Relx Plc · LSE:REL
Relx — Nomura Global Media Field Trip 2011
59 slides from Relx's conference presentation, June 2011
Slide 1: Nomura Global Media Field Trip
Nomura Global Media Field Trip New York June 2011
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 of risks and uncertainties that could cause actual res
Slide 3: Agenda
Agenda Science & Technology Jay Katzen Managing Director, Elsevier S&T Academic & Government Markets ICIS Jim Muttram Managing Director, RBI-UK Data Services Division Christopher Flook Managing Director, ICIS 3
Slide 4: Science & Technology
Science & Technology Nomura Global Media Field Trip Jay Katzen Managing Director, Academic & Government Markets
Slide 5: Elsevier: global leader in science and health information
Elsevier: global leader in science and health information • Founded 130 years ago Science & Technology Health Sciences £1 billion revenue £1 billion revenue • 2010 Revenues: £2 billion • Customers in 180 countries • ~6,700 employees in 24 countries • Serving more than 11 million researchers • Publis
Slide 6: Elsevier S&T started a new journey in 1998
Elsevier S&T started a new journey in 1998 ScienceDirect Scopus Scirus • Covers 25% of world’s • Largest collection of • The most comprehensive English language full text Abstracts and Indexes in the science-specific search STM literature in 24 fields of world engine on the Internet science • ~ 65%
Slide 7: Many forces shape a new research landscape for the Academic & Government markets
Many forces shape a new research landscape for the Academic & Government markets • Governments are implementing new research assessment frameworks Institution Policies • Demand for more accountability for research quality • Increased need to demonstrate R&D impact • Need for new metrics integration
Slide 8: Governments are actively guiding their national research agenda
Governments are actively guiding their national research agenda 8
Slide 9: Changes in the environment impact universities
Changes in the environment University Policies impact universities Science is Research is becoming more increasingly interdisciplinary competitive Attracting funding flows Education output Producing Outputs (direct societal impact, Attracting People A Research University securing funding) Education
Slide 10: Global landscape is changing
Global Landscape Global landscape is changing Countries ranked by published output in 2010 Source: Scopus United States: ~500K Output growth: 49% 1997 Rank: 1 China: ~330K Number of Articles Output growth: 710% 1997 Rank: 7 United Kingdom: ~140K Output growth: 58% 1997 Rank: 3 India: ~70K Output gro
Slide 11: Workflow changes
WorkflowProductivity Workflow Productivity Workflow changes Research now… • More multi-disciplinary • Crosses national boundaries • Exhibits high mobility of resources, people, ideas, technologies and infrastructure • Balances competition and collaboration • More competitive - increased funding pres
Slide 12: Technology enables new solutions
Technology Technology enables new solutions • Proliferation of access and discovery mechanisms for STM content; mobile access increasing • Use of semantic search, text mining, social networking and collaboration tools increasing • Computing power increasing to enable more real-time analytics on larg
Slide 13: Science & Technology mission defining a new future
Science & Technology mission defining a new future Scientific Publisher Scientific Information Solutions Provider Provide content driven information and workflow Contribute to the progress and solutions that help institutional application of science, by decision-makers and delivering superior inform
Slide 14: SciVerse will enable Elsevier and the community to deliver solutions
SciVerse will enable Elsevier and the community to deliver solutions to improve productivity and accelerate discoveries WEB PAGES 300 MILLION 14
Slide 15: Elsevier's Academic & Government solutions
Elsevier’s Academic & Government solutions SciVal Leveraging existing strengths, expanding to address customer needs around Performance, Planning, and Funding For those making tough decisions in today’s increasingly complex research environment, SciVal is a lens on the world’s research activity prov
Slide 16: SciVal delivers value across the research continuum
SciVal delivers value across the research continuum in universities and government agencies Expanded customer Established engagement customer base Research Executives Research Administrators Librarians Researchers Department Heads & Managers • Work closely with the institutional • Expand content cov
