Legal Teach-In November 10, 2016 London
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Legal teach-in November 10, 2016 London 1 FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. These statements are subject to a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those currently being anticipated. The terms “outlook”, “estimate”, “project”, “plan”, “intend”, “expect”, “should be”, “will be”, “believe”, “trends” and similar expressions identify forward-looking statements. Factors which may cause future outcomes to differ from those foreseen in forward-looking statements include, but are not limited to competitive factors in the industries in which the Group operates; demand for the Group’s products and services; exchange rate fluctuations; general economic and business conditions; legislative, fiscal, tax and regulatory developments and political risks; the availability of third-party content and data; breaches of our data security systems and interruptions in our information technology systems; changes in law and legal interpretations affecting the Group’s intellectual property rights and other risks referenced from time to time in the filings of the Group with the US Securities and Exchange Commission. 2 1 Legal overview Mike Walsh Chief Executive Officer, Legal 3 | 4 Agenda Legal overview Mike Walsh Chief Executive Officer, Legal US legal information business Sean Fitzpatrick Managing Director, North America Lexis Advance demonstration Jeff Pfeifer Product Management, North America Lex Machina demonstration Josh Becker Lex Machina Concluding remarks Mike Walsh Chief Executive Officer, Legal Q&A 4 2 | 5 Legal position within RELX Group Revenue FY 2015 Adjusted operating profit FY 2015 £5,971m £1,822m Exhibitions Exhibitions Scientific, Technical & Legal Scientific, Medical 15% Technical & Legal Medical 24% Risk & Risk & Business Analytics Business Analytics 5 Legal business overview • A leading global provider of information, analytics and decision tools to professionals in law firms, corporations and government organisations • Customers in over 175 countries • 10,000 employees worldwide • Leading brands with content built over decades • Global technology platform and capabilities 2015 revenue £1,443m GeographyFormat Type Rest of World Print 11% 20% Transactional 21% Europe 21% Face-to-face 1% North Electronic America 79% Subscription 68% 79% 6 3 Strong global footprint North America: • US (#2) • Canada (#1 legal online) Europe: • United Kingdom (#1 legal online) • France (#1 legal online) Rest of World: • Australia (#1 legal online) • South Africa (#1) • New Zealand (#1) • China and Hong Kong (#1 legal online) • India (#1) • Malaysia (#1) • Singapore (#1) Market-leading positions (#1 or #2) LexisNexis subscribers Note: Market position based on legal & regulatory information revenue 7 Global legal information market ~$18.5bn in 2015 Latin Middle East America & Africa Asia Pacific 3% 12% 1% North 29% 55% America Europe Total spend on legal information solutions 2-3% of global legal services industry Source: LexisNexis analysis 8 4 Strategic priorities • Progressively introduce information-based analytics and decision tools that deliver enhanced value to our customers • Leverage global New Lexis platform and content expansion to drive organic growth • Upgrade operational infrastructure, drive process efficiency and gradually improve margins 9 Progressively introduce analytics and decision tools Electronic reference Electronic decision tools Pre-2012 2012-2015 2016 • Search and retrieve • Analyse content, datasets, • Advanced predictive critical information facts and patterns to analytics on content support decisions • Early predictive analytics, • Integrated ecosystem of know-how and workflow research, know-how, tools workflow and analytics 10 5 Global New Lexis technology platform Govern- Law firms Corporates Academic ment Product Applications Country roll-outs • United States Product Platform • Canada • Australia Smart Content Knowledge Graph • New Zealand Business Systems Content Store 11 New Lexis: How the technology platform works Primary research Public records Entity resolution Authored content News Link analysis articles Company information Knowledge Graph Big Clustering analysis Data Court dockets Linking Expert witness profiles Enrichment Complex analysis Source Content Big Data technologies Analysis applications Customer outcomes • Over 60bn documents • Grid computing with low-cost servers (HPCC) • Scoring models and • Suggested content attributes • 2.5 petabytes of legal • Data-centric languages (brings code to the data) • Case similarity data • Visualisations to identification • Linking algorithms that generate high precision