Profile: Reed Elsevier PLC (RUK)

Reed Elsevier PLC is a provider of professional information solutions. As of December 31, 2011, the Company was organized in five business segments: Elsevier, providing scientific, technical and medical information solutions; LexisNexis Risk Solutions, providing risk information and analytics to business and government customers; LexisNexis Legal & Professional, providing legal, tax, regulatory and business information solutions to professionals, business and government customers; Reed Exhibitions, organising trade exhibitions and conferences, and Reed Business Information, providing information and marketing solutions to business professionals. Its principal operations are in North America and Europe. During the year ended December 31, 2011, North America geographic market, based on revenue by destination, contributed 54% of its total revenue. In 2011, 47% of Reed Elsevier’s revenue was derived from subscriptions; 27% from circulation and transactional sales; 12% from exhibition fees; 7% from advertising sales, and 7% from other sources. In February 2011, Elsevier acquired Datong, an online provider of drug information. In November 2011, ClinicalKey was launched in beta allowing physicians to access the reference and evidence-based medicine in a site built to accommodate their clinical information workflows. In December 2011, Elsevier acquired Ariadne Genomics, a provider of pathway analysis tools and semantic technologies for life science researchers. Elsevier acquired QUOSA in January 2012.

Elsevier

Elsevier is a provider of scientific and medical information and serves scientists, health professionals and students worldwide. Elsevier is a global business with principal operations in Amsterdam, Beijing, Boston, Chennai, Delhi, London, Madrid, Milan, Munich, New York, Oxford, Paris, Philadelphia, Rio de Janeiro, St. Louis, San Diego, Singapore and Tokyo. Elsevier is organized around two market-facing businesses: Science & Technology, which serves the scientific and technology communities, and Health Sciences, which serves the health community. Both of these businesses are supported by a global shared services organization, which provides integrated editorial systems and production services, product platforms, distribution, and other support functions. Science & Technology is a scientific information provider. It delivers an array of information and workflow tools. Its customers are scientists, academic institutions, research leaders and administrators, corporations and governments, which rely on Elsevier to provide content; review, publish, disseminate and preserve research findings, and create tools. The Science and Technology division contributed 52% of the total Elsevier revenue in 2011. Of this revenue, 77% came from research (journals), 9% from reference education (books) and 14% from databases and tools. Approximately 34% of Science & Technology revenue in 2011, was derived from North America, 34% from Europe and the remaining 32% from the rest of the world.

Elsevier publishes over 240,000 new science and technology research articles each year through some 1,250 journals. The customers receive these journals through ScienceDirect, a database of scientific and medical research, providing access to over 10 million scientific and medical journal articles, used by over 7 million researchers each year. Elsevier also publishes over 700 new English language science and technology book titles annually, supporting bibliographic data, indexes and abstracts, and review and reference works. 15,000 online books are available on ScienceDirect, with over 1,000 online books added each year. Other products include Scopus and Reaxys. Scopus is the abstract and citation database of research literature, with abstracts and bibliographic information on more than 45 million scientific research articles from 19,000 peer reviewed journals and over 5,000 international publishers. Scopus also has data on more than 24 million patents. Reaxys is a solution for synthetic chemists that integrate chemical reaction and compound data searching with synthesis planning. SciVerse Hub provides a single search interface for accessing ScienceDirect, Scopus and scientific Web content. In addition, SciVerse Application Marketplace & Developer Network enables researchers and third party developers to build customized applications on top of Elsevier’s information and other data and analytics. SciVal Funding assists researchers and institutions in identifying grants that are most relevant in their research areas. SciVal Experts enables researchers to establish a directory of experts in their area of interest, while SciVal Strata facilitates performance benchmarking by research teams.

Health Sciences is a medical information provider. Through its medical journals, books, reference works, databases and online information tools, Elsevier provides critical information and analysis. Health Sciences serves medical researchers, doctors, nurses, allied health professionals and students, as well as hospitals, research institutions, health insurers, managed healthcare organizations and pharmaceutical companies. Health Sciences contributed approximately 48% of the total Elsevier revenue in 2011. This revenue came from five sectors: global medical research; clinical reference/clinical decision support; nursing/health professional education; global pharma promotion; and international (other), each of which contribute approximately 20% to revenue. Approximately 52% of Health Sciences revenue by destination in 2011, was derived from North America, 27% from Europe and the remaining 21% from the rest of the world. Elsevier publishes over 700 health sciences journals, including on behalf of learned societies, and, in 2011, 1,500 new health sciences book titles and clinical reference works were published both in print and through ScienceDirect and other electronic platforms, such as MD Consult. MD Consult is an online clinical information service with more than 2,400 institutional customers. Flagship titles include medical journals, such as The Lancet, and medical reference works, such as Gray’s Anatomy, Nelson’s Pediatrics and Netter’s Atlas of Human Anatomy.

