RELX |
1 | |
|
2 | RELX | |
|
◾ |
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% |
Change at | ||||||||||||||||||||
2021 |
2020 | constant | Change | |||||||||||||||||
£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% |
Change at | ||||||||||||||||||||
2021 |
2020 | constant | Change | |||||||||||||||||
£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% |
RELX |
3 | |
|
4 | RELX | |
|
RELX |
5 | |
|
6 | RELX | |
|
RELX |
7 | |
|
Segment position | ||
Risk |
Key verticals #1 | |
Scientific, Technical & Medical |
Global #1 | |
Legal |
US #2 Outside US #1 or 2 | |
Exhibitions face-to-face, |
Global #2 |
Revenue |
Adjusted operating profit |
|||||||||||||||
2021 £m |
Change underlying |
2021 £m |
Change underlying |
|||||||||||||
Risk |
2,474 |
+9% | 915 |
+10% | ||||||||||||
Scientific, Technical & Medical |
2,649 |
+3% | 1,001 |
+3% | ||||||||||||
Legal |
1,587 |
+3% | 326 |
+5% | ||||||||||||
Exhibitions |
534 |
+44% | 10 |
nm* | ||||||||||||
Unallocated items |
(42 |
) |
||||||||||||||
7,244 |
+7% | 2,210 |
+13% |
8 | RELX | |
|
65% In Ohio, fraud in initial Pandemic Unemployment Assistance applications was reduced by more than 65% in the first week of implementation 240,000 The Kansas Department of Labor’s website was able to block over 240,000 fraudulent logins and bot attacks in the first day of implementation |
|
LexisNexis Risk Solutions was among the suite of technologies adopted by the Ohio Department of Job and Family Services to combat unemployment insurance fraud during the pandemic. These tools, including enhanced identity verification, helped better deflect fraud and resulted in a dramatic decrease in initial claims being filed. |
Ohio Department of Job and Family Services statement |
RELX |
9 | |
|
Centre Hospitalier Universitaire Grenoble-Alpes (CHUGA) Model-based prediction of individuals’ risk profile Machine learning models enable clinicians to predict a patient’s individual risk for health care related adverse events at admission, to efficiently target resources and improve patient’s outcome |
10 | RELX | |
|
RELX |
11 | |
|
Read our stories on how we enable our customers to make better decisions, get better results and be more productive: www.relx.com/our-business/perspectives |
12 |
RELX |
Market segments |
In this section | ||
14 |
||
20 |
||
26 |
||
32 |
RELX |
13 | |
|
14 | RELX | |
|
We combine data and analytics with deep industry expertise to help customers make better decisions and manage risk. We help detect and prevent online fraud and money laundering and deliver insight to insurance companies. We provide digital tools that help airlines and farmers improve their operations. |
||||
◾ |
We do business with 93% of the Fortune 100; 79% of the Fortune 500; seven of the world’s top ten banks and 98 of the top 100 personal lines insurance companies | |||
◾ |
More than 216,000 websites and mobile applications implement the LexisNexis Digital Identity Network around the world | |||
◾ |
85% of new US auto insurance policies issued to consumers in 2021 benefited from our products | |||
◾ |
Cirium provides services to the majority of the top 50 airline groups globally, representing circa 85% of the world’s 2021 airline passenger traffic and to four out of five of the world’s top search engines. It tracks 98% of flights globally in real time | |||
◾ |
ICIS serves 95 of the top 100 chemical companies and its Recycling Supply Tracker contains data on over 2,500 chemical plants globally, enabling users to source recycled plastics more effectively | |||
◾ |
Over 280m farm acres (>110m hectares) are managed by Proagrica’s geospatial technology | |||
◾ |
More than 7,500 federal, state and local government agencies use our solutions to prevent fraud and allow citizens faster access to digital-based services, maintain program integrity, reduce risk and fight crime |
RELX |
15 | |
|
|
|
|
||||||||||
LexisNexis Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe | Cirium delivers aviation data and analytics globally to airlines, airports, governments, tech giants, aerospace companies and more. The Cirium Core, the nerve centre of the business ingests over 300 terabytes of information daily from over 2,000 sources from across the industry | A global agricultural network, enabling agriculture and animal health industry participants to seamlessly collaborate; acting as a trusted, independent partner that facilitates value exchange between our customers | ||||||||||
|
LexisNexis Claims Compass |
Risk Intelligence Network |
||||||||||
Global source of Independent Commodity Intelligence Services, connecting data, markets and customers to create a comprehensive, trusted view of global commodity markets | Data analytics platform delivering LexisNexis Claims Datafill, VINsights, Claims Clarity and LexisNexis Police Records solutions to improve the claims process from first notice of loss, triage, investigation and resolution, through recovery | The Risk Intelligence Network provides government agencies with the first step of identity assessment across a number of services including benefits applications, claims filing and tax return filing. With a powerful combination of contributory systems and analytics, emerging threats can be identified before they have a significant impact | ||||||||||
Credit Risk Portfolio |
Risk Defense Platform |
LexisNexis Telematics OnDemand |
||||||||||
LexisNexis ® ™ Optics and RiskView™ Spectrum, two FCRA-compliant credit scores that provide a broader view into consumer credit worthiness, delivers a more predictive assessment for a higher percentage of new applicants to uncover opportunities overlooked by traditional credit tools |
A fraud prevention and identity management platform that seamlessly delivers the broadest of solutions, including the latest in machine learning that adapts to ever changing fraud schemes, simplifying efforts to detect and prevent risks associated with the merging of digital and physical identities | A solution that seamlessly integrates telematics-based driving behaviour data from connected vehicles directly into insurer rating and underwriting workflows without the need for trial and monitoring periods | ||||||||||
Fraud and Identity Management Portfolio |
Accurint ® |
Financial Crime Compliance Portfolio |
||||||||||
Digital, physical, device and behavioural risk signals to help organisations better assess consumers, prevent fraudulent transactions, improve operational efficiencies and protect accounts while minimising friction for trusted users. LexisNexis ® |
The only data sharing platform in the policing market used for analytics, crime analysis and investigations linking public records to national law enforcement data for a complete picture across jurisdictions | Our integrated financial crime compliance offerings deliver comprehensive solutions for addressing financial crime risk. In August 2021, LexisNexis Risk Solutions acquired TruNarrative, which provides a cloud-based orchestration platform that empowers organisations to detect, prevent and report financial crime |
16 | RELX | |
|
RELX |
17 | |
|
2021 £m |
2020 £m |
Underlying growth |
Portfolio changes |
Currency effects |
Total growth |
|||||||||||||||||||
Revenue | 2,474 |
2,417 | +9% |
0% | -7% | +2% | ||||||||||||||||||
Adjusted operating profit | 915 |
894 | +10% |
0% | -8% | +2% |
20 | RELX | |
|
We help researchers share knowledge, collaborate, find funding opportunities and make discoveries. We help universities and governments evaluate and improve the impact of their research strategies. We help doctors and nurses improve the lives of patients, providing insights and tools to find the right clinical answers. |
◾ |
We help ensure quality research accelerates progress for society by organising the review, editing and dissemination of around 18% of the world’s scientific articles | |
◾ |
Elsevier’s over 2,700 journals published more than 600,000 articles in 2021, from 2.5m submitted. 215 of 216 science and economics Nobel Prize winners since 2000 have published in an Elsevier journal | |
◾ |
ScienceDirect, the world’s largest platform dedicated to peer-reviewed primary scientific and medical research, hosts over 19m pieces of content from over 4,400 journals and over 43,000 e-books, and has over 18m monthly unique visitors | |
◾ |
Scopus is an expertly curated abstract and citation database with content from over 27,000 journals from more than 7,000 publishers to help researchers track and discover global knowledge in all fields | |
◾ |
SciVal is a web-based analytics solution that provides insights into the research performance of over 20,000 academic, industry and government research institutions | |
◾ |
Reaxys, a comprehensive chemistry research information system, supports chemists and data scientists in the chemicals, pharmaceutical and academic sectors. | |
◾ |
ClinicalKey, the flagship clinical reference platform, is used by doctors, nurses, medical students and educators at over 5,000 institutions in over 90 countries and territories. | |
◾ |
Elsevier’s free Novel Coronavirus Information Centre saw over 175m downloads in 2021 |
RELX |
21 | |
|
|
| |||
The world’s largest platform dedicated to peer-reviewed primary scientific and medical research |
Clinical knowledge solution helping healthcare professionals and students find the most clinically relevant answers through a wide breadth and depth of trusted content across specialties | |||
|
|
| ||
Science that inspires: A leading journal in the field of biochemistry and molecular biology | An expertly curated abstract and citation database with content from over 7,000 publishers to help track and enhance researcher and institutional data and discover global research in all fields | HESI combines a comprehensive online course for nursing personalised to the needs of each student, with real-time support from a nurse educator who’s only a click away to provide guidance, helping to bridge the gap between graduation and the licensure exam | ||
|
|
| ||
Science for better lives: one of the world’s leading medical journals since 1823 | A web-based analytics solution with unparalleled flexibility that provides access to the research performance of over 20,000 academic, industry and government research institutions and their associated researchers, output and metrics |
ClinicalPath provides evidence-based oncology pathways that help improve patient outcomes and reduce variability in care in health systems, academic medical centres and community practices | ||
|
|
| ||
An innovative and comprehensive chemistry research information system that supports chemists and data scientists across the chemicals, pharmaceutical and academic segments by providing access to chemistry and bioactivity data from journal literature and patents | A research information management system that enables evidence-based decisions, simplifies research administration and optimises impact, reporting and compliance | The world’s most advanced 3D anatomy platform, Complete Anatomy is revolutionising how students, educators, health professionals and patients understand and interact with anatomy and this year introduced the first full female anatomical model | ||
|
| |||
SciBite, a semantic AI solution, helps customers make faster, more effective R&D decisions through advanced text and data intelligence analytics | An educational software for nursing students and allied health education programs, using a state-of-the-art |
22 | RELX | |
|
RELX |
23 | |
|
2021 £m |
2020 £m |
Underlying growth |
Portfolio changes |
Currency effects |
Total growth |
|||||||||||||||||||
Revenue |
2,649 |
2,692 | +3% |
1% | -6% | -2% | ||||||||||||||||||
Adjusted operating profit |
1,001 |
1,021 | +3% |
0% | -5% | -2% |
26 | RELX | |
|
We help lawyers win cases, manage their work more efficiently, serve their clients better and grow their practices. We assist corporations in better understanding their markets and monitoring relevant news. We partner with leading global associations and customers to help advance the Rule of Law across the world. | ||
◾ |
LexisNexis hosts 139bn legal and news documents and records | |
◾ |
On average, 1.9m new legal documents are added daily from 71,000 sources, generating 137bn connections. In all, 33m legal documents are processed per day | |
◾ |
Nexis news and business content includes over 39,000 premium sources in 37 languages, covering more than 180 countries. It has data including 400m company profiles with a content archive that dates back 40 years | |
◾ |
LexisNexis content includes more than 273m court dockets and documents, over 148m patent documents, 3.26m State Trial Orders, and 1.37m jury verdict and settlement documents | |
◾ |
PatentSight includes objective ratings of the innovative strength (Patent Asset Index) of more than 135m patent documents from more than 100 countries | |
◾ |
In 2021, Law360 produced over 50,000 news and analysis articles | |
◾ |
Legal analytics tool Lex Machina has normalised over 88m counsel mentions and over 47m party mentions since 2016 | |
◾ |
LexisNexis is committed to advancing the Rule of Law through operations and solutions that provide transparency into the law in more than 150 countries |
RELX |
27 | |
|
| ||||||||
|
| |||||||
LexisNexis UK legal practical guidance service | Provides Legal Analytics to companies and law firms, enabling them to craft successful strategies, win cases and close business | |||||||
|
|
| ||||||
|
|
| ||||||
Provides integrated research, practical guidance and data-driven insights via one premium legal solution | Premier citations service | LexisNexis enterprise contract intelligence offering | ||||||
|
|
| ||||||
|
|
| ||||||
LexisNexis North American Research Solution’s practical guidance service | Litigation solution providing legal language analytics on judges and expert witnesses | Provides analytics and benchmarking of SEC filings to optimise compliance strategies | ||||||
| ||||||||
|
|
| ||||||
Comprehensive online legal research tool that transforms the way legal professionals conduct research | LexisNexis UK flagship legal online product | Patent analytics solution that provides insights into the strength, quality and value of patent portfolios |
28 | RELX | |
|
RELX |
29 | |
|
2021 financial performance |
|
|||||||||||||||||||||||
2021 £m |
2020 £m |
Underlying growth |
Portfolio changes |
Currency effects |
Total growth |
|||||||||||||||||||
Revenue | 1,587 |
1,639 | +3% |
-1% | -5% | -3% | ||||||||||||||||||
Adjusted operating profit | 326 |
330 | +5% |
-1% | -5% | -1% |
30 |
RELX |
Annual report and financial statements 2021 | Market segments |
RELX |
Annual report and financial statements 2021 | Legal |
31 |
|
32 | RELX | |
|
Our business leverages industry expertise, large data sets and technology to enable our customers to build their businesses by connecting face-to-face | ||
◾ |
There are more than 400 events in the RX portfolio |
◾ |
As vaccine penetration increased and government restrictions eased the event industry began to reopen in 2021, especially in the second half |
◾ |
RX ran 269 face-to-face |
◾ |
These RX events helped participants build their businesses by finding new products, suppliers and customers, learning about their industry’s innovations and networking effectively |
◾ |
Our face-to-face |
◾ |
43 industry sectors are served in 22 countries across the globe |
◾ |
Reed Exhibitions rebranded to RX in 2021 to reflect the increasingly digital and data-driven nature of the offer to customers |
RELX |
33 | |
|
◾ |
Digital initiatives: digital tools and services have been widely deployed and enhanced to replace some of the value of the cancelled face-to-face events and to increase the value from restarted face-to-face events. New digital tools have been rapidly developed and launched. |
◾ |
Operational efficiency: a leaner and more nimble structure has been put in place, better able to respond to changing circumstances and customer needs. The new structure allows even more effective leveraging of RX’s global reach and scale. Global technology platforms and specialist functions enable faster and more agile deployment of product and process innovation. |
◾ |
Portfolio optimisation: RX continues actively to shape its portfolio through a combination of new launches, strategic partnerships and selective acquisitions in faster growing sectors and geographies, and during the pandemic has withdrawn from markets and industries that have been particularly impacted and with lower long-term growth prospects. |
34 | RELX | |
|
RELX |
35 | |
|
2021 financial performance |
|
|||||||||||||||||||||||||||||||||||||||||||
2021 £m |
2020 £m |
Underlying growth |
Portfolio changes |
Currency effects |
Total growth |
|||||||||||||||||||||||||||||||||||||||
Revenue |
534 |
362 | +44% |
+11%* |
-7% | +48% | ||||||||||||||||||||||||||||||||||||||
Adjusted operating profit |
10 |
(164 | ) | nm |
nm |
nm |
nm |
nm - not meaningful * includes cycling effects of +12% Strong underlying revenue growth and positive operating result Underlying revenue growth was +44%, driven by a gradual reopening of exhibition venues across geographies. The difference between underlying and constant currency growth also reflects the resumption of cycling events. In 2021 we managed our event schedule flexibly, responding to changes in local government policies, enabling us to hold a total of 269 face-to-face The return to a positive adjusted operating result reflects the increased activity levels and a lower cost structure. 2022 Outlook We expect a year of strong underlying revenue growth. The operating result will continue to benefit from the structurally lower cost base. |
38 | RELX | |
|
RELX |
39 | |
|
Reporting requirement: | ||
Environmental matters | 47, 52-53,55-57 | |
Employees | 49-50 | |
Social matters | 41-49 | |
Human rights | 41-50 | |
Anti-corruption and anti-bribery matters | 46-48, 51-52 | |
Policies, due diligence processes and outcomes | 46-50, 51-52 | |
Description and management of principal and emerging risks and impact of business activity | 66-69 | |
Description of business model | 5 | |
Non-financial metrics |
40 |
Business Model and Strategy |
5-7 |
|||
Corporate Responsibility Report |
38-58 |
|||
Principal Risks |
66-69 |
|||
Culture and Workforce Policies |
80-81 |
|||
Board decision-making |
81-83 |
|||
Stakeholder Engagement |
84-88 |
40 | RELX | |
|
2021 |
2020 |
2019 |
2018 |
2017 |
||||||||||||||||
Revenue (£m) |
7,244 |
7,110 | 7,874 | 7,492 | 7,341 | |||||||||||||||
People |
||||||||||||||||||||
Number of full-time equivalent employees (year-end) |
33,500 |
33,200 | 33,200 | 32,100 | 31,000 | |||||||||||||||
Percentage of women employees (%)^ |
50 |
51 | 50 | 51 | 51 | |||||||||||||||
Percentage of women managers (%)^ |
44 |
43 | 42 | 42 | 43 | |||||||||||||||
Percentage of women senior leaders (%) 1 ^ |
33 |
31 | 30 | 28 | 29 | |||||||||||||||
Percentage of ethnic minority US/UK managers (%)^ |
19 |
17 |
||||||||||||||||||
Percentage of ethnic minority US/UK senior leaders (%) 1 ^ |
11 |
11 |
||||||||||||||||||
Community 2 |
||||||||||||||||||||
Total cash and in-kind donations (products, services and time (£m)) |
10.4 |
9.2 | 9.2 | 8.7 | 7.5 | |||||||||||||||
Market value of cash and in-kind donations (£m) |
20.6 |
17.6 | 18.7 | 17.6 | 12.6 | |||||||||||||||
Percentage of staff volunteering (%) 3 |
32 |
26 | 45 | 42 | 45 | |||||||||||||||
Total number of days volunteered in company time |
10,362 |
6,821 | 12,127 | 11,720 | 12,670 | |||||||||||||||
Health and safety (lost time) 4 |
||||||||||||||||||||
Incident rate (cases per 1,000 employees)^ |
0.07 |
0.11 | 0.50 | 0.28 | 0.55 | |||||||||||||||
Frequency rate (cases per 200,000 hours worked)^ |
0.01 |
0.01 | 0.06 | 0.03 | 0.06 | |||||||||||||||
Severity rate (lost days per 200,000 hours worked)^ |
0.02 |
0.07 | 0.69 | 0.69 | 1.15 | |||||||||||||||
Number of lost time incidents (>1 day)^ |
2 |
3 | 14 | 8 | 17 | |||||||||||||||
Socially Responsible Suppliers (SRS) |
||||||||||||||||||||
Number of key suppliers on SRS database 5 ^ |
359 |
412 | 354 | 348 | 344 | |||||||||||||||
Number of independent external audits^ |
111 |
99 | 93 | 84 | 83 | |||||||||||||||
Percentage signing Supplier Code of Conduct (%) 6 ^ |
96 |
91 | 91 | 89 | 91 | |||||||||||||||
Environment 7 |
||||||||||||||||||||
Total energy (MWh)^ |
117,161 |
133,238 | 163,628 | 179,228 | 186,228 | |||||||||||||||
Renewable electricity purchased (MWh) 8 ^ |
101,510 |
125,019 | 136,410 | 125,707 | 117,799 | |||||||||||||||
Percentage of electricity from renewable sources (%) 8 ^ |
100 |
100 | 96 | 81 | 72 | |||||||||||||||
Water usage (m 3 )^ |
175,372 |
215,858 | 331,913 | 332,490 | 344,918 | |||||||||||||||
Climate change (tCO 2 e) 9 |
||||||||||||||||||||
Scope 1 (direct) emissions^ |
5,226 |
4,516 | 7,848 | 7,477 | 8,231 | |||||||||||||||
Scope 2 (location-based) emissions^ |
43,445 |
53,131 | 68,229 | 74,279 | 84,590 | |||||||||||||||
Scope 2 (market-based) emissions^ |
7,715 |
10,773 | 17,704 | 16,004 | 21,831 | |||||||||||||||
Scope 3 (business flights) 10 ^ |
5,032 |
18,652 | 62,254 | 68,363 | 58,034 | |||||||||||||||
Scope 1 + Scope 2 (location-based) + Scope 3 (flights) emissions^ |
53,703 |
76,299 | 138,331 | 150,119 | 150,855 | |||||||||||||||
Scope 1 + Scope 2 (market-based) + Scope 3 (flights) emissions^ |
17,973 |
33,941 | 87,806 | 91,844 | 88,096 | |||||||||||||||
Waste 11 |
||||||||||||||||||||
Total waste (t)^ |
2,192 |
2,618 | 4,587 | 6,448 | 6,664 | |||||||||||||||
Percentage of waste recycled (%)^ |
81 |
73 | 50 | 64 | 69 | |||||||||||||||
Percentage of waste diverted from landfill (%)^ |
89 |
87 | 69 | 72 | 76 | |||||||||||||||
Paper |
||||||||||||||||||||
Production paper (t)^ |
40,910 |
36,259 | 34,599 | 35,555 | 36,484 | |||||||||||||||
Sustainable content (%) 12 ^ |
98 |
92 | 96 | 90 | 90 |
1 | We define senior leaders as either a) colleagues with a management grade of 17 and above, based on our job architecture framework developed with external input and b) colleagues with a management grade of 16 (and above) with a hierarchy of 4 (or 5 in some circumstances) reporting levels from the CEO. |
2 | Data reporting methodology assured by Business for Societal Impact. See Appendix 2 of 2021 Corporate Responsibility Report for B4SI assurance statement 2021 |
3 | All Group employees can take up to two days off per year (coordinated with line managers) to work on community projects that matter to them. Number of staff volunteering reflects the number of staff using their two days, as well as those who participated in other company-sponsored volunteer activities. |
4 | Accident reporting covers approximately 86% of employees. |
5 | We continue to refine our supplier classification and hierarchy data, contributing to changes in the number of suppliers we track year-on-year. |
6 | Signatories to the RELX Supplier Code of Conduct include suppliers who have not signed the Supplier Code, but have equivalent codes. These suppliers are subject to the same audit requirements as Supplier Code signatories. |
7 | Environmental data (carbon, energy, water, waste) covers the 12 months from December 2020 to November 2021. |
8 | We purchase renewable electricity on green tariffs at locations in the UK, Austria and the Netherlands. US Green-e certified Renewable Energy Certificates (RECs) are applied to electricity consumption in the US. US Green-e certified RECs are also purchased to equal 100% of the electricity consumption outside the US, but we do not apply any market-based emissions factors on this portion of electricity consumption. |
9 | Market-based and location-based emissions have been reported in compliance with the updated GHG Protocol guidance. See our reporting guidelines and methodology from the link below. |
10 | Covers all flights booked through our corporate travel partner. All years use the DEFRA RF emissions factor for air travel in Scope 3 (other). |
11 | Waste figures represent all operations, including estimates from non-reporting locations. |
12 | % in PREPS grade 3 or 5 (known and responsible sources) or certified to FSC or PEFC. Previous years restated based on this methodology for the 2025 Targets. |
^ | Data assured by EY. See Appendix 3 of 2021 Corporate Responsibility Report for EY assurance statement 2021 |
RELX |
41 | |
|
◾ |
Protection of society |
◾ |
Advance of science and health |
◾ |
Promotion of the rule of law and justice |
◾ |
Fostering communities |
◾ |
Universal sustainable access to information |
RELX |
43 | |
|
44 | RELX | |
|
2021 OBJECTIVES |
Achievement | |||
Protection of society: Meaningful support of SDG 16 (Peace, Justice and Strong Institutions) by expanding reach of ADAM, LexisNexis Risk Solution’s US missing children alert service, through new partnerships and mobile text alerts; help deliver new missing alert service for UK’s Missing People | ◾ |
Over 2,200 new subscribers in 2021; partnership with US national media network GST to display ADAM alerts on digital screens at 26,000 US road service stations; 1.7 million alerts disseminated in over 1,800 missing children cases; project underway scoping technical support to improve UK Missing People’s automated missing person alert service | ||
Protection of society: Meaningful support of SDG 10 (Reduced Inequalities) by expanding financial inclusion pilots in low-income countries; use of products and services to reduce online fraud and identity theft | ◾ |
Using LNRS alternative credit sources, to help more citizens gain access to credit in 2021, two pilots were extended in Colombia and three new pilots were launched in Mexico; US Department of Labor and US states including Maryland and Ohio use LexisNexis Risk Solutions tools in the year to fight unemployment fraud | ||
Advance of science and health: Meaningful support of SDG 3 (Good Health and Well-being) and SDG 10 (Reduced Inequalities) to increase scientific knowledge, reduce health disparities and ensure equal access to health, including through a project with the Julius L. Chambers Biomedical Biotechnology Research Institute |
◾ |
Elsevier collaboration with the Julius L. Chambers Biomedical Biotechnology Research Institute included support for community rollout of Covid-19 vaccine training for 10 faculty in evidence -based implementation science, and the development of a course for undergraduates | ||
◾ |
Leap project with Amref helped train cohort of 35,000 health workers, as part of Ethiopian government’s Covid-19 prevention and treatment programme |
RELX |
45 | |
|
2021 OBJECTIVES |
Achievement | |||
Promotion of the rule of law and access to justice: Meaningful support of SDG 16 (Peace, Justice and Strong Institutions) through continued expansion of Rule of Law Cafes; LexisNexis Rule of Law Foundation efforts to eliminate racism in legal systems; and support for UN Global Compact initiatives to advance SDG 16 | ◾ |
Rule of Law Cafes held in Philippines, Malaysia, South Africa and the UK; new fellowship programme with Historically Black Colleges and Universities Law School Consortium; supported UNGC SDG 16 Business Framework focused on transformational governance to help businesses understand and implement SDG 16 targets | ||
Fostering communities: Meaningful support of SDG 11 (Sustainable Cities and Communities) including a focus on zero carbon through key shows in alignment with COP 26; increased online show offerings to support exhibitors and attendees in the wake of Covid-19 |
◾ |
Conducted mapping of more than 200 RX events which indicated more than 90% covered SDG themes including SDG 11; pre-COP26 All-Energy Dcarbonise Week Virtual Sustainability Summit to help attendees accelerate strategies and actions to achieve net zero; partnered with peers and industry bodies to launch Net Zero Carbon Events | ||
Universal, sustainable access to information: Advance the SDGs by expanding free RELX SDG Resource Centre including by releasing six special releases; developing new partnerships; and holding a 2021 global SDG Inspiration Day | ◾ |
Content on the RELX SDG Resource Centre expanded by 62% over 2020 including with features for 12 UN days; 2021 RELX SDG Inspiration Day with 350+ participants and keynote presentations by former UN Secretary General Ban Ki-Moon and Nobel Peace Prize Laureate Muhammad Yunus |
2022 OBJECTIVES | ||
◾ |
Protection of society: Meaningful support of SDG 10 (Reduced Inequalities) by expanding financial inclusion pilots in low-income countries; use of products and services to reduce online fraud and identity theft | |
◾ |
Advance of science and health: Meaningful support of SDG 3 (Good Health and Well-being) and SDG 10 (Reduced Inequalities) by championing inclusive health and research through global partnerships, including a project with the Sansum Diabetes Research Institute’s Latino community scientists, and engagement with the Black Women’s Health Alliance to improve health care outcomes and reduce health disparities for African American and other minority women and families in Philadelphia | |
◾ |
Promotion of the rule of law and access to justice: Meaningful support of SDG 16 (Peace, Justice and Strong Institutions) through advancing legislative review project with the UK National Crime Agency and the International Centre for Missing and Exploited Children on child sexual abuse reporting and data sharing across nine countries | |
◾ |
Fostering communities: Meaningful support of SDG 11 (Sustainable Cities And Communities) including a focus on show content supporting net zero and the transition to a low carbon economy | |
◾ |
Universal, sustainable access to information: Advance the SDGs by increasing the number of research articles available on the RELX SDG Resource Centre | |
OUR 2030 VISION* | ||
Use our products and expertise to advance the SDGs, among them: | ||
◾ |
SDG 3: Good Health and Well-being | |
◾ |
SDG 10: Reduced Inequalities | |
◾ |
SDG 13: Climate Action | |
◾ |
SDG 16: Peace, Justice and Strong Institutions | |
Enrich the SDG Resource Centre to ensure essential content, tools and events on the SDGs are freely available to all |
* | 2030 is the deadline for the UN’s Sustainable Development Goals; we aim to do our part towards their achievement. |
46 | RELX | |
|
RELX |
47 | |
|
48 | RELX | |
|
2021 OBJECTIVES |
Achievement | |||
Security – SDG 16 (Peace, Justice and Strong Institutions): Continue to implement controls to increase resilience to user-based attacks such as phishing and ransomware; introduce a Great Phishing Challenge for internal and external stakeholders | ◾ |
Monthly phishing simulations with results outperforming industry benchmarks; Fraud Awareness Week and Cyber Security Month activities to engage colleagues on data privacy and security | ||
Privacy – SDG 16 (Peace, Justice and Strong Institutions): Conduct a 2021 privacy quality review on compliance with EU and other requirements for cross-border data transfers | ◾ |
Completed privacy quality review focused on the effectiveness of safeguards intended to mitigate the risk of non-compliance with the European Commission requirements for the cross-border transfer of personal data originating in the European Economic Area | ||
Responsible tax – SDG 16 (Peace, Justice and Strong Institutions): Continue to advance African tax law codification in pilot countries, working with LexisNexis South Africa and LexisNexis Rule of Law Foundation | ◾ |
Progressed project to make tax law more transparent to both governments and citizens in Africa |
2022 OBJECTIVES | ||
◾ |
Security – SDG 16 (Peace, Justice and Strong Institutions): Expand National Institute of Standards and Technology Cybersecurity Framework assessment reporting | |
◾ |
Privacy – SDG 16 (Peace, Justice and Strong Institutions): Global activities for employees to raise awareness of data privacy and protection, including for Data Privacy Day | |
◾ |
Responsible tax – SDG 16 (Peace, Justice and Strong Institutions): Continue to advance African tax law codification pilots | |
OUR 2030 VISION | ||
Continued progressive actions that advance excellence in corporate governance within our business and the marketplace |
RELX |
49 | |
|
Women |
Men |
|||||||||||||||
Board of Directors |
5 | 45% | 6 | 55% | ||||||||||||
Senior leaders* |
201 | 33% | 415 | 67% | ||||||||||||
All employees** |
16,632 | 50% | 16,368 | 50% |
* | As defined by our internal job architecture |
** | Full-time equivalent. |
50 | RELX | |
|
2021 OBJECTIVES |
Achievement | |||
Inclusion – SDG 10 (Reduced Inequalities): Progress RELX inclusion goals through focused recruitment, training and development efforts |
◾ |
Robust governance structure to monitor progress against the RELX inclusion goals and to track trends in diversity data; Rise conference attended by 1,100+ colleagues to mark diversity awareness month; training for employees including on psychological safety and avoiding harassment with mentoring programmes for senior women talent | ||
Pay equity – SDG 8 (Decent Work and Economic Growth): Continue living wage assessment in four countries |
◾ |
Living wage assessments completed in France, India and the Philippines; US living wage assessments and accreditation ongoing including with Living Wage for US | ||
Well-being – SDG 3 (Good Health and Well-Being): Develop RELX mental health policy reflecting cross-business and external insights |
◾ |
Progressed RELX Mental Health Policy |
2022 OBJECTIVES ◾ Inclusion – SDG 10 (Reduced Inequalities): Progress RELX inclusion goals, including piloting voluntary disclosures for gender identity, sexual orientation and disability◾ Pay equity – SDG 8 (Decent Work and Economic Growth): Advance reward education for people managers encompassing pay equity; cascade newly developed on-demand, reward eLearning modules to managers for real time access◾ Well-being – SDG 3 (Good Health and Well-Being): Review safety risk assessment and training modules to cover three working models – office, home and hybrid |
OUR 2030 VISION ◾ Continued high-performing and satisfied workforce through talent development, I&D and wellbeing; scale support for external human capital initiatives |
2021 OBJECTIVES |
Achievement | |||
Customer engagement – SDG 17 (Partnerships For The Goals): Further engagement with customers on the SDGs |
◾ |
SDG Customer Awards at 2021 RELX SDG Inspiration Day | ||
Quality – SDG 8 (Decent Work and Economic Growth): Create new internal customer quality assurance network |
◾ |
Quality First Principles Working group and Editorial Standards Working Group merged into cross functional group for standards and quality | ||
Accessibility – SDG 10 (Reduced Inequalities): Advance Accessibility Maturity Model across RELX |
◾ |
Convened quarterly Accessibility and Inclusion Forum to advance RELX Accessibility Maturity Model in areas such as employee training; policy, governance and reporting; inclusive design; and project management |
2022 OBJECTIVES ◾ Customer engagement – SDG 17 (Partnerships For The Goals): Create tools to enable customer-facing staff to share information about RELX and CR◾ Quality – SDG 8 (Decent Work and Economic Growth): Publish and launch RELX Responsible Artificial Intelligence Principles◾ Accessibility – SDG 10 (Reduced Inequalities): Advance cross-business, on-demand accessibility training |
OUR 2030 VISION Continue to expand customer base across our four business areas through excellence in products and services, active listening and engagement, editorial and quality standards, and accessibility; a recognised advocate for ethical marketplace practice |
RELX |
51 | |
|
2021 OBJECTIVES |
Achievement | |||
Employee community engagement – SDG 17 (Partnerships For The Goals): Evaluate the impact of the pandemic on community engagement; campaign to promote virtual volunteering | ◾ |
More than 1,450 colleagues participated in survey to identify barriers to volunteering; virtual volunteering a focus for global RELX Cares Month, with a related film for all employees | ||
Philanthropic giving – SDG 17 (Partnerships For The Goals): Update central donations programme in order to better report impact of community giving | ◾ |
Moved to once per year central donations round to facilitate better impact reporting by beneficiaries |
2022 OBJECTIVES ◾ Employee community engagement – SDG 17 (Partnerships For The Goals): Continue to improve impact measurement of our charitable donations◾ Philanthropic giving – SDG 17 (Partnerships For The Goals): Establish new strategic global fundraising partnership |
OUR 2030 VISION Through our unique contributions, significant, measurable advancement of education for disadvantaged young people; investments with partners for maximum impact |
52 | RELX | |
|
2021 OBJECTIVES |
Achievement | |||
Responsible Supply Chain – SDG 8 (Decent Work and Economic Growth): Increase number of suppliers as Code signatories; continue using audits to ensure continuous improvement in supplier performance and compliance |
◾ |
99% core suppliers* (target 95%) | ||
◾ |
100% high- and medium-risk core suppliers (target 100%) | |||
◾ |
96% total tracking list (target 88%) | |||
◾ |
3,670 total Code signatories (3,457 in 2020, 2021 target 3,600) | |||
◾ |
111 independent audits completed (99 in 2020) | |||
Supplier Diversity – SDG 10 (Reduced Inequalities): Advance Supplier Diversity and Inclusion programme |
◾ |
12.9% diversity spend (US rolling four quarters) with Veteran, Minority, Woman-owned, and Small Businesses |
* | Core suppliers are those that have appeared on the SRS tracking list for three or more years. |
2022 OBJECTIVES ◾ Responsible Supply Chain – SDG 8 (Decent Work and Economic Growth): Increase number of suppliers as Code signatories; continue using audits to ensure continuous improvement in supplier performance and compliance◾ Supplier Diversity – SDG 10 (Reduced Inequalities): Advance Supplier Diversity and Inclusion programme |
OUR 2030 VISION Reduce supply chain risks related to human rights, labour, the environment and anti-bribery by ensuring adherence to our Supplier Code of Conduct through training, auditing and remediation; drive supply chain innovation, quality and efficiencies through a strong, diverse network of suppliers |
RELX |
53 | |
|
2021 OBJECTIVES |
Achievement | |||
Environmental responsibility – SDG 12 (Responsible Consumption and Production): Embed new environment targets |
◾ |
Engagement with key teams on targets; developed new paper reporting requirements to include certification; Launched new cross business working group on net zero | ||
Carbon reduction – SDG 13 (Climate Action):Launch internal carbon tax for work- related flights |
◾ |
Internal carbon price launched covering Scope 1, Scope 2 and Scope 3 (flights) beginning at $25 per tCO2e with plans to increase the carbon price over time |
2022 OBJECTIVES ◾ Environmental responsibility – SDG 12 (Responsible Consumption and Production): Launch new online reporting tool for sustainable production paper◾ Carbon reduction – SDG 13 (Climate Action): Advance reporting of Scope 3 (other) emissions |
OUR 2030 VISION Further environmental knowledge and positive action through our products and services and, accordingly, conduct our business with the lowest environmental impact possible |
2021 ENVIRONMENTAL PERFORMANCE |
||||||||||||||||||||||||
Absolute performance |
Intensity ratio (per £m revenue) |
|||||||||||||||||||||||
2021 |
Variance | 2020 | 2021 |
Variance | 2020 | |||||||||||||||||||
Scope 1 (direct emissions) tCO 2 e |
5,226 | 16% | 4,516 | 0.72 | 13% | 0.64 | ||||||||||||||||||
Scope 2 (indirect location-based emissions) tCO 2 e |
43,445 | -18% | 53,131 | 6.00 | -20% | 7.47 | ||||||||||||||||||
Scope 2 (market-based emissions) tCO 2 e |
7,715 | -28% | 10,773 | 1.07 | -30% | 1.52 | ||||||||||||||||||
Total energy (MWh) | 117,161 | -12% | 133,238 | 16.17 | -14% | 18.74 | ||||||||||||||||||
Water (m 3 ) |
175,372 | -19% | 215,858 | 24.21 | -20% | 30.36 | ||||||||||||||||||
Waste sent to landfill (t)* | 107 | -38% | 173 | 0.01 | -39% | 0.02 | ||||||||||||||||||
Production paper (t) | 40,910 | 13% | 36,259 | 5.65 | 11% | 5.10 |
* | From reporting locations only, excluding estimated data. |
ENVIRONMENTAL TARGETS |
||||||
Focus area |
Targets 2025 |
2021 Performance |
||||
Climate change | Reduce Scope 1 and 2 location-based carbon emissions by 46% against a 2015 baseline | -53% | ||||
Energy | Reduce energy and fuel consumption of our locations by 30% against a 2015 baseline | -43% | ||||
Continue to purchase renewable electricity equivalent to 100% of RELX’s global electricity consumption | 100% | |||||
Waste* |
Decrease waste sent to landfill from reporting locations to 35% below 2015 levels |
-87% | ||||
Production paper | 100% of RELX production papers to be graded in PREPS as ‘known and responsible sources’ or certified to FSC or PEFC by 2025 | 98% | ||||
Environmental Management System | Achieve Group ISO14001 certification across the business by 2025 | |
55% of the business by headcount |
| ||
