Annual Report and Financial Statements 2021
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Annual report and financial statements 2021
About us
RELX is a global provider of information-based analytics and decision tools for professional and business customers, enabling them to make better decisions, get better results and be more productive.
Our purpose is to benefit society by developing products that help researchers advance scientific knowledge; doctors and nurses improve the lives of patients; lawyers promote the rule of law and achieve justice and fair results for their clients; businesses and governments prevent fraud; consumers access financial services and get fair prices on insurance; and customers learn about markets and complete transactions.
Our purpose guides our actions beyond the products that we develop. It defines us as a company. Every day across RELX our employees are inspired to undertake initiatives that make unique contributions to society and the communities in which we operate.
Forward-looking statements
This Annual Report 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 risks and uncertainties that could cause actual results or outcomes of RELX PLC (together with its subsidiaries, "RELX", "we" or "our") to differ materially from those expressed in any forward-looking statement. We consider any statements that are not historical facts to be "forward-looking statements". The terms "outlook", "estimate", "forecast", "project", "plan", "intend", "expect", "should", "could", "will", "believe", "trends" and similar expressions may indicate a forward-looking statement. Important factors that could cause actual results or outcomes to differ materially from estimates or forecasts contained in the forward-looking statements include, among others: the impact of the Covid-19 pandemic as well as other pandemics or epidemics; current and future economic, political and market forces; changes in law and legal interpretations affecting RELX intellectual property rights and internet communications; regulatory and other changes regarding the collection, transfer or use of third-party content and data; changes in the payment model for RELX products; demand for RELX products and services; competitive factors in the industries in which RELX operates; inability to realise the future anticipated benefits of acquisitions; significant failure or interruption of RELX systems; exhibitors' and attendees' ability and desire to attend face-to-face events and availability of event venues; changes in economic cycles, severe weather events, natural disasters and terrorism; compromises of RELX cyber security systems or other unauthorised access to our databases; failure of third parties to whom RELX has outsourced business activities; inability to retain high-quality employees and management; legislative, fiscal, tax and regulatory developments; exchange rate fluctuations; and other risks referenced from time to time in the filings of RELX PLC with the US Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this Annual Report. Except as may be required by law, we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Annual Report or to reflect the occurrence of unanticipated events.
RELXAnnual report and financial statements 2021 | 1 |
Contents | Overview* | |
2 | 2021 Financial highlights | |
3 | Chair's statement | |
4 | Chief Executive Officer's report | |
5 | RELX business overview | |
Market segments* | ||
14 | Risk | |
20 | Scientific, Technical & Medical | |
26 | Legal | |
32 | Exhibitions | |
Corporate responsibility* | ||
39 | Corporate responsibility overview | |
Financial review* | ||
60 | Chief Financial Officer's report | |
66 | Principal and emerging risks | |
Governance | ||
72 | Board Directors | |
74 | RELX Senior Executives | |
76 | Chair's introduction to corporate governance | |
77 | Corporate governance review | |
97 | Report of the Nominations Committee | |
100 | Directors' remuneration report | |
122 | Report of the Audit Committee | |
125 | Directors' report | |
Financial statements | ||
and other information | ||
130 | Independent auditor's report | |
138 | Consolidated financial statements | |
185 | RELX PLC annual report and financial statements | |
190 | Summary financial information in euros | |
191 | Summary financial information in US dollars | |
192 | Alternative performance measures | |
201 | Shareholder information | |
IBC | 2022 financial calendar | |
* Comprises the Strategic Report in accordance with The (UK) | ||
Companies Act 2006 (Strategic Report and Directors' Report) | ||
Regulations 2013. |
Overview
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Responsibility Corporate
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Governance
To download the full Annual Report and Financial Statements, and for further information about our businesses visit relx.com
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2 RELXAnnual report and financial statements 2021 | Overview
2021 Financial highlights
- Underlying revenue growth of +7%
- Underlying adjusted operating profit growth of +13%
- Constant currency adjusted profit before tax growth of +15%
- Reported operating profit £1,884m (2020: £1,525m)
- Reported profit before tax £1,797m (2020: £1,483m)
- Adjusted EPS 87.6p (2020: 80.1p), constant currency growth +17%
- Reported EPS 76.3p (2020: 63.5p)
- Net debt/EBITDA 2.4x; adjusted cash flow conversion 101%
- Proposed full year dividend 49.8p (2020: 47.0p) +6%
RELX financial summary
REPORTED FIGURES | 2021 | Change at | |||
2020 | constant | Change | |||
For the year ended 31 December | £m | £m | Change | currencies | underlying |
Revenue | 7,244 | 7,110 | +2% | +8% | +7% |
Operating profit | 1,884 | 1,525 | +24% | ||
Profit before tax | 1,797 | 1,483 | +21% | ||
Net profit attributable to RELX PLC shareholders | 1,471 | 1,224 | +20% | ||
Net margin | 20.3% | 17.2% | |||
Net debt | 6,017 | 6,898 | |||
Reported earnings per share | 76.3p | 63.5p | +20% | ||
Ordinary dividend per RELX PLC share | 49.8p | 47.0p | +6% | ||
ADJUSTED FIGURES | 2021 | Change at | |||
2020 | constant | Change | |||
For the year ended 31 December | £m | £m | Change | currencies | underlying |
Operating profit | 2,210 | 2,076 | +6% | +13% | +13% |
Operating margin | 30.5% | 29.2% | |||
Profit before tax | 2,077 | 1,916 | +8% | +15% | |
Net profit attributable to RELX PLC shareholders | 1,689 | 1,543 | +9% | +17% | |
Net margin | 23.3% | 21.7% | |||
Cash flow | 2,230 | 2,009 | +11% | +20% | |
Cash flow conversion | 101% | 97% | |||
Return on invested capital | 11.9% | 10.8% | |||
Adjusted earnings per share | 87.6p | 80.1p | +9% | +17% |
The shares of RELX PLC are traded on the London, Amsterdam and New York stock exchanges. RELX PLC and its subsidiaries, joint ventures and associates are together known as 'RELX'.
