arcourt: financing
DESCRIPTION
ARCOURT: FINANCING. Crispin Davis, CEO Barcelona, 2 April 2001. ACCELERATED REVENUE AND PROFIT GROWTH. STRONG PLATFORM FOR GROWTH. Focus on four core businesses Attractive global growing markets Targeted at professional users Proprietary, must have content Annual subscription model - PowerPoint PPT PresentationTRANSCRIPT
ARCOURT: FINANCING
ACCELERATED REVENUE AND PROFIT GROWTHCrispin Davis, CEOBarcelona, 2 April 2001
STRONG PLATFORM FOR GROWTH
• Focus on four core businesses
• Attractive global growing markets
• Targeted at professional users
• Proprietary, must have content
• Annual subscription model
• Internet accelerating growth opportunities
KEY FOUNDATIONS OF GROWTH STRATEGY
UpgradeManagementEffectiveness
AddAcquisitions/
Alliances
BuildGlobal
Capability
SubstantialInvestment
Major CostSavings
DemonstrablySuperiorProducts
UpgradeSales &
Marketing
UPGRADEDSCIENCEDIRECT
PRODUCT
INTERNET MIGRATIONCUSTOMER PREFERENCE
MODERATEPRICINGPOLICY
AGGRESSIVESALES ANDMARKETING
HIGHERPENETRATION
HIGHER USAGE
STRONGER RENEWALS
ACCELERATED REVENUE GROWTH
SCIENCE & MEDICAL: STRATEGY FOR GROWTH
NAVIGATION
Abstracts & Indices (30m)
Print Journals
Full text searchable database
ARCHIVE
Growing electronic archive
SUBJECT PORTALS
Physics, Engineering,
Chemistry etc.
SCIRUS
Linkage to web
scientific data
ACADEMIC WORKBENCH
Authorship and pre-
publication tools
SCIENCE & MEDICAL: EXPANDED SCIENCEDIRECT OFFERING
1015
25
35
4552
65
0
10
20
30
40
50
60
70
Mar 99 Aug 99 Feb 00 Aug 00 Dec 00 Feb 01 Dec 01
%
SCIENCEDIRECT: INCREASE IN PENETRATION
SCIENCEDIRECT: INCREASE IN USAGE
02468
101214161820
Jan
99
Feb 9
9
Mar
99
Apr 99
May
99
Jun 9
9
Jul 9
9
Aug 99
Sep 9
9
Oct 9
9
Nov 99
Dec 99
Jan
00
Feb 0
0
Mar
00
Apr 00
May
00
Jun 0
0
Jul 0
0
Aug 00
Sep 0
0
Oct 0
0
Nov 00
Dec 00
Jan
01
Feb 0
1
mil
lio
ns
No of Page Views
SCIENCE & MEDICAL: REACHING NEW USERS
• All 12 universities and national library
• Upsold from 450 to all 1,100 journals
• 5 year contract
• Potential for additional revenues
- New customers (lower level colleges)
- Upselling (backfiles, additional functionality, abstract databases)
Example: Dutch Consortium
SCIENCE & MEDICAL: REACHING NEW USERS
Ohio State University
China
KoreaAustralia
Taiwan
Brazil
Canada
Bavaria
Vale (USA)
Nord Rhein Westpahlia
SCIENCE & MEDICAL: 2001 PRIORITIES
• Further upgrade of ScienceDirect
• Broaden user base
• Successfully integrate Harcourt STM
LEGAL: US STRATEGY FOR GROWTH
ACCELERATED REVENUE GROWTH
US LAW SCHOOL PREFERENCE
SMALL LAWPROGRAMME
UPGRADEDSALES AND MARKETING
COMPETITIVEPRODUCTlexis.comnexis.com
STRONGERRENEWALS
HIGHER PENETRATION
HIGHER USAGE
INTERNET MIGRATIONCUSTOMER PREFERENCE
LEGAL : PRODUCT UPGRADE PROGRAMME
TAXCCH/Tax Analysts
LEGALExpanded E-treatises
Improved Linkages
CITATORFunctionality
Upgrade
CASE SUMMARIES300 700 Editors
$19m Investment in 2001
WEB RELIABILITYPrivate Nodes
EASE OF USENew lexis.com
New WebSphere Platform
NEWS & BUSINESSFT Profile/
Company Dossier
PUBLIC RECORDSRiskwise/Corp America
Acquisitions
LEGAL: MIGRATION TO ELECTRONIC INFORMATION
60
62
64
66
68
70
72
74
1999 2001 2003
%
US: % Electronic Revenues
LEGAL: US LAW SCHOOL PREFERENCE PARITY
0
10
20
30
40
50
60
Fall 1997 Fall 1998 Spring1999
Fall 1999 Spring2000
Fall 2000
%
LEXIS Preference Overall
1519
22
3235
54
LEGAL: CUSTOMISED SOLUTIONS
CUSTOMISED E-SOLUTIONS
KNOWLEDGEMANAGEMENTPORTALSpecialised portal for law firms
CUSTOMWEB PAGESEasy access tospecific forms and sources
INTRANET SOLUTIONSCustomisedlegal intranets
