Relx Plc · LSE:REL
Relx — H1 2015 Earnings Presentation
24 slides from Relx's earnings presentation, July 2015
Slide 1: RELX Group Interim Results 2015
RELX Group Interim Results 2015 Erik Engstrom, CEO Nick Luff, CFO 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. Th
Slide 2: RELX Group H1 2015 progress
Erik Engstrom, CEO 3 RELX Group H1 2015 progress • Continued positive financial performance – Underlying revenue and profit growth across all major business areas • Further strategic and operational progress – Continued business transformation, primarily through organic development • Corporate struc
Slide 3: H1 2015 financial highlights
H1 2015 financial highlights • Underlying revenue growth +3% • Underlying adjusted operating profit growth +5% • Adjusted EPS growth at constant currencies +8% 5 H1 2015 Underlying revenue and adjusted operating profit growth across business areas Underlying revenue growth Underlying adjusted operat
Slide 4: Scientific, Technical & Medical; Risk & Business Information
Scientific, Technical & Medical Underlying growth Revenue (77% electronic) • Key business trends remained positive • Primary research subscription growth remained at level achieved in prior year. Double digit growth in +2% +2% +2% usage and article submissions • Good growth in databases & tools, and
Slide 5: Legal and Exhibitions
Legal Underlying growth Revenue (81% electronic) • Underlying revenue growth trends unchanged • Good growth in electronic revenues, partly offset by print declines +1% +1% +1% • US and European markets remained stable but subdued; other international markets continued to FY 2013 FY 2014 H1 2015 see
Slide 6: RELX Group strategic direction: unchanged
RELX Group strategic direction: unchanged 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 resourc
Slide 7: Portfolio reshaping and strategic cash priorities
Portfolio reshaping: our second priority supporting organic growth strategy H1 2015 Selective acquisitions: Focused on data sets, analytics and high growth markets • 11 acquisitions completed; total consideration £69m • Including Bair Analytics, Jing You (JV), Jewelers International Showcase Selecti
Slide 8: Nick Luff, CFO
Nick Luff, CFO 15 This slide is intentionally left blank 16 8
Slide 9: Income statement
Income statement change 2015 2014 constant change 6 months to 30 June £m £m change currency underlying Revenue 2,964 2,847 +4% +2% +3%* Adjusted operating profit 909 860 +6% +5% +5% Adjusted operating margin 30.7% 30.2% Adjusted net interest expense (75) (69) Adjusted profit before tax 834 791 +5% +
Slide 10: Revenue and adjusted operating profit
Revenue Underlying growth in all business areas change change 2015 2014 reported constant change 6 months to 30 June £m £m sterling currency underlying Scientific, Technical & Medical 987 971 +2% +2% +2% Risk & Business Information 802 718 +12% +5% +7% Legal 702 668 +5% 0% +1% Exhibitions 473 490 -3
Slide 11: Adjusted operating margin and currency profile
Adjusted operating margin 2015 2014 6 months to 30 June % % Scientific, Technical & Medical 35.4% 35.8% Risk & Business Information 36.3% 35.2% Legal 17.1% 16.6% Exhibitions 32.3% 31.0% RELX Group 30.7% 30.2% 21 Currency profile H1 2015 Revenue by geographic market Rest of World 22% North Rest of Am
Slide 12: Free cash flow and uses of free cash flow
Free cash flow 2015 2014 6 months to 30 June £m £m Adjusted operating profit 909 860 Capital expenditure (143) (123) Depreciation 111 114 Working capital and other items (109) (89) Adjusted cash flow 768 762 Cash flow conversion rate 85% 89% Cash interest paid (52) (49) Cash tax paid (198) (133) Acq
Slide 13: Simplification of corporate structure and share listings
Simplification of corporate structure 1 July 2015 23 July 2015 RELX RELX PLC NV • Full alignment of parent company boards 52.9% 47.1% • Consolidated accounts for H1 2015 RELX Group plc 25 Simplification of share listings Share price by listing RELX PLC: £10.93 RELX NV: €14.97 RELX PLC ADR: $17.13 RE
