Key market growth drivers
Key market growth drivers • Sustained efforts to protect the p homeland from terrorists and others who may do harm • Severe budget deficit issues driving increased focus on cost reduction and revenue raising • Increasing emphasis on reducing d i fraud, f d waste & abuse Risk Solutions 15
Slide 16: Key market growth drivers
Key market growth drivers • Employers’ increasing use of external screening providers, particularly in the mid‐market • Hiring growthh off 5% despite relatively high unemployment Risk Solutions 16
Slide 17: Attractive financial performance
Attractive financial performance Pro‐forma Pro forma Revenue 2010 Results $m CAGR 2005‐10 Revenue +5% 5% $1 435m $1,435m Underlying Revenue Growth 6% Adjusted Operating Profit $549m Margins 38.2% ROIC 8.5% Pro forma profit, margin, ROIC Note: Chart includes pro‐forma revenue with ChoicePoint Risk So
Slide 18: Operations
Operations • Costs are directed towards enhancing our capabilities and revenue‐generating activities • Costs are primarily people related (56%) Operational Costs (2010 = $886m) Primary Locations Other* Technology & Connecticut Product D l Development t Ohio Sales & Illinois Marketing North Carolina
Slide 19: Speed and efficiency of technology drives operational efficiency and profit gearing
Speed and efficiency of technology drives operational efficiency and profit gearing Revenue per Employee Technology Expenses vs. Processing $k 350 Indexed to 100 325 287 200 300 253 Processing volumes 238 250 150 200 100 150 Technology expenses 100 50 50 0 0 2007 2008 2009 2010 2008 2009 2010 Note:
Slide 20: Growth Agenda
Growth Agenda New product introductions that improve customer economics Drive deeper into existing markets through innovative new applications and increased penetration across customer workflows E Expand d into i t attractive tt ti adjacent dj t US markets k t Address international opportunities in
Slide 21: Agenda
Agenda Introduction Erik Engstrom Business Overview Jim Peck Insurance Solutions Jeffrey Glazer Q&A Business Services Rick Trainor Technology h l Armando d Escalante l Government Solutions Woody Talcove Screening Solutions Jim Peck Concluding Remarks Jim Peck Q&A Risk Solutions 21
Slide 22: LexisNexis is a leading provider of data and analytics to the insurance industry
LexisNexis is a leading provider of data and analytics, claims g management, , and software solutions to the insurance industryy Who we serve • c.100% US Property & Casualty carriers • Primary presence in auto and home insurance Capabilities we provide • Contributory databases of claims history and
Slide 23: LexisNexis Risk Solutions is a leader in analytics for P&C insurance carriers
LexisNexis Risk Solutions is a leader in data and analytics solutions for property p p y and casualtyy insurance carriers Our expertise and product solutions enable carriers to: • Make better and faster risk underwriting decisions • Make more accurate policy pricing decisions at issue and renewal •
Slide 24: Carrier activities associated with data and analytics
Carrier activities associated with data and analytics MARKETING CONTACT QUOTE UNDERWRITING RENEWAL COMPLIANCE CLAIM Insurer Carrier System ‘Pull’ on Insurance Value added analytics y D t Infrastructure Data I f t t Overlay additional info Output tailored to insurer’s to further refine results system
Slide 25: C.L.U.E. – Claim Loss Underwriting Exchange
C.L.U.E. – Claim Loss Underwriting Exchange A contributory database for the P&C insurance industry containing the vast majority of auto insurance and homeowner claims in the United States C.L.U.E. • 20 years of data with more than 277m • Claims claims records contributed history for underwriting • C
Slide 26: Expanding the core CLUE offering into carrier workflows
Starting with the contributory CLUE database, we have expanded the core offering o e g aandd beco become e deep deeplyy e embedded bedded into to ca carrier e workflows o o s Analytics and Integration Other Data Into Carrier Sources: Intelligence: Workflows • Policy Data • Insurance • Marketing (con
Slide 27: Insurance carrier dynamics support growing demand for our products
Insurance carrier dynamics support growing demand for our products p and capabilities • Increasing competition among carriers and profit pressures driving strong appetite for data and analytics to improve underwriting economics and process efficiency • Increased “straight through processing” in pers
