PRIMEX ‘02PRIMEX ‘026 February 20026 February 2002

Managing a business in a challengingManaging a business in a challengingeconomy with technologyeconomy with technology

Reed ElsevierReed Elsevier

Reed Elsevier is a world leading publisher Reed Elsevier is a world leading publisher and information provider, operating in four and information provider, operating in four core segments. Its principal activities are in core segments. Its principal activities are in North America and Europe and the company North America and Europe and the company employs approximately 36,000 people.employs approximately 36,000 people.

ScientificScientific& Medical& Medicalc$2.0bnc$2.0bn

No. 1 in ScienceNo. 1 in ScienceNo. 1 in MedicalNo. 1 in MedicalGlobal Global

Note: Proforma Revenues post Harcourt

LegalLegal

c$2.0bnc$2.0bn

US, UK, Europe US, UK, Europe Asia PacificAsia Pacific

Latin AmericaLatin AmericaNo 1 or 2 inNo 1 or 2 in all marketsall markets

EducationEducation

c$1.5bnc$1.5bn

No. 3No. 3No. 1No. 1No. 1No. 1

USUSUKUK

CommonwealthCommonwealth

BusinessBusiness

c$2.0bnc$2.0bn

No. 1No. 1

No. 1No. 1

MagazinesMagazinesUS, UK, NetherlandsUS, UK, Netherlands

ExhibitionsExhibitionsGlobalGlobal

Four Businesses Four Businesses

Reed Elsevier Vision Reed Elsevier Vision

Indispensable partner of professional Indispensable partner of professional customerscustomers

Demonstrably superior information driven Demonstrably superior information driven services services

Global presence and leadership in four target Global presence and leadership in four target sectorssectors

High quality management and organisational High quality management and organisational effectivenesseffectiveness

Above market revenue growth & double digit Above market revenue growth & double digit earnings growthearnings growth

Reed Elsevier StrategyReed Elsevier Strategy

Focus on four core businessesFocus on four core businesses Attractive global growing marketsAttractive global growing markets Targeted at professional users Targeted at professional users Proprietary, must have contentProprietary, must have content Annual subscription modelAnnual subscription model Internet accelerating growth opportunitiesInternet accelerating growth opportunities

Survive and Thrive in Survive and Thrive in Changing EconomyChanging Economy

Elsevier Science:Elsevier Science:Historical Strength in JournalsHistorical Strength in Journals

Health Sciences DivisionHealth Sciences Division

UPGRADEDSCIENCEDIRECT

PRODUCT

INTERNET MIGRATIONCUSTOMER PREFERENCE

MODERATEPRICINGPOLICY

AGGRESSIVESALES ANDMARKETING

HIGHERPENETRATION

HIGHER USAGE

STRONGER RENEWALS

ACCELERATED REVENUE GROWTH

Science & Medical: Strategy for Growth

NAVIGATION

Abstracts & Indices (30m)

Print JournalsFull text

searchable database

ARCHIVEGrowing electronic

archive

SUBJECT PORTALS

Physics, Engineering,

Chemistry etc.

SCIRUS

Linkage to web

scientific data

ACADEMIC WORKBENCH

Authorship and pre-

publication tools

Science & Medical: Science & Medical: Expanded Expanded ScienceDirect OfferingScienceDirect Offering

Navigation30m abstracts & indices

Physics Econ. Chem. Etc BioMed

Subject Portals

Archive4m backfiles

ScienceDirect

1.4m articlesFully searchable

database

Library Management Tools:ENDEAVOR

Web search Web search engineengine

SCIRUSSCIRUS55m 55m

science science related related pagespages

Authorship Authorship and pre-and pre-

publication publication toolstools

ACADEMIC ACADEMIC WORK WORK BENCHBENCH

ScienceDirect: ScienceDirect: Superior Global Superior Global ProductProduct

Dramatic increase in usageDramatic increase in usage

Increasing penetration of ScienceDirect Increasing penetration of ScienceDirect

Subscriber attrition reducedSubscriber attrition reduced

Major new contracts agreedMajor new contracts agreed

Marketplace Impact:Marketplace Impact:Positive Key Performance IndicatorsPositive Key Performance Indicators