Slide 17: SciVal delivers value to S&T
SciVal delivers value to S&T • Address needs of senior decision makers in universities and government agencies Position Elsevier as • Enables S&T to expand relationships within our a solution provider customer community and enhances the value we deliver to institutions. and partner • Enables new rel
Slide 18: Elsevier technology, services & analytics, and content drive new solutions
Elsevier technology, services & analytics, and content drive new solutions HPCC from Risk Visualization Services & Agile Development Solutions Technology Analytics • On-the-fly • Dynamic • Time-to-market can • Implementation and generation of collaboration be as short as 4 integration with research-
Slide 19: SciVal's evolution over time
SciVal’s evolution over time 2008 2009 2010 2011 New tools and Supporting specialist Launch of first two tools Expansion through service capability research groups Collexis acquisition expansion P r o d u c t s P a r t n e r s 19
Slide 20: SciVal Experts helps institutions demonstrate and connect expertise
SciVal Experts helps institutions Use case 1a demonstrate and connect expertise Locate experts in an area of research at Johns Hopkins University Assess a researcher’s expertise and how it evolved over time 20
Slide 21: SciVal Funding increases efficiencies in seeking research funding
SciVal Funding increases efficiencies in Use case 1b seeking research funding A single search across funding opportunities and awarded grants from more than 3,500 funding bodies Retrieve targeted funding opportunities based on your research profiles 21
Slide 22: Integration across SciVal helps research administrators realize efficiencies
Integration across SciVal helps research Use case 1c administrators realize efficiencies Research administrators can distribute funding opportunities to research staff based on their expertise Research administrators can coordinate the grant writing to avoid duplicate and/or competing proposal 22
Slide 23: SciVal Spotlight helps identify underfunded research strengths
SciVal Spotlight helps identify areas of Use case 2a research strength that are underfunded Each circle represents an area where the university has a global leadership position • The larger the circle, the more articles are in that competency. • The location of each circle is documented by the prima
Slide 24: SciVal Spotlight helps identify strengths that are underfunded
SciVal Spotlight helps identify Use case 2b strengths that are underfunded Partial view of map Details of strengths identified from Six subject areas: Biology, Biotechnology, Infectious Disease, Medical Specialty, Health Sciences, Brain research Spotlight data 11 Identify areas in Life Sciences that
Slide 25: SciVal Spotlight helps identify strengths that are underfunded
SciVal Spotlight helps identify Use case 2c strengths that are underfunded Increase in funds or in middle of 5 High growth area, ongoing research 3 but disadvantage towards domestic peers Decrease funds 3 Relatively low growth 3 area, but has advantage towards domestic peers No funds gained 3 Streng
Slide 26: SciVal Spotlight informs recruitment, retention, and investment strategies
SciVal Spotlight informs recruitment, Use case 3a retention, and investment strategies Segment A Segment B How can we increase our market How can we defend our presence share in these research areas? in these research areas? Active “Recruitment” “Retain” key talent Market Size Growth Relative Articl
Slide 27: SciVal Spotlight and Strata inform recruitment strategies
SciVal Spotlight and Strata inform Use case 3b recruitment strategies Retrieve the researchers that contribute most to an area of research being a distinctive competency Current team What-if scenario: Current team – Key Researcher Measure the impact of a particular research leaves the institution (e
Slide 28: SciVal Reviewer Finder drives efficiencies and enables transparency
SciVal Reviewer Finder drives efficiencies Use case 4a and enables transparency by funding bodies Connect grant proposals with the best reviewers based on their prior history, expertise, and relationship to avoid conflict of interest National Heart Lung and Blood Institute (NHLBI) manages to absorb
Slide 29: SciVal Summary