Slide 28: New product innovation has been a major driver of growth
New product innovation aimed at our customers’ evolving needs has been a major driver of strong, sustained growth $m Marketing Marketing Prefill █ New Product Intro Prop Prefill ATTRACT 3.0 Data Prefill Foreclosure InsurView Life MVR Predictor Non-Credit Commercial DHDB 2.0 SubroFocus Data Claims Da
Slide 29: Deeper integration across carrier workflows
We continue to drive growth through deeper integration across carrier workflows Workflow: MARKETING CONTACT QUOTE UNDERWRITING RENEWAL COMPLIANCE CLAIM Penetration: Low Medium Medium High Medium Medium Medium Growth Growth • Products deeply embedded in customers workflows workflows, providing critic
Slide 30: Critical tools and data enable accurate and efficient assessment of risk
Critical tools and data enable accurate and efficient assessment of risk MARKETING CONTACT QUOTE UNDERWRITING RENEWAL COMPLIANCE CLAIM Point of Quote: Data and analytics necessary to evaluate risk for accurate quoting and to minimize customer frustration Point of Underwriting: Necessary information
Slide 31: Tools to identify and contact potential customers
Variety of tools assist carriers in identifying and contacting potential customers p MARKETING CONTACT QUOTE UNDERWRITING RENEWAL COMPLIANCE CLAIM Point P i off Marketing: M k i Provide P id lleadd generation i services i and d analytic l i capabilities bili i iincluding l di didirect mail and custo
Slide 32: Auto Data Prefill
Auto Data Prefill *Data entered: Name, Address, and Date of Birth to execute Auto Data Pre‐Fill… 50% of insurance applicants abandon online quotes Data Pre‐fill allows consumers to use 3 simple inputs for quoting, minimizing the likelihood of abandonment b d t Risk Solutions 32
Slide 33: Auto Data Prefill
Auto Data Prefill *Interface returned 2 additional drivers in household… Driver identification ensures a more complete and accurate quote Risk Solutions 33
Slide 34: Auto Data Prefill
Auto Data Prefill *Interface returned 2 vehicles in household… Vehicle identification avoids cumbersome process of finding VIN data; reduces VIN errors Risk Solutions 34
Slide 35: Auto Data Prefill
Auto Data Prefill *Pre‐filled limits based on current insurance policy. At this point the agent has only entered Name, Address, DOB… Current policy limits and deductible ensure comparable quote Risk Solutions 35
Slide 36: Auto Data Prefill
Auto Data Prefill *Verify applicant info and order underwriting data products such as CLUE, Current Carrier, MVR and Attract Insurance Score… Agent can order verification data in real time Risk Solutions 36
Slide 37: Auto Data Prefill
Auto Data Prefill Closing the deal... Policy is quoted and bound seamlessly Risk Solutions 37
Slide 38: Streamline reporting requirements to improve compliance and reduce expenses
Streamline burdensome reporting requirements to improve p compliance and reduce associated expenses p MARKETING CONTACT QUOTE UNDERWRITING RENEWAL COMPLIANCE CLAIM Point P i t off Compliance: C li S i Services and d ttools l reduce d reporting ti b burdens d ffor carriers i andd llower th their i as
Slide 39: Insights and workflow tools enable efficient claim adjudication
Essential insights and workflow tools enable accurate, efficient cclaim a adjudication adjud cat o MARKETING CONTACT QUOTE UNDERWRITING RENEWAL COMPLIANCE CLAIM Point P i off Claim: Cl i Provide P id access to data d and d tools l to iinvestigate i the h claim l i and d adjudicate dj di it i quickly
Slide 40: A leader in software solutions to commercial insurance carriers
A leader in software solutions to commercial insurance carriers Provide commercial P&C carriers with software and services to run their business effectively: • Full suite of policy administration functionality addressing all core insurance carrier workflows • Policy rate and rule content for all 50
Slide 41: Strong revenue performance
Strong revenue performance Insurance Solutions Pro Pro‐forma forma Revenue $m CAGR • Growth driven by: 2005‐10 – Market growth +10% – New product innovation – Expansion E i across th the carrier i workflow • Industryy demand for information remains strong through economic cycles – Industry focus shi
Slide 42: Growth Agenda
Growth Agenda Continuous new product innovation to improve economic outcomes of insurance carriers and intermediaries Increase penetration across carrier workflows, from marketing and point of contact through g underwritingg to claims Expand into attractive adjacent US markets Address international
