Slide 1: Results 2023
Results 2023 Erik Engstrom, CEO, and Nick Luff, CFO 15 February 2024
Slide 2: Disclaimer Regarding Forward-Looking Statements
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 Exchange Act of 1934, as amended. These statements are subject to risks and uncer
Slide 3: Erik Engstrom, CEO
Erik Engstrom, CEO GRELX
Slide 4: RELX 2023
RELX 2023 • Strong financial results • Further operational and strategic progress 4
Slide 5: 2023 financial highlights
2023 financial highlights • Underlying revenue growth +8% • Underlying adjusted operating profit growth +13% • Adjusted EPS growth at constant currency +11% • Full year dividend growth (in sterling) +8% 5
Slide 6: RELX revenue by segment
RELX revenue by segment (2023 underlying revenue growth %) Exhibitions (+30%) Business Services Legal Print Risk News & Business (+8%) Government & Academic Legal Insurance (+6%) Law Firms & Corporate Legal Specialised Industry Data Services STM Print Government Academic & Government Databases, Tool
Slide 7: Risk
Risk Underlying growth Revenue • Strong fundamentals continuing to drive underlying revenue growth +8% +8% • Business Services driven by Financial Crime Compliance and digital Fraud & Identity solutions; new sales strengthening in second half • Insurance strong growth reflected further extension of
Slide 8: Scientific, Technical & Medical
Scientific, Technical & Medical Underlying growth Revenue • Further development of analytics continuing to drive underlying revenue growth • Databases, Tools & Electronic Reference and Corporate Primary Research: +4% +4% strong growth driven by content development and further evolution of higher val
Slide 9: Legal
Legal Underlying growth Revenue • Further improvement in underlying revenue growth driven by legal analytics +6% • Continued strong growth in Law Firms & Corporate Legal markets +5% • Lexis+, our integrated platform with market leading analytics, performing well, increasing adoption and usage 2022 2
Slide 10: Exhibitions
Exhibitions Revenue • Strong underlying revenue growth and profitability improvement £m 953 1,115 • Growth driven by significant increase in face-to-face activity; average like-for- like event revenue ahead of pre-pandemic levels • Good progress on digital initiatives, with increased usage of growin
Slide 11: RELX strategic direction
RELX strategic direction Strategy • Develop increasingly sophisticated information-based analytics and decision tools that deliver enhanced value to professional and business customers across market segments • Primary focus on organic growth, supported by targeted acquisitions Growth objectives Risk
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Slide 13: Nick Luff, CFO
Nick Luff, CFO GRELX 13
Slide 14: 2023 financial highlights
2023 financial highlights Income statement highlights • Underlying revenue growth +8% • Underlying adjusted operating profit growth +13% • Adjusted operating profit margin 33.1% • Adjusted EPS growth at constant currency +11% Cash flow and balance sheet highlights • Return on invested capital 14.0%
Slide 15: Revenue
Revenue change 2022 2023 constant change Year to 31 December £m £m change currency underlying Risk 2,909 3,133 +8% +8% +8% Scientific, Technical & Medical 2,909 3,062 +5% +4% +4% Legal 1,782 1,851 +4% +5% +6% Exhibitions 953 1,115 +17% +19% +30% RELX 8,553 9,161 +7% +7% +8% 15
Slide 16: Adjusted operating profit
Adjusted operating profit change 2022 2023 constant change Year to 31 December £m £m change currency underlying Risk 1,078 1,165 +8% +8% +9% Scientific, Technical & Medical 1,100 1,165 +6% +3% +4% Legal 372 393 +6% +7% +8% Exhibitions 162 319 +97% +105% +100% Unallocated central costs and other oper
Slide 17: Adjusted operating margin