100% of new office fit outs to achieve the RELX Sustainable Fit Out standard by 2025 | |
First draft of Standard developed |
|
* | From reporting locations only, excluding estimated data. |
54 | RELX | |
|
2021 awards for excellence |
||||||
Our employees, products and shows regularly receive awards for excellence. In 2021, for example: | ||||||
Scientific, Technical & Medical |
Risk |
|||||
|
|
|
| |||
Elsevier’s ClinicalPath won Best Computerised Decision Support Solution at the 2021 MedTech Breakthrough Awards for the second consecutive year | Elsevier won the Well Established business category at the 2020 Deshima Business Awards, held in 2021 due to the Covid-19 pandemic |
LexisNexis Risk Solutions won the Judge’s Choice award for Best Identity Verification/ Authentication Solution at the 2021 Card Not Present Awards | LexisNexis Risk Solutions won seven awards at the 2021 Cyber Defense Global InfoSec Awards | |||
Legal |
Exhibitions |
|||||
|
|
|
| |||
LexisNexis Legal & Professional won best Content Search & Discovery Solution at the 2021 SIIA CODiE Awards for Nexis Newsdesk ™ |
LexisNexis Legal & Professional received several awards from career site Comparably, including Best Global Culture and Best Company Outlook | At the 2021 Trade Show Executive Awards, RX US won three GRAND Awards for Vision East, G2E and ISC West and a Rock Star award for FIBO USA | RX Austria was named a 2020/2021 ‘Superbrand’, ranking it amongst the most exceptional business brands in Austria for the quality of its offers and services |
2021 investor and other recognition |
||||||
|
|
|
| |||
MSCI ESG Ratings |
Sustainalytics ESG Risk Rating |
S&P Global Sustainability |
Dow Jones Sustainability Index | |||
assessment |
- Global Universe: 11th out of | Yearbook |
Included in | |||
AAA rating | 14,000+ | - Bronze class distinction | – World | |||
- Media: 1st out of 298 | – Europe | |||||
|
|
|
| |||
FTSE4Good Index |
STOXX Global ESG |
ECPI Indices |
CDP | |||
Included in: |
Leaders Indices |
– Included | – Climate programme score: A- | |||
– FTSE4Good Europe Index | – Included | – Forest programme score: B- | ||||
– FTSE4Good UK Index | – Water programme score: B | |||||
|
|
|
| |||
Tortoise Responsibility100 |
AJA ISO14001 |
Workplace Pride Global |
Bloomberg’s Gender-Equality | |||
Index |
- Certified | Benchmark |
Index | |||
– 4th out of 100 | – Awared Advocate status | – Included | ||||
|
||||||
RE100 – Member |
The full 2021 Corporate Responsibility Report is available at www.relx.com/go/CRReport |
RELX |
55 | |
|
56 | RELX | |
|
1. | Minimising our environmental impact through measures such as energy efficiency, renewable energy, reducing waste and other measures. This reduces our exposure to future legislation and the rising price of carbon |
2. | Providing products and services which support customers through their transition to a low-carbon economy. We anticipate demand for these offerings to continue to increase over time |
3. | Supporting wider action on climate change through collaboration, partnerships and initiatives such as the Digital Impact of Media Project in conjunction with the Responsible Media Forum, comprised of industry peers, and Bristol University |
RELX |
57 | |
|
58 | RELX | |
|
Topic |
Accounting metric |
Code |
Disclosure location | |||
Data security | Description of approach to identifying and addressing data security risks | SV-PS-230a.1 |
See: 2. Governance on pages 46, 48 | |||
Description of policies and practices relating to collection, usage and retention of customer information | SV-PS-230a.2 |
See: 2. Governance on pages 46, 48 | ||||
(1) Number of data breaches, (2) percentage involving customers’ confidential business information (CBI) or personally identifiable information (PII), (3) number of customers affected | SV-PS-230a.3 |
Except as a matter of public record, RELX does not disclose this information for reasons of commercial confidentiality | ||||
Workforce diversity and engagement | Percentage of gender and racial/ ethnic group representation for (1) executive management and (2) all other employees | SV-PS-330a.1 |
See: 3. People on page 49 | |||
(1) Voluntary and (2) involuntary turnover rate for employees | SV-PS-330a.2 |
See: 3. People on page 49 | ||||
Employee engagement as a percentage | SV-PS-330a.3 |
See: 3. People on page 49 | ||||
Professional integrity | Description of approach to ensuring professional integrity | SV-PS-510a.1 |
See: 2. Governance on page 46 | |||
Total amount of monetary losses as a result of legal proceedings associated with professional integrity | SV-PS-510a.2 |
Except as a matter of public record, RELX does not disclose this information for reasons of commercial confidentiality | ||||
Activity metrics | Number of employees by: (1) full-time and part-time, (2) temporary, and (3) contract | SV-PS-000.A |
See: 3. People on page 49 | |||
Employee hours worked, percentage billable | SV-PS-000.B |
See: 3. People on page 49 |
RELX |
59 | |
|
In this section | ||
60 | Chief Financial Officer’s report | |
66 | Principal and emerging risks |
60 | RELX | |
|
RELX |
61 | |
|
2021 £m |
2020 £m |
Change |
Change at constant currencies |
Change underlying |
||||||||||||||||
Reported figures |
||||||||||||||||||||
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 | ||||||||||||||||||
Earnings per share |
76.3p |
63.5p |
+20% |
|||||||||||||||||
Adjusted figures |
||||||||||||||||||||
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% | ||||||||||||||||||
Earnings per share |
87.6p |
80.1p | +9% | +17% |
62 | RELX | |
|
YEAR TO 31 DECEMBER |
2021 £m |
2020 £m |
||||||
Adjusted operating profit |
2,210 |
2,076 | ||||||
Depreciation of property, plant and equiptment |
52 |
60 | ||||||
Amortisation of internally developed intangible assets* |
295 |
281 | ||||||
Depreciation of right-of-use |
80 |
88 | ||||||
Pre-publication amortisation |
60 |
62 | ||||||
EBITDA |
2,697 |
2,567 | ||||||
Capital expenditure |
(337 |
) |
(362 | ) | ||||
Repayment of lease principal (net)** |
(76 |
) |
(87 | ) | ||||
Working capital and other items |
(54 |
) |
(109 | ) | ||||
Adjusted cash flow |
2,230 |
2,009 | ||||||
Adjusted cash flow conversion |
101% |
97% |
* | Excluding impairment charges that have already been excluded from adjusted operating profit. |
** | Excludes repayments and receipts in respect of disposal-related vacant property and is net of sublease receipts. |
YEAR TO 31 DECEMBER |
2021 £m |
2020 £m |
||||||
Cash generated from operations |
2,476 |
2,264 | ||||||
Dividends received from joint ventures |
20 |
31 | ||||||
Purchases of property, plant and equipment |
(28 |
) |
(43 | ) | ||||
Expenditure on internally developed intangible assets |
(309 |
) |
(319 | ) | ||||
Acquisition-related items |
46 |
67 | ||||||
Exceptional costs in Exhibitions |
52 |
51 | ||||||
Pension deficit recovery payment |
44 |
45 | ||||||
Repayment of lease principal (net)* |
(76 |
) |
(87 | ) | ||||
Proceeds from disposals of property, plant and equipment |
5 |
– | ||||||
Adjusted cash flow |
2,230 |
2,009 |
* | Excludes repayments and receipts in respect of disposal-related vacant property and is net of sublease receipts. |
YEAR TO 31 DECEMBER |
2021 £m |
2020 £m |
||||||
Adjusted cash flow |
2,230 |
2,009 | ||||||
Interest paid (net) |
(118 |
) |
(172 | ) | ||||
Cash tax paid* |
(342 |
) |
(496 | ) | ||||
Exceptional costs in Exhibitions |
(52 |
) |
(51 | ) | ||||
Acquisition-related items |
(46 |
) |
(67 | ) | ||||
Free cash flow before dividends |
1,672 |
1,223 | ||||||
Ordinary dividends |
(920 |
) |
(880 | ) | ||||
Free cash flow post dividends |
752 |
343 |
* | Net of cash tax relief on exceptional costs incurred in 2020 and acquisition-related items and including cash tax impact of disposals. |
YEAR TO 31 DECEMBER |
2021 £m |
2020 £m |
||||||
Net debt at 1 January |
(6,898 |
) |
(6,191 | ) | ||||
Free cash flow post dividends |
752 |
343 | ||||||
Net disposal proceeds |
190 |
29 | ||||||
Acquisition cash spend (including borrowings in acquired businesses) |
(262 |
) |
(874 | ) | ||||
Share repurchases |
– |
(150 | ) | |||||
Purchase of shares by the Employee Benefit Trust |
(1 |
) |
(37 | ) | ||||
Other* |
28 |
16 | ||||||
Currency translation |
174 |
(34 | ) | |||||
Movement in net debt |
881 |
(707 | ) | |||||
Net debt at 31 December |
(6,017 |
) |
(6,898 | ) |
* | Distributions to non-controlling interests, pension deficit recovery payments, leases, share option exercise proceeds. |
RELX |
63 | |
|
AS AT 31 DECEMBER |
2021 £m |
2020 £m |
||||||
Goodwill and acquired intangible assets* |
9,419 |
9,405 | ||||||
Internally developed intangible assets* |
1,251 |
1,244 | ||||||
Property, plant and equipment*, right-of-use |
504 |
740 | ||||||
Net pension obligations |
(269 |
) |
(624 | ) | ||||
Working capital |
(1,095 |
) |
(1,229 | ) | ||||
Net capital employed |
9,810 |
9,536 |
* | Net of accumulated depreciation and amortisation. |
64 | RELX | |
|
AS AT 31 DECEMBER |
2021 £m |
2020 £m |
||||||
Adjusted operating profit |
2,210 |
2,076 | ||||||
Tax at adjusted effective rate |
(409 |
) |
(405 | ) | ||||
Adjusted effective tax rate |
18.5% |
19.5% | ||||||
Adjusted operating profit after tax |
1,801 |
1,671 | ||||||
Average invested capital* |
15,108 |
15,435 | ||||||
Return on invested capital |
11.9% |
10.8% |
* | Average of invested capital at the beginning and the end of the year, retranslated at average exchange rates for the year. Invested capital is calculated as net capital employed, adjusted to add back accumulated amortisation and impairment of acquired intangible assets and goodwill and to exclude the gross up to goodwill in respect of deferred tax, and to add back exceptional restructuring costs. |
2021 £m |
2020 £m |
Change | ||||||||||
Reported earnings per share |
76.3p |
63.5p | 20.2% | |||||||||
Ordinary dividend per share |
49.8p |
47.0p | 6.0% |
RELX |
65 | |
|
66 | RELX | |
|
EXTERNAL RISKS |
||||
Risk |
Description and impact |
Mitigation | ||
Economy and market conditions |
Demand for our products and services may be adversely impacted by factors beyond our control, such as the economic environment in, and trading relations between, the United States, Europe and other major economies (including the evolution of the United Kingdom’s trading relationship with the European Union), political uncertainties, acts of war and civil unrest as well as levels of government and private funding provided to academic and research institutions. | Our businesses are focused on professional markets which have generally been more resilient in periods of economic downturn. We deliver information solutions, many on a subscription and recurring revenue basis, which are important to our customers’ effectiveness and efficiency. We operate diversified businesses in terms of sectors, markets, customers, geographies and products and services. We have extended our position in long-term global growth markets through organic new launches supported by the selective acquisition of small content and data sets. We continue to dispose of businesses that no longer fit our strategy. | ||
We continuously monitor economic and political developments to assess their impact on our strategy which is designed to mitigate these risks. In response to specific uncertainties, our businesses engage in scenario planning and develop contingency plans where relevant. | ||||
Intellectual property rights |
Our products and services include and utilise intellectual property. We rely on trademark, copyright, patent, trade secret and other intellectual property laws to establish and protect our proprietary rights in this intellectual property. There is a risk that our proprietary rights could be challenged, limited, invalidated or circumvented, which may impact demand for and pricing of our products and services. Copyright laws are subject to national legislative initiatives, as well as cross-border initiatives such as those from the European Commission and increased judicial scrutiny in several jurisdictions in which we operate. This creates additional challenges for us in protecting our proprietary rights in content delivered through the internet and electronic platforms. | We actively engage in developing and promoting the legal protection of intellectual property rights. Our subscription contracts with customers contain provisions regarding the use of proprietary content. We are vigilant as to the use of our intellectual property and, as appropriate, take legal action to challenge illegal content distribution sources. |
RELX |
67 | |
|
EXTERNAL RISKS |
||||
Risk |
Description and impact |
Mitigation | ||
Data resources and data privacy |
Our businesses rely extensively upon content and data from external sources. Data is obtained from public records, governmental authorities, publicly available information and media, customers, end users and other information companies, including competitors. The disruption or loss of data sources, either because of data privacy laws (or their interpretation by courts, regulators, customers or civil society) or because data suppliers decide not to supply them, may impose limits on our collection and use of certain kinds of information and our ability to communicate, offer or make such information available or useful to our customers. Compromise of data, through a failure of our cyber security measures (see ‘Cyber security’ below), other data loss incidents or failure to comply with requirements for proper collection, use, storage and transfer of data, by ourselves, or our third-party service providers, may damage our reputation, divert time and effort of management and other resources, and expose us to risk of loss, fines and penalties, litigation and increased regulation. |
We seek as far as possible to have proprietary content. Where content is supplied to us by third parties, we aim to have contracts which provide mutual commercial benefit. We also maintain an active dialogue with regulatory authorities on privacy and other data-related issues, and promote, with others, the responsible use of data. We have established data privacy principles, governance structures and control programmes designed to ensure data privacy requirements are met and which protect data and individuals’ privacy across all jurisdictions where we operate. We have put in place and test response plans to manage incidents where data privacy might be compromised. We embed our data privacy principles in agreements with third parties. We have assurance programmes to monitor compliance and conduct training and awareness programmes. | ||
Paid subscriptions |
Our Scientific, Technical & Medical (STM) primary research content, like that of most of our competitors, is sold largely on a paid subscription basis. There is continued debate in government, academic and library communities, which are the principal customers for our STM content, regarding to what extent such content should be funded instead through fees charged to authors or authors’ funders and/or made freely available in some form after a period following publication. Some of these methods, if widely adopted, could adversely affect our revenue from paid subscriptions. | We engage extensively with stakeholders in the STM community to better understand their needs and deliver value to them. We are open to serving the STM community under any payment model that can sustainably provide researchers with the critical information tools that they need. In particular, the number of articles we publish on an author pays, open access basis is growing rapidly. We focus on the integrity and quality of research through the editorial and peer review process; we invest in efficient editorial and distribution platforms and in innovation in platforms and tools to make content and data more accessible and actionable; and we develop our research systems to provide capabilities to manage different payment models. We ensure vigilance on plagiarism and the long-term preservation of research findings. | ||
STRATEGIC RISKS |
||||
Risk |
Description and impact |
Mitigation | ||
Customer acceptance of our products |
Our businesses are dependent on the continued demand by our customers for our products and services and the value placed on them. They operate in highly competitive and dynamic markets, and the means of delivery, customer demand for, and the products and services themselves, continue to change in response to rapid technological innovations, legislative and regulatory changes, the entrance of new competitors, and other factors. Failure to anticipate and quickly adapt to these changes, or to deliver enhanced value to our customers, could impact demand for our products and services and consequently adversely affect our revenue or the long-term returns from our investment in electronic product and platform initiatives. | We are focused on the needs and economics of our customers. We gain insights into our markets, evolving customers’ needs, the potential application of new technologies and business models, and the actions of competitors and disrupters. These insights inform our market strategies and operational priorities. We continuously invest significant resources in our products and services, and the infrastructure to support them. We leverage user centred design and development methods and customer analytics and invest in new and enhanced technologies to provide content and innovative solutions that help them achieve better outcomes and enhance productivity. | ||
Acquisitions |
We supplement our organic development with selected acquisitions. If we are unable to generate the anticipated benefits such as revenue growth and/or cost savings associated with these acquisitions, it could adversely affect return on invested capital and financial condition or lead to an impairment of goodwill. | Acquisitions are made within the framework of our overall strategy, which emphasises organic development. We have a well formulated process for reviewing and executing acquisitions and for managing the post-acquisition integration. This process is underpinned with clear strategic, financial and ethical criteria. We closely monitor the integration and performance of acquisitions. |
68 | RELX | |
|
OPERATIONAL RISKS |
||||
Risk |
Description and impact |
Mitigation | ||
Technology and business resilience |
Our businesses are dependent on electronic platforms and networks, primarily the internet, for delivery of our products and services. These could be adversely affected if our electronic delivery platforms, networks or supporting infrastructure experience a significant failure, interruption or security breach. Climate change may increase the intensity and frequency of severe weather events which increases the risk of significant failure. | We have established procedures for the protection of our businesses and technology assets. These include the development and testing of business continuity plans, including IT disaster recovery plans and back-up delivery systems, to reduce business disruption in the event of major technology or infrastructure failure, terrorism or adverse weather incidents. | ||
Face-to-face events |
Face-to-face |
We actively review our ability to host events considering the availability of venues and national and local regulations including those related to health, travel and security. Where regulations permit us to hold events, we take appropriate measures for the well being and safety of exhibitors, visitors and employees. The physical events being run are supported by enhanced digital services, including remote participation by both exhibitors and attendees. In addition, we are holding a number of standalone virtual events and are further developing and delivering complementary digital offerings in order to maintain our presence in the industry communities that we serve. | ||
Cyber security |
Our businesses maintain and use online databases and platforms delivering our products and services, which we rely on, and provide data to third parties, including customers and service providers. These databases and information are a target for compromise and face a risk of unauthorised access and use by unauthorised parties including through cyber, ransomware and phishing attacks on us or our third-party service providers. Our cyber security measures, and the measures used by our third-party service providers, may not detect or prevent all attempts to compromise our systems, which may jeopardise the security of the data we maintain or may disrupt our systems. Failures of our cyber security measures could result in unauthorised access to our systems, misappropriation of our or our users’ data, deletion or modification of stored information or other interruption to our business operations. As techniques used to obtain unauthorised access to or to sabotage systems change frequently and may not be known until launched against us or our third-party service providers we may be unable to anticipate or implement adequate measures to protect against these attacks and our service providers and customers may likewise be unable to do so. Compromises of our or our third-party service providers’ systems, or failure to comply with applicable legislation or regulatory or contractual requirements could adversely affect our financial performance, damage our reputation and expose us to risk of loss, fines and penalties, litigation and increased regulation. |
We have established security programmes which are constantly reviewed and updated to address developments in the threat landscape with the aim of ensuring our ability to prevent, respond to and recover from a cyber-attack or ransomware attack, that data is protected, our business infrastructures and those of our third-party service providers continue to operate and that we comply with relevant legislative, regulatory and contractual requirements. We have governance mechanisms in place to design and monitor common policies and standards across our businesses. We invest in appropriate technological and physical controls which are applied across the enterprise in a risk-based security programme which operates at the infrastructure, application and user levels. These controls include, but are not limited to, infrastructure vulnerability management, application scanning and penetration testing, network segmentation, encryption and logging and monitoring. We provide regular training and communication initiatives to establish and maintain awareness of risks at all levels of our businesses. We have appropriate incident response plans to respond to threats and attacks which include procedures to recover and restore data and applications in the event of an attack. We maintain appropriate information security policies and contractual requirements for our businesses and run programmes monitoring the application of our data security and resilience policies by third party service providers. We use independent internal and third-party auditors to test, evaluate, and help enhance our procedures and controls. | ||
Supply chain dependencies |
Our organisational and operational structures depend on outsourced and offshored functions, including use of cloud service providers. Poor performance, failure or breach of third parties to whom we have outsourced activities could adversely affect our business performance, reputation and financial condition. | We select our vendors with care and establish contractual service levels that we closely monitor, including through key performance indicators and targeted supplier audits. We have developed business continuity plans to reduce disruption in the event of a major failure by a vendor. | ||
Talent |
The implementation and execution of our strategies and business plans depend on our ability to recruit, motivate and retain skilled employees and management. We compete globally and across business sectors for talented management and skilled individuals, particularly those with technology and data analytics capabilities. An inability to recruit, motivate or retain such people could adversely affect our business performance. Failure to recruit and develop talent regardless of gender, race or other characteristics could adversely affect our reputation and business performance. | We have well established management development and talent review programmes. We monitor capability needs and remuneration schemes are tailored to attract and motivate the best talent available at an appropriate level of cost. We actively seek feedback from employees, which feeds into plans to enhance employee engagement and motivation. Our Diversity and Inclusion Strategy creates a diverse workforce and environment that respects individuals and their contributions. |
RELX |
69 | |
|
FINANCIAL RISKS |
||||
Risk |
Description and impact |
Mitigation | ||
Pensions |
We operate a number of pension schemes around the world, including local versions of the defined benefit type in the UK and the United States. The US scheme is closed to future accruals. The UK scheme has been closed to new hires since 2010. The members who continue to accrue benefits now represent a small and reducing portion of the overall UK based workforce. The assets and obligations associated with these pension schemes are sensitive to changes in the market values of the scheme’s investments and the market-related assumptions used to value scheme liabilities. Adverse changes to asset values, discount rates, longevity assumptions or inflation could increase funding requirements. | We have professional management of our pension schemes and we focus on maintaining appropriate asset allocation and plan designs. We review our funding requirements on a regular basis with the assistance of independent actuaries and ensure that the funding plans are appropriate. We seek to manage pension liabilities by reviewing pension benefits provided to staff as well as the structure of scheme arrangements. | ||
Tax |
Our businesses operate globally, and our profits are subject to taxation in many different jurisdictions and at differing tax rates. Tax laws that currently apply to our businesses may be amended by the relevant authorities or interpreted differently by them, and these changes could adversely affect our reported results. | We maintain an open dialogue with tax authorities and are vigilant in ensuring that we comply with current tax legislation. We have clear and consistent tax policies and tax matters are dealt with by a professional tax function, supported by external advisers. As outlined in the Chief Financial Officer’s report on pages 60 to 65 we engage with tax authorities and international organisations. We continue to monitor legislative developments in the jurisdictions in which we operate and consider the potential impacts of proposed regulation changes under various scenarios. The principles we adopt in our approach to tax matters can be found on our website at www.relx.com/go/taxprinciples. | ||
Treasury |
The RELX PLC consolidated financial statements are expressed in pounds sterling and are subject to movements in exchange rates on the translation of the financial information of businesses whose operational currencies are other than sterling. The United States is our most important market and, accordingly, significant fluctuations in the US dollar exchange rate could significantly affect our reported results. We also earn revenues and incur costs in a range of other currencies, including the euro and the yen, and significant fluctuations in these exchange rates could also significantly impact our reported results. Macroeconomic, political and market conditions may adversely affect the availability and terms of short and long-term funding, volatility of interest rates, the credit quality of our counterparties, currency exchange rates and inflation. The majority of our outstanding debt instruments are, and any of our future debt instruments may be, publicly rated by independent rating agencies. Our borrowing costs and access to capital may be adversely affected if the credit ratings assigned to our debt are downgraded. |
Our approach to capital structure and funding is described in the Chief Financial Officer’s report on pages 60 to 65. The approach to the management of treasury risks is described in note 17 to the consolidated financial statements. | ||
REPUTATIONAL RISKS |
||||
Risk |
Description and impact |
Mitigation | ||
Ethics |
As a global provider of professional information solutions to the Risk, STM, Legal and Exhibitions markets we, our employees and major suppliers are expected to adhere to high standards of integrity and ethical conduct, including those related to anti-bribery and anti-corruption, fraud, sanctions, competition and principled business conduct. A breach of generally accepted ethical business standards or applicable laws could adversely affect our business performance, reputation and financial condition. | Our Code of Ethics and Business Conduct is provided to every employee and is supported by training and communication. It encompasses such topics as competing fairly, prohibiting corrupt business practice and fair employment practices and encouraging open and principled behaviour. We have well-established processes for monitoring, reporting and investigating instances of unethical conduct. Our major suppliers are required to adhere to our Supplier Code of Conduct. |
By order of the Board | Registered Office | |
Henry Udow |
1-3 Strand | |
Company Secretary | London | |
9 February 2022 | WC2N 5JR |
70 | RELX | |
|
Governance | ||||
In this section | ||||
72 |
||||
74 |
||||
76 |
||||
77 |
||||
97 |
||||
100 |
||||
122 |
||||
125 |
RELX |
71 | |
|
72 | RELX | |
|
Executive Directors |
Non-Executive Directors |
|||||||
|
||||||||
Erik Engstrom (58) Chief Executive Officer Appointed: Other appointments: Non-Executive Director of Smith & Nephew plc and Bonnier Group.Past appointments: Non-Executive Director of Eniro AB and Svenska Cellulosa Aktiebolaget SCA.Education: Nationality: |
Paul Walker (64) Chair Appointed: Other appointments: Past appointments: Former Non-Executive Director of Experian plc, Epic Software Corporation, Diageo plc, Mytravel Group plc and Cussins Property Group plc. Before that was Chief Executive Officer of Sage Group plc for 16 years, having previously served as its Chief Financial Officer and Chief Financial Controller. Education: Nationality: |
June Felix (65) Non-Executive DirectorAppointed: Other appointments: Past appointments: Non-Executive Director of IG Group Holdings plc from 2015 until the time of her appointment as Chief Executive Officer in October 2018. Previously held various executive management positions at a number of large multinational businesses in Hong Kong, London and New York, including Verifone, IBM, Citibank and Chase Manhattan. Earlier in her career, was a strategy consultant with Booz Allen Hamilton. Nationality: | ||||||
|
||||||||
Nick Luff (54) Chief Financial Officer Appointed: Other appointments: Non-Executive Director of Rolls-Royce Holdings plc. Past appointments: Non-Executive Director of QinetiQ Group plc and Lloyds Banking Group plc. Education: Nationality: |
Wolfhart Hauser (72)
Non-Executive DirectorSenior Independent Director Chair of the Remuneration Committee Appointed: Other appointments: Non-Executive Director of Associated British Foods plc. Past appointments: a Non-Executive Director of Logica plc. Education: Nationality: |
Charlotte Hogg (51)
Non-Executive DirectorAppointed: Other appointments: Non-Executive Director of NowTeach and a Director of Kettlethorpe Sport Horses Limited. Past appointments: Nationality: |
RELX |
73 | |
|
|
| |||||||
Marike van Lier Lels (62)
Non-Executive DirectorWorkforce Engagement Director |
Linda Sanford (69)
Non-Executive Director |
Suzanne Wood (61)
Non-Executive DirectorChair of the Audit Committee | ||||||
Appointed: |
Appointed: |
|
| |||||
Other appointments: Past appointments: Nationality: |
Other appointments: Past appointments: Non-Executive Director of ITT Corporation, served on the boards of directors of The Business Council of New York State and the Partnership for New York City, and on the boards of trustees of the State University of New York, St John’s University and Rensselaer Polytechnic Institute.Nationality: |
Appointed: Other appointments: Non-Executive Director of Ferguson plc. Past appointments: Nationality: | ||||||
|
||||||||
|
|
|||||||
Robert MacLeod (57)
Non-Executive Director |
Andrew Sukawaty (66)
Non-Executive Director |
|||||||
Appointed: |
Appointed: |
|||||||
Other appointments: Past appointments: Non-Executive Director of Aggreko plc. Nationality: |
Other appointments: Past appointments: Non-Executive Director of Telefonica Europe (following its acquisition of O2 plc) and Powerwave Technologies Inc, and additionally as Chief Executive of Inmarsat plc, Sprint Corp and NTL Group Ltd. Nationality: |
Board Committee membership key
Audit Committee
Remuneration Committee
Nominations Committee
Corporate Governance Committee
Committee Chair |
74 | RELX | |
|
Mark Kelsey |
Kumsal Bayazit |
Mike Walsh |
Hugh M Jones IV | |||
Chief Executive Officer | Chief Executive Officer | Chief Executive Officer | Chief Executive Officer | |||
Risk | Scientific, Technical | Legal | Exhibitions | |||
& Medical and Chair, | ||||||
RELX Technology Forum | ||||||
|
|
|
| |||
Joined in 1983. Appointed to current position in 2012. |
Joined in 2004. Appointed to current position in 2019. |
Joined in 2003. Appointed to current position in 2011. |
Joined in 2011. Appointed to current position in 2020. | |||
Has held a number of senior positions across the Group over the past 30 years. Previously Chief Operating Officer and then Chief Executive Officer of Reed Business Information. Studied at Liverpool University and received his MBA from Bradford University. | Previously President, Exhibitions Europe, Chief Strategy Officer, RELX, and Executive Vice President of Global Strategy and Business Development for LexisNexis. Prior to that worked with Bain & Company in New York, Los Angeles, Johannesburg and Sydney. Holds an MBA from Harvard Business School and is a graduate of the University of California at Berkeley. | Previously CEO of LexisNexis US Legal Markets and Director of Strategic Business Development Home Depot. Prior to that was a practising attorney at Weil, Gotshal and Manges in Washington DC and served as a consultant with The Boston Consulting Group. Holds a Juris Doctor degree from Harvard Law School and is a graduate of Yale University. | Previously Group Managing Director, Accuity, ICIS, Cirium, and EG within Risk. Prior to that was Chief Executive Officer, Accuity. Holds an MBA from the Ross School of Business at the University of Michigan and is a graduate of Yale University. |
RELX |
75 | |
|
Rose Thomson |
Vijay Raghavan |
Henry Udow |
Jelena Sevo |
Youngsuk ‘YS’ Chi | ||||
Chief Human Resources Officer |
Director, RELX Technology Forum and Chief Technology Officer, Risk |
Chief Legal Officer and Company Secretary |
Chief Strategy Officer |
Director of RELX Corporate Affairs and Chair, Elsevier | ||||
|
|
|
|
| ||||
Joined in 2021. Appointed to current position at that time. | Joined in 2002. Appointed to current position in 2019. | Joined in 2011. Appointed to current position at that time. | Joined in 2011. Appointed to current position in 2019. | Joined in 2005. Appointed to current position in 2011. | ||||
Previously Chief Human Resources Officer at Standard Life Aberdeen. Before that, held various senior human resources roles at Travelport International, Barclays Bank, The Coca-Cola Company, Coles Group and The Walt Disney Company. Holds an MA in business management from Macquarie University Graduate School of Management and a BA in Psychology, Macquarie University. |
Previously Vice President of Technology, LexisNexis Insurance Solutions. Prior technology executive positions at ChoicePoint, Paragon Solutions, Primus Knowledge Solutions, and McKesson. Holds a bachelor’s degree in electrical and electronics engineering from the Birla Institute of Technology and Science, Pilani, completed an advanced management program for executives at MIT Sloan School of Management, and is completing a master’s degree in cybersecurity from the Georgia Institute of Technology. | Previously Chief Legal Officer and Company Secretary of Cadbury plc having spent 23 years working with the company. Prior to that worked at Shearman & Sterling in New York and London. Holds a Juris Doctor degree from the University of Michigan Law School and a bachelor’s degree from the University of Rochester. | Previously Director of Tax Markets for LexisNexis UK. Prior to that, various senior management roles in LexisNexis and Elsevier. Previously a consultant at Bain & Co and Booz Allen Hamilton. Holds an MBA from Harvard Business School, a master’s degree in law from Georgetown University and a degree in law from the University of Belgrade. | Previously was President and Chief Operating Officer of Random House, founding Chairman of Random House Asia and Chief Operating Officer for Ingram Book Group. Holds an MBA from Columbia University and is a graduate of Princeton University. |
76 | RELX | |
|
RELX |
77 | |
|
The 2018 UK Corporate Governance Code (the Code) applied to RELX PLC (the Company) during the year. The Company has complied with the provisions of the Code throughout the year ended 31 December 2021, with the exception of provision 19 (length of tenure of the Chair) until 1 March 2021, and provision 38 (alignment of executive director pension contribution rates with those available to the workforce). Paul Walker succeeded Sir Anthony Habgood as the Chair of the Board on 1 March 2021, following which the Company was in compliance with provision 19 for the remainder of the year. Sir Anthony Habgood stepped down from the Board at that time, after over 11 years of services as Chair of the Board. At the Board’s request, Sir Anthony Habgood remained in the role until his successor took office, in order to ensure continuity of the RELX Board and governance leadership at a time of significant business uncertainty due to the Covid-19 pandemic.The value of pension benefits for current Executive Directors has decreased over the last several years, and continues to decrease. They will transition from their current arrangements to the level of pension benefits provided under the Company’s regular defined contribution plans (currently capped at 11% in the UK) by the end of this year (2022), in line with the recommendations of the Investment Association. Notwithstanding provision 38 of the Code, the Board viewed it as appropriate that there be a phased transition of existing pension benefits for Executive Directors. The current Remuneration Policy, which was approved by shareholders at the 2020 Annual General Meeting (AGM) and applies for three years from the date of approval, includes a pension policy for any newly appointed Executive Directors which is aligned to the general workforce. The pension benefits received by the Executive Directors in 2021 were in line with the terms of the Directors’ Remuneration Policy. A description of how the Company has applied the main principles of the Code is set out on pages 77 to 124. A copy of the Code can be found on the FRC website at
www.frc.org.uk |
◾ |
Pages 5, 14 to 37, 66 to 69, and 77 to 79 for a description of how opportunities and risks to the future success of the business have been considered and addressed, the sustainability of RELX’s business model and how its governance contributes towards the delivery of its strategy |
◾ |
Page 39 for RELX’s Section 172 Statement and pages 81 to 88 for a description of the Board’s principal decisions during the |
year and how the interests of RELX’s key stakeholders and the matters set out in Section 172 of the Act were considered in Board discussions and decision-making |
◾ |
Pages 49 to 50 for an explanation of RELX’s approach to investing in and rewarding its workforce |
◾ |
Pages 66 to 69 for confirmation that the Directors have carried out a robust assessment of the emerging and principal risks facing RELX, including a description of its principal risks, what procedures are in place to identify emerging risks, and an explanation of how these are being managed or mitigated |
◾ |
Pages 80 to 81 for an explanation of the Board’s activities in assessing and monitoring RELX’s culture |
◾ |
Page 94 for confirmation that the Annual Report and Financial Statements is fair, balanced and understandable and provides the information necessary for shareholders to assess RELX’s position and performance, business model and strategy |
◾ |
Page 95 for the statement on the status of RELX as a going concern |
◾ |
Page 96 for an explanation of how the Directors have assessed the prospects of RELX, taking into account its current position and its emerging and principal risks |
78 | RELX | |
|