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 2020, we also excluded exceptional costs in the Exhibitions business. Reconciliations between the reported and adjusted figures are set out on pages 193 to 197. Underlying growth rates are calculated at constant currencies, excluding the results of acquisitions until 12 months after purchase, and excluding the results of disposals and assets held for sale. Underlying revenue growth rates also exclude exhibition cycling. Constant currency growth rates are based on 2020 full-year average and hedge exchange rates.
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Chair's statement
Overview
I am delighted to succeed Sir Anthony Habgood as chair of RELX. Anthony stood down in March 2021 having served the company since June 2009. Throughout his tenure he provided strong leadership to the Board and exemplary counsel to the executive team. On behalf of the Board, I would like to thank Anthony for the outstanding contribution he made to the success of RELX during his tenure.
During my first year at RELX, I have been impressed by RELX's resilience, the strength of our strategy and business model, as well as our ability to innovate and continue to deliver value to our customers. As I met more members of the leadership team, the depth of talent at RELX quickly became apparent.
I am particularly proud of the company's response to the global Covid-19 pandemic. Over the last few years, the health and well-being of our employees has been paramount, a reflection of RELX's strong culture and values. At the same time, our business has also contributed hugely to the understanding of Covid-19 and its public health implications, helping our customers and broader society mitigate its effects. Elsevier's free Novel Coronavirus Information Centre provided over 175million downloads during the year while a product from LexisNexis Risk Solutions provided researchers, academics and the public with a dashboard that analysed open-sourced data from Johns Hopkins University and other sources.
During 2021, RELX continued to execute on its strategic priorities aimed at achieving better customer outcomes, a higher growth profile, improving returns and ensuring a positive impact on society. Underlying revenue growth was 7%, with underlying adjusted operating profits up 13% as we continued to grow revenues ahead of costs. Adjusted earnings per share grew 9% in sterling to 87.6p (80.1p), and 17% at constant currencies. Reported earnings per share were 76.3p (63.5p).
Dividends
We are proposing a full year dividend increase of 6% to 49.8p. The long-term dividend policy is unchanged.
Balance sheet
Net debt was £6.0bn at 31 December 2021, down from £6.9bn last year. Net debt/EBITDA including pensions was 2.4x, compared with 3.3x in 2020. Capital expenditure represented 5% of revenues.
Share buybacks
The share buyback was suspended in April 2020. In 2022, we intend to resume purchases by deploying a total of £500m on share buybacks.
IhavebeenimpressedbyRELX's resilience,thestrengthofour strategyandbusinessmodel, aswellasourabilitytoinnovate andcontinuetodelivervalueto ourcustomers.
Paul Walker, Chair
The Board
Linda Sanford, who has been on the Board since 2012, will be stepping down as a Non-Executive Director after the annual general meeting in April 2022. Linda served with distinction on the remuneration and corporate governance committees, and I would like to thank her for her exceptional service to RELX and her support and advice.
Environment, Social and Governance
RELX has recognised the importance of corporate responsibility (CR) for two decades. The Board prioritises the highest standards of CR as an integral component of the overall performance of the company. Accordingly, throughout the year, the Board discussed CR issues and tracked performance on annual and longer-run CR objectives.
For the first time, we held a CR teach-in to help investors who are increasingly engaging with us on Environmental, Social and Governance (ESG) issues. The event provided an overview of CR governance at RELX and insights on our unique contributions to society which is at the heart of our business. When I met with investors afterwards, they expressed their appreciation for the insights provided.
During the year, our ESG performance was again recognised by third parties. RELX held a AAA MSCI ESG rating for a sixth consecutive year and was weighted fourth in MSCI's UK ESG Leaders Index; ranked 11th out of 14,000+ companies globally and first in our sector by Sustainalytics; came fourth in the Responsibility100 Index, a ranking of the FTSE 100 on performance against the UN Sustainable Development Goals; was third in sector in the Dow Jones Sustainability Index; and was one of 38 LEAD companies of the UN Global Compact among more than 12,000 signatories.
We challenge ourselves every year to ensure that we continue to meet the highest CR standards now and in the future and that we continue to improve on our key measures (full details are available in the 2021 RELX Corporate Responsibility Report).
Finally, I would like to thank all RELX employees for their achievements in 2021. I have every confidence that with their efforts, RELX will continue to grow and prosper in the years to come.
Paul Walker
Chair
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Responsibility Corporate
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Governance
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Relx plc published this content on 16 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 February 2022 19:07:07 UTC.