ScienceDirect:ScienceDirect:Increase in UsageIncrease in Usage

Number of page views (millions)Number of page views (millions)

00

55

1010

1515

2020

2525

JanJan9999

MarMar9999

MayMay9999

JulJul9999

SepSep9999

NovNov9999

JanJan0000

MarMar0000

MayMay0000

JulJul0000

SepSep0000

NovNov0000

JanJan0101

MarMar0101

MayMay0101

JulJul0101

SepSep0101

ScienceDirect:ScienceDirect:Increasing PenetrationIncreasing Penetration

%%

0010102020303040405050606070708080

MarMar9999

AugAug9999

FebFeb0000

AugAug0000

DecDec0000

AugAug0101

DecDec0011

Dutch ConsortiumDutch ConsortiumChinaChina

KoreaKorea

AustraliaAustralia

TaiwanTaiwan

BrazilBrazil

CanadaCanada

BavariaBavaria

Vale (USA)Vale (USA) Nord Rhein WestphaliaNord Rhein Westphalia

Marketplace Impact:Marketplace Impact:Major New ContractsMajor New Contracts

Legal:Legal: Historical Strength in Print & Historical Strength in Print & Proprietary OnlineProprietary Online

LEGAL: LEGAL: US STRATEGY FOR US STRATEGY FOR GROWTHGROWTH

ACCELERATED REVENUE GROWTH

UPGRADEDSALES AND MARKETING

US LAW SCHOOL PREFERENCE

SMALL LAWPROGRAMME

COMPETITIVEPRODUCTlexis.comnexis.com

STRONGERRENEWALS

HIGHER PENETRATION

HIGHER USAGE

INTERNET MIGRATIONCUSTOMER PREFERENCE

LEGAL:LEGAL: CUSTOMISED SOLUTIONSCUSTOMISED SOLUTIONS

CUSTOMISED E-SOLUTIONS

KNOWLEDGEMANAGEMENTPORTALSpecialised portal for law firms

INTRANET SOLUTIONSCustomisedlegal intranets

PRACTICE PAGESCustomised approachto specific practiceareas

LEXISNEXIS DATABASE/CONTENT

CUSTOMWEB PAGESEasy access to specific forms and sources

TAXCCH/Tax Analysts

LEGALExpandedE-treatises

Improved Linkages

CITATORFunctionality

Upgrade

CASE SUMMARIES300 700 Editors

WEB RELIABILITYPrivate Nodes

EASE OF USENew lexis.com

New WebSphere Platform

NEWS & BUSINESSFT Profile/

Company Dossier

PUBLIC RECORDSRiskwise/Corp America

Acquisitions

LexisNexis: LexisNexis: Product Upgrade ProgrammeProduct Upgrade Programme

00

11

22

33

44

55

66

Marketplace Impact: Marketplace Impact: Turnaround in Turnaround in LexisNexis Revenue GrowthLexisNexis Revenue Growth

1998 1999 2000 2001* first half* first half

+5%+5%

+1%+1%

+2%+2%

+3%+3%

%%

LexisNexis Preference Overall in Law Schools (%)LexisNexis Preference Overall in Law Schools (%)

Marketplace Impact:Marketplace Impact:Online Product Preference ConfirmedOnline Product Preference Confirmed

00

1010

2020

3030

4040

5050

6060

19971997 19981998 19991999 20002000 20012001FallFall FallFall FallFall FallFall FallFall

15151919

3232

54545050

Marketplace Impact:Marketplace Impact:Increase in UsageIncrease in Usage

Number of Searches (millions)

33

44

55

66

77

88

99

1010

Jan99

May99

Sep99

Jan00

May00

Sep00

Jan01

May01

Sep01

Business: Business: Leadership Portfolio inLeadership Portfolio inPrint Magazines and ExhibitionsPrint Magazines and Exhibitions