Slide 43: Example: New Segment in Core US Markets – The Insurance Exchange
Example: New Segment in Core US Markets – The Insurance Exchange Current Insurance Environment • Significant inefficiency exists in the commercial insurance submission process • A typical policyholder often seeks 3 or more competitive quotes through a broker • Matching the risk requires multiple sub
Slide 44: Example: International Opportunities – UK
Example: International Opportunities – UK Current UK Insurance Environment • Price Price‐competitive competitive insurance market with aggressive consumer shopping and significant policy switching • Unlike the US, the UK auto insurance market relies heavily on self‐reporting by the applicant for: –
Slide 45: Agenda
Agenda Introduction Erik Engstrom Business Overview Jim Peck Insurance Solutions Jeffrey Glazer Q&A Business Services Rick Trainor Technology h l Armando d Escalante l Government Solutions Woody Talcove Screening Solutions Jim Peck Concluding Remarks Jim Peck Q&A Risk Solutions 45
Slide 46: Agenda
Agenda Introduction Erik Engstrom Business Overview Jim Peck Insurance Solutions Jeffrey Glazer Q&A Business Services Rick Trainor Technology h l Armando d Escalante l Government Solutions Woody Talcove Screening Solutions Jim Peck Concluding Remarks Jim Peck Q&A Risk Solutions 46
Slide 47: Business Services shared data assets for financial and corporate markets
Business Services uses shared data assets and capabilities to create risk p solutions for the financial and corporate markets Who we serve Wh 2010 revenues: $456m • 38 of the 50 largest • 4 of the 10 largest US banks US retailers • Nearly all of the top • 8 of the 10 largest US debt collectors US te
Slide 48: Expanding core offerings and embedding into customer workflows
Building from public record databases, LexisNexis has expanded its core g and become deeply offerings p y embedded into customer workflows Integration Analytics and Into Customer Products: Workflows Created • Industry specific •Multiple access options Content: • Problem specific Obtained – Real‐time
Slide 49: Proven history of innovation in content, products and workflow solutions
We have a proven history of innovation in content, products and workflow solutions Examples: • Accurint • Accurint for Collections • FraudPoint • Chargeback Defender • People at Work • RiskView • Smartlinx Reports • Criminal Data • Sanctions List • ProCheck • Phones Plus • Account Monitoring 2000 20
Slide 50: Example: LexisNexis Accurint
Example: LexisNexis Accurint Accurint brings our database to life through multiple search options Can search by individual, entity, or topic Risk Solutions 50
Slide 51: Example: LexisNexis Accurint
Example: LexisNexis Accurint Searches require only a small amount of input information In this example, p , a name and last known address are entered Risk Solutions 51
Slide 52: Example: LexisNexis Accurint
Example: LexisNexis Accurint And provide a consolidated view of an individual Current Phones We Also Found And multiple reports are available Input Address Summary information is returned Risk Solutions 52
Slide 53: Example: LexisNexis Accurint
Example: LexisNexis Accurint Reports can be customized Risk Solutions 53
Slide 54: Example: LexisNexis Accurint
Example: LexisNexis Accurint A comprehensive report provides all records on a subject Summary links to all available data Multi‐page report provides all available records Risk Solutions 54
Slide 55: Example: LexisNexis Accurint
Example: LexisNexis Accurint Singular reports are also available on a variety of topics Best phone Court filings Employment Vehicle registrations Risk Solutions 55
Slide 56: Solutions address key stages of customers' account management
Solutions address key stages of our customers’ account management ACCOUNT ACQUISITION ACCOUNT OPENING ACCOUNT MANAGEMENT ACCOUNT CLOSING • Prioritize potential • Verify identity and • Reduce account fraud • Locate and contact customers for prevent fraud • Identify assets debtors and associates marke
Slide 57: Example use case: Credit Risk
Example use case: Credit Risk Situation: • A telecom wants to distinguish g ggood credit risks from bad in the population p p that has no credit historyy Customer pain point: • c. 35m US adults are under‐banked and do not have a credit score available from a bureau Solution: • Using non‐credit sourc