Adjusted operating margin Year to 31 December 2022 2023 Risk 37.1% 37.2% Scientific, Technical & Medical 37.8% 38.0% Legal 20.9% 21.2% Exhibitions 17.0% 28.6% RELX 31.4% 33.1% 17
Slide 18: Adjusted income statement
Adjusted income statement change 2022 2023 constant change Year to 31 December £m £m change currency underlying Revenue 8,553 9,161 +7% +7% +8% EBITDA 3,174 3,544 EBITDA margin 37.1% 38.7% Operating profit 2,683 3,030 +13% +12% +13% Operating margin 31.4% 33.1% Net interest expense (194) (314) Effec
Slide 19: Free cash flow
Free cash flow 2022 2023 Year to 31 December £m £m Adjusted operating profit 2,683 3,030 Depreciation and other amortisation 491 514 EBITDA 3,174 3,544 Capital expenditure (436) (477) Repayment* of lease principal (78) (70) Working capital and other items 49 (35) Adjusted cash flow 2,709 2,962 Cash
Slide 20: Uses of free cash flow
Uses of free cash flow 2022 2023 Year to 31 December £m £m Free cash flow 1,970 1,988 Acquisitions: total consideration (443) (130) Dividends (983) (1,059) Share buybacks (500) (800) Other* (71) (25) Currency translation (560) 184 Movement in net debt (587) 158 Net debt at 31 December (6,604) (6,446
Slide 21: Uses of cash - priorities
Uses of cash - priorities 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1. Organic development 436 477 Average: 307 333 354 362 380 362 337 Capex (£m) 270 c 5% of sales 1 2 3 4 5 6 7 8 9 10 978 878 2. Portfolio development 437 416 443 Average: 367 Acquisition consideration (£m) 207 123 255 130 c
Slide 22: Corporate responsibility progress
Corporate responsibility progress Purpose of the company • Our purpose guides our actions beyond the products that we develop Unique contributions • We leverage our products and skills to undertake initiatives that make unique contributions to society Performance metrics • We continue to improve our
Slide 23: 2023 key corporate responsibility data
2023 key corporate responsibility data 2019 2020 2021 2022 2023 Revenue (£m) 7,874 7,110 7,244 8,553 9,161 People Percentage of women employees (%) 50 50 50 50 51 Percentage of women managers (%) 42 42 44 44 45 Percentage of women senior leaders (%) 30 28 30 31 31 Community Total number of days volu
Slide 24: Corporate responsibility - external recognition
Corporate responsibility - external recognition Among best in our peer group; strong ESG performance MSCI ESG ratings AAA rating since 2016 Sustainalytics Top 1% of 15,000+ companies; 2nd in Media sector Dow Jones Sustainability Indices 4th in professional services sector Responsibility100 Index 5th
Slide 25: Erik Engstrom, CEO
Erik Engstrom, CEO GRELX 25
Slide 26: Summary
Summary 2023 • Strong financial results • Further operational and strategic progress 2024 outlook • We continue to see positive momentum across the group, and we expect another year of strong underlying growth in revenue and adjusted operating profit, as well as strong growth in adjusted earnings pe
Slide 27: Appendices
Appendices Slide 29 RELX revenue by category 30 RELX revenue by format 31 Risk revenue split 32 STM revenue split 33 Legal revenue split 34 Exhibitions revenue split 35 Balance sheet 36 Return on invested capital 37 Exchange rates and shares outstanding 38 Risk: underlying revenue growth 39 STM: gro
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Slide 29: RELX revenue by category
RELX revenue by category 2023 Format Geography Type Print Rest of Face- 5% world to-face 20% Transactional* 12% 46% Europe 21% North Subscription Electronic America 54% 83% 59% *Includes long-term contracts with volumetric elements 29
Slide 30: RELX revenue by format
RELX revenue by format 2000-2023: 7% 6% 5% 10% 9% 8% 13% 11% 15% 19% 18% 22% 21% 5% 7% 11% 12% 27% 25% 33% 16% 37% 15% 16% 15% 15% 52% 51% 15% 16% 58% 56% 15% 60% 15% 64% 64% 14% 14% 17% 15% 12% 87% 86% 13% 83% 83% 12% 74% 74% 75% 12% 70% 72% 12% 66% 66% 63% 64% 59% 61% 14% 14% 48% 50% 35% 37% 30% 3