Our purpose, strategy, values and culture Purpose RELX is a 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. Strategy Our number one strategic priority is the organic development of increasingly sophisticated information-based analytics and decision tools that deliver enhanced value to professional and business customers. We aim to achieve leading positions in long-term global growth markets and leverage our skills, assets and resources across RELX, both to build solutions for our customers and to pursue cost efficiencies. We are systematically migrating all of our information solutions across RELX towards higher value-add decision tools, adding broader data sets, embedding more sophisticated analytics and leveraging more powerful technology, primarily through organic development. We are transforming our core business, building out new products and expanding into higher growth adjacencies and geographies. We are supplementing this organic development with selective acquisitions of targeted data sets and analytics, and assets in high-growth markets that support our organic growth strategies and are natural additions to our existing business.By focusing on evolving the fundamentals of our business we believe that, over time, we are improving our business profile and the quality of our earnings. This strategy has led to more predictable revenues through a better asset mix and geographic balance; improved returns by focusing on organic development with strong cash generation; and a higher growth profile as we expand in higher growth segments, exit from structurally challenged businesses, and gradually reduce the drag from print format declines. In particular, proactive management of the Covid-19 pandemic’s impact on each of our business areas allowed us to accelerate this strategic shift.Values We strive to do business with integrity. Our principle “Do the Right Thing” embraces behaviours such as being honest in dealing with others, respecting each other, and courageously speaking out for what is right; thereby guiding our commitment to achieve business goals in an open, honest, ethical, and principled way. We ask our suppliers to meet the same standards, and provide support for them to do so as necessary. Culture As an information-based analytics and decision tool provider, our corporate culture is fact-based, data-driven and analytical. We are transparent and non-political in our decision-making. We are passionate about making a positive impact on society through our unique contributions as a business and our employees feel a strong sense of engagement with the business and its purpose. We focus on improving customer outcomes while emphasising corporate responsibility and acting with integrity and advancing inclusiveness and diversity. Our culture encourages community engagement, environmental responsibility and the well-being of our people. |
RELX |
79 | |
|
80 | RELX | |
|
Board Committees The structure of the Board’s main Committees and a summary of their key responsibilities are set out below. All of the Committees have written Terms of Reference, which are available on our website,
www.relx.com Board Committees are principally supported by the Chief Executive Officer, Chief Financial Officer, Chief Legal Officer and Company Secretary, and the Chief Human Resources Officer, although senior managers within the Group are invited to attend meetings where appropriate. The Board’s annual programme and the agendas for the Committees are prepared by their respective Chairs with support from the Company Secretary. |
RELX |
81 | |
|
◾ |
Received regular presentations on RELX’s business areas from the business area CEOs, which included reviews and discussion over actual and estimated full-year outturns based on multiple scenarios, incorporating short-, medium- and long-term variables within the business environment and the wider global economy. Particular consideration was given to the pace and sequencing of reopening for exhibitions events following the impact of Covid-19, subscription renewal rates within the Legal business and transactional volume in the Risk business |
◾ |
Through ongoing discussion with the business area leaders and the Chief Strategy Officer, determined strategic priorities for a three-year period, and the development of robust supporting operating plans. A two-day Strategy Review was held in September 2021 to debate and determine a three-year strategy plan for 2022-2024. Strategic priorities for organic growth, capital expenditure and areas for potential acquisitions across all four business areas were reviewed |
◾ |
Considered and approved an updated Purpose, Strategy, Values and Culture statement, as set out on page 78 |
◾ |
Considered and approved the budget for 2021, and tracked financial performance throughout the year |
◾ |
Received a comprehensive update on developments, future plans and particular focus areas for the Group in respect of emerging technologies, including from the RELX Chief Technology Officers Forum, which plays a vital role in ensuring that the Group’s technology appropriately evolves and supports its ongoing development of more sophisticated analytics and decision tools for customers |
82 | RELX | |
|
◾ |
Conducted comprehensive reviews of the Group’s invested capital and capital structure. This embraced financial performance, completed acquisitions, potential acquisitions, net debt, returns on invested capital, credit ratings, forecasts, and financial market conditions |
◾ |
Following a detailed review of the Group’s borrowing limits, liquidity, net debt/EBITDA position, debt covenant compliance and budget and capital allocation forecasts, approved RELX’s going concern statement (as set out on page 95) and viability statement (as set out on page 96). In doing so, the Board continued to examine throughout the year a range of scenarios reflecting the potential impact of the ongoing Covid-19 pandemic on each business area, in particular Exhibitions, and the Group as a whole, to ensure that the Company maintained a strong cash and liquidity position, concluding that no additional debt fundings were required by the Group |
◾ |
Considered and approved a number of acquisition and disposal proposals, including the acquisition of TruNarrative, which has supplemented the Risk division’s financial crime compliance and fraud solutions and is part of its portfolio that allows customers to make real time financial compliance decisions. In doing so, the Board carefully reviewed the strategic rationale for each of the proposals and the value forecasted to be added to RELX by them over a defined period of time. It also conducted an annual acquisition review process in which historical acquisitions are reviewed including their financial performance and strategic value |
◾ |
Reviewed recruitment priorities for 2021 and 2022, and progress made in respect of talent development for the year. In doing so, the Board reviewed employee attrition levels within each business area, examined a number of inclusion and diversity related data points (gender, ethnicity, national origin, among others) within key geographies of the Group, as well as the results of pay equity audits conducted during the year |
◾ |
Made the decision not to resume the Group’s share buyback programme for 2021. Following the initial suspension of the programme in April 2020, due to the uncertain business environment created by the Covid-19 pandemic, the Board continued to review the decision throughout the year and determined that it is appropriate to resume the programme in 2022. In 2022, we intend to deploy £500m on share buybacks |
◾ |
Received a presentation from Head of Corporate Communications on focus areas for 2021, in order to effectively deliver the Company’s core messages to target audiences |
◾ |
Considered RELX’s principal and emerging risks and mitigation strategies, through the work of the Audit Committee and periodic updates received from Head of Audit and Risk Management. The Board confirmed that the Group’s principal risks previously identified remain largely unchanged, while also updating several of them to reflect recent developments. For instance, the medium-term impact of the Covid-19 pandemic to face-to-face |
◾ |
Reviewed RELX’s data protection systems and processes to mitigate against cyber security risks, including a comprehensive presentation on cyber security from the Group Head of Information Assurance and Data Protection, covering the industry threat landscape, its implications to RELX and the mapping of RELX’s cyber security programme to address those risks; a detailed review of the key performance indicators for the cyber security programme; and both company-wide and operating division-specific initiatives for 2021 |
◾ |
Through the Audit Committee, received periodic updates from RELX’s Chief Compliance Officer on RELX’s compliance efforts with respect to privacy, trade sanctions, anti-bribery and intellectual property |
◾ |
Received through the Audit Committee a detailed overview of the Group’s insurance programme from the Group Treasurer and the Head of Group Insurance & Risk, which included a review and discussion of the Group’s insurance strategy |
◾ |
Considered Board succession planning and the resultant impact on Committee memberships. For the changes of Committee memberships, please see page 89 |
◾ |
Approved the re-appointment of Marike van Lier Lels as a Non-Executive Director for a third three-year term with effect from 21 July 2021, after taking into account the latest Board Evaluation which concluded that her performance as a Non-Executive Director had been effective and she had demonstrated continued commitment to her role |
◾ |
Through the work of the Remuneration Committee, reviewed remuneration for the Executive Directors and Senior Executives, to ensure that both short- and long-term incentives are aligned with Company and stakeholder interests, and Company values and culture |
◾ |
Received updates on internal talent reviews, career progression plans and management succession plans, which contribute towards building leadership capabilities and solid succession pipelines, as well as a detailed analysis over the Group’s demographics both from a gender and a geographic perspective. The Board was also kept informed, through the Nominations Committee, on the progress of selection processes for key management positions, including the appointment of Rose Thomson as Chief Human Resources Officer in September 2021 |
◾ |
Conducted a triennial review of, and approved, a revised and updated Ethics Code, which adds particular emphasis on manager responsibility to lead with respect to the Code’s principles and ethical standards. The revised Ethics Code was also redesigned for improved accessibility, and expanded resources were included |
◾ |
Reviewed and approved a group-wide Inclusion and Diversity Policy, and monitored its implementation. Through the work of the Workforce Engagement Director, the Board also received updates on workforce engagement activities globally, which aim to further develop a motivated and aligned workforce. For more details, please see page 85 |
RELX |
83 | |
|
◾ |
Approved the Company’s Modern Slavery Act Statement describing the steps it had taken to ensure that slavery and human trafficking were not taking place in the context of the Company’s activities carried out in 2021 |
◾ |
Considered and approved our RELX Tax Principles that support our culture of acting with integrity in all that we do |
◾ |
Received a presentation from the Chief Compliance Officer on the process in place through which RELX employees can confidentially (and anonymously should they so choose) submit concerns to the Company. These include, but are not limited to, breaches of the Code of Ethics and Business Conduct |
◾ |
Considered and approved the Corporate responsibility overview, as set out on pages 39 to 58, as well as the RELX Corporate Responsibility Report 2021 (www.relx.com/go/crreport) |
◾ |
Received comprehensive updates on RELX’s corporate responsibility activities from the Group Head of Corporate Responsibility, including performance on the 2021 corporate responsibility objectives, encompassing: |
◾ |
the Company’s advance of the United Nations Sustainable Development Goals (SDG) which included increasing content and unique users of the free RELX SDG Resource Centre, holding the fifth SDG Inspiration Day event and second SDG customer awards |
◾ |
the efforts made in advancing inclusion and diversity across RELX |
◾ |
the promotion of an ethical supply chain |
◾ |
employee initiatives supporting local communities across the world |
◾ |
the ongoing focus on climate action including carbon reduction and offsetting, and the Company’s Task Force for Climate-related Financial Disclosures (TCFD) statement (see further detail below) |
◾ |
the alignment with the Sustainability Accounting Standards Board (SASB) (see page 58) |
◾ |
the increased focus on workforce engagement |
◾ |
updates to RELX’s Modern Slavery Act Statement, which was reviewed and approved by the Board |
◾ |
the Group’s ratings and standings in ESG indices and its engagement with investors on RELX’s ESG performance, including its first investor corporate responsibility teach-in |
◾ |
Considered the engagement activities undertaken with RELX’s key stakeholders as set out on pages 84 to 88 |
◾ |
Received updates on the progress that had been made in meeting the Company’s 2021 Socially Responsible Supplier objectives, including the number of signatories to the RELX Supplier Code of Conduct |
◾ |
Considered the Company’s action on climate change as part of its commitment to progressing the UN’s SDG goals. It reviewed and approved its TCFD statement (please see page 55, and Appendix 4 of the Corporate Responsibility Report for more detail) and maintained a focus on ensuring carbon reductions in line with the Paris Agreement’s aim to limit global warming to 1.5 °C above pre-industrial levels. The Board also endorsed: |
◾ |
RELX’s carbon emissions targets. Reductions in 2021 reflect the effects of the global pandemic but are part of a longer-run reduction trajectory |
◾ |
the Company’s focus on delivering products and offerings that contributed to accelerating climate action, such as improved carbon tracking in the aviation industry through Cirium (Risk business), Pathways to Net Zero report (STM business), extensive environment law information and news to advise the legal community on environmental regimes, legislation and other developments (Legal business), and Dcarbonise Week Virtual Summit (Exhibitions business) |
◾ |
the purchase of renewable energy and renewable energy certificates, with the balance offset through high-quality, certified offsets |
◾ |
the Company becoming a signatory of The Climate Pledge with the aim of becoming net zero no later than 2040 across all three scopes |
◾ |
Approved, as part of the 2021 Annual Report and Financial Statements process, statements describing how the Company had applied the principles of the Code during the year |
◾ |
Approved, as appropriate, actual and potential Directors’ conflicts of interest |
◾ |
Reflecting its confidence in the growth prospects of the Company, the Board declared an increased interim dividend of 14.3p per share, and an increased final dividend for 2021 of 35.5p per share. In doing so, it carefully considered various scenarios and factors, including trading conditions, balance sheet strength, short- and medium-term liquidity, cash flow requirements and feedback from investors on dividend expectations |
◾ |
Held the 2021 AGM as a closed meeting, similar to the 2020 AGM, taking into consideration the guidance of the UK government in place at the time, and wider safety considerations. The meeting was held on 22 April 2021 with the minimum quorum of two attendees, while voting was conducted by proxy. Recognising the importance of the opportunity for shareholders to interact with Directors, an audiocast was held, in which the Chair, Paul Walker, responded to questions received by shareholders prior to the AGM |
◾ |
Received regular investor relations updates and feedback from investors through direct engagements. For more details, please see Investors section on page 84 |
84 | RELX | |
|
Stakeholder: Investors | ||
Why effective engagement is important: |
Engagement with our investors helps them to understand our strategy, performance and governance arrangements, and to make informed and effective investment decisions concerning RELX. It also makes clear our prioritisation of the long-term in our decision-making and focus on delivery of consistent financial performance. Our investors provide us with input and feedback concerning the development and implementation of our strategy, and we consider their views when making investment decisions. | |
Principal forms of engagement with our investors in 2021, the outcomes of this engagement, how this is fed back to the Board, and how it impacted Board decision-making in 2021: |
Engagement with our investors is undertaken by the Chair, the Senior Independent Director, Chief Executive Officer, Chief Financial Officer, Head of Investor Relations and the Director of Corporate Responsibility, as well as through our dedicated Investor Relations, Corporate Responsibility and Treasury teams. The Board receives regular updates on these interactions, which include key issues raised by investors, and discussions and outcomes from the completion of investor roadshows and ad hoc meetings with institutional shareholders on significant issues and our recent and proposed activities. The Board also receives an update on investor relations as a standing item at its meetings which includes: the Group’s share price and shareholder return performance, a review of analyst comments made in response to our scheduled results releases and updates on the shareholder register. RELX’s material communications to its investors, such as its trading results and updates, other regulatory announcements, our Annual Report and Financial Statements and Notice of AGM must be reviewed and approved by the Board under our corporate governance framework. As a result of the Covid-19 pandemic, the Board offered shareholders the opportunity to submit questions prior to the 2021 AGM taking place. A number of questions were received and answered during the Chair’s audiocast on the day of the meeting. Our engagement processes confirmed that RELX’s strategic and financial priorities are well understood by investors. In the main, investors appreciate the consistency of RELX’s strategy, and focus on the organic development of information-based analytics and decision tools that deliver enhanced value to our professional and business customers. The Board considered this when approving the RELX three-year strategy plan for 2022-2024, which leaves our strategic focus, and our priorities for uses of cash generated by the Group, broadly unchanged. In May 2021, we held a virtual investor event focused on corporate responsibility at RELX, which was joined live by close to 90 investors and analysts and received positive feedback. Presentations covered RELX’s overall approach to corporate responsibility as well as its unique contributions with three case studies: (1) our Scientific, Technical & Medical (STM) business area’s response to Covid-19, (2) our Risk business area’s initiative to deliver increased financial inclusion, and (3) our Legal business area’s efforts to promote Rule of Law and access to justice. The presentation and webcast are available on
www.relx.com/investors The Board also considered investor views on strategy when approving investment decisions, including those relating to new or emerging technologies, or acquisitions which were completed in 2021. Our investors vary substantially in their reasons for investing in RELX and in their appetite for risk. The Board considered these differing interests in its decision-making during the year. In respect of shareholder returns, the Board considered a range of investor and analyst views, balancing the impact of returns with stakeholder interests in other key RELX financial metrics. As a result of its deliberations, the Board declared a 2020 final dividend of 33.4p per share, to deliver a total 2020 dividend of 47.0p (an increase of 3% on 2019), and a 2021 interim dividend of 14.3p per share (an increase of 5% on the prior year interim dividend). The Group’s share buyback programme, having completed £150m of the £400m initially approved at the beginning of 2020, was suspended in April 2020 and did not resume in 2021. The Board has also considered the views of the wider investment community when approving areas of focus for RELX’s ESG activities, including actions that RELX can take to mitigate the impact of climate change. |
RELX |
85 | |
|
Stakeholder: Employees | ||
Why effective engagement is important: |
Our people are essential to our future growth, and our aim to successfully build long-term leading positions in global growth markets. We continue to invest substantial time and effort to employ and retain employees who are passionate about our markets and have up-to-date | |
Principal forms of engagement with our employees in 2021, the outcomes of this engagement, how this is fed back to the Board, and how it impacted Board decision-making in 2021: |
Engagement with employees at all levels takes place as a result of the management structure embedded throughout RELX, with employee feedback then cascaded up through management levels, and significant issues relayed to the Board by the Executive Directors and the RELX business area CEOs. Engagement also takes place with our workforce on behalf of the Board and the Company through our Workforce Engagement Director, Chief Human Resources Officer and Senior HR Leadership Team. The Workforce Engagement Director provided updates to the Board on engagement processes, findings and outcomes. Marike van Lier Lels was appointed as the Workforce Engagement Director in January 2019, due to her previous experience in this area as a director responsible for employee representation in the Netherlands, and her balance of independence and knowledge of the Group, having joined the Board as a Non-Executive Director of RELX PLC in 2015. Ms van Lier Lels continued in the role in 2021. She met with European, US and Asia-Pacific workforce representatives and employee panels. Engagement activities were held virtually due to the continued travel restrictions as a result of the pandemic. In order to facilitate some of these meetings, recognising the additional challenges of engaging virtually, online questionnaires were sent to employees in advance (including questions concerning support received during the pandemic, flexible working, career development, and inclusion and diversity), with aggregated anonymised responses shared with the Workforce Engagement Director and the relevant employee group to generate points for discussion and ensure the views of all participants could be heard. Feedback is used as part of Board and management decision-making. The Board was pleased to see that employees continue to feel well supported and engaged. As many employees continue to work from home, RELX continued to make significant additional online support resources available, covering areas such as stress management, mental well-being, business continuity, remote working guidance, and physical fitness.Feedback from employees on working from home and flexible working more generally is being taken into account in policies that are being developed and were reviewed by the Board in 2021. Some of our offices are already operating flexibly, but we are not through the pandemic yet. In geographies where the situation is improving, return to the office is planned but managed flexibly given the evolving environment. Messages on this have been sent from business area CEOs to their employees. Responding to the increasing desire for employees to have greater visibility of career development opportunities, career frameworks have been launched to help guide career development in business critical areas such as data, research and analytics. These frameworks allow employees to understand the skills and competencies on which they need to focus to progress in their chosen area. In 2021, we continued our detailed assessment of high-performing talent and detailed succession planning across RELX. Over 1,000 employees were considered across divisions, functions and operational areas. This year’s process had a significant focus on inclusion and diversity, ensuring that the widest range of employees were highlighted in discussions. In response to employee feedback regarding initiatives that create an inclusive and diverse workplace, the Board supported the launch of the RELX-wide Equality Allyship programme for Gender, Disability, Race & Ethnicity, PRIDE and Generations. In addition, tools to debias job adverts and enhance competence-based interviewing and inclusive selection were further developed. Apprenticeships, internships, and return to work programmes were also used to support our inclusion initiatives. A triennial global Employee Opinion Survey was conducted in September 2021. Each of RELX’s business areas also conducted regular pulse surveys during the year. Business area leaders presented the results of these surveys. The Board reviewed an update on workforce policies and practices, and received summary information on employee demographics by location, gender, tenure, age, and ethnicity where data is available (representing 60% of our employees). Employee attrition, inclusion and diversity activities in 2021 and goals for 2022, recruitment activities in 2021 and goals for 2022, talent development activities, and remuneration were also considered by the Board. As a regular agenda item, the Board reviews group-wide communications to employees, and considered an update from the Chief Compliance Officer on reports submitted by employees, in confidence, on potential breaches of RELX-approved policies or procedures. |
86 | RELX | |
|
Stakeholder: Customers | ||
Why effective engagement is important: |
Our goal is to help customers make better decisions, get better results and be more productive. We do this by leveraging a deep understanding of their needs and views to create innovative solutions, which combine content and data with analytics and technology in global platforms. Collaborating closely with our customers allows us to understand where and how we can improve the quality of our services and products, and ensures that we make accurate and targeted investment decisions (such as developing new or emerging technologies or complementing our existing capabilities through acquisition activity). Customer acceptance of products is set out as a principal risk on page 67. Regular engagement with our customers has also remained extremely important at a time when many have been affected, to varying degrees, by Covid-19. | |
Principal forms of engagement with our customers in 2021, the outcomes of this engagement, how this is fed back to the Board, and how it impacted Board decision-making in 2021: |
Our engagement with customers during the year took place mainly at an operational level within our business areas through face-to-face Covid-19, and analysis by sector and geography, and their current and anticipated future demand for our products and services. The Board also received feedback concerning the resilience of the markets that we operate in, and the pace of their recovery and growth. In addition, the Board reviewed customer survey data, Net Promoter Scores, and customer usage volumes across our business areas. There were few Board decisions made during the year which were not directly or indirectly linked to the future needs of our customers, or which resulted from their past and present demand for our products. Engagement with our customers confirmed that there is significant disparity in the extent to which they have been affected by Covid-19. The engagement feedback provided has assisted the Board in maintaining its understanding of customer and market trends, issues and likely future needs, and how these can be addressed.The feedback was considered as part of Board strategy-related discussions during the year, and it will be reviewed for all business areas as part of the Board’s approval of the three-year strategy plan for 2022-2024. Feedback from our customers also helped the Board and management to assess at what pace and in which areas RELX should build out new products and services, and where it should look to expand into higher growth adjacencies and geographies over varying time horizons. Customer demand impacts our financial performance and was also considered by the Board in setting appropriate financial targets for 2021, assessing the amount of investment required for RELX to be able to meet its customers’ current and future needs, and for RELX to grow its customer base and market share across its business areas. It also helped management and the Board recognise and identify areas requiring cost rationalisation. Customer-related views, behaviours and profiles also assisted management and the Board in considering selected acquisitions of targeted data sets, analytics and assets in high-growth markets that support high-growth strategies, and which are natural additions to our existing businesses. As a result of these reviews, areas were identified in which potential acquisitions could supplement our customer offerings in certain sectors. For example, in August 2021, the Board considered and approved the acquisition by the Risk business of TruNarrative, a UK-based provider of a unified risk platform used in onboarding, KYC, AML transaction monitoring and fraud, which complements Risk’s existing offerings in Financial Crime Compliance and Fraud & Identity. |
RELX |
87 | |
|
Stakeholder: Suppliers | ||
Why effective engagement is important: |
RELX has a diverse supply chain with suppliers located in over 150 countries across multiple categories. Our content suppliers are critically important to our business, as they provide scientific and medical content, legal information and risk-related data and analytics content which is used as part of our customer offering, mainly by our STM, Legal and Risk businesses. They include authors, editors, content reviewers and product designers. An inability to source sufficient volume or quality of products/services from these suppliers, including as a result of insufficient dialogue or collaboration with them, may impact customer acceptance of products (which is set out as a RELX principal strategic risk on page 67). Our non-content suppliers represent more typical vendor-type relationships, such as IT software and cloud service providers, or third parties to whom we have outsourced support function activities. Poor performance, failure or breach of their contractual obligations by them could impact our ability to provide services to our customers, or result in other issues adversely impacting our business performance, reputation and financial condition.Collaboration and two-way dialogue with our suppliers helps ensure that we are able to maintain and improve the quality of products and services we provide to our customers. Effective engagement also underpins our ability to maintain an ethical supply chain, giving us visibility of our suppliers’ commitment to good practices, transparency and openness. Supply chain dependencies and ethics are set out as RELX principal risks on pages 68 and 69. Through engagement it is important that we can make clear the needs and expectations of our customers, listen to and understand the suggestions and concerns of our suppliers, collaborate with them, and help them to achieve standards and behaviours that will build confidence and trust with RELX and its customers. | |
Principal forms of engagement with our suppliers in 2021, the outcomes of this engagement, how this is fed back to the Board, and how it impacted Board decision-making in 2021: |
Engagement with our content suppliers takes place principally through the relevant business area to which the content is provided. Content supplier feedback is collected through direct relationships and regular business reviews, and Net Promoter Scores from STM journal authors, editors and reviewers. This feedback was presented to the Board as part of updates by our business area leaders, who have responsibility for these relationships and the contribution that they make towards implementing our strategy, and also our Chief Strategy Officer as part of a specific Board agenda item related to content suppliers. The Board incorporated feedback from our content suppliers when discussing and approving our three-year strategy plan, as well as considering and assessing investment decisions, and mitigations in place for our principal risks of customer acceptance of products and supply chain dependencies. Additionally, the Board received an annual update by the Global Head of Purchasing & Property on non-content supplier relationships including supplier spend trends by category, progress on our Socially Responsible Supplier (SRS) programme, and the results from supplier satisfaction surveys which cover a wide range of areas such as payment timelines, communication, technology infrastructure, feedback, collaboration, vision and innovation. In 2021 RELX significantly expanded its supplier survey programme, with surveys distributed to 120 suppliers, and management has taken action to address where lower scores have been received. RELX scored particularly well across areas such as problem identification and resolution, contracting, communication and collaboration. Scores in project management and order effectiveness, the areas our 2020 survey identified as requiring improvement, improved and scored notably higher than the benchmark.Our Supplier Code of Conduct is made available to each supplier and translated into 16 languages for use on a global basis. As a result of continuing engagement, 99% of our core suppliers are now signatories to our Supplier Code of Conduct. A specialist supply chain auditor helps provide independent assurance to both RELX and its suppliers that the standards and values which we have both agreed at the beginning of our contractual relationship, are being met. Where this is not the case, RELX assists our suppliers in developing remediation plans for implementation to help develop compliance in required areas. Our suppliers are then given the opportunity post-audit, through the completion of a survey, to provide feedback on whether they believed the audit was effective, fair and how, in their view, it could be improved. The high-level results of related audits were reviewed by the Board. Engagement with our suppliers also informed the Board’s discussions relating to our ethics principal risk, and assessment of the processes in place to mitigate against this. Feedback from suppliers generally indicated that our supply chain audits assisted them in reviewing their existing practices, and ensuring that these were fit for purpose. The Board’s review of the SRS programme helped it to understand and assess the adequacy of the controls in place to ensure an ethical supply chain and also informed its decision to approve the Group’s 2021 Modern Slavery Act Statement. |
88 | RELX | |
|
Stakeholder: Community | ||
Why effective engagement is important: |
Our focus on community includes those where we, our customers and suppliers work around the world, as well as the communities we serve, including in science, academia, risk, law and many other fields. We prioritise positive dialogue with our community stakeholders; they collectively provide our ‘licence to operate’. Our efforts are informed by our commitment to the United Nations Global Compact and its ten principles focused on human rights, labour, the environment and anti-corruption – all issues with wide societal impact. | |
Principal forms of engagement with our community in 2021, the outcomes of this engagement, how this is fed back to the Board, and how it impacted Board decision-making in 2021: |
We contribute to our communities through our unique contributions to society (see pages 41 to 45), and through a comprehensive global community programme, RELX Cares. The RELX Cares mission is education for disadvantaged young people that aligns with our unique contributions including promoting science and health, protection of society, the Rule of Law and access to justice and fostering communities. RELX Cares promotes employee volunteering and each year staff have two days paid leave in order to undertake community work. A network of over 220 RELX Cares Champions across the Group ensures the vibrancy of this community engagement. In 2021, 10,362 days have been volunteered in company time, in comparison to 6,821 last year, an increase of 52%. RELX Cares also features philanthropic giving for beneficiaries that align with the RELX Cares mission. In 2021, we donated over $335k through our central grants programme, which includes donations in response to disasters and emergences, including to help with the response to Covid-19 in India, hurricane relief efforts in Haiti and the United States, and to advance UNICEF’s work on the ground in Afghanistan.In accordance with the Business for Societal Impact model, we monitor the short- and long-term benefit of our community engagement. To increase transparency and awareness, we ask beneficiaries to report on their progress, sharing feedback on a RELX Cares section of our corporate internet. In addition, we survey RELX Cares volunteers to understand the impact of the programme on their personal development and how it affects the way they feel about working at RELX. We have also made scientific articles, data and news, useful in the fight against coronavirus, freely available on the RELX SDG Resource Centre. These included Elsevier’s Novel Coronavirus Centre with the latest medical and scientific information on Covid-19; LexisNexis Risk Solutions’ data set and interactive visualisations that provide insights on vulnerable populations and care capacity risks; and LexisNexis Legal & Professional’s coronavirus global media and news tracker with interactive charts.In addition, LexisNexis Risk Solutions is advancing pilots using its tools to help qualified citizens gain access to credit in Latin America. Elsevier is a founding partner and leading contributor to Research4Life, providing a quarter of the material available. In 2021, there were over 1m Research4Life downloads from ScienceDirect, benefitting researchers in low- and middle-income countries. In the year, the Elsevier Foundation worked to improve access to healthcare and science in vulnerable communities, while the LexisNexis Rule of Law Foundation supported projects that advance access to justice including with the launch of a simplified personal independence payment form, a digitised version of the UK government’s paper-based form for disability claims. The free tool, available to independent legal clinics and disability claimants, enhances the chance of receiving qualifying financial support.Responsibility for updating the Board on community engagement sits with the Chief Executive Officer. He is supported in this activity by the Group Head of Corporate Responsibility who in 2021 provided comprehensive feedback on RELX Cares and other activities to the Board, including key metrics, objectives and outcomes. Board feedback and support for community engagement shapes the direction of the programme and future plans which include evaluating the impact of the pandemic on volunteering and new ways to promote distance volunteering. |
RELX |
89 | |
|
Director |
Committee appointments |
Board (1) |
Audit |
Remuneration |
Nominations |
Corporate Governance |
||||||||||||||||||
Paul Walker (Chair) (2) |
6/6 |
3/3 |
2/2 |
5/5 |
||||||||||||||||||||
Anthony Habgood (Chair) (3) |
1/1 |
– | 1/1 |
1/1 |
0/0 |
|||||||||||||||||||
Erik Engstrom |
– |
7/7 |
– | – |
– |
– |
||||||||||||||||||
Nick Luff |
– |
7/7 |
– | – |
– |
– |
||||||||||||||||||
Wolfhart Hauser |
7/7 |
– | 4/4 |
3/3 |
5/5 |
|||||||||||||||||||
Marike van Lier Lels (4) |
7/7 |
3/3 | – |
3/3 |
5/5 |
|||||||||||||||||||
Robert MacLeod |
7/7 |
– | 4/4 |
3/3 |
5/5 |
|||||||||||||||||||
Linda Sanford |
7/7 |
– | 4/4 |
– |
5/5 |
|||||||||||||||||||
Andrew Sukawaty |
7/7 |
4/4 | – |
– |
5/5 |
|||||||||||||||||||
Suzanne Wood |
7/7 |
4/4 | – |
– |
5/5 |
|||||||||||||||||||
Charlotte Hogg (5) |
7/7 |
1/1 | – |
– |
5/5 |
|||||||||||||||||||
June Felix |
7/7 |
4/4 | – |
– |
5/5 |
Audit | ||
Remuneration | ||
Nominations | ||
Corporate Governance | ||
Committee Chair |
(1) | In addition to the seven scheduled meetings, serving Directors also attended two full-day strategy and business review meetings. |
