RELX Plc Q4 FY2022 earnings call

• Strategic direction: Focus on organic development of increasingly sophisticated information-based analytics and decision tools. - Growth objectives: Risk to sustain strong growth; STM and Legal to continue improving growth; Exhibitions to capture venue reopening and data-driven digital tools. - Financials: Underlying revenue growth 9%, adjusted operating profit 15%, adjusted EPS 10% at constant currency; dividend increased 10%; 2022 acquisitions included BehavioSec, Flyreel, Interfolio; share buyback and dividend payments made. - Corporate responsibility: Net zero on scopes 1 and 2, progress on scope 3; recognized by external agencies with top rankings.

Risk: Underlying revenue growth 8%, with business services (45% of divisional revenue) strong in financial crime, compliance, fraud, identity; insurance (40%) with positive momentum; specialized industry data services (10%) strong, commodity intelligence up; government (5%) strong. STM: Underlying revenue growth 4% (up from 3%), adjusted operating profit growth 5%. Databases, tools, electronic reference, and corporate primary research (45%) strong; primary research (45%) growth from higher articles submitted/published, open access growing. Legal: Underlying revenue growth 5% (up from 3%), adjusted operating profit growth 8%. Law firm and corporate markets over 60% of revenue; Lexis+ uptake strong. Exhibitions: Underlying revenue growth 64%, profitability recovered, driven by venue reopening and digital tools.

• Risk: Expect strong underlying revenue growth in line with historical trends. - STM: Expect underlying revenue growth above historical trends, adjusted operating profit growth slightly exceeding revenue. - Legal: Expect underlying revenue growth above historical trends, adjusted operating profit growth continuing to exceed revenue. - Exhibitions: Expect strong underlying revenue growth, margins close to pre-pandemic levels; 2023 to continue share buyback, expect surplus capital, monitor tax rate and interest costs.

• Volatility in specific subsegments of Risk (e.g., personal financial transactions). - Uncertainty in China JV impact on Exhibitions margins. - Potential impact of changing tax rates (U.K. corporation tax increase).

Q: Adam Berlin from UBS asked about STM division details like number of submissions, open-access articles.

A: Total submissions to STM journals back to mid-to-high single-digit growth; direct open access pay-to-publish growing ~30%; ~600,000 articles published, ~25% open access.

Q: Nick Dempsey from Barclays asked about subscription renewals, Legal revenue growth, Exhibitions sale.

A: Subscription renewals helped by perceived value increase; Legal renewal rates strong, no reason to believe 2023 growth won't continue; Exhibitions focus on venue reopening and digital tools, too early to discuss sale.

Q: Sami Kassab from BNB Paribas asked about STM/Legal growth acceleration, AI impact, Exhibitions digital revenue.

A: STM/Legal to continue improving growth; AI seen as opportunity, already working with GPT technology; Exhibitions digital revenue ~7% of division, growing strongly.

Q: Lisa Yang from Goldman Sachs asked about Risk growth, Exhibitions like-for-like, tax/interest.

A: Risk growth in range, some subsegments slowing but others picking up; Exhibitions like-for-like improved, China JV impacted margins, 15 launches planned; tax rate ~21-22%, U.K. tax increase expected, interest cost ~4%.

Q: Thomas Singlehurst from Citi asked about AI impact on STM, Exhibitions schedule, M&A.

A: AI to influence STM, policy in place for tool usage; Exhibitions mostly in normal slots, 15 launches planned; M&A in all business areas for organic development.

Q: Matthew Walker from Credit Suisse asked about GPT threat, Risk transaction outlook, Exhibitions rebooking.

A: GPT seen as opportunity, not competitive threat; Risk some subsegments slowing, others picking up; Exhibitions rebooking rates 75% first half, 90% second half.

Q: Konrad Zomer from ABN Amro asked about Exhibitions cost savings permanence.

A: Cost structure improved, 10% revenue removed, structural changes permanent.