Elsevier offers medical education and training resources, particularly to the nursing and allied health professions. From print and electronic books to virtual clinical patient care, Health Sciences supports students, teaching faculties and healthcare organizations in education and practice. The Evolve portal provides a resource to support faculty and students and had 3 million registered users in 2011; Evolve Reach (Health Education Systems Inc.) provides online review and testing tools for nursing and the allied health professionals; Evolve Teach provides online resources and solutions to support faculty. Gold Standard provides information on drug interactions; CPM Resource Center provides a data driven framework to support nurses in undertaking procedures; Nursing Consult provides nursing care guidelines in trauma and disease management, and MEDai uses patient data and analytics to help identify areas for improvement in clinical practice within hospitals. Elsevier also provides services to the pharmaceutical industry through advertising and sponsored communications to the specialist community it serves. The shared service functions provide production, information technology, customer service, fulfilment and distribution for both the Science & Technology and Health Sciences divisions. Much of the pre-press production for journals and books is outsourced.

Elsevier is the master brand used for both the Science & Technology and Health Sciences businesses. Elsevier’s major brands include Cell, a life sciences journal in cell biology, and The Lancet, a medical journal. Many other products and journals are major brands in their fields, including Scopus, a scientific abstract and citation database; SciVal, a suite of funding intelligence and research performance tools for academic institutions; Reaxys, a Web-based chemical reaction workflow solution for industrial chemists; pharmapendium, access to history of drug development through an online platform; MDConsult, an online clinical information service, including reference works, journals and drug information; Mosby’s Nursing Consult, online evidence-based content to inform nursing clinical decisions at the point of care; Evolve, integrated, online resources, and MEDai, a clinical decision support tool to identify areas for improvement in medical practice.

Lexisnexis Risk Solutions

LexisNexis Risk Solutions is a provider of solutions that combine proprietary, public and third-party information, analytics and advanced technology. With effect from January 1, 2011 LexisNexis was reorganized as two separate businesses, LexisNexis Risk Solutions and LexisNexis Legal & Professional. LexisNexis Risk Solutions has principal operations in Georgia, Florida and Ohio. In 2011, approximately 85% of LexisNexis Risk Solutions’ revenue came from circulation and transactional sales, 12% from subscription sales, and the remaining 3% from other sources. 96% of LexisNexis Risk Solutions’ revenue is delivered electronically. LexisNexis Risk Solutions is organized around market facing industry/sector groups, such as insurance, government, screening, and business services (including the receivables management, financial services and corporate groups). A number of transactional support activities, including some financial processes, are provided from a shared services organization managed by the LexisNexis Legal & Professional business. The LexisNexis Legal & Professional business also distributes LexisNexis Risk Solutions products into legal markets in the United States and internationally.

Insurance Solutions provides a combination of data and analytics to property and casualty (P&C) personal and commercial insurance carriers in the United States. Data PreFill provides information directly into the insurance workflow on customers, potential customers and their auto ownership, and Current Carrier, identifies current or previous insurance, as well as any lapses in coverage. Business Services provides financial institutions with risk management, identity verification, fraud detection, credit risk management, and compliance solutions. The business provides risk and identity management solutions for corporate customers in retail, telecommunications and utilities sectors. The LexisNexis Risk Solutions business also provides identity verification and risk related information to the legal industry. Government solutions provides investigative solutions to the United States federal, state and local law enforcement and government agencies to help solve criminal and intelligence cases and to identify fraud, waste and abuse in government programmes. Screening Solutions focuses on employment-related, resident and volunteer screening, with the largest segment being pre-employment screening services offered across a number of industries, including retail, recruitment, banking and professional services.

The identity verification and risk evaluation solutions provided by LexisNexis Risk Solutions utilize a database of public records and proprietary information. LexisNexis Accurint is the flagship identity verification product. This technology enables Risk Solutions to provide its customers with search results. In 2011, LexisNexis Risk Solutions launched an open-source initiative called HPCC Systems. LexisNexis is the master brand used by LexisNexis Risk Solutions. LexisNexis Risk Solutions’ major brands include C.L.U.E., a personal insurance claims database; LexisNexis Data Prefill, a tool to automate the insurance application process providing critical information insurers need to quote and underwrite a policy; LexisNexis Insurance Exchange, a platform for sharing of customer application data; Accurint for Collections, a solution to help locate debtors; Accurint LE Plus, an integrated suite of tools for the United States law enforcement investigators; LexisNexis Identity Management, a range of solutions to help clients verify that an identity exists and authenticate individuals; LexisNexis Anti-Money Laundering Solutions, content and information for anti-money laundering compliance, risk mitigation and enhanced due diligence; LexisNexis Employment Screening, a provider of pre-employment screening solutions, and LexisNexis Resident Screening, a multi-family housing screening and collections service.

