Company Announcements

News release

25 July 2019

INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2019

RELX, the global provider of information-based analytics and decision tools, reports continued underlying growth
in revenue, operating profit and earnings in the first half of 2019, and reaffirms the full year outlook.

Commenting on the results, Sir Anthony Habgood, Chairman, said:

"Our continued positive overall development was reflected in strong first half earnings. Adjusted earnings per share grew +12% in sterling, +8% at constant currencies, and we have announced an increase in the interim dividend of +10%."

Chief Executive Officer, Erik Engstrom, commented:

"RELX continued to make good progress in the first half of 2019, with underlying revenue and adjusted operating profit growth across all four business areas, and recent acquisitions performing well. As we enter the second half of 2019 key business trends for the full year are in line with the full year 2018."

"Our number one strategic priority is unchanged: the organic development of increasingly sophisticated information-based analytics and decision tools that deliver enhanced value to our customers, supplemented by selective acquisitions of targeted data, analytics and exhibition assets that support our organic growth strategies."

FINANCIAL RESULTS

Revenue £3,888m (£3,653m) +6%; underlying growth +3%: The underlying growth rate reflects good growth in electronic and face-to-face revenues (92% of the total), and the further development of our analytics and decision tools, partially offset by continued print revenue declines.

Adjusted operating profit £1,240m (£1,149m) +8%; underlying growth +4%: Growth was driven by revenue growth and continued operating process innovation.

Reported operating profit £1,048m (£969m) +8%: Reported operating profit includes amortisation of acquired intangible assets of £147m and acquisition-related costs of £38m.

Interest and tax: Adjusted net interest expense was £97m (£95m), and adjusted tax was £248m (£234m). The adjusted effective tax rate was 21.7%, in line with full year 2018. Reported net interest was £103m (£100m), and reported tax was £223m (£192m).

Adjusted EPS 45.9p (41.1p) +12%, constant currency growth +8%

Reported EPS 39.9p (34.1p) +17%: Reported EPS includes gains on disposals and other non-operating items of £57m.

Dividend: We have announced an interim dividend of 13.6p (12.4p) +10%.

Net debt/EBITDA 2.6x (2.5x) including leases and pensions: Net debt, including leases as per IFRS 16, was £6.6bn (£6.2bn) at 30 June 2019. The increase in the net debt/EBITDA ratio reflects a higher pension deficit compared to 30 June 2018. The adjusted cash flow conversion rate was 94% (93%), with capital expenditure as a percentage of revenues of 4%. Excluding leases and pensions, net debt/EBITDA was 2.3x (2.3x).

Portfolio development: In the first half of 2019 we completed 8 acquisitions of content, data analytics and exhibition assets for a total consideration of £246m, and disposed of 5 assets for a total of £45m.

Share buybacks: We deployed £400m on share buybacks in the first half of 2019, and we intend to deploy a further £200m in the second half, bringing the full year total to the previously announced £600m. Of the £200m second half total, £50m has already been completed since 1 July 2019.

RELX FINANCIAL SUMMARY

RELX uses adjusted and underlying figures as additional performance measures. Adjusted figures primarily exclude the amortisation of acquired intangible assets and other items related to acquisitions and disposals, and the associated deferred tax movements. In 2018 we also excluded exceptional tax credits. Reconciliations between the reported and adjusted figures are set out on page 29. Underlying growth rates are calculated at constant currencies, excluding the results of acquisitions until twelve months after purchase, and excluding the results of disposals and assets held for sale. Underlying revenue growth rates also exclude exhibition cycling, and timing effects. Constant currency growth rates are based on 2018 full-year average and hedge exchange rates.

RELX is a global provider of information-based analytics and decision tools for professional and business customers. The Group serves customers in more than 180 countries and has offices in about 40 countries. It employs over 30,000 people of whom almost half are in North America. The shares of RELX PLC, the parent company, are traded on the London, Amsterdam and New York stock exchanges using the following ticker symbols: London: REL; Amsterdam: REN; New York: RELX. The market capitalisation is approximately £38bn/€42bn/$47bn.

For more information about RELX, visit www.relx.com.

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