Relx Plc · LSE:REL
Relx — H1 2019 Earnings Presentation
16 slides from Relx's earnings presentation, 2019
Slide 1: Interim results 2019
Interim results 2019 Erik Engstrom, CEO Nick Luff, CFO 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 a
Slide 2: RELX H1 2019 progress
Erik Engstrom, CEO 3 RELX H1 2019 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 – Further organic development of analytics and decision to
Slide 3: H1 2019 financial highlights
H1 2019 financial highlights • Underlying revenue growth +3% • Underlying adjusted operating profit growth +4% • Adjusted EPS growth at constant currencies +8% • Interim dividend growth +10% 5 Underlying revenue and adjusted operating profit Underlying revenue growth Underlying adjusted operating pr
Slide 4: Scientific, Technical & Medical; Risk & Business Analytics
Scientific, Technical & Medical Underlying growth • Key business trends remained positive; underlying Revenue revenue growth rate in first half 2019 impacted by phasing differences in prior year +2% +3% • Good growth in electronic revenues partially offset by +1% print declines FY 2018 H1 2018 H1 20
Slide 5: Legal; Exhibitions
Legal Underlying growth • Underlying revenue growth in line with prior year Revenue • Margin increase reflects ongoing process improvement, latter stages of systems decommissioning +2% +2% +2% • Continued growth in electronic revenues partially offset by print declines; legal market environment stab
Slide 6: Portfolio reshaping
Portfolio reshaping Selective acquisitions: Focused on data sets, analytics and high growth markets • In H1 2019 completed 8 acquisitions; total consideration £246m • Including Mack Brooks and Lumen Selective disposals of non-strategic assets • In H1 2019 completed 5 minor asset disposals for £45m 1
Slide 7: H1 2019 financial highlights
Nick Luff, CFO 13 H1 2019 financial highlights Income statement highlights • Underlying revenue growth +3% • Underlying adjusted operating profit growth ahead of revenue growth +4% • Adjusted operating profit margin 40 basis points higher 31.9% • Adjusted EPS growth at constant currencies +8% Cash f
Slide 8: Income statement; Revenue
Income statement change 2018 2019 constant change 6 months to 30 June £m £m change currency underlying Revenue 3,653 3,888 +6% +2% +3% Adjusted operating profit 1,149 1,240 +8% +4% +4% Adjusted operating margin 31.5% 31.9% Adjusted net interest expense (95) (97) Effective interest rate 3.2% 3.1% Adj
Slide 9: Adjusted operating profit; Adjusted operating margin
Adjusted operating profit Underlying growth in all business areas change 2018 2019 constant change 6 months to 30 June £m £m change currency underlying Scientific, Technical & Medical 426 445 +4% +2% +2% Risk & Business Analytics 374 422 +13% +6% +8% Legal 142 149 +5% +2% +5% Exhibitions 214 231 +8%
Slide 10: Currency profile; Free cash flow
Currency profile Revenue by geographic market H1 2019 • Revenue by currency broadly matches Rest of geographic split world 21% • Hedging smooths volatility in sterling reported results UK North 7% America 56% • At current exchange rates impact on FY Rest of Europe 2019 sterling adjusted EPS growth 1
Slide 11: Uses of free cash flow
Uses of free cash flow 2018 2019 6 months to 30 June £m £m Free cash flow 724 794 Disposals: total consideration 26 45 Acquisitions: total consideration (694) (246) Dividends (548) (578) Share buybacks (500) (400) Other* (48) (89) Currency translation (118) 11 Movement in net debt (1,158) (463) Net
Slide 12: Summary
Erik Engstrom, CEO 23 Summary H1 2019 • Positive financial performance • Further strategic and operational progress 2019 Outlook The full year outlook is unchanged. As we enter the second half of 2019 key business trends for the full year are in line with the full year 2018. We remain confident that
Slide 13: Appendices; Balance sheet
Appendices 26 Balance sheet 27 STM: growth and currency analysis 28 R&BA: underlying revenue growth 29 Legal: revenue, profit and margin progression 30 Exhibitions: cycling impact 31 Exchange rates and shares outstanding 25 Balance sheet 30 June 31 Dec 30 June 2018 2018 2019 £m £m £m Goodwill & acqu
Slide 14: STM growth and currency analysis; R&BA underlying revenue growth
Scientific, Technical & Medical Growth and currency analysis Period Portfolio Constant change in Other Total Underlying changes currency hedge rates currency currency Total H1 2019 Revenue +1% 0% +1% 0% +3% +3% +4% Adjusted operating profit +2% 0% +2% +1% +1% +2% +4% Adjusted operating margin +0.4%
Slide 15: Legal progression; Exhibitions cycling impact
Legal revenue, profit and margin progression Revenue growth Adjusted operating profit growth Margin Constant Constant Underlying currency Reported Underlying currency Reported FY H1 2019* +2% 0% +4% +5% +2% +5% 18.4% 2018 +2% -1% -4% +10% 0% -2% 19.8% 18.1% 2017 +2% -1% +4% +11% +1% +7% 19.6% 17.8%
Slide 16: Exchange rates and shares outstanding
Exchange rates and shares outstanding At 31 Dec At 30 June Average Average Average 2018 2019 H1 2018 FY 2018 H1 2019 Exchange rates £:$ 1.27 1.27 1.38 1.34 1.29 £:€ 1.11 1.12 1.14 1.13 1.15 Shares outstanding Total: 1,962m 1,941m 1,988m 1,977m 1,952m 31 16