LexisNexis Legal & Professional

LexisNexis Legal & Professional is a provider of content and information solutions for legal and other corporate markets. LexisNexis Legal & Professional has principal operations in Ohio and New Jersey in the United States, in London and Paris in Europe, Canada, and in a number of other countries in Africa and Asia Pacific. In 2011, approximately 70% of LexisNexis Legal & Professional’s revenue came from subscription sales, 8% from transactional sales, 6% from advertising, including directory listings, and the remaining 16% from other sources. Approximately 68% of Legal & Professional’s revenue by destination in 2011, was derived from North America, 21% from Europe and the remaining 11% from the rest of the world. 75% of LexisNexis Legal & Professional’s revenues were delivered electronically. LexisNexis Legal & Professional is organized through market facing businesses, Research & Litigation Solutions and Business Solutions in the United States and LexisNexis Europe, Middle East, Africa and Australasia and LexisNexis Asia (together reported as International) outside the United States.

LexisNexis Legal & Professional is a provider of legal and business information and analysis to law firms, corporations and government throughout the United States. In Research & Litigation Solutions, the flagship products for legal research are Lexis.com and Lexis Advance, which provide federal and state statutes and case law, together with analysis and expert commentaries from sources, such as Matthew Bender and Michie and the citation service Shepard’s, which advises on the continuing relevance of case law precedents. Through its suite of litigation services, LexisNexis Legal & Professional additionally provides lawyers with tools for electronic discovery, evidence management, case analysis, court docket tracking, e-filing, expert witness identification and legal document preparation. LexisNexis Legal & Professional also partners with law schools to provide services to students as part of their training. In December 2011, LexisNexis Legal & Professional released in the United States the next iteration of Lexis Advance, a Web application designed to transform how legal professionals conduct research. LexisNexis Legal & Professional employs lawyers and trained editors with professional legal backgrounds who review, annotate and update the legal content.

In the United States in 2011, LexisNexis Legal & Professional launched LexisNexis Firm Manager, an online legal practice management application for solo practitioners and small law practices. Among other product releases, LexisNexis Legal & Professional also released Early Data Analyzer, which provides lawyers with insight into the size and scope of discovery and an updated version of Lexis for Microsoft Office, which enables lawyers to conduct their Lexis searches within Microsoft applications, such as Word and Outlook. In 2011, LexisNexis Legal & Professional rationalized its electronic discovery offerings and divested the Applied Discovery business. Business Solutions provides law firms with practice management solutions, including time and billing systems, case management, cost recovery and document management services. LexisNexis Legal & Professional assists law firms in their client development through Lawyers.com, showcasing the qualifications and credentials of more than one million lawyers and law firms in the United States and internationally, and providing law firms with Website development, search engine optimization and other Web marketing services. LexisNexis Legal & Professional also provides its legal and information services to the United States Government, corporate and academic customers, including news and business information and public records. In addition to research and litigation services, capabilities for these customers include specialist products for corporate counsel focused on regulatory compliance, intellectual property management, and management of external counsel.

In International markets outside the United States, LexisNexis Legal & Professional serves legal, corporate, government and academic markets in Europe, Canada, Africa and Asia Pacific with local and international legal, tax, regulatory and business information. In the United Kingdom, LexisNexis Legal & Professional is a legal information provider in its market. It delivers an array of content and services, comprising a collection of primary and secondary legislation, case law, expert commentary, and forms and precedents. Its portfolio includes Halsbury’s Laws of England, Simon’s Taxes and Butterworths Company Law Service delivered through the United Kingdom’s flagship online product LexisLibrary and in print. Other electronic products include Lexis Legal Intelligence, a resource on legal practice for lawyers, and media monitoring and reputation management tools for the corporate market, such as the NexisDirect research tool. Additionally, LexisNexis Legal & Professional provides law firms with practice management solutions. In France, LexisNexis Legal & Professional is a provider of information to lawyers, notaries and courts with JurisClasseur and La Semaine Juridique being the principal publications, delivered through lexisnexis.fr and in print. Lexis Legal Intelligence provides primary law, practical guidance, learning and productivity tools. In the United Kingdom, the practical guidance service LexisPSL has 13 practice areas, including company, commercial, corporate, banking and finance. A similar service has been launched in Australia, with five practice areas in 2011.