(2) | Mr Walker was appointed as the Chair of the Board on 1 March 2021. Mr Walker was also appointed as the Chair of the Nominations and Corporate Governance Committees, and as a member of the Remuneration Committee at that time. |
(3) | Sir Anthony Habgood stepped down as the Chair of the Board on 1 March 2021. Sir Anthony Habgood also stepped down as the Chair of the Nominations and Corporate Governance Committees, and as a member of the Remuneration Committee at that time. |
(4) | Ms van Lier Lels stepped down as a member of the Audit Committee on 28 July 2021. |
(5) | Ms Hogg was appointed as a member of the Audit Committee on 28 July 2021. |
90 | RELX | |
|
Key roles of the Directors | ||
Chair | ||
◾ |
Provides leadership of the Board, and is responsible for its overall effectiveness in directing the Company | |
◾ |
Ensures that all Directors are sufficiently apprised of matters to make informed judgements, through the provision of accurate, timely and clear information | |
◾ |
Promotes high standards of corporate governance, demonstrates objective judgement and promotes a Board culture of openness and debate | |
◾ |
Sets the agenda and chairs meetings of the Board | |
◾ |
Chairs the Nominations and Corporate Governance Committees | |
◾ |
Facilitates constructive Board relations and the effective contribution of all of the Directors | |
◾ |
Ensures effective dialogue with shareholders | |
◾ |
Ensures the performance of the Board, its Committees and individual Directors is assessed annually | |
◾ |
Ensures effective induction and development of Directors | |
Chief Executive Officer | ||
◾ |
Day-to-day | |
◾ |
Develops the Group’s strategy for consideration and approval by the Board | |
◾ |
Ensures that the decisions of the Board are implemented | |
◾ |
Informs and advises the Chair and Nominations Committee on executive succession planning | |
◾ |
Leads communication with shareholders | |
◾ |
Promotes and conducts the affairs of the Company with the highest standards of integrity, probity and corporate governance |
Chief Financial Officer | ||
◾ |
Day-to-day | |
◾ |
Responsible for the Group’s financial planning, reporting and analysis | |
◾ |
Ensures that a robust system of internal control and risk management is in place | |
◾ |
Maintains high-quality reporting of financial and environmental performance internally and externally | |
◾ |
Supports the Chief Executive Officer in developing and implementing strategy | |
Senior Independent Director | ||
◾ |
Leads the Board’s annual assessment of the performance of the Chair | |
◾ |
Available to meet with shareholders on matters where usual channels are deemed inappropriate | |
◾ |
Deputises for the Chair, as necessary | |
◾ |
Serves as a sounding board for the Chair and acts as an intermediary between the other Directors, when necessary | |
Non-Executive Directors | ||
◾ |
Bring an external perspective, and constructively challenge and provide advice to the Executive Directors | |
◾ |
Effectively contribute to the development of strategy | |
◾ |
Scrutinise the performance of management in meeting agreed goals and monitor the delivery of the Group’s strategy | |
◾ |
Serve as members of Board Committees and chair the Audit and Remuneration Committees | |
RELX |
91 | |
|
Balance of Executive/Non-Executive Directors |
Gender diversity | |
|
| |
Length of tenure of Non-Executive Directors and Chair |
Nationality of Directors | |
92 | RELX | |
|
◾ |
Corporate governance for listed companies |
◾ |
Corporate strategy and organisation |
◾ |
Operational experience in the Group’s product markets |
◾ |
Executive board member and leadership experience in large international listed companies |
◾ |
Corporate responsibility, human resources management and executive remuneration |
◾ |
Financial expertise |
RELX |
93 | |
|
94 | RELX | |
|
RELX |
95 | |
|
◾ |
designed such disclosure controls and procedures to ensure that material information relating to the Group is made known to them |
◾ |
evaluated the effectiveness of the Group’s disclosure controls and procedures |
◾ |
based on their evaluation, disclosed to the Audit Committee and the external auditors, all significant deficiencies in the design or operation of disclosure controls and procedures and any frauds, whether or not material, that involve management or other employees who have a significant role in the Group’s internal controls |
◾ |
presented in the Annual Report 2021 on Form 20-F their conclusions about the effectiveness of the disclosure controls and procedures |
◾ |
designed internal controls over financial reporting, or caused such internal control over financial reporting to be designed under their supervision, to provide reasonable assurance regarding the reliability of financial reporting |
96 | RELX | |
|
Viability statement Viability statement The UK Corporate Governance Code requires Directors to assess the viability of the Group over an appropriate period of time. The Directors have made the assessment that given the nature of Group’s business with a high proportion of recurring revenue, an average contract length of three years in its largest segment and a balanced debt maturity profile, a viability period of three years, aligned with the Group’s annual strategy plan, is suitable to assess the risks outlined on pages 66-69. Assessing the Group’s prospects The Group develops information-based analytics and decision tools for professional and business customers in the Risk, Scientific, Technical & Medical (STM), Legal and Exhibitions sectors. The Market segments section describes each area’s business model, strategic priorities, market opportunities and competition, showing how the Group is positioned to create value for shareholders over the longer term. The Group’s prospects are assessed annually through the strategic planning process which includes a review of assumptions made and an assessment of each business area’s longer-term plan. The resulting three-year strategy plan forms the basis for Group and divisional targets and in-year budgets. Objectives are set with consideration given to the economic and regulatory environment, and to customer trends, as well as incorporating risks and opportunities. The most recent three-year strategy business plan was agreed by the Directors in September 2021 and updated in February 2022. Separate from the annual strategy plan, the Directors periodically receive updates from business area management on their operations, prospects and risks. Whilst these reviews and discussions naturally focus more closely on the more immediate risks facing the business within the three-year strategy planning period, they also cover the risks described in the principal risks section on pages 66-69. Covid-19 Throughout the Covid-19 pandemic, the Group’s three largest business areas, Risk, STM and Legal, have been able to maintain operational capability and have seen good growth in electronic revenues. For the most part, the challenges faced by certain segments of these businesses have been more than offset by opportunities in other areas and growth in the base business has accelerated compared to pre-pandemic rates. However, the Group’s Exhibitions business, which accounted for 7% of Group revenue in 2021 (5% in 2020 and 16% in 2019), has been impacted significantly by the pandemic. Whilst we have resumed running physical events in all major geographies, there remains an ongoing risk of cancellation or rescheduling of events. While our forecast assumes only a gradual recovery in Exhibitions, with revenues not reaching 2019 levels until 2024, for viability assessment purposes we have assumed additional Covid-19 related restrictions in 2022 slowing the recovery even further. |
Assessing the Group’s viability The three-year strategy plan for our businesses includes management’s assessment of the anticipated operational risks affecting the business. Management then considered the viability of the business assuming additional Covid-19 related restrictions impacting Exhibitions and the simultaneous occurrence of Cyber security and Paid subscription risks resulting in a 22% decline in 2022 adjusted operating profit and similar declines in 2023 and 2024, and the closure of the debt capital markets preventing the refinancing of scheduled liabilities. It is assumed that the Group’s undrawn $3bn revolving credit facility will be refinanced prior to the first tranche maturing in 2023. The resulting analysis, which assumed no share buybacks, modest acquisition activity and a growing dividend, determined that the Group would have sufficient liquidity to refinance all maturing term debt. While the reduction in adjusted operating profit due to the simultaneous occurrence of two principal risks and further Covid-19 restrictions on Exhibitions would increase leverage, we would nevertheless retain significant headroom under the credit facility leverage covenant of 3.75x (with the ability to flex this limit to 4.25x in certain circumstances providing additional headroom).While the impact of the Covid-19 pandemic on the events business has been significant, the remaining businesses, which contribute more than 90% of the Group’s revenue, are currently performing at or above historic levels and their outlook remains positive. We remain focused on successfully pursuing our strategic priority of organically developing increasingly sophisticated information-based analytics and decisions tools that deliver enhanced value to our customers, supplemented by selective acquisitions that support our organic growth. We believe the combination of compelling structural opportunities combined with an appropriate capital structure will continue to drive long-term value.Based on this assessment and the scenario modelling that shows sufficient liquidity and covenant compliance even with continued impact of Covid-19 on the Exhibitions business for several years, the simultaneous occurrence of principal risks and the closure of the debt capital markets, the Directors confirm that they have a reasonable expectation that the Group will be able to continue its operations and meet its liabilities as they fall due over the next three years and are not aware of any longer-term operational or strategic risks that would result in a different outcome from the three-year review. |
RELX |
97 | |
|
Membership The Committee comprises only Non-Executive Directors. The members of the Committee who served during the year were:◾ Paul Walker (Chair of the Committee effective 1 March 2021)◾ Sir Anthony Habgood (until 1 March 2021)◾ Wolfhart Hauser◾ Robert MacLeod◾ Marike van Lier Lels |
Responsibilities The principal purpose of the Committee is to provide assistance to the Board by identifying individuals qualified to become Directors and recommending to the Board the appointment of such individuals. The role and responsibilities of the Committee are set out in written Terms of Reference and are available on the company’s website at
www.relx.com ◾ to keep under review the size and composition of the Board ensuring that it maintains an appropriate balance of skills, experience, knowledge and diversity◾ reviewing the external commitments of each Director to ensure that he/she has sufficient time to devote to their role at RELX◾ to ensure that plans are in place for orderly Board and senior management succession and to oversee a diverse pipeline for such succession◾ to agree the specification for the recruitment of new Directors◾ to procure the recruitment of new Directors◾ to recommend to the Board the appointment of candidates as RELX PLC Directors◾ to recommend Directors to serve on the Committees of the Board and to recommend members to serve as the Chair of those Committees◾ to make recommendations to the Board in relation to the re-appointment of any Non-Executive Director at the conclusion of his/her specified term of office and the election or re-election of Directors following a review of the performance of individual Directors from the Board evaluation process◾ reviewing the Board’s and Group’s Diversity Policy, including their effectiveness◾ to review and make recommendations to the Board on the authorisation of Directors’ conflicts of interest, including any terms to be imposed in relation to a Director’s conflict of interest |
◾ |
the re-appointment of Marike van Lier Lels at the conclusion of her specified term of office |
◾ |
the continued independence of Linda Sanford as a Non-Executive Director as a result of her having served on the Board for nine years and the continued independence of Dr Wolfhart Hauser as a Non-Executive Director in advance of his nine years of service on the Board in April 2022 |
◾ |
the impact on Board composition and balance, and Board Committee membership, resulting from the impending retirement of Linda Sanford as a Non-Executive Director |
◾ |
a review of the composition of the Audit Committee resulting in the appointment of Charlotte Hogg as a member of the Audit Committee, with Marike van Lier Lels stepping down as a member of the Audit Committee effective 28 July 2021, in order to allow her sufficient time to focus on her responsibilities as a Workforce Engagement Director |
◾ |
succession planning for Board and senior management roles |
◾ |
ongoing review of Directors’ actual and potential conflicts of interest and the recommendation to the Board of the suitability of Directors’ external non-executive director appointments |
◾ |
to undertake an internal Board evaluation for the year ended 31 December 2021 and to act upon the findings from the Board evaluation |
◾ |
a review of the Committee’s Terms of Reference |
◾ |
reviewing this report and recommending to the Board its inclusion in the 2021 Annual Report and Financial Statements |
98 | RELX | |
|
RELX |
99 | |
|
100 | RELX | |
|
RELX |
101 | |
|
◾ |
key statistics on the composition of the RELX workforce such as location, gender, ethnicity, age and length of service; |
◾ |
pay philosophy and the evolution of our pay practices, including pay equity processes; |
◾ |
annual salary increase guidelines globally; |
◾ |
details of the pension plan arrangements in our top five countries by number of employees; |
◾ |
participation data on annual incentives (sales and non-sales) and share plans; |
◾ |
employee surveys conducted during the year. In addition, our designated Non-Executive Director responsible for workforce engagement, Marike van Lier Lels, continued to meet with employee representatives from Europe, US and Asia Pacific during 2021 and reported back to the Board. Further information on the workforce engagement process is provided in the Governance section on page 85. |
102 | RELX | |
|
(a) | (b) | (c) | (d) | (e) | (f) | |||||||||||||||||||||||||||||||||||
Annual incentive |
||||||||||||||||||||||||||||||||||||||||
£’000 | Salary | Benefits (1) |
Cash | Deferred Shares (2) |
Share based awards (3) |
Pension (4) |
Total | Total fixed remuneration (5) |
Total variable remuneration (5) | |||||||||||||||||||||||||||||||
Erik Engstrom |
2021 | 1,312 | 82 | 1,134 | 1,134 | 5,335 | 635 | 9,634 | 2,030 | 7,604 | ||||||||||||||||||||||||||||||
2020 | 1,280 | 84 | 1,101 | 550 | 429 | 536 | 3,980 | 1,900 | 2,080 | |||||||||||||||||||||||||||||||
2019 | 1,249 | 86 | 1,276 | 638 | 5,558 | 539 | 9,346 | 1,874 | 7,472 | |||||||||||||||||||||||||||||||
Nick Luff |
2021 | 773 | 15 | 668 | 668 | 2,618 | 139 | 4,880 | 926 | 3,954 | ||||||||||||||||||||||||||||||
2020 | 754 | 15 | 648 | 324 | 210 | 151 | 2,102 | 919 | 1,183 | |||||||||||||||||||||||||||||||
2019 | 735 | 15 | 749 | 375 | 2,781 | 186 | 4,841 | 936 | 3,905 |
(1) | Benefits are typically comprised of a car allowance, private medical/dental insurance and the cost of tax return preparation. |
(2) | One-third of the 2020 AIP and 50% of the 2021 AIP is paid in shares deferred for three years. Dividend equivalents accrue on these shares. |
(3) | The 2021 figures reflect the vesting of the 2019–2021 cycle of the LTIP. As the LTIP vests after the approval date of this Report, the average share price for the last quarter of 2021 has been used to arrive at an estimated figure in respect of these awards, in line with the methodology prescribed by the Regulations. |
The estimated figures for 2020 disclosed in last year’s Report have been restated to reflect the actual amount of the 2018-2020 cycle of the LTIP vested and the actual share prices and exchange rates, which increased the 2020 disclosed figure by £30k for the CEO and by £14k for the CFO. The vesting percentage was determined on 12 February 2021 and was in line with the one disclosed on page 98 of the 2020 Remuneration Report. |
For Erik Engstrom, the amount that directly reflects share price appreciation is £80k for 2020 and £1.2m for 2021. For Nick Luff, these numbers are £39k for 2020 and £0.6m for 2021. |
The awards are due to vest in February 2022 and the 2021 figures will be restated in next year’s report to reflect actual values at vesting. |
(4) | The pension figure for Erik Engstrom reflects his current membership of the UK legacy defined benefit pension scheme and has been calculated in accordance with the prescribed methodology set out in the Regulations. This figure does not represent a contribution by the Company. In 2021, the Company contributed £50,064 to the funded portion of his defined benefit pension plan. |
In 2021, the CEO contributed a total of £384,459 (30% of his pensionable earnings) by way of Total Plan Fees, up from £331,100 (c.25% of pensionable earnings) in 2020. The pension figures for 2021 and 2020 in the table are reduced by these Total Plan Fees. The increase in the theoretical pension figure in the table is solely due to the lower inflation rate used in the calculation as prescribed by the Regulations. The actual benefit was reduced in the year as the pension accrual remains the same but the CEO’s Total Plan Fees increased. For details of Mr Engstrom’s accrued pension as at 31 December 2021, and further information on his pension reduction in 2022 and the coming years, see page 107. |
Nick Luff receives a cash allowance in lieu of pension which reduced from 20% of salary to 18% of salary effective 1 January 2021. For details on the reduction of the CFO’s allowance in 2022 and the coming years, see page 107. |
(5) | Total fixed remuneration includes base salary, benefits and pension. Total variable remuneration includes annual incentive and share based awards. |
RELX |
103 | |
|
2021 Annual Incentive |
Relative weighting % at target |
Financial targets (1) |
|||||||||||||||||||||||||||||
Performance measure |
Threshold |
Target |
Maximum |
Achievement |
Achievement % vs target |
Payout % vs target |
Payout % of max (2) |
|||||||||||||||||||||||
Revenue |
||||||||||||||||||||||||||||||
RELX excl RX |
27.0% |
6,208 |
6,604 |
6,935 |
6,710 |
101.6% |
116.0% |
77.3% |
||||||||||||||||||||||
RX |
3.0% |
372 |
559 |
745 |
534 |
95.6% |
88.1% |
58.7% |
||||||||||||||||||||||
Revenue – Total |
30.0% | 113.2% | 75.5% | |||||||||||||||||||||||||||
Adjusted net profit after tax |
||||||||||||||||||||||||||||||
RELX excl RX |
27.0% |
1,505 |
1,601 |
1,681 |
1,681 |
105.0% |
150.0% |
100.0% |
||||||||||||||||||||||
RX |
3.0% |
0 |
8 |
46 |
8 |
101.9% |
100.5% |
67.0% |
||||||||||||||||||||||
Adj net profit after tax – Total |
30.0% | 145.1% | 96.7% | |||||||||||||||||||||||||||
Cash flow |
||||||||||||||||||||||||||||||
RELX excl RX |
27.0% |
1,910 |
2,032 |
2,134 |
2,227 |
109.6% |
150.0% |
100.0% |
||||||||||||||||||||||
RX |
3.0% |
0 |
39 |
109 |
3 |
7.3% |
16.6% |
11.1% |
||||||||||||||||||||||
Cash flow – Total |
30.0% | 136.7% | 91.1% | |||||||||||||||||||||||||||
Financial measures |
90.0% | 131.6% | 87.8% | |||||||||||||||||||||||||||
Non-financial measures |
10% | |
A detailed description of the non-financial measures and achievement against those is set out on the next page. |
|
96.3% | 64.2% | ||||||||||||||||||||||||
Total |
100% | 128.1% | 86.4% |
(1) | On an equivalent basis (at actual exchange rates and after the net impact of acquisitions and disposals completed). Targets are set on a constant currency basis and for revenue and adjusted net profit after tax reflect targeted growth with cash flow based on the targeted cash conversion. Target amounts presented in sterling reflect actual movements in exchange rates relative to their equivalent constant currency amounts. |
(2) | The maximum for each measure is 150% of on target. The overall maximum is 200% of salary. |
104 | RELX | |
|
Non-financial measures |
Relative weighting |
Target |
Achievement |
Payout % of target |
Payout % of max |
|||||||||
Energy use |
25% | ◾ Reduce Scope 1 (direct) and Scope 2 (location-based) carbon emissions by 33% against a 2015 baseline.◾ Reduce energy and fuel consumption by 23% against a 2015 baseline.◾ Purchase renewable electricity equivalent to 100% of RELX’s global electricity consumption |
◾ Carbon emissions reduced by 53%◾ Energy and fuel consumption reduced by 43%.◾ Purchased renewable electricity equivalent to 100% of RELX’s global electricity consumption |
90% | 60.0% | |||||||||
Waste | 25% | ◾ Decrease total waste sent to landfill from reporting locations by 33% against a 2015 baseline. |
◾ Total waste sent to landfill reduced by 87% |
90% | 60.0% | |||||||||
Paper | 25% | ◾ 97% of RELX production papers, graded in PREPS, to be rated as ‘known and responsible sources’ or certified FSC or PEFC. |
◾ 98% of RELX production papers rated as ‘known and responsible sources’ or certified FSC or PEFC. |
100% | 66.7% | |||||||||
Socially responsible suppliers | 25% | ◾ Increase the number of suppliers as Code signatories to 3,600.◾ Increase number of independent external audits of suppliers to 105. |
◾ Suppliers Code signatories increased to 3,670◾ 111 audits of suppliers completed |
105% | 70% | |||||||||
Total | 100% | 96.25% | 64.2% |
RELX |
105 | |
|
2019 2021 LTIP | ||||||||||||||||||
Set out below is a summary of performance against each measure of the LTIP cycle 1 January 2019–31 December 2021. As highlighted earlier, the targets remained unchanged from when these were set at the beginning of 2019. The Committee determined to measure the performance with respect to EPS and ROIC separately for RELX excluding RX and RX, on a 90%/10% basis and to cap the overall payout at 90% of the maximum. As noted in the Chair letter, the three main business areas continued to perform strongly and significant value was generated for shareholders through share price appreciation and dividends over the performance period. RELX outperformed the UK and European peer groups over the period. The payout is 70.5% of maximum. | ||||||||||||||||||
Performance measure |
Weighting |
Performance range and vesting levels set at grant (1) |
Achievement against the performance range |
Resulting vesting percentage | ||||||||||||||
TSR over the three-year | 20% | below median | 0% | Upper quartile in UK group, just below | 64.7% | |||||||||||||
performance period | median | 25% | upper quartile in European group and | |||||||||||||||
upper quartile | 100% | below median in US group | ||||||||||||||||
Average growth in adjusted EPS over | 40% | below 5% p.a. | 0% | RELX excl RX:8.0%; vesting:75% | 67.5% | |||||||||||||
the three-year performance period (2) |
5% p.a. | 25% | RX: below threshold; vesting 0% | |||||||||||||||
6% p.a. | 50% | |||||||||||||||||
7% p.a. | 65% | |||||||||||||||||
8% p.a. | 75% | |||||||||||||||||
9% p.a. | 85% | |||||||||||||||||
10% p.a. | 92.5% | |||||||||||||||||
11% p.a. and above | 100% | |||||||||||||||||
ROIC in the third year of the | 40% | below 12.0% | 0% | RELX excl RX:13.6%; vesting:85% | 76.5% | |||||||||||||
performance period (3) |
12.0% | 25% | RX: below threshold; vesting 0% | |||||||||||||||
12.4% | 50% | |||||||||||||||||
12.8% | 65% | |||||||||||||||||
13.2% | 75% | |||||||||||||||||
13.6% | 85% | |||||||||||||||||
14.0% | 92.5% | |||||||||||||||||
14.4% and above | 100% | |||||||||||||||||
Total vesting percentage: | 70.5% |
(1) | Calculated on a straight-line basis for performance between the points. |
(2) | EPS for ‘RELX excluding RX’ is calculated as net income (after tax) excluding net income attributable to ‘RX’, divided by the weighted average number of shares outstanding in the applicable year, with the share count adjusted to reflect the impact of maintaining consistent leverage before changes in the results of RX over the three-year performance period. |
(3) | ROIC for ‘RELX excluding RX’ reflects the performance of the Group for 2021 with adjustments made to remove the effect on ROIC of changes in exchange rates, pension deficits, accounting standards and the results and invested capital of RX over the three-year performance period. ROIC excludes Ventures portfolio-related invested capital and realised gains and losses. Including those, ROIC would be 14.4%. |
106 | RELX | |
|
Single Total Figure of Remuneration – Non-Executive Directors (audited) |
|
|||||||||||||||||||||||
Total fee | Benefits (1) |
Total | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Anthony Habgood |
£108,333 | £650,000 | £287 | £1,718 | £108,621 | £651,718 | ||||||||||||||||||
Paul Walker (2) |
£541,667 | N/A | £718 | N/A | £542,385 | N/A | ||||||||||||||||||
June Felix (3) |
£107,500 | £21,724 | £107,500 | £21,724 | ||||||||||||||||||||
Wolfhart Hauser |
£160,000 | £160,000 | £160,000 | £160,000 | ||||||||||||||||||||
Charlotte Hogg |
£97,494 | £90,000 | £97,494 | £90,000 | ||||||||||||||||||||
Marike van Lier Lels |
£127,506 | £129,571 | £840 | £840 | £128,346 | £130,411 | ||||||||||||||||||
Robert MacLeod |
£117,500 | £117,500 | £117,500 | £117,500 | ||||||||||||||||||||
Linda Sanford |
£107,500 | £112,000 | £840 | £840 | £108,340 | £112,840 | ||||||||||||||||||
Andrew Sukawaty |
£107,500 | £112,000 | £107,500 | £112,000 | ||||||||||||||||||||
Suzanne Wood |
£120,000 | £120,622 | £120,000 | £120,622 |
(1) | Benefits comprise the notional benefit of tax filing support provided to Non-Executive Directors for filings outside their home country resulting from their directorships with RELX. The incremental assessable benefit charge per tax return for 2021 was £840 (unchanged from 2020) for a UK tax return. Anthony Habgood and Paul Walker’s benefits relate to private medical insurance. Further, the Company meets all reasonable travel, subsistence, accommodation and other expenses, including any tax where such expenses are deemed taxable, incurred by the Non-Executive Directors and the Chair in the course of performing their duties. |
(2) | Appointed on 1 March 2021. |
(3) | Appointed on 15 October 2020. |
Annual fee 2022 | Annual fee 2021 | |||||
Chair |
£650,000 | £650,000 | ||||
Non-Executive Directors |
£90,000 | £90,000 | ||||
Senior Independent Director |
£30,000 | £30,000 | ||||
Chair of: |
||||||
– Audit Committee |
£30,000 | £30,000 | ||||
– Remuneration Committee |
£30,000 | £30,000 | ||||
Workforce engagement fee |
£17,500 | £17,500 | ||||
Committee membership fee: |
||||||
– Audit Committee |
£17,500 | £17,500 | ||||
– Remuneration Committee |
£17,500 | £17,500 | ||||
– Nominations Committee |
£10,000 | £10,000 |
RELX |
107 | |
|
Age at December 2021 | Normal retirement age | CEO’s Total Plan Fees | Accrued annual pension at 31 December 2021 |
2021 single figure pensions value | ||||
58 |
60 | £384,459 | £605,186 | £635,326 (1) |
(1) | The 2021 single figure pensions value is the difference between the accrued annual pension as at 31 December 2020 (adjusted for inflation) and the accrued annual pension as at 31 December 2021, multiplied by 20 in accordance with the UK Regulations and is net of the CEO’s Total Plan Fees. The increase in the theoretical pension figure in the table is solely due to the lower inflation rate used in the calculation as prescribed by the Regulations. The actual benefit was reduced in the year as the pension accrual remains the same but the CEO’s Total Plan Fees increased. In 2021, the Company contributed £50,064 to the funded portion of his defined benefit pension plan. The remainder of his accrued pension is an unfunded liability of the Company. |
LTIP – PERFORMANCE SHARE AWARDS |
||||||||||||
Basis on which award is made |
Face value of award at grant (1) |
Value of awards if vest in line with expectations (2) |
Percentage of maximum that would be received if threshold performance achieved |
End of performance period | ||||||||
Erik Engstrom | 450% of salary | £5,760,379 | £2,880,190 | If each measure pays out at | 31 December | |||||||
Nick Luff |
375% of salary |
£2,826,747 |
£1,413,374 |
threshold, the overall payout is 25% |
2023 | |||||||
AIP – DEFERRED SHARES |
||||||||||||
Erik Engstrom | 1/3 of 2020 AIP payout | £550,436 | N/A. The release of AIP Deferred Shares in Q1 2024 is not subject to any | |||||||||
Nick Luff |
1/3 of 2020 AIP payout |
£324,134 |
further performance conditions, but is subject to malus and claw-back. |
(1) | The face value of the LTIP awards and AIP Deferred Shares granted in February 2021 was calculated using the middle market quotation of a PLC ordinary share (£18.66). This share price was used to determine the number of awards granted. |
(2) | Vesting in line with expectations for LTIP is as per the performance scenario chart disclosed on page 93 of the 2019 Remuneration Report, i.e. 50%. |
108 | RELX | |
|
Shareholding requirement (% of 31 December 2021 annual base salary) |
Shareholding as at 31 December 2021 (% of 31 December 2021 annual base salary) (1) | |||||
Erik Engstrom |
450% | 1,981% | ||||
Nick Luff |
300% | 953% |
(1) | Includes AIP deferred shares which are within their three-year deferral period, on a notional net (after tax) basis (50,951 for Erik Engstrom and 30,060 for Nick Luff). |
1 January 2021 | 31 December 2021 | |||||||
Erik Engstrom |
1,017,615 | 1,029,503 | (1) | |||||
Nick Luff |
271,316 | 276,898 | (1) | |||||
Anthony Habgood |
88,450 | N/A | ||||||
Paul Walker (2) |
N/A | 16,000 | ||||||
June Felix (3) |
0 | 4,100 | ||||||
Wolfhart Hauser |
14,633 | 14,633 | ||||||
Charlotte Hogg |
4,750 | 4,750 | ||||||
Marike van Lier Lels |
11,180 | 11,452 | ||||||
Robert MacLeod |
6,950 | 6,950 | ||||||
Linda Sanford |
9,700 | 9,700 | ||||||
Andrew Sukawaty |
20,000 | 30,000 | ||||||
Suzanne Wood |
5,100 | 5,100 |
(1) | Number excludes AIP deferred shares which are within their three-year deferral period. If these were included on a notional net (after tax) basis, the totals at 31 December 2021 would be 1,080,454 for Erik Engstrom and 306,958 for Nick Luff. |
(2) | Paul Walker was appointed effective 1 March 2021. |
(3) | June Felix was appointed effective 15 October 2020. |
RELX |
109 | |
|
OPTIONS |
Year of grant |
No. of options held on 1 Jan 2021 |
No. of options granted during 2021 |
Option price on date of grant |
No. of options exercised during 2021 |
Market price per share at exercise |
No. of options held on 31 Dec 2021 |
Unvested options vesting on |
Options exercisable until |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 145,604 | £9.245 | 145,604 | 07 Apr 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
158,166 | € 10.286 |
158,166 | 07 Apr 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 114,584 | £11.520 | 114,584 | 02 Apr 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
120,886 | € 15.003 |
120,886 | 02 Apr 25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 101,421 | £12.550 | 101,421 | 15 Mar 26 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
107,380 | € 15.285 |
107,380 | 15 Mar 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 85,356 | £14.945 | 85,356 | 27 Feb 27 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
90,116 | € 16.723 |
90,116 | 27 Feb 27 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
923,513 | 923,513 |
SHARES (1)(2)(3) |
Year of grant |
No. of unvested shares held on 1 Jan 2021 |
No. of shares awarded during 2021 |
Market price per share at award |
No. of shares vested during 2021 |
Market price per share at vesting |
No. of unvested shares held on 31 Dec 2021 |
End of performance period |
Date of vesting |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LTIP |
2018 | 179,318 | £14.915 | 10,759 | £18.660 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
178,482 | € 16.870 |
10,708 | € 21.335 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 309,807 | £17.698 | 309,807 | Dec 2021 | Feb 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 271,164 | £20.725 | 271,164 | Dec 2022 | Feb 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 308,702 | £18.660 | 308,702 | Dec 2023 | Feb 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
938,771 | 308,702 | 21,467 | 889,673 |
(1) | In addition, Mr Engstrom has 35,860 AIP deferred shares (pre-tax) awarded in 2019 with a market price at award of £17.698. The release of these AIP deferred shares in February 2022 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2019 to 345,667 and the number of unvested shares held on 31 December 2019 to 984,649. |
(2) | In addition, Mr Engstrom has 30,777 AIP deferred shares (pre-tax) awarded in 2020 with a market price at award of £20.725. The release of these AIP deferred shares in February 2023 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2020 to 301,941 and the number of unvested shares held on 31 December 2020 to 1,005,408. |
(3) | In addition, Mr Engstrom has 29,498 AIP deferred shares (pre-tax) awarded in 2021 with a market price at award of £18.66. The release of these AIP deferred shares in February 2024 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2021 to 338,200 and the number of unvested shares held on 31 December 2021 to 985,808. |
110 | RELX | |
|
Nick Luff |
|
|||||||||||||||||||||||||||||||||||
OPTIONS |
Year of grant |
No. of options held on 1 Jan 2021 |
No. of options granted during 2021 |
Option price on date of grant |
No. of options exercised during 2021 |
Market price per share at exercise |
No. of options held on 31 Dec 2021 |
Unvested options vesting on |
Options exercisable until |
|||||||||||||||||||||||||||
ESOS |
2014 |
65,656 |
£9.900 |
65,656 |
02 Sep 24 |
|||||||||||||||||||||||||||||||
72,228 |
€ 11.378 |
72,228 |
02 Sep 24 |
|||||||||||||||||||||||||||||||||
2015 |
53,979 |
£11.520 |
53,979 |
02 Apr 25 |
||||||||||||||||||||||||||||||||
56,948 |
€ 15.003 |
56,948 |
02 Apr 25 |
|||||||||||||||||||||||||||||||||
2016 |
47,778 |
£12.550 |
47,778 |
15 Mar 26 |
||||||||||||||||||||||||||||||||
50,586 |
€ 15.285 |
50,586 |
15 Mar 26 |
|||||||||||||||||||||||||||||||||
2017 |
40,210 |
£14.945 |
40,210 |
27 Feb 27 |
||||||||||||||||||||||||||||||||
42,452 |
€ 16.723 |
42,452 |
27 Feb 27 |
|||||||||||||||||||||||||||||||||
Total |
429,837 |
429,837 |
SHARES (1)(2)(3) |
Year of grant |
No. of unvested shares held on 1 Jan 2021 |
No. of shares awarded during 2021 |
Market price per share at award |
No. of shares vested during 2021 |
Market price per share at vesting |
No. of unvested shares held on 31 Dec 2021 |
End of performance period |
Date of vesting |
|||||||||||||||||||||||||||
LTIP |
2018 |
87,996 |
£14.915 |
5,279 |
£18.660 |
|||||||||||||||||||||||||||||||
87,585 |
€ 16.870 |
5,255 |
€ 21.335 |
|||||||||||||||||||||||||||||||||
2019 |
152,029 |
£17.698 |
152,029 |
Dec 2021 |
Feb 2022 |
|||||||||||||||||||||||||||||||
2020 |
133,066 |
£20.725 |
133,066 |
Dec 2022 |
Feb 2023 |
|||||||||||||||||||||||||||||||
2021 |
151,487 |
£18.660 |
151,487 |
Dec 2023 |
Feb 2024 |
|||||||||||||||||||||||||||||||
Total |
460,676 |
151,487 |
10,534 |
436,582 |
(1) | In addition, Mr Luff has 21,269 AIP deferred shares (pre-tax) awarded in 2019 with a market price at award of £17.698. The release of these AIP deferred shares in February 2022 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2019 to 173,298 and the number of unvested shares held on 31 December 2019 to 489,783. |
(2) | In addition, Mr Luff has 18,079 AIP deferred shares (pre-tax) awarded in 2020 with a market price at award of £20.725. The release of these AIP deferred shares in February 2023 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2020 to 151,145 and the number of unvested shares held on 31 December 2020 to 500,024. |
(3) | In addition, Mr Luff has 17,370 AIP deferred shares (pre-tax) awarded in 2021 with a market price at award of £18.66. The release of these AIP deferred shares in February 2024 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2021 to 168,857 and the number of unvested shares held on 31 December 2021 to 493,300. |
RELX |
111 | |
|
£’000 |
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||||||||||||
Annualised base salary |
1,051 | 1,077 | 1,104 | 1,131 | 1,160 | 1,189 | 1,218 | 1,249 | 1,280 | 1,312 | ||||||||||||||||||||||||||||||
Annual incentive payout |
73% | 70% | 71% | 70% | 68% | 69% | 78% | 77% | 65% | 86% | ||||||||||||||||||||||||||||||
as a % of maximum |
||||||||||||||||||||||||||||||||||||||||
Multi-year incentive |
70% | (1) |
96% | (1) |
90% | (1) |
97% | (1) |
97% | (1) |
92% | (1) |
81% | (1) |
81% | (1) |
6% | 71% | ||||||||||||||||||||||
vesting as a % of maximum |
||||||||||||||||||||||||||||||||||||||||
CEO total |
11,145 | (2) |
5,463 | 17,447 | (3) |
11,416 | (4) |
11,399 | (5) |
8,748 | (6) |
9,141 | (7) |
9,346 | (8) |
3,980 | (9) |
9,634 | (10) |
(1) | The 2019, 2018, 2017, 2016 and 2015 percentages reflect BIP, LTIP and ESOS. The 2014 percentage reflects the final tranche of the Reed Elsevier Growth Plan (REGP), BIP and ESOS. The 2013 percentage reflects BIP and ESOS only and the 2012 percentage reflects BIP and the first tranche of the REGP. |
(2) | The 2012 figure reflects the vesting of the first tranche of the REGP and includes the entire amount that was performance tested over the 2010–2012 period, including the 50% of shares deferred until 2015 in accordance with the plan rules including £3m attributed to share price appreciation. |
(3) | The 2014 figure includes the vesting of the second and final tranche of the REGP and includes £8.8m attributed to share price appreciation. |
(4) | The 2015 figure includes £4.4m attributed to share price appreciation. |
(5) | The 2016 figure includes £4.2m attributed to share price appreciation. |
(6) | The 2017 figure includes £1.7m attributed to share price appreciation. |
(7) | The 2018 figure includes £2.2m attributed to share price appreciation. |
(8) | The 2019 figure includes £2.2m attributed to share price appreciation. |
(9) | The 2020 figure includes £80k attributed to share price appreciation. The share award value has been restated for actual share prices and exchange rates applicable on the dates of vesting. |
(10) | The 2021 figure includes £1.2m attributed to share price appreciation. |
112 | RELX | |
|
Total remuneration |
||||||||||||||||||||||||||||||
Pay ratios |
All UK employees £’000 |
|||||||||||||||||||||||||||||
Year |
Method |
P25 |
P50 |
P75 |
P25 |
P50 |
P75 |
|||||||||||||||||||||||
2021 |
A |
223:1 |
151:1 |
104:1 |
£ |
43 |
£ |
64 |
£ |
92 |
||||||||||||||||||||
2020 |
A |
98:1 |
67:1 |
46:1 |
£ |
40 |
£ |
59 |
£ |
86 |
||||||||||||||||||||
2019 |
A |
225:1 |
149:1 |
100:1 |
£ |
39 |
£ |
58 |
£ |
86 |
Salary |
||||||||||||||||||||||||||||||
Pay ratios |
All UK employees £’000 |
|||||||||||||||||||||||||||||
Year |
Method |
P25 |
P50 |
P75 |
P25 |
P50 |
P75 |
|||||||||||||||||||||||
2021 |
A |
35:1 |
25:1 |
18:1 |
£ |
38 |
£ |
52 |
£ |
74 |
||||||||||||||||||||
2020 |
A |
35:1 |
25:1 |
18:1 |
£ |
37 |
£ |
52 |
£ |
72 |
||||||||||||||||||||
2019 |
A |
35:1 |
25:1 |
18:1 |
£ |
35 |
£ |
51 |
£ |
71 |
◾ |
Salaries for all UK employees, including the Executive Directors, are set based on a wide range of factors, including market practice, scope and impact of the role and experience. |
◾ |
The provision of certain benefits and the level of benefit provided vary depending on the role and level of seniority. |
◾ |
Participation in annual incentive plans varies by business and reflects the culture and the nature of the business, as well as role. |
◾ |
Whilst none of the comparator employees participate in the executive share plans, they do have the opportunity to receive company shares via the UK Sharesave Option Plan. A greater proportion of performance-related variable pay and share based awards applies to more senior executives, including the Executive Directors, who have a greater influence over performance outcomes. |
2021 £m |
2020 £m |
% change | ||||||||||
Employee costs (1) |
2,549 | 2,555 | -0.2% | |||||||||
Dividends |
920 | 880 | +4.5% | |||||||||
Share repurchases |
0 | 150 | N/A |
(1) | Employee costs include wages and salaries, social security costs, pensions and share based and related remuneration. |
RELX |
113 | |
|
(a) | they were in a relevant market index or were the largest listed companies on the relevant exchanges at the end of the year before the start of the performance period: the FTSE 100 for the sterling group; the Euronext100 (including the AEX) and DAX30 for the euro group; and the S&P 500 for the US dollar group; |
