RELX Group results 2017 Erik Engstrom, CEO Nick Luff, CFO 2 1 - PDF document

RELX Group results 2017 Erik Engstrom, CEO Nick Luff, CFO 2 1

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 a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those currently being anticipated. The terms “outlook”, “estimate”, “project”, “plan”, “intend”, “expect”, “should be”, “will be”, “believe”, “trends” and similar expressions identify forward-looking statements. Factors which may cause future outcomes to differ from those foreseen in forward-looking statements include, but are not limited to: current and future economic, political and market forces; changes in law and legal interpretations affecting the RELX Group intellectual property rights; regulatory and other changes regarding the collection, transfer or use of third party content and data; demand for the RELX Group products and services; competitive factors in the industries in which the RELX Group operates; compromises of our data security systems and interruptions in our information technology systems; legislative, fiscal, tax and regulatory developments and political risks; exchange rate fluctuations; and other risks referenced from time to time in the filings of RELX PLC and RELX N.V. with the US Securities and Exchange Commission. 3 4 2

Erik Engstrom, CEO 5 6 3

RELX Group 2017 progress • Positive financial performance – Underlying revenue growth across all four business areas – Underlying profit growth ahead of underlying revenue growth • Further strategic and operational progress – Improvement in business profile – Organic development of analytics & decision tools 7 2017 financial highlights Underlying revenue growth • +4% Underlying adjusted operating profit growth • +6% Adjusted EPS growth at constant currencies • +7% 8 4

Financial performance Underlying revenue growth* Underlying adjusted operating profit growth +6% +6% +5% +5% +5% +4% +4% +3% +3% +3% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 * excluding exhibition cycling effects Adjusted earnings per share growth Return on invested capital Constant currency 12.1% 12.8% 12.7% 13.0% 13.1% +10% +8% +8% +7% +7% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 9 Underlying revenue and adjusted operating profit Underlying revenue growth Underlying adjusted operating profit growth 2017 2017 +2% +6% Exhibitions Exhibitions +2% Scientific, +11% Scientific, +3% Technical & Legal Technical & Medical Medical Legal +2% Risk & Risk & Business Analytics Business Analytics +8% +8% Underlying revenue growth rates exclude exhibition cycling effects 10 10 5

Scientific, Technical & Medical Underlying growth Key business trends remained positive • Revenue Continued growth in electronic revenues partially offset • by further print declines +2% +2% • Primary research value enhancement: content sets; analytics; technology platforms 2016 2017 • Growth in databases & tools driven by launch of Adjusted operating profit enhanced functionality and content development • Continued print book sales declines with returns back to +3% +3% historical levels; print pharma declines in line with historical trends 2016 2017 2018 outlook : Customer environment remains largely unchanged; overall we expect another year of modest underlying revenue growth, with underlying operating profit growth continuing to exceed underlying revenue growth 11 Risk & Business Analytics Underlying growth • Underlying revenue growth strong across all key Revenue segments +9% +8% • Insurance growth driven by analytics, extension of datasets, and expansion in adjacent verticals. US environment returned to historical trends 2016 2017 Growth in Business Services driven by development of • analytics across financial services and corporate Adjusted operating profit sectors +9% +8% • Government and healthcare growth driven by more sophisticated analytics; Data Services driving growth through organic development 2016 2017 2018 outlook : Fundamental growth drivers remain strong; we expect underlying operating profit growth to broadly match underlying revenue growth 12 6

Legal Underlying growth Underlying revenue growth in line with prior year • Revenue Operating profit margin growth reflects ongoing process • improvement, system decommissioning, and portfolio effects +2% +2% • Continued growth in electronic revenues partially offset 2016 2017 by print declines Adjusted operating profit • US and European markets stable; other international +12% +11% markets grew well • Roll out of new platform releases continued; broader datasets and expansion of early stage legal analytics, US legal usage migration to Lexis Advance 2016 2017 substantially complete 2018 outlook : Trends in our major customer markets are unchanged, continuing to limit the scope for underlying revenue growth. We expect underlying profit growth to remain strong 13 Exhibitions Underlying growth Strong underlying revenue growth, slightly ahead of • Revenue prior year • Launched 36 new events; completed five small +6% +5% acquisitions, including MCM Comic Con (UK), Cafe Seoul (South Korea) and Fitness (Australia); piloting several data analytics opportunities 2016 2017 Good growth in Europe; differentiated growth rates by • Adjusted operating profit industry sector in the US +7% • Strong growth in Japan and China; Brazil remained +2% weak; most other markets grew strongly 2016 2017 2018 outlook : We expect underlying revenue growth trends to continue. In 2018 we expect cycling-in effects to increase reported revenue growth rate by four to five percentage points 14 7

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 resources across RELX Group How we are getting there • Organic development: Investment in transforming core business; build-out of new products • Portfolio reshaping: Selective acquisitions; selective divestments Implications for business profile: Improving quality of earnings • More predictable revenues Higher growth profile • • Improving returns 15 Portfolio reshaping Selective acquisitions: Focused on data sets, analytics and high growth markets • In 2017 completed 8 acquisitions; total consideration £123m • Including Plum Analytics, Ravel Law, bepress, and MCM Comic Con • In January 2018 agreed acquisition of ThreatMetrix, leader in risk-based authentication; consideration £580m Selective disposals of non strategic assets • In 2017 completed 17 minor asset disposals for £87m • Including New Scientist and several other print, pharma, and services assets 16 8

RELX Group further corporate structure simplification Current Proposed RELX PLC RELX NV RELX PLC 52.9% 47.1% 100% RELX Group plc RELX Group plc 17 Corporate Structure Simplification • Corporate structure reviewed periodically and evolved over time Further simplification now possible without changing economic interests of shareholders • • Natural next step, removing complexity, increasing transparency • No change to locations, activities or staffing levels of RELX Group or its four business areas • No change to strategy; cost and profit neutral before and after tax 9

Nick Luff, CFO 19 2017 financial highlights Income statement highlights +4% • Underlying revenue growth +6% • Underlying adjusted operating profit growth ahead of revenue growth 31.1% • Adjusted operating profit margin 40 basis points higher +7% Adjusted EPS growth at constant currencies • Cash flow and balance sheet highlights • Return on invested capital 13.1% • Cash flow conversion 96% • Net debt / EBITDA 2.2x* Dividend PLC +10%; NV +6% • • Share buyback £700m *Pensions and lease adjusted; calculated in US dollars; unadjusted 1.9x 20 10

Income statement change 2016 2017 constant change Year to 31 December £m £m change currency underlying Revenue 6,895 7,355 +7% +2% +4% Adjusted operating profit 2,114 2,284 +8% +3% +6% Adjusted operating margin 30.7% 31.1% Adjusted net interest expense (180) (166) Adjusted profit before tax 1,934 2,118 +10% +4% Adjusted tax (438) (475) Tax rate % 22.7% 22.5% Non-controlling interests (8) (8) Adjusted net profit 1,488 1,635 +10% +5% Reported net profit 1,161 1,659 +43% 21 Earnings per share Year to 31 December 2016 2017 Growth Adjusted net profit (£m) 1,488 1,635 +10% Average shares outstanding (m) 2,062 2,019 -2% Adjusted earnings per share Sterling 72.2p 81.0p +12% Euros €0.880 €0.923 +5% Constant currency +7% Reported net profit (£m) 1,161 1,659 Average shares outstanding (m) 2,062 2,019 Reported earnings per share PLC (p) 56.3p 82.2p +46% NV (€) €0.687 €0.936 +36% 22 11