Slide 58: Example use case: Anti-Money Laundering (AML) Compliance
Example use case: Anti‐Money Laundering (AML) Compliance Situation: • Financial institutions are required q byy law to know with whom theyy are doingg business Customer pain point: • Manually screening and researching each customer is highly resource intensive; errors are costly Solution: • LexisNex
Slide 59: Example use case: Fraud Prevention
Example use case: Fraud Prevention Situation: • Retailers seek to reduce p purchase fraud in their online channels Customer pain point: • When a card is not present, the merchant is responsible for fraudulent purchases ($2.7bn in 2010) Solution: • LexisNexis Retail Fraud Manager flags high risk tran
Slide 60: Example use case: Debtor Management
Example use case: Debtor Management Situation: • A collection agency g y has received a new p portfolio and will be paid p commission on recoveryy Customer pain point: • The majority of accounts will not yield any value; traditional credit reports are not insightful given delinquency status (“all sc
Slide 61: Specialty Services represents other market opportunities for our data assets
Specialty Services represents other market opportunities for our data assets Data Licensingg Services 2010 revenues: $456m • Marketing of our national files for bankruptcy, liens and judgments to other data providers, suchh as credit dit b bureaus Specialty VitalChek Services • Provides services for
Slide 62: Our value proposition drives growth
Our value proposition drives growth Business us ess Se Services ces Pro‐Forma o o a Revenue e e ue CAGR • Growth driven by: $m 2005 10 2005‐10 – Market growth 500 – New product innovation +3% 450 – Expansion into new markets 400 350 • Financial crisis and recession 300 reduced 2009 revenue; impact w
Slide 63: Strong market fundamentals
Strong market fundamentals 2010 Key Metrics • Growth in credit underwriting 140% Increase in credit card mailings • Large population of under‐banked ~35m consumers with little or no credit history US residents without a traditional credit score • Increasing regulation and enforcement off fi financia
Slide 64: Growth Agenda
Growth Agenda Continued new product innovation to improve economic outcomes of customers: – More effective risk decisioning around individuals and customer acquisition – Greater process efficiency – Improved regulatory compliance Add new content, develop new technology capabilities to expand opportu
Slide 65: Agenda
Agenda Introduction Erik Engstrom Business Overview Jim Peck Insurance Solutions Jeffrey Glazer Q&A Business Services Rick Trainor Technology h l Armando d Escalante l Government Solutions Woody Talcove Screening Solutions Jim Peck Concluding Remarks Jim Peck Q&A Risk Solutions 65
Slide 66: Our technology stack sits in the center of our solution generation model
Our technology stack sits in the center of our solution generation model; “Bigg Data” capabilities p are critical to our success Corp & Insurance Financial Other Mkts Gov’tt Gov Screening Technology highlights Product application layer • Ingests over 34bn records and converts into structured profile
Slide 67: Our technology platform is Better, Faster, Cheaper
Our technology platform is “Better, Faster, Cheaper” • Better: Advanced linking ability improves Analytical • Proprietary algorithms, data quality and frees up resources Modules written in proprietary big data language (ECL) Produces superior products • Proprietary Big Data • Faster: High speed of p
Slide 68: HPCC's advantages derive from two primary components
HPCC’s advantages are derived from two primary components that form g an integrated deliveryy system y Cluster Computing p g Data‐centric language g g (ECL) ( ) Integrated g Deliveryy System y Splits problems into pieces to be “Big Data” language brings the Consistent approach across data worked in
Slide 69: HPCC's superiority demonstrated in multiple ways
HPCC’s superiority demonstrated in multiple ways Internal Systems US Defense Benchmarking Improvement Department Projects • Migrating ChoicePoint to • In a project for the US • In a head to head test (1TB HPCC and reducing number of Government, HPCC sorted sort on 400 node cluster), databases from 3
Slide 70: Our technology team is a central part of innovation