(b) | certain companies were then excluded: |
◾ |
those with mainly domestic or single country revenues (as they do not reflect the global nature of RELX’s customer base); |
◾ |
those engaged in extractive industries (as they are exposed to commodity cycles); and |
◾ |
financial services companies (as they have a different risk/reward profile). |
(c) | the remaining companies were then ranked by market capitalisation and, for each comparator group, around 50 companies with market capitalisations above and below that of RELX were taken; and |
(d) | relevant listed global peers operating in businesses similar to those of RELX, but not otherwise included, were added. |
Vesting percentage of each third of the TSR tranche (1) |
TSR ranking within the relevant TSR comparator group | |
0% | Below median | |
25% | Median | |
100% | Upper quartile |
(1) | Vesting is on a straight-line basis for performance between the minimum and maximum levels. |
Vesting percentage of EPS and ROIC tranches (1) |
Average growth in adjusted EPS over the three-year performance period |
ROIC in the third year of the performance period | ||
0% | below 5% p.a. | below 11.0% | ||
25% | 5% p.a. | 11.0% | ||
50% | 6% p.a. | 11.5% | ||
65% | 7% p.a. | 12.0% | ||
75% | 8% p.a. | 12.5% | ||
85% | 9% p.a. | 13.0% | ||
92.5% | 10% p.a. | 13.5% | ||
100% | 11% p.a. or above | 14% or above |
(1) | Vesting is on a straight-line basis for performance between the stated average adjusted EPS growth/ROIC percentages. |
114 | RELX | |
|
Resolution | Votes For | % For | Votes Against | % Against | Total votes cast | Votes Withheld | ||||||||||||||||||
Remuneration Report (advisory) |
1,468,935,889 | 92.45% | 119,930,775 | 7.55% | 1,588,866,664 | 27,861,306 |
Resolution | Votes For | % For | Votes Against | % Against | Total votes cast | Votes Withheld | ||||||||||||||||||
Remuneration Policy (binding) |
1,507,700,939 | 93.42% | 106,174,539 | 6.58% | 1,613,875,478 | 690,971 |
RELX |
115 | |
|
116 | RELX | |
|
RELX |
117 | |
|
◾ |
The minimum payout is zero. |
◾ |
Each measure is assessed independently and payout for each measure at threshold is 10% of the maximum opportunity for that measure. If the financial measures have a weighting of 100% and threshold is reached for each of the financial measures, the overall payout for the financial measures is 13.5% of salary. If the financial measures have a weighting of 85% and threshold is reached for each of the financial measures, the overall payout for the financial measures is 11.5% of salary. |
◾ |
Payout for target performance is 135% of salary. |
◾ |
performance measured over three financial years |
◾ |
continued employment (subject to the provisions set out in the Policy on payments for loss of office section) |
◾ |
meeting shareholding requirements (450% of salary for the CEO and 300% of salary for the CFO) |
◾ |
The minimum payout is zero. |
◾ |
Each measure is assessed independently and payout for each measure at threshold is 25% of the maximum opportunity for that measure. If only one measure vests at threshold, and it has a weighting of 40%, then the overall payout would be 10% of the maximum award. If only one measure with a weighting of 20% vests at threshold, the overall payout would be 5% of the maximum award. |
◾ |
Payout in line with expectations is 50% of the maximum award. |
118 | RELX | |
|
(1) | Discretion in respect of AIP and LTIP payout levels: |
(2) | Discretion to vary performance measures under the AIP and the LTIP: |
(3) | Discretion on termination of employment under the AIP and the LTIP: |
(4) | Malus and claw-back under the AIP and the LTIP: |
(5) | Explanation of differences between the Company’s policy on Executive Directors’ remuneration and the policy for other employees: Incentives: Other benefits: |
(6) | Changes to pay components: |
RELX |
119 | |
|
* | The standard package comprises annual base salary, retirement benefits, other benefits, AIP and LTIP. |
120 | RELX | |
|
GENERAL 1 |
INCENTIVES | |
Mutually agreed termination/termination by the Company other than for cause 2 | ||
(includes retirement with customary notice) |
||
The Executive Director would be entitled to salary, benefits and other contractual payments in the normal way up to the termination date and would be paid for any accrued but untaken holiday. Salary: Other benefits: Pension: Other: The Company would have due regard to principles of mitigation of loss. Reductions would be applied to reflect any portion of the notice period that is worked and/or spent on gardening leave. On injury, disability, ill-health or death, the Committee reserves the right to vary the treatment outlined in this section. |
Annual incentive: pro-rata payment in respect of the part of the financial year up to the termination date would generally be payable (subject to the deferral provisions), with the amount being determined by reference to the original performance criteria. However, the Committee has discretion to decide otherwise depending on the reason for termination and other specific circumstances. The Company would not pay any annual incentive in respect of any part of the financial year following the termination date (e.g. for any unworked period of notice). AIP deferred shares would be released to the Executive Directors in full at the end of the deferral period. The annual incentive claw-back provisions would apply. LTIP: pro-rated to reflect time employed and would vest subject to performance measured at the end of the relevant performance period and subject to the Executive Director continuing to meet his full shareholding requirement for two years after the termination date. The Committee has discretion to allow unvested LTIP awards to vest earlier and to adjust the application of time pro-rating and performance conditions, subject to the plan rules. The requirement to retain net (after tax) vested LTIP shares for a holding period of two years after vesting ceases to apply on termination of employment. | |
Employee instigated resignation The Executive Director would not receive any payments for loss of office. The Executive Director would be entitled to salary, benefits and other contractual payments in the normal way up to the termination date and would be paid for any accrued but untaken holiday. Pension: |
Annual incentive: pro-rated annual incentive in respect of a part year up to the termination date, unless the Committee decides otherwise in the specific circumstances. Any AIP deferred shares would be released to the Executive Director in full at the end of the deferral period. Annual incentive claw-back provisions would apply. LTIP: | |
Dismissal for cause The Executive Director would be entitled to salary, benefits and other contractual payments in the normal way up to the termination date and would be paid for any accrued but untaken holiday but would not receive any payments for loss of office. Pension: |
Annual incentive: LTIP: |
(1) | In addition to what is set out in this section, on termination for any reason, Erik Engstrom will be entitled to payment of amounts held in his ‘Retirement Account’. Before he joined the Company’s UK defined benefit scheme, he was not a member of any company pension scheme and RELX made annual contributions of 19.5% of base salary to a deferred compensation plan. Contributions to this Retirement Account ceased when he became a member of the UK defined benefit arrangement. |
(2) | In cases where the approved leaver treatment applies, the AIP and LTIP have a default position as well as giving the Committee discretion to adjust the default treatment within certain parameters. The Committee would only expect to exercise such discretion where the Committee believes the personal circumstances of the Executive Director so require. |
RELX |
121 | |
|
122 | RELX | |
|
Membership The Committee comprises at least three independent Non-Executive Directors. The members of the Committee who served during the year were: ◾ Suzanne Wood (Chair of the Committee)◾ Andrew Sukawaty◾ June Felix◾ Charlotte Hogg (since 28 July 2021)◾ Marike van Lier Lels (member until 28 July 2021)Of the current members of the Committee, Suzanne Wood, a US chartered accountant, is considered to have significant, recent and relevant financial experience. The Committee as a whole is deemed to have competence relevant to the sectors in which RELX operates. Please see pages 72 and 73 for full profiles of Audit Committee members. |
Responsibilities The main role and responsibility of the Committee is to assist the Board in fulfilling its oversight responsibilities regarding: ◾ the integrity of the interim and full-year financial statements and financial reporting processes;◾ risk management and internal controls, and the effectiveness of the internal auditors; and◾ the performance of the external auditors and the effectiveness of the external audit process, including monitoring the independence and objectivity of Ernst & Young.The Committee reports to the Board on its activities, identifying any matters in respect of which it considers that action or improvement is needed and making recommendations as to the steps to be taken. The terms of reference of the Audit Committee are reviewed annually and a copy is published on the RELX website, |
www.relx.com |
AREAS OF SIGNIFICANT JUDGEMENT AND ESTIMATION |
PAGE REFERENCE IN ANNUAL REPORT | |
Specific areas of significant judgement and estimation focused on by the Committee were: |
||
◾ Acquired intangible assets: The identification of separate intangible assets on acquisition requires judgement. Estimation is required in determining the future cash flows and discount rates used to value these assets. The Committee received and discussed reports from the RELX Financial Controller on the methodology and the basis of the assumptions used. |
162-164 | |
◾ Capitalisation of internally developed intangible assets: The capitalisation of costs related to the development of new products and business infrastructure, together with the useful economic lives applied to the resulting assets, requires the exercise of judgement. The Committee received reports from the RELX Financial Controller on the amounts capitalised and asset lives selected for major projects; |
162-164 | |
◾ Taxation: The valuation of provisions in relation to uncertain tax positions involves estimation. The Committee received and discussed reports from the RELX Head of Taxation on the potential liabilities identified and assumptions used; |
155-158 | |
◾ Defined benefit pension obligation: The valuation of certain pension scheme liabilities and assets is subject to judgement and estimation. The Committee received and discussed reports from the RELX Financial Controller on the methodology and the basis of the assumptions used. |
150-153 | |
The Committee was satisfied that all judgements and estimations had been appropriately made. |
||
|
RELX |
123 | |
|
OTHER AREAS OF FOCUS |
PAGE REFERENCE IN ANNUAL REPORT |
|||
Other areas discussed by the Committee during the year were: |
||||
◾ Carrying value of goodwill and intangible assets: The Committee received and discussed reports from the RELX Financial Controller on the methodology used for the annual impairment review including the basis of the assumptions used such as discount rates and long-term growth. |
162-164 |
|||
Specific Covid-19 areas discussed by the Committee during the year were: |
||||
◾ Exhibitions exceptional costs charged in 2020: The utilisation of the provision in 2021, for exceptional costs recorded in 2020, relating to cancelled events and restructuring was reviewed to ensure appropriate. |
145-147 |
|||
The Committee was satisfied that all the above items had been appropriately considered and presented in the Annual Report. |
||||
DISCLOSURE AND PRESENTATION |
PAGE REFERENCE IN ANNUAL REPORT |
|||
As well as considering the Annual Report as a whole (see ‘Fair, balanced and understandable’ section below) the Committee focused on the following areas of disclosure and presentation: | ||||
◾ Reviewed the critical accounting policies and compliance with applicable accounting standards, reviewed other disclosure requirements and received regular update reports on accounting and regulatory developments; |
143 | |||
◾ Reviewed the disclosures made in relation to internal control, risk management, the going concern statement and the viability statement. The Committee received and discussed reports from the RELX Head of Audit and Risk Management and the RELX Treasurer on the processes undertaken and assumptions used in formulating these disclosures. The going concern and viability statements were subject to an in-depth review, including a detailed review and challenge of the various adverse scenarios modelled to ensure that the statements made in relation to going concern and viability are robust; |
91-96 |
|||
◾ Considered the calculation and presentation of alternative performance measures in the Annual Report and Accounts and results announcement, including associated reconciliations to GAAP measures. |
60-65, 192-200 |
|||
◾ Reviewed the disclosures made for the first time in the Annual Report in relation to the TCFD’s recommendations. |
55-57 |
|||
The Committee was satisfied that all relevant disclosures have been appropriately made. |
◾ |
received and discussed regular reports summarising the status of the Group’s risk management activities, including the impact of Covid-19, identification of emerging risks and actions to mitigate risks, and the findings from internal audits and status of actions agreed with management. Areas of focus in 2021 included: cyber security (including the ability to prevent, respond to and recover from a cyber-attack or ransomware attack); data privacy; the operational, financial and IT control environment including controls required as a result of home-working and return to office plans; the use of technology including machine learning; regulatory compliance; business continuity and resilience (including supplier resilience and plans for extreme weather events); post-acquisition integration; integrity of published ESG data; and continued compliance with the requirements of Section 404 of the US Sarbanes-Oxley Act relating to the documentation and testing of internal controls over financial reporting. |
124 | RELX | |
|
◾ |
received regular updates from the RELX Treasurer on the Group’s financial position including on liquidity, compliance with the financial covenant in its revolving credit agreement, credit ratings and ability to access debt capital markets, risk management and compliance with treasury policies and pension arrangements and funding; |
◾ |
reviewed and approved the internal audit plan for 2022 and monitored execution of the 2021 plan, including progress in respect of actions agreed; |
◾ |
reviewed the resources, terms of reference and effectiveness of the RELX risk management and internal audit functions; |
◾ |
received presentations from: the RELX Chief Compliance Officer on the compliance programmes, including the operation of the RELX Code of Conduct, training programmes and whistleblowing arrangements, and the RELX Chief Legal Officer on legal issues and claims; |
◾ |
received presentations from the RELX Head of Taxation on tax policies and related matters; |
◾ |
received regular updates from the RELX Chief Financial Officer on developments within the finance function; and received an update on Information Security Assurance. |
RELX |
125 | |
|
Absolute performance |
Intensity ratio (per £m revenue) |
|||||||||||||||||||||||
2021 |
Variance | 2020 | 2021 |
Variance | 2020 | |||||||||||||||||||
Global Scope 1 (direct emissions) tCO 2 e |
5,226 | 16% | 4,516 | 0.72 | 13% | 0.64 | ||||||||||||||||||
Global Scope 2 (indirect location-based emissions) tCO 2 e |
43,445 | -18% | 53,131 | 6.00 | -20% | 7.47 | ||||||||||||||||||
Global energy MWh* | 126,519 | -8% | 137,412 | 17.47 | -10% | 19.33 | ||||||||||||||||||
UK energy MWh* | 12,591 | -2% | 12,793 | 1.74 | -3% | 1.80 | ||||||||||||||||||
UK Scope 1 and Scope 2 emissions tCO 2 e |
2,686 | -3% | 2,763 | 0.37 | -5% | 0.39 |
* | Energy figures include vehicle fuels for SECR reporting. |
126 | RELX | |
|
Notifications received as at 31 December 2021 | % of voting rights | |||
◾ BlackRock, Inc |
7.84% | |||
◾ Invesco Limited |
4.99% |
RELX |
127 | |
|
Information required |
Page | |||
(1) | Interest capitalised by the Group | n/a | ||
(2) | Publication of unaudited financial information | n/a | ||
(4) | Long-term incentive schemes | n/a | ||
(5) | Waiver of emoluments by a director | n/a | ||
(6) | Waiver of future emoluments by a director | n/a | ||
(7) | Non pro-rata allotments for cash (issuer) | n/a | ||
(8) | Non pro-rata allotments for cash (major subsidiaries) | n/a | ||
(9) | Parent participation in a placing by a listed subsidiary | n/a | ||
(10) | Contracts of significance | n/a | ||
(11) | Provision of services by a controlling shareholder | n/a | ||
(12) | Shareholder waiver of dividends | 161 | ||
(13) | Shareholder waiver of future dividends | 161 | ||
(14) | Agreements with controlling shareholders | n/a |
128 | RELX | |
|
◾ |
the consolidated financial statements, prepared in accordance with UK adopted International Accounting Standards in conformity with the requirements of the Companies Act 2006 and International Financial Reporting Standards (IFRS), following the accounting policies shown in the notes to the financial statements on pages 143 and 144, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group; |
◾ |
the individual company financial statements, prepared in accordance with Financial Reporting Standard 101 “Reduced Disclosure Framework” (FRS 101), gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and |
◾ |
the Directors’ Report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal and emerging risks and uncertainties that it faces. |
◾ |
so far as the Director is aware, there is no relevant audit information of which the Company’s auditors are unaware; and |
◾ |
he/she has taken all the steps that he/she ought to have taken as a Director to make himself/herself aware of any relevant audit information and to establish that the Company’s auditors are aware of that information. |
RELX |
129 | |
|
Financial statements and other information |
In this section | ||
130 |
||
138 |
||
143 |
||
184 |
130 | RELX | |
|
OPINION | ||
In our opinion: | ||
◾ |
RELX PLC’s group financial statements and parent company financial statements (the “financial statements”) give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 December 2021 and of the group’s profit for the year then ended; | |
◾ |
the group financial statements have been properly prepared in accordance with UK-adopted International Accounting Standards; | |
◾ |
the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and | |
◾ |
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006. | |
We have audited the financial statements of RELX PLC (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2021 which comprise: |
Group |
Parent company | |
Consolidated income statement for the year ended 31 December 2021. | Statement of financial position as at 31 December 2021 | |
Consolidated statement of comprehensive income for the year then ended | Statement of changes in equity for the year then ended | |
Consolidated statement of cash flows for the year then ended | Related notes 1 to 4 to the financial statements including a summary of significant accounting policies | |
Consolidated statement of financial position as at 31 December 2021 | ||
Consolidated statement of changes in equity for the year then ended | ||
Related notes 1 to 28 to the financial statements, including a summary of significant accounting policies |
The financial reporting framework that has been applied in the preparation of the group financial statements is applicable law and UK adopted International Accounting Standards and International Financial Reporting Standards (IFRSs). The financial reporting framework that has been applied in the preparation of the parent company financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice). | ||
BASIS FOR OPINION | ||
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. | ||
INDEPENDENCE | ||
We are independent of the group and parent in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. | ||
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the group or the parent company and we remain independent of the group and the parent company in conducting the audit | ||
CONCLUSIONS RELATING TO GOING CONCERN | ||
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the group and parent company’s ability to continue to adopt the going concern basis of accounting included: | ||
◾ |
Confirming our understanding of management’s Going Concern assessment process, in conjunction with our walkthrough of the Group’s financial close process, and also engaging with management to confirm all key factors were considered in their assessment; | |
◾ |
Obtaining management’s going concern assessment, including the cash forecast and covenant calculation for the going concern period which covers 18 months from the balance sheet date to 30 June 2023. The Group has modelled a number of adverse scenarios in their cash forecasts and covenant calculations in order to incorporate unexpected changes to the forecasted liquidity of the Group. We have tested the factors and assumptions included in each modelled scenario for the cash forecast and tested compliance with the covenants. We have also tested the impact of Covid-19 included in each forecasted scenario and evaluated the appropriateness of the methods used to calculate the cash forecasts. Additionally, we tested the clerical accuracy of covenant compliance calculations and determined through inspection and testing of the methodology and calculations that the methods utilised were appropriately sophisticated to be able to make an assessment for the entity. |
RELX |
131 | |
|
◾ |
Considering the mitigating factors included in the cash forecasts and covenant calculations that are within control of the Group. This includes review of the Group’s non-operating cash outflows and evaluating the Group’s ability to control these outflows as mitigating actions if required. |
◾ |
Verifying the credit facilities available to the Group. |
◾ |
Performing reverse stress testing in order to identify what factors would lead to the Group running out of all available finance or breaching the financial covenant during the going concern period. |
◾ |
Reviewing the Group’s going concern disclosures included in the annual report in order to assess that the disclosures are appropriate and in conformity with the reporting standards. |
OVERVIEW OF OUR AUDIT APPROACH | ||
Audit scope |
◾ We performed an audit of the complete financial information of six components and audit procedures on specific balances for a further six components. We also instructed one location to perform specific audit procedures over manual journal entries to revenue. | |
◾ The components where we performed full or specific audit procedures accounted for 80% of Profit before tax on an absolute basis, 83% of Revenue and 78% of Total assets. | ||
Key audit matters |
◾ Uncertain tax positions - risk that the tax provisions may be incorrectly quantified, impacting the provision and the effective tax rate, and that the tax provision is improperly disclosed. | |
◾ Revenue recognition - risk that there is an opportunity to commit fraud impacting revenue through manual adjustments or override of controls by management. | ||
Materiality |
◾ Overall Group materiality of £90m which represents 5% of profit before tax. |
132 | RELX | |
|
RELX |
133 | |
|
RISK |
OUR RESPONSE TO THE RISK |
KEY OBSERVATIONS COMMUNICATED TO THE AUDIT COMMITTEE | ||
Uncertain tax positions As described in note 9 to the consolidated financial statements, note 1 in the accounting policies and in the audit committee report (page 122), the Group is subject to tax in numerous jurisdictions. Provisions related to tax totalled £228m as at 31 December 2021 (2020: £276m). The Group’s operational structure gives rise to potential tax exposures that require management to exercise judgement in making determinations as to the amount of tax that is payable. The Group reports cross-border transactions undertaken between subsidiaries on an arm’s-length basis in tax returns in accordance with Organisation for Economic Co-operation and Development (OECD) guidelines. Transfer pricing relies on the exercise of judgement and it is reasonably possible for there to be a significant range of potential outcomes.As a result, the Group has recognised a number of provisions against uncertain tax positions, the valuation of which requires significant estimation uncertainty, as described in note 9. We focused on this area due to the complexity due to the subjectivity in the quantification of the provision and the judgement around the trigger for recognition or release impacting the provision and the effective tax rate. |
Our procedures included obtaining an understanding of the tax provisioning processes and evaluating the design of, as well as testing, internal controls over the tax provisioning process. We tested controls over management’s review of the uncertain tax position provisions recorded, including the controls over the development of significant assumptions and judgements. Our procedures on the uncertain tax positions were performed centrally by the group team supported by overseas teams including professionals with specialised skills. Procedures included, among others (i) meeting with members of management responsible for tax to understand the Group cross-border transactions, status of significant provisions, and any changes to management’s judgements in the year; (ii) reading correspondence with tax authorities and external advisors and obtaining an understanding of all matters considered by management to inform our assessment of recorded estimates and evaluate the completeness of the provisions recorded; (iii) independently assessing management’s significant assumptions and judgements to record or release provisions following tax audits, settlements and the expiry of timeframes with reference to other similar tax positions the Group has historically held and our knowledge of developments in the jurisdictions in which RELX maintain tax provisions; (iv) testing the underlying schedules for arithmetic accuracy, as well as with reference to applicable tax laws; and (v) evaluating the adequacy of tax disclosures. |
We reported to the Audit Committee that we challenged the robustness of the key management judgements. We confirmed that we were satisfied that management’s judgements in relation to the extent of provisions for uncertain tax positions are appropriate. We noted further that there continues to be a high degree of uncertainty about the eventual outcome of many of these provisions. The notes to the financial statements appropriately include disclosure of the estimation uncertainty related to uncertain tax positions. |
134 | RELX | |
|
RISK |
OUR RESPONSE TO THE RISK |
KEY OBSERVATIONS COMMUNICATED TO THE AUDIT COMMITTEE | ||
Revenue recognition Revenue recognition as described in note 2 to the consolidated financial statements, the group recognises revenue (£7.2bn recorded in 2021, compared to £7.1bn recorded in 2020) from a variety of sources among the different business areas, including annual subscriptions, transactional usage and exhibition fees. The nature of the risk associated with the accurate recording of revenue varies. We recognise that revenue is a key metric upon which the group is judged, that the group has annual internal targets, and that the group has incentive schemes that are partially impacted by revenue growth. We have determined that there is a risk in each of the business areas related to the opportunity to commit fraud in the respective revenue streams through manual adjustments or override of controls by management. |
We performed full and specific scope audit procedures over revenue in 11 locations, which covered 83% of revenue. We performed procedures to address the specific risk in each business area. Procedures included, among others, (i) assessing the processes and testing controls over each significant revenue stream; (ii) evaluating the appropriateness of journal entries impacting revenue, as well as other adjustments made in the preparation of the financial statements; (iii) evaluating management’s controls over such adjustments; (iv) inspecting a sample of contracts to check that revenue recognition was in accordance with the contract terms and the group’s revenue recognition policies; (v) testing a sample of transactions around period end to test that revenue was recorded in the correct period; (vi) for revenue streams that have judgemental elements, evaluating management’s assumption and critically challenging these assumptions against contractual terms;(vii) for certain revenue streams we obtained audit evidence through the execution of data analytics procedures, including a correlation of revenue to cash. The procedures we performed over the remaining 17% of revenue included: (i) testing of entity level and group wide controls; (ii) analytical review of year over year movements in revenue; (iii) review for evidence of material contracts that would require further testing. |
Revenue has been recognised appropriately in the year ended 31 December 2021 in accordance with IFRS 15: Revenue from Contracts with Customers. |
RELX |
135 | |
|
◾ |
the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
◾ |
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements |
◾ |
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
◾ |
the parent company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the accounting records and returns; or |
◾ |
certain disclosures of directors’ remuneration specified by law are not made; or |
◾ |
we have not received all the information and explanations we require for our audit |
◾ |
Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material uncertainties identified set out on page 95; |
◾ |
Directors’ explanation as to its assessment of the company’s prospects, the period this assessment covers and why the period is appropriate set out on page 96; |
◾ |
Director’s statement on whether it has a reasonable expectation that the group will be able to continue in operation and meets its liabilities set out on page 95; |
136 | RELX | |
|
◾ |
Directors’ statement on fair, balanced and understandable set out on page 128; |
◾ |
Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 66; |
◾ |
The section of the annual report that describes the review of effectiveness of risk management and internal control systems set out on page 93; and; |
◾ |
The section describing the work of the audit committee set out on page 122. |
◾ |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the most significant are those that relate to the reporting framework (UK adopted International Accounting Standards, FRS 101, the Companies Act 2006 and UK Corporate Governance Code) and relevant tax compliance regulations in the jurisdictions in which the Group operates. |
◾ |
We understood how RELX PLC is complying with those frameworks by making inquiries of management, internal audit, those responsible for legal and compliance procedures and the company secretary. We corroborated our enquiries through our review of Board minutes and papers provided to the Audit Committee, observations in Audit Committee meetings, as well as consideration of the results of our audit procedures across the Group. |
◾ |
We assessed the susceptibility of the group’s financial statements to material misstatement, including how fraud might occur by meeting the finance and operational management from various parts of the business to understand where it considered there was susceptibility to fraud. We also considered performance targets and their propensity to influence on efforts made by management to manage earnings. We considered the programmes and controls that the Group has established to address risks identified, other that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud or error. |
◾ |
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved journal entry testing, with a focus on manual consolidation journals and journals indicating large or unusual transactions based on our understanding of the business; enquiries of legal counsel, Group management, internal audit, business area management at all full and specific scope management; and focused testing. In addition, we completed procedures to conclude on the compliance of the disclosures in the annual report and accounts with all applicable requirements. |
◾ |
Any instances of non-compliance with laws and regulations were communicated by/to components and considered in our audit approach, if applicable. |
RELX |
137 | |
|
◾ |
Following the recommendation from the audit committee we were appointed by the company on 21 April 2016 to audit the financial statements for the year ending 31 December and subsequent financial periods. |
◾ |
The period of total uninterrupted engagement including previous renewals and reappointments is six years, covering the years ending 2016 to 2021. |
◾ |
Non-audit services prohibited by the FRC’s Ethical Standard were not provided to the group or the parent company and we remain independent of the group and the parent company in conducting the audit. |
◾ |
The audit opinion is consistent with the additional report to the audit committee. |
(1) | The maintenance and integrity of the RELX PLC web site is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the web site. |
(2) | Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. |
138 | RELX | |
FOR THE YEAR ENDED 31 DECEMBER |
Note | 2021 £m |
2020 £m |
2019 £m |
||||||||||||
Revenue |
2 | |||||||||||||||
Cost of sales |
( |
) |
( |
) | ( |
) | ||||||||||
Gross profit |
||||||||||||||||
Selling and distribution costs |
( |
) |
( |
) | ( |
) | ||||||||||
Administration and other expenses |
( |
) |
( |
) | ( |
) | ||||||||||
Share of results of joint ventures |
||||||||||||||||
Operating profit |
2, 3 | |||||||||||||||
Finance income |
7 | |||||||||||||||
Finance costs |
7 | ( |
) |
( |
) | ( |
) | |||||||||
Net finance costs |
( |
) |
( |
) | ( |
) | ||||||||||
Disposals and other non-operating items |
8 | |||||||||||||||
Profit before tax |
||||||||||||||||
Current tax |
( |
) |
( |
) | ( |
) | ||||||||||
Deferred tax |
( |
) | ||||||||||||||
Tax expense |
9 | ( |
) |
( |
) | ( |
) | |||||||||
Net profit for the year |
||||||||||||||||
Attributable to: |
||||||||||||||||
RELX PLC shareholders |
||||||||||||||||
Non-controlling interests |
( |
) | ||||||||||||||
Net profit for the year |
Earnings per share |
||||||||||||||||
FOR THE YEAR ENDED 31 DECEMBER |
2021 |
2020 | 2019 | |||||||||||||
Basic earnings per share |
||||||||||||||||
RELX PLC |
10 | p |
p | p | ||||||||||||
Diluted earnings per share |
||||||||||||||||
RELX PLC |
10 | p |
p | p |
RELX |
139 | |
FOR THE YEAR ENDED 31 DECEMBER |
Note | 2021 £m |
2020 £m |
2019 £m |
||||||||||||
Net profit for the year |
|
|
||||||||||||||
Items that will not be reclassified to profit or loss: |
||||||||||||||||
Actuarial gains/(losses) on defined benefit pension schemes |
6 | ( |
) | ( |
) | |||||||||||
Tax on items that will not be reclassified to profit or loss |
9 | ( |
) |
|||||||||||||
Total items that will not be reclassified to profit or loss |
( |
) | ( |
) | ||||||||||||
Items that may be reclassified subsequently to profit or loss: |
||||||||||||||||
Exchange differences on translation of foreign operations |
( |
) | ( |
) | ||||||||||||
Fair value movements on cash flow hedges |
17 | ( |
) | |||||||||||||
Transfer (from)/to net profit from cash flow hedge reserve |
17 | ( |
) |
|||||||||||||
Tax on items that may be reclassified to profit or loss |
9 | ( |
) |
( |
) | ( |
) | |||||||||
Total items that may be reclassified to profit or loss |
( |
) | ( |
) | ||||||||||||
Other comprehensive income/(loss) for the year |
( |
) | ( |
) | ||||||||||||
Total comprehensive income for the year |
||||||||||||||||
Attributable to: |
||||||||||||||||
RELX PLC shareholders |
||||||||||||||||
Non-controlling interests |
( |
) | ||||||||||||||
Total comprehensive income for the year |
140 | RELX | |
FOR THE YEAR ENDED 31 DECEMBER |
Note | 2021 £m |
2020 £m |
2019 £m |
||||||||||||
Cash flows from operating activities |
||||||||||||||||
Cash generated from operations |
11 | |
|
|||||||||||||
Interest paid (including lease interest) |
( |
) |
( |
) | ( |
) | ||||||||||
Interest received |
||||||||||||||||
Tax paid (net) |
( |
) |
( |
) | ( |
) | ||||||||||
Net cash from operating activities |
||||||||||||||||
Cash flows from investing activities |
||||||||||||||||
Acquisitions |
11 | ( |
) |
( |
) | ( |
) | |||||||||
Purchases of property, plant and equipment |
( |
) |
( |
) | ( |
) | ||||||||||
Expenditure on internally developed intangible assets |
( |
) |
( |
) | ( |
) | ||||||||||
Purchase of investments |
( |
) |
( |
) | ( |
) | ||||||||||
Proceeds from disposals of property, plant and equipment |
||||||||||||||||
Gross proceeds from business disposals and sale of investments |
||||||||||||||||
Payments on business disposals |
( |
) |
( |
) | ( |
) | ||||||||||
Dividends received from joint ventures |
||||||||||||||||
Net cash used in investing activities |
( |
) |
( |
) | ( |
) | ||||||||||
Cash flows from financing activities |
||||||||||||||||
Dividends paid to shareholders |
13 | ( |
) |
( |
) | ( |
) | |||||||||
Distributions to non-controlling interests |
( |
) |
( |
) | ( |
) | ||||||||||
(Decrease)/increase in short-term bank loans, overdrafts and commercial paper |
11 | ( |
) |
( |
) | |||||||||||
Issuance of term debt |
11 | |||||||||||||||
Repayment of term debt |
11 | ( |
) |
( |
) | ( |
) | |||||||||
Repayment of leases |
11 | ( |
) |
( |
) | ( |
) | |||||||||
Receipts in respect of subleases |
11 | |||||||||||||||
Disposal of non-controlling interest |
||||||||||||||||
Repurchase of ordinary shares |
23 | ( |
) | ( |
) | |||||||||||
Purchase of shares by Employee Benefit Trust |
23 | ( |
) |
( |
) | ( |
) | |||||||||
Proceeds on issue of ordinary shares |
||||||||||||||||
Net cash used in financing activities |
( |
) |
( |
) | ( |
) | ||||||||||
Increase/(decrease) in cash and cash equivalents |
11 | ( |
) | |||||||||||||
Movement in cash and cash equivalents |
||||||||||||||||
At start of year |
||||||||||||||||
Increase/(decrease) in cash and cash equivalents |
( |
) | ||||||||||||||
Exchange translation differences |
( |
) |
( |
) | ||||||||||||
At end of year |
RELX |
141 | |
AS AT 31 DECEMBER |
Note | 2021 £m |
2020 £m |
|||||||||
Non-current assets |
||||||||||||
Goodwill |
14 | |
||||||||||
Intangible assets |
14 | |||||||||||
Investments in joint ventures |
15 | |||||||||||
Other investments |
15 | |||||||||||
Property, plant and equipment |
16 | |||||||||||
Right-of-use |
22 | |||||||||||
Other receivables |
||||||||||||
Deferred tax assets |
9 | |||||||||||
Net pension assets |
6 | |||||||||||
Derivative financial instruments |
17 | |||||||||||
Current assets |
||||||||||||
Inventories and pre-publication costs |
18 | |||||||||||
Trade and other receivables |
19 | |||||||||||
Derivative financial instruments |
17 | |||||||||||
Cash and cash equivalents |
11 | |||||||||||
Total assets |
||||||||||||
Current liabilities |
||||||||||||
Trade and other payables |
20 | |||||||||||
Derivative financial instruments |
17 | |||||||||||
Debt |
21 | |||||||||||
Taxation |
9 | |||||||||||
Provisions |
||||||||||||
Non-current liabilities |
||||||||||||
Derivative financial instruments |
17 | |||||||||||
Debt |
21 | |||||||||||
Deferred tax liabilities |
9 | |||||||||||
Net pension obligations |
6 | |||||||||||
Other payables |
||||||||||||
Provisions |
||||||||||||
Total liabilities |
||||||||||||
Net assets |
||||||||||||
Capital and reserves |
||||||||||||
Share capital |
23 | |||||||||||
Share premium |
||||||||||||
Shares held in treasury |
23 | ( |
) |
( |
) | |||||||
Translation reserve |
||||||||||||
Other reserves |
24 | |||||||||||
Shareholders’ equity |
||||||||||||
Non-controlling interests |
( |
) |
||||||||||
Total equity |
P Walker |
N L Luff | |
Chair | Chief Financial Officer |
142 | RELX | |
Note | Share capital £m |
Share premium £m |
Shares held in treasury £m |
Translation reserve £m |
Other reserves £m |
Shareholders’ equity £m |
Non- controlling interests £m |
Total equity £m |
||||||||||||||||||||||||||||
Balance at 1 January 2019 |
|
( |
) | |||||||||||||||||||||||||||||||||
Total comprehensive income for the year |
– | – | – | ( |
) | |||||||||||||||||||||||||||||||
Dividends paid |
13 | – | – | – | – | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Issue of ordinary shares, net of expenses |