SciVal Summary Customer Challenges • Research is more complex and more competitive • Institutions need more data to demonstrate ROI • Manual work done by internal FTEs for evaluation, but data is hard to find • Analytical expertise is limited • Traditional metrics need to be expanded to include othe
Slide 30: Executing the strategy to fulfill S&T's new vision
Executing the strategy to fulfill S&T’s new vision Scientific Publisher Scientific Information Solutions Provider Provide content driven information and workflow Contribute to the progress and solutions that help institutional application of science, by decision-makers and delivering superior inform
Slide 31: ICIS
ICIS Nomura Global Media Field Trip Jim Muttram Christopher Flook 31
Slide 32: RBI Data Services
RBI Data Services 2010 Revenue Elsevier £2,026m Reed Exhibitions LexisNexis Risk Solutions £693m £927m Major Marketing £718m Services £1,691m Major Data Reed Business Services 12% Leading LexisNexis Brands Legal and Professional Information 20% 31% 37% Business Magazines/ Services Source: 2010 full
Slide 33: RBI Data Services
RBI Data Services • Key businesses: ICIS, Bankers Almanac, XpertHR, Reed Construction Data • 83% online (revenue from news, data, analytics, workflow) • 79% subscription revenue with some PAYG, consultancy, conferences and training • Strong growth profile – organic and acquisition – 4% underlying gr
Slide 34: Evolution of Data Services
Evolution of Data Services Offline Online Workflow Analytics Time series Simple data Magazines, News Newsletters, Directories 1995 2011 34
Slide 35: RBI Data Services
RBI Data Services % total RBI revenue 20% 20% 15% 12% 12% 10% 0% 2007 2008 2009 2010 35
Slide 36: ICIS: Petrochemicals and Energy
• Market served: Petrochemicals and Energy • Geography: Global • Founded: 1980. Fax then email/online 1995 • Employees: 611 • Main claim: World-leading petrochemical and energy reporting agency. • Main products: Daily and weekly price reports, online access to price history and news, online analytic
Slide 37: Bankers Almanac: International Banking
• Market served: International Banking • Geography: Global • Founded: 1845 – online in 1999 • Employees: 178 • Main claim: A leading provider of reference data on the banking industry. Its portfolio of solutions aims to help financial decision-makers make payments, conduct due diligence, assess cred
Slide 38: XpertHR: HR departments
• Market served: HR departments in firms over 100 people • Geography: UK, NL • Founded: 2002 • Employees: 225 • Main claim: The leading online HR information service – providing guidance on employment law compliance, best practice and benchmarking data • Main products: Compliance, good practice and
Slide 39: Reed Construction Data: Construction Industry
• Market served: Construction Industry • Geography: US, Canada, Australia • Founded: Construction Cost Data: 1942; Construction Project Data: 1981; Cordell: 1969 • Employees: 777 • Main claim: Leading provider of construction cost data in North America and Australia • Customers: Over 80,000 customer
Slide 40: Christopher Flook, Managing Director
Christopher Flook Managing Director 40
Slide 41: A leading provider of price benchmarks, market analysis and workflow tools
611 staff in 9 locations across the World. Delivering market price assessments, real time news and analytics on A leading provider of price petrochemical and energy markets. benchmarks, market analysis and In over 50% of the 400+ chemical markets workflow tools supporting we cover, our prices are us
Slide 42: Products
Products • ICIS revenues are 98% subscription based. • Over 90% of revenues are from online services. • Core content is market price assessments, indices, news and analysis. • Core products are delivered by web, email, data feed and SMS. • Over recent years we have extended delivery into terminals,
Slide 43: Information value chain
Information value chain Upstream Downstream Marketing/ Production Production Transacting Transport/ Financial R&D (Energy) Refining End-Users (Petchems) (Energy/ Shipping Trading Petchems) Key • Oil/Gas • Oil/Gas • Production • Chemical • Sales and • Physical storage • Exchanges, • Industrial and ac
Slide 44: Petrochemical and energy markets
Petrochemical and energy markets • Markets are becoming increasingly volatile and unpredictable. • Physical markets are complex and value is inherently obscure. • Complexity is increased by globalisation, interconnection of multiple markets, increasing speed of trade, development of financial instru