Our technology team is a central part of innovation Technology gy innovates for the business and meets business wants • Data intelligence (e.g. • Data ingestion profile indicators)) p • Data linking • Non‐obvious relationships Business Units (e.g. neighbors and • Product upgrades pg Tecchnology asso
Slide 71: Beyond internal customers, we challenge our thinking through outside relationships
Beyond our internal customers, we challenge our current thinking g outside technology through gy relationships p Thought partners System customers • Application d l development t • Use case expansion • Limit testing • Benchmarking • Talent development Risk Solutions 71
Slide 72: Technology cost benefits: expenses down despite strong processing growth
We continue to derive technology cost benefits; our expenses have gone p strongg p down despite processingg volume ggrowth Indexed to 100 200 Processing volumes 150 100 50 Technology expenses 0 2008 2009 2010 Risk Solutions 72
Slide 73: Technology summary
Technology summary • Applied “big data” technology Industry’s best system powering our business and intelligently structuring our content • Better, faster, cheaper Superior processing and linking allows us to produce leading products that are d l developed d faster f and d at a lower l cost • Cultur
Slide 74: Agenda
Agenda Introduction Erik Engstrom Business Overview Jim Peck Insurance Solutions Jeffrey Glazer Q&A Business Services Rick Trainor Technology h l Armando d Escalante l Government Solutions Woody Talcove Screening Solutions Jim Peck Concluding Remarks Jim Peck Q&A Risk Solutions 74
Slide 75: Leading provider of public record information to the US Government
Leading provider of public record information to the US Government with a focus on p program g integrity, g y, identityy assurance and locate services Who we serve 2010 revenues: $106m – The 30 largest – 49 out of 50 States Dept. State & Local US Law of Revenue Enforcement Agencies – 47 out of 50 St
Slide 76: Data and analytics to law enforcement and intelligence agencies
We provide data and analytics to law enforcement and g intelligence agencies g 2010 revenues: $106m We provide investigative tools that enable users to: • Uncover criminal patterns and locate people of interest • Understand the network among potential criminal organizations • Confirm identities and
Slide 77: Investigative solutions used by over 4,000 law enforcement agencies
Award‐winning investigative solutions are used by over 4,000 federal, state, and local law enforcement agencies LexisNexis Investigative Solutions featured in the President’s briefing at the NYC Real Time Ci C Crime Center Robust features include: • Best‐in‐class investigative and locate capabilitie
Slide 78: Investigative Example – Locating a Suspect
Investigative Example – Locating a Suspect Search criteria: Person’s Social Security number or Full Name search for associated addresses Search results: 16 Records‐Layered on a map (red boxes=addresses) Mapping: Search results geospatially plotted for investigative analysis. Imported data (yellow do
Slide 79: Investigative Example – Understanding Linkages between Assets and People
Investigative Example – Understanding Linkages between Assets and p People Search criteria: Social Security Number: “059 059‐62‐ 62 XXXX” Search results: Relavint™ Visual Link Analysis Chart for Person of Interest. Risk Solutions 79
Slide 80: Example use case: Closing Cold Cases
Example use case: Closing Cold Cases Situation: • Prominent 1971 murder of Isadore Pacht remains unsolved for decades. decades Bronx Cold Case Squad re re‐ opens the case. Customer pain point: • Once case was re re‐opened, opened locating all persons of interest was an overwhelming task task. File l
Slide 81: Example use case: Fugitive Apprehension
Example use case: Fugitive Apprehension Situation: • Positively identified male, 30 years of age, is the subject of an intense fugitive apprehension effort by the h Oakland O kl d CCounty, Mi Michigan hi Sh Sheriff’s iff’ Offi Office. Customer pain point: • Warrant squad sergeant exhausted all leads
Slide 82: ROI generating solutions help governments mitigate fraud, waste and abuse
ROI generating solutions help governments mitigate risks of fraud, waste and abuse 2010 revenues: $106m We enable federal, state, and local governments to: • Collect more tax revenue by identifying those people who are breaking the law by fraudulently avoiding tax payments • Identify fraud rings tha
Slide 83: Example use case: Public Welfare Fraud
