Slide 1: Results 2021
Results 2021 Erik Engstrom, CEO, and Nick Luff, CFO 10 February 2022
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 @RELX
Slide 4: RELX 2021 progress
RELX 2021 progress • Strong financial results • Further operational and strategic progress • Continued strong corporate responsibility performance 4
Slide 5: 2021 financial highlights
2021 financial highlights • Underlying revenue growth +7% • Underlying adjusted operating profit growth +13% • Adjusted EPS growth at constant currency +17% • Full year dividend growth (in sterling) +6% 5
Slide 6: Revenue and adjusted operating profit
Revenue and adjusted operating profit Revenue 2021: £7,244m Adjusted operating profit 2021: £2,210m Underlying growth: +7% Underlying growth: +13% +44% nm +5% Exhibitions Exhibitions Legal +3% +9% Legal Risk +10% Risk Scientific, Technical & Scientific, Medical Technical & Medical +3% +3% nm – not m
Slide 7: Risk
Risk Underlying growth Revenue • Business Services double digit growth driven by demand for fraud prevention analytics and decision tools +9% • Insurance growth driven by roll-out of enhanced analytics, extension of data +3% sets, and expansion in adjacent verticals 2020 2021 • Specialised Industry
Slide 8: Scientific, Technical & Medical
Scientific, Technical & Medical Underlying growth Revenue • Improved underlying revenue growth driven by further development of datasets and analytics • Strong growth in primary research articles published; market share gains in both +3% subscription and open access payment models +1% 2020 2021 • Da
Slide 9: Legal
Legal Underlying growth Revenue • Improved underlying revenue growth driven by legal analytics • Continued release of broader data sets, application of machine learning and natural language processing +3% +1% • Further enhancement of functionality of integrated research and leading 2020 2021 analyti
Slide 10: Exhibitions
Exhibitions • Underlying revenue growth driven by gradual reopening of exhibition venues £m Revenue across geographies 534 362 • 2021 events managed flexibly, 269 face-to-face events held • Continued good progress on digital initiatives 2020 2021 • Return to positive adjusted operating result reflec
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
Slide 12: @RELX
@RELX
Slide 13: Nick Luff, CFO
Nick Luff, CFO @RELX 13
Slide 14: 2021 financial highlights
2021 financial highlights Income statement highlights • Underlying revenue growth +7% • Underlying adjusted operating profit growth +13% • Adjusted operating profit margin 30.5% • Adjusted EPS growth at constant currencies +17% Cash flow and balance sheet highlights • Adjusted cash flow conversion 1
Slide 15: Revenue
Revenue change 2020 2021 constant change Year to 31 December £m £m change currency underlying Risk 2,417 2,474 +2% +9% +9% Scientific, Technical & Medical 2,692 2,649 -2% +4% +3% Legal 1,639 1,587 -3% +2% +3% Exhibitions 362 534 +48% +55% +44% RELX 7,110 7,244 +2% +8% +7% 15
Slide 16: Adjusted operating profit
Adjusted operating profit change 2020 2021 constant change Year to 31 December £m £m change currency underlying Risk 894 915 +2% +10% +10% Scientific, Technical & Medical 1,021 1,001 -2% +3% +3% Legal 330 326 -1% +4% +5% Exhibitions (164) 10 nm nm nm Unallocated items (5) (42)* RELX 2,076 2,210 +6%
Slide 17: Adjusted operating margin
Adjusted operating margin Year to 31 December 2020 2021 Risk 37.0% 37.0% Scientific, Technical & Medical 37.9% 37.8% Legal 20.1% 20.5% Exhibitions nm 1.9% RELX 29.2% 30.5% nm – not meaningful 17
Slide 18: Adjusted income statement
Adjusted income statement change 2020 2021 constant change Year to 31 December £m £m change currency underlying Revenue 7,110 7,244 +2% +8% +7% Operating profit 2,076 2,210 +6% +13% +13% Operating margin 29.2% 30.5% Net interest expense (160) (133) Effective interest rate 2.1% 2.0% Profit before tax
Slide 19: Free cash flow
Free cash flow 2020 2021 Year to 31 December £m £m Adjusted operating profit 2,076 2,210 Depreciation and amortisation of internally developed intangibles 341 347 Depreciation of right-of-use assets 88 80 Pre-publication amortisation 62 60 Capital expenditure (362) (337) Repayment of lease principal
Slide 20: Uses of free cash flow
Uses of free cash flow 2020 2021 Year to 31 December £m £m Free cash flow 1,223 1,672 Acquisitions: total consideration (878) (255) Disposals* 15 190 Dividends (880) (920) Share buybacks (150) - Other** (3) 20 Currency translation (34) 174 Movement in net debt (707) 881 Net debt at 31 December (6,89
Slide 21: Uses of cash - priorities
Uses of cash - priorities 2017 2018 2019 2020 2021 1. Organic development Average: 354 362 380 362 337 Capex (£m) 5% of sales 1 2 3 4 5 978 878 2. Portfolio reshaping 416 Average: Acquisition consideration (£m) 123 255 c£500m 1 2 3 4 5 762 796 842 880 920 3. Dividends Dividend cover: Total payout (£
Slide 22: Corporate responsibility performance
Corporate responsibility performance Key internal metrics Unique contributions People Socially responsible suppliers (SRS) • 62% increase in content on free RELX Percentage of female managers Percentage signing supplier code of conduct SDG Resource Centre 91% 96% • Expanded content available on 43%
Slide 23: Erik Engstrom, CEO
Erik Engstrom, CEO @RELX 23
Slide 24: Summary
