Résultats 2013 de Reed Elsevier

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• Publié par: ActuaLitte.com
• Publié le: 28 février 2014
• Nombre de lectures: 146
• Langue: English

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Reed Elsevier Results 2013 Erik Engstrom, CEO Duncan Palmer, 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.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” 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, competitive factors in the industries in which Reed Elsevier operates; demand for Reed Elsevier’s products and services; exchange rate fluctuations; general economic and business conditions; legislative, fiscal, tax and regulatory developments and political risks; the availability of third party content and data; breaches of our data security systems and interruptions in our information technology systems; changes in law and legal interpretations affecting Reed Elsevier’s intellectual property rights and other risks referenced from time to time in the filings of Reed Elsevier with the US Securities and Exchange Commission.

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Duncan Palmer, CFO

2013 financial highlights

Underlying revenue growth +2% (+3% excluding biennial exhibition cycling) Underlying adjusted operating profit growth +5% Adjusted EPS: +7% at constant currencies; PLC +9% to 54.0p; NV +5% to €0.99 Reported EPS: PLC +9% to 48.8p; NV +5% to €0.91 Proposed full year dividend: PLC +7%; NV +8% Return on invested capital up 0.4% to 12.1% Net debt / EBITDA: 2.1x* (2012: 2.2x) Cash flow conversion: 97%

* Pensions and lease adjusted; calculated in US dollars; unadjusted: 1.6x (2012: 1.7x)

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Profit and loss change 2013 2012constantchange Year to 31 December£m £mchange currencyunderlying Revenue 6,0356,116 -1% -3%+2% /+3%* Adjusted operating profit1,749 1,688+4% +1%+5% Adjusted operating margin29.0% 27.6% Net interest expense(177) (216) Adjusted profit before tax1,572 1,472+7% +4% Tax (370)(346) Tax rate %23.5% 23.5% Minority interests(5) (5) Adjusted net profit1,197 1,121+7% +4% Reported net profit1,110 1,044+6% +3% *Excluding biennial exhibition cycling Adjusted figures are stated before amortisation of acquired intangible assets, acquisition related costs, disposal gains / losses, pension financing costs and anomalous tax effects; underlying change excludes results of all acquisitions and disposals made in year and prior year and assets held for sale Comparative information has been restated following the adoption of IAS19 - Employee Benefits (revised) 5

Reconciliation of net profit Reported to adjusted

Year to 31 December Reported net profit

Adjustments (after tax):

2013 2012 £m £mchange 1,110 1,044+6%

Amortisation of acquired intangible assets325 336 Net financing cost on pension schemes13 8 Acquisition related costs31 16 Disposals and other non operating items18 (103) Other deferred tax credits and prior year tax items(300) (180) Adjusted net profit1,197 1,121+7%

Comparative information has been restated following the adoption of IAS19 - Employee Benefits (revised)

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Adjusted earnings and dividends per share

Adjusted earnings per share

Full year dividend per share*

Dividend cover

Reed Elsevier PLC 54.0p +9% 24.6p +7% 2.2x

Reed Elsevier NV €0.99 +5% €0.506 +8% 2.0x

* Proposed equalised dividends per share; interim dividends equalised at €1.16:£1 (2012: €1.27:£1); final dividends equalised at €1.22:£1 (2012: €1.16:£1); average exchange rate for 2013 €1.18:£1 (2012: €1.23:£1)

Revenue Underlying growth in all business areas

Year to 31 December

Scientific, Technical & Medical

Risk Solutions

Business Information Legal Exhibitions

Reed Elsevier

* Excluding biennial exhibition cycling

change 2013 2012constantchange £m £mcurrencyunderlying 2,126 2,063+1%+2% 933 926-1%+8% 547 663-19%+4% 1,567 1,610-4%+1% 862 854+2% +2%/ +7%* 6,035 6,116-3% +2%/ +3%*

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Adjusted operating profit Underlying growth in all business areas

Year to 31 December Scientific, Technical & Medical Risk Solutions Business Information Legal Exhibitions Unallocated items Reed Elsevier

2013 £m 826 414 107 238 213 (49) 1,749

change 2012 constantchange £m currencyunderlying 780 +2%+3% 392 +4%+8% 119 -11%+14% 234 +1%+5% 210 +4%+4% (47) 1,688 +1%+5%