23 | – | – | – | – | |||||||||||||||||||||||||||||||
Repurchase of ordinary shares |
– | – | ( |
) | – | – | ( |
) | – | ( |
) | |||||||||||||||||||||||||
Bonus issue of ordinary shares |
23 | – | – | – | ( |
) | – | – | – | |||||||||||||||||||||||||||
Cancellation of bonus shares |
23 | ( |
) | – | – | – | – | – | – | |||||||||||||||||||||||||||
Cancellation of shares |
23 | ( |
) | – | – | ( |
) | – | – | – | ||||||||||||||||||||||||||
Increase in share based remuneration reserve (net of tax) |
– | – | – | – | – | |||||||||||||||||||||||||||||||
Settlement of share awards |
– | – | – | ( |
) | – | – | – | ||||||||||||||||||||||||||||
Acquisitions |
– | – | – | – | – | – | ( |
) | ( |
) | ||||||||||||||||||||||||||
Put option |
– | – | – | – | ( |
) | ( |
) | – | ( |
) | |||||||||||||||||||||||||
Disposal of non-controlling interest |
– | – | – | – | ||||||||||||||||||||||||||||||||
Exchange differences on translation of capital and reserves |
– | – | – | – | – | – | ( |
) | ( |
) | ||||||||||||||||||||||||||
Balance at 1 January 2020 |
( |
) | ||||||||||||||||||||||||||||||||||
Total comprehensive income for the year |
– | – | – | ( |
) | ( |
) | |||||||||||||||||||||||||||||
Dividends paid |
13 | – | – | – | – | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Issue of ordinary shares, net of expenses |
23 | – | – | – | – | – | ||||||||||||||||||||||||||||||
Repurchase of ordinary shares |
– | – | ( |
) | – | – | ( |
) | – | ( |
) | |||||||||||||||||||||||||
Increase in share based remuneration reserve (net of tax) |
– | – | – | – | – | |||||||||||||||||||||||||||||||
Settlement of share awards |
– | – | – | ( |
) | – | – | – | ||||||||||||||||||||||||||||
Acquisitions |
– |
– |
– |
– |
( |
) | – | |||||||||||||||||||||||||||||
Exchange differences on translation of capital and reserves |
– | – | – | – | – | – | ||||||||||||||||||||||||||||||
Balance at 1 January 2021 |
( |
) |
||||||||||||||||||||||||||||||||||
Total comprehensive income for the year |
– |
– |
– |
– |
||||||||||||||||||||||||||||||||
Dividends paid |
13 | – |
– |
– |
– |
( |
) |
( |
) |
( |
) |
( |
) | |||||||||||||||||||||||
Issue of ordinary shares, net of expenses |
23 | – |
– |
– |
– |
|||||||||||||||||||||||||||||||
Repurchase of ordinary shares |
– |
– |
( |
) |
– |
– |
( |
) |
– |
( |
) | |||||||||||||||||||||||||
Increase in share based remuneration reserve (net of tax) |
– |
– |
– |
– |
– |
|||||||||||||||||||||||||||||||
Settlement of share awards |
– |
– |
( |
) |
– |
– |
– |
|||||||||||||||||||||||||||||
Balance at 31 December 2021 |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||
RELX |
143 | |
◾ |
Acquired intangible assets: identification of separate intangible assets on acquisition (see note 14) |
◾ |
Capitalisation of development spend: assessing the potential value of a development project and determining the costs which are eligible for capitalisation (see note 14) |
144 | RELX Annual report and financial statements 2021 | Financial statements and other information | |
◾ |
Acquired intangible assets: determining future cashflows and discount rate used in valuation (see notes 14) |
◾ |
Taxation: the valuation of provisions related to uncertain tax positions (see note 9) |
◾ |
Defined benefit pension obligation: determining an appropriate rate at which the future pension payments are discounted, mortality and inflation assumptions (see note 6) |
Accounting policy The Group’s reported segments are based on the internal reporting structure and financial information provided to the Board. Adjusted operating profit is the key segmental profit measure used by the Group in assessing performance. Adjusted operating profit is reconciled to operating profit on page 193. Revenue arises from the provision of products and services under contracts with customers. In all cases, revenue is recognised to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, and is recognised when the customer obtains control of the goods or service. Revenue is stated at the transaction price, which includes allowance for anticipated discounts and returns and excludes customer sales taxes and other amounts to be collected on behalf of third-parties. Where the goods or services promised within a contract are distinct, they are identified as separate performance obligations and are accounted for separately. Where separate performance obligations are identified, total revenue is allocated on the basis of relative stand-alone selling prices or management’s best estimate of relative value where stand-alone selling prices do not exist. Management estimates may include a cost-plus method or comparable product approach, but must be supported by objective evidence. A residual approach may be applied where it is not possible to derive a reliable management estimate for a specific component. Our subscription and exhibition related revenue streams require payment in advance of the service being provided. Payment terms offered to customers are in line with the standard in the markets and geographies we operate in, and contracts do not contain significant financing components. Contracts for our transactional electronic revenue streams generally have payments that vary with volume of usage. Other than that, our contracts do not involve variable consideration. Revenue is recognised for the various categories as follows: ◾ Subscriptions – revenue comprises income derived from the periodic distribution or update of a product. Subscription revenue is generally invoiced in advance and recognised systematically over the period of the subscription. Recognition is either on a straight-line basis where the transaction involves the transfer of goods and services to the customer in a consistent manner over a specific period of time; or based on the value received by the customer where the goods and services are not delivered in a consistent manner◾ Transactional – revenue is recognised when control of the product is passed to the customer or the service has been performed. For exhibitions, revenue primarily comprises income from exhibitors and attendees at exhibitions. Exhibition revenue is recognised on occurrence of the exhibition |
RELX |
145 | |
ANALYSIS BY BUSINESS SEGMENT |
Revenue |
Adjusted operating profit |
||||||||||||||||||||||||
2021 £m |
2020 £m |
2019 £m |
2021 £m |
2020 £m |
2019 £m |
|||||||||||||||||||||
Risk |
||||||||||||||||||||||||||
Scientific, Technical & Medical |
||||||||||||||||||||||||||
Legal |
||||||||||||||||||||||||||
Exhibitions* |
( |
) | ||||||||||||||||||||||||
Sub-total |
||||||||||||||||||||||||||
Unallocated items** |
– |
– | – | ( |
) |
( |
) | ( |
) | |||||||||||||||||
Total |
* | Exceptional costs excluded from adjusted operating profit in 2020 are disclosed on page 147. |
** | Includes a £35m one-off charge relating to reductions in our corporate real estate footprint. |
2021 |
Risk |
Scientific, Technical & Medical |
Legal |
Exhibitions |
Total |
|||||||||||||||
Revenue by geographical market |
||||||||||||||||||||
North America |
||||||||||||||||||||
Europe* |
||||||||||||||||||||
Rest of world |
||||||||||||||||||||
Total revenue |
||||||||||||||||||||
Revenue by format |
||||||||||||||||||||
Electronic |
||||||||||||||||||||
Face-to-face |
||||||||||||||||||||
Print |
– |
|||||||||||||||||||
Total revenue |
||||||||||||||||||||
Revenue by type |
||||||||||||||||||||
Subscriptions |
– |
|||||||||||||||||||
Transactional |
||||||||||||||||||||
Total revenue |
* | Europe includes revenue of £ |
146 | RELX | |
2020 |
Risk | Scientific, Technical & Medical |
Legal | Exhibitions | Total | |||||||||||||||
Revenue by geographical market |
||||||||||||||||||||
North America |
||||||||||||||||||||
Europe |
||||||||||||||||||||
Rest of world |
||||||||||||||||||||
Total revenue |
||||||||||||||||||||
Revenue by format |
||||||||||||||||||||
Electronic |
||||||||||||||||||||
Face-to-face |
||||||||||||||||||||
Print |
– | |||||||||||||||||||
Total revenue |
||||||||||||||||||||
Revenue by type |
||||||||||||||||||||
Subscriptions |
– | |||||||||||||||||||
Transactional |
||||||||||||||||||||
Total revenue |
||||||||||||||||||||
2019 |
Risk | Scientific, Technical & Medical |
Legal | Exhibitions | Total | |||||||||||||||
Revenue by geographical market |
||||||||||||||||||||
North America |
||||||||||||||||||||
Europe |
||||||||||||||||||||
Rest of world |
||||||||||||||||||||
Total revenue |
||||||||||||||||||||
Revenue by format |
||||||||||||||||||||
Electronic |
||||||||||||||||||||
Face-to-face |
||||||||||||||||||||
Print |
– | |||||||||||||||||||
Total revenue |
||||||||||||||||||||
Revenue by type |
||||||||||||||||||||
Subscriptions |
– | |||||||||||||||||||
Transactional |
||||||||||||||||||||
Total revenue |
ANALYSIS OF REVENUE BY GEOGRAPHICAL ORIGIN |
2021 £m |
2020 £m |
2019 £m |
|||||||||
North America |
||||||||||||
Europe |
||||||||||||
Rest of world |
||||||||||||
Total |
RELX |
147 | |
ANALYSIS BY BUSINESS SEGMENT |
Expenditure on |
|||||||||||||||||||||||||||||||||||||||||||||||
acquired goodwill and |
Capital expenditure |
Amortisation of acquired |
Total depreciation and |
|||||||||||||||||||||||||||||||||||||||||||||
intangible assets |
additions |
intangible assets |
other amortisation |
|||||||||||||||||||||||||||||||||||||||||||||
2021 £m |
2020 £m |
2019 £m |
2021 £m |
2020 £m |
2019 £m |
2021 £m |
2020 £m |
2019 £m |
2021 £m |
2020 £m |
2019 £m |
|||||||||||||||||||||||||||||||||||||
Risk |
||||||||||||||||||||||||||||||||||||||||||||||||
Scientific, Technical & Medical |
||||||||||||||||||||||||||||||||||||||||||||||||
Legal |
– | |||||||||||||||||||||||||||||||||||||||||||||||
Exhibitions |
||||||||||||||||||||||||||||||||||||||||||||||||
Total |
|
|
|
|
|
|
|
|
ANALYSIS OF NON-CURRENT ASSETS BY GEOGRAPHICAL LOCATION |
2021 £m |
2020 £m |
2019 £m |
|||||||||
North America |
||||||||||||
Europe |
||||||||||||
Rest of world |
||||||||||||
Total |
RECONCILIATION OF OPERATING PROFIT TO ADJUSTED OPERATING PROFIT |
2021 £m |
2020 £m |
2019 £m |
|||||||||
Operating profit |
||||||||||||
Adjustments: |
||||||||||||
Amortisation of acquired intangible assets |
||||||||||||
Acquisition-related items |
( |
) | ||||||||||
Reclassification of tax in joint ventures |
||||||||||||
Reclassification of finance income in joint ventures |
– |
( |
) | ( |
) | |||||||
Exceptional costs in Exhibitions |
– |
– | ||||||||||
Adjusted operating profit |
148 | RELX | |
Note | 2021 £m |
2020 £m |
2019 £m |
|||||||||||||
Total staff costs |
5 | |||||||||||||||
Depreciation and amortisation |
||||||||||||||||
Amortisation of acquired intangible assets |
14 | |||||||||||||||
Share of joint ventures’ amortisation of acquired intangible assets |
||||||||||||||||
Amortisation of acquired intangible assets including joint ventures’ share |
||||||||||||||||
Amortisation of internally developed intangible assets |
14 | |||||||||||||||
Depreciation of property, plant and equipment |
16 | |||||||||||||||
Depreciation of right-of-use |
||||||||||||||||
Pre-publication amortisation |
||||||||||||||||
Total depreciation and other amortisation |
2 | |||||||||||||||
Total depreciation and amortisation (including amortisation of acquired intangibles) |
||||||||||||||||
Other expenses and income |
||||||||||||||||
Cost of sales including pre-publication costs and inventory expenses |
|
|||||||||||||||
Short-term and low value lease expenses |
||||||||||||||||
Operating lease rentals income |
( |
) |
( |
) | ( |
) |
2021 £m |
2020 £m |
2019 £m |
||||||||||
Auditor’s remuneration |
||||||||||||
Payable to the auditors of RELX PLC |
||||||||||||
Payable to the auditors of the Group’s subsidiaries |
||||||||||||
Audit services |
||||||||||||
Audit-related assurance services |
||||||||||||
Total audit and audit-related assurance services |
||||||||||||
Other services: due diligence and other transaction-related services |
||||||||||||
Total non-audit related services |
||||||||||||
Total auditor’s remuneration |
RELX |
149 | |
Accounting policy Share based remuneration The fair value of share based remuneration is determined at the date of grant and recognised as an expense in the income statement on a straight-line basis over the vesting period, taking account of the estimated number of shares that are expected to vest. Market based performance criteria are taken into account when determining the fair value at the date of grant. Non-market based performance criteria are taken into account when estimating the number of shares expected to vest. The fair value of share based remuneration is determined by use of a binomial or Monte Carlo simulation model as appropriate. All of the Group’s share based remuneration is equity settled. |
Note | 2021 £m |
2020 £m |
2019 £m |
|||||||||||||
Staff costs |
||||||||||||||||
Wages and salaries |
||||||||||||||||
Social security costs |
||||||||||||||||
Pensions |
6 | |||||||||||||||
Share based remuneration |
||||||||||||||||
Total staff costs |
|
|
NUMBER OF PEOPLE EMPLOYED: FULL-TIME EQUIVALENTS |
At 31 December |
Average during the year |
||||||||||||||||||||||||||
2021 |
2020 | 2019 | 2021 |
2020 | 2019 | |||||||||||||||||||||||
Business segment |
||||||||||||||||||||||||||||
Risk |
||||||||||||||||||||||||||||
Scientific, Technical & Medical |
||||||||||||||||||||||||||||
Legal |
||||||||||||||||||||||||||||
Exhibitions |
||||||||||||||||||||||||||||
Sub-total |
||||||||||||||||||||||||||||
Corporate/shared functions |
||||||||||||||||||||||||||||
Total |
||||||||||||||||||||||||||||
Geographical location |
||||||||||||||||||||||||||||
North America |
||||||||||||||||||||||||||||
Europe |
||||||||||||||||||||||||||||
Rest of world |
||||||||||||||||||||||||||||
Total |
|
|
|
|
150 | RELX | |
Accounting policy The expense of defined benefit pension schemes and other post-retirement employee benefits is determined using the projected unit credit method and charged in the income statement as an operating expense, based on actuarial assumptions reflecting market conditions at the beginning of the financial year. Actuarial gains and losses are recognised in full in the statement of comprehensive income in the period in which they occur. Past service costs and credits are recognised immediately at the earlier of when plan amendments or curtailments occur and when related restructuring costs or termination benefits are recognised. Settlements are recognised when they occur. Net pension obligations in respect of defined benefit schemes are included in the statement of financial position at the present value of scheme liabilities, less the fair value of scheme assets. Where schemes are in surplus, i.e. assets exceed liabilities, the net pension assets are separately included in the statement of financial position. Any net pension asset is limited to the extent that the asset is recoverable. The expense of defined contribution pension schemes and other employee benefits is charged in the income statement as incurred. Critical judgement and key source of estimation uncertainty At 31 December 2021, the Group operates defined benefit pension schemes in the UK and the US. These schemes require management to exercise judgement in estimating the ultimate cost of providing post-employment benefits, especially given the length of each scheme’s liabilities. Accounting for defined benefit pension schemes involves judgement and estimation about uncertain events, including the life expectancy of the members, inflation and the rate at which the future pension payments are discounted. Estimates for these factors are used in determining the pension cost and liabilities reported in the financial statements. The estimates made around future developments of each of the critical assumptions are made in conjunction with independent actuaries, and each scheme is subject to a periodic review by independent actuaries. The discount rate, inflation rate and mortality assumptions may have a material effect in determining the defined benefit pension obligation and cost which are reported in the financial statements. Information regarding the more significant assumptions used for valuation is provided below, together with a sensitivity analysis. |
RELX |
151 | |
2021 £m |
2020 £m |
2019 £m |
||||||||||
Defined benefit pension expense |
||||||||||||
Defined contribution pension expense |
||||||||||||
Total |
2021 |
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||
UK £m |
US £m |
Total £m |
UK £m |
US £m |
Total £m |
UK £m |
US £m |
Total £m |
||||||||||||||||||||||||||||||||||||
Service cost |
||||||||||||||||||||||||||||||||||||||||||||
Settlement and past service credits |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
Defined benefit pension expense |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||
Net interest on net defined benefit obligation |
||||||||||||||||||||||||||||||||||||||||||||
Net defined benefit pension expense |
|
( |
) | |
AS AT 31 DECEMBER |
2021 |
2020 | 2019 | |||||||||||||||||||||||||||||||||
UK |
US |
UK | US | UK | US | |||||||||||||||||||||||||||||||
Discount rate |
||||||||||||||||||||||||||||||||||||
Inflation |
AS AT 31 DECEMBER 2021 |
Male average life expectancy |
Female average life expectancy |
||||||||||||||
UK | US | UK | US | |||||||||||||
Member currently aged 60 years |
||||||||||||||||
Member currently aged 45 years |
152 | RELX | |
2021 |
2020 | |||||||||||||||||||||||||||||
UK £m |
US £m |
Total £m |
UK £m |
US £m |
Total £m |
|||||||||||||||||||||||||
Defined benefit obligation |
||||||||||||||||||||||||||||||
At start of year |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Service cost |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Past service credits |
||||||||||||||||||||||||||||||
Interest on pension scheme liabilities |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Actuarial gain/(loss) on financial assumptions |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Actuarial (loss)/gain arising from experience assumptions |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||
Contributions by employees |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||||
Benefits paid |
||||||||||||||||||||||||||||||
Exchange translation differences |
( |
) |
( |
) |
||||||||||||||||||||||||||
At end of year |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Fair value of scheme assets |
||||||||||||||||||||||||||||||
At start of year |
||||||||||||||||||||||||||||||
Interest income on plan assets |
||||||||||||||||||||||||||||||
Return on assets excluding amounts included in interest income |
( |
) |
||||||||||||||||||||||||||||
Contributions by employer |
||||||||||||||||||||||||||||||
Contributions by employees |
||||||||||||||||||||||||||||||
Benefits paid |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Exchange translation differences |
( |
) | ( |
) | ||||||||||||||||||||||||||
At end of year |
||||||||||||||||||||||||||||||
Opening net deficit |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Service cost |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Net interest on net defined benefit obligation |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Settlement and past service credits |
||||||||||||||||||||||||||||||
Contributions by employer |
||||||||||||||||||||||||||||||
Actuarial gains/(losses) |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||||||
Exchange translation differences |
( |
) | ( |
) | ||||||||||||||||||||||||||
Net pension obligation |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||||
Impact of asset ceiling |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||
Overall net pension obligation |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) |
2021 £m |
2020 £m |
|||||||
Net pension asset recognised |
||||||||
Net pension obligation |
( |
) |
( |
) | ||||
Overall net pension obligation |
( |
) |
( |
) |
RELX |
153 | |
2021 £m |
2020 £m |
2019 £m |
||||||||||
Gains and losses arising during the year: |
||||||||||||
Experience (losses)/gains on scheme liabilities |
( |
) |
||||||||||
Experience gains on scheme assets |
||||||||||||
Actuarial gains/(losses) on the present value of scheme liabilities due to changes in: |
||||||||||||
– discount rates |
( |
) | ( |
) | ||||||||
– inflation |
( |
) |
||||||||||
– other actuarial assumptions |
( |
) | ( |
) | ||||||||
( |
) | ( |
) | |||||||||
Net cumulative losses at start of year |
( |
) |
( |
) | ( |
) | ||||||
Net cumulative losses at end of year |
( |
) |
( |
) | ( |
) |
FAIR VALUE OF SCHEME ASSETS |
2021 |
2020 | ||||||||||||||||||||||||
UK £m |
US £m |
Total £m |
UK £m |
US £m |
Total £m |
|||||||||||||||||||||
Equities |
||||||||||||||||||||||||||
Liability matching assets |
||||||||||||||||||||||||||
Property funds and ground leases |
||||||||||||||||||||||||||
Direct lending |
||||||||||||||||||||||||||
Cash and cash equivalents |
||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||
Total |
£m |
||||
Increase/decrease of |
||||
Increase/decrease of |
||||
Increase/decrease of |
154 | RELX | |
Accounting policy Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial period of time to bring to use are capitalised. All other interest on borrowings is expensed as incurred. The cost of issuing borrowings is generally expensed over the period of borrowing so as to produce a constant periodic rate of charge. |
2021 £m |
2020 £m |
2019 £m |
||||||||||||||
Interest on short-term bank loans, overdrafts and commercial paper |
( |
) |
( |
) | ( |
) | ||||||||||
Interest on term debt |
( |
) |
( |
) | ( |
) | ||||||||||
Interest on lease liabilities |
( |
) |
( |
) | ( |
) | ||||||||||
Total borrowing costs |
( |
) |
( |
) | ( |
) | ||||||||||
Losses on loans and derivatives not designated as hedges |
( |
) |
( |
) | ||||||||||||
Net financing charge on defined benefit pension schemes and other |
( |
) |
( |
) | ( |
) | ||||||||||
Finance costs |
( |
) |
( |
) | ( |
) | ||||||||||
Interest on bank deposits |
||||||||||||||||
Interest income on net finance lease receivables |
||||||||||||||||
Fair value gains on designated fair value hedge relationships |
||||||||||||||||
Gains on loans and derivatives not designated as hedges |
||||||||||||||||
Finance income |
||||||||||||||||
Net finance costs |
( |
) |
( |
) | ( |
) |
Accounting policy Assets of businesses that are available for immediate sale in their current condition and for which a sales process is considered highly probable to complete are classified as assets held for sale and are carried at the lower of carrying value and fair value less costs to sell. Fair value is based on anticipated disposal proceeds, typically derived from firm or indicative offers from potential acquirers. Non-current assets are not amortised or depreciated following their classification as held for sale. Liabilities of businesses held for sale are also separately classified on the statement of financial position. Fair value movements in the venture capital portfolio are reported within disposals and other items – see note 15. |
2021 £m |
2020 £m |
2019 £m |
||||||||||
Revaluation of investments |
||||||||||||
Gain/(loss) on disposal of businesses and assets held for sale |
( |
) | ||||||||||
Net gain on disposals and other non-operating items |
RELX |
155 | |
Accounting policy Tax expense comprises current and deferred tax. Current and deferred tax are charged or credited in the income statement except to the extent that the tax arises from a transaction or event which is recognised, in the same or a different period, outside the income statement (either in other comprehensive income, directly in equity, or through a business combination), in which case the tax appears in the same statement as the transaction that gave rise to it. Current tax is the amount of corporate income taxes expected to be payable or recoverable based on the profit for the period as adjusted for items that are not taxable or not deductible, and is calculated using tax rates and laws that were enacted or substantively enacted at the date of the statement of financial position. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. Provisions are established where appropriate on the basis of amounts expected to be paid to the tax authorities. Current tax includes amounts provided in respect of uncertain tax positions when management expects that, upon examination of the uncertainty by a tax authority in possession of all relevant knowledge, it is more likely than not that an economic outflow will occur. Changes in facts and circumstances underlying these provisions are reassessed at the date of each statement of financial position, and the provisions are remeasured as required to reflect current information. Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the statement of financial position. Deferred tax is calculated using tax rates and laws that have been enacted or substantively enacted at the end of the reporting period, and which are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. Deferred tax liabilities are generally recognised for all taxable temporary differences but not recognised for taxable temporary differences arising on investments in subsidiaries, associates and joint ventures where the reversal of the temporary difference can be controlled and it is probable that the difference will not reverse in the foreseeable future. Deferred tax assets are recognised to the extent it is probable that taxable profits will be available against which the deductible temporary differences can be utilised, and are reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are not recognised in respect of temporary differences that arise on initial recognition of assets and liabilities acquired other than in a business combination. Deferred tax is not discounted. When the acquisition of an asset qualifies to be accounted for as a business combination, deferred tax is generally required to be recognised on the difference between the tax base and the book base of the assets and liabilities acquired and assumed. The assets acquired often include identifiable intangible assets as well as goodwill. In many jurisdictions, the manner in which a business combination is effected will impact the tax deductibility and therefore the deferred tax recognised in relation to such intangibles and goodwill. In an ‘asset acquisition’, where the buyer acquires the trade and assets of a business, there is often a tax deduction available for the amortisation of the identifiable intangible assets and sometimes for the goodwill. In this situation, deferred tax is recognised on the difference between the tax base and the book base of the assets. In a ‘share acquisition’, where the buyer acquires the share capital of a legal entity that continues to own the trade and assets, tax deductions for amortisation are usually not available. Intangibles which do not qualify for tax deductions therefore give rise to a deferred tax liability. However, deferred tax liabilities are not recognised on temporary differences that arise from goodwill where that is not deductible for tax purposes. Key source of estimation uncertainty The Group is subject to tax in numerous jurisdictions, giving rise to complex tax issues. As a multinational enterprise, our tax returns in the countries in which we operate are subject to tax authority audits as a matter of routine. While the Group is confident that tax returns are appropriately prepared and filed, amounts are provided in respect of uncertain tax positions that reflect the risk with respect to tax matters under active discussion with tax authorities, or which are otherwise considered to involve uncertainty. The valuation of provisions required in relation to uncertain tax positions involves estimation. Provisions against uncertain tax positions are measured using one of the following methods, depending on which of the methods management expects will better predict the amount it will pay over to the tax authority: ◾ The Single Best Estimate – where there is a single outcome that is more likely than not to occur. This will happen, for example, where the tax outcome is binary (such as whether an entity can deduct an item of expenditure) or the range of possible outcomes is narrow or concentrated on a single value. The most likely outcome may be that no tax is expected to be payable, in which case the provision is nil; or◾ A Probability-Weighted Expected Value – where, on the balance of probabilities, something will be paid to the tax authority but the possible outcomes are widely dispersed with low individual probabilities (i.e. there is no single outcome more likely than not to occur). In this case, the provision is the sum of the probability-weighted amounts in the range. |
156 | RELX | |
In assessing provisions against uncertain tax positions, management uses in-house tax experts, professional firms and previous experience to inform the evaluation of risk. However, it remains possible that uncertainties will ultimately be resolved at amounts greater or smaller than the liabilities recorded.In particular, although we report cross-border transactions undertaken between Group subsidiaries on an arm’s-length basis in tax returns in accordance with OECD guidelines, transfer pricing relies on the exercise of judgement and it is frequently possible for there to be a range of legitimate and reasonable views. This means that it is impossible to be certain that the returns basis will be sustained on examination. Discussions with tax authorities relating to cross-border transactions and other matters are ongoing in each of our major trading jurisdictions. Although the timing and amount of final resolution of these uncertain tax positions cannot be reliably predicted, no significant impact on the results of the Group is expected in the next year or foreseeable future.Estimation of income taxes also includes assessments of the recoverability of deferred tax assets. Deferred tax assets are only recognised to the extent that they are considered recoverable based on existing tax laws and forecasts of future taxable profits against which the underlying tax deductions can be utilised. The recoverability of these assets is reassessed at the end of each reporting period, and changes in recognition of deferred tax assets will affect the tax liability in the period of that reassessment. |
2021 £m |
2020 £m |
2019 £m |
||||||||||
Current tax |
||||||||||||
United Kingdom |
( |
) |
( |
) | ( |
) | ||||||
Rest of world |
( |
) |
( |
) | ( |
) | ||||||
Total current tax charge |
( |
) |
( |
) | ( |
) | ||||||
Deferred tax |
( |
) | ||||||||||
Tax expense |
( |
) |
( |
) | ( |
) |
◾ |
Tax payments relating to a particular year’s profits are typically due partly in the year and partly in the following year. In 2020 there was an acceleration of instalment payments in the UK. |
◾ |
Tax expense includes deferred tax, an accounting adjustment where an item is included in the income statement in one year but is taxed in another year. The acquisition of intangible assets often results in deferred tax liabilities, the unwind of which does not result in tax payments. |
◾ |
Current tax expense is the best estimate at the end of the period of cash tax expected to be paid. To the extent the final tax liability is different, any cash tax impact will occur in a later period. |
◾ |
Some of the benefits of tax deductions related to share based payments, pensions and hedging are credited to equity or other comprehensive income rather than to tax expense. |
2021 |
2020 | 2019 | ||||||||||||||||||||||||||
£m |
% |
£m | % | £m | % | |||||||||||||||||||||||
Profit before tax |
||||||||||||||||||||||||||||
Tax at average applicable rates |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||||
Tax effect of share of results of joint ventures |
( |
( |
( |
|||||||||||||||||||||||||
Income not taxable and expenses not deductible |
( |
( |
( |
) | ||||||||||||||||||||||||
Non-deductible costs of share based remuneration |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||||
Non-deductible disposal-related gains and losses |
( |
( |
) | ( |
||||||||||||||||||||||||
Deferred tax assets of the period not recognised |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||||
Change in recognition and measurement of deferred tax |
( |
( |
( |
|||||||||||||||||||||||||
Other adjustments in respect of prior periods |
( |
( |
( |
|||||||||||||||||||||||||
Tax expense |
( |
) |
( |
) | ( |
) |
RELX |
157 | |
2021 £m |
2020 £m |
2019 £m |
||||||||||
Tax on items that will not be reclassified to profit or loss |
||||||||||||
Tax on actuarial movements on defined benefit pension schemes |
( |
) |
||||||||||
Tax on items that may be reclassified to profit or loss |
||||||||||||
Tax on fair value movements on cash flow hedges |
( |
) |
( |
) | ( |
) | ||||||
Net tax (charge)/credit recognised in other comprehensive income |
( |
) |
||||||||||
Tax credit on share based remuneration recognised directly in equity |
2021 £m |
2020 £m |
|||||||||
Current tax assets |
||||||||||
Current tax liabilities |
( |
) |
( |
) | ||||||
Total |
( |
) |
( |
) |
2021 £m |
2020 £m |
|||||||||
Deferred tax assets |
||||||||||
Deferred tax liabilities |
( |
) |
( |
) | ||||||
Total |
( |
) |
( |
) |
158 | RELX | |
Deferred tax liabilities |
Deferred tax assets |
|||||||||||||||||||||||||||||||
Excess of tax allowances over amortisation of intangibles £m |
Acquired intangible assets £m |
Other temporary differences £m |
Excess of amortisation of intangibles over tax allowances £m |
Tax losses carried forward £m |
Pension balances £m |
Other temporary differences £m |
Total £m |
|||||||||||||||||||||||||
Deferred tax (liability)/asset at 1 January 2020 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Credit/(charge) to profit |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Credit/(charge) to equity/other comprehensive income |
– | – | – | – | – | ( |
) | |||||||||||||||||||||||||
Acquisitions |
– | ( |
) | – | – | – | ( |
) | ||||||||||||||||||||||||
Exchange translation differences |
( |
) | – | |||||||||||||||||||||||||||||
Deferred tax (liability)/asset at 1 January 2021 |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||
Credit/(charge) to profit |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||
(Charge)/credit to equity/other comprehensive income |
– |
– |
– |
– |
– |
( |
) |
( |
) | |||||||||||||||||||||||
Acquisitions |
– |
( |
) |
– |
– |
– |
– |
( |
) | |||||||||||||||||||||||
Exchange translation differences |
– |
( |
) |
( |
) |
( |
) |
( |
) |
– |
( |
) | ||||||||||||||||||||
Deferred tax (liability)/asset at 31 December 2021 |
( |
) |
( |
) |
( |
) |
( |
) |
Accounting policy Earnings per share (EPS) is calculated by taking the reported net profit attributable to shareholders and dividing this by the total weighted average number of shares. Adjusted earnings per share is calculated by dividing adjusted net profit attributable to RELX PLC shareholders by the total weighted average number of shares. |
RELX |
159 | |
EARNINGS PER SHARE – FOR THE YEAR ENDED 31 DECEMBER |
2021 |
2020 |
2019 |
|||||||||||||||||||||||||||||||||||||
Net profit attributable to RELX PLC shareholders £m |
Weighted average number of shares (millions) |
EPS (pence) |
Net profit attributable to RELX PLC shareholders £m |
Weighted average number of shares (millions) |
EPS (pence) |
Net profit attributable to RELX PLC shareholders £m |
Weighted average number of shares (millions) |
EPS (pence) |
||||||||||||||||||||||||||||||||
Basic earnings per share |
p |
p | p | |||||||||||||||||||||||||||||||||||||
Diluted earnings per share |
p |
p | p |
ADJUSTED EARNINGS PER SHARE |
2021 |
2020 |
2019 |
|||||||||||||||||||||||||||||||||||||
Adjusted net profit attributable to RELX PLC shareholders £m |
Weighted average number of shares (millions) |
Adjusted EPS (pence) |
Adjusted net profit attributable to RELX PLC shareholders £m |
Weighted average number of shares (millions) |
Adjusted EPS (pence) |
Adjusted net profit attributable to RELX PLC shareholders £m |
Weighted average number of shares (millions) |
Adjusted EPS (pence) |
||||||||||||||||||||||||||||||||
Adjusted earnings per share |
p |
p | p |
2021 |
Pre tax adjustment £m |
Tax on adjustment £m |
Total £m |
|||||||||
Net profit attributable to RELX PLC shareholders |
||||||||||||
Adjustments: |
||||||||||||
Amortisation of acquired intangible assets |
||||||||||||
Other deferred tax credits from intangible assets* |
– | ( |
) | ( |
) | |||||||
Acquisition-related items |
( |
) | ||||||||||
Net interest on net defined benefit pension obligation and other |
( |
) | ||||||||||
Disposals and other non-operating items |
( |
) | ( |
) | ||||||||
Adjusted net profit attributable to RELX PLC shareholders |
2020 |
Pre tax adjustment £m |
Tax on adjustment £m |
Total £m |
|||||||||
Net profit attributable to RELX PLC shareholders |
||||||||||||
Adjustments: |
||||||||||||
Amortisation of acquired intangible assets |
||||||||||||
Other deferred tax credits from intangible assets* |
– | ( |
) | ( |
) | |||||||
Acquisition-related items |
( |
) | ( |
) | ( |
) | ||||||
Net interest on net defined benefit pension obligation and other |
( |
) | ||||||||||
Disposals and other non-operating items |
( |
) | ( |
) | ||||||||
Exceptional costs in Exhibitions |
( |
) | ||||||||||
Adjusted net profit attributable to RELX PLC shareholders |
2019 |
Pre tax adjustment £m |
Tax on adjustment £m |
Total £m |
|||||||||
Net profit attributable to RELX PLC shareholders |
||||||||||||
Adjustments: |
||||||||||||
Amortisation of acquired intangible assets |
||||||||||||
Other deferred tax credits from intangible assets* |
– | ( |
) | ( |
) | |||||||
Acquisition-related items |
( |
) | ||||||||||
Net interest on net defined benefit pension obligation and other |
( |
) | ||||||||||
Disposals and other non-operating items |
( |
) | ( |
) | ||||||||
Adjusted net profit attributable to RELX PLC shareholders |
160 | RELX | |
Accounting policy Cash and cash equivalents comprise cash balances, call deposits and other short-term highly liquid investments and are held in the statement of financial position at fair value. |
RECONCILIATION OF OPERATING PROFIT TO CASH GENERATED FROM OPERATIONS |
2021 £m |
2020 £m |
2019 £m |
|||||||||||||
Operating profit |
||||||||||||||||
Share of results of joint ventures |
( |
) |
( |
) | ( |
) | ||||||||||
Amortisation of acquired intangible assets |
||||||||||||||||
Amortisation of internally developed intangible assets |
||||||||||||||||
Depreciation of property, plant and equipment |
||||||||||||||||
Depreciation of right-of-use |
||||||||||||||||
Share based remuneration |
||||||||||||||||
Total non-cash items |
||||||||||||||||
Increase in inventories and pre-publication costs* |
( |
) |
( |
) | ( |
) | ||||||||||
(Increase)/decrease in receivables |
( |
) |
( |
) | ||||||||||||
(Decrease)/increase in payables |
( |
) |
( |
) | ||||||||||||
Increase in working capital |
( |
) |
( |
) | ( |
) | ||||||||||
Cash generated from operations |
||||||||||||||||
* Includes amortisation of pre-publication costs of £ |
CASH FLOW ON ACQUISITIONS |
Note | 2021 £m |
2020 £m |
2019 £m |
||||||||||||
Purchase of businesses |
12 | ( |
) |
( |
) | ( |
) | |||||||||
Deferred payments relating to prior year acquisitions |
( |
) |
( |
) | ( |
) | ||||||||||
Total |
( |
) |
( |
) | ( |
) |
RECONCILIATION OF NET DEBT |
Cash and cash equivalents £m |
Debt £m |
Related derivative financial instruments £m |
Finance lease receivable £m |
2021 £m |
2020 £m |
2019 £m |
|||||||||||||||||||||
At start of year |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||
Increase/(decrease) in cash and cash equivalents |
( |
) | ||||||||||||||||||||||||||
Decrease/(increase) in short-term bank loans, overdrafts and commercial paper |
( |
) | ||||||||||||||||||||||||||
Issuance of term debt |
( |
) | ( |
) | ||||||||||||||||||||||||
Repayment of term debt |
||||||||||||||||||||||||||||
Repayment of leases |
( |
) |
||||||||||||||||||||||||||
Change in net debt resulting from cash flows |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||||
Borrowings in acquired businesses |
( |
) | ( |
) | ||||||||||||||||||||||||
Remeasurement and derecognition of leases |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||
Inception of leases |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||
Fair value and other adjustments to debt and related derivatives |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||||
Exchange translation differences |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||
At end of year |
( |
) |
( |
) |
( |
) | ( |
) |
RELX |
161 | |
Accounting policy Goodwill, being the excess of the consideration over the net tangible and intangible assets acquired, represents benefits which do not qualify for recognition as intangible assets, including: the ability of a business to generate higher returns than individual assets; skilled workforces; and acquisition synergies that are specific to the Group. In addition, goodwill arises on the recognition of deferred tax liabilities in respect of intangible assets for which amortisation does not qualify for tax deductions. |
