1. PRIMEX ‘02 6 February 2002 Managing a business in a challenging economy with technology

2. Reed Elsevier Reed Elsevier is a world leading publisher and information provider, operating in four core segments. Its principal activities are in North America and Europe and the company employs approximately 36,000 people.

3. Scientific & Medical c$2.0bn No. 1 in Science No. 1 in Medical Global Note: Proforma Revenues post Harcourt Legalc$2.0bn US, UK, Europe Asia Pacific Latin America No 1 or 2 in all markets all marketsEducationc$1.5bn No. 3 No. 1 USUKCommonwealthBusinessc$2.0bn Magazines US, UK, Netherlands ExhibitionsGlobal Four Businesses

4. Reed Elsevier Vision  Indispensable partner of professional customers  Demonstrably superior information driven services  Global presence and leadership in four target sectors  High quality management and organisational effectiveness  Above market revenue growth & double digit earnings growth

5. Reed Elsevier Strategy  Focus on four core businesses  Attractive global growing markets  Targeted at professional users  Proprietary, must have content  Annual subscription model  Internet accelerating growth opportunities

6. Survive and Thrive in Changing Economy

7. Elsevier Science: Historical Strength in Journals

8. Health Sciences Division

9. UPGRADED SCIENCEDIRECT PRODUCT INTERNET MIGRATION CUSTOMER PREFERENCE MODERATE PRICING POLICY AGGRESSIVE SALES AND MARKETING HIGHER PENETRATION HIGHER USAGE STRONGER RENEWALS ACCELERATED REVENUE GROWTH Science & Medical: Strategy for Growth

10. NAVIGATION Abstracts & Indices (30m) Print Journals Full text searchable database ARCHIVE Growing electronic archive SUBJECT PORTALS Physics, Engineering, Chemistry etc. SCIRUS Linkage to web scientific data ACADEMIC WORKBENCH Authorship and pre- publication tools Science & Medical: Expanded ScienceDirect Offering

11. Navigation 30m abstracts & indices PhysicsEcon.Chem.Etc Bio Med Subject Portals Archive 4m backfiles ScienceDirect 1.4m articles Fully searchable database Library Management Tools: ENDEAVOR Web search engine SCIRUS 55m science related pages Authorship and pre- publication tools ACADEMIC WORK BENCH ScienceDirect: Superior Global Product

12.  Dramatic increase in usage  Increasing penetration of ScienceDirect  Subscriber attrition reduced  Major new contracts agreed Marketplace Impact: Positive Key Performance Indicators

13. ScienceDirect: Increase in Usage Number of page views (millions) 0 5 10 15 20 25 Jan 99 Mar 99 May 99 Jul 99 Sep 99 Nov 99 Jan 00 Mar 00 May 00 Jul 00 Sep 00 Nov 00 Jan 01 Mar 01 May 01 Jul 01 Sep 01

14. ScienceDirect: Increasing Penetration % 0 10 20 30 40 50 60 70 80 Mar 99 Aug 99 Feb 00 Aug 00 Dec 00 Aug 01 Dec 01010101

15. Dutch Consortium China Korea Australia Taiwan Brazil Canada Bavaria Vale (USA) Nord Rhein Westphalia Marketplace Impact: Major New Contracts

16. Legal: Historical Strength in Print & Proprietary Online

17. LEGAL: US STRATEGY FOR GROWTH ACCELERATED REVENUE GROWTH UPGRADED SALES AND MARKETING US LAW SCHOOL PREFERENCE SMALL LAW PROGRAMME COMPETITIVE PRODUCT lexis.com nexis.com STRONGER RENEWALS HIGHER PENETRATION HIGHER USAGE INTERNET MIGRATION CUSTOMER PREFERENCE

18. LEGAL: CUSTOMISED SOLUTIONS CUSTOMISED E-SOLUTIONS KNOWLEDGE MANAGEMENT PORTAL Specialised portal for law firms INTRANET SOLUTIONS Customised legal intranets PRACTICE PAGES Customised approach to specific practice areas LEXISNEXIS DATABASE/CONTENT CUSTOM WEB PAGES Easy access to specific forms and sources

19. TAX CCH/Tax Analysts LEGAL Expanded E-treatises Improved Linkages CITATOR Functionality Upgrade CASE SUMMARIES 300  700 Editors WEB RELIABILITY Private Nodes EASE OF USE New lexis.com New WebSphere Platform NEWS & BUSINESS FT Profile/ Company Dossier PUBLIC RECORDS Riskwise/Corp America Acquisitions LexisNexis: Product Upgrade Programme

20. 0 1 2 3 4 5 6 Marketplace Impact: Turnaround in LexisNexis Revenue Growth 1998199920002001 * first half +5% +1% +2% +3%

21. LexisNexis Preference Overall in Law Schools (%) Marketplace Impact: Online Product Preference Confirmed 0 10 20 30 40 50 60 19971998199920002001 FallFallFallFallFall15 19 32 54 50

22. Marketplace Impact: Increase in Usage Number of Searches (millions) 3 4 5 6 7 8 9 10 Jan 99 May 99 Sep 99 Jan 00 May 00 Sep 00 Jan 01 May 01 Sep 01

23. Business: Leadership Portfolio in Print Magazines and Exhibitions

24. BUSINESS: STRATEGY FOR GROWTH UPGRADED SALES AND MARKETING ACCELERATED REVENUE GROWTH PRINT LAUNCH AND EXTENSION LEADING INTERNET PORTALS CONTENT AND DATA AQUISITION NEW REVENUE SOURCES STRONGER ADVERTISING PROPOSITION HIGHER VOLUMES EXPANSION OF SERVICES CUSTOMER PREFERENCE

25. BUSINESS: NEW AND UPGRADED PORTALS LAUNCHED

26. 0 20 40 60 80 100 120 199920002001target $m Business: Total Online Revenue Growth 20 55 90Organic Including Acquisitions

27. Education: Strength in English Speaking World

28. Education: E-learning Programme  E-strategy: Major research programme to determine customer needs and future strategy  E-content: Technology programme accelerated by Riverdeep alliance  E-professional development: Acquisition of leading online provider: Classroom Connect  E-testing: Increased investment in classroom testing

29. Driving Accelerated Growth: Technology Strategy

30. Technology Strategy Framework Business strategy linkage Describes strategic objectives for the business division. Details known technology requirements and projects and initiatives required to address the business need Solutions Framework Enables grouping of technology requirements, projects, software applications and solutions to identify common themes. Infrastructure Layers Covers services (e.g. Security), architecture, technical policies & standards, hardware, network and software solutions. Business strategy drives solutions Business solutions drive infrastructure

31. Technology Strategy Technology work aligned with business need:  Development of demonstrably superior products  Systems to enable collaboration and global working  Cost-effective technology infrastructure

32. Future View

33. Convergence Gartner Research

34. Future Trends Now Customer = Enterprise Products = print/online Customisation = fringe Content + platform Specific Content Local/global Static information products Future Customer = Individual Products = online/print Customisation = total Individuals Desktop/PDA Rich linking to other content Global/local Professional decision making

35. Managing a business in a challenging economy with technology

36. Develop a Strong Platform for Growth  Attractive global growing businesses  Targeted at professional users  Proprietary, must have content  Annual subscription model  Internet accelerating growth opportunities Conclusion