Example use case: Public Welfare Fraud Situation: • A US State was paying out over $30bn a year in welfare payments. The State auditors suspected that some of these payments were fraudulent. Customer pain point: • Verifying that the person claiming State welfare qualifies for the welfare benefit. So
Slide 84: Strong revenue performance
Strong revenue performance Government Solutions Pro Pro‐forma forma Revenue $m CAGR • Growth driven by new product 2005‐10 innovation and expansion into +4% new markets • Budget crisis in 2010 and ongoing impacts of the recession drove slight reduction in revenue • Expect return to growth driven by
Slide 85: Strong long-term market drivers
Strong long‐term market drivers • Criminals are becoming more sophisticated Law • Emphasis on increasing effectiveness and efficiency of law enforcement Enforcement / • Sustained efforts to protect the homeland from terrorists and others who Intelligence may do harm • 44 states and the District of C
Slide 86: Growth Agenda
Growth Agenda Sustain market leadership position in law enforcement and intelligence with differentiated data solutions and community tools Focus on expanding opportunities in the social services and tax and revenue space with tools to find fraud, waste and abuse Continued new product innovation to
Slide 87: Agenda
Agenda Introduction Erik Engstrom Business Overview Jim Peck Insurance Solutions Jeffrey Glazer Q&A Business Services Rick Trainor Technology h l Armando d Escalante l Government Solutions Woody Talcove Screening Solutions Jim Peck Concluding Remarks Jim Peck Q&A Risk Solutions 87
Slide 88: Leader in background checks and drug testing
Leader in background checks and drug testing for better staffing and es de decisions resident dec s o s Who we serve 2010 revenues: $170m • 30,000+ clients across multiple industries Capabilities we provide • Criminal record background check solutions using database products and verified court crimi
Slide 89: Industry leading scale and capabilities
Industry leading scale and capabilities • 14m+ background checks processed in 2010 • 1.8m drug screens performed in 2010 • Largest collector of criminal records from courthouses • Integrated platform (background, drug, verifications, etc.) • Standardized operating and service model with best‐in‐clas
Slide 90: Expanding beyond core offerings to satisfy evolving client needs
We have continued to expand beyond core offerings to satisfy evolvingg client needs and increase our market reach New Segments & Capabilities Enhanced Services • Applicant tracking work flow • Drugg / medical integration testing Core Screening • International • ID verification • Professional backgro
Slide 91: Screening is a cyclical business
Screening is a cyclical business Screening Solutions Pro‐forma Revenue $m 250 CAGR • US hiring activity is key driver; 2005‐10 200 ‐4% massive downturn in 2008 and 150 2009 impacted the business 100 50 • The business has recovered quickly with renewed hiring 0 2005 2006 2007 2008 2009 2010 growth, d
Slide 92: Growth Agenda
Growth Agenda Continue to deliver market leading quality and turn‐around times th through h a scalable, l bl consistent, i t t automated t t d delivery d li model d l FFurther h expand d iin attractive i market k segments; e.g. mid‐sized id i d corporate market, healthcare and other regulated indust
Slide 93: Agenda
Agenda Introduction Erik Engstrom Business Overview Jim Peck Insurance Solutions Jeffrey Glazer Q&A Business Services Rick Trainor Technology h l Armando d Escalante l Government Solutions Woody Talcove Screening Solutions Jim Peck Concluding Remarks Jim Peck Q&A Risk Solutions 93
Slide 94: LexisNexis Risk Solutions: Concluding Remarks
LexisNexis Risk Solutions: Concluding Remarks • A significant business business, integral to Reed Elsevier • Work closely with customers to manage risks to operate more safely, effectively, cost efficiently, and to grow their business • Serve attractive markets with strong growth drivers • Strong po
Slide 95: Agenda
Agenda Introduction Erik Engstrom Business Overview Jim Peck Insurance Solutions Jeffrey Glazer Q&A Business Services Rick Trainor Technology h l Armando d Escalante l Government Solutions Woody Talcove Screening Solutions Jim Peck Concluding Remarks Jim Peck Q&A Risk Solutions 95
Slide 96: LexisNexis Risk Solutions Investor Seminar
LexisNexis Risk Solutions Investor Seminar May 10, 2011 London Risk Solutions