Fair value 2021 £m |
Fair value 2020 £m |
Fair value 2019 £m |
||||||||||
Goodwill |
||||||||||||
Intangible assets |
||||||||||||
Property, plant and equipment |
||||||||||||
Non-current assets |
||||||||||||
Current assets |
||||||||||||
Current liabilities |
( |
) |
( |
) | ( |
) | ||||||
Borrowings |
( |
) | ( |
) | ||||||||
Deferred tax |
( |
) |
( |
) | ( |
) | ||||||
Net assets acquired |
||||||||||||
Consideration (after taking account of £ |
||||||||||||
Less: consideration deferred to future years |
( |
) |
( |
) | ( |
) | ||||||
Less: acquisition date fair value of equity interest |
( |
) | ||||||||||
Net cash flow |
ORDINARY DIVIDENDS PAID IN THE YEAR |
2021 £m |
2020 £m |
2019 £m |
|||||||||
RELX PLC |
162 | RELX | |
Accounting policy On acquisition of a subsidiary or business, the purchase consideration is allocated between the net tangible and intangible assets other than goodwill on a fair value basis, with any excess purchase consideration representing goodwill. Goodwill is carried at fair value as at the date of acquisition less impairment charges. Acquired intangible assets are carried at their fair value as at the date of acquisition less accumulated amortisation. On disposal of a subsidiary or business, the attributable amount of goodwill is included in the determination of profit or loss recognised in the income statement. Intangible assets acquired as part of business combinations comprise: market-related assets (e.g. trademarks, imprints, brands); customer-related assets (e.g. subscription bases, customer lists, customer relationships); editorial content; software and systems (e.g. application infrastructure, product delivery platforms, in-process research and development); and other intangible assets mainly comprising contract and rights related assets. Intangible assets, other than journal titles determined to have indefinite lives, are amortised on a straight-line basis over their estimated useful lives. The estimated useful lives of intangible assets with finite lives are: ◾ Market-related assets – ◾ Customer-related assets – ◾ Editorial content – ◾ Software and systems – ◾ Other – Journal titles determined to have indefinite lives are not amortised and are subject to impairment review at least annually, including a review of events and circumstances to ensure that they continue to support an indefinite useful life. Internally developed intangible assets typically comprise software and systems development where an identifiable asset is created that is probable to generate future economic benefits and are carried at cost less accumulated amortisation. Internally developed intangible assets are amortised on a straight line basis over their estimated useful lives of Impairment reviews Goodwill and acquired intangible assets with an indefinite life are allocated to cash generating units (CGUs) and tested for impairment test at least annually or when there is an indicator that the asset may be impaired. An impairment loss is recognised in the income statement in administration and other expenses to the extent the carrying value of goodwill exceeds its recoverable amount and not subsequently reversed. The recoverable amount is the higher of fair value less costs to sell and value in use. The carrying amounts of all other intangible assets are reviewed where there are indications of possible impairment. An impairment review involves a comparison of the carrying value of the asset with estimated values in use based on the latest management cash flow projections, approved by the Board. Key areas of judgement in estimating the values in use of businesses are the growth in cash flows over a forecast period of up to Critical judgements and key sources of estimation uncertainty Management judgement is required to identify intangible assets on acquisition. The valuation of acquired intangible assets represents the estimated economic value in use, using standard valuation methodologies, including as appropriate, discounted cash flow, relief from royalty and comparable market transactions. Estimates used in determining the future cash flows and discount rates used may have a material effect on the reported amounts of these intangible assets. The selection of appropriate amortisation periods for acquired intangible assets requires management to assess the longevity of the brands and imprints, the strength and stability of customer relationships, the market positions of the acquired assets and the technological and competitive risks that they face. Certain intangible assets in relation to acquired science and medical publishing businesses have been determined to have indefinite lives. The longevity of these assets is evidenced by their long-established and well-regarded journal titles, and their characteristically stable market positions. Development spend encompasses investment in new products and other initiatives, ranging from the building of online delivery platforms, to launch costs of new services, to building new infrastructure and applications. Launch costs and other ongoing operating expenses of new products and services are expensed as incurred. The costs of building product applications, platforms and infrastructure are capitalised as internally generated intangible assets, where the investment they represent has demonstrable value and the technical and commercial feasibility is assured. Costs eligible for capitalisation must be incremental, clearly identified and directly attributable to a particular project. The resulting assets are amortised over their estimated useful lives. Judgement is required in the assessment of the potential value of a development project, the identification of costs eligible for capitalisation and |
RELX |
163 | |
the selection of appropriate asset lives. Where indicators of impairment are identified, estimates relating to the future cash flows and discount rates used in calculating the value in use of the intangible asset may have a material effect on the reported amounts of intangible assets. The valuation of goodwill is no longer considered to be a key source of estimation uncertainty which could give rise to a risk of material misstatement given the consistent high level of headroom between the carrying amount of goodwill and recoverable amount of each CGU and no recent impairments being recorded. |
Goodwill |
Market related £m |
Customer related £m |
Editorial content £m |
Software and technology £m |
Other £m |
Total acquired intangible assets £m |
Total internally developed intangible assets £m |
Total intangible assets excluding goodwill £m |
||||||||||||||||||||||||||||
COST |
||||||||||||||||||||||||||||||||||||
As at 1 January 2020 |
|
|||||||||||||||||||||||||||||||||||
Acquisitions |
– | |||||||||||||||||||||||||||||||||||
Additions |
– | – | – | – | – | – | – | |||||||||||||||||||||||||||||
Disposals and other |
( |
) | – | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||
Exchange translation differences |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
At 1 January 2021 |
||||||||||||||||||||||||||||||||||||
Acquisitions |
– |
|||||||||||||||||||||||||||||||||||
Additions |
– |
– | – | – | – | – | – |
|||||||||||||||||||||||||||||
Disposals and other |
( |
) |
( |
) | ( |
) | – | ( |
) | ( |
) |
( |
) |
( |
) | |||||||||||||||||||||
Exchange translation differences |
( |
) | ( |
) |
( |
) | ||||||||||||||||||||||||||||||
At 31 December 2021 |
||||||||||||||||||||||||||||||||||||
ACCUMULATED AMORTISATION |
||||||||||||||||||||||||||||||||||||
As at 1 January 2020 |
– | |||||||||||||||||||||||||||||||||||
Charge for the year* |
– | |||||||||||||||||||||||||||||||||||
Disposals and other |
– | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||
Exchange translation differences |
– | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||
At 1 January 2021 |
– | |||||||||||||||||||||||||||||||||||
Charge for the year* |
– | |||||||||||||||||||||||||||||||||||
Disposals and other |
– | ( |
) | ( |
) | – | ( |
) | ( |
) |
( |
) |
( |
) | ||||||||||||||||||||||
Exchange translation differences |
– | ( |
) | ( |
) | ( |
) |
( |
) | |||||||||||||||||||||||||||
At 31 December 2021 |
– | |||||||||||||||||||||||||||||||||||
NET BOOK AMOUNT |
||||||||||||||||||||||||||||||||||||
At 31 December 2020 |
||||||||||||||||||||||||||||||||||||
At 31 December 2021 |
* | Includes impairments of acquired intangible assets of £ |
164 | RELX | |
GOODWILL |
2021 |
2020 | ||||||
Risk |
||||||||
Scientific, Technical & Medical |
||||||||
Legal |
||||||||
Exhibitions |
||||||||
Total |
KEY ASSUMPTIONS |
2021 |
2020 | ||||||||||||||||||
Pre-tax discount rate |
Nominal long-term market growth rate |
Pre-tax discount rate |
Nominal long-term market growth rate |
|||||||||||||||||
Risk |
||||||||||||||||||||
Scientific, Technical & Medical |
||||||||||||||||||||
Legal |
||||||||||||||||||||
Exhibitions |
RELX |
165 | |
Accounting policy Investments, other than investments in joint arrangements and associates, are stated in the statement of financial position at fair value. Changes in the fair value of investments held as part of the venture capital portfolio are reported in disposals and other non-operating items in the income statement. All items recognised in the income statement relating to investments, other than investments in joint arrangements and associates, are reported as disposals and other non-operating items.Venture capital investments and equity investments represent interests in listed and unlisted securities. The fair value of listed securities is based on quoted prices in active markets. The fair value of unlisted securities is based on management’s estimate of fair value based on standard valuation techniques, including market comparisons and discounts of future cash flows, having regard to maximising the use of observable inputs and adjusting for risk. Advice from valuation experts is used as appropriate. All joint arrangements are classified as joint ventures because the Group shares joint control and has rights to the net assets of the arrangements. Investments in joint ventures and associates are accounted for under the equity method and stated in the statement of financial position at cost as adjusted for post-acquisition changes in the Group’s share of net assets, less any impairment in value. |
2021 £m |
2020 £m |
|||||||
Investments in joint ventures |
||||||||
Venture capital investments |
||||||||
Total |
2021 £m |
2020 £m |
|||||||
At start of year |
||||||||
Share of results of joint ventures |
||||||||
Dividends received from joint ventures |
( |
) |
( |
) | ||||
Disposals |
( |
) |
||||||
Exchange translation differences |
( |
) |
||||||
At end of year |
RELX’s share |
||||||||
2021 £m |
2020 £m |
|||||||
Revenue |
||||||||
Net profit for the year |
||||||||
Total assets |
||||||||
Total liabilities |
( |
) |
( |
) | ||||
Net assets |
||||||||
Goodwill |
||||||||
Total |
166 | RELX | |
Accounting policy Property, plant and equipment are stated in the statement of financial position at cost less accumulated depreciation. No depreciation is provided on freehold land. Freehold buildings and long leaseholds are depreciated over their estimated useful lives up to a maximum of – land and buildings: land – not depreciated; leasehold improvements – – fixtures and equipment: plant – |
2021 |
2020 | |||||||||||||||||||||||||||||||
Land and buildings £m |
Fixtures and equipment £m |
Total £m |
Land and buildings £m |
Fixtures and equipment £m |
Total £m |
|||||||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||||||
At start of year |
||||||||||||||||||||||||||||||||
Acquisitions |
||||||||||||||||||||||||||||||||
Capital expenditure |
||||||||||||||||||||||||||||||||
Disposals |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Exchange translation differences |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||
At end of year |
||||||||||||||||||||||||||||||||
Accumulated depreciation |
||||||||||||||||||||||||||||||||
At start of year |
||||||||||||||||||||||||||||||||
Charge for the year |
||||||||||||||||||||||||||||||||
Disposals |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Exchange translation differences |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||
At end of year |
||||||||||||||||||||||||||||||||
Net book amount |
56 |
75 |
63 | 99 |
RELX |
167 | |
Accounting policy Financial instruments comprise investments (other than investments in joint ventures or associates), trade receivables, cash and cash equivalents, payables and accruals, borrowings and derivative financial instruments. Investments (other than investments in joint ventures and associates) are described in note 15. The fair value of such investments is based on standard valuation techniques, including market comparisons and discounts of future cash flows, having regard to maximising the use of observable inputs and adjusting for risk. (These investments are typically classified as either Level 2 or 3 in the IFRS 13 fair value hierarchy). Trade receivables are carried in the statement of financial position at invoiced value less allowance for expected credit losses. Expected credit losses are based on the ageing of trade receivables, experience and circumstance. Borrowings and payables are recorded initially at fair value and subsequently carried at amortised cost (other than fixed rate borrowings in designated hedging relationships for which the carrying amount of the hedged portion of the borrowings is subsequently adjusted for the gain or loss attributable to the hedged risk). Derivative financial instruments are used to hedge interest rate and foreign exchange risks. Where an effective hedge is in place against changes in the fair value of fixed rate borrowings, the hedged borrowings are adjusted for changes in fair value attributable to the risk being hedged with a corresponding income or expense included in the income statement within finance costs. The offsetting gains or losses from remeasuring the fair value of the related derivatives are also recognised in the income statement within finance costs. When the related derivative expires, is sold or terminated, or no longer qualifies for hedge accounting, the cumulative change in fair value of the hedged borrowing is amortised in the income statement over the period to maturity of the borrowing using the effective interest method. Changes in the fair value of derivative financial instruments that are designated and effective as hedges of future cash flows are recognised (net of tax) in other comprehensive income and accumulated in the hedge reserve. The fair value amounts relating to foreign currency basis spreads are recorded in a separate component of equity in the cost of hedging reserve. If a hedged firm commitment or forecasted transaction results in the recognition of a non-financial asset or liability, then, at the time that the asset or liability is recognised, the associated gains or losses on the derivative that had previously been recognised in other comprehensive income are included in the initial measurement of the asset or liability. For hedges that do not result in the recognition of an asset or a liability, amounts deferred in the hedge reserve are recognised in the income statement in the same period in which the hedged item affects net profit or loss. Any ineffective portion of hedges is recognised immediately in the income statement.Cash flow hedge accounting is discontinued when a hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in other comprehensive income is either retained in the hedge reserve until the firm commitment or forecasted transaction occurs, or, where a hedged transaction is no longer expected to occur, is immediately credited or expensed in the income statement. Derivative financial instruments that are not designated as hedging instruments are recorded in the statement of financial position at fair value, with changes in fair value recognised in the income statement. The fair values of derivative financial instruments represent the replacement costs calculated using observable market rates of interest and exchange. The fair value of long-term borrowings is calculated by discounting expected future cash flows at observable market rates. (These instruments are accordingly classified as Level 2 in the IFRS 13 fair value hierarchy.) |
168 | RELX | |
AT 31 DECEMBER 2021 |
Contractual cash flow |
|||||||||||||||||||||||||||||||
Carrying amount £m |
Within 1 year £m |
1-2 years £m |
2-3 years £m |
3-4 years £m |
4-5 years £m |
More than 5 years £m |
Total £m |
|||||||||||||||||||||||||
Borrowings |
||||||||||||||||||||||||||||||||
Fixed rate borrowings |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||
Floating rate borrowings |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||
Lease liabilities |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||
Derivative financial liabilities |
||||||||||||||||||||||||||||||||
Interest rate derivatives |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||
Cross-currency interest rate swaps |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||
Forward foreign exchange contracts |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||
Derivative financial assets |
||||||||||||||||||||||||||||||||
Interest rate derivatives |
||||||||||||||||||||||||||||||||
Cross-currency interest rate swaps |
||||||||||||||||||||||||||||||||
Forward foreign exchange contracts |
||||||||||||||||||||||||||||||||
Total |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
AT 31 DECEMBER 2020 |
Contractual cash flow | |||||||||||||||||||||||||||||||
Carrying amount £m |
Within 1 year £m |
1-2 years £m |
2-3 years £m |
3-4 years £m |
4-5 years £m |
More than 5 years £m |
Total £m |
|||||||||||||||||||||||||
Borrowings |
||||||||||||||||||||||||||||||||
Fixed rate borrowings |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Floating rate borrowings |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Lease liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Derivative financial liabilities |
||||||||||||||||||||||||||||||||
Cross-currency interest rate swaps |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Forward foreign exchange contracts |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Derivative financial assets |
||||||||||||||||||||||||||||||||
Interest rate derivatives |
||||||||||||||||||||||||||||||||
Cross-currency interest rate swaps |
||||||||||||||||||||||||||||||||
Forward foreign exchange contracts |
||||||||||||||||||||||||||||||||
Total |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
RELX |
169 | |
170 | RELX | |
FAIR VALUE HEDGE RELATIONSHIPS |
31 December 2021 Principal amount £m |
31 December 2020 Principal amount £m |
Fixed rate | Floating rate | ||||||||||
€ 500m bond and € 500m interest rate swaps maturing 2021 |
( |
) | ||||||||||||
$700m bond and $700m interest rate swaps maturing 2023 |
( |
) |
( |
) | ||||||||||
€ 500m bond and € 500m interest rate swaps maturing 2024 |
( |
) |
( |
) | ||||||||||
€ 600m bond and € 600m/$669.3m cross-currency interest rate swaps maturing 2025 |
( |
) |
( |
) | ||||||||||
$200m bond and $200m interest rate swaps maturing 2027 |
( |
) |
( |
) | ||||||||||
$750m bond and $750m interest rate swaps maturing 2030 |
( |
) |
||||||||||||
( |
) |
( |
) |
RELX |
171 | |
GAINS/(LOSSES) ON BORROWINGS AND RELATED DERIVATIVES AND CARRYING VALUES |
1 January 2021 £m |
Fair value movement gain/(loss) £m |
Exchange gain/(loss) £m |
31 December 2021 £m |
Carrying values £m |
|||||||||||||||||||
USD debt |
( |
) |
( |
) |
( |
) | ||||||||||||||||||
Related interest rate swaps |
( |
) |
||||||||||||||||||||||
( |
) | |||||||||||||||||||||||
EUR debt |
( |
) |
( |
) |
( |
) | ||||||||||||||||||
Related interest rate swaps |
( |
) |
( |
) |
||||||||||||||||||||
( |
) | |||||||||||||||||||||||
Total relating to USD and EUR debt |
( |
) |
( |
) |
( |
) | ||||||||||||||||||
Total related interest rate swaps |
( |
) |
( |
) |
||||||||||||||||||||
Net gain on borrowings and related derivatives/total carrying value |
( |
) | ||||||||||||||||||||||
GAINS/(LOSSES) ON BORROWINGS AND RELATED DERIVATIVES AND CARRYING VALUES |
1 January 2020 £m |
Fair value movement gain/(loss) £m |
Exchange gain/(loss) £m |
31 December 2020 £m |
Carrying values £m |
|||||||||||||||||||
USD debt |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Related interest rate swaps |
( |
) | ||||||||||||||||||||||
( |
) | |||||||||||||||||||||||
EUR debt |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Related interest rate swaps |
( |
) | ||||||||||||||||||||||
( |
) | |||||||||||||||||||||||
Total relating to USD and EUR debt |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Total related interest rate swaps |
( |
) | ||||||||||||||||||||||
Net gain on borrowings and related derivatives/total carrying value |
( |
) | ||||||||||||||||||||||
GAINS/(LOSSES) ON BORROWINGS AND RELATED DERIVATIVES AND CARRYING VALUES |
1 January 2019 £m |
Fair value movement gain/(loss) £m |
Exchange gain/(loss) £m |
31 December 2019 £m |
Carrying values £m |
|||||||||||||||||||
USD debt |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Related interest rate swaps |
( |
) | ||||||||||||||||||||||
( |
) | ( |
) | |||||||||||||||||||||
EUR debt |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Related interest rate swaps |
( |
) | ||||||||||||||||||||||
( |
) | |||||||||||||||||||||||
Total relating to USD and EUR debt |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Total related interest rate swaps |
( |
) | ||||||||||||||||||||||
Net (loss)/gain on borrowings and related derivatives/total carrying value |
( |
) | ( |
) |
172 | RELX | |
Interest rate hedge reserve £m |
Cost of hedging reserve £m |
Foreign currency hedge reserve £m |
Total £m |
|||||||||||||
Hedge reserve at 31 December 2019: (losses) /gains deferred |
( |
) | ||||||||||||||
Gains/(losses) arising in 2020 |
( |
) | ( |
) | ( |
) | ||||||||||
Amounts recognised in income statement |
||||||||||||||||
Hedge reserve at 31 December 2020: gains/(losses) deferred |
( |
) | ||||||||||||||
(Losses)/gains arising in 2021 |
( |
) | ||||||||||||||
Amounts recognised in income statement |
( |
) |
( |
) | ||||||||||||
Hedge reserve at 31 December 2021: gains/(losses) deferred |
( |
) |
Foreign currency hedge reserve £m |
Principal amount of hedges £m |
Carrying values £m |
||||||||||
2022 |
||||||||||||
2023 |
||||||||||||
2024 |
||||||||||||
2025 |
||||||||||||
Total |
RELX |
173 | |
Accounting policy Inventories and pre-publication costs are stated at the lower of cost, including appropriate attributable overhead, and estimated net realisable value. Such costs typically comprise direct internal labour costs and externally commissioned editorial and other fees.Pre-publication costs, representing costs incurred in the origination of content prior to publication, are expensed systematically reflecting the expected sales profile over the estimated economic lives of the related products, generally up to five years.Annual reviews are carried out to assess the recoverability of carrying amounts. |
2021 £m |
2020 £m | |||||||
Raw materials |
||||||||
Pre-publication costs |
||||||||
Finished goods |
||||||||
Total |
Accounting policy Trade receivables are stated net of a loss allowance for expected credit losses. |
2021 £m |
2020 £m | |||||||
Trade receivables |
||||||||
Loss allowance |
( |
) |
( |
) | ||||
Prepayments and accrued income |
||||||||
Current tax receivable |
||||||||
Net finance lease receivable |
||||||||
Total |
2021 £m |
2020 £m | |||||||
At start of year |
||||||||
Charge for the year |
||||||||
Trade receivables written off |
( |
) |
( |
|||||
Exchange translation differences |
( |
) |
||||||
At end of year |
174 | RELX | |
Accounting policy Deferred income is recognised when either a customer has paid consideration, or RELX has an unconditional right to an amount of consideration, in advance of the goods and services being delivered. |
2021 £m |
2020 £m | |||||||||||
Trade payables |
||||||||||||
Accruals |
||||||||||||
Social security and other taxes |
||||||||||||
Other payables |
||||||||||||
Deferred income |
||||||||||||
Total |
Accounting policy Borrowings are recorded initially at fair value and subsequently carried at amortised cost, other than fixed rate borrowings in designated hedging relationships for which the carrying amount of the hedged portion of the borrowings is subsequently adjusted for the gain or loss attributable to the hedged risk. When the related derivative in such a hedging relationship expires, is sold or terminated, or no longer qualifies for hedge accounting, the cumulative change in fair value of the hedged borrowing is amortised in the income statement over the period to maturity of the borrowing using the effective interest method. |
2021 |
2020 | |||||||||||||||||||||||||
Falling due within 1 year £m |
Falling due in more than 1 year £m |
Total £m |
Falling due within 1 year £m |
Falling due in more than 1 year £m |
Total £m |
|||||||||||||||||||||
Financial liabilities measured at amortised cost: |
||||||||||||||||||||||||||
Short-term bank loans, overdrafts and commercial paper |
– |
– | ||||||||||||||||||||||||
Term debt |
– | |||||||||||||||||||||||||
Lease liabilities |
||||||||||||||||||||||||||
Term debt in fair value hedging relationships |
– |
|||||||||||||||||||||||||
Term debt previously in fair value hedging relationships |
– |
– | ||||||||||||||||||||||||
Total |
|
RELX |
175 | |
2021 |
2020 | |||||||||||||||||||||||||||||||||
Short-term bank loans, overdrafts and commercial paper £m |
Term debt £m |
Lease liabilities £m |
Total £m |
Short-term bank loans, overdrafts and commercial paper £m |
Term debt £m |
Lease liabilities £m |
Total £m |
|||||||||||||||||||||||||||
Within 1 year |
||||||||||||||||||||||||||||||||||
Within 1 to 2 years |
– |
– | ||||||||||||||||||||||||||||||||
Within 2 to 3 years |
– |
– | ||||||||||||||||||||||||||||||||
Within 3 to 4 years |
– |
– | ||||||||||||||||||||||||||||||||
Within 4 to 5 years |
– |
– | ||||||||||||||||||||||||||||||||
After 5 years |
– |
– | ||||||||||||||||||||||||||||||||
After 1 year |
– |
– | ||||||||||||||||||||||||||||||||
Total |
2021 |
2020 | |||||||||||||||||||||||||||||||||||
Short-term bank loans, overdrafts and commercial paper £m |
Term debt £m |
Lease liabilities £m |
Total £m |
Short-term bank loans, overdrafts and commercial paper £m |
Term debt £m |
Lease liabilities £m |
Total £m |
|||||||||||||||||||||||||||||
US dollar |
||||||||||||||||||||||||||||||||||||
Pound sterling |
– |
– |
– | |||||||||||||||||||||||||||||||||
Euro |
||||||||||||||||||||||||||||||||||||
Other currencies |
– |
– | ||||||||||||||||||||||||||||||||||
Total |
176 | RELX | |
Accounting policy All leases where RELX is the lessee (with the exception of short-term and low-value leases) are recognised in the statement of financial position. A lease liability is recognised based on the present value of the future lease payments, and a corresponding right-of-use right-of-use Low-value items and short-term leases with a term of 12 months or less are not required to be recognised on the balance sheet and payments made in relation to these leases are recognised on a straight-line basis in the income statement.The leases held by the Group can be split into two categories: property and non-property. The Group leases various properties, principally offices, which have varying terms and renewal rights that are typical to the territory in which they are located. Non-property includes all other leases, such as cars and printers. |
2021 £m |
2020 £m |
|||||||
At start of year |
||||||||
Additions |
||||||||
Acquisitions |
||||||||
Remeasurement |
||||||||
Disposals |
( |
) |
( |
) | ||||
Depreciation |
( |
) |
( |
) | ||||
Impairment* |
( |
) |
( |
) | ||||
Exchange translation differences |
( |
) |
||||||
At end of year |
2021 £m |
2020 £m |
|||||||
Current |
||||||||
Property |
( |
) |
( |
) | ||||
Non-property |
( |
) |
( |
) | ||||
Non-current |
||||||||
Property |
( |
) |
( |
) | ||||
Non-property |
( |
) |
( |
) | ||||
Total |
( |
) |
( |
) |
2021 £m |
2020 £m |
|||||||
Net finance lease receivable |
RELX |
177 | |
Accounting policy Shares of RELX PLC that are repurchased and not cancelled are classified as shares held in treasury. The consideration paid, including directly attributable costs, is recognised as a deduction from equity. Shares of RELX PLC that are purchased by the Employee Benefit Trust are also classified as shares held in treasury, with the cost recognised as a deduction from equity. |
CALLED UP SHARE CAPITAL – ISSUED AND FULLY PAID |
No. of shares |
2021 £m |
No. of shares | 2020 £m |
||||||||||||
At start of year |
||||||||||||||||
Issue of ordinary shares |
||||||||||||||||
At end of year |
|
|
NUMBER OF ORDINARY SHARES |
Year ended 31 December |
|||||||||||||||
Shares in issue (millions) |
Treasury shares (millions) |
2021 Shares in issue net of treasury shares* (millions) |
2020 Shares in issue net of treasury shares* (millions) |
|||||||||||||
RELX PLC |
||||||||||||||||
At start of year |
( |
) |
||||||||||||||
Issue of ordinary shares |
||||||||||||||||
Repurchase of ordinary shares |
( |
) | ||||||||||||||
Net release of shares by the Employee Benefit Trust |
||||||||||||||||
At end of year |
( |
) |
* | At 31 December 2021 the total shares in issue net of treasury shares is |
178 | RELX | |
Hedge reserve 2021 £m |
Other reserves 2021 £m |
Total 2021 £m |
Total 2020 £m |
|||||||||||||
At start of year |
||||||||||||||||
Profit attributable to RELX PLC shareholders |
||||||||||||||||
Dividends paid |
( |
) |
( |
) |
( |
) | ||||||||||
Actuarial losses on defined benefit pension schemes |
( |
) | ||||||||||||||
Fair value movements on cash flow hedges |
( |
) | ||||||||||||||
Transfer to net profit from cash flow hedge reserve |
( |
) |
( |
) |
||||||||||||
Tax recognised in other comprehensive income |
( |
) |
( |
) |
( |
) |
||||||||||
Increase in share based remuneration reserve (net of tax) |
||||||||||||||||
Settlement of share awards |
( |
) |
( |
) |
( |
) | ||||||||||
Acquisitions |
||||||||||||||||
At end of year |
|
KEY MANAGEMENT PERSONNEL REMUNERATION |
2021 £m |
2020 £m |
2019 £m |
|||||||||
Salaries, other short-term employee benefits and non-executive fees |
||||||||||||
Post-employment benefits |
||||||||||||
Share based remuneration* |
||||||||||||
Total |
EXECUTIVE DIRECTORS |
Salary £’000 |
Benefits £’000 |
Annual incentive £’000 |
Share based remuneration* £’000 |
Pension* £’000 |
Total £’000 |
||||||||||||||||||||||||||||||||||||||||||||||
Total Executive Directors |
2021 |
|||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
* | The figures for share based awards are calculated in accordance with the methodology set out in the UK Regulations. The figure for performance-related share based awards includes share price appreciation since the date the award was granted. Please see page 102 for further details. Pension is calculated in accordance with the methodology set out in the UK Regulations. |
RELX |
179 | |
NON-EXECUTIVE DIRECTORS |
2021 £’000 |
2020 £’000 |
2019 £’000 |
|||||||||
Fees and benefits |
Income statement |
Statement of financial position |
|||||||||||||||||||||||
2021 |
2020 | 2019 | 2021 |
2020 | ||||||||||||||||||||
Euro to sterling |
||||||||||||||||||||||||
US dollar to sterling |
180 | RELX | |
Company name |
Share class |
Reg office |
||||
Australia | ||||||
Preference | AUS2 | |||||
Ordinary | AUS1 | |||||
Ordinary | AUS2 | |||||
Ordinary | AUS2 | |||||
Ordinary | AUS2 | |||||
Ordinary | AUS2 | |||||
Austria | ||||||
Ordinary | AUT2 | |||||
Ordinary | AUT2 | |||||
Ordinary | AUT1 | |||||
Ordinary | AUT3 | |||||
Ordinary | AUT1 | |||||
Ordinary | AUT3 | |||||
Ordinary | AUT4 | |||||
Belgium | ||||||
Ordinary | BEL1 | |||||
Brazil | ||||||
Quotas | BRA1 | |||||
Quotas | BRA2 | |||||
Quotas | BRA6 | |||||
Quotas | BRA7 | |||||
Quotas | BRA4 | |||||
Quotas | BRA3 | |||||
Quotas | BRA5 | |||||
Canada | ||||||
Common | CAN3 | |||||
Class A | CAN1 | |||||
Common | CAN2 | |||||
China | ||||||
Ordinary | CHN1 | |||||
Common | CHN2 | |||||
C-One Energy (Guangzhou) Co., Ltd |
Ordinary | CHN5 | ||||
Ordinary | CHN6 | |||||
Ordinary | CHN18 | |||||
Ordinary | CHN15 | |||||
Common | CHN7 | |||||
Ordinary | CHN13 | |||||
Common | CHN3 | |||||
Ordinary | CHN4 | |||||
Ordinary | CHN12 | |||||
Ordinary | CHN10 | |||||
Ordinary | CHN4 | |||||
Ordinary | CHN16 | |||||
Ordinary | CHN4 | |||||
Ordinary | CHN8 | |||||
Ordinary | CHN4 | |||||
Ordinary | CHN9 | |||||
Ordinary | CHN17 | |||||
Ordinary | CHN11 | |||||
Ordinary | CHN14 | |||||
Colombia | ||||||
Ordinary | COL1 | |||||
Denmark | ||||||
Ordinary | DNK1 | |||||
Dubai, UAE | ||||||
Z-LLC |
Ordinary | UAE1 | ||||
FZ-LLC |
Ordinary | UAE2 | ||||
Egypt | ||||||
Ordinary | EGY1 | |||||
France | ||||||
Ordinary | FRA9 | |||||
Ordinary | FRA1 | |||||
Ordinary | FRA1 | |||||
Ordinary | FRA2 | |||||
Ordinary | FRA8 | |||||
Ordinary | FRA3 | |||||
Ordinary | FRA3 |
Company name |
Share class |
Reg office |
||||
Registered Capital | FRA4 | |||||
Ordinary | FRA3 | |||||
Ordinary | FRA5 | |||||
Ordinary | FRA3 | |||||
Ordinary | FRA3 | |||||
Ordinary | FRA6 | |||||
Ordinary | FRA6 | |||||
Ordinary | FRA8 | |||||
Ordinary | FRA4 | |||||
Ordinary | FRA7 | |||||
Germany | ||||||
Ordinary | DEU3 | |||||
Ordinary | DEU2 | |||||
Ordinary | DEU4 | |||||
Ordinary | DEU6 | |||||
Ordinary | DEU1 | |||||
Ordinary | DEU1 | |||||
Ordinary | DEU5 | |||||
Greece | ||||||
Ordinary | GRE1 | |||||
Hong Kong | ||||||
Ordinary | HNK1 | |||||
Ordinary | HNK5 | |||||
Ordinary | HNK3 | |||||
Ordinary | HNK2 | |||||
Ordinary | HNK5 | |||||
Ordinary | HNK4 | |||||
India | ||||||
Ordinary | IND2 | |||||
Ordinary | IND1 | |||||
Ordinary | IND3 | |||||
Ordinary | IND1 | |||||
Ordinary | IND1 | |||||
Ordinary | IND4 | |||||
Ordinary | IND1 | |||||
Indonesia | ||||||
Class A | IDN1 | |||||
Class B | ||||||
Ordinary | IDN2 | |||||
Ireland | ||||||
Ordinary | IRL2 | |||||
Ordinary | IRL1 | |||||
Ordinary | IRL1 | |||||
Ordinary | IRL3 | |||||
Ordinary | IRL3 | |||||
Israel | ||||||
Ordinary | ISR1 | |||||
Italy | ||||||
Registered Capital | ITA1 | |||||
Ordinary | ITA2 | |||||
Ordinary | ITA1 | |||||
Ordinary | ITA1 | |||||
Japan | ||||||
Ordinary | JPN1 | |||||
Ordinary | JPN2 | |||||
Ordinary | JPN2 | |||||
Common Shares | JPN4 | |||||
Ordinary | JPN3 | |||||
Ordinary | JPN3 | |||||
Korea (Republic of) | ||||||
Ordinary | KOR1 | |||||
Ordinary | KOR2 | |||||
Ordinary | KOR3 | |||||
Ordinary | KOR4 | |||||
Ordinary | KOR3 | |||||
Macau | ||||||
Ordinary | MAC1 | |||||
Malaysia | ||||||
Ordinary | MYS1 |
RELX |
181 | |
Company name |
Share class |
Reg office |
||||
Mexico | ||||||
Ordinary | MEX2 | |||||
Ordinary | MEX1 | |||||
Fixed | MEX3 | |||||
New Zealand | ||||||
Ordinary | NZL1 | |||||
Philippines | ||||||
Common Shares | PHL1 | |||||
Poland | ||||||
Ordinary | POL1 | |||||
Ordinary | POL2 | |||||
Russia | ||||||
Participation Shares | RUS1 | |||||
Ordinary | RUS1 | |||||
Participation Shares | RUS1 | |||||
Participation Shares | RUS1 | |||||
Ordinary | RUS2 | |||||
Singapore | ||||||
Ordinary | SGP1 | |||||
Ordinary | SGP5 | |||||
Ordinary-B |
SGP2 | |||||
Preference shares | ||||||
Ordinary | SGP3 | |||||
Ordinary | SGP1 | |||||
Ordinary | SGP2 | |||||
South Africa | ||||||
Ordinary | ZAF1 | |||||
Ordinary | ZAF2 | |||||
Ordinary | ZAF2 | |||||
Ordinary | ZAF2 | |||||
Ordinary | ZAF2 | |||||
Ordinary | ZAF2 | |||||
Ordinary | ZAF2 | |||||
Ordinary | ZAF2 | |||||
Ordinary | ZAF2 | |||||
Spain | ||||||
Participations | ESP1 | |||||
Switzerland | ||||||
Ordinary | CHE2 | |||||
Ordinary | CHE1 | |||||
Taiwan | ||||||
Ordinary | TWN1 | |||||
Thailand | ||||||
Ordinary Preference | THA1 | |||||
Ordinary | THA2 | |||||
Ordinary | THA3 | |||||
The Netherlands | ||||||
Partnership Interest | NLD1 | |||||
Ordinary | NLD1 | |||||
Ordinary | NLD1 | |||||
Ordinary | NLD1 | |||||
Ordinary | NLD2 | |||||
Ordinary | NLD1 | |||||
Ordinary | NLD3 | |||||
Ordinary | NLD4 | |||||
Ordinary | NLD1 | |||||
Ordinary | NLD1 | |||||
Ordinary | NLD1 | |||||
Ordinary | NLD1 | |||||
Ordinary RE | NLD1 | |||||
Turkey | ||||||
Ordinary | TUR1 | |||||
Registered Capital | TUR 3 | |||||
A Ordinary | TUR2 | |||||
B Ordinary | ||||||
United Kingdom | ||||||
Ordinary | GBR3 | |||||
Ordinary | GBR4 |
Company name |
Share class |
Reg office |
||||
Ordinary | GBR4 | |||||
Ordinary | GBR4 | |||||
Ordinary | GBR5 | |||||
Ordinary | GBR3 | |||||
Ordinary | GBR3 | |||||
No Shares | GBR3 | |||||
Ordinary | GBR7 | |||||
Ordinary | GBR7 | |||||
Ordinary | GBR5 | |||||
Ordinary | GBR3 | |||||
A Ordinary, | GBR2 | |||||
B Ordinary | ||||||
Ordinary | GBR3 | |||||
Ordinary | GBR8 | |||||
Ordinary | GBR5 | |||||
Ordinary | GBR1 | |||||
Ordinary | GBR2 | |||||
Ordinary | GBR3 | |||||
Ordinary | GBR3 | |||||
Ordinary | GBR3 | |||||
Ordinary | GBR3 | |||||
Ordinary | GBR7 | |||||
Ordinary | GBR4 | |||||
Ordinary | GBR12 | |||||
Ordinary | GBR3 | |||||
Partnership Interest | GBR3 | |||||
Ordinary | GBR3 | |||||
Ordinary | GBR10 | |||||
Ordinary | GBR1 | |||||
Ordinary | GBR1 | |||||
Ordinary | GBR1 | |||||
Ordinary | GBR1 | |||||
Ordinary | GBR3 | |||||
Ordinary | GBR1 | |||||
Ordinary | GBR3 | |||||
Ordinary | GBR3 | |||||
Ordinary | GBR1 | |||||
Ordinary | GBR1 | |||||
Ordinary | GBR1 | |||||
Ordinary | GBR1 | |||||
Ordinary | GBR1 | |||||
Ordinary | GBR1 | |||||
Ordinary | GBR1 | |||||
No Shares | GBR1 | |||||
Ordinary | GBR1 | |||||
Partnership Interest | GBR1 | |||||
A Ordinary, | GBR13 | |||||
B Ordinary, | ||||||
C Ordinary | ||||||
Ordinary | GBR2 | |||||
Ordinary | GBR5 | |||||
Ordinary | GBR5 | |||||
Ordinary | GBR11 | |||||
United States | ||||||
Common Stock | USA1 | |||||
Common Stock | USA1 | |||||
Common Stock | USA1 | |||||
Common Stock | USA3 | |||||
Common Stock | USA3 | |||||
Membership Interest | USA3 | |||||
Common Stock | USA3 | |||||
Partnership Interest | USA7 | |||||
Common Stock | USA3 | |||||
Common Stock | USA3 | |||||
Membership Interest | USA3 | |||||
Common Stock | USA3 | |||||
Common Stock | USA2 | |||||
Common Stock | USA2 | |||||
Membership Interest | USA3 | |||||
Common Stock | USA2 | |||||
Membership Interest | USA1 | |||||
IDG-RBI China Publishers LLC |
Membership Interest | USA3 | ||||
Common Stock | USA3 | |||||
Common Stock | USA8 | |||||
Common Stock | USA3 | |||||
Common Stock | USA9 | |||||
Common Stock | USA2 | |||||
Common Stock | USA2 | |||||
Common Stock | USA9 | |||||
Common Stock | USA2 |
182 | RELX | |
Company name |
Share class |
Reg office |
||||
Common Stock | USA2 | |||||
Common Stock | USA2 | |||||
Common Stock | USA2 | |||||
Common Stock | USA2 | |||||
Common Stock | USA6 | |||||
Common Stock | USA2 | |||||
Common Stock | USA5 | |||||
Common Stock | USA3 | |||||
Common Stock | USA3 | |||||
No Stock | USA2 | |||||
Membership Interest | USA2 | |||||
Common Stock | USA3 | |||||
Common Stock | USA3 | |||||
Common Stock | USA4 | |||||
Common Stock | USA3 | |||||
Common Stock | USA2 | |||||
Common Stock | USA3 | |||||
No Stock | USA4 | |||||
Membership Interest | USA3 | |||||
Membership Interest | USA1 | |||||
Partnership Interest | USA4 | |||||
Partnership Interest | USA4 | |||||
Partnership Interest | USA4 | |||||
Partnership Interest | USA4 | |||||
Partnership Interest | USA4 | |||||
Partnership Interest | USA7 | |||||
Common Stock | USA2 | |||||
Membership Interest | USA3 | |||||
Common Stock | USA4 | |||||
Common Stock, | USA6 | |||||
Common Class B | ||||||
Vietnam | ||||||
Ordinary | VIE1 | |||||
Registered offices | ||
Australia | ||
AUS1: |
||
AUS2: |
||
Austria | ||
AUT1: |
||
AUT2: |
||
AUT3: |
||
AUT4: |
||
Belgium | ||
BEL1: |
||
Brazil | ||
BRA1: |
20011-904, Brazil | |
BRA2: |
01415-009,Brazil | |
BRA3: |
01415-001, Brazil | |
BRA4: |
01310-300,Brazil | |
BRA5: |
A-Centro, Botucatu, SP, 18600-200,Brazil | |
BRA6: |
04029-901, Brazil | |
BRA7: |
06.455-000, Brazil | |
BRA8: |
Rua Alvaro Anes 46, 3 Andar, Sâo Paulo, 05421-010, Brazil | |
Canada | ||
CAN1: |
||
CAN2: |
||
CAN3: |
26E-1501 av. McGill College, Montreal, Quebec, H3A 3N9, Canada | |
China | ||
CHN1: |
||
CHN2: |
||
CHN3: |
1-7, Dong Cheng District, Beijing, 100738, China | |
CHN4: |
A-101, 3-24 floor, Xinyuan South Road, Chaoyang District, Beijing, 100027, China | |
CHN5: |
B1303-1 & 1305, 13F Center Plaza, 161 Linhe Road West, Tianhe District Guangzhou, China | |
CHN6: |
||
CHN7: |
||
CHN8: |
||
CHN9: |
||
CHN10: |
||
CHN11: |
||
CHN12: |
||
CHN13: |
||
CHN14: |
||
CHN15: |
||
CHN16: |
||
CHN17: |
||
CHN18: |
||
Colombia | ||
COL1: |
No. 74-08 Oficina 105, Bogotá, d.c., 76600, Colombia | |
Denmark | ||
DNK1: |
||
Dubai, UAE | ||
UAE1: |
G-49, Building No 9, Dubai Media City, Post Box 502425, Dubai, United Arab Emirates | |
UAE2: |
||
Egypt | ||
EGY1: |