LexisNexis is the master brand used by LexisNexis Legal & Professional. LexisNexis Legal & Professional’s major brands include Lexis, legal, news and public records content for legal professionals; Nexis, news and business content for legal and other professionals; Matthew Bender, critical legal analysis, checklists, forms, and practice guides authored by industry experts covering 50 major practice areas; CaseMap, software allowing litigators to assess and analyse case information; Lexis for Microsoft Office, an integration of LexisNexis content, open Web search and Microsoft Office; LexisNexis Verdict & Settlement Analyzer, an early case assessment tool for researching and evaluating the risk and opportunity associated with a case; lawyers.com, a Website for consumers seeking legal information and counsel; Lexis Library, LexisNexis United Kingdom flagship legal online product; Lexis PSL, LexisNexis United Kingdom legal practical guidance service, and JurisClasseur, an online legal resource in France.

Reed Exhibitions

Reed Exhibitions’ portfolio of exhibitions and conferences serves 44 industry sectors across the Americas, Europe, the Middle East and Asia Pacific. In 2011, Reed Exhibitions brought together over six million event participants from around the world. Reed has principal offices in Paris, Vienna, Norwalk (Connecticut), Abu Dhabi, Beijing, Tokyo, Sydney and Sao Paulo. Over 70% of Reed Exhibitions’ revenue is derived from exhibitor participation fees, with the balance primarily comprising of conference fees, advertising in exhibition guides, sponsorship fees and admission charges. In 2011, approximately 18% of Reed Exhibitions’ revenue came from North America, 52% from Europe and the remaining 30% from the rest of the world on an event location basis. Reed Exhibitions organizes market events that are relevant to industry needs, where participants from around the world come together to do business, network and learn. Its exhibitions and conferences encompass a range of sectors, including broadcasting, television, music and entertainment; building and construction; electronics and electrical engineering; alternative energy, oil and gas; engineering, manufacturing and processing; gifts; interior design; information and technology and telecoms; jewellery; life sciences and pharmaceuticals; marketing; property and real estate; sports and recreation, and travel.

In January 2012, Reed Exhibitions took ownership of its joint venture Alcantara Machado, Brazil’s exhibition organizer. Reed Exhibitions’ major brands include Mipcom, an entertainment content market; World Travel Market, a global event for the travel industry; Mipim, a global event for the property industry; Mecanica, an international machinery trade fair; JCK Las Vegas, a North American jewellery industry trade event; World Future Energy Summit, a platform for sustainable future energy solutions; Equip’hotel Paris, an event for the restaurant, hotel, cafe and catering industries; In-cosmetics, an international exhibition for personal care ingredients, and Gifts & Home, a business gifts and home fair in China.

Reed Business Information

Reed Business Information (RBI) provides data services, information and marketing solutions to business professionals in the United Kingdom, the United States, Continental Europe, Asia and Australia. It produces data services and generation tools, online community and job sites, as well as business magazines. Approximately 24% of RBI revenue in 2011, came from North America, 23% from the United Kingdom, 39% from Continental Europe and 14% from the rest of the world. RBI has principal operations in Amsterdam in the Netherlands, Boston, Los Angeles, Skokie (Illinois) and Norcross (Georgia) in the United States, as well as Paris, Milan, Madrid, Bilbao, Sydney and Shanghai. RBI’s data services include ICIS, a global information and pricing service for the petrochemicals and energy sector; BankersAccuity (previously Bankers’ Almanac and Accuity), a provider of reference data on the banking industry; XpertHR, an online service providing human resources (HR) data, regulatory guidance, best practices and tools for HR professionals, and Reed Construction Data, a provider of online construction data to the North American construction industry. The online marketing solutions include totaljobs.com, the United Kingdom online recruitment site, and Hotfrog, a global online business directory.

In January 2011, RBI completed the transaction to take majority ownership of CBI China, a petrochemical and energy information service in China. In June 2011, RBI acquired Ascend, a provider of online fleet data and valuations to the aviation industry. In November 2011, RBI completed the acquisition of Accuity Inc. Accuity is a provider of online subscription-based data solutions for the financial services industry. RBI also sold the UK QSS magazine subscription fulfilment business during 2011. RBI’s major brands include ICIS, a global provider of news and pricing data to the chemical and energy industries; BankersAccuity, a supplier of banking intelligence to the global financial industry; XpertHR, an HR legal compliance and practice toolkit; Ascend, online aircraft and engine data; totaljobs.com, a generalist Website attracting over 3.7 million jobseekers and carrying over 125,000 jobs every month; Reed Construction Data, construction data, building product information, cost data, market analysis and advertising channels to construction industry professionals; Variety, source of entertainment business news and analysis; Elsevier, a news and opinion magazine in the Netherlands, and New Scientist, a science and technology media brand.