PRACTICE PAGESCustomised approachto specific practiceareas
LEXIS - NEXIS DATABASE/CONTENT
LEGAL: KNOWLEDGE MANAGEMENT PORTAL
• “One search” technology for simultaneous search of legal resources, website, news feeds and internal documents
• Enhanced productivity
• Simplified navigation
• Improved client communication tools
• Proven software
Lawyer receivesLawyer receivese-maile-mail
ContentContentSuggestedSuggested
Answer oneAnswer oneClick awayClick away
LEGAL: BUTTERWORTHS LEXIS DIRECT
Pre-emptive Search
• Automatic alerting to highly relevant Butterworths Lexis direct content
LEGAL: BUTTERWORTHS LEXIS DIRECT
• 2000 revenues £4.5m, up 400% on 1999
• 85,800 current paying customers
• 1,000 new individual subscribers each week
• 1.25m page impressions per week
LEGAL: 2001 PRIORITIES
• Continued product upgrade
• Monetise increased usage
• Adopt Lexis Nexis as global brand and product platform
• Expand geographical presence in key markets
BUSINESS: STRATEGY FOR GROWTH
ACCELERATED REVENUE GROWTH
PRINT LAUNCH AND EXTENSION
LEADING INTERNETPORTALS
UPGRADEDSALES AND MARKETING
CONTENT AND DATA AQUISITION
NEW REVENUESOURCES
STRONGER ADVERTISING PROPOSITION
HIGHER VOLUMES
EXPANSION OF SERVICES CUSTOMER PREFERENCE
BUSINESS: NEW AND UPGRADED PORTALS LAUNCHED
0
20
40
60
80
1999 2000 2001
£ st
erli
ng
mBUSINESS: INTERNET B2B REVENUE GROWTH
• Traffic and revenues building
• Size of market opportunity smaller
• Investment slightly reduced and reprioritised
Organic Including Acquisitions
15
39
70
Performance Chemicals
Europe
European Chemical
News
Asian Chemical
News
Asia Pacific
Chemical
BUSINESS: BUILDING ON PRINT STRENGTHS
CNI
Real time news
Data bases
Magazine archives
CNI
Chemical News &
Intelligence
Global chemical business
news, analysis
and data 24 hours a day
BUSINESS: BUILDING ON PRINT STRENGTHS
Vertical Portals- sector focused information
Hospitality
Horizontal Portals Tax, Finance, Legal, Marketing, HR
Comprehensive business solutions
Agriculture
Horticulture
Food
etc.
ZIBB.NL
BUSINESS: ZIBB.NL WEEKLY PAGE VIEWS
0
20
40
60
80
100
120
140
Oct 00 Dec 00 March 01
(000)
BUSINESS: PORTFOLIO REFOCUS AND EXPANSION
+13% REVENUE; STRONG SHARE GROWTHFEWER, FASTER GROWING, HIGHER QUALITY SECTORS
Construction
Entertainment
Global Chemicals
European Exhibitions
Travel
US Auto, Metals, Food Processing
Tuition Businesses
Bowker Directories
Non Core Titles, Exhibitions, Reference
+ -
Electronics
• Maintain print momentum
• Maximise revenues and returns from internet
• Drive global strategy
• Respond quickly to changing economic environment
BUSINESS: 2001 PRIORITIES
PROGRESS ON HARCOURT ACQUISITION
• Results (year to October 2000) reaffirmed very positive momentum
• Meetings with management encouraging and confirmed opportunity
• Integration plans well advanced
• Strategies and programmes for growth developing well
• Regulatory process targeted for mid year completion
KEY OBJECTIVES FOR 2001
• Drive benefits from strengthened management structure
• Continue to execute effectively against strategic milestones
• Accelerate revenue growth, exceeding market growth in 75% of businesses
• Grow operating margin through increased efficiency
• Accelerate profit growth strongly towards double digit
• Integrate Harcourt successfully
STRONG PLATFORM FOR GROWTH
+
Attractive global growing businesses
Targeted at professional users
Proprietary, must have content
Annual subscription model
Internet accelerating growth opportunities
Clear strategy
Management in place
Resources applied
Execution firmly on track