Relx PLC · LSE:REL
Relx — Investor Day (October 2012)
44 slides from Relx's investor day presentation, Oct 11, 2012
Slide 1: Investor Seminar: LexisNexis Legal & Professional
Investor Seminar 11 October 2012 LexisNexis Legal & Professional 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 t
Slide 2: Reed Elsevier strategic direction
Reed Elsevier strategic direction Where we are going • Deliver improved outcomes to professional customers • Combine content & data with analytics & technology in global platforms • Build leading positions in long term global growth markets • Leverage institutional skills, assets and resources acros
Slide 3: LexisNexis L&P position within Reed Elsevier; Agenda
LexisNexis L&P position within Reed Elsevier 2011 Revenue £6.0bn 2011 Adjusted operating profit £1.6bn Legal & £0.2bn Professional 14% Legal & Professional 27% Legal & £1.6bn Professional 27% 5 Agenda Introduction Erik Engstrom, CEO, Reed Elsevier Overview Mike Walsh, CEO, LexisNexis Legal & Profess
Slide 4: Summary; Global legal services industry
Summary • Global legal information solutions market is attractive • LexisNexis Legal & Professional has a strong competitive position • Investments are positioning us for future increases in organic revenue and profit growth 7 Global legal services industry $625bn* in 2011 Latin America 3% Africa &
Slide 5: Long-term growth drivers; large global legal information market
Long‐term growth drivers strong despite recent subdued conditions • Consistent growth in legislation, regulation and judicial decisions, and complexity • Increasing volume and cost of litigation • Increasing volume and value of commercial transactions Expect legal services industry to gradually retu
Slide 6: Information pivotal to global legal services industry
Information pivotal to global legal services industry • Vast body of relevant information Complex • Precedent highly nuanced • Interpretation constantly evolving • 97% of legal professionals rate accurate Critical to legal information as critical to their job outcomes • Legal outcomes depend on the
Slide 7: Global legal information solutions landscape
Global legal information solutions landscape US Landscape: $18bn in 2011 Thomson Reuters • Two broad‐based research providers 19% • Multiple niche providers LexisNexis Typical Non‐US Others 50% 14% #2 position in US, #1 Landscape: position in multiple international markets • 1‐2 global providers 11%
Slide 8: LexisNexis Legal & Professional; strong global footprint
LexisNexis Legal & Professional £1.6bn ($2.6bn) in revenues in 2011 • A leading global provider of legal and business information solutions to law firm, corporate, government and academic markets • Customers in over 175 countries International (non‐US) • 10,000 employees worldwide US • Leading publi
Slide 9: Broad global customer base; revenue from subscriptions
Broad global customer base 2011 global revenue by customer type Small law firms Corporations Large law firms Note: Large law firms >50 attorneys; small law firms ≤50 attorneys 17 70% of revenue generated from subscriptions 2011 global revenue by type Other Transactional Subscriptions 18 9
Slide 10: Digital solutions driving growth; strategic priorities
Digital solutions driving growth as print migrates Global revenue and recent growth profile by solution type Mid‐single digit decline Low‐single digit decline Print Mid‐single Legal Digital Information digit decline Solutions Low mid‐single digit growth 19 Legal & Professional strategic priorities •
Slide 11: Capital investment supporting digital growth; underlying revenue
Legal & Professional capital investment supporting digital solutions growth Capital investment as % of revenue 12% 11% 7% 7% 7% 6% 6% 6% 6% 5% 4% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Note: Pro forma estimates for LexisNexis Legal & Professional on a standalone basis excluding Lexis
Slide 12: Operating margin; gradually rebuilding margins
Legal & Professional operating margin 2000‐2008 2008‐2010 2010‐2012 H1 Underlying • Mid‐single digits • Declined c.3.5% • Increased 1% revenue p.a. p.a. growth Underlying • Slightly below • Increased c.2% • Increased 1% cost revenue growth p.a. p.a. growth Margin • Low 20s% • Declined to 14% • Broad
Slide 13: Summary; Agenda
Summary • Global legal information solutions market is attractive • LexisNexis Legal & Professional has a strong competitive position • Investments are positioning us for future increases in organic revenue and profit growth 25 Agenda Introduction Erik Engstrom, CEO, Reed Elsevier Overview Mike Wals
Slide 14: Global technology overview; technology history
Global technology overview Where we are going • Build solutions that create more value for our customers • Increase competitive differentiation • Innovate continuously • Reduce complexity and cost How we are getting there • Invest in state‐of‐the‐art infrastructure and technology (“New Lexis”) • Dep
Slide 15: Overview of New Lexis; smart content