Summary 2021 • Strong financial results • Further operational and strategic progress • Continued strong corporate responsibility performance 2022 outlook • Following the improved performance in 2021 across the company, we expect 2022 full year underlying growth rates in revenue and adjusted operatin
Slide 25: Appendices
Appendices 26 RELX revenue by segment 38 Reconciliation of adjusted to reported profit before tax 27 RELX revenue by category 39 Balance sheet 28 RELX revenue by format 40 Return on invested capital 29 Risk: revenue split 41 Currency profile 30 Risk: underlying revenue growth 42 Exchange rates and s
Slide 26: RELX revenue by segment
RELX revenue by segment Exhibitions Legal print Business services News & business Government & academic Risk Legal Law firms & Insurance corporate legal Specialised industry data services STM print Government Databases, tools & electronic reference Academic & government primary research Corporate pr
Slide 27: RELX revenue by category
RELX revenue by category 2021 Format Geography Type Print Rest of Face- 7% world to-face 7% 20% Transactional* 42% Europe 20% North Subscription Electronic America 58% 86% 60% * Includes long term contracts with volumetric elements 27
Slide 28: RELX revenue by format
RELX revenue by format 2000-2021: 9% 8% 7% 11% 10% 15% 13% 19% 18% 22% 21% 5% 7% 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% 12% 74% 74% 75% 12% 70% 72% 12% 66% 66% 63% 64% 59% 61% 14% 14% 48% 50% 35% 37% 30% 32% 28% 22% 22% 2000 20
Slide 29: Risk
Risk 2021 revenue £2,474m Format Geography Type Face-to-face Rest of world 1% 7% Europe Subscription 14% 40% Electronic North America Transactional* 99% 79% 60% * c90% under long term contracts with volumetric elements 29
Slide 30: Risk underlying revenue growth
Risk underlying revenue growth +9% +9% +8% +8% +7% +7% Base market +6% +6% growth +5% contribution* +3% Contribution from recent product introductions** 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 * Products more than 5 years old ** Products less than 5 years old 30
Slide 31: Scientific, Technical & Medical
Scientific, Technical & Medical 2021 revenue £2,649m Format Geography Type Print 12% Rest of world Transactional 31% North 26% America 46% Electronic Europe Subscription 88% 23% 74% 31
Slide 32: Scientific, Technical & Medical
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 2021 Revenue +3% +1% +4% 0% -6% -6% -2% Adjusted operating profit +3% 0% +3% 0% -5% -5% -2% Adjusted operating m
Slide 33: Legal
Legal 2021 revenue £1,587m Format Geography Type Print Rest of world 12% 12% Transactional Face-to-face 21% 1% Europe 22% Electronic Subscription North America 87% 79% 66% 33
Slide 34: Legal revenue, profit and margin progression
Legal revenue, profit and margin progression Revenue growth Adjusted operating profit growth Adjusted Reported Reported operating Constant growth Constant growth margin Underlying currency in £ Underlying currency in £ 2021 +3% +2% -3% +5% +4% -1% 20.5% 2020 +1% 0% -1% +7% +1% 0% 20.1% 2019 +2% -1%
Slide 35: Exhibitions
Exhibitions 2021 revenue £534m Format Geography Source Electronic North America Admission fees 11% 19% and other 28% Europe Rest of world 35% Face-to-face 46% 89% Exhibitor fees 72% 35
Slide 36: Exhibitions: cycling impact
Exhibitions: cycling impact Revenue growth 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total at constant currencies +25% +2% +11% +1% +9% +1% +12% +2% -72% +55% Impact of portfolio changes +10% 0% +2% +1% +1% +1% +1% +2% -1% -1% Underlying with cycling +15% +2% +9% 0% +8% 0% +11% 0% -71% +56%
Slide 37: Exhibitions revenue and cost
Exhibitions revenue and cost £m 2020* 2021 Revenue 362 534 Cost (540) (550) Owned portfolio profit contribution (178) (16) JV contribution 14 26 Adjusted operating profit (164) 10 *Excluding 2020 exceptional costs of £183m 37
Slide 38: Reported profit
Reported profit Reconciliation of adjusted to reported profit before tax 2020 2021 Year to 31 December £m £m change Adjusted profit before tax 1,916 2,077 +8% Adjustments: Amortisation of acquired intangible assets (376) (298) Exhibitions exceptional costs (183) -) Acquisition-related items 12 (21)
Slide 39: Balance sheet
Balance sheet 31 Dec 2020 31 Dec 2021 £m £m Goodwill & acquired intangible assets 9,405 9,419 Internally developed intangible assets 1,244 1,251 Property, plant & equipment and investments 524 343 Right-of-use assets 216 161 Net pension obligations (624) (269) Working capital (1,229) (1,095) Net cap
Slide 40: Return on invested capital
Return on invested capital 2020 2021 Year to 31 December £m £m Adjusted operating profit 2,076 2,210 Tax at effective rate (405) (409) Effective tax rate 19.5% 18.5% Adjusted operating profit after tax 1,671 1,801 Average invested capital (at average FX rates) 15,435 15,108 Return on invested capita
Slide 41: Currency profile
Currency profile Revenue by geographic market 2021 Rest of world 20% UK 7% North Rest of America Europe 60% 13% • Revenue by currency broadly matches geographic split 41
Slide 42: Exchange rates and shares outstanding
Exchange rates and shares outstanding At 31 Dec At 31 Dec Average Average 2020 2021 FY 2020 FY 2021 Exchange rates £:$ 1.37 1.35 1.28 1.38 £:€ 1.12 1.19 1.12 1.16 Shares outstanding Total (m) 1,926 1,929 1,926 1,928 42
Slide 43: 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 14,000 companies; 1st in Media sector Dow Jones Sustainability Indices 3rd in professional services sector Responsibility100 Index 4th