Slide 31: Risk
Risk 2023 revenue £3,133m Format Geography Type Print & face-to-face Rest of world Other 1% 7% transactional Europe Subscription 14% 40% Transactional Electronic North America 60% Long-term 99% 79% contracts with volumetric elements 31
Slide 32: Scientific, Technical & Medical
Scientific, Technical & Medical 2023 revenue £3,062m Format Geography Type Print & face-to-face 10% Rest of world Transactional 31% North 26% America 47% Electronic Europe Subscription 90% 22% 74% 32
Slide 33: Legal
Legal 2023 revenue £1,851m Format Geography Type Print & face-to-face Rest of world 10% 11% Transactional 21% Europe 21% Electronic North America Subscription 90% 68% 79% 33
Slide 34: Exhibitions
Exhibitions 2023 revenue £1,115m Format Geography Source Electronic 8% North America Visitors Rest of world 20% and other 42% 28% Europe Exhibitors Face-to-face 72% 38% 92% 34
Slide 35: Balance sheet
Balance sheet 31 Dec 2022 31 Dec 2023 £m £m Goodwill & acquired intangible assets 10,477 9,784 Internally developed intangible assets 1,435 1,477 Property, plant & equipment and investments 412 374 Right-of-use assets 145 113 Net pension obligations (55) (63) Working capital (1,325) (1,296) Net capi
Slide 36: Return on invested capital
Return on invested capital 2022 2023 Year to 31 December £m £m Adjusted operating profit 2,683 3,030 Tax at effective rate (571) (618) Effective tax rate 21.3% 20.4% Adjusted operating profit after tax 2,112 2,412 Average invested capital (at average FX rates) 16,920 17,184 Return on invested capita
Slide 37: Exchange rates and shares outstanding
Exchange rates and shares outstanding At 31 Dec At 31 Dec Average Average 2022 2023 FY 2022 FY 2023 Exchange rates £:$ 1.21 1.28 1.24 1.24 £:€ 1.13 1.15 1.17 1.15 Shares outstanding Total (m) 1,909.5 1,881.5 1,918.5 1,891.8 37
Slide 38: Risk: underlying revenue growth
Risk: underlying revenue growth +9% +9% +8% +8% +8% +8% +7% +7% Base market +6% growth contribution* +3% Contribution from recent product introductions** 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Adjusted operating margin 35.2% 35.9% 36.0% 36.6% 36.7% 36.8% 37.0% 37.0% 37.1% 37.2% * Products
Slide 39: Scientific, Technical & Medical: growth and currency analysis
Scientific, Technical & Medical: growth and currency analysis Period Total Portfolio Constant change in Other Total change Underlying changes currency hedge rates currency currency in £ FY 2023 Revenue +4% 0% +4% 0% +1% +1% +5% Adjusted operating profit +4% -1% +3% 0% +3% +3% +6% Adjusted operating
Slide 40: Legal: revenue growth and margin progression
Legal: revenue growth and margin progression Revenue Adjusted operating profit Adjusted Total Constant Underlying Total Constant Underlying operating EBITDA reported currency growth reported currency growth margin margin 2023 +4% +5% +6% +6% +7% +8% 21.2% 34.6% 2022 +12% +5% +5% +14% +6% +8% 20.9% 3
Slide 41: Exhibitions: revenue growth and margin progression
Exhibitions: revenue growth and margin progression 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total reported revenue +3% -4% +22% +6% +10% +4% -71% +48% +78% +17% Constant currency +11% +1% +9% +1% +12% +2% -72% +55% +76% +19% Impact of acquisitions/disposals +2% +1% +1% +1% +1% +2% -1% -1% -
Slide 42: Reported profit: reconciliation of adjusted to reported profit before tax
Reported profit: reconciliation of adjusted to reported profit before tax 2022 2023 Year to 31 December £m £m change Adjusted profit before tax 2,489 2,716 +9% Adjustments: Amortisation of acquired intangible assets (296) (280) Acquisition-related items (62) (56) Disposals and other non-operating it