and recall represent clusters, • >13m new documents • Legislation outcome • Machine learning algorithms to cluster, link and learn from the data links & graphs processed daily of entities prediction • >50k sources • Natural language processing to uncover hidden relationships in • Case valuation analysis data • Entity profiling 12 6 New Lexis product ecosystem supports a variety of customer use cases Illustrative Current Predict Case Practical Business Research Drafting lawyer Awareness Outcomes Assessment Guidance Development workflow Product Law 360 Legislative Verdict & Lexis Lexis Practice Lexis for Lex Machina examples: Outlook Settlement Advance Advisor Microsoft Analyzer Research Office (Integrated in (Lexis Advance) (Lexis Advance) (Lexis Advance) (Lexis Advance) (Integrated in (Pull from Lexis Advance) Lexis Advance) content store) ‘Pull’ on New Lexis Platform Value added analytics Product Platform Smart Content Knowledge Graph New Lexis Content Store and Technology Platform Business Systems Content Store 13 Evolution of product portfolio Intelligize Legislativ e Outlook Search Term Maps Lex Machina Mlex Newsdesk Lex Machina Lex is Search Adv antage Mlex Counsel Benchmarking Newsdesk Shepard’s Graphical Lex is Search Adv antage MedMal Nav igator Counsel Benchmarking Lex is Profile Suite Shepard’s Graphical Law 360 Lexis Search Advantage MedMal Nav igator Securities Mosaic Counsel Benchmarking Lex is Profile Suite Verdict & Settlement Analyzer Shepard’s Graphical Law 360 Market Tracker MedMal Nav igator MedMal Nav igator Securities Mosaic Lex is 360 Lex is Profile Suite Lex is Profile Suite Verdict & Settlement Analyzer Lexis Practice Advisor Law 360 Law 360 Market Tracker Legal Issue Trail Law 360 Securities Mosaic Securities Mosaic Lex is 360 Practical Guidance (Australia, Securities Mosaic Verdict & Settlement Analyzer Verdict & Settlement Analyzer Lexis Practice Advisor New Zealand, CN, SA, CA) Verdict & Settlement Analyzer Market Tracker Market Tracker Legal Issue Trail Diligence Market Tracker Lex is 360 Lex is 360 Practical Guidance (Australia, Lex isPSL Lexis 360 Lexis Practice Advisor Lexis Practice Advisor New Zealand, CN , SA ,CA) Lex is for Microsoft Office Lexis Practice Advisor Legal Issue Trail Legal Issue Trail Diligence Automated Forms Legal Issue Trail Practical Guidance (Australia, Practical Guidance (Australia, Lex isPSL Lexis Assure Practical Guidance (Australia, New Zealand, C N, SA) New Zealand, C N, SA, CA) Lex is for Microsoft Office Research Practice Centers Practical Guidance (Australia, New Zealand) Diligence Diligence Automated Forms Lex is Adv ance Research New Zealand) Diligence LexisPSL Lex isPSL Lex is Adv ance Research (Australia, New Zealand, C A Diligence LexisPSL Lex is for Microsoft Office Lex is for Microsoft Office (Pacific, CA Quicklaw) Quicklaw) LexisPSL Lex is for Microsoft Office Automated Forms Automated Forms Lex is Adv ance Research Tax Lex is Adv ance Research Tax Lex is for M icrosoft Office Automated Forms Lex is©RED Lex is©RED Lex is©RED Lex is©RED Automated Forms Lex is©RED Lex is Adv ance R3 Lex is Adv ance R4 Lex is Adv ance R5 Lex is Adv ance R6 Lex is Adv ance R2 Lex is Adv ance R3 State Net State Net State Net State Net State Net State Net E-books E-books E-books E-books E-books E-books Lex isLibrary Lex isLibrary Lex isLibrary Lex isLibrary LexisLibrary LexisLibrary Custom User Interfaces Custom User Interfaces Custom User Interfaces Custom User Interfaces Custom U ser Interfaces Custom User Interfaces IDEX Ex pert Witness IDEX Expert Witness IDEX Expert Witness IDEX Expert Witness IDEX Expert Witness IDEX Expert Witness Total Patent Total Patent Total Patent Total Patent Total Patent Total Patent Company Dossier Company Dossier Company Dossier Company Dossier Company Dossier Company Dossier Lexis Kiosque Lexis Kiosque Lex is Kiosque Lex is Kiosque Lex is Check Lex is Check Lex is Check Lex is Check Lex is Check Lexis Check Patent Optimizer Patent Optimizer Patent Optimizer Patent Optimizer Patent Optimizer Patent Optimizer China Online China Online China Online China Online China Online China Online Tolley Guidance Tolley Guidance Tolley Guidance Tolley Guidance Tolley Guidance Tolley Guidance Tolley Library Tolley Library Tolley Library Tolley Library Tolley Library Tolley Library Nexis.com Nexis.com Nexis.com Nexis.com Nexis.com Nexis.com Lex is.com Lexis.com Lexis.com Lex is.com Lex is.com Lexis.com Pre-2011 2012 2013 2014 2015 2016 14 7 Decision tools and analytics driving electronic revenue growth Global revenue and recent growth profile by solution type 2011 revenue 2016 revenue Low-single digit growth Single Mid to high-single digit decline digit decline Print Information