Slide 45: ICIS turns disparate data points into trusted benchmarks
ICIS turns disparate data points into trusted benchmarks Data feeds 1000s of interviews daily with key participants Internal analyses Data assessed , Price discovery synthesized and Independent benchmarks and analysis proprietary methodology produced 45 applied
Slide 46: How ICIS customers use our data
How ICIS customers use our data Independent price benchmarks: Market players • As a spot market reference in long term contracts Product Managers • Commodity price comparison – for spread Purchasing trading and margin based pricing Traders • Hedging – as a floating price for forward trade and as a s
Slide 47: Some key customers
Some key customers Key Facts 8,500 customers Largest contracts in excess of $1m Top 25 customers represent only 18% of revenue 47
Slide 48: Revenue growth profile
Revenue growth profile 200 180 160 2007 index at 100 140 120 CBI 100 Heren 80 ICIS Core 60 40 20 - 2007 2008 2009 2010 2010 pro forma Underlying growth CAGR 7.2% 48
Slide 49: Opportunities for growth
Opportunities for growth • Accelerate growth in Asia. Geographical • Developing our position in key emerging markets Expansion – Former Soviet Union, India, Latin America, Africa. • Targeting LNG (Liquified Natural Gas) benchmark. Market • Developing energy market coverage. coverage • Ongoing launch
Slide 50: Geographical expansion: CBI China
Geographical expansion : CBI China • Demand growth from China for energy and chemicals eclipses all other markets. • In 2003 we set about defining our market entry strategy for China. • 2004 - ICIS partnered with HC International on a pilot project. • 2005 - we established our own representative off
Slide 51: ICIS China
ICIS China • Over 270 staff deliver products ranging from SMS Alerts to dedicated information terminals to over 13,000 customers. ICIS & CBI assessments are a mutually trusted reference point when China and International players trade. 51
Slide 52: CBI rebalances ICIS revenues towards the world's fastest growing markets
CBI rebalances ICIS revenues towards the World’s fastest growing markets Europe World chemical trade 27% Americas Asia 31% 42% 2015 ICIS revenues pre-CBI ICIS revenues including CBI Europe 63% Europe Americas Americas 43% 16% 10% Asia Asia 47% 21% 2004 2011 52 Source: American Chemistry Council, The
Slide 53: Product market expansion: Gas
Product market expansion : Gas • In 2008 ICIS acquired Heren Energy, the creators of the UK gas market price benchmark. • Since acquisition revenues have grown by around 250%. • As European gas markets liberalise ICIS Heren is expanding coverage to all the new trading hubs in Europe supported by a n
Slide 54: Information value chain
Information value chain Upstream Downstream Marketing/ Production Production Transacting Transport/ Financial R&D (Energy) Refining End-Users (Petchems) (Energy/ Shipping Trading Petchems) Key • Oil/Gas • Oil/Gas • Production • Chemical • Sales and • Physical storage • Exchanges, • Industrial and ac
Slide 55: Analytics and fundamentals
Analytics and fundamentals Long term Short term Price Exchanges and supply and supply and Market news assessment platforms demand data demand data • Strong opportunity to Incremental Capacity ktes Global Utilisation % 12000 95% expand datasets to long 11000 94% S. America term supply/demand and 1000
Slide 56: Real time and workflow tools
Real time and workflow tools Long term Short term Price Exchanges and supply and supply and Market news assessment platforms demand data demand data • In 2011 ICIS launches its Dashboard service, integrating all relevant data onto one screen. • Platform enables product development : – Increased real
Slide 57: Future growth driven by sustained product innovation
Future growth driven by sustained product innovation • ICIS growth is built upon a history of sustained product innovation. • Development plans in place are expected to continue to drive strong revenue growth in future years. • Development of our position in China will accelerate growth. • Establish
Slide 58: Conclusion
Conclusion • Important and growing segment of RBI • Strong growth prospects driven by: – Geographic expansion – Development of workflow tools – Development of multiple delivery platforms, especially mobile and tablet – Acquisition opportunities – in-fill and adjacency 58
Slide 59: Nomura Global Media Field Trip
Nomura Global Media Field Trip New York June 2011