23rd Apr 2008 11:16
Reed Elsevier PLC23 April 2008 Issued on behalf of Reed Elsevier PLC and Reed Elsevier NV For immediate release 23 April 2008 Chairman's Statement, Annual General Meetings of Reed Elsevier PLC and Reed Elsevier NV Jan Hommen, Chairman of Reed Elsevier PLC and Reed Elsevier NV, toldshareholders at the Reed Elsevier PLC meeting in London today: "We were very pleased to report on a year of significant achievement andstrategic development for Reed Elsevier in 2007. Our businesses performed wellin their markets and saw rapid growth in our online information services andcustomer workflow solutions. The financial performance was strong, with goodorganic revenue growth and margin improvement, high cash generation and afurther step-up in return on invested capital. We also significantly re-shapedthe business portfolio with the successful £2.5 billion/€3.6 billion sale of theHarcourt Education division and subsequent return of the net proceeds toshareholders. In the new financial year we have stepped up the momentum with the announcementof important plans to accelerate growth: first, the planned divestment of theReed Business Information trade magazines and information businesses to reduceour exposure to advertising markets and their cyclicality; secondly, the agreed£2.1 billion/€2.8 billion acquisition of ChoicePoint Inc. in the fast growingrisk information and analytics market; and, thirdly, a major restructuringprogramme to deliver substantial cost savings over and above our regular annualimprovements in cost effectiveness. The changes we are making create a more cohesive and synergistic business withstronger, more consistent growth prospects to drive further shareholder value." Looking at the trading outlook for 2008, Mr. Hommen commented: "Trading conditions have changed little since our 2007 Preliminary Resultsstatement in February. Conditions in our markets remain generally favourablewith good subscription renewals and revenue momentum for online information andworkflow solutions. While we are, of course, very alert to the currenteconomic environment, so far we have seen no meaningful adverse impact on ReedElsevier's overall business momentum. In Elsevier, in both the Science and Technology and Health Sciences divisions,subscriptions renewals and online sales are progressing well and book publishingis expanding. The Health Sciences business is again expecting good growth fromnew publishing and backlist sales, though this will be mostly seen in the secondhalf due to the seasonality of the business. LexisNexis has seen good revenue momentum across the business. In US LegalMarkets good demand continues for online information and our expanding portfolioof workflow solutions. The Risk Information and Analytics business continues togrow strongly. International growth outside the US is benefiting from thestrong demand for online services in the UK and other European and Asianmarkets. Reed Exhibitions has had a positive start to the year. It has seen good overalldemand for the important first half shows. The Reed Business Information magazine and information business, while seeingsome general uncertainty in markets such as property and construction, is seeingno overall shift in market trends with continued strong growth in onlineservices more than offsetting the slow decline in print. Preparatory work onthe divestment of this business is well underway. The acquisition of ChoicePoint Inc., announced on 21 February 2008, is expectedto close in the second half subject to receipt of US regulatory approvals. TheChoicePoint shareholders approved the terms of the acquisition at theirshareholders' meeting on 16 April 2008. The restructuring programme announced in February is on track to deliver theexpected benefits in 2008 and beyond. The outlook for Reed Elsevier is positive. We are well positioned in attractivemarkets; the momentum in the business is showing through in the good financialperformance, and the changes we are making will strengthen the business andaccelerate our growth." This statement contains forward looking statements within the meaning of Section27A of the US Securities Act 1933, as amended, and Section 21 E of the USSecurities Act 1934, as amended. These statements are subject to a number ofrisks and uncertainties and actual results and events could differ materiallyfrom those currently being anticipated as reflected in such forward lookingstatements. The terms 'expect', 'should be', 'will be' and similar expressionsidentify forward looking statements. Factors which may cause future outcomes todiffer from those foreseen in forward looking statements include, but are notlimited to: general economic conditions and business conditions in ReedElsevier's markets; exchange rate fluctuations; customers' acceptance of itsproducts and services; the actions of competitors; legislative, fiscal andregulatory developments; changes in law and legal interpretation affecting ReedElsevier's intellectual property rights and internet communications; and theimpact of technological change; or the failure to obtain regulatory approval forthe acquisition of ChoicePoint Inc. For media enquiries contact: Patrick Kerr, Reed Elsevier, tel. +44 (0)20 7166 5646 Notes to Editors: About Reed Elsevier Reed Elsevier Group plc is a world leading publisher and information provider.It is owned equally by its two parent companies, Reed Elsevier PLC and ReedElsevier NV. The parent companies are listed on the London, Amsterdam and NewYork Stock Exchanges, under the following ticker symbols: London: REL;Amsterdam: REN; New York: RUK and ENL. In 2007, Reed Elsevier had revenues fromits continuing operations of £4.6bn. The group employs 32,000 people, includingapproximately 16,000 in North America. Operating in the scientific, medical,legal, risk and business-to-business sectors, Reed Elsevier provides high valueand flexible information solutions to professional end users, with increasingemphasis on internet delivery. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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