Comparative information has been restated following the adoption of IAS19 - Employee Benefits (revised)

Adjusted operating profit Revised allocation of corporate and shared costs

Year to 31 December 2013 Scientific, Technical & Medical Risk Solutions Business Information Legal Exhibitions Unallocated items Reed Elsevier

Adjusted operating profitMargin New methodOld methodNew methodOld method £m £m 787 82637.0% 38.8% 401 41443.0% 44.4% 106 10719.3% 19.5% 250 23815.9% 15.2% 210 21324.4% 24.7% (5) (49) 1,749 1,74929.0% 29.0%

Previously unallocated items will be attributed to the business areas Other business costs relating to shared activities and resources will be allocated between businesses on the basis of usage and benefits derived

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Adjusted operating cash flow conversion

Year to 31 December Adjusted operating profit

Capital expenditure

Depreciation

Working capital and other items

Adjusted operating cash flow

Cash flow conversion rate

EBITDA

2013 2012 £m £m 1,749 1,688 (308) (333) 249 227 13 21 1,703 1,603 97% 95%

1,998 1,915

Comparative information has been restated following the adoption of IAS19 - Employee Benefits (revised)

Capital expenditure by business area 2013 % of Year to 31 December£m revenues Scientific, Technical & Medical87 4% Risk Solutions25 3% Business Information18 3% Legal 16310% Exhibitions 152% Total capital expenditure308 5.1%

Depreciation total

249 4.1%

2012 % of £m revenues 102 5% 21 2% 17 3% 168 10% 25 3% 333 5.5%

227 3.7%

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Free cash flow

Year to 31 December

Adjusted operating cash flow

Cash interest paid

Cash tax paid Acquisition integration / other* Free cash flow before dividends Dividends Free cash flow after dividends

*Net of cash tax relief

Uses of free cash flow

Free cash flow after dividends Disposals: total consideration Acquisitions Share buybacks Cash taxes on disposals Other* Currency translation Movement in net debt

Net debt at 31 December Net debt / EBITDA (pensions and lease adjusted) Net debt / EBITDA (unadjusted) * Includes option proceeds, disposal transaction costs and timing effects

2013 2012 £m £m 1,703 1,603 (195) (224) (347) (281) (30) (23) 1,131 1,075 (549) (521) 582 554

2013 £m 582 331 (230) (600) (25) (31) 28 55

(3,072) 2.1x 1.6x

2012 £m 554 242 (323) (250) 26 (50) 107 306

(3,127) 2.2x 1.7x

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Debt management

Debt as at 31 December 2013 Gross debt: $5.4bn (£3.3bn) Net debt: $5.1bn (£3.1bn) Debt management activity in 2013 Reduced cash balance from $1.2bn to $0.3bn Issued $282m of Swiss Franc 1.0% 2018 notes Issued $389m of 3.125% 2022 notes in exchange for $309m of 8.625% 2019 notes Redeemed $461m of term debt maturing January 2014 Renewed $2.0bn revolving credit facility to 2018, at lower cost 2013 outcomes Net interest expense of £177m (2012: £216m) Interest rate on gross debt of 4.8% (2012: 5.6%)

Debt maturities At 31 December 2013

Term debt translated at 31 December 2013 exchange rates, stated at par value

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Balance sheet

Goodwill & acquired intangible assets

Internally developed intangible assets

Property, plant & equipment and investments

Net assets held for sale

Net pension obligations

Working capital

Net capital employed

Cumulative amortisation

and other adjustments*

Invested capital at 2013 average exchange rates

* Other adjustments: currency movements and exclusion of deferred tax gross up to goodwill

Currency profile

2013 2012 £m £m 6,980 7,173 720 647 454 443 18 201 (379) (466) (1,156) (1,139) 6,637 6,859 4,312 4,287 10,949 11,146

1/3 of Rest of World revenues in US dollars

3-year rolling hedge programme smooths FX impact on subscription contracts

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Impact of 1% strengthening of US dollar on adjusted profit before tax: around £7m / €9m

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Erik Engstrom, CEO

Reed Elsevier 2013 progress

Continued positive operating and financial momentum –Underlying revenue growth trends sustained –Improved profitability through process innovation –Strong cash generation

Further transformation of business profile and improvement in earnings quality –Organic development of technology platforms; expansion in high growth markets –Continued portfolio reshaping –Improved revenue and profit mix

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