||
France | ||
FRA1: |
||
FRA2: |
||
FRA3: |
||
FRA4: |
||
FRA5: |
||
FRA6: |
27-33 quai Alphonse Le Gallo, 92100, Boulogne-Billancourt, France | |
FRA7: |
6-8 Rue Chaptal, 75009 Paris, France | |
FRA8: |
151-155 Rue de Bercy, 75012 Paris, France | |
FRA9: |
||
RELX |
183 | |
Registered offices | ||
Germany | ||
DEU1: |
||
DEU2: |
61-63, 60486, Frankfurt am Main Hessen, Germany | |
DEU3: |
||
DEU4: |
||
DEU5: |
||
DEU6: |
||
Greece | ||
GRE1: |
||
Hong Kong | ||
HNK1: |
||
HNK2: |
||
HNK3: |
No. 165-171 Wan Chai Road, Wan Chai, Hong Kong | |
HNK4: |
||
HNK5: |
||
India | ||
IND1: |
||
IND2: |
||
IND3: |
||
IND4: |
||
Indonesia | ||
IDN1: |
||
IDN2: |
29-31 RT/RW 008/003, Karet Kuningan, Setiabudi, Jakarta Selatan, DKI Jakarta 12940 Indonesia | |
Ireland | ||
IRL1: |
||
IRL2: |
||
IRL3: |
||
Israel | ||
ISR1: |
||
Italy | ||
ITA1: |
||
ITA2: |
||
Japan | ||
JPN1: |
2-2-5 Minato-ku, Tokyo, 105-0001 | |
JPN2: |
1-9-15, Minato-ku Tokyo Japan | |
JPN3: |
1-26-2 | |
JPN4: |
1-18-6 Minato-ku, Tokyo | |
Korea (South) | ||
KOR1: |
Yongsan-gu, Seoel, 140-861, Republic of Korea | |
KOR2: |
Yongsan-gu, Seoel, Republic of Korea | |
KOR3: |
1622-24 Block A Terra Tower2, 201 Songpa-daero, Songpa-gu, Seoul, Republic of Korea | |
KOR4: |
195-6 Jamsil-dong, Songpagu, Seoul, Republic of Korea | |
Malaysia | ||
MYS1: |
29-1, Level 29, Vertical Corporate, Tower B, Avenue 10, The Vertical, 59200 Bangsar South City, Kuala Lumpur, Malaysia | |
Macau | ||
MAC1: |
||
Mexico | ||
MEX1: |
||
MEX2: |
||
MEX 3: |
||
New Zealand | ||
NZL1: |
||
Philippines | ||
PHL1: |
||
Poland | ||
POL1: |
50-073, Wrocław, Poland | |
POL2: |
00-133, Warszawa, Poland | |
Registered offices | ||
Russia | ||
RUS1: |
||
RUS2: |
||
Singapore | ||
SGP1: |
#08-01 Winsland House 1, Singapore, 239519, Singapore | |
SGP2: |
#02-00, Singapore, 068898, Singapore | |
SGP3: |
#06-01 Plaza 8 & CBP, 48602551, Singapore | |
SGP4: |
120 Lower Delta Road, #12-02, Cendex Centre, 169208, Singapore | |
SGP5: |
#14-01, 068895, Singapore | |
South Africa | ||
ZAF1: |
||
ZAF2: |
||
Spain | ||
ESP1: |
20-30, 1º / 20029, Barcelona, Spain | |
Switzerland | ||
CHE1: |
||
CHE2: |
||
Taiwan | ||
TWN1: |
||
Thailand | ||
THA1: |
No. 100/68-69 North Sathon Road, Silom, Bangrak, Bangkok, 10500, Thailand | |
THA2: |
191/70-73 Ratchadapisek Road, Khwaeng Klongtoey, Khet, Klongtoey, Bangkok, Thailand | |
THA3: |
||
The Netherlands | ||
NLD1: |
||
NLD2: |
||
NLD3: |
||
NLD4: |
||
Turkey | ||
TUR1: |
Şişli-Maslak, Istanbul, Turkey | |
TUR2: |
||
TUR3: |
||
United Kingdom | ||
GBR1: |
1-3 Strand, London, WC2N 5JR, United Kingdom | |
GBR2: |
||
GBR3: |
||
GBR4: |
||
GBR5: |
||
GBR6: |
The Eye, 1 Procter Street, London, WC1V 6EU, United Kingdom | |
GBR7: |
||
GBR8: |
||
GBR9: |
1st Floor 80 Moorbridge Road, Maidenhead, Berkshire, SL6 8BW | |
GBR10: |
||
GBR11: |
||
GBR12: |
||
GBR13: |
||
United States | ||
USA1: |
||
USA2: |
||
USA3: |
||
USA4: |
||
USA5: |
||
USA6: |
||
USA7: |
||
USA8: |
||
USA9: |
||
Vietnam | ||
VIE1: |
92G-92H Nguyen Huu Canh Street, Ward no. 22, District. Binh Thanh, Ho Chi Minh City, Vietnam | |
184 | RELX | |
Note | 2021 £m |
2020 £m |
2019 £m |
2018 £m |
2017 £m |
|||||||||||||||||||
RELX consolidated financial information |
||||||||||||||||||||||||
Revenue |
||||||||||||||||||||||||
Reported operating profit |
||||||||||||||||||||||||
Adjusted operating profit |
1 | |||||||||||||||||||||||
Reported net profit attributable to RELX PLC shareholders |
||||||||||||||||||||||||
Adjusted net profit attributable to RELX PLC shareholders |
1 | |||||||||||||||||||||||
RELX PLC financial information |
||||||||||||||||||||||||
Reported earnings per ordinary share (pence) |
p |
p | p | p | p | |||||||||||||||||||
Adjusted earnings per ordinary share (pence) |
p |
p | p | p | p | |||||||||||||||||||
Dividend per ordinary share (pence) |
2 | p | p | p | p |
(1) | Adjusted figures are presented as additional performance measures used by management. Further details on the adjusted measures can be found in the Alternative performance measures section on pages 193 to 197. |
(2) | Dividend per ordinary share is based on the interim dividend and proposed final dividend for the relevant year. |
RELX |
185 | |
|
RELX PLC Annual Report and Financial Statements |
In this section | ||
186 |
||
187 |
||
187 |
||
188 |
186 | RELX | |
|
AS AT 31 DECEMBER |
Note | 2021 £m |
2020 £m |
|||||||||
Non-current assets |
||||||||||||
Investments in subsidiary undertakings |
1 | 18,327 |
18,322 | |||||||||
18,327 |
18,322 | |||||||||||
Current assets |
||||||||||||
Trade and other receivables |
1 |
– | ||||||||||
Receivables: amounts due from subsidiary undertakings |
1,857 |
1,711 | ||||||||||
Total assets |
20,185 |
20,033 | ||||||||||
Current liabilities |
||||||||||||
Taxation |
– |
12 |
||||||||||
Other payables |
3 |
2 | ||||||||||
3 |
14 | |||||||||||
Net assets |
20,182 |
20,019 | ||||||||||
Capital and reserves |
||||||||||||
Share capital |
286 |
286 |
||||||||||
Share premium |
1,491 |
1,459 |
||||||||||
Shares held in treasury |
(789 |
) |
(789 |
) | ||||||||
Capital redemption reserve |
36 |
36 |
||||||||||
Other reserves |
177 |
172 |
||||||||||
Merger reserve |
11,150 |
11,150 |
||||||||||
Net profit |
1,046 |
1,051 |
||||||||||
Reserves |
6,785 |
6,654 | ||||||||||
Shareholders’ equity |
20,182 |
20,019 |
P Walker |
N L Luff | |
Chair |
Chief Financial Officer |
RELX |
187 | |
|
Share |
Share |
Shares held in |
Capital redemption |
Other |
Merger |
Net |
||||||||||||||||||||||||||||||
capital |
premium |
treasury |
reserve |
(1) |
reserves |
(2) |
reserve |
(1) |
profit |
Reserves |
(3) |
Total |
||||||||||||||||||||||||
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
||||||||||||||||||||||||||||
Balance at 1 January 2020 |
286 | 1,443 | (739 | ) | 36 | 168 | 11,150 | 1,548 | 5,986 | 19,878 | ||||||||||||||||||||||||||
Total comprehensive income for the year |
– | – | – | – | – | – | 1,051 | – | 1,051 | |||||||||||||||||||||||||||
Dividends paid (4) |
– | – | – | – | – | – | – | (880 | ) | (880 | ) | |||||||||||||||||||||||||
Repurchase of ordinary shares |
– | – | (50 | ) | – | – | – | – | – | (50 | ) | |||||||||||||||||||||||||
Issue of ordinary shares, net of expenses |
– | 16 | – | – | – | – | – | – | 16 | |||||||||||||||||||||||||||
Equity instruments granted to employees of the Group |
– | – | – | – | 4 | – | – | – | 4 | |||||||||||||||||||||||||||
Transfer of net profit to reserves |
– | – | – | – | – | – | (1,548 | ) | 1,548 | – | ||||||||||||||||||||||||||
Balance at 1 January 2021 |
286 |
1,459 |
(789 |
) |
36 |
172 |
11,150 |
1,051 |
6,654 |
20,019 |
||||||||||||||||||||||||||
Total comprehensive income for the year |
– |
– |
– |
– |
– |
– |
1,046 |
– |
1,046 |
|||||||||||||||||||||||||||
Dividends paid (4) |
– |
– |
– |
– |
– |
– |
– |
(920 |
) |
(920 |
) | |||||||||||||||||||||||||
Issue of ordinary shares, net of expenses |
– |
32 |
– |
– |
– |
– |
– |
– |
32 |
|||||||||||||||||||||||||||
Equity instruments granted to employees of the Group |
– |
– |
– |
– |
5 |
– |
– |
– |
5 |
|||||||||||||||||||||||||||
Transfer of net profit to reserves |
– |
– |
– |
– |
– |
– |
(1,051 |
) |
1,051 |
– |
||||||||||||||||||||||||||
Balance at 31 December 2021 |
286 |
1,491 |
(789 |
) |
36 |
177 |
11,150 |
1,046 |
6,785 |
20,182 |
(1) | The capital redemption and merger reserve do not form part of the distributable reserves balance. |
(2) | Other reserves relate to equity instruments granted to employees of the Group under share based remuneration arrangements, and do not form part of the distributable reserves balance. |
(3) | Distributable reserves at 31 December 2021 were £7,042m (2020: £6,916m) comprising net profit and reserves, net of shares held in treasury. |
(4) | Refer to note 13 of the RELX consolidated financial statements on page 161 for further dividend disclosure. |
188 | RELX | |
|
Subsidiary undertaking £m |
Total £m |
|||||||
At 1 January 2020 |
18,318 | 18,318 | ||||||
Equity instruments granted to employees of the Group |
4 | 4 | ||||||
At 1 January 2021 |
18,322 |
18,322 |
||||||
Equity instruments granted to employees of the Group |
5 |
5 |
||||||
At 31 December 2021 |
18,327 |
18,327 |
2021 £m |
2020 £m |
|||||||
Contingent liabilities |
5,679 |
6,516 |
RELX |
189 | |
|
Other financial |
||||
information |
||||
In this section |
190 |
||||
191 |
||||
192 |
190 | RELX | |
|
EXCHANGE RATES FOR TRANSLATION |
Income statement |
Statement of financial position |
||||||||||||||||||||||||||
2021 |
2020 | 2019 | 2021 |
2020 | 2019 | |||||||||||||||||||||||
Euro to sterling |
1.16 |
1.12 | 1.14 | 1.19 |
1.12 | 1.18 |
FOR THE YEAR ENDED 31 DECEMBER |
2021 €m |
2020 € m |
2019 € m |
|||||||||
Revenue |
8,403 |
7,963 | 8,976 | |||||||||
Operating profit |
2,185 |
1,708 | 2,395 | |||||||||
Profit before tax |
2,085 |
1,661 | 2,106 | |||||||||
Net profit attributable to RELX PLC shareholders |
1,706 |
1,371 | 1,716 | |||||||||
Adjusted operating profit |
2,564 |
2,325 | 2,840 | |||||||||
Adjusted profit before tax |
2,409 |
2,146 | 2,508 | |||||||||
Adjusted net profit attributable to RELX PLC shareholders |
1,959 |
1,728 | 2,061 | |||||||||
Adjusted earnings per ordinary share |
€1.016 |
€ 0.897 |
€ 1.060 |
|||||||||
Basic earnings per ordinary share |
€0.885 |
€ 0.712 |
€ 0.883 |
|||||||||
Net dividend per ordinary RELX PLC share paid in the year |
€0.553 |
€ 0.512 |
€ 0.494 |
|||||||||
Net dividend per ordinary RELX PLC share paid and proposed in relation to the financial year |
€0.578 |
€ 0.526 |
€ 0.521 |
FOR THE YEAR ENDED 31 DECEMBER |
2021 €m |
2020 € m |
2019 € m |
|||||||||
Net cash from operating activities |
2,338 |
1,788 | 2,381 | |||||||||
Net cash used in investing activities |
(445 |
) |
(1,314 | ) | (835 | ) | ||||||
Net cash used in financing activities |
(1,863 |
) |
(531 | ) | (1,515 | ) | ||||||
Increase/(decrease) in cash and cash equivalents |
30 |
(57 | ) | 31 | ||||||||
Movement in cash and cash equivalents |
||||||||||||
At start of year |
99 |
163 | 127 | |||||||||
Increase/(decrease) in cash and cash equivalents |
30 |
(57 | ) | 31 | ||||||||
Exchange translation differences |
5 |
(7 | ) | 5 | ||||||||
At end of year |
134 |
99 | 163 | |||||||||
Adjusted cash flow |
2,587 |
2,250 | 2,738 |
AS AT 31 DECEMBER |
2021 €m |
2020 € m |
2019 € m |
|||||||||
Non-current assets |
13,686 |
13,295 | 13,386 | |||||||||
Current assets |
2,805 |
2,547 | 2,885 | |||||||||
Total assets |
16,491 |
15,842 | 16,271 | |||||||||
Current liabilities |
4,460 |
4,899 | 7,018 | |||||||||
Non-current liabilities |
8,194 |
8,590 | 6,669 | |||||||||
Total liabilities |
12,654 |
13,489 | 13,687 | |||||||||
Net assets |
3,837 |
2,353 | 2,584 |
RELX |
191 | |
|
EXCHANGE RATES FOR TRANSLATION |
Income statement |
Statement of financial position |
||||||||||||||||||||||||||
2021 |
2020 | 2019 | 2021 |
2020 | 2019 | |||||||||||||||||||||||
US dollars to sterling |
1.38 |
1.28 | 1.28 | 1.35 |
1.37 | 1.33 |
FOR THE YEAR ENDED 31 DECEMBER |
2021 US$m |
2020 US$m |
2019 US$m |
|||||||||
Revenue |
9,997 |
9,101 | 10,079 | |||||||||
Operating profit |
2,600 |
1,952 | 2,689 | |||||||||
Profit before tax |
2,480 |
1,898 | 2,364 | |||||||||
Net profit attributable to RELX PLC shareholders |
2,030 |
1,567 | 1,926 | |||||||||
Adjusted operating profit |
3,050 |
2,657 | 3,188 | |||||||||
Adjusted profit before tax |
2,866 |
2,452 | 2,816 | |||||||||
Adjusted net profit attributable to RELX PLC shareholders |
2,331 |
1,975 | 2,314 | |||||||||
Adjusted earnings per American Depositary Share (ADS) |
$1.209 |
$1.025 | $1.191 | |||||||||
Basic earnings per ADS |
$1.053 |
$0.814 | $0.991 | |||||||||
Net dividend per RELX PLC ADS paid in the year |
$0.658 |
$0.585 | $0.554 | |||||||||
Net dividend per RELX PLC ADS paid and proposed in relation to the financial year |
$0.687 |
$0.602 | $0.585 |
FOR THE YEAR ENDED 31 DECEMBER |
2021 US$m |
2020 US$m |
2019 US$m |
|||||||||
Net cash from operating activities |
2,782 |
2,043 | 2,674 | |||||||||
Net cash used in investing activities |
(530 |
) |
(1,501 | ) | (938 | ) | ||||||
Net cash used in financing activities |
(2,216 |
) |
(607 | ) | (1,701 | ) | ||||||
Increase/(decrease) in cash and cash equivalents |
36 |
(65 | ) | 35 | ||||||||
Movement in cash and cash equivalents |
||||||||||||
At start of year |
121 |
184 | 145 | |||||||||
Increase/(decrease) in cash and cash equivalents |
36 |
(65 | ) | 35 | ||||||||
Exchange translation differences |
(4 |
) |
2 | 4 | ||||||||
At end of year |
153 |
121 | 184 | |||||||||
Adjusted cash flow |
3,077 |
2,572 | 3,075 |
AS AT 31 DECEMBER |
2021 US$m |
2020 US$m |
2019 US$m |
|||||||||
Non-current assets |
15,526 |
16,263 | 15,088 | |||||||||
Current assets |
3,182 |
3,115 | 3,252 | |||||||||
Total assets |
18,708 |
19,378 | 18,340 | |||||||||
Current liabilities |
5,060 |
5,992 | 7,910 | |||||||||
Non-current liabilities |
9,296 |
10,508 | 7,517 | |||||||||
Total liabilities |
14,356 |
16,500 | 15,427 | |||||||||
Net assets |
4,352 |
2,878 | 2,913 |
192 | RELX | |
|
APM |
CLOSEST EQUIVALENT IFRS MEASURE |
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE |
PURPOSE |
ANNUAL REPORT AND ACCOUNTS REFERENCE | ||||||||||||||||||
Income statement |
||||||||||||||||||||||
Constant currency growth |
No direct equivalent |
Constant currency growth measures are calculated using the previous financial year’s full-year average and hedge exchange rates. |
Provides a measure of year-on-year growth excluding the impact of exchange rate movements. | Financial highlights Chair’s statement CEO report Business overview Market segments Financial review Directors’ remuneration report | ||||||||||||||||||
Underlying growth | No direct equivalent | 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. |
This is a key financial measure as it provides an assessment of year-on-year growth excluding the impact of acquisitions, disposals, exhibition cycling and exchange rate movements. | Financial highlights Chair’s statement CEO report Business overview Market segments Financial review Directors’ remuneration report | ||||||||||||||||||
Note | 2021 £m |
|
2020 £m |
|
2021 % |
2020 % | ||||||||||||||||
Reported revenue growth |
2 | 134 |
(764 | ) | +2% |
–10% | ||||||||||||||||
Components of reported revenue growth | ||||||||||||||||||||||
Underlying revenue growth | 481 |
(670 | ) | +7% |
–9% | |||||||||||||||||
Exhibitions cycling | 48 |
(130 | ) | +1% |
–2% | |||||||||||||||||
Acquisitions | 47 |
80 | +1% |
+1% | ||||||||||||||||||
Disposals | (28 |
) |
(73 | ) | –1% |
– | ||||||||||||||||
Total revenue growth at constant currency |
548 |
(793 | ) | +8% |
–10% | |||||||||||||||||
Currency effect | (414 |
) |
29 | –6% |
– | |||||||||||||||||
Reported revenue growth |
134 |
|
(764 |
) |
+2% |
–10% | ||||||||||||||||
RELX |
193 | |
|
APM |
CLOSEST EQUIVALENT IFRS MEASURE |
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE |
PURPOSE |
ANNUAL REPORT AND ACCOUNTS REFERENCE | ||||||||||||||||||
Underlying growth (continued) | ||||||||||||||||||||||
Note | 2021 £m |
|
2020 £m |
|
2021 % |
2020 % |
||||||||||||||||
Reported adjusted operating profit growth |
134 |
(415 | ) | +6% |
–17% | |||||||||||||||||
Components of adjusted operating profit growth | ||||||||||||||||||||||
Underlying adjusted operating profit growth | 269 |
(433 | ) | +13% |
–18% | |||||||||||||||||
Acquisitions | 11 |
4 | +1% |
– | ||||||||||||||||||
Disposals | (8) |
(26 | ) | –1% |
– | |||||||||||||||||
Total adjusted operating profit growth at constant currency |
272 |
(455 | ) | +13% |
–18% | |||||||||||||||||
Currency impact | (138) |
40 | –7% |
1% | ||||||||||||||||||
Reported adjusted operating profit growth |
134 |
(415 | ) | +6% |
–17% | |||||||||||||||||
Adjusted operating profit | Operating profit | Operating profit before amortisation of acquired intangible assets, acquisition-related items, and grossed up to exclude the equity share of finance income, finance costs and taxes in joint ventures. In 2020, we also excluded exceptional costs in the Exhibitions business. |
This is the key financial measure used by management to evaluate performance and allocate resources. |
Financial highlights Chair’s statement CEO report Business overview Market segments Financial review Directors’ remuneration report Note 2 | ||||||||||||||||||
Note | 2021 £m |
2020 £m | ||||||||||||||||||||
Operating profit | 2,3 | 1,884 |
1,525 | |||||||||||||||||||
Adjustments: | ||||||||||||||||||||||
Amortisation of acquired intangible assets |
|
2 | 298 |
376 | ||||||||||||||||||
Acquisition-related items |
|
21 |
(12) | |||||||||||||||||||
Reclassification of tax in joint ventures |
|
7 |
5 | |||||||||||||||||||
Reclassification of net finance income in joint ventures |
|
– |
(1) | |||||||||||||||||||
Exceptional costs in Exhibitions |
|
2 | – |
183 | ||||||||||||||||||
Adjusted operating profit |
|
2,210 |
2,076 | |||||||||||||||||||
194 | RELX | |
|
APM |
CLOSEST EQUIVALENT IFRS MEASURE |
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE |
|
PURPOSE |
ANNUAL REPORT AND ACCOUNTS REFERENCE | |||||||||||||
Adjusted operating margin |
No direct equivalent | Calculated as adjusted operating profit divided by revenue. | |
As above. | Financial highlights Financial review | |||||||||||||
Earnings before interest, tax, depreciation and amortisation (EBITDA) |
No direct equivalent | Calculated as adjusted operating profit before depreciation of property, plant and equipment (PPE) and right-of-use pre-publication costs. |
|
Provides a measure of the operating performance of the business that is widely used by relevant stakeholders in evaluating company performance. |
Chair’s statement Financial review | |||||||||||||
Note | 2021 £m |
|
2020 £m |
| ||||||||||||||
Adjusted operating profit | 2 | 2,210 |
2,076 | |||||||||||||||
Total depreciation and other amortisation* | 2,3 | 487 |
491 | |||||||||||||||
EBITDA |
2,697 |
2,567 | ||||||||||||||||
* Excludes amortisation of acquired intangibles. In 2020, £38m of depreciation and other amortisation was classified as exceptional in Exhibitions. |
| |||||||||||||||||
Adjusted interest expense | Interest expense | Reported interest expense, less the pension financing charge and option discounting expense, plus the share of net finance income from joint ventures. |
|
Provides a measure of the Group’s interest expense for the funding of business operations that is comparable from year to year. |
Financial review | |||||||||||||
Note | 2021 £m |
|
2020 £m |
| ||||||||||||||
Interest expense | 7 | 142 |
172 | |||||||||||||||
Pension financing charge |
6 |
|
(9 |
) |
|
(10 |
) | |||||||||||
Option discounting expense | – |
(1 | ) | |||||||||||||||
Share of net finance income from joint ventures | – |
(1 | ) | |||||||||||||||
Adjusted interest expense |
133 |
160 | ||||||||||||||||
Adjusted profit before tax | Profit before tax | Profit before tax before amortisation of acquired intangible assets, acquisition-related items, reclassification of taxes in joint ventures, net interest on the net defined benefit pension obligation and disposals and other non-operating items. In 2020, we also excluded exceptional costs in the Exhibitions business. |
|
Provides a measure used by management to evaluate performance and allocate resources. |
Financial highlights Financial review | |||||||||||||
Note | 2021 £m |
|
2020 £m |
|
||||||||||||||
Profit before tax | 1,797 |
1,483 | ||||||||||||||||
Adjustments: | ||||||||||||||||||
Amortisation of acquired intangible assets |
2 |
298 |
376 | |||||||||||||||
Acquisition-related items |
2 |
21 |
(12 | ) | ||||||||||||||
Reclassification of tax in joint ventures |
7 |
5 | ||||||||||||||||
Net interest on net defined benefit |
||||||||||||||||||
pension obligation and other |
6 |
9 |
11 | |||||||||||||||
Disposals and other non-operating items |
8 |
(55 |
) |
(130 | ) | |||||||||||||
Exceptional costs in Exhibitions |
2 |
– |
183 | |||||||||||||||
Adjusted profit before tax |
2,077 |
1,916 | ||||||||||||||||
RELX |
195 | |
|
APM |
CLOSEST EQUIVALENT IFRS MEASURE |
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE |
|
PURPOSE |
ANNUAL REPORT AND ACCOUNTS REFERENCE | |||||||||||||
Adjusted tax charge | Income tax expense | Tax expense excluding the deferred tax movements associated with goodwill and acquired intangible assets, tax on other acquisition-related items, reclassification of tax on joint ventures, tax on net interest payments on the net defined benefit pension obligation and on disposals and other non-operating items. In 2020, we also excluded the tax impact of exceptional costs in the Exhibitions business. |
|
Provides a measure of the Group’s tax expense relating to operating activities. | Financial review | |||||||||||||
Note | 2021 £m |
|
2020 £m |
|
||||||||||||||
Tax charge | 9 | (326 |
) |
(275 | ) | |||||||||||||
Adjustments: | ||||||||||||||||||
Deferred tax movements on |
||||||||||||||||||
goodwill and acquired intangible |
||||||||||||||||||
assets* |
22 |
35 | ||||||||||||||||
Other deferred tax credits from |
||||||||||||||||||
intangible assets** |
(61 |
) |
(78 | ) | ||||||||||||||
Tax on acquisition-related items |
(11 |
) |
(6 | ) | ||||||||||||||
Reclassification of tax in joint ventures |
(7 |
) |
(5 | ) | ||||||||||||||
Tax on net interest on net defined |
||||||||||||||||||
benefit pension obligation and other |
(2 |
) |
(2 | ) | ||||||||||||||
Tax on disposals and other |
||||||||||||||||||
non-operating items |
1 |
3 | ||||||||||||||||
Exceptional costs in Exhibitions |
2 |
– |
(45 | ) | ||||||||||||||
Adjusted tax charge |
(384 |
) |
(373 | ) | ||||||||||||||
* The adjusted tax charge excludes the movements in deferred tax assets and liabilities related to goodwill and acquired intangible assets, but includes the benefit of tax amortisation where available on acquired goodwill and intangible assets. |
|
|||||||||||||||||
** Movements on deferred tax liabilities arising on acquired intangible assets that do not qualify for tax amortisation. |
|
|||||||||||||||||
Effective tax rate | Income tax rate | Income tax expense expressed as a percentage of profit before tax. For a reconciliation between the net tax expense charged on profit before tax and the theoretical amount that would arise using the weighted average of tax rates applicable to accounting profits and losses of the consolidated entities, refer to note 9. |
|
Provides a measure of the Group’s tax charge relative to its profit before tax that is comparable from year to year. | Financial review Note 9 | |||||||||||||
Adjusted effective tax rate | No direct equivalent | Calculated as the adjusted tax charge as a percentage of adjusted profit before tax. | |
Provides a measure of the Group’s tax charge relative to its profit before tax that is comparable from year to year. |
Financial review |
196 | RELX | |
|
APM |
CLOSEST EQUIVALENT IFRS MEASURE |
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE |
|
PURPOSE |
ANNUAL REPORT AND ACCOUNTS REFERENCE | |||||||||||||
Adjusted net profit attributable to RELX PLC shareholders | Net profit attributable to RELX PLC shareholders | Net profit attributable to RELX PLC shareholders before amortisation of acquired intangible assets, other deferred tax credits from intangible assets and items treated as exceptional, acquisition-related items, net interest on the net defined benefit obligation, disposals and other non-operating items, and in 2020, exceptional costs in the Exhibitions business. |
|
Provides a measure of the Group’s profitability after tax attributable to RELX PLC shareholders. | Financial highlights Financial review Note 10 | |||||||||||||
Note | 2021 £m |
|
2020 £m |
|
||||||||||||||
Net profit attributable to RELX PLC | ||||||||||||||||||
shareholders |
1,471 |
1,224 | ||||||||||||||||
Adjustments (post-tax): |
||||||||||||||||||
Amortisation of acquired |
||||||||||||||||||
intangible assets |
316 |
395 | ||||||||||||||||
Other deferred tax credits from |
||||||||||||||||||
intangible assets* |
(61 |
) |
(78 | ) | ||||||||||||||
Acquisition-related items |
10 |
(18 | ) | |||||||||||||||
Net interest on net defined benefit |
||||||||||||||||||
pension obligation and other |
7 |
9 | ||||||||||||||||
Disposals and other non-operating |
||||||||||||||||||
items |
(54 |
) |
(127 | ) | ||||||||||||||
Exceptional costs in Exhibitions |
2 |
– |
138 | |||||||||||||||
Adjusted net profit attributable to |
||||||||||||||||||
RELX PLC shareholders |
1,689 |
1,543 | ||||||||||||||||
* Movements on deferred tax liabilities arising on acquired intangible assets that do not qualify for tax amortisation. |
|
|||||||||||||||||
Adjusted earnings per share |
Earnings per share | Adjusted net profit attributable to RELX PLC shareholders divided by the weighted average number of shares. | |
Provides a measure of the Group’s earnings per share that is comparable from year to year. |
Financial highlights Chair’s statement CEO report Business overview Financial review Note 10 | |||||||||||||
Note | 2021 |
2020 | ||||||||||||||||
Adjusted net profit attributable to | ||||||||||||||||||
RELX PLC shareholders (£m) |
10 | 1,689 |
1,543 | |||||||||||||||
Weighted average number of shares (m) | 10 | 1,928.0 |
1,926.2 | |||||||||||||||
Adjusted earnings per share (p) |
87.6 |
80.1 |
||||||||||||||||
RELX |
197 | |
|
APM |
CLOSEST EQUIVALENT IFRS MEASURE |
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE |
|
PURPOSE |
FINANCIAL STATEMENT REFERENCE | |||||||||||||||
Cash flow statement |
||||||||||||||||||||
Adjusted cash flow | Cash generated from operations | Cash generated from operations plus dividends from joint ventures less net capital expenditure on property, plant and equipment (PPE) and internally developed intangible assets, repayment of lease principal and sublease payments received and excluding pension deficit payments and payments in relation to acquisition-related items. Exceptional cash costs in the Exhibitions business have also been excluded. |
|
Provides a measure of the Group’s operating cash flow that is comparable from year to year. | Financial highlights Financial review | |||||||||||||||
Note | 2021 £m |
|
2020 £m |
|
||||||||||||||||
Cash generated from operations | 11 | 2,476 |
2,264 | |||||||||||||||||
Adjustments: | ||||||||||||||||||||
Dividends received from joint ventures |
15 | 20 |
31 | |||||||||||||||||
Purchases of PPE |
16 | (28 |
) |
(43 | ) | |||||||||||||||
Proceeds from disposals of PPE |
5 |
– | ||||||||||||||||||
Expenditure on internally developed |
||||||||||||||||||||
intangible assets |
(309 |
) |
(319 | ) | ||||||||||||||||
Payments in relation to acquisition- |
||||||||||||||||||||
related items |
46 |
67 | ||||||||||||||||||
Pension recovery payment |
44 |
45 | ||||||||||||||||||
Repayment of lease principal* |
(77 |
) |
(89 | ) | ||||||||||||||||
Sublease payments received |
1 |
2 | ||||||||||||||||||
Exceptional costs in Exhibitions |
52 |
51 | ||||||||||||||||||
Adjusted cash flow |
2,230 |
2,009 | ||||||||||||||||||
* Excludes repayments and receipts in respect of disposal-related vacant property and is net of sublease receipts. |
|
|||||||||||||||||||
Adjusted cash flow | No direct equivalent | Adjusted cash flow divided by adjusted operating profit. |
|
Provides a measure of turning operating profit into cash. |
Financial highlights Business overview Financial review | |||||||||||||||
conversion |
Note | 2021 £m |
|
2020 £m |
| |||||||||||||||
Adjusted cash flow | 2,230 |
2,009 | ||||||||||||||||||
Adjusted operating profit | 2 | 2,210 |
2,076 | |||||||||||||||||
Adjusted cash flow conversion |
101% |
97% | ||||||||||||||||||
Free cash flow | Cash inflow from operating activities | Adjusted cash flow less net interest paid, cash tax paid, acquisition-related payments and exceptional costs paid in relation to the Exhibitions business. |
|
Provides a measure of cash flows that could be used for organic investment in the business, acquisitions, distribution of dividends, share buybacks or the repayment of debt. | Financial review Note 17 | |||||||||||||||
Note | 2021 £m |
|
2020 £m |
| ||||||||||||||||
Adjusted cash flow | 2,230 |
2,009 | ||||||||||||||||||
Interest paid (net) | (118 |
) |
(172 | ) | ||||||||||||||||
Cash tax paid* | 9 | (342 |
) |
(496 | ) | |||||||||||||||
Exceptional costs in Exhibitions | (52 |
) |
(51 | ) | ||||||||||||||||
Acquisition-related items | (46 |
) |
(67 | ) | ||||||||||||||||
Free cash flow |
1,672 |
1,223 | ||||||||||||||||||
* Net of cash tax relief on exceptional costs incurred in 2020 and acquisition-related items and including cash tax impact of disposals. |
| |||||||||||||||||||
198 | RELX | |
|
APM |
CLOSEST EQUIVALENT IFRS MEASURE |
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE |
|
PURPOSE |
FINANCIAL STATEMENT REFERENCE | |||||||||||||
Dividend cover | No direct equivalent | The number of times the total interim and proposed final dividends for the year is covered by the adjusted earnings per share. It is calculated as adjusted earnings per share divided by ordinary dividends per share. |
|
Provides a measure of the Group’s earnings relative to ordinary dividend payments. | Financial review Directors’ report | |||||||||||||
Note | 2021 |
2020 | ||||||||||||||||
Adjusted earnings per share | 10 | 87.6p |
80.1p | |||||||||||||||
Ordinary dividends per share | 13 | 49.8p |
47.0p | |||||||||||||||
Dividend cover |
1.8x |
1.7x | ||||||||||||||||
Note | 2021 |
2020 | ||||||||||||||||
Basic earnings per share | 10 | 76.3p |
63.5p | |||||||||||||||
Ordinary dividends per share | 13 | 49.8p |
47.0p | |||||||||||||||
Basic dividend cover |
1.5x |
1.4x | ||||||||||||||||
Net capital employed | No direct equivalent | Net goodwill and acquired intangible assets, net internally developed intangible assets, net property, plant and equipment, right-of-use |
|
Provides a measure of the capital used in operations. | Financial review | |||||||||||||
Note | 2021 £m |
|
2020 £m |
| ||||||||||||||
Goodwill and acquired intangible assets* | 9,419 |
9,405 | ||||||||||||||||
Internally developed intangible assets* | 14 | 1,251 |
1,244 | |||||||||||||||
Property, plant and equipment*, right-of- |
||||||||||||||||||
use assets* and investments |
504 |
740 | ||||||||||||||||
Net pension obligations | 6 | (269 |
) |
(624 | ) | |||||||||||||
Working capital | (1,095 |
) |
(1,229 | ) | ||||||||||||||
Net capital employed |
9,810 |
9,536 | ||||||||||||||||
* Net of accumulated depreciation and amortisation. |
| |||||||||||||||||
Invested capital/ capital employed | No direct equivalent | Net capital employed, adjusted to add back accumulated amortisation and impairment of acquired intangible assets and goodwill, to remove non-operating investments and the gross up to goodwill in respect of deferred tax, and other items. |
|
Used to calculate the return on invested capital (see below). | Financial review Directors’ report | |||||||||||||
Note | 2021 £m |
|
2020 £m |
| ||||||||||||||
Net capital employed | 9,810 |
9,536 | ||||||||||||||||
Accumulated amortisation and | ||||||||||||||||||
impairment of acquired intangible |
||||||||||||||||||
assets and goodwill |
7,065 |
6,802 | ||||||||||||||||
Non-operating investments |
15 | (107 |
) |
(259 | ) | |||||||||||||
Deferred tax on goodwill and other | (1,234 |
) |
(1,194 | ) | ||||||||||||||
Invested capital/capital employed |
15,534 |
14,885 | ||||||||||||||||
RELX |
199 | |
|
APM |
CLOSEST EQUIVALENT IFRS MEASURE |
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE |
|
PURPOSE |
FINANCIAL STATEMENT REFERENCE | |||||||||||||
Return on invested capital (ROIC) | No direct equivalent | Post tax adjusted operating profit expressed as a percentage of average capital employed. |
|
This is a key financial measure used by management that demonstrates the efficiency of the use of capital. | Financial highlights Business overview Financial review | |||||||||||||
Note | 2021 |
2020 | ||||||||||||||||
Adjusted operating profit | 2 | 2,210 |
2,076 | |||||||||||||||
Tax at adjusted effective rate | (409 |
) |
(405 | ) | ||||||||||||||
Adjusted effective tax rate | 18.5% |
19.5% | ||||||||||||||||
Adjusted operating profit after tax | 1,801 |
1,671 | ||||||||||||||||
Average invested capital* | 15,108 |
15,435 | ||||||||||||||||
ROIC |
11.9% |
10.8% | ||||||||||||||||
* Average of invested capital at the beginning and the end of the year, retranslated at average exchange rates for the year. |
| |||||||||||||||||
Capital expenditure | No direct equivalent | Additions to property, plant and equipment and internally developed intangible assets. |
|
Provides a measure of the amounts invested in new products and related infrastructure across the business. |
Chair’s statement Financial review Directors’ report Governance Note 2 | |||||||||||||
Note | 2021 £m |
|
2020 £m |
| ||||||||||||||
Additions to property, plant and | ||||||||||||||||||
equipment |
16 | 28 |
43 | |||||||||||||||
Additions to internally developed | ||||||||||||||||||
intangible assets |
14 | 309 |
319 | |||||||||||||||
Capital expenditure |
337 |
362 | ||||||||||||||||
200 | RELX | |
|
APM |
CLOSEST EQUIVALENT IFRS MEASURE |
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE |
|
PURPOSE |
FINANCIAL STATEMENT REFERENCE | |||||||||||||||||||||
Statement of financial position |
||||||||||||||||||||||||||
Net debt excluding pensions / net debt including pensions | No direct equivalent | Net debt excluding pensions: debt less cash and cash equivalents, related derivative financial instruments and finance lease receivables. | |
Provides a measure of the Group’s level of indebtedness. | Financial highlights Chair’s statement Financial review Governance Directors’ report Note 17 | |||||||||||||||||||||
Note | 2021 £m |
|
2020 £m |
|
||||||||||||||||||||||
Debt | 11,21 | 6,167 |
7,123 | |||||||||||||||||||||||
Cash and cash equivalents | 11 | (113 |
) |
(88 | ) | |||||||||||||||||||||
Related derivative financial | ||||||||||||||||||||||||||
instruments | 11 | (35 |
) |
(119 | ) | |||||||||||||||||||||
Finance lease receivables | 11 | (2 |
) |
(18 | ) | |||||||||||||||||||||
Net debt excluding pensions |
11 | 6,017 |
6,898 | |||||||||||||||||||||||
Pension deficit | 6 | 269 |
624 | |||||||||||||||||||||||
Net debt including pensions |
6,286 |
7,522 | ||||||||||||||||||||||||
Leverage ratios | No direct equivalent | For details of the closest equivalent IFRS measures to net debt and EBITDA, see above. For the purpose of calculating leverage ratios, amortisation of pre-publication costs, share of results in joint ventures, the equity share of finance income, finance costs, taxes and amortisation in joint ventures, and acquisition-related items are deducted from EBITDA. |
|
Provides a measure of the financial leverage of the Group. | Chair’s statement Financial review Governance | |||||||||||||||||||||
Note | 2021 £m |
|
2020 £m |
|
2021 $m* |
|
2020 $m* |
| ||||||||||||||||||
EBITDA |
2,697 |
2,567 | 3,722 |
3,286 | ||||||||||||||||||||||
Pre-publication amortisation |
3 | (60 |
) |
(62 | ) | (83 |
) |
(80 | ) | |||||||||||||||||
EBITDA for financial covenant |
2,637 |
2,505 | 3,639 |
3,206 | ||||||||||||||||||||||
Less joint venture adjusted |
||||||||||||||||||||||||||
operating profit | (37 |
) |
(19 | ) | (51 |
) |
(24 | ) | ||||||||||||||||||
Acquisition-related items** | 2 | (48 |
) |
(64 | ) | (66 |
) |
(82 | ) | |||||||||||||||||
EBITDA for leverage ratio |
2,552 |
2,422 | 3,522 |
3,100 | ||||||||||||||||||||||
Net debt excluding pensions (A) | 6,017 |
6,898 | 8,123 |
9,450 | ||||||||||||||||||||||
Net debt including pensions (B) | 6,286 |
7,522 | 8,486 |
10,305 | ||||||||||||||||||||||
EBITDA for financial covenant (C) | 2,637 |
2,505 | 3,639 |
3,206 | ||||||||||||||||||||||
EBITDA for leverage ratio (D) | 2,552 |
2,422 | 3,522 |
3,100 | ||||||||||||||||||||||
Leverage ratio used in |
||||||||||||||||||||||||||
financial covenant (A/C) |
2.3x |
2.8x | ||||||||||||||||||||||||
Leverage ratio excluding |
||||||||||||||||||||||||||
pensions (A/D) |
2.3x |
3.0x | ||||||||||||||||||||||||
Leverage ratio including |
||||||||||||||||||||||||||
pensions (B/D) |
2.4x |
3.3x | ||||||||||||||||||||||||
* EBITDA and net debt have been translated from sterling to US dollars using, respectively, average and year end exchange rates, as shown on page 191. |
| |||||||||||||||||||||||||
** Excluding gains of £27m (2020: £76m) from the revaluation of a put and call option arrangement relating to a non-controlling interest in a subsidiary within Legal. |
|
|||||||||||||||||||||||||
RELX |
201 | |
Shareholder information |
||||||
In this section |
202 |
Shareholder information | |||||
204 |
Shareholder information and contacts | |||||
IBC |
2022 financial calendar |
202 | RELX | |
www.relx.com |
PLC | ||
Trading symbol | REL | |
ISIN | GB00B2B0DG97 |
PLC | ||
Trading symbol | REN | |
ISIN | GB00B2B0DG97 |
PLC ADRs | ||
Ratio to ordinary shares | 1:1 | |
Trading symbol | RELX | |
CUSIP code |
759530108 |
For further information visit the ‘Investor Centre’ section of the Group’s website www.relx.com/investorcentre |
RELX |
203 | |
◾ |
From time to time shareholders may receive unsolicited calls from fraudsters |
◾ |
Fraudsters use persuasive and high-pressure tactics to lure investors into scams, sometimes known as boiler room scams |
◾ |
They may offer to sell shares that turn out to be worthless or non-existent, or to buy shares at an inflated price in return for an upfront payment |
◾ |
While high profits are promised, if you buy or sell shares in this way you will probably lose your money |
◾ |
Thousands of people contact the Financial Conduct Authority (FCA) about investment fraud each year, with victims losing an average of £32,000 |
◾ |
Legitimate firms authorised by the FCA are unlikely to contact you unexpectedly with an offer to buy or sell shares |
◾ |
If you receive an unsolicited phone call, do not get into a conversation, note the name of the person and firm contacting you and then end the call |
◾ |
Check the Financial Services Register available at https://register.fca.org.uk/ to see if the person and firm contacting you is authorised by the FCA. If you wish to call the person or firm back, only use the contact details listed on the Register |
◾ |
Call the FCA on 0800 111 6768 if the firm does not have any contact details on the Register, or if you are told that they are out of date |
◾ |
Search the list of unauthorised firms to avoid at https://www.fca.org.uk/consumers/unauthorised-firms-individuals#list |
◾ |
If you do buy or sell shares through an unauthorised firm, you will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme |
◾ |
Consider obtaining independent financial and professional advice before you hand over any money. If it sounds too good to be true, it probably is |
204 | RELX | |
www.shareview.co.uk |
www.citi.com/dr |
10 February |
Results announcement for the year ended 31 December 2021 | |
21 April |
Trading update issued in relation to the 2022 financial year | |
21 April |
Annual General Meeting | |
28 April |
Ex-dividend date – 2021 final dividend, ordinary shares and ADRs | |
29 April |
Record date – 2021 final dividend, ordinary shares and ADRs | |
17 May |
Dividend currency and DRIP election deadline | |
23 May |
Euro dividend equivalent announcement | |
7 June |
Payment date – 2021 final dividend, ordinary shares | |
10 June |
Payment date – 2021 final dividend, ADRs | |
28 July |
Interim results announcement for the six months to 30 June 2022 | |
4 Aug* |
Ex-dividend date – 2022 interim dividend, ordinary shares and ADRs | |
5 Aug* |
Record date – 2022 interim dividend, ordinary shares and ADRs |
* | Please note that these dates are provisional and subject to change. The 2022 interim dividend payment dates in respect of ordinary shares and ADRs will be confirmed by the Company in its 2022 Interim Results announcement, currently scheduled for release on 28 July 2022. |
ORDINARY SHARES |
pence per PLC ordinary share |
Euro equivalent (€) |
Payment date |
|||||||||
Final dividend for 2021** |
35.5 | *** | 7 June 2022 | |||||||||
Interim dividend for 2021 |
14.3 | 0.167 | 8 September 2021 | |||||||||
Final dividend for 2020 |
33.40 | 0.387 | 3 June 2021 | |||||||||
Interim dividend for 2020 |
13.60 | 0.151 | 2 September 2020 | |||||||||
Final dividend for 2019 |
32.10 | 0.362 | 28 May 2020 | |||||||||
Interim dividend for 2019 |
13.60 | 0.148 | 2 September 2019 | |||||||||
** Proposed dividend, to be submitted for approval at the Annual General Meeting of RELX PLC in April 2022. *** Payment will be determined using the appropriate £/ € exchange rate on 23 May 2022. |
||||||||||||
ADRS |
$ per PLC ADR |
Payment date |
||||||||||
Final dividend for 2021*** |
*** | 10 June 2022 | ||||||||||
Interim dividend for 2021 |
01965820 | 13 September 2021 | ||||||||||
Final dividend for 2020 |
0.4706720 | 8 June 2021 | ||||||||||
Interim dividend for 2020 |
0.18081 | 8 September 2020 | ||||||||||
Final dividend for 2019 |
0.395086 | 2 June 2020 | ||||||||||
Interim dividend for 2019 |
0.16398 | 5 September 2019 |