Overview of New Lexis Law firms Corporations Academic Government • Tailoring to distinct customer needs across segments and geographies • Launching integrated applications that deliver better outcomes to Applications customers where they work (eg Lexis Advance) • Global product platform provides Pro
Slide 16: Smart content improvements; product platform
Law Firms Corporations Academic Government Smart content improvements Applications Product Platform Smart Content Business Systems Lexis Advance vs. Lexis.com More content enrichment Cases Expert • 4X times as many topical Briefs Witness Motion Pleadings Challenges Court Rules classifications Motion
Slide 17: Applications; Lexis Advance
Law Firms Corporations Academic Government Applications Applications Product Platform Smart Content Business Systems Application development driven by extensive customer discovery and innovation program, focused on identifying critical customer challenges Better outcomes for customers: • Modern appl
Slide 18: Research Map; content embedded into workflow
Law Firms Corporations Academic Government Built‐in analytics: Research Map Applications Product Platform Smart Content Business Systems New functionality: View a graphical display of a past research session Better outcomes for customers: • Improves research quality and efficiency • Partner can easi
Slide 19: Mobile content access; customer feedback
Law Firms Corporations Academic Government Mobile content access Applications Product Platform Smart Content Business Systems New functionality: Lexis Advance on iPad and mobile apps Better outcomes for customers: • Access to LexisNexis content wherever and whenever customers want it 37 Law Firms Co
Slide 20: Business systems; global technology summary
Law Firms Corporations Academic Government Business systems Applications Product Platform Smart Content Business Systems Deploying modern Oracle‐based business systems architecture with single‐instance global repositories for customer data and product information Operational benefits: • Enables syst
Slide 21: Agenda; US legal information market summary
Agenda Introduction Erik Engstrom, CEO, Reed Elsevier Overview Mike Walsh, CEO, LexisNexis Legal & Professional Global Technology Jeff Reihl, CTO, LexisNexis Legal & Professional US Markets Bob Romeo, CEO, US Research & Litigation Q&A Break Non‐US Markets Judy Vezmar, CEO, International Country Exam
Slide 22: US legal services industry; growth
US legal services industry ~$325bn* in 2011 Small Law Firms Large Law Firms * Law firm revenue and internal corporation and government spend Note: Large law firms >50 attorneys; small law firms ≤50 attorneys Source: Bureau of Economic Analysis and LexisNexis analysis 43 US legal services industry gr
Slide 23: Legal services employment growth; trends
Legal services employment growth Growth of lawyers, paralegals and legal assistants in the legal services industry +2.0% +2.0% +1.3% +1.1% ‐1.3% 2007 2008 2009 2010 2011 Source: Bureau of Labor Statistics 45 Trends in US legal services industry Corporations Corporations Cost recovery Corporations ut
Slide 24: US market; sources of growth and differentiation
US legal information solutions market >50% of global spend Total: $18bn in 2011 International ` (non‐US) US $10bn Source: LexisNexis analysis 47 LexisNexis sources of growth and differentiation New Lexis Platform US Growth Strategy Tailored distribution Law firms Corporations Academic Government • A
Slide 25: Leading collection of content; innovative solutions
Leading collection of content • >11m case law decisions dating to 1658, including >2.8m unpublished decisions • >1m verdicts – 70% more than any other legal information provider • Matthew Bender® treatises, cited over 135 times and in more than 1 in 10 US Legal Supreme Court decisions in the past 10
Slide 26: Tailored distribution; small law firms
Tailored distribution: aligned to customer segments US legal information spending by customer type: $10bn in 2011 Small Law Corporations X` Firms Large Law Firms Note: Large law firms >50 attorneys; small law firms ≤50 attorneys Source: LexisNexis analysis 51 Small law firms (50 attorneys) Segment
Slide 27: Large law firms; corporations
Large law firms (>50 attorneys) Segment overview: Growth strategy: • ~850 firms, ~180k attorneys Leading collection of content: • Serve predominately corporations • Provide “must have” exclusive content • Focus on key large law practice areas • Handle complex litigation, large transactions and regul
Slide 28: Government; case study: small law firm
Government Segment overview: Growth strategy: • ~150k attorneys plus professionals in Leading collection of content: federal, state, and local courts and • Leverage diversity of LexisNexis agencies content (eg legal, news & business, • Key activities include: public records) – Drafting legislation a
Slide 29: Case study: large law firm litigation
Case study: large law firm conducting complex litigation Situation: A law firm working on complex litigation needs to collect, store, and review millions of relevant documents then utilize that information to formulate its arguments Key Issues Solution Benefits Litigation Solutions Suite • Hosting l
Slide 30: Case study: corporation; US market summary