Slide 14: Summary
Erik Engstrom, CEO 27 Summary H1 2015 • Continued positive financial performance • Further strategic and operational progress • Corporate structure simplification implemented H2 2015 Outlook • “The full year outlook is unchanged. The key drivers within our business remain positive, and we are confid
Slide 15: Appendices Contents
Appendices 29 Contents Further information Financial information in Euros 32 Revenue: year over year change 40 Income statement 33 Adjusted operating profit: year over year change 41 Earnings and dividend per share equalisation 34 Reconciliation of net profit: adjusted to reported 42 Revenue 35 STM:
Slide 16: Revenue: year over year change
Further information 31 Revenue Year over year change 6 months to 30 June £m change €m change 2014 Revenue 2,847 3,473 Underlying growth 88 +3% 109 +3% Exhibition cycling and timing (28) -1% (34) -1% Acquisitions 49 +2% 61 +2% Disposals (56) -2% (70) -2% Currency effects 64 +2% 492 +14% 2015 Revenue
Slide 17: Adjusted operating profit; Reconciliation of net profit
Adjusted operating profit Year over year change 6 months to 30 June £m change €m change 2014 Adjusted operating profit 860 1,049 Underlying growth 42 +5% 52 +5% Acquisitions 8 +1% 10 +1% Disposals (5) -1% (6) -1% Currency effects 4 +1% 131 +13% 2015 Adjusted operating profit 909 +6% 1,236 +18% 33 Re
Slide 18: STM growth and currency analysis; Exhibitions cycling impact
Scientific, Technical & Medical Growth and currency analysis £ Sterling Period Acquisitions/ Constant change in Other Total Underlying disposals currency hedge rates currency currency Total H1 2015 Revenue +2% 0% +2% -1% +1% 0% +2% Adjusted operating profit +5% 0% +5% -2% -3% -5% 0% Adjusted operati
Slide 19: Balance sheet and term debt maturities
Balance sheet 30 June 2015 31 Dec 2014 £m £m Goodwill & acquired intangible assets 7,122 7,365 Internally developed intangible assets 803 780 Property, plant & equipment and investments 408 464 Net assets/(liabilities) held for sale 29 (2) Net pension obligations (592) (632) Working capital (939) (1
Slide 20: Financial information in Euros: Income statement
Financial information in Euros 39 Income statement change 2015 2014 constant change 6 months to 30 June €m €m change currency underlying Revenue 4,031 3,473 +16% +2% +3%* Adjusted operating profit 1,236 1,049 +18% +5% +5% Adjusted operating margin 30.7% 30.2% Adjusted net interest expense (102) (84)
Slide 21: Earnings and dividend per share equalisation; Revenue
Earnings and dividend per share equalisation Earnings per share Euros Average FX Sterling rate Adjusted net profit (H1 2015) €868m ÷€1.36 £638m Divided by total average shares (2,118m) €0.410 30.1p Growth (v H1 2014) +21% +8% Dividend per share NV Tax credit Spot FX PLC gross up rate Interim dividen
Slide 22: Adjusted operating profit and free cash flow (Euros)
Adjusted operating profit Underlying growth in all business areas change change 2015 2014 reported constant change 6 months to 30 June €m €m Euros currency underlying Scientific, Technical & Medical 475 425 +12% +5% +5% Risk & Business Information 396 309 +28% +7% +7% Legal 163 135 +21% +6% +8% Exhi
Slide 23: Uses of free cash flow; Reconciliation of net profit
Uses of free cash flow H1 2015 6 months to 30 June €m Free cash flow 688 Disposals: total consideration 8 Acquisitions: total consideration (94) Dividends (572) Share buybacks (408) Other* (91) Currency translation (409) Movement in net debt (878) Net debt at 30 June (5,457) Net debt / EBITDA (pensi
Slide 24: STM growth and currency analysis; Balance sheet (Euros)
Scientific, Technical & Medical Growth and currency analysis € Euro Period Acquisitions/ Constant change in Other Total Underlying disposals currency hedge rates currency currency Total H1 2015 Revenue +2% 0% +2% -1% +12% +11% +13% Adjusted operating profit +5% 0% +5% -2% +9% +7% +12% Adjusted opera