BUSINESS:BUSINESS: STRATEGY FOR STRATEGY FOR GROWTHGROWTH

UPGRADEDSALES AND MARKETING

ACCELERATED REVENUE GROWTH

PRINT LAUNCH AND EXTENSION

LEADING INTERNETPORTALS

CONTENT AND DATA AQUISITION

NEW REVENUESOURCES

STRONGER ADVERTISING PROPOSITION

HIGHER VOLUMES

EXPANSION OF SERVICES CUSTOMER PREFERENCE

BUSINESS: BUSINESS: NEW AND UPGRADED NEW AND UPGRADED PORTALS LAUNCHEDPORTALS LAUNCHED

00

2020

4040

6060

8080

100100

120120

19991999 20002000 20012001targettarget

$m$m

Business:Business:Total Online Revenue GrowthTotal Online Revenue Growth

2020

5555

9090OrganicOrganicIncluding Acquisitions Including Acquisitions

Education:Education:Strength in English Speaking WorldStrength in English Speaking World

Education:Education:E-learning ProgrammeE-learning Programme

E-strategy:E-strategy:Major research programme to determine customer Major research programme to determine customer needs and future strategyneeds and future strategy

E-content:E-content:Technology programme accelerated by Riverdeep Technology programme accelerated by Riverdeep alliancealliance

E-professional development:E-professional development:Acquisition of leading online provider: Classroom Acquisition of leading online provider: Classroom ConnectConnect

E-testing:E-testing:Increased investment in classroom testingIncreased investment in classroom testing

Driving Accelerated Driving Accelerated Growth: Growth: Technology Technology StrategyStrategy

Technology Strategy FrameworkTechnology Strategy Framework

Strategic Objective

Technology requirement(s) to meet the objective

Initiative, project or other implementation proposed

Adoption curve

Success / impact

measures

Application D

evelopment

Application D

evelopment

Application Integration Application Integration and Middlewareand Middleware

Infrastructure Infrastructure ServicesServices

NetworksNetworks

DatabaseDatabase

PlatformsPlatforms

SharedServicese.g. HR/Payroll

“Data Warehouse” Knowledge Management/Management Information

BusinessProcess

Management

CustomerRelationshipManagement

TransactionProcessing

Web delivery

CD Delivery

Print

Print on demand

Dial up

Other

FinancialAccounting

Content Repository

Content Supply

SharedServicese.g. HR/Payroll

“Data Warehouse” Knowledge Management/Management Information

BusinessProcess

Management

CustomerRelationshipManagement

TransactionProcessing

Web delivery

CD Delivery

Print

Print on demand

Dial up

Other

FinancialAccounting

Content Repository

Content Supply

Business strategy linkageDescribes strategic objectives for the business division. Details known technology requirements and projects and initiatives required to address the business need

Solutions FrameworkEnables grouping of technology requirements, projects, software applications and solutions to identify common themes.

Infrastructure LayersCovers services (e.g. Security), architecture, technical policies & standards, hardware, network and software solutions.

Business strategy drives solutions

Business solutions drive infrastructure

Technology StrategyTechnology Strategy

Technology work aligned with business Technology work aligned with business need:need:

Development of demonstrably superior productsDevelopment of demonstrably superior products

Systems to enable collaboration and global workingSystems to enable collaboration and global working

Cost-effective technology infrastructureCost-effective technology infrastructure

Future ViewFuture View

ConvergenceConvergence

Gartner Research

Future TrendsFuture Trends

NowNowCustomer = EnterpriseCustomer = Enterprise

Products = print/onlineProducts = print/online

Customisation = fringeCustomisation = fringe

Content + platformContent + platform

Specific ContentSpecific Content

Local/globalLocal/global

Static information productsStatic information products

FutureFutureCustomer = IndividualCustomer = Individual

Products = online/printProducts = online/print

Customisation = totalCustomisation = total

Individuals Desktop/PDAIndividuals Desktop/PDA

Rich linking to other contentRich linking to other content

Global/localGlobal/local

Professional decision making Professional decision making

Managing a business in a Managing a business in a challenging economy with challenging economy with technologytechnology

Develop a Strong Platform for Growth Attractive global growing businesses Targeted at professional users Proprietary, must have content Annual subscription model Internet accelerating growth opportunities

ConclusionConclusion