Case study: corporation managing outside counsel Situation: A 2,600 employee insurance company needs to control legal costs as well as track matter status and spending as cases progress Key Issues Solution: Benefits CounselLink • Managing multiple active • Tracks matter status, legal matters documen
Slide 31: Agenda
Agenda Introduction Erik Engstrom, CEO, Reed Elsevier Overview Mike Walsh, CEO, LexisNexis Legal & Professional Global Technology Jeff Reihl, CTO, LexisNexis Legal & Professional US Markets Bob Romeo, CEO, US Research & Litigation Q&A Break Non‐US Markets Judy Vezmar, CEO, International Country exam
Slide 32: International legal information markets
International legal information markets • International accounts for a large part of the global legal information solutions market with good long‐term growth • LexisNexis is well positioned in the geographies we serve • New Lexis investment is being leveraged globally 63 International legal services
Slide 33: International market; trends
International legal information solutions market $18bn global market in 2011 $8bn international in 2011 Germany US International France 56% (non‐US) Japan 44% UK Other Europe Italy Source: Datamonitor, LexisNexis analysis 65 Trends across international markets Corporate Legal Requirement Growth in D
Slide 34: Print to electronic migration; sources of growth
Migration from print to electronic solutions driving growth LexisNexis International revenue by format 2001 2006 2011 Electronic 25% ah Print / Other Print / Other Electronic Print / Other Electronic 75% 60% 40% 45% 55% 67 Key sources of growth and differentiation International Growth Strategy Going
Slide 35: Leveraging global assets; international footprint
Innovative solutions: leveraging global assets and capabilities Customer Insights Global applications and Innovation • eg Legal Intelligence, Lexis • Methodology for Microsoft Office • Gather and share insights, leverage ideas Talent Technology • Strong leadership team • Leverage global capabilities
Slide 36: UK legal market; UK case study
UK legal market Market overview: LexisNexis Position: • Law firm legal services industry $33bn • #1 in legal information • Top 100 law firms account for ~50% • c.60% electronic • Heavily transactional (M&A, property) • Globalization – Top 100; 34% of Growth strategy: revenue is generated internation
Slide 37: Legal Intelligence; France legal market
Legal Intelligence Concise practice Intuitive notes and up‐to‐date search and forms and precedents topic tree Authoritative Daily news Webinars, sources of law and analysis events Productivity tools, eg automated documents Approach leveraged globally 73 France legal market Market overview: LexisNexi
Slide 38: France case study; India legal market
France case study: Growing the client base Situation: Solo generalist lawyer under time, cost and client retention pressures, looking for a solution to help grow the practice across different practice areas Key issues Solution Benefits • Absolute legal Lexis360 • Comprehensive and up‐to‐date securit
Slide 39: India case study; international summary
India case study: Law firm advising an international company Situation: Mid‐size Indian law firm advising an international company with a factory in India on how to deal with a workplace accident Key issues Solution: Benefits Lexis India • Finding reliable, • Combines comprehensive comprehensive onl
Slide 40: Agenda; LexisNexis Australia summary
Agenda Introduction Erik Engstrom, CEO, Reed Elsevier Overview Mike Walsh, CEO, LexisNexis Legal & Professional Global Technology Jeff Reihl, CTO, LexisNexis Legal & Professional US Markets Bob Romeo, CEO, US Research & Litigation Q&A Break Non‐US Markets Judy Vezmar, CEO, International Country exam
Slide 41: 100 years of history; Australian industry overview
100 years of history 1911 Our first office: 1970s 2004 2010 76 Elizabeth St, Pioneer of the 1990s LexisNexis > 1,000 Sydney, NSW loose‐leaf First to deliver AU® international revolution content is launched titles, 1918 on CD ROM on development First local international of mobile tools content platfo
Slide 42: Leading content assets; leveraging New Lexis
Leading content assets and innovative solutions LexisNexis position: LexisNexis Practical Guidance Detailed topic‐ • #1 in legal online based guidance, • c.60% electronic legal revenue written by experts Growth strategy: Workflow‐ based Leading collection of content topic tree Tools, eg • Comprehens
Slide 43: Australia summary; Rule of Law
LexisNexis Australia summary • LexisNexis is well‐positioned to deliver solid revenue and profit growth • We are combining global technology and best practices with local innovation • We are delivering unrivaled value to our customers 85 Rule of Law What is Rule of Law Impact It strives to ensure th
Slide 44: Agenda
Agenda Introduction Erik Engstrom, CEO, Reed Elsevier Overview Mike Walsh, CEO, LexisNexis Legal & Professional Global Technology Jeff Reihl, CTO, LexisNexis Legal & Professional US Markets Bob Romeo, CEO, US Research & Litigation Q&A Break Non‐US Markets Judy